THE COMMERCE INSURANCE COMPANY CITATION …...The Commerce and Citation Insurance Companies Page 7 (02/20) Massachusetts Homeowners Manual if the policy includes Pers. Prop. Replacement

THE COMMERCE INSURANCE COMPANY CITATION INSURANCE COMPANY

MASSACHUSETTS HOMEOWNERS POLICY PROGRAM

RULE MANUAL

EDITION: February 1, 2020

Massachusetts Personal Lines Manual Effective Date: 01/01/20Property Manual

© 2009 The Commerce Insurance Company. All rights reserved

The Commerce and Citation Insurance Companies Page 2 (02/20) Massachusetts Homeowners Manual

Contents

Part A – Homeowners Program Overview 6

Rule A-1: Policy Forms ........................................................................................................... 6 Rule A-2: Mandatory Coverages and Limits ........................................................................... 6

Part B – General Rules 7

Rule B-1: Change of Residence Premises ................................................................................ 7 Rule B-2: Changes or Cancellations ......................................................................................... 7 Rule B-3: Interpolation and Extrapolation ............................................................................... 7 Rule B-4: Manual Premium Revision ...................................................................................... 8 Rule B-5: Minimum Annual Premium ..................................................................................... 8 Rule B-6: Multiple Company Insurance ................................................................................... 8 Rule B-7: Policy Period ............................................................................................................ 8 Rule B-8: Waiver of Premium .................................................................................................. 8 Rule B-9: Whole Dollar Premium Rule ................................................................................... 8

Part C – Rating Rules and Factors 8

Rule C-1: Construction Type/Protection Class Factors ............................................................ 8 Rule C-2: Coverage Limit Factors .......................................................................................... 10 Rule C-3: Deductibles ............................................................................................................ 10 Rule C-4: Distance to Coast ................................................................................................... 11 Rule C-5: Number of Families ............................................................................................... 11 Rule C-6: Policy Territory Determination .............................................................................. 11 Rule C-7: Secondary/Seasonal Residence .............................................................................. 11 Rule C-8: Townhouse or Row House (Forms HO 00 03 and HO 00 05 only) ...................... 11

Part D – Policy Discounts 12

Rule D-1: Account Discount .................................................................................................. 12 Rule D-2: MAHA Homesafe Discount .................................................................................. 12 Rule D-3: Mature Homeowner Discount ................................................................................ 12 Rule D-4: New Home Discount .............................................................................................. 12 Rule D-5: Paperless/Bill Plan Discounts ................................................................................ 12 Rule D-6: Protective Device Discount ................................................................................... 13 Rule D-7: Renewal Credit ...................................................................................................... 14 Rule D-8: Windstorm Mitigation Discount ............................................................................ 14

Part E – Additional Rating Rules 16

Rule E-1: Loss History Rating Plan ....................................................................................... 16

Part F – Mandatory Coverages and Endorsements 17




Rule F-1: Amendatory Seepage & Mold Endorsements – CIC-2063/CIC-2064/CIC-2159 .. 17 Rule F-2: Home Sharing Host Activities Amendatory Exclusion .......................................... 17 Rule F-3: Lead Poisoning Exclusion - Massachusetts - HO 24 41 & Coverage for Lead Poisoning - Massachusetts – HO 24 42 ................................................................................................... 17 Rule F-4: MA Tenants Relocation (Multi-Family Homes only) – HO 23 71 ........................ 18 Rule F-5: Residence Premises Definition Endorsements: HO 06 48 and HO 17 48 .............. 18 Rule F-6: Special Provisions – HO 01 20 ............................................................................... 18 Rule F-MA-1: Additional Coverages/Services ....................................................................... 18

Part G – Coverage Enhancement Packages 19

Rule G-1: Advantage Endorsement – CIC-964 ...................................................................... 19 Rule G-2: Advantage Elite Endorsement – CIC-2092 ........................................................... 20 Rule G-3: Advantage Elite Extended Endorsement – CIC-2226 ........................................... 20 Rule G-4: PremierLiving® & Restorationist® Endorsements – HO410MA & HO460MA . 21

Part H – Coverage A, B, C, D & E - Optional Coverages and Limits 23

Rule H-1: Coverage A – Unit-Owners Coverage A Special Coverage – HO 17 32 .............. 23 Rule H-2: Coverage B – Other Structures Away From the Residence Premises - HO 04 91 23 Rule H-3: Coverage C Personal Property ............................................................................... 23 Rule H-4: Coverage D – Loss of Use – Increased Limit ........................................................ 24 Rule H-5: Extended Replacement Cost Coverage (Dwelling) – CIC-2040 ........................... 24 Rule H-6: Functional Replacement Cost Loss Settlement – HO 05 30 .................................. 25 Rule H-7: Guaranteed Replacement Cost Coverage (Dwelling) – CIC-2175 ........................ 25 Rule H-8: Other Structures on the Residence Premises – Increased Limits – HO 04 48 ....... 26 Rule H-9: Personal Property Replacement Cost Loss Settlement – HO 04 90 ...................... 26 Rule H-10: Section II – Basic and Increased Limits .............................................................. 27 Rule H-11: Special Personal Property Coverage – HO 05 24 ................................................ 27 Rule H-12: Specific Structures Away from the Residence Premises - HO 04 92 .................. 27 Rule H-13: Specified Additional Amount of Insurance for Coverage A – CIC-2045 ........... 27 Rule H-14: Structures Rented to Others - Residence Premises - HO 04 40 ........................... 28 Rule H-15: Unit Owners Coverage A – Basic and Increased Limits ..................................... 28 Rule H-16: Unit-Owners Coverage C Special Coverage – HO 17 31 .................................... 28

Part I – Additional Optional Coverages and Limits 28

Rule I-1: Additional Insured – Residence Premises – HO 04 41 ........................................... 28 Rule I-2: Additional Insured – Student Living Away From The Residence Premises – HO 05 27 ................................................................................................................................................ 28 Rule I-3: Additional Interests – Residence Premises – HO 04 10 .......................................... 29 Rule I-4: Additional Residence Rented to Others 1, 2, 3, or 4 Families – HO 24 70 ............ 29 Rule I-5: Assisted Living Care Coverage – HO 04 59 ........................................................... 29 Rule I-6: Building Additions and Alterations – Increased Limit – HO 04 51 ........................ 30 Rule I-7: Building Additions and Alterations - Other Residence – HO 04 49 ....................... 30 Rule I-8: Business Pursuits – HO 24 71 ................................................................................. 30 Rule I-9: Credit Card, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money Coverage - Increased Limit – HO 04 53 .................................................................... 30




Rule I-10: Damage to Property of Others – Increased Limits – HO 06 51 ............................ 31 Rule I-11: Earthquake – HO 04 54 ......................................................................................... 31 Rule I-12: Extended Theft Coverage for Residence Premises Occasionally Rented to Others - HO 05 41 ....................................................................................................................................... 31 Rule I-13: Fuel Spill Coverage ............................................................................................... 32 Rule I-14: Identity Fraud Expense Coverage – HO455CW ................................................... 32 Rule I-15: Increased Limit on Business Property – HO 04 12 ............................................... 33 Rule I-16: Incidental Farming Personal Liability – HO 24 72 ............................................... 33 Rule I-17: Incidental Low Power Recreational Motor Vehicle Liability Coverage Endorsement – HO 24 13 ................................................................................................................................ 33 Rule I-18: Landlord’s Furnishings – HO 05 46 ...................................................................... 34 Rule I-19: Loss Assessment Coverage for Earthquake – HO 04 36 ...................................... 34 Rule I-20: Limited Water Back-Up and Sump Discharge or Overflow Coverage – HO 04 9534 Rule I-21: Massachusetts - Special Computer Coverage (Without Broadened Home-Sharing Host Activities Coverage Endorsement) – HO 05 45 ..................................................................... 34 Rule I-22: Ordinance or Law Increased Amount of Coverage – HO 04 77 ........................... 35 Rule I-23: Other Insured Locations Occupied by the Insured ................................................ 35 Rule I-24: Other Members of Your Household – HO 04 58 .................................................. 35 Rule I-25: Owned Motorized Golf Cart Physical Loss Coverage - HO 05 28 ....................... 36 Rule I-26: Personal Computer Endorsement – CIC-611 ........................................................ 36 Rule I-27: Permitted Incidental Occupancies - Residence Premises – HO 04 42 and ........... 37 Permitted Incidental Occupancies - Other Residence – HO 24 43 ......................................... 37 Rule I-28: Personal Injury Coverage – HO 24 82 .................................................................. 37 Rule I-29: Refrigerated Property Coverage – HO 04 98 ........................................................ 38 Rule I-30: Replacement Cost Loss Settlement for Certain Non-Building Structures on the Residence Premises – HO 04 43 ............................................................................................. 38 Rule I-31: Scheduled Personal Property Endorsement – HO 04 61 ....................................... 38 Rule I-32: Supplemental Loss Assessment Coverage – HO 04 35 ........................................ 39 Rule I-33: Theft of Building Materials Coverage – CIC-728 ................................................ 40 Rule I-34: Trust Endorsement – HO 06 12 ............................................................................. 40 Rule I-35: Unit-Owners Rental to Others – HO 17 33 ........................................................... 41 Rule I-36: Valuable Possessions - HO485CW ....................................................................... 41 Rule I-37: Watercraft – HO 24 75 .......................................................................................... 41 Rule I-MA-1: Section II Liability – Rating Group Definitions .............................................. 42

Part J – Personal Umbrella Coverage 42

Rule J-1: Personal Umbrella Liability Endorsement (HU300 MA) or Personal Umbrella Liability Policy (DL 98 01) ................................................................................................................... 42 Rule J-2: Deductible ............................................................................................................... 42 Rule J-3: General Rules .......................................................................................................... 43 Rule J-4: Annual Rates ........................................................................................................... 43 Rule J-5: Miscellaneous Endorsements .................................................................................. 45

Part K – Commerce Watercraft Program 48

Rule K-1: Welcome ................................................................................................................ 48 Rule K-2: Coverages and Limits ............................................................................................ 48




Rule K-3: Eligible Watercraft Types ...................................................................................... 48 Rule K-4: Ineligible Watercraft .............................................................................................. 49 Rule K-5: Miscellaneous Requirements ................................................................................. 50 Rule K-6: Personal Watercraft ............................................................................................... 50 Rule K-7: Category of Boat Factors ....................................................................................... 51 Rule K-8: Increased Limits ..................................................................................................... 51 Rule K-9: Rating Factors ........................................................................................................ 52 Rule K-10: Deductible Factors ............................................................................................... 52 Rule K-11: Special Discounts ................................................................................................. 52 Rule K-12: Miscellaneous Coverages .................................................................................... 52 Rule K-13: Rating Worksheet ................................................................................................ 53

Part L – In-Home Business Program 53

Rule L-1: In-Home Business Coverage Endorsement – CIC-1071 ........................................ 53 Rule L-2: Deletion of Aggregate Limits – CIC-1073 ............................................................. 54

Appendix 55

Towns Referencing Coastal Tables ........................................................................................ 55 Coastal Rating Band Tables ................................................................................................... 57




Part A – Homeowners Program Overview Rule A-1: Policy Forms

1. HO 00 03 - Special Form (Homeowner) - covers the residence, private structures and additional living costs against all physical loss with certain exceptions. Personal property is covered on a “named perils” basis.

2. HO 00 05 - Comprehensive Form (Homeowner) – covers the residence, private structures, personal property and additional living costs against all physical loss with certain exceptions. (Note: all HO 00 03 policies previously written with endorsement HO 00 15 will be rewritten under policy form HO 00 05.)

3. HO 00 04 - Contents Broad Form (Tenant) - covers personal property including the insured's interest in building improvements and betterments and additional living costs against loss on a "named perils" basis broader than those named under HO 00 03 above.

4. HO 00 06 - Unit-Owners Form (Condominium) - covers fixtures, alterations, additions, structures owned by insured; personal property; additional living costs and loss of rent.

Rule A-2: Mandatory Coverages and Limits

Section I Coverages – Property 1. Coverage A - Residence (HO 00 03 & HO 00 05 only); Fixtures, Alterations and Real Property

(HO 00 06 only) 2. Coverage B - Private Structures (HO 00 03 & HO 00 05 only)

3. Coverage C - Personal Property

4. Coverage D - Additional Living Costs and Loss of Rent

Section II Coverages – Liability 1. Coverage E - Personal Liability

Pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence related to the insured's premises or personal activities.

2. Coverage F - Medical Payments to Others Pays medical expenses incurred by persons, who are not insureds, if the bodily injury occurs in connection with the insured's premises or personal activities.

Coverage Limits The minimum coverage limits for Coverages A through E are indicated in the table below. All limits can be increased for an additional premium.

HO 00 03 & HO 00 05 HO 00 04 & HO 00 06 Section I Coverages

Coverage A Commerce - $125,000 Citation - $150,000

$5,000 (HO 00 06)

Coverage B Commerce – 10% of A Citation – 20% of A

-

Coverage C

1-2 Family – 50% of A 3-Family – 30% of A - These limits are increased

to 70% & 50% respectively

HO 00 04 Commerce - $20,000 Citation - $30,000 HO 00 06




if the policy includes Pers. Prop. Replacement Cost.

Commerce - $20,000 Citation - $35,000

Coverage D Commerce – 30% of A Citation – 40% of A

30% of Coverage C (HO 00 04) 50% of Coverage C (HO 00 06)

Section II Coverages

Coverage E Commerce - $100,000 Citation - $300,000

Commerce - $100,000 Citation - $300,000

Coverage F $1,000 per Person $1,000 per Person

Part B – General Rules

Rule B-1: Change of Residence Premises Any change of residence premises other than on policy type HO 00 04 will require the cancellation of the existing policy and a new application to be submitted. Rule B-2: Changes or Cancellations If insurance is increased, cancelled or reduced, the additional or return premium will be computed on a pro-rata basis. Rule B-3: Interpolation and Extrapolation

Interpolation When the desired limit of liability is less than the highest limit shown, interpolate the limit factor using the nearest limit above and below the desired limit. For example:

1. $203,000 desired limit; the nearest limits are $200,000 and $205,000. 2. For $200,000 the limit factor is 2.837; for $205,000 the limit factor is 2.937. Figure the

difference between the two limit factors and divide by 5 ($205 - $200). This provides a factor per $1,000. (2.937-2.837)/5=0.02)

3. Multiply the factor per $1,000 times 3 ($203-$200) and add the limit factor for $200,000 (2.837).

4. The result (2.897) is the limit factor for this example.

Extrapolation When the desired limit of liability is less than the lowest limit shown, extrapolate the limit factor using the nearest two limits above the desired limit. For example:

1. $2,000 desired limit; the nearest limits are $5,000 and $10,000. 2. For $5,000 the limit factor is 1.000; for $10,000 the limit factor is 2.040. Figure the

difference between the two limit factors and divide by 5 ($10 - $5). This provides a factor per $1,000. (2.040-1.000)/5=0.208)

3. Multiply the factor per $1,000 times -3 ($2-$5) and add the limit factor for $5,000 (1.000).

4. The result (0.376) is the limit factor for this example.

*Factors used in the above interpolation and extrapolation examples are for illustration purposes only and do not represent actual factors.




