Underwriting Guide - Security First Insurance Company

1 Underwriting GuideContact Security First InsuranceMailing Addresses:Standard Mail (Not Payments) Box 105651 Atlanta, GA Box 628336 Orlando, FL 32862-8336 FedEx & UPS Overnight PaymentsSecurity First InsuranceLockbox# 628336, 102 W. Pineloch Ave., Suite 18, Orlando, FL 32806-6100 Agency Administration:Phone: (877) 900-3974 option 2 then 4 Fax: (386) 673-5408 Underwriting & Customer Service:Phone: (877) 900-3974 Claims: Report a claim (24x7x365): (877) 581-4862 Claims customer care: (877)581-4862 option 2 Director of Agency Sales and Resources Jennifer Piecara, CIC, AAI, CPIW(386) PRODUCTSHO3(Homeowners)HO4 (Renters)HO6(Condo-Unit Owners)Age of Home (*Additional water coverage restrictions may apply.)No Age Limit(Water Excluded 41 & older, Limited Water Coverage may be available)No Age LimitNo Age Limit(Water Excluded 41 & older, Limited Water Coverage may be available)Coverage A Dwelling$200,000 - $1,000,000(higher min. in certain counties)N /A$30,000 - $300,000 (Unit Owners Special Coverage Included)Coverage B Other Structures2% -70% of Coverage AN /AN /ACoverage C Personal Property(Personal Property Replacement Cost Included)25%-75% of Coverage A(coverage can be excluded)$15,000-$100,000$20,000-$200,00 0 Coverage D Loss of Use10% of Coverage A20% of Coverage C40% of Coverage CCoverage E & F Personal Liability/Medical Payments$100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000$100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000$100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000 DEDUCTIBLESH urricane (% applies to Coverage A)$500, 2%, 5%, 10%$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000 All Other Perils$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000 Sinkhole (Optional Coverage)

2 10% of Coverage AN /A10% of Coverage C Easily add Flood and Water Backup Coverage to our HO3, DF3-DO and DF3-DL policies Provides greater protection than the NFIP and is individually priced to location and property type. Pricing as low as $10 a Flood and Water Backup * Please see Age of Home - Water Damage Coverage rules in the Underwriting Manuals on the Agent Portal for complete details. NEW PRODUCTDF3 DL (Dwelling Landlord)DF3 CL (Condo Landlord)DF3 DO (Dwelling Owner)DF3 CO (Condo Owner)DF1(Dwelling Basic)Age of Home (*Additional water coverage restrictions may apply.)No Age Limit(Water Excluded 31 & older, Limited Water Coverage may be available)No Age Limit(Water Excluded 31 & older, Limited Water Coverage may be available)No Age Limit(Water Excluded 31 & older, Limited Water Coverage may be available)No Age Limit(Water Excluded 31 & older, Limited Water Coverage may be available)No Age Limit(2010 or newer may be eligible for Limited Water Coverage)Coverage A Dwelling$125,000 - $1,000,000(higher min.)

3 In certain counties)$25,000 - $150,000 (higher limits can be submitted for review)$125,000 - $1,000,000(higher min. in certain counties)$25,000 - $150,000(higher limits can be submitted for review)$50,000-$500,000 Coverage B Other Structures1%-20% of Coverage AN /A1%-20% of Coverage AN /A0% - 20% of Coverage ACoverage C Personal Property$0-$250,000$15,000 - $200,000 (higher limits can be submitted for review) $0-$250,000$15,000 - $200,000 (higher limits can be submitted for review) 0% - 70% of Coverage ACoverage D Loss of Use0% - 10% of Coverage ACoverage D & E Fair Rental Value & Additional Living Expense10% of Coverage A10% of Coverage A10% of Coverage A10% of Coverage ACoverage L & M Premises Liability/Medical Payments $100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000 or excluded$100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000 or excluded$100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000 or excluded$100,000/$1,000, $200,000/$2,500, $300,000/$5,000, $500,000/$5,000 or excluded$100,000/$1,000, $200,000/$2,500, $300,000/$5,000or excludedDEDUCTIBLESH urricane % applies to Coverage A$500, 2%, 5%, 10%$500, 2%, 5%, 10%$500, 2%, 5%, 10%$500, 2%, 5%, 10%$500, 2%, 5%, 10%All Other Perils$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000$500, $1,000, $2,500, $5,000 Sinkhole (Optional Coverage)

