NEW BUSINESS POLICY DECLARATIONS PAGE
UNIQUE MARKET REFERENCE:B1136700002019
YOUR PRODUCER’S NAME AND ADDRESS IS:
Martin Burlingame
1773 S 8th St
CERTAIN UNDERWRITERS AT LLOYDS OF LONDON
Suite 100
WRITTEN AND SIGNED LINES: 100% SYNDICATE #2488
Colorado Springs, CO 80905
Phone #: 7196021200
Policy Form: HO-4
Surplus Lines Broker:
Commercial Insurance Group, LLC
In California: Bigfoot Specialty Insurance Agency
License:0H38597
POLICY NUMBER: RT-CH-1000000-19
POLICY TERM: Effective Date:6/6/2019
Expiration Date: 6/6/2020
Effective 12:01 a.m. Standard Time at Location of Property Described.
PERIOD: 12 Months
Occupancy: Renters
Named Insured & Mailing Address:
The Residence Premises is Located at:
John Bennis
1 Main Street ABC
*/
Ankorage AK
80906
Colorado Springs CO 80905
Insurance is provided only with respect to the Coverages listed below and then only if and to the extent a Limit of Liability is specified for a Coverage,
subject to all conditions of this policy.
Section I - Coverages
Limit of Liability
Policy Premium & Fees
COVERAGE A - Dwelling
Not Offered
Premium
$79.00
*/
*/
COVERAGE B - Other Structures
Not Offered
*/
*/
Program Fee-CIG
$36.00
COVERAGE C - Personal Property
$10000
Total
$119.26
COVERAGE D - Loss of Use
$5000
FLOOD
$2500
Section II - Coverages
COVERAGE L - Personal Liability
$100000
COVERAGE M - Medical Payments to Others
$1000
Minimum Earned Premium: 25%
Fees Fully Earned
Deductibles
Section I
All Other Perils:
No Deductables
Wind/Hail:
No Deductables
Flood:
No Deductables
Section II
Personal
$500
Liability:
This policy is comprised of the following Forms and Endorsements, which together form the policy identified by the above-listed policy number:
POLICY FORMS AND ENDORSEMENTS - See Schedule of Forms and Endorsements
SERVICE OF SUIT: Mendes & Mount, 750 Seventh Avenue, New York, NY 10019
IF YOU WISH TO MAKE A COMPLAINT PLEASE CONTACT YOUR LOCAL DIVISION OF INSURANCE
CLAIMS: Affirmative Risk Management, PO Box 24407, Little Rock, AR 72221-4407 - 501-228-0900 or claims@cig-llc.biz
Dated in Colorado Springs, CO this day: Thursday, June 06, 2019
By:______________________________
Property Manager:
1. Name:
79
Address:
1 Main
Colorado Springs CO
80906
Premium Property:
$60
Premium Liability:
43.00
Premium Flood:
$25
Lloyd’s Certificate
This Insurance is effected with certain Underwriters at Lloyd’s, London.
This Certificate is issued in accordance with the limited authorization granted to the
Correspondent by certain Underwriters at Lloyd's, London whose syndicate numbers and the
proportions underwritten by them can be ascertained from the office of the said Correspondent
(such Underwriters being hereinafter called "Underwriters") and in consideration of the premium
specified herein, Underwriters hereby bind themselves severally and not jointly, each for his own
part and not one for another, their Executors and Administrators.
The Assured is requested to read this Certificate, and if it is not correct, return it immediately to
the Correspondent for appropriate alteration.
All inquiries regarding this Certificate should be addressed to the following Correspondent:
Commercial Insurance Group, LLC
In California: Bigfoot Specialty Insurance Agency
License # 0H38597
PO Box 60190
Colorado Springs, CO 80960
Tel: +1 303-900-2960
SLC-3 (USA) NMA2868 (24/08/00) Form approved by Lloyd’s Market Association
CERTIFICATE PROVISIONS
1.
Signature Required. This Certificate shall not be valid unless signed by the Correspondent on the attached Declaration Page.
2.
Correspondent Not Insurer. The Correspondent is not an Insurer hereunder and neither is nor shall be liable for any loss or claim whatsoever. The
Insurers hereunder are those Underwriters at Lloyd's, London whose syndicate numbers can be ascertained as hereinbefore set forth. As used in this
Certificate "Underwriters" shall be deemed to include incorporated as well as unincorporated persons or entities that are Underwriters at Lloyd's,
London.
3.
Cancellation. If this Certificate provides for cancellation and this Certificate is cancelled after the inception date, earned premium must be paid for the
time the insurance has been in force.
4.
Service of Suit. It is agreed that in the event of the failure of Underwriters to pay any amount claimed to be due hereunder, Underwriters, at the
request of the Assured, will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes
or should be understood to constitute a waiver of Underwriters' rights to commence an action in any Court of competent jurisdiction in the United
States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United
States or of any State in the United States. It is further agreed that service of process in such suit may be made upon the firm or person named in item
6 of the attached Declaration Page, and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final
decision of such Court or of any Appellate Court in the event of an appeal.
The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon request of the
Assured to give a written undertaking to the Assured that they will enter a general appearance upon Underwriters' behalf in the event such a suit shall
be instituted.
Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters hereby designate
the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in
office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of
the Assured or any beneficiary hereunder arising out of this contract of insurance, and hereby designate the above-mentioned as the person to whom
the said officer is authorized to mail such process or a true copy thereof.
5.
Assignment. This Certificate shall not be assigned either in whole or in part without the written consent of the Correspondent endorsed hereon.
6.
Attached Conditions Incorporated. This Certificate is made and accepted subject to all the provisions, conditions and warranties set forth herein,
attached or endorsed, all of which are to be considered as incorporated herein.
7.
Short Rate Cancellation. If the attached provisions provide for cancellation, the table below will be used to calculate the short rate proportion of the
premium when applicable under the terms of cancellation.
Short Rate Cancellation Table For Term of One Year.
Days Insurance in
Per Cent of one
Days Insurance in
Per Cent of one
Days Insurance in
Per Cent of one
Days Insurance in
Per Cent of one
Force
year Premium
Force
year Premium
Force
year Premium
Force
year Premium
1
5%
66 -
69
29%
154 - 156
53%
256 - 260
77%
2
6
70 -
73
30
157 - 160
54
261 - 264
78
3 -
4
7
74 -
76
31
161 - 164
55
265 - 269
79
5 -
6
8
77 -
80
32
165 - 167
56
270 - 273 ( 9 mos )
80
7 -
8
9
81 -
83
33
168 - 171
57
274 - 278
81
9 -
10
10
84 -
87
34
172 - 175
58
279 - 282
82
11 -
12
11
88 -
91 ( 3 mos )
35
176 - 178
59
283 - 287
83
13 -
14
12
92 -
94
36
179 - 182 ( 6 mos )
60
288 - 291
84
15 -
16
13
95 -
98
37
183 - 187
61
292 - 296
85
17 -
18
14
99 - 102
38
188 - 191
62
297 - 301
86
19 -
20
15
103 - 105
39
192 - 196
63
302 - 305 ( 10 mos )
87
21 -
22
16
106 - 109
40
197 - 200
64
306 - 310
88
23 -
25
17
110 - 113
41
201 - 205
65
311 - 314
89
26 -
29
18
114 - 116
42
206 - 209
66
315 - 319
90
30 -
32 ( 1 mos )
19
117 - 120
43
210 - 214 ( 7 mos )
67
320 - 323
91
33 -
36
20
121 - 124 ( 4 mos )
44
215 - 218
68
324 - 328
92
37 -
40
21
125 - 127
45
219 - 223
69
329 - 332
93
41 -
43
22
128 - 131
46
224 - 228
70
333 - 337 ( 11 mos )
94
44 -
47
23
132 - 135
47
229 - 232
71
338 - 342
95
48 -
51
24
136 - 138
48
233 - 237
72
343 - 346
96
52 -
54
25
139 - 142
49
238 - 241
73
347 - 351
97
55 -
58
26
143 - 146
50
242 - 246 ( 8 mos )
74
352 - 355
98
59 -
62 ( 2 mos )
27
147 - 149
51
247 - 250
75
356 - 360
99
63 -
65
28
150 - 153 ( 5 mos )
52
251 - 255
76
361 - 365 ( 12 mos )
100
Rules applicable to insurance with terms less than or more than one year:
A.
If insurance has been in force for one year or less, apply the short rate table for annual insurance to the full annual premium determined as for insurance written for a term of one year.
B.
If insurance has been in force for more than one year:
1.
Determine full annual premium as for insurance written for a term of one year.
2.
Deduct such premium from the full insurance premium, and on the remainder calculate the pro rata earned premium on the basis of the ratio of the length of time beyond one year the
insurance has been in force to the length of time beyond one year for which the policy was originally written.
3.
Add premium produced in accordance with items (1) and (2) to obtain earned premium during full period insurance has been in force.
Schedule of Forms and Endorsements
Homeowner and Dwelling
(APPLICABLE FORMS AND CLAUSES INDICATED BY AN “X” IN APPROPRIATE BOX)
COMMON POLICY FORMS
Mandatory Forms/Endorsements:
State Forms
As required
CIG-HO-PRIV
Commercial Insurance Group, LLC Privacy Notice
CIG-Agent (2014)
Notice to Retail Producer
LMA 5018
Micro-organism Exclusion (Absolute)
CIG-HO1010
Additional Liabilities Exclusions
CIG-HO1011
Total Loss Earned Premium Clause
CIG-HO1020
Brush Clear Space Warranty
NMA 1191
Radioactive Contamination Exclusion
LMA 5020
Service of Suit Clause (USA)
NMA1331 (04/61)
Cancellation Clause
LMA 5019
Asbestos Endorsement
NMA 2918
War and Terrorism Exclusion Endorsement
NMA 2962
Biological or Chemical Materials Exclusion
LSW 1135B
Lloyds Privacy Policy Statement
NMA 2915
Electronic Data Endorsement B
NMA 2340
Seepage and Pollution, Land, Water and Air Exclusion
LMA 3100
Sanction Limitation and Exclusion Clause
LSW3001 (09/08)
Premium Payment Form
CIG-HO-Alarm
Premises Alarm or Fire Protection System
CIG-HO1021
Jurisdiction and Law
CIG-HO1022
Farm/Ranch Operations Exclusion
CIG-HO1023
Homeworking Exclusion Endorsement
IL P 001 01 04
US Treasury - OFAC
IL P 022 01 07
Statement Regarding Flood Insurance
CIG-HO1024
Hard Floor Covering Limitation
CIG-HO1025
Inflation Guard
CIG-HO1026
Pre-existing Damage Exclusion
CIG-HO1027
Policy Fee Disclosure
CIG-HO1045
Specific Breed Animal Exclusion
HOMEOWNER FORMS
HO-4
Mandatory Forms:
HO 00 04 05 11
Homeowners 4 - Contents Broad Form (Renters)
FLOOD
Mandatory Forms:
Flood
Flood Policy
Schedule of Forms and Endorsements
COMMERCIAL INSURANCE GROUP
PRIVACY POLICY NOTICE
This Privacy Policy outlines our information sharing practices to help you understand how we protect
your privacy when we collect and use information about you and the measures we take to
safeguard that information.
Information we collect. We m a y collect non-public personal financial information about you as
required by the insurance market with which we seek to place your insurance. This information may be
collected from you or other sources as follows:
Information about our transactions with you, our affiliates, or previous insurers; such as you policy
coverage,
claim information, premiums and payment history;
Information we receive from you on applications or questionnaires, such as your occupation,
current employer ,
Social Security and Driver License numbers;
Information we receive from a consumer reporting agency, such as Equifax; which is obtained for
the purpose of
ascertaining credit histories. These reports are obtained as underwriting tools to determine
bill paying habits and creditworthiness;
Motor Vehicle reports may also be requested from the State to disclose driving history. By
law, Driver History may not be provided to your i n s u r a n c e a g e n t or to you. In the event
you need a copy of your driver report, you may request one from the applicable state agency.
Information Security. we restrict access to non-public personal financial information about you
to those employees who need to know that information to provide products or services to you. We
maintain physical, electronic and procedural safeguards that comply with Federal and State Regulations
to guard your non-public personal financial information.
Information We Share. We d o n o t disclose any non-public personal financial information
about our customers or former customers to anyone, except as permitted by law. W e may disclose
non-public personal financial information with insurers and providers. We also may disclose non-
public personal financial information
about our transactions and experiences with you to our affiliates for purposes of marketing our products
and services
to you. We may do so without affirmative authorization and the law does not permit you to restrict
t h i s disclosure. Please note: information obtained from a report prepared by an insurance support
organization (for example for the purpose of detecting and preventing insurance claims and fraud) may
be retained by that organization and disclosed to other persons.
Your Access and Correction Rights. Upon written request and presentation of proper
identification you may be provided access to recorded personal information including the source of the
information and the identity of those to whom we have disclosed personal information. You also have
the right to request correction, amendment or deletion of recorded personal information about you. If
we agree, we will correct our records. if we do not agree, you may submit a concise statement of
dispute, which we will include in any future disclosure of personal information. A request for access or
correction may be sent to us at the following address:
Commercial Insurance Group, LLC
in California Rocky Mountain Specialty Insurance Agency, LLC
CA License: OH38597
1773 S 8th St, Ste. 200, PO Box 60190
Colorado Springs, CO
80960
CIG-HO-PRIV
NOTICE TO RETAIL PRODUCER
NON-ADMITTED STATUS AND TAX FILING - This policy is written with a Non-Admitted
Company and Commercial Insurance Group, LLC is responsible for filing the Taxes as identified.
AUDITS - The retail agent is responsible for collecting any audit premiums due within fifteen
days of the billing unless otherwise notified.
ENDORSEMENTS - The retail agent has no authority to endorse or amend the policy. All
requests for changes should be sent in written correspondence to Commercial Insurance Group,
LLC.
FORMS - The copy of the policy Commercial Insurance Group, LLC provided to you may not
include all the forms. Standard ISO forms may be referenced and not printed for you.
PREMIUM FINANCING - The retail agent may arrange for financing of most premiums. Once
financed, you must remit the entire balance due to Commercial Insurance Group, LLC within
fifteen (15) days of the effective date. The retail agent is responsible to report any premium
changes to the finance company.
CIG-Agent (2014)
MICROORANISM EXCLUSION (ABSOLUTE)
This Policy does not insure any loss, damage, claim, cost, expense, or other sum directly ior
indirectly arising out of or relating to:
Mold, mildew, fungus, spores, or other microorganism of any type, nature, or
description, including but not limited to any substance whose presence poses an actual
or potential threat to human health.
This Exclusion applies regardless whether there is (i) any physical loss or damage to insured
property; (ii) any insured peril or cause, whether or not contributing concurrently or in any
sequence; (iii) any loss of replacement, removal, cleanup, abatement, disposal, relocation, or
steps taken to address medical or legal concerns.
This Exclusion replaces and supersedes any provision in the Policy that provides insurance, in
whole or in part, for these matters.
LMA5018
14/09/2005
ADDITIONAL LIABILITY EXCLUSIONS amended
It is understood and agreed that:
A.
Coverages E (Personal liability) and Coverage F (Medical Payments) do not apply to
“bodily injury” or “property damage”:
1.
Arising out of or caused directly or indirectly by any Animal owned by the
“insured” or for which the “insured” is responsible.
2.
Arising out of or caused directly or indirectly by any actual or alleged sexual
molestation, corporal punishment, physical or mental abuse, assault or battery or
any act or omission in respect of the prevention or suppression of such sexual
molestation, corporal punishment, physical or mental abuse, assault or battery.
3.
Arising out of or caused directly or indirectly by the actual or alleged:
a)
exposure to, inhalation, ingestion or existence of asbestos, or any other
material, substance or structure containing asbestos; or
b)
repair, removal, encapsulation, abatement, replacement or handling of
asbestos, or any other material, substance or structure containing
asbestos;
whether or not the asbestos is or was at any time airborne, contained in a
product or structure, ingested, inhaled, transmitted in any fashion or found in
any form whatsoever.
4
Arising out of or caused directly or indirectly by the actual or alleged:
a)
exposure to, inhalation, ingestion or existence of mold, mildew, fungus,
spores or other microorganism of any type, nature, or description
including but not limited to any substance whose presence poses an
actual or potential threat to human health; or
b)
monitoring, testing, removal, encapsulation, abatement, treatment or
handling of mold, mildew, fungus, spores or other microorganism as
referred to in a) above.
5.
Arising out of or caused directly or indirectly by the actual or alleged exposure to
electromagnetic fields, whether naturally occurring or man-made.
6.
Arising out of or caused directly or indirectly by the actual or alleged:
a)
exposure to or existence of lead or any material or substance containing
lead; or
b)
repair, removal, encapsulation, abatement, replacement or handling of
lead or any other material or substance containing lead;
whether or not the lead is or was at any time airborne, contained in a product,
ingested, inhaled, transmitted in any fashion or found in any form whatsoever.
This exclusion also applies to any loss, cost, expense or damages, whether direct
or consequential, arising out of any:
1.
request, demand or order that any insured or others test for, monitor,
clean up, remove, abate, contain, treat, or neutralise lead or any other
material or
substance containing lead or in any way respond to, or assess the effects
of lead, or
2.
claim or suit relating to testing for, monitoring, cleaning up, removing,
abating, containing, treating or neutralising lead or any other material
substance containing lead or in any way responding to, or assessing the
effects of lead.
7.
Arising out of or caused directly or indirectly by the actual or alleged:
a)
exposure to, inhalation, ingestion or existence of radon gas; or
b)
removal, encapsulation, abatement, or handling of radon gas.
8.
Arising out of:
a)
any direct or indirect, actual or alleged or threatened discharge, dispersal,
seepage, migration, release or escape of pollutants whatsoever and
wheresoever occurring.
b)
any loss, cost or expense arising out of any request, demand or order
that any insured or others test for, monitor, clean up, remove, abate,
contain, treat, or neutralise pollutants, or in any way respond to, or
assess the effects of pollutants.
Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant,
including smoke, vapour, soot, fumes, acids, alkalis, chemicals and waste.
Waste includes materials to be recycled, reconditioned or reclaimed.
9.
Arising from the use or ownership of any swimming pool that does not comply
with any Federal, State, local government or other governmental authority law or
regulation.
B.
Coverage E - Personal liability does not apply to liability:
1.
Arising from a refusal or failure to employ, promote or fairly compensate any
person, or from supervision or failure to supervise, coercion, reassignment,
discipline, defamation, harassment, intimidation, creation of a hostile work
environment, humiliation or discrimination of any person.
2.
Arising from any act, error or omission in respect of the provision of employee
benefits of any kind by you.
C.
This insurance shall not apply to fines, penalties, punitive damages, exemplary or non
compensatory damages, or any damages resulting from the multiplication of
compensatory damages.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED
CIG-HO1010
ADDITIONAL LIABILITY EXCLUSIONS Continued.
