Property and Casualty Continuing Education Course ... · Property and Casualty Continuing Education Course Supplemental Material 4th Edition Dwelling Coverage. At press time, this

Property and Casualty Continuing Education Course

Supplemental Material

4th Edition

Dwelling Coverage

At press time, this edition contains the most complete and accurate information currently available. Please contact the publisher to verify that you have the most current edition.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Includes copyrighted material of Insurance Services Office/ISO Properties with its permission. Copyright, Insurance Services Office, Inc./ISO Properties, Inc. 2002

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DWellINg COVeRAge SUPPleMeNTAl MATeRIAl, 4TH eDITION © 2007 DF Institute, Inc. All rights reserved.

The text of this publication, or any part thereof, may not be reproduced in any manner whatsoever without written permission from the publisher.

Published by DF Institute, Inc.

Printed in the United States of America.

ISBN: 1-4277-6708-4

PPN: 5322-0801

07 08 10 9 8 7 6 5 4 3 2 1J F M A M J J A S O N D

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DWELLINGDP 00 01 12 02

DP 00 01 12 02 © ISO Properties, Inc., 2002 Page 1 of 8

DWELLING PROPERTY 1 � BASIC FORMAGREEMENTWe will provide the insurance described in this policyin return for the premium and compliance with allapplicable provisions of this policy.DEFINITIONSIn this policy, "you" and "your" refer to the "namedinsured" shown in the Declarations and the spouse if aresident of the same household. "We," "us" and "our"refer to the Company providing this insurance.DEDUCTIBLEUnless otherwise noted in this policy, the followingdeductible provision applies:Subject to the policy limits that apply, we will pay onlythat part of the total of all loss payable that exceedsthe deductible amount shown in the Declarations.COVERAGESThis insurance applies to the Described Location,Coverages for which a Limit of Liability is shown andPerils Insured Against for which a Premium is stated.A. Coverage A � Dwelling

1. We cover:a. The dwelling on the Described Location

shown in the Declarations, used principallyfor dwelling purposes, including structuresattached to the dwelling;

b. Materials and supplies located on or next tothe Described Location used to construct,alter or repair the dwelling or other struc-tures on the Described Location; and

c. If not otherwise covered in this policy,building equipment and outdoor equipmentused for the service of and located on theDescribed Location.

2. We do not cover land, including land on whichthe dwelling is located.

B. Coverage B � Other Structures1. We cover other structures on the Described

Location, set apart from the dwelling by clearspace. This includes structures connected tothe dwelling by only a fence, utility line or simi-lar connection.

2. We do not cover:a. Land, including land on which the other

structures are located;b. Other structures rented or held for rental to

any person not a tenant of the dwelling, un-less used solely as a private garage;

c. Other structures used in whole or in part forcommercial, manufacturing or farming pur-poses. However, we do cover a structurethat contains commercial, manufacturing orfarming property solely owned by you or atenant of the dwelling provided that suchproperty does not include gaseous or liquidfuel, other than fuel in a permanently in-stalled fuel tank of a vehicle or craft parkedor stored in the structure; or

d. Gravemarkers, including mausoleums.C. Coverage C � Personal Property

1. Covered PropertyWe cover personal property, usual to the occu-pancy as a dwelling and owned or used by youor members of your family residing with youwhile it is on the Described Location. After aloss and at your request, we will cover personalproperty owned by a guest or servant while theproperty is on the Described Location.

2. Property Not CoveredWe do not cover:a. Accounts, bank notes, bills, bullion, coins,

currency, deeds, evidences of debt, goldother than goldware, letters of credit, manu-scripts, medals, money, notes other thanbank notes, passports, personal records,platinum other than platinumware, securi-ties, silver other than silverware, tickets,stamps, scrip, stored value cards and smartcards;

b. Animals, birds or fish;c. Aircraft meaning any contrivance used or

designed for flight including any partswhether or not attached to the aircraft.We do cover model or hobby aircraft notused or designed to carry people or cargo;

d. Hovercraft and parts. Hovercraft means aself-propelled motorized ground effect vehi-cle and includes, but is not limited to, flare-craft and air cushion vehicles;

e. Motor vehicles or all other motorized landconveyances.

(1) This includes:(a) Their accessories, equipment and

parts; or

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(b) Any device or instrument for thetransmitting, recording, receiving orreproduction of sound or pictureswhich is operated by power from theelectrical system of motor vehiclesand all other motorized land convey-ances, and its accessories. Accesso-ries include antennas, tapes, wires,records, discs or other media thatcan be used with any device or in-strument described above.

The exclusion of property described inParagraphs (a) and (b) above appliesonly while such property is in or upon thevehicle or conveyance.

(2) We do cover motor vehicles or othermotorized land conveyances not re-quired to be registered for use on publicroads or property which are:

(a) Used solely to service the DescribedLocation; or

(b) Designed to assist the handicapped;f. Watercraft of all types, other than rowboats

and canoes;g. Data, including data stored in:

(1) Books of account, drawings or otherpaper records; or

(2) Computers and related equipment;We do cover the cost of blank recording orstorage media, and of prerecorded com-puter programs available on the retail mar-ket;

h. Credit cards, electronic fund transfer cardsor access devices used solely for deposit,withdrawal or transfer of funds; or

i. Water or steam; orj. Gravemarkers, including mausoleums.

3. Property Removed To A Newly AcquiredPrinciple ResidenceIf you remove personal property from the De-scribed Location to a newly acquired principalresidence, the Coverage C limit of liability willapply at each residence for the 30 days imme-diately after you begin to move the propertythere. This time period will not extend beyondthe termination of this policy. Our liability is lim-ited to the proportion of the limit of liability thatthe value at each residence bears to the totalvalue of all personal property covered by thispolicy.

D. Coverage D � Fair Rental Value1. If a loss to property described in Coverage A, B

or C by a Peril Insured Against under this policymakes that part of the Described Locationrented to others or held for rental by you unfitfor its normal use, we cover the fair rental valueof that part of the Described Location rented toothers or held for rental by you less any ex-penses that do not continue while that part ofthe Described Location rented or held for rentalis not fit to live in.Payment will be for the shortest time requiredto repair or replace that part of the DescribedLocation rented or held for rental.

2. If a civil authority prohibits you from use of theDescribed Location as a result of direct dam-age to a neighboring location by a Peril InsuredAgainst in this policy, we cover the Fair RentalValue loss for no more than two weeks.

3. The periods of time referenced above are notlimited by the expiration of this policy.

4. We do not cover loss or expense due to can-cellation of a lease or agreement.

E. Other Coverages1. Other Structures

You may use up to 10% of the Coverage A limitof liability for loss by a Peril Insured Against toother structures described in Coverage B.Payment under this coverage reduces the Cov-erage A limit of liability by the amount paid forthe same loss.

2. Debris RemovalWe will pay your reasonable expense for theremoval of:a. Debris of covered property if a Peril Insured

Against causes the loss; orb. Ash, dust or particles from a volcanic erup-

tion that has caused direct loss to a buildingor property contained in a building.

This expense is included in the limit of liabilitythat applies to the damaged property.

3. Improvements, Alterations And AdditionsIf you are a tenant of the Described Location,you may use up to 10% of the Coverage C limitof liability for loss by a Peril Insured Against toimprovements, alterations and additions, madeor acquired at your expense, to that part of theDescribed Location used only by you.Payment under this coverage reduces the Cov-erage C limit of liability by the amount paid forthe same loss.

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4. World-Wide CoverageYou may use up to 10% of the Coverage C limitof liability for loss by a Peril Insured Against toproperty covered under Coverage C while any-where in the world. This coverage does not ap-ply to property of guests or servants or to row-boats or canoes.Payment under this coverage reduces the Cov-erage C limit of liability by the amount paid forthe same loss.

5. Rental ValueYou may use up to 20% of the Coverage A limitof liability for loss of fair rental value as de-scribed in Coverage D. We will pay only 1/12 ofthis 20% for each month the rented part of theDescribed Location is unfit for its normal use.Payment under this coverage reduces the Cov-erage A limit of liability by the amount paid forthe same loss.

6. Reasonable Repairsa. In the event that covered property is dam-

aged by a Peril Insured Against, we will paythe reasonable cost incurred by you fornecessary measures taken solely to protectagainst further damage.

b. If the measures taken involve repair to otherdamaged property, we will pay for thosemeasures only if that property is coveredunder this policy and the damage to thatproperty is caused by a Peril InsuredAgainst. This coverage does not:

(1) Increase the limit of liability that appliesto the covered property; or

(2) Relieve you of your duties, in case of aloss to covered property, as set forth inCondition D.2.

7. Property RemovedWe insure covered property against direct lossfrom any cause while being removed from apremises endangered by a Peril InsuredAgainst and for no more than 5 days while re-moved.This coverage does not change the limit of li-ability that applies to the property being re-moved.

8. Fire Department Service ChargeWe will pay up to $500 for your liability as-sumed by contract or agreement for fire de-partment charges incurred when the fire de-partment is called to save or protect coveredproperty from a Peril Insured Against. We donot cover fire department service charges if theproperty is located within the limits of the city,municipality or protection district furnishing thefire department response.This coverage is additional insurance. No de-ductible applies to this coverage.

PERILS INSURED AGAINSTWe insure for direct physical loss to the property cov-ered caused by a peril listed below unless the loss isexcluded in the General Exclusions.1A. Fire Or Lightning1B. Internal Explosion

a. Internal Explosion means explosion occurringin the dwelling or other structure covered on theDescribed Location or in a structure containingpersonal property covered.

b. Explosion does not mean:(1) Electric arcing;(2) Breakage of water pipes; or(3) Breakage or operation of pressure relief

devices.This peril does not include loss by explosion ofsteam boilers, or steam pipes, if owned or leasedby you or operated under your control.

When a Premium for Extended Coverage is shownin the Declarations, Perils 2. through 8. are madepart of Perils Insured Against.2. Windstorm Or Hail

This peril does not include loss:a. To the inside of a building or the property con-

tained in a building caused by rain, snow, sleet,sand or dust unless the direct force of wind orhail damages the building causing an openingin a roof or wall and the rain, snow, sleet, sandor dust enters through this opening; or

b. To the following property when outside of thebuilding:

(1) Awnings, signs, radio or television antennasor aerials including lead-in wiring, masts ortowers; or

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(2) Canoes and rowboats.3. Explosion

This peril does not include loss by explosion ofsteam boilers or steam pipes, if owned or leasedby you or operated under your control.Explosion does not mean:a. Electric arcing;b. Breakage of water pipes; orc. Breakage or operation of pressure relief de-

vices.This peril replaces Peril 1B.

4. Riot Or Civil Commotion5. Aircraft

This peril includes self-propelled missiles andspacecraft.

6. VehiclesThis peril does not include loss caused by:a. A vehicle owned or operated by you or a resi-

dent of the Described Location; orb. Any vehicle to fences, driveways and walks.

7. SmokeThis peril means sudden and accidental damagefrom smoke, including the emission or puffback ofsmoke, soot, fumes or vapors from a boiler, fur-nace or related equipment.This peril does not include loss caused by smokefrom fireplaces or from agricultural smudging orindustrial operations.

8. Volcanic EruptionThis peril does not include loss caused by earth-quake, land shock waves or tremors.

When a Premium for Vandalism Or Malicious Mis-chief is shown in the Declarations, the following ismade part of Perils Insured Against.9. Vandalism Or Malicious Mischief

This peril does not include loss:a. To glass or safety glazing material constituting

a part of the building other than glass buildingblocks;

b. By pilferage, theft, burglary or larceny, but wewill be liable for damage to the building coveredcaused by burglars; or

b. To property on the Described Location, and anyensuing loss caused by any intentional andwrongful act committed in the course of thevandalism or malicious mischief, if the dwellinghas been vacant for more than 60 consecutivedays immediately before the loss. A dwellingbeing constructed is not considered vacant.

GENERAL EXCLUSIONSA. We do not insure for loss caused directly or indi-

rectly by any of the following. Such loss is ex-cluded regardless of any other cause or eventcontributing concurrently or in any sequence to theloss. These exclusions apply whether or not theloss event results in widespread damage or affectsa substantial area.1. Ordinance Or Law

Ordinance Or Law means any ordinance orlaw:a. Requiring or regulating the construction,

demolition, remodeling, renovation or repairof property, including removal of any result-ing debris.

b. The requirements of which result in a loss invalue to property; or

c. Requiring you or others to test for, monitor,clean up, remove, contain, treat, detoxify orneutralize, or in any way respond to, or as-sess the effects of, pollutants.Pollutants means any solid, liquid, gaseousor thermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes mate-rials to be recycled, reconditioned or re-claimed.

This Exclusion A.1. applies whether or not theproperty has been physically damaged.

2. Earth MovementEarth Movement means:a. Earthquake, including land shock waves or

tremors before, during or after a volcaniceruption;

b. Landslide, mudslide or mudflow;c. Subsidence or sinkhole; ord. Any other earth movement including earth

sinking, rising or shifting;caused by or resulting from human or animalforces or any act of nature unless direct loss byfire or explosion ensues and then we will payonly for the ensuing loss.

3. Water DamageWater Damage means:a. Flood, surface water, waves, tidal water,

overflow of a body of water or spray fromany of these, whether or not driven by wind;

b. Water or water-borne material which backsup through sewers or drains or which over-flows or is discharged from a sump, sumppump or related equipment; or

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c. Water or water-borne material below thesurface of the ground, including water whichexerts pressure on or seeps or leaksthrough a building, sidewalk, driveway,foundation, swimming pool or other struc-ture;

caused by or resulting from human or animalforces or any act of nature.Direct loss by fire or explosion resulting fromwater damage is covered.

4. Power FailurePower Failure means the failure of power orother utility service if the failure takes place offthe Described Location. But if the failure ofpower or other utility service results in a loss,from a Peril Insured Against on the DescribedLocation, we will pay for the loss caused by thatPeril Insured Against.

5. NeglectNeglect means your neglect to use all reason-able means to save and preserve property atand after the time of a loss.

6. WarWar includes the following and any conse-quence of any of the following:a. Undeclared war, civil war, insurrection,

rebellion or revolution;b. Warlike act by a military force or military

personnel;c. Destruction or seizure or use for a military

purpose.Discharge of a nuclear weapon will be deemeda warlike act even if accidental.

7. Nuclear HazardThis Exclusion 7. pertains to Nuclear Hazard tothe extent set forth in the Nuclear HazardClause of the Conditions.