Rule B-4: Manual Premium Revision A manual premium revision shall be made in accordance with the following procedures:

1. The effective date of such revision shall be as announced. 2. The revision shall apply to any policy or endorsement in the manner outlined in the

announcement of the revision. 3. Unless otherwise provided at the time of the announcement of the premium revision, the

revision shall not affect in-force policy forms, endorsements or premiums, until the policy is renewed.

Rule B-5: Minimum Annual Premium A minimum annual premium of $150 shall be charged for each policy. The $150 minimum premium includes all chargeable endorsements or coverages if written at inception of the policy. If such endorsements or coverages are attached after policy inception, the charge for each applies in accordance with the minimum premium rule, if any, for the endorsement. Rule B-6: Multiple Company Insurance The coverages in Section I and II cannot be divided by multiple insurance companies. Rule B-7: Policy Period The policy will be written for a period of one year and will be extended for successive policy terms by timely payment of the renewal premium, and based upon the premiums, forms and endorsements then in effect for the company. Rule B-8: Waiver of Premium When a policy is endorsed resulting in an additional or return premium of $5 or less, the premium will be waived. Rule B-9: Whole Dollar Premium Rule Each premium shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents ($0.50) or more shall be rounded to the next higher whole dollar.

Part C – Rating Rules and Factors Rule C-1: Construction Type/Protection Class Factors The policy premium may be adjusted depending upon the covered residence protection classification and construction type.

Protection Classification

1. For jurisdictions with a single classification number, all properties within the jurisdiction will receive the listed classification number.

2. For jurisdictions listed with multiple classification numbers known as a “split classification”, the classification number applicable to the dwelling is assigned as follows:

a. Split classifications displayed as “#/#X” (e.g. 6/6X):




i. For properties located five road miles or less from a recognized responding fire station of a fire department indicated in the listing for the jurisdiction, and within 1,000 feet of a recognized water source, the first listed numeric classification designator applies (e.g. 6/6X, use Class 6).

ii. For properties located five road miles or less from a recognized responding fire station of a fire department indicated in the listing for the jurisdiction, and with a recognized water source more than 1,000 feet, the second listed classification designator associated with #X or #Y applies (e.g. for 6/6X, use Class 6X).

iii. Water 10 (10W): Apply if:

a. The property is located more than five but less than seven road miles from a recognized responding fire station of a fire department indicated in the listing for the jurisdiction, and within 1,000 feet of a recognized water source.

b. A footnote indicates there is an alternate creditable water supply and the property is located more than five but less than seven road miles from a recognized responding fire station of a fire department indicated in the listing for the jurisdiction.

b. For properties not qualifying for a.i., a.ii., or a.iii, use Class 10.

3. For jurisdictions or areas not listed, apply a numeric classification designator of 10.

4. Definitions: a. “Recognized responding fire station” - a fire station meeting the minimum criteria of

ISO’s Fire Suppression Rating Schedule (FSRS). b. “Recognized water source” - a water source meeting the minimum criteria of ISO’s

FSRS. The minimum criteria for a recognized water source is a flow capacity of 250 gallons per minute for 2 hours continuously. The source can be a hydrant, dry hydrant, suction point or hauled water source, but the source must meet or exceed the flow capacity stated above.

c. “Alternate credible water supply” - a water supply delivered by fire department operations to areas beyond 1,000 feet of a credible water supply source.

Construction Type

1. Frame - Exterior wall of wood or other combustible construction, including wood iron-clad, stucco on wood or plaster on combustible supports, or aluminum or plastic siding over frame. A style of construction where the load bearing structural supports of the building are made of wood framing. A combination of both frame and masonry construction shall be classed as frame construction (including gables) when frame exceeds 33 1/3% of the total exterior wall area; otherwise class as masonry.

2. Masonry Veneer - Exterior walls of combustible construction veneered with brick or stone that is used for appearances rather than structural support.

3. 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 (disregarding floors resting directly on the ground).




4. Superior Construction (any of the following or any combination thereof) – a. Non-Combustible - Exterior walls and floors and roof constructed of, and supported

by, metal, asbestos, gypsum, or other non-combustible materials.

b. Masonry Non-Combustible - Exterior walls constructed of masonry materials (see “Masonry” definition above) and floors and roof of metal or other non-combustible materials.

c. Fire Resistive and/or Wind Resistive - Exterior walls and floors and roof constructed of masonry or other fire resistive and/or wind resistive materials including steel or concrete frame.

Rule C-2: Coverage Limit Factors A minimum of 100% of the estimated replacement cost using the Marshall Swift Boeckh (MSB) replacement cost calculator is required when determining the Coverage A limit. When submitting an application for an HO 00 03 or HO 00 05 policy, the base Coverage A (or Coverage C for form HO 00 04 or HO 00 06) chosen by applicant, together with the territory group, will determine the coverage limit factor applied. At each renewal, an inflation adjustment factor is applied to Coverage A for all policies written on HO 00 03, HO 00 05 and HO 00 06 forms. Rule C-3: Deductibles All policies are subject to a Section I – Property deductible.

1. All Peril Deductible - Policy Base and Optional Higher Deductibles The all-peril policy base deductible is $1,000. This is the minimum base deductible applicable to all HO 00 03 and HO 00 05 new business policies. Optional higher deductibles are also available in amounts up to $10,000. When an optional higher deductible is chosen, a premium credit will be applied.

Existing policies may have a deductible below $1,000. These policies may remain at this lower deductible, in which case a premium debit will apply.

Optional Deductibles

Please refer to the Rate Manual for available optional deductibles and respective factors.

2. Special Optional Deductibles

Named Storm Percentage Deductible – CIC-2116 A separate deductible can be chosen for losses caused by a named storm during the period beginning at the time a hurricane or tropical storm warning is issued or declared by the National Hurricane Center (NHC) of the National Weather Service, for a forecast zone that includes any part of the municipality in which the insured property is located, and ending 24 hours following the termination of the last hurricane warning for that forecast zone by the NHC. A mandatory named storm deductible may be applied to coastal locations. Please refer to our Massachusetts Homeowners Program Underwriting Guidelines for additional information.

The Named Storm Deductible will be displayed on the policy declarations when a named storm deductible is applied. The named storm deductible must be higher than the all peril deductible, otherwise the all peril deductible applies to hurricane and tropical storm losses.

To develop the credit for any option, apply the credit to the BASE PREMIUM. This credit is




separate and in addition to any other deductible debit or credit.

Please refer to the Rate Manual for available optional deductibles and respective factors. Rule C-4: Distance to Coast The policy premium may be adjusted depending upon the covered dwelling’s distance from the coast. A feet to coast measurement is provided by the ISO Location Program via a two (2) digit location code. Please refer to the Appendix for a list of Coastal Towns eligible for Coastal rating, and for the Coastal Rating Band Tables. Rule C-5: Number of Families The number of families is one of the property characteristics considered in the HO 00 03 and HO 00 05 premium calculations, and is determined based on whether or not the dwelling is 1, 2, or 3 family dwelling. Multi-family dwelling units must be exclusively used for residential purposes with no more than one family per unit and have at least one owner occupied unit. Rule C-6: Policy Territory Determination Territory is determined by the zip code, city, and county where the dwelling is located. The exact dwelling address is required. When an exact dwelling address is non-existent, the legal description of the property as it appears on the deed or the address used by a local utility company is required. Rural route and box number addresses are unacceptable. Rule C-7: Secondary/Seasonal Residence Homeowner coverage on a secondary or seasonal residence premises shall be provided under a separate policy.

Seasonal Dwelling

A dwelling with continuous un-occupancy of 3 or more consecutive months during any 1 year period.

Secondary Dwelling A dwelling defined as an additional residence used for other than recreational purposes and is owner occupied for at least 50% of the time.

All rules of this manual shall apply to the secondary or seasonal dwelling unless otherwise noted. Rule C-8: Townhouse or Row House (Forms HO 00 03 and HO 00 05 only) Townhouse or row house residence type premium is based on the number of individual units within the fire division, and the protection class. A fire division is a single dwelling or a group of connected dwellings. A dwelling with more than 2 family units within a fire division is ineligible. Please refer to the Rate Manual for applicable pricing.




Part D – Policy Discounts Rule D-1: Account Discount All policy forms are eligible for a premium credit, under any of the following conditions:

1. The named insured's private passenger policy is also insured with Commerce, or his/her commercial automobile policy is insured with either Commerce or Citation. Please indicate the companion auto policy number on the homeowner ACORD application or endorsement request form.

2. The agent currently writes the named insured's private passenger or commercial automobile policy with another insurer, and is transferring that automobile policy to Commerce or Citation at its next renewal date. The account credit may be provided at the inception of the homeowner policy, and a copy of the current auto policy declarations page should be attached to the homeowner’s application.

Please refer to the Rate Manual for applicable discount. Rule D-2: MAHA Homesafe Discount Dwellings written on policy form HO 00 03, HO 00 05 or HO 00 06 are eligible for a MAHA (Massachusetts Affordable Housing Alliance) Homesafe Discount. This discount is only available to an insured's primary residence.

The following criteria must be met to be eligible for this credit. 1. The named insured or spouse must successfully complete the Homesafe

Program/Education Workshop run by the Massachusetts Affordable Housing Alliance (MAHA).

2. A copy of the workshop certificate, signifying successful completion, must be submitted.

Please refer to the Rate Manual for the applicable discount. Rule D-3: Mature Homeowner Discount Dwellings written on all policy forms are eligible for a Mature Homeowner Discount if the named insured or spouse is at least 55 years of age.

Please refer to the Rate Manual for applicable discounts.

The age of the insured or spouse attaining the age of 55 must be submitted with all requests for this credit. (Note: Rented Condos are not eligible for this discount.) Rule D-4: New Home Discount Dwellings written on policy form HO 00 03 or HO 00 05, which are less than 21 years of age, will automatically receive a policy discount. The discount amount is developed from the BASE PREMIUM. Please refer to the Rate Manual for the applicable discount. Rule D-5: Paperless/Bill Plan Discounts A number of “paperless” discounts are available. Apply the appropriate discount to the BASE PREMIUM.




Green Discount A Green Discount will apply provided the following criteria are met:

1. The insured is enrolled in the e-Bill payment option; and 2. The insured is signed up for the electronic delivery of forms program (EDF) through

Commerce Cares.

eBill Discount An eBill Discount will apply provided the insured is enrolled in the Electronic Invoice (eBill) payment option.

Paperless Discount A Paperless Discount will apply provided the insured is signed-up to view and receive policy forms electronically on CWEB.

Please refer to the Rate Manual for applicable discount percentages. Rule D-6: Protective Device Discount A discount will apply if any of the devices in the table below are present in the residence premises. The discount amount will vary depending of the combination of protective devices on the premises. Protective devices include:

Protective Device

Description

Local Burglar Alarm

A full alarm system that covers the total living area of the home. The alarm system connected to a majority of windows and doors and is controlled through a central control panel. It is not a simple stand-alone alarm for individual windows and doors, but a centrally controlled alarm program that is wired throughout the home. This alarm system sounds an audible alarm that is controlled through a central control panel.

Central Burglar Alarm

A burglar alarm that reports directly to a police station or central station. This is a full alarm system that covers the total living area of the home. The alarm system is connected to a majority of the windows and doors and is controlled through a central control panel. This alarm system is wired to an alarm company that monitors each alarm call.

Local Fire Alarm

A full alarm system that covers the total living area of the home, with a minimum of one smoke detector per floor. Garage must have a minimum of one heat detector. This alarm system sounds an audible alarm at the residence and is controlled through a central control panel.

Central Fire Alarm

A fire alarm that reports directly to a fire station or central station. A full alarm system that covers the total living area of the home, with a minimum of one smoke detector per floor. The garage must have a minimum of one heat detector. This alarm system sounds an audible alarm at the residence and is controlled through a central control panel. This alarm system is wired to an alarm company that monitors each alarm call. The company calls the homeowner when an alarm occurs and also sends the fire department to the home.

Residential Sprinkler System

Automatic sprinklers installed in all areas including bathrooms, closets, attics, and attached structures.




Documentation must be submitted with the application to be eligible for a central burglar alarm/fire alarm credit or a residential sprinkler system credit. Acceptable documentation can be a current billing statement, or a copy of a receipt or service contract indicating the device(s) has been installed. This credit will continue to apply as long as the protective device(s) are maintained in proper working order.

The Protective Device Endorsement (HO 04 16) will be attached to all policies with a Burglar or Fire Protective Device Discount, and states that the insured acknowledges the installation of specific protective device(s) on the residence, agrees to maintain the system for which a credit is being provided in working order and will notify MAPFRE promptly of any change to or removal of the system(s).

Please refer to the Rate Manual for applicable discounts.

Refer to Company for eligibility, types of systems and devices and installation. Rule D-7: Renewal Credit The Renewal Credit is automatically applied during the renewal process to the POLICY PREMIUM of all policies meeting the following eligibility criteria:

- Second and third renewal with a MAPFRE affiliated insurance company. - Fourth and subsequent renewal with a MAPFRE affiliated insurance company.

If you have a policy which has been cancelled and re-written with a MAPFRE affiliated insurance company, or if you have had an agent code change, it is necessary to indicate the prior policy number, the number of years with a MAPFRE affiliated insurance company, and RENWL CR must be noted in the “endorsements” section of the ACORD, in order to receive the credit.

Please refer to the Rate Manual for the applicable discount. Rule D-8: Windstorm Mitigation Discount The windstorm mitigation factor is applied to the Base Premium when the insured incorporates windstorm mitigating features onto the dwelling. The following features are included in this factor:

Mitigation type Description of Roof Bracing Roof bracing features are designed to transfer the energy from the wind force to the exterior walls and then down to the foundation properly.