4 10% of Coverage A10% of Coverage A10% of Coverage A10% of Coverage A10% of Coverage AOUR PRODUCTS Add Equipment Breakdown and Service Line coverage to polices for a flat low rate of $80 a year. Equipment breakdown coverage protects you from unexpected repair or replacement costs due to electrical, mechanical, or pressure systems breakdown. Service Line coverage protects the pipes that play a vital role in getting water to and from your Equipment Breakdown Coverage+ Service Line Coverage* Please see Age of Home - Water Damage Coverage rules in the Underwriting Manuals on the Agent Portal for complete details. 2020 Security First Insurance Company . All rights reserved. Additional rules and regulations may apply. Updated: June 19, RISKS CONDO & RENTER FORMSHO6DF3 CODF3 CLHO4 Unconventional construction (Mobile/Manufactured homes, Asbestos siding, Asbestos Roof, Wooden stilts, Log cabin, etc.)Purchased through foreclosure or short saleIn the name of a Corp., LLC, TrustLess than 500 square feet (heating/cooling space)Under contract for deed, in probate or in foreclosureBusiness exposure other than home daycare (Note.)

5 Certain Permitted Incidental Occupancies are allowed in DF3 CO & DF3 CL)Rental Exposure**Water heaters over 15 yearsNo permanent heat source or fireplace, wood burning stove or space heater as primary heat source No permanent A/C or HVAC without a float switchSingle strand aluminum wiring prior to 2004 Knob & tube wiring or fuses and/or stab-lok circuit breakersNo prior Insurance or lapse in coverage greater than 30 daysAny liability loss in 3 years, more than 1 fire, 1 water or 1 theft loss in 3 years (excluding act of God) and any fire, water or theft loss exceeding $10,000 in 3 years, any open claims, current or prior sinkhole activityAny liability loss in 3 years, more than 1 fire or theft in 3 years (excluding act of God), or any fire or theft loss exceeding $10,000, any open claims, current or prior sinkhole activityAny water loss in 3 yearsVacant/UnoccupiedWood shake/shingle roofCast iron, polybutylene or galvanized steel pipesVicious or exotic animals, Unprotected pool or spa, Porch or deck more than 2 ft off ground without handrails, Stairs with more than 3 steps without handrails or steps that are not structurally sound**Risks with these characteristics may be eligible in the DF3 CO or DF3 CL program without Liability coverage.

6 **Part time rental and owner occupancy permitted in HO6 Liability ExposuresRisks with trampolines, skateboard or bicycle ramps, treehouses, diving boards or pool slides are accepted in all of our programs. However, please note that our policy does not cover Bodily Injury, Property Damage Liability or Medical Payments Coverage when the injury or damage was caused by or resulted from the use of these Exceptions & Underwriting Assistance We strive to maintain a balance between good judgment, acceptable loss ratio, and applying the Company s philosophy that not every good risk fits in a certain box. We re willing to consider writing policies when one or more risk characteristics do not fit the guideline, when other characteristics indicate the risk is acceptable. Please enter all data in CARINA and contact your regional underwriter to request an exception. Conversely, a technically acceptable risk might not be allowable due to unusual or hazardous characteristics. Our regional underwriters are available to assist you and to answer your Guide View the full list of Ineligible Risks in the Underwriting Manuals on the Agent PortalINELIGIBLE RISKS SINGLE/MULTI-FAMILY FORMSHO3DF3 DODF3 DLDF1 Unconventional construction (Mobile/Manufactured homes, Asbestos siding, Asbestos Roof, Wooden stilts, Log cabin, etc.)