FIREARM LIMITATION
It is understood and agreed that our limit of liability for Coverage E - Personal Liability and
Coverage F - Medical Payments to Others combined is limited to 25,000 any one
“occurrence” in respect of “bodily injury” or “property damage” arising out of the use,
ownership or maintenance of any firearm.
Notwithstanding anything contained in the Policy to which this limitation attaches to the
contrary, any “claim expense” incurred by us in respect of “bodily injury” or “property damage”
arising out of the use, ownership or maintenance of any firearm shall be included within the
limit stated above and shall not be paid in addition to such limit.
For the purpose of this limitation, “claim expense” shall mean investigation, adjustment,
settlement and legal costs or expenses, interest on judgments and fees, including court costs
and premium on bonds, but which shall not include expenses for salaried employees and
counsel on retainer.
ALL OTHER TERMS AND CONDITIONS REMAINED UNCHANGED
CIG-HO1010
ADDITIONAL LIABILITY EXCLUSIONS Continued.
TRAMPOLINE EXCLUSION
Coverage E- Personal Liability and Coverage F- Medical Payments to Other do not apply to
“bodily injury” or “property damage” caused by or resulting from the use of any trampoline.
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED
CIG-HO1010
TOTAL LOSS EARNED PREMIUM CLAUSE
Notwithstanding anything contained in this insurance to the contrary, it is understood and
agreed that in the event of the cancellation of this insurance there shall be no return of any
premium in the event of a total or constructive total loss of the “residence premises”.
For the purposes of this insurance total or constructive total loss shall mean a loss where the
cost to repair or replace would exceed 80% of the full replacement cost of the “residence
premises”.
CIG-HO1011
CIG-HO1020
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
BRUSH CLEAR SPACE CONDITION
APPLIES TO ALL FORMS
A. DEFINITIONS
B. CONDITIONS
The following definition is added:
The following condition is added to the policy:
“Exposure Distance” means:
You must ensure that the minimum Exposure
Distance from the native brush or other natural
The distance measured parallel to the general
vegetative growth to any portion of your home
ground surface shall be considered the
and other building(s) insured under this
exposure distance, except where a down slope
policy is fifty
(50) feet or to your property
below the building(s) exceeds 30 degrees or
boundary whichever is the lesser.
where an up slope above the building(s)
exceeds 30 degrees, in which case only one-
Cultivated planting (other than native growth) is
half the measured distance on such slope shall
permitted in this space provided such planting
be used.
will not readily transmit fire from the native
growth to the building(s).
If you fail to comply with this condition, any
claim for loss by fire or resulting damage
associated with such failure shall not be paid.
* if not otherwise specified in the Declarations
All other provisions of this policy apply.
CIG-HO1020
Page 1 of 1
RADIOACTIVE CONTAMINATION EXCLUSION
CLAUSE-PHYSICAL DAMAGE-DIRECT
This policy does not cover any loss or damage arising directly or indirectly from nuclear
reaction, nuclear radiation, or radioactive contamination, however, such nuclear reaction,
nuclear radiation, or radioactive contamination may have been caused. *NEVERTHELESS, if Fire
is an insured peril and a Fire arises directly or indirectly from nuclear reaction, nuclear radiation,
or radioactive contamination any loss or damage arising from that Fire shall (subject to the
provisions of this policy) be covered EXCLUDING, however, all loss or damage caused by
nuclear reaction, nuclear radiation, or radioactive contamination arising directly or indirectly
from that Fire.
*NOTE-If Fire is not an insured peril under this policy the words from “NEVERTHELESS” to the
end of the clause do not apply and should be disregarded.
7/5/59
NMA1191
SERVICE OF SUIT CLAUSE (USA)
This Service of Suit Clause will not be read to conflict with or override the obligation of the
parties to arbitrate their disputes as provided for in an Arbitration provision with this Policy. This
Clause is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral
award, not as an alternative to such Arbitration provision for resolving dispute arising out o the
contact of Insurance (or reinsurance).
It is agreed that in the event of the failure for the Underwriters heron to pay any amount
claimed to be due hereunder, the Underwriters heron , at the request of the Insured (or
Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction with the United
States. Nothing in the Clause constitutes or should be understood to constitute a waiver of
Underwriters’ right to commence an action in any Court of competent jurisdiction in the United
States, to remove an action to a United States District court, or to seek a transfer of a case to
another Court as permitted by the laws of the United States or any State in the United States.
It is further agreed that service of process in such suit may be made upon Drinker, Biddle &
Reith, New York and that in any suit instituted against any one of them upon this contract,
Underwriters will abide by the final decision of such Court or of any Appellate Court in the
event of an appeal.
The above-named are authorized and directed to accept service of process on behalf of
Underwriter in any such suit and/or upon the request of the Insured (or Reinsured) to give a
written undertaking to the Insured (or Reinsured) that they will enter a general appearance
upon Underwriters’ behalf in the event such a suit shall be instituted.
Further, pursuant to any statute of any state, territory or district of the United States which
makes provision therefore, Underwriter heron herby designate the Superintendent,
Commissioner or Direct of Insurance or other office specified for that purpose in the stature, of
this successor or successor in office, as their true and lawful attorney upon whom may be
served any lawful process in any action, suit or proceeding instituted by or on behalf of the
Insured (or Reinsured) or any beneficiary hereunder arising out of this contact of insurance (or
reinsurance), and hereby designate that above-named as the person to whom the said office is
authorized to mail such process or a true copy thereof.
14/09/2005
LMA5020
Form approved by Lloyd’s Market Association
CANCELLATION CLAUSE
This Insurance may be cancelled by the Insured at any time by written notice or by
surrendering of this Contract of Insurance. This Insurance may also be cancelled by or on
behalf of the Underwriter by delivering to the Assured or by mailing to the Insured, by
registered, certified or other first class mail. At the Insured’s address as shown in this
Insurance, written notice stating when, not less than 30 days thereafter (except for non-
payment of premium where 10 days thereafter), the cancellation shall be effective. The mailing
of notice as aforesaid shall be sufficient proof of notice and this Insurance shall terminate at the
date and hour specified in such notice.
If this Insurance shall be cancelled by the Insured in the Underwriter shall retain the customary
short rate proportion for the premium heron, subject to a minimum earned premium of 25 % in
inception; any conditions of the Policy to the contrary notwithstanding.
If this Insurance shall be cancelled by or on behalf of the Underwriters, the Underwriters shall
retain the pro rata proportion of the premium heron.
Payment or tender of any Unearned Premium by the Underwriters shall not be a condition
precedent to the effectiveness of Cancelation but such payment shall be made as soon as
practicable.
If the period of limitation relating to the giving of notice is prohibited or made void by any law
controlling the construction thereof, such period shall be deemed to be amended so as to be
equal to the minimum period of limitation permitted by such law.
20/4/1961
NMA 1331 (amended)
ASBESTOS ENDORSEMENT
A. This Policy only insures asbestos physically incorporated in an insured building or structure, and
then only that part of the asbestos which has been physically damaged during the period of
insurance by one of these listed perils:
Fire; Explosion; lightning; windstorm; hail, direct impact of vehicle, aircraft or vessel; riot or civil
commotion, vandalism or malicious mischief; or accidental discharge of fire protective equipment.
This coverage is subject to each of the following specific limitations:
1. The building or structure must be insured under this Policy for damage by that Listed
Peril.
2. The Peril must be the immediate, sole cause of the damage to the asbestos.
3. The Insured must report the existence and cost of the damage to the Underwriters as
soon as possible after the Peril damaged the asbestos. The Policy does not insure any
damage first reported to the Underwriters more than 12 months after the expiration,
termination, or the period of insurance.
4. Insurance under this Policy in respect to asbestos shall not include any sum relating to:
a. Any faults in the design, manufacture, or installation of the asbestos
b. Asbestos not physically damaged by the Perils listed above. This includes any
governmental, regulatory authority direction, or request of whatsoever nature
relating to undamaged asbestos.
B. Except as set forth in the foregoing Section A, this Policy does not insure asbestos or any sum
relating thereto.
LMA5019
14/09/2005
WAR AND TERRORISM EXCLUSION ENDORSEMENT
Notwithstanding any provision to the contrary within this insurance or any endorsement thereto
it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by, resulting from or in connection with any of the following
regardless of any other cause or event contributing concurrently or in any other sequence to
the loss;
1. War, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared
or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of
or amounting to an uprising, military, or usurped power; or
2. Any act of terrorism.
For the purpose of this endorsement an act of terrorism means an act, including but not
limited to the use of force or violence and/or the threat thereof, of any person or
group(s) of persons, whether acting alone or on behalf of or in connection with any
organization(s) or government(s), committed for political, religious, ideological or similar
purposes including the intention to influence any government and/or to put the public,
or any section of the public, in fear.
This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or
indirectly caused by , resulting from or in connection with any action taken in controlling,
preventing suppressing or in any way relating to 1 and/or 2 above.
If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is
not covered by this insurance the burden of proving the contrary shall be upon the Assured.
In the event any portion of this endorsement is found to be invalid or unenforceable, the
remainder shall remain in full force and effect.
08/10/01
NMA2918
BIOLOGICAL OR CHEMICAL MATERIALS EXCLUSION
It is agreed that this Insurance excludes loss, damage, cost or expense of whatsoever nature
directly or indirectly cause by, resulting from or in connection with the actual or threatened
malicious use of pathogenic or poisonous biological or chemical materials regardless of any
other cause or event contributing concurrently or in any other sequence thereto.
06/02/03
NMA2962
LLOYD’S PRIVACY POLICY STATEMENT
UNDERWRITERS AT LLOYD’S, LONDON
The Certain Underwriter at Lloyd’s, London want you to know how we protect the confidentiality
of your non-public personal information. We want you to know how and why we use and
disclose the information that we have about you. The following describes our policies and
practices for securing the privacy of our current and former customers.
INFORMATION WE COLLECT
The non-public personal information that we collect about you includes, but is not limited to:
Information contained in application or other forms that you submit to us ,such as name,
address, and social security number.
Information about your transactions with our affiliate or other third-parties, such as balance and
payment history.
Information we receive from a consumer-reporting agency, such as credit-worthiness or credit
history.
INFORMATION WE DISCLOSE
We disclose the information that we have when it is necessary to provide our products and
services. We may also disclose information when the law requires or permits us to do so.
CONFIDENTIALITY AND SECURITY
Only our employees and others who need the information to service your account have access
to your personal information. We have measure in place to secure our paper files and computer
systems.
RIGHT TO ACCESS OR CORRECT YOUR PERSONAL INFORMATION
You have a right to request access to or correction of your personal information that
is in our possession.
CONTACTING US
If you have any questions about this privacy notice or would like to learn more about how we
protect your privacy, please contact the agent or broker who handled this insurance. We can
provide a more detailed statement of our privacy practices upon request.
06/03
LSW 1135B
ELECTRONIC DATA ENDORSEMENT B
1.
Electronic Data Exclusion
Notwithstanding any provision to the contrary within the Policy or any endorsement
thereto, it is understood and agreed as follows:-
a) This Policy does not insure, loss, damage, destruction, distortion, erasure, corruption
or alteration of ELECTRONIC DATA from any cause whatsoever (including but not
limited to COMPUTER VIRUS) or loss of use, reduction in functionality, cost, expense
of whatsoever nature resulting therefrom, regardless of any other cause or event
contributing concurrently or in any other sequence to the loss.
ELECTRONIC DATA means facts, concepts and information converted to a form
useable for communications, interpretation or processing by electronic and
electromechanical data processing or electronically controlled equipment and
includes programmes, software, and other coded instructions for the processing and
manipulation of data or the direction and manipulation of such equipment.
COMPUTER VIRUS means a set of corrupting, harmful or otherwise unauthorised
instructions or code including a set of maliciously introduced unauthorised
instructions or code, programmatic or otherwise, that propagate themselves through
a computer system or network of whatsoever nature. COMPUTER VIRUS includes
but is not limited to ‘Trojan Horses’, ‘worms’ and ‘time or logic bombs’.
b) However, in the event that a peril listed below results from any of the matters
described in paragraph a) above, this Policy, subject to all its terms, conditions and
exclusions will cover physical damage occurring during the Policy period to property
insured by this Policy directly caused by such listed peril.
Listed Perils
Fire
Explosion
2)
Electronic Data Processing Media Valuation
Notwithstanding any provision to the contrary within the Policy or any endorsement
thereto, it is understood and agreed as follows:-
Should electronic data processing media insured by this Policy suffer physical loss or
damage insured by this Policy, then the basis of valuation shall be the cost of the blank
media plus the costs of copying the ELECTRONIC DATA from back-up or from originals
of a previous generation. These costs will not include research and engineering nor any
costs of recreating, gathering or assembling such ELECTRONIC DATA. If the media is
not repaired, replaced or restored the basis of valuation shall be the cost of the blank
media. However this Policy does not insure any amount pertaining to the value of such
ELECTRONIC DATA to the Assured or any other party, even if such ELECTRONIC DATA
cannot be recreated, gathered or assembled.
NMA 2915
U.S.A. & CANADA
LAND, WATER, AND AIR EXCLUSION
Notwithstanding any provision to the contrary within, the Policy of which this Endorsement
forms part (or within any other Endorsement which forms part of the Policy), this Policy does
not insure land (including but not limited to the land on which the insured property is location),
water or air, howsoever and wherever occurring, or any interest or right therein.
SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION
Notwithstanding any provision to the contrary within this Policy of which this Endorsement
forms part (or within any other Endorsement which forms part of this Policy), this Policy does
not insure:
a. against loss, damage, cost or expense, or
b. any increase in insured loss, damage, cost or expense, or
c. any loss, damage, cost, expense, fine or penalty, which is incurred, sustained, or imposed by
order, direction, instruction or request of, or by any agreement which, any court, government
agency or any public, civil or military authority, or threat thereof, (and whether or not as a result
of public or private litigation),
which arises from any kind or description of seepage or any kind of pollution and/or
contamination, or threat thereof, whether or not caused by or resulting from a peril insured,
or from steps or measures taken in connection with the avoidance, prevention, abatement,
mitigation, remediation, clean-up or removal of such seepage or pollution and /or
contamination or threat thereof.
The term “any kind of seepage or any kind of pollution and/or contamination” as used in
this Endorsement includes (but it not limited to):
a. seepage of, or pollution and/or contamination by, anything, including but not limited to, any
material designated as a “hazardous substance” by the United States Environmental
Protection Agency or as a “hazardous material” by the United States Department of
Transportation, or defined as a “toxic substance” by the Canadian Environmental Protection
Act for the purpose of Part II of that Act, or any substance designated or defined as toxic,
dangerous, hazardous or deleterious to persons or the environment under any other Federal,
State, Provincial, Municipal or other law, ordinance or regulation; and
b. the presence, existence, or release of anything which endangers or threatens to endanger
the health, safety or welfare of persons or the environment.
DEBRIS REMOVAL ENDORSEMENT
THIS ENDORSEMENT CONTAINS PROVISION WHICH MAY LIMIT OR PREVENT RECOVERY
UNDER THIS POLICY FOR LOSS WHERE COSTS OR EXPENSES FOR DEBRIS REMOCAL ARE
INCURRED.
Nothing contain in this Endorsement shall override any Seepage and/or Pollution and/or
Contamination Exclusion or any Radioactive Contamination Exclusion or any other Exclusion
applicable to this Policy.
Any provision within this Policy (or within any other Endorsement which forms part of this
Policy) which insures debris removal is cancelled and replaced by the following:
1. In the event of direct physical damage to or destruction of property, for which Underwriters
heron agree to pay, or which but for the application of a deductible or underlying amount
they would agree to pay (hereinafter referred to as “Damage or Destruction”), this Policy also
insures, within the Sum Insured, subject to the limitation and method of calculation below,
and to all the other terms and conditions of the Policy, costs or expenses;
a. which are reasonably and necessarily incurred by the Assured in the removal, from the
premises of the Assured at which the Damage or Destruction occurred, or debris which
results from the Damage or Destruction; and
b. of which the Assured becomes aware and advises the amount thereof to Underwriters
heron within one year of the commencement of such Damage or Destruction.
2. In calculating the amount, if any, payable under this Policy for loss where costs or expenses
for removal of debris are incurred by the Assured (subject to the limitations in paragraph I
above):
a. the maximum amount of such costs or expense that can be included in the method of
calculation set out in (b) below shall be the greater of $25,000 (twenty-five thousand
dollars ) or 10% (ten percent) of the amount of the Damage or Destruction from which
such costs or expenses result; and
b. the amount of such costs or expenses as limited in (a) above shall be added to:
i. the amount of the Damage or Destruction; and
ii.
all other amounts of loss, which arise as a result of the same occurrence, and for
which Underwriters heron also agree to pay, or which but for the application of a
deductible or underlying amount they would agree to pay; and
The resulting sum shall be the amount to which any deductible or underlying
amount to which this Policy is subject and the limit (or applicable sub-limit) of
this Policy, shall be applied.
The Insured shall give notice to the Underwriters of intent to claim NO LATER THAN 12
MONTHS AFTER THE DATE OF THE ORIGINAL PHYSICAL LOSS OF DAMAGE.
24/11/88
NMA2340
Sanction Limitation and Exclusion Clause
No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or
provide any benefit hereunder to the extent that the provision of such cover, payment of such
claim or provision of such benefit would expose that insurer to any sanction, prohibition or
restriction under United Nations resolutions or the trade or economic sanctions, laws or
regulations of the European Union, Japan, United Kingdom or United States of America.
LMA 3100
PREMIUM PAYMENT CLAUSE
Notwithstanding any provision to the contrary within this Contract or any endorsement hereto,
in respect of non-payment of premium only the following clause will apply.
The insured undertakes that premium will be paid in full to Insurers within 60 days of inception
of this contract (or, in respect of instalment premiums, when due).
If the premium due under this contract has not been paid to Insurers by the 60th day from the
inception of this contract (and in respect of instalment premiums, by the date they are due)
Insurers shall have the right to cancel this contract by notifying the Insurer via the broker in
writing. In the event of cancellation, premium is due to Insurers on a pro rata basis for the
period that Insurers are on risk but the full contract premium shall be payable to Insurers in the
event of a loss or occurrence prior to the date of termination which gives rise to a valid claim
under this contract.
It is agreed that Insurers shall give no less than 30 days prior notice of cancellation to the
Insured via the broker. If premium is paid in full to the Insurers before the notice period
expires, notice of cancellation shall automatically be revoked. If not, the contract shall be
automatically terminated at the end of the notice period.
If any provision of this clause is found by any court or administrative body of competent
jurisdiction to be invalid or unenforceable, such invalidity or unenforceability will not affect the
other provisions of this clause which will remain in full force and effect.
LSW3001
30/09/08
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PREMISES ALARM OR FIRE PROTECTION SYSTEM
Applies to all Forms
We do not cover loss or damage caused by theft, attempted theft or vandalism and malicious
mischief, and any ensuing loss caused by an intentional and wrongful act committed in the
course of theft, attempted theft, vandalism and malicious mischief, unless all the physical
protections are in use and all security systems you have told us about are in full and effective
operation whenever the dwelling is left unattended.
