Florida Office of Insurance Regulation...roofing contractor showing estimated age, condition and...

Florida Office of Insurance RegulationI-File Workflow System

Filing Number: 15-18489

Request Type: Stamped Only

650 California Street, 17th Floor San Francisco, California 94108

Tel +1 415 403-1333 Fax +1 415 403-1334

www.milliman.com

August 20, 2015 Florida Office of Insurance Regulation Mr. Kevin McCarty, Commissioner Bureau of Property & Casualty Forms/Rates 200 East Gaines Street Tallahassee, FL 32399-0330 RE: Weston Insurance Company

High-Value Homeowners Program Initial Rate Filing

Dear Mr. McCarty: The enclosed filing is being submitted by Milliman, Inc. on behalf of Weston Insurance Company. This filing is being submitted under Florida’s File-and-Use filing provision with an effective date of December 1, 2015 for new business. All required exhibits are attached. Please contact me at (415) 394-3742 if you would like to discuss this filing. Thank you for your assistance.

Sincerely,

Max H Mindel, FCAS, MAAA Principal and Consulting Actuary

Offices in Principal Cities Worldwide

FOR INFORMATIONAL PURPOSES ONLYDate Received: Date Of Action:8/20/2015 02/22/2016

FL OFFICE OF INSURANCE REGULATION

WESTON INSURANCE COMPANY WIND ONLY HOMEOWNERS High Value Voluntary Program

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TABLE OF CONTENTS

GENERAL INFORMATION PAGE NO General Information 3

RULE NO SECTION 1 – UNDERWRITING GUIDELINES PAGE NO 100 Eligibility 3 101 Uninsurable Properties

A. Commercial Properties B. Coverage Limits – Minimum C. Other Windstorm Insurance D. Replacement Cost/Market Value Ratio E. Condemned Properties F. Properties in Disrepair G. Properties with Existing Damage H. Multiple Mortgages I. Farms & Ranches J. Business Exposures K. Roof Conditions L. Roof Covering Age M. Homemade/Rebuilt Properties N. Non-Habitational Properties O. Material Misrepresentation, Insurance Fraud, or Arson P. Properties Constructed Over Water Q. Dwellings in the Course of Construction R. Risks with “DECLINE” Weston Score

3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5

RULE NO SECTION 2 – GENERAL RULES PAGE NO 200 Extent of Coverage

A. Homeowners (WIC FL HW2-HV) B. Special Coverage Notes

5 5 6

201 Limits of Liability 6 202 New Business Submission Procedures

A. Application B. Submission Procedures

1. General 2. Premium Payment 3. Required Documentation 4. Agent Inspection 5. Properties Requiring Additional Review Time 6. Hurricane or Tropical Storm Binding Suspension

6 6 6 6 7 7 8 9 9

203 Additional Underwriting Requirements A. Flood Insurance

B. Underlying Insurer

9 9 10

204 Policy Period 10 205 Rounding of Premiums, Minimum Premium, & Waiver of Premium 10 206 Policy Changes 10 207 Automatic Increase In Limits (WIC FL HW2-HV) 10 208 Transfers or Assignments 11 209 Inspections 11 210 Cancellations 11 211 Construction Definitions 12 212 Single Building Definition 12 213 Individual Risk Rating 12

APPROVEDDate Received: Date Of Action:8/20/2015 06/15/2016



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RULE NO SECTION 3 – INCREASED/DECREASED COVERAGE A LIMITS, YEAR BUILT, AND SIZE OF DWELLING FACTORS & BASE RATES TABLE

PAGE NO

300 A. Increased/Decreased Cov. A Limits Factors B. Year Built Factors C. Size of Dwelling Factors

13 14 14

301 Windstorm Base RatesTable 15

RULE NO SECTION 4 - DISCOUNTS AND SURCHARGES PAGE NO 400 Windstorm Deductibles 16 401 Policy Premium Credits 17 402 Building Code Effectiveness Grading Schedule (BCEGS) 17 403 Windstorm Mitigation Features 19 404 Policy Premium Surcharges

A. Seasonal Property Factor B. Rented to Others Factor C. Vacancy Factor D. No Prior Insurance Factor E. Mid-Term Changes

27 27 27 27 27 27

405 Mandatory Additional Charges 28

RULE NO SECTION 5 - OPTIONAL COVERAGES PAGE NO 500 Other Structures (Coverage B) 28 501 Personal Property (Coverage C)

A. Basic Limits B. Personal Property (Coverage C) Replacement Cost Coverage C. Optional Limits D. Mid-Term Increases

28 28 28 28 29

502 Loss of Use (Coverage D) 29 503 Business Property Basic and Increased Limits 29 504 Ordinance or Law Basic and Increased Limits 30 505 Loss Assessment Coverage 30 506 Limited Fungi, Wet or Dry Rot, Yeast or Bacteria (“Fungi”) Coverage 30 507 Screened Enclosure Coverage 31

RULE NO SECTION 6 – TERRITORY DEFINITIONS PAGE NO 600 Wind Only Residential Rating Territories and Definitions 32

RULE NO SECTION 7- Weston Score PAGE NO 700 Explanation of the Weston Score 35

RULE NO SECTION 8 - POLICY PREMIUM CALCULATION PAGE NO 800 Policy Premium Calculation 35




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GENERAL INFORMATION Please visit the agent’s section of our website: www.weston-ins.com. The Wind Only Homeowners Program provides property coverage using the forms and endorsements specified in this Manual. This Manual contains the rules and classifications governing the writing of the Wind Only High Value Homeowners Policies (WIC FL HW2-HV). SECTION 1. UNDERWRITING GUIDELINES All applications must be submitted to Weston for review and approval. The following Underwriting Guidelines apply: 100. ELIGIBILITY General Property owners are eligible for coverage in WESTON INSURANCE COMPANY (Weston) if:

• The property to be insured is located in an eligible area; • The property meets all other applicable underwriting criteria; and • A Main Structure with a Coverage A limit of $700,000 or more.

To determine eligible areas, reference the eligible area definitions found in the Territories Definitions section of this Manual. 101. UNINSURABLE PROPERTIES The following risks may not be insured in Weston’s Wind-Only Homeowners Program. DO NOT SUBMIT: A. Commercial Properties

Commercial properties including properties that are eligible for coverage in Weston’s Commercial or Commercial-Residential Wind-Only Program.

B. Coverage Limits – Minimum Properties for which the (WIC FL HW2-HV) Coverage A replacement cost value is less than $700,000 are ineligible for this program.

C. Other Windstorm Insurance Properties that are also covered by another windstorm insurance policy.

D. Replacement Cost/Market Value Ratio Properties with replacement cost exceeding 1 ½ times the market value, excluding land values.

E. Condemned Properties Properties which are condemned or scheduled to be condemned.




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F. Properties In Disrepair

Properties in a state of disrepair.

G. Properties with Existing Damage Properties with existing damage for which acceptable documentation reflecting when the repairs will be completed has not been submitted for review (Refer to Properties Requiring Additional Review Time).

H. Multiple Mortgages Properties with four or more mortgages when the additional mortgagees are not government backed loan programs such as FHA, VA, Fannie Mae, Freddie Mac, etc.

I. Farms & Ranches Properties (dwellings) located on a farm, ranch, orchard or grove, or where farming activities or ranching operations take place. Dwellings used for residential purposes when farming or ranching is incidental are eligible.

J. Business Exposures Properties where a business is conducted. Exception: Some types of business activities and business property may be allowed under this program. Refer to Properties Requiring Additional Review Time. Two salient elements to help identify a “business” include: (1) a profit motive and (2) continuity of the activity. Examples of uninsurable businesses include, but are not limited to: all manufacturing, retail sales when customer traffic is common, bed & breakfast operations, nursing homes, adult care living facilities, produce stands, “u-pick-it” produce operations, kennels, and repair work including auto or appliance repair.

K. Roof Conditions • Roofs that are damaged; or • Roofs that have visible signs of leaks; or • Roofs that have less than three years of remaining useful life. The “remaining useful life” is the remaining

life expectancy of the roof covering to function as intended based upon an inspection of the wear and tear, decay, deterioration, decline, or defect, present from natural, climatic, construction, or other local conditions.

L. Roof Covering Age Shingle, built up tar and gravel, or other roof coverings that are over 15 years old and tile, slate, clay, concrete or metal roof coverings that are over 25 years old must be replaced / updated to be eligible for coverage (see exception below)*. Documentation of full roof replacement must be submitted with the application or prior to the policy renewal in which the roof covering exceeds the maximum age requirements outlined in the following table:

Roof Eligibility Roof Covering Age

Asphalt, Fiberglass, Composition, or Wood Shake Shingles; Built-up Tar and Gravel; or Other Roof

Covering types Not Included Below Over 15 Years Not Insurable*

Tile, Slate, Clay, Concrete or Metal Over 25 Years Not Insurable* *Exception: Risks that do not meet the roof replacement eligibility requirements above may be eligible for coverage by submitting acceptable documentation verifying the roof has at least 3 years remaining useful life (Refer to Properties Requiring Additional Review Time). Risks that establish roof eligibility under this exception are not required to provide documentation of full roof replacement until the policy renewal period in which the remaining useful life of the roof covering falls below the 3-year eligibility threshold.




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Acceptable documentation includes a copy of a completed roofing contract; a statement from a licensed roofing contractor showing estimated age, condition and remaining useful life; a completed Weston Roof Condition Certification form; or other acceptable proof of remaining useful life.

M. Homemade/Rebuilt Properties Dwellings or structures that are homemade or rebuilt, or any dwelling constructed with extensive remodeling unless approved by local government building or zoning department or a certificate of occupancy has been issued (documentation required).

N. Non-Habitational Properties Residential risks used, designed, or constructed for non-habitational purposes.

O. Material Misrepresentation, Insurance Fraud or Arson Applicants canceled or non-renewed for material misrepresentation in the past seven (7) years, insurance fraud in the past fifteen (15) years, or convicted of arson in the past twenty-five (25) years.

P. Properties Constructed Over Water Any main structure constructed partially or entirely over water. Note: Having Other Structures over water does not make a risk ineligible. However, Other Structures that are over water (partially or entirely) are not covered and are not eligible for coverage.

Q. Dwellings in the Course of Construction Properties under construction. Exception: Dwellings under renovation will be permitted if the dwelling will be occupied throughout the entire renovation period.

R. Risks with a “DECLINE” Weston Score Weston Score measures the risk’s marginal reinsurance cost impact to Weston’s aggregate portfolio of risks. An explanation of the Weston Score is included in this manual. Please refer to Section 7. An application that receives a Weston Score of “DECLINE” from Weston’s online quoting system (Breeze) will NOT be bound, even if the application matches all other criteria outlined in the underwriting guidelines.

