HOMEOWNER'S DECLARATIONS

American Risk Insurance Company, Inc. Policy # HP061689-08

P.O. Box 270627 Renewal
Effective: 01/13/2025
Houston, Texas 77277-0627

Named Insured and Address: Your Agent's Name and Address:

ADAM TREVINO & IRENE C TORRES WENDY A PATTERSON - HARMONY NATIONAL

11842 BARKSTON DR INSURANCE (12555200)
6319 Cypresswood Dr, STE 100
SAN ANTONIO, TX 78253
Spring, TX 77379
Agent Phone 281-937-2091
Policy Number: HP061689-08 Policy Term:
Effective: January 13, 2025 Expiration: January 13, 2026
(12:01 AM Standard Time at the location of the Property Insured)

Payment Plan: FULL

Insurance is to be provided only with respect to the location(s) and/or coverage(s) for which a limit of liability is
specified, subject to all of the conditions of the policy.

Location of Property Insured - 11842 BARKSTON DR SAN ANTONIO, TX 78253

Limits of
Policy Coverages and Limits of Liability Liability Premium

Basic Coverage Limits and Premium

Section l - Property Coverages
Dwelling 303,480 1,802.00
Other Structures 30,348
Unscheduled Personal Property 121,392
Loss of Use 30,348

Section ll - Liability Coverages

Personal Liability Coverage 300,000 25.00
Medical Payments Coverage Each Person/Each Occurrence 1,000 9.00

Other Coverages/Endorsements/Forms
Water Back Up and Sump Overflow 5,000 50.00
Replacement Cost Loss Settlement 270.00
Home Systems Protection 50,000 74.50
Service Line Coverage 10,000 Included

Actual Cash Value Coverage on Roof(s) (41.00)

Actual Cash Value Coverage on Roof(s) 0.00

Subtotal for Basic & Other Coverages: 353.50

Premium Adjustments
Burglar Alarm Credit (145.00)
Financial Responsibility Credit (207.00)
Fire Alarm Credit (104.00)
Preferred Customer Discount (207.00)

Subtotal for Premium Adjustments: (663.00)

Policy & Inspection Fees: 70.00

Texas FAIR Plan Assessment Surcharge: 0.00
Total Annual Premium: 1,637.50
THIS IS NOT A BILL
Page 1 of 4 Policy # HP061689-08 Process Date: 11/29/2024
Original - Insured
Printed Date: 12/10/2024
 HOMEOWNER'S DECLARATIONS
American Risk Insurance Company, Inc. Policy # HP061689-08
P.O. Box 270627 Renewal
Effective: 01/13/2025
Houston, Texas 77277-0627

Named Insured and Address: Your Agent's Name and Address:

ADAM TREVINO & IRENE C TORRES WENDY A PATTERSON - HARMONY NATIONAL
11842 BARKSTON DR INSURANCE (12555200)
SAN ANTONIO, TX 78253 6319 Cypresswood Dr, STE 100
Spring, TX 77379

Policy Number: HP061689-08 Policy Term:

Effective: January 13, 2025 Expiration: January 13, 2026

(12:01 AM Standard Time at the location of the Property Insured)

Payment Plan: FULL

Policy Deductible
For losses arising under Section l, (Coverages A & B), we will pay only that part of the loss in excess of
your deductible:
DEDUCTIBLE CLAUSE 1 - 3,035 DEDUCTIBLE CLAUSE 2 - 3,035 [1 % (minimum 1000)]
WINDSTORM, HURRICANE, HAIL : ALL OTHER PERILS:

Schedule of Forms and Endorsements

ARI HO 42 WBU Water Back Up and Sump Overflow 03/07

ARI HO HSP Home Systems Protection 12/15
ARI HO SLC Service Line Coverage 12/15
ARI HOA 42 ACRS Actual Cash Value Coverage on Roof(s) 06/15
ARI HOA 42 APC Additional Perils Coverage 03/07
ARI HOA 42 ELS Limiting Seepage or Leakage 06/15
ARI HOA 42 RCLS Replacement Cost Loss Settlement 03/07
ARI HOA 42 SP Special Provisions - HOA 03/07
ARIPRIVACY ARI Privacy Policy 08/01
CBRIGHTSEN Consumer Bill of Right - BRHO 2005
CD1 Use of Credit Information Disclosure
HOAForm Homeowners Policy Form A 01/02
ARI HOA 42 ACRS Actual Cash Value Coverage on Roof(s) 03/07

Mortgagee Information

First: GO MORTGAGE, LLC, ISAOA, ATIMA

4215 WORTH AVE
STE 320
COLUMBUS, OH 43219-1546
Loan #: Loan Number: 850131

Second:

Loan #:

Other Interests Information

Page 2 of 4 Policy # HP061689-08 Process Date: 11/29/2024

Original - Insured
Printed Date: 12/10/2024
 HOMEOWNER'S DECLARATIONS
American Risk Insurance Company, Inc. Policy # HP061689-08
P.O. Box 270627 Renewal
Effective: 01/13/2025
Houston, Texas 77277-0627

Named Insured and Address: Your Agent's Name and Address:

ADAM TREVINO & IRENE C TORRES WENDY A PATTERSON - HARMONY NATIONAL
11842 BARKSTON DR INSURANCE (12555200)
SAN ANTONIO, TX 78253 6319 Cypresswood Dr, STE 100
Spring, TX 77379

Policy Number: HP061689-08 Policy Term:

Effective: January 13, 2025 Expiration: January 13, 2026

(12:01 AM Standard Time at the location of the Property Insured)

Payment Plan: FULL

*Please read your policy documents carefully as special conditions and exclusions apply, these
include, among others:

Limited Liability for Watercraft

No Liability Coverage For Animals (Unless Limited Dog Coverage is purchased)
No Liability For Trampolines
No Liability for ATVs or RVs
Special Limit On Guns Of $2500

*Your "Consumer Bill of Rights" and "Use Of Credit Information Disclosure" Is Included With Your
Policy.

