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Meramec Valley Mutual Insurance Company Underwriting Manual Edition 05.01.13

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Main Contact Information Office Hours—Monday – Friday 8am to 4pm

Mail: Post Office Box 438, Hillsboro, MO 63050 Physical Location 535 Elm, Hillsboro, MO 63050

Billing—General Information Chris Little

(636) 789-3806—Local (888)-428-9180 (Toll-Free) (636) 789-3820 (Local Fax)

(877) 354-3806 –eFax [email protected]

Billing—General Information

Becky Wynn (636) 789-3806—Local

(888)-428-9180 (Toll-Free) (636) 789-3820 (Local Fax) [email protected]

Management, IT, Investments, Marketing Marty Wynn

(636) 789-3806—Local (888)-428-9180 (Toll-Free) (636) 789-3820 (Local Fax)

(877) 353-7399 –eFax [email protected]

Underwriting Tina Jansen

(636) 789-3812—Local (866) 533-6789 (Toll-Free) (636) 789-3820 (Local Fax)

[email protected]

Licensing, Accounting, Claims Administration Kay Hayes

[email protected] (636) 789-3813—Local

(877) 800-3813 (Toll-Free) (636) 789-3820 (Local Fax)

(636) 678-2449 –Kay’s (eFax)

Underwriting Sandi Henry

(636) 789-3812—Local (866) 533-6789 (Toll-Free)

(877) 663-9147—eFax (636) 789-3820

[email protected]

Claims—Inspections Brent Sterling

(636) 789-3813 (877) 800-3813

(877) 354-4947 – eFax (636) 789-3820—Local Fax

[email protected]

For after-hours and weekend

Claims Reporting Only

mailto:[email protected]


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Table of Contents

Rule 1.1 Additional Named Insured

Rule 1.2 Additions to Mobile Homes

Rule 1.3 Address Changes

Rule 1.4 Adjusted Base Rate

Rule 1.5 Age Of Dwelling Restrictions

Rule 1.6 Apartment Buildings

Rule 1.7 Applications

Rule 1.8 ATV’s, Motorcycles, Rec Vehicles

Rule 1.9 Back Dating

Rule 1.10 Binder Restrictions

Rule 1.11 Builder’s Risk

Rule 1.12 Business Occupancies Never Allowed

Rule 1.13 Changes, Endorsements, Cancellations

Rule 1.14 Coverage Forms

Rule 1.15 Discounts and Surcharges

Rule 1.16 Daycare

Rule 1.17 Declined Applications

Rule 1.18 Deductibles

Rule 1.19 Definitions

Rule 1.20 Deleting an Insured

Rule 1.21 Dogs and Vicious Animals

Rule 1.22 Duplex Dwellings

Rule 1.23 EarthQuake

Rule 1.24 Electrical Wiring / Service

Rule 1.25 Farm Buildings and Personal Property

Rule 1.26 Fire Protection

Rule 1.27 Flood Protection

Rule 1.28 Foundations

Rule 1.29 Grace Periods

Rule 1.30 Heating

Rule 1.31 Home Cost Estimators

Rule 1.32 Inflation Guard

Rule 1.33 Inspection of Property

Rule 1.34 Insurance Score Surcharge

Rule 1.35 Insurance to Value

Rule 1.36 Late Payments

Rule 1.37 Liability and Identity Theft Expense Coverage

Rule 1.38 Limit of Risk / Binding Limits

Rule 1.39 Minimum Annual Premium/Assessment

Rule 1.40 Mobile Home Considerations

Rule 1.41 Modular / Mobile Homes

Rule 1.42 More than one HomeOwners Policy

Rule 1.43 New Home Discounts

Rule 1.44 Other Structures – Related Private Structures

Rule 1.45 Payment Options

Rule 1.46 Personal Property

Rule 1.47 Photograph Requirements

Rule 1.48 Policy Fee

Rule 1.49 Pre-Existing Damage

Rule 1.50 Preferred HomeOwners Additional Rules

Rule 1.51 Previous Insurance Requirements

Rule 1.52 Protected Property Plan

Rule 1.53 Quadplex Dwellings

Rule 1.54 Rebuilding Clause

Rule 1.55 Recreational Vehicles

Rule 1.56 Reinstatement

Rule 1.57 Rejection by Underwriting

Rule 1.58 Renewal Notices

Rule 1.59 Replacement Cost

Rule 1.60 Roof Coverings

Rule 1.61 Seasonal / Secondary Dwellings

Rule 1.62 Senior Discount

Rule 1.63 Sewer BackUp Coverage

Rule 1.64 Siding

Rule 1.65 Submersible Pumps

Rule 1.66 Swimming Pools

Rule 1.67 Theft Coverage on Dwelling Fire policies

Rule 1.68 Trampolines

Rule 1.69 Transfer of Policies

Rule 1.70 Trial Applications

Rule 1.71 Utilities Required

Rule 1.72 Valuation - Minimum Insured Values

Rule 1.73 Vandalism

Rule 1.74 Wood Stoves and Furnaces


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Rule 1.1 Additional Named Insured

Rule 1.1.1 Cohabitation and/or Co-Ownership

When two persons

who are not related by marriage, reside together,

and both names appear on the deed to the

property, add the additional person on using the

Broad Form coverage of liability, or

co-own a home and only one individual occupies

the home you must add the additional person on

as an additional insured on a Limited basis.

Rule 1.1.2 Partnerships and Corporations

You must list each person desiring coverage and charge the

appropriate premium. For positive identification of the

individuals involved, the underwriter requires personal

information on each person including at least

1. Full Legal Name, and

2. Home Address, and

3. their interest in the home

4. their Social Security Number and Date of Birth

Rule 1.1.3 Tenant Occupied Dwellings

Add on Additional Insureds as LIMITED Coverage when using

the GL600 form.

Rule 1.1.4 Other Situations

For any other situations, please call the underwriter.

Rule 1.2 Additions to Mobile Homes If the mobile home has a framed addition, the addition must

complement the entire mobile home and be built to local

building codes. The addition can be as large as, but not larger

than, the original mobile home.

Rule 1.3 Address Changes Occasionally, a billing will come back as non-deliverable on a

Home Owners policy. It is necessary for a Home Owners to be

owner occupied so the Company’s procedure is to notify the

agent and set the policy up to cancel. The agent then has the

opportunity to contact the insured and offer another of our

policies if they qualify.

Rule 1.4 Adjusted Base Rate The Adjusted Base Rate is the Base Rate LESS the Deductible

Discount (if any).

Rule 1.5 Age of Dwelling Restrictions When considering the Age of Dwelling, we consider the year the

main structure was initially built, not when it was updated or

remodeled.

Rule 1.5.1 – SafeGuard, Mobile Home Package

There is no specific maximum age for these policies, although

home should be in good condition and show signs of pride of

ownership.

Rule 1.5.2 – Standard Home and HomeGuard

The maximum age of the home for these types of policies is 40

years old. This specifically means when the main part of the

structure was built. The date when additions to the home were

completed do not change the overall age of the home/dwelling.

Rule 1.5.3 – Preferred HomeOwners

The maximum age of the home for this type of policy is 15 years

old. Updates and rehabs do not alter this rule. This specifically

means when the main part of the structure was built. The date

when additions to the home were completed do not change the

overall age of the home/dwelling.

Rule 1.5.4 – HomeGuard SELECT

This rule is obsolete.

