Property Insurance Manual Ontario Region

 
Property
Insurance Manual
 Ontario Region

         Effective: New Business Mar 1, 2020
              Renewal Business Apr 15, 2020
                    Edition Date Jan 19, 2020
Table of Contents
 General Eligibility Rules ............................................................................................................................3
 General Acceptability Guidelines ..............................................................................................................6
 Discounts .................................................................................................................................................11
 Surcharges ..............................................................................................................................................14
 Insurance Score ......................................................................................................................................15
 Homeowners ...........................................................................................................................................16
 Secondary Homeowners .........................................................................................................................20
 Condominium Overview ..........................................................................................................................21
 Tenants....................................................................................................................................................24
 Rental Properties.....................................................................................................................................26
 Seasonal Properties ................................................................................................................................29
 Modular and Mini Modular Homes ..........................................................................................................34
 Liability Coverage ....................................................................................................................................35
 Legal Expense Insurance ........................................................................................................................38
 Endorsements & Optional Coverage.......................................................................................................39
 Group Discount .......................................................................................................................................57
 Rating Territories Ontario ........................................................................................................................59

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General Eligibility Rules

A risk that possesses any of the following attributes will be declined for insurability with
CAA Insurance;
1. Risks which have been cancelled (including for non-payment), lapsed or declined by an
   insurer in the past 5 years.
2. Gaps in insurance coverage.*
                                          *
3. No prior insurance, unless;
      First time home buyer or renter;
      Moving out from their parents’ residence;
      Child of CAA property insured.
      A minimum $1,000 deductible will apply.
4. Risks with a questionable moral hazard.
5. Risks that lack pride of ownership. Includes poor housekeeping and lack of prudent
   maintenance. *
6. Risks with abnormal fire, burglary or liability.
7. Risks which are vacant or unoccupied at new business.
8. Risks in the name of numbered companies, personal business or corporations.
                                                             *
9. Risks with more than two (2) mortgages.
10.Risks where there are more than 2 families (in total) living in a single dwelling.
11.Risks which have commercial exposure, unless an eligible condominium, or tenant risk
   over a commercial occupancy, or the risk falls within the eligibility guidelines of the
   Home - Based Business.
12.Incidental office use operated by a person other than the insured.
13.Risks insured for less than 100% of their replacement cost.
14.Risks where any degree of farming is carried out; hobby farm or otherwise or a risk
   located on a farm.
15.Buildings under construction/major renovation or owned by a contractor/developer for
   future sale.
16.CAA does not insure standalone Seasonal, Secondary and Rental locations.

       *
           Additional information is provided in the Property Insurance Reference Manual.

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17.Owners or Occupants of Rooming, Boarding or Student Housing.
18.Risks not accessible by fire-fighting and emergency services by road year around (e.g.
   Island homes). *
19.Risk ownership on leased land (other than Crown Land).
20.Risks where there is a wood burning stove in a structure other than the Primary
   residence. I.e. garages or detached buildings.
21.Any risk involved in the generation and sale of electrical power to the power grid.
22.Risks where the Asphalt shingles have reached a life span of 25 years.
                                                           *
23.Risks with an In-ground/Buried Oil tank.
24.Risks with a single wall metallic oil tank.
25.Homes under 63.2m2 (680 ft2).              *

26.Primary dwellings must be owner occupied.
27.Properties located within 12.2m (40 feet) of a manufacturing risks or high hazard
   commercial such as a gas or propane refilling station.
28.Babysitting where there is exposure to more than 5 children (including the insured’s
   children) or a licensed daycare. Babysitting or daycare where there is a swimming pool
   or trampoline on the premises is unacceptable.
29.Risks with vicious pets or animals (including guard dogs).*
                                                                   *
30.Risks classified as Heritage or Century Homes.
                                                       *
31.Risks converted to double occupancy.
32.Risks known to be currently or previously involved in marijuana grow operations or
   drug laboratories.
                             *
33.Bracket chimneys.
                             *
34.Open foundations.
                              *
35.Wood foundations.
                                                               *
36.Risks where there is galvanized plumbing.
37.Log Homes.
38.Mobile homes1. *
                                  *
39.Knob and tube wiring.

      *
           Additional information is provided in the Property Insurance Reference Manual.
      1
           Mobile Home - A moveable home that originally included its own running gear and was superseded by
          the modern day manufactured home in the early 90’s.

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*
40.Risks with 60-amp service.
41.Risks with aluminum wiring, unless a hydro certificate is obtained from a licensed
   electrician stating the system meets requirements (completed in the last 24 months).              *

42.Outbuildings or Private structures that are rented out or tenant occupied.

      *
          Additional information is provided in the Property Insurance Reference Manual.

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                                                 Renewal Business Apr 15, 2020
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General Acceptability Guidelines

Binding Authorities
Can be referenced separately through your SharePoint site.

Building Age
   Detached Homes must not be >100 years old.
   Row/Semi-detached homes cannot be built prior to 1955.