8. Intentional LossIntentional Loss means any loss arising out ofany act you or any person or organizationnamed as an additional insured commits orconspires to commit with the intent to cause aloss.In the event of such loss, neither you nor anysuch person or organization is entitled to cov-erage, even those who did not commit or con-spire to commit the act causing the loss.

9. Governmental ActionGovernmental Action means the destruction,confiscation or seizure of property described inCoverage A, B or C by order of any govern-mental or public authority.

This exclusion does not apply to such acts or-dered by any governmental or public authoritythat are taken at the time of a fire to prevent itsspread, if the loss caused by fire would be cov-ered under this policy.

B. We do not cover loss to lawns, plants, shrubs ortrees outside of buildings.

CONDITIONSA. Policy Period

This policy applies only to loss which occurs duringthe policy period.

B. Insurable Interest And Limit Of LiabilityEven if more than one person has an insurableinterest in the property covered, we will not be li-able in any one loss:1. For an amount greater than the interest of a

person insured under this policy at the time ofloss; or

2. For more than the applicable limit of liability.C. Concealment Or Fraud

We provide coverage to no persons insured underthis policy if, whether before or after a loss, one ormore persons insured under this policy have:1. Intentionally concealed or misrepresented any

material fact or circumstance;2. Engaged in fraudulent conduct; or3. Made false statements;relating to this insurance.

D. Duties After LossIn case of a loss to covered property, we have noduty to provide coverage under this policy if thefailure to comply with the following duties is preju-dicial to us. These duties must be performed eitherby you or your representative:1. Give prompt notice to us or our agent;2. Protect the property from further damage. If

repairs to the property are required, you must:a. Make reasonable and necessary repairs to

protect the property; andb. Keep an accurate record of repair ex-

penses;3. Cooperate with us in the investigation of a

claim;4. Prepare an inventory of damaged personal

property showing the quantity, description, ac-tual cash value and amount of loss. Attach allbills, receipts and related documents that justifythe figures in the inventory;

5. As often as we reasonably require:a. Show the damaged property;

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b. Provide us with records and documents werequest and permit us to make copies; and

c. Submit to examination under oath, while notin the presence of another named insured,and sign the same;

6. Send to us, within 60 days after our request,your signed, sworn proof of loss which setsforth to the best of your knowledge and belief:a. The time and cause of loss;b. Your interest and that of all others in the

property involved and all liens on the prop-erty;

c. Other insurance which may cover the loss;d. Changes in title or occupancy of the prop-

erty during the term of the policy;e. Specifications of damaged buildings and

detailed repair estimates;f. The inventory of damaged personal prop-

erty described in Paragraph D.3.;g. Receipts for additional living expenses

incurred and records that support the fairrental value loss.

E. Loss SettlementCovered property losses are settled at actual cashvalue at the time of loss but not more than theamount required to repair or replace the damagedproperty.

F. Loss To A Pair Or SetIn case of loss to a pair or set we may elect to:1. Repair or replace any part to restore the pair or

set to its value before the loss; or2. Pay the difference between actual cash value

of the property before and after the loss.G. Glass Replacement

Loss for damage to glass caused by a Peril In-sured Against will be settled on the basis of re-placement with safety glazing materials when re-quired by ordinance or law.

H. AppraisalIf you and we fail to agree on the amount of loss,either may demand an appraisal of the loss. In thisevent, each party will choose a competent and im-partial appraiser within 20 days after receiving awritten request from the other. The two appraiserswill choose an umpire. If they cannot agree uponan umpire within 15 days, you or we may requestthat the choice be made by a judge of a court ofrecord in the state where the Described Location islocated. The appraisers will separately set theamount of loss. If the appraisers submit a writtenreport of an agreement to us, the amount agreedupon will be the amount of loss. If they fail toagree, they will submit their differences to the um-pire. A decision agreed to by any two will set theamount of loss.Each party will:1. Pay its own appraiser; and2. Bear the other expenses of the appraisal and

umpire equally.I. Other Insurance And Service Agreement

If property covered by this policy is also coveredby:1. Other fire insurance, we will pay only the pro-

portion of a loss caused by any peril insuredagainst under this policy that the limit of liabilityapplying under this policy bears to the totalamount of fire insurance covering the property;or

2. A service agreement, this insurance is excessover any amounts payable under any suchagreement. Service agreement means a serv-ice plan, property restoration plan, home war-ranty or other similar service warranty agree-ment, even if it is characterized as insurance.

J. SubrogationYou may waive in writing before a loss all rights ofrecovery against any person. If not waived, wemay require an assignment of rights of recovery fora loss to the extent that payment is made by us.If an assignment is sought, the person insuredmust sign and deliver all related papers and coop-erate with us.

K. Suit Against UsNo action can be brought against us unless therehas been full compliance with all of the terms un-der this policy and the action is started within twoyears after the date of loss.

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L. Our OptionIf we give you written notice within 30 days afterwe receive your signed, sworn proof of loss, wemay repair or replace any part of the damagedproperty with material or property of like kind andquality.

M. Loss PaymentWe will adjust all losses with you. We will pay youunless some other person is named in the policy oris legally entitled to receive payment. Loss will bepayable 60 days after we receive your proof of lossand:1. Reach an agreement with you;2. There is an entry of a final judgment; or3. There is a filing of an appraisal award with us.

N. Abandonment Of PropertyWe need not accept any property abandoned byyou.

O. Mortgage Clause1. If a mortgagee is named in this policy, any loss

payable under Coverage A or B will be paid tothe mortgagee and you, as interests appear. Ifmore than one mortgagee is named, the orderof payment will be the same as the order ofprecedence of the mortgages.

2. If we deny your claim, that denial will not applyto a valid claim of the mortgagee, if the mort-gagee:a. Notifies us of any change in ownership,

occupancy or substantial change in risk ofwhich the mortgagee is aware;

b. Pays any premium due under this policy ondemand if you have neglected to pay thepremium; and

c. Submits a signed, sworn statement of losswithin 60 days after receiving notice from usof your failure to do so. Policy conditionsrelating to Paragraphs G. Appraisal, J. SuitAgainst Us and L. Loss Payment also applyto the mortgagee.

3. If we decide to cancel or not to renew this pol-icy, the mortgagee will be notified at least 10days before the date cancellation or nonrene-wal takes effect.

4. If we pay the mortgagee for any loss and denypayment to you:a. We are subrogated to all the rights of the

mortgagee granted under the mortgage onthe property; or

b. At our option, we may pay to the mortgageethe whole principal on the mortgage plusany accrued interest. In this event, we willreceive a full assignment and transfer of themortgage and all securities held as collat-eral to the mortgage debt.

5. Subrogation will not impair the right of themortgagee to recover the full amount of themortgagee's claim.

P. No Benefit To BaileeWe will not recognize any assignment or grant anycoverage that benefits a person or organizationholding, storing or moving property for a fee re-gardless of any other provision of this policy.

Q. Cancellation1. You may cancel this policy at any time by re-

turning it to us or by letting us know in writing ofthe date cancellation is to take effect.

2. We may cancel this policy only for the reasonsstated below by letting you know in writing ofthe date cancellation takes effect. This cancel-lation notice may be delivered to you, or mailedto you at your mailing address shown in theDeclarations. Proof of mailing will be sufficientproof of notice.a. When you have not paid the premium, we

may cancel at any time by letting you knowat least 10 days before the date cancellationtakes effect.

b. When this policy has been in effect for lessthan 60 days and is not a renewal with us,we may cancel for any reason by letting youknow at least 10 days before the date can-cellation takes effect.

c. When this policy has been in effect for 60days or more, or at any time if it is a renewalwith us, we may cancel:

(1) If there has been a material misrepre-sentation of fact which if known to uswould have caused us not to issue thepolicy; or

(2) If the risk has changed substantiallysince the policy was issued.

This can be done by letting you know atleast 30 days before the date cancellationtakes effect.

d. When this policy is written for a period ofmore than one year, we may cancel for anyreason at anniversary by letting you know atleast 30 days before the date cancellationtakes effect.

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3. When this policy is canceled, the premium forthe period from the date of cancellation to theexpiration date will be refunded pro rata.

4. If the return premium is not refunded with thenotice of cancellation or when this policy is re-turned to us, we will refund it within a reason-able time after the date cancellation takes ef-fect.

R. NonrenewalWe may elect not to renew this policy. We may doso by delivering to you, or mailing to you at yourmailing address shown in the Declarations, writtennotice at least 30 days before the expiration dateof this policy. Proof of mailing will be sufficientproof of notice.

S. Liberalization ClauseIf we make a change which broadens coverageunder this edition of our policy without additionalpremium charge, that change will automaticallyapply to your insurance as of the date we imple-ment the change in your state, provided that thisimplementation date falls within 60 days prior to orduring the policy period stated in the Declarations.This Liberalization Clause does not apply tochanges implemented with a general program re-vision that includes both broadenings and restric-tions in coverage, whether that general programrevision is implemented through introduction of:1. A subsequent edition of this policy; or2. An amendatory endorsement.

T. Waiver Or Change Of Policy ProvisionsA waiver or change of a provision of this policymust be in writing by us to be valid. Our request foran appraisal or examination will not waive any ofour rights.

U. AssignmentAssignment of this policy will not be valid unlesswe give our written consent.

V. DeathIf you die, we insure:1. Your legal representatives but only with respect

to the property of the deceased covered underthe policy at the time of death;

2. With respect to your property, the person hav-ing proper temporary custody of the propertyuntil appointment and qualification of a legalrepresentative.

W. Nuclear Hazard Clause1. "Nuclear Hazard" means any nuclear reaction,

radiation or radioactive contamination, allwhether controlled or uncontrolled or howevercaused, or any consequence of any of these.

2. Loss caused by the nuclear hazard will not beconsidered loss caused by fire, explosion orsmoke, whether these perils are specificallynamed in or otherwise included within the PerilsInsured Against.

3. This policy does not apply to loss caused di-rectly or indirectly by nuclear hazard, exceptthat direct loss by fire resulting from the nuclearhazard is covered.

X. Recovered PropertyIf you or we recover any property for which wehave made payment under this policy, you or wewill notify the other of the recovery. At your option,the property will be returned to or retained by youor it will become our property. If the recoveredproperty is returned to or retained by you, the losspayment will be adjusted based on the amount youreceived for the recovered property.

Y. Volcanic Eruption PeriodOne or more volcanic eruptions that occur within a72-hour period will be considered as one volcaniceruption.

Z. Loss Payable ClauseIf the Declarations show a loss payee for certainlisted insured personal property, that person isconsidered an insured in this policy with respect tothat property.If we decide to cancel or not renew this policy, thatloss payee will be notified in writing.

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DWELLING PROPERTY 2 � BROAD FORMAGREEMENTWe will provide the insurance described in this policyin return for the premium and compliance with allapplicable provisions of this policy.DEFINITIONSIn this policy, "you" and "your" refer to the "namedinsured" shown in the Declarations and the spouse if aresident of the same household. "We," "us" and "our"refer to the Company providing this insurance.DEDUCTIBLEUnless otherwise noted in this policy, the followingdeductible provision applies:Subject to the policy limits that apply, we will pay onlythat part of the total of all loss payable that exceedsthe deductible amount shown in the Declarations.COVERAGESThis insurance applies to the Described Location,Coverages for which a Limit of Liability is shown andPerils Insured Against for which a Premium is stated.A. Coverage A � Dwelling





















parts; or

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The exclusion of property described in(a) and (b) above applies only whilesuch property is in or upon the vehicle orconveyance.







h. Credit cards, electronic fund transfer cardsor access devices used solely for deposit,withdrawal or transfer of funds;








E. Coverage E � Additional Living Expense1. If a loss to property described in Coverage A, B

or C by a Peril Insured Against under this policymakes the Described Location unfit for its nor-mal use, we cover any necessary increase inliving expenses incurred by you so that yourhousehold can maintain its normal standard ofliving.Payment will be for the shortest time requiredto repair or replace the Described Location or,if you permanently relocate, the shortest timerequired for your household to settle elsewhere.

2. If a civil authority prohibits you from use of theDescribed Location as a result of direct dam-age to a neighboring location by a Peril InsuredAgainst in this policy, we cover the AdditionalLiving Expense loss for no more than twoweeks.



F. Other Coverages1. Other Structures

You may use up to 10% of the Coverage A limitof liability for loss by a Peril Insured Against toother structures described in Coverage B.This coverage is additional insurance.

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3. Improvements, Alterations And AdditionsIf you are a tenant of the Described Location,you may use up to 10% of the Coverage C limitof liability for loss by a Peril Insured Against toimprovements, alterations and additions, madeor acquired at your expense, to that part of theDescribed Location used only by you.This coverage is additional insurance.

4. World-Wide CoverageYou may use up to 10% of the Coverage C limitof liability for loss by a Peril Insured Against toproperty covered under Coverage C exceptrowboats and canoes, while anywhere in theworld.Use of this coverage reduces the Coverage Climit of liability for the same loss.

5. Rental Value And Additional Living ExpenseYou may use up to 20% of the Coverage A limitof liability for loss of both fair rental value asdescribed in Coverage D and additional livingexpense as described in Coverage E.This coverage is additional insurance.






7. Property RemovedWe insure covered property against direct lossfrom any cause while being removed from apremises endangered by a Peril InsuredAgainst and for no more than 30 days whileremoved.This coverage does not change the limit of li-ability that applies to the property being re-moved.

8. Trees, Shrubs And Other PlantsWe cover trees, shrubs, plants or lawns, on theDescribed Location for loss caused by the fol-lowing Perils Insured Against:a. Fire or lightning;b. Explosion;c. Riot or civil commotion;d. Aircraft;e. Vehicles not owned or operated by you or a

resident of the Described Location; orf. Vandalism or malicious mischief, including

damage during a burglary or attempted bur-glary, but not theft of property.

The limit of liability for this coverage will not bemore than 5% of the Coverage A limit of liabil-ity, or more than $500 for any one tree, shrubor plant. We do not cover property grown forcommercial purposes.This coverage is additional insurance.


10. Collapsea. With respect to this Other Coverage:

(1) Collapse means an abrupt falling downor caving in of a building or any part of abuilding with the result that the buildingor part of the building cannot be occu-pied for its current intended purpose.

(2) A building or any part of a building that isin danger of falling down or caving in isnot considered to be in a state of col-lapse.

