Microsoft Word - Document3

SOUTH CAROLINA WIND AND HAIL UNDERWRITING ASSOCIATION P.O. BOX 407

COLUMBIA, SOUTH CAROLINA 29202-0407

STANDARD WIND AND HAIL MANUFACTURED HOME POLICY

AGREEMENT

We will provide the insurance described in this policy in return for the premium and compliance with all

applicable provisions of this policy.

DEFINITIONS

In this policy “you” and “your” refer to the named insured shown in the Declarations and that person’s “family

members.” “Family member” means a person who resides in your household and is related to you by blood,

marriage or adoption. This includes a ward or a foster child. “We,” “us” and “our” refer to the Association

providing this insurance. Manufactured home includes “mobile home”.

COVERAGES

This insurance applies to the Described Location, Coverages for which a Limit of Liability is shown and Wind

and Hail Insured Against for which a premium is stated.

We will pay only that part of the total of all losses payable under Coverages A, B, and C that exceeds the

windstorm or hail percentage deductible stated in the Declarations, and further described in Conditions – 23. on

page 14 of this policy. The stated deductible applies separately to Coverage A, B, and C. The dollar amount of

the windstorm or hail deductible is determined by multiplying the Coverage A, B, or C limit of liability shown in

the Declarations by the percentage stated. A deductible clause applicable to Coverage D is also stated in the

Declarations, and further described on page 4 of this policy.

Coverage A - Mobile Home

We cover direct physical loss of or damage to:

a. the mobile home on the Described Location shown in the Declarations, its original parts and

accessories furnished by the manufacturer, dealer or seller of the home when it was purchased

new, and replacement of these items, used principally for dwelling purposes including structures,

not otherwise excluded, attached to the mobile home;

b. materials and supplies located on or next to the Described Location used to construct, alter, or

repair the mobile home or other structures on the Described Location; and

c. if not otherwise covered in this policy, building equipment used for the service of and located on

the Described Location.

Mobile home coverage applies while your mobile home is located at the Described Location and is on blocks or a

foundation and is tied down in accordance with the manufacturers recommendations and in accordance with the

tie-down requirements of this Association and is occupied as a private residence on land you own or lease.

Mobile home coverage does not apply while the home is being moved.

This coverage does not apply to land, including land on which the mobile home is located.

Coverage B - Other Structures

We cover direct physical loss of or damage to other structures permanently installed on the Described Location,

set apart from the mobile home by clear space. This includes structures connected to the mobile home by only a

fence, utility line, or similar connection.

Page 1 of 16 WHM1 (11-08)

This coverage does not apply to land, including land on which the other structures are located.

We do not cover other structures:

a. used in whole or in part for commercial, manufacturing, or farming purposes; or

b. rented or held for rental to any person not a tenant of the mobile home, unless used solely as a

private garage.

c. that are not listed on the Declaration of this policy.

Other structures coverage does not apply while the structures are being moved.

Coverage C - Personal Property

We cover personal property, usual to the occupancy as a dwelling and owned or used by you or members of your

family residing with you while it is on the Described Location and within an insured building. After a loss and at

your request, we will cover personal property owned by a guest or servant while the property is on the Described

Location and within an insured building.

Property not covered. We do not cover:

1. accounts, bank notes, bills, bullion, coins, currency, deeds, evidences of debt, gold other than

goldware, letters of credit, manuscripts, medals, money, notes other than bank notes, passports,

personal records, platinum other than platinumware, securities, silver other than silverware, tickets,

lottery tickets and stamps;

2. animals, birds, or fish;

3. aircraft and their parts. Aircraft means any contrivance used or designed for flight, except model

or hobby aircraft not used or designed to carry people or cargo;

4. motor vehicles or all other motorized land conveyances. This includes:

a. their equipment, accessories and parts; or

b. any device or instrument for the transmitting, recording, receiving or reproduction of

sound or pictures which is operated by power from the electrical system of motor

vehicles or all other motorized land conveyances, including:

(1) accessories or antennas; or

(2) tapes, wires, records, discs or other media for use with any such device or

instrument;

while in or upon the vehicle or conveyance.