Construction Type
Conventional building materials (ONLY) are acceptable and include:
 Aluminum Siding
   Brick
   Concrete Block
   Frame
   Steel Frame
   Vinyl Siding

Fire Protection
CAA Insurance will insure locations which are:
   Hydrant protected (dwellings within 1000 ft.)
   Firehall: (located within 13kms of a Firehall), or
   Unprotected (located more than 13 kms of a Firehall)

Heating Sources
Acceptable Primary Heat Sources
Risk should have standard forced air or electrical heating systems as the primary source
of heating. The following mainstream heat sources are acceptable and include (but are not
limited to):
 Combination Furnaces (Other)
 Combination Furnaces *(Wood/Oil)
 Coal Forced Air
 Electric
 Electric Forced Air
 Furnace with an Add-on wood burning Unit
 Gas Forced Air
 Geothermal Heat
 Heat Pump (acceptability criteria noted below)
 Hot Water Forced Air

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Oil* (inspection requirements and acceptability criteria noted below)
   Other (See note below)
   Outdoor Wood Furnace (acceptability criteria noted below)
   Propane Heat (acceptability criteria noted below)
   Radiant Heat Systems
   Solar Heating
Other primary heat sources not specifically referenced should be referred to underwriting
for consideration.
*Surcharge will apply. Refer to surcharge section for details.
Secondary Heat Sources
The following are secondary sources of heat used to provide additional heat for specific
areas.
Acceptable Secondary Heat Sources
 Fireplace (wood, natural gas and propane)
 Fireplace Inserts *
 Space Heaters *
 Wall Furnaces
 Wood/Corn Pellet Stove *
 Woodstove *
The above are acceptable when the unit is installed to CSA/ULC standards.
*Auxiliary Heat surcharge will apply to the above types. Refer to the surcharge section for
 details.
The maximum amount of wood consumption allowed annually would be: 2 bush cords.
Unacceptable Secondary Heat Sources
   Homemade Stoves
   Kerosene Heaters
Solid Fuel Heating questionnaire must be completed fully and accurately where applicable
and underwriting should be contacted where the unit is not WETT certified or if there are
questions or concerns. Please retain a copy for our records.
Age of Furnaces
All Water or Forced Air furnaces must be less than 30 years old.
Electric Heat
Any location heated with Electrical heat must be wired with 200 - amp service.

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Heat Pumps
A heat pump is an electrical device that extracts heat from one place and transfers it to
another.
We will accept heat pumps as a primary heat source if:
   Professionally installed by certified technician;
   CSA/ULC approved;
   Acceptable up to 20 years old;
   The home would also have an auxiliary heating system that meets our eligibility
    guidelines in addition to the heat pump;
   Required replacement of filters once a month to every three months, depending on
    how often it is used;
   Regular maintenance required annually by a professional;
   Ensure proper air flow. Plants growing near the unit, or any other debris, may have to
    be removed.
Oil Heat
New business risks heated with oil will require an inspection of the oil tank within the first
ninety (90) days of the new term. This will ensure safety standards are met. The
inspection will be arranged at the expense of CAA Insurance. This will be an inspection of
the oil tank only.
Acceptable Oil Tanks
   Composite (Metallic tank with polyurethane inner tank)
   Fibreglass
   Metallic (Double Wall or Double Bottom)
   Plastic
If “Other” is selected as the “Oil Tank Material, more information will be required. Please
refer to Underwriting”.
Oil Tank Location and Maximum Age
The oil tank location may be described as:
Indoor (within the dwelling unit)                                   Maximum Age (in years)
       Fibreglass Construction:                                           40
       All Other Eligible Construction Materials:                         20

Outdoor (outside the dwelling unit, above ground)                   Maximum Age (in years)
       Fibreglass Construction:                                           40
       All Other Eligible Construction Materials:                         15

Outdoor – Underground Oil Tanks – Not written

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Oil Tank Life Expectancy Notes
Fibreglass tanks have the greatest life expectancy.
Composite, and Metallic (double wall or double bottom) have a lower life expectancy but
will normally include a leak detection system that alerts customers of the leak before it
breaks through the second layer of the unit. This gives the customer the necessary
warning allowing them to replace the tank before there is any contamination.
See Reference Manual for Best Practices on oil tank installation.
Propane Heat
Propane heating systems will be accepted provided the following criteria met;
   Tank must be professionally installed by a qualified service technician in accordance
    with Canadian Gas Association standards.
   Tank must be certified by the Canadian Standards Association (CSA) or Underwriters
    Laboratories of Canada (ULC). Many products sold outside Canada do not comply with
    Canadian safety standards
   Propane tanks must be located outside of the building, away from heat or sources of
    ignition (matches, smoking materials, etc.), and in a secure, well-ventilated area.
   Also, must be protected from vehicular impact and off the ground, on a non-
    combustible base.
Solid Fuel Burning Units must be:
   installed by a qualified contractor and cleaned regularly to avoid build-up of creosote
    or other combustible material in the chimney.
   tested and approved and must have a safety standard label affixed to it. The label lists
    clearance requirements around the unit.
   cleaned annually to avoid creosote build-up which would be a fire hazard.
Wood Furnaces
Outdoor Wood Furnaces will be accepted provided the following criteria are met:
   Must be professionally installed by a WETT certified technician;
   Certified by CSA, ULC or Interteck/Warnock Hersey;
   Located a minimum of 15m (50ft) away from the dwelling or any other structures;
   The unit is located inside a structure which is approved for this purpose;
   Installed on a non-combustible surface (permanent pad of concrete or crushed gravel)
    and clear of debris;
   Equipped with a spark arrester cap on the top of the chimney;
   The insured property must be owner occupied. Outdoor furnaces are not acceptable in
    rental dwellings, or tenant policies;
   Must have a back-up heat source in the house;
   Requires that seasoned dry wood be the only source of fuel and that the outdoor wood
    furnace must only be used for heating purposes;
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   No burning of waste/garbage will be allowed;
   Homemade units are not acceptable;
* a photo of the unit is required to show the furnace, the pad it is mounted on, the
  chimney, rain cap and that it is free from debris.