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(3) A part of a building that is standing is notconsidered to be in a state of collapseeven if it has separated from anotherpart of the building.

(4) A building or any part of a building that isstanding is not considered to be in astate of collapse even if it shows evi-dence of cracking, bulging, sagging,bending, leaning, settling, shrinkage orexpansion.

b. We insure for direct physical loss to cov-ered property involving collapse of a build-ing or any part of a building if the collapsewas caused by one or more of the following:

(1) The Perils Insured Against in this policy;(2) Decay that is hidden from view, unless

the presence of such decay is known toyou prior to collapse;

(3) Insect or vermin damage that is hiddenfrom view, unless the presence of suchdamage is known to you prior to col-lapse;

(4) Weight of contents, equipment, animalsor people;

(5) Weight of rain which collects on a roof;or

(6) Use of defective material or methods inconstruction, remodeling or renovation ifthe collapse occurs during the course ofthe construction, remodeling or renova-tion.

c. Loss to an awning, fence, patio, deck,pavement, swimming pool, undergroundpipe, flue, drain, cesspool, septic tank,foundation, retaining wall, bulkhead, pier,wharf or dock is not included under b.(2)through (6) above unless the loss is a directresult of the collapse of a building or anypart of a building.

d. This coverage does not increase the limit ofliability that applies to the damaged coveredproperty.

11. Glass Or Safety Glazing Materiala. We cover:

(1) The breakage of glass or safety glazingmaterial which is part of a coveredbuilding, storm door or storm window;

(2) The breakage of glass or safety glazingmaterial which is part of a coveredbuilding, storm door or storm windowwhen caused directly by earth move-ment; and

(3) The direct physical loss to coveredproperty caused solely by the pieces,fragments or splinters of broken glass orsafety glazing material which is part of abuilding, storm door or storm window.

b. This coverage does not include loss:(1) To covered property which results be-

cause the glass or safety glazing mate-rial has been broken, except as providedin a.(3) above; or

(2) On the Described Location if the dwell-ing has been vacant for more than 60consecutive days immediately before theloss, except when the breakage resultsdirectly from earth movement as pro-vided for in a.(2) above. A dwelling beingconstructed is not considered vacant.

c. This coverage does not increase the limit ofliability that applies to the damaged prop-erty.

12. Ordinance Or Lawa. The Ordinance Or Law limit of liability de-

termined in b. or c. below will apply with re-spect to the increased costs you incur dueto the enforcement of any ordinance or lawwhich requires or regulates:

(1) The construction, demolition, remodel-ing, renovation or repair of that part of acovered building or other structure dam-aged by a Peril Insured Against;

(2) The demolition and reconstruction of theundamaged part of a covered building orother structure, when that building orother structure must be totally demol-ished because of damage by a Peril In-sured Against to another part of thatcovered building or other structure; or

(3) The remodeling, removal or replacementof the portion of the undamaged part ofa covered building or other structurenecessary to complete the remodeling,repair or replacement of that part of thecovered building or other structure dam-aged by a Peril Insured Against.

b. If you are an owner of a Described Location,and that location:

(1) Is insured for Coverage A or Unit-Owners Building Items, you may use upto 10% of the limit of liability that appliesto Coverage A or Unit-Owners BuildingItems at each Described Location; or

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(2) Is not insured for Coverage A or Unit-Owners Building Items, you may use upto 10% of the total limit of liability thatapplies to Coverage B at each De-scribed Location.

c. If you are a tenant of a Described Location,you may use up to 10% of the limit of liabilitythat applies to Improvements, AlterationsAnd Additions at each Described Location.Also, the words "covered building" usedthroughout this Other Coverage 12. Ordi-nance Or Law, refer to property at such aDescribed Location covered under OtherCoverage 3. Improvements, Alterations AndAdditions.

d. You may use all or part of this ordinance orlaw coverage to pay for the increased costsyou incur to remove debris resulting fromthe construction, demolition, remodeling,renovation, repair or replacement of prop-erty as stated in a. above.

e. We do not cover:(1) The loss in value to any covered building

or other structure due to the require-ments of any ordinance or law; or

(2) The costs to comply with any ordinanceor law which requires you or others totest for, monitor, clean up, remove,contain, treat, detoxify or neutralize, or inany way respond to, or assess the ef-fects of, pollutants in or on any coveredbuilding or other structure.Pollutants means any solid, liquid, gase-ous or thermal irritant or contaminant,including smoke, vapor, soot, fumes,acids, alkalis, chemicals and waste.Waste includes materials to be recycled,reconditioned or reclaimed.

This coverage is additional insurance.PERILS INSURED AGAINSTWe insure for direct physical loss to the property cov-ered caused by a peril listed below unless the loss isexcluded in the General Exclusions.1. Fire Or Lightning2. Windstorm Or Hail

This peril does not include loss:a. To the inside of a building or the property con-

tained in a building caused by rain, snow, sleet,sand or dust unless the direct force of wind orhail damages the building causing an openingin a roof or wall and the rain, snow, sleet, sandor dust enters through this opening; or

b. To the following property when outside of thebuilding:

(1) Awnings, signs, radio or television antennasor aerials including lead-in wiring, masts ortowers;

(2) Canoes and rowboats; or(3) Trees, shrubs, plants or lawns.

3. Explosion4. Riot Or Civil Commotion5. Aircraft


6. VehiclesThis peril does not include loss to a fence, drive-way, or walk caused by a vehicle owned or oper-ated by you or a resident of the Described Loca-tion.

7. SmokeThis peril means sudden and accidental damagefrom smoke, including the emission or puffback ofsmoke, soot, fumes or vapors from a boiler, fur-nace or related equipment.This peril does not include loss caused by smokefrom agricultural smudging or industrial operations.

8. Vandalism Or Malicious MischiefThis peril does not include loss:a. By pilferage, theft, burglary or larceny; orb. To property on the Described Location, and any

ensuing loss caused by any intentional andwrongful act committed in the course of thevandalism or malicious mischief, if the dwellinghas been vacant for more than 60 consecutivedays immediately before the loss. A dwellingbeing constructed is not considered vacant.

9. Damage By BurglarsThis peril means damage to covered propertycaused by burglars.This peril does not include:a. Theft of property; orb. Damage caused by burglars to property on the

Described Location if the dwelling has been va-cant for more than 60 consecutive days imme-diately before the damage occurs. A dwellingbeing constructed is not considered vacant.

10.Falling ObjectsThis peril does not include loss:a. To the inside of a building or property contained

in the building unless the roof or an outside wallof the building is first damaged by a falling ob-ject.

SAMPLE


b. To outdoor radio and television antennas andaerials including their lead-in wiring, masts andtowers, outdoor equipment, awnings andfences.

Damage to the falling object itself is not covered.11.Weight Of Ice, Snow Or Sleet

This peril means weight of ice, snow or sleet whichcauses damage to a building or property containedin the building.This peril does not include loss to an awning,fence, patio, pavement, swimming pool, founda-tion, retaining wall, bulkhead, pier, wharf or dock.

12.Accidental Discharge Or Overflow Of Water OrSteama. This peril means accidental discharge or over-

flow of water or steam from within a plumbing,heating, air conditioning or automatic fire pro-tective sprinkler system or from within a house-hold appliance. We also pay to tear out and re-place any part of a building, or other structure,on the Described Location, but only when nec-essary to repair the system or appliance fromwhich the water or steam escaped. However,such tear out and replacement coverage onlyapplies to other structures if the water or steamcauses actual damage to a building on the De-scribed Location.

b. This peril does not include loss:(1) To a building caused by constant or re-

peated seepage or leakage over a period ofweeks, months or years;

(2) On the Described Location, if the dwellinghas been vacant for more than 60 consecu-tive days immediately before the loss. Adwelling being constructed is not consideredvacant;

(3) To the system or appliance from which thewater or steam escaped;

(4) Caused by or resulting from freezing exceptas provided in Peril Insured Against 14.Freezing below; or

(5) On the Described Location caused by acci-dental discharge or overflow which occursoff the Described Location.

c. In this peril, a plumbing system or householdappliance does not include a sump, sumppump or related equipment or a roof drain,gutter, downspout or similar fixtures or equip-ment.

d. General Exclusion 3. Water Damage, Para-graphs a. and c. that apply to surface waterand water below the surface of the ground donot apply to loss by water covered under thisperil.

13.Sudden And Accidental Tearing Apart,Cracking, Burning Or BulgingThis peril means sudden and accidental tearingapart, cracking, burning or bulging of a steam orhot water heating system, an air conditioning orautomatic fire protective sprinkler system, or anappliance for heating water.This peril does not include loss caused by or re-sulting from freezing except as provided in PerilsInsured Against 14. Freezing below.

14.Freezinga. This peril means freezing of a plumbing, heat-

ing, air conditioning or automatic fire protectivesprinkler system or of a household appliancebut only if you have used reasonable care to:

(1) Maintain heat in the building; or(2) Shut off the water supply and drain all sys-

tems and appliances of water.However, if the building is protected by anautomatic fire protective sprinkler system, youmust use reasonable care to continue the watersupply and maintain heat in the building forcoverage to apply.

b. In this peril, a plumbing system or householdappliance does not include a sump, sumppump or related equipment or a roof drain,gutter, downspout or similar fixtures or equip-ment.

15.Sudden And Accidental Damage FromArtificially Generated Electrical CurrentThis peril does not include loss to tubes, transis-tors, electronic components or circuitry that are apart of appliances, fixtures, computers, home en-tertainment units or other types of electronic appa-ratus.

16.Volcanic EruptionThis peril does not include loss caused by earth-quake, land shock waves or tremors.

GENERAL EXCLUSIONSWe do not insure for loss caused directly or indirectlyby any of the following. Such loss is excluded regard-less of any other cause or event contributing concur-rently or in any sequence to the loss. These exclu-sions apply whether or not the loss event results inwidespread damage or affects a substantial area.

SAMPLE


1. Ordinance Or LawOrdinance Or Law means any ordinance or law:a. Requiring or regulating the construction, demo-

lition, remodeling, renovation or repair of prop-erty, including removal of any resulting debris.This Exclusion 1.a. does not apply to theamount of coverage that may be provided un-der Other Coverage 12. Ordinance Or Law;


c. Requiring you or others to test for, monitor,clean up, remove, contain, treat, detoxify orneutralize, or in any way respond to, or assessthe effects of, pollutants.Pollutants means any solid, liquid, gaseous orthermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes materialsto be recycled, reconditioned or reclaimed.

This Exclusion 1. applies whether or not the prop-erty has been physically damaged.


tremors before, during or after a volcanic erup-tion;


sinking, rising or shifting;caused by or resulting from human or animalforces or any act of nature unless direct loss by fireor explosion ensues and then we will pay only forthe ensuing loss.

3. Water DamageWater Damage means:a. Flood, surface water, waves, tidal water, over-

flow of a body of water or spray from any ofthese, whether or not driven by wind;

b. Water or water-borne material which backs upthrough sewers or drains or which overflows oris discharged from a sump, sump pump or re-lated equipment; or

c. Water or water-borne material below the sur-face of the ground, including water which ex-erts pressure on or seeps or leaks through abuilding, sidewalk, driveway, foundation,swimming pool or other structure;

caused by or resulting from human or animalforces or any act of nature.Direct loss by fire or explosion resulting from waterdamage is covered.

4. Power FailurePower Failure means the failure of power or otherutility service if the failure takes place off the De-scribed Location. But if the failure of power orother utility service results in a loss, from a PerilInsured Against on the Described Location, we willpay for the loss caused by that Peril InsuredAgainst.

5. NeglectNeglect means your neglect to use all reasonablemeans to save and preserve property at and afterthe time of a loss.

6. WarWar includes the following and any consequenceof any of the following:a. Undeclared war, civil war, insurrection, rebel-

lion or revolution;b. Warlike act by a military force or military per-

sonnel;c. Destruction or seizure or use for a military

purpose.Discharge of a nuclear weapon will be deemed awarlike act even if accidental.

7. Nuclear HazardThis Exclusion 7. pertains to Nuclear Hazard to theextent set forth in the Nuclear Hazard Clause ofthe Conditions.

8. Intentional LossIntentional Loss means any loss arising out of anyact you or any person or organization named as anadditional insured commits or conspires to commitwith the intent to cause a loss.In the event of such loss, neither you nor any suchperson or organization is entitled to coverage,even those who did not commit or conspire tocommit the act causing the loss.

9. Governmental ActionGovernmental Action means the destruction, con-fiscation or seizure of property described in Cover-age A, B or C by order of any governmental orpublic authority.This exclusion does not apply to such acts orderedby any governmental or public authority that aretaken at the time of a fire to prevent its spread, ifthe loss caused by fire would be covered underthis policy.



SAMPLE




2. For more than the applicable limit of liability.C. Concealment Or Fraud

We provide coverage to no persons insured underthis policy if, whether before or after a loss, one ormore persons insured under this policy have:1. Intentionally concealed or misrepresented any








5. As often as we reasonably require:a. Show the damaged property;b. Provide us with records and documents we

request and permit us to make copies; andc. Submit to examination under oath, while not

in the presence of another named insured,and sign the same;

6. Send to us, within 60 days after our request,your signed, sworn proof of loss which setsforth to the best of your knowledge and belief:a. The time and cause of loss;

b. Your interest and that of all others in theproperty involved and all liens on the prop-erty;



detailed repair estimates;f. The inventory of damaged personal prop-

erty described in D.3.;g. Receipts for additional living expenses

incurred and records that support the fairrental value loss.

E. Loss SettlementIn this Condition E., the terms "cost to repair or re-place" and "replacement cost" do not include theincreased costs incurred to comply with the en-forcement of any ordinance or law except to theextent that coverage for these increased costs isprovided in Other Coverage F.12. Ordinance OrLaw. Covered property losses are settled as fol-lows:1. Property of the following types:

a. Personal property;b. Awnings, carpeting, household appliances,

outdoor antennas and outdoor equipment,whether or not attached to buildings; and

c. Structures that are not buildings;at actual cash value at the time of loss but notmore than the amount required to repair or re-place.

2. Buildings under Coverage A or B at replace-ment cost without deduction for depreciation,subject to the following:a. If, at the time of loss, the amount of insur-

ance in this policy on the damaged buildingis 80% or more of the full replacement costof the building immediately before the loss,we will pay the cost to repair or replace, af-ter application of any deductible and withoutdeduction for depreciation, but not morethan the least of the following amounts:

(1) The limit of liability under this policy thatapplies to the building;

(2) The replacement cost of that part of thebuilding damaged with material of likekind and quality and for like use; or

(3) The necessary amount actually spent torepair or replace the damaged building.

