BINDING AUTHORITY BINDING AUTHORITY / PROGRAM DESCRIPTION GENERAL RULES

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American Traditions Insurance Co. 1 09/07 TABLE OF CONTENTS ELIGIBILITY General 3 Ineligible Risks, 3 Applicant 3 Insurance To Value 3 Occupancy/ Use 3

Secondary / Seasonal Residences. 4

Age 4

Roof 4

Heating And Cooling Systems 4

Swimming Pools 4 Townhouse/ Rowhouse 4 Credit Guidelines 5 BINDING AUTHORITY Prior Insurance 6 Loss History 6

Previous Cancellations / Non-Renewals 6

Hurricane -Tropical Storm 6

BINDING AUTHORITY / PROGRAM DESCRIPTION

Binding Authority/ Relationships 7

Loss Settlement 7

Covered Perils 7

GENERAL RULES

Policy Term 8

Renewal Plan 8

Cancellation or Reductions in Limits 8

Multiple Company Insurance 8

Transfer or Assignment 8

Single Building Definition 8

Protection Class Information 9

Construction Definitions 9 Mandatory Endorsements 9 Waiver of Premium 11 Premium Rounding 11 PREMIUM CALCULATION Amount of Insurance 12 Age of Dwelling 13 Total Renovations 13

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American Traditions Insurance Co. 2 09/07

Homeowners Program PREMIUM CALCULATION (cont)

Building Code Effectiveness Grading 14 – 15

Premium Factors - Non Hurricane Base Rate

Secured Community/Building Credit 16

Financial Responsibility 16

Protective Devices 16

Miscellaneous Credit/Debits 16

Premium Factors - Hurricane Base Rate

Windstorm Loss Mitigation Credit Factors 17 – 27

Coverage Options

Deductibles 28

Windstorm or Hail Exclusion 28

Water Damage Exclusion 28

Pool Cages and Screen Porches 29

Coverage B Limit 29

Coverage C Limit 29

Increased Section II Limits 30

Personal Injury Coverage 30

Ordinance or Law Coverage (All Forms)... 30

Increased Replacement Cost on Dwelling (HO 3 Only) 31 Personal Property Replacement Cost Coverage (All Forms) 31

Special Personal Property Coverage 31

Personal Property - Unscheduled 31

Personal Property- Scheduled 32

Loss Assessment Coverage 33

Fungi (Mold) Coverage 33

Golf cart Physical Damage & Liability Coverage 34

Animal Liability Coverage 34

Unit-Owners Rental to Others 35

Water Back Up and Sump Overflow 35

Other Insured Location - NO COVERAGE 35

Business Pursuits - NO COVERAGE 35

Incidental Occupancies - NO COVERAGE 35

Additional Fees

Florida Hurricane Catastrophe Fund (FHCF) Emergency Assessment 36 Citizens Property Insurance Corporation CPIC) Emergency Assessment 36 Emergency Mgmt. Preparedness & Assistance Trust Fund Surcharge 36

MGA Fee 36

Payment Plans 36

Territory Base Rates 37 – 39

Catastrophe Charge 40 – 42

Territory Definitions by Zip Code 43 – 49

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American Traditions Insurance Co. 3 09/07 ELIGIBILITY - UNDERWRITING

GENERAL

• Home must be protected with smoke detectors in close proximity of kitchen and sleeping areas,

• Porches or decks with 3 or more steps leading to them must be protected with properly installed handrails.

• Homes located in a Special Flood Hazard Area (Zone A or V) must be covered by a Federal Flood insurance policy with matching building limit {or maximum available). This requirement also applies to condominium units on the 2nd floor and below located in a flood zone.

• Risks that exclude wind coverage must purchase a Citizens Wind-Only policy with matching limits when the risk is HRA eligible.

• POOL CAGES/SCREEN ENCLOSURES: Coverage must be bought separately.

INELIGIBLE RISKS (Applicable to both new and renewal except as noted.)

• Homes with trampolines

• Home located on more than 5 acres and located in protection class 9 or 10. • Mobile homes and prefabricated homes.

• Properties located entirely or partially over water. Risks with any prior or current sinkhole activity on the premises whether or not it results in a loss to the dwelling. (New Business only)

• Risks with vicious dogs or any mix thereof, or exotic animals or farm animals. For details see page 10.

• Homes of unconventional construction including but not limited to Log Ho mes. • Homes with wood shingled roofs.

APPLICANT

• Credit history will be evaluated for all applicants. (See Credit Guidelines p.5). • Must hold title to home with a maximum of two mortgages.

INSURANCE TO VALUE

• Risks insured on an HO3 form must be insured for 100% of replacement cost.

OCCUPANCY/USE

Residence must be:

• Owner occupied by owner's immediate family only (no roomers or boarders) unless Unit-owners Rentals to Others endorsement is purchased for HO-6. See p. 26 for details. • Occupied at least 9 months per year unless risk qualifies for exception outlined in

Secondary / Seasonal Residences (p. 3).

• Used for private residential purposes only. Coverage for business property/pursuits is limited under Section I and excluded from Section II. Incidental business occupancy that includes client traffic or contact with clients is not permitted in this program.

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American Traditions Insurance Co. 4 09/07 Homeowners Program SECONDARY/SEASONAL RESIDENCES

• A dwelling unoccupied by owner continuously for more than 3 months per year is considered seasonal

• Seasona l residences are not eligible for coverage in this program unless the residence is owner occupied continuously for a minimum of 4 months per policy year, AND

1. the residence is located within a limited access community or building (requires security guard or passkey gates), OR

2.the residence is equipped with a central station burglar and fire alarm.

AGE (at time of New Business) • 40 years or less:

o Will be issued HO-3 or HO-6 form.

o May be written on HO-3 or HO-6 with Water Damage Exclusion endorsement (10% credit) at customer’s option.

• Homes more than 40 years old must be in very good condition and will have been substantially updated.

o Also available with Water Damage Exclusion endorsement (10% credit).

ROOF (New and Renewal Business)

• Roof must be in good condition, and are subject to underwriting review. • Composition shingle roofs must have been replaced within 20 years.

HEATING AND COOLING SYSTEMS (New and Renewal Business)

• Heating/cooling system must be permanently installed. Homes utilizing space heaters, fireplaces, or wood burning stoves as their primary source of heat are ineligible.

SWIMMING POOLS (New and Renewal Business)

• Must be protected by a locking fence at least 4 ft high, or screened enclosure. Ineligible otherwise.

TOWNHOUSE / ROWHOUSE

• Each unit must be separated by parapet walls or adequate masonry firewalls(HO3 only), • There may be a maximum of 8 units per building. (HO3 Only)

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American Traditions Insurance Co. 5 09/07 CREDIT GUIDELINES

The credit of all named insureds will be reviewed in compliance with section 626-9741, F.S. and Florida Rule 698-125.004. Credit is evaluated along with prior claim history, condition of property and other risk factors.

• Credit history is ordered and a Financial Responsibility (FR) Score is determined on the Named Insured only for all new business policies. Agent must obtain permission from the applicant prior to requesting the credit report.

• An FR score of 700 or greater qualifies for a discount

• If the FR Score is below 650, a CLUE report and a property inspection report are ordered. Two or more claims and/or poor condition of the property may make the risk ineligible. • ATIC does not make adverse underwriting decisions due to credit when the FR score

cannot be generated for either a No Hit or lack of data. A No Hit/No Score qualifies for a discount.

