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AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYUNDERWRITING MANUALTABLE OF CONTENTSI.INTRODUCTION- Corporate Profile- Phone Numbers and Address InformationPAGE111II.BINDING REQUIREMENTS2III.NON BOUND APPLICATIONS2IV.REPLACEMENT COST2V.CONSTRUCTION DEFINITIONS2-3VI.UNACCEPTABLE RISKS3-77-8VII.PROTECTION CLASSES 9 & 10VIII.RENTAL POLICIES8IX.IN HOME BUSINESS8X.POLICY COVERAGE LIMITS9XI.DEDUCTIBLES10XII.OPTIONAL COVERAGES / LIMITSOTHER STRUCTURESPERSONAL PROPERTYPERSONAL LIABILITYMEDICAL PAYMENTSLOSS ASSESSMENTCONDO OWNERS: ADDITIONS & ALTERATIONFIRE DEPARTMENT COVERAGEBUILDING ORDINANCE OR LAW COVERAGEMOLD COVERAGESINKHOLE COVERAGEBACK UP OF SEWER AND DRAINANIMAL LIABILITY COVERAGEGOLF CART COVERAGESCREENED ENCLOSURES AND SCREENED ROOMSIDENTITY THEFT OR IDENTITY FRAUDSCHEDULED PERSONAL PROPERTYXIII.DISCOUNTS15-21WIND MITIGATIONBUILDING CODE EFFECTIVENESS GRADING55 YEARS OF AGEFIRE RESISTIVEPERSONAL PROPERTY EXCLUSIONWINDSTORM OR HAIL EXCLUSIONWATER DAMAGE EXCLUSIONLIMITED WATER DAMAGEPROTECTIVE DEVICES (SPRINKLERS, ALARMS )GATED COMMUNITYNEW LATIONS23XVI.RENEWALS / NON RENEWALS24XVII.ENDORSEMENTS24XVIII.POLICY S25AI 03 201012 FL Homeowner Manual-i-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYXXII.WIND MITIGATION CREDIT WORKSHEETXXIII.INDEXAI 03 201012 FL Homeowner Manual2627-28- ii -
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYI.INTRODUCTIONImportant Phone Numbers and Address InformationMain Phone NumberClaims:Billing:Customer Service:Marketing/Software Support:Option 1Option 2Option 3Option 4Claim Reporting Hot Line:Software Help Desk:Fax Numbers:- Administration/Marketing- Underwriting (Including Endorsements)- Claims-BillingAgency Supplies:Marketing Reps:Address:AI 03 201005 FL Homeowner ManualPAYMENTS:-1-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYII.BINDING REQUIREMENTS1. The dwelling must not be located in a restricted area or zip code, or conflict with Avatar’s generalrules and under writing guidelines.2. Proof of continuous prior Homeowners coverage must accompany the application. Risks with lapsesin coverage cannot be bound without prior underwriting approval. Exception may be made for firsttime home buyers.3. The risk must be insured for 100% of the replacement cost, be well kept, and meet the requirementslisted on the following pages.4. Applications must be complete, signed by the applicant, and the premium collected by the agent,unless a new purchase. If a new purchase, the closing agent may collect premium and forward tocompany within 10 days. Incomplete applications are unacceptable. Flat cancellations are notallowed unless the insured fails to close on the new purchase.5. The dwelling must be one family and owner occupied.6. Dwellings for sale, under renovation or under construction are not eligible.7. Two photos are required for any dwelling with a replacement cost less than 150,000.8. The named insured must be an individual or an individual and resident spouse to be eligible.9. Policies listing any insured with a prior criminal conviction are not eligible.III.NON BOUND APPLICATIONSWhen submitting a non bound application:1. Accept no money, and do not have the applicant sign the application.2. Policy will be bound only when accepted by Avatar.IV.REPLACEMENT COST1. Use the Avatar replacement cost software to determine exact replacement cost. The policy must bewritten for Full Replacement Cost. Use ISO’s 360 Value found in our rating system.2. Please assure rating information drawn automatically from the county property appraiser’s websitesis accurate. In-ground pools and spas must be added to the valuation in the “Additional Features”section.3. Avatar is not required to provide coverage in excess of replacement cost to meet or satisfy mortgagelenders or mortgage loan requirements. (Refer to F.S. 626.9551 and F.A.C Rule 4-167.009)V.CONSTRUCTION DEFINITIONSFrameExterior wall of wood or other combustible construction, including wood ironclad, stucco on wood or plasteron combustible supports. Frame dwellings must be built in 2002 or newer (and conform to FBC 2001) to beeligible for coverage. See the following page for acceptability requirements for frame homes built prior to2001.AI 03 201005 FL Homeowner Manual-2-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYMasonry VeneerExterior walls of combustible construction veneered with brick or stone. Masonry Veneer is rated as Frame.MasonryExterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum, block, hollowconcrete block, stone, tile or similar materials.Mixed Masonry/FrameA combination of both frame and masonry construction is classified as frame when the exterior walls offrame construction (including gables) exceed 33.3% of the total exterior wall area.Fire ResistiveExterior walls of masonry or reinforced concrete with floors and roof of brick or tile arches, reinforcedconcrete, poured or precast concrete slabs or similar types of fire resistive or noncombustible supports.The floor slab must be