Truss Bracing – Presence or installation of 2x4s that run the length of the roof, overlapping the ends of the 2x4 across two trusses in gabled roofing. Braces should be installed 18 inches from the ridge, in the center span, and at the base, with 8 to 10 feet between the braces with 14-guage wood screws or two 16d galvanized common nails at each truss. Gable End Bracing – Presence or installation of 2x4s placed in an “X” pattern from the top center of the gable to the bottom center brace of the fourth truss, and from the bottom center of the gable to the top center brace of the fourth truss. Braces installed with two 3-inch, 14 gauge wood screws or two 16d galvanized common nails. Hurricane Straps – Straps designed to help hold roof to the walls made of galvanized metal. Generally installed by professionals. This may be installed in any type of roofing.




Reinforced Exterior Doors This feature prevents high winds that can enter the home and put pressure on roof and walls that can cause extensive damage. Both double entry doors and garage doors must be reinforced to qualify for the discount.

Double Entry Doors – Bolt system that reinforces door with bolts and pins. The bolt system that typically comes with original door is not strong enough. Bolt systems are available at retailers to retrofit door. Garage Doors – Garaged doors are reinforced at their weakest points. Involves installing horizontal bracing on each panel. Retrofit kit is generally available from the garage door manufacturer at retailers.

Hurricane /Storm Shutters or Laminated glass windows This feature prevents high winds that can enter the home and put pressure on roof and walls that can cause extensive damage.

Hurricane/Storm Shutters or Laminated Glass Windows- Acts as the first line of defense against hurricane winds. Protection is placed over doors and windows to protect against wind and wind-borne debris. Must be designed to withstand sustained winds of 100 mph. Must be applied to all Exterior Walls and Roof Openings, such as doors, windows, skylights, and vents. Both features must be properly installed in accordance with the manufacturer.

None Windstorm Mitigation feature(s) is not present.

The discount is also subject to a discount maximum of 10%. Proof is required for the Windstorm Mitigation factor to apply. Acceptable proof includes bill of sale/receipt for products purchased or installed by a professional.

Additional Requirements for credit on Hurricane Resistant Laminate Glass or Storm Shutters: 1. A risk may be eligible for a premium credit if exterior wall and roof openings such as

doors, windows, skylights, and vents are fully protected with hurricane resistant storm shutters or hurricane resistant laminated glass.

2. Storm shutters and hurricane resistant laminate glass must be designed and properly installed in accordance with the manufacturer’s specifications to effectively withstand external pressure and wind-borne debris from a storm with sustained wind speed of at least 110 mph or a storm surge of 8 feet above normal.

3. Roof ridge vents and soffit vents do not have to be protected by windstorm protective devices.

Windstorm Mitigation Discount = TB + GB + HS + RD + SH + LM (subject to 10% maximum)

Mitigation Feature Code Discount Truss Bracing TB Refer to Rate Manual Gable Bracing GB Refer to Rate Manual Hurricane Straps HS Refer to Rate Manual Reinforced Exterior Doors RD Refer to Rate Manual Hurricane Shutters SH Refer to Rate Manual Laminated Windows LM Refer to Rate Manual

Discount applies to policy forms HO 00 03, HO 00 05 and HO 00 06.




Part E – Additional Rating Rules

Rule E-1: Loss History Rating Plan The Loss History Rating Plan recognizes the loss history of an insured, for both property and liability coverages, in determining the appropriate premium for new and renewal policies.

Eligibility A loss shall be considered eligible for rating under this Plan if: 1. The loss occurred during the three years immediately preceding the effective date of the

policy or its renewal; 2. The loss occurred with respect to a risk eligible for coverage under the Homeowners Policy

Program; 3. The loss was sustained with respect to the property or liability of an insured under the policy

being rated; and 4. The combined claim payments generated for the loss equal or exceed $1,000.

Exceptions The following shall not be considered eligible for rating under the Plan: 1. A loss which has been assigned the Catastrophe designation by the Insurance Services Office

(ISO). 2. A loss resulting from windstorm or hail. 3. A loss resulting from earthquake, mine subsidence or sinkhole collapse. 4. A loss for which payment occurred only with respect to Medical Payments to Others or

similar coverage. 5. A loss to a dwelling currently owned by an insured or applicant which occurred prior to

ownership.

Refund of Increased Premium If, after an increased premium is generated based on the requirements of this Plan, it is determined that a loss does not meet the requirements of this Plan, the insurer shall refund the increased portion of the premium attributable to such loss as generated by the Plan.

Administration of Loss History Rating Plan Information necessary to determine the loss history of the named insured or applicant shall be obtained from any one or combination of the following: 1. An application signed by the applicant. 2. A loss history or claims history database. 3. A company's internal records.

Premium Computation Multiply the Base Premium by the appropriate factor referenced in the Rate Manual.




Part F – Mandatory Coverages and Endorsements Rule F-1: Amendatory Seepage & Mold Endorsements – CIC-2063/CIC-2064/CIC-2159 An applicable Amendatory Seepage and Mold/Limited Fungi, Wet or Dry Rot, Or Bacteria Coverage Endorsement is a mandatory form and the limited amounts of insurance automatically provided are as follows: 1. Section I – Property: $10,000 to pay for loss and associated costs to covered real or personal property, owned by an insured, which is damaged by fungi or wet or dry rot, or bacteria on the residence premises as defined in the coverage endorsements. This coverage applies only to the policy period in which the loss or costs occur. Higher available limits are: $25,000; and $50,000.

2. Section II – Liability: $50,000 to pay for damages because of bodily injury or property damage involving the inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any fungi, wet or dry rot, or bacteria. Higher available limit is: $100,000.

Charge for higher optional limits are refrerenced in the Rate Manual. Rule F-2: Home Sharing Host Activities Amendatory Exclusion MAPFRE will include one of the following amendatory endorsements on all policies. The appropriate amendatory endorsement will be assigned based on Policy Form. The endorsement includes limiting or exclusionary language pertaining to an insured’s participation in a home-sharing service, especially when acting as a host.

Policy Form Endorsement HO 00 03 HO 06 53

HO 00 04 HO 06 54 HO 00 05 HO 06 55 HO 00 06 HO 06 56 Rule F-3: Lead Poisoning Exclusion - Massachusetts - HO 24 41 & Coverage for Lead Poisoning - Massachusetts – HO 24 42

The Lead Poisoning Exclusion is a mandatory form that limits bodily injury coverage caused by lead poisoning. MAPFRE automatically includes this endorsement on all policies. Lead Poisoning Liability Exclusion – HO 24 41 When endorsement HO 24 41 is attached to the policy and applies to the primary residence, compute the premium credit as follows:

For the primary location, multiply the BASE PREMIUM, PLUS ANY ADDITIONAL PREMIUM FOR Coverage E increased limits, by 3%.

Note: Should a Letter of Compliance or Interim Control be furnished to us, the 3% premium credit will continue to apply to the policy.




Buy-Back Coverage for Lead Poisoning: HO 24 42

Lead Poisoning Liability Exclusion and Buy-Back Coverage for Lead Poisoning When endorsements HO 24 41 and HO24 42 are attached to the policy: a. Develop the premium credit for HO 24 41, if applicable; and b. Select the lead poisoning charge for each location to which Endorsement HO 24 42 applies,

based on the occupancy that exists at each location.

The total HO 24 42 premium is developed by adding the individual location HO 24 42 premiums together. This total is then added to the BASE PREMIUM. Please refer to the Rate Manual for pricing.

For Underwriting Guidelines associated with this endorsement, refer to the Lead Poison Exclusion and Buyback section. Rule F-4: MA Tenants Relocation (Multi-Family Homes only) – HO 23 71 The owner of a multi-unit dwelling must provide relocation expenses for tenants for $750 for each rental unit.

Please refer to the Rate Manual for appropriate pricing.

This endorsement is automatically generated on a 2 or 3 family dwelling. Rule F-5: Residence Premises Definition Endorsements: HO 06 48 and HO 17 48

These mandatory endorsements reinforce the scope of the definition. Use:

- HO 06 48 Residence Premises Definition (All Forms except HO 00 06); and - HO 17 48 Residence Premises Definition Endorsement – Unit-Owners.

Rule F-6: Special Provisions – HO 01 20 The Special Provisions endorsement is a mandatory form that will be attached to all policies. This form modifies definitions, coverages, exclusions and conditions to conform to specific requirements in the State of Massachusetts. Rule F-MA-1: Additional Coverages/Services

The following programs/services are provided free of charge.

Technology Support Available Through Your Homeowners Policy

We shall make available the following service as a policy benefit without any additional payment:

- IT Help Desk Support to provide assistance in trying to identify, trouble shoot and/or resolve system or software questions or functionality issues related to personal computer and personal electronic devices. Covered property includes computers, tablets, smart phones, printers and monitors, which are owned by you or a household member who is related to you by blood or marriage.

The service may be provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice. All applicable terms and conditions are available on our website: www.mapfreinsurance.com/helpdesk.




The personal property service provided to you by this endorsement does not:

- Increase the Coverage C Limit of Liability; - Modify the Coverage C Special Limits of Liability; or - Modify any provision that applies to Coverage C Property Not Covered.

Use endorsement IL604CW.

Identity Theft Resolution Service

Policyholders whose policies include any of the Commerce endorsements displayed below will have access to an Identity Theft Resolution Service offered by MAPFRE in partnership with CyberScout™. For a list of complete services offered, visit the website: https://www.mapfreinsurance.com/en/products/property-insurance/ and click on the Identity Theft tab.

Advantage, CIC-964 Advantage Elite, CIC-2092 Advantage Elite Extended, CIC-2226 PremierLiving® Restorationist® Identity Fraud Expense Coverage, HO455CW

Use endorsement CIC-2090.

Retail Benefit Program As an additional benefit to all policies, we will provide access to retail benefit programs for no additional premium. Policyholders who choose to participate in the program may be eligible to receive benefits that include, from time to time based on availability, discounts on products and services provided by third party retail stores, extended warranty benefits, and/or other rewards. The benefits that are offered under the retail benefit program are subject to change at any time in our sole discretion. Visit the website: https://commerce.restoremall.com.

Use endorsement CIC-2237.

Part G – Coverage Enhancement Packages

Rule G-1: Advantage Endorsement – CIC-964 All policy types are eligible for the Advantage Endorsement. Please refer to the Rate Manual for the annual premium for this endorsement. The endorsement provides a variety of coverages, including but not limited to:

Limited Water Back-Up Coverage Increased Coverage C Sub-limits Refrigerated Property Coverage Lock Replacement Coverage Reward Coverage Personal Injury Coverage




Rule G-2: Advantage Elite Endorsement – CIC-2092

All single family, primary-home HO 00 03 policies are eligible for the Advantage Elite endorsement. The annual premium for this endorsement is calculated by applying the factor displayed in our Rate Manual to the BASE PREMIUM, subject to a minimum charge of $100.

The endorsement includes the following coverages above those included in our Advantage: Extended dwelling replacement cost coverage to 150% of the Coverage A limit Personal Property Replacement Cost (Endorsement HO 04 90 may not be used with

Elite or Elite Extended.) Increased special limits of liability on watercraft, trailers, and on/off-premises

business property Broadened coverage, subject to the Special Limits, for losing and misplacement of

jewelry items, furs, silver, etc. Credit card coverage to $10,000 (Endorsement HO 04 53 may not be used with Elite

or Elite Extended.) Ordinance or law coverage to 50% Increased Coverage E (by $100,000) and Coverage F (by $1,000)

As part of this endorsement, Coverage C is automatically increased on forms HO 00 03 and HO 00 05 to 70% of Coverage A at no additional charge.

Advantage Elite will also include identity theft expense coverage to $1,000 and provide access to our Identity Theft Resolution Service.

Note: The Advantage Elite endorsement has been discontinued for new business policies and replaced by the Elite Extended endorsement, CIC-2226. All policies that include the CIC-2092 may retain this endorsement, however, or switch to Elite Extended. Rule G-3: Advantage Elite Extended Endorsement – CIC-2226 All single family, primary-home HO 00 03 and HO 00 05 policies are eligible for the Advantage Elite Extended endorsement. Please refer to the Rate Manual for appropriate pricing. A minimum charge of $135 applies.

The Advantage Elite Extended Endorsement provides identical coverage as the Advantage Elite Endorsement (CIC-2092), but adds coverage for the breakdown of equipment associated with major home systems, as well as coverage for the breakage of service lines running to or from your home.

Home Systems Protection – HSB EBH Coverage is provided for equipment breakdown on a wide range of critical systems due to covered losses. Critical systems include, but may not be limited to:

Heating and air systems Ventilation systems and fans Electrical panels Built in pool and spa equipment Well pumps Central vacuums Chair lifts and elevators




Built in back-up electric generators Permanently-installed appliances

Service Line Coverage – HSB SLC Coverage is provided for the failure of exterior and underground service lines due to covered losses. Examples of service lines include, but may not be limited to:

Water Sewer Electrical

Limits for Home Systems Protection and Service Line Coverages are $50,000 and $10,000 respectively. A $500 deductible applies under both coverages. Rule G-4: PremierLiving® & Restorationist® Endorsements – HO410MA & HO460MA All requests for coverage under a Citation Insurance Company PremierLiving® or Restorationist® Endorsement are incumbent upon a risk meeting our Program Eligibility. The risk must be a One-Family primary residence (Two-Familes are acceptable for live-in apartments that include all conveniences, such as an In-Law Apartment.) and insured under policy form HO 00 03 or HO 00 05. Homes built prior to 1930 will be placed in the Restorationist® Program. The annual premium for both endorsements may be found in the Rate Manual. All PremierLiving® and Restorationist® risks will be inspected. Section I - Property Coverages and Limits

The following property coverages are included in both endorsements:

Primary Coverages Coverage A – Dwelling

Coverage is provided against all physical loss, with certain exceptions. Extended Replacement Cost (Restoration Cost for Restorationist® policies) Loss

Settlement, to 150% of Coverage A. Ordinance or Law Coverage, to 50%. Increased limits options of 75% and 100%.

Coverage B – Other Structures Coverage is provided against all physical loss, with certain exceptions. Limit to 20% of Coverage A. Replacement Cost Loss Settlement, to 150%, for Structures Specifically Identified.

Coverage C – Personal Property Coverage is provided against all physical loss, with certain exceptions. Replacement cost (Restoration Cost for Restorationist® policies) loss settlement;

limit to 70% of Coverage A. Increased sub-limits for specific classes of property.

Coverage D – Additional Living Costs and Loss of Use Coverage is provided up to 40% of Coverage A.




Includes coverage for contingency allowance. Includes coverage for power outage.