Inspections
CAA may order a:
Full Inspection and/ or an Oil Tank Inspection where the risk meets the conditions
described under the applicable heading.
Full Inspection
A full inspection is required and will be ordered where the risk meets the following criteria:
   dwelling is built prior to 1950; and/or
   dwelling is valued over $900,000.
Oil Tank Inspections
New business risks heated with Oil will require an inspection of the Oil Tank within the
first ninety (90) days of the new term.
The inspection will be arranged at the expense of CAA Insurance.
This will be an inspection of the oil tank only.

Occupancy
A maximum of two (2) non-related persons can be listed as Named Insured on a policy.

Plumbing
Copper and PVC plumbing are acceptable with no issues as to age.
Cast iron is acceptable for outside sewer pipes only.
Kitec plumbing is unacceptable.

Prior Claims
Please see below for acceptability rules for New and Renewal Business based on form
type.
Acceptability for Preferred vs. Regular Homeowner rates will be discussed in later
Chapters.
              Form Type                                  New Business Acceptability
         Homeowner
                                                                 1 claim in 3 years
         Tenant (Broad)
         Tenant (Comprehensive)                                  0 claims in 3 years

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Condominium (Owner Occupied
         and Rental Units)
         Residential Fire and Extended                          1 claim in 3 years
         Coverages (Rented Dwelling)
         Seasonal Risks

                                         Discounts

The following Discounts apply to all lines or as specified below;
Note: No capping will apply to these discounts
Alarms
Monitored Burglar and Fire Alarm:………………………………………………………………………………… 10%
Monitored Burglar Alarm: …………………………………………………………………………………………………5%
Monitored Fire Alarm: ……………………………………………………………………………………………………… 5%
Applicable for Comprehensive and Broad Homeowner, Comprehensive and Broad Tenant,
Comprehensive Condominium and Deluxe Seasonal risks.
CAA Member
Member of any CAA club in Canada: ……………………………………………………………………………… 10%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium,
Comprehensive and Broad Tenant and Deluxe Seasonal risks.
Claims-Free
Discount when 3 years claims-free has been validated: ………………………………………………… 5%
Discount when 5 years claims-free has been validated: ……………………………………………… 10%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium,
Comprehensive and Broad Tenant and Deluxe Seasonal risks.
Employee
All employees and board members currently employed (or retired) with CAASCO, CAA
N&E, CAA Niagara, CAA Atlantic, CAA Saskatchewan, CAA Manitoba and CAA National,
including any spouse or relatives residing in the same household as the Employee.
Employee discount: ……………………………………………………………………………………………………… 20%
Family
May be applied to risks for policies of a parent, spouse, common-law or child where they
all have a property insured with CAA Insurance: ………………………………………………………… 5%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium,
Comprehensive and Broad Tenant and Deluxe Seasonal risks.

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Group
To be applied only to groups pre-approved by CAA Insurance. Actual discount percentage
based on group scoring matrix. See Group Discount section of manual for details.
Group Discount: ……………………………………………………………………….…………… Range 5% - 10%
Loss Prevention Device- Applies to CAA Water Premium
Where the customer has an industry approved and professionally installed loss prevention
device as shown below: ……………………………………………………………………………………………… 10%
   A Backwater Valve attached to the main service line of the dwelling.
   A Sump Pump with a battery, generator or water powered back-up system.
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium
(Owners policy), Comprehensive and Broad Tenant, Deluxe Seasonal, Residential Fire and
Extended Coverages (Rented Dwelling) and Comprehensive Rented Condominium risks.
Mature
If the Named Insured or spouse is 45 years of age of older: ……………………………………… 10%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium,
Comprehensive and Broad Tenant and Deluxe Seasonal risks.
Mortgage Free*
For risks that are mortgage free and free of encumbrances, whether listed or not. This
includes any form of secured line of credit. ………………………………………………………………… 10%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium and
Deluxe Seasonal risks.
*Also applies to CAA Water Coverage rates.
Multi-Line
When the insured has (both) Property and Automobile insurance with CAA.
If the insured does not currently have an active auto policy but promises to bring their
business to CAA, we will allow the discount. Approval is not required.
A promise is determined by;
1. Quoting the automobile line
2. Assess genuine interest
3. Obtain expiry date.
Multi-Line discount (Homeowners): ………………………………………………………………………… 12.5%
Multi-Line discount (Other lines): ………………………………………………………………………………… 10%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium,
Comprehensive and Broad Tenant and Deluxe Seasonal risks.