on non combustible supports.Roof ShapeHip – Roof having sloping ends and sloping sides down to the eaves line.Gable – The portion of the roof above the eaves line of a double-sloped roof; the end section appears as aninverted V.Flat – A horizontal roof with a pitch less than 10 degrees.Predominant Roof Shape - To determine the roof shape, use the following standards:Porches or carports that are attached only to the fascia or wall of the host structure and notstructurally connected to the main roof system are not considered in the roof geometrydetermination.HIP roofs must not have any other roof shape greater then 10% of the total building perimeter.Non-Hip roof is any other roof shape or combination of roof shapes including hip, gable,gambrel, mansard and other roof shapes not including flat roofs.Flat Roof greater than 100 square feet or 10% of the entire roof, whichever is greater.Where 4-point or other inspections are required per the guidelines in this manual, the inspection must be lessthan 1-year old, completed for the applicant of insurance and must demonstrate no deficiencies. The policymay not be bound by the agent until the company has given written approval.Wind Mitigation Inspections are good for 5-years per statute.VI.UNACCEPTABLE RISKSHOUSES1. Houses greater than 40 years old unless the house has been completely updated for electrical,plumbing, and heating / cooling to current state and local building codes. The application for homesAI 03 201005 FL Homeowner Manual-3-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYgreater than 40 years old must be submitted non-bound, with a complete four (4) point inspection, forunderwriting approval.2. Houses that have been vacant for more than 30 days.3. The roof must be in acceptable condition. Shingle: 15 years old and be in visibly good condition.Roofs that are not in visibly good condition will have patchwork and may have cracks, brokentabs, buckling, curling or blistering of the tabs, and tabs with most of the surface granules wornoff. These are signs of aging and are indicators that there will be shingle loss during high winds.Shingles that are in good shape should lie flat and the lower edges should be well adhered to thetop surface of the shingle below. Tile roofs: 25 years old and be in visibly good condition. Metal roofs: must be submitted non-bound and are subject to pre-inspection.4. Houses with Built-up, Flat, or Low Pitch roofs.5. Houses with unconventional material or construction design, or structures not originally intended asa dwelling. (Unconventional examples include steel or sod materials and Geodesic or Quonset).6. Houses with EIFS (Exterior Insulation and Finish Systems) as the exterior wall material.7. Houses with asbestos siding.8. Frame houses built before 2002 must have ALL EXTERIOR wall and roof openings such as doors(including garage doors), windows, skylights, and vents fully protected with storm shutters asoutlined on page 18, or retrofitted to meet the windstorm mitigation elements of the 2001 FloridaBuilding Code for opening protection. These risks must be submitted non-bound with documentationfrom a licensed building inspector or professional engineer verifying the opening protection and afour-point inspection showing all systems meet our guidelines for acceptability.9. HO-4 and HO-6 risks are not eligible in Frame buildings.10. Houses with galvanize plumbing components.11. Houses with knob & tube or aluminum wiring.12. Houses with flood break away walls.13. Houses with room additions after the original structure was completed require prior Underwritingapproval. (For consideration to be given, additions must meet current state and local building codes.)Submit non-bound with interior and exterior photos, building permits with final inspections andphotos.14. Mobile Homes, Duplexes, Log homes and Manufactured or Prefabricated homes.15. Townhouses without structural firewalls extending above the roof line between each unit. Thetownhouse must be of Masonry construction. In addition photos showing the firewall above the roofline are required.16. Houses that are for sale, in the course of construction, or are in isolated areas.17. Houses with open foundations or crawl spaces.18. Houses with wood burning & coal stoves; freestanding, freestanding with inserts & open fireplaces;kerosene, base-board heating, gas & electric space heaters.19. Houses with Chinese drywall or other defective materials.AI 03 201005 FL Homeowner Manual-4-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY20. Houses built on pilings, stilts, over water or floating homes.21. Houses that had a foreclosure within the past three (3) years must have a four (4) point inspection forthe electrical, plumbing, and heating / cooling systems completed and submitted with the applicationnon-bound for underwriting approval.22. Houses with more than two mortgages.23. Premium financed policies.24. Houses with existing damage.25. Houses with burglar bars which do not have a “quick release” feature.26. Houses