• For insureds that have been adversely affected by their credit history, credit will be reviewed once every two years, or at the request of the insured, whichever is sooner. The insured will receive a discount if their Financial Responsibility Score has improved to 700 or above.

• Credit alone is not used to make an adverse decision regarding the acceptance of risk. However, poor credit history coupled with unfavorable claims may result in an adverse decision to accept risk. The consumer will receive an adverse notification letter if the best rate is not obtained due to credit. The specific factors include the credit issues (bankruptcy, involuntary repossessions, child support delinquency, collections, judgements, NSF check, charge off accounts and delinquencies). Any of these that cause the score to be low will be displayed in a letter to the consumer.

Additional underwriting guidelines apply to specific endorsements or optional coverages and are contained in the Coverage Options section of this manual (pp.19-26).

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Homeowners Program BINDING AUTHORITY

Agents may bind coverage on risks meeting the following criteria without contacting the company. NEW BUSINESS MAY ONLY BE BOUND VIA OUR INTERNET SYSTEM. Application must be signed and retained in the agents office.

Risk must meet the Eligibility/Underwriting guidelines presented on pgs. 3 -5. The Amount of Insurance limits on binding authority are stated on page 7. Risks may be written up to 90 days future effective.

PRIOR INSURANCE/FORCE PLACED

Risks with no prior or force placed insurance need to receive Underwriting approval prior to binding.

LOSS HISTORY

• New business risks with one previous property claim within the last 5 years (excluding acts of God) may be bound based on agent's judgment.

• New Business with any previous personal liability claims and/or 2 or more property claims within the last 5 years should be referred to company before binding.

• New business with previous water damage claim(s), or one claim over $5000, must have proof of all repairs and cause of loss in agent file.

New Business with prior loss(es) is subject to underwriter review. If the aforementioned conditions are not met we reserve the right to cancel within the first 90 days the policy is effective subject to Florida laws.

PREVIOUS CANCELLATIONS / NON-RENEWALS

Risks previously canceled for reasons' other than reduction of hurricane exposure should be referred to company before binding.

HURRICANE - TROPICAL STORM

Agents binding authority automatically terminates for new business and coverage increases when a "Hurricane or Tropical Storm Warning" has been issued by the National Weather Bureau based on the following rules:

Hurricanes: Binding is restricted when the Hurricane Watch or Warning is within the following boundaries: 72° W longitude, 15° N latitude, 90° W longitude, 32° N latitude

Tropical Storms: Binding is only restricted in areas under a tropical storm warning. The rest of the state remains open. Tropical Storms do not result in binding restrictions when they are within the latitude and longitude coordinates defined within the Hurricane binding restrictions stated above.

The Restrictions stated above do not apply to:

• Home closings (new purchases), A copy of the closing statement is required with the application.

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American Traditions Insurance Co. 7 09/07 BINDING AUTHORITY LIMITS / PROGRAM DESCRIPTION

A - Dwelling $100,000 to $35,000 to

$550,000 $100,000

B - Other structures 2% to 20% N/A

of Cov A

C - Contents Up to 75% $ 25,000 to

of Cov A $150,000

D - Loss of Use 10% of Cov A 40% of Cov C

E - Personal Liability $100,000 to $100,000 to

$300,000 $300,000

F - Medical Payments $1,000 to $1,000 to

$5,000 $5,000

LOSS SETTLEMENT

Coverage A,B,.D Coverage C

HO-3 & HO-6 Replacement Cost Actual Cash Value

COVERED PERILS

HO-6, HO-3 (Coverage C): Fire or Lightning, Windstorm or Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles or Smoke, Vandalism or Malicious Mischief, Theft, Volcanic Eruption. Falling Objects, Weight of Ice, Snow or Sleet, Accidental Discharge of Water or Steam, Sudden and accidental tearing apart of a heating system or appliance, freezing, Sudden accidental damage from Electrical Current.

HO-3 (Cov. A, B, & D), HO-6 (Cov. A): All risks with certain exceptions (exclusions).

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Homeowners Program

GENERAL RULES

POLICY TERM

The standard policy term is one year and may be extended for successive policy periods by renewal.

RENEWAL PLAN

If the company elects to offer renewal, policy may be renewed by the policyholder by paying the renewal premium prior to the expiration of the current policy. Renewal policy will be issued based on the premiums, forms and endorsement s in effect at time of renewal. A new declaration page will be issued.

CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGE

• Mandatory coverages may not be canceled unless the entire policy is canceled.

• If insurance is increased or reduced, the additional or return premium shall be computed on a pro-rata basis.

• The insured may cancel the policy at any time for any reason. We will refund any unearned premium pro rata,

MULTIPLE COMPANY INSURANCE

We will not provide coverage for a dwelling that is also covered by another insurance policy.

TRANSFER OR ASSIGNMENT

No transfers or assignments are permitted. Each insured and/or property will require submission of a new application.

SINGLE BUILDING DEFINITION

All buildings or sections of buildings that communicate through unprotected openings shall be considered as a single building. Buildings that are separated by space shall be considered as separate buildings.

Buildings or sections of buildings, which are separated by a 6- inch reinforced concrete or 8- inch masonry party wall that pierces or rises to the underside of the roof and pierces or extends to the inner side of the exterior wall, shall be considered a separate building. Accessibility between buildings with independent walls or through masonry party walls described above shall be protected by at least a Class A Fire Door installed in a masonry wall section.

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American Traditions Insurance Co. 9 09/07 PROTECTION CLASS INFORMATION

The Protection Class listings in the Public Protection Classification Manual apply. Use PC 10 for unclassified areas, in a classified area where two or more classifications are shown (e.g. 6/9), the classification is determined as follows:

Miles to Fire Station Feet to Hydrant Class

Less than 5 Less than 1,000 first PC

Less than 5 More than 1,000 9

More than 5 10

Protected Subdivision Rule: A dwelling located in a qualifying restricted subdivision will receive the rating of the responding fire department if:

• The subdivision is under development with recorded plat and paved roads where dwellings are built by licensed contractors subject to building restrictions as to type and square footage.

• The subdivision contains at least 10 houses on lots 5 acres or less.

• The subdivision is within 5 miles travel distance of a responding fire department.

• The home is located within 1,000 feet of fire hydrant, or responding fire department is equipped to transport water or pump water from swimming pools or other sources within 1,000 feet of the home.

CONSTRUCTION DEFINITIONS

• Frame - exterior wall of wood or other combustible construction, including wood- iron clad, stucco on wood or plaster on combustible supports, and aluminum or plastic siding over frame.

• Masonry Veneer - exterior walls of frame construction veneered with brick or stone. (rate as masonry).

• Masonry - exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials, and floors and roof of combustible construction.

• Superior Construction - exterior walls, floors, and roof constructed of masonry or other non-combustible materials.

Note: Mixed (Masonry/Frame) - a combination of both frame and masonry construction shall be classified as Frame when the exterior walls of frame construction {including gables) exceed 25% of total exterior wall area; otherwise classify as Masonry.