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New Home
Depending on the year the home was built, the following discount percentages are
applicable for Comprehensive and Broad Homeowner and Deluxe Seasonal risks.
Age of Home
    0-2 years                     25.0%
    3-4 years                     22.5%
    5-6 years                     20.0%
    7-8 years                     17.5%
    9-10 years                    15.0%
    11-12 years                   12.5%
    13-14 years                   10.0%
    15 years                       7.5%
    16 years                       5.0%
    17 years                       4.0%
    18 years                       3.0%
    19 years                       2.0%
    20 years                       1.0%

A separate Age of Home discount applies to CAA Water Coverage rates only for
Comprehensive and Broad Homeowner and Deluxe Seasonal risks.
Age of Home applies to CAA Water Premium
    Under 1 year                   10%
    1 year                          9%
    2 years                         8%
    3 years                         7%
    4 years                         6%
    5 years                         5%
    6 years                         4%
    7 years                         3%
    8 years                         2%
    9 years                         1%
Superior Shuttle Tanker
To be applied to risks within 13 km (8 miles) of a responding Fire Hall with Fire
Underwriters Survey Superior Shuttle Tanker (Tanker Service Accreditation) serviced by
year-round roads. …………………………………………………………………………………………………………… 5%
Applicable for Comprehensive and Broad Homeowner and Deluxe Seasonal risks.
Water Detection
To be applied to the CAA Water Coverage endorsement premium where the customer has
industry approved water detection sensors: ………………………………………………………………… 5%
Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium
(Owners policy), Comprehensive and Broad Tenant, Deluxe Seasonal, Residential Fire and
Extended Coverages and Comprehensive Rented Condominium risks.
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Surcharges
The following Surcharges apply to all lines or as specified below.
Age of Home Surcharge Applies to CAA Water Premium
Where risks are 35 years of age or older: ……………………………………………………………………… 5%
Applicable for Comprehensive and Broad Homeowner and Deluxe Seasonal risks.
Auxiliary Heat
For any risk with a solid fuel burning appliance (wood/corn pellet stove, woodstove),
fireplace insert, space heater or wall furnace: …………………………………………………………… 10%
Applicable for Comprehensive and Broad Homeowner, Residential Fire and Extended
Coverages, Deluxe and Seasonal Dwelling-Standard Form.
Combination Furnace
For any risk where there is a combination furnace: standard heating combined with any
kind of solid fuel: …………………………………………………………………………………………………………… 15%
Applicable for Comprehensive and Broad Homeowner, Residential Fire and Extended
Coverages, Deluxe and Seasonal Dwelling-Standard Form.
Multi Family
In addition to the liability extension charge, when there are 2 families (in total) in a single
dwelling: ………………………………………………………………………………………………………………………… 10%
Oil Tank
When there is an oil tank on the premises: ………………………………………………………………… 15%
Applicable for Comprehensive and Broad Homeowner, Residential Fire and Extended
Coverages, Deluxe and Seasonal Dwelling-Standard Form.
Primary Heating (Non-Standard)
In the event that an exception is made for a secondary heat source to be used as primary
heat for the risk: …………………………………………………………………………………………………………… 50%
Prior Sewer Backup/Flood Claim
This applies to the CAA Water Coverage endorsement premium where there is 1 Sewer
Backup or Flood related claim in the last 5 years: ……………………………………………………… 16%
Tenant over Commercial
This applies to any risk where the apartment is located 5 storeys or less over a
commercial exposure (must be referred and approved by an Underwriter) ……………… 20%
Applicable for Broad Tenant.

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Insurance Score

Recognizes financial responsibility and would be based on the credit score of the primary
named insured.
Consent is required from the customer at New Business (written or verbal where voice
recorded) to allow us to access his/her credit bureau file. An Insurance Score will then be
processed, and a rating variable applied for qualifying applicants, which could result in
savings of up to 10% for the customer.
A new insurance score may be requested by the Insured at any time by giving consent.
However, the insurance score cannot be applied mid-term.
•   Where no consent is received, no rate reduction will apply.
•   Rate will not increase due to an unfavorable credit score.
Applicable to Comprehensive and Broad Homeowner, Comprehensive Condominium
(Owners policy), Deluxe and Seasonal Dwelling-Standard Form.

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Homeowners

The Homeowner program offers 2 types of coverage:
 Broad Homeowner form, and
 Comprehensive Homeowner.
While the choice of forms under this program is at the option of the applicant so long as
all eligibility requirements have been met, it is advisable to offer the client the
Comprehensive coverage. Comprehensive coverage offers broader coverage and
increased peace of mind.

Regular vs. Preferred Rates
Within the Homeowner program, there are two types of rates available based on further
underwriting considerations.
Age of Building
                   Regular                                              Preferred
Fire Protection
                   Regular                                               Preferred
                    Hydrant                                               Hydrant
                   Fire Hall
                                                                          Fire Hall
                  Unprotected
Minimum Replacement Value
                   Regular                                               Preferred
                  =>$100,000                                             =>$150,000
Number of Families
                  Regular                                                Preferred
              More than 1 Family                                           1 Family
Prior Insurance
                   Regular                                               Preferred
  If no prior, a minimum deductible of
  $1000 will be imposed.
                                                       Minimum of 2-years insurance
  Deductible can be lowered at the                     experience.
  subsequent renewal where no losses have
  been sustained.

Roof
                  Regular                                             Preferred
   Asphalt shingles must be less than 25                     Asphalt shingles must be less than
   years old.                                                20 years old.
Units Rented to Others
                    Regular                                              Preferred
  Up to 2 fully contained units in addition to
  the insured’s fully contained unit is
  acceptable.
                                                           No rental units allowed.
  Coverage will be permitted for the rented
  dwelling if rented to persons not defined
  as the insured in the policy wording.

Wiring

                   Regular                                               Preferred

  Knob & Tube wiring must be less than
  10% of the total wiring and no part of any
  wiring to an electrical outlet may contain               No Knob & Tube present in the
  knob & tube wiring. 10% is acceptable if                 home.
  used to power permanently installed
  minor items as a ceiling light fixture only.