We do cover vehicles or conveyances all while contained within an enclosed structure on the

Described Location not subject to motor vehicle registration which are:

a. used to service the Described Location; or

b. designed for assisting the handicapped;

5. watercraft, other than rowboats and canoes (including their furnishings, equipment and motors and

any parts of the motor);

Page 2 of 16 WHM1 (11-08)

6. data, including data stored in:

a. books of account, card index systems, drawings or other paper records; or

b. electronic data processing tapes, wires, records, discs, cells, magnetic recording or other

software media.

However, we do cover the cost of blank recording or storage media, and of pre-recorded

computer programs available on the retail market;

7. personal property while in the open;

8. trailers and any of their parts;

9. credit cards, electronic fund transfer cards or access devices used solely for deposit, withdrawal or

transfer of funds, counterfeit money, stored value cards, smart cards and scrip;

10. business property;

11. water or steam.

If you remove personal property from the Described Location to a newly acquired principal residence, the

Coverage C limit of liability will apply at each residence for the 30 days immediately after you begin to move the

property there. This time period will not extend beyond the termination of this policy. Our liability is limited to

the proportion of the limit of liability that the value at each residence bears to the total value of all personal

property covered by this policy.

Personal property coverage does not apply to personal property inside your mobile home while your mobile

home is being moved.

Special Limits on Certain Property

We cover up to the limit of liability shown for each category, but this does not increase the limit of liability, for

Coverage C - Personal Property.

Limit of Liability Category

$2,500 Goldware, gold-platedware silverware, silver-platedware,

platinumware, and pewterware.

$1,000 Coin collections and stamp collections.

$1,000 Art, antiques and heirlooms, fine arts and collectibles,

memorabilia, souvenirs and trading cards.

$1,000 Jewelry, watches, furs, precious and semi-precious stones.

$ 500 Firearms and related equipment.

$1,000 Golf equipment, other than golf carts.

$ 500 Golf carts, if they are inside a structure insured by this policy.

$1,000 Rowboats and canoes.

$2,500 Personal property used for business purposes.

$1,000 Computers and peripheral devices, including software packages

available through the retail market.

Page 3 of 16 WHM1 (11-08)

$1,000 Tools.

$500 Food spoilage on the described location, if a power source on the

described location is damaged by wind or hail.

Coverage D - Loss of Use

If a premium for this coverage is indicated on the Declarations page of this policy, the limit of liability for

Coverage D is the total limit for all the coverages that follow.

Fair Rental Value. If a direct physical loss to property described in Coverage A by a Peril Insured Against under

this policy makes that part of the Described Location rented to others or held for rental by you unfit for its

normal use, we cover its:

Fair Rental Value, meaning the fair rental value of that part of the Described Location rented to others

or held for rental by you less any expenses that do not continue while that part of the Described

Location rented or held for rental is not fit to live in. Fair Rental Value will be based on the likely rental

income if no physical loss or damage had occurred, but it does not include any potential increases in

rental income due to favorable conditions caused by the impact of Covered Causes of Loss.

Payment will be for the shortest time required to repair or replace that part of the Described Location rented or

held for rental.

The periods of time referenced above are not limited by the expiration of this policy.

We do not cover loss or expense due to cancellation of a lease or agreement.

Additional Living Expense. If a direct physical loss to property described in Coverage A by a Peril Insured

Against under this policy makes the Described Location where you reside not fit to live in, we cover your,

Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that

your household can maintain its normal standard of living.

Payment will be for the shortest time required to repair or replace the Described Location or, if you permanently

relocate, the shortest time required for your household to settle elsewhere.

The periods of time referenced above are not limited by the expiration of this policy.

We do not cover loss or expense due to cancellation of a lease or agreement.

Deductible Clauses.

A Deductible Clause, as described in paragraphs 1. through 6. below, must be indicated in the Declarations.

We will not pay for loss or damage in any one occurrence until the period of loss exceeds the deductible period,

as shown on the Declarations. We will then pay the amount of loss or damage following the deductible period up

to the applicable Limit of insurance on the Declarations for Coverage D - Loss of Use.

1. 10 Day Deductible – We will not pay for losses incurred in the 10 Day period starting the day

after the loss.

2. 15 Day Deductible – We will not pay for losses incurred in the 15 Day period starting the day

after the loss.