SAMPLE


If the building is rebuilt at a new premises,the cost described in (2) above is limited tothe cost which would have been incurred ifthe building had been built at the originalpremises.

b. If, at the time of loss, the amount of insur-ance in this policy on the damaged buildingis less than 80% of the full replacement costof the building immediately before the loss,we will pay the greater of the followingamounts, but not more than the limit of li-ability under this policy that applies to thebuilding:

(1) The actual cash value of that part of thebuilding damaged; or

(2) That proportion of the cost to repair orreplace, after application of deductibleand without deduction for depreciation,that part of the building damaged, whichthe total amount of insurance in thispolicy on the damaged building bears to80% of the replacement cost of thebuilding.

c. To determine the amount of insurancerequired to equal 80% of the full replace-ment cost of the building immediately beforethe loss, do not include the value of:

(1) Excavations, footings, foundations, piersor any other structures or devices thatsupport all or part of the building, whichare below the undersurface of the lowestbasement floor;

(2) Those supports in (1) above which arebelow the surface of the ground insidethe foundation walls, if there is nobasement; and

(3) Underground flues, pipes, wiring anddrains.

d. We will pay no more than the actual cashvalue of the damage until actual repair orreplacement is complete. Once actual re-pair or replacement is complete, we will set-tle the loss as noted in 2.a. and b. above.However, if the cost to repair or replace thedamage is both:

(1) Less than 5% of the amount of insur-ance in this policy on the building; and

(2) Less than $2,500;we will settle the loss as noted in 2.a. and b.above whether or not actual repair or re-placement is complete.

e. You may disregard the replacement costloss settlement provisions and make claimunder this policy for loss to buildings on anactual cash value basis. You may thenmake claim for any additional liability ac-cording to the provisions of this Condition E.Loss Settlement, provided you notify us ofyour intent to do so within 180 days after thedate of loss.



of the property before and after the loss.G. Appraisal

If you and we fail to agree on the amount of loss,either may demand an appraisal of the loss. In thisevent, each party will choose a competent and im-partial appraiser within 20 days after receiving awritten request from the other. The two appraiserswill choose an umpire. If they cannot agree uponan umpire within 15 days, you or we may requestthat the choice be made by a judge of a court ofrecord in the state where the Described Location islocated. The appraisers will separately set theamount of loss. If the appraisers submit a writtenreport of an agreement to us, the amount agreedupon will be the amount of loss. If they fail toagree, they will submit their differences to the um-pire. A decision agreed to by any two will set theamount of loss.Each party will:1. Pay its own appraiser; and2. Bear the other expenses of the appraisal and

umpire equally.H. Other Insurance And Service Agreement




SAMPLE


I. SubrogationYou may waive in writing before a loss all rights ofrecovery against any person. If not waived, wemay require an assignment of rights of recovery fora loss to the extent that payment is made by us.If an assignment is sought, the person insuredmust sign and deliver all related papers and coop-erate with us.

J. Suit Against UsNo action can be brought against us unless therehas been full compliance with all of the terms un-der this policy and the action is started within twoyears after the date of loss.

K. Our OptionIf we give you written notice within 30 days afterwe receive your signed, sworn proof of loss, wemay repair or replace any part of the damagedproperty with material or property of like kind andquality.

L. Loss PaymentWe will adjust all losses with you. We will pay youunless some other person is named in the policy oris legally entitled to receive payment. Loss will bepayable 60 days after we receive your proof of lossand:1. Reach an agreement with you;2. There is an entry of a final judgment; or3. There is a filing of an appraisal award with us.

M. Abandonment Of PropertyWe need not accept any property abandoned byyou.

N. Mortgage Clause1. If a mortgagee is named in this policy, any loss











O. No Benefit To BaileeWe will not recognize any assignment or grant anycoverage that benefits a person or organizationholding, storing or moving property for a fee re-gardless of any other provision of this policy.

P. Cancellation1. You may cancel this policy at any time by re-





SAMPLE









Q. NonrenewalWe may elect not to renew this policy. We may doso by delivering to you, or mailing to you at yourmailing address shown in the Declarations, writtennotice at least 30 days before the expiration dateof this policy. Proof of mailing will be sufficientproof of notice.

R. Liberalization ClauseIf we make a change which broadens coverageunder this edition of our policy without additionalpremium charge, that change will automaticallyapply to your insurance as of the date we imple-ment the change in your state, provided that thisimplementation date falls within 60 days prior to orduring the policy period stated in the Declarations.This Liberalization Clause does not apply tochanges implemented with a general program re-vision that includes both broadenings and restric-tions in coverage, whether that general programrevision is implemented through introduction of:1. A subsequent edition of this policy; or2. An amendatory endorsement.

S. Waiver Or Change Of Policy ProvisionsA waiver or change of a provision of this policymust be in writing by us to be valid. Our request foran appraisal or examination will not waive any ofour rights.

T. AssignmentAssignment of this policy will not be valid unlesswe give our written consent.

U. DeathIf you die, we insure:1. Your legal representatives but only with respect



V. Nuclear Hazard Clause1. "Nuclear Hazard" means any nuclear reaction,


2. Loss caused by the nuclear hazard will not beconsidered loss caused by fire, explosion, orsmoke, whether these perils are specificallynamed in or otherwise included within the PerilsInsured Against.


W. Recovered PropertyIf you or we recover any property for which wehave made payment under this policy, you or wewill notify the other of the recovery. At your option,the property will be returned to or retained by youor it will become our property. If the recoveredproperty is returned to or retained by you, the losspayment will be adjusted based on the amount youreceived for the recovered property.

X. Volcanic Eruption PeriodOne or more volcanic eruptions that occur within a72-hour period will be considered as one volcaniceruption.

Y. Loss Payable ClauseIf the Declarations show a loss payee for certainlisted insured personal property, that person isconsidered an insured in this policy with respect tothat property.If we decide to cancel or not renew this policy, thatloss payee will be notified in writing.

SAMPLE



DWELLING PROPERTY 3 � SPECIAL FORMAGREEMENTWe will provide the insurance described in this policyin return for the premium and compliance with allapplicable provisions of this policy.DEFINITIONSIn this policy, "you" and "your" refer to the "namedinsured" shown in the Declarations and the spouse if aresident of the same household. "We," "us" and "our"refer to the Company providing this insurance.DEDUCTIBLEUnless otherwise noted in this policy, the followingdeductible provision applies:Subject to the policy limits that apply, we will pay onlythat part of the total of all loss payable that exceedsthe deductible amount shown in the Declarations.COVERAGESThis insurance applies to the Described Location,Coverages for which a Limit of Liability is shown andPerils Insured Against for which a Premium is stated.A. Coverage A � Dwelling





















parts; or

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The exclusion of property described in(a) and (b) above applies only whilesuch property is in or upon the vehicle orconveyance.







h. Credit cards, electronic fund transfer cardsor access devices used solely for deposit,withdrawal or transfer of funds;








E. Coverage E � Additional Living Expense1. If a loss to property described in Coverage A, B

or C by a Peril Insured Against under this policymakes the Described Location unfit for its nor-mal use, we cover any necessary increase inliving expenses incurred by you so that yourhousehold can maintain its normal standard ofliving.Payment will be for the shortest time requiredto repair or replace the Described Location or,if you permanently relocate, the shortest timerequired for your household to settle elsewhere.

2. If a civil authority prohibits you from use of theDescribed Location as a result of direct dam-age to a neighboring location by a Peril InsuredAgainst in this policy, we cover the AdditionalLiving Expense loss for no more than twoweeks.



F. Other Coverages1. Other Structures

You may use up to 10% of the Coverage A limitof liability for loss by a Peril Insured Against toother structures described in Coverage B.This coverage is additional insurance.

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3. Improvements, Alterations And AdditionsIf you are a tenant of the Described Location,you may use up to 10% of the Coverage C limitof liability for loss by a Peril Insured Against toimprovements, alterations and additions, madeor acquired at your expense, to that part of theDescribed Location used only by you.This coverage is additional insurance.

4. World-Wide CoverageYou may use up to 10% of the Coverage C limitof liability for loss by a Peril Insured Against toproperty covered under Coverage C exceptrowboats and canoes, while anywhere in theworld.Use of this coverage reduces the Coverage Climit of liability for the same loss.

5. Rental Value And Additional Living ExpenseYou may use up to 20% of the Coverage A limitof liability for loss of both fair rental value asdescribed in Coverage D and additional livingexpense as described in Coverage E.This coverage is additional insurance.






7. Property RemovedWe insure covered property against direct lossfrom any cause while being removed from apremises endangered by a Peril InsuredAgainst and for no more than 30 days whileremoved.This coverage does not change the limit of li-ability that applies to the property being re-moved.

8. Trees, Shrubs And Other PlantsWe cover trees, shrubs, plants or lawns, on theDescribed Location for loss caused by the fol-lowing Perils Insured Against:a. Fire or lightning;b. Explosion;c. Riot or civil commotion;d. Aircraft;e. Vehicles not owned or operated by you or a

resident of the Described Location; orf. Vandalism or malicious mischief, including

damage during a burglary or attempted bur-glary, but not theft of property.

The limit of liability for this coverage will not bemore than 5% of the Coverage A limit of liabil-ity, or more than $500 for any one tree, shrubor plant. We do not cover property grown forcommercial purposes.This coverage is additional insurance.


10. Collapsea. With respect to this Other Coverage:

(1) Collapse means an abrupt falling downor caving in of a building or any part of abuilding with the result that the buildingor part of the building cannot be occu-pied for its current intended purpose.

(2) A building or any part of a building that isin danger of falling down or caving in isnot considered to be in a state of col-lapse.

SAMPLE


(3) A part of a building that is standing is notconsidered to be in a state of collapseeven if it has separated from anotherpart of the building.

(4) A building or any part of a building that isstanding is not considered to be in astate of collapse even if it shows evi-dence of cracking, bulging, sagging,bending, leaning, settling, shrinkage orexpansion.

b. We insure for direct physical loss to cov-ered property involving collapse of a build-ing or any part of a building if the collapsewas caused by one or more of the following:

(1) The Perils Insured Against named underCoverage C;

(2) Decay that is hidden from view, unlessthe presence of such decay is known toyou prior to collapse;

(3) Insect or vermin damage that is hiddenfrom view, unless the presence of suchdamage is known to you prior to col-lapse;

(4) Weight of contents, equipment, animalsor people;

(5) Weight of rain which collects on a roof;or

(6) Use of defective material or methods inconstruction, remodeling or renovation ifthe collapse occurs during the course ofthe construction, remodeling or renova-tion.

c. Loss to an awning, fence, patio, deck,pavement, swimming pool, undergroundpipe, flue, drain, cesspool, septic tank,foundation, retaining wall, bulkhead, pier,wharf or dock is not included under b.(2)through (6) above unless the loss is a directresult of the collapse of a building or anypart of a building.

d. This coverage does not increase the limit ofliability that applies to the damaged coveredproperty.

11. Glass Or Safety Glazing Materiala. We cover:

(1) The breakage of glass or safety glazingmaterial which is part of a coveredbuilding, storm door or storm window;

(2) The breakage of glass or safety glazingmaterial which is part of a coveredbuilding, storm door or storm windowwhen caused directly by earth move-ment; and

(3) The direct physical loss to coveredproperty caused solely by the pieces,fragments or splinters of broken glass orsafety glazing material which is part of abuilding, storm door or storm window.

b. This coverage does not include loss:(1) To covered property which results be-

cause the glass or safety glazing mate-rial has been broken, except as providedin a.(3) above; or

(2) On the Described Location if the dwell-ing has been vacant for more than 60consecutive days immediately before theloss, except when the breakage resultsdirectly from earth movement as pro-vided for in a.(2) above. A dwelling beingconstructed is not considered vacant.

c. This coverage does not increase the limit ofliability that applies to the damaged prop-erty.

12. Ordinance Or Lawa. The Ordinance Or Law limit of liability de-

termined in b. or c. below will apply with re-spect to the increased costs you incur dueto the enforcement of any ordinance or lawwhich requires or regulates:

(1) The construction, demolition, remodel-ing, renovation or repair of that part of acovered building or other structure dam-aged by a Peril Insured Against;

(2) The demolition and reconstruction of theundamaged part of a covered building orother structure, when that building orother structure must be totally demol-ished because of damage by a Peril In-sured Against to another part of thatcovered building or other structure; or

(3) The remodeling, removal or replacementof the portion of the undamaged part ofa covered building or other structurenecessary to complete the remodeling,repair or replacement of that part of thecovered building or other structure dam-aged by a Peril Insured Against.

b. If you are an owner of a Described Location,and that location:

(1) Is insured for Coverage A or Unit-Owners Building Items, you may use upto 10% of the limit of liability that appliesto Coverage A or Unit-Owners BuildingItems at each Described Location; or

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(2) Is not insured for Coverage A or Unit-Owners Building Items, you may use upto 10% of the total limit of liability thatapplies to Coverage B at each De-scribed Location.

c. If you are a tenant of a Described Location,you may use up to 10% of the limit of liabilitythat applies to Improvements, AlterationsAnd Additions at each Described Location.Also, the words "covered building" usedthroughout this Other Coverage 12. Ordi-nance Or Law, refer to property at such aDescribed Location covered under OtherCoverage 3. Improvements, Alterations AndAdditions.

d. You may use all or part of this ordinance orlaw coverage to pay for the increased costsyou incur to remove debris resulting fromthe construction, demolition, remodeling,renovation, repair or replacement of prop-erty as stated in a. above.

e. We do not cover:(1) The loss in value to any covered building

or other structure due to the require-ments of any ordinance or law; or

(2) The costs to comply with any ordinanceor law which requires you or others totest for, monitor, clean up, remove,contain, treat, detoxify or neutralize, or inany way respond to, or assess the ef-fects of, pollutants in or on any coveredbuilding or other structure.Pollutants means any solid, liquid, gase-ous or thermal irritant or contaminant,including smoke, vapor, soot, fumes,acids, alkalis, chemicals and waste.Waste includes materials to be recycled,reconditioned or reclaimed.