SECTION 2. GENERAL RULES 200. EXTENT OF COVERAGE The Wind Only Homeowners Policy form covers the peril of windstorm or hail as follows: A. Homeowners (WIC FL HW2-HV) – provides replacement cost coverage on structures (Coverages A & B)

and actual cash value on personal property (Coverage C). The WIC FL HW2-HV may only be issued for a dwelling which is used exclusively for private residential purposes and contains not more than 2 families and with not more than 2 boarders or roomers per family. In addition, the WIC FL HW2-HV may only be issued: 1. To the owner-occupant of the dwelling; or

2. To the purchaser-occupant who has entered into a long term installment contract for the purchase of the

dwelling and who occupies the dwelling but to whom title does not pass from the seller until all the terms of the installment contract have been satisfied. The seller retains title until completion of the payments and in no way acts as a mortgagee; or

3. To the occupant of the dwelling under a life estate arrangement, residence held in a trust, corporation or partnership if the occupant is part of the entity; or

4. When a 2-family dwelling (duplex) is occupied by co-owners, each occupying distinct living quarters with




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separate entrances. Given these circumstances, a Homeowners Policy providing building coverage may be issued to only one of the co-owner occupants of the dwelling.

B. Special Coverage Notes 1. It is permissible to extend the Homeowners Policy for WIC FL HW2-HV without additional premium

charge, to cover the interest of a non-occupant joint owner in the building. Use Endorsement WIC FL HW2-HV 0441 - Additional Insured – Residence Premises.

2. A building containing 3 or more families within a single building that is not owner-occupied is defined as an apartment building and must be rated on the Commercial-Residential policy.

3. A dwelling under construction must be written on the Commercial policy.

4. Coverage on a seasonal/secondary residence premises is available, but each additional property must be provided under a separate policy.

5. Replacement cost coverage on personal property may be purchased on WIC FL HW2-HV risks.

201. LIMITS OF LIABILITY

Policy Form Cov. A Min.

Cov. A Max.

Cov. B Min.

Cov. B Max.

Cov. C Min.

Cov. C Max.

Cov. D Loss Of Use

Min.

Cov. D Loss Of

Use Max.

WIC FL HW2-HV $700,000 None 0% of Cov. A

25% of Cov. A

15% of Cov. A*

75% of Cov. A*

5% of Cov. A

20% of Cov. A

*Note: Property Contents Coverage (Coverage C) can only be excluded subject to F.S. 627.712.3. 202. NEW BUSINESS SUBMISSION PROCEDURES A. Application

A Weston Wind Only Homeowners or ACORD Application must be submitted to Weston in order to request coverage for a risk. Weston encourages Agents to complete the Wind Only Homeowners Application on Weston’s online quoting system (Breeze). The application must be completed; and signed by the insured and the agent in order for eligible applicants to request a Wind Only Homeowners Policy under the following form: • WIC FL HW2-HV Homeowners Form

B. Submission Procedures

1. General

Coverage with Weston is not effective unless the risk meets Weston’s eligibility and underwriting requirements and the following is obtained: • A fully completed, signed and dated application; • Required premium; and • All required documentation The fully completed, signed (by the insured(s) and the agent) and dated application, required premium, and all required documentation must be submitted to Weston within five (5) business days from the requested effective date of coverage. The agent must review each application carefully to determine if the risk is eligible for coverage with Weston.




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2. Premium Payment a. Method of Payment

Weston accepts only the following methods of payment: (1) Full Payment Plan - 100% of the total policy premium is due by the effective date or the issue

date of the policy, whichever is later.

(2) Quarterly Payment Plan – • 40% of the total policy premium (plus $3 installment fee and a $10 one time service fee) due

by the effective date of the policy or the date of issuance, whichever is later. • 20% of the total policy premium (plus $3 installment fee) due 90 days after the policy effective

date. • 20% of the total policy premium (plus $3 installment fee) due 180 days after the policy

effective date. • 20% of the total policy premium (plus $3 installment fee) due 270 days after the policy

effective date.

(3) Semi-Annual Payment Plan – • 60% of the total policy premium (plus $3 installment fee and a $10 one time service fee) due

by the effective date of the policy or the date of issuance, whichever is later. • 40% of the total policy premium (plus $3 installment fee) due 180 days after the policy

effective date.

Lienholders, Mortgagees (e.g. escrow), and Premium Finance Companies are not eligible for the Quarterly or Semi-Annual payment plans. b. Premium Collection Requirements

(1) The full amount of premium collected must be submitted with each application without any

deductions (e.g. commissions).

(2) All premium and monies submitted on behalf of the applicant/insured must be payable to Weston.

(3) If an agent submits a premium payment on an agency check, Weston will treat such check as payment by the applicant/insured. A request for cancellation by the agent due to the agent’s inability to collect funds from the insured will not be honored. Any premium refunds will be sent directly to the insured unless the policy is premium financed.

(4) No funds should be collected for properties that are ineligible for coverage.

(5) In the event that a payment is made by check or draft and the instrument is returned because of non-sufficient funds (NSF) to pay it, Weston will charge an NSF fee of $15.

3. Required Documentation

a. Applications

All applications must be submitted to Weston and must be fully completed, signed (by the insured(s) and the agent), and dated. Weston encourages Agents to complete applications on its online quoting system (Breeze).

b. Inspection Contact Information Form A fully completed, signed, and dated Weston Inspection Contact Information Form.




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c. Replacement Cost Estimator (WIC FL HW2-HV)

Weston’s replacement cost estimator or an alternative such as Marshall & Swift/Boeckh (MSB) is required to be accurately completed in the system for Coverage A. The requested coverage amount may not be less than 100% or greater than 125% of the replacement cost indicated on the Weston’s replacement cost estimator and the coverage amount must meet the 100% insurance to value requirement. “Insurance to value” means that the dwelling is insured to 100% of the full replacement cost. If the requested coverage amount does not comply with the requirements noted above, a residential appraisal (no more than 1 year old) from a Florida licensed appraiser acceptable to Weston, must be submitted with the application along with the Weston replacement cost estimator for underwriting consideration. Note 1: Weston is not required to provide coverage in excess of replacement cost to satisfy mortgage lending requirements (Refer to section 626.9551, Florida Statute and F.A.C. Rule 4-167.009). Note 2: A property inspection report may be ordered by Weston on a property to confirm replacement cost values and/or insurability.

d. Photograph Requirements Weston requires two recent photographs (standard or digital); one photo angled to show the full front of the dwelling and one side, and the other photo angled to show the full rear of the dwelling and the other side. Photographs must include the policy number and must be submitted with the application. Note: Additional photographs are required for Other Structures - Coverage B, when a structure is clearly separated from the main building (i.e. pool houses, in-law/guest quarters, detached garage, or workshop). The agent may (at their own expense) designate a person or organization, other than the applicant or insured, to fulfill this requirement. However, this does not relieve the agent of the responsibility for complying with the requirement or the accuracy of the photographs.

e. Other Requirements Other documents may be required to support insurability, add or remove a coverage option, a premium discount, or to avoid a surcharge as outlined in the manual. When applicable, these documents are required to be submitted with the application. Some of these documents may include a completed Windstorm Mitigation Credits Form (OIR-B1-1802 verification form) and photos as described under section 403. WINDSTORM MITIGATION FEATURES; BCEGs Credits may include a completed Individual Property Certification (WESTON-95) form as described under section 402. BUILDING CODE EFFECTIVENESS GRADING SCHEDULE (BCEGS); any requirements listed under section 203. ADDITIONAL UNDERWRITING REQUIREMENTS; or any other supporting documentation that may be requested.

4. Agent Inspection Prior to requesting coverage, the agent is required to visually verify that the property meets eligibility criteria and that any negative underwriting characteristics are identified. The agent may (at their own expense) designate a person or organization, other than the applicant or insured, to fulfill this requirement. However, this does not relieve the agent of the responsibility for complying with the requirement or the accuracy of the inspection. The agent’s inspection should at least confirm the following: • Photographs submitted accurately represent the structure to be insured. • The inspection substantiates the data entered on the replacement cost estimator.




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• The physical condition of the structure is acceptable and does not indicate unreported signs of existing damage, disrepair or neglect.

• There are no unusual or obviously hazardous conditions not indicated on the application.

5. Properties Requiring Additional Review Time These types of risks are usually uninsurable unless specifically approved by Weston. Properties exhibiting any one of the following characteristics: a. Existing Damage

Any risk that has existing damage must be submitted for approval with the following documentation: description of damage, photos of damage, and documentation showing when repairs will be completed.

b. Risks with Older Roofs (WIC FL HW2-HV) Risks with roofs older than 15 years (shingle or other type) or 25 years (tile, slate, clay, concrete, or metal) must be submitted for approval with documentation showing at least 3 years remaining useful life. Acceptable documentation includes a copy of a completed roofing contract; a statement from a licensed roofing contractor showing estimated age, condition and remaining useful life; a completed Weston Roof Condition Certification form; or other acceptable proof of remaining useful life.

c. Business Exposures Properties with any type of business activities must submit summary of the business activities to be conducted at the property location and must submit a list of any business property to be considered for coverage. Weston will determine if the risk can be written under the High Value Program or if it qualifies to be written under another program.

6. Hurricane or Tropical Storm Binding Suspension No application for new coverage or endorsement for increased coverage may be bound, written or issued, or monies received, regardless of effective date, when a Tropical Storm or Hurricane Watch or Warning has been issued by the National Weather Service for any part of the State of Florida.

203. ADDITIONAL UNDERWRITING REQUIREMENTS A. Flood Insurance

Insureds with properties in Special Flood Hazard Areas, as defined by the National Flood Insurance Program (NFIP) (e.g. A, AO, AH, A1-A30, AE, A99, V, V1-V30, VE) must maintain a flood policy unless the applicant or insured signs the “Election Not To Buy Separate Flood Insurance” (WIC-FW01) form, or an exception in this rule applies. 1. Waiver of Flood Option – Securing flood insurance is not a condition of coverage if the applicant or

insured signs form WIC-FW01. An applicant or insured who does not maintain a flood policy, or does not sign the WIC-FW01 form, may be denied Weston coverage.

2. Coverage Requirements – If form WIC-FW01is not completed, or the property does not meet an exception, the insured must maintain a flood policy in effect, subject to the maximum limits available from NFIP, as follows: a. With building limits not less than 80% of the Weston building limits, or

b. Where NFIP issues an Actual Cash Value (ACV) policy, not less than 80% of the building ACV, and

c. With contents limits in any amount, if Weston contents coverage exists.




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3. Notes a. A “Difference in Condition” (DIC) policy may not be substituted for the flood policy requirement.

b. If a flood application is pending due to a waiting period, the risk is eligible for Weston coverage if

otherwise eligible. This may be indicated in the appropriate section of the application with the words “Applied For”. The policy number must be provided to Weston as soon as issued to avoid cancellation.

B. Companion Policy The companion multi-peril policy insurer name and policy number is required on the application. This information must be provided even if the Weston agent is not the agent of record for this companion policy. If the applicant has no companion multi-peril policy, please indicate "None".

204. POLICY PERIOD All policies are issued for a one (1) year term at premiums applicable on the effective date of the policy term. 205. ROUNDING OF PREMIUMS, MINIMUM PREMIUM AND WAIVER OF PREMIUM A. The premium for each coverage shown in the policy is rounded to the nearest whole dollar, with fifty cents

($0.50) or more rounded to the next higher dollar. In no event will premiums for any coverage be less than one whole dollar ($1). For all policy cancellations, round the total policy return premium to the next higher whole dollar.

B. The minimum premium applicable to all policy forms is one thousand dollars ($1,000).

C. Additional or return premiums of five dollars ($5) or less will be waived. Weston will return premium due if requested by the insured.