3. 20 Day Deductible – We will not pay for losses incurred in the 20 Day period starting the day

after the loss.

Page 4 of 16 WHM1 (11-08)

4. 25 Day Deductible – We will not pay for losses incurred in the 25 Day period starting the day

after the loss.

5. 30 Day Deductible – We will not pay for losses incurred in the 30 Day period starting the day

after the loss.

6. 55 Day Deductible – We will not pay for losses incurred in the 55 Day period starting the day

after the loss.

Other coverages

1. Debris Removal. We will pay your reasonable expense for the removal of debris of covered property if a

Peril Insured Against causes the loss. Debris removal expense is included in the limit of liability applying to

the damaged property.

2. Improvements, Alterations and Additions. If you are a tenant of the Described Location, you may use up to

10% of the Coverage C limit of liability for loss by a Peril Insured Against to improvements, alterations and

additions, made or acquired at your expense, to that part of the Described Location used only by you.

Payment under this coverage reduces the Coverage C limit of liability by the amount paid.

3. Reasonable Repairs. In the event that covered property is damaged by an applicable Peril Insured Against,

we will pay the reasonable cost incurred by you for necessary measures taken solely to protect against

further damage if for the peril of wind or hail. If the measures taken involve repair to other damaged

property, we will pay for those measures only if that property is covered under this policy and the damage to

that property is caused by an applicable Peril Insured Against.

This coverage:

a. does not increase the limit of liability that applies to the covered property;

b. does not relieve you of your duties, in case of a loss to covered property, as set forth in Condition

4.b.;

c. does not apply to expenses incurred for the protection of property prior to the loss.

4. Property Removed. We insure covered personal property against direct loss from any cause while being

removed from a premises endangered by the peril of wind or hail and for not more than 5 days while

removed. This coverage does not change the limit of liability that applies to the property being removed.

PERILS INSURED AGAINST

We insure against risk of direct loss to property described in Coverages A, B and C only if that loss is a physical

loss to property caused by wind or hail as described and limited below unless the loss is excluded in General

Exclusions.

The perils of wind or hail do not include:

a. frost or cold weather;

b. ice (other than hail), snow or sleet, whether driven by wind or not;

c. accumulation of hail, ice, snow, sleet, water or any other form of precipitation;

d. loss or damage to the interior of your mobile home or other structure, or the property contained

inside the mobile home or other structure, caused by rain, snow, sand, or dust whether driven by

wind or not, unless the direct force of wind or hail damages the mobile home or other structure

causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this

opening.

Page 5 of 16 WHM1 (11-08)

The perils of wind and hail do not include property damage:

a. to the interior of your mobile home or the personal property contained in your mobile home caused

by water from sprinkler equipment or other piping, unless the equipment or piping is first damaged

as a direct result of wind or hail;

b. to windmills, wind pumps, or their towers, metal smokestacks;

c. to any structure, open on one or more sides and serving as a patio cover or carport, including the

supports, with a rooflike covering of cloth, metal, fiberglass or plastic, whether or not the structure

is attached to a building; including personal property contained therein;

d. to screens, including their supports, around a pool, patio or other areas;

e. to fences, property line and similar walls, including seawalls, revetments, and retaining walls;

f. to any greenhouses, hothouses, slathouses, trellises, pergolas, gazebos, cabanas, swimming pools,

jacuzzis, hot tubs, tiki huts or similar structures, including their walkways and decks, whether or

not attached to the building, and utility poles including light fixtures;

g. to any structure, including the property in or on the structure, located in whole or in part in or over

water;

h. caused in any manner by wind to paint or waterproof material applied to the exterior of any

building or structure;

i. to the following property when outside of the building:

(1) awnings or canopies, including their supports, signs or radio or television antennas or

aerials, satellite dish, including lead-in wiring, masts or towers;

(2) rowboats and canoes; or

(3) lawns, trees, shrubs, or plants;

j. to outdoor equipment used to service the Described Location when outside of a building;

k. to screens, including the supports, which are not part of the manufactured home. However, screens

and supports of a porch, which is part of the manufactured home, are covered;

l. to land (including land on which the property is located), growing crops;

m. to personal property while airborne, waterborne or in transit;

n. to pilings, piers, wharves or docks, boathouses, bulkheads, underground pipes, flues, drains,

bridges, boardwalks, trestles, catwalks, dunewalks or ramps;

o. to all property (manufactured home and personal property) located in a basement or below grade

level;

p. to sidewalks, driveways, and other paved or graveled surfaces; or

q. to property that is covered under another coverage form of this or any other policy in which it is

more specifically described, except for the excess of the amount due (whether you can collect on

it or not) from that other insurance.