We do not cover loss or damage caused by fire unless all the fire protection systems such as an
alarm system and/or automatic fire protective sprinkler system you have told us about are in
full working order at all times.
You must advise us as soon as reasonably possible if for any reason any protection or security
system is not working properly. We may then amend the terms of this policy.
You are required to maintain all protection or security systems over which you have control in
complete working order.
All other provisions of this policy apply.
CIG-HO-Alarm
03/11
JURISDICTION AND LAW
1. Any dispute will be referred in the first instance to the jurisdiction of a court of the
United States of America in accordance with the provisions of LMA (14-09-2005) Service
of Suite Clause (USA)
CIG-HO1021
CIG-HO1022
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
FARM / RANCH OPERATIONS EXCLUSION
FOR USE WITH ALL FORMS
It is understood and agreed that our limit of liability for
Coverage - Personal liability and Coverage - Medical
Payments to others do not apply to the following:
Arising out of, or caused directly or indirectly by any
farm / ranch operations and / or acreage owned or co-
owned by the “Insured”. As used in this endorsement,
farm
/ ranch operations shall include the use of
operation of farm / ranch equipment or farm / ranch
machinery.
All other provisions of this policy apply.
CIG-HO1022
Page 1 of 1
CIG-HO1023
ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT
CAREFULLY
HOMEWORKING EXCLUSION ENDORSEMENT
(HOMEOWNERS/DWELLING)
1)
We do not insure for any loss, cost, claim, expense, ‘bodily injury’, ‘property
damage’, medical payment or liability of whatsoever nature arising out of or
in connection with a ‘business’ or a ‘business’ engaged in by the ‘insured’
whether or not the ‘business’ is owned or operated by an ‘insured’ or employs
an ‘insured’.
Except with respect to Coverage E - Personal Liability and Coverage F -
Medical Payments to Others this Exclusion does not apply to:-
The rental or holding for rental of an ‘insured location’;
(a) On an occasional basis if used only as a residence.
(b) In part for use only as a residence, unless a single family unit is
intended for use by the occupying family to lodge more than two
roomers or boarders
2)
With respect to Coverage E - Personal Liability and Coverage F - Medical
Payments to Others we do not insure any act or omission, regardless of its
nature or circumstance, involving a service or duty rendered, promised, owed
or implied to be provided because of the nature of the ‘business’.
3)
We do not insure for any costs, expenses or damages, whether direct or
consequential arising out of any investigation or defence of any loss, damage,
injury, suit, claim or action relating to 1) and/or 2) above.
4)
The definition of ‘business’ is as follows:-
a) A trade, profession or occupation engaged in on a full-time, part-time or
occasional basis, including any volunteer activities;
b) Any other activity engaged in for money or other compensation.
All other terms and conditions remain unaltered
CIG-HO1023
IL P 001 01 04
U.S. TREASURY DEPARTMENT'S OFFICE OF FOREIGN
ASSETS CONTROL ("OFAC")
ADVISORY NOTICE TO POLICYHOLDERS
No coverage is provided by this Policyholder Notice nor can it be construed to replace any provisions of your
policy. You should read your policy and review your Declarations page for complete information on the coverages
you are provided.
This Notice provides information concerning possible impact on your insurance coverage due to directives issued
by OFAC. Please read this Notice carefully.
The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on Presidential
declarations of "national emergency". OFAC has identified and listed numerous:
Foreign agents;
Front organizations;
Terrorists;
Terrorist organizations; and
Narcotics traffickers;
as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States Treas-
ury's web site - http//www.treas.gov/ofac.
In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or entity
claiming the benefits of this insurance has violated U.S. sanctions law or is a Specially Designated National and
Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen contract and all
provisions of this insurance are immediately subject to OFAC. When an insurance policy is considered to be such
a blocked or frozen contract, no payments nor premium refunds may be made without authorization from OFAC.
Other limitations on the premiums and payments also apply.
IL P 001 01 04
© ISO Properties, Inc., 2004
Page 1 of 1
IL P 022 01 07
STATEMENT REGARDING FLOOD INSURANCE
ADVISORY NOTICE TO POLICYHOLDERS
Please Note: This policy does NOT cover losses from flood.
Generally, the standard homeowner's insurance policy does not provide coverage for flooding, surface
water that enters the home or rising water. However, coverage for these types of losses may be availa-
ble through the Federal Government's National Flood Insurance Program ("NFIP") or through other
sources.
You can obtain information about the National Flood Insurance Program by contacting your insurance
company or your insurance agent or by going on the internet to www.FLOODSMART.GOV or by calling
1-800-427-4661. Here are some important facts you should know:
Flood insurance policies are available for any home located in a community that is a partici-
pant in the NFIP.
Some lenders, as a condition of your mortgage, will require that you purchased flood insur-
ance. You should confirm with your mortgage lender or the NFIP, before settlement, if you are
required to purchase flood insurance. Even if you are not required to purchase flood insur-
ance, you should consider purchasing it as additional protection for your home.
You do not have to be located in a special flood hazard area or be close to a body of water o
experience flooding. The risk of flood is present for most homes as floods can be caused by
storms, melting snow, heavy rains, dam failures or other causes.
You must complete a separate application in order to purchase flood insurance; it is not part
f
your homeowner's insurance application.
Flood insurance policies have two types of coverage: structural coverage for your home dthe
items that are permanently attached and contents coverage for your personal property
within the home. Structure and contents coverages are purchased separately and carry sepa-
rate deductibles.
Generally, there is a thirty (30) day waiting period for a new flood insurance policy to become
effective; although there are some exceptions to this general rule.
As flood insurance through the NFIP is created by federal law, flood claims are adjusted d
paid in a different manner than your homeowners' insurance claims.
IL P 022 01 07
Page 1 of 1
CIG-HO1024
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
HARD FLOOR COVERING LIMITATION
DEFINITIONS
SECTION I - CONDITIONS
The following definitions are added:
The following is added to Paragraph D. Loss
Settlement, subparagraph 2:
“Hard Floor Covering” means the protective
and/or decorative material permanently attached
Payment for covered losses involving damage to
to a sub floor or slab floor, including but not
“Hard Floor Covering” will be limited to the
limited to Tile, Glass, Granite, Porcelain,
“Room(s)” where the direct physical loss or
Marble, Mosaic, Terracotta, Stone, Metal,
damage occurred without regard to matching or
Laminate, Wood (whether a hard wood or a soft
uniformity whether or not the
“Hard Floor
wood), or any combination thereof.
Covering” is continuous throughout other rooms.
“Room” means an area within a Dwelling or
All other provisions of this policy apply.
Other Structures enclosed or set apart by
partitions, walls, doorways or archways or any
combination thereof, whether or not the
doorways or archways have a functional door
that can be closed.
CIG-HO1024
CIG-HO1025
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
INFLATION GUARD
SECTION I - CONDITIONS
The following condition is added:
Inflation Guard
For each policy period, we will re-evaluate the
cost index we use to determine the approximate
replacement cost of the dwelling and structures
covered under Coverage A. This may result in
an increase in the amount of premium you are
charged and an increase in the limits of liability
for Coverages A, B, C, and D.
Any adjustment in premium resulting from the
application of the adjusted cost index will be
made based on the premium rates used by us at
the time of the change.
All other provisions of this policy apply.
CIG-HO1025
CIG-HO1026
PRE-EXISTING DAMAGE EXCLUSION
Notwithstanding any provision to the contrary within this Policy or any endorsement thereto, it is agreed
that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly
caused by, resulting from or in connection with any interest insured hereunder where such interest has
pre-existing damage, at the inception date of this insurance, and is considered by the underwriters to be
exposed to conditions which would not have been exposed had the previous loss not occurred
In the event an insured loss to any interest insured hereunder where such interest has pre-existing
damage, at the inception date of this insurance, then necessary deduction shall be made to the indemnity
hereon.
CIG-HO1026
CIG-HO1027
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
POLICY FEE DISCLOSURE
The Policy Fee, Program Fee, Inspection Fee or
any other fee applicable to this policy is fully
earned and non-refundable at policy inception.
If this policy is canceled during its term, the
surplus lines wholesaler will retain the entire
policy fee.
All other provisions of this policy apply.
CIG-HO1027
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
SPECIFIC BREED ANIMAL EXCLUSION
Under EXCLUSIONS - E. Coverage L - Personal Liability And Coverage M - Medical Payments To Others, the following exclusion is added:
Specific Breed Of Animal
a.
”Bodily injury” or “property damage” arising out of any “occurrence” involving any animal or breed of dog listed below owned by, or in the
care, custody, or control of the “insured” or any member of the “insured’s” family, household, or tenant of the “residence premises”; or
b.
Loss or expense arising out of any “occurrence” involving any animal or breed of dog listed below owned by, or in the care, custody, or
control of the “insured” or any member of the “insured’s” family, household, or tenant of the “residence premises”.
Animal:
(1)
Any animal with a previous bite history;
(2)
Snakes;
(3)
Monkeys;
(4)
Ostriches.
Breed of Dog:
(1)
Akita;
(2)
Anatolian Shepherd;
(3)
Chow;
(4)
Doberman;
(5)
Pit Bull;
(6)
Rottweiler;
(7)
Presa Canario
(8)
Wolf;
(9)
Wolf Hybrids;
(10)
A mix of any of the above breeds with any other breed whether listed above or not.
c.
This exclusion does not apply to heat, smoke or fumes from a hostile fire, if the hostile fire was caused by an excluded animal or dog.
All other provisions of this policy apply.
CIG-HO1045
HOMEOWNERS
HO 00 04 05 11
HOMEOWNERS 4 - CONTENTS BROAD FORM
AGREEMENT
2.
"Bodily injury" means bodily harm, sickness or
disease, including required care, loss of
We will provide the insurance described in this policy
services and death that results.
in return for the premium and compliance with all
applicable provisions of this policy.
3.
"Business" means:
DEFINITIONS
a. A trade, profession or occupation engaged
in on a full-time, part-time or occasional
A. In this policy, "you" and "your" refer to the "named
basis; or
insured" shown in the Declarations and the spouse
if a resident of the same household. "We", "us"
b. Any other activity engaged in for money or
and "our" refer to the Company providing this
other compensation, except the following:
insurance.
(1) One or more activities, not described in
B. In addition, certain words and phrases are defined
(2) through
(4) below, for which no
as follows:
"insured" receives more than $2,000 in
total compensation for the
12 months
1.
"Aircraft Liability", "Hovercraft Liability", "Motor
before the beginning of
the policy
Vehicle Liability" and "Watercraft Liability",
period;
subject to the provisions in b. below, mean the
following:
(2) Volunteer activities for which no money
is received other than payment for
a. Liability for "bodily injury" or "property
expenses incurred to perform the
damage" arising out of the:
activity;
(1) Ownership of such vehicle or craft by an
(3) Providing home day care services for
"insured";
which no compensation is received,
(2) Maintenance, occupancy, operation,
other than the mutual exchange of such
use, loading or unloading of such
services; or
vehicle or craft by any person;
(4) The rendering of home day care
(3) Entrustment of such vehicle or craft by
services to a relative of an "insured".
an "insured" to any person;
4.
"Employee" means an employee of an
(4) Failure to supervise or negligent
"insured", or an employee leased to an
supervision of any person involving such
"insured" by a labor leasing firm under an
vehicle or craft by an "insured"; or
agreement between an "insured" and the labor
(5) Vicarious liability, whether or not
leasing firm, whose duties are other than those
imposed by law, for the actions of a
performed by a "residence employee".
child or minor involving such vehicle or
5.
"Insured" means:
craft.
a. You and residents of your household who
b. For the purpose of this definition:
are:
(1) Aircraft means any contrivance used or
(1) Your relatives; or
designed for flight except model or
(2) Other persons under the age of 21 and
hobby aircraft not used or designed to
in your care or the care of a resident of
carry people or cargo;
your household who is your relative;
(2) Hovercraft means a self-propelled
b. A student enrolled in school full-time, as
motorized ground effect vehicle and
defined by the school, who was a resident
includes, but is not limited to, flarecraft
of your household before moving out to
and air cushion vehicles;
attend school, provided the student is under
(3) Watercraft means a craft principally
the age of:
designed to be propelled on or in water
(1)
24 and your relative; or
by wind, engine power or electric motor;
and
(4) Motor vehicle means a "motor vehicle"
as defined in 7. below.
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 1 of 19
(2)
21 and in your care or the care of a
g. Individual or family cemetery plots or burial
resident of your household who is your
vaults of an "insured"; or
relative; or
h. Any part of a premises occasionally rented
c. Under Section II:
to an "insured" for other than "business"
use.
(1) With respect to animals or watercraft to
which this policy applies, any person or
7.
"Motor vehicle" means:
organization legally responsible for
a. A self-propelled land or amphibious vehicle;
these animals or watercraft which are
or
owned by you or any person described
b. Any trailer or semitrailer which is being
in 5.a. or b. "Insured" does not mean a
carried on, towed by or hitched for towing
person or organization using or having
by a vehicle described in a. above.
custody of these animals or watercraft in
the course of any "business" or without
8.
"Occurrence" means an accident, including
consent of the owner; or
continuous or repeated exposure to
substantially the same general harmful
(2) With respect to a "motor vehicle" to
conditions, which results, during the policy
which this policy applies:
period, in:
(a) Persons while engaged in your
a. "Bodily injury"; or
employ or that of any person
described in 5.a. or b.; or
b. "Property damage".
(b) Other persons using the vehicle on
9.
"Property damage" means physical injury to,
an "insured location" with your
destruction of, or loss of use of tangible
consent.
property.
Under both Sections I and II, when the word an
10.
"Residence employee" means:
immediately precedes the word "insured", the
a. An employee of an "insured", or an
words an "insured" together mean one or more
employee leased to an "insured" by a labor
"insureds".
leasing firm, under an agreement between
6.
"Insured location" means:
an "insured" and the labor leasing firm,
whose duties are related to the
a. The "residence premises";
maintenance or use of the "residence
b. The part of other premises, other structures
premises", including household or domestic
and grounds used by you as a residence;
services; or
and
b. One who performs similar duties elsewhere
(1) Which is shown in the Declarations; or
not related to the "business" of an "insured".
(2) Which is acquired by you during the
A "residence employee" does not include a
policy period for your use as a
temporary employee who is furnished to an
residence;
"insured" to substitute for a permanent
c. Any premises used by you in connection
"residence employee" on leave or to meet
with a premises described in a. and b.
seasonal or short-term workload conditions.
above;
11.
"Residence premises" means:
d. Any part of a premises:
a. The one-family dwelling where you reside;
(1) Not owned by an "insured"; and
b. The two-, three- or four-family dwelling
(2) Where an "insured" is temporarily
where you reside in at least one of the
residing;
family units; or
e. Vacant land, other than farm land, owned
c. That part of any other building where you
by or rented to an "insured";
reside;
f. Land owned by or rented to an "insured" on
and which is shown as the "residence
which a one-, two-, three- or four-family
premises" in the Declarations.
dwelling is being built as a residence for an
"Residence premises" also includes other
"insured";
structures and grounds at that location.
Page 2 of 19
© Insurance Services Office, Inc., 2010
HO 00 04 05 11
SECTION I - PROPERTY COVERAGES
3.
Special Limits Of Liability
A. Coverage C - Personal Property
The special limit for each category shown
below is the total limit for each loss for all
1.
Covered Property
property in that category. These special limits
We cover personal property owned or used by
do not increase the Coverage C limit of liability.
an "insured" while it is anywhere in the world.
a.
$200 on money, bank notes, bullion, gold
After a loss and at your request, we will cover
other than goldware, silver other than
personal property owned by:
silverware,
platinum
other
than
a. Others while the property is on the part of
platinumware, coins, medals, scrip, stored
the "residence premises" occupied by an
value cards and smart cards.
"insured"; or
b.
$1,500 on securities, accounts, deeds,
b. A guest or a "residence employee", while
evidences of debt, letters of credit, notes
the property is in any residence occupied
other than bank notes, manuscripts,
by an "insured".
personal records, passports, tickets and
2.
Limit For Property At Other Locations
stamps. This dollar limit applies to these
categories regardless of the medium (such
a. Other Residences
as paper or computer software) on which
Our limit of liability for personal property
the material exists.
usually located at an "insured's" residence,
This limit includes the cost to research,
other than the "residence premises", is 10%
replace or restore the information from the
of the limit of liability for Coverage C, or
lost or damaged material.
$1,000, whichever is greater. However, this
limitation does not apply to personal
c.
$1,500 on watercraft of all types, including
property:
their trailers, furnishings, equipment and
outboard engines or motors.
(1) Moved from the "residence premises"
because it is:
d.
$1,500 on trailers or semitrailers not used
with watercraft of all types.
(a) Being repaired, renovated or rebuilt;
and
e.
$1,500 for loss by theft of jewelry, watches,
furs, precious and semiprecious stones.
(b) Not fit to live in or store property in;
or
f.
$2,500 for loss by theft of firearms and
related equipment.
(2) In a newly acquired principal residence
for 30 days from the time you begin to
g.
$2,500 for loss by theft of silverware, silver-
move the property there.
plated ware, goldware, gold-plated ware,
platinumware, platinum-plated ware and
b. Self-storage Facilities
pewterware. This includes flatware,
Our limit of liability for personal property
hollowware, tea sets, trays and trophies
owned or used by an "insured" and located
made of or including silver, gold or pewter.
in a self-storage facility is 10% of the limit of
h.
$2,500 on property, on the "residence
liability for Coverage C, or
$1,000,
premises", used primarily for "business"
whichever is greater. However, this
purposes.
limitation does not apply to personal
property:
i.
$1,500 on property, away from the
"residence premises", used primarily for
(1) Moved from the "residence premises"
"business" purposes. However, this limit
because it is:
does not apply to antennas, tapes, wires,
(a) Being repaired, renovated or rebuilt;
records, disks or other media that are:
and
(1) Used with electronic equipment that
(b) Not fit to live in or store property in;
reproduces, receives or transmits audio,
or
visual or data signals; and
(2) Usually located in an "insured's"
(2) In or upon a "motor vehicle".
residence, other than the "residence
j.
$1,500 on portable electronic equipment
premises".
that:
(1) Reproduces, receives or transmits
audio, visual or data signals;
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 3 of 19
(2) Is designed to be operated by more than
h. Property rented or held for rental to others
one power source, one of which is a
off the "residence premises";
"motor vehicle's" electrical system; and
i. "Business" data, including such data stored
(3) Is in or upon a "motor vehicle".
in:
k.
$250 for antennas, tapes, wires, records,
(1) Books of account, drawings or other
disks or other media that are:
paper records; or
(1) Used with electronic equipment that
(2) Computers and related equipment.
reproduces, receives or transmits audio,
We do cover the cost of blank recording or
visual or data signals; and
storage media and of prerecorded
(2) In or upon a "motor vehicle".
computer programs available on the retail
market;
4.
