Arbella has received approval for filed changes to our Homeowners and Dwelling Fire programs for policies effective January 1, 2013 and later. The key factors that led to this change are the adverse weather in 2011 and 2012, and continuing increased reinsurance costs. 

HOMEOWNERS 

Rate Changes

• HO-3 Base Rate Changes

There will be a base rate change of 8.1% which varies by territory. There will be no change to base rates for HO4 and HO6 policies.  

• Age of Dwelling Factor (HO3 only)

For homes built prior to 1925 we will apply 5% to the policy base premium.

• Refrigerated Property HO 0498 - All forms

Premium for this coverage is now $40.

• Water Backup and Sump Discharge or Overflow 11AR1278 - HO3 only

Premium for this coverage is now $125.

• Off Premises Power Outage Reimbursement 11AR1277 - All Forms

Premium for this coverage is now $40.

• Elite Tier (HO3 only)

There will be an additional 5% base rate increase.

Revised Woodstove Surcharge Rule

We have updated the name of this rule from Woodstove to Secondary Heating Source Surcharge. This surcharge will now apply to all homes with a secondary heating source such as a wood, coal or pellet stove.

Arbella Endorsements:

Additional Protection Package 11AR1063

• The endorsement language has been revised to indicate that coverage for debris removal only applies if damage is done to a covered structure, unless the tree blocks driveway access to your motor vehicle or handicap entrance.
• We will now cover branches or limbs that are in imminent danger of damaging a covered structure.
• The refrigerated property coverage under this endorsement has been reduced to $250.

Special Coverage Endorsement 11AR1034

• The debris removal limit has been reduced to $500. In addition, the endorsement language has been revised to indicate that coverage for debris removal only applies if damage is done to a covered structure unless, the tree blocks driveway access to your motor vehicle or handicap entrance.
• We will now cover branches or limbs that are in imminent danger of damaging a covered structure.
• The limit for refrigerated property has been reduced to $250. 
• These changes will apply to Topsail 11AR1279, Schooner 11AR1241 and Condo Schooner 11AR1273.

A policyholder notice 11AR1291 will be sent with renewal declarations advising those who are impacted of these changes.

DWELLING FIRE

•  DP-3 base rate change of 8.9% for all territories.

•  A 10% Loss Surcharge may be applied to the policy as a result of the policyholder's loss history. We have not had a surcharge on our dwelling fire product to properly rate policies that are having above average loss activity. This is subject to underwriter discretion and may be applied at either policy inception or upon renewal.

Due to the combination of these factors the overall filed rate is 9.4%.

Please keep in mind that your clients can still save five percent on their Dwelling Fire insurance if their property has one of the several common loss-mitigation systems in place, including but not limited to:

• Automatic backup power generator
• Sump pump battery backup system
• Shatter-resistant or hurricane-proof windows

All of these changes will be available on Arbella Connect on Tuesday, November 27, 2012. If you have any questions, please contact your territory manager or underwriter.

Thank you for your business and continued support.  

Jim Hyatt

Vice President, Personal Lines

Arbella Insurance Group