GENERAL INFORMATION TYPES OF HOMEOWNER'S …

GENERAL INFORMATION

Homeowner's insurance is not required by law in Hawaii. Your lender, however, may require insurance on your home for the duration of your mortgage. Homeowner's insurance provides protection for your dwelling, personal property, and on-site buildings if damaged or destroyed by a covered peril. Perils are events (i.e. fire and explosion) which cause damage to property. Aside from property coverage for your home and outbuildings, each policy usually contains four additional coverages: personal property, additional living expenses, personal liability, and medical payments.

This guide provides a general overview of homeowner's insurance in Hawaii and is not intended to replace reviewing your policy. Keep in mind, insurers may have varying definitions of policy language and charge different rates for the same coverage. We encourage you to review your policy with your insurance agent to ensure your current provisions best suit your coverage needs.

TYPES OF HOMEOWNER'S INSURANCE POLICY FORMS While coverage descriptions may vary, most insurers use one or more of the following policy forms. Comprehensive Form (HO-5), not listed, provides the broadest coverage but is uncommon.

BASIC FORM (HO-1)

HOMEOWNER'S POLICY FORMS BROAD FORM (HO-2)

SPECIAL FORM (HO-3)

Named peril coverage: fire, lightning, windstorm excluding hurricane, hail, explosion, vandalism or malicious mischief, damage by vehicles, aircraft

and riots. Since few homeowners select this limited policy, many

insurers no longer offer Form HO-1.

In addition to the Basic Form (HO-1) coverages, this form also insures a

home and personal property for collapse or damage from falling trees and other objects, and (under certain

conditions) from steam and water damage.

Open peril coverage excluding the following: flood, surface water, sewer backups, tidal waves, earthquakes, landslides, war, nuclear radiation, and

hurricane. Personal property only covered for the same perils as the

Broad Form (HO-2).

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Generally, as coverage increases so does your premium

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RENTER'S POLICY FORM CONTENTS BROAD FORM (HO-4)

This policy provides renters personal property protection against the same perils as the Broad Form (HO-2) and includes personal liability protection.

Unlike the other policy forms, the renter's HO-4 form only incorporates

coverages C through F.

UNIT-OWNER'S POLICY FORM

CONDO OWNERS FORM (HO-6)

This condominium and townhouse unit owners form offers coverage for personal property and interior finishes.

The condo association typically purchases a separate policy that

covers the building (including common walls and grounds) and

associated liability.

POLICY COVERAGES Every homeowner's policy (except for HO-4) includes the following six coverages. If your policy's standard coverage is inadequate, endorsements may offer specialized coverage to meet your needs.

Sec II Section I

Coverage A: Coverage B: Coverage C: Coverage D:

Covers main house damage. The coverage limit is typically set at or near the replacement cost of the home. For Condo Unit-Owners (HO-6), limit usually the declared value by insured. Covers damage to other structures on the lot, such as detached garages/carports and storage sheds. Covers damage to or loss of personal property. Covers additional living expenses (incurred by the insured) to continue the "normal" standard of living when the house cannot be occupied due to a covered loss.

Coverage E: Covers personal liability exposures. Protects against a claim/lawsuit resulting from (non-auto & non-business) bodily injury or property damage to others caused by your negligence. Coverage F: Regardless of who is at fault, this coverage pays for reasonable medical expenses for persons (other than you or residing family members) accidentally injured on your property.

TYPES OF VALUATION Replacement cost is the amount necessary to replace, rebuild, or repair your home/property without deducting for depreciation. Depreciation is the decrease in an asset's value due to age, obsolescence, and/or "wear and tear." Many insurers require policyholders to insure their homes for at least 80% of its replacement value.

Actual cash value (ACV) is the cost to replace, rebuild, or repair your home/property after deducting for depreciation. Most homeowner policies cover personal property on an ACV basis.