Property Not Covered
j. Credit cards, electronic fund transfer cards
We do not cover:
or access devices used solely for deposit,
a. Articles
separately
described
and
withdrawal or transfer of funds except as
specifically insured, regardless of the limit
provided in C.6. Credit Card, Electronic
for which they are insured, in this or other
Fund Transfer Card Or Access Device,
insurance;
Forgery And Counterfeit Money under
b. Animals, birds or fish;
Section I - Property Coverages; or
c. "Motor vehicles".
k. Water or steam.
This includes a "motor vehicle's" equipment
B. Coverage D - Loss Of Use
and parts.
The limit of liability for Coverage D is the total limit
However, this Paragraph
4.c. does not
for the coverages in 1. Additional Living Expense,
apply to:
2. Fair Rental Value and 3. Civil Authority Prohibits
Use below.
(1) Portable electronic equipment that:
1. Additional Living Expense
(a) Reproduces, receives or transmits
audio, visual or data signals; and
If a loss by a Peril Insured Against under this
policy to covered property or the building
(b) Is designed so that it may be
containing the property makes the "residence
operated from a power source other
premises" not fit to live in, we cover any
than a "motor vehicle's" electrical
necessary increase in living expenses incurred
system.
by you so that your household can maintain its
(2) "Motor vehicles" not required to be
normal standard of living.
registered for use on public roads or
Payment will be for the shortest time required
property which are:
to repair or replace the damage or, if you
(a) Used solely to service a residence;
permanently relocate, the shortest time
or
required for your household to settle
(b) Designed to assist the handicapped;
elsewhere.
d. Aircraft, meaning any contrivance used or
2.
Fair Rental Value
designed for flight, including any parts
If a loss covered under Section I makes that
whether or not attached to the aircraft.
part of the "residence premises" rented to
We do cover model or hobby aircraft not
others or held for rental by you not fit to live in,
used or designed to carry people or cargo;
we cover the fair rental value of such premises
less any expenses that do not continue while it
e. Hovercraft and parts. Hovercraft means a
is not fit to live in.
self-propelled motorized ground effect
vehicle and includes, but is not limited to,
Payment will be for the shortest time required
flarecraft and air cushion vehicles;
to repair or replace such premises.
f. Property of roomers, boarders and other
tenants, except property of roomers and
boarders related to an "insured";
g. Property in an apartment regularly rented or
held for rental to others by an "insured";
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© Insurance Services Office, Inc., 2010
HO 00 04 05 11
3. Civil Authority Prohibits Use
(b) Block a ramp or other fixture
designed to assist a handicapped
If a civil authority prohibits you from use of the
person to enter or leave the dwelling
"residence premises" as a result of direct
building.
damage to neighboring premises by a Peril
Insured Against, we cover the loss as provided
The $1,000 limit is the most we will pay in
in
1. Additional Living Expense and
2. Fair
any one loss, regardless of the number of
Rental Value above for no more than two
fallen trees. No more than $500 of this limit
weeks.
will be paid for the removal of any one tree.
4. Loss Or Expense Not Covered
This coverage is additional insurance.
We do not cover loss or expense due to
2.
Reasonable Repairs
cancellation of a lease or agreement.
a. We will pay the reasonable cost incurred by
The periods of time under
1. Additional Living
you for the necessary measures taken
Expense,
2. Fair Rental Value and
3. Civil
solely to protect covered property that is
Authority Prohibits Use above are not limited by
damaged by a Peril Insured Against from
expiration of this policy.
further damage.
C. Additional Coverages
b. If the measures taken involve repair to
other damaged property, we will only pay if
1.
Debris Removal
that property is covered under this policy
a. We will pay your reasonable expense for
and the damage is caused by a Peril
the removal of:
Insured Against. This coverage does not:
(1) Debris of covered property if a Peril
(1) Increase the limit of liability that applies
Insured Against that applies to the
to the covered property; or
damaged property causes the loss; or
(2) Relieve you of your duties, in case of a
(2) Ash, dust or particles from a volcanic
loss to covered property, described in
eruption that has caused direct loss to a
C.4. under Section I - Conditions.
building or property contained in a
3.
Trees, Shrubs And Other Plants
building.
We cover trees, shrubs, plants or lawns, on the
This expense is included in the limit of
"residence premises", for loss caused by the
liability that applies to the damaged
following Perils Insured Against:
property. If the amount to be paid for the
actual damage to the property plus the
a. Fire or Lightning;
debris removal expense is more than the
b. Explosion;
limit of liability for the damaged property, an
c. Riot or Civil Commotion;
additional 5% of that limit is available for
such expense.
d. Aircraft;
b. We will also pay your reasonable expense,
e. Vehicles not owned or operated by a
up to
$1,000, for the removal from the
resident of the "residence premises";
"residence premises" of:
f. Vandalism or Malicious Mischief; or
(1) Your trees felled by the peril of
g. Theft.
Windstorm or Hail or Weight of Ice,
Snow or Sleet; or
We will pay up to 10% of the limit of liability
that applies to Coverage C for all trees, shrubs,
(2) A neighbor's trees felled by a Peril
plants or lawns. No more than $500 of this limit
Insured Against under Coverage C;
will be paid for any one tree, shrub or plant. We
provided the trees:
do not cover property grown for "business"
purposes.
(3) Damage a covered structure; or
This coverage is additional insurance.
(4) Do not damage a covered structure, but:
(a) Block a driveway on the "residence
premises" which prevents a "motor
vehicle", that is registered for use on
public roads or property, from
entering or leaving the "residence
premises"; or
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 5 of 19
4.
Fire Department Service Charge
(c) If an "insured" has not complied with
all terms and conditions under which
We will pay up to
$500 for your liability
the cards are issued or the devices
assumed by contract or agreement for fire
accessed; or
department charges incurred when the fire
department is called to save or protect covered
(2) Loss arising out of "business" use or
property from a Peril Insured Against. We do
dishonesty of an "insured".
not cover fire department service charges if the
c. If the coverage in a. above applies, the
property is located within the limits of the city,
following defense provisions also apply:
municipality or protection district furnishing the
(1) We may investigate and settle any claim
fire department response.
or suit that we decide is appropriate.
This coverage is additional insurance. No
Our duty to defend a claim or suit ends
deductible applies to this coverage.
when the amount we pay for the loss
5.
Property Removed
equals our limit of liability.
We insure covered property against direct loss
(2) If a suit is brought against an "insured"
from any cause while being removed from a
for liability under a.(1) or (2) above, we
premises endangered by a Peril Insured
will provide a defense at our expense by
Against and for no more than 30 days while
counsel of our choice.
removed.
(3) We have the option to defend at our
This coverage does not change the limit of
expense an "insured" or an "insured's"
liability that applies to the property being
bank against any suit for the
removed.
enforcement of payment under a.(3)
above.
6.
Credit Card, Electronic Fund Transfer Card
Or Access Device, Forgery And Counterfeit
7.
Loss Assessment
Money
a. We will pay up to $1,000 for your share of
a. We will pay up to $500 for:
loss assessment charged during the policy
period against you, as owner or tenant of
(1) The legal obligation of an "insured" to
the "residence premises", by a corporation
pay because of the theft or unauthorized
or association of property owners. The
use of credit cards issued to or
assessment must be made as a result of
registered in an "insured's" name;
direct loss to property, owned by all
(2) Loss resulting from theft or unauthorized
members collectively, of the type that would
use of an electronic fund transfer card or
be covered by this policy if owned by you,
access device used for deposit,
caused by a Peril Insured Against under
withdrawal or transfer of funds, issued to
Coverage C, other than:
or registered in an "insured's" name;
(1) Earthquake; or
(3) Loss to an "insured" caused by forgery
(2) Land shock waves or tremors before,
or alteration of any check or negotiable
during or after a volcanic eruption.
instrument; and
The limit of $1,000 is the most we will pay
(4) Loss to an "insured" through acceptance
with respect to any one loss, regardless of
in good faith of counterfeit United States
the number of assessments. We will only
or Canadian paper currency.
apply one deductible, per unit, to the total
All loss resulting from a series of acts
amount of any one loss to the property
committed by any one person or in which
described above, regardless of the number
any one person is concerned or implicated
of assessments.
is considered to be one loss.
b. We do not cover assessments charged
This coverage is additional insurance. No
against you or a corporation or association
deductible applies to this coverage.
of property owners by any governmental
b. We do not cover:
body.
(1) Use of a credit card, electronic fund
c. Paragraph P. Policy Period under Section I
transfer card or access device:
- Conditions does not apply to this
coverage.
(a) By a resident of your household;
This coverage is additional insurance.
(b) By a person who has been entrusted
with either type of card or access
device; or
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© Insurance Services Office, Inc., 2010
HO 00 04 05 11
8.
Collapse
e. Loss to an awning, fence, patio, deck,
pavement, swimming pool, underground
a. The coverage provided under this
pipe, flue, drain, cesspool, septic tank,
Additional Coverage
- Collapse applies
foundation, retaining wall, bulkhead, pier,
only to an abrupt collapse.
wharf or dock is not included under d.(2)
b. For the purpose of this Additional Coverage
through
(6) above, unless the loss is a
- Collapse, abrupt collapse means an
direct result of the collapse of a building or
abrupt falling down or caving in of a building
any part of a building.
or any part of a building with the result that
f. This coverage does not increase the limit of
the building or part of the building cannot be
liability that applies to the damaged covered
occupied for its intended purpose.
property.
c. This Additional Coverage - Collapse does
9.
Glass Or Safety Glazing Material
not apply to:
a. We cover:
(1) A building or any part of a building that
is in danger of falling down or caving in;
(1) The breakage of glass or safety glazing
material which is part of a building,
(2) A part of a building that is standing,
storm door or storm window and
even if it has separated from another
covered as Building Additions And
part of the building; or
Alterations;
(3) A building or any part of a building that
(2) The breakage of glass or safety glazing
is standing, even if it shows evidence of
material which is part of a building,
cracking, bulging, sagging, bending,
storm door or storm window and
leaning,
settling,
shrinkage
or
covered as Building Additions And
expansion.
Alterations when caused directly by
d. We insure for direct physical loss to
earth movement; and
covered property involving abrupt collapse
(3) The direct physical loss to covered
of a building or any part of a building if such
property caused solely by the pieces,
collapse was caused by one or more of the
fragments or splinters of broken glass or
following:
safety glazing material which is part of a
(1)
The Perils Insured Against;
building, storm door or storm window.
(2)
Decay, of a building or any part of a
b. This coverage does not include loss:
building, that is hidden from view, unless
(1) To covered property which results
the presence of such decay is known to
because the glass or safety glazing
an "insured" prior to collapse;
material has been broken, except as
(3)
Insect or vermin damage, to a building
provided in a.(3) above; or
or any part of a building, that is hidden
(2) On the "residence premises" if the
from view, unless the presence of such
dwelling has been vacant for more than
damage is known to an "insured" prior to
60 consecutive days immediately before
collapse;
the loss, except when the breakage
(4)
Weight of contents, equipment, animals
results directly from earth movement as
or people;
provided in a.(2) above. A dwelling
(5)
Weight of rain which collects on a roof;
being constructed is not considered
or
vacant.
(6)
Use of defective material or methods in
c. This coverage does not increase the limit of
construction, remodeling or renovation if
liability that applies to the damaged
the collapse occurs during the course of
property.
the
construction,
remodeling or
10.
Building Additions And Alterations
renovation.
We cover under Coverage C the building
improvements or installations, made or
acquired at your expense, to that part of the
"residence premises" used exclusively by you.
The limit of liability for this coverage will not be
more than 10% of the limit of liability that
applies to Coverage C.
This coverage is additional insurance.
HO 00 04 05 11
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Page 7 of 19
11.
Ordinance Or Law
12. Grave Markers
a. You may use up to 10% of the limit of
We will pay up to $5,000 for grave markers,
liability that applies to Building Additions
including mausoleums, on or away from the
And Alterations for the increased costs you
"residence premises" for loss caused by a Peril
incur due to the enforcement of any
Insured Against.
ordinance or law which requires or
This coverage does not increase the limits of
regulates:
liability that apply to the damaged covered
(1) The
construction,
demolition,
property.
remodeling, renovation or repair of that
SECTION I - PERILS INSURED AGAINST
part of a covered building or other
We insure for direct physical loss to the property
structure damaged by a Peril Insured
described in Coverage C caused by any of the
Against;
following perils unless the loss is excluded in Section I
(2) The demolition and reconstruction of the
- Exclusions.
undamaged part of a covered building or
1.
Fire Or Lightning
other structure, when that building or
other structure must be totally
2.
Windstorm Or Hail
demolished because of damage by a
This peril includes loss to watercraft of all types
Peril Insured Against to another part of
and their trailers, furnishings, equipment, and
that covered building or other structure;
outboard engines or motors, only while inside a
or
fully enclosed building.
(3) The
remodeling,
removal
or
This peril does not include loss to the property
replacement of the portion of the
contained in a building caused by rain, snow,
undamaged part of a covered building or
sleet, sand or dust unless the direct force of wind
other structure necessary to complete
or hail damages the building causing an opening
the remodeling, repair or replacement of
in a roof or wall and the rain, snow, sleet, sand or
that part of the covered building or other
dust enters through this opening.
structure damaged by a Peril Insured
Against.
3.
Explosion
b. You may use all or part of this ordinance or
4.
Riot Or Civil Commotion
law coverage to pay for the increased costs
5.
Aircraft
you incur to remove debris resulting from
This peril includes self-propelled missiles and
the construction, demolition, remodeling,
spacecraft.
renovation, repair or replacement of
property as stated in a. above.
6.
Vehicles
c. We do not cover:
7.
Smoke
(1) The loss in value to any covered
This peril means sudden and accidental damage
building or other structure due to the
from smoke, including the emission or puffback of
requirements of any ordinance or law; or
smoke, soot, fumes or vapors from a boiler,
furnace or related equipment.
(2) The costs to comply with any ordinance
or law which requires any "insured" or
This peril does not include loss caused by smoke
others to test for, monitor, clean up,
from agricultural smudging or industrial operations.
remove, contain, treat, detoxify or
8.
Vandalism Or Malicious Mischief
neutralize, or in any way respond to, or
This peril does not include loss to property on the
assess the effects of, pollutants in or on
"residence premises", and any ensuing loss
any covered building or other structure.
caused by any intentional and wrongful act
Pollutants means any solid, liquid,
committed in the course of the vandalism or
gaseous or thermal irritant or
malicious mischief, if the dwelling has been vacant
contaminant, including smoke, vapor,
for more than 60 consecutive days immediately
soot, fumes, acids, alkalis, chemicals
before the loss. A dwelling being constructed is
and waste. Waste includes materials to
not considered vacant.
be recycled, reconditioned or reclaimed.
9.
Theft
This coverage is additional insurance.
a. This peril includes attempted theft and loss of
property from a known place when it is likely
that the property has been stolen.
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© Insurance Services Office, Inc., 2010
HO 00 04 05 11
b. This peril does not include loss caused by
(4) Caused by mold, fungus or wet rot unless
theft:
hidden within the walls or ceilings or
beneath the floors or above the ceilings of a
(1) Committed by an "insured";
structure.
(2) In or to a dwelling under construction, or of
c. In this peril, a plumbing system or household
materials and supplies for use in the
appliance does not include a sump, sump
construction until the dwelling is finished
pump or related equipment or a roof drain,
and occupied;
gutter, downspout or similar fixtures or
(3) From that part of a "residence premises"
equipment.
rented by an "insured" to someone other
d. Section I - Exclusion 3. Water, Paragraphs a.
than another "insured"; or
and c. that apply to surface water and water
(4) That occurs off the "residence premises" of:
below the surface of the ground do not apply to
(a) Trailers, semitrailers and campers;
loss by water covered under this peril.
(b) Watercraft of all types, and their
13. Sudden And Accidental Tearing Apart,
furnishings, equipment and outboard
Cracking, Burning Or Bulging
engines or motors; or
This peril means sudden and accidental tearing
(c) Property while at any other residence
apart, cracking, burning or bulging of a steam or
owned by, rented to, or occupied by an
hot water heating system, an air conditioning or
"insured", except while an "insured" is
automatic fire protective sprinkler system, or an
temporarily living there. Property of an
appliance for heating water.
"insured" who is a student is covered
This peril does not include loss caused by or
while at the residence the student
resulting from freezing except as provided in Peril
occupies to attend school as long as the
Insured Against 14. Freezing below.
student has been there at any time
14. Freezing
during the 90 days immediately before
the loss.
a. This peril means freezing of a plumbing,
heating, air conditioning or automatic fire
10. Falling Objects
protective sprinkler system or of a household
This peril does not include loss to the property
appliance, but only if you have used
contained in the building unless the roof or an
reasonable care to:
outside wall of the building is first damaged by a
(1) Maintain heat in the building; or
falling object. Damage to the falling object itself is
not included.
(2) Shut off the water supply and drain all
systems and appliances of water.
11. Weight Of Ice, Snow Or Sleet
However, if the building is protected by an
This peril means weight of ice, snow or sleet which
automatic fire protective sprinkler system, you
causes damage to the property contained in the
must use reasonable care to continue the
building.
water supply and maintain heat in the building
12. Accidental Discharge Or Overflow Of Water Or
for coverage to apply.
Steam
b. In this peril, a plumbing system or household
a. This peril means accidental discharge or
appliance does not include a sump, sump
overflow of water or steam from within a
pump or related equipment or a roof drain,
plumbing, heating, air conditioning or automatic
gutter, downspout or similar fixtures or
fire protective sprinkler system or from within a
equipment.
household appliance.
15. Sudden And Accidental Damage From
b. This peril does not include loss:
Artificially Generated Electrical Current
(1) To the system or appliance from which the
This peril does not include loss to tubes,
water or steam escaped;
transistors, electronic components or circuitry that
(2) Caused by or resulting from freezing except
is a part of appliances, fixtures, computers, home
as provided in Peril Insured Against
14.
entertainment units or other types of electronic
Freezing;
apparatus.
(3) On the "residence premises" caused by
16. Volcanic Eruption
accidental discharge or overflow which
This peril does not include loss caused by
occurs away from the building where the
earthquake, land shock waves or tremors.
"residence premises" is located; or
HO 00 04 05 11
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Page 9 of 19
SECTION I - EXCLUSIONS
b. Water which:
We do not insure for loss caused directly or indirectly
(1) Backs up through sewers or drains; or
by any of the following. Such loss is excluded
(2) Overflows or is otherwise discharged from a
regardless of any other cause or event contributing
sump, sump pump or related equipment;
concurrently or in any sequence to the loss. These
c. Water below the surface of the ground,
exclusions apply whether or not the loss event results
including water which exerts pressure on, or
in widespread damage or affects a substantial area.
seeps, leaks or flows through a building,
1.