Rule 1.6 Apartment Buildings MVMIC does not insure Apartment Buildings. MVMIC only

insures single family homes and duplexes. Liability coverage is

only available on single family homes and duplexes. Triplexes

and Quadplexes do not qualify for any program with MVMIC

Rule 1.7 Applications Meramec Valley accepts applications from properly licensed

and approved agents of MVMIC through the website at its

secure website — no others. The MVMIC agent may not

wholesale MVMIC policies to other agents.

1. MVMIC requires that the agent fill out the on-line

application recording the answers from the insured after

asking all the questions on the application screen and

recording the insured’s exact responses. The Company

does not allow the agent to mail applications to the

applicant for signature. This could be a potentially large

E&O exposure for the agent.

2. The agent must visually inspect the property before

binding coverage on the application.

3. Signatures are required on:

A. All new applications

B. All changes that delete or reduce coverage

C. All cancellations

4. The agent/agency must retain a copy of each item signed

by an insured and be able to produce it upon demand of the

Company.

Rule 1.8 ATVs, Motorcycles, and other Recreational Vehicles

Rule 1.8.1 Property Damage – Policy language specifically

excludes coverage for property damage.

Rule 1.8.2 Liability – You may add off-premises coverage for

certain recreational vehicles at a specific charge added to

Liability. This liability coverage is extremely limited. It does not

offer coverage for uninsured/Underinsured Motorist or physical

damage to the ATV. MVMIC strongly recommends seeking

other more appropriate and comprehensive coverages designed

for this type of risk.

Rule 1.9 Back Dating The agent cannot backdate coverage for any reason.

Rule 1.10 Binder Restrictions Unless allowed for in the rules of a specific application, the

minimum standards for binding shall be as follows.


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Rule 1.10.1 Minimum Insurance Score Allowed for Binding


Rule 1.10.2 Claims and Financial History HOME GUARD

policies


Rule 1.10.3 Regarding Claims and Financial History for all

other policies

1. No more than one (1) homeowner/property loss in the

past three years. This loss cannot be a Total-Loss Fire.

2. If it is a Total Loss Fire, it cannot have happened in the

past five (5) years.

3. If it is a Vandalism Claim, it cannot have happened in

the past twelve (12) months

4. If it is a Fire Claim, it cannot have happened in the past

twelve (12) months

5. If it is a Theft Claim, it cannot have happened in the past

twelve (12) months

6. No liability claims in the past five (5) years

Rule 1.10.4 Regarding Unacceptable Character

Those who are not eligible for coverage from Meramec Valley

Mutual Insurance Company

1. Alcoholics, drug addicts, or narcotic addicts

2. Persons engaged in illicit business of any kind or whose

morals or lack thereof are such as to lead to the falsifying

of a claim

3. Persons mentally incapable of making sound judgments

as they, by law, cannot enter into enforceable contracts.

4. Persons whose habits or living conditions show lack of

responsibility or respect for the property or rights of others

Rule 1.10.5 Regarding Unacceptable Property

1.No property, which has a business occupancy listed under

the heading, “Business Occupancies Not Allowed”

2. No shell homes or spec/speculative homes. Speculative

here defined as a home built by anyone without a clear

buyer. The builder speculating that they can sell it once

they’re finished building it.

3.No dwellings converted from a mobile home(s) to a

dwelling that appears to be site-built

4.Homemade doublewides are not acceptable. Two or

more singlewide mobile homes conjoined in any way.

5. Vacant or Unoccupied Buildings are unacceptable.

6. Pools must be made inaccessible to small children to

prevent accidental drowning. Under no circumstances are

slides or diving boards allowed on any policy with

liability coverage.

7. Property located in a subscription fire district must have

a current fire tag at the time of application and keep the tag

renewed each year thereafter.

8. Property that is inaccessible to fire protection year

around is not eligible. This means properties that have

excessively narrow driveways, rutted driveways, dangerous

or excessively narrow bridges, deteriorating or dangerous

low-water bridges.

9. Property is unacceptable which suffers from lack of

maintenance or poor housekeeping: chipped or peeling

paint, rotting soffit/fascia boards, loose or missing siding or

underpinning, broken, curled, or missing shingles, loose

gutters, open cracks in foundation, debris or excessive

personal property scattered in the yard, etc.

10. No property that is poorly or improperly constructed:

homemade repairs on electrical or plumbing which put the

home at risk, improper building materials used for

unintended purposes, homes that have been

slowly/gradually constructed from a mobile home into a

standard-looking home, etc.

11. Property with derelict vehicles and their parts, or

construction or other business related materials/vehicles

scattered in the yard, etc.

12. No property/insured with vicious or aggressive animals

such as, but not limited to Pit Bulls, Dobermans,

Rottweilers, German Shepherds, Chows, or any dog that is

mixed with these particular breeds. If the animal cannot be

approached by anyone without being charged or threatened,

that animal is not acceptable. This applies regardless of

whether the animal is in the home, running free, or

tied/chained in the yard, or fenced.

Rule 1.11 Builder’s Risk Rule 1.11.1 The purchase of the Builder’s Risk Endorsement

including Builder’s Risk Theft is REQUIRED on New

Construction but NOT on minor (typically a value of less than

10% of the total building amount) Rehab Projects. The agent

should insure the structure for the completed value of the

structure.

Any home remodeled extensively (increasing the value of

the property by more than 10%) or new home being built

must have a Builder’s Risk Endorsement included on the

policy. This endorsement limits the Company’s claim

responsibility to the actual amount spent at the time of the

loss instead of the amount insured for in the event of a total

loss. The charge for this endorsement is listed in the rate

pages and includes $2,000 Builder’s Risk Theft Coverage

(which may be increased at an additional cost).

Rule 1.11.2 New Home Built by Contractor Other than

Insured/Applicant

A new home may be written on a Standard or Preferred

Home Owners policy if:

· The home is being built primarily by a licensed

general contractor other than the insured, and

· The home will be completed and occupied within six

months or less.

Rule 1.11.3 New Home Built by Insured/Applicant

The home must be written on a SafeGuard policy if:

· The home is being built primarily by the insured

acting as the general contractor, or

· If the home is not going to be completed and

occupied within 6 months, or

· The insured is rehabbing an older structure.

Once the new home construction is completed, the

SafeGuard policy may be cancelled pro-rata and a Standard

or Preferred Home Owners written on the policy. (This

does not apply to rehabs if the home is more than the

allowable age for the replacement cost policies). If the

home is not completed within 12 months of inception of the

policy, it will be non-renewed.

Rule 1.11.4 Rehab Policies

This Policy Type is no longer offered.

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Rule 1.12 Business Occupancies NEVER Allowed

The following is a listing of activities that would not be subject

to coverage under any policy containing liability coverage and

cannot be bound by the agent:

Archery Range

Auctioneers

Bulldozing

Custom Butchering

Custom Spraying

Dance Studios

Dog Kennels

Dog Grooming

Day Care Services 4+ children

Exercise Classes

Fishing for a Charge

Fruit Orchards open to Public

Golf Driving Ranges

Hayrides

Hoof Trimming

Horse Boarding/Racing Stables/Breeding

Horse Shoeing

Hunting for a Charge

Livery

Livestock Dealers

Machinery Repair/including Welding

Machinery Rental

Manufacturing of any type

Miniature Golf Course

Picnic Grounds

Rental or Riding of Horses

Rock Quarries

Sawmills

Seed Corn Processing

Skeet or Trap Shooting

Snow Removal/ Government

Swimming for a Charge

Tanning Salon

Tennis/Handball/Shuffleboard Courts

Tree Trimming

Taxidermy

Any business involving toxic chemicals or potentially

dangerous machinery.