MANDATORY ENDORSEMENTS

1. Endorsement ATIC HO 09 SP 04 06 is attached to all policies. It includes the ISO Special Provisions (HO 01 09 06 94) in addition to the following:

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• Diving Board, Slide and Trampoline exclusion – excludes liability (Coverage E only) for damages caused by these items.

• Personal Watercraft Exclusion - excludes physical damage and liability coverage for any loss resulting from the ownership and operation of a personal watercraft (jet skis, wave runners, etc.)

• Additional Living Expense Loss Participation (hurricane loss only) - requires the policyholder to pay 20% of temporary living expenses for hurricane losses.

•

Amends the basic coverage form to comply with Florida Law.

• Adds Animal Liability Exclusion - excludes liability (coverage E only) for damages caused by certain animals owned by the insured. No dogs are covered unless the optional dog coverage is purchased. Refer to the list below for breeds that are ineligible for the optional dog coverage:

Class I, II or III animals requiring a permit as per FAC 68A-A.002 through 68A-A.0022 are not covered. Note that only animals requiring a permit are not covered. Here is a partial list of some animals are that are eligible for coverage:

a) reptiles and amphibians, non- venomous and unprotected. b) gerbils, hedgehogs, guinea pigs

c) shell parakeets d) hamsters e) gerbils f) canaries g) rabbits h) domestic cats

Refer to our website for complete eligibility listings.

Ineligible Dog Breeds

In order to further clarify this position, ATIC deems the following breeds or types of dogs as per se dangerous, thereby rendering the risk ineligible to be written under any

circumstances: Ø Akita Ø Chow Chow Ø Doberman Pinscher Ø German Shepherd Ø Pit Bull Ø Presa Canario Ø Rottweiler Ø Staffordshire Terrier Ø Wolf Hybrids

Ø Any mixed breed dog containing any of the above breeds, no matter what the percentage.

Ø Any dog that has ever been trained as and/or used as a guard dog or attack dog Ø Any dog that has ever been trained or used in military or police work

Ø Any dog belonging to a breed that was historically bred for fighting

Ø Any dog that has ever bitten anyone or has exhibited aggressive behavior towards people.

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American Traditions Insurance Co. 11 09/07 This is not an all-encompassing list. ATIC reserves the right to amend this list at any time. It is expected that all ATIC representatives and agents will exercise sound judgment and common sense in dealing with situations not specifically described above. In the event of any uncertainty or questions, ATIC’s Underwriting Department should be contacted for clarification or further discussion.

Windstorm Exterior Paint or Waterproofing exclusion (AT 23 70 04 06) is attached to all policies that include wind coverage in the following territories: 100-146, 180-464, 470-481. This endorsement excludes damage from windstorm or hail to all paint or waterproofing material applied to the exterior of any building or structure.

WAIVER OF PREMIUM

When a policy is first issued or endorsed after the inception date, additional or return premium of less than $5 is waived. However, we will return unearned premium upon request

PREMIUM ROUNDING

When calculating premium, adjusted base rates and premiums for each optional coverage are rounded to the nearest whole dollar before summing.

HO3 – Coverage A is rounded in increments of 1000. HO6 – Coverage C is rounded in increments of 1000

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Homeowners Program PREMIUM CALCULATION

This section provides explanation of how premiums are determined and what adjustments are applied to price each risk, Rates for optional coverages follow premium adjustments.

Two base rates apply to each territory: "Hurricane" and "Non Hurricane". Premium adjustments apply to the Hurricane Base Rate (HUR), the Non Hurricane Base Rate (NHR), or both Base Rates.

Premium adjustments are calculated by multiplying the factors provided below by the appropriate base rate (HUR, NHR, or both) to calculate adjusted base rates.

Optional coverages that result in additional premium are presented beginning on page 17. Additional premiums are presented as a dollar amount, or a percentage of the unadjusted base rates. AMOUNT OF INSURANCE HO 3 Cov A Factor HO 6 Cov A+ C Factor $75,000 1.00 $26,000 1.00

The factor for Coverage amounts greater than $75,000 for HO 3 and $26,000 for HO 6 are determined by dividing the desired coverage amount by $75,000 or $26,000 respectively.

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American Traditions Insurance Co. 13 09/07 AGE OF DWELLING

X - Wind Age of Home Credits Full Coverage Age of Home Credits

NHR HUR NHR HUR

FORM Age Factor

FORM Age Factor FORM Age Factor

FORM Age Factor

HO-3 & 6 0 0.55 HO-3 & 6 2005+Newer* 0.76 HO-3 & 6 0 0.65 HO-3 & 6 2005+Newer* 1.00

1 0.55 2004* 0.83 1 0.65 2004* 1.00 2 0.60 2003* 0.91 2 0.65 2003* 1.00 3 0.60 2002* 0.95 3 0.65 2002* 1.00 4 0.60 2001 0.95 4 0.65 2001 0.95 5 0.60 2000 0.95 5 0.65 2000 0.95 6 0.65 1999 0.95 6 0.65 1999 0.95 7 0.70 1998 0.95 7 0.70 1998 0.95 8 0.70 1997 0.95 8 0.70 1997 0.95 9 0.75 1996 0.95 9 0.75 1996 0.95 10 0.84 1995 1.00 10 0.84 1995 1.00 11 0.84 1994 1.20 11 0.84 1994 1.20 12 0.90 1993 1.35 12 0.90 1993 1.35 13 0.92 1992 1.50 13 0.92 1992 1.50 14 1.00 1991 1.50 14 1.00 1991 1.50 15 1.05 1990 1.50 15 1.05 1990 1.50 16-17 1.15 1989 1.50 16-17 1.15 1989 1.50 18-19 1.38 1987-88 1.50 18-19 1.38 1987-88 1.50 HO-3 & 6 20-21 1.38 HO-3 & 6 1982-86 1.45 HO-3 & 6 20-21 1.38 HO-3 & 6 1982-86 1.45 22-24 1.70 1977-81 1.40 22-24 1.70 1977-81 1.40 25-30 1.70 1972-76 1.40 25-30 1.70 1972-76 1.40 31-40 1.50 1962-71 1.30 31-40 1.50 1962-71 1.30 41-50 1.20 1952-61 1.30 41-50 1.20 1952-61 1.30 51& + 1.20 1951 & + 1.20 _{51 & + 1.20} 1951 & + 1.20

Age is determined by subtracting the year in which construction of the residence was completed from the year in which the policy is effective.

The maximum age of a dwelling written on an HO3 form is 75 years.

TOTAL RENOVATIONS

If acceptable documentation demonstrates that a residence has been totally* renovated, the year in which the total renovation began may be used as the date of construction. Total renovation will require a new company certificate of occupancy, totally new electrical, plumbing (above the slab), heating and A/C, roof and window systems, and must be verified by a certified inspector based on an on site inspection.