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Preferred to Regular Rating Adjustment
Preferred rating will be adjusted to Regular rates if the following occurs at renewal:
 the roof shingles are now over 20 years old;
 oil tank exceeds the maximum age for Preferred indoor or outdoor noted under Age of
   Oil Tanks;
 the building age is 76 years or older.

Guaranteed Replacement Cost-Dwelling Building
If a home is insured for the full replacement cost of the building, based upon a valuation
approved by the company we will guarantee the full replacement cost of the house as
necessary.
For example:
Mr. Smith’s home is insured for $170,000 (based on an approved valuation of the
dwelling). Six months into the policy term there is a fire, which destroys the entire home.
Due to the fact that there is a local construction strike, the insurer is faced with much
higher rebuilding costs. The final cost to rebuild the home is $200,000. With this
endorsement on the policy, the company will pay the full cost of rebuilding, even though it
was more than the face value of the policy.
NOTE: This endorsement is only available for Comprehensive and Broad Homeowner and
Deluxe Seasonal policies. This endorsement is automatically included in the Broad and
Comprehensive Homeowner and Deluxe Seasonal policies; the premium is read into the
basic policy premium.

Insurance to Value
If an evaluation of the dwelling has been completed and a subsequent report indicates
that the home is not insured 100% to value, the amount of building insurance will be
increased to the appropriate amount. The value of the increase will determine if the
increase will take effect immediately, or at the next policy renewal.
If an insured is not willing to accept the amended insurance valuation on the home, we
should arrange for the insured to sign off the policy. The cancellation would be processed
on a pro-rata basis.

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Homeowners Property Insurance Coverage
Homeowners Property Coverage Limits:

                                                     As determined by valuation Guaranteed
 Coverage A         Dwelling
                                                     Replacement Cost

 Coverage B         Outbuilding                      =20% of Coverage “A” amount

                                                     =80% of Coverage “A” amount (For
 Coverage C         Personal Property
                                                     contents on the premises)

 Coverage D         Additional Living Expenses       =30% of Coverage “A” amount

The Single Limit of Insurance will apply for no additional charge. This is the sum of the
amounts shown on the Coverage Summary page for Your Dwelling Building (Coverage A),
Your Detached Structures (Coverage B), Your Personal Property (Coverage C) and Your
Additional Living Expenses (Coverage D). This is the maximum amount we will pay for
insured loss or damage in any one occurrence, unless stated otherwise.
Outbuilding limits may be increased, at a rate of $0.20 per $100. Reason for the increase
must be given.
Personal property limits may be increased, at a rate of $3.00 per $1,000.

Liability Insurance Coverage
Liability Coverage Limits:

 Coverage E        Liability                                   $1,000,000 (minimum)

 Coverage F        Voluntary Medical Payments                  $5,000

 Coverage G        Voluntary Property Damage                   $1,000

                   Voluntary Compensation for
 Coverage H                                                    As per policy wordings
                   Residence Employees

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Secondary Homeowners
The Secondary Homeowner program will follow the same underwriting guidelines and offer
the same coverage as the Comprehensive Homeowners; however, the following additional
underwriting guidelines will apply.

Secondary Homeowner Additional Eligibility
Any secondary location must follow the attributes noted below to be insured with CAA
Insurance.
1. We must insure the principal dwelling.
2. Risks cannot be rented out.
3. Risks must be single family units.
4. The deductible and liability will be the same as shown under the principal residence.
5. The Secondary risk will be located within the same province as the principal residence.

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                                        Edition Date Jan 19, 2020
Condominium Overview

A condominium policy is required when the insured owns a unit within a condominium
corporation. As an owner, they also have a proportionate interest in, and responsibility for,
the common elements as well as their unit. This is what differentiates a condominium policy
from a tenants’, or homeowners’ policy.
The main purpose of a standard condominium policy is to protect the insureds’:
   financial interest in the unit, contents and any betterments or improvements they
    make or that were made by previous owners; and
   their personal liability for legal liability damages that occur within the unit.
In addition, the policy includes Loss Assessment coverage as the unit owner may be called
upon as result of their interest in the common elements to pay a special assessment for
damages resulting from:
   Property - damages to repair or maintain the common elements; or
   Liability - where the loss occurs in or on a common element;
    when the condominium corporation lacks the necessary funds to cover the expense.
A standard condominium corporation insures the building, common elements, liability and
normally, directors’ and officers’ liability.
A Vacant Land or Bare Land Condominium (name depends upon provincial legislation)
corporation only insures the common elements such as landscaped areas, roads through
the development, visitor parking areas and underground services like sewer and water.

Eligible Condominium Types
   Freehold
     Standard
     Vacant / Bare Land
Ineligible Condominium Types*
   Freehold
     Common elements;
     Phased;
   Leasehold
*For any exceptions, please refer to Underwriting.

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Comprehensive Condominium (Owner Occupied)
Coverage Overview
Condominium Personal Property Coverage C
Same as the Comprehensive Homeowner’s; plus
   Loss Assessment (Property);
   Unit Additional Protection; and
   Unit Improvements and Betterments.
The Coverage C limit is set by the Insured with the unit improvements and betterments,
loss assessment and unit additional protection being a percentage of the Coverage C limit.