Rule 1.13 Changes, Endorsements, and Cancellations

Rule 1.13.1 Timeliness of Submissions

The agency must send changes and endorsements within

three (3) working days of the effective date or binder

date—whichever is later.

Rule 1.13.2 Signatures Required

The insured must sign the form anytime coverage is deleted

or reduced in any manner.

Rule 1.13.3 Divorce

At times, due to divorce, an insured needs to be deleted

from the policy. We need proper documentation in order to

delete an Insured from a policy. Proper documentation

includes:

A Divorce Decree that clearly shows the

disposition of the property.

A Quit Claim Deed

A change endorsement signed and dated by the

insured wishing to be taken off the policy.

Rule 1.13.4 After a Total Loss

After a total loss, it is the responsibility of the insured to

request a cancellation of the policy.

However, MVMIC reserves the right, by policy language,

to cancel the policy at any time, with proper notice, any

property with an ‘increase in hazard’. That increase in

hazard typically includes a fire scene.

Rule 1.13.5 Cancellations / Deletions of Coverage

Requests for cancellations or deletions of coverage will be

routinely processed back 30 days. Requests for cancellation

beyond 30 days will require documentation in the form of a

bill of sale or copy of a declarations page showing coverage

by another company. Under no circumstances will the

Company process a cancellation beyond the most recent

renewal of the policy (up to one year).

When we cancel a policy or delete a coverage creating a

refund, the refund will be sent back to the insured.

Refunds will be sent to the insured.

Rule 1.14 Coverage Forms Main coverage forms for policies offered by MVMIC are

as follows

Dwelling Fire Basic FL1 and Broad FL502

SafeGuard Broad Form FL502

Mobile Home Package Seasonal Occupied is Basic

FL1

Tenant Occupied is Broad

FL502

Owner Occupied is Special

FL3

Standard Home Form 2 and Form 3 available

HomeGuard Form 3

Preferred Home and

HomeGuard Select

Form 5

Coverage forms for various endorsements are listed on

the REFERENCES tab of the rating web site at


Rule 1.15 Discounts and Surcharges Rule 1.15.1 Claim Free Discount

All MVMIC policies may earn the Claims Free Discount.

The Claim Free Discount follows the property, not the

insured. Insureds with multiple policies earn Claim Free

Discounts on each property they insure with MVMIC. They

also lose Claim Free Discounts on individual properties

when claims reach two claims within a 36-month period. It

applies when the particular property insured is 36 or more

months claim free before the inception/renewal date.

Rule 1.15.2 Claim Surcharge



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All MVMIC policies are subject to the Claim Surcharge.

MVMIC will apply a claims surcharge of 30% to any

policy that has two claims submitted (based on the date of

loss) in the thirty-six month period before the renewal of

the policy. MVMIC will add this surcharge at the next

renewal of the policy once the policy reaches two claims.

MVMIC will remove the surcharge once the policy has

gone claim free for three years claims (based on the date of

loss).

Rule 1.15.3 Mobile Home Discounts

Previous Insurance / Transfer Credit

This credit/discount is available to applicants who move

their insurance to Meramec Valley Mutual from another

company without any lapse of coverage. If the applicant is

purchasing the home and applying to Meramec Valley

Mutual as their carrier, then they qualify for this credit.

Agent must supply a copy of the previous carrier’s

declaration page at the time of application to qualify for

this credit/discount. Failure to supply declarations page at

the time of application will result in permanent loss of

discount.

Non-Smoker

On Owner Occupied Residences ONLY, if ALL residents

of the home are non-smokers then they qualify for this

credit/discount.

Working Fire Extinguisher

If there is at least one WORKING fire extinguisher (less

than 3 years old) in the home, they qualify for this

credit/discount.

Working Smoke Alarm

If there are at least two WORKING smoke alarms in the

home, they qualify for this credit/discount.

Dead Bolt

If there is a dead bolt, either single or double, on all

exterior doors, then the applicant will qualify for this

credit/discount.

3 Years Claim Free

If the applicants have been claim free on other property

insurance for the most recent three years then they may

qualify for this credit/discount.

Multi-Policy

If the applicant has another policy with Meramec Valley

Mutual they qualify for this credit/discount.

Double Wide

If the Mobile Home is a Double or Triple Wide, it will

qualify for this credit/discount. Please be aware though,

that Meramec Valley Mutual does not accept any home-

made double wides under any circumstances. Double

Wides get a discount of 5% of the Adjusted Base

Assessment.

·Home Made Double Wides constructed by the

insured of two single wides are NOT allowed.

·Triple Wides manufactured that way from the factory

get the Double Wide Discount

Rule 1.15.4 Insurance Score Discounts and Surcharges

With the use of the web-based rating system, this section is

now obsolete.

Rule 1.15.5 Loyalty Discount

A Loyalty Discount may be earned on all MVMIC policies

with the exception of the HomeGuard and HomeGuard

SELECT policies.

The discount is earned at a rate of 1% per year up to a

maximum of 10% beginning after 3 years in force. So, a

policy that has been in force four years has earned a

discount of 4%, five years earns 5%, etcetera.

Rule 1.16 Daycare Policy forms specifically exclude coverage for business

activities. This exclusion includes day care or baby-sitting of

any type under the liability portion of the policy. Coverage for

some daycares of 4 or less children (excluding the insured’s

children) may be added at the appropriate assessment. The

agent should not write any coverage for an insured that operates

a day care in excess of four (4) children/adults.

Rule 1.17 Declined Applications Applications that the Company rejects will be canceled in

accordance with the language of the policy. Whenever MVMIC

cancels a policy, written notice is sent to the insured.

The reasons for any cancellation, whether on New Business, at

Renewal, or anytime, can be found in the Britecore policy

management system. Those reasons are one or more of the

following:

Underwriting

Property Condition

Loss History

Agent Request

Underwriting - Inspection

Underwriting - Builders Risk

Claim Frequency

Claim Experience

Claim Severity

Underwriting

Underwriting

Agency N.L.R. Meramec

Lack of Underwriting Info

IMPORTANT

The agent is not to refer the applicant to the Home Office.

MVMIC will not divulge specific information regarding their

cancellation.

Rule 1.18 Deductibles All MVMIC policies will be issued with a $1,000 standard

deductible unless otherwise stated on the application. MVMIC

does not split deductibles on a policy. $500, $1,000, $2,000, and $2,500

Rule 1.19 Definitions Doublewide Mobile Home – A doublewide mobile home is a

mobile home that was manufactured in two or more pieces,


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delivered, and set up as one structure. Singlewide mobile homes

with additions will not be considered doublewide mobile homes.

Duplex, Triplex, Quadplex – The only multiple-family

dwelling MVMIC will insure is a duplex. Triplexes,

Quadplexes, and Apartment Buildings are not insured by

MVMIC.

Insured Premises -- Insured Premises are defined by the policy.

See the specific policy form for a complete definition.

Insured – An Insured is defined by the policy. See the specific

policy form for a complete definition.

