Residential
&
Commercial Risks

*EXCEPTIONS:

1. Fifteenth day flood coverage waiting period and the five day earthquake coverage waiting periods do not apply when similar coverage, either flood or earthquake or both, to that provided by this insurance contract has been in place up to the inception date of this insurance contract.
2. Fifteenth day flood coverage waiting period does not apply when flood insurance is required as a result of a lender, in connection with the making, increasing, extending, or renewal of a loan, shall be effective at the time of loan closing, provided that the Certificate is applied for and Underwriter approval of the application and the payment of premium is made at or prior to the loan closing.

* Paraphrased from Residential Terms and Conditions Revised 1/1/2005

IS THE POLICY AUTOMATICALLY RENEWED?

The Producer, Insured and Mortgage Company will receive a renewal quote/invoice prior to expiration. If the renewal premium is not received prior to expiration, coverage will cease. Underwriters reserve the right to cancel or non-renew by giving reasonable notice and as may be required by applicable regulations.

WHAT IS COVERED?

Many perils normally not included under a property owner’s standard insurance policy are covered: such as Earthquake*, Flood, and Landslides. Under our personal insurance form, for example, not just the dwelling, but the detached structures, such as a garage or tool shed, and personal contents receive some coverage automatically. Read the Certificate of Coverage for details of coverage and limitations.

*NOTICE: EARTHQUAKE COVERAGE IS NOT PROVIDED FOR RISK LOCATED WITHIN THE STATE OF CALIFORNIA

WHAT PROPERTY QUALIFIES FOR COVERAGE?

Many commercial/business properties may qualify for consideration under the program.  Any private homes, condominiums, and town homes may qualify for consideration, including secondary residences, provided that the program also covers the owner’s primary residence. This includes modular and manufactured homes permanently attached to a foundation, mobile homes resting on wheels are not eligible.

WHAT IS THE DEDUCTIBLE?

For Personal Risks:

The Standard Deductible is 5% of the dwelling value at time of loss for all perils.  You may select the Specified Deductible and change each of the Flood and the Landslide deductibles to $1,000 applying separately to each peril while at the same time making the deductible for Earthquake losses, including Earthquake induced landslides or mudslides, to $2,500 or 5% of the dwelling value, whichever is greater.   These deductibles may be satisfied by damage to building or contents or appurtenant structures, or all three combined.  A $1,000 deductible is applicable to additional living expense claims at all times, regardless of the deductible option chosen.

For Commercial Risks:

Either a 5% or a 10% deductible applies to the insurable values per location at the time of loss for the peril of Earthquake.   The perils of Flood and Landslide (not caused by earthquake) will be subject to a deductible of $2,000 or 2% of insurable values; whichever is greater, applying separately to each location and to each peril.

WHAT AMOUNT OF INSURANCE SHOULD I CHOOSE?

For Personal Risks:

Insure dwellings and business properties for an amount that reflects 100% of the replacement cost, but not less than $50,000. 

The following sub-limits of coverage are provided in addition to the limit of coverage on the building for owner occupied personal dwellings, not insured as commercial property:

When insuring a personal dwelling, you may choose either Standard or Specified limits of insurance.  If you choose Standard insurance, you automatically receive coverage for certain items in addition to the limit you choose on the dwelling at no extra cost. These are:

1.  20% of dwelling amount for building contents, but only up to a maximum of  $75,000.

2. 10% of dwelling amount for appurtenant private structures, such as a garage or shed, but only up to a maximum of  $50,000.  

3. 10% of dwelling amount but only up to a maximum of  $25,000 for additional living expenses.  This would pay the cost of alternative accommodations if your home were rendered uninhabitable by a covered peril.

  If you choose Specified insurance, you will specify/designate the limit of insurance for buildings and contents and appurtenant structures subject to the maximum limits allowed by the program. The limits shown on your homeowners policy may serve as a guide for these items.

For Commercial Risks:

When insuring a business/commercial property you will specify/designate the limit of insurance for each coverage option offered under the program, subject to the maximum limits allowed by the program.

For High Value Properties:

Properties (Commercial and Personal) up to a value of $20 million qualify for our program; however the maximum limit of insurance available under our on-line program is $5 million. So, for combined property values per policy above $5 million, you may purchase a limit of insurance of $5 million and the coinsurance provision normally applicable will be removed from your policy. This unique feature of our program allows access to a method of purchasing coverage, with no coinsurance applying, where the likelihood of losing more than half the values at risk is seen as being low. Properties with values in excess of $20 million can be submitted off-line for consideration, contact CatCoverage.com support for instructions on off-line submissions.

HOW IMPORTANT IS THIS COVERAGE?

Catastrophic loss is very unpredictable. Earthquakes can strike anywhere on earth. Severe rainstorms seem to be more common now than in the past and in recent years flood losses have become common. Landslides are a serious concern in many areas. Your property represents a major investment. Don’t gamble. Submit an application right away and start taking advantage of this valuable protection. 

ADMINISTRATOR – CatCoverage Department at Poulton Associates, Inc.

Telephone: (801) 268-2600 FAX: (801) 268-2674 Toll Free: 1-(888)-POULTON  (1-888-768-5866)

This brochure is intended to provide an overview of the Natural Catastrophe Insurance Program. It does not amend or alter in any way the terms and conditions of the any applicable insurance contract(s).

Rev. 11-21-06