This coverage is additional insurance.PERILS INSURED AGAINSTA. Coverage A � Dwelling And Coverage B � Other

Structures1. We insure against risk of direct physical loss to

property described in Coverages A and B.2. We do not insure, however, for loss:

a. Excluded under General Exclusions;b. Involving collapse, except as provided in

Other Coverage 10. Collapse; orc. Caused by:

(1) Freezing of a plumbing, heating, airconditioning or automatic fire protectivesprinkler system or of a household ap-pliance, or by discharge, leakage oroverflow from within the system or appli-ance caused by freezing. This provisiondoes not apply if you have used reason-able care to:

(a) Maintain heat in the building; or(b) Shut off the water supply and drain

all systems and appliances of water;However, if the building is protected byan automatic fire protective sprinklersystem, you must use reasonable careto continue the water supply and main-tain heat in the building for coverage toapply.For purposes of this provision a plumb-ing system or household appliance doesnot include a sump, sump pump or re-lated equipment or a roof drain, gutter,downspout or similar fixtures or equip-ment.

(2) Freezing, thawing, pressure or weight ofwater or ice, whether driven by wind ornot, to a:

(a) Fence, pavement, patio or swimmingpool;

(b) Footing, foundation, bulkhead, wall,or any other structure or device, thatsupports all or part of a building orother structure;

(c) Retaining wall or bulkhead that doesnot support all or part of a building orother structure; or

(d) Pier, wharf or dock;(3) Theft of property not part of a covered

building or structure;(4) Theft in or to a dwelling or structure

under construction;(5) Wind, hail, ice, snow or sleet to:

(a) Outdoor radio and television anten-nas and aerials including their lead-inwiring, masts or towers; or

(b) Trees, shrubs, plants or lawns;

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(6) Vandalism and malicious mischief, theftor attempted theft, and any ensuing losscaused by any intentional and wrongfulact committed in the course of the van-dalism or malicious mischief, theft orattempted theft, if the dwelling has beenvacant for more than 60 consecutivedays immediately before the loss. Adwelling being constructed is not con-sidered vacant;

(7) Constant or repeated seepage or leak-age of water or steam over a period ofweeks, months or years from within aplumbing, heating, air conditioning orautomatic fire protective sprinkler sys-tem or from within a household appli-ance.For purposes of this provision, a plumb-ing system or household appliance doesnot include a sump, sump pump or re-lated equipment or a roof drain, gutter,downspout or similar fixtures or equip-ment;

(8) Any of the following:(a) Wear and tear, marring, deteriora-

tion;(b) Mechanical breakdown, latent defect,

inherent vice, or any quality in prop-erty that causes it to damage or de-stroy itself;

(c) Smog, rust or other corrosion, mold,wet or dry rot;

(d) Smoke from agricultural smudging orindustrial operations;

(e) Discharge, dispersal, seepage, mi-gration release or escape of pollut-ants unless the discharge, dispersal,seepage, migration, release or es-cape is itself caused by a Peril In-sured Against named under Cover-age C.Pollutants means any solid, liquid,gaseous or thermal irritant or con-taminant, including smoke, vapor,soot, fumes, acids, alkalis, chemicalsand waste. Waste includes materialsto be recycled, reconditioned or re-claimed;

(f) Settling, shrinking, bulging or expan-sion, including resultant cracking, ofbulkheads, pavements, patios, foot-ings, foundations, walls, floors, roofsor ceilings; or

(g) Birds, vermin, rodents, insects ordomestic animals.

Exception To c.(8)Unless the loss is otherwise excluded, wecover loss to property covered under CoverageA or B resulting from an accidental dischargeor overflow of water or steam from within a:(i) Storm drain, or water, steam or sewer pipe,

off the Described Location; or(ii) Plumbing, heating, air conditioning or auto-

matic fire protective sprinkler system orhousehold appliance on the Described Lo-cation. This includes the cost to tear out andreplace any part of a building, or otherstructure, on the Described Location, butonly when necessary to repair the system orappliance. However, such tear out and re-placement coverage only applies to otherstructures if the water or steam causes ac-tual damage to a building on the DescribedLocation.

We do not cover loss to the system or appli-ance from which this water or steam escaped.For the purposes of this provision, a plumbingsystem or household appliance does not in-clude a sump, sump pump or related equip-ment or roof drain, gutter, down spout or similarfixtures or equipment.

General Exclusion A.3. Water Damage, Para-graphs a. and c. that apply to surface water andwater below the surface of ground do not apply toloss by water covered under c.(8) above.Under 2.b. and c. above, any ensuing loss toproperty described in Coverages A and B not ex-cluded or excepted in this policy is covered.

B. Coverage C � Personal PropertyWe insure for direct physical loss to the propertydescribed in Coverage C caused by a peril listedbelow unless the loss is excluded in the GeneralExclusions.1. Fire Or Lightning2. Windstorm Or Hail

This peril does not include loss to:a. Property contained in a building caused by

rain, snow, sleet, sand or dust unless the di-rect force of wind or hail damages thebuilding causing an opening in a roof or walland the rain, snow, sleet, sand or dust en-ters through this opening;

b. Canoes and rowboats; orc. Trees, shrubs or plants.

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3. Explosion4. Riot Or Civil Commotion5. Aircraft


6. Vehicles7. Smoke

This peril means sudden and accidental dam-age from smoke, including the emission orpuffback of smoke, soot, fumes or vapors froma boiler, furnace or related equipment.This peril does not include loss caused bysmoke from agricultural smudging or industrialoperations.

8. Vandalism Or Malicious MischiefThis peril does not include loss by pilferage,theft, burglary or larceny.

9. Damage By Burglarsa. This peril means damage to covered prop-

erty caused by burglars.b. This peril does not include:

(1) Theft of property; or(2) Damage caused by burglars to property

on the Described Location if the dwellinghas been vacant for more than 60 con-secutive days immediately before thedamage occurs. A dwelling being con-structed is not considered vacant.

10. Falling ObjectsThis peril does not include loss to propertycontained in the building unless the roof or anoutside wall of the building is first damaged bya falling object. Damage to the falling object it-self is not covered.

11. Weight Of Ice, Snow Or SleetThis peril means weight of ice, snow or sleetwhich causes damage to property contained inthe building.

12. Accidental Discharge Or Overflow Of WaterOr Steama. This peril means accidental discharge or

overflow of water or steam from within aplumbing, heating, air conditioning or auto-matic fire protective sprinkler system orfrom within a household appliance.

b. This peril does not include loss:(1) To the system or appliance from which

the water or steam escaped;

(2) Caused by or resulting from freezingexcept as provided in Peril InsuredAgainst 14. Freezing; or

(3) On the Described Location caused byaccidental discharge or overflow whichoccurs off the Described Location.

c. In this peril, a plumbing system or house-hold appliance does not include a sump,sump pump or related equipment; or a roofdrain, gutter, downspout or similar fixturesor equipment.

d. General Exclusion A.3. Water Damage,Paragraphs a. and c. that apply to surfacewater and water below the surface of theground do not apply to loss by water cov-ered under this peril.

13. Sudden And Accidental Tearing Apart,Cracking, Burning Or BulgingThis peril means sudden and accidental tearingapart, cracking, burning or bulging of a steamor hot water heating system, an air conditioningor automatic fire protective sprinkler system, oran appliance for heating water.We do not cover loss caused by or resultingfrom freezing except as provided in the peril offreezing below.

14. Freezinga. This peril means freezing of a plumbing,

heating, air conditioning or automatic fireprotective sprinkler system or of a house-hold appliance but only if you have usedreasonable care to:

(1) Maintain heat in the building; or(2) Shut off the water supply and drain all

systems and appliances of water.However, if the building is protected by anautomatic fire protective sprinkler system,you must use reasonable care to continuethe water supply and maintain heat in thebuilding for coverage to apply.

b. In this peril, a plumbing system or house-hold appliance does not include a sump,sump pump or related equipment; or a roofdrain, gutter, downspout or similar fixturesor equipment.

15. Sudden And Accidental Damage FromArtificially Generated Electrical CurrentThis peril does not include loss to tubes, tran-sistors, electronic components or circuitry thatare a part of appliances, fixtures, computers,home entertainment units or other types ofelectronic apparatus.

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16. Volcanic EruptionThis peril does not include loss caused byearthquake, land shock waves or tremors.

GENERAL EXCLUSIONSA. We do not insure for loss caused directly or indi-

rectly by any of the following. Such loss is ex-cluded regardless of any other cause or eventcontributing concurrently or in any sequence to theloss. These exclusions apply whether or not theloss event results in widespread damage or affectsa substantial area.1. Ordinance Or Law

Ordinance Or Law means any ordinance orlaw:a. Requiring or regulating the construction,

demolition, remodeling, renovation or repairof property, including removal of any result-ing debris. This Exclusion A.1.a. does notapply to the amount of coverage that maybe provided under Other Coverage 12. Or-dinance Or Law;


c. Requiring you or others to test for, monitor,clean up, remove, contain, treat, detoxify orneutralize, or in any way respond to, or as-sess the effects of, pollutants.Pollutants means any solid, liquid, gaseousor thermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes mate-rials to be recycled, reconditioned or re-claimed.

This Exclusion A.1. applies whether or not theproperty has been physically damaged.


tremors before, during or after a volcaniceruption;


sinking, rising or shifting;caused by or resulting from human or animalforces or any act of nature unless direct loss byfire or explosion ensues and then we will payonly for the ensuing loss.

3. Water DamageWater Damage means:

a. Flood, surface water, waves, tidal water,overflow of a body of water or spray fromany of these, whether or not driven by wind;

b. Water or water-borne material which backsup through sewers or drains or which over-flows or is discharged from a sump, sumppump or related equipment; or

c. Water or water-borne material below thesurface of the ground, including water whichexerts pressure on or seeps or leaksthrough a building, sidewalk, driveway,foundation, swimming pool or other struc-ture;

caused by or resulting from human or animalforces or any act of nature.Direct loss by fire or explosion resulting fromwater damage is covered.

4. Power FailurePower Failure means the failure of power orother utility service if the failure takes place offthe Described Location. But if the failure ofpower or other utility service results in a loss,from a Peril Insured Against on the DescribedLocation, we will pay for the loss caused by thatPeril Insured Against.

5. NeglectNeglect means your neglect to use all reason-able means to save and preserve property atand after the time of a loss.

6. WarWar includes the following and any conse-quence of any of the following:a. Undeclared war, civil war, insurrection,


personnel;c. Destruction or seizure or use for a military

purpose.Discharge of a nuclear weapon will be deemeda warlike act even if accidental.

7. Nuclear HazardThis Exclusion A.7. pertains to Nuclear Hazardto the extent set forth in the Nuclear HazardClause of the Conditions.

8. Intentional LossIntentional Loss means any loss arising out ofany act you or any person or organizationnamed as an additional insured commits orconspires to commit with the intent to cause aloss.

SAMPLE


In the event of such loss, neither you nor anysuch person or organization is entitled to cov-erage, even those who did not commit or con-spire to commit the act causing the loss.

9. Governmental ActionGovernmental Action means the destruction,confiscation or seizure of property described inA, B or C by order of any governmental or pub-lic authority.This exclusion does not apply to such acts or-dered by any governmental or public authoritythat are taken at the time of a fire to prevent itsspread, if the loss caused by fire would be cov-ered under this policy.

B. We do not insure for loss to property described inCoverages A and B caused by any of the follow-ing. However, any ensuing loss to property de-scribed in Coverages A and B not precluded byany other provision in this policy is covered.1. Weather conditions. However, this exclusion

only applies if weather conditions contribute inany way with a cause or event excluded in A.above to produce the loss.

2. Acts or decisions, including the failure to act ordecide, of any person, group, organization orgovernmental body.

3. Faulty, inadequate or defective:a. Planning, zoning, development, surveying,

siting;b. Design, specifications, workmanship, repair,

construction, renovation, remodeling, grad-ing, compaction;

c. Materials used in repair, construction, reno-vation or remodeling; or

d. Maintenance;of part or all of any property whether on or offthe Described Location.





2. For more than the applicable limit of liability.

C. Concealment Or FraudWe provide coverage to no persons insured underthis policy if, whether before or after a loss, one ormore persons insured under this policy have:1. Intentionally concealed or misrepresented any








5. As often as we reasonably require:a. Show the damaged property;b. Provide us with records and documents we

request and permit us to make copies; andc. Submit to examination under oath, while not

in the presence of another named insured,and sign the same;

6. Send to us, within 60 days after our request,your signed, sworn proof of loss which setsforth to the best of your knowledge and belief:a. The time and cause of loss;b. Your interest and that of all others in the

property involved and all liens on the prop-erty;



detailed repair estimates;

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f. The inventory of damaged personal prop-erty described in D.3.;

g. Receipts for additional living expensesincurred and records that support the fairrental value loss.

E. Loss SettlementIn this Condition E., the terms "cost to repair or re-place" and "replacement cost" do not include theincreased costs incurred to comply with the en-forcement of any ordinance or law except to theextent that coverage for these increased costs isprovided in Other Coverage F.12. Ordinance OrLaw. Covered property losses are settled as fol-lows:1. Property of the following types:

a. Personal property;b. Awnings, carpeting, household appliances,

outdoor antennas and outdoor equipment,whether or not attached to buildings; and

c. Structures that are not buildings;at actual cash value at the time of loss but notmore than the amount required to repair or re-place.

2. Buildings under Coverage A or B at replace-ment cost without deduction for depreciation,subject to the following:a. If, at the time of loss, the amount of insur-

ance in this policy on the damaged buildingis 80% or more of the full replacement costof the building immediately before the loss,we will pay the cost to repair or replace, af-ter application of any deductible and withoutdeduction for depreciation, but not morethan the least of the following amounts:

(1) The limit of liability under this policy thatapplies to the building;

(2) The replacement cost of that part of thebuilding damaged with material of likekind and quality and for like use; or

(3) The necessary amount actually spent torepair or replace the damaged building.