Motorized Vehicle – a self-propelled land or amphibious

vehicle regardless of method of surface contact. It does not

include vehicles that are designed and used to assist the

handicapped and are not required to be licensed for road use.

Mobile Home – a mobile home is a house trailer serving as a

permanent home, hooked up to all necessary utilities, and is at

least twelve (12) foot in width by fifty-five (55) foot in length.

Fifth-wheel trailers and smaller trailers are not eligible for

coverage with any MVMIC policy.

Modular Home – usually synonymous with doublewides, a true

modular home is delivered in pieces that were manufactured

away from the site and are assembled on the homeowner’s

property. Typically, modular homes will not have the

characteristic steel I-beams underneath the home, once it is set

up.

Multi-Family Dwellings – MVMIC offers coverage to only

Single Family Dwellings and Duplexes. Triplexes, Quadplexes,

and Apartment Buildings are not eligible.

Owner Occupied - a home is considered owner occupied when

one or more of the persons listed on the deed of the property

take up full time residence as is evidenced by where they receive

their mail or where they list their residence for tax purposes.

Owner occupied homes cannot rent, lease, or board-out any part

of the residence. The homeowner must live at this residence for

the majority of the year.

Related Private Structures – Other Structures, or Related

Private Structures for the purposes of our policies, are those

structures 1) located on the insured’s property that 2) are not

attached to the residence and which 3) are not used for any

business purpose including farming. Typically, only private

garages and small well houses or sheds are considered under the

Related Private Structures portion of the coverages. Barns and

other farming structures, whether or not they are actively used in

farming, are not considered to be covered unless added on

separately and an assessment charged.

Personal Property- property is considered to be personal

property according to the language of the policy. Specifically,

automobiles and their related parts, motorcycles, all-terrain-

vehicles and other motorized vehicles are not covered under

personal property. MVMIC strongly suggests the agents

thoroughly familiarize him or herself with what is and is not

covered under the terms and conditions of the policy.

Rental/Tenant Occupied – a home is rental/tenant occupied

when the owner/deed holder of the property does not live on the

property and instead allows others to live there on a full-time

basis. Homes rented by the day or by the week are not eligible

for coverage with any MVMIC policy. The home must be

rented on a monthly basis, preferably with a year contract.

Money does not have to exchange hands in order for the

property to be rental. Homes rented by parents to children for

no charge are rental/tenant occupancies.

Seasonal/Secondary Occupied- not to be confused with vacant

structures, a home is seasonal or secondary when occupied by

the owners/deed holders at least 3 out of 12 months per year.

Seasonal structures are typically located along rivers, lakes, and

other recreational areas. Typically a home is not seasonal if in

town or located on the same property as the owner-occupied,

primary home.

On all New Business with an effective date of January 1, 2013

and later, Meramec Valley Mutual Insurance Company will only

accept seasonal dwellings for those who live in and are legal

residents of the State of Missouri, or live within 50 miles of the

seasonal property, or who use the services of a Property

Management company at the effective date and provide proper

documentation of agreement with initial application.

Spec Home- A home built for the purpose of reselling/profit.

Unoccupied Dwellings – a home is unoccupied when it is not

occupied but has contents typical to the occupancy of a dwelling

inhabited by humans (stove, refrigerator, bedroom furniture,

living room furniture, etc).

Vacant Dwellings – a home is vacant when it is not being

occupied and is empty of contents.

Rule 1.20 Deleting an Insured To delete an insured we must have the signature of the insured

being deleted or a copy of the Quit Claim Deed or similar legal

document in order to take them off the policy. The insured may

use a divorce decree or similar documentation to prove no

further insurable interest.

Rule 1.21 Dangerous or Vicious Dogs and Other Animals

Risks with large/vicious/agressive dogs such as, but not limited

to

Pit Bull or American Staffordshire Terrier

Rottweilers,

Doberman Pinschers


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German Shepherds

Chows or Chow Chows…

Other breeds that are considered potentially dangerous and/or

aggressive are Dalmatians, Huskies, Alaskan Malamutes, Presa

Canarios, and Boxers.

Exotic animals such as, but not limited to Rhea Birds, Ostriches,

Chimpanzees, Bears, etc. cannot be offered Liability coverage

regardless of whether the animal is caged, chained, or kept

inside the dwelling. The agent may offer a SafeGuard Policy

without Liability.

Rule 1.22 Duplex Dwellings MVMIC insures duplexes only on Dwelling Fire and SafeGuard

policies. MVMIC never insures dwellings with more than two

families such as Triplexes, Quadplexes, or Apartment Buildings.

Rule 1.23 Earth Quake When Earth Quake Coverage is purchased, it must be purchased

on all applicable property.

SPECIAL NOTE: On the Standard and Preferred HomeOwners

policy that can be written with Farm Property and Buildings, it

is necessary to add all of Coverage A, any additional Coverage

B and C as well as all of Coverages E and F to arrive at the total

amount for Earthquake Coverage.

Earthquake Zone 2 – The Missouri Counties of:

Bollinger, Butler, Cape Girardeau, Dunklin, Mississippi, New

Madrid, Pemiscot, Scott, Stoddard


Carter, Iron, Madison, Perry, Reynolds, Ripley, Ste. Genevieve,

St. Francois, Wayne


Andrew, Atchison, Audrain, Bates, Boone, Buchanan, Caldwell,

Callaway, Cass, Clay, Clinton, Crawford, Daviess, DeKalb,

Dent, Franklin, Gasconade, Gentry, Henry, Holt, Howell,

Jackson, Jefferson, Johnson, Lafayette, Lincoln, Maries,

Monroe, Montgomery, Nodaway, Oregon, Osage, Phelps, Pike,

Platte, Pulaski, Ralls, Ray, Shannon, St Charles, St Louis

County, St Louis City, Texas, Warren, Washington, Worth

Earthquake Zone 5 – The Balance of the State not specifically listed

in the other zones above.

Rule 1.24 Electrical Wiring / Service Rule 1.24.1 Fuses not allowed

MVMIC does not offer coverage on dwellings with fuses.

Rule 1.24.2 Condition of wiring and service

The dwelling must have a minimum of one circuit per room with

the exception of the kitchen, which should have at least two

circuits. The electrical service should be of sufficient amperage

to handle the normal load of the dwelling. Typically, a

minimum of 100 amps for dwellings with a non-electric

furnace and 200 amps are needed for dwellings with

electrical furnaces or other high amperage appliances.

Rule 1.24.3 Knob and Tube Wiring

Meramec Valley Mutual Insurance Company will never accept

under any circumstances a dwelling that has any knob and tube

wiring. An indicator that there might be knob and tube wiring in

an older home is if the home still has plaster walls.

Rule 1.25 Farm Building and Farm Personal Property Rules

Rule 1.25.1 Farm Building Rules

1. All Farm Buildings and Structures will be subject to the

Rebuilding Clause which reads “When the total amount of loss

to the covered building described above exceeds $2,500, “we”

pay only 50% of the amount of the adjusted loss on that

building. The remaining 50% of the adjusted loss will be paid if

the building is repaired or replaced with a new permanent

building.”

2. Any farm building insured must be used in the farming

operation.

3. The building must be structurally sound and maintained in a

usable condition.

4. All systems (i.e. heating, venting, and electrical) which are

contained in the buildings or structures must meet the

appropriate accepted NFPA standards, State law or Meramec

Valley Mutual standards.