Ordinance Or Law
sidewalk,
driveway,
patio,
foundation,
Ordinance Or Law means any ordinance or law:
swimming pool or other structure; or
a. Requiring or regulating the construction,
d. Waterborne material carried or otherwise
demolition, remodeling, renovation or repair of
moved by any of the water referred to in 3.a.
property, including removal of any resulting
through 3.c. of this exclusion.
debris. This Exclusion 1.a. does not apply to
This Exclusion 3. applies regardless of whether
the amount of coverage that may be provided
any of the above, in 3.a. through 3.d., is caused by
for in C.11. Ordinance Or Law under Section I
an act of nature or is otherwise caused.
- Property Coverages;
This Exclusion 3. applies to, but is not limited to,
b. The requirements of which result in a loss in
escape, overflow or discharge, for any reason, of
value to property; or
water or waterborne material from a dam, levee,
c. Requiring any "insured" or others to test for,
seawall or any other boundary or containment
monitor, clean up, remove, contain, treat,
system.
detoxify or neutralize, or in any way respond to,
However, direct loss by fire, explosion or theft
or assess the effects of, pollutants.
resulting from any of the above, in 3.a. through
Pollutants means any solid, liquid, gaseous or
3.d., is covered.
thermal irritant or contaminant, including
4.
Power Failure
smoke, vapor, soot, fumes, acids, alkalis,
Power Failure means the failure of power or other
chemicals and waste. Waste includes materials
utility service if the failure takes place off the
to be recycled, reconditioned or reclaimed.
"residence premises". But if the failure results in a
This Exclusion 1. applies whether or not the
loss, from a Peril Insured Against on the
property has been physically damaged.
"residence premises", we will pay for the loss
2.
Earth Movement
caused by that peril.
Earth Movement means:
5.
Neglect
a. Earthquake, including land shock waves or
Neglect means neglect of an "insured" to use all
tremors before, during or after a volcanic
reasonable means to save and preserve property
eruption;
at and after the time of a loss.
b. Landslide, mudslide or mudflow;
6.
War
c. Subsidence or sinkhole; or
War includes the following and any consequence
of any of the following:
d. Any other earth movement including earth
sinking, rising or shifting.
a. Undeclared war, civil war, insurrection,
rebellion or revolution;
This Exclusion 2. applies regardless of whether
any of the above, in 2.a. through 2.d., is caused by
b. Warlike act by a military force or military
an act of nature or is otherwise caused.
personnel; or
However, direct loss by fire, explosion or theft
c. Destruction, seizure or use for a military
resulting from any of the above, in 2.a. through
purpose.
2.d., is covered.
Discharge of a nuclear weapon will be deemed a
3.
Water
warlike act even if accidental.
This means:
7.
Nuclear Hazard
a. Flood, surface water, waves, including tidal
This Exclusion 7. pertains to Nuclear Hazard to
wave and tsunami, tides, tidal water, overflow
the extent set forth in M. Nuclear Hazard Clause
of any body of water, or spray from any of
under Section I - Conditions.
these, all whether or not driven by wind,
including storm surge;
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HO 00 04 05 11
8. Intentional Loss
4. Protect the property from further damage. If
repairs to the property are required, you must:
Intentional Loss means any loss arising out of any
act an "insured" commits or conspires to commit
a. Make reasonable and necessary repairs to
with the intent to cause a loss.
protect the property; and
In the event of such loss, no "insured" is entitled to
b. Keep an accurate record of repair
coverage, even "insureds" who did not commit or
expenses;
conspire to commit the act causing the loss.
5. Cooperate with us in the investigation of a
9. Governmental Action
claim;
Governmental Action means the destruction,
6. Prepare an inventory of damaged personal
confiscation or seizure of property described in
property showing the quantity, description,
Coverage C by order of any governmental or
actual cash value and amount of loss. Attach
public authority.
all bills, receipts and related documents that
justify the figures in the inventory;
This exclusion does not apply to such acts ordered
by any governmental or public authority that are
7. As often as we reasonably require:
taken at the time of a fire to prevent its spread, if
a. Show the damaged property;
the loss caused by fire would be covered under
b. Provide us with records and documents we
this policy.
request and permit us to make copies; and
SECTION I - CONDITIONS
c. Submit to examination under oath, while not
A. Insurable Interest And Limit Of Liability
in the presence of another "insured", and
Even if more than one person has an insurable
sign the same;
interest in the property covered, we will not be
8.
Send to us, within 60 days after our request,
liable in any one loss:
your signed, sworn proof of loss which sets
1. To an "insured" for more than the amount of
forth, to the best of your knowledge and belief:
such "insured's" interest at the time of loss; or
a. The time and cause of loss;
2. For more than the applicable limit of liability.
b. The interests of all "insureds" and all others
B. Deductible
in the property involved and all liens on the
property;
Unless otherwise noted in this policy, the following
deductible provision applies:
c. Other insurance which may cover the loss;
With respect to any one loss:
d. Changes in title or occupancy of the
property during the term of the policy;
1. Subject to the applicable limit of liability, we will
pay only that part of the total of all loss payable
e. Specifications of damaged buildings and
that exceeds the deductible amount shown in
detailed repair estimates;
the Declarations.
f. The inventory of damaged personal
2. If two or more deductibles under this policy
property described in 6. above;
apply to the loss, only the highest deductible
g. Receipts for additional living expenses
amount will apply.
incurred and records that support the fair
C. Duties After Loss
rental value loss; and
In case of a loss to covered property, we have no
h. Evidence or affidavit that supports a claim
duty to provide coverage under this policy if the
under C.6. Credit Card, Electronic Fund
failure to comply with the following duties is
Transfer Card Or Access Device, Forgery
prejudicial to us. These duties must be performed
And Counterfeit Money under Section I -
either by you, an "insured" seeking coverage, or a
Property Coverages, stating the amount
representative of either:
and cause of loss.
1. Give prompt notice to us or our agent;
D. Loss Settlement
2. Notify the police in case of loss by theft;
Covered property losses are settled at actual cash
value at the time of loss but not more than the
3. Notify the credit card or electronic fund transfer
amount required to repair or replace.
card or access device company in case of loss
as provided for in C.6. Credit Card, Electronic
E. Loss To A Pair Or Set
Fund Transfer Card Or Access Device, Forgery
In case of loss to a pair or set we may elect to:
And Counterfeit Money under Section I
-
1. Repair or replace any part to restore the pair or
Property Coverages;
set to its value before the loss; or
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 11 of 19
2. Pay the difference between actual cash value
J. Loss Payment
of the property before and after the loss.
We will adjust all losses with you. We will pay you
F. Appraisal
unless some other person is named in the policy
or is legally entitled to receive payment. Loss will
If you and we fail to agree on the amount of loss,
be payable 60 days after we receive your proof of
either may demand an appraisal of the loss. In this
loss and:
event, each party will choose a competent and
impartial appraiser within 20 days after receiving a
1. Reach an agreement with you;
written request from the other. The two appraisers
2. There is an entry of a final judgment; or
will choose an umpire. If they cannot agree upon
3. There is a filing of an appraisal award with us.
an umpire within 15 days, you or we may request
that the choice be made by a judge of a court of
K. Abandonment Of Property
record in the state where the "residence premises"
We need not accept any property abandoned by
is located. The appraisers will separately set the
an "insured".
amount of loss. If the appraisers submit a written
report of an agreement to us, the amount agreed
L. No Benefit To Bailee
upon will be the amount of loss. If they fail to
We will not recognize any assignment or grant any
agree, they will submit their differences to the
coverage that benefits a person or organization
umpire. A decision agreed to by any two will set
holding, storing or moving property for a fee
the amount of loss.
regardless of any other provision of this policy.
Each party will:
M. Nuclear Hazard Clause
1. Pay its own appraiser; and
1. "Nuclear Hazard" means any nuclear reaction,
2. Bear the other expenses of the appraisal and
radiation, or radioactive contamination, all
umpire equally.
whether controlled or uncontrolled or however
caused, or any consequence of any of these.
G. Other Insurance And Service Agreement
2. Loss caused by the nuclear hazard will not be
If a loss covered by this policy is also covered by:
considered loss caused by fire, explosion, or
1. Other insurance, we will pay only the
smoke, whether these perils are specifically
proportion of the loss that the limit of liability
named in or otherwise included within the
that applies under this policy bears to the total
Perils Insured Against.
amount of insurance covering the loss; or
3. This policy does not apply under Section I to
2. A service agreement, this insurance is excess
loss caused directly or indirectly by nuclear
over any amounts payable under any such
hazard, except that direct loss by fire resulting
agreement. Service agreement means a
from the nuclear hazard is covered.
service plan, property restoration plan, home
N. Recovered Property
warranty or other similar service warranty
agreement, even if it is characterized as
If you or we recover any property for which we
insurance.
have made payment under this policy, you or we
will notify the other of the recovery. At your option,
H. Suit Against Us
the property will be returned to or retained by you
No action can be brought against us unless there
or it will become our property. If the recovered
has been full compliance with all of the terms
property is returned to or retained by you, the loss
under Section I of this policy and the action is
payment will be adjusted based on the amount
started within two years after the date of loss.
you received for the recovered property.
I. Our Option
O. Volcanic Eruption Period
If we give you written notice within 30 days after
One or more volcanic eruptions that occur within a
we receive your signed, sworn proof of loss, we
72-hour period will be considered as one volcanic
may repair or replace any part of the damaged
eruption.
property with material or property of like kind and
P. Policy Period
quality.
This policy applies only to loss which occurs
during the policy period.
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HO 00 04 05 11
Q. Concealment Or Fraud
b. Is caused by the activities of an "insured";
We provide coverage to no "insureds" under this
c. Is caused by a "residence employee" in the
policy if, whether before or after a loss, an
course of the "residence employee's"
"insured" has:
employment by an "insured"; or
1. Intentionally concealed or misrepresented any
d. Is caused by an animal owned by or in the
material fact or circumstance;
care of an "insured".
2. Engaged in fraudulent conduct; or
SECTION II - EXCLUSIONS
3. Made false statements;
A. "Motor Vehicle Liability"
relating to this insurance.
1. Coverages E and F do not apply to any "motor
vehicle liability" if, at the time and place of an
R. Loss Payable Clause
"occurrence", the involved "motor vehicle":
If the Declarations shows a loss payee for certain
a. Is registered for use on public roads or
listed insured personal property, the definition of
property;
"insured" is changed to include that loss payee
with respect to that property.
b. Is not registered for use on public roads or
property, but such registration is required
If we decide to cancel or not renew this policy, that
by a law, or regulation issued by a
loss payee will be notified in writing.
government agency, for it to be used at the
SECTION II - LIABILITY COVERAGES
place of the "occurrence"; or
A. Coverage E - Personal Liability
c. Is being:
If a claim is made or a suit is brought against an
(1) Operated in, or practicing for, any
"insured" for damages because of "bodily injury" or
prearranged or organized race, speed
"property damage" caused by an "occurrence" to
contest or other competition;
which this coverage applies, we will:
(2) Rented to others;
1. Pay up to our limit of liability for the damages
(3) Used to carry persons or cargo for a
for which an "insured" is legally liable.
charge; or
Damages include prejudgment interest
awarded against an "insured"; and
(4) Used for any "business" purpose except
for a motorized golf cart while on a
2. Provide a defense at our expense by counsel
golfing facility.
of our choice, even if the suit is groundless,
false or fraudulent. We may investigate and
2. If Exclusion A.1. does not apply, there is still no
settle any claim or suit that we decide is
coverage for "motor vehicle liability", unless the
appropriate. Our duty to settle or defend ends
"motor vehicle" is:
when our limit of liability for the "occurrence"
a. In dead storage on an "insured location";
has been exhausted by payment of a judgment
b. Used solely to service a residence;
or settlement.
c. Designed to assist the handicapped and, at
B. Coverage F - Medical Payments To Others
the time of an "occurrence", it is:
We will pay the necessary medical expenses that
(1) Being used to assist a handicapped
are incurred or medically ascertained within three
person; or
years from the date of an accident causing "bodily
injury". Medical expenses means reasonable
(2) Parked on an "insured location";
charges for medical, surgical, x-ray, dental,
d. Designed for recreational use off public
ambulance, hospital, professional nursing,
roads and:
prosthetic devices and funeral services. This
coverage does not apply to you or regular
(1) Not owned by an "insured"; or
residents of your household except "residence
(2) Owned by an "insured" provided the
employees". As to others, this coverage applies
"occurrence" takes place:
only:
(a) On an "insured location" as defined
1. To a person on the "insured location" with the
in Definition B.6.a., b., d., e. or h.; or
permission of an "insured"; or
(b) Off an "insured location" and the
2. To a person off the "insured location", if the
"motor vehicle" is:
"bodily injury":
(i) Designed as a toy vehicle for use
a. Arises out of a condition on the "insured
by children under seven years of
location" or the ways immediately adjoining;
age;
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 13 of 19
(ii) Powered by one or more
c. Is not a sailing vessel and is powered by:
batteries; and
(1) An inboard or inboard-outdrive engine or
(iii) Not built or modified after
motor, including those that power a
manufacture to exceed a speed
water jet pump, of:
of five miles per hour on level
(a)
50 horsepower or less and not
ground;
owned by an "insured"; or
e. A motorized golf cart that is owned by an
(b) More than 50 horsepower and not
"insured", designed to carry up to four
owned by or rented to an "insured";
persons, not built or modified after
or
manufacture to exceed a speed of 25 miles
(2) One or more outboard engines or
per hour on level ground and, at the time of
motors with:
an "occurrence", is within the legal
boundaries of:
(a)
25 total horsepower or less;
(1) A golfing facility and is parked or stored
(b) More than
25 horsepower if the
there, or being used by an "insured" to:
outboard engine or motor is not
owned by an "insured";
(a) Play the game of golf or for other
recreational or leisure activity
(c) More than
25 horsepower if the
allowed by the facility;
outboard engine or motor is owned
by an "insured" who acquired it
(b) Travel to or from an area where
during the policy period; or
"motor vehicles" or golf carts are
parked or stored; or
(d) More than
25 horsepower if the
outboard engine or motor is owned
(c) Cross public roads at designated
by an "insured" who acquired it
points to access other parts of the
before the policy period, but only if:
golfing facility; or
(i) You declare them at policy
(2) A private residential
community,
inception; or
including its public roads upon which a
motorized golf cart can legally travel,
(ii) Your intent to insure them is
which is subject to the authority of a
reported to us in writing within 45
property owners association and
days after you acquire them.
contains an "insured's" residence.
The coverages in
(c) and
(d) above
B. "Watercraft Liability"
apply for the policy period.
1. Coverages E and F do not apply to any
Horsepower means the maximum power
"watercraft liability" if, at the time of an
rating assigned to the engine or motor by
"occurrence", the involved watercraft is being:
the manufacturer.
a. Operated in, or practicing for, any
C. "Aircraft Liability"
prearranged or organized race, speed
This policy does not cover "aircraft liability".
contest or other competition. This exclusion
does not apply to a sailing vessel or a
D. "Hovercraft Liability"
predicted log cruise;
This policy does not cover "hovercraft liability".
b. Rented to others;
E. Coverage E - Personal Liability And Coverage
c. Used to carry persons or cargo for a
F - Medical Payments To Others
charge; or
Coverages E and F do not apply to the following:
d. Used for any "business" purpose.
1. Expected Or Intended Injury
2. If Exclusion B.1. does not apply, there is still no
"Bodily injury" or "property damage" which is
coverage for "watercraft liability" unless, at the
expected or intended by an "insured", even if
time of the "occurrence", the watercraft:
the resulting "bodily injury" or "property
a. Is stored;
damage":
b. Is a sailing vessel, with or without auxiliary
a. Is of a different kind, quality or degree than
power, that is:
initially expected or intended; or
(1) Less than 26 feet in overall length; or
b. Is sustained by a different person, entity or
property than initially expected or intended.
(2)
26 feet or more in overall length and not
owned by or rented to an "insured"; or
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HO 00 04 05 11
However, this Exclusion E.1. does not apply to
b. Warlike act by a military force or military
"bodily injury" or "property damage" resulting
personnel; or
from the use of reasonable force by an
c. Destruction, seizure or use for a military
"insured" to protect persons or property;
purpose.
2.
"Business"
Discharge of a nuclear weapon will be deemed
a. "Bodily injury" or "property damage" arising
a warlike act even if accidental;
out of or in connection with a "business"
6.
Communicable Disease
conducted from an "insured location" or
"Bodily injury" or "property damage" which
engaged in by an "insured", whether or not
arises out of the transmission of a
the "business" is owned or operated by an
communicable disease by an "insured";
"insured" or employs an "insured".
7.
Sexual Molestation, Corporal Punishment
This Exclusion E.2. applies but is not limited
Or Physical Or Mental Abuse
to an act or omission, regardless of its
nature or circumstance, involving a service
"Bodily injury" or "property damage" arising out
or duty rendered, promised, owed, or
of sexual molestation, corporal punishment or
implied to be provided because of the
physical or mental abuse; or
nature of the "business".
8.
Controlled Substance
b. This Exclusion E.2. does not apply to:
"Bodily injury" or "property damage" arising out
(1) The rental or holding for rental of an
of the use, sale, manufacture, delivery, transfer
"insured location";
or possession by any person of a Controlled
Substance as defined by the Federal Food and
(a) On an occasional basis if used only
Drug Law at 21 U.S.C.A. Sections 811 and
as a residence;
812. Controlled Substances include but are not
(b) In part for use only as a residence,
limited to cocaine, LSD, marijuana and all
unless a single-family unit is
narcotic drugs. However, this exclusion does
intended for use by the occupying
not apply to the legitimate use of prescription
family to lodge more than two
drugs by a person following the lawful orders of
roomers or boarders; or
a licensed health care professional.
(c) In part, as an office, school, studio or
Exclusions A. "Motor Vehicle Liability", B.
private garage; and
"Watercraft Liability", C. "Aircraft Liability", D.
(2) An "insured" under the age of 21 years
"Hovercraft Liability" and E.4. "Insured's" Premises
involved in a part-time or occasional,
Not An "Insured Location" do not apply to "bodily
self-employed "business" with no
injury" to a "residence employee" arising out of
employees;
and in the course of the "residence employee's"
employment by an "insured".
3.
Professional Services
F.
Coverage E - Personal Liability
"Bodily injury" or "property damage" arising out
of the rendering of or failure to render
Coverage E does not apply to:
professional services;
1. Liability:
4.
"Insured's" Premises Not An "Insured
a. For any loss assessment charged against
Location"
you as a member of an association,
"Bodily injury" or "property damage" arising out
corporation or community of property
of a premises:
owners, except as provided in D. Loss
Assessment under Section II - Additional
a. Owned by an "insured";
Coverages;
b. Rented to an "insured"; or
b. Under any contract or agreement entered
c. Rented to others by an "insured";
into by an "insured". However, this
that is not an "insured location";
exclusion does not apply to written
contracts:
5.
War
(1) That directly relate to the ownership,
"Bodily injury" or "property damage" caused
maintenance or use of an "insured
directly or indirectly by war, including the
location"; or
following and any consequence of any of the
following:
(2) Where the liability of others is assumed
by you prior to an "occurrence";
a. Undeclared war, civil war, insurrection,
rebellion or revolution;
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 15 of 19
unless excluded in a. above or elsewhere in
2. To any person eligible to receive benefits
this policy;
voluntarily provided or required to be provided
under any:
2.
"Property damage" to property owned by an
"insured". This includes costs or expenses
a. Workers' compensation law;
incurred by an "insured" or others to repair,
b. Non-occupational disability law; or
replace, enhance, restore or maintain such
c. Occupational disease law;
property to prevent injury to a person or
damage to property of others, whether on or
3. From any:
away from an "insured location";
a. Nuclear reaction;
3.
"Property damage" to property rented to,
b. Nuclear radiation; or
occupied or used by or in the care of an
"insured". This exclusion does not apply to
c. Radioactive contamination;
"property damage" caused by fire, smoke or
all whether controlled or uncontrolled or
explosion;
however caused; or
4.
"Bodily injury" to any person eligible to receive
d. Any consequence of any of these; or
any benefits voluntarily provided or required to
4. To any person, other than a "residence
be provided by an "insured" under any:
employee" of an "insured", regularly residing
a. Workers' compensation law;
on any part of the "insured location".
b. Non-occupational disability law; or
SECTION II - ADDITIONAL COVERAGES
c. Occupational disease law;
We cover the following in addition to the limits of
5.
"Bodily injury" or "property damage" for which
liability:
an "insured" under this policy:
A. Claim Expenses
a. Is also an insured under a nuclear energy
We pay:
liability policy issued by the:
1. Expenses we incur and costs taxed against an
(1) Nuclear Energy Liability Insurance
"insured" in any suit we defend;
Association;
2. Premiums on bonds required in a suit we
(2) Mutual
Atomic
Energy Liability
defend, but not for bond amounts more than
Underwriters;
the Coverage E limit of liability. We need not
(3) Nuclear Insurance Association of
apply for or furnish any bond;
Canada;
3. Reasonable expenses incurred by an "insured"
or any of their successors; or
at our request, including actual loss of earnings
(but not loss of other income) up to $250 per
b. Would be an insured under such a policy
day, for assisting us in the investigation or
but for the exhaustion of its limit of liability;
defense of a claim or suit; and
or
4. Interest on the entire judgment which accrues
6. "Bodily injury" to you or an "insured" as defined
after entry of the judgment and before we pay
under Definition 5.a. or b.
or tender, or deposit in court that part of the
This exclusion also applies to any claim made
judgment which does not exceed the limit of
or suit brought against you or an "insured" to:
liability that applies.
a. Repay; or
B. First Aid Expenses
b. Share damages with;
We will pay expenses for first aid to others
incurred by an "insured" for "bodily injury" covered
another person who may be obligated to pay
under this policy. We will not pay for first aid to an
damages because of "bodily injury" to an
"insured".
"insured".
C. Damage To Property Of Others
G. Coverage F - Medical Payments To Others
1. We will pay, at replacement cost, up to $1,000
Coverage F does not apply to "bodily injury":
per "occurrence" for "property damage" to
1. To a "residence employee" if the "bodily injury":
property of others caused by an "insured".
a. Occurs off the "insured location"; and
2. We will not pay for "property damage":
b. Does not arise out of or in the course of the
a. To the extent of any amount recoverable
"residence employee's" employment by an
under Section I;
"insured";
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HO 00 04 05 11
b. Caused intentionally by an "insured" who is
3. Regardless of the number of assessments, the
13 years of age or older;
limit of $1,000 is the most we will pay for loss
arising out of:
c. To property owned by an "insured";
a. One accident, including continuous or
d. To property owned by or rented to a tenant
repeated exposure to substantially the
of an "insured" or a resident in your
same general harmful condition; or
household; or
b. A covered act of a director, officer or
e. Arising out of:
trustee. An act involving more than one
(1) A "business" engaged in by an
director, officer or trustee is considered to
"insured";
be a single act.
(2) Any act or omission in connection with a
4. We do not cover assessments charged against
premises owned, rented or controlled by
you or a corporation or association of property
an "insured", other than the "insured
owners by any governmental body.
location"; or
SECTION II - CONDITIONS
(3) The
ownership,
maintenance,
A. Limit Of Liability
occupancy, operation, use, loading or
unloading of aircraft,
hovercraft,
Our total liability under Coverage E for all
watercraft or "motor vehicles".
damages resulting from any one "occurrence" will
not be more than the Coverage E Limit Of Liability
This Exclusion e.(3) does not apply to a
shown in the Declarations. This limit is the same
"motor vehicle" that:
regardless of the number of "insureds", claims
(a) Is designed for recreational use off
made or persons injured. All "bodily injury" and
public roads;
"property damage" resulting from any one accident
(b) Is not owned by an "insured"; and
or from continuous or repeated exposure to
substantially the same general harmful conditions
(c) At the time of the "occurrence", is not
shall be considered to be the result of one
required by law, or regulation issued
"occurrence".
by a government agency, to have
been registered for it to be used on
Our total liability under Coverage F for all medical
public roads or property.
expense payable for "bodily injury" to one person
as the result of one accident will not be more than
D. Loss Assessment
the Coverage F Limit Of Liability shown in the
1. We will pay up to $1,000 for your share of loss
Declarations.
assessment charged against you, as owner or
B. Severability Of Insurance
tenant of the "residence premises", during the
policy period by a corporation or association of
This insurance applies separately to each
property owners, when the assessment is
"insured". This condition will not increase our limit
made as a result of:
of liability for any one "occurrence".
a. "Bodily injury" or "property damage" not
C. Duties After "Occurrence"
excluded from coverage under Section II -
In case of an "occurrence", you or another
Exclusions; or
"insured" will perform the following duties that
b. Liability for an act of a director, officer or
apply. We have no duty to provide coverage under
trustee in the capacity as a director, officer
this policy if your failure to comply with the
or trustee, provided such person:
following duties is prejudicial to us. You will help
us by seeing that these duties are performed:
(1) Is elected by the members of a
corporation or association of property
1. Give written notice to us or our agent as soon
owners; and
as is practical, which sets forth:
(2) Serves without deriving any income
a. The identity of the policy and the "named
from the exercise of duties which are
insured" shown in the Declarations;
solely on behalf of a corporation or
b. Reasonably available information on the
association of property owners.
time, place and circumstances of the
2. Paragraph I. Policy Period under Section II -
"occurrence"; and
Conditions does not apply to this Loss
c. Names and addresses of any claimants and
Assessment Coverage.
witnesses;
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 17 of 19
2. Cooperate with us in the investigation,
G. Bankruptcy Of An "Insured"
settlement or defense of any claim or suit;
Bankruptcy or insolvency of an "insured" will not
3. Promptly forward to us every notice, demand,
relieve us of our obligations under this policy.
summons or other process relating to the
H. Other Insurance
"occurrence";
This insurance is excess over other valid and
4. At our request, help us:
collectible insurance except insurance written
a. To make settlement;
specifically to cover as excess over the limits of
liability that apply in this policy.
b. To enforce any right of contribution or
indemnity against any person or
I. Policy Period
organization who may be liable to an
This policy applies only to "bodily injury" or
"insured";
"property damage" which occurs during the policy
c. With the conduct of suits and attend
period.
hearings and trials; and
J. Concealment Or Fraud
d. To secure and give evidence and obtain the
We do not provide coverage to an "insured" who,
attendance of witnesses;
whether before or after a loss, has:
5. With respect to C. Damage To Property Of
1. Intentionally concealed or misrepresented any
Others under Section II
- Additional
material fact or circumstance;
Coverages, submit to us within 60 days after
2. Engaged in fraudulent conduct; or
the loss a sworn statement of loss and show
the damaged property, if in an "insured's"
3. Made false statements;
control;
relating to this insurance.
6. No "insured" shall, except at such "insured's"
SECTIONS I AND II - CONDITIONS
own cost, voluntarily make payment, assume
obligation or incur expense other than for first
A. Liberalization Clause
aid to others at the time of the "bodily injury".
If we make a change which broadens coverage
D. Duties Of An Injured Person - Coverage F -
under this edition of our policy without additional
Medical Payments To Others
premium charge, that change will automatically
apply to your insurance as of the date we
1. The injured person or someone acting for the
implement the change in your state, provided that
injured person will:
this implementation date falls within 60 days prior
a. Give us written proof of claim, under oath if
to or during the policy period stated in the
required, as soon as is practical; and
Declarations.
b. Authorize us to obtain copies of medical
This Liberalization Clause does not apply to
reports and records.
changes implemented with a general program
revision that includes both broadenings and
2. The injured person will submit to a physical
restrictions in coverage, whether that general
exam by a doctor of our choice when and as
program revision is implemented through
often as we reasonably require.
introduction of:
E. Payment Of Claim - Coverage F - Medical
1. A subsequent edition of this policy; or
Payments To Others
2. An amendatory endorsement.
Payment under this coverage is not an admission
of liability by an "insured" or us.
B. Waiver Or Change Of Policy Provisions
F. Suit Against Us
A waiver or change of a provision of this policy
must be in writing by us to be valid. Our request
1. No action can be brought against us unless
for an appraisal or examination will not waive any
there has been full compliance with all of the
of our rights.
terms under this Section II.
C. Cancellation
2. No one will have the right to join us as a party
to any action against an "insured".
1. You may cancel this policy at any time by
returning it to us or by letting us know in writing
3. Also, no action with respect to Coverage E can
of the date cancellation is to take effect.
be brought against us until the obligation of
such "insured" has been determined by final
judgment or agreement signed by us.
Page 18 of 19
© Insurance Services Office, Inc., 2010
HO 00 04 05 11
2.
We may cancel this policy only for the reasons
D. Nonrenewal
stated below by letting you know in writing of
We may elect not to renew this policy. We may do
the date cancellation takes effect. This
so by delivering to you, or mailing to you at your
cancellation notice may be delivered to you, or
mailing address shown in the Declarations, written
mailed to you at your mailing address shown in
notice at least 30 days before the expiration date
the Declarations. Proof of mailing will be
of this policy. Proof of mailing will be sufficient
sufficient proof of notice.
proof of notice.
a. When you have not paid the premium, we
E. Assignment
may cancel at any time by letting you know
Assignment of this policy will not be valid unless
at least
10 days before the date
we give our written consent.
cancellation takes effect.
F. Subrogation
b. When this policy has been in effect for less
than 60 days and is not a renewal with us,
An "insured" may waive in writing before a loss all
we may cancel for any reason by letting you
rights of recovery against any person. If not
know at least
10 days before the date
waived, we may require an assignment of rights of
cancellation takes effect.
recovery for a loss to the extent that payment is
made by us.
c. When this policy has been in effect for 60
days or more, or at any time if it is a
If an assignment is sought, an "insured" must sign
renewal with us, we may cancel:
and deliver all related papers and cooperate with
us.
(1) If
there has been a material
misrepresentation of fact which if known
Subrogation does not apply to Coverage F or
to us would have caused us not to issue
Paragraph C. Damage To Property Of Others
the policy; or
under Section II - Additional Coverages.
(2) If the risk has changed substantially
G. Death
since the policy was issued.
If any person named in the Declarations or the
This can be done by letting you know at
spouse, if a resident of the same household, dies,
least 30 days before the date cancellation
the following apply:
takes effect.
1. We insure the legal representative of the
d. When this policy is written for a period of
deceased but only with respect to the premises
more than one year, we may cancel for any
and property of the deceased covered under
reason at anniversary by letting you know
the policy at the time of death; and
at least
30 days before the date
2. "Insured" includes:
cancellation takes effect.
a. An "insured" who is a member of your
3.
When this policy is canceled, the premium for
household at the time of your death, but
the period from the date of cancellation to the
only while a resident of the "residence
expiration date will be refunded pro rata.
premises"; and
4.
If the return premium is not refunded with the
b. With respect to your property, the person
notice of cancellation or when this policy is
having proper temporary custody of the
returned to us, we will refund it within a
property until appointment and qualification
reasonable time after the date cancellation
of a legal representative.
takes effect.
HO 00 04 05 11
© Insurance Services Office, Inc., 2010
Page 19 of 19
PRIVATE FLOOD INSURANCE
GUARANTEE
1. This policy meets all of the provisions required by the Title II - Flood Insurance Act
known as the National Flood Insurance Program.
2. PRIVATE FLOOD INSURANCE DEFINED - For the purposes of this Insurance, the
term Private Flood Insurance means an insurance policy that :-
a) Is issued by an insurance company that is -
(i)
licenced, admitted, or otherwise approved to engage in the business of
insurance in the State or jurisdiction where the property to be insured is
located, or
(ii)
recognized as a surplus lines insurer by the insurance regulator of the State
or jurisdiction where the property to be insured is located.
b) Provides flood insurance coverage which is at least as broad as the coverage
provided under a standard flood insurance policy under the National Flood
Insurance Program, including when considering deductibles, exclusions
and conditions offered by the insurer.
c) Includes:
(i)
A requirement for the insurer to give 45 days written notice of cancellation
or non-renewal of flood insurance coverage to:
i.
the Insured; and
ii.
the regulated lending institution of Federal agency lender.
(ii)
Information about the availability of flood insurance coverage under the
National Flood Insurance Program.
(iii)
A mortgage interest clause similar to the clause contained in a standard
flood insurance policy under the National Flood Insurance Program;
and
(iv) A provision requiring an insured to file suit not later than one year after
date of written denial of all or part of a claim under the policy; and
d) Contains cancellation provisions that are as restrictive as the provisions contained
in a standard flood insurance policy under the National Flood Insurance
Program.
All other terms and conditions remain unaltered.
DWELLING PROPERTY FLOOD INSURANCE POLICY
PLEASE READ THIS POLICY CAREFULLY. THE FLOOD INSURANCE PROVIDED IS
SUBJECT TO LIMITATIONS, RESTRICTIONS AND EXCLUSIONS.
THIS POLICY COVERS ONLY:
1.
A NON-CONDOMINIUM RESIDENTIAL BUILDING DESIGNED FOR PRINCIPAL
USE AS A DWELLING PLACE FOR ONE TO FOUR FAMILIES, OR
2.
A SINGLE-FAMILY DWELLING UNIT IN A CONDOMINIUM BUILDING.
I.
AGREEMENT
We insure you against direct physical loss by or from flood, occurring during the
Policy Term, to your insured property if you:-
1.
Have paid the correct premium
2.
Comply with all the terms and conditions of this policy; and
3.
Have furnished accurate information and statements.
We have the right to review the information you give us at any time and to revise your
policy based on our review.
II.
DEFINITIONS
In this policy, “you” and “your” refer to the named insured(s) shown in the
Declarations Page of this policy and your spouse if a resident of the same household.
“Insured(s)” includes: Any mortgagee and loss payee named in the Declarations
Page, as well as any other mortgagee or loss payee determined to exist at the time of
the loss in the order of precedence. “We”, “us”, and “our” refer to the insurer.
The following are other key definitions that we use in this policy.
1.
Actual Cash Value. The cost to replace an insured item of property at the
time of loss, less the value of its physical depreciation.
2.
Base Flood. A flood having a one percent chance of being equaled or
exceeded in any given year.
3.
Basement. Any area of the building, including any sunken room or sunken
portion of a room, having its floor below ground level (subgrade) on all sides.
4.
Building.
(a)
A structure with two or more outside rigid walls and a fully secured
roof, that is affixed to a permanent site;
(b)
A manufactured home (a “manufactured home,” also known as a
mobile home, is a structure: built on a permanent chassis, transported
Page 1 of 25
to its site in one or more sections, and affixed to a permanent
foundation); or
(c)
A travel trailer without wheels built on a chassis and affixed to a
permanent foundation, that is regulated under the community’s
floodplain management and building ordinances or laws.
Building does not mean a gas or liquid storage tank or a recreational vehicle,
park trailer, or other similar vehicle, except as described in II.4.c above.
5.
Cancellation. The ending of the insurance coverage provided by this policy
before the expiration date.
6.
Condominium. That form of ownership of real property in which each unit
owner has an undivided interest in common elements.
7.
Condominium Association. The entity made up of the unit owners
responsible for the maintenance and operation of:-
(a)
Common elements owned in undivided shares by unit owners; and
(b)
Other real property in which the unit owners have use rights;
where membership in the entity is a required condition of unit ownership.
8.
Declarations Page. A summary of information that describes, among others,
the term of the policy, limits of coverage and premium.
9.
Described Location. The location where the insured building or personal
property are found. The described location is shown on the Declarations
Page.
10.
Direct physical loss by or from flood. Loss or damage to insured property,
directly caused by a flood. There must be evidence of physical changes to the
property.
11.
Dwelling. A building designed for use as a residence for no more than four
families or a single-family unit in a building under a condominium form of
ownership.
12.
Elevated Building. A building that has no basement and that has its lowest
elevated floor raised above ground level by foundation walls, shear walls,
posts, piers, pilings, or columns.
13.
Flood. Flood as used in this flood insurance policy, means:
1. A general and temporary condition of partial or complete inundation of
two or more acres of normally dry land area or of two or more properties
(at least one of which is your property) from:
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(a) Overflow of inland or tidal waters;
(b) Unusual an rapid accumulation or runoff of surface waters from any
source;
(c)
Mudflow.
2. Collapse or subsidence of land along the shore of a lake or similar body of
water as a result of erosion or undermining caused by waves or currents of
water exceeding anticipated cyclical levels that result in a flood as defined
in 13.1.(a) above.
14.
Improvements. Fixtures, alterations, installations, or additions comprising a
part of the insured dwelling or the apartment in which you reside.
15.
Loss Occurrence. The words Loss Occurrence shall mean all losses,
wherever occurring, which arise between the time of movement of water into,
onto, or over the property insured hereunder and the receding of the same,
regardless of the period of time so embraced; EXCEPT, no Loss Occurrence
shall be deemed to commence earlier than the date and time of the happening
of the first recorded individual loss to the Insured in that occurrence during the
Policy Term, nor to extend to beyond thirty days after the expiry of this
policy.
16.
Mudflow. A river of liquid and flowing mud on the surfaces of normally dry
land areas, as when earth is carried by a current of water. Other earth
movements, such as landslide, slope failure, or a saturated soil mass moving
by liquidity down a slope, are not mudflows.
17.
National Flood Insurance Program (NFIP). The program of flood insurance
coverage and floodplain management.
18.
Policy. The entire written contract between you and us. It includes:-
(a)
This printed form;
(b)
The Declarations Page;
(c)
Any endorsement(s) that may be issued.
19.
Pollutants. Substances that include, but are not limited to, any solid, liquid,
gaseous, or thermal irritant or contaminant, including smoke, vapour, soot,
fumes, acids, alkalis, chemicals, and waste. “Waste” includes, but is not
limited to, materials to be recycled, reconditioned, or reclaimed.