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Homeowners Program PROTECTION CLASS / CONSTRUCTION

Apply to Non Hurricane Base Rate (NHR):

Frame HO6 Frame HO6 HO3 Masonry HO6 HO3 Superior HO6 HO3 1-6 7 8 9 10 1.10 1.50 1.60 2.10 2.75 1.00 1.30 1.40 2.30 2.50 1.05 1.10 1.15 1.20 1.25 0.87 1.00 1.00 1.45 1.50 1.00 1.05 1.10 1.20 1.25 0.75 0.80 0.90 1.00 1.25 Apply to Hurricane Base Rate (HUR):

Construction Factor Frame Masonry Superior 1.00 .80 .75

BUILDING CODE EFFECTIVENESS GRADING

The Building Code Effectiveness Grading Schedule develops a grade of 1 to 10 for a community based on the adequacy of its building code and the effectiveness of its enforcement of that code. Policies may be eligible for special rating adjustments subject to the criteria in this section. In some communities, two Building Code Effectiveness Grades may be assigned. One grade will apply to 1 and 2 family dwellings and the other to multiple unit dwellings. The

Public Protection Classification Manual will indicate the application of each grade.

The Building Code Effectiveness Grades for a community, and their effective dates, are provided in the Public Protection Classification Manual published by ISO Commercial

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American Traditions Insurance Co. 15 09/07 BUILDING CODE EFFECTIVENESS GRADING (cont.)

Community Grading

• The Building Code Effectiveness Grade applies to any building that has an original certificate of occupancy dated in the year of the effective date of the community grading, or later.

• If a community is regraded subsequent to its initial grading, the factor for the revised grade applies to buildings that have an original certificate of occupancy dated the year of the effective date of the revised grading, or later.

• Where certificates of occupancy are not issued, reasonable evidence of year of construction will be accepted.

• If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community applicable at the time the

reconstruction is completed will apply.

Individual Grading

Where buildings have been built in full conformance with the natural hazard mitigation elements of one of the nationally recognized building codes even though the community grade is greater than 1, or the community is not participating in the program, exception rating procedures may apply.

Any building may be classified as Grade 1 for Windstorm/Hail upon certification by a registered or licensed design professional based on an on-site inspection, that such building is in

compliance with one of the three nationally recognized building codes with respect to mitigation of the windstorm and/or hail hazard. This classification is effective only from the date of the certification.

Ungraded and Nonparticipating Risks

Buildings that do not meet the criteria above for community or individual grading should be coded as "Up graded". Do not classify as 10.

Grade Factor HUR NHR 1 2 3 4 5 6 7 8 9 10 Ungraded 0.88 0.91 0.92 0.94 0.95 0.97 0.98 0.98 0.99 1.00 1.01 0.97 0.97 0.97 0.98 0.98 0.98 0.99 0.99 0.99 1.00 1.01

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Homeowners Program PREMIUM FACTORS - NON HURRICANE BASE RATE

Applicable Credits/Debits (subject to a maximum discount of 40% of the Non Hurricane Rate (NHR x Amt of Ins X PC/Const Factor X Age of Dwelling x BCEG code) The Sprinkler system discount is not subject to the minimum factor cap)

Factor/Discount

Secured Community/Building Credit:

• A single entry leads into the sub-division (applies to HO3) or

community is protected by 24- hour security patrol. .90/.10 • 24 hour- manned gates protect all entrances to community

or passkey gates protect all entrances to the community. .85/.15 HO6 policies qualify for the same credits if the building or complex is

protected as required for the community on HO3.

Financial Responsibility:

Financial responsibility credits are available based on an independent grade derived from applicants' credit record.

Level 1: Score of 700-749 .90/.10

Level 2: Score of 750 or greater .80/.20

Protective Devices

• Fire alarm reporting to fire or central station. .90/10

or Complete home sprinkler system .85/.15

• Complete local burglar alarm (covers all exterior doors & windows) .95/.05 or Complete burglar alarm reporting to police or central station .90/.10

Miscellaneous Credit/Debits

Smoker surcharge (Any resident smokes tobacco products) 1.05/-.05

Senior/retiree discount .90/.10

Applicant has attained age of 50

Wood Burning stove 1.10/-.10

Companion Policy discount .95/.05

Accredited Builder discount .95/.05

Hardiplank Siding discount .95/.05

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American Traditions Insurance Co. 17 09/07 PREMIUM FACTORS - HURRICANE BASE RATE

Windstorm Loss Mitigation Features

Roof Covering – Roof covering performance is important since partial loss of the covering allows hurricane rainwater to enter the building.

Roof Deck – Roof deck attachment during a hurricane is critical to the survival of the building. Once the building loses one or more pieces of roof deck the losses increase exponentially due to the vast amounts if water that enters the building.

Roof-to-Wall Connection – One of the most important connections in a house is the roof-to-wall connection. The critical loads on the roof are negative (suction) pressures that produce uplift forces on the roof. Toe- nailed roof-to-wall connections, a relatively common building practice in the past, are especially vulnerable to failure. Properly installed hurricane straps that connect the roof truss to the wall frame generally provide for adequate resistance to uplift roof failures.

Roof Shape – The shape of the roof influences the aerodynamic loads experienced by the roof covering, roof deck, roof framing and connections.

Opening Protection – Openings include windows, doors, sliding glass doors, skylights, garage doors, etc. Openings can fail in various ways. The most common is from impact by wind-borne debris. Once the building envelope is breached, the internal pressures build up and increase the likelihood of roof failures. Garage doors and other doors and skylights are also vulnerable to failure. Any glazed opening, unless it is protected or is impact resistant, is highly vulnerable to failure from flying debris.

Terrain Exposure:

Exposure C – Broward and Miami-Dade counties (HVHZ), barrie r islands, and 1500 ft from the coastline in the rest of the state.

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American Traditions Insurance Co. 19 09/07 FBC 2001 CONSTRUCTION - OTHER ROOF SHAPE

FBC WIND INTERNAL NO OPENING

WIND SPEED PRESSURE PROTECTION

ROOF TERRAIN SPEED OF DESIGN

DECK EXPOSURE (MPH) (MPH) DESIGN WBDR NO SWR SWR

OTHER B 100 =100 ENCLOSED NO 0.68 0.69

ROOF DECK B 110 =110 ENCLOSED NO 0.72 0.73

OR B =120 =120 ENCLOSED NO 0.74 0.75

DIMENSIONAL B OR C =120 =120 ENCLOSED / PART. ENCL YES 0.77 0.80

LUMBER DECK HVHZ ENCLOSED YES

FBC WIND INTERNAL OPENING

ROOF TERRAIN SPEED OF DESIGN WINDOWS OR ALL

OR B =120 =120 ENCLOSED NO 0.79 0.79

LUMBER DECK HVHZ ENCLOSED YES 0.82 0.84

FBC = FLORIDA BUILDING CODE

HVHZ = HIGH VELOCITY HURRICANE ZONE (Miami-Dade and Broward counties, FBC sections 202 AND 1611ff) WBDR = WIND BORNE DEBRIS REGION

SWR = SECONDARY WATER RESISTANCE

REINFORCED CONCRETE ROOF DECK includes SWR; Integral with Reinforced Masonry Walls PART. ENCL = PARTIALLY ENCLOSED

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FBC 2001 CONSTRUCTION - HIP ROOF