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5. No solid fuel heating device of any type allowed in farm

buildings unless properly installed and UL listed and approved

prior to submission.

6. General housekeeping must be satisfactory.

Rule 1.25.2 Farm Personal Property Rules

1. Must insure 100% of units of a specific property and insure to

a minimum of 100% of the actual cash value.

2. Amounts insured under hay, straw, silage, farm produce,

grain, seeds, and feeds must represent maximum amounts on

hand (peak values) at any one time of production.

3. If an amount is indicated for specified machinery, the

machine or equipment will be fully described by

1. make,

2. model, and

3. serial number.

Rule 1.26 Fire Protection MVMIC requires adequate fire protection on everything it

insures. This means that the property to be insured

must not be more than 10 miles from its responding fire

department

must be accessible, year-round, to fire equipment, and

must maintain a current/paid fire tag subscription if

required.

OVER 5 ROAD MILES FROM PRIMARY

RESPONDING FIRE DEPARTMENT TO FRONT DOOR

OF INSURED DWELLING IS ALWAYS A CLASS 10.

Rule 1.27 Flood Protection Flood Insurance is NOT available from MVMIC.

Rule 1.28 Foundation Rule 1.28.1 Dwelling Fire

Under the Dwelling Fire program there are four different rating

categories. Class One and Class Two specifically disallow Pier

Foundations. Class Three and Class Four allow the structure to

be built partially or fully on pier foundations.

Natural Stone foundations are not acceptable.

Rule 1.28.2 SafeGuard

The dwelling must have a continuous masonry foundation under

all exterior walls of the living area of the dwelling. Piers are not

accepted.


Rule 1.28.3 Standard and Preferred Homeowners



accepted. Foundations constructed from natural stone/rocks are

not eligible for coverage under the Standard Home or Preferred

Home policies. Dwellings with skirting are not acceptable.


Rule 1.28.4 HomeGuard and HomeGuard SELECT

This policy type no longer offered.



accepted. Foundations constructed from natural stone/rocks are

not eligible for coverage under the Standard Home or Preferred

Home policies. Dwellings with skirting are not acceptable.

Rule 1.28.5 Mobile Home Package

Continuous foundations or piers are acceptable. The mobile

home must be tied down and skirted/underpinned.

Rule 1.29 Grace Period THERE IS NO GRACE PERIOD ON ANY MVMIC POLICY. Renewals and all installment billings are prepared and mailed at

least 30 days in advance and are due by the date specified on the

bill. If the payment is not received on or before that date the

policy lapses with NO coverage in force except as is provided to

the Mortgagee only (for 10 days).

For information on Reinstatement of a lapsed policy, please

refer RULE 1.56

Rule 1.30 Heating

Rule 1.30.1 Dwelling Fire

Under the Dwelling Fire program, there are four different rating

categories. Class One and Class Two specifically require Central

Heating and can have wood heat as a supplemental form of heat.

Class Three and Class Four allow Central or Space Heating and

may have wood heat as a supplemental form of heat.

Rule 1.30.2 SafeGuard

SafeGuard policies must have Central or Permanently

Installed Space Heating and only have wood heat as a

supplemental form of heating.

Space heating in this context does NOT mean space

electric space heaters that plug into a wall socket.

Kerosene space heaters are NEVER allowed in any

home that MVMIC insures.

See the Space Heating Supplement for more information

Rule 1.30.3 Standard and Preferred Homeowners

The dwelling must have a permanently installed central heating

system with thermostatic control in good working condition.

The heating unit must be less than 30 years of age. If the

primary heating source is NOT a conventional electric, natural

or propane gas or oil furnace using a ductwork or hot water

piping system, a supplemental heating questionnaire must be

completed and attached to the application. A wood stove or

furnace is acceptable only if properly installed and only if used

as a supplemental heating device.

Rule 1.30.4 HomeGuard and HomeGuard SELECT



The heating unit must be less than 30 years of age. If the

primary heating source is NOT a conventional electric, natural

or propane gas or oil furnace using a ductwork or hot water

piping system, a supplemental heating questionnaire must be

completed and attached to the application. The HomeGuard and

HomeGuard SELECT specifically disallow coverage for homes

with any form of solid fuel heating.




Mobile Homes may not have any sort of wood heat or solid fuel

heating of any type unless it is a fireplace originally installed by

the manufacturer.

Rule 1.31 Home Cost Estimator Rule 1.31.1 When Required

MVMIC requires a Home Cost Estimator from

http://www.e2value.com to be filled out on every application

submitted.

http://www.e2value.com/


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Rule 1.31.2 What Estimators are accepted

MVMIC may accept other nationally recognized Home Cost

Estimators from the agent as long as the agent has received prior

written approval.

Rule 1.32 Inflation Guard The Company automatically adjusts the Dwelling, Other

Structure, Personal Property, and Additional Living Expense

amounts of a Standard Home Owners and Preferred Home

Owners polices by 2% each year. The HOME GUARD face

amount inflates at a rate of 4% per year. The Company retains

the right to not offer this coverage if it deems necessary. The

applicant/insured may NOT opt-out of Inflation Guard.

Rule 1.33 Inspection of Property Policy language on all policies permits reasonable inspection of

property by the Company. If the insured does not allow the

Company to perform a reasonable inspection, the Company

reserves the right to cancel the policy.

Applicants/properties with locked gates must allow full

inspection of property at the request of the Company.

Rule 1.34 Insurance Score Surcharge See rules and printed schedule of surcharges in rule 1.15

Rule 1.35 Insurance to Value Usage of the e2Value system on the quoting system has

rendered these rules obsolete.

Rule 1.36 Late Payments If the agent/agency accepts a payment that is either late or

within three days of the due date, the agent should notify the

Home Office as soon as practical. This helps avoid mailing out

lapse notices and cancellations.

Rule 1.37 Liability Rule 1.37.1 Liability Limits

The Limits available are:

1. $100,000

2. $300,000

3. $500,000

4. $1,000,000

Rule 1.37.2 Liability Types

The three main types of Liability Coverages are:

Personal/Homeowner Liability for risks up to 40

acres with NO farm exposure on the premises.

Country Home Liability

This coverage type no longer available effective

January 1, 2013.

Farm Liability for risks with 40 acres or more, or

risks with a farming operation.

GL-600 – Premises Only

Rule 1.37.3 Medical Payments Coverage

There are three different types of Med Payments coverage

available.

1. First is the standard Medical Payments coverage available

to the Public. This is standard on Personal AND Farm

coverages.

2. The second type of Medical Payments coverage is Medical

Payments for Farm Employees. As the name implies, this

coverage is only available on Farm Liability policies.

3. Finally, Medical Payments for Named Persons coverage is

available on Farm Liability Policies. As this name implies,

you must name the specific person (age 70 or less) that is to

be insured. This type (Named Med Pay) has a $100

deductible.

Limits for both types are:

1. $1,000 (standard)

2. $2,000

3. $5,000

4. $10,000

Rule 1.37.4 Identity Theft Coverage

Coverage for $15,000 of Identity Theft Recovery

Protection may be purchased on any policy that provides

Liability Coverage (excluding the GL600, Rental Premises

and Seasonal Liability Coverage)

Rule 1.37.5 Optional Coverages Available

Additional Insured – Broad

This coverage extends coverage to an additional insured when

there is an unmarried couple, brother/sister, parent’s children, or

such combination insuring a property, provided they have no

other broad liability coverage with another carrier.

