American Home Insurance Guide by Richmond American Homes

You’ve found your dream home. Now it’s time to insure it! This guide was developed to answer some common questions about the policies you’ll need, different coverage options available, how you can save money on insurance premiums and what to expect from your licensed agent. FREQUENTLY ASKED QUESTIONS ABOUT INSURANCE

WHAT’S INSIDE? Rate quote checklists | Coverage highlights | Insurance glossary | And more!

Why choose AHI? One-stop shopping! We work with Richmond American homebuyers every day, so you can enjoy a streamlined quoting and insuring process. Call us at 855.382.4565 or visit us online at AmericanHomeInsurance.com to get started.

What factors affect my insurance rates? Insurance rates are highly personalized to fit your specific circumstances. We’ve listed some factors below, but your licensed American Home Insurance (AHI) agent will work with you to find the right coverage, terms and pricing for your individual needs. Home insurance rate factors include • The cost to rebuild your home • Building costs in your area • Type of construction materials used • Optional coverages • Likelihood of damage due to a disaster such as wildfire, wind (including hurricane) or hail • Distance to a fire hydrant and fire station • Prior claims history, including previous losses at another residence Auto insurance rate factors include • Your driving record • Zip code territory (where you live and drive most often) • Vehicle usage • Cost to repair your vehicle • Vehicle safety features • Optional programs that monitor your driving and reward you for good driving habits

Remember: The lower your homeowners insurance premiums, the lower your monthly mortgage payments!

Smart ways to save… Consider choosing a higher deductible. It can save you money on premiums and also make you less likely to file small claims. Bundle home and auto policies for a discount. In addition to saving money on premiums, having a multi-policy bundle may provide you with a Single Deductible coverage at no additional cost.

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How long does it take to insure a new home? The total amount of time you’ll spend on shopping and securing homeowners insurance is typically less than an hour, spread out across the homebuying process from contract to closing day. Here’s an idea of what that looks like:

CONTRACT DAY Your Richmond American sales associate will introduce you to American Home Insurance Agency (AHI) by briefly walking you through the AHI Guidebook. Once you’ve viewed the guidebook, you can forget about insurance for a while and focus on the fun of planning your move!

60 DAYS BEFORE CLOSING Your Richmond American sales associate will reach out to remind you that AHI will be in contact soon to start the insurance process. At that time, you will be given the opportunity to complete the insurance questionnaire on AmericanHomeInsurance.com.

50 DAYS BEFORE CLOSING It’s time to check in and discuss your options! Your licensed AHI agent will contact you to gather additional information, review your coverage needs and suggest ways to save you more on your premiums, such as bundling home and auto policies. They’ll go over the current insurance market with you and highlight well-established insurance companies to help you choose the one that fits your needs. This is a great time to ask questions before we finalize your quotes.

10 MINUTES

15 MINUTES

30 DAYS BEFORE CLOSING Your AHI agent will present your insurance proposal, designed to match your coverage needs and budget. They’ll be prepared to discuss coverage options like limits and deductibles, and to answer any questions.

21 DAYS BEFORE CLOSING It’s time to give your final approval! Tell your agent what you’ve decided and they will bind your coverage. After that, your agent will work directly with your lender and provide them with everything they need to make your closing as smooth as possible.

20 MINUTES

CLOSING DAY & BEYOND Your service team at AHI will be there to support you through your life’s changing insurance needs. Whatever you and your family are up to, AHI is here to help!

15 MINUTES

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Why choose AHI? Personalized service! We know you don’t want to retell your story every time you have a question. That’s why you’ll have a dedicated, licensed insurance agent. Not an automated phone service, but a real person with a direct line, waiting to help you protect your biggest assets and answer any questions you might have now and in the future.

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What info will I need to provide to get a quote? It’s a good idea to have the following information on hand when you want to get a home or auto insurance quote. Your AHI agent will let you know if there’s anything else we need to collect from you.

 Date of birth  Occupation(s)  Marital status  Prior loss history  Current insurance carrier  Will this home be used as your primary residence?  Do you need to insure high-value items such as jewelry or fine artwork?  Do you have any pets? If you have a dog, what is the breed?  Will you have a hot tub, pool or trampoline?  Will there be a business operated from the home? Home insurance checklist

New home info:  Address  Model  Square footage  Number of bathrooms  Number of garages; RV garage  Alarm system  Exterior construction  Roof materials  Patio or deck  Upgrades to kitchen or bathrooms  Fireplace

Auto insurance checklist Drivers in the household:  Names  Dates of birth

Vehicles:  Year  Make  Model  VIN

Current auto policy:  Carrier  Coverages & deductibles  Length of policy term (6 or 12 months)  Premium

 Driver’s license numbers  3-year driving history (including violations & claims)

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Why choose AHI? Added convenience! If you’re buying a Richmond American home, we already have info on its specifications and are familiar with what needs to be covered. All you’ll need to do is confirm the details, and we’ll take it from there. Learn more at AmericanHomeInsurance.com .

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Why choose AHI? Always up-to-date market info! Our licensed insurance agents stay on top of the latest insurance developments and offerings. From identity fraud coverage to insurance for your snowmobile, we can help. If you’re looking for something specific, but you don’t see it, please ask us!

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What does insurance cover? What’s covered by insurance depends on what type of policy you choose. Below are some common options and examples that may apply (subject to limits). For more information about each type of coverage, check out the glossary on page 10.

COVERAGE TYPE

EXAMPLE CLAIMS

PAYS FOR…

A pipe in your kitchen bursts and water damages your walls, cabinets, countertops, appliances and hardwood floors. During a windstorm, a tree falls and damages your shed, fence, deck and pool. Lightning strikes your home and damages your TV. There was a fire in your home, so you can't stay there while it’s under repair. A delivery person slips and falls at your house and sues you for their medical bills, lost wages and damaged merchandise. Or, your child spray paints your neighbor's garage and they sue you. Your child's friend breaks her arm at your house, and their parents ask you to pay the medical bill. You lose control of your vehicle and hit your neighbor, who is standing in their driveway, along with their car and mailbox. Your car’s windshield and exterior are damaged by hail. Your car skids on an icy highway and plows into a guardrail, causing damage to your vehicle. You suffer minor injuries when another driver runs a red light and clips your car’s rear fender. The other driver is uninsured. You crash your boat into the pier when trying to dock it, causing damage and injuring people on the pier. You turn too sharply while maneuvering through a wooded campground, scraping the side of your trailer against a stout oak tree. You misjudge a turn on at a rural intersection and put the bike down. You escape with a few cuts and bruises, but your bike needs to be repaired. You're sued for $1 million after an auto acci- dent. However, your auto insurance only covers up to $500,000 in damages (which is often the highest amount of liability insurance available for standard home and auto insurance).

Repair or replacement of what's damaged and water removal, minus your deductible Repair or replacement of the damaged structures and tree removal, minus your deductible

Dwelling

Other structures

Personal property

Repair or replacement of the TV, minus your deductible

Reimbursement for meals beyond what you’d usually spend, plus rent/hotel expenses (with receipts provided for documentation) Damages and legal fees you’re required to pay as the result of a lawsuit for injury or property damage to others, up to the coverage limit

Loss of use

Personal liability

Medical payments

Medical costs associated with the injury

Your neighbor’s medical costs and the cost to repair their mailbox and vehicle

Liability

Comprehensive

Your repair/replacement costs, minus your deductible

Collision

Your repair/replacement costs, minus your deductible

Uninsured motorist

Your medical costs and vehicle repair costs

The pier damage and people’s injuries up to your policy’s limits

Boat/watercraft

RV

Your repair/replacement costs, minus your deductible

Motorcycle

Your repair/replacement costs, minus your deductible

Umbrella

The remaining $500,000 that’s your responsibility

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Actual coverage decisions may vary from examples provided above. Ask your insurance agent for information about your specific circumstances.

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Which insurance companies will AHI quote?

AHI is an independent insurance agency. That means we shop across a variety of well-established insurance companies to find you the best combination of coverage terms, conditions and pricing available. If your rates go up or your coverage needs change in the future, we’ll be here to help you check out your options again.

Why choose AHI? We work for you! Getting you the most comprehensive coverages at a competitive price is our top priority.

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GLOSSARY OF COMMON INSURANCE TERMS

MARKET VALUATION: A valuation of how much your home is worth in today’s current market. Insurance carriers will insure your home for the replacement cost of your home rather than the market value. MEDICAL PAYMENT COVERAGE: If a person, other than you or a resident of your household, is injured on the insured premises, this coverage will pay medical expenses subject to the limits on the policy. PERSONAL LIABILITY COVERAGE: A policy that provides protection if you or an insured resident are unintentionally but legally liable for causing bodily injury to another person or cause damage to another person’s property. REPLACEMENT COST: The amount it costs to replace your damaged or destroyed property, subject to the limits shown in your declaration page and policy. ADDITIONAL DWELLING REPLACEMENT COST ENDORSEMENT: An added layer of protection if it costs more to rebuild your home than what it’s insured for. Coverage options may vary. PERSONAL PROPERTY REPLACEMENT COST ENDORSEMENT: Insurance that pays the dollar amount needed to replace damaged personal property with items of like kind or quality without deduction for depreciation. UMBRELLA COVERAGE: A policy that provides additional liability coverage over your auto and other personal lines’ liability policies. It acts as a safety net providing extra coverage once your underlying liability limits have been exhausted. Umbrella coverage is sold as a separate policy. You don't need to be a millionaire to require an extra million dollars in liability coverage. UNINSURED AND UNDERINSURED MOTORIST COVERAGE: A policy that pays for your injuries and damaged property if you're hit by a driver with little or no car insurance.

AUTO LIABILITY COVERAGE: A policy that pays for property damage and injuries you cause to others while driving. It also covers court and attorney costs.

COLLISION COVERAGE: A policy that pays for damages to your vehicle if you're in an accident, regardless of fault.

COMPREHENSIVE COVERAGE: A policy that repairs or replaces your vehicle if it's damaged due to theft, vandalism, hitting an animal, fire, or acts of nature. You're also covered for any glass damage. EXCLUSION: Insurance policies may exclude coverage for specific situations, conditions or circumstances that are listed in the insurance policy contract. The insurance company will not pay the repair or replacement in the event it falls under the specific situation, condition or circumstance as outlined in your policy as being excluded.

INFLATION PROTECTION: This annually adjusts your policy limits to compensate for inflation.

INSURANCE CLAIM: Your formal request for the insurance company to reimburse you for damages.

INSURANCE DEDUCTIBLE: What you pay out of pocket after your claim is approved.

INSURANCE POLICY RIDER: Riders are optional coverages that are available to enhance your homeowners policy. Possible riders are jewelry riders, replacement cost coverage on your home, replacement cost coverage on contents, water/sewer backup, etc. For example, homeowners purchase riders when the valuables they wish to insure are excluded from the standard policy or when the standard policy will only cover a portion of the item’s value. INSURANCE PREMIUM: The amount of money you pay (usually over the course of a year) for your insurance policy. You’ll pay a higher or lower premium depending on how large your deductible is, what you are insuring and a variety of other factors.

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ABOUT OUR AFFILIATES

Richmond American Homes companies have been building new homes for families since 1977. Our calling cards?

Quality craftsmanship, timeless value and a personalized homebuying experience from start to finish. We understand your home is one of the most important purchases of your life and we want to get it right. Whether you’re deciding on your neighborhood, your floor plan or your bathroom tile, it’s the personal touches that make the difference when you build a home from the ground up. And that’s what Richmond American is all about. With us, it’s personal.™ Call 866.470.0891 or visit RichmondAmerican.com to get started today.

HomeAmerican Mortgage Corporation has been a proud affiliate of Richmond American Homes since

1983. We are dedicated to providing a tailored financing experience for every customer. As a full-service lender, HomeAmerican can help you sort through the lending lingo and uncover your personal buying power. We would be happy to look at your personal finances and present you with mortgage solutions designed to meet your needs. Our experienced loan officers are available to answer any questions you may have regarding financing your new home, or refinancing your existing home. Call 844.283.3642 or visit HomeAmericanMortgage.com to learn more.