206. POLICY CHANGES A. All policy change requests and required documents must be submitted to Weston within five (5) business

days from the effective date of the change.

B. All changes are made using the rules and rates in effect at the inception of the policy or latest subsequent renewal date thereafter.

C. Midterm Changes requested after the renewal date will be made effective as of the next renewal date, unless

an exception is approved by Weston.

D. Upon Weston’s receipt of any information that may cause an underwriting rating change based on any change in a risk(s)’ rating information, Weston, at its discretion, may re-rate the risk(s) and charge an additional premium or issue a premium refund in accordance with any applicable Florida Statutes and Weston’s underwriting guidelines.

E. Policies may not be cancelled and rewritten to circumvent forthcoming rate, rule, coverage, or surcharge changes.

207. AUTOMATIC INCREASE IN LIMITS (WIC FL HW2-HV) The Coverage A Dwelling limit is based on “Insurance To Value.” Therefore, the Coverage A Dwelling limit may be adjusted annually at renewal for inflation as determined by the Replacement Cost Estimator. Contents and other blanket limits will be adjusted proportionately.




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If an adjustment is made to the Coverage A Dwelling limit, it will be indicated on the Renewal Declarations Page. 208. TRANSFERS OR ASSIGNMENTS Transfers or assignments are not available. • A new location may not be substituted for an existing location. A new application for coverage must be

submitted including new photos and all required documents. The prior policy must be cancelled. 209. INSPECTIONS An inspection requiring interior and exterior access may be conducted on any property insured by Weston. Inspection information can verify wind-resistive features, risk characteristics, and/or general eligibility for coverage. Failure to respond to inspection requests or refusal to allow an inspection will result in one of the following: • Removal of wind-mitigation credits if the inspection is intended to validate wind-mitigation features. Credits

are removed back to the inception date for new business policies and at the subsequent renewal for existing policies.

• Cancellation or non-renewal if the inspection is intended to validate eligibility for coverage. Cancellations and non-renewals are handled in compliance with statutory requirements and policy provisions. 210. CANCELLATIONS A. Cancellations

1. If a policy is cancelled by the insured or for non-payment of premium, return premium is pro rata if no

coverage existed from June 1 to November 30. If coverage existed at any time during such period, the return premium is computed using the following factors:

1 Year Policy DAYS POLICY IN FORCE UNEARNED FACTOR

1 to 180 0.200

181 to 210 0.150 211 to 240 0.100 241 to 270 0.075 271 to 300 0.050 301 to 330 0.025 331 to 365 0.000

2. Cancellations for the following reasons will be on a pro rata basis and not subject to the unearned factors

above with acceptable documentation: a. Total loss

b. Transfer of ownership (e.g., property sold, foreclosed)

c. Policyholder deceased

d. Policy cancelled by Weston e. All mortgages on the covered property are paid in full.

3. Weston will not grant a backdated cancellation without acceptable documentation (e.g. closing statement,

deed, evidence of insurance).




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211. CONSTRUCTION DEFINITIONS A. Frame — wood or steel frame; exterior walls of wood or other combustible construction, including wood-iron

clad, stucco on wood, or plaster on combustible support, aluminum or plastic siding over frame, and brick veneer (up to 100%).

B. Masonry —100% masonry which includes masonry and CBC (concrete/cinder block) construction.

C. Superior Construction – must meet at least one of the following criteria:

1. Non-Combustible — 100% of exterior walls and floors and roof constructed of, and supported by metal, asbestos, gypsum, or other non-combustible materials.

2. Masonry Non-Combustible — 100% of exterior walls constructed of masonry materials and floors and roof of metal or other non-combustible materials.

3. Fire Resistive — 100% of exterior walls and floors and roof constructed of masonry or other fire resistive

materials. Note: Predominant Wall Construction Rule

For wall construction types that are less than 100% of the total wall area, the building is rated according to the wall construction class with the highest rate.

212. SINGLE BUILDING DEFINITION For rating purposes, single building rules are determined by construction classification. A building may be insured separately only if ALL of the following apply: A. Construction Classification

1. Frame (FRM) or Masonry (MAS) • The building must not share a roof surface with any other building. • The building is not connected to another building or is only connected to another building through an

open stairwell, breezeway, passageway or parking garage. • If abutting another building, the exterior walls must be masonry, load-bearing and rise from the

ground level up through the roof surface (without opening). 2. Semi-Wind Resistive (SWR) or Wind Resistive (WR)

• The building must not share a roof surface with any other building. • The building is not connected to another building or is only connected to another building through an

open stairwell, breezeway, passageway or parking garage. • If abutting another building, the exterior walls must be masonry, load-bearing and rise from the

ground level up through the roof surface (without opening).

213. INDIVIDUAL RISK RATING A. Depending on construction, condition of property, and location, Weston may choose to negotiate a rate and

premium to meet these conditions. This will be administered as an "individual risk submission" in accordance with Section 627.171, Florida Statute.

B. Rating is the sole responsibility of Weston, subject to approval by the Florida Office of Insurance Regulation.




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SECTION 3. INCREASED/DECREASED COVERAGE A LIMITS, YEAR BUILT, and SIZE OF DWELLING FACTORS & BASE RATES 300. INCREASED/DECREASED COV. A LIMITS, YEAR BUILT & SIZE OF DWELLING FACTORS

A. The INCREASED/DECREASED COV. A LIMITS FACTORS are the first set of factors used in determining the POLICY PREMIUM.

• Mid-term Coverage A increases are allowed.

The I/D Limits Factors are multipliers that are applied to the amount of Coverage A selected. To determine the appropriate multiplier, follow the steps listed below:

Step 1 - Divide the selected Coverage A limit by $1,000,000 to determine the Increase or Decrease (I/D) Factor. Step 2 - Determine if the I/D Factor is greater or less than 1. Step 3 - If the I/D Factor is less than 1, add the I/D Factor to the following formula (1-I/D Factor*0.1316) Step 4 - If the I/D Factor is greater than or equal to 1, add the I/D Factor to the following formula (1-I/D Factor*0.0467045) Step 5 - Round the result of Steps 3 or 4 to 3 decimal places to determine the final Increased or Decreased Limits Factor.

E.G. If a $900,000 Cov. A limit is selected, then the Increased/Decreased Limits Factor would be calculated as follows: =$900,000 / 1,000,000 = 0.9 =0.9 < 1 =.9 + {(1 - .9) * 0.1316} = .1316

E.G. If a $3,000,000 Cov. A limit is selected, then the Increased/Decreased Limits Factor would be calculated as follows:

=$3,000,000 / $1,000,000 = 3 =3 > 1 =3 + {(1-3) * 0.0467045} = 1.047


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B & C. YEAR BUILT & SIZE OF DWELLING FACTORS Determine the applicable YEAR BUILT and SIZE OF DWELLING FACTORS to apply to the base rates.

B. YEAR BUILT FACTORS C. SIZE OF DWELLING FACTORS

Year Built Factor

2006 Or Later 0.920

2005 0.940 < 4,500 1.052004 0.960 4,500 ‐ 7,500 1.002003 0.980 > 7,500 0.952002 1.000 2001 1.061 2000 1.071 1999 1.082 1998 1.092 1997 1.103 1996 1.113 1995 1.124 1994 1.134 1993 1.199 1992 1.205 1991 1.210 1990 1.216 1989 1.221 1988 1.227 1987 1.232 1986 1.238 1985 1.243 1984 1.249 1983 1.254 1982 1.260 1981 1.265 1980 1.271 1979 1.276 1978 1.282

1977 Or Earlier 1.287

Size of Dwelling (sq. FT) Factor




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301. WINDSTORM BASE RATE TABLE The BASE RATES are the rates used in determining the POLICY PREMIUM.

Zone

Combined

Wind Base Rate

Hurricane Base Rate

Other Wind & Hail Base

Rate Zone

Combined

Wind Base Rate

Hurricane Base Rate

Other Wind & Hail Base

Rate 1 72,759 68,394 4,366 9 25,025 23,523 1,501 2 63,921 60,085 3,835 9-B 16,844 15,833 1,011

2-B 48,884 45,951 2,933 9-C 14,733 13,849 884 2-C 36,517 34,326 2,191 9-D 11,981 11,262 719 2-D 29,206 27,453 1,752 10 22,258 20,922 1,335 3 48,732 45,808 2,924 10-B 18,832 17,702 1,130

3-B 41,614 39,117 2,497 10-C 9,062 8,518 544 3-C 35,556 33,422 2,133 10-D 9,306 8,747 558 3-D 25,049 23,546 1,503 11 26,714 25,111 1,603 4 46,314 43,536 2,779 11-B 18,414 17,309 1,105

4-B 37,359 35,117 2,242 11-C 10,928 10,272 656 4-C 32,785 30,818 1,967 11-D 14,661 13,782 880 4-D 26,045 24,482 1,563 12 37,495 35,245 2,250 5 55,304 51,986 3,318 12-B 33,463 31,455 2,008

5-B 40,362 37,940 2,422 12-C 12,616 11,859 757 5-C 28,681 26,960 1,721 12-D 11,438 10,752 686 5-D 17,044 16,021 1,023 13 41,595 39,099 2,496 6 31,002 29,142 1,860 13-B 33,463 31,455 2,008

6-B 20,201 18,989 1,212 13-C 12,607 11,851 756 6-C 10,266 9,650 616 13-D 11,428 10,742 686 6-D 7,095 6,669 426 14 12,765 11,999 766 7 17,725 16,662 1,064 14-B 8,151 7,662 489

7-B 16,844 15,834 1,011 14-C 6,505 6,115 390 7-C 8,117 7,630 487 14-D 4,820 4,530 289 7-D 8,302 7,804 498 15 6,103 5,736 366 8 32,903 30,929 1,974 16 6,288 5,910 377

8-B 21,612 20,315 1,297 17 6,213 5,841 373 8-C 16,070 15,106 964 18 5,341 5,021 320 8-D 13,504 12,694 810 19 5,341 5,021 320

Note: Hurricane Base Rates represent 94% of the Combined Wind Base Rates.

HW2 Windstorm Base Rates

END OF WIC FL HW2-HV RATES




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SECTION 4. DISCOUNTS AND SURCHARGES 400. WINDSTORM DEDUCTIBLES A separate “Hurricane” deductible and a separate “Other Windstorm or Hail” deductible apply. A. Base Deductible

Other Windstorm or Hail Deductible = 2% Hurricane Deductible = 2%

B. Endorsement Endorsement WIC FL HW2-HV 24 – Calendar Year Hurricane Deductible - Florida is mandatory on all WIC FL HW2-HV policies.

C. Deductible Combinations Available options based on Hurricane deductible selection:

If the selected Hurricane deductible is: The available Other Windstorm or Hail deductible options are: 2% 2% 5% 2%, 5% 10% 2%, 5%, 10% 15% 2%, 5%, 10%, 15% 20% 2%, 5%, 10%, 15%, 20% 25% 2%, 5%, 10%, 15%, 20%, 25%

Availability for WIC FL HW2-HV policies is determined by using Coverage A amount.

D. Deductible Changes All deductible options may only be amended effective on the normal policy renewal date. Exception: If a lower calendar year hurricane deductible is requested and the policy has sustained a hurricane loss in the current calendar year, the lower calendar year hurricane deductible will not become effective until January 1 of the following calendar year. A policy may not be rewritten to circumvent these restrictions.