Additional Insured – Limited

This is used specifically when there are additional insureds that

are on the deed but live at another premises. They want to make

sure their liability exposure is covered on this specific insured

premise.

Regarding LLC Insureds on GL-600 Premises Only Liability

Policies: Put the LLC on as the Insured and include the others as

Additional Insured Limited (GL-70). This only works with a

Premises Only GL600 Liability Policy.

Employee Occupational Liability

Limited Liability coverage may be extended for certain classes

of employee/insureds. See rating sheet for complete list and

rates.

Home Day Care Endorsement

Home day care coverage may be provided only if:

1. The home day care service is regularly provided by an insured

person

2. The insured person is compensated for providing the home

day care service to any one child

3. The home day care service is primarily conducted on the

residence premises

4. The number of children or adults, other than children of an

insured person, receiving home day care service does not exceed

four at any time.

Incidental Agricultural Activity

This is an endorsement added to a Personal Liability policy to

extend coverage in a limited form to small Farm/Agriculture

risks. The levels of coverage offered are:

1. 0-10 acres (with or without livestock)

2. 11-40 acres (No livestock)

3. 11-40 acres (With livestock)


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Personal Injury Endorsement

This coverage is available to extend coverage on either the

Personal or Farm Liability policy for Personal Injury.

Rental Home Extensions

Coverage may be bound by the agent for up to two rental homes.

Seasonal Home Extension

Liability coverage may be extended to a Seasonal Residence.

Select Recreational Vehicle

Liability coverage may be extended for the following vehicles:

1. Snowmobiles, ATV’s & Golf Carts (Note: MVMIC does

NOT provide Property coverage for ATV’s)

2. Outboard Boats over 50 horsepower and under 125

horsepower

3. Inboard/Outboard Boats under 40 Miles Per Hour

capabilities

Rule 1.37.6 Unacceptable Liability Risks

1. Any insured who has more than two property OR liability

claims within the past 36 months.

2. Any insured who has had a dog bite claim in the past 5 years

3. Any insured who has a mean or vicious dog, specifically:

a. Dobermans

b. Pit Bulls – American Terriers

c. Rottweilers

d. Chows

e. Shepherds

f. Mastiffs

g. Or any other dog with a history of violent or

erratic behavior or exhibits aggressive or violent

behavior.

4. Any insured whose overall premises housekeeping is poor

5. Any insured who you could not recommend or who has a

poor character reference

6. Any insured engaged in custom farming if the gross receipts

exceed $75,000 or any insured engaged in custom feeding if the

gross receipts exceed $150,000 in the prior calendar year.

7. Any insured engaged in a business activity where the gross

receipts exceed 25% of their total income or $20,000 whichever

is less. Also any insured who is engaged in a prohibited activity

as specifically indicated under the business activities section.

8. Under Named Persons Medical coverage individuals with

medical histories involving bad backs, hernias and lung diseases.

9. Any rental property which does not have functioning smoke

detectors installed.

Rule 1.38 Limit of Risk / Binding Limit MVMIC limits the size of risks it insures. The limits below are

the maximum new business amounts.

Dwelling

Fire Policy

SafeGuard TenantGuard (Contents

only)

Standard HomeOwner

Preferred HomeOwner

$30,000 Min

$150,000 Max

$30,000 Min

$200,000 Max

$10,000 Min $100,000

Max

$75,000 Min $225,000 Max

$125,000 Min $225,000 Max

Rule 1.39 Minimum Annual Premium / Assessment

No longer applicable.

Rule 1.40 Mobile Home Considerations Rule 1.40.1 Minimum Size of Mobile Home Allowed

Small mobile homes less than 12 ft wide or less that 55 long are

not allowed in the Mobile Home Package Program. No Travel

Trailers are allowed in this or any other policy of insurance with

Meramec Valley Mutual.

Rule 1.40.2 Skirting/Underpinning and Tie Downs

Skirting/Underpinning and Tie Downs are required.

Rule 1.40.3 Unacceptable Mobile Home Conditions

Mobile Homes that are in poor repair, have extensive hail

damage, missing or improperly installed skirting/underpinning,

proper steps to all exterior doors, or any evidence showing a

lack of pride of ownership.

Rule 1.41 Modular / Mobile Homes These types of mobile homes are acceptable for coverage under

a Standard HomeOwners Policy Form 2 or 3, based on the

following criteria. The home must:

A. Be permanently installed on a weight bearing masonry

foundation of concrete or concrete blocks/bricks that are on

all exterior walls under the living area of the home.

B. NOT be installed on piers of any type.

C. NOT have skirting on any section of the home

D. Be of a model year that is 10 years old or less at the

original effective date.

E. Have a composition shingle gable roof.

Manufactured Homes of these types may not be written under

the Form 5 Preferred Policy or on the HomeGuard or

HomeGuard SELECT.

The effective date for this type of policy is the closing date of

the property/dwelling.

Rule 1.42 More Than One HomeOwners Policy

MVMIC will allow an insured to maintain more than one owner

occupied Home Owners for a period not to exceed sixty days.

The policy will be canceled at sixty days and may be re-written

on a Dwelling Fire policy provided it qualifies. Vacant

dwellings do not qualify at this time under any MVMIC policy.

MVMIC will allow two HomeOwners policies for insureds that

are building another home and have the Builder’s Risk policy

with MVMIC.

Rule 1.43 New Home Discounts New home discounts are available to dwellings under the

Standard Home Owners and Preferred Home Owners plan

and the HomeGuard and HomeGuard SELECT plan

New Home Discount on HomeGuard and

SELECT policies

0 to 2 years 15% of the ABR






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New Home Discount on Standard and

Preferred HomeOwners



11 to 15

years

10% of the ABR

16 to 20

years

7% of the ABR

21 to 25

years

5% of the ABR

*The ABR is the Adjusted Base Rate. This is the Base rate taken from the tables of

rates for these particular policies less (if any) Deductible Discounts.

Rule 1.44 Other Structures – Related Private Structures – Automatic Amounts

Some policies give an automatic 10% coverage for Other

Structures or Related Private Structures and others do not.

· Dwelling Fire – Non-Mobile Home/Non-Farm 10%

· Dwelling Fire – Mobile Home Dwelling 0%

· Dwelling Fire – Farm 0%

· SafeGuard – Owner and Tenant occupied 10%

· Mobile Home Package Policy 10%

· TenantGuard (Contents only) 0%

· Standard and Preferred Home Owners 10%

· HOME GUARD & HOME GUARD SELECT 10%

Rule 1.45 Payment Options Rule 1.45.1 Payment Required

IMPORTANT: Payment must accompany all

applications. If the applicant submits a check and at a later

date we receive a check from the mortgagee (thereby

doubling payment), we will return the check to mortgagee

if policy is insured billed and reimburse the insured if it is

mortgagee billed.

Rule 1.45.2 Payment Frequency

Annual – No additional Payment Fee for this option

Semi-Annual – There is a $7.50 installment fee per

payment for any semi-annual payment option for a total of

$15 per year.

Quarterly - – There is a $7.50 installment fee per payment

for any quarterly payment option for a total of $30 per year.

.

NOTE: Escrow billing to mortgagee/loan companies

MUST be selected at the Annual Amount. We will not bill

a mortgagee for any other payment option than Annual.

The only exception is if the mortgagee is an individual.