Coverage afforded is subject to policy limits, terms and conditions.

Fred Behzadi, President

Page 3 of 4 Policy # HP061689-08 Process Date: 11/29/2024

Original - Insured
Printed Date: 12/10/2024
 HOMEOWNER'S DECLARATIONS
American Risk Insurance Company, Inc. Policy # HP061689-08
P.O. Box 270627 Renewal
Effective: 01/13/2025
Houston, Texas 77277-0627

Named Insured and Address: Your Agent's Name and Address:

ADAM TREVINO & IRENE C TORRES WENDY A PATTERSON - HARMONY NATIONAL
11842 BARKSTON DR INSURANCE (12555200)
SAN ANTONIO, TX 78253 6319 Cypresswood Dr, STE 100
Spring, TX 77379

Policy Number: HP061689-08 Policy Term:

Effective: January 13, 2025 Expiration: January 13, 2026
(12:01 AM Standard Time at the location of the Property Insured)

Payment Plan: FULL

IMPORTANT NOTICE

The limit of liability for this structure (Coverage A) is based on an estimate of the cost to rebuild your home, including an
approximate cost for labor and materials in your area, as specific information that you have provided about your home.

Many factors can affect the cost to replace your home, including its size, type and/or any unique features. The estimate of the
reconstruction cost of your home is based, in part, on the following home characteristic information, which includes information
you provided to us or your agent.

It remains your sole responsibility to maintain a limit of liability for the described dwelling (Coverage A) that adequately
corresponds to the amount it would cost to reconstruct your entire dwelling at current prices. However, as building materials
and labor continually increase, we will keep your coverage in line with inflation, by adjusting your coverage at each renewal.

The dollar amount of each percentage deductible may be affected at renewal if the value or replacement cost of your home
increases or decreases. If so, your policy limits may change and the dollar amounts of your percentage deductibles will
change as a result.

Flood Insurance: You may also need to consider the purchase of flood insurance. Your insurance policy does not include
coverage for damage resulting from a flood even if hurricane winds and rain caused the flood to occur. Without separate flood
insurance coverage, or a special flood endorsement that requires the payment of additional premium, you may have
uncovered losses caused by a flood. Please discuss the need to purchase separate flood insurance coverage with your
insurance agent or insurance company, or visit http://www.floodsmart.gov/.

DWELLING PROFILE
Property Location:
11842 BARKSTON DR SAN ANTONIO, TX 78253
Dwelling Style: Dwelling

Construction: Brick Veneer

Garage Type:

ROOF LOSS SETTLEMENT

Age of Roof: 15 Roof Surface Material Type: Comp

Page 4 of 4 Policy # HP061689-08 Process Date: 11/29/2024

Original - Insured
Printed Date: 12/10/2024
 American Risk Insurance Company, Inc.

IMPORTANT NOTICE To obtain information or make a complaint: You may contact your agent at the telephone number
displayed on your declarations page. You may call American Risk Insurance Company toll-free telephone number for
information or to make a complaint at 1-866-711-1979

You may write the Texas Department of Insurance to obtain information on companies, coverages,
rights or complaints at 1-800-252-3439

You may write the

Texas Department of Insurance, Consumer Protection,
Mail Code 111-1A, P.O.
Box 149091, Austin, Texas 78714-9091

email TDI at ConsumerProtection@tdi.texas.gov

FAX #: (512) 475-1771 Texas Department of Insurance

PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim you should
contact the agent first. If the dispute is not resolved you may contact the Texas Department of Insurance. ATTACH THIS
NOTICE TO YOUR POLICY:

What you should know about enforcing your rights

Sec. 521.051. DEPARTMENT TOLL-FREE NUMBER FOR INFORMATION AND COMPLAINTS.

FILING COMPLAINTS. You have the right to complain to TDI about any insurance company and/or insurance
matter and to receive a prompt investigation and response to your complaint. To do so, you should:
call TDI’s Consumer Help Line at 1-800-252-3439, (512-463-6515 in Austin) for service in both English and
Spanish; or download or complete a complaint form online from the TDI website at www.tdi.texas.gov; or

This notice is for information only and does not become a part or condition of the attached document.

