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RULE 35.3H - EARTHQUAKE
COVERAGE (CO 04 54)
Applies
to: Premier - YES, Premier Plus - YES, Premier Select - YES,
Premier Condo - YES, Premier Renters - YES
The policy may be endorsed
to apply to losses due to earthquake. This endorsement applies to all
Section I - Property Coverages, except Coverage D - Loss of Use and the
Other Coverages, that exceed the earthquake deductible stated in this
endorsement, for the same limits provided in the policy.
NEW BUSINESS
REQUIREMENTS
Effective May 15, 2010,
Earthquake Coverage will not be available in Zones 7, 8, 9 and 10.
Effective
February 15, 2014, Earthquake Coverage will not be available for 4-sided
masonry homes built prior to 1950.
RENEWAL REQUIREMENTS
Effective February 15, 2014, Earthquake Coverage
will not be available for renewals in Zones 7, 8, 9 and 10. Policies that
currently have Earthquake Coverage in Zones 7, 8, 9 and 10 will have the
coverage removed at their first renewal on or after February 15, 2014.
Effective
February 15, 2014, Earthquake Coverage will not be available for 4-sided
masonry homes built prior to 1950. Policies that currently have Earthquake
Coverage for 4-sided masonry homes built prior to 1950 will have the coverage
removed at their first renewal on or after February 15, 2014.
The base deductible
is 20% and is applied separately to the limit of liability of Coverage
A-Dwelling, Coverage B-Other Structures and Coverge C-Personal Property.
Coverage C-Personal Property is limited to $10,000.
The total deductible amount will not be less than the
policy deductible. The deductible percentage may be increased for
a premium credit or decreased for a premium charge.
The additional premium
is calculated as follows:
1) Determine the appropriate
Earthquake Zone from the Territories Section.
2) Select the appropriate
rate table as follows:
A.
Premier Policy
|
Table
A
|
| |
Increased
Coverage C portion |
Table
B
|
| |
|
B.
Premier Plus Policy
|
Table
A
|
| |
Increased
Coverage C portion |
Table
B
|
| |
|
C.
Premier Select Policy
|
Table
A
|
| |
Increased
Coverage C portion |
Table
B
|
| |
|
| D.
Premier Condominium Owners Policy |
Table
A
|
| |
|
| E.
Premier Condominium Owners Policy |
|
| |
with
CO 17 31 Unit Owners - Coverage C |
|
| |
Special Coverage Endorsement |
Table
B
|
| |
|
| F.
Premier Renters Policy |
Table
B
|
| |
|
|
|
|
|
G. CO 04 40 Structures
Rented to Others -
|
|
| |
Residence Premises
Endorsement |
Table
A
|
| CO
04 42 Permitted Incidental Occupancies |
|
| |
Residence Premises
Endorsement |
Table
A
|
| CO
04 48 Other Structures - Increased |
|
| |
Limits Endorsement
|
Table
A
|
| CO
04 97 Home Day Care Coverage |
|
| |
Endorsement
|
Table
A
|
3) Select the rate per
$1,000 of coverage based on the Earthquake Zone as follows:
|
EARTHQUAKE
ZONE
|
TABLE
A
|
TABLE
B
|
|
|
01
|
0.22
|
0.15
|
|
|
02
|
0.23
|
0.21
|
|
|
03
|
0.37
|
0.31
|
|
|
04
|
0.64
|
0.33
|
|
|
05
|
0.95
|
0.41
|
|
|
06
|
1.54
|
0.62
|
|
|
|
|
|
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4) Multiply the rate
by the appropriate coverage amount for each of the following:
A. Coverage A limits for Premier Homeowners, Premier Plus Homeowners and
Premier Select Policies only.
B. Coverage C limits for Premier Condominium Owners and Premier Renters
Policies only.
C. The amount of insurance for increased limits for Coverage C for Premier
Homeowners, Premier Plus Homeowners and Premier Select Policies only.
D. The amount of insurance for the CO 04 48 Other Structures endorsement.
E. The amount of insurance for any other building coverage options.
5) Multiply the result
obtained in Step 4 by the Construction/Year Built Factor as follows:
If exterior masonry veneer is to be excluded on this endorsement,
rate as Frame. If exterior masonry veneer is to be included on
this endorsement, rate as Masonry.
|
Construction/Year Built Rate Factors
|
|
|
Year
Built
|
|
Construction
|
Pre-1940
|
1940-1991
|
Post-1991
|
|
Frame
|
1.15
|
1.05
|
1.00
|
|
Masonry
|
1.55
|
1.40
|
1.20
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6) Add the results
obtained in Step 5.
7) Multiply the result
obtained in Step 6 by the desired deductible factor as follows:
|
Deductible
%*
|
Factor
|
|
|
15%
|
1.14
|
|
|
20%
|
1.00
|
|
|
25%
|
.80
|
|
*Minimum
deductibles are as follows:
|
|
Zone
1
|
Zone
2
|
Zone
3
|
Zone
4
|
Zone
5
|
Zone
6
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|
Premier
Renter & Premier Condo
|
|
|
|
|
|
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All
Construction Types
|
15%
|
15%
|
15%
|
15%
|
25%
|
25%
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
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Premier,
Premier Plus & Premier Select
|
|
|
|
|
|
|
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4-sided
Masonry Veneer (Excluded)
|
15%
|
15%
|
15%
|
15%
|
25%
|
25%
|
|
4-sided
Masonry Veneer (Included)
|
15%
|
15%
|
25%
|
25%
|
25%
|
25%
|
|
Masonry
(Built 1950 or after)
|
15%
|
15%
|
25%
|
25%
|
25%
|
25%
|
All
Other Construction
Types |
15%
|
15%
|
15%
|
15%
|
25%
|
25%
|
|
|
|
|
|
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Endorsement CO 04 54
Earthquake will be attached to the policy.
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