They may opt to pay Semi-Annually or Quarterly.

Rule 1.45.3 Payment Types

New Business – MVMIC accepts checks, money orders,

Visa, Master Card, Discover, and eChecks for payment of

new business

Renewals – MVMIC accepts checks, money orders, Visa,

Master Card, Discover, and eChecks for payment of

renewals.

Rule 1.46 Personal Property Rule 1.46.1 Dwelling Fire Policies

200% of Coverage A is the maximum the agent should

bind. For higher amounts, contact the Home Office.

Rule 1.46.2 SafeGuard Policies

An amount of 50% of the Dwelling amount is automatic on

Owner occupied dwellings. Coverage may be increased to

100% of the dwelling amount for a charge.

No coverage is automatic on the Tenant Occupied

Dwellings.

Up to $5,000 maximum can be purchased for the owner’s

personal property in tenant occupied dwellings to cover

appliances.

Rule 1.47 Photograph Requirements Rule 1.47.1 Dwelling Requirements

The agent will provide at least: Two clear color

photographs of dwellings insured showing all sides must

accompany the application. We must also have at least

one photo of each Related Private Structure (Coverage B)

and each Farm structure to be insured.

Rule 1.47.2 Mobile Home Requirements

The requirements for mobile homes are the same as all

other policies.

Rule 1.47.3 Electronic Photos

The agent may provide digital photos by attaching them to

the electronic application or change endorsement page,

email or disk using the JPEG format and the photos sized at

least 4 inches by 6 inches. The photos may not be

retouched in any manner.

Photos of Farm Equipment valued over $500 are required.

Rule 1.48 Policy Fee All policies written with MVMIC will have an Annual

Policy Fee on the first and all subsequent policy years.

Rule 1.49 Pre-existing Damage The agent may not bind coverage on property that has pre-

existing, un-repaired damage without the expressed written

consent of MVMIC underwriting.

Rule 1.50 Preferred HomeOwners Additional Rules

In addition to those rules under the Standard Home Owners

policy, the Preferred Home Owners must also qualify under

the following rules.

1. The dwelling must have been built within 15 years prior

to inception of the policy

2. It must be an owner-occupied primary residence

3. Fire protection must be a class 9 or better

4. The dwelling must be insured to 100% of the

replacement cost

5. The dwelling must have a minimum replacement value

of $125,000

6. There must be smoke detectors on each floor.

7. The dwelling cannot be modular, mobile or a log home

8. There must be no solid fuel heating devices of any kind

on the premises other than a standard fireplace or a


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properly installed outdoor wood furnace (UL approved

installed no less than 15 foot from the home).

9. Up to two mortgagees are allowed.

10. At least one of the applicants must have had the same

employer or in the same line of work for the past two years.

11. The dwelling must be within sight of at least three other

occupied dwellings (year-round)

Rule 1.51 Previous Insurance Requirements MVMIC requires previous insurance with no lapse of

coverage of more than 60 days prior to the new effective

date on all property insured. The only exception is for first-

time buyers and those who have had nothing to insure.

Rule 1.52 Protected Property Plan On all MVMIC policies except HomeGuard and

HomeGuard SELECT, the property may receive a lower

ISO fire rating if it meets certain criteria.

· If a property is located more than 5 miles from its primary

responding fire department it is rated as a class 10. There is

no way to reduce the ISO class of this property.

· If a property outside city limits is located less than 5 road

miles from its primary responding fire department and is

within sight of three other occupied homes it may receive

the ‘in town’ ISO fire rate. If it is NOT within sight of three

other occupied homes, it must be rated as an ISO class 9.

This Protected Property Plan does not apply to the HOME

GUARD and HOME GUARD SELECT policies. HOME

GUARD and HOME GUARD SELECT policies must use

the actual ISO Class Code for the property.

Rule 1.53 Quadplex Dwellings MVMIC does not insure Triplex, Quadplex, or Apartment

Buildings.

Rule 1.54 Rebuilding Clause on Farm Buildings and Dwellings

All Farm Buildings and Structures will be subject to the

Rebuilding Clause which reads “When the total amount of

loss to the covered building described above exceeds

$2,500, “we” pay only 50% of the amount of the adjusted

loss on that building. The remaining 50% of the adjusted

loss will be paid if the building is repaired or replaced with

a new permanent building.”

Rule 1.55 Recreational Vehicles See rule 1.6

Rule 1.56 Reinstatement Policy There is NO GRACE PERIOD for any policy issued by

MVMIC. A policy may be reinstated up to but no more than 30

days after the original due date of the payment.

Rule 1.56.1 Within 10 days of due date

The insured may reinstate the policy without lapse in coverage

by paying the full amount due within 10 days of the due date.

The mortgagee may also reinstate up to 10 days after the due

date and thereby reinstate back to the effective date. After this

date, the mortgagee can reinstate with the same rules that apply

to the insured as specified above.

Rule 1.56.2 After 10 days of due date

By paying the full amount due, the policy will be reinstated

1. at 12:01 am the day following receipt in our office

of the payment OR

2. at 12:01 am the day following the postmark on the

envelope if paid by mail.

Rule 1.56.3 Number of reinstatements allowed

MVMIC no longer specifies a certain number of reinstatements

allowed.

Rule 1.56.4 Reinstatement Fee

A policy that is reinstated after the initial 10-day lapse period

and up to thirty (30) days after the bill date will be assessed a

$35 reinstatement fee. This fee must be paid before the policy

will be reinstated.

Rule 1.57 Rejection of Policy by Underwriting

If at the time an application is submitted or at any renewal where

the Company decides not to accept/renew a policy, the only

reason given will be “Does not meet underwriting guidelines”.

MVMIC will not state to the insured or to the agent the exact

reasons for the rejection/termination. If credit was one of the

deciding factors in the declination, a letter informing the insured

of their right to receive a free credit report from the issuing

credit agency will accompany the cancellation.

Rule 1.58 Renewal Notices MVMIC sends a renewal notice approximately 35 days in

advance of the due date to the insured at the address as listed on

the policy declaration page. MVMIC is NOT responsible for

any wrong addresses supplied by the insured or agent.

If MVMIC does not receive payment by the date the payment is

due, coverage lapses and a notice is mailed to the address on the

policy declarations page. A copy is also sent to the agent and

mortgagee/lien holders. From that point, the reinstatement rules

apply.

Rule 1.59 Replacement Cost Rule 1.59.1 When an Estimator is required

MVMIC requires a Home Cost Estimator to be completed for

every new piece of business and every increase which increases

the value of the dwelling by more than 10%.

Rule 1.59.2 Acceptable Estimators

Use of the automated rating system has rendered this rule

obsolete.

Rule 1.59.3 Dwelling Fire Policy Replacement Cost Rules

Coverage temporarily unavailable.

Rule 1.59.4 Mobile Home Dwelling Replacement Cost

The applicant may elect at the time of original application to add

the Replacement Cost Option onto the Mobile Home. The

Mobile Home must be 15 models years old or LESS at the

original inception date of the policy.

Rule 1.59.5 Farm Personal Property and Buildings

MVMIC always insures Farm Personal Property and Buildings

at Actual Cash Value. There is no option at this time to add

Replacement Cost Coverage.


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Rule 1.59.6 Dwelling Replacement Cost Coverage on

SafeGuard dwellings

Coverage temporarily not available.