located in an AE Zone (Flood) which do not carry a separate flood policy.27. Houses with over hanging tree branches or trees in declining health.UNACCEPTABLE EXPOSURES1. Risks with swimming pools, spas and hot tubs not completely fenced or enclosed.2. Risks with swimming pool slides, diving boards and /or trampolines.3. Risks with areas for potentially dangerous sport activities such as archery, target practice, or rockclimbing on premises.4. Risks with Skate Board or Bicycle Ramps or All Terrain Vehicles (ATV’s)5. Risks with business exposures unless incidental to the use of the property.6. Risks with a swimming pool, hot tub, spa, pond or lake on premises if there are any day careservices.7. Risks with commercial exposure such as, but not limited to: farming, manufacturing, or professionalservices. This includes day care nurseries, baby sitting for compensation, tutoring etc.8. Risks with liability extension to rental properties.9. Risks with animal breeding, boarding, training or riding on premises.10. Risks with livestock.11. Risks which have flooded in the past five (5) years.12. Risks exhibiting lack of pride of ownership evidenced by, but not limited to: lack of maintenance;disrepair; peeling paint; landscaping containing junk cars, appliances and interior furniture; lack oflandscaping etc.UNACCEPTABLE ANIMALS1. Pit bulls, American Pit Bull Terriers, Boxers, Bull terriers, Brazilian Mastiffs, English Bulldog,Rottweilers, German Shepherds, Akitas, Chows, Presa Canarios, Great Danes, Dobermans,Doberman Pinschers, Huskies, Straffordshore Terrier, Wolf Hybrids or any mix of any of thesebreeds.2. Horses or saddle animals, exotic animals, zoo animals.3. Animals in excess of 75 lbs, except Golden Retrievers, Labradors and Irish Setters.4. Any animal with a prior biting or attack incident or aggressive in nature.AI 03 201005 FL Homeowner Manual-5-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYUNACCEPTABLE LOCATIONS1. Houses located within 2500 feet of any tidal waters. (Tidal waters include, but not limited to:Atlantic Ocean, Gulf of Mexico, Intercoastal & Intracoastal waterways, bays, harbors, inlets, sounds,canals with direct access to large bodies of water and mouths of rivers).2. Houses located on Barrier Islands.3. Houses located East of I-95 or East of U.S. Highway 1, whichever is more Westerly, in Dade,Broward and Palm Beach Counties unless within the Florida wind pool boundaries.(Houses withinthe Florida wind pool boundaries must be written EX-WIND if otherwise eligible).4. Houses located west of I-75 in Charlotte, Lee and Collier counties.5. Houses located within the Citizens Property Insurance Corporation Wind Only Eligible or Wind PoolAreas are not eligible for wind coverage.6. Houses with a prior sinkhole occurrence.7. Houses on more than 5 acres of land must be submitted non-bound. No more than 10 acres isacceptable. Houses not located along a paved road and set back more than 200 feet from the road.8. Houses within a mile of a brush fire unless the fire has been out for 3 days. Risks located within onehalf mile of brush (thick growth of tree, ground cover, pine trees, palmettos, etc) are not eligible.9. Coverage may not be bound in any area where there is a hurricane or tropical storm watch, warningor occurrence. If there is a disturbance, hurricane or tropical storm located north of 15 latitude,south of 35 north latitude, west of 70 west longitude, and east of 95 west longitude, callunderwriting for binding approval.SECONDARY / SEASONAL RESIDENCESSecondary and/or seasonal residences are eligible only when equipped with central monitoring fire andburglar alarms, main supply water shut-off valves, located outside of the home, and if located within 2miles of any coast must meet FBC 2001 for opening protection. The house must not be located in anisolated area, the owner must agree to activate alarms, turn off water to the dwelling and secure openingprotection prior to traveling to another owned location. In cases of emergencies, the owner must have alocal contact able and willing to perform these requirements in his/her absence.Secondary or seasonal dwellings are defined as being unoccupied two (2) or more consecutive monthsduring any one (1) year period.Rental homes are not eligible.PRIOR INSURANCE1. Risks without 1 year of current homeowners insurance, immediately prior to the Avatar Policyinception are not eligible. (Exception for first time homeowner, new Florida residents and newpurchases).2. Risks that were previously canceled or non renewed, except due to risk reduction or wholesalecancellation by a company leaving the state are not eligible.AI 03 201005 FL Homeowner Manual-6-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYUNACCEPTABLE OCCUPANCY1. Only single family, owner occupied dwellings are eligible for coverage.2. Policies listing someone other than the named insured or resident spouse as the insured, as well aspolicies with more than one individual listed as the named insured.3. Policies listing a Trust or Estate as the insured are not acceptable. (When a living trust exists, thesecan be accommodated by listing the insured c/o name of trust or estate).4. Policies listing corporations, associations etc. as additional insureds.5. Houses with more than one roommate.6. Properties with any rental or second residences on premises.7. Houses with more than six residents8. Transfer or Assignment is not acceptable.PRIOR LOSSES1. Applicants with two or more losses during the past three (3) years and/or three or more losses duringthe past five (5) years are not eligible. Submit non bound with a detailed description of the losses.