Additional Coverages Water Back-Up - $2,500. Limited Fungi - $10,000. Increased limits options to $25,000 and $50,000. Identity Theft - $25,000. Land (Excavation w/covered loss) - $25,000. Refrigerated Property - $250. Credit Card - $10,000. Landlord Furnishings - $10,000. Trees, shrubs, plants – 10% / $1,000. Lock Replacement/Rekeying - $500. Fire Department – Unlimited. Loss Assessment - $50,000. Personal Data Stored on a Computer -$5,000. Personal Property Away from the Residence- $10,000.

Section II – Liability Coverages and Limits

The following liability coverages are included in both endorsements:

Primary Coverages

Coverage E – Personal Liability - $300,000 Limit Coverage for damages due to bodily injury or property damage caused by an

occurrence related to the insured’s premises or personal activities. Increased limit options to $1,000,000. Additional $100,000 (Coverage E) included in endorsement. Personal Injury Coverage equal to Coverage E limit.

Coverage F- Medical Payments to Others - $5,000 Limit Pays medical expenses incurred by persons, who are not insured’s, if the bodily

injury occurs in connection with the insured’s premises or personal activities. Increased limit options to $10,000. Additional $1,000 (Coverage F) included in endorsement.

Additional Coverages Loss assessment - $50,000. Claims Expense - $250/day. Liability for Damage to Property of Others - $2,000. Limited Fungi - $50,000. Increased limit option to $100,000. Liquid Fuel Coverage - $50,000. Increased limit option to $100,000.

Use endorsement HO410MA for PremierLiving® and HO460MA for Restorationist®.

Neither endorsement may be written with any of the following endorsements:




CIC-611 (Personal Computer) CIC-964 (Advantage) CIC-2040 or CIC-2045 (Extended Replacement Cost Coverage Endorsement and

Specified Additional Amount of Insurance for Coverage A) CIC-2092 (Advantage Elite) CIC-2175 (Guaranteed Replacement Cost – Dwelling) CIC-2226 (Advantage Elite Extended) CIC-728 (Theft for Dwellings Under Construction) HO455CW (Identity Fraud Expense Coverage Endorsement) HO 04 12 (Increased Limits on Business Property) HO 04 53 (Credit/Fund Transfer Card) HO 04 90 (Personal Property Replacement Cost) HO 05 30 (Functional Replacement Cost Loss Settlement) HO 24 82 (Personal Injury)

Part H – Coverage A, B, C, D & E - Optional Coverages and Limits Rule H-1: Coverage A – Unit-Owners Coverage A Special Coverage – HO 17 32 The HO 00 06 policy automatically provides a basic Coverage A limit of $5,000 on a named perils basis. This policy may be endorsed to provide coverage against direct physical loss to property described in Coverage A, subject to certain exclusions, for an additional rate.

The additional premium may be found in the Rate Manual. Rule H-2: Coverage B – Other Structures Away From the Residence Premises - HO 04 91

Blanket coverage may be provided to include structures located away from the residence premises, if the structure(s) is used in connection with the residence premises. This coverage does not increase the limit of liability for Coverage B – Other Structures. Please refer to the Rate Manual for the charge for this coverage.

Structures are not covered if: - Used, or capable of being used, as a dwelling; or - Used in business, or rented or held for rental to any person not a tenant of the dwelling.

Rule H-3: Coverage C Personal Property

Increased or Decreased Limits 1. Increased Limit - Forms HO 00 03 or HO 00 05. The limit of liability for Coverage C may

be increased. The additional charge may be found in the Rate Manual. 2. Reduction in Limit - Forms HO 00 03 or HO 00 05. The limit of liability for Coverage C

may be reduced to 40% of the limit of Coverage A. Apply the appropriate credit displayed in the Rate Manual for each $1,000 reduction. Reduction in the limit of liability for Coverage C is not permitted if the HO 04 90 or any package endorsement is on the policy.




Increased Amount of Insurance for Personal Property at Other Residences – HO 04 50 1. Coverage for personal property usually located at other residences is limited in the policy

form to 10% of Coverage C or $1,000, whichever is greater. This limit may be increased.

2. The rate for this coverage may be found in the Rate Manual.

Use Increased Amount Of Insurance For Personal Property At Other Residences Endorsement HO 04 50.

Increased Amount of Insurance for Personal Property Located in a Self-Storage Facility – HO 06 14 1. Coverage for personal property located in self-storage facilities is limited in the policy form

to 10% of Coverage C, or $1,000, whichever is greater. This limit may be increased. 2. Please refer to the Rate Manual for the rate per additional $1,000.

Use Increased Amount Of Insurance For Personal Property Located In A Self-Storage Facility Endorsement HO 06 14. Rule H-4: Coverage D – Loss of Use – Increased Limit

Forms HO 00 03 or HO 00 05 - The limit of liability for Coverage D may be increased. Please refer to the Rate Manual for the appropriate charge per $1,000 of additional insurance.

Forms HO 00 04 or HO 00 06 - The limit of liability for Coverage D may be increased. Please refer to the Rate Manual for the appropriate charge per $1,000 of additional insurance. Rule H-5: Extended Replacement Cost Coverage (Dwelling) – CIC-2040 This coverage provides extended Dwelling replacement cost coverage to 150% of the Coverage A limit of liability. It is available on policy forms HO 00 03 and HO 00 05 only on policies that do not include an Advantage Elite, Elite Extended, PremierLiving®, or Restorationist® endorsement. These endorsements already include extended coverage to 150%.

Commerce - The annual charge for this endorsement may be found in the Rate Manual. To qualify, the risk must meet the following underwriting requirements:

1. Dwellings built 1925 or later.* 2. The dwelling must be insured to 100% of replacement cost and a copy of the Home Value

Guide must accompany the policy. 3. The dwelling must be a one (1) family, owner occupied, residence. * Dwellings with non-standard construction (i.e. custom construction with ornate design

characteristics) should be referred to your Underwriter.

Citation – This coverage is automatically included on Citation policies that do not concurrently include Advantage Elite, Elite Extended, PremierLiving® or Restorationist® endorsements. There is no corresponding premium charge. Note: This endorsement may not be written on policies that include any package endorsement except Advantage, or with Guaranteed Replacement Cost Coverage endorsement CIC-1075, Functional Replacement Cost Loss Settlement HO 05 30, or in conjunction with Specified Additional Amount of Insurance for Coverage A.




Rule H-6: Functional Replacement Cost Loss Settlement – HO 05 30 An HO 00 03 or HO 00 05 policy may be endorsed to provide building loss settlement exclusively on a functional replacement cost basis if, at the time of loss, the amount of insurance on the damaged building is 100% of the functional replacement cost of the building immediately before the loss. Functional Replacement Cost means the amount which it would cost to repair or replace the damaged building with less costly common construction materials and methods which are functionally equivalent to obsolete, antique or custom construction materials and methods. Situations where this coverage may be appropriate include:

• Multi-family homes built prior to 1940 where using the materials/methods used in the original construction of the home is considered superfluous by the insured. • Single or multi-family homes built prior to 1940 where at least one-third of the original construction materials contained within the building have been removed and replaced with less costly, readily available, modern building materials.

Policyholder Notice CIC-2071, which explains the coverage modification associated with this endorsement, will be attached to all policies which include endorsement HO 05 30 for the initial policy term.

Situations where the coverage may produce inadequate valuations include:

• Any single or multi-family home built prior to 1940 that has been maintained/restored using methods and materials used in the original construction of the home, and it is evident that the insured would insist on these items being replaced/restored to their pre-loss condition. • Any home with a historic designation. Inclusion on a historic register can impose physical restoration responsibilities on the property owner. These responsibilities can have serious implications on the cost of repairs, in case of physical loss.

This endorsement may not be written with the following endorsements:

CIC-2040 or CIC-2045 CIC-2175 CIC-2092, CIC-2226 or any PremierLiving® or Restorationist® endorsements.

All new policies that include this endorsement will be written in The Commerce Insurance Company. Rule H-7: Guaranteed Replacement Cost Coverage (Dwelling) – CIC-2175 Loss settlement for buildings insured under Coverage A-Dwelling is provided on a replacement cost basis without deduction for depreciation if, at the time of loss, the amount of insurance on the damaged building is 80% or more of the replacement cost of the building immediately before the loss.

An HO 00 03 or HO 00 05 policy may be endorsed to provide additional insurance for Coverage A-Dwelling, only when loss to property insured under Coverage A - Dwelling exceeds the limit of liability shown in the policy declarations. The additional amount cannot be applied to any other coverage nor does it increase the Coverage A-Dwelling limit. When this endorsement is selected, the Coverage A-Dwelling limit of liability shall be at least 100% of the full replacement cost of the property insured under Coverage A-Dwelling at policy inception or at the time the endorsement is added to the policy.




The Guaranteed Replacement Cost Coverage endorsement CIC-2175 provides unlimited Dwelling replacement cost coverage under Coverage A. It is available on policy forms HO 00 03 and HO 00 05 only.

The annual charge for this endorsement may be found in the Rate Manual. To qualify, the risk must meet the following underwriting requirements:

1. Home built 1940 or later.* 2. The dwelling must be insured to 100% of replacement cost and a copy of the Home Value

Guide must accompany the policy**. 3. The dwelling must be a one (1) family, owner occupied, primary residence. 4. Coverage A limits between $350,000 ($300,000 in territories 49 and 50) to $1.25 million.

* Dwellings with non-standard construction (i.e. custom construction with ornate design characteristics) should be referred to your Underwriter.

** Dwelling may not be evaluated using the Standard/Vintage Calculation method.

Note: This endorsement may not be written with either endorsement CIC-2040 (Extended Replacement Cost Coverage Endorsement) or CIC-2045 (Specified Additional Amount of Insurance for Coverage A).

Rule H-8: Other Structures on the Residence Premises – Increased Limits – HO 04 48 This endorsement provides coverage for a specific structure on the residence premises. An HO 00 03 or HO 00 05 policy may be endorsed to provide coverage for up to 3 structures on the residence premises and is in addition to the Coverage B – Other Structures limit of liability listed on the Declarations. The additional charge for this coverage may be found in the Rate Manual.

If the policy is insured under either of our PremierLiving® or Restorationist® Programs, use endorsement HO448MA. Rule H-9: Personal Property Replacement Cost Loss Settlement – HO 04 90 The policy provides loss settlement on an actual cash value basis for certain types of personal property. The policy may be endorsed to provide loss settlement on a replacement cost basis for such property whether insured on a blanket or scheduled basis. This coverage is automatically provided if an Advantage Elite, Elite Extended, PremierLiving® or Restorationist® endorsement is on the policy.

The premium shall be developed by applying the factors displayed in our Rate Manual to the BASE PREMIUM.

As part of this endorsement, Coverage C is automatically increased on forms HO 00 03 and HO 00 05 to 70% of Coverage A at no additional charge. Replacement cost coverage also applies to articles or classes of property separately described and specifically insured in this policy. The following property categories are not eligible for replacement cost coverage:

1. antiques, fine arts, and the like; 2. memorabilia, souvenirs, collectors items, and the like; 3. property not kept in good or workable condition; 4. obsolete articles that are stored or not being used.




Rule H-10: Section II – Basic and Increased Limits

When the limit of Liability for Coverage E (Personal Liability) and Coverage F (Medical Payments to Others) is increased or coverage for additional exposures is provided, develop the additional premium as instructed below. The same limits must apply to all exposures.

The minimum and maximum limits available by the Company are:

- Commerce: $100,000 Minimum; $1,000,000 Maximum.

- Citation: $300,000 Minimum; $1,000,000 Maximum.

1. RESIDENCE PREMISES Please refer to the Rate Manual for Basic and Increased Limit pricing.

Rule H-11: Special Personal Property Coverage – HO 05 24 For HO 00 04, Coverage C Personal Property is insured against perils named in the form. This policy may be endorsed to insure personal property against additional risks of physical loss subject to certain exclusions. This optional coverage may only be used when the apartment, dwelling or cooperative unit rented to the insured is not rented or sublet to another.

Please refer to the Rate Manual for the appropriate factor. Rule H-12: Specific Structures Away from the Residence Premises - HO 04 92

Insurance may be provided for up to three locations located away from the residence premises. Please refer to the Rate Manual for the charge per $1000 of coverage.

Structures are not covered if: - Used, or capable of being used, as a dwelling; or

- Used in business, or rented or held for rental to any person not a tenant of the dwelling. Rule H-13: Specified Additional Amount of Insurance for Coverage A – CIC-2045 This Commerce-only optional coverage provides additional cost of repair or replacement, without deduction for depreciation, under Coverage A for policy forms HO 00 03 and HO 00 05 that do not include Advantage Elite or Elite Extended endorsements CIC-2092 or CIC-2226. The CIC-2045 will provide an additional amount of insurance (up to 25%) when loss to a building insured under Coverage A exceeds the Coverage A limit of liability.

Commerce only: Please refer to the Rate Manual for the annual charge for this endorsement. To qualify, the risk must meet the following underwriting requirements:

1. Policy form HO 00 03 and HO 00 05 only. 2. The dwelling must be insured to 100% of replacement cost. 3. The dwelling must be an owner-occupied residence.

Note: This endorsement may not be written on policies that include any package endorsement except Advantage, or with Guaranteed Replacement Cost Coverage endorsement CIC-1075, Functional Replacement Cost Loss Settlement HO 05 30, or in conjunction with Extended Replacement Cost Coverage.




Rule H-14: Structures Rented to Others - Residence Premises - HO 04 40 Coverage may be provided on other structures that are rented provided that such structures are used for private residential purposes. It also removes the liability exclusions that would otherwise apply to such a rented structure.

The additional premiums Under both Section I and II may be found in the Rate Manual.

If the policy is insured under either of our PremierLiving® or Restorationist® Programs, use endorsement HO440MA. Rule H-15: Unit Owners Coverage A – Basic and Increased Limits 1. $5,000 Coverage A is provided at no additional charge. 2. The Coverage A limit may be increased. Enter the total Coverage A limit on the application.

The premium is developed based on the additional limit of insurance. Please refer to the Rate Manual for each additional $1,000 of insurance.

Rule H-16: Unit-Owners Coverage C Special Coverage – HO 17 31 For HO 00 06, Coverage C Personal Property is insured against perils named in the form. This policy may be endorsed to insure personal property against additional risks of physical loss subject to certain exclusions. This option may only be used when the condominium or cooperative unit is owner occupied and not rented to others.

Please refer to the Rate Manual for the appropriate factor.

Part I – Additional Optional Coverages and Limits Rule I-1: Additional Insured – Residence Premises – HO 04 41 This endorsement is used to name a person or organization as an additional insured with respect to the dwelling, other structures, personal liability, and medical payments. The person or organization must be listed on the endorsement schedule. If the policy is canceled or non-renewed by the insurer, the person(s) or organization(s) is notified in writing.