If the building is rebuilt at a new premises,the cost described in (2) above is limited tothe cost which would have been incurred ifthe building had been built at the originalpremises.

b. If, at the time of loss, the amount of insur-ance in this policy on the damaged buildingis less than 80% of the full replacement costof the building immediately before the loss,we will pay the greater of the followingamounts, but not more than the limit of li-ability under this policy that applies to thebuilding:

(1) The actual cash value of that part of thebuilding damaged; or

(2) That proportion of the cost to repair orreplace, after application of deductibleand without deduction for depreciation,that part of the building damaged, whichthe total amount of insurance in thispolicy on the damaged building bears to80% of the replacement cost of thebuilding.

c. To determine the amount of insurancerequired to equal 80% of the full replace-ment cost of the building immediately beforethe loss, do not include the value of:

(1) Excavations, footings, foundations, piersor any other structures or devices thatsupport all or part of the building, whichare below the undersurface of the lowestbasement floor;

(2) Those supports in (1) above which arebelow the surface of the ground insidethe foundation walls, if there is nobasement; and

(3) Underground flues, pipes, wiring anddrains.

d. We will pay no more than the actual cashvalue of the damage until actual repair orreplacement is complete. Once actual re-pair or replacement is complete, we will set-tle the loss as noted in 2.a. and b. above.However, if the cost to repair or replace thedamage is both:

(1) Less than 5% of the amount of insur-ance in this policy on the building; and

(2) Less than $2,500;we will settle the loss as noted in 2.a. and b.above whether or not actual repair or re-placement is complete.

SAMPLE


e. You may disregard the replacement costloss settlement provisions and make claimunder this policy for loss to buildings on anactual cash value basis. You may thenmake claim for any additional liability ac-cording to the provisions of this Condition E.Loss Settlement, provided you notify us ofyour intent to do so within 180 days after thedate of loss.



of the property before and after the loss.G. Appraisal

If you and we fail to agree on the amount of loss,either may demand an appraisal of the loss. In thisevent, each party will choose a competent and im-partial appraiser within 20 days after receiving awritten request from the other. The two appraiserswill choose an umpire. If they cannot agree uponan umpire within 15 days, you or we may requestthat the choice be made by a judge of a court ofrecord in the state where the Described Location islocated. The appraisers will separately set theamount of loss. If the appraisers submit a writtenreport of an agreement to us, the amount agreedupon will be the amount of loss. If they fail toagree, they will submit their differences to the um-pire. A decision agreed to by any two will set theamount of loss.Each party will:1. Pay its own appraiser; and2. Bear the other expenses of the appraisal and

umpire equally.H. Other Insurance And Service Agreement




I. SubrogationYou may waive in writing before a loss all rights ofrecovery against any person. If not waived, wemay require an assignment of rights of recovery fora loss to the extent that payment is made by us.If an assignment is sought, the person insuredmust sign and deliver all related papers and coop-erate with us.

J. Suit Against UsNo action can be brought against us unless therehas been full compliance with all of the terms un-der this policy and the action is started within twoyears after the date of loss.

K. Our OptionIf we give you written notice within 30 days afterwe receive your signed, sworn proof of loss, wemay repair or replace any part of the damagedproperty with material or property of like kind andquality.

L. Loss PaymentWe will adjust all losses with you. We will pay youunless some other person is named in the policy oris legally entitled to receive payment. Loss will bepayable 60 days after we receive your proof of lossand:1. Reach an agreement with you;2. There is an entry of a final judgment; or3. There is a filing of an appraisal award with us.

M. Abandonment Of PropertyWe need not accept any property abandoned byyou.

N. Mortgage Clause1. If a mortgagee is named in this policy, any loss





SAMPLE








O. No Benefit To BaileeWe will not recognize any assignment or grant anycoverage that benefits a person or organizationholding, storing or moving property for a fee re-gardless of any other provision of this policy.

P. Cancellation1. You may cancel this policy at any time by re-












Q. NonrenewalWe may elect not to renew this policy. We may doso by delivering to you, or mailing to you at yourmailing address shown in the Declarations, writtennotice at least 30 days before the expiration dateof this policy. Proof of mailing will be sufficientproof of notice.

R. Liberalization ClauseIf we make a change which broadens coverageunder this edition of our policy without additionalpremium charge, that change will automaticallyapply to your insurance as of the date we imple-ment the change in your state, provided that thisimplementation date falls within 60 days prior to orduring the policy period stated in the Declarations.This Liberalization Clause does not apply tochanges implemented with a general program re-vision that includes both broadenings and restric-tions in coverage, whether that general programrevision is implemented through introduction of:1. A subsequent edition of this policy; or2. An amendatory endorsement.

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S. Waiver Or Change Of Policy ProvisionsA waiver or change of a provision of this policymust be in writing by us to be valid. Our request foran appraisal or examination will not waive any ofour rights.

T. AssignmentAssignment of this policy will not be valid unlesswe give our written consent.

U. DeathIf you die, we insure:1. Your legal representatives but only with respect



V. Nuclear Hazard Clause1. "Nuclear Hazard" means any nuclear reaction,


2. Loss caused by the nuclear hazard will not beconsidered loss caused by fire, explosion, orsmoke, whether these perils are specificallynamed in or otherwise included within the PerilsInsured Against.


W. Recovered PropertyIf you or we recover any property for which wehave made payment under this policy, you or wewill notify the other of the recovery. At your option,the property will be returned to or retained by youor it will become our property. If the recoveredproperty is returned to or retained by you, the losspayment will be adjusted based on the amount youreceived for the recovered property.

X. Volcanic Eruption PeriodOne or more volcanic eruptions that occur within a72-hour period will be considered as one volcaniceruption.

Y. Loss Payable ClauseIf the Declarations show a loss payee for certainlisted insured personal property, that person isconsidered an insured in this policy with respect tothat property.If we decide to cancel or not renew this policy, thatloss payee will be notified in writing.

SAMPLE

POLICY NUMBER: DWELLINGDP 04 69 12 02

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.


EARTHQUAKESCHEDULE*

Earthquake Deductible Percentage Amount:

Exterior Masonry Veneer Exclusion 1. � Check here only if this exclusion does not apply.

* Entries may be left blank if shown elsewhere in this policy for this coverage.

A. Coverage1. We insure for direct physical loss to property

covered under Coverages A, B or C caused byearthquake, including land shock waves ortremors before, during or after a volcanic erup-tion.One or more earthquake shocks that occurwithin a seventy-two hour period constitute asingle earthquake.

2. This coverage does not increase the limits ofliability stated in this policy.

B. Special DeductibleThe following replaces any other deductible provi-sion in this policy with respect to loss covered un-der this endorsement:We will pay only that part of the total of all losspayable under Coverages, except:1. Coverage D � Fair Rental Value;2. Coverage E � Additional Living Expenses; and3. The Other Coverages;that exceeds the earthquake deductible.The dollar amount of the earthquake deductible isdetermined by multiplying either the:Coverage A;Coverage B; orCoverage C;limit of liability shown in the Declarations, which-ever is greater, by the deductible percentageamount shown in the Schedule above.The total deductible amount will not be less than$250.

C. Special Exclusions1. Exterior Masonry Veneer

We do not cover loss to exterior masonry ve-neer caused by earthquake. The value of exte-rior masonry veneer will be deducted beforeapplying the earthquake deductible describedabove. For the purpose of this exclusion,stucco is not considered masonry veneer.

2. FloodWe do not cover loss resulting directly or indi-rectly from flood of any nature or tidal wave,whether:a. Caused by;b. Resulting from;c. Contributed to by; ord. Aggravated by;earthquake.

3. Filling LandThis coverage does not include the cost of fill-ing land.

D. Exception To The Earth Movement ExclusionThe Earth Movement Exclusion in this policy doesnot apply to loss caused by earthquake, includingland shock waves or tremors before, during or af-ter a volcanic eruption.

All other provisions of this policy apply.

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PERMITTED INCIDENTAL OCCUPANCIESSCHEDULE*

Description of Occupancy:

*Entry may be left blank if shown elsewhere in this policy for this coverage.

Under Coverage C � Personal Property we coverpersonal property pertaining to the use of the dwellingfor the occupancy described in the Schedule above forloss caused by a Peril Insured Against on the De-scribed Location. We will not be liable in any one lossfor more than the limit of liability shown in this policyfor this coverage.All other provisions of this policy apply.

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WATER BACK UP ANDSUMP DISCHARGE OR OVERFLOW

A. CoverageWe insure, up to $5,000, for direct physical loss,not caused by your negligence, or that of any per-son insured under this policy, to covered propertycaused by water, or water-borne material, which:1. Backs up through sewers or drains; or2. Overflows or is discharged from a:

a. Sump, sump pump; orb. Related equipment;even if such overflow or discharge results frommechanical breakdown. This coverage doesnot apply to direct physical loss of the sumppump, or related equipment, which is causedby mechanical breakdown.

This coverage does not increase the limits of liabil-ity for Coverages A, B, C, D or, if covered, Cover-age E stated in the Declarations.

B. Perils Insured AgainstWith respect to the coverage described in A.above, Paragraph:A.2.c.(9)(b) in Form DP 00 03; and2.c.(6)(b) in Endorsement DP 04 65;is deleted and replaced by the following:Latent defect, inherent vice, or any quality in prop-erty that causes it to damage or destroy itself;

C. Special DeductibleThe following replaces any other deductible provi-sion in this policy with respect to loss covered un-der this endorsement.We will pay only that part of the total of all losspayable that exceeds $250. No other deductibleapplies to this coverage. This deductible does notapply with respect to Coverage D � Fair RentalValue and, if covered, Coverage E � AdditionalLiving Expense.

D. General ExclusionThe Water Damage exclusion is deleted and re-placed by the following:Water Damage, meaning:a. Flood, surface water, waves, tidal water, over-

flow of a body of water, or spray from any ofthese, whether or not driven by wind;

b. Water, or water-borne material, which:(1) Backs up through sewers or drains; or(2) Overflows or is discharged from a sump,

sump pump or related equipment;as a direct or indirect result of flood; or

c. Water, or water-borne material, below thesurface of the ground, including water which:

(1) Exerts pressure on; or(2) Seeps or leaks through;a building, sidewalk, driveway, foundation,swimming pool or other structure;

caused by or resulting from human or animalforces or any act of nature.Direct loss by fire or explosion resulting from waterdamage is covered.


SAMPLE

POLICY NUMBER: DWELLING DP 04 73 12 02



LIMITED THEFT COVERAGE

SCHEDULE*

On-Premises Limit Of Liability: *Entry may be left blank if shown elsewhere in this policy for this coverage.

For the limit of liability shown in the Schedule above for this coverage, we insure against direct physical loss to personal property owned or used by you caused by the Perils Insured Against named below. A. Perils Insured Against 1. Theft, including attempted theft. 2. Vandalism or malicious mischief as a result of

theft or attempted theft. This peril does not in-clude loss at the Described Location, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant.

B. Definitions The following definitions apply to the coverage provided by this endorsement:

1. "Business" means: a. A trade, profession or occupation engaged

in on a full-time, part-time or occasional ba-sis; or

b. Any other activity engaged in for money or other compensation, except the following:

(1) One or more activities, not described in (2) through (4) below, for which you re-ceive no more than $2,000 in total com-pensation for the 12 months before the beginning of the policy period;

(2) Volunteer activities for which no money is received other than payment for ex-penses incurred to perform the activity;

(3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or

(4) The rendering of home day care ser-vices to your relative.

2. "Residence employee" means: a. Your employee, or an employee leased to

you by a labor leasing firm, under an agreement between you and the labor leas-ing firm, whose duties are related to the maintenance or use of the Described Loca-tion, including household or domestic ser-vices; or

b. One who performs similar duties elsewhere not related to your "business".

A "residence employee" does not include a temporary employee who is furnished to you to substitute for a permanent "residence em-ployee" on leave or to meet seasonal or short-term workload conditions.

C. Coverages And Limits Of Liability 1. On-Premises Coverage

The Limit of Liability shown in the Schedule for this coverage is the most we will pay for any one covered loss at the Described Location. Coverage applies while the property is:

a. At the Described Location if the property is: (1) Owned or used by you; or (2) Owned by a "residence employee"; or b. Placed for safekeeping in any: (1) Bank, trust or safe deposit company;

SAMPLE


(2) Public warehouse; or (3) Occupied dwelling not owned, rented to

or occupied by you. 2. Special Limits Of Liability

These limits do not increase the limit of liability applicable to On-Premises Coverage. The spe-cial limit for each category shown below is the total limit for each loss for all property in that category.

a. $1,500 on watercraft of all types including their trailers, furnishing, equipment and out-board motors.

b. $1,500 on trailers or semi-trailers not used with watercraft of all types.

c. $2,500 on firearms and related equipment. 3. Property Not Covered

We do not cover: a. Loss caused by a tenant, roomer or

boarder, members of the tenant's house-hold, or their employees;

b. Money, bank notes, bullion, gold, goldware, gold-plated ware, silver, silverware, silver-plated ware, pewterware, platinum, plati-numware, platinum-plated ware, coins, medals, scrip, stored value cards and smart cards;

c. Securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, personal re-cords, tickets and stamps;

d. Jewelry, watches, furs, precious and semi-precious stones;

e. Aircraft and parts. Aircraft means any con-trivance used or designed for flight, except model or hobby aircraft not used or de-signed to carry people or cargo;

f. Hovercraft and parts. Hovercraft means a self-propelled motorized ground effect vehi-cle and includes, but is not limited to, flare-craft and air cushion vehicles;

g. Motor vehicles or all other motorized land conveyances. This includes:

(1) Their accessories, equipment and parts; or

(2) Any device or instrument for the trans-mitting, recording, receiving or reproduc-tion of sound or pictures which is oper-ated by power from the electrical systems of motor vehicles or all other motorized land conveyances, including its accessories. Accessories include an-tennas, tapes, wires, records, discs or other media that can be used with any device or instrument described above;

This exclusion of property described in c.(1) and (2) above applies only while the prop-erty is in or upon the vehicle or conveyance. We do cover motor vehicles or convey-ances not required to be registered for use on public roads or property which are:

(1) Used solely to service the Described Location; or

(2) Designed to assist the handicapped; h. Property held as a sample or for sale or

delivery after sale; i. "Business" property; j. Animals, birds or fish; k. Credit cards, electronic fund transfer cards

or access devices used solely for deposit withdrawal or transfer of funds; or

l. Property separately described and specifi-cally insured by any other insurance.

D. Conditions 1. Under Condition D. Duties After Loss, the

following paragraph is added: 7. Notify the police in case of loss by theft. 2. Condition H. Other Insurance And Service

Agreement is deleted with respect to the cov-erage provided by this endorsement and re-placed by the following:

H. Other Insurance and Service Agreement If a loss covered by this endorsement is also covered by:

1. Other insurance, we will pay only the proportion of the loss that the limit of li-ability that applies under this endorse-ment bears to the total amount of insur-ance covering the loss; or

2. A service agreement, this insurance is excess over any amounts payable under any such agreement. Service agreement means a service plan, property restora-tion plan, home warranty or other similar service warranty agreement, even if it is characterized as insurance.