20.
Post-FIRM Building. A building for which construction or substantial
improvement occurred after December 31, 1974, or on or after the effective
date of an initial Flood Insurance Rate Map (FIRM), whichever is later.
21.
Special Flood Hazard Area. An area having special flood, or mudflow,
and/or flood-related erosion hazards, and shown on a Flood Hazard Boundary
Page 3 of 25
Map or Flood Insurance Rate Map shown as Zone A, AO, A1-A30, AE, A99,
AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE, or V.
22.
Unit. A single-family unit you own in a condominium building.
III.
PROPERTY COVERED
A.
COVERAGE A - BUILDING PROPERTY
We insure against direct physical loss by or from flood to:-
1.
The dwelling at the described location or for a period of 45 days at another
location, as set forth in III.C.2.b., Property Removed to Safety.
2.
Additions and extensions attached to and in contact with the dwelling by
means of a rigid exterior wall, a solid load-bearing interior wall, a stairway, an
elevated walkway, or a roof. At your option, additions and extensions
connected by any of these methods may be separately insured. Additions and
extensions attached to and in contact with the building by means of a common
interior wall that is not a solid load-bearing wall are always considered part of
the dwelling and cannot be separately insured.
3.
A detached garage at the described location. Coverage is limited to no more
than 10 percent of the limit of liability on the dwelling. Use of this insurance
is at your option but reduces the building limit of liability. We do not cover
any detached garage used or held for use for residential (i.e. dwelling),
business, or farming purposes.
4.
Materials and supplies to be used for construction, alteration, or repair of the
dwelling or a detached garage while the materials and supplies are stored in a
fully enclosed building at the described location or on an adjacent property.
5.
A building under construction, alteration, or repair at the described location.
a. If the structure is not yet walled or roofed as described in the definition for
building (see II.4.) then coverage applies:
(1)
Only while such work is in progress; or
(2)
If such work is halted, only for a period of up to 90 consecutive
days thereafter.
b. However coverage does not apply until the building is walled and roofed
if the lowest floor, including the basement floor, of a non-elevated
building or the lowest elevated floor of an elevated building is:
(1)
Below the base flood elevation in Zones AH, AE, A1-A30,
AR, AR/AE, AR/AH, AR/A1-A30, AR/A, AR/AO; or
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(2)
Below the base flood elevation, adjusted to include the effect
of wave action in Zones VE or V1-V30.
The lowest floor levels are based on the bottom of the lowest horizontal
structural member of the floor in Zones VE or V1-V30 and the top of the
floor in Zones AH, AE, A1-A30, AR, AR/AE, AR/AH, AR/A1-A30,
AR/A, AR/AO.
6.
A manufactured home or a travel trailer as described in the Definitions section
(see II.4.b and II.4.c).
If the manufactured home or travel trailer is in a special flood hazard area, it
must be anchored in the following manner at the time of the loss:
a.
By over-the-top or frame ties to ground anchors; or
b.
In accordance with the manufacturer’s specifications; or
c.
In compliance with the community’s floodplain management
requirements;
7.
The following items of property, which are covered under Coverage A only:-
a. Awnings and canopies;
b. Blinds;
c. Built-in dishwashers;
d. Built-in microwave ovens;
e. Carpet permanently installed over unfinished flooring;
f. Central air conditioners;
g. Elevator equipment;
h. Fire sprinkler systems;
i.
Walk-in freezers;
j.
Furnaces and radiators;
k. Garbage disposal units;
l.
Hot water heaters; including solar water heaters;
m. Light fixtures;
n. Outdoor antennas and aerials fastened to buildings;
o. Permanently installed cupboards, bookcases, cabinets; paneling and
wallpaper;
p. Plumbing fixtures;
q. Pumps and machinery for operating pumps;
r. Ranges, cooking stoves, and ovens;
s. Refrigerators; and
t.
Wall mirrors, permanently installed;
8.
The following items of property in a building enclosure at the described
location below the lowest elevated floor of an elevated post-FIRM building
located in Zones, A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-
A30, V1-V30 or VE, or in a basement regardless of the zone. Coverage is
limited to the following:-
Page 5 of 25
a.
Any of the following items, if installed in their functioning locations and,
if necessary for operation, connected to a power source:
(1) Central air conditioners;
(2) Cisterns and the water in them;
(3) Drywall for walls and ceilings in a basement and the cost of labor
to nail it, unfinished and unfloated and not taped, to the framing;
(4) Electrical junction and circuit breaker boxes;
(5) Electrical outlets and switches;
(6) Elevators, dumbwaiters, and related equipment, except for related
equipment installed below the base flood elevation after September
30, 1987;
(7) Fuel tanks and the fuel in them;
(8) Furnaces and hot water heaters;
(9) Heat pumps;
(10) Non-flammable insulation in a basement;
(11) Pumps and tanks used in solar energy systems;
(12) Stairways and staircases attached to the building, not separated
from it by elevated walkways;
(13) Sump pumps;
(14) Water softeners and the chemicals in them, water filters, and
faucets installed as an integral part of the plumbing system;
(15) Well water tanks and pumps;
(16) Required utility connections for any item in this list; and
(17) Footings, foundations, posts, pilings, piers, or other foundation
walls and anchorage systems required to support a building.
b.
We will also pay for the clean-up of a basement or enclosure from a
covered flood loss.
B.
COVERAGE B - PERSONAL PROPERTY
1.
If you have purchased personal property coverage, we insure against direct
physical loss by or from flood to personal property inside a building at the
described location, if
a. The property is owned solely by you, or your household family members;
and
b. At your option, the property is owned by guests or servants.
Personal property is also covered for a period of 45 days at another location,
as set forth in III.C.2.b., Property Removed to Safety.
Personal Property in a building that is not fully enclosed must be secured to
prevent flotation out of the building. If the personal property does float out
during a flood, it will be conclusively presumed that it was not reasonably
secured. In that case there is no coverage for such property.
Page 6 of 25
2.
Coverage for personal property includes the following property, subject to
paragraph B.1 above, which is covered under Coverage B only:
a.
Air conditioning units portable or window types;
b.
Carpet, not permanently installed, over unfinished flooring;
c.
Carpets over finished flooring;
d.
Clothes washers and dryers;
e.
“Cook-Out” grills;
f.
Food freezers, other than walk-in, and food in any freezer; and
g.
Portable microwave ovens and portable dishwashers.
3.
Coverage for items of property in a building enclosure below the lowest
elevated floor of an elevated post-FIRM building located in Zones A1-A30,
AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30 or VE or in a
basement, regardless of the zone, is limited to the following items, if installed
in their functioning locations and, if necessary for operation, connected to a
power source:
a.
Air conditioning units, portable or window type;
b.
Clothes washers and dryers; and
c.
Food freezers, other than walk-in, and food in any freezer;
4.
If you are a tenant and have insured personal property under Coverage B in
this policy, we will cover such property, including your cooking stove or
range and refrigerator. This policy will also cover improvements made or
acquired solely at your expense in the dwelling or apartment in which you
reside, but for not more than 10 percent of the limit of liability shown for
personal property on the Declarations Page.
5.
If you are the owner of a unit and have insured personal property under
Coverage B in this policy, we will also cover your interior walls, floor, and
ceiling (not otherwise covered under a flood insurance policy purchased by
your condominium association) for not more than 10 percent of the limit of
liability shown for personal property on the Declarations Page. Use of this
insurance is at your option but reduces the personal property limit of liability.
6.
Special Limits: We will pay no more than USD2,500 for any one loss to one
or more of the following kinds of personal property:
a.
Artwork, photographs, collectibles, or memorabilia, including but not
limited to, porcelain or other figures, and sports cards;
b.
Rare books or autographed items;
c.
Jewelry, watches, precious and semiprecious stones, or articles of gold,
silver, or platinum;
d.
Furs or any article containing fur which represents its principal value.
Page 7 of 25
e.
Personal property used in any business.
7.
We will pay only for the functional value of antiques.
C.
COVERAGE C - OTHER COVERAGES
1.
Debris Removal
a.
We will pay the expense to remove non-owned debris on or in insured
property and owned debris anywhere.
b.
If you or a member of your household perform the removal work, the
value of your work will be based on the Federal minimum wage.
c.
This coverage does not increase the Coverage A or Coverage B limit of
liability.
2.
Loss Avoidance Measures
a.
Sandbags, Supplies and Labor
(1)
We will pay up to USD1,000 for costs you incur to protect the
insured building from a flood or imminent danger of flood, for the
following:
(a) Your reasonable expenses to buy:
(i)
Sandbags, including sand to fill them;
(ii)
Fill for temporary levees;
(iii)
Pumps, and
(iv)
Plastic sheeting and lumber used in connection with
these items.
(b) The value of work, at the Federal minimum wage, that you or
a member of your household perform.
(2)
This coverage for Sandbags, Supplies and Labor applies only if
damage to insured property by or from flood is imminent, and the
threat of flood damage is apparent enough to lead a person of
common prudence to anticipate flood damage. One of the following
must also occur:
(a) A general and temporary condition of flooding in the area
near the described location must occur, even if the flood
does not reach the insured building; or
(b) A legally authorized official must issue an evacuation order or
other civil order for the community in which the insured
building is located calling for measures to preserve life and
property from the peril of flood.
This coverage does not increase the Coverage A or Coverage B limit of
liability.
Page 8 of 25
b.
Property Removed to Safety
a. We will pay up to USD1,000 for the reasonable expenses you incur to
move insured property to a place other than the described location
that contains property in order to protect it from flood or the imminent
danger of flood.
Reasonable expenses include the value of work, at the Federal
minimum wage, that you or a member of your household perform.
b. If you move insured property to a location other than the described
location that contains the property, in order to protect it from flood or
the imminent danger of flood, we will cover such property while at
that location for a period of 45 consecutive days from the date you
begin to move it there. The personal property that is moved must be
placed in a fully enclosed building or otherwise reasonably protected
from the elements.
Any property removed, including a movable home described in Definition
4 paragraph b. and c., must be placed above ground level or outside of the
special flood hazard area.
This coverage does not increase the Coverage A or Coverage B limit of
liability.
3.
Condominium Loss Assessments
a.
If this policy insures a unit, we will pay up to the Coverage A limit of
liability, your share of loss assessments charged against you by the
condominium association in accordance with the condominium
association’s articles of association, declarations and your deed.
The assessment must be made as a result of direct physical loss by or
from flood during the policy term, to the building’s common elements.
b.
We will not pay any loss assessment charged against you:
(1) And the condominium association by any governmental body;
(2) That results from a deductible under the insurance purchased by the
condominium association insuring common elements;
(3) That results from a loss to personal property, including contents of a
condominium building;
(4) That results from a loss sustained by the condominium association
that was not reimbursed under a flood insurance policy written in the
name of the association because the building was not, at the time of
the loss, insured for an amount equal to 80 per cent or more of its full
replacement cost.
Loss assessment coverage does not increase the Coverage A limit of liability.
Page 9 of 25
D.
COVERAGE D - INCREASED COST OF COMPLIANCE
1.
General
This policy pays you to comply with a State or local floodplain management
law or ordinance affecting repair or reconstruction of the structure suffering
flood damage. Compliance activities eligible for payment are: elevation,
floodproofing, relocation, or demolition (or any combination of these
activities) of your structure. Eligible floodproofing activities are limited to:
(a)
Non-residential structures
(b)
Residential structures with basements that satisfy FEMA’s standards
published in the Code of Federal Regulations {44 CFR 60.6 (b) or (c)}.
2.
Limit of Liability
We will pay you up to USD30,000 under this Coverage D - Increased Cost of
Compliance, which only applies to policies with building coverage
(Coverage A). Our payment of claims under Coverage D is in addition to the
amount of coverage which appears on the Declarations Page.
We do not charge a separate deductible for a claim under Coverage D.
3.
Eligibility
a.
A structure covered under Coverage A - Building Property sustaining
a loss caused by a flood as defined by this policy, must:
(1)
Be a “repetitive loss structure”. A “repetitive loss structure” is
one that meets the following conditions:
(a) The structure has suffered flood damage on two occasions
during a 10-year period which ends on the date of the
second loss.
(b) The cost to repair the flood damage, on average, equaled or
exceeded 25 percent of the market value of the structure at
the time of each flood loss.
(c) In addition, the State or community must have a
cumulative, substantial damage provision or repetitive loss
provision in its floodplain management law or ordinance
being enforced against the structure; or
(2)
Be a structure that has flood damage in which the cost to repair
equals or exceeds 50 percent of the market value of the
structure at the time of the flood. The State or community must
have a substantial damage provision in its floodplain
management law or ordinance being enforced against the
structure.
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b.
This Coverage D pays you to comply with State or local floodplain
management laws or ordinances that meet the minimum standards of
the National Flood Insurance Program found in the Code of Federal
Regulations at 44 CFR 60.3. We pay for compliance activities that
exceed those standards under these conditions:
(1)
3.a.(1) above.
(2)
Elevation or floodproofing in any risk zone to preliminary or
advisory base flood elevations provided by FEMA which the
State or local government has adopted and is enforcing for
flood-damaged structures in such areas. (This includes
compliance activities in B, C, X or D zones which are being
changed to zones with base flood elevations. This also includes
compliance activities in zones where base flood elevations are
being increased, and a flood-damaged structure must comply
with the higher advisory base flood elevation). Increased Cost
of Compliance coverage does not apply to situations in B, C, X
or D zones where the community has derived its own elevations
and is enforcing elevation for floodproofing requirements for
flood-damaged structures to elevations derived solely by the
community.
(3)
Elevation of floodproofing above the base flood elevation to
meet State or local “freeboard” requirements. i.e., that a
structure must be elevated above the base flood elevation.
c.
This coverage will also pay for the incremental cost, after demolition
or relocation, of elevating or floodproofing a structure during its
rebuilding at the same or another site to meet State or local floodplain
management laws or ordinances subject to Exclusion D.5.g below.
d.
This coverage will also pay to bring a flood-damaged structure into
compliance with State or local floodplain management laws or
ordinances even if the structure had received a variance before the
present loss from the applicable floodplain management requirements.
4.
Conditions
a.
When a structure covered under Coverage A- Building Property
sustains a loss caused by a flood, our payment for the loss under this
Coverage D will be for the increased cost to elevate, floodproof,
relocate, or demolish (or any combination of these activities) caused by
the enforcement of current State or local floodplain management
ordinances or laws. Our payment for eligible demolition activities will
be for the cost to demolish and clear the site of the building debris or a
portion thereof caused by the enforcement of current State or local
floodplain management ordinances or laws. Eligible activities for the
cost of clearing the site will include those necessary to discontinue
utility service to the site and ensure proper abandonment of on-site
Page 11 of 25
utilities.
b.
When the building is repaired or rebuilt, it must be intended for the
same occupancy as the present building unless otherwise required by
current floodplain management ordinances or laws.
5.
Exclusions
Under this Coverage D - Increased Cost of Compliance we will not pay for:-
a.
The cost to comply with any floodplain management law or ordinance
in communities participating in the Emergency Program.
b.
The cost associated with enforcement of any ordinance or law that
requires any insured or others to test for, monitor, clean-up, remove,
contain, treat, detoxify, or neutralize, or in any way respond to, or
assess the effects of pollutants.
c.
The loss in value to any insured building or other structure due to the
requirements of any ordinance or law.
d.
The loss in residual value of the undamaged portion of a building
demolished as a consequence of enforcement of any State or local
floodplain management law or ordinance.
e.
Any Increased Cost of Compliance under this Coverage D:
(1)
Until the building is elevated, floodproofed, demolished, or
relocated on the same or to another premises; and
(2)
Unless the building is elevated, floodproofed, demolished, or
relocated as soon as reasonable possible after the loss, not to
exceed 2 years.
f.
Any code upgrade requirements, e.g., plumbing or electrical wiring,
not specifically related to the State or local floodplain management law
or ordinance.
g.
Any compliance activities needed to bring additions or improvements
made after the loss occurred into compliance with State or local
floodplain management laws or ordinances.
h.
Loss due to any ordinance or law that you were required to comply
with before the current loss.
i.
Any rebuilding activity to standards that do not meet the NFIP’s
minimum requirements. This includes any situation where the insured
has received from the State or community a variance in connection
with the current flood loss to rebuild the property to an elevation below
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the base flood elevation.
j.
Increased Cost of Compliance for a garage or carport.
k.
Any structure insured under an NFIP Group Flood Insurance Policy.
l.
Assessments made by a condominium association on individual
condominium unit owners to pay increased costs of repairing
commonly owned buildings after a flood in compliance with State or
local floodplain management ordinances or laws.
6.
Other Provisions
a.
Increased Cost of Compliance coverage will not be included in the
calculation to determine whether coverage meets the coinsurance
requirement for replacement cost coverage as set forth in VI - Values
Declared and Incorrect Declaration Penalty provisions.
b.
All other conditions and provisions of the policy apply.
IV.
PROPERTY NOT COVERED
We do not cover any of the following property:
1.
Personal property not inside the fully enclosed building;
2.
A building and personal property in it, located entirely in, on or over water or
seaward of mean high tide if it was constructed or substantially improved after
September 30, 1982;
3.
Open structures, including a building used as a boathouse or any structure or
building into which boats are floated, and personal property located in, on, or
over water;
4.
Recreational vehicles other than travel trailers described in II.4.c., whether
affixed to a permanent foundation or on wheels;
5.
Self-propelled vehicles or machines, including their parts and equipment.
However, we do cover self-propelled vehicles or machines not licensed for use
on public roads that are:
a.
Used mainly to service the described location; or
b.
Designed and used to assist handicapped persons;
while the vehicles or machines are inside a building at the described location;
6.
Land, land values, lawns, trees, shrubs, plants, growing crops, or animals;
7.
Accounts, bills, coins, currency, deeds, evidences of debt, medals, money, scrip,
stored value cards, postage stamps, securities, bullion, manuscripts, or other
valuable papers;
8.
Underground structures and equipment, including wells, septic tanks, and septic
systems;
Page 13 of 25
9.
Those portions of walks, walkways, decks, driveways, patios, and other
surfaces, all whether protected by a roof or not, located outside the perimeter,
exterior walls of the insured building or the building in which the insured unit
is located;
10.
Containers, including related equipment, such as, but not limited to, tanks
containing gases or liquids;
11.
Buildings or units and all their contents if more than 49 percent of the actual
cash value of the building or unit is below ground, unless the lowest level is at
or above the base flood elevation and is below ground by reason of earth having
been used as insulation material in conjunction with energy efficient building
techniques;
12.
Fences, retaining walls, seawalls, bulkheads, wharves, piers, bridges and docks;
13.
Aircraft or watercraft, or their furnishings and equipment;
14.
Hot tubs and spas that are not bathroom fixtures, and swimming pools, and their
equipment such as, but not limited to, heaters, filters, pumps, and pipes,
wherever located;
15.