Page 6 of 16 WHM1 (11-08)

GENERAL EXCLUSIONS

1. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded

regardless of any other cause or event contributing concurrently or in any sequence to the loss. These

exclusions apply whether or not the loss event results in widespread damage or affects a substantial

area.

a. Ordinance or Law

Ordinance or Law means any ordinance or law:

(1) requiring or regulating the use, construction, demolition, remodeling, renovation or repair of

property, including removal of any resulting debris; or

(2) the requirements of which result in a loss of value to property; or

(3) requiring any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify,

or neutralize, or in any way respond to, or assess the effects of, pollutants.

This Exclusion a. applies whether or not the property has been physically damaged.

b. Earth Movement, meaning any loss caused by, resulting from, contributed to or aggravated by

earthquake; landslide; mudflow; earth sinking, rising, or shifting, volcanic eruption, meaning the

eruption, explosion or effusion of a volcano;

c. Water Damage, meaning:

(1) flood, surface water, waves, tidal water, overflow of a body of water, or spray from any

of these, whether or not driven by wind;

(2) water, water-borne material or sewage which backs up through sewers or drains or which

overflows or is discharged from a sump, sump pump or related equipment; or

(3) water or water-borne material below the surface of the ground, including water which

exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation,

swimming pool, basement or other structure caused by or resulting from human or animal

forces or any act of nature;

(4) mudslide, mudflow, shifting sand or sand flow; or

(5) sinkhole, collapse.

d. Mold. Notwithstanding any other provision(s) of this policy, this insurance does not apply to any

loss, damage, additional living expense, loss of business income, cost of decontamination,

“remediation”, testing, debris removal or any other costs or expenses arising from or associated in

any way with “mold”, whether or not directly or indirectly caused by or resulting from any peril

insured against under this policy.

“Mold” means any mold, fungi (and any associated spores) or any other microorganisms of any

type or nature that can cause or threaten to cause physical damage, deterioration, loss of use,

and/or loss of value or marketability, to any tangible property or that can cause or threaten to cause

harm of any type to any living organism. This includes, but is not limited to, any type of mold that

is harmful or potentially harmful to the health or welfare of persons (such as Stachybotrys and

others), and/or that is damaging or potentially damaging to tangible property (including wet or dry

rot and others).

Page 7 of 16 WHM1 (11-08)

“Remediation” means to test, detect, measure, evaluate, treat, contain, remove, or dispose of mold.

Remediation includes any testing to detect, measure, or evaluate mold, fungi (and any associated

spores), or any other microorganisms, and any decontamination of the covered property.

e. Power Failure, meaning the failure of power or other utility service if the failure takes place off the

Described Location. If a Peril Insured Against ensues on the Described Location, we will pay only

for loss caused by the Peril of wind or hail.

f. Neglect, meaning your neglect to use all reasonable means to save and preserve property at and

after the time of a loss, or when property is endangered by Peril of wind or hail.

g. War, including undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a

military force or military personnel, destruction or seizure or use for a military purpose, and

including any consequence of any of these. Discharge of a nuclear weapon will be deemed a

warlike act even if accidental.

h. Nuclear Hazard, to the extent set forth in the Nuclear Hazard Clause of the Conditions

i. (1) wear and tear, marring, scratching, deterioration;

(2) inherent vice, latent defect, mechanical breakdown;

(3) smog, rust or other corrosion, mold, wet or dry rot;

(4) smoke from agricultural smudging or industrial operations;

(5) discharge, dispersal, seepage, migration, release or escape of “pollutants” at or from the

described location.