AVISO IMPORTANTE
Para informacion o para someter una queja: Puede comunicarse con su agente al umero de telefono que aparece en la
pagina de declaraciones. Usted puede llamar al numero de telephono gratis de American Risk Insurance Company para
informacion o para someter una queja al 1-866-711-1979

Puede comunicarse con el Departamento de Seguros de Texas para consequir informacion acerca de companias,
coberturas, derechos o quejas al 1-800-252-3439 Puede escribir al Departamento de Seguros de Texas P.O. Box 149104
Austin, TX 78714-9104 FAX #: (512) 475-1771

DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una diputa concerniente a su prima o a un reclamo, debe
comunicarse con el agente primero. Si no se resuelve la disputa, puede entonces comunicarse con el Departmento de
Seguros de Texas. UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y no se convierte
en parte o condicion del documento adjunto.

Toll Free Complaint Procedure

1-866-711-1979 American Risk Insurance Company

P.O. BOX 270627 Main Tel: 713.559.0700

Houston, Texas 77027 www.americanriskinsurance.com Main Fax: 713.559.0799
ADAM TREVINO & IRENE C TORRES
11842 BARKSTON DR
SAN ANTONIO, TX 78253

Policy: HP061689-08
Policy Period: 01/13/2025 01/13/2026
Property Address: 11842 BARKSTON DR SAN ANTONIO, TX 78253

Agent: WENDY A PATTERSON - HARMONY NATIONAL INSURANCE

Agent Phone: 281-937-2091

Mandatory Disclosure of Reduction in Coverage

Dear Insured,

American Risk Insurance is no longer offering Replacement Coverage for your roof covering as it is 15
years or older. Your current Policy is being non-renewed and replaced with a new policy which is enclosed,
as per the Texas Department of Insurance regulations when coverage is reduced. [TAC SEC. 551.103]

This replacement Policy will settle any claim on your roof covering on an Actual Cash Value basis. You
are receiving a 2% discount for this reduction in coverage. All other provisions of your policy will
remain the same unless otherwise notified. We urge you to contact your Agent if you have further
questions.

Sincerely,

Underwriting Department, American Risk Insurance Company, Inc.

CC:

Your Agent:

WENDY A PATTERSON - HARMONY NATIONAL INSURANCE

(12555200)
6319 Cypresswood Dr, STE 100
Spring, TX 77379
Privacy Policy

In the course of our business relationship with you, American Risk Insurance Company
(“ARI” or “we”) collects information about you and the members of your household
(collectively “you”) that is necessary to provide you with our products and services. We
treat this information as confidential and recognize the importance of protecting it. We
value your confidence in us.

We realize that you trust us with an important part of your financial life. Your privacy is
important to us. We ask that you take a few minutes to review our privacy policies which are
designed to protect your personal information.

INFORMATION WE COLLECT

We collect, retain and use information about you, including members of your household,
where we believe that it will help or is necessary to provide you products and services or
otherwise conduct our business. We collect nonpublic personal financial information about
you from the following sources:

• Information we receive from you or through your agent or broker on applications or

other forms;
• Information we receive from or about you in the process of adjusting claims;
• Information about your coverages and loss activity with other carriers; and
• Information we receive from a consumer reporting agency.

Such information includes identifying information such as your name, address, and social
security number; financial information such as your income, payment history or credit
history; and, under certain circumstances, health information such as information about an
illness, disability or injury. It could also include information on claims with other insurance
companies and us and the condition and maintenance of your property.
Any information obtained from a report prepared by an insurance-support organization
may be retained by the insurance support organization and disclosed to other persons.

HOW WE PROTECT YOUR INFORMATION

We restrict access to personal information about you to those individuals, such as our
employees and agents, who provide you with our products and services. Those individuals to
whom we permit access to your customer information are to protect it and keep it confidential.
We maintain physical, electronic, and procedural safeguards that comply with applicable
regulatory standards to guard your nonpublic personal information.

We do not disclose any nonpublic personal information about you, as our customer or former
customer, except as described in this notice.

INFORMATION WE DISCLOSE

We do not disclose any personal information about you to anyone unless allowed by
law. We may disclose personal information about you to:
 • State insurance departments, for their regulation of our business;
• Other government authorities;
• Our agents and brokers as necessary to conduct our business;
• Organizations that perform underwriting and claims investigations;
• Another insurance company to which you have applied for a policy or submitted a
claim;
• Companies that perform marketing services on our behalf or to other financial
institutions with which we have joint marketing agreements
• The Claims Loss Underwriting Exchange
• Insurance support agencies, law enforcement agencies and our reinsurers; and
• Any other third party, as permitted or required by law.

We may disclose all the personal information we have collected, as described above.
However, even if you no longer have a customer relationship with us, we will continue to
follow our privacy policies and practices to protect your information.

YOUR RIGHTS

You have the right to prevent an insurance company, agent, adjuster or financial institution from
disclosing your personal financial information to companies that are not affiliated with the
insurance company or financial institution. Some examples are income, social security number,
credit history and premium payment history.

MODIFICATIONS TO OUR PRIVACY POLICY

We reserve the right to change our privacy practices in the future, which may include sharing
nonpublic personal information about you with affiliated or nonaffiliated third parties. Before we
do that, we will provide you with a revised privacy notice and give you the opportunity to opt-out
of that type of information sharing.