SAMPLE

POLICY NUMBER: DWELLING DP 04 72 12 02



BROAD THEFT COVERAGE

SCHEDULE*

On-Premises Limit Of Liability: Off-Premises Limit Of Liability: *Entry may be left blank if shown elsewhere in this policy for this coverage.

For the limit of liability shown in the Schedule above for this coverage, we insure against direct physical loss to personal property owned or used by an "in-sured" caused by the Perils Insured Against named below. A. Perils Insured Against 1. Theft, including attempted theft. 2. Vandalism or malicious mischief as a result of

theft or attempted theft. This peril does not in-clude loss at the Described Location, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant.

B. Definitions The following definitions apply to the coverage provided by this endorsement:

1. "Business" means: a. A trade, profession or occupation engaged


b. Any other activity engaged in for money or other compensation, except the following:

(1) One or more activities, not described in (2) through (4) below, for which no "in-sured" receives more than $2,000 in to-tal compensation for the 12 months be-fore the beginning of the policy period;

(2) Volunteer activities for which no money is received other than payment for ex-penses incurred to perform the activity;

(3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or

(4) The rendering of home day care ser-vices to a relative of an "insured".

2. "Insured" means: a. You and residents of your household who

are: (1) Your relatives; or. (2) Other persons under the age of 21 and

in the care of any person named above; or

b. A student enrolled in school full-time as defined by the school, who was a resident of your household before moving out to at-tend school, provided the student is under the age of

(1) 24 and your relative; or (2) 21 and in your care or the care of a

person described in 2.a. 3. "Residence employee" means: a. An employee of an "insured", or an em-

ployee leased to an "insured" by a labor leasing firm, under an agreement between an "insured" and the labor leasing firm, whose duties are related to the mainte-nance or use of the Described Location, in-cluding household or domestic services; or

b. One who performs similar duties elsewhere not related to the "business" of an "insured".

SAMPLE


A "residence employee" does not include a temporary employee who is furnished to an "in-sured" to substitute for a permanent "residence employee" on leave or to meet seasonal or short-term workload conditions.

C. Coverages And Limits Of Liability 1. On-Premises Coverage

The Limit of Liability shown in the Schedule for this coverage is the most we will pay for any one covered loss at the Described Location. Coverage applies while the property is:

a. At the part of the Described Location occu-pied by an "insured";

b. In other parts of the Described Location not occupied exclusively by an "insured", if the property is:

(1) Owned or used by an "insured"; or (2) Owned by a "residence employee"; c. Placed for safekeeping in any: (1) Bank, trust or safe deposit company; (2) Public warehouse; or (3) Occupied dwelling not owned, rented to

or occupied by an "insured". 2. Off-Premises Coverage

This endorsement does not cover loss to per-sonal property away from the Described Loca-tion caused by Theft or Vandalism or Malicious Mischief unless a limit is shown above for On-Premises coverage. The Limit of Liability shown in the Schedule for this coverage is the most we will pay for any one covered loss away from the Described Lo-cation. Coverage applies while the property is away from the Described Location if such property is:

a. Owned or used by an "insured"; b. Owned by a "residence employee" while in

a dwelling occupied by an "insured" or while engaged in the employ of the "insured".

Off-Premises Coverage does not apply to property you remove to a newly acquired prin-cipal residence.

3. Automatic Removal Coverage If, during the term of this policy, you move to a newly acquired principal residence, the limit of liability for On-Premises Coverage will apply at each residence and in transit for a period of 30 days after you begin to move the property there. When the moving is completed, On-Premises Coverage applies at the new De-scribed Location only.

4. Special Limits Of Liability These limits do not increase the limit of liability applicable to On-Premises Coverage or Off-Premises Coverage. The special limit for each category shown below is the total limit for each loss for all property in that category.

a. $200 on money, bank notes, bullion, gold other than goldware, silver other than sil-verware, platinum other than platinumware, coins, medals, scrip, stored value cards and smart cards.

b. $1,500 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, pass-ports, personal records, tickets and stamps.

c. $1,500 on watercraft of all types, including their trailers, furnishings, equipment and outboard motors.

d. $1,500 on trailers or semi-trailers not used with watercraft of all types.

e. $1,500 on jewelry, watches, furs, precious and semiprecious stones.

f. $2,500 on firearms and related equipment. g. $2,500 on silverware, silver-plated ware,

goldware, gold-plated ware, platinumware, platinum-plated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including sil-ver, gold or pewter.

5. Property Not Covered We do not cover:

a. Aircraft and parts. Aircraft means any con-trivance used or designed for flight, except model or hobby aircraft not used or de-signed to carry people or cargo;

b. Hovercraft and parts. Hovercraft means a self-propelled motorized ground effect vehi-cle and includes, but is not limited to, flare-craft and air cushion vehicles;

c. Motor vehicles or all other motorized land conveyances. This includes:

(1) Their accessories, equipment and parts; or

(2) Any device or instrument for the trans-mitting, recording, receiving or reproduc-tion of sound or pictures which is oper-ated by power from the electrical systems of motor vehicles or all other motorized land conveyances, including its accessories. Accessories include an-tennas, tapes, wires, records, discs or other media that can be used with any device or instrument described above.

SAMPLE


This exclusion of property described in c.(1) and (2) above applies only while the prop-erty is in or upon the vehicle or conveyance. We do cover motor vehicles or convey-ances not required to be registered for use on public roads or property which are:

(1) Used solely to service the Described Location; or

(2) Designed to assist the handicapped; d. Property held as a sample or for sale or

delivery after sale; e. "Business" property of an "insured" or "resi-

dence employee" on or away from the De-scribed Location;

f. Animals, birds or fish; g. Property of tenants, roomers and boarders

not related to an "insured"; h. Property while: (1) At any other location owned, rented to or

occupied by any "insured", except while an "insured" is temporarily residing there;

(2) In the custody of any laundry, cleaner, tailor, presser or dyer except for loss by burglary or robbery; or

(3) In the mail;

i. Credit cards, electronic fund transfer cards or access devices used solely for deposit, withdrawal or transfer of funds.

j. Property separately described and specifi-cally insured by any other insurance.

D. Conditions 1. Under Condition D. Duties After Loss the

following paragraph is added: 7. Notify the police in case of loss by theft. 2. Condition H. Other Insurance And Service

Agreement is deleted with respect to the cov-erage provided by this endorsement and re-placed by the following:

H. Other Insurance and Service Agreement If a loss covered by this endorsement is also covered by:

1. Other insurance, we will pay only the proportion of the loss that the limit of li-ability that applies under this endorse-ment bears to the total amount of insur-ance covering the loss; or

2. A service agreement, this insurance is excess over any amounts payable under any such agreement. Service agreement means a service plan, property restora-tion plan, home warranty or other similar service warranty agreement, even if it is characterized as insurance.


SAMPLE

PERSONAL LIABILITYDL 24 01 12 02

DL 24 01 12 02 © ISO Properties, Inc., 2002 Page 1 of 8

PERSONAL LIABILITYAGREEMENTWe will provide the insurance described in this policyin return for the premium and compliance with allapplicable provisions of this policy.DEFINITIONSA. In this policy, "you" and "your" refer to the "named

insured" shown in the Declarations and the spouseif a resident of the same household. "We", "us"and "our" refer to the Company providing this in-surance.

B. In addition, certain words and phrases are definedas follows:1. "Aircraft Liability", "Hovercraft Liability", "Motor

Vehicle Liability" and "Watercraft Liability",subject to the provisions in b. below, mean thefollowing:a. Liability for "bodily injury" or "property dam-

age" arising out of the:(1) Ownership of such vehicle or craft by an

"insured";(2) Maintenance, occupancy, operation,

use, loading or unloading of such vehicleor craft by any person;

(3) Entrustment of such vehicle or craft byan "insured" to any person;

(4) Failure to supervise or negligent super-vision of any person involving such vehi-cle or craft by an "insured"; or

(5) Vicarious liability, whether or not im-posed by law, for the actions of a child orminor involving such vehicle or craft.

b. For the purpose of this definition:(1) Aircraft means any contrivance used or

designed for flight except model orhobby aircraft not used or designed tocarry people or cargo;

(2) Hovercraft means a self-propelled mo-torized ground effect vehicle and in-cludes, but is not limited to, flarecraftand air cushion vehicles;

(3) Watercraft means a craft principallydesigned to be propelled on or in waterby wind, engine power or electric motor;and

(4) Motor vehicle means a "motor vehicle"as defined in 7. below.

2. "Bodily injury" means bodily harm, sickness ordisease, including required care, loss of serv-ices and death that results.

3. "Business" means:a. A trade, profession or occupation engaged


b. Any other activity engaged in for money orother compensation, except the following:

(1) One or more activities, not described in(2) through (4) below, for which no "in-sured" receives more than $2,000 in to-tal compensation for the 12 months be-fore the beginning of the policy period;

(2) Volunteer activities for which no moneyis received other than payment for ex-penses incurred to perform the activity;

(3) Providing home day care services forwhich no compensation is received,other than the mutual exchange of suchservices; or

(4) The rendering of home day care serv-ices to a relative of an "insured".

4. "Employee" means an employee of an "in-sured", or an employee leased to an "insured"by a labor leasing firm under an agreementbetween an "insured" and the labor leasingfirm, whose duties are other than those per-formed by a "residence employee".

5. "Insured" means:a. You and residents of your household who

are:(1) Your relatives; or(2) Other persons under the age of 21 and

in the care of any person named above;b. A student enrolled in school full time, as

defined by the school, who was a residentof your household before moving out to at-tend school, provided the student is underthe age of:

(1) 24 and your relative; or(2) 21 and in your care or the care of a

person described in a.(1) above;

SAMPLE

Page 2 of 8 © ISO Properties, Inc., 2002 DL 24 01 12 02

c. With respect to animals or watercraft towhich this policy applies, any person ororganization legally responsible for theseanimals or watercraft which are ownedby you or any person included in a. or b.above. "Insured" does not mean a per-son or organization using or havingcustody of these animals or watercraft inthe course of any "business" or withoutconsent of the owner; or

d. With respect to a "motor vehicle" towhich this policy applies:

(1) Persons while engaged in your em-ploy or that of any person included ina. or b. above; or

(2) Other persons using the vehicle onan "insured location" with your con-sent.

Throughout this policy, when the word an im-mediately precedes the word "insured", thewords an "insured" together mean one or more"insureds".

6. "Insured location" means:a. The "residence premises";b. The part of other premises, other structures

and grounds used by you as a residence;and

(1) Which is shown in the Declarations; or(2) Which is acquired by you during the

policy period for your use as a resi-dence;

c. Any premises used by you in connectionwith a premises described in a. and b.above;

d. Any part of a premises:(1) Not owned by an "insured"; and(2) Where an "insured" is temporarily resid-

ing;e. Vacant land, other than farm land, owned by

or rented to an "insured";f. Land owned by or rented to an "insured" on

which a one, two, three or four familydwelling is being built as a residence for an"insured";

g. Individual or family cemetery plots or burialvaults of an "insured"; or

h. Any part of a premises occasionally rentedto an "insured" for other than "business"use.

7. "Motor vehicle" means:a. A self-propelled land or amphibious vehicle;

orb. Any trailer or semitrailer which is being

carried on, towed by or hitched for towing bya vehicle described in a. above.

8. "Occurrence" means an accident, includingcontinuous or repeated exposure to substan-tially the same general harmful conditions,which results, during the policy period, in:a. "Bodily injury"; orb. "Property damage".

9. "Property damage" means physical injury to,destruction of, or loss of use of tangible prop-erty.

10. "Residence employee" means:a. An employee of an "insured", or an em-

ployee leased to an "insured" by a laborleasing firm, under an agreement betweenan "insured" and the labor leasing firm,whose duties are related to the mainte-nance or use of the "residence premises",including household or domestic services;or

b. One who performs similar duties elsewherenot related to the "business" of an "insured".

A "residence employee" does not include atemporary employee who is furnished to an "in-sured" to substitute for a permanent "residenceemployee" on leave or to meet seasonal orshort-term workload conditions.

11. "Residence premises" means:a. The one family dwelling where you reside;b. The two, three or four family dwelling where

you reside in at least one of the family units;or

c. That part of any other building where youreside;

and which is shown as the "residence prem-ises" in the Declarations."Residence premises" also includes otherstructures and grounds at that location.

SAMPLE


LIABILITY COVERAGESA. Coverage L � Personal Liability

If a claim is made or a suit is brought against an"insured" for damages because of "bodily injury" or"property damage" caused by an "occurrence" towhich this coverage applies, we will:1. Pay up to our limit of liability for the damages

for which an "insured" is legally liable. Dam-ages include prejudgment interest awardedagainst an "insured"; and

2. Provide a defense at our expense by counsel ofour choice, even if the suit is groundless, falseor fraudulent. We may investigate and settleany claim or suit that we decide is appropriate.Our duty to settle or defend ends when our limitof liability for the "occurrence" has been ex-hausted by payment of a judgment or settle-ment.

B. Coverage M � Medical Payments To OthersWe will pay the necessary medical expenses thatare incurred or medically ascertained within threeyears from the date of an accident causing "bodilyinjury". Medical expenses means reasonablecharges for medical, surgical, x-ray, dental, am-bulance, hospital, professional nursing, prostheticdevices and funeral services. This coverage doesnot apply to you or regular residents of yourhousehold except "residence employees". As toothers, this coverage applies only:1. To a person on the "insured location" with the

permission of an "insured"; or2. To a person off the "insured location", if the

"bodily injury":a. Arises out of a condition on the "insured

location" or the ways immediately adjoining;b. Is caused by the activities of an "insured";c. Is caused by a "residence employee" in the

course of the "residence employee's" em-ployment by an "insured"; or

d. Is caused by an animal owned by or in thecare of an "insured".

EXCLUSIONSA. "Motor Vehicle Liability"

1. Coverages L and M do not apply to any "motorvehicle liability" if, at the time and place of an"occurrence", the involved "motor vehicle":a. Is registered for use on public roads or

property;b. Is not registered for use on public roads or

property, but such registration is required bya law, or regulation issued by a governmentagency, for it to be used at the place of the"occurrence"; or

c. Is being:(1) Operated in, or practicing for, any prear-

ranged or organized race, speed contestor other competition;

(2) Rented to others;(3) Used to carry persons or cargo for a

charge; or(4) Used for any "business" purpose except

for a motorized golf cart while on a golf-ing facility.