When a multi-family dwelling is occupied by co-owners, each occupying separate apartments, a Homeowner Policy may be issued to only one co-owner. The policy may be endorsed to cover the premises liability and interest of the other co-owner(s) in the building. A separate Homeowners Policy Form HO 00 04 may be issued to the co-owner(s) listed on the HO 04 41 who is/are occupying an apartment(s) in the dwelling. Rule I-2: Additional Insured – Student Living Away From The Residence Premises – HO 05 27 The policy provides coverage for a full-time student who was a resident of the named insured’s household before moving out to attend school and is under the age of:

1. 24 and a relative of the named insured; or 2. 21 and in the care of the named insured or a resident relative.

The policy may be endorsed to provide coverage for other types of students who were residents of the named insured’s household before moving out to attend school (e.g., part time students or students older than 24).




Please provide: - Name and Address of Student - Name of School

Please refer to the Rate Manual for the cost for this coverage. Rule I-3: Additional Interests – Residence Premises – HO 04 10 This endorsement provides a way to acknowledge a person or organization that has an insurable interest in the residence premises other than that of a mortgagee. If the policy is canceled or nonrenewed, the persons or organizations listed in the schedule are notified in writing. Although this endorsement does entitle the listed party to a copy of this notice, it does not make them an insured under the policy, unlike the Additional Insured Endorsement (HO 04 41). Rule I-4: Additional Residence Rented to Others 1, 2, 3, or 4 Families – HO 24 70 The policy may be endorsed to provide coverage when an additional 1-4 family residence is rented to others. The policy may be endorsed to extend liability coverage up to a maximum of 4 rental units. A separate charge applies to each rental unit. Other Insured Locations Occupied by the Insured and tenant occupied residences listed on this endorsement, together, will be subject to the 4 additional residence maximum.

Please refer to the Rate Manual for increased Coverage E and Coverage F pricing.

Rule I-5: Assisted Living Care Coverage – HO 04 59

A. Introduction The policy provides coverage to named insureds and resident relatives who are members of the insured’s household.

B. Coverage Description 1. The policy may be endorsed to provide personal property, additional living expense and

personal liability coverage to a person regularly residing in an Assisted Living Care facility, provided such person:

a. Is related to an insured by blood, marriage or adoption; and b. Is not a member of that insured’s household.

2. An assisted living care facility is a facility that provides assisted living services such as dining, therapy, medical supervision, housekeeping and social activities. It is not a hospice, prison or rehabilitation facility.

3. The endorsement provides the following basic limits of coverage:

a. $10,000 for Coverage C – Personal Property, with limitations ranging from $100 to $500 for certain items of property;

b. $6,000, at $500 per month, for Additional Living Expenses; and c. $100,000 For Coverage E – Personal Liability

C. Premium

Please refer to the Rate Manual for Section I and Section II Basic and Increased Limits.

Round total endorsement premium to the nearest whole dollar.




D. Endorsement Use Assisted Living Care Coverage Endorsement HO 04 59. Rule I-6: Building Additions and Alterations – Increased Limit – HO 04 51 The HO 00 04 building additions and alterations coverage limit of 10% of the Coverage C limit can be increased with this optional endorsement.

Please refer to the Rate Manual for the premium per $1,000 of insurance. Rule I-7: Building Additions and Alterations - Other Residence – HO 04 49 The policy may be endorsed to provide this coverage at residences, other than the residence premises, rented to an insured.

Please refer to the Rate Manual for the premium per $1,000 of insurance. Rule I-8: Business Pursuits – HO 24 71 The policy contains fairly broad business exclusions and limitations under the liability section. This endorsement expands business pursuits liability coverage, and is geared toward occupations such as sales, clerical, and instructional. Coverage does not apply to injury or damage in connection with a business owned or financially controlled by the insured or by a partnership of which the insured is a partner, nor does it apply to injury or damage arising out of the rendering or failure to render professional services other than teaching. Rates displayed within the Rate Manual apply on a per employee basis.

Classification:

A. Clerical Employees

B. Sales Person, Collector or Messenger (Installation, Demonstration or Servicing Operation included or excluded.

C. Teachers 1. Lab, Athletic, Manual or Physical Training. 2. Not otherwise classified.

Note: Corporal Punishment is Excluded. Rule I-9: Credit Card, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money Coverage - Increased Limit – HO 04 53 The homeowners policy has a $500 limitation on a loss from the fraudulent use of a credit card or electronic fund transfer card or access device, check forgery, and acceptance of counterfeit money. The limit may be increased up to $10,000 with this optional endorsement. The additional premium for this coverage may be found in the Rate Manual.

NOTE: The special limit for policies with the Advantage is $2,500. The special limit for policies with either Advantage Elite endorsement, PremierLiving®, or Restorationist® is $10,000. Additional limits may not be purchased.




Rule I-10: Damage to Property of Others – Increased Limits – HO 06 51

The policy provides a limit of $1,000 per occurrence for damage to property of others caused by an insured. This limit may be increased to $5,000, $10,000, $25,000 or $50,000.

Please refer to the Rate Manual for appropriate pricing.

Use Damage to Property of Others – Increased Limits Endorsement HO 06 51. Rule I-11: Earthquake – HO 04 54 This optional endorsement is used to provide coverage for property covered under Coverages A, B, and C, and for specifically insured other structures, for loss caused by earthquake. Coverage for loss to masonry veneer is excluded, however, the exclusion can be removed for an additional premium. The base deductible is 5% of the limit of liability for either Coverage A or C, whichever is greater, and is subject to a $250 minimum. This deductible may be increased for a premium credit. Additional deductible percentage amounts of 10%, 15%, 20% and 25% are available. In the event of an Earthquake loss to covered property, the dollar amount is deducted from the total of the loss for Coverages A, B and C.

The premium for the Base Deductible shall be developed as follows:

a. Determine if Rate Table A, B, or C applies. b. Select the rate(s) per $1,000 according to construction. c. Apply the rate(s) displayed in the Rate Manual to the:

- Coverage A limit for Form HO 00 03 - Coverage C limit for Form HO 00 04 - Coverage A and C limits for Form HO 00 06 without the HO 17 31 - Coverage A limit only for Form 5, and Form 6 with the HO 17 31 - Ordinance or Law total amount of insurance (includes basic and, if applicable, increased

amounts) - Amount of Insurance for - increased limits (Coverage C or D) - HO 04 48 and other building options

If Exterior Masonry Veneer:

A. is covered - rate as masonry

B. is not covered - rate as frame.

The premium for Higher Deductibles shall be developed as follows:

a. Determine the premium for the Base Deductible.

b. Select the credit factor for the percentage deductible desired from the rates displayed in the Rate Manual.

c. Multiply the premium in Step a. by the factor selected in Step b. Rule I-12: Extended Theft Coverage for Residence Premises Occasionally Rented to Others - HO 05 41 When the policy is extended to cover loss by theft while a portion of the residence premises usually occupied by the insured is occasionally rented in whole or in part to others, or while there is a rental to a roomer or boarder, an additional premium will be charged. There are exclusions,




notably with regard to loss caused by a tenant and loss of jewelry, furs, stamps, money, silverware, gold ware and pewter ware.

Please refer to the Rate Manual for appropriate pricing. Rule I-13: Fuel Spill Coverage

A law went into effect in Massachusetts addressing oil leaks from home heating systems (per Chapter 453 of the Acts of 2008). The law has two major provisions requiring:

• The installation of either an oil safety valve or an oil supply line with protective sleeve on systems that do not currently have these devices; and • Insurance companies that write homeowner policies to offer coverage for leaks from heating systems that use oil.

If an insured is in compliance with the new law, coverage will be made available via one of the following Property Remediation for Escaped Liquid Fuel and Limited Escaped Liquid Fuel Liability Coverages endorsements:

• HO 05 47 For use with policy forms HO 00 03 and HO 00 05 • HO 05 48 For use with policy form HO 00 04 • HO 05 49 For use with policy form HO 00 06

Homeowners are exempt from taking these leak prevention steps if:

• the oil burner is located above the oil storage tank and the entire oil supply line is connected to and above the top of the tank; or • an oil safety valve or oil supply line with protective sleeve was installed on or after January 1, 1990*; and • Those changes comply with the oil burning equipment regulations.

A copy of the oil burner permit from the local fire department (Form 1) and/or a copy of the Fuel Remediation Questionnaire (CIC-2167) may be used to demonstrate compliance.

Heating oil systems installed on or after January 1, 1990, most likely are already in compliance. State fire codes implemented these requirements on new installations at that time.

Coverage under Section II for covered Fuel Spills will be the Coverage E limit of liability, subject to a maximum limit of $300,000. Limiting endorsement CIC-2193 will be applied to all policies that include this coverage.

The Home Heating Oil System Upgrade Questionnaire should accompany all requests for 1st Party Property Remediation Coverage.

Please refer to the Rate Manual for appropriate Section I and Section II pricing. Rule I-14: Identity Fraud Expense Coverage – HO455CW This endorsement provides up to $15,000 in expenses for a loss arising out of identity fraud. The limit applies as the direct result of any one identity fraud first discovered or realized during the policy period and subject to a special $500 deductible. This coverage may include identity theft preventative and resolution services through CyberScout™, such as credit file alerts, credit




monitoring, and access to a trained fraud specialist. Please refer to the Rate Manual to determine the premium charge for this endorsement. Rule I-15: Increased Limit on Business Property – HO 04 12 The policy may be endorsed to insure computers and related business equipment against additional risks of physical loss subject to certain exclusions. The $2,500 limit of liability on the residence premises may be increased to $15,000 in increments of $2,500. The additional premium for each $2,500 of insurance is displayed in the Rate Manual. When the on-premises limit is increased, the off-premises limit is automatically increased to 60% of the on-premises limit, at no charge.

This endorsement does not apply to:

1. Business property in storage, held as a sample, or for sale or delivery after sale.

2. Business property pertaining to a business actually conducted on the residence premises.

Note: - The special limit for policies with the Advantage endorsement is $3,000. - The special limit for policies with the Advantage Elite or Elite Extended endorsement is

$5,000.

The special limit for policies with the PremierLiving® or Restorationist® endorsements is $15,000. These policies are therefore ineligible for this endorsement. Rule I-16: Incidental Farming Personal Liability – HO 24 72 An HO 00 03 or HO 00 05 policy may be endorsed to provide coverage for the liability of the insured when farming is conducted on the residence premises and is incidental to the use of the premises as a dwelling. The income derived from the farming operations cannot be the insured's primary source of income. Please refer to the Rate Manual for the cost for this endorsement. Rule I-17: Incidental Low Power Recreational Motor Vehicle Liability Coverage Endorsement – HO 24 13 A. Coverage Description 1. The policy may be endorsed to provide liability coverage with respect to certain types of

recreational motor vehicles. 2. Coverage does not apply with respect to the following vehicles owned by a named insured if

the occurrence takes place off the insured location: a. Motorized bicycles; b. Motorized golf carts; c. Mopeds; or d. Motorized scooters.

Please refer to the Rate Manual for the charge for this endorsement.

Use Incidental Low Power Recreational Motor Vehicle Liability Coverage Endorsement HO 24 13.




Rule I-18: Landlord’s Furnishings – HO 05 46

A. Basic Limit Forms HO 00 03 and HO 00 05 automatically cover, on a named perils basis (except Theft), landlord furnishings in an apartment on the residence premises regularly rented or held for rental. The basic limit per apartment unit is $2,500.

B. Increased Limits The basic limit of $2,500 may be increased in increments of $500 up to a total of $10,000 per apartment. The increased limit applies to the same perils that apply to the basic limit and may vary by rented unit.

C. Premium Please refer to the Rate Manual for the rate / $500 of insurance.

Use Landlord's Furnishings Endorsement HO 05 46. Rule I-19: Loss Assessment Coverage for Earthquake – HO 04 36 This optional endorsement is used to provide coverage for an insured’s share of an assessment made by his or her homeowners or condominium Association for loss caused by earthquake and charged against insured as owner or tenant.

Please refer to the Rate Manual to determine the premium for this endorsement. The premium shall be developed as follows:

(Coverage limit / 1000) x Frame Factor (0.55) or Masonry/Superior Factor (0.75) Rule I-20: Limited Water Back-Up and Sump Discharge or Overflow Coverage – HO 04 95 The policy forms exclude coverage for loss resulting from water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment. When this endorsement is attached to the policy, coverage is provided with respect to direct physical loss to property covered under Section I, if caused by water or waterborne material which originates from within the dwelling where the named insured resides, and backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment.

Please refer to our Guidelines when Total Limits, including the $2,500 coverage grants in all package endorsements, is $15,000 or more.

Losses covered under this endorsement are subject to the policy deductible. Coverage is available at the limits displayed in our Rate Manual.

Note: $25,000 is the maximum limit we will write in total, thus the $25,000 limit option is only available to individuals who have not purchased a package endorsement. Rule I-21: Massachusetts - Special Computer Coverage (Without Broadened Home-Sharing Host Activities Coverage Endorsement) – HO 05 45 The policy may be endorsed to insure computers and related equipment (excluding phones) against additional risks of physical loss subject to certain exclusions. This endorsement can be added to all policy types except HO 00 05, HO 00 04 with HO 05 24, and HO 00 06 with HO 17 31. The




policy deductible applies.

Please refer to the Rate Manual to determine the charge for Endorsement.

NOTE: This endorsement cannot be written in conjunction with the CIC-611. Rule I-22: Ordinance or Law Increased Amount of Coverage – HO 04 77 The policy automatically provides up to 10% of the Coverage A for HO 00 03, HO 00 05 and HO 00 06 (or 10% of Additions/Alterations for HO 00 04) to pay for the increased costs necessary to comply with the enforcement of an ordinance or law. With the Ordinance or Law Endorsement, an HO 00 03, HO 00 05 or HO 00 06 policy can be endorsed up to 50% of Coverage A, and an HO 00 04 can be endorsed up to 50% of Additions/Alterations limit. Options of 75% and 100% are available for eligible policies.

A. Forms HO 00 03 and HO 00 05 The policy may be endorsed to increase the basic ordinance or law coverage amount (10% of Coverage A) by 15% initially for a total of 25%, and in 25% increments thereafter.

To determine the BASE PREMIUM:

1. Multiply the premium computed in accordance with the Base Premium Rule by the appropriate factor displayed within the Rate Manual.