7 Mobile/Manufactured home on premisesMore than 2 apartment units (N/A townhouse/rowhouse)More than 4 apartment units (N/A townhouse/rowhouse)Less than 1,000 square feet (heating/cooling space)Less than 700 square feet (heating/cooling space) *Purchased through foreclosure or short saleIn the name of a Corporation, LLC, TrustUnder contract for deed, in probate or in foreclosureBusiness exposure other than home daycare (Note: Certain Permitted Incidental Occupancies are allowed in DF3 DO, DF3 DL & DF1)Rental ExposureWater heaters over 15 yearsSpace heater as primary heat sourceNo permanent heat source or fireplace or wood burning stove as primary heat sourceNo permanent A/C or HVAC without a float switchSingle strand aluminum wiring prior to 2004 Knob & tube wiring Stab-lock circuit breakersNo prior Insurance or lapse in coverage greater than 30 daysAny liability loss in 3 years, more than 1 fire, 1 water or 1 theft loss in 3 years (excluding act of God) and any fire, water or theft loss exceeding $10,000 in 3 years, any open claims, current or prior sinkhole activityMore than 1 fire loss or 1 fire loss greater than $10,000, 2 or more liability losses in 3 years, 3 or more property losses in 3 years (excluding act of God)

8 , any open claims, current or prior sinkhole activityMultiple dwellings on same parcelMore than 2 single family or 1 single family and 1 duplex on same parcelVacant/UnoccupiedWood shake/shingle roofs and roofs with more than 2 layersAsphalt/Composite shingle roof over 15 years and Metal/Tile roof over 40 yearsFlat roof other than concrete 10 years old or olderMarket value less than 75% of replacement costMarket value less than 50% of replacement costRisks not insured to 100% market value or purchase priceRisks insured for less than 100% replacement costVicious or exotic animals, Unprotected pool or spa, Porch or deck more than 2 ft off ground without handrails, Stairs with more than 3 steps without handrails or steps that are not structurally sound**Permanently affixed tiny homes may be eligible for DF1 with a minimum of 100 square feet.**Risks with these characteristics may be eligible in the DF3 or DF1 program without Liability Uniform WLM Form Verification Inspection (v.)

9 1/12) Wind exclusion form for risk written ex-wind Option to Exclude Contents (HO3) Risks over the age of 30 years require a 4 point inspection or home inspection dated within 60 days of the effective date must be submitted within 30 days of inception Documentation supporting proof of repair on prior, acceptable losses An acceptable mold remediation inspection and air quality analysis for Increased Fungi limits when there s a prior water loss Proof of existing flood coverage to waive 30 day waiting period Scheduled Personal Property (receipt, appraisal, photo, questionnaire) Option to Limit or Exclude Water Damage Coverage Payment is due 10 days from effective date. (Mortgagee will be billed automatically when Mortgage Bill is selected) Copy of prior policy cancellation or non-renewal notice Risks in Miami-Dade and Broward counties require proof of opening protection DF3 DO/DL risks over the age of 20 years old that have a flat roof are required to submit a 4 point or similar inspection to Underwriting prior to binding.

10 Flood Coverage Selection/Rejection FormOPTIONAL COVERAGESHO3HO4HO6DF3 DLDF3 CLDF3 DODF3 CODF1 Flood and Water BackupPersonal Injury LiabilityGolf Cart Physical Damage and LiabilityComputer CoverageHurricane Screened Enclosures & CarportWater Back-Up and Sump OverflowScheduled Personal PropertyCoverage C Increased Special LimitsIncreased Replacement Cost for DwellingSpecial Personal PropertyIdentity Theft Protection & MonitoringVandalism & Malicious Mischief Unit Owners Special Coverage CUnit Owners Rental to Others (part-time rental and owner occupancy)Dog LiabilityReplacement Cost Loss Settlement Equipment Breakdown Ordinance or LawPersonal Property TheftEquipment Breakdown and Service Line Submission RequirementsMust retain in agents file and be able to produce upon request: Signed completed Application Acceptable proof of new purchase or prior Insurance (HO3, HO6, DF3 DO, DL, CO, CL) Burglar/Fire alarm system verification Sprinkler system verificationAdditional documentation may be DocumentationDiscounts & Credits Secured Community Interior Sprinkler System Centrally Monitored Fire Alarm Centrally Monitored Burglar Alarm Senior/Retiree Age 55+ Roof Slope Age of Construction Windstorm Mitigation Hip Roof