FBC WIND INTERNAL NO OPENING

ROOF TERRAIN SPEED OF DESIGN

OR B =120 =120 ENCLOSED NO 0.78 0.78

LUMBER DECK HVHZ ENCLOSED YES

REINFORCED B ANY ENCLOSED NO 0.81

CONCRETE B ANY ENCLOSED / PART. ENCL YES 0.82

ROOF C ANY ENCLOSED / PART. ENCL YES 0.81

DECK HVHZ ENCLOSED YES

FBC WIND INTERNAL OPENING

ROOF TERRAIN SPEED OF DESIGN WINDOWS OR ALL

OR B =120 =120 ENCLOSED NO 0.82 0.82

LUMBER DECK HVHZ ENCLOSED YES 0.85 0.86

REINFORCED B ANY ENCLOSED NO 0.85

CONCRETE B ANY ENCLOSED / PART. ENCL YES 0.85

ROOF C ANY ENCLOSED / PART. ENCL YES 0.89

DECK HVHZ ENCLOSED YES 0.89

FBC = FLORIDA BUILDING CODE

HVHZ = HIGH VELOCITY HURRICANE ZONE () WBDR = WIND BORNE DEBRIS REGION SWR = SECONDARY WATER RESISTANCE

REINFORCED CONCRETE ROOF DECK includes SWR; Integral with Reinforced Masonry Walls PART. ENCL = PARTIALLY ENCLOSED

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American Traditions Insurance Co. 21 09/07 Wind Resistive Features for Existing Construction

Roof Covering

The most common roof covering material in Florida are composition shingles and tiles. Other roof covering materials used in residential construction in Florida includes built- up, metal, slate, wood shakes, and single ply membranes. A key factor in roof covering performance is the method of attachment of the roof covering to the roof deck.

The Florida Building Code 2001 has material requirements and attachment specifications that are superior to common roof covering building practices in the past. For composition shingles, these requirements include improved self- seal strips and compliance with ASTM D-3161 (Modified for 110 mph). Thus requirement is commonly referred to as the “110 mph” rated shingle. The roof covering specifications of the 1994 SFBC also require improved attachment methods and testing to a similar protocol. Therefore, these roof coverings are considered to be sufficiently similar to FBC roof coverings to be classified in the “FBC Equivalent” category

The rating of roof covering for existing construction can be achieved by requiring the roofing contractor to certify that a prior installation met the 1994 SFBC or the FBC 2001 requirements. Otherwise, the current house roof covering should be rated as non-FBC equivalent.

Secondary Wate r Resistance (SWR)

Secondary water resistance (SWR) is a layer of protection that protects the building if the roof covering fails. SWR was included in the FWUA class plan because of its cost-effectiveness as a mitigation technique. This mitigation techniq ue is aimed at keeping rain water out of the house once the roof covering fails.

Generally, roof coverings begin to peel off in peak wind gusts ranging from about 70 to 100 mph. The underlayment (felt) also is easily torn and becomes separated from the roof deck, exposing the house interior to water damage. Water enters through the space between pieces of the roof deck. SWR covers these seams and provides for a redundant water proofing of the house.

Roof-to-Wall Connection

The roof-to-wall connection is another critical connection that keeps the roof on the building and acts to transfer the uplift loads into the vertical walls. This connection is key to the performance of the building due to the large negative pressures acting on the roof.

There are several manufacturers of metal connectors for hurricane uplift connectors and each company has a fairly wide load line of products, The most important feature of any of these connectors, other than toe nails, is that the fasteners used to transfer the loads from rafter/truss to strap to top plate or side wall are always loaded in shear (perpendicular to the nail direction), or the strap is embedded into the bond beam of the masonry wall. Proper installation is critical to connector performance.

Toe Nail Co nnection – where approximately 3 nails are driven at an oblique angle through the rafter and into the top plate.

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Clips – pieces of metal that are nailed into the side of the rafter/truss and into the side of the top plate or wall stud. The metal does not wrap around the top of the rafter/truss, and the clip is only located on one side of the connection.

Wraps – The wrap style straps are attached to the side and/or bottom of the top plate and are nailed to the rafter/truss. Straps that are wrapped on both sides have double the capacity of a single strap.

Roof Deck Attachment

The most common roof deck types are plywood and Oriented Strand Board (OSB) decks. Prior to the availability of plywood, the most common roof decking materia l was dimensional lumber or tongue and groove (T&G) boards. Dimensional lumber or T&G are usually 4” to 8” wide boards that are nominally 1” thick (3/4” actual thickness) and are laid in a fashion that is parallel to the ridge. These roof decks are fastened by at least two nails per truss/rafter connection. Because of the inherently large number of nails in dimensional lumber or T&G, the uplift capacity is generally far greater than typical plywood/OSB decks.

By far the most important feature of roof decks is the attachment to the framing, which is usually achieved by nail fasteners. Nail size, type, spacing, and penetration depth into the truss or rafters determine the uplift resistance of the deck.

The thickness of the deck material is important primarily in the determination of the penetration of the nail into the truss/rafter. Prescriptive building codes specify longer nails for thicker decks. For existing construction, the only practical way to determine deck type and fastener type and spacing is by a trained inspector going into the attic.

Level A Roof Deck Attachment – Plywood/OSB nailed with 6 penny common nails at 6” spacing on the edge and 12” in the field on 24” truss spacing.

Level B Roof Deck Attachment – Plywood/OSB nailed with 8 penny common nails at 6” spacing on the edge and 12” in the field on 24” truss spacing.

Level C Roof Deck Attachment – Plywood/OSB nailed with 8 penny common nails at 6” spacing on the edge and 6” in the field on 24” truss spacing. Within 4’ of a gable end the nail spacing is 4”.

Level D Roof Deck Attachment – Dimensional lumber and Tongue & Groove Decks.

Concrete Roof Deck – A reasonable requirement for this type of construction is that the roof deck be designed and constructed in accordance with the provisions of ACI

(American Concrete Institute) 318, including integral construction with a masonry wall system.

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American Traditions Insurance Co. 23 09/07 Roof Shape

Roof shape refers to the geometry of the roof and not the type of roof covering. There are many common roof shapes in residential construction. Gable and hip are the most common, although flat, Dutch hip, gambrel, mono slop and many shape combinations are possible.

Gable roofs have vertical walls that extend all the way to the top of the inverted V, and are common throughout Florida. A hip roof has slopping ends and slopping sides down to the roof eaves line.

Roof shape determines the aerodynamic pressure loads experienced by the roof due to the wind flow and wind direction.

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Homeowners Program TERRAIN B ROOF SHAPE HURRICANE PREMIUM CREDITS FOR EXISTING CONSTRUCTION OTHER HIP

ROOF ROOF DECK ROOF-WALL OPENING

COVER ATTACHMENT CONNECTION PROTECTION NO SWR SWR NO SWR SWR

None 0.00 0.06 0.47 0.50

TOE NAILS Basic - Windows or All 0.35 0.42 0.62 0.65 Hurricane - Windows or All 0.44 0.51 0.66 0.70

None 0.35 0.42 0.62 0.66

CLIPS Basic - Windows or All 0.47 0.54 0.68 0.73 NON - FBC A Hurricane - Windows or All 0.50 0.57 0.70 0.74 EQUIVALENT (6d @ 6" / 12") None 0.35 0.43 0.62 0.67 SINGLE WRAPS Basic - Windows or All 0.47 0.55 0.68 0.73 Hurricane - Windows or All 0.50 0.58 0.70 0.74

None 0.35 0.43 0.62 0.66

DOUBLE WRAPS Basic - Windows or All 0.47 0.55 0.68 0.73 Hurricane - Windows or All 0.50 0.58 0.70 0.74

