AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY

1 AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY . UNDERWRITING MANUAL. TABLE OF CONTENTS. PAGE. I. INTRODUCTION 1. - Corporate Profile 1. - Phone Numbers and Address Information 1. II. BINDING REQUIREMENTS 2. III. NON BOUND APPLICATIONS 2. IV. REPLACEMENT COST 2. V. CONSTRUCTION DEFINITIONS 2-3. VI. UNACCEPTABLE RISKS 3-7. VII. PROTECTION CLASSES 9 & 10 7-8. VIII. RENTAL POLICIES 8. IX. IN HOME BUSINESS 8. X. POLICY COVERAGE LIMITS 9. XI. DEDUCTIBLES 10. XII. OPTIONAL COVERAGES / LIMITS 11-14. OTHER STRUCTURES 11.

2 PERSONAL PROPERTY 11. PERSONAL LIABILITY 11. MEDICAL PAYMENTS 11. LOSS ASSESSMENT 11. CONDO OWNERS: ADDITIONS & ALTERATION 11. FIRE DEPARTMENT COVERAGE 12. BUILDING ORDINANCE OR LAW COVERAGE 12. MOLD COVERAGE 12. SINKHOLE COVERAGE 12. BACK UP OF SEWER AND DRAIN 12. ANIMAL LIABILITY COVERAGE 12. GOLF CART COVERAGE 13. SCREENED ENCLOSURES AND SCREENED ROOMS 13. IDENTITY THEFT OR IDENTITY FRAUD 13-14. SCHEDULED PERSONAL PROPERTY 14. XIII. DISCOUNTS 15-21. WIND MITIGATION 15-19. BUILDING CODE EFFECTIVENESS GRADING 19-20.

3 55 YEARS OF AGE 20. FIRE RESISTIVE 20. PERSONAL PROPERTY EXCLUSION 20. WINDSTORM OR HAIL EXCLUSION 20. WATER DAMAGE EXCLUSION 21. LIMITED WATER DAMAGE 21. PROTECTIVE DEVICES (SPRINKLERS, ALARMS ) 21. GATED COMMUNITY 21. NEW HOME 21. XIV. SURCHARGES 21-22. XV. CANCELLATIONS 23. XVI. RENEWALS / NON RENEWALS 24. XVII. ENDORSEMENTS 24. XVIII. POLICY PERIOD 24-25. XIX. PAYMENTS 25. XX. FEES 25. XXI. MISCELLANEOUS 25. AI 03 201012 FL Homeowner Manual -i- AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY . XXII.

4 WIND MITIGATION CREDIT WORKSHEET 26. XXIII. INDEX 27-28. AI 03 201012 FL Homeowner Manual - ii - AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY . I. INTRODUCTION. Important Phone Numbers and Address Information Main Phone Number Claims: Option 1. Billing: Option 2. Customer Service: Option 3. Marketing/Software Support: Option 4. Claim Reporting Hot Line: Software Help Desk: Fax Numbers: - Administration/Marketing - Underwriting (Including Endorsements). - Claims - Billing Agency Supplies: Marketing Reps: Address: PAYMENTS: AI 03 201005 FL Homeowner Manual -1- AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY .

5 II. BINDING REQUIREMENTS. 1. The dwelling must not be located in a restricted area or zip code, or conflict with AVATAR 's general rules and under writing guidelines. 2. Proof of continuous prior Homeowners coverage must accompany the application. Risks with lapses in coverage cannot be bound without prior underwriting approval. Exception may be made for first time home buyers. 3. The risk must be insured for 100% of the replacement cost, be well kept, and meet the requirements listed on the following pages.

6 4. Applications must be complete, signed by the applicant, and the premium collected by the agent, unless a new purchase. If a new purchase, the closing agent may collect premium and forward to COMPANY within 10 days. Incomplete applications are unacceptable. Flat cancellations are not allowed unless the insured fails to close on the new purchase. 5. The dwelling must be one family and owner occupied. 6. Dwellings for sale, under renovation or under construction are not eligible. 7. Two photos are required for any dwelling with a replacement cost less than $150,000.

7 8. The named insured must be an individual or an individual and resident spouse to be eligible. 9. Policies listing any insured with a prior criminal conviction are not eligible. III. NON BOUND APPLICATIONS. When submitting a non bound application: 1. Accept no money, and do not have the applicant sign the application. 2. Policy will be bound only when accepted by AVATAR . IV. REPLACEMENT COST. 1. Use the AVATAR replacement cost software to determine exact replacement cost. The policy must be written for Full Replacement Cost.

8 Use ISO's 360 Value found in our rating system. 2. Please assure rating information drawn automatically from the county PROPERTY appraiser's websites is accurate. In-ground pools and spas must be added to the valuation in the Additional Features . section. 3. AVATAR is not required to provide coverage in excess of replacement cost to meet or satisfy mortgage lenders or mortgage loan requirements. (Refer to and Rule ). V. CONSTRUCTION DEFINITIONS. Frame Exterior wall of wood or other combustible construction, including wood ironclad, stucco on wood or plaster on combustible supports.

9 Frame dwellings must be built in 2002 or newer (and conform to FBC 2001) to be eligible for coverage. See the following page for acceptability requirements for frame homes built prior to 2001. AI 03 201005 FL Homeowner Manual -2- AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY . Masonry Veneer Exterior walls of combustible construction veneered with brick or stone. Masonry Veneer is rated as Frame. Masonry Exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum, block, hollow concrete block, stone, tile or similar materials.

10 Mixed Masonry/Frame A combination of both frame and masonry construction is classified as frame when the exterior walls of frame construction (including gables) exceed of the total exterior wall area. Fire Resistive Exterior walls of masonry or reinforced concrete with floors and roof of brick or tile arches, reinforced concrete, poured or precast concrete slabs or similar types of fire resistive or noncombustible supports. The floor slab must be on non combustible supports. Roof Shape Hip Roof having sloping ends and sloping sides down to the eaves line.