Your Right to Access and Correct Information

Upon your written request, we will send you a copy of relevant information we have about
you in connection with your application for coverage. Please address your request to
Customer Service, American Risk Insurance Company, PO Box 720627, Houston, TX
77277-0627. If you feel that our information is incorrect, let us know and we will review it.
If we agree, we will correct our files. If we do not agree, you may file a short statement
of dispute with us. This statement will be included with any information disclosure we
make in the future, or sent to anyone you designate who may have received such
information in the past two years, or as otherwise required by law.

RECIPIENTS OF THIS NOTICE

We are providing this notice to the named policyholder residing at the mailing address to which
we send your policy information. If there is more than one policyholder on a policy, only the
named policyholder on that policy will get this notice, though any policyholder may request a
copy of this notice. You may receive more than one copy of this notice if you have more than
one policy with American Risk Insurance Company.
FIGURE 1: 28 TAC §5.9970(d)

CONSUMER BILL OF RIGHTS

Homeowners, Dwelling and Renters Insurance

AVISO: Este documento es un resumen de sus derechos como asegurado. Usted tiene el
derecho a llamar a su compañía y pedir una copia de estos derechos en español.

What is the Bill of Rights?

This Bill of Rights is a summary of your rights and does not become a part of your
policy. The Texas Department of Insurance (TDI) adopted the Bill of Rights and requires
insurance companies to provide you a copy when they issue your policy.

Texas law gives you certain rights regarding your homeowners, dwelling and renters
insurance. This Bill of Rights identifies your rights specified by rule or by state statute,
but it does not include all of your rights. Also, some exceptions to the rights are not
listed here. Legislative or regulatory changes to statutes or rules may affect your rights as
an insured. If your agent, company, or adjuster tells you that one of these rights does not
apply to you, contact TDI’s Consumer Protection Program at 1-800-252-3439 (512-463-
6515 in Austin), by mail at Mail Code 111-1A, P.O. Box 149091, Austin, TX 78714-
9091, or by email at ConsumerProtection@tdi.state.tx.us. For a list of the specific law(s)
and/or rule(s) summarized in each item of this Bill of Rights, or if you have questions or
comments contact the Office of Public Insurance Counsel (OPIC) toll free at 1-877-611-
6742, by mail at 333 Guadalupe, Suite 3-120, Austin, TX 78701, or visit the OPIC
website at www.opic.state.tx.us.

This Bill of Rights does not address your responsibilities. Your responsibilities
concerning your insurance can be found in your policy. Failure to meet your obligations
may affect your rights.

Getting information from the Department of Insurance

and your insurance company

1. INFORMATION FROM TDI. You have the right to call TDI free of charge at 1-
800-252-3439 or 512-463-6515 in Austin to learn more about:
• your rights as an insurance consumer;
• the license status of an insurance company or agent;
• the financial condition of an insurance company;
• the complaint ratio and type of consumer complaints filed against an insurance
company;
• use of credit information by insurance companies, including which insurance
companies use it and access to each company’s credit scoring model;
• an insurance company’s rates filed with the state;
• an insurance company’s underwriting guidelines (subject to exemptions in the
Public Information Act, also known as the Open Records Act);
 • the Texas FAIR Plan, designed to help consumers who have been denied coverage
by at least two insurance companies; and
• other consumer concerns.

You can also find some of this information on the TDI website at www.tdi.texas.gov.

At www.helpinsure.com, Texans can find more detailed information on their current and
prospective insurers. TDI, in conjunction with OPIC, maintains this website to help
Texans shop for residential property insurance and personal automobile insurance. For
companies writing in Texas that are in the top 25 company groups nationally, the site also
includes:
• a list of insurers by county and/or ZIP code;
• detailed contact information for each insurer;
• sample rates and a brief history of increases and/or decreases in the rates;
• policy form comparisons;
• a list of policy forms, exclusions, endorsements, and discounts offered by each
insurer; and
• nonconfidential disciplinary actions against each insurer.

2. INFORMATION FROM YOUR INSURANCE COMPANY. You have the right to a

toll-free number to call your insurance company free of charge with questions or
complaints. You can find this number on a notice accompanying your policy. This
requirement does not apply to small insurance companies.

What you should know before you buy insurance

3. PROHIBITED STATEMENTS. Your insurance company or agent is prohibited

from making false, misleading, or deceptive statements to you relating to insurance.

4. LENDER-REQUIRED INSURANCE. A lender cannot require you to purchase

insurance on your property in an amount that exceeds the replacement cost of the
dwelling and its contents as a condition of financing a residential mortgage or providing
other financing arrangements for the property, regardless of the amount of the mortgage
or other financing arrangements. In determining the replacement cost of the dwelling, a
lender cannot include the fair market value of the land on which a dwelling is located.

5. CREDIT INFORMATION. An insurance company cannot deny you insurance solely

on the basis of credit information. Insurers who use credit information must also
consider other underwriting factors independent of credit information when deciding
whether to offer coverage. (For additional information see the section of this Bill of
Rights titled What you should know about insurance companies’ use of credit
information.)

6. APPLIANCE-RELATED WATER DAMAGE CLAIMS. An insurance company

cannot deny you insurance or increase your premium based on a prior appliance-related
water damage claim if:

2
 • the damage has been properly repaired or remediated; and
• the repair or remediation was inspected and certified.