“Pollutants” means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,

vapor, soot, fumes, acids, alkalis, chemicals, asbestos and waste. Waste includes materials to be

recycled, reconditioned or reclaimed;

(6) settling, shrinking, bulging or expansion, including resultant cracking, of pavements, patios,

foundations, walls, floors, roofs or ceilings;

(7) birds, vermin, rodents, insects or domestic animals; or

(8) fire, theft or explosion.

j. Intentional Loss, meaning any loss arising out of any act committed:

(1) by or at the direction of you or any person or organization named as an additional

insured; and

(2) with the intent to cause a loss.

k. Contraband or property in the course of illegal transportation or trade.

l. Coastal construction control line.

2. We do not insure for loss to property described in Coverages A, B and C caused by any of the following.

a. Acts or decisions, including the failure to act or decide, of any person, group, organization, public

authority or governmental body resulting in the destruction, confiscation or seizure of the

described property;

Page 8 of 16 WHM1 (11-08)

b. Faulty, inadequate or defective:

(1) planning, zoning, development, surveying, siting;

(2) design, specifications, workmanship, repair, construction, renovation, remodeling,

grading, compaction;

(3) materials used in repair, construction, renovation or remodeling; or

(4) maintenance;

of part or all of any property whether on or off the Described Location.

CONDITIONS

1. POLICY PERIOD. This policy applies only to loss which occurs during the policy period.

2. INSURABLE INTEREST AND LIMIT OF LIABILITY. Even if more than one person has an insurable

interest in the property covered, we will not be liable in any one loss:

a. for an amount greater than the interest of a person insured under this policy; or

b. for more than the applicable limit of liability.

3. CONCEALMENT OR FRAUD.

With respect to all persons insured under this policy, we provide no coverage for loss if, whether before

or after a loss, one or more persons insured under this policy have:

a. intentionally concealed or misrepresented any material fact or circumstance; or

b. engaged in fraudulent conduct; or

c. made false statements;

relating to this insurance.

4. YOUR DUTIES AFTER LOSS. In case of a loss to covered property, we have no duty to provide coverage

under this policy if the failure to comply with the following duties is prejudicial to us. These duties must be

performed by you, or your representative:

a. give prompt notice to us through your broker;

b. (1) protect the property from further damage;

(2) make reasonable and necessary repairs to protect the property; and

(3) keep an accurate record of repair expenses;

c. prepare an inventory of damaged personal property showing the quantity, description, actual cash

value and amount of loss. Attach all bills, receipts and related documents that justify the figures in

the inventory and include photographs of the damaged items;

d. as often as we reasonably require:

(1) show the damaged property;

(2) provide us with records and documents we request and permit us to make copies; and

Page 9 of 16 WHM1 (11-08)

(3) submit to examination under oath, while not in the presence of any other named insured,

and sign the same.

e. send to us, within 60 days after our request, your signed, sworn proof of loss which sets forth, to

the best of your knowledge and belief:

(1) the time and cause of loss;

(2) your interest and that of all others in the property involved and all liens on the property;

(3) other insurance which may cover the loss;

(4) changes in title or occupancy of the property during the term of the policy;

(5) specifications of damaged buildings and detailed repair estimates;

(6) the inventory of damaged personal property described in 4c;

(7) receipts for additional living expenses incurred and records that support the fair rental

value loss.

f. The insurance adjuster we hire to investigate your claim may furnish you a proof of loss form and

may help you to complete it. However, this is a matter of courtesy only, and you must still send us

a proof of loss within 60 days after the loss even if the adjuster does not furnish the form or help

you complete it. In completing the proof of loss, you must use your own judgment concerning the

amount of loss and the justification for that amount; the adjuster is not authorized to approve or

disapprove claims or to tell you whether your claim will be approved by us.

5. LOSS SETTLEMENT. Covered property losses are settled as follows:

a. Personal property under Coverage C at actual cash value at the time of loss but not more than the

amount required to repair or replace.

b. Buildings under Coverage A or B are subject to the following:

(1) the actual cash value of that part of the mobile home or other structure damaged; or

(2) that proportion of the cost to repair or replace, with deduction for depreciation, of that

part of the mobile home or other structure damaged.

6. LOSS TO A PAIR OR SET. In case of loss to a pair or set we may elect to:

a. repair or replace any part to restore the pair or set to its value before the loss; or

b. pay the difference between actual cash value of the property before and after the loss.