Additional Living Expenses Coverage D
Same as the Comprehensive Homeowner’s; plus
   Temporary Membership Fees
The Additional Living Expenses limit is 50% of Coverage C.
Extensions of Coverage
Same as the Comprehensive Homeowner’s; plus
   Glass and Doors

Liability Section
Same coverage as the Comprehensive Homeowner’s; plus, Personal Liability Coverage E,
also includes:
   Loss Assessment (Liability)
The Loss Assessment limit is the Personal Liability Limit.
Condominium Special Extensions (Owner Occupied)
Contains a combined (or blanket) limit adding value for customers by providing at no
additional premium, a combined limit of 600% of the personal property limit for this section.
   Loss Assessment
   Unit Additional Protection
   Improvements and Betterments
600% is based on the current total of Condominium Special Extensions (250% for both Loss
Assessment and Unit Additional Protection (Contingent) and 100% for Improvements and
Betterments).

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Vacant/ Bare Land Condominium
The Vacant/ Bare Land Condominium Endorsement provides Property and Liability Loss
Assessment when added to a Comprehensive, or Broad Homeowners’ Policy, or a Deluxe
Seasonal Policy.
The Loss Assessment coverage amount is:
   $25,000 for Property Loss Assessment; and
   $25,000 for Liability Loss Assessment.

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Tenants

A tenants’ policy is required when the location is one where the applicant or insured owns
all or most of the contents but has no interest in the building.

Tenant Policy Forms
The Tenant program offers 2 types of coverages:
   Broad coverage, and
   Comprehensive coverage.
The choice of forms under this program is at the option of the applicant.
In providing excellent service and products to our insured’s and members, we should always
recommend Comprehensive coverage, if the insured qualifies.

Broad Tenants Form Eligibility
   Single family or, a maximum of 2 unrelated persons will be accepted. In the case of
    unrelated roommates, both residents must be named on the policy.
   The dwelling may be a detached home, flat, apartment or townhouse.
   All risks located 5 storeys or less over a commercial exposure must be referred to an
    underwriter.
Refer to surcharge section for risks subject to surcharge.

Comprehensive Tenants Form Eligibility
   Single-family tenant occupancy only.
   The residence must be occupied exclusively for private residential purposes only.
   There can be no claims in the past 3 years for new business to CAA.
   The dwelling may be a detached home, flat, apartment or townhouse.
   Units above a commercial risk located 5 storeys or less are not eligible for
    Comprehensive Coverage.
   Comprehensive Tenants coverage will not be permitted for situations where there are
    two (2) or more unrelated individuals living together.

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Tenant Property Insurance Coverage
Tenant Property Coverage Limits

 Coverage C         Personal Property                     As selected

 Coverage D         Additional Living Expenses            =50% of Coverage “C” amount

Improvements & Betterments
Improvements and Betterments- this is included in the content limit. The amount of
coverage for Coverage C-Personal Property should be the total of contents and
betterments and improvements combined. The insured should be cautioned to include the
actual contents amount and the Improvements and Betterments amount. In the event of
a total loss, this is what the insured would have as the maximum possible financial loss.
We insure the improvements and betterments that have been made or are acquired which
are part of the building within the perimeter walls, floors and ceilings of your unit. This
insurance also includes the following property, if owned by the insured:
1. Permanently installed outdoor fixtures, equipment and swimming pools on the
   premises
2. Materials and supplies located on or adjacent to the premises for use in the construction,
   alteration or repair of your Condominium unit.
3. Fittings or fixtures removed from the premises for repair or seasonal storage.

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Rental Properties

Note - It is required CAA write the customers’ principal residence to offer coverage on a
rental property (dwelling or condominium).
Rented Dwellings
This section will provide information on coverage for a location that is owned by an Insured
that is not lived in by the Insured.
These locations are generally rented to others as an investment property.
A rental home is typically insured on a Residential Fire and Extended Coverages form; if,
however, the insured or an immediate family member lives in a portion of the home a
Primary property form can be offered.

Rented Dwelling Eligibility Guidelines
Please see below for the eligibility guidelines for rented dwelling locations.
Any deviation from this criterion is considered an exception and must be approved prior to
binding coverage.
   The dwelling must be less than 100 years old.
   The building must be insured 100% to replacement value.
   The minimum replacement value must be equal to or greater than $100,000.
   No properties on an island will be permitted.
   If the roof is constructed of asphalt shingles the shingles cannot be over 25 years old.
   If the dwelling is heated with oil heat, the tank must be professionally installed and
    maintained.
   No residence with an in-ground oil tank will be permitted.
   All water or forced air furnaces must be under 30 years old. This includes gas, oil,
    propane or hot water.
   Any location heated with electric heat must be wired with 200 ampere service, otherwise
    a minimum 100-amp service is required.
   No risk with auxiliary heat, other than a standard fire place will be accepted.
   No risk may have any percentage of knob and tube wiring.
   No dwelling may contain more than two separate living units.
   Rooming houses will not be permitted.
   There must be a rental agreement in place with each tenant and the term of the lease
    must be a minimum of one year. The lease agreement must permit the landlord to enter
    and inspect the premises, at least once a year.
   Each tenant MUST carry their own Liability and Tenant’s insurance.