NOTE: A company can use an appliance-related water damage claim if you file three or
more such claims in a 3-year period and the company has paid the claims. A claim
includes a claim filed by you or a claim filed on your property.

7. WATER CLAIMS/MOLD DAMAGE OR CLAIMS. An insurance company cannot

deny you insurance based solely on a single prior water damage claim. An insurance
company also cannot deny you insurance because of prior mold damage or a prior mold
claim if:
• the damage or claim was properly repaired or remediated; and
• the repair or remediation was inspected and certified.

NOTE: A claim includes a claim filed by you or a claim filed on your property.

8. PROPERTY CONDITION. Voluntary Inspection Program: You have the right to

have an independent inspection of your property by any person authorized by the
Commissioner of Insurance to perform inspections. Once the inspector determines that
your property meets certain minimum requirements and issues you an inspection
certificate, no insurer may deny coverage based on property conditions without
reinspecting your property. If an insurer then denies coverage, the insurer must identify,
in writing, the specific problem(s) that makes your property uninsurable. You can find a
list of available inspectors on the TDI website at
www.tdi.texas.gov/company/vipagnt.html or you can contact TDI for the list directly at 1-
800-252-3439.

9. SAFETY NET. You may have the right to buy basic homeowners insurance through
the Texas Fair Access to Insurance Requirements Plan, also known as the Texas FAIR
Plan, if you have been denied coverage by two insurance companies. Your property must
meet certain requirements, and eligibility for FAIR Plan coverage must be re-established
every two years. You can access a list of insurance agents who are authorized to sell this
coverage on the Texas FAIR Plan Association website at www.texasfairplan.org or by
calling 1-800-979-6440 (512-505-2200 in Austin).

10. WINDSTORM COVERAGE. For property located in areas designated by the

Commissioner in certain counties on or near the coast, you may have the right to buy
windstorm and hail coverage from the Texas Windstorm Insurance Association (TWIA),
if you have been denied windstorm coverage by one insurance company in the standard
market currently providing windstorm coverage. Your property must meet certain
requirements, and eligibility for TWIA coverage must be re-established every three years.
You may have to re-establish eligibility sooner than every three years if you have made
any repairs or alterations to your home. Windstorm coverage through TWIA is limited to
a maximum amount set each year by the Commissioner of Insurance. This right applies
whether or not you buy other insurance for your house. In all other counties your
homeowners or dwelling policy includes windstorm and hail coverage unless you request

3
that this coverage be removed from your policy.

NOTE: If you live in a certain flood zone (Zone V, Zone VE and Zone V1-130) and your
dwelling was constructed, altered, remodeled, or enlarged after September 1, 2009, you
must purchase flood insurance through the National Flood Insurance Program (NFIP) in
order to be eligible to purchase windstorm coverage through TWIA. However, if NFIP
does not provide flood insurance in your area, you are not required to purchase it.

11. ELECTRONIC PAYMENTS. If you authorize your insurer to withdraw your

premium payments directly from your financial institution, including your escrow
account, your insurer cannot increase the amount withdrawn unless:
• the insurer notifies you by U.S. mail of the increase in premium at least 30 days
prior to its effective date; and
• you do not notify the insurer that you object to the increase in the amount to be
withdrawn at least five days prior to the increase.
The notice provided by the insurer must include a toll-free number, a mailing address and
an email address (if applicable), through which you can contact the insurer to object to
the increase.

NOTE: This does not apply to premium increases specifically scheduled in the original
policy, to increases based on policy changes you request, or to an increase that is less
than $10 or 10 percent of the previous month’s payment.

12. NOTICE OF REDUCED COVERAGE. If an insurer uses an endorsement to

reduce the amount of coverage provided by your policy, the insurer must give you a
written explanation of the change made by the endorsement. The insurer must provide
the explanation not later than the 30th day before the effective date of the new or renewal
policy. An insurance company cannot reduce coverage during the policy period unless
you request the change. If you request the change, the company is not required to
provide notice.

13. NOTICE OF PREMIUM INCREASE. If your insurer intends to increase your

premium by 10 percent or more upon renewal, the insurer must send you notice of the
rate increase at least 30 days before your renewal date.

14. EXPLANATION OF DENIAL. Upon request, you have the right to be told in
writing why you have been denied coverage. The written statement must fully explain
the decision, including the precise incidents, circumstances, or risk factors that
disqualified you. It must also state the sources of information used.

NOTE: The obligation to provide a written explanation applies to insurance companies

directly. An independent agent does not have a specific duty to quote the lowest possible
rate to a consumer or to provide a written statement explaining why the agent did not
offer the consumer the lowest possible rate.

15. CUSTOMER INQUIRY. An insurance company cannot use a customer inquiry as a

4
basis for denying you coverage or determining your premium.

NOTE: A customer inquiry includes:

• general questions about your policy;
• questions concerning the company’s claims filing process; and
• questions about whether the policy will cover a loss unless the question concerns
specific damage that has occurred and that results in an investigation or claim.

16. RATE DIFFERENTIAL WITHIN A COUNTY. If an insurer subdivides a county

for the purposes of charging different rates for each subdivision, the difference between
the lowest and the highest rate cannot exceed 15 percent unless actuarially justified.

