Dear Agents:
Thank you for your continued support through 2021. We are currently adding important coverages to our portfolio and this announcement focuses on two of these changes.
Our HOMEOWNER and DWELLING FIRE Home Systems Protection and Service Line endorsements have been changed to address coverage enhancements, clarifications, and changes to limits. Please see the attached Agent Bulletin, effective for new business 1/1/2022, for your review of the specifics. The price remains the same, $47 for the homeowner endorsement and $41 for the dwelling fire endorsement.
It is important to note that your existing customers will maintain their current Home Systems Protection and Service Line Coverage endorsement. The revisions detailed below will apply to all NEW HOMEOWNER and NEW DWELLING FIRE customers with a policy effective date of 1/1/2022 and thereafter.
The highlights of the revised Home Systems Protection include:
- Home Systems Protection Limit increased to $100,000.
- The limit of liability under this endorsement is now dependent upon the age of the “covered home equipment.” The most we will pay for a loss, damage or expense arising from any “one home system breakdown” to “covered home equipment” for equipment (a) less than 15 years old is $100,000 or (b) 15 years or older is $1,500 per damaged unit of “covered home equipment.”
- However, if the damaged “covered home equipment” was newly installed and first used within 15 years of the “home system breakdown,” the limit of $100,000 will apply.
- The maximum limit per occurrence under this endorsement is $100,000 regardless of whether a single unit or multiple units of “covered home equipment” are damaged by “one home system breakdown.”
The highlights of the revised Service Line coverage include:
- The definition of “covered service line” has been changed to include piping or wiring that runs under (a) a driveway or walkway or (b) a structure, such as a deck, not immediately above a foundation and raised sufficiently from the ground that such piping or wiring can be accessed without damaging or dismantling any structure.
- The limit of liability under this endorsement is dependent up the age of the dwelling located on the “residence premises” shown in the Declarations. The most we will pay for loss, damage or expense arising from any “one service line failure” is (a) $10,000 for all damaged “covered service lines” if your dwelling is less than 50 years old or (b) $2,500 per damaged “covered service line” if your dwelling is 50 years or older.
- However, if the damaged “covered service line” was newly installed or replaced in its entirety within 50 years of the “service line failure” the limit of $10,000 will apply.
- The maximum limit per occurrence under this endorsement is $10,000 regardless of whether a single “covered service line” or multiple “covered service lines” are damaged by “one service line failure.”
Farmowner Policies that include Farm Guardian (LM-20) or Farm MasterGuard (LM-199)
Our FARMOWNER line of business has added coverage for Replacement Cost loss settlement terms for newer farm equipment and will be INCLUDED in our Farm Guardian and Farm MasterGuard endorsements.
The replacement cost on farm equipment 5 years or newer enhancement coverage is effective 1/1/2022 for all existing and new business customers whose policies include either the Farm Guardian (LM-20) or Farm MasterGuard (LM-199) endorsements. This coverage enhancement is provided at no additional cost.
The endorsements can be found on Loudoun Mutual’s website, www.loudounmutual.com, Agent Resources (when asked for your password it is “lmic1849”) and then click on Manuals and Forms.
As always, we THANK YOU for choosing Loudoun Mutual for your clients and wish everyone a happy and healthy 2022!