None 0.09 0.14 0.49 0.52

None 0.58 0.65 0.68 0.73

CLIPS Basic - Windows or All 0.65 0.70 0.73 0.76 NON - FBC B Hurricane - Windows or All 0.66 0.72 0.73 0.77 EQUIVALENT (8d @ 6" / 12") None 0.60 0.68 0.68 0.73 SINGLE WRAPS Basic - Windows or All 0.67 0.73 0.73 0.77 Hurricane - Windows or All 0.68 0.73 0.73 0.77

None 0.60 0.68 0.68 0.73

None 0.09 0.14 0.49 0.51

C TOE NAILS Basic - Windows or All 0.46 0.51 0.63 0.66 (8d @ 6" / 6") Hurricane - Windows or All 0.57 0.61 0.68 0.71

None 0.59 0.65 0.68 0.73

AND CLIPS Basic - Windows or All 0.65 0.70 0.73 0.76 NON - FBC Hurricane - Windows or All 0.67 0.72 0.73 0.77

EQUIVALENT D None 0.62 0.69 0.68 0.73

(8d @ 6" / 6") SINGLE WRAPS Basic - Windows or All 0.68 0.73 0.73 0.77 DIMENSIONAL Hurricane - Windows or All 0.68 0.74 0.73 0.77

LUMBER None 0.62 0.70 0.68 0.73

DECK DOUBLE WRAPS Basic - Windows or All 0.68 0.74 0.73 0.77 Hurricane - Windows or All 0.69 0.74 0.73 0.77

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Homeowners Program TERRAIN C

ROOF SHAPE

HURRICANE PREMIUM CREDITS FOR EXISTING CONSTRUCTION OTHER HIP

None 0.00 0.07 0.28 0.32

None 0.18 0.26 0.44 0.51

CLIPS Basic - Windows or All 0.38 0.48 0.64 0.72 NON - FBC A Hurricane - Windows or All 0.44 0.54 0.68 0.76 EQUIVALENT (6d @ 6" / 12") None 0.20 0.28 0.45 0.51 SINGLE WRAPS Basic - Windows or All 0.39 0.49 0.64 0.72 Hurricane - Windows or All 0.44 0.54 0.68 0.76

None 0.21 0.28 0.45 0.51

None 0.09 0.14 0.29 0.33

None 0.38 0.44 0.57 0.65

CLIPS Basic - Windows or All 0.63 0.71 0.73 0.79 NON - FBC B Hurricane - Windows or All 0.69 0.78 0.76 0.83 EQUIVALENT (8d @ 6" / 12") None 0.48 0.58 0.60 0.71 SINGLE WRAPS Basic - Windows or All 0.67 0.76 0.74 0.81 Hurricane - Windows or All 0.70 0.80 0.76 0.83

None 0.51 0.63 0.61 0.72

None 0.09 0.14 0.29 0.33

None 0.39 0.45 0.57 0.65

AND CLIPS Basic - Windows or All 0.64 0.71 0.73 0.79 NON - FBC Hurricane - Windows or All 0.71 0.79 0.76 0.83

LUMBER None 0.55 0.71 0.61 0.74

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Homeowners Program TERRAIN B ROOF SHAPE

None 0.11 0.14 0.55 0.56

None 0.49 0.50 0.72 0.73

CLIPS Basic - Windows or All 0.60 0.62 0.78 0.78 FBC A Hurricane - Windows or All 0.63 0.65 0.79 0.80 EQUIVALENT (6d @ 6" / 12") None 0.49 0.50 0.72 0.73 SINGLE WRAPS Basic - Windows or All 0.60 0.62 0.78 0.78 Hurricane - Windows or All 0.63 0.65 0.79 0.80

None 0.49 0.51 0.72 0.73

None 0.18 0.20 0.57 0.57

None 0.70 0.71 0.78 0.79

CLIPS Basic - Windows or All 0.75 0.76 0.81 0.82 FBC B Hurricane - Windows or All 0.77 0.78 0.82 0.83 EQUIVALENT (8d @ 6" / 12") None 0.73 0.74 0.78 0.79 SINGLE WRAPS Basic - Windows or All 0.78 0.79 0.82 0.83 Hurricane - Windows or All 0.78 0.80 0.82 0.83

None 0.73 0.75 0.78 0.79

None 0.18 0.20 0.57 0.57

None 0.70 0.72 0.78 0.79

AND CLIPS Basic - Windows or All 0.76 0.77 0.81 0.82 FBC Hurricane - Windows or All 0.78 0.78 0.82 0.83

LUMBER None 0.74 0.76 0.78 0.79

None 0.82

REINFORCED CONCRETE ROOF DECK Basic - Windows or All 0.84

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American Traditions Insurance Co. 27 09/07 TERRAIN C ROOF SHAPE

None 0.07 0.10 0.33 0.36

None 0.28 0.30 0.53 0.54

CLIPS Basic - Windows or All 0.50 0.53 0.73 0.76 FBC A Hurricane - Windows or All 0.56 0.58 0.78 0.80 EQUIVALENT (6d @ 6" / 12") None 0.30 0.32 0.53 0.55 SINGLE WRAPS Basic - Windows or All 0.51 0.54 0.73 0.76 Hurricane - Windows or All 0.56 0.59 0.78 0.80

None 0.30 0.33 0.53 0.55

DOUBLE WRAPS Basic - Windows or All 0.51 0.54 0.73 0.76 Hurricane - W indows or All 0.56 0.59 0.78 0.80

None 0.15 0.18 0.35 0.37

None 0.46 0.48 0.66 0.68

CLIPS Basic - Windows or All 0.71 0.74 0.81 0.83 FBC B Hurricane - Windows or All 0.78 0.81 0.84 0.86 EQUIVALENT (8d @ 6" / 12") None 0.58 0.61 0.71 0.74 SINGLE WRAPS Basic - Windows or All 0.76 0.79 0.83 0.85 Hurricane - Windows or All 0.80 0.83 0.84 0.86

None 0.63 0.67 0.72 0.76

None 0.15 0.18 0.35 0.37

None 0.46 0.48 0.66 0.69

AND CLIPS Basic - Windows or All 0.73 0.74 0.81 0.83 FBC Hurricane - Windows or All 0.80 0.82 0.84 0.86

LUMBER None 0.68 0.74 0.73 0.78

None 0.80

REINFORCED CONCRETE ROOF DECK Basic - Windows or All 0.88

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COVERAGE OPTIONS

DEDUCTIBLES

For all perils except hurricane (apply to NHR)

For losses due to Hurricane (apply to HUR – HO3 & HO8 only)

Deductible

$500 2% Cov A 5% Cov A 10% Cov A

$100,000 - 200,000 1.00 0.76 0.70 0.55

>$200,000 1.00 0.75 0.70 0.55

For losses due to Hurricane (apply to HUR – HO6 only)

Deductible

$500 $1000 $2500 $5000

1.00 0.95 0.85 0.70

If there is more than one hurricane loss in a calendar year, the insured’s deductible will be larger of the remaining dollar amount of the calendar year hurricane deductible or the deductible that applies to fire that is in effect at the time of the loss.