17. RIGHT TO PRIVACY. You have the right to prevent an insurance company, agent,
adjuster, or financial institution from disclosing your personal financial information to
companies that are not affiliated with the insurance company or financial institution.
Some examples are income, social security number, credit history, and premium payment
history.

If you apply for a policy, the insurance company or financial institution must notify you
if it intends to share financial information about you and give you at least 30 days to
refuse. This refusal is called “opting out.” If you buy a policy, the insurance company or
financial institution must tell you what information it collects about you and whether it
intends to share any of the information, and give you at least 30 days to opt out. Agents
and adjusters who intend to share your information with anyone other than the insurance
company or financial institution must give you similar notices.

You can opt out at any time. Your decision to opt out remains in effect unless you
revoke it.

These protections do not apply to information:

• publicly available elsewhere;
• insurance companies or financial institutions are required by law to disclose; or
• insurance companies or financial institutions must share in order to conduct
ordinary business activities.

What you should know about cancellation and nonrenewal

Cancellation means that before the end of the policy period the insurance company:
• terminates the policy;
• reduces or restricts coverage under the policy; or
• refuses to provide additional coverage to which you are entitled under the policy.

Refusal to renew and nonrenewal mean the policy terminates at the end of the policy
period.

The policy period is shown on the declarations page at the front of your policy.

5
18. LIMITATION ON CANCELLATION FOR HOMEOWNERS AND RENTERS
POLICIES. After your initial homeowners or renters policy with your company has
been in effect for 60 days or more, that insurance company cannot cancel your policy
unless:
• you don’t pay your premium when due;
• you file a fraudulent claim;
• there is an increase in the hazard covered by the policy that is within your control
and results in an increase in the premium rate of your policy; or
• TDI determines continuation of the policy would result in violation of insurance
laws.

If your policy has been in effect for less than 60 days, your insurance company cannot
cancel your policy unless:
• one of the reasons listed above applies;
• the insurance company identifies a condition that:
• creates an increase in hazard;
• was not disclosed on your application; and
• is not the subject of a prior claim; or
• the insurance company rejects a required inspection report within 10 days after
receiving the report. The report must be completed by a licensed or authorized
inspector and cannot be more than 90 days old.

19. LIMITATION ON CANCELLATION FOR DWELLING POLICIES. After your

initial dwelling policy with your company has been in effect for 90 days, that insurance
company cannot cancel your policy unless:
• you don’t pay your premium when due;
• you file a fraudulent claim;
• there is an increase in the hazard covered by the policy that is within your control
and results in an increase in the premium rate of your policy; or
• TDI determines continuation of the policy would result in violation of insurance
laws.

20. NOTICE OF CANCELLATION. To cancel your policy, your insurance company

must mail notice at least 10 days prior to the effective date of the cancellation. Your
policy may provide for even greater notice.

21. POLICYHOLDER’S RIGHT TO CANCEL. You have the right to cancel your
policy at any time and receive a refund of the remaining premium.

22. CHANGE IN MARITAL STATUS. If your marital status changes, you have the
right to continue your insurance coverage. You have a right to a new policy in your name
with coverages that most nearly approximate the coverages of your prior policy,
including the same expiration date. The insurance company cannot date the new policy
so that a gap in coverage occurs.

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23. USE OF CLAIMS HISTORY TO NONRENEW OR DETERMINE RENEWAL
PREMIUM. Your insurance company cannot use claims you filed as a basis to
nonrenew your policy unless:
• you file three or more claims in any 3-year period; and
• your insurer notified you in writing after the second claim that filing a third claim
could result in nonrenewal of your policy.

Your insurance company cannot use the following types of claims to determine the
number of claims you have filed or to determine your premium if your policy is renewed:
• claims for damage from natural causes, including weather-related damage;
• appliance-related water damage claims where the repairs have been inspected and
certified; or
• claims filed but not paid or payable under the policy.

NOTE: An insurance company can count appliance-related claims if three or more such
claims are filed and paid within a 3-year period.

24. USE OF CREDIT INFORMATION TO NONRENEW. An insurance company

cannot refuse to renew your policy solely on the basis of credit information. Insurers
who use credit information must also consider other underwriting factors independent of
credit information when deciding whether to renew coverage. (For additional
information see the section of this Bill of Rights titled What you should know about
insurance companies’ use of credit information.)

25. NOTICE OF CHANGE IN POLICY FORM. Your insurer must notify you in
writing of any difference between your current policy and each policy offered to you
when the policy renews. In certain instances your insurance company must also provide
a comparison between the policy offered and policies adopted by the Commissioner of
Insurance.

26. NOTICE OF NONRENEWAL. If the insurance company does not mail you notice
of nonrenewal at least 30 days before your policy expires, you have the right to require
the insurance company to renew your policy.

27. EXPLANATION OF CANCELLATION OR NONRENEWAL. Upon request, you

have the right to a written explanation of an insurance company's decision to cancel or
nonrenew your policy. The written statement must fully explain the decision, including
the precise incidents, circumstances, or risk factors that disqualified you. It must also
state the sources of information used.