2. If Exclusion A.1. does not apply, there is still nocoverage for "motor vehicle liability" unless the"motor vehicle" is:a. In dead storage on an "insured location";b. Used solely to service an "insured's" resi-

dence;c. Designed to assist the handicapped and, at

the time of an "occurrence", it is:(1) Being used to assist a handicapped

person; or(2) Parked on an "insured location";

d. Designed for recreational use off publicroads and:

(1) Not owned by an "insured"; or(2) Owned by an "insured" provided the

"occurrence" takes place on an "insuredlocation" as defined in Definitions B.6.a., b., d., e. or h.; or

e. A motorized golf cart that is owned by an"insured", designed to carry up to 4 per-sons, not built or modified after manufactureto exceed a speed of 25 miles per hour onlevel ground and, at the time of an "occur-rence", is within the legal boundaries of:

(1) A golfing facility and is parked or storedthere, or being used by an "insured" to:

(a) Play the game of golf or for otherrecreational or leisure activity allowedby the facility;

(b) Travel to or from an area where"motor vehicles" or golf carts areparked or stored; or

(c) Cross public roads at designatedpoints to access other parts of thegolfing facility; or

(2) A private residential community, includ-ing its public roads upon which a motor-ized golf cart can legally travel, which issubject to the authority of a propertyowners association and contains an "in-sured's" residence.

SAMPLE


B. "Watercraft Liability"1. Coverages L and M do not apply to any "water-

craft liability" if, at the time of an "occurrence",the involved watercraft is being:a. Operated in, or practicing for, any prear-

ranged or organized race, speed contest orother competition. This exclusion does notapply to a sailing vessel or a predicted logcruise;

b. Rented to others;c. Used to carry persons or cargo for a

charge; ord. Used for any "business" purpose.

2. If Exclusion B.1. does not apply, there is still nocoverage for "watercraft liability" unless, at thetime of the "occurrence", the watercraft:a. Is stored;b. Is a sailing vessel, with or without auxiliary

power, that is:(1) Less than 26 feet in overall length; or(2) 26 feet or more in overall length and not

owned by or rented to an "insured"; orc. Is not a sailing vessel and is powered by:

(1) An inboard or inboard-outdrive engine ormotor, including those that power a wa-ter jet pump, of:

(a) 50 horsepower or less and notowned by an "insured"; or

(b) More than 50 horsepower and notowned by or rented to an "insured";or

(2) One or more outboard engines or mo-tors with:

(a) 25 total horsepower or less;(b) More than 25 horsepower if the out-

board engine or motor is not ownedby an "insured";

(c) More than 25 horsepower if the out-board engine or motor is owned byan "insured" who acquired it duringthe policy period; or

(d) More than 25 horsepower if the out-board engine or motor is owned byan "insured" who acquired it beforethe policy period, but only if:(i) You declare them at policy incep-

tion; or

(ii) Your intent to insure them isreported to us in writing within 45days after you acquire them.

The coverages in (c) and (d) above ap-ply for the policy period.

Horsepower means the maximum powerrating assigned to the engine or motor bythe manufacturer.

C. "Aircraft Liability"This policy does not cover "aircraft liability".

D. "Hovercraft Liability"This policy does not cover "hovercraft liability".

E. Coverage L � Personal Liability And CoverageM � Medical Payments To OthersCoverages L and M do not apply to the following:1. Expected Or Intended Injury

"Bodily injury" or "property damage" which isexpected or intended by an "insured" even ifthe resulting "bodily injury" or "property dam-age":a. Is of a different kind, quality or degree than

initially expected or intended; orb. Is sustained by a different person, entity,

real or personal property, than initially ex-pected or intended.

However, this Exclusion E.1. does not apply to"bodily injury" resulting from the use of reason-able force by an "insured" to protect persons orproperty;

2. "Business"a. "Bodily injury" or "property damage" arising

out of or in connection with a "business"conducted from an "insured location" or en-gaged in by an "insured", whether or not the"business" is owned or operated by an "in-sured" or employs an "insured".This Exclusion E.2. applies but is not limitedto an act or omission, regardless of its na-ture or circumstance, involving a service orduty rendered, promised, owed, or impliedto be provided because of the nature of the"business".

b. This Exclusion E.2. does not apply to:(1) The rental or holding for rental of an

"insured location";(a) On an occasional basis if used only

as a residence;

SAMPLE


(b) In part for use only as a residence,unless a single family unit is intendedfor use by the occupying family tolodge more than two roomers orboarders; or

(c) In part, as an office, school, studio orprivate garage; and

(2) An "insured" under the age of 21 yearsinvolved in a part-time or occasional,self-employed "business" with no em-ployees;

3. Professional Services"Bodily injury" or "property damage" arising outof the rendering of or failure to render profes-sional services;

4. "Insured's" Premises Not An "InsuredLocation""Bodily injury" or "property damage" arising outof a premises:a. Owned by an "insured";b. Rented to an "insured"; orc. Rented to others by an "insured";that is not an "insured location";

5. War"Bodily injury" or "property damage" caused di-rectly or indirectly by war, including the follow-ing and any consequence of any of the follow-ing:a. Undeclared war, civil war, insurrection,


personnel; orc. Destruction, seizure or use for a military

purpose.Discharge of a nuclear weapon will be deemeda warlike act even if accidental;

6. Communicable Disease"Bodily injury" or "property damage" whicharises out of the transmission of a communica-ble disease by an "insured";

7. Sexual Molestation, Corporal PunishmentOr Physical Or Mental Abuse"Bodily injury" or "property damage" arising outof sexual molestation, corporal punishment orphysical or mental abuse; or

8. Controlled Substance"Bodily injury" or "property damage" arising outof the use, sale, manufacture, delivery, transferor possession by any person of a ControlledSubstance as defined by the Federal Food andDrug Law at 21 U.S.C.A. Sections 811 and812. Controlled Substances include but are notlimited to cocaine, LSD, marijuana and all nar-cotic drugs. However, this exclusion does notapply to the legitimate use of prescription drugsby a person following the orders of a licensedphysician.

Exclusions A. "Motor Vehicle Liability", B. "Water-craft Liability", C. "Aircraft Liability", D. "HovercraftLiability" and E.4. "Insured's" Premises Not An "In-sured Location" do not apply to "bodily injury" to a"residence employee" arising out of and in thecourse of the "residence employee's" employmentby an "insured".

F. Coverage L � Personal LiabilityCoverage L does not apply to:1. Liability:

a. For any loss assessment charged againstyou as a member of an association, corpo-ration or community of property owners;

b. Under any contract or agreement enteredinto by an "insured". However, this exclusiondoes not apply to written contracts:

(1) That directly relate to the ownership,maintenance or use of an "insured loca-tion"; or

(2) Where the liability of others is assumedby you prior to an "occurrence";

unless excluded in a. above or elsewhere inthis policy;

2. "Property damage" to property owned by an"insured". This includes costs or expenses in-curred by an "insured" or others to repair, re-place, enhance, restore or maintain such prop-erty to prevent injury to a person or damage toproperty of others, whether on or away from an"insured location";

3. "Property damage" to property rented to, occu-pied or used by or in the care of an "insured".This exclusion does not apply to "propertydamage" caused by fire, smoke or explosion;

SAMPLE


4. "Bodily injury" to any person eligible to receiveany benefits voluntarily provided or required tobe provided by an "insured" under any:a. Workers' compensation law;b. Non-occupational disability law; orc. Occupational disease law;

5. "Bodily injury" or "property damage" for whichan "insured" under this policy:a. Is also an insured under a nuclear energy

liability policy issued by the:(1) Nuclear Energy Liability Insurance As-

sociation;(2) Mutual Atomic Energy Liability Under-

writers;(3) Nuclear Insurance Association of Can-

ada;or any of their successors; or

b. Would be an insured under such a policybut for the exhaustion of its limit of liability;or

6. "Bodily injury" to you or an "insured" as definedunder Definitions 5.a. or b.This exclusion also applies to any claim madeor suit brought against you or an "insured":a. To repay; orb. Share damages with;another person who may be obligated to paydamages because of "bodily injury" to an "in-sured".

G. Coverage M � Medical Payments To OthersCoverage M does not apply to "bodily injury":1. To a "residence employee" if the "bodily injury":

a. Occurs off the "insured location"; andb. Does not arise out of or in the course of the

"residence employee's" employment by an"insured";

2. To any person eligible to receive benefits vol-untarily provided or required to be provided un-der any:a. Workers' compensation law;b. Non-occupational disability law; orc. Occupational disease law;

3. From any:a. Nuclear reaction;b. Nuclear radiation; orc. Radioactive contamination;all whether controlled or uncontrolled or how-ever caused; or

d. Any consequence of any of these; or4. To any person, other than a "residence em-

ployee" of an "insured", regularly residing onany part of the "insured location".

ADDITIONAL COVERAGESWe cover the following in addition to the limits of liabil-ity:A. Claim Expenses

We pay:1. Expenses we incur and costs taxed against an

"insured" in any suit we defend;2. Premiums on bonds required in a suit we de-

fend, but not for bond amounts more than theCoverage L limit of liability. We need not applyfor or furnish any bond;

3. Reasonable expenses incurred by an "insured"at our request, including actual loss of earnings(but not loss of other income) up to $250 perday, for assisting us in the investigation or de-fense of a claim or suit; and

4. Interest on the entire judgment which accruesafter entry of the judgment and before we payor tender, or deposit in court that part of thejudgment which does not exceed the limit of li-ability that applies.

B. First Aid ExpensesWe will pay expenses for first aid to others in-curred by an "insured" for "bodily injury" coveredunder this policy. We will not pay for first aid to an"insured".

C. Damage To Property Of Others1. We will pay, at replacement cost, up to $1,000

per "occurrence" for "property damage" toproperty of others caused by an "insured".

2. We will not pay for "property damage":a. Caused intentionally by an "insured" who is

13 years of age or older;b. To property owned by an "insured";c. To property owned by or rented to a tenant

of an "insured" or a resident in your house-hold; or

d. Arising out of:(1) A "business" engaged in by an "insured";(2) Any act or omission in connection with a

premises owned, rented or controlled byan "insured", other than the "insured lo-cation"; or

SAMPLE


(3) The ownership, maintenance, occu-pancy, operation, use, loading or un-loading of aircraft, hovercraft, watercraftor "motor vehicles".This Exclusion d.(3) does not apply to a"motor vehicle" that:

(a) Is designed for recreational use offpublic roads;

(b) Is not owned by an "insured"; and(c) At the time of the "occurrence", is not

required by law, or regulation issuedby a government agency, to havebeen registered for it to be used onpublic roads or property.

CONDITIONSA. Limit Of Liability

Our total liability under Coverage L for all damagesresulting from any one "occurrence" will not bemore than the Coverage L limit of liability shown inthe Declarations. This limit is the same regardlessof the number of "insureds", claims made or per-sons injured. All "bodily injury" and "property dam-age" resulting from any one accident or from con-tinuous or repeated exposure to substantially thesame general harmful conditions shall be consid-ered to be the result of one "occurrence".Our total liability under Coverage M for all medicalexpense payable for "bodily injury" to one personas the result of one accident will not be more thanthe Coverage M limit of liability shown in the Decla-rations.

B. Severability Of InsuranceThis insurance applies separately to each "in-sured". This condition will not increase our limit ofliability for any one "occurrence".

C. Duties After "Occurrence"In case of an "occurrence", you or another "in-sured" will perform the following duties that apply.We have no duty to provide coverage under thispolicy if your failure to comply with the followingduties is prejudicial to us. You will help us by see-ing that these duties are performed:1. Give written notice to us or our agent as soon

as is practical, which sets forth:a. The identity of the policy and the "named

insured" shown in the Declarations;b. Reasonably available information on the

time, place and circumstances of the "oc-currence"; and

c. Names and addresses of any claimants andwitnesses;

2. Cooperate with us in the investigation, settle-ment or defense of any claim or suit;

3. Promptly forward to us every notice, demand,summons or other process relating to the "oc-currence";

4. At our request, help us:a. To make settlement;b. To enforce any right of contribution or in-

demnity against any person or organizationwho may be liable to an "insured";

c. With the conduct of suits and attend hear-ings and trials; and

d. To secure and give evidence and obtain theattendance of witnesses;

5. With respect to C. Damage To Property OfOthers under Additional Coverages, submit tous within 60 days after the loss, a sworn state-ment of loss and show the damaged property, ifin an "insured's" control;

6. No "insured" shall, except at such "insured's"own cost, voluntarily make payment, assumeobligation or incur expense other than for firstaid to others at the time of the "bodily injury".

D. Duties Of An Injured Person � Coverage M �Medical Payments To Others1. The injured person or someone acting for the

injured person will:a. Give us written proof of claim, under oath if

required, as soon as is practical; andb. Authorize us to obtain copies of medical

reports and records.2. The injured person will submit to a physical

exam by a doctor of our choice when and asoften as we reasonably require.

E. Payment Of Claim � Coverage M � MedicalPayments To OthersPayment under this coverage is not an admissionof liability by an "insured" or us.

F. Suit Against Us1. No action can be brought against us unless

there has been full compliance with all of theterms under this policy.

2. No one will have the right to join us as a partyto any action against an "insured".

3. Also, no action with respect to Coverage L canbe brought against us until the obligation ofsuch "insured" has been determined by finaljudgment or agreement signed by us.

SAMPLE


G. Bankruptcy Of An "Insured"Bankruptcy or insolvency of an "insured" will notrelieve us of our obligations under this policy.

H. Other InsuranceThis insurance is excess over other valid and col-lectible insurance except insurance written specifi-cally to cover as excess over the limits of liabilitythat apply in this policy.

I. Policy PeriodThis policy applies only to "bodily injury" or "prop-erty damage" which occurs during the policy pe-riod.

J. SubrogationAn "insured" may waive in writing before a loss allrights of recovery against any person. If notwaived, we may require an assignment of rights ofrecovery for a loss to the extent that payment ismade by us.

If an assignment is sought, an "insured" must signand deliver all related papers and cooperate withus.Subrogation does not apply to Coverage M orParagraph C. Damage To Property Of Others un-der Additional Coverages.

K. Concealment Or FraudWe do not provide coverage to an "insured" who,whether before or after a loss, has:1. Intentