2. If either one of the following occurs, we are not required to provide notice of nonrenewal:
   a. You have agreed to nonrenewal; or
   b. You have accepted replacement coverage.

3. If our nonrenewal is based on the condition of the premises, you will be given 30 days' notice to remedy the identified conditions. If the identified conditions are remedied, coverage will be renewed. If the identified conditions are not remedied to our satisfaction, you will be given an additional 30 days, upon payment of premium, to correct the defective conditions.

E. The following condition is added:

Renewal

1. If we elect to renew this Policy and the renewal is subject to any of the following:
   a. Increase in premium;
   b. Change in deductible;
   c. Reduction in limits of insurance; or
   d. Substantial reduction in coverage;
   we will mail or deliver written notice of the change(s) to the first Named Insured, at the last mailing address known to us, at least 30 days before the anniversary or expiration date of the Policy.

2. If renewal is subject to any condition described in 1.a. through 1.d. above, and we fail to provide notice 30 days before the anniversary or expiration date of this Policy, the following procedures apply:
   a. The present policy will remain in effect until the earlier of the following:
      (1) 30 days after the date of mailing or delivery of the notice; or
      (2) The effective date of replacement coverage obtained by the first Named Insured.
   b. If the first Named Insured elects not to renew, any earned premium for the period of extension of the terminated policy will be calculated pro rata at the lower of the following rates:
      (1) The rates applicable to the terminated policy; or
      (2) The rates presently in effect.
   c. If the first Named Insured accepts the renewal, the premium increase, if any, and other changes are effective the day following this Policy's anniversary or expiration date.