What you should know when you file a claim

28. FAIR TREATMENT. You have the right to be treated fairly and honestly when you
make a claim. If you believe an insurance company has treated you unfairly, call TDI at
1-800-252-3439 (512-463-6515 in Austin) or download a complaint form from the TDI
website at www.tdi.texas.gov. You can complete a complaint form on-line via the

7
internet or fax a completed form to TDI at 512-475-1771.

29. SETTLEMENT OFFER. You have the right to reject any settlement amount,
including any unfair valuation, offered by the insurance company. If you reject a
settlement offer, your options include continuing to negotiate with the insurer or pursuing
legal remedies, such as mediation, arbitration, or filing a lawsuit. You have the right to
have your home repaired by the repair person of your choice.

30. EXPLANATION OF CLAIM DENIAL. Your insurance company must tell you in
writing why your claim or part of your claim was denied.

31. TIMEFRAMES FOR CLAIM PROCESSING AND PAYMENT. When you file a
claim on your own policy, you have the right to have your claim processed and paid
promptly. If the insurance company fails to meet required claims processing and
payment deadlines, you have the right to collect 18 percent annual interest and attorney's
fees in addition to your claim amount.

Generally, within 15 calendar days, your insurance company must acknowledge receipt
of your claim and request any additional information reasonably related to your claim.
Within 15 business days (30 days if the company reasonably suspects arson) after receipt
of all requested information, the company must approve or deny your claim in writing.
The law allows the insurance company to extend this deadline up to 45 days if it notifies
you that more time is needed and tells you why.

After notifying you that your claim is approved, your insurance company must pay the
claim within five business days.

If your claim results from a weather-related catastrophe or other major natural disaster as
defined by TDI, these claims handling deadlines are extended for an additional 15 days.

32. RELEASE OF CLAIM FUNDS. Often an insurance company will make a claim
check payable to you and your mortgage company or other lender and will send it to the
lender. In that case, the lender must notify you within 10 days of receipt of the check and
tell you what you must do to get the funds released to you.

Once you request the funds from the lender, within 10 days the lender must:
• release the money to you; or
• tell you in specific detail what you must do to get the money released.

If the lender does not provide the notices mentioned above or pay the money to you after
all requirements have been met, the lender must pay you interest on the money at 10
percent per year from the time the payment or the notices were due.

33. NOTICE OF LIABILITY CLAIM SETTLEMENT. Your insurance company must

notify you if it intends to pay a liability claim against your policy. The company must
notify you in writing of an initial offer to compromise or settle a claim against you no

8
later than the 10th day after the date the offer is made. The company must notify you in
writing of any settlement of a claim against you no later than the 30th day after the date
of the settlement.

34. INFORMATION NOT REQUIRED FOR CLAIM PROCESSING. You have the
right to refuse to provide your insurance company with information that does not relate to
your claim. In addition, you may refuse to provide your federal income tax records
unless your insurer gets a court order or your claim involves lost income or a fire loss.

What you should know about prohibited discrimination

35. PROTECTED CLASSES. An insurance company cannot discriminate against you

by refusing to insure you; limiting the amount, extent or kind of coverage available to
you; charging you a different rate for the same coverage; or refusing to renew your
policy:
• because of race, color, religion, gender, marital status, disability or partial
disability, or national origin; or
• unless justified by actual or anticipated loss experience, because of age or
geographic location.

36. AGE OF HOUSE. An insurance company cannot refuse to insure your property
based on the age of your house. However, an insurance company may refuse to sell you
insurance coverage based on the condition of your property, including the condition of
your plumbing, heating, air conditioning, wiring, and roof.

37. VALUE OF PROPERTY. An insurance company cannot refuse to insure your

property because the value is too low or because the company has established minimum
coverage amounts.

38. UNDERWRITING GUIDELINES. Underwriting guidelines may not be unfairly

discriminatory and must be based on sound actuarial principles.

39. EQUAL TREATMENT. Unless based on sound actuarial principles, an insurance

company may not treat you differently from other individuals of the same class and
essentially the same hazard. If you sustain economic damages as a result of such unfair
discrimination, you have the right to sue that insurance company in Travis County
District Court.

If your suit prevails, you may recover economic damages, court costs and attorney and
necessary expert witness fees. If the court finds the insurance company knowingly
violated your rights, it may award up to an additional $25,000 per claimant.

You must bring the suit on or before the second anniversary of the date you were denied
insurance or the unfair act occurred or the date you reasonably should have discovered
the occurrence of the unfair act. If the court determines your suit was groundless and you
brought the lawsuit in bad faith, or brought it for the purposes of harassment, you will be

9
required to pay the insurance company’s court costs and attorney fees.

What you should know about insurance companies’

use of credit information

40. REQUIRED DISCLOSURE. If an insurance company uses credit information to

make underwriting or rating decisions, the company must provide you a disclosure
statement within 10 days after receiving your completed application for insurance.

The disclosure indicates whether the insurer will obtain and use your credit information
and lists your specific legal rights, including:
• credit information insurance companies cannot use against you;
• how you can get reasonable exceptions that your insurer is required to make to its
use of credit information if certain life events, such as divorce, death of a close
family member, or identity theft, hurt your credit;
• the notice* an insurer must send you when making a credit-based decision that
harms your ability to get or keep insurance or requires you to pay a higher
premium; and
• how you can dispute credit information and require an insurer to re-rate your
policy if the rate was increased because of inaccurate or unverifiable credit
information.