WINDSTORM OR HAIL EXCLUSION

The perils of Windstorm and Hail may be excluded in areas where coverage is available from Citizens Property and Casualty. Further, we will require this endorsement in some territories based on capacity. When wind and hail are excluded, apply the following premium factors:

NHR: .95 HUR: .00 WATER DAMAGE EXCLUSION

The peril of Water Damage may be excluded resulting in a lower premium, in addition to what is automatically excluded in the policy, this endorsement will exclude discharge or overflow of water or steam from within a plumbing, heating, A/C, automatic sprinkler system or from within a household appliance; as well as water penetrating through the roof or exterior walls or windows whether or not driven by wind unless water penetration is a direct result of damage caused by wind or hail. When water damage is excluded, apply the following factors:

NHR: .90 HUR: .00 Amount Factor $500 1,000 2,500 5,000 1.00 0.85 0.80 0.77

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American Traditions Insurance Co. 29 09/07 POOL CAGES, SCREEN ENCLOSURES, AND CARPORTS

There is no coverage for hurricane in the base policy for pool cages, screen enclosures and carports. This additional coverage must be purchased separately. Maximum limit is $50,000. Does not increase Coverage A limit. THIS COVERAGE IS ACTUAL CASH VALUE.

Rates

Coastal Counties: $15 per $1000 Inland Counties: $10 per $1000

LIMITS OF COVERAGES B and C - HO 3 Only Coverage B - Other Structures

Insured may select desired coverage limit for othe r structures located on the residence premises. Other structures may not be rented to others, or used by non-related persons for residence purposes.

Minimum coverage equal to 2% of coverage A is included in the basic policy. The following additional coverages are available (apply to NHR and HUR):

% of Cov A Factor 5% 1.025 10% 1.06 15% 1.10 20% 1.14 Coverage C - Contents

Insured must select desired coverage limit for personal property. Coverage C is available in 5% increments (of Coverage A) to maximum 75%. Base rates include contents coverage equal to 50% of Coverage A. % of Cov A Factor HUR NHR 0% .70 .80 25% .85 .925 50% 1.00 1.00 75% 1.15 1.125

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Homeowners Program INCREASED SECTION II LIMITS

All policy forms provide basic limits of $100,000 per occurrence for Coverage E, and $1,000 per person for Coverage F.

Additional premium for increased limits in Broward, Dade, Indian River, Martin, Palm Beach and St. Lucie:

Additional premium for increased limits in all other counties not listed above:

Coverage E - Liability

Limit Additional Premium

Coverage F - Medical Payments Limit Additional Premium

$200,000 $10 $2,500 $6

$300,000 $15 $5,000 $10

PERSONAL INJURY COVERAGE

Provides liability coverage for personal injury to others for offenses such as false arrest, detention or imprisonment, libel, slander, defamation of character, invasion of privacy, and wrongful eviction or wrongful entry.

Additional premium: $15 ORDINANCE OR LAW COVERAGE

Provides coverage for increases in cost of reconstruction, repair, or demolition of property that result from local laws or ordinances regulating such. Additional coverage provided by this endorsement is limited to 10%, 25% or 50% of the Coverage A policy limit.

Per Florida Statute 627.7011 (b), the 25% endorsement will automatically be provided to any H03 policy issued unless the insured signs a rejection or purchases the 10 % or 50% option. Houses older than 16 years old and older will receive an endorsement limiting roof surfacing coverage to actual cash value unless proof is provided evidencing a roof replacement in the last 10 years. The endorsement is available on all forms. We also provide a 10% option.

Additional premium:

10% HO 3 & 6 1% of NH Base X Amt of Ins Factor X PC Factor) +

1% of HUR Base X Amt of Ins Factor X Const Factor)

5% of HUR Base X Amt of Ins Factor X Const Factor)

10% of HUR Base X Amt of Ins Factor X Const Factor) Coverage E - Liability

Limit Additional Premium

Coverage F - Medical Payments Limit Additional Premium

$200,000 $20 $2,500 $6

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American Traditions Insurance Co. 31 09/07 INCREASED REPLACEMENT COST ON DWELLING (HO 3 ONLY)

This endorsement is intended to cover additional costs of construction that are incurred due to increases in the cost of construction that occur during the policy period. Increased construction cost is normally the result of increased demand relative to supply of labor and materials that can occur subsequent to a catastrophic loss that impacts a substantial number of properties in a region. Additional coverage provided by this endorsement is limited to a maximum of 20% of Coverage A.

Coverage must be written for 100% of replacement cost at policy inception.

This endorsement does not cover increased construction costs attributable to laws or ordinances governing construction.

Additional premium: (5% of NH Base X Amt of Ins Factor X PC Factor)+ (5% of HUR Base X Amt of Ins Factor X Const Factor) PERSONAL PROPERTY REPLACEMENT COST COVERAGE (ALL FORMS)

Provides for settlement of losses for contents coverage {Coverage C) on a replacement cost Basis. ACV is paid, when replacement made will pay difference.

HO3 (10% of NH Base X Amt of Ins Factor X PC Factor)+ (10% of HUR Base X Amt of Ins Factor X Const Fact or) HO6 (20% of NH Base X Amt of Ins Factor X PC Factor)+

(20% of HUR Base X Amt of Ins Factor X Const Factor)

SPECIAL PERSONAL PROPERTY COVERAGE- Not available for x-wind policies

Provides all risk coverage on contents.

HO3 (10% of NH Base X Amt of Ins Factor X PC Factor)+ (10% of HUR Base X Amt of Ins Factor X Const Factor) HO6 (20% of NH Base X Amt of Ins Factor X PC Factor)+

(20% of HUR Base X Amt of Ins Factor X Const Factor)

PERSONAL PROPERTY - UNSCHEDULED (ALL FORMS) (Not Available with x-wind; special personal property coverage is mandatory with this coverage.)

The special limits of liability in the policy for jewelry, watches, furs ($1,000) and silverware, goldware, pewterware {$2,500} may be increased as follows:

Jewelry, Watches and Furs: The special limit of liability of $1,000 may be increased to a maximum of $5,000, but not to exceed $1,000 for any one article. The additional premium shall be $18 for each $1,000 of increased coverage.

Silverware. Goldware and Pewterware: The special limit of liability of $2,500 may be increased to a maximum of $10,000. The additional premium shall be $6.50 for each $1,000 of increased coverage.

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Homeowners Program PERSONAL PROPERTY - SCHEDULED (ALL FORMS)

Additional risks coverage may be purchased for the following classes of property.

Property Rate per $100

Antiques Bicycles

Cameras & Projection Equipment (non professional) Coins Fine Arts No breakage Breakage Furs Golfer's Equipment Guns: Collectible Fired Jewelry

Miscellaneous Personal Property Musical Instruments

(non- professional) Other Sports Equipment Silverware Stamps $.90 9.35 1.52 1.80 .50 1.00 .40 1.40 1.50 3.00 2.00 1.00 .60 2.00 .45 .80 Underwriting Guidelines:

• Max schedule cannot exceed 25% of Coverage A.

• Appraisals or bills of sale less than 3 years old must accompany single items worth $2,500 or more. (Copy is acceptable)

• Jewelry items worth $5,000 or more must be kept in a secure location.

• Schedules, which total over $20,000 or include individual items worth more than $5,000 should be submitted for approval prior to binding.

• Central station burglar alarm is required for schedules over $20,000.

• Prior approval is required for Personal Property floaters on homes in windpool eligible areas or within 1500 feet of tidal water, or located in ISO protection classes 9 or 10.