B. Form HO 00 04 The policy may be endorsed to increase the basic ordinance or law limit (10% of the Buildings Additions and Alterations limit in the HO 00 04 policy form) by 90% for a total of 100% of the Buildings Additions and Alterations limit. The premium for each additional $1,000 of Insurance may be found in the Rate Manual.

C. Form HO 00 06 The policy may be endorsed to increase the basic ordinance or law amount (10% of Coverage A) by 40% for a total of 50% of the Coverage A limit initially, and in 25% increments thereafter.

The premium for each additional $1,000 of Insurance may be found in the Rate Manual. Rule I-23: Other Insured Locations Occupied by the Insured Section II Coverage may be extended to other residence premises occupied by the insured, but which are insured for Section I Coverage under another insurance policy or by another company. The charge for extending Section II Coverage to additional locations occupied by the insured will be based on the number of family units. The owner occupied residences listed under this rule and tenant occupied residences listed on the Additional Residence Rented to Others (HO 24 70), together, will be subject to the 4 additional residence maximum.

For 3-Family Dwellings, refer to Rule I-MA-1 to determine the appropriate Rating Group.

Please refer to the Rate Manual for appropriate Coverage E and Coverage F pricing. Rule I-24: Other Members of Your Household – HO 04 58

A. Introduction The policy provides coverage to named insureds, resident relatives who are members of the insured's household and persons under the age of 21 who are in the care of an insured.




B. Coverage Description 1. The policy may be endorsed to provide coverage to a person who is a member of the named insured's household but does not fall under the definition of insured in the policy. It does not cover a guest, residence employee, roomer, boarder, tenant or home-sharing occupant. Coverage extends to the person named in the endorsement, and a person under the age of 21 who is in the legal custody of that person. 2. All coverages and provisions under Sections I and II of the policy that apply to insureds also apply to the persons described in Paragraph 1. except Coverages A, B and D (Fair Rental Value only).

Please refer to the Rate Manual for the additional charge for this coverage.

Use Other Members Of Your Household Endorsement HO 04 58. Rule I-25: Owned Motorized Golf Cart Physical Loss Coverage - HO 05 28

A. Coverage Description The policy may be endorsed to provide coverage for physical loss to a motorized golf cart, including permanently installed accessories, equipment and parts owned by an insured.

Also covered, for an amount equal to 10% of the limit of the highest scheduled cart, are accessories, equipment or parts designed or made solely for the cart that are not permanently installed provided such property is at an insured's residence or in or upon the cart off the insured's residence at the time of loss.

Coverage for loss caused by collision is optional and only applies if declared on the schedule of the endorsement.

B. Eligibility To be eligible for coverage, the motorized golf cart shall be of the type designed to carry up to four people on a golf course for the purpose of playing golf and shall not have been built, or modified after manufacture, to exceed a speed of 25 m.p.h. on level ground.

C. Limit Of Liability The limit of liability shall be selected by the insured. However, that limit should be representative of the actual cash value of the motorized golf cart including any permanently installed accessories, etc.

D. Deductible The $500 deductible replaces any other deductible in the policy with respect to property covered under the endorsement.

E. Premium Please refer to the Rate Manual to determine the rate per $500 of insurance. Each cart will be rated separately.

Use Owned Motorized Golf Cart – Physical Loss Coverage Endorsement HO 05 28. Rule I-26: Personal Computer Endorsement – CIC-611 Coverage is provided for direct or accidental loss to Personal Computer Equipment, including Program Data. (Note: An exclusion of coverage for devices with screen size of less than 10.8 inches exists.)




This endorsement may not be written in conjunction with the HO 05 45.

- The premium charge per $1,000 of coverage may be found in the Rate Manual. - Subject to a minimum premium of $25 - Maximum coverage available is $10,000. Unlike the ISO endorsement (HO 05 45), Items 8, 9, 10 and 11 under the Special Limits of Liability do not apply to the computer with this endorsement, therefore is not excluded for business use. Additionally, endorsement CIC-611 has a special $50 deductible. Rule I-27: Permitted Incidental Occupancies - Residence Premises – HO 04 42 and Permitted Incidental Occupancies - Other Residence – HO 24 43 Coverage for a permitted incidental occupancy is limited under Section I and excluded under Section II. The policy may be endorsed to provide expanded Section I coverage and Section II coverage on a permitted incidental occupancy in the dwelling or an other structure, for up to two occupancies. Examples of such occupancies are offices for business or professional purposes, and private schools or studios for music, dance, photography and other instructional purposes.

The permitted incidental occupancies endorsement also covers personal property pertaining to the permitted incidental occupancy within the Coverage C limits stated in the declarations.

If the permitted business is located in another structure, Coverage B does not apply to that structure. See Item B below for the charge for specific insurance on the structure.

Under Permitted Incidental Occupancies Residence Premises Endorsement Section II Coverage is not available on a Secondary/Seasonal residence.

The Section I premium for the HO 04 42 shall be as follows:

A. Residence Premises – No Charge.

B. If the business is located in an other structure, please refer to the rate manual for the charge per $1,000 of specific insurance on the structure.

The Section II premium for the HO 04 42 shall be as follows:

ALL FORMS - Incidental occupancies are permitted provided the premises are occupied principally for dwelling purposes and there is no other business conducted on the premises. When coverage is extended to a permitted occupancy in the dwelling or in a separate structure on the premises, the additional premium shall be for the increased Coverage E and F exposure.

Please refer to the Rate Manual for increased Coverage E and F pricing.

If the policy is insured under either of our PremierLiving® or Restorationist® Programs, use endorsement HO442MA. Rule I-28: Personal Injury Coverage – HO 24 82 This coverage extends Coverage E to pay for damages for which an insured is liable by law because of personal injury, which is defined as false arrest, false imprisonment, wrongful eviction, wrongful entry, wrongful detention, malicious prosecution, libel, slander, defamation of character, or invasion of privacy. This coverage is automatically provided if any Advantage-series endorsement is on the policy or with PremierLiving® or Restorationist®.

The cost for this coverage may be found in the Rate Manual.




Rule I-29: Refrigerated Property Coverage – HO 04 98 Coverage for loss to refrigerated foods may be provided. The loss must result from damage to generating and transmitting equipment or from mechanical failure of the food storage unit. Coverage is provided to a maximum limit of $500 subject to a $100 deductible. The cost for this coverage may be found in the Rate Manual. Rule I-30: Replacement Cost Loss Settlement for Certain Non-Building Structures on the Residence Premises – HO 04 43 The HO 00 03 and HO 00 05 policies provide actual cash value loss settlement for non-building structures covered under Coverage B - Other Structures, or specifically scheduled under this policy. This policy may be endorsed to provide repair or replacement cost loss settlement for the following types of non-building structures only if they are located on the residence premises:

1. Re-enforced masonry walls; 2. Metal or fiberglass fences; 3. Fences made of plastic/resin materials such as polyvinylchloride; 4. Patios, walks (not made of wood or wood products); 5. Driveways; and 6. Inground or semi-inground swimming pools, therapeutic baths or hot tubs (with walls and

floors made of reinforced masonry, cement, metal or fiberglass. However, this does not include their accessories or equipment).

The premium is computed by multiplying the Base Premium by a factor from the following table:

Types of Non-building Structures Factors Inground or semi-inground swimming pools, therapeutic baths or hot-tubs

Refer to Rate Manual

All Other Refer to Rate Manual Rule I-31: Scheduled Personal Property Endorsement – HO 04 61 The Commerce Insurance Company and the Citation Insurance Company have an interest in providing scheduled personal property coverage to our insureds who want to protect their valuable items.

Since this coverage is available on an “open-perils” basis, we require additional supporting information with all submissions.

For example, in evaluating all requests for coverage, we determine if the size and scope of the schedule is appropriate to the value of the Homeowner account.

All schedules will be subject to the following guidelines:

Maximum single item limit - $35,000

Evidence of Ownership Item up to $10,000 - Complete description. Item $10,000 and over - Current appraisal (For new submissions, generally completed within the past 3 years.)




Insurance to value - 100%

It is very important to have up-to-date, complete and accurate descriptions/appraisals when required. They assist us in verifying property eligibility, classification, value and existence. The following is an example of an acceptable description/appraisal:

One woman’s diamond engagement ring; platinum tiffany mounting; center diamond flawless; G quality; 1.00 carat with one baguette diamond of .25 on each side. Value $12,000.

Personal (No Professional) use only.

In addition to scheduling valuable items, some items may be covered more conveniently by our Valuable Possessions Coverage Endorsement. This endorsement provides identical coverage (see Rule I-13) on a blanket basis, and is designed for individual items valued to $10,000.

As always, when protecting valuable items, especially large schedules, a sound security system is recommended. Please encourage your insureds to consider security systems, and remind them that our Homeowner programs provide premium credits for protective devices.

The scheduled personal property endorsement will pay the insured the lesser of: 1. Actual cash value of the property sustaining loss; 2. The amount for which the property could be repaired or replaced; or 3. The amount of insurance of the property sustaining loss.

The limit of liability that applies to each scheduled item should be carefully evaluated to ensure that the limit selected by the insured represents the cost to replace the item if lost or damaged beyond repair.

Pricing for this endorsement may be found in the Rate Manual.

Breakage Coverage for fragile articles may be extended to cover all risk of physical loss. The additional premium is $0.15 per $100 of insurance.

Only applicable in Citation for single family homes. Rule I-32: Supplemental Loss Assessment Coverage – HO 04 35 The policy automatically provides, under Section I Additional Coverage and Section II Additional Coverage, a limit of $1,000 each for assessment relating to the residence premises, excluding assessments resulting from the peril of earthquake. The policy may be endorsed to provide a single additional amount of insurance to be applied to one or more assessments arising out of a single loss. The additional premium is developed as follows:

A. Residence Premises

New Amt. of Cov. HO 00 04 and HO 00 06 without HO 17 32

HO 00 03, HO 00 05, and HO 00 06 with HO

17 32 $1,000 N/C N/C $5,000 Refer to Rate Manual Refer to Rate Manual $10,000 Refer to Rate Manual Refer to Rate Manual

Each Add’l $5,000 (up to $100,000)

Refer to Rate Manual Refer to Rate Manual




B. Additional Locations

The policy may be endorsed to provide loss assessment coverage pertaining to additional locations. Loss Assessment coverage may not be extended to any property that is located within one mile of tidal water.

The premiums displayed in the Rate Manual apply to each location covered:

New Amt. of Cov. HO 00 04 and HO 00 06 without HO 17 32

HO 00 03, HO 00 05, and HO 00 06 with HO

17 32 $1,000 Refer to Rate Manual Refer to Rate Manual $5,000 Refer to Rate Manual Refer to Rate Manual $10,000 Refer to Rate Manual Refer to Rate Manual

Each Add’l $5,000 (up to $100,000)

Refer to Rate Manual Refer to Rate Manual

No more than 2 locations can be written in addition to the residence premises. Rule I-33: Theft of Building Materials Coverage – CIC-728 This endorsement covers the theft and the attempted theft of lumber, materials, supplies, furniture, fixtures, and equipment on the insured premises which will constitute or does constitute a permanent part of the dwelling and other structures while in the course of construction. Please refer to the Rate Manual for the annual and minimum retained premium for this coverage.

The following criteria must be met to be eligible for this coverage.

1. Single family residences only; 2. The policy must be written in the name of the intended owner/resident; 3. Coverage A must be 100% of the expected completed value; 4. The expected occupancy must be within 6 months of the policy effective date. Rule I-34: Trust Endorsement – HO 06 12

A. Coverage A Homeowners Policy may be endorsed to insure a trustee, and if applicable, a trust:

1. Under Section I – Property Coverages, for any insurable interest in the dwelling or other structure held in trust; and

2. Under Section II – Liability Coverages, for bodily injury or property damage liability arising out of the ownership, maintenance or use of an insured location held in trust.

B. Endorsement

1. Use Trust Endorsement HO 06 12. 2. The following must be shown in the endorsement:

a. The name and address of the Trust; and b. The name and address of the trustee(s).

3. The Trust may also be listed as an Insured if the Trust can be recognized under applicable state law as a legal entity with the capacity to sue or be sued in a court having jurisdiction.

The charge for this endorsement may be found in the Rate Manual.




Rule I-35: Unit-Owners Rental to Others – HO 17 33 The HO 00 06 policy provides no coverage for Coverage C - Personal Property and Section II Liability when the residence premises is regularly rented or held for rental to others. The policy may be endorsed, however, to provide such coverage, including theft. This is a mandatory endorsement for HO 00 06 when the unit is tenant occupied.

The additional premium is determined based on the rate/factor displayed in the Rate Manual.

The Coverage C BASE PREMIUM (less credit for higher deductible or plus debit for lower deductible) times .25 Rule I-36: Valuable Possessions - HO485CW This endorsement is available on all policy forms and provides special blanket coverage for specific classes of property. Coverage is subject to per-item and per-occurrence maximums.

A schedule of eligible classes of property, and their available coverage options and premiums, may be found in the Rate Manual.

Limit of Liability The most we will pay in any one occurrence for loss of an item is as follows:

Silverware, Jewelry, Fine Arts, or Fur is $10,000 per item Camera, Gun, or Musical Instrument is $1,000 per item

Rule I-37: Watercraft – HO 24 75 Coverage is included in the policy form, at no additional charge, for certain watercraft powered by an outboard engine or motor or combination of outboard engines or motors of up to 25 horsepower, and sailboats less than 26 feet in overall length with or without auxiliary power. Coverage is also included for watercraft powered by inboard or inboard-outdrive engines or motors, including those that power a water jet pump, of 50 horse power or less when not owned by an insured or more than 50 horse power when not owned by or rented to an insured.

The policy may be endorsed to provide coverage for the following types of craft, and the coverage must be written to the expiration of the policy.

1. Watercraft, up to 26 feet in length powered by outboard engines or motors exceeding 25 horsepower; or powered by inboard or inboard-outdrive engines or motors, including those that power a water jet pump. Accumulate total horsepower if two or more engines or motors are regularly used together with any single watercraft owned by insured.

2. Sailboats 26 feet or more in overall length, with or without auxiliary power.

For watercraft not described in preceding paragraphs, coverage is not permitted under the homeowners policy.

Note: Endorsement HO 24 75 provides coverage for Watercraft Liability only. If Hull Coverage is desired, please refer to the Watercraft section of this manual. If a watercraft is covered under our CIC-918 Watercraft Endorsement, the HO 24 75 should not be applied to the same boat.

Please refer to the Rate Manual for appropriate Coverage E and Coverage F pricing.

Note: Sailboats less than 26 feet in length, with or without auxiliary power, are automatically provided Section II Coverages under the Homeowners Policy.