* The notice must include a description of up to four primary factors that influenced the
action taken by the insurer.

Insurers must use the disclosure form (CD-1) adopted by the Commissioner or an
equivalent disclosure form filed prior to use with TDI. The CD-1 is available at
www.tdi.texas.gov/forms/pcpersonal/pc328crdtds.pdf or by calling 1-800-252-3439.
Additional information regarding insurers’ use of credit information is available at
www.tdi.texas.gov/credit/credit.html.

What you should know about enforcing your rights

41. FILING COMPLAINTS. You have the right to complain to TDI about any
insurance company and/or insurance matter and to receive a prompt investigation and
response to your complaint. To do so, you should:
• call TDI’s Consumer Help Line at 1-800-252-3439, (512-463-6515 in Austin) for
service in both English and Spanish;
• write to the Texas Department of Insurance, Consumer Protection, Mail Code
111-1A, P.O. Box 149091, Austin, Texas 78714-9091;
• email TDI at ConsumerProtection@tdi.state.tx.us;
• fax your complaint to 512-475-1771;
• download or complete a complaint form online from the TDI website at
www.tdi.texas.gov; or

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 • call the TDI Publications/Complaint Form order line at 1-800-599-SHOP (7467),
(512-305-7211 in Austin). The order line is available 24 hours a day, 7 days a
week.

NOTE: TDI offers interpreter services and publications in alternate formats. Persons
needing more information in alternate layouts or languages can call the TDI Consumer
Help Line listed above.

42. RIGHT TO SUE. If an insurance company violates your rights, you may be able to
sue that company in court, including small claims court, with or without an attorney.

43. BURDEN OF PROOF. If you sue to recover under your insurance policy, the
insurance company has the burden of proof as to any application of an exclusion in the
policy and any exception to or other avoidance of coverage claimed by the insurer.

44. REQUESTING NEW RULES. You have the right to ask in writing that TDI make
or change rules on any residential property insurance issue that concerns you. Send your
written request to: Texas Department of Insurance, Attn: Commissioner (113-2A), P.O.
Box 149104, Austin, TX 78714-9104.

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 AMENDATORY ENDORSEMENT WITH FIFTEEN YEAR OLD OR OLDER ROOF COVERING LIMIT
(For use with Texas Homeowners Policy Form ARI HOA 42 RCLS (03/07))
THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ THIS DOCUMENT CAREFULLY AND
KEEP IT WITH YOUR POLICY.

This endorsement changes your policy. Please read this (3) If, at the time of loss, the actual cash value
document carefully and keep it with your policy. of the damaged structure(s) is greater than
SECTION 1 - CONDITIONS the replacement cost determined under (1)
The Loss Settlement Condition contained in the policy and or (2) above, we will pay the actual cash
the REPLACEMENT COST LOSS SETTLEMENT value up to the applicable limit of liability.
ENDORSEMENT is replaced by the following: In determining the amount of insurance
4. Loss Settlement. Covered property losses are settled as required to equal 80% of the full replacement
follows: cost of the dwelling, do not include the value of
a. Our limit of liability and payment for covered losses excavations, underground pipes, and wiring and
to roof covering fifteen years old or older, personal foundations which are below the surface of the
property, wall to wall carpeting, cloth awnings and ground.
fences will not exceed the smallest of the following:
(1) the actual cash value at the time of loss We will pay only the actual cash value of the
determined with proper deduction for damaged building structure(s) until repair or
depreciation; replacement is completed. Repair or
(2) the cost to repair or replace the damaged replacement must be completed within 365 days
property with material of like kind and after loss unless you request in writing that this
quality, with proper deduction for time limit be extended for an additional 180
depreciation; or days. Upon completion of repairs or
(3) the specific limit of liability of the policy. replacement, we will pay the additional amount
b. Our limit of liability for covered losses to dwelling claimed under replacement cost coverage, but
and other structure(s) under Coverage A (Dwelling), our payment will not exceed the smallest of the
except roof covering fifteen years old or older, wall following:
to wall carpeting, cloth awnings and fences, will be (1) The limit of liability under this policy
at replacement cost settlement subject to the applicable to the damaged or destroyed
following: building structure(s);
(1) If, at the time of loss, the Coverage A (2) The cost to repair or replace that part of the
(Dwelling) limit of liability is 80% or more building structure(s) damaged, with
of the full replacement cost of the dwelling, material of like kind and quality and for the
we will pay the repair or replacement cost same use and occupancy on the same
of the damaged building structure(s), premises; or
without deduction for depreciation. (3) The amount actually and necessarily spent
to repair or replace the damaged building
(2) If, at the time of loss, the Coverage A structure(s).
(Dwelling) limit of liability is less than If you provide no verification that your roof covering is
80% of the full replacement cost of the less than fifteen years old, your roof covering loss will
dwelling, we will pay only a proportionate be determined using 4, Loss Settlement a. above.
share of the full replacement cost of the
damaged building structure(s). Our share is All other provisions of your policy apply.
equal to:

Coverage A
Replacement (Dwelling) Limit of
Cost of the X Liability
Loss 80% of Replacement
Cost of the Dwelling

ARI HOA 42 ACRS (06/15)