7. GLASS REPLACEMENT. Loss for damage to glass caused by a Peril Insured Against will be settled on

the basis of replacement with safety glazing materials when required by ordinance or law.

8. APPRAISAL. If you and we fail to agree on the actual cash value of the loss, either may demand an

appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within 20

days after receiving a written request from the other. The two appraisers will first choose a competent and

impartial umpire. If they cannot agree upon an umpire within 15 days, you or we may request that a judge

of a court of record in the State of South Carolina select an umpire from a list supplied by the parties. The

appraisers will then appraise the loss, stating separately the actual cash value of the loss. If the appraisers

submit a written report of an agreement to us, the amount agreed upon will be the actual cash value of the

loss. If the appraisers fail to agree, they will submit their differences only, to the umpire. A decision agreed

to by any two of these three will set the actual cash value of the loss. Each party will:

Page 10 of 16 WHM1 (11-08)

a. pay its own appraiser; and

b. bear the other expenses of the appraisal and umpire equally.

Appraisal rights under this policy are not available, if coverage is in dispute, or if you have failed to comply

with all policy conditions.

9. OTHER INSURANCE.

a. You may have other insurance subject to the same plan, terms, conditions and provisions as the

insurance under this policy. If you do, we will pay our share of the covered loss or damage. Our

share is the proportion that the applicable Limit of Insurance under this policy bears to the Limits

of Insurance of all insurance covering on the same basis.

b. If there is other insurance covering the same loss or damage, other than that described in a. above,

we will pay only for the amount of covered loss or damage in excess of the amount due from that

other insurance, whether you can collect on it or not. But we will not pay more than the applicable

Limit of Insurance.

10. SUBROGATION. You may waive in writing before a loss all rights of recovery against any person. If not

waived, we may require an assignment of rights of recovery for a loss to the extent that payment is made by

us. If an assignment is sought, the person insured must sign and deliver all related papers and cooperate

with us.

11. SUIT AGAINST US. No action can be brought unless the policy provisions have been complied with and

the action is started within three years after the date of loss.

12. OUR OPTION. If we give you written notice within 30 days after we receive your signed, sworn proof of

loss, we may repair or replace any part of the damaged property with like property.

13. LOSS PAYMENT. We will adjust all losses with you. We will pay you unless some other person is named

in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your

proof of loss and:

a. reach an agreement with you; or

b. there is an entry of a final judgment; or

c. there is a filing of an appraisal award with us.

14. ABANDONMENT OF PROPERTY. We need not accept any property abandoned by you.

15. MORTGAGE CLAUSE.

The word “mortgagee” includes trustee or lienholder.

If a mortgagee is named in this policy, any loss under Coverage A or B will be paid to the mortgagee

and you, as interests appear. If more than one mortgagee is named, the order of payment will be the

same as the order or precedence of the mortgages.

If we deny your claim, that denial will not apply to a valid claim of the mortgagee, if the mortgagee:

a. notifies us of any change in ownership, occupancy or substantial change in risk of which the

mortgagee is aware;

b. pays any premium due under this policy on demand if you have neglected to pay the premium; and

Page 11 of 16 WHM1 (11-08)

c. submits a signed, sworn statement of loss within 60 days after receiving notice from us of your

failure to do so. Policy conditions relating to Appraisal, Suit Against Us and Loss Payment apply

to the mortgagee.

If we decide to cancel this policy, the mortgagee will be notified at least 10 days before the date

cancellation takes effect.

If we pay the mortgagee for any loss and deny payment to you:

a. we are subrogated to all the rights of the mortgagee granted under the mortgage on the property; or

b. at our option, we may pay to the mortgagee the whole principal on the mortgage plus any accrued

interest. In this event, we will receive a full assignment and transfer of the mortgage and all

securities held as collateral to the mortgage debt.

Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee’s

claim.

16. NO BENEFIT TO BAILEE. We will not recognize any assignment or grant any coverage that benefits a

person or organization holding, storing, or moving property for a fee regardless of any other provision of

this policy.