Property not eligible for flood insurance pursuant to the provisions of the
Coastal Barrier Resources Act and the Coastal Barrier Improvement Act and
amendments to these Acts.
16.
Personal property you own in common with other unit owners, comprising the
membership of a condominium association.
V.
EXCLUSIONS
A. We only provide coverage for direct physical loss by or from flood, which
means we do not pay you for:
1.
Loss of revenue or profits;
2.
Loss of access to the insured property or described location;
3.
Loss of use of the insured property or described location;
4.
Loss from interruption of business or production;
5.
Any additional living expenses incurred while the insured building is
being repaired or is unable to be occupied for any reason;
6.
The cost of complying with any ordinance or law requiring or regulating
the construction, demolition, remodeling, renovation, or repair of property,
including removal of any resulting debris. This exclusion does not apply to
any eligible activities that we describe in Coverage D - Increased Cost of
Compliance; or
7.
Any other economic loss.
B. We do not insure a loss directly or indirectly caused by a flood that is already in
progress at the time and date:
1.
The policy term begins; or
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2.
Coverage is added at your request.
C.
We do not insure for loss to property caused directly by earth movement even
if the earth movement is caused by flood. Some examples of earth movement
that we do not cover are:
1.
Earthquake;
2.
Landslide;
3.
Land subsidence;
4.
Sinkholes;
5.
Destabilization or movement of land that results from accumulation of
water in subsurface land areas; or
6.
Gradual erosion.
We do, however, pay for losses from mudflow and land subsidence as a result
of erosion that are specifically covered under our definition of flood (see
II.13.).
D.
We do not insure for direct physical loss caused directly or indirectly by any of
the following:
1.
The pressure or weight of ice;
2.
Freezing or thawing;
3.
Rain, snow, sleet, hail, or water spray;
4.
Water, moisture, mildew, or mold damage that results primarily from any
condition:
a.
Substantially confined to the insured dwelling; or
b.
That is within your control, including, but not limited to:
(1) Design, structural, or mechanical defects;
(2) Failure, stoppage, or breakage of water or sewer lines, drains,
pumps, fixtures, or equipment; or
(3) Failure to inspect and maintain the property after a flood
recedes;
5.
Water or waterborne material that:
a.
Backs up through sewers or drains;
b.
Discharges or overflows from a sump, sump pump, or related
equipment; or
c.
Seeps or leaks on or through the covered property;
unless there is a flood in the area and the flood is the proximate cause of
the sewer or drain backup, sump pump discharge or overflow, or seepage
of water;
Page 15 of 25
6.
The pressure or weight of water unless there is a flood in the area and the
flood is the proximate cause of the damage from the pressure or weight
of water;
7.
Power, heating, or cooling failure unless the failure results from direct
physical loss by or from flood to power, heating, or cooling equipment
situated on the described location;
8.
Theft, fire, explosion, wind, or windstorm;
9.
Anything you or any member of your household do or conspire to do to
cause loss by flood deliberately; or
10. Alteration of the insured property that significantly increases the risk of
flooding.
E. We do not insure for loss to any building or personal property located on land
leased from the Federal Government, arising from or incident to the flooding
of the land by the Federal Government, where the lease expressly holds the
Federal Government harmless under flood insurance issued under any Federal
Government program.
F. We do not pay for the testing or monitoring of pollutants unless required by
law or ordinance.
VI.
VALUES DECLARED AND INCORRECT DECLARATION
PENALTY
The premium for this policy has been based on a statement of total insured values
declared to and agreed by us at the inception of this policy.
If at the time of loss, the declared total insured values are less than eighty (80%)
percent of the actual values, computed in accordance with the loss settlement
provisions of this policy, then any recovery otherwise due hereunder shall be reduced
in the same proportion that the declared total insured values bear to the values that
should have been declared, and you shall co-insure for the balance.
VII. DEDUCTIBLES
When a loss is covered under this policy, we will pay only that part of the loss that
exceeds your deductible amount, subject to the limit of liability that applies. The
deductible amount is shown on the Declarations Page.
VIII. GENERAL CONDITIONS
A.
Pairs and Sets
In case of direct physical loss to an article that is part of a pair or set, we will
have the option of paying you:
1. An amount equal to the cost of replacing the lost, damaged, or destroyed
article, minus its depreciation; or
Page 16 of 25
2. An amount that represents the fair proportion of the total value of the pair
or set that the lost, damaged, or destroyed article bears to the pair or set.
B.
Concealment or Fraud and Policy Voidance
1.
With respect to all insureds, under this policy, this policy:
a.
Is void;
b.
Has no legal force or effect;
c.
Cannot be renewed; and
d.
Cannot be replaced by any new coverage;
if, before or after a loss, you, or any other insured or your agent have at
any time:
(1) Intentionally concealed or misrepresented any material fact or
circumstance;
(2) Engaged in fraudulent conduct; or
(3) Made false statements
relating to this policy.
2.
This policy will be void as of the date the wrongful acts described in B.1.
above were committed.
3.
Fines, civil penalties, and imprisonment under applicable Federal laws
may also apply to the acts of fraud or concealment described above.
4.
This policy is also void for reasons other than fraud, misrepresentation,
or wrongful act. This policy is void from its inception and has no legal
force if the property situated at the described location is not eligible for
coverage.
C.
Other Insurance
If other valid and collectible insurance is available to you covering a loss also
covered by this policy, other than insurance that is specifically stated to be in
excess of this policy, the insurance afforded by this policy shall be in excess of
and shall not contribute with such other insurance. Nothing herein shall be
construed to make this policy subject to the terms, conditions and limitations of
other insurance nor to reduce any deductible applicable to this policy.
D.
Amendments, Waivers
This policy cannot be changed nor can any of its provisions be waived without
our express written consent. No action that we take under the terms of this
policy constitutes a waiver of any of our rights.
E.
Cancellation
Notwithstanding anything contained in this policy to the contrary you may
cancel this policy at any time by written notice or by surrendering this policy.
This policy may also be cancelled by us or on our behalf by delivering to you or
Page 17 of 25
by mailing to you, by registered, certified or other first class mail, at the your
address as shown in this policy, written notice stating when, not less than 30
(thirty) days thereafter, the cancellation shall be effective. The mailing of notice
as aforesaid shall be sufficient proof of notice and this policy shall terminate at
the date and hour specified in such notice.
If this policy shall be cancelled by you we shall retain the customary short rate
proportion of the premium hereon, except that if this policy is on an adjustable
basis we shall receive the earned premium hereon or the customary short rate
proportion of any minimum premium stipulated herein whichever is the greater.
If this policy shall be cancelled by us or on our behalf we shall retain the pro
rata proportion of the premium hereon, except that if this policy is on an
adjustable basis we shall receive the earned premium hereon or the pro rata
proportion of any minimum premium stipulated herein whichever is the greater.
Payment or tender of any unearned premium by us shall not be a condition
precedent to the effectiveness of Cancellation but such payment shall be made
as soon as practicable.
If the period of limitation relating to the giving of notice is prohibited or made
void by any law controlling the construction thereof, such period shall be
deemed to be amended so as to be equal to the minimum period of limitation
permitted by such law.
F.
Conditions Suspending or Restricting Coverage
We are not liable for loss that occurs while there is a hazard that is increased
by any means within your control or knowledge.
G.
Requirements In Case of Loss
In case of a flood loss to the insured property, you must:
1.
Give prompt written notice to us;
2.
As soon as reasonably possible, separate the damaged and undamaged
property, putting it in the best possible order so that we may examine it;
3.
Prepare an inventory of damaged property showing the quality,
description, actual cash value, and amount of loss. Attach all bills,
receipts, and related documents;
4.
Within 60 days after the loss, send us a proof of loss, which is your
statement of the amount you are claiming under the policy, signed and
sworn to by you, and which furnishes us with the following information:
a.
The date and time of the loss;
b.
A brief explanation of how the loss happened;
c.
Your interest (for example, “owner”) in the property damaged and
the interests, if any, of others in the damaged property;
d.
Details of any other insurance that may cover the loss;
Page 18 of 25
e.
Changes in title or occupancy of the covered property during the
term of the policy;
f.
Specifications of damaged insured buildings and detailed repair
estimates;
g.
Names of mortgagees or anyone else having a lien, charge, or claim
against the insured property;
h.
Details about who occupied the covered building at the time of loss
and for what purpose; and
i.
The inventory of damaged personal property described in G.3
above.
5.
In completing the proof of loss, you must use your own judgement
concerning the amount of loss and justify that amount.
6.
You must cooperate with the adjuster or representative in the investigation
of the claim.
7.
The insurance adjuster whom we hire to investigate your claim may
furnish you with a proof of loss form, and she or he may help you
complete it. However, this is a matter of courtesy only, and you must still
send us a proof of loss within 60 days after the loss even if the adjuster
does not furnish the form or help you complete it.
8.
We have not authorized the adjuster to approve or disapprove claims or to
tell you whether we will approve your claim.
9.
At our option, we may accept the adjuster’s report of the loss instead of
your proof of loss. The adjuster’s report will include information about
your loss and the damages you sustained. You must sign the adjuster’s
report. At our option, we may require you to swear to the report.
H.
Our Options After a Loss
Options we may, in our sole discretion, exercise after loss include the following:
1.
At such reasonable times and places that we may designate, you must:
a.
Show us or our representative the damaged property;
b.
Submit to examination under oath, while not in the presence of
another insured, and sign the same; and
c.
Permit us to examine and make extracts and copies of:
(1) Any policies of property insurance insuring you against loss
and the deed establishing your ownership of the insured real
property;
(2) Condominium association documents including the
Declarations of the condominium, its Articles of Association
or Incorporation, Bylaws, rules and regulations and other
relevant documents if you are a unit owner in a
condominium building; and
Page 19 of 25
(3) All books of accounts, bills, invoices and other vouchers, or
certified copies pertaining to the damaged property if the
originals are lost.
2.
We may request, in writing, that you furnish us with a complete
inventory of the lost, damaged, or destroyed property, including:
a.
Quantities and costs;
b.
Actual cash values or replacement cost (whichever is appropriate);
c.
Amounts of loss claimed;
d.
Any written plans and specifications for repair of the damaged
property that you can reasonably make available to us; and
e.
Evidence that prior flood damage has been repaired.
3.
If we give you written notice within 30 days after we receive your
signed, sworn proof of loss, we may:
a.
Repair, rebuild, or replace any part of the lost, damaged, or
destroyed property with material or property of like kind and
quality or its functional equivalent; and
b.
Take all or any part of the damaged property at the value we agree
upon or its appraised value.
I.
No Benefit To Bailee
No person or organization, other than you, having custody of covered property
will benefit from this insurance.
J.
Loss Payment
1.
We will adjust all losses with you. We will pay you unless some other
person or entity is named in the policy or is legally entitled to receive
payment. Loss will be payable 60 days after we receive your proof of
loss (or within 90 days after the insurance adjuster files an adjuster’s
report signed and sworn to by you in lieu of a proof of loss) and:
a.
We reach an agreement with you;
b.
There is an entry of a final judgment; or
c.
There is a filing of an appraisal award with us, as provided in
VIII.M.
2.
If we reject your proof of loss in whole or in part, you may:
a.
Accept our denial of your claim;
b.
Exercise your rights under this policy; or
c.
File an amended proof of loss, as long as it is filed within 60 days
of the date of the loss.
Page 20 of 25
K.
Abandonment
You may not abandon to us damaged or undamaged property insured under
this policy.
L.
Salvage
We may permit you to keep damaged insured property after a loss, and we will
reduce the amount of the loss proceeds payable to you under this policy by the
value of the salvage.
M.
Appraisal
If you and we fail to agree on the actual cash value or, if applicable,
replacement cost of your damaged property to settle upon the amount of loss,
then either may demand an appraisal of the loss. In this event, you and we will
each choose a competent and impartial appraiser within 20 days after receiving
a written request from the other. The two appraisers will choose an umpire. If
they cannot agree upon an umpire within 15 days, you or we may request that
the choice be made by a judge or a court of record in the State where the
covered property is located. The appraisers will separately state the actual
cash value, the replacement cost, and the amount of loss to each item. If the
appraisers submit a written report of an agreement to us, the amount agreed
upon will be the amount of the loss. If they fail to agree, they will submit their
differences to the umpire. A decision agreed to by any two will set the amount
of actual cash value and loss, or if it applies, the replacement cost and loss.
Each party will:
1.
Pay its own appraiser; and
2.
Bear the other expenses of the appraisal and umpire equally.
N.
Mortgage Clause
The word “mortgagee” includes trustee.
Any loss payable under Coverage A - Building property will be paid to any
mortgagee of whom we have actual notice as well as any other mortgagee or
loss payee determined to exist at the time of the loss, and you, as interests
appear. If more than one mortgagee is named, the order of payment will be the
same as the order of precedence of the mortgages.
If we deny your claim, that denial will not apply to a valid claim of the
mortgagee, if the mortgagee:
1. Notifies us of any change in the ownership or occupancy, or substantial
change in risk of which the mortgagee is aware;
2. Pays any premium due under this policy on demand if you have neglected to
pay the premium; and
3. Submits a signed, sworn proof of loss within 60 days after receiving notice
from us of your failure to do so.
All the other terms of this policy apply to the mortgagee.
Page 21 of 25
The mortgagee has the right to receive loss payment even if the mortgagee has
started foreclosure or similar action on the building.
If we decide to cancel or not renew this policy, it will continue in effect for the
benefit of the mortgagee only for 30 days after we notify the mortgagee of the
cancellation or non-renewal.
If we pay the mortgagee for any loss and deny payment to you, we are
subrogated to all the rights of the mortgagee granted under the mortgage on the
property. Subrogation will not impair the right of the mortgagee to recover the
full amount of the mortgagee’s claim.
O.
Suit Against Us
You may not sue us to recover money under this policy unless you have
complied with all the conditions and requirements of the policy. If you do sue,
you must start the suit within one year of the date of the written denial of all or
part of the claim.
P.
Subrogation
Whenever we make a payment for a loss under this Policy, we are subrogated to
your right to recover for that loss from any other person. That means that your
right to recover for a loss that was partly or totally caused by someone else is
automatically transferred to us, to the extent that we have paid you for the loss.
We may require you to acknowledge this transfer in writing. After the loss, you
may not give up our right to recover this money or do anything that would
prevent us from recovering it. If you make any claim against any person who
caused your loss and recover any money, you must pay us back first, before you
may keep any of that money.
Q.
Continuous Lake Flooding
If your insured building has been flooded by rising lake waters continuously
for 90 days or more and it appears reasonably certain that a continuation of this
flooding will result in a covered loss to the insured building equal to or greater
than the building policy limits plus the deductible, or the maximum payable
under the policy for any one building loss, we will pay you the lesser of these
two amounts without waiting for the further damage to occur if you sign a
release agreeing:
a.
To make no further claim under this policy;
b.
Not to seek renewal of this policy; and
c.
Not to seek a premium refund for current or prior terms.
If the policy term ends before the insured building has been flooded
continuously for 90 days, the provisions of this paragraph will apply when the
insured building suffers a covered loss before the policy term ends.
Page 22 of 25
R.
Loss Settlement
1.
Introduction
This policy provides three methods of settling losses: Replacement Cost,
Special Loss Settlement, and Actual Cash Value. Each method is used
for a different type of property as explained below.
a. Replacement Cost loss settlement, described in VIII.2. below, applies
to single-family dwelling provided:
(1)
It is your principal residence, which means that, at the time of
loss, you or your spouse lived there for at least 80 percent of:
(a)
The 365 days immediately preceding the loss; or
(b)
The period of your ownership, if you owned the
dwelling for less than 365 days; and
(2)
At the time of the loss, the amount of insurance in this policy
that applies to the dwelling is 80 per cent or more of its full
replacement cost immediately before the loss.
b. Special loss settlement, described in VIII.3 below applies to a
single-family dwelling that is a manufactured or mobile home or a
travel trailer.
c. Actual Cash Value loss settlement applies to a single-family
dwelling not subject to replacement cost or special loss settlement,
and to the property listed in VIII.4 below.
2.
Replacement Cost Loss Settlement
The following loss settlement conditions apply to a single-family dwelling
described in VIII R.a.(1) above:
a. We will pay to repair or replace the damaged dwelling after
application of the deductible and without deduction for depreciation,
but not more than the least of the following amounts:
(1)
The building limit of liability shown on your Declarations
Page;
(2)
The replacement cost of that part of the dwelling damaged,
with materials of like kind and quality, and for like use; or
(3)
The necessary amount actually spent to repair or replace the
damaged part of the dwelling for like use.
b. If the dwelling is rebuilt at a new location, the cost described above
is limited to the cost that would have been incurred if the dwelling
had been rebuilt at its former location.
c. When the full cost of repair or replacement is more than USD1,000
or more than 5 percent of the whole amount of insurance that applies
to the dwelling, we will not be liable for any loss under VIII.2.a.
above or VIII.4.a.(2) below unless and until actual repair or
replacement is completed.
Page 23 of 25
d. You may disregard the replacement cost conditions above and make
claim under this policy for loss to dwellings on an actual cash value
basis. You may then make a claim for any additional liability
according to VIII.2.a., b. and c above, provided you notify us of your
intent to do so within 180 days after the date of the loss.
3.
Special Loss Settlement
a. The following loss settlement conditions apply to a single-family
dwelling that:-
(1)
Is a manufactured or mobile home or a travel trailer, as defined
in II..4.b and c; and
(2)
At least 16 feet wide when fully assembled and has an area of
at least 600 square feet within its perimeter walls when fully
assembled, and
(3)
Is your principal residence, as specified in VIII.1.a.(1) above.
b. If such a dwelling is totally destroyed or damaged to such an extent that,
in our judgement, it is not economically feasible to repair, at least to its
pre-damage condition, we will, at our discretion, pay the least of the
following amounts:
(1)
The lesser of the replacement cost of the dwelling or 1.5 times
the actual cash value; or
(2)
The building limit of liability shown on your Declarations
Page.
c. If such a dwelling is partially damaged and, in our judgement, it is
economically feasible to repair to its pre-damage condition, we will
settle the loss accordingly to the replacement cost conditions in VIII.2
above.
4.
Actual Cash Value Loss Settlement
The types of property noted below are subject to actual cash value loss
settlement.
a. A two-, three-, or four-family dwelling.
b. A unit that is not used exclusively for single-family dwelling
purposes.
c. Detached garages.
d. Personal property.
e. Appliances, carpets, and carpet pads.
f. Outdoor awnings, outdoor antennas or aerials of any type, and other
outdoor equipment.
g. Any property covered under this policy that is abandoned after a loss
and remains debris anywhere on the described location.
h. A dwelling that is not your principal residence.
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VIIII. LIBERALIZATION
If we make a change that broadens your coverage under this policy, but does not
require any additional premium, then that change will automatically apply to your
insurance as of the date we implement the change, provided that this implementation
date falls within 60 days before, or during, the policy term stated in the Declarations
Page.
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