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E. Deductible Factors

The Deductible Factors are listed in the below table:

Windstorm Deductible Factors

Hurricane Deductible Factor

Other Wind & Hail

Deductible Factor 2% 1.000 2% 1.0005% 0.800 5% 0.800

10% 0.650 10% 0.65015% 0.550 15% 0.55020% 0.450 20% 0.45025% 0.350 25% 0.350

401. POLICY PREMIUM CREDITS A. Construction Type 2

A credit of 10% is applicable, if the building is of “masonry” construction as defined under section 211. CONSTRUCTION DEFINITIONS.

B. Construction Type 3

A credit of 15% is applicable, if the insured dwelling is of “superior” construction as defined under section 211. CONSTRUCTION DEFINITIONS.

C. Building Code Effectiveness Grade (BCEG)

A credit is applicable, if the insured dwelling is written in a community that participates in the building Code Effectiveness Grading program. BCEG credits, by territory are outlined under 402. BUILDING CODE EFFECTIVENESS GRADING SCHEDULE (BCEGS).

D. Windstorm Mitigation Credits

Windstorm Mitigation Credits are defined under section 403. WINDSTORM MITIGATION FEATURES. E. Mid-term changes are allowed under this section.

402. BUILDING CODE EFFECTIVENESS GRADING SCHEDULE (BCEGS) A. General

1. The Building Code Effectiveness Grading Schedule (BCEGS) develops a grade of “1” to “10” for a

community based on the adequacy of its building code and the effectiveness of its enforcement of that code. Policies which cover the perils of Windstorm or Hail, for risks built in 1995 and later, may be eligible for special rating treatment, subject to the criteria in the following paragraphs.

2. In some communities, two BCEGS grades may be assigned. One grade will apply to one and two family dwelling buildings and/or personal property contained in such buildings. The other grade will apply to all other buildings occupied for residential, commercial and/or manufacturing purposes including personal and business property contained therein.

3. The BCEGS grades for a community, and their effective dates, are provided on the Weston website in the Protection Class/BCEGS section.




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B. Community Grading 1. The BCEGS grade applies to any building that has an original certificate of occupancy/completion dated

in the year of the effective date of the community grading or later.

2. If a community is re-graded, the factor for the revised grade applies to buildings that have an original certificate of occupancy dated the year of the revised grading or later.

3. If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community grading applicable at the time the reconstruction is completed will apply to such building.

4. Communities that decline to participate in the BCEGS Program will be identified as not participating and will receive a premium surcharge, unless they qualify for Individual Grading. This surcharge will apply to any building that has an original certificate of occupancy dated in the year of the effective date of the community evaluation that indicates the community as not participating.

C. Individual Grading Where buildings have been built in full conformance with the natural hazard mitigation elements of one of the nationally recognized building codes, even though the community grade is greater than “1”, or the community is not participating in the program, exception rating procedures may apply. Any building may be classified as Grade “1” for Windstorm/Hail upon certification by a Florida licensed architect or structural engineer, based on an on-site inspection, that such building is in compliance with one of the three nationally recognized building codes with respect to mitigation of the Windstorm and/or Hail hazard. This classification is effective only from the date of the certification. Any costs associated with this provision are to be paid by the insured. Submit the Individual Property Certification (WESTON-95) form.

D. Ungraded and Non-Participating Risks Buildings which do not qualify for Community or Individual Grading are classified as ungraded or nonparticipating risks. Do not classify as Grade “10”.




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E. BCEGS Rating Factors

BCEGS TABLE

Grade 1 2 3 4 5 6 7 8 9 10Zone

1 8% 8% 8% 5% 5% 5% 5% 2% 2% 0%

3 8% 8% 8% 5% 5% 5% 5% 2% 2% 0%

5 8% 8% 8% 5% 5% 5% 5% 2% 2% 0%

14, 14-B, 14-C, 14-D 5% 5% 5% 3% 3% 3% 3% 1% 1% 0%

15 4% 4% 4% 2% 2% 2% 2% 1% 1% 0%

* For a risk that does not participate in the BCEG

program, apply a surcharge of 1%

1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

4%

6% 6% 4% 4%2, 2-B, 2-C, 2-D, 4-B, 4-C, 4-D, 6-B, 6-C, 6-D

4, 6, 7, 8, 9, 10, 11, 12, 13, 3-B, 3-C, 3-D, 5-B, 5-C, 5-D, 7-B, 7% 7% 7%

0%

4% 4% 4% 2% 2% 0%

4% 4% 2% 2% 0%

403. WINDSTORM MITIGATION FEATURES A. For policies that cover the peril of Windstorm or Hail, a premium credit may be available if one or more of the

following loss mitigation features or construction techniques exist: 1. Roof Covering;

2. Roof Deck Attachment;

3. Roof to Wall Connection / Attachment;

4. Opening Protection;

5. Roof Shape / Geometry; or

6. Secondary Water Resistance.

The credit recognition and description of the loss mitigation features listed above are outlined in the Loss Mitigation Factor Tables. Note: For townhouse or rowhouse, use 1 to 4 unit tables regardless of number of units in the building.

B. Proof of Compliance Weston requires proof to substantiate the existence of loss mitigation features displayed in the Loss Mitigation Factor tables. Photographs of the entire roof may be submitted as proof of hip shape if the photographs can accurately verify the primary roof shape is hip with no other roof shapes greater than 10% of the total roof perimeter. Mitigation affidavits/forms are available on the Weston website to verify mitigation features and obtain




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additional premium credits. The applicant/insured is responsible for the expense associated with the use of these forms or any other costs for substantiating the existence of the mitigation features. Note: The OIR-B1-1802 verification form is valid for five years provided no material changes have been made to the structure. Prior versions of the OIR-B1-1802 from are acceptable provided the form was completed for the applicant/insured within the past five years using the form that was approved for use at that time. Policyholders are not required to submit a new OIR-B1-1802 form due solely to a change or update to the form in order to continue receiving credits. Weston’s online quoting system (Breeze) will return the least amount of premium credit based on the applicable mitigation features displayed in the Loss Mitigation Factor tables if the loss mitigation feature(s): • is unknown; or • cannot be verified; or • is not substantiated by a mitigation affidavit/form. The following is an exception to the affidavits/forms requirements noted above: • Year built 2002 or later (Dade and Broward County ONLY): Structures that have 5 or more units and

are 4 stories or more and built on or after January 1, 2002 in Dade or Broward County are eligible for Opening Protection Class A credit by providing documentation that validates the year of construction.

Acceptable documents include: certificate of occupancy, copy of property appraisal or any other document Weston deems acceptable. Completion of mitigation affidavits/forms is not required to receive this Class A credit. Additionally, if the insured provides completed mitigation affidavit/form(s) at policy midterm or renewal, any applicable credit(s) may be applied either the earlier of the execution date on the affidavit/form(s) or the installation date of the mitigation feature(s) but will not be earlier than the date of the last policy renewal.

C. Residential Classification Definitions

1. Terrain Exposure Category Definition

Apply Exposure Category (terrain) definition from the Florida Building Code as follows: Exposure C (open terrain with scattered obstructions) applies to all locations in HVHZ (Miami-Dade and Broward Counties) and includes: a. Barrier islands as defined per section 161.55, Florida Statute, as the land area from the seasonal high

water line to a line 5,000 feet landward from the Coastal Construction Control line.

b. All other areas within 1,500 feet of the coastal construction control line, or within 1,500 feet of the mean high tide line, whichever is less.

2. Building Types (applies to 5+ units only)

a. Construction Type 1 – Buildings with a masonry or wood frame, one to three stories in height

(excluding basements)

b. Construction Type 2 – Buildings with a steel or concrete frame, or of reinforced masonry construction which are 60 feet or less in height.

c. Construction Type 3 – Buildings with a steel or concrete frame, which are greater than 60 feet in

height.

3. Roof Covering




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a. For 1 to 4 unit buildings and 5+ unit – Type 1 buildings (1) FBC Equivalent – All roof coverings that meet the minimum requirements of the 2001 Florida

Building Code or the 1994 South Florida Building Code (for the HVHZ only) and have an FBC or Miami-Dade product approval that is/was current at the time of installation.

(2) Non-FBC Equivalent – One or more roof coverings do not meet the FBC Equivalent definition requirements.

(3) Reinforced Concrete Roof Deck - A roof structure composed of cast-in-place or pre-cast

structural concrete designed to be self-supporting and integrally attached to the wall/support system.

b. For 5+ unit – Type 2 and Type 3 buildings

(1) Level B (FBC Equivalent): Single-Ply, Modified Bitumen, Sprayed Polyurethane foam, Metal,

tile, Built-up, Asphalt Shingle or Rolled Roofing, or other roof covering membranes/products that at a minimum meet the 2001 or later Florida Building Code or the 1994 South Florida Building Code and have a Miami-Dade NOA or FBC 2001 Product Approval listing that is/was current at the time of installation. All mechanical equipment must be adequately tied to the roof deck to resist overturning and sliding during high winds. Any flat roof covering with flashing or coping must be mechanically attached to the structure with face fasteners (no clip/cleat systems) and asphalt roof coverings on flat roofs must be 10 years old or less.

(2) Level A (Non – FBC Equivalent): All roof cover types and configurations that do not meet Level B.

4. Roof Shape / Geometry a. For 1 to 4 unit – Type 1 buildings

(1) Hip Roof – Hip roof with no other roof shapes greater than 10% of the total roof system

perimeter.

(2) Other – (Non-Hip Roof) – Any roof that does not qualify as hip.

b. 5 + Unit – Type 1 buildings (1) Hip Roof – Hip roof with no other roof shapes greater than 10% of the total roof system

perimeter.

(2) Flat Roof – A roof on a building with 5 or more units where at least 90% of the main roof area has a roof slope o less than 2:12.

(3) Gable Roof – A Gable roof or any roof that does not qualify as hip or flat roof.

5. Roof Deck Attachments




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a. For 1 to 4 unit buildings and 5+ unit – Type 1 buildings

(1) Attachment A – Plywood/OSB roof sheathing attached to roof trusses/rafter (spaced a maximum

of 24” o.c.) by staples or 6d nails spaced at 6” along the edge and 12” in the field. OR

Batten decking supporting wood shakes or wood shingles.

(2) Attachment B – Plywood/OSB roof sheathing with a minimum thickness of 7/16" attached to roof truss/rafter (spaced a maximum of 24” o.c.) by 8d common nails spaced at a maximum of 12” in the field. OR Any system of screws, nails, adhesives, other roof deck fastening systems, or truss/rafter spacing that is shown to have an equivalent or greater resistance than 8d common nails spaced a maximum of 12” in the field or has a mean uplift resistance of 103 psf.

(3) Attachment C – Plywood/OSB roof sheathing with a minimum thickness of 7/16" attached to roof truss/rafter (spaced a maximum of 24” o.c.) by 8d common nails spaced at a maximum of 6” in the field. OR Dimensional Lumber or Tongue & Groove decking with a minimum of 2 nails per board (or 1 nail per board if each board is equal to or less than 6 inches in width). OR

(4) Any system of screws, nails, adhesives, other roof deck fastening systems, or truss/rafter spacing that is shown to have an equivalent or greater resistance than 8d common nails spaced at a maximum of 6” in the field or has a mean uplift resistance of 182 psf.

b. For 5+ unit – Type 2 and Type 3 buildings (1) Attachment A (Wood or Other)

(a) Roof deck composed of sheets of structural panels (plywood or OSB).