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American Traditions Insurance Co. 33 09/07 LOSS ASSESSMENT COVERAGE

Provides increased coverage for assessments relating to the residence premises. The basic policy includes $1,000 coverage only at inception or upon renewal.

LIMITED FUNGI, WET OR DRY ROT, OR BACTERIA INCREASED COVERAGE

The basic policy includes $10,000 coverage for Fungi (Mold), Wet or Dry Rot or Bacteria. Coverage can be increased as below only ar inception or renewal..

Additional premium:

Any request for the $50,000 limit will be on a NON-BINDING Basis. ATIC will perform a/or require physical inspection of the home and the increased limits will be added to the policy upon underwriting approval. We reserve the right to do require additional underwriting steps.

Limit Premium

$ 5,000 $15

10,000 25

Amount Premium

$25,000 each covered loss/ $50,000 Policy aggregate $50,000 each covered loss/ $50,000 Policy aggregate

$60 $90

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Homeowners Program GOLFCART PHYSICAL DAMAGE AND LIABILITY COVERAGE

Extends section I and II coverages to losses arising from the ownership and operation of a golf cart. Coverage does not apply when golf cart is:

• used to carry persons for a charge, • used for business purposes,

• rented to others,

• being used outside the boundaries of a retirement community or limited access community unless being used for golfing purposes or traveling to or from a golf course. Option 1: For an additional premium of $75, Endorsement ATIC HO 09 GC includes special limits of liability as follows:

• Coverage C - Personal Property: $ 5,000 • Coverage E - Personal Liability: $ 50,000 • Coverage F - Medical Payment to Others: $ 5,000

* The Coverage E limit is increased to meet the underlying limit required by excess umbrella policy covering the insured subject to a maximum limit of $100,000.

ANIMAL LIABILITY COVERAGE

Extends section II coverage to losses arising from animals you own or keep subject to the limits, exclusions and conditions listed in your policy. This coverage does not cover losses resulting from the prohibited breeds of dogs stated under Ineligible Risks on pg.10.

For an additional premium of $25, Endorsement ATIC HO 09 DL includes special limits of liability as follows:

• Coverage E - Personal Liability: $ 50,000 •

The limits of liability shown above replace the limits of liability shown on the declarations page for any and all covered losses resulting from animals.

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American Traditions Insurance Co. 35 09/07 UNIT-OWNERS RENTAL TO OTHERS

Provides section I and II coverages when a condominium unit is rented or held for rental to others. Theft coverage is limited by the endorsement while the unit is rented to others.

Underwriting guidelines:

• Insured must occupy the unit as their primary residence at least 4 months each year. • Condominium unit must be located in a limited access complex or building. Limited

access normally requires a 24- hour security guard.

• Unit may only be rented on a long-term Basis. Units available for rental for periods of less than 1 week are not eligible,

• Units rented on a weekly Basis (1-3 week periods) must be submitted to ATIC for underwriting and binding of coverage.

Additional Premium

• Long-Term Rental-For Units rented on a monthly or yearly Basis, the additional premium is 25% of NH Base x Amount of Insurance Factor x PC Factor.

• Short-Term Rental-For Units rented on a weekly Basis, the additional premium is 25% of NH Base x Amount of Insurance Factor x PC Factor plus $50.

WATER BACK UP AND SUMP OVERFLOW

The policy may be endorsed to provide coverage for loss resulting from water which backs up through sewers or drains or which overflows from the sump. The limit of liability under this option is $5,000. The policy deductible or $1,000, whichever is greater, applies. This endorsement is only available at inception or upon renewal.

Additional premium: $25

OTHER INSURED LOCATION - NO COVERAGE

This program does not permit liability coverage for other residences owned by the insured regardless of occupancy. We will provide both property and liability coverage for second residences rented to others or used on a seasonal Basis in our Dwelling Fire program.

BUSINESS PURSUITS - NO COVERAGE

This program does not offer coverage for liability arising out of business activities. Applicants that conduct business from residence that includes client traffic or contact are not eligible for this program.

INCIDENTAL OCCUPANCIES - NO COVERAGE

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Homeowners Program ADDITIONAL FEES

Florida Hurricane Catastrophe Fund Emergency Assessment

Florida Hurricane Catastrophe Fund (FHCF) Assessment of 1.0% Effective January 1, 2007 (Non – Commissionable) (Note – not submitted to OIR for approval).

Citizens Property Insurance Corporation (CPIC) Emergency Assessment

Citizens Property Insurance Corporation (CPIC) Emergency Assessment of 1.4% Effective July 1, 2007 (Non – Commissionable) (Note – not submitted to OIR for approval).

Emergency Management Preparedness and Assistance Trust Fund Surcharge

A fully earned annual surcharge of $2.00 will be imposed on every homeowners policy.

MGA Fee

A fully earned MGA fee of $25.00 is to be charged on each policy subject to F.S, 626,7451(11).

PAYMENT PLANS

ATIC does not accept premium financing.

General Rules: The Payment Plan applies to policy premium only. All policy fees are due at policy inception. Policy fees DO NOT include pay plan fees. The selected payment plan must be indicated on the application. All future renewals will be billed by the same plan unless otherwise instructed by the insured or agent.

Payment Fee Schedule:

• 1 Pay Plan: Full payment at inception.

• 2 Pay Plan: 50%/50%, plus a $5 service charge with each installment. • 3 Pay Plan: 40%/30%/30%, plus a $5 service charge with each installment. • 4 Pay Plan: 25%/25%/25%/25%, plus a $5 service charge with each installment. The $5 fee applies to ALL payments and play plans except the 1 Pay Plan.

The Following Methods of Payment are Acceptable:

• 1 Pay Plan: Full payment of the total annual premium plus all policy fees at the inception of the policy.

• 2 Pay Plan: 50% of the total premium, plus fees, at the inception of the policy with the remaining 50% of the premium due 60 days after the inception of the policy. A $5 service charge is applicable to both installments.

• 3 Pay Plan: 40% of the total premium, plus fees, at the inception of the policy with the remaining 60% of the premium due in two equal installments 60 and 120 days after the inception of the policy. A $5 service charge is applicable to all installments.

• 4 Pay Plan: 25% of the total premium, plus fees, at the inception of the policy with the remaining 75% of the premium due in three equal installments 60, 120, and 180 days after the inception of the policy. A $5 service charge is applicable to all installments.

Optional Pay Plans

o Quarterly Pay Plan: 25% of the total premium, plus fees, at the inception of the policy with the remaining 75% of the premium due in three equal installments 90, 180, and 270 days after the inception of the policy. A 18% annual simple interest service charge is applicable to each installment (2nd, 3rd and 4th payment). The 18% annual simple interest service charge is calculated on the unpaid balance excluding the FHCF and Citizens Assessments, the MGA Fee ($25) and the EMPA Fee ($2).

o Semi – Annual Pay Plan: 50% of the total premium, plus fees, at the inception of the policy with the remaining 50% of the premium due 180 days after the inception of the policy. A 18% annual simple interest service charge is applicable to the installment (2nd payment). The 18% annual simple interest service charge is calculated on the unpaid balance excluding the FHCF and Citizens Assessments, the MGA Fee ($25) and the EMPA Fee ($2).