Rule 1.60 Roof Coverings The roof must be in good to excellent condition and if it is

composition/tab shingle or rolled roofing, must have no

broken, curled, or missing shingles or sections. Metal roofs

with hail damage are not acceptable. The roof must be free

from damage, defect, and excessive wear and tear and

covered with:

Rules 1.60.1 Acceptable Coverings

· Heavy 24 gauge metal (not corrugated tin)

· Composition tab shingles not more than 15 years old

· Tile

· Corrugated tin is acceptable on Dwelling Fire dwellings,

and on outbuildings on any policy type.

Rules 1.60.2 Unacceptable Coverings

Wood Shakes/Shingles and Slate Roofs do NOT qualify for

coverage with MVMIC.

Rules 1.60.3 Flat Roof Considerations

Dwellings with flat roofs do NOT qualify for coverage

under a Form 2, 3 or Form 5

Rule 1.61 Seasonal and Secondary Dwellings

Rule 1.61.1 Seasonal Home definition

The owner must demonstrate that this is a seasonal dwelling in a

developed or recreational area. Lake homes and river homes are

the most common homes to be considered seasonal. Homes

inherited from relatives in town or on county roads and

situations of that type are just vacant / unoccupied homes and

therefore not eligible for coverage. On all New Business with an effective date of January 1, 2013

and later, Meramec Valley Mutual Insurance Company will only

accept seasonal dwellings for those who live in and are legal

residents of the State of Missouri, or live within 50 miles of the

seasonal property, or who use the services of a Property

Management company at the effective date and provide proper

documentation of agreement with initial application.

Rule 1.61.2 Supporting Coverage restriction

MVMIC requires supporting, owner-occupied dwelling

coverage in order to cover a seasonal/secondary dwelling.

Rule 1.61.3 Policies offering coverage for Seasonal or

Secondary Dwellings

MVMIC offers coverage for Seasonal / Secondary Dwellings

under the SafeGuard or Mobile Home Package only. Coverage

for Seasonal / Secondary Dwellings does not qualify for

coverage in any other program.

Rule 1.61.4 Vandalism coverage not available on Seasonal

Homes

MVMIC does not offer Vandalism Coverage to Seasonal

Homes.

Rule 1.62 Senior Discount All MVMIC policies EXCEPT HomeGuard and HomeGuard

SELECT now offer the Senior Discount. The policy qualifies for

a Senior Discount if at least one of the named insureds is 50

years old by the original effective date of the policy. If this

discount is added a later date, it must be added effective on the

next Annual Renewal Date. This must be initiated by an online

change/endorsement/request made by the agent. This is not an

automated change.

Rule 1.63 Sewer Backup Coverage Rule 1.63.1 Where Coverage Available

Water / Sewer Backup coverage is available on all MVMIC

policies.

Rule 1.63.2 When Coverage Automatic

A limited amount ($2,500) of coverage is automatically included

at no additional charge on Form 3 Standard Home Owners and

on the Form 5 Preferred Home Owners. This coverage is subject

to the deductible. This amount may be increased at an

additional charge. See the endorsement for specific details about

the coverage.

Rule 1.64 Siding The siding must be free from damage and defect and be

constructed of:

Masonry

Stone

Tile

Aluminum or Steel

Vinyl

LOG HOMES DO NOT QUALIFY

FOR COVERAGE ON ANY TYPE OF POLICY

WITH MERAMEC VALLEY MUTUAL.

Rule 1.65 Submersible Pumps Rule 1.65.1 Dwelling Fire Policies

In order to obtain coverage for submersible pumps on a dwelling

fire policy of any type it is necessary to specifically add that

coverage to the policy. Once added, Submersible Pumps are

covered at Actual Cash Value Settlement for the value of the

pump.

Rule 1.65.2 All Other Policies

Coverage for Submersible Pumps supplying water to the

Dwelling is automatic with all Standard Home Owners,

Preferred Home Owners, HOME GUARD and HOME GUARD

SELECT, SafeGuard, and Mobile Home Package policies.

Coverage for any Submersible Pump NOT supplying water to

the dwelling (for instance, to a barn) may be purchased using the

applicable Submersible Pump rate found in the Dwelling Fire

Rate Pages.

Rule 1.66 Swimming Pools Pools must be made inaccessible to small children to prevent

accidental drowning. Under no circumstances are slides or

diving boards allowed on any policy with liability coverage.

Rule 1.67 Theft Coverage on Dwelling Fire policies

When Theft Coverage is purchased on a Dwelling Fire policy, it

must be purchased on all applicable properties. Applicable


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properties include all Coverage C Personal Property and all of

Scheduled and Unscheduled Farm Personal Property.

Rule 1.68 Trampolines As of January 1, 2007, there are no restrictions regarding

the ownership or usage of trampolines on the insured

premises.

Rule 1.69 Transfer of Policies This is strictly prohibited under any circumstance(s). A new

application should be written once the original signing

applicants no longer have an insurable interest in the property.

This also includes those policies written T.O.D. and trusts.

Rule 1.70 Trial Applications

Anytime the automated rating system catches a problem with a

feature of a new application, it will require a Permission Code

before binding can be completed. The agent must speak with an

underwriter in order to get a Permission Code

Rule 1.71 Utilities Required All policies should maintain all necessary utilities.

Rule 1.72 Valuation - Minimum Insured Values

Rule 1.72.1 Dwelling Fire and SafeGuard

The Dwelling Fire or SafeGuard must be insured to at least 50%

of replacement cost and not more than 110% of the replacement

cost. Under no circumstance should the home be insured for

more than 110% of the current Real Estate Market Value

Rule 1.72.2 Standard HomeOwners and HomeGuard

The Standard Home Owner must be insured to at least 80% and

not more than 110% of the replacement cost. Under no

circumstance should the home be insured for more than 110% of

the current Real Estate Market Value.

Rule 1.72.3 Preferred HomeOwners and HomeGuard

SELECT

The Preferred Home Owner must be insured to 100% of value

and not more than 110%.


MVMIC uses the following chart to determine acceptable ranges

of coverages for Mobile Homes.

Rule 1.73 Vandalism Coverage for Vandalism must be specifically added on the

Dwelling Fire policy. It is activated by an optional line item

stating Vandalism coverage on the Declarations page.

Rule 1.74 Wood Stoves and Furnaces / Solid Fuel Heating Devices

Rule 1.74.1 Approved Installations

For immediate binding privileges on any policy that accepts

wood stoves, the unit must be UL approved and installed to

manufacturer’s specifications or NFPA minimum guidelines.

Rule 1.74.2 Disallowed Installations

MVMIC does not accept any solid-fuel heating device

operated

In a garage where vehicles are operated, or any

outbuilding where there is storage of gasoline, or

other flammable fuels.

In a Mobile or Modular Home written as a

Mobile Home Package Policy

In Tenant or Seasonal occupied dwellings

Rule 1.74.3 Chimneys & Flues

Chimneys must be

· Tile-lined

· Properly tuck pointed if masonry

· Free of broken bricks

· Must not be tied in with any gas burning appliance.

Rule 1.74.4 Outdoor Installations

Outdoor wood furnaces must be installed no closer than a

minimum of 15 feet from the residence unless the insured

can provide documentation from the manufacturer stating

otherwise.

Rule 1.74.5 Surcharges

A surcharge applies to any risk with solid-fuel heating

stoves. Indoor and outdoor wood Furnaces are not

surcharged.

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