In order to remain competitive and support profitable growth with our agents, Arbella continues to evaluate our Homeowners, Dwelling Fire, and Umbrella lines of business. Starting with policies effective January 1, 2014 we are implementing changes including a modest rate change, a new discount in our condo program, increased coverage options for blanket coverage, and higher Umbrella limit options for some inexperienced operators.

HOMEOWNERS

Arbella Endorsements and Credits

New Condo Credit - HO-6 only

First Time Condo Owner credit is available for New Business with Arbella for first time condo owners.  A 7% credit will apply at New Business and 3.5% will continue at initial renewal only. See Homeowners Manual Rule 3a for eligibility.

Loyalty Credit

Loyalty Credit is no longer available for monoline HO-3 policies.  HO-4 and HO-6 monoline policies will still receive the credit.

Auto Rewards Loyalty Credit

Credit for HO-3 is changing from 5% to 3%.  HO-4 and HO-6 will remain at 5%.

Blanket Coverage Property Endorsement - 11AR1242

The maximum per item limit will increase in the following classes:

o    Jewelry from $2,500 to $10,000

o    Fine Arts without Breakage from $2,500 to $10,000

o    Fine Arts with Breakage from $2,500 to $10,000

The maximum class limit for Jewelry will increase from $20,000 to $50,000.

Rates

HO-3 Base Rate

There will be an HO-3 base rate change for all territories with overall impact of 5%.  There will be no change to base rates for HO-4 and HO-6 policies.

Additional Changes

o    The factor for 2 family homes in the Preferred tier only is changing from 1.10 to 1.15 for renewal business.

o    3% and 4% named storm deductibles will now be available.   

Due to the combination of rates, discounts and factor changes, the overall impact is 7.1%.

DWELLING FIRE

o    There will be a DP-3 base rate change of 8% for all territories.

o    The base deductible will increase from $250 to $500.

o    3% and 4% named storm deductibles will now be available.

UMBRELLA

o    Minimal base rate increases in the 250/500 and 500/500 liability programs with an overall impact of 2.8%.

o    Guideline Changes

o    Risks with an inexperienced operator licensed less than three years with a clear driving record can have a liability limit up to $3 million.

o    Risks with an inexperienced operator licensed three to less than six years with a clear driving record can have a liability limit up to $5 million.

All updates will be available on Arbella Connect™ on Saturday, November 23, 2013.  If you have any questions, please contact your territory manager or underwriter.