(b) Architectural (non-structural) metal panels that require a solid decking to support weight and

loads.

(c) Other roof decks that do not meet Attachment B or C.

(2) Attachment B (Metal Deck) Metal roof deck made of structural panels that span from joist to joist.

(3) Attachment C (Reinforced Concrete Roof Deck) A roof structure composed of cast-in-place or pre-cast structural concrete designed to be self-supporting and integrally attached to wall/support system.

Note: If roof deck type is unknown, deck should be classified as Attachment A for Type 1 and Type 2 Buildings. Attachment B should be used for Type 3 Buildings.




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6. Secondary Water Resistance (SWR) (Standard underlayments or hot-mopped felts do not qualify as

SWR) a. For 1 to 4 unit buildings and 5+ unit – Type 1 buildings

A self-adhering polymer modified bitumen roofing underlayment (thin rubber sheets with peel and stick underside located beneath the roof covering and normal felt underlayment) applied directly to the sheathing or foam adhesive SWR barrier (not foamed on insulation) applied as a supplemental means to protect the building from water intrusion in the event of roof covering loss.

b. For 5+ unit – Type 2 and Type 3 buildings (1) For Wood Decks

A self-adhering polymer modified bitumen roofing underlayment (thin rubber sheets with peel and stick underside located beneath the roof covering and normal felt underlayment) applied over all plywood/OSB joints to protect from water intrusion. All secondary water resistance products must be installed per the manufacturer's recommendations. Roofing felt or similar paper based products are not acceptable for secondary water resistance.

(2) For Metal Decks Roofing tar is applied to all connections where mechanical fasteners penetrate the metal deck.

(3) For Reinforced Concrete Roof Deck Not applicable.

7. Roof-Wall Connection / Attachment a. Toe-Nail

(1) Truss/rafter anchored to top plate of wall using nails driven at an angle through the truss/rafter

and attached to the top plate of the wall; or

(2) Metal connectors that do not meet the minimum requirements for Clips or Single or Double Wraps.

Minimum conditions to Qualify for Clips, Single Wraps or Double Wraps; all visible metal connectors are:

(1) Secured to truss/rafter with a minimum of three (3) nails; and

(2) Attached to the wall top plate of the wall framing, or embedded in the bond beam, with less than a ½” gap from the blocking or truss/rafter and blocked no more than 1.5” of the truss/rafter and free of visible severe corrosion.

b. Clips

(1) Metal connectors that do not wrap over the top of the truss/rafter; or

(2) Metal connectors with a minimum of 1 strap that wraps over the top of the truss/rafter and does

not meet the nail position requirements of Single or Double Wraps but is secured with a minimum of 3 nails.

c. Single Wraps Metal connectors consisting of a single strap that wraps over the top of the truss/rafter and is secured with a minimum of 2 nails on the front side, and a minimum of 1 nail on the opposing side.




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d. Double Wraps

(1) Metal connectors consisting of 2 separate straps that are attached to the wall frame, or

embedded in the bond beam, on either side of the truss/rafter where each strap wraps over the top of the truss/rafter and is secured with a minimum of 2 nails on the front side, and a minimum of 1 nail on the opposing side; or

(2) Metal connectors consisting of a single strap that wraps over the top of the truss/rafter, is secured to the wall on both sides, and is secured to the top plate with a minimum of three nails on each side.

8. Opening Protection

a. Class A (Hurricane Impact) – All exterior openings or all glazed exterior openings in buildings

(doors, windows, skylights and vents, other than roof ridge gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant window units that are listed as wind borne debris protection devices in the product approval system of the State of Florida or Miami-Dade County. For buildings located in the HVHZ (High Velocity Hurricane Zone) all openings must be protected. Wind borne debris protection systems must have either a Miami-Dade NOA or FBC product approval denoting “For Use in the HVHZ”. All opening protection devices must meet the following “Cyclic Pressure and Large Missile Impact” standards as appropriate: (1) Miami Dade County Notice of Acceptance (NOA) 201, 202 and 203. (Large Missile – 9 lb.)

(2) Florida Building Code Testing Application Standard (TAS) 201, 202 and 203. (Large Missile – 9

lb.)

(3) American Society for Testing and Materials (ASTM) E 1886 and ASTM E 1996. (Large Missile – 9 lb.)

(4) Southern Standards Technical Document (SSTD) 12. (Large Missile – 9 lb.)

(5) For Skylights Only: ASTM E 1886/E 1996. (Large Missile – 4.5 lb.)

(6) For Garage Doors Only: ANSI/DASMA 108 and 115. (Large Missile – 9 lb.)

b. Class B (Basic Impact) – All exterior openings or all glazed exterior openings in buildings (doors,

windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant window units that are listed as wind borne debris protection devices in the product approval system of the State of Florida or Miami-Dade County. All opening protection devices must meet the following “Cyclic Pressure and Large Missile Impact” standards as appropriate: (1) (ASTM) E 1886 and ASTM E 1996. (Large Missile – 4.5 lb.)

(2) (SSTD) 12. (Large Missile – 4 lb. to 8 lb.)

(3) For Skylights Only: ASTM E 1886/E 1996. (Large Missile – 4.5 lb.)

c. None – All other cases, including unprotected glazed openings.




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9. Windstorm Mitigation Credits Matrices

None 0.00 0.06 0.47 0.50 0.00 0.07 0.28 0.32

Basic - Windows or All 0.35 0.42 0.62 0.65 0.29 0.38 0.56 0.62

Hurricane - Windows or All 0.44 0.51 0.66 0.70 0.39 0.48 0.64 0.72

None 0.35 0.42 0.62 0.66 0.18 0.26 0.44 0.51



None 0.35 0.43 0.62 0.67 0.20 0.28 0.45 0.51



None 0.35 0.43 0.62 0.66 0.21 0.28 0.45 0.51



None 0.09 0.14 0.49 0.52 0.09 0.14 0.29 0.33



None 0.58 0.65 0.68 0.73 0.38 0.44 0.57 0.65



None 0.60 0.68 0.68 0.73 0.48 0.58 0.60 0.71



None 0.60 0.68 0.68 0.73 0.51 0.63 0.61 0.72



None 0.09 0.14 0.49 0.51 0.09 0.14 0.29 0.33



None 0.59 0.65 0.68 0.73 0.39 0.45 0.57 0.65



None 0.62 0.69 0.68 0.73 0.49 0.60 0.61 0.73



None 0.62 0.70 0.68 0.73 0.55 0.71 0.61 0.74



DOUBLE WRAPS

ROOF COVERROOF DECK

ATTACHMENTROOF-WALL CONNECTION

WINDSTORM LOSS REDUCTION CREDITS

1. WIND PREMIUM CREDITS FOR EXISTING CONSTRUCTION (ROOF COVER - NON-FBC EQUIVALENT)

TERRAIN B - 2% DEDUCTIBLE TERRAIN C - 2% DEDUCTIBLE

FRAME, MASONRY, OR REINFORCED MASONRY

NON - FBC EQUIVALENT

SINGLE WRAPS

CLIPS

TOE NAILS

DOUBLE WRAPS

ROOF SHAPE ROOF SHAPE

OTHER HIP OTHER HIP

NO SWR SWR NO SWR SWR NO SWR SWROPENING PROTECTION NO SWR SWR

DOUBLE WRAPS

B (8d @ 6" / 12")

A (6d @ 6" / 12")

TOE NAILS

CLIPS

SINGLE WRAPS


C (8d @ 6" / 6") AND

D (8d @ 6" / 6") DIMENSIONAL LUMBER DECK


SINGLE WRAPS

CLIPS

TOE NAILS




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None 0.11 0.14 0.55 0.56 0.07 0.10 0.33 0.36



None 0.49 0.50 0.72 0.73 0.28 0.30 0.53 0.54



None 0.49 0.50 0.72 0.73 0.30 0.32 0.53 0.55



None 0.49 0.51 0.72 0.73 0.30 0.33 0.53 0.55



None 0.18 0.20 0.57 0.57 0.15 0.18 0.35 0.37



None 0.70 0.71 0.78 0.79 0.46 0.48 0.66 0.68



None 0.73 0.74 0.78 0.79 0.58 0.61 0.71 0.74



None 0.73 0.75 0.78 0.79 0.63 0.67 0.72 0.76



None 0.18 0.20 0.57 0.57 0.15 0.18 0.35 0.37



None 0.70 0.72 0.78 0.79 0.46 0.48 0.66 0.69



None 0.74 0.76 0.78 0.79 0.60 0.63 0.72 0.76



None 0.74 0.76 0.78 0.79 0.68 0.74 0.73 0.78



None 0.00 0.00 0.00 0.82 0.00 0.00 0.00 0.80



SWR NO SWR SWRROOF COVERROOF DECK

ATTACHMENTROOF-WALL CONNECTION OPENING PROTECTION NO SWR SWR NO SWR SWR NO SWR

OTHER HIP

ROOF SHAPE

WINDSTORM LOSS REDUCTION CREDITS (Ctd.)

2. WIND PREMIUM CREDITS FOR EXISTING CONSTRUCTION (ROOF COVER - FBC EQUIVALENT)

CLIPS



A (6d @ 6" / 12")

FBC EQUIVALENT

DOUBLE WRAPS

HIP

ROOF SHAPE

OTHER

REINFORCED CONCRETE ROOF DECK

SINGLE WRAPS

TOE NAILS

FBC EQUIVALENT

C (8d @ 6" / 6") AND

D (8d @ 6" / 6") DIMENSIONAL LUMBER DECK

CLIPS

SINGLE WRAPS

DOUBLE WRAPS

TOE NAILS

CLIPS

SINGLE WRAPS

DOUBLE WRAPS

B (8d @ 6" / 12")

FBC EQUIVALENT

TOE NAILS


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WINDSTORM LOSS REDUCTION CREDITS WIND PREMIUM CREDITS FOR NEW CONSTRUCTION

NO SWR SWR NO SWR SWR NO SWR SWR NO SWR SWR

B 100 ≥100 ENCLOSED NO 0.68 0.69 0.74 0.74 0.78 0.79 0.81 0.81

B 110 ≥110 ENCLOSED NO 0.72 0.73 0.78 0.78 0.78 0.79 0.82 0.83

B ≥120 ≥120 ENCLOSED NO 0.74 0.75 0.79 0.79 0.78 0.78 0.82 0.82

B OR C HVHZ

≥120 ≥120 ENCLOSED / PART. ENCL YES 0.77 0.80 0.82 0.84 0.81 0.83 0.85 0.86

ENCLOSED YES 0.00 0.00 0.82 0.84 0.00 0.00 0.85 0.86

B ANY ENCLOSED NO 0.00 0.00 0.00 0.00 0.00 0.81 0.00 0.85

B ANY ENCLOSED / PART. ENCL YES 0.00 0.00 0.00 0.00 0.00 0.82 0.00 0.85

C ANY ENCLOSED / PART. ENCL YES 0.00 0.00 0.00 0.00 0.00 0.81 0.00 0.89

HVHZ ENCLOSED YES 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.89

FBC = FLORIDA BUILDING CODE

SWR = SECONDARY WATER RESISTANCE

WINDOWS OR ALL

REINFORCED CONCRETE ROOF

DECK


FBC 2001 CONSTRUCTION OTHER ROOF SHAPE HIP ROOF SHAPE

OTHER ROOF DECK OR

DIMENSIONAL LUMBER DECK

FBC WIND SPEED (MPH)

WIND SPEED OF DESIGN (MPH)

WBDRNO OPENING PROTECTION

OPENING PROTECTION OPENING PROTECTIONINTERNAL PRESSURE

DESIGN

NO OPENING

PROTECTION

WINDOWS OR ALL

TERRAIN EXPOSURE

ROOF DECK

HVHZ = HIGH VELOCITY HURRICANE ZONE (Miami-Dade and Broward counties, FBC sections 202 AND 1611ff) WBDR = WIND BORNE DEBRIS REGION

REINFORCED CONCRETE ROOF DECK includes SWR; Integral with Reinforced Masonry Walls PART. ENCL = PARTIALLY ENCLOSED 404. POLICY PREMIUM SURCHARGES A. Seasonal/Secondary Property Factor

A factor of 1.30 is applicable, if the insured dwelling is seasonal/secondary property with continuous un-occupancy for three or more consecutive months during any twelve (12) month period. A factor of 1.20 is applicable, if the insured dwelling has a full-time, year-round, live-in care taker.