17. CANCELLATION AND RENEWALS.

a. The first Named Insured shown in the Declarations or the premium finance company as Power of

Attorney may cancel this policy at any time by returning it to us or by letting us know in writing in

advance of the date cancellation is to take effect. A request for cancellation by the premium

finance company will be treated the same as a request for cancellation by the first Named Insured

itself.

b. We may cancel this policy by letting you know in writing of the date cancellation takes effect.

This cancellation notice may be delivered to you or mailed to you at your mailing address shown

in the Declarations. Proof of mailing will be sufficient proof of notice. We may cancel for any

reason by letting you know at least 90 days before the date cancellation takes effect. Reasons for

which we may cancel the policy include but are not limited to:

(1) misrepresentation of any material fact either before or after loss; or

(2) cause which would have been grounds for non-acceptance of the risk under the Plan of

Operation had such cause been known at the time of acceptance; or

(3) cause arising subsequent to a review which would have been grounds for non-acceptance

of the risk under this Plan of Operation had such cause existed at the time of acceptance;

(4) substantial breach of contractual duties, conditions or warranties; or

(5) if we lose our reinsurance covering all or a significant portion of this policy, or where

continuation of the policy would imperil our solvency or place us in violation of the

insurance laws of this state. Cancellation for these reasons is subject to the approval by

the Director of Insurance; or

(6) the risk has changed substantially since the policy was issued; or

Page 12 of 16 WHM1 (11-08)

(7) if you or your representative:

(a) conceal, omit or misrepresentative any material facts or circumstances; or

(b) make any false or fraudulent claim; or

notification by us that the condition must be removed.

c. When you have not paid the premium, whether payable to us or to the broker or under any finance

or credit plan, we may cancel at any time by letting you know at least 10 days before the date

cancellation takes effect.

d. This association writes policies for a one-year period only and renewal may not be made unless an

appropriate application is completed and furnished to the Association by the broker. There is no

provision for term privileges or renewal plan since a rewrite can only be accomplished through use

of the application. Unless the policy is rewritten before the expiration date through the application

process, the policy will automatically terminate as of the expiration date.

e. When this policy is canceled, the premium for the period from the date of cancellation to the

expiration date will be refunded pro rata.

f. If the return premium is not refunded with the notice of cancellation or when this policy is returned

to us, we will refund it within a reasonable time after the date cancellation takes effect.

18. WAIVER OR CHANGE OF POLICY PROVISIONS. A waiver or change of a provision of this policy

must be in writing by us to be valid. Our request for an appraisal or examination will not waive any of our

rights.

19. ASSIGNMENT. Assignment of this policy will not be valid unless we give our written consent.

20. DEATH. If you die, we insure:

a. your legal representatives but only with respect to the property of the deceased covered under the

policy at the time of death;

b. with respect to your property, the person having proper temporary custody of the property until

appointment and qualification of a legal representative.

21. NUCLEAR HAZARD CLAUSE.

a. “Nuclear Hazard” means any nuclear reaction, radiation, or radioactive contamination, all whether

controlled or uncontrolled or however caused, or any consequence of any of these.

b. Loss caused by the nuclear hazard will not be considered loss caused by wind or hail or otherwise

included within the Perils Insured Against.

c. This policy does not apply to loss caused directly or indirectly by nuclear hazard.

22. INSPECTIONS AND SURVEYS.

We have the right but are not obligated to:

a. make inspections and surveys at any time;

b. give you reports on the conditions we find; and

c. recommend changes.

Page 13 of 16 WHM1 (11-08)

Any inspections, surveys, reports or recommendations relate only to insurability and the premiums to

be charged. We do not make safety inspections. We do not undertake to perform the duty of any

person or organization to provide for the health or safety of workers or the public. And we do not

warrant that conditions:

(1) are safe or healthful; or

(2) comply with laws, regulations, codes or standards.

This condition applies not only to us, but also to any rating, advisory, rate service or similar

organization which makes insurance inspections, surveys, reports or recommendations.

23. DEDUCTIBLE CLAUSES.

This policy includes a named storm deductible, a non-named storm deductible, and an

aggregate deductible.

a. Named storm deductible – A “named storm” means a storm that is identified as a

tropical storm or hurricane by the National Hurricane Center of the National

Weather Service. It includes wind, wind gusts, hail, tornadoes, or cyclones caused

by the resulting storm system. It does not include flood, surface water, waves storm

surge, tidal water or tidal waves, overflow of streams or other bodies of water or

spray from any of the foregoing whether driven by wind or not.