PREMIUM DEVELOPMENT CONSIDERATIONS (VARIES BY INSURER) Your premium may be based on, but not limited to, the following factors: type of construction, loss prevention devices, public protection class, deductible level, amount of insurance, and policy form.

BUYING INSURANCE FOR YOUR HOME The key to insurance comparison shopping is identifying your desired deductible levels, coverage limits and provisions before getting premium quotes. Once your ideal policy parameters are selected, the quotes you receive should be on an "apples to apples" comparative basis. After obtaining multiple premium quotes, your personal preference dictates the importance of the following considerations: premium cost, service and financial stability. Generally, financial ratings from reputable sources (i.e. A.M. Best and Moody's) indicate an insurance company's financial "heath" and ability to pay claims. Note: if your agent only represents one insurance company, you may need to contact an independent agent to obtain competing quotes.

SAMPLE ANNUAL HOMEOWNERS INSURANCE PREMIUMS - OAHU

The Hawaii Insurance Division of the Department of Commerce and Consumer Affairs provides this sample premium comparison of licensed insurance companies transacting Homeowners insurance in Hawaii as part of our continuing effort to assist and educate consumers.

OAHU - SAMPLE ANNUAL HOMEOWNERS PREMIUMS

OAHU - SAMPLE ANNUAL HOMEOWNERS HURRICANE PREMIUMS

HO POLICY (HO-3) ASSUMPTIONS

Coverage A: $300,000 B: 10% of Coverage A C: 50% of Coverage A (ACV) D: 20% of Coverage A

Section II (Liability): $300,000 Deductible: $500 Rates effective as of December 1, 2017

Year Built: Construction:

Roof:

Elevation: Add'l Factors:

NAIC Co. Code

Insurance Company

10805 28487 12502 10861 11689 10759 37265 21105 10938 22853 41742 21113 15598 22845 41734 41726 25180 12767 25143 31348 29068 19232 23035 13056 12873 19615 26298 25941 21253 25968 20281 20346 18600 25623 25658

American Pacific Insurance Company Farmers Insurance Hawaii, Inc. Dongbu Insurance Company, Ltd. Universal Property & Casualty Ins. Co. Island Premier Insurance Company, Ltd. Universal North America Ins. Co. DTRIC Insurance Company Ltd North River Insurance Co. First Security Insurance of Hawaii, Inc. Tradewind Insurance Co., Ltd. First Insurance Company of Hawaii, Ltd. United States Fire Insurance Co. Interinsurance Exchange of the Auto Club Island Insurance Company, Limited First Indemnity Insurance of Hawaii, Inc. First Fire and Casualty Insurance of Hawaii, Inc. Stillwater Insurance Company Hawaiian Insurance & Guraranty Company Ltd. State Farm Fire and Casualty Company CRUM & FORSTER INDEMNITY CO IDS Property Casualty Insurance Allstate Insurance Company Liberty Mutual Fire Ins. Co. RLI Insurance Company Privilege Underwriters Reciprocal Exchange American Reliable Insurance Company Metropolitan Property & Casualty Insurance Co. United Services Automobile Association Garrison Property and Casualty Ins. Co. USAA Casualty Insurance Co. Federal Insurance Company Pacific Indemnity Company USAA General Indemnity Co. The Phoenix Insurance Company The Travelers Indemnity Company

DWELLING CHARACTERISTICS

1974 Wood (Single-wall) Hip, asphalt shingle

1994 Wood (Double-wall) Gable, asphalt shingle

15' above sea-level Primary residence No claims in 5 yrs.

15' above sea-level Primary residence No claims in 5 yrs.