B. Rented to Others Factor

A factor of 1.25 is applicable, if the insured dwelling is rented to others by the insured.

C. Vacancy Factor A factor of 1.30 is applicable, if the insured dwelling is to be vacant for more than 30 days.

D. Mid-term changes are allowed under this section.


12/25/2015 HW2–HV 28

405. MANDATORY ADDITIONAL CHARGES A. Managing General Agency (MGA) Fee - $25.00 per policy. B. Other surcharges may be levied in accordance with state statute or Office of Insurance Regulation rule (i.e.,

Weston Policyholder Surcharge, FHCF Surcharge, etc.). These surcharges and their calculations will be disclosed on the Premium Calculation Worksheet if they become applicable.

Note: The premium for any of the “Mandatory Additional Charges” is not commissionable.

SECTION 5. OPTIONAL COVERAGES 500. OTHER STRUCTURES (COVERAGE B) A. Coverage B

The base rates do not include a Coverage B Limit – Other Structures, thus the limit is 0% of Coverage A, unless a limit is selected. However, Coverage B includes replacement cost coverage for Other Structures if any limits are selected.

B. Optional Limits, Coverage B 1. The Coverage B limit may be increased up to a maximum of 25% of Coverage A.

2. And Coverage B may be excluded. When Coverage B is excluded (0% selected), use endorsement –

WIC FL HW2-HV 0412 – Exclusion of Coverage B – Other Structures.

3. The premium adjustment factor for adding Coverage B is listed in the below table: Cov. B - Other Structures Coverage AdjustmentOther Structures Coverage Premium Adjustment

For each 3% of OS of Dwelling Coverage Add 2% of the Base Premium

C. Mid-term Coverage B increases are allowed. 501. PERSONAL PROPERTY (COVERAGE C) A. Basic Limits, Coverage C

The policy automatically provides Coverage C - Personal Property basic limits of 50% of Coverage A at Actual Cash Value.

B. Replacement Cost, Coverage C

A factor of 1.15 is applicable, if the applicant requests Replacement Cost Coverage for Coverage C subject to the below rules.

1. When Replacement Cost Coverage is written on form WIC FL HW2-HV, Coverage C must be written at

an amount no less than 25% of Coverage A.

2. To add this coverage, use endorsement WIC FL HW2-HV 0490 - Personal Property Replacement Cost Loss Settlement.

C. Optional Limits, Coverage C

1. Optional increased or decreased limits are available ranging from a minimum of 15% up to a maximum of




12/25/2015 HW2–HV 29

75% of the Coverage A limit of liability for Personal Property Coverage.

2. Coverage C may only be excluded subject to F.S. 627.712.3. When Coverage C is excluded (0% selected), use endorsement – WIC FL HW2-HV CO-1, Request to Exclude Contents Coverage.

3. To increase or decrease the limit of Personal Property Coverage, use the below table:

Personal Property Coverage Premium Adjustment

For each 3% of Contents above 50% of Dwelling Coverage; For each 2% of Contents below 50% of Dwelling Coverage

Add 1% of the Base Premium; Subtract 1% of the Base Premium

Cov. C - Personal Property Coverage Adjustment

D. Mid-term Coverage C increases are allowed. 502. LOSS OF USE (COVERAGE D) A. Basic Limit, Coverage D

The base premium includes a Coverage D – Loss of Use limit of 20% of the Coverage A limit of liability. This coverage may only be decreased to a minimum of 5% of Coverage A by the factor listed in the below table for a premium reduction. Increased limits are not available for this coverage.

Cov. D - Loss Of Use Coverage AdjustmentLoss Of Use Coverage Premium Adjustment

For each 3% of Loss of Use below 20% of Dwelling Subtract 1% of the Base Premium

B. Mid-term Coverage D increases up to 20% of Coverage A are allowed. 503. BUSINESS PROPERTY BASIC AND INCREASED LIMITS A. Basic Limits, Business Property

1. The policy automatically provides basic limits for a covered loss to Business Property of $2,500 ACV

when the Coverage C basic limit of liability (Actual Cash Value) is selected or of $10,000 RCV when Coverage C is provided with the Replacement Cost Option.

2. When Coverage C Replacement Cost Coverage is added to the policy, the $10,000 Business Property RCV Limit will appear on the declarations pages and coverage provided on the endorsement – WIC FL HW2-HV 0490BP.

B. Optional Increased Limit, Business Property 1. When Coverage C Replacement Cost Coverage is added to the policy, the $10,000 Business Property

RCV Limit may be increased up to a specified amount.

2. The premium charge for this increased limit is $25 per $2,500 of coverage up to a maximum amount of 25% of Coverage A limit of liability.

3. When Business Property Increased Limit is added to the policy, the increased specified amount will

appear on the declarations pages and coverage provided on the endorsement – WIC FL HW2-HV 0490BP.

C. Weston does not afford any Coverage D – Loss of Use under Business Property.

D. Mid-term coverage increases are allowed for Business Property.




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504. ORDINANCE OR LAW BASIC AND INCREASED LIMITS (WIC FL HW2-HV) A. Basic Limit, Ordinance or Law

The policy automatically provides a basic limit up to 25% of the Coverage A limit of liability to pay costs necessary to comply with the enforcement of an ordinance or law with no premium adjustment.

B. Optional Increased Limit, Ordinance or Law The basic limit may be increased to provide up to 50% of the Coverage A limit of liability. A factor of 1.05 is applicable, if the applicant requests to increase Ordinance or Law limits to 50% of Coverage A.

C. For increased limits, use Endorsement WIC FL HW2-HV 0477 - Ordinance or Law Increased Amount of Coverage. This endorsement is offered for all new policies and at renewal for existing policies.

D. Mid-term endorsements are not accepted.

505. LOSS ASSESSMENT COVERAGE

• Residence Premises The WIC FL HW2-HV policy provides $1,000 of loss assessment coverage for assessments relating to the residence premises. There is no premium adjustment required for this limit of coverage.

The WIC FL HW2-HV limit may not be increased.

506. LIMITED FUNGI, WET OR DRY ROT, YEAST OR BACTERIA (“FUNGI”) COVERAGE Limited insurance coverage to pay for loss to covered real or personal property owned by an insured that is damaged by fungi, wet or dry rot, yeast or bacteria on the "residence premises” as a result of a windstorm or hail may be purchased as an optional coverage for an additional premium. You may purchase limits of $15,000, $25,000, $50,000 or up to the Coverage A Policy Limit for this coverage. Use the below table to determine the premium for this coverage. LIMITED FUNGI COVERAGE PREMIUM DETERMINATION TABLE Limits Premium Limits Premium $15,000 $160 $2,500,000 $2,921 $25,000 $215 $3,000,000 $3,360 $50,000 $280 $4,000,000 $4,280 $700,000 $1,204 $5,000,000 $5,260 $800,000 $1,281 $7,500,000 $7,583 $900,000 $1,396 $10,000,000 $9,015 $1,000,000 $1,504 $15,000,000 $12,167 $1,500,000 $1,951 $20,000,000 $14,636 $2,000,000 $2,550 $25,000,000 $16,421

Use the below interpolation formula to calculate the premium for policy limits not listed in the above table: Limited Fungi Coverage Premium for Coverage A = LP + [(CovA – LL)/(UL – LL)] x (UP – LP) Where: LP = Lower Limit Premium in Table LL = Lower Limit in Table UL = Upper Limit in Table UP = Upper Limit Premium in Table




12/25/2015 HW2–HV 31

Rating Example: Coverage A Limit = $875,000 Lower Limit in Table (LL) = $800,000 Lower Limit Premium (LP) = $1,281 Upper Limit in Table (UL) = $900,000 Upper Limit Premium (UP) = $1,396 Premium for $875,000 = $1,281 + [($875,000 - $800,000)/($900,000 - $800,000)] x ($1,396 - $1,281) = $1,367.20

Endorsement WIC FL HW2-HV LF will be included for any policy where this coverage is specifically purchased. Otherwise, any fungi, wet or dry rot, yeast or bacteria damage resulting from windstorm or hail will be excluded from the insured’s policy. The selected limit for this coverage is the most coverage that will be provided for the total of all losses as a result of a windstorm or hail which occur during the policy period regardless of the number of locations insured for Limited Fungi, Wet Or Dry Rot, Yeast Or Bacteria Coverage or the number of claims made. Any request for limits of $25,000 or more per covered loss may be subject to Weston performing an inspection of the property before limited fungi coverage is applied. If an inspection is performed, coverage will be added to the insured’s policy upon underwriting approval. Note: Increased Limits for limited fungi, wet or dry rot, or bacteria coverage can only be written at new business submission and at renewal effective date. Mid-term changes are not acceptable. This endorsement does not increase the limit of liability for Coverage A. 507. SCREENED ENCLOSURE AND CARPORT COVERAGE Coverage for damage to Screened Enclosures and Carports as a result of a hurricane may be purchased in limits ranging from a minimum of a $5,000 to a maximum of $50,000 in increments of $5,000. Use the below formula to determine the premium for this coverage. Screened Enclosure and Carport Coverage Premium Calculation Formula: = [SEC Coverage Amount / 100,000] x 0.94 x 0.075 x 2.5 x Wind Base Rate x Year Built Factor

Rating Example: Home built in 2002 Territory 1 = Monroe Coverage A = $800,000 Wind Base Rate = $72,759 $25,000 of Screened Enclosure and Carport Coverage Screened Enclosure and Carport Coverage Premium: = ($25,000/100,000) x 0.94 x 0.075 x 2.5 x $72,759 x 1 = $3,205.94 (rounded)

Endorsement WIC FL HW2-HV SE will be included for any policy where this coverage is specifically purchased. Otherwise, any screened enclosure and carport coverage for damage resulting from a hurricane will be excluded from the insured’s policy. Any request for limits of $25,000 or more per covered loss may be subject to Weston performing an inspection of the property before screened enclosure and carport coverage is applied. If an inspection is performed, coverage will be added to the insured’s policy upon underwriting approval. Note: Increased Limits for screened enclosure coverage can only be written at new business submission and at renewal effective date. Mid-term changes are not acceptable.