At American Home Title, we understand what your home means to you and we want to help you protect it.

Our staff of dedicated professionals will take the time to guide you through the process to protect against adverse title claims and risks that may not surface until long after your settlement. Call us at 844.264.9586 or visit AHTECO.com for more information. Services are available in Colorado, Florida, Maryland, Nevada and Virginia.

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American Home Insurance Agency, also known as AHI Insurance Agency, has been an affiliate of Richmond American Homes since 1998 with the vision of providing convenient service, competitive rates and comprehensive coverage. Whether you need to insure your new home, your car or your snowmobile, we’ll check with multiple insurance carriers, get several quotes and help you find the right policy. You can rest easy knowing we’re there to help you. Call us today at 855.382.4565 or visit us online at AmericanHomeInsurance.com to get started.

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855.382.4565 | AmericanHomeInsurance.com

AHI-02/2022

The Richmond American Homes companies (RAH), HomeAmerican Mortgage Corporation (HMC), American Home Insurance Agency, Inc. (also known as AHI Insurance Agency or AHI) and American Home Title and Escrow Company (AHT) are owned, directly or indirectly, by M.D.C. Holdings, Inc. and, therefore, are affiliated companies. Each of RAH, HMC, AHI and AHT offers services independently of each other, and if you obtain a product or service from one company, you are not required to utilize the services of, or obtain products from, any of the other companies. Your decision to use a company that is not affiliated with RAH, HMC, AHI or AHT will not affect your ability to obtain products and services from these companies. American Home Title and Escrow Company is an affiliated company of Richmond American Homes. Colorado Division of Insurance License No. 62807. Florida Department of Financial Services License No. E100020. Nevada Division of Insurance License No. 507119. Maryland Insurance Administration License No. NPF 5183. Virginia Bureau of Insurance License No. 115020. HomeAmerican Mortgage Corporation's principal offices are located at 4350 S. Monaco Street, Suite 100, Denver, CO 80237. HomeAmerican Mortgage Corporation (NMLS Unique Identifier #130676; NMLS Consumer Access website: http://www.nmlsconsumeraccess.org), 866.400.7126. Arizona Mortgage Banker license #0009265. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. In Nevada, all advertised loans are offered and funded by HomeAmerican Mortgage Corporation, which can be contacted at 7770 S. Dean Martin Drive, Suite 308, Las Vegas, NV 89139, 702.638.4450, License #67. Oregon License # ML-5694. American Home Insurance Agency (also known as AHI Insurance Agency) is an affiliated company of Richmond American Homes. Arizona License No. 71865; California License No.0c73847; Colorado License No. 84079; Delaware License No. 171654; Florida License No. L037567; Illinois License No. 100314321; Maryland License No. NPF119878; Nevada License No. 8602; New Jersey License No. 1039097; Oregon License No. 3000199069; Pennsylvania License No. 68509; Texas License No. 15235; Utah License No. 102624; Virginia License No. 115023; Washington License No. 781765; West Virginia License No. 100110929. ©2022 Richmond American Homes; Richmond American Homes of Arizona, Inc. (a public report is available on the state real estate department’s website), Richmond American Construction, Inc. ROC #206612; Richmond American Homes of Maryland, Inc., California Department of Real Estate – Real Estate Broker, Corporation License Number 01842595; Richmond American Homes of Colorado, Inc.; Richmond American Homes of Florida, LP, CBC1257429, CGC1519936; Richmond American Homes of Idaho, Inc., #RCE-57923; Richmond American Homes of Maryland, Inc., MHBR #299; Richmond American Homes of Nevada, Inc., Nevada Contractor License #0026417; Richmond American Homes of New Mexico, Inc., Richmond American Construction NM, Inc.; Richmond American Homes of Oregon, Inc., CCB #218193; Richmond American Homes of Tennessee, Inc.; Richmond American Homes of Texas, Inc.; Richmond American Homes of Utah, Inc. (866.400.4131); Richmond American Homes of Virginia, Inc.; Richmond American Homes of Washington, Inc.

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