Public Protection Class* Public Protection Class*

3

10

3

10

306 361 242 294 300 377 361 364 366 393 407 414 433 464 476 476 506 498 508 559 563 574 598 644 614 666 715 1077 1088 1088 1310 1310 1367 1810 1810

464 539 315 412 413 689 395 506 518 546 576 574 524 642 674 674 636 686 600 777 563 489 752 914 1042 926 993 1233 1229 1229 2347 2347 1566 2534 2534

215 221 242 268 300 345 361 364 366 393 407 414 433 464 476 476 478 498 508 559 560 574 598 644 647 666 715 1077 1088 1088 1295 1295 1367 1810 1810

341 342 315 376 413 627 395 506 518 546 576 574 524 642 674 674 600 686 600 777 560 489 752 914 1100 926 993 1233 1229 1229 2320 2320 1566 2534 2534

1988 Masonry (CMU) Flat, torched membrane

15' above sea-level Primary residence No claims in 5 yrs.

Public Protection Class*

3

10

306 361 242 243 271 317 361 364 366 356 407 414 342 419 476 476 478 498 441 559 566 543 517 550 577 666 844 1393 1506 1400 1310 1310 1740 1810 1810

457 539 315 340 413 627 395 506 518 546 576 574 431 642 674 674 600 686 521 777 566 466 666 779 992 926 1175 1601 1699 1593 2347 2347 2000 2534 2534

Hurricane insurance supplements your homeowner's policy by covering property damage due to hurricanes. For information about homeowner's hurricane insurance, please visit dcca/ins/hurricane-insurance.html

HURRICANE POLICY

DWELLING CHARACTERISTICS (same as HOMEOWNERS)

Replacement Cost: $300,000 Deductible: DED (below)

Rates effective as of December 1, 2017

Construction: Wind R Devices: R = Resistive

Wood (Single-wall) None

Wood (Double-wall) Hurricane roof clips Foundation anchors

Masonry (CMU) Hurricane roof clips

NAIC Co. Code

Insurance Company

DED

Premium ($)

Premium ($)

Premium ($)

11932 12873 10887 11026 19615 12502 10799 20338 37273 10861 10759 12573 25180 12767 15598 25968 21253 25941 25143 18600 29068 13056 25623 25658

White Pine Insurance Company

2%

Privilege Underwriters Reciprocal Exchange

2%

Coastal Select Insurance Company

2%

Zephyr Insurance Company

2%

American Reliable Insurance Company

2%

Dongbu Insurance Company, Ltd.

2%

GeoVera Insurance Company

2%

Palomar Specialty Insurance Company

2%

AXIS Insurance Company

2%

Universal Property & Casualty Ins. Co.

2%

Universal North America Ins. Co.

2%

Centauri Specialty

2%

Stillwater Insurance Company

2%

Hawaiian Insurance & Guraranty Company Ltd. 2%

Interinsurance Exchange of the Auto Club

2%

USAA Casualty Insurance Co.

2%

Garrison Property and Casualty Ins. Co.

2%

United Services Automobile Association

2%

State Farm Fire and Casualty Company

2%

USAA General Indemnity Co.

2%

IDS Property Casualty Insurance

5%

RLI Insurance Company

2%

The Phoenix Insurance Company

2%

The Travelers Indemnity Company

2%

1368 1554 1593 1682 560 1620 2113 1687 2510 1973 2233 1700 906 1808 1887 1931 1931 2056 1488 2511 1921 2407 2446 2446

319 436 443 444 493 564 569 656 743 753 759 836 906 943 953 1046 1046 1114 1194 1360 1670 2206 2446 2446

348 663 408 474 385 584 540 437 914 608 736 638 496 610 755 1195 1195 1273 1101 1554 1445 2152 2446 2446

DNW = Does Not Write

NAIC Co. Code

Insurance Company

14432 30104 18279

Family Security Insurance Company Hartford Underwriters Insurance Company Bankers Standard Insurance Company

Public Protection Class*

3

10

1199 1687 1651

N/A 1855 2362

OAHU - SAMPLE HOMEOWNERS WITH HURRICANE COVERAGE INCLUDED

Assumptions and Dwelling Characteristics Same as Above

Public Protection Class* Public Protection Class*

3

10

3

10

899 1518 1651

N/A 1670 2362

850 1737 1562

N/A 1911 2096

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