12/25/2015 HW2–HV 32

SECTION 6. TERRITORY DEFINITIONS 600. WIND ONLY RESIDENTIAL RATING TERRITORIES AND DEFINITIONS Territory numbers (Zones) apply for rating of all wind only residential properties. All descriptions and territory numbers are mutually exclusive. Use the territory number and its description which most accurately describes the location of the risk. NOTE: The following information applies to all Weston "Coastal" counties:

The Coastal Program areas, as described below, correspond to CPIC’s “Wind-Only Eligible Areas,” which were frozen by Florida Law effective March 1, 1997. Incorporations and annexations and other changes by municipalities or cities (with the exception of Cape Canaveral) occurring after March 1, 1997 do not alter the actual physical eligible area as it existed March 1, 1997 (e.g. where a municipality or a city may incorporate additional areas or where a non-eligible area may annex an eligible area).




12/25/2015 HW2–HV 33

Zone Geography Distance from coast1 Monroe Entire County2 Miami-Dade Within 1,000 ft from the salt water

2-B Miami-Dade Between 1,001 ft up to 1mile from the salt water2-C Miami-Dade Over 1 mile up to 5 miles from the salt water2-D Miami-Dade Over 5 miles from the salt water3 Broward Within 1,000 ft from the salt water

3-B Broward Between 1,001 ft up to 1mile from the salt water3-C Broward Over 1 mile up to 5 miles from the salt water3-D Broward Over 5 miles from the salt water4 Palm Beach Within 1,000 ft from the salt water

4-B Palm Beach Between 1,001 ft up to 1mile from the salt water4-C Palm Beach Over 1 mile up to 5 miles from the salt water4-D Palm Beach Over 5 miles from the salt water5 Martin, St. Luce, Indian River Within 1,000 ft from the salt water

5-B Martin, St. Lucie, Indian River Between 1,001 ft up to 1mile from the salt water

5-C Martin, St. Lucie, Indian River Over 1 mile up to 5 miles from the salt water

5-D Martin, St. Lucie, Indian River Over 5 miles from the salt water

6 Brevard, Volusia Within 1,000 ft from the salt water

6-B Brevard, Volusia Between 1,001 ft up to 1mile from the salt water

6-C Brevard, Volusia Over 1 mile up to 5 miles from the salt water6-D Brevard, Volusia Over 5 miles from the salt water7 Nassau, Duval, St. John's, Flagler Within 1,000 ft from the salt water

7-B Nassau, Duval, St. John's, Flagler Between 1,001 ft up to 1mile from the salt water7-C Nassau, Duval, St. John's, Flagler Over 1 mile up to 5 miles from the salt water

7-D Nassau, Duval, St. John's, Flagler Over 5 miles from the salt water

8 Collier Within 1,000 ft from the salt water

8-B Collier Between 1,001 ft up to 1mile from the salt water

8-C Collier Over 1 mile up to 5 miles from the salt water

8-D Collier Over 5 miles from the salt water

9 Lee Within 1,000 ft from the salt water

Territory Definitions




12/25/2015 HW2–HV 34

Zone Geography Distance from coast9-B Lee Between 1,001 ft up to 1mile from the salt water9-C Lee Over 1 mile up to 5 miles from the salt water9-D Lee Over 5 miles from the salt water10 Charlotte, Sarasota, Manatee Within 1,000 ft from the salt water

10-B Charlotte, Sarasota, Manatee Between 1,001 ft up to 1mile from the salt water10-C Charlotte, Sarasota, Manatee Over 1 mile up to 5 miles from the salt water10-D Charlotte, Sarasota, Manatee Over 5 miles from the salt water11 Pinellas, Pasco, Hernando, Citrus, Levy Within 1,000 ft from the salt

11-B Pinellas, Pasco, Hernando, Citrus, Levy Between 1,001 ft up to 1mile from the salt water11-C Pinellas, Pasco, Hernando, Citrus, Levy Over 1 mile up to 5 miles from the salt water11-D Pinellas, Pasco, Hernando, Citrus, Levy Over 5 miles from the salt water12 Taylor, Dixie Within 1,000 ft from the salt water

12-B Taylor, Dixie Between 1,001 ft up to 1mile from the salt water12-C Taylor, Dixie Over 1 mile up to 5 miles from the salt water12-D Taylor, Dixie Over 5 miles from the salt water

13Jefferson, Wakulla, Franklin, Gulf, Bay, Walton, Okaloosa, Santa Rosa, Escambia Within 1,000 ft from the salt water

13-BJefferson, Wakulla, Franklin, Gulf, Bay, Walton, Okaloosa, Santa Rosa, Escambia Between 1,001 ft up to 1mile from the salt water

13-CJefferson, Wakulla, Franklin, Gulf, Bay, Walton, Okaloosa, Santa Rosa, Escambia Over 1 mile up to 5 miles from the salt water

13-DJefferson, Wakulla, Franklin, Gulf, Bay, Walton, Okaloosa, Santa Rosa, Escambia Over 5 miles from the salt water

14 Hillsborough Within 1,000 ft from the salt water14-B Hillsborough Between 1,001 ft up to 1mile from the salt water14-C Hillsborough Over 1 mile up to 5 miles from the salt water14-D Hillsborough Over 5 miles from the salt water15 Orange Entire county (inland)

16 Hendry, Glades, Okeechobee, Highlands, Desoto, Hardee

Entire county (inland)

17 Polk, Osceola, Sumter, Lake, Seminole, Marion


18 Putnam, Clay, Alachua, Bradford, Union, Baker, Gilchrist


19Lafayette, Suwannee, Columbia, Hamilton, Madison, Leon, Gadsden, Liberty, Calhoun, Jackson, Washington, Holmes





12/25/2015 HW2–HV 35

SECTION 7. WESTON SCORE Weston Score For each policy submission, Weston inputs the associated exposure data into Weston’s rating engine which contains its approved rate rules. The rating engine generates an indicative premium amount for that submission. The exposure information for the policy submission is then geocoded, and individually modeled in one or more hurricane catastrophe models accepted by the Florida Hurricane Commission, using a 10,000 year stochastic simulation for Florida Hurricane losses. This generates simulated events and their associated ground up and gross losses (ground up losses net of policy deductibles and limits), from which Weston builds occurrence and aggregate Exceedance Probability (EP) curves, providing details of the Average Annual Loss (AAL) and Probable Maximal Loss (PML) at various return periods, for the policy submission. Each night, Weston models the in-force portfolio of all bound policies on an aggregate basis (the in-force portfolio from the previous night + any policy submissions bound that business day). This provides a portfolio score that will be used the following business day. Weston Score is the comparison of the portfolio score with and without the addition of an individual policy submission, focusing on that portion of the loss distribution for which rated reinsurers are required to hold risk capital against a modeled loss. Weston seeks to find an optimal portfolio of risks such that if it ceded 100% of those risks to a theoretical “typical” rated reinsurer, and Weston’s portfolio was characteristic of the assumed catastrophe risk of that reinsurer in its “peak zone,” then that reinsurer would expect to generate their target Return on Equity over the long term (disregarding the inherent short-term volatility of losses associated with catastrophe risk). Weston performs this analysis only at the time coverage is requested. Weston does not re-score a policy once it is bound unless the risk characteristics change. Each bound policy becomes part of the portfolio by which future policy submissions will be analyzed. Weston does not change the rate indication as a result of this analysis, rather it makes a binary decision to either provide coverage or decline the submission. Weston does not use any credit scoring in its analysis.

SECTION 8. POLICY PREMIUM CALCULATION When determining any of the rating factors used in the Policy Premium Calculation, use the following rule: When a coverage option or risk characteristic does not apply to an individual risk factor, credit or surcharge, use a factor of 1.000 unless otherwise specified in the HW2 Rating Worksheet or described below. Step 1 - Determine the Combined Tier Factor by multiplying each of the Increased Limit, Year Built, and Size of Dwelling factors from the tables under SECTION 3. INCREASED / DECREASED COV. A LIMITS, YEAR BUILT, and SIZE OF DWELLING FACTORS & BASE RATES together to calculate the Combined Tier Factor. Step 2 - Determine the Zone based upon the location of the dwelling as per SECTION 6. TERRITORY DEFINITIONS. Step 3 - Determine the applicable Base Rates for either Combined Wind or Other Wind & Hail only based upon the Zone of the dwelling as per SECTION 3. INCREASED / DECREASED COV. A LIMITS, YEAR BUILT, and SIZE OF DWELLING FACTORS & BASE RATES. Step 4 - Determine the Cov. A Subtotal by multiplying the Combined Tier Factor in Step 1 by the Base Rates for the Zone. Step 5 - Determine the Coverage Adjustments Subtotals by multiplying Cov. A Subtotal individually by the Coverage Adjustment Credits and Surcharge Factors for any Other Structures (“B”), Personal Property (“C”), and Loss of Use (“D”) Coverages.




12/25/2015 HW2–HV 36

A. Cov. B - Other Structures Coverage Options - Determine a charge, if any, that applies for Other Structures Coverage as per subsection 500. OTHER STRUCTURES (COVERAGE B) OPTIONS (WIC FL HW2-HV) and calculate Cov. B Subtotal.

B. Cov. C - Personal Property Replacement Cost Coverage – Determine a charge, if any, that applies for Personal Property Replacement Cost Coverage per subsection 501. PERSONAL PROPERTY (COVERAGE C) and calculate Cov. C RC Subtotal.

C. Cov. C - Personal Property Increased or Decreased Limits – Determine a charge, if any, that applies for any increased or decreased limits for Personal Property as per subsection 501. PERSONAL PROPERTY (COVERAGE C) and calculate Cov. C Increased/Decreased Limits Subtotal.

D. Cov. D - Loss of Use - Determine a charge, if any, that applies for Loss of Use as per subsection 502. LOSS OF USE (COVERAGE D) and calculate Cov. D Subtotal.

E. Ensure that you applied each Factor or Percentage by each Subtotal in this Step to calculate the Cov. D Subtotal. Refer to the Rating Worksheet to calculate each individual and the combined total of any Coverage Adjustments under this Step. (Use 1.000 for the multiplier if the factor isn’t applicable)

Step 7 - Determine Credits/Surcharges as outlined/defined below:

Credits: A. Construction Type 2 or Construction Type 3 – Determine if either of these constructions types is

applicable by using the rating information in item 401. POLICY PREMIUM CREDITS, and calculate Credit 1 and Credit 2, if any. (Note: You may only apply one credit to one of the construction types.)

B. Building Code Effectiveness Grading – Determine any applicable credit based on the rating information in item 402. BUILDING CODE EFFECTIVENESS GRADING SCHEDULE (BCEGS) and calculate Credit 3.

C. Windstorm Mitigation Credits – Determine the final Mitigation Credit to apply using the rating information located under item 403. WINDSTORM MITIGATION FEATURES and calculate Credit 4.