Rule I-MA-1: Section II Liability – Rating Group Definitions

All cities and towns of the Commonwealth shall be considered Rating Group “C” except for the following:

- Rating Group A (Cities of Lowell and Lynn) - Rating Group B (Cities of Springfield, West Springfield and Worcester.)

Part J – Personal Umbrella Coverage Rule J-1: Personal Umbrella Liability Endorsement (HU300 MA) or Personal Umbrella Liability Policy (DL 98 01) This endorsement provides coverage in excess of the liability limits provided by underlying automobile and property policies. Coverage limits are designed to become effective when the underlying limits are exhausted. This endorsement may cover exposures up to the coverage limits specific to the policy for the following:

Protection for claims of bodily injury, personal injury or property damage caused by the named insured or member of family/household;

Hazards on the property which the insured is ruled liable for; Personal liability incidents on or off property owned or rented by the insured; Additional protection above the basic auto policy for auto-related liability; Protection against non-business related personal injury claims such as slander, libel,

wrongful eviction and false arrest and legal defense cost for a covered loss including attorney fees and associated court cost.

A Personal Umbrella Liability Endorsement may be written for: 1. An individual; or 2. Spouses who are residents in the same household. Both may be listed as named insureds

on the declarations page. 3. Household member autos may also be covered upon request.

In instances when MAPFRE is unable to accommodate an insured’s Homeowners risk, a Personal Umbrella Policy may be issued provided we write the underlying Personal Automobile Policy at required limits. Instances when MAPFRE can not write an underlying Homeowners Policy include:

- Risk location does not meet our coastal guidelines; and/or - A policy’s Coverage A limit exceeds our maximum limit.

Rule J-2: Deductible A deductible of $250 applies to losses not covered by underlying insurance.




Rule J-3: General Rules

A. Territory Definitions

Territory I Territory II Entire State except

Territory II Boston Hull Somerville Chelsea Malden Springfield Everett Revere Winthrop

B. Policy/Endorsement Term

1. Policy: A personal umbrella policy will be issued for a term of one year, and will be subject to automatic renewal. Your Personal Lines Underwriter will evaluate each risk prior to renewal. You will be required to complete a Renewal Questionnaire every third year. This will assist the underwriter in properly evaluating the risk for renewal. Legal Notice of Non-Renewal will be sent 45 days prior to the policy expiration date when any personal umbrella liability policy will be non-renewed.

2. Endorsement: The endorsement term shall be congruent with the homeowner policy term of one year, and will be subject to automatic renewal. If the personal umbrella liability endorsement is added during the policy term, the premium will be calculated on a pro-rata basis, and the endorsement will expire as of the expiration date of the policy.

C. Maintenance of Underlying Insurance The required limit(s) of liability on all underlying insurance policies must be maintained. In the event they are not, the umbrella will apply to the extent it would have if the insured had maintained the required primary insurance/limit(s).

D. Personal Umbrella Liability Policy or Endorsement - Public or Livery Conveyance Exclusion Endorsement – HU312 MA Public or Livery Conveyance Exclusionary endorsement HU312 MA will be attached to all Personal Umbrella Policies or Endorsements.

E. Personal Umbrella Home-Sharing Host Activities Amendatory Endorsement – Massachusetts – HU357 MA Home-Sharing Host Activities Amendatory Endorsement HU357 MA will be attached to all Personal Umbrella Policies or Endorsements. Rule J-4: Annual Rates

A. $1,000,000 Limit of Liability Rating Rule:

250/500/100 Program

Basic Premium for one or two automobiles and one residence

Territory I $160

Territory II $195

Supplementary Charges

(Both Territories) Each Additional Auto $35 Each Additional Residential Unit (Owner or Rented)

$15 (per unit)




Each Recreational Vehicle $25 Watercraft: Sail < 26 ft. Sail: 26 ft. – 40 ft. Sail: Over 40 ft. Motor: 26 – 50 HP Motor: 51 – 100 HP Motor: 101 – 150 HP Motor: 151 – 200 HP Motor: 201 – 250 HP Each add’l 50 HP, to 700 HP 700 HP

$20 $40

$60 (Refer to Co.) $20 $30 $40 $50 $60

$10 (Refer to Co.) $200 (Refer to Co.)

Each Inexperienced Operator (Any operator with less than 6 years driving experience)

$50

In-Home Business (CIC-PUL only)

$50

Incidental Business (CIC-PUL only)

$10

Co-Occupant (CIC-PUL only)

$10

Assisted Living Care $10 Trust $10 Minimum Premium (*) Territory I Territory II

$160 $195

(*) – Apply the Minimum Premium prior to any Increased Limits Factor

B. $2,000,000 Limit of Liability Rating Rule: To increase the limit of liability to $2,000,000, multiply the total annual premium (Base Rate + Supplemental Charges) for the $1,000,000 limit of liability, subject to the minimum premium, by a factor of 1.67 in Territory I or a factor of 1.72 in Territory II.

C. $3,000,000 Limit of Liability Rating Rule: To increase the limit of liability to $3,000,000, multiply the total annual premium (Base Rate + Supplemental Charges) for the $1,000,000 limit of liability, subject to the minimum premium, by a factor of 2.34 in Territory I or a factor of 2.29 in Territory II.

D. $4,000,000 Limit of Liability Rating Rule: To increase the limit of liability to $4,000,000, multiply the total annual premium (Base Rate + Supplemental Charges) for the $1,000,000 limit of liability, subject to the minimum premium, by a factor of 3.06 in Territory I or a factor of 2.88 in Territory II.

E. $5,000,000 Limit of Liability Rating Rule: To increase the limit of liability to $5,000,000, multiply the total annual premium (Base Rate + Supplemental Charges) for the $1,000,000 limit of liability, subject to the minimum premium, by a factor of 3.77 in Territory I or a factor of 3.47 in Territory II.




Rule J-5: Miscellaneous Endorsements

Co-Occupant - Personal Umbrella - CIC-1094 This endorsement will extend coverage under the Personal Umbrella Liability forms. Coverage will be provided under the umbrella policy/endorsement to the individual identified in Homeowners Endorsement HO 04 58 – Other Members of Your Household.

Family Members Auto Coverage – CIC-940 The Family Members Auto Coverage endorsement is an optional coverage, which extends coverage for a family member’s automobile. Family member underlying policies must maintain a personal automobile policy with MAPFRE, at liability limits that meet our underwriting guidelines. The $1,000,000 annual premium is $25 per auto, which is adjusted by any increased limits factor for limits of $2,000,000 or more.

Personal Umbrella Liability Exclusion – Loss Assessment Coverage - CIC-2136 This endorsement will exclude loss assessments coverage under the Personal Umbrella Liability forms to a specified location. Exclusionary endorsement CIC-2136 will appear on the policy declarations with the specified location identified.

Personal Umbrella Liability Policy or Endorsement - Named Driver Exclusion Endorsement - HU423 MA This endorsement will exclude coverage under the Personal Umbrella Liability forms for a specifically named individual driver. The operator will be excluded from coverage and not charged a premium. Exclusionary endorsement HU423 MA will appear on the policy declarations with the named excluded driver identified.

A Personal Umbrella Liability Named Driver Exclusion Acknowledgment must be completed and signed by the applicant/named insured in order for the endorsement to take effect.

Personal Umbrella Liability Policy or Endorsement Auto Liability Exclusion Endorsement - Massachusetts - HU452 MA This endorsement excludes all auto liability coverage for an insured who has neither owned nor nonowned auto exposures. A premium credit of $45 shall be applied when the endorsement is used.

Personal Umbrella Liability Policy or Endorsement Exclusion – Designated Auto Endorsement – Massachusetts - HU499 MA This endorsement excludes one or more designated autos. No premium charge shall be made for any such designated autos.

Personal Umbrella Liability Policy or Endorsement Exclusion – Designated Recreational Motor Vehicle Endorsement – Massachusetts - HU424 MA This endorsement excludes one or more designated recreational motor vehicles. No premium charge shall be made for and such recreational motor vehicles.

Personal Umbrella Liability Policy or Endorsement Exclusion – Designated Watercraft Endorsement – Massachusetts - HU442 MA This endorsement excludes one or more designated watercraft. No premium charge shall be made for any such designated watercraft.




Personal Umbrella Laibility Policy or Endorsement Exclusion – All Hazards in Connection with Designated Premises Endorsement – Massachusetts - HU443 MA This endorsement excludes one or more designated premises. No premium charge shall be made for any such designated premises.

Personal Umbrella Laibility Policy or Endorsement Exclusion – Fungi, Wet or Dry Rot, or Bacteria Endorsement – Massachusetts - HU346 MA This is mandatory endorsement attached to all Personal Umbrella Liability policies. This endorsement excludes bodily injury, personal injury or property damage involving the inhalation of, ingestion of, contact with, exposure to, existence of, or presence of and fungi (including mold), wet or dry rot, or bacteria. No premium credit shall be applied.

Miscellaneous Type Vehicle, Watercraft and Motor Home Exclusion Endorsements The following endorsements may be used to exclude liability coverage with respect to motorcycles, mopeds, watercraft, recreational motor vehicles (such as all-terrain vehicles, dune buggies, golf carts and snowmobiles) and motor homes. No premium adjustment will be made with such endorsements.

- Use Personal Umbrella Liability Policy or Endorsement Exclusion – Motorcycle and Moped Endorsement – Massachusetts - HU447 MA, to exclude personal liability coverage with respect to motorcycles and mopeds.

- Use Personal Umbrella Liability Policy or Endorsement Exclusion – Watercraft Endorsement – Massachusetts - HU448 MA, to exclude personal liability coverage with respect to watercraft.

- Use Personal Umbrella Liability Policy oe Endorsement Exclusion – Recreational Motor Vehicle Endorsement – Massachusetts - HU450 MA, to exclude personal liability coverage with respect to recreational motor vehicles.

- Use Personal Umbrella Liability Policy or Endorsement Exclusion – Motor Home Endorsement – Massachusetts HU451 MA, to exclude personal liability coverage with respect to motor homes.

Endorsements Covering Business Exposures

Personal Umbrella Laibility Policy or Endorsement Excess Home Business Liability Coverage Endorsement - HU403 MA This endorsement provides personal liability coverage with respect to a specific business conducted at or from the residence premises to the extent that such coverage is provided by underlying insurance. The limit of liability for excess home business liability coverage is provided on an annual aggreagte basis.

Personal Umbrella Laibility Policy or Endorsement Excess Business Pursuits Coverage Endorsement - HU405 MA This endorsement provides personal liability coverage with respect to business activities to the extent that such coverage is provided by underlying insurance. Coverage is excluded if the insured owns the business, is a partner or maintains financial control in the business.




Personal Umbrella Laibility Policy or Endorsement Excess Permitted Incidental Occupancies Liability Coverage Endorsement - HU402 MA This endorsement provides personal liability coverage with respect to a permitted incidental occupancy to the extent that such coverage is provided by underlying insurance. Examples of such occupancies are Offices, Schools or Studios meaning offices for business or professional purposes and private schools or studios for music, dance and other instructional purposes.

Personal Umbrella Laibility Policy or Endorsement Assisted Living Care Liability Coverage Endorsement - HU407 MA This endorsement provides excess personal liability coverage to a designated person other than the named insured or a resident relative who is:

- Related to another insured by blood, marriage or adoption; - Not a member of the named insured’s household; and - Regularly residing in a designated assisted living care facility.

Such designated person is an insured only if coverage is provided to that person by underlying insurance.

An assisted living care facility is a facility that provides assisted living services such as dining, therapy, medical supervision, housekeeping and social activities. The following facilities are ineligible: Hospices; Prisons; and Rehabilitation Facilities.

Personal Umbrella Laibility Policy or Endorsement Trust Endorsement - HU409 MA This endorsement is designed to extend liability coverage to a trust or trustee if title to vehicles, premises or other property is transferred to a trust and to the extent that coverage is provided to the trust or trustee by underlying insurance. A trustee of the trust cannot be:

- A partnership or joint venture; - A corporation; - A limited liability company; - An organization other than a partnership or joint venture, a corporation or a limited

liability company; or - A licensed professional who provides ongoing professional services with respect to the

profession for which that individual is licensed, in connection with the administration of the trust. However, this paragraph does not apply to an individual who is a relative of the grantor/settlor of the trust.

The following must be shown in the endorsement: - The name and address of the Trust; and - The name and address of the trustee(s).

The Trust may also be listed as an Insured if the Trust is recognized under applicable state law as a legal entity with the capacity to be sued in a court having jurisdiction.




Part K – Commerce Watercraft Program Rule K-1: Welcome The Commerce Watercraft Program, written as an endorsement to our homeowner policy, fits the needs of a broad cross section of the small pleasure craft owning population. Attractive prospects for the Commerce Watercraft Program include:

Current Commerce Auto and Homeowner Clients – your clients will benefit from the “one agency, one company” convenience.

Owners of Smaller Sailboats and Nonperformance Power Boats – these types of risks qualify for our most competitive rates.

Experienced Skippers – not only will they appreciate the broad coverage and competitive rates, many will qualify for Special Credits (see manual for details).

New-Boat Owners – perhaps the best time to sign on a boat-owning client is soon after their purchase. Our full repair cost coverage will appeal to new craft owners. Rule K-2: Coverages and Limits The Commerce Watercraft Endorsement CIC-918 is available on all policy forms, written in both the Commerce and Citation Homeowner Programs.

The endorsement provides the following:

Physical damage coverage to the watercraft, including up to 15% for auxiliary equipment. (This limit is reduced to 5% for auxiliary equipment for personal watercraft.)

Watercraft liability ($100,000 limit with optional higher limits available) Medical payments ($1,000 limit with optional higher limits available) Uninsured boaters coverage ($100,000 limit with optional higher limits available) Coverage for personal property ($1,000 limit; $50 ded.) Excess liability coverage (for the operation of an unowned boat) Salvage Charges/Wreck Removal covered to the hull limit of liability. Accidental Fuel Spill Coverage for the policy’s liability limit, or $800,000, whichever is

less. Commercial Towing coverage with a $500 base limit.

Watercraft liability is excluded under this endorsement if coverage is automatically provided under the policy contract. Rule K-3: Eligible Watercraft Types Bass Boat Bass boats have low, sleek profiles and are built to fish with two or three anglers on board. Tournament style boats are more than 18-feet long with 150 to 250 horsepower. For casual angling and buddy tournaments, aluminum boats from 16 to 18 feet with horsepower from 25 to 150 are more common. Livewells to keep the catch alive are mandatory, as is an electric trolling motor on the bow (front of boat).