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A Rented Dwelling Questionnaire to be completed fully and accurately prior to binding risk
and underwriting contacted where there are questions or concerns. Please retain a copy for
our records.
Rent or Rental Value Endorsement
The Residential Fire and Extended Coverages form may have a Rent or Rental Value
Endorsement added to it under specific conditions. The information on this can be
found under the Endorsements & Optional Coverage section.
This endorsement is used to cover the insured’s loss of rental income due to the
rental dwelling becoming un-livable as a result of an insured loss.
Co-insurance of 100% is required for this coverage. Values for each location should
be provided.
There is no deductible for this coverage.
Rented Condominiums
A rental condominium unit is insured on a Comprehensive Rented Condominium
Policy.
Rented Condominiums Eligibility
Eligible rental condominiums units are the same as owner occupied units.

Rented Condominiums Coverage Summary
Landlord Property
This is personal property of the landlord (Unit Owner) included with and usual to a rented
condominium occupied as a private dwelling as well as any unit improvements and
betterments made by or acquired by them.
Coverage is automatically included for:
   Landlord Property ($20,000)
   increased limits are available
   referral to underwriting required for limits over $50,000
   maximum available $100,000
   additional premium for limits excess of $20,000 will be system calculated.

Fair Rental Value
Coverage is automatically included for:
   Fair Rental Value ($20,000);
       Increased limits are available
       Referral to underwriting required for limits over $50,000
       Maximum available $100,000
       Additional premium for limits excess of $20,000 will be system calculated.

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   Prohibited Access (2 weeks); and
   Mass Evacuation (2 weeks).
Rented Condominium Special Extensions
Coverage is automatically included for:
   Loss Assessment (Property), 250% of Coverage C;
   Unit Additional Protection, 250% of Coverage C; and
   Loss Assessment (Liability),
   Personal Liability Limit; except for;
   that part of an assessment made necessary by a deductible in the insurance policy of
    the “Condominium Corporation” ($25,000).
Additional Living Expenses are not covered under the rental form; it would be part of the
tenants’ policy.
Additional information on condominiums can be found in our Property Reference Manual.

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Seasonal Properties

Seasonal Property Coverage Forms
The Seasonal Property program offers 2 types of coverages:
   Deluxe Seasonal coverage for those that have a seasonal location that is visited
    regularly throughout the year. It will offer coverage to single family units and provide
    All Risk coverage on the building and Named Perils on the contents.
   Seasonal Dwelling Standard Form coverage provides standard coverage on seasonal
    locations that are owned by an insured and occupied periodically by them for
    recreational purposes.
    There is no allowance for the location to be rented to others.
   Seasonal Trailer - Standard Form provides standard coverage on seasonal locations
    that are owned by an insured and occupied periodically by them for recreational
    purposes. It does not include Extensions of Coverage found on the Deluxe or Standard
    Seasonal forms.
    There is no allowance for the location to be rented to others.

Deluxe Seasonal
Deluxe Seasonal Eligibility
The Deluxe Seasonal location will follow the same underwriting guidelines as noted under
our main eligibility rules however the following additional underwriting guidelines will
apply:
   The building must be well maintained and of professional quality and construction.
   The building must not be greater than 100 years of age
   Must be insured 100% to value.
   Single family occupancy
   No Log or Field stone construction
   The location may be rented out however not for more than 30 cumulative days in any
    12-month period, unless optional endorsement for extended rental is purchased.
   We will only insure a seasonal dwelling where we write the principal residence on a
    homeowner’s, tenant package or condominium form.
   We must have a picture of the seasonal dwelling (front and back) within 90 days of
    writing the risk.
   No more than one mortgage on the Seasonal location.
   The Seasonal location must have the same deductible and liability limits as the
    Principal location.

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     A home located on an island may be written as long as it is accessible by fire-fighting
      and emergency services by road, year – round, and it is either Hydrant or Fire Hall
      protected.
     Does not include coverage for vacation trailers or mobile homes
     Dwellings over 40 years old will require upgrades to plumbing, heating and electrical
      systems within the last 25 years.
     A central heating system is required as primary. Geo-thermal heating or radiant floor
      heat is acceptable as long as it is CSA/ULC approved and professionally installed.
      Wood-burning heat used as primary (or any other heat normally used as auxiliary), will
      be a referral to underwriting.
     Must have 100-amp service.
     Asphalt roofing must be 25 years or less.
Any deviation from these criteria is considered an exception and must be approved prior
to binding coverage.

Deluxe Seasonal Limits and Coverage Summary
    Description                                                Coverage
    Minimum Building Limit                                     $100,000
    Maximum Building Limit                                     $500,000
    Dwelling Building (Coverage A                              Guaranteed Replacement Cost
    Detached Structures (Coverage B)                           20% of Coverage A
    Personal Property (Coverage C)                             80% of Coverage A
    Additional Living Expenses (Coverage D)                    30% of Coverage A
    Legal Liability (Coverage E) Will extend from
    Primary location.

    Note: The Seasonal Liability Extension will be             As shown on Coverage Summary
    added automatically on the primary location                page
    however where there is a seasonal in another
    province, this liability extension will need to be
    added manually to the primary location.
    Voluntary Medical Payments (Coverage F)                    $5,000
    Voluntary Payment for Damage to Property
                                                               $1,000
    (Coverage G)
The Single Limit of Insurance will apply for no additional charge. This is the sum of the
amounts shown on the Coverage Summary page for Your Dwelling Building (Coverage A),
Your Detached Structures (Coverage B), Your Personal Property (Coverage C) and Your
Additional Living Expenses (Coverage D). This is the maximum amount we will pay for
insured loss or damage in any one occurrence, unless stated otherwise.

