MISSOURI

SECTION 35

HOMEOWNERS

OPTIONAL LIMITS AND COVERAGES
RULES MANUAL
 RULE 35.5B
  DATE: 04-15-2017

RULE 35.5B - LOSS ASSESSMENT COVERAGE FOR EARTHQUAKE (CO 04 36)

Applies to: Premier - YES*, Premier Plus - YES*, Premier Select - YES*,
Premier Condo - YES*, Premier Renters - NO

The policy may be endorsed to extend coverage to include loss assessments resulting from a loss by earthquake to a maximum limit of $25,000. The limit of coverage will be based on the insured's proportionate interest in the total value of all collectively owned buildings and structures of the corporation or association of property owners.

This endorsement is not available for Additional Locations.

Calculate the additional premium as follows:

NEW BUSINESS REQUIREMENTS
Effective May 15, 2010, the Loss Assessment Coverage for Earthquake endorsement will not be available in Zones 7, 8, 9 and 10.

Effective February 15, 2014, Loss Assessment Coverage for Earthquake endorsement will not be available for masonry homes built prior to 1950.

RENEWAL REQUIREMENTS
Effective February 15, 2014, Loss Assessment Coverage for Earthquake endorsement will not be available for renewals in Zones 7, 8, 9 and 10. Policies that currently have Loss Assessment Coverage for Earthquake 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, Loss Assessment Coverage for Earthquake endorsement will not be available for masonry homes built prior to 1950. Policies that currently have Loss Assessment Coverage for Earthquake for masonry homes built prior to 1950 will have the coverage removed at their first renewal on or after February 15, 2014.

1) Determine the appropriate Earthquake Zone from the Territories Section using the location of the insured structure.

2) Determine the rate per $1,000 of coverage for the appropriate Earthquake Zone:

Earthquake Zone
Factor
01
.15
02
.16
03
.24
04
.42
05
.63
06
1.02

3) Multiply the desired limit of coverage by the rate per $1,000 determined in Step 2 above.

4) Multiply the result obtained in Step 3 by the Construction/Year Built Factor as follows:

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

5) Multiply the result obtained in Step 4 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
Premier Renter & Premier Condo
All Construction Types
15%
15%
15%
15%
25%
25%
Premier, Premier Plus & Premier Select
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%
           

Endorsement CO 04 36 Loss Assessment Coverage for Earthquake will be attached to the policy.

* This endorsement may not be added unless Loss Assessment Coverage (CO 04 35) is attached to the policy.