The “National Weather Service” means the National Weather Service or, if the

National Weather Service ceases to exist, ceases to perform the function of declaring

weather systems to be tropical storms or hurricanes, or ceases to perform the

function of issuing tropical storm or hurricane watches or warnings, such other entity

as we determine.

We will pay only the amount of the covered wind/hail loss caused by a named storm

in excess of the deductible percentage, as stated on the declaration page, of the Limit

of Liability indicated on the declaration page of this policy. The deductible will not

be less than the minimum amount or more than the maximum amount as it appears

in the following chart.

Deductible Percentage Minimum Dollar Amount Maximum Dollar Amount

2% $500 $50,000

3% $1,000 $75,000

4% $2,000 $100,000

5% $2,500 $125,000

10% $5,000 $250,000

The deductible amount indicated will be applied separately to each Mobile Home

and each Personal Property claim.

The duration of the named storm, includes the following time period:

(1). beginning at the time a named storm, “watch” or named storm warning is

issued for any part of South Carolina by the National Hurricane Center of

the National Weather Service;

(2). continuing for the time period which the named storm conditions exist

anywhere in this state, and;

Page 14 of 16 WHM1 (11-08)

(3). ending 24 hours following the termination of the last named storm,

“watch” or named storm warning for any part of South Carolina by the

National Hurricane Center of the National Weather Service.

b. Non-named storm deductible – For covered losses not arising out of a named storm,

we will pay the amount of the wind/hail loss in excess of 1% of the Limit of

Liability indicated on the declarations page of this policy. However, the deductible

will not be less than $250 nor more than $25,000.

The deductible amount indicated will be applied separately for each Mobile Home

claim, and each Personal Property claim.

c. Aggregate deductible – The total deductible for all covered claims during the policy

period shall not exceed the named storm deductible. The aggregate deductible shall

apply separately to Mobile Home claims and to Personal Property claims.

Example: If your Coverage A – Mobile Home Limit of Liability is

$100,000, and your named storm deductible is 3%, the amount of

your aggregate deductible for the current policy term will be

$3,000.

If you have two Coverage A – Mobile Home claims of $1,000

each, for a total of $2,000, during the current policy period, you

will not receive any payment under this policy.

If you have two Coverage A – Mobile Home claims during the

policy period, one for $2,000, and another for $20,000, your

damages will have exceeded your aggregate deductible of $3,000.

You will be entitled to recover some of your damages for the

second claim, subject to the terms and conditions of this policy.

24. KNOWLEDGE OR CONTROL.

We will not pay for loss or damage while the chance of loss or damage is increased by any means

within your knowledge or control.

25. SPECIAL PROVISIONS.

a. Any notice, sworn statement or proof of loss which may be required by the provisions of this

policy may be given to the South Carolina Wind and Hail Underwriting Association, and such

notice, statement of proof of loss so given will be valid and binding as to all member companies.

b. In any action or suit under or in any way related to this policy, such action or suit may be brought

against the South Carolina Wind and Hail Underwriting Association as defendant, and service of

process may be made on the South Carolina Wind and Hail Underwriting Association, and such

service will be deemed valid and binding service on all member companies.

c. The South Carolina Wind and Hail Underwriting Association is the agent of the member

Companies with respect to all matters pertaining to the insurance. All notices, process or other

communications required by or in connection with the policy will be given to such agent, at its

office in Columbia, South Carolina, and such notice to the Association will be considered to

constitute notice to the member Companies. Any requests, demands or agreements made by and

any cancellation notice issued by such agent will be deemed to have been made or issued directly

by the Companies.

Page 15 of 16 WHM1 (11-08)

SOUTH CAROLINA WIND AND HAIL UNDERWRITING ASSOCIATION

Agent and

Attorney-in-Fact for the members of the

South Carolina Wind and Hail Underwriting Association

Includes Copyrighted Material of Insurance Services Office, Inc., With Its Permission

Page 16 of 16 WHM1 (11-08)