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Popular coverage with this package would include;
   Additional Living Expenses;
   Burglary and Theft coverage;
   Glass breakage;
   Inflation Protection;
   Rental Coverage*;
   Replacement Cost on Personal Property;
   Vandalism coverage;
   Watercraft & Equipment - Special limit of $5,000;
   Windstorm.
*note limitations in eligibility rules.
Deluxe Seasonal Optional Coverage
The following coverage may be added by endorsement for an additional premium;
  CAA Water Coverage
 Extended Rental Coverage
See the Endorsements & Optional Coverage section for details.
Seasonal Dwelling-Standard Form
Standard Seasonal Eligibility:
Standard Seasonal properties will follow underwriting guidelines as noted under our
main eligibility rules, however the following additional underwriting guidelines will
apply to these locations.
Any deviation from this criterion is considered an exception and must be approved
prior to binding coverage
   The building must be well maintained and of professional quality and construction.
   The building must not be greater than 100 years of age.
   No Log home or field stone construction.
   The location must be used for the exclusive use of the insured, no rental of the
    seasonal location is permitted.
   60-amp services are acceptable if the dwelling is less than 800 square feet. If the
    seasonal is winterized and used all year a minimum of 100-amp service is required.
   We will only insure a seasonal dwelling where we write the principal residence on a
    Broad or Comprehensive Homeowners’, Broad or Comprehensive Tenant Package or
    Comprehensive Condominium (owner occupied unit) policy.
   We must have a picture of the seasonal dwelling (front and back) within 90 days of
    writing the risk.

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     No more than one mortgage on the Seasonal location.
     The Seasonal location must have the same deductible and liability limits as the
      Principal location.
     A home located on an island may be written as long as it is accessible by fire-fighting
      and emergency services by road year - round and it is either Hydrant or Fire Hall
      protected.
     A central heating system is required as primary. Geo-thermal heating or radiant floor
      heat is acceptable as long as it is CSA/ULC approved and professionally installed.

Seasonal Dwelling-Standard Form Limits and Coverage Summary

    Description                                                                 Coverage

    Minimum Deductible                                           $                            500
    Minimum / Maximum Building Limit                             $    100,000        $     350,000
    Minimum / Maximum Trailer Limit                              $         10,000    $      75,000
    Minimum / Maximum Content Limit                              $          3,000    $      25,000
                                                                 Replacement Cost As shown on
    Dwelling Building
                                                                 Coverage Summary page
                                                                 As shown on Coverage Summary
    Personal Property
                                                                 page

    Legal Liability (Coverage E) – Will extend from
    Primary location. Note: Seasonal Liability Extension
    will be added automatically on the primary location          As shown on Coverage Summary
    however where there is a seasonal in another                 page.
    province, this liability extension will need to be
    added manually to the primary location.

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Seasonal Trailer - Standard Form
Seasonal Trailers – Additional Eligibility Guidelines
   There is no maximum age restriction, but it must be well maintained.
   We must receive a photo of the trailer (front and back) within 3 months of writing the
    risk.
   The trailer must be on a concrete pad, piers or cement blocks, or permanently
    mounted on masonry foundation.
   Permanently tied down and skirted.
   It must be permanently hooked up to electricity, a sewage system, (sewers or septic
    tank) and water.
   We must have make, model and serial number. It must be CSA approved and factory
    built. (not homemade or modified)
   The unit must not contain a wood-burning appliance.

Seasonal Dwelling and Seasonal Trailer Optional Coverage
The following coverage may be added by endorsement for an additional premium:
   Burglary & Robbery Coverage
   Vandalism Coverage
See the Endorsements & Optional Coverage section for details.

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Modular and Mini Modular Homes
Pre-fabricated or Manufactured homes
Modular construction is one type of manufactured housing that is distinct from other
types in that complete sections are shipped to the site for set-down on a permanent
foundation. These modules are built to conform to all provincial, local or regional codes.
At the site, one module (mini modular home) or two or more modules (modular home)
are joined and finished by a contractor. Water, electricity, and other required utilities are
then connected and additions or attached garages may be added.
These may be written under a Broad2 or Comprehensive2 Homeowner or Seasonal2 form
type and the applicable building type of either “Mini-Home” or “Modular Home” will be
selected to identify this type of risk.*

Modular and Mini Modular Homes Eligibility
Existing eligibility rules, for the applicable line type, will apply with the addition of the
following.
      Must meet building standards and be built based on the same regional building codes
       as a site-built home.
      Must be on a permanent concrete foundation. (no open foundations and no wheels can
       be attached)
      Must have drywall interior.
      The year built cannot be older than 1990.
      Must not be less than 680 square feet.
      Must have permanent electric, water and sewer lines.
      Must have a pitched roof, no flat roofs.
      No wood heat inside as a primary heat source. (wood units as an auxiliary heat source
       must be approved for use within these manufactured homes)
      No risks located on a farm or commercial property.
      No risks located within a mobile home park.
      House trailers or Mobile Homes are not permitted even if on permanent foundations.

2
    A Minimum Dwelling Limit of $50,000 will apply to this type of risk for Broad and Comprehensive Homeowner and Deluxe
Seasonal Risks.
*
    Additional information on Modular and Mini Modular Homes is available in the Property Reference Manual.

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