D. Multiply each of the above applicable credit factors, if any, by the preceding Credits Subtotal, and then calculate each Credit Type’s applicable amount and subtotals. Compute the total credits and the Subtotal After Credit Deductions. Refer to the Rating Worksheet for instructions for how to calculate each individual and the combined total of any Policy Premium Credits under this Step. (If Construction Type 2, Construction Type 3, BCEGS and/or Wind Mitigation Features are not applicable, Enter 1.000 or 0 for each Credit that is not applicable)

Surcharges: A. Seasonal/Secondary Surcharge – Determine the surcharge, if any that applies for Seasonal/Secondary

occupation per subsection 404. POLICY PREMIUM SURCHARGES. B. Rented to Others Surcharge – Determine the surcharge, if any, that applies for a Property Rented to

Others per subsection 404. POLICY PREMIUM SURCHARGES. C. Vacancy Surcharge - Determine the surcharge, if any, that applies for any applicable Vacancy per

subsection 404. POLICY PREMIUM SURCHARGES. D. No Prior Insurance Surcharge - Determine the surcharge, if any, that applies for having No Prior

Insurance per subsection 404. POLICY PREMIUM SURCHARGES. E. Multiply each of the above applicable factors, if any, by the Subtotal After Credit Deductions and calculate

the total surcharges under this Step to determine the Subtotal After Surcharge Deductions. Refer to the Rating Worksheet to calculate each individual and the combined total of any Policy Premium Surcharges under this Step. (Use 1.000 for the multiplier if the factor isn’t applicable)

Step 8 - Determine any Optional Coverage(s) selection(s) as outlined/defined below:

A. Business Property Increased Limit – Determine a charge, if any, that applies for any Business Property Increased Limit exposure as per subsection 503. BUSINESS PROPERTY BASIC AND INCREASED LIMITS then calculate the additional Business Property Premium.

B. Ordinance or Law Basic & Increased Limits - Determine a charge, if any, that applies for Ordinance or Law Basic & Increased Limits as per subsection 504. ORDINANCE OR LAW BASIC AND INCREASED LIMITS and calculate Ordinance or Law Premium.

C. Loss Assessment Coverage – No charge applies for Loss Assessment Coverage as $1,000 coverage is automatically provided and there are no additional coverage option selections either.

D. Limited Fungi, Wet or Dry Rot, Yeast or Bacteria (“Fungi”) Coverage – Determine a charge, if any, that applies for subsection 506. LIMITED FUNGI, WET OR DRY ROT, YEAST OR BACTERIA (“FUNGI”) COVERAGE and calculate the additional premium.




12/25/2015 HW2–HV 37

E. Screened Enclosure Coverage – Determine the premium charge, if any, for screened enclosure coverage as per subsection 507. SCREENED ENCLOSURE AND CARPORT COVERAGE and calculate the additional premium.

F. Calculate the total surcharges by adding each of the above applicable optional coverage premiums, if any, together with the Subtotal After Surcharge Deductions.

Step 9 - Calculate any Wind Deductibles as outlined/described below: A. Determine the applicable Hurricane Deductible Factor or Other Wind or Hail Deductible Factor, as per

subsection 400. WIND DEDUCTIBLES, for the base rates selected in Step 3. B. For Combined Wind Base Rates applied in Step 4, multiply the Subtotal After Surcharge Deductions in

Step 9 by .94 to determine the Hurricane base premium, and then multiply the Combined Wind premium in Step 10 by .06 to determine the Other Wind or Hail base premium. Determine the applicable deductible under section 400. WINDSTORM DEDUCTIBLES and then multiply both the Hurricane Base Premium and the Other Wind or Hail Base premium by the applicable factors.

C. Total the Hurricane premium and the Other Wind or Hail premium together to determine the Subtotal Policy Premium.

D. Round the Subtotal Policy Premium to the nearest whole dollar. Step 10 - Determine any Mandatory Charges, if applicable, as per 405. MANDATORY ADDITIONAL CHARGES

to apply to the Policy Premium Subtotal. Step 11 - Calculate the total Mandatory Charges in Step 10 and then subtract from Subtotal Policy Premium in

Step 9 to determine the Total Policy Premium.

END OF MANUAL




12/25/2015 HW2–HV 13

SECTION 3. INCREASED/DECREASED COVERAGE A LIMITS, YEAR BUILT, and SIZE OF DWELLING FACTORS & BASE RATES

300. INCREASED/DECREASED COV. A LIMITS, YEAR BUILT & SIZE OF DWELLING FACTORS

A. The INCREASED/DECREASED COV. A LIMITS FACTORS are the first set of factors used in determining the POLICY PREMIUM.

Mid-term Coverage A increases are allowed.

The I/D Limits Factors are multipliers that are applied to the amount of Coverage A selected. To determine the appropriate multiplier, follow the steps listed below:

Step 1 - Divide the selected Coverage A limit by $1,000,000 to determine the Increase or Decrease (I/D) Factor. Step 2 - Determine if the I/D Factor is greater or less than 1. Step 3 - If the I/D Factor is less than 1, add the I/D Factor to the following formula (1-I/D Factor*0.1316) Step 4 - If the I/D Factor is greater than or equal to 1, add the I/D Factor to the following formula (1-I/D Factor*0.0467045) Step 5 - Round the result of Steps 3 or 4 to 3 decimal places to determine the final Increased or Decreased Limits Factor.

E.G. If a $900,000 Cov. A limit is selected, then the Increased/Decreased Limits Factor would be calculated as follows: =$900,000 / 1,000,000 = 0.9 =0.9 < 1 =.9 + {(1 - .9) * 0.1316} = .913 (rounded to 3 decimal places)

E.G. If a $3,000,000 Cov. A limit is selected, then the Increased/Decreased Limits Factor would be calculated as follows:

=$3,000,000 / $1,000,000 = 3 =3 > 1 =3 + {(1-3) * 0.0467045} = 2.907 (rounded to 3 decimal places)



WESTON INSURANCE COMPANY

WIND ONLY HOMEOWNERS High Value Voluntary Program

12/25/2015 HW2–HV 26

None 0.11 0.14 0.55 0.56 0.07 0.10 0.33 0.36



None 0.49 0.50 0.72 0.73 0.28 0.30 0.53 0.54



None 0.49 0.50 0.72 0.73 0.30 0.32 0.53 0.55



None 0.49 0.51 0.72 0.73 0.30 0.33 0.53 0.55



None 0.18 0.20 0.57 0.57 0.15 0.18 0.35 0.37



None 0.70 0.71 0.78 0.79 0.46 0.48 0.66 0.68



None 0.73 0.74 0.78 0.79 0.58 0.61 0.71 0.74



None 0.73 0.75 0.78 0.79 0.63 0.67 0.72 0.76



None 0.18 0.20 0.57 0.57 0.15 0.18 0.35 0.37



None 0.70 0.72 0.78 0.79 0.46 0.48 0.66 0.69



None 0.74 0.76 0.78 0.79 0.60 0.63 0.72 0.76



None 0.74 0.76 0.78 0.79 0.68 0.74 0.73 0.78



None 0.82 0.82 0.82 0.82 0.80 0.80 0.80 0.80



SWR NO SWR SWRROOF COVERROOF DECK

ATTACHMENT

ROOF-WALL

CONNECTIONOPENING PROTECTION NO SWR SWR NO SWR SWR NO SWR

OTHER HIP

ROOF SHAPE

WINDSTORM LOSS REDUCTION CREDITS (Ctd.)

2. WIND PREMIUM CREDITS FOR EXISTING CONSTRUCTION (ROOF COVER - FBC EQUIVALENT)

CLIPS



A (6d @ 6" /

12")

FBC

EQUIVALENT

DOUBLE

WRAPS

HIP

ROOF SHAPE

OTHER

REINFORCED CONCRETE ROOF DECK

SINGLE

WRAPS

TOE NAILS

FBC

EQUIVALENT

C (8d @ 6" / 6")

AND

D (8d @ 6" / 6")

DIMENSIONAL

LUMBER DECK

CLIPS

SINGLE

WRAPS

DOUBLE

WRAPS

TOE NAILS

CLIPS

SINGLE

WRAPS

DOUBLE

WRAPS

B (8d @ 6" /

12")

FBC

EQUIVALENT

TOE NAILS



WESTON INSURANCE COMPANY

WIND ONLY HOMEOWNERS High Value Voluntary Program

12/25/2015 HW2–HV 27

WINDSTORM LOSS REDUCTION CREDITS WIND PREMIUM CREDITS FOR NEW CONSTRUCTION

NO SWR SWR NO SWR SWR NO SWR SWR NO SWR SWR

B 100 ≥100 ENCLOSED NO 0.68 0.69 0.74 0.74 0.78 0.79 0.81 0.81

B 110 ≥110 ENCLOSED NO 0.72 0.73 0.78 0.78 0.78 0.79 0.82 0.83

B ≥120 ≥120 ENCLOSED NO 0.74 0.75 0.79 0.79 0.78 0.78 0.82 0.82

B OR C

HVHZ≥120 ≥120 ENCLOSED / PART. ENCL YES 0.77 0.80 0.82 0.84 0.81 0.83 0.85 0.86

ENCLOSED YES 0.00 0.00 0.82 0.84 0.00 0.00 0.85 0.86

B ANY ENCLOSED NO 0.81 0.81 0.85 0.85 0.81 0.81 0.85 0.85

B ANY ENCLOSED / PART. ENCL YES 0.82 0.82 0.85 0.85 0.82 0.82 0.85 0.85

C ANY ENCLOSED / PART. ENCL YES 0.81 0.81 0.89 0.89 0.81 0.81 0.89 0.89

HVHZ ENCLOSED YES 0.89 0.89 0.89 0.89

FBC = FLORIDA BUILDING CODE

SWR = SECONDARY WATER RESISTANCE

WINDOWS OR ALL

REINFORCED

CONCRETE ROOF

DECK


FBC 2001 CONSTRUCTION OTHER ROOF SHAPE HIP ROOF SHAPE

OTHER ROOF

DECK OR

DIMENSIONAL

LUMBER DECK

FBC WIND

SPEED

(MPH)

WIND

SPEED OF

DESIGN

(MPH)

WBDR

NO OPENING

PROTECTION

OPENING PROTECTION OPENING PROTECTION

INTERNAL PRESSURE

DESIGN

NO OPENING

PROTECTION

WINDOWS OR ALL

TERRAIN

EXPOSUREROOF DECK

HVHZ = HIGH VELOCITY HURRICANE ZONE (Miami-Dade and Broward counties, FBC sections 202 AND 1611ff)

WBDR = WIND BORNE DEBRIS REGION

REINFORCED CONCRETE ROOF DECK includes SWR; Integral with Reinforced Masonry Walls

PART. ENCL = PARTIALLY ENCLOSED

404. POLICY PREMIUM SURCHARGES

A. Seasonal/Secondary Property Factor

A factor of 1.30 is applicable, if the insured dwelling is seasonal/secondary property with continuous un-occupancy for three or more consecutive months during any twelve (12) month period. A factor of 1.20 isapplicable, if the insured dwelling has a full-time, year-round, live-in care taker.

B. Rented to Others FactorA factor of 1.25 is applicable, if the insured dwelling is rented to others by the insured.

C. Vacancy FactorA factor of 1.30 is applicable, if the insured dwelling is to be vacant for more than 30 days.

D. Mid-term changes are allowed under this section.



Florida Office of Insurance Regulation...roofing contractor showing estimated age, condition and...

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