(Hurricane claims are not considered for renewal eligibility purposes).2. Applicants with any prior liability claim in the past five (5) years are not eligible.3. Risks with any prior theft or vandalism claim that have not installed a Central Station MonitoredBurglar Alarm System.4. Houses with two or more water losses in the past five (5) years are not eligible.5. Houses with any prior sinkhole loss.6. Houses with prior mold and/or fungi claim in the past five (5) years.7. Houses that have experienced total losses, or where policy limits were paid in the past, are noteligible.8. Risks with any prior “Falling Object” claim in the last five (5) years.9. Any applicant with a prior conviction for fraud or any prior claim denied for fraud ormisrepresentation.VII.PROTECTION CLASS 9, & 10Protection class 9 and 10 risks are eligible if all of the following are met:a. Located within 15 minutes of a recognized fire station that would respond to a fire at the insuredlocation and which has tanker trucks capable of carrying water of sufficient capacity for firefighting purposes in that area and;b. Located on a paved road and no more than 200 feet from that road and;c. No prior fire losses and;d. Equipped with smoke detectors and a fire extinguisher on every floor and;e. Not of Frame Construction and;f. The coverage A value is not more than 250,000.AI 03 201005 FL Homeowner Manual-7-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYThe rating software automatically pulls the Protection Class from ISO and may not be changed by the agent.In areas where two or more classifications are shown, (eg 6/9) the classification is determined by the systemas follows:Distance to Fire Station5 road miles or less5 road miles or lessOver 5 road milesVIII.Feet to Fire HydrantHydrant within 1000 feetHydrant over 1000 feetProtection ClassUse first protection class. (e.g. use class 6)Use class 9. (Underwriting approval needed)Class 10. Not Eligible.RENTAL POLICIESA separate renters policy must be written for each adult in the household other than the named insured,spouse and children of either. Adult means age 21 or over. Single renters residing in a single-familydwelling are not eligible.a. Applicants with a prior theft loss in the past 5 years are not eligible.b. Applicants who have been previously canceled, non-renewed or had insurance refused by anotherinsurer are not eligible unless wholesale cancellation by a company leaving the state.c. Do not bind any applicant with items to be scheduled without prior underwriting approval.d. Applicants with a roommate are not eligible unless the roommate meets all of the foregoingrequirements and separate policies for each are written with Avatar Insurance. No more than twooccupants (one roommate) are acceptable.IX.IN HOME BUSINESSThis optional coverage provides property and liability coverage for Homeowners and Condominiumowners with an acceptable In Home Business. The limit of liability must be the same as the Coverage Elimit up to a maximum of 300,000. Coverage for physical damage to business property is limited to amaximum of 10,000.a. Acceptable businesses include:ConsultantsCPAResearchWord Processing(The above businesses must have no employees other than immediate family members)b. Unacceptable businesses include (but are not limited to):ArtisanGardenersBusiness with employees other than family membersInstallersChild care providersMasseuseConstruction Trade OccupationsRetail OperationsAnimal Breeders.AI 03 201005 FL Homeowner Manual-8-
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANYX.POLICY COVERAGE LIMITSCOVERAGE CHANGES MAY ONLY BE MADE EFFECTIVE AT THE INCEPTION OF THEPOLICY OR AT THE ANNUAL RENEWALCoverageMinimumHOMEOWNERS (Coverage A) 150,000CONDOMINIUM (Coverage U) 25,000Unit Owners Additions & AlterationsCONDOMINIUM (Coverage C) 25,000RENTERS (Coverage C) 25,000* Limits in excess of these require prior underwriting approval.Coverage A - Dwelling (HO-3)Maximum* 600,000 750,00 if built 2002and newer 50,000 250,000 50,000Limit selected up to 600,000; 750,000 if 2002and newer. (Must be Replacement Cost of Property)Coverage U (Unit Owners
AVATAR PROPERTY AND CASUALTY INSURANCE COMPANY AI 03 201005 FL Homeowner Manual - 2 - II. BINDING REQUIREMENTS 1. The dwelling must not be located in a restricted area or zip code, or conflict with Avatar’s general rules and under writing guidelines. 2. Proof of continuous prior Homeowner