All Purpose Fishing Boats This type of boat tends to have higher freeboard (sit higher in the water) than bass boats because they spend more time in rough water in pursuit of walleye, musky and pike. Livewells, rod lockers, a bow or transom trolling motor and outboard power are the rule.




Bowriders These are the most popular boats in the runabout/sportboat category, thanks to the spacious seating in their open bow (front) area. Sterndrive power is the norm, but outboard engines are becoming increasingly popular for power.

Center Console These open fishing boats are built to take rough offshore waters in pursuit of ocean fish. An aluminum and canvas t-top provides shade and rod storage. Gunnel rod holders, outriggers and other gear are common fittings onboard. Up to two main outboard motors are acceptable.

Runabouts & Closed Bow Runabouts (including Jet Boats & Ski Boats): This category includes boats up to 30’ in length and jet boats 20’ and over (for jet boats under 20’ in length, please refer to the Commerce Personal Watercraft Program Guidelines).

Cuddy Cabin Cuddies are nimble and maneuverable like a bowrider but a closed deck over the bow area allows a sleeping area with limited plumbing for toilet, sink and sometimes cooking. They are most often powered with sterndrive engines but outboard power is becoming popular. Boats with a length up to 28’ and a maximum speed of 60 MPH are eligible.

Cabin Cruiser These types of boats typically begin at 26’ in length. Their use is to cruise and provide overnight sleeping quarters combined with cooking and bathroom facilities. Lengths up to 50’ and maximum speed up to 50 MPH are generally acceptable.

Pontoon Boats These types of boats have two or three hulls made of either aluminum or fiberglass. Lengths up to 30’ with top speeds up to 40 MPH are generally acceptable. Use is restricted to inland waters.

Sailboats The principal source of propulsion must be sails. A small outboard or inboard motor for auxiliary power is acceptable. Mono hull and multi-hull are acceptable. A non-motorized dinghy is automatically covered under the policy for its Actual Cash Value (ACV). Motorized dinghy’s must be scheduled on the policy. Lengths up to 50’ are generally acceptable.

Canoes & Kayaks Non-powered watercraft with a minimum value of $1,000 and a maximum value of $10,000 are acceptable.

Well maintained watercraft up to 20 years old are generally acceptable. Watercrafts over 20 years old that are exceptionally maintained will be considered on an exception basis. Higher deductibles may apply for older watercraft. A Marine Survey or out of water photograph may be required. Please contact your Underwriter prior to binding any risk over 20 years old. Rule K-4: Ineligible Watercraft

Watercraft used for racing other than sailing regattas. Watercraft held for sale or consignment. Watercraft with engines modified from the original manufacturers specifications to

increase top speed. Homemade, kit or custom made boats. Boats used as a primary residence.




Sailboats used exclusively for racing. Boats made before 1992 with jet-drive propulsion. Boats, other than center console sport fishing boats, with more than one main outboard

engine. Center console sport fishing boats with more than two main outboard engines. Watercraft with a hired crew. Inflatable boats. Hovercraft. Air Boats. Wet Bikes. Performance and high performance boats. Steel hull boats. Amphibious watercraft.

Please refer to the Watercraft Guidelines for a list of Performance and High Performance Watercraft. Rule K-5: Miscellaneous Requirements

Driving Record No major moving violations in the past 5 years. The total number of minor incidents and at-fault accidents should not exceed two per

operator or three for all operators in the past three years.

Boating Experience Requirements 26’ and under: 1 year of ownership experience with similar boat. 27’ – 32’: 2 years of ownership experience with a similar type/length boat. 33’ – 40’: 3 years of ownership experience with a similar type/length boat. 40’ and above: 5 years of ownership experience with a similar type/length boat.

Rule K-6: Personal Watercraft

Introduction Commerce Personal Watercraft Coverage is available on all homeowner policy forms. The Personal Watercraft program guidelines are designed to assist you in evaluating risks. Sound personal watercraft underwriting requires judgment to be applied to each individual situation. Therefore, on occasion, a risk may be deemed unacceptable by your Underwriter even though it is not expressly prohibited in these guidelines.

Commerce Personal Watercraft (PWC) Program Guidelines The Commerce Watercraft Program offers the following features for eligible Personal Watercraft:

● Physical Damage coverage, up to $30,000, to the personal watercraft, including up to 15% for auxiliary equipment.

● Watercraft liability ($100,000 base limit with increased limits available). ● Medical Payments Coverage ($5,000 basic limit with higher limits available). ● Uninsured Boaters Coverage with a $100,000 limit. ● Coverage for Personal Property ($1,000 limit with a $50 deductible) ● Excess liability coverage for the operation of a non-owned personal watercraft.




● All losses settled on an “Actual Cash Value” basis. ● Salvage Charges/Wreck Removal Covered up to the hull limit of liability. ● Accidental Fuel Spill Coverage with up to an $800,000 limit of liability. ● Commercial Towing coverage with a $1,000 base limit.

Personal Watercraft Definition A personal watercraft is a watercraft with a passenger capacity from 1 to 4 persons, 16’ or under in length, that is designed to be operated by a person or persons sitting, standing or kneeling on the craft rather than within the confines of a hull. Propulsion comes from a jet pump located inside the watercraft.

Included in the definition of a personal watercraft are jet boats less than 20’ in length and up to 250 horsepower. These boats are powered by the same type of engine as the smaller personal watercraft and typically sit up to 6 people. A characteristic of the mini jet boat is that the hull is completely open. This means that there is no decking in front of the operator, only open seating areas. We consider these types of boats to be personal watercraft and are eligible only in our Personal Watercraft Program.

Any jet boat over 20’ and/or more than 250 horsepower will be placed in the Runabout category with inboard propulsion type. All watercraft must meet the eligibility guidelines of the program in which it is placed.

Personal Watercraft Use PWC’s must be used for pleasure use only with no commercial or rental usage. The PWC may not be modified in any way and may not be used for racing. Personal Watercraft equipped with stainless steel high performance impellers are ineligible for coverage.

Please refer to the Watercraft Program Guidelines for a complete list of approved manufacturers, acceptable coverage limits, and operator/driver information. Rule K-7: Category of Boat Factors Category Description Factor 1 Bass; Sport Fishing; Center Console 0.950 2 Cabin Cruiser; Cuddy Cabin 0.900 3 Pontoon 0.750 4 Runabout; Ski Boat 1.000 5 Sail Boat; Canoe/Kayak 0.925 6 Personal Watercraft 1.250

Base Rate: $210 (Note: Base Rate is approx. $10,000 limit.) Rule K-8: Increased Limits

Increase Liability and Medical Payments Coverage

Watercrafts not automatically covered under the policy are eligible for increased liability and medical payment limits.

The basic Watercraft program provides liability coverage in the amount of $100,000, uninsured boaters coverage in the amount of $100,000, and medical payments coverage in the amount of $1,000.

Higher limits may be purchased at the rates within the Rate Manual.




Rule K-9: Rating Factors

Please refer to the Rate Manual for Hull Increased Limits Factors.

For limits greater than $100,000, add a factor of 0.065 for each additional $1,000. Rule K-10: Deductible Factors

$500 is the standard Watercraft deductible. Additional deductibles are available as displayed in the Rate Manual. Rule K-11: Special Discounts

A variety of discounts are allowable under the Watercraft Program. Please refer to the Rate Manual for appropriate discounts.

The Watercraft Premium is also discounted by the Renewal Credit, if this credit applies. Rule K-12: Miscellaneous Coverages

Trailer Coverage Boat trailers are covered on an actual cash value basis, and are subject to a mandatory $100 deductible. The rate per $100 for boat trailers may be found in the Rate Manual..

Mariner Endorsement - Coverages/Limits and Rate The Mariner endorsement can be attached to each insured watercraft. Please refer to the Rate Manual for the annual flat fee.

The endorsement provides the following: • Hurricane Haul-out Coverage ($500 per occurrence, subject to $1,000 max. per policy

period) • Increased personal property limit ($2,500 limit; $50 ded.) • Increased uninsured boat coverage (by $100,000) • Towing and labor ($1,500 limit; $50 ded.)

Marina as Additional Insured Endorsement – CIC-2176

This endorsement modifies the policy by naming the marina as additional insured on the policy with respect to vicarious liability arising from the vessel insured under the Commerce Watercraft Endorsement CIC-918.

The endorsement may be made available free of charge.




Rule K-13: Rating Worksheet

WATERCRAFT RATING WORKSHEET - MA Hull Base Premium $210

Hull Limit $ (Increased Limit Factor from Table) x

Category Factor # x

Territory Factor Inland - 0.90; Coastal – 1.00 x

Deductible Factor $ x

Experience Factor # (Based on least experienced opr.) x

Trailered Factor Yes – 1.00; No – 1.05 x

Age Factor # x

Wood Factor Yes – 1.40; No – 1.00 x

A. Adjusted Hull Prem. =

B. Discount A x Discount % -

C. Hull Premium A – B =

Liability Limit $ Liability Premium +

Uninsured Boaters $ UB Limit +

Medical Payments $ Med Pay Limit +

D. Liability Premium =

E. Trailer Amount $ Trailer Premium +

F. Mariner End. Y/N Mariner Premium +

G. Watercraft Premium (C + D + E + F) =

Part L – In-Home Business Program

Rule L-1: In-Home Business Coverage Endorsement – CIC-1071

This endorsement is available on all policy forms and provides both property and liability coverage for a business operated by the insured from the residence premises. All requests for the In-Home Business Coverage Endorsement should be submitted on the In-Home Business Endorsement Application - CIC-1075. Below is a summary of the coverages provided:

Business use of Other Structures (Coverage B) permitted. Business Property on the residence premises equal to the Coverage C limit of liability. Business Property away from the residence premises: $5,000. Personal Property of Others. Increased limit on Money: $2,500 on-premises and $500 off-premises. Increased limit on Credit/Bank Transfer Cards, Forgery & Counterfeit Money: $2,500. Valuable Papers and Records: $2,500. Accounts Receivable: $5,000 on-premises and $2,500 off-premises.




Business Income for the actual loss sustained within 12 consecutive months after the date of direct physical loss or damage.

Extra Expense that occurs within 12 consecutive months after the date of loss or damage. Business Liability for bodily injury, property damage, personal injury, advertising injury

and medical payments equal to the policy’s Coverage E & F limits. (NOTE: This endorsement does not increase the Coverage C limit of liability.)

Underwriting Guidelines and a list of eligible business classes appear in the section In-Home Business Eligibility Guidelines.

If the business is located in the dwelling on the residence premises, the premium is based on the Homeowner Policy’s Coverage E limit of liability. Premiums may be found in the Rate Manual.

If the business is located in another structure, the premium is the sum of the rate charged above, and an Other Structure charge, which is based on the limit of coverage provided on the other structure. This charge per $1,000 of specific insurance on the structure may be found in the Rate Manual.

The In-Home Business Coverage Endorsement (CIC-1071) should not be written in conjunction with either the Permitted Incidental Occupancies (HO 04 42) or Business Pursuits (HO 24 71) endorsements for the same business.

Coverage may be extended to either of our Commerce Personal Umbrella Liability Endorsements. Please refer to the Personal Umbrella section of this manual for additional details.

The following Exclusions will apply to all policies that include In-Home Business Coverage: Products/Completed Operations Hazard Exclusion – CIC-2037 Personal and Advertising Injury Exclusion – CIC-2038 Services Furnished by Healthcare Providers Exclusion – CIC-2039

Rule L-2: Deletion of Aggregate Limits – CIC-1073 The aggregate limits of liability that apply under the In-Home Business Coverage Endorsement (CIC-1071), may be deleted. The charge for the Deletion of Aggregate Limits Endorsement (CIC-1073) may be found in the Rate Manual.

NOTE: This endorsement may only be added/deleted in conjunction with the addition/deletion of the CIC-1071. It may not be added or deleted in subsequent activity except upon renewal.




Appendix Towns Referencing Coastal Tables

Towns Referencing Coastal Northern Table 1

Sub-Territory Town D31 Berkley D32 Dighton D33 Freetown E00 Lynn E04 Salem E12 Beverly E13 Danvers E14 Gloucester E15 Ipswich E16 Marblehead E18 Newburyport E20 Peabody E21 Saugus E22 Swampscott E30 Essex E33 Hamilton E35 Manchester E38 Nahant E39 Newbury E40 Rockport E41 Rowley E42 Salisbury E43 Wenham I00 Cambridge I02 Everett I03 Malden I06 Somerville I19 Melrose K02 Chelsea K03 Revere K10 Winthrop K23 South Boston K24 Charlestown/East Boston W17 Jamaica Plain – District A W19 Dorchester – District A W20 Roxbury – District A W21 Boston Central – District A X17 Jamaica Plain – District B X19 Dorchester – District B X20 Roxbury – District B X21 Boston Central – District B Y17 Jamaica Plain – District C Y19 Dorchester – District C Y20 Roxbury – District C Y21 Boston Central – District C Z17 Jamaica Plain – Remainder Z19 Dorchester – Remainder




Z20 Roxbury – Remainder Z21 Boston Central – Remainder Towns Referencing Coastal Southern Table 2

Sub-Territory Town A21 Barnstable A50 Bourne A51 Chatham A52 Dennis A53 Chapaquiddick/Edgartown A54 Falmouth A55 Harwich A56 Nantucket A57 Oak Bluffs A58 Orleans A59 Provincetown A60 Sandwich A61 Tisbury A62 Yarmouth A80 Brewster A81 Aquinnah/Chilmark A82 Eastham A83 Gay Head A84 Gosnold A85 Mashpee A86 Truro A87 Wellfleet A88 West Tisbury B12 Hingham B14 Plymouth B16 Wareham B31 Duxbury B35 Hull B36 Kingston B38 Marion B39 Marshfield B40 Mattapoisett B41 Norwell B43 Rochester B44 Scituate D00 New Bedford D01 Fall River D11 Dartmouth D13 Fairhaven D30 Acushnet D36 Rehoboth D37 Seekonk D38 Somerset D39 Swansea D40 Westport J03 Quincy J10 Braintree J14 Milton J21 Weymouth J32 Cohasset




Coastal Rating Band Tables

Coastal Rating Band Factors are based on the following: - Coastal Zone; - Distance to Coast; - Construction Type; and - Year of Construction.

Coastal Zones are defined as follows:

- North Zone: Boston and North. - South Zone: South of Boston.

Please refer to the Rate Manual for appropriate factors.



Documents

THE COMMERCE INSURANCE COMPANY CITATION …...The Commerce and Citation Insurance Companies Page 7 (02/20) Massachusetts Homeowners Manual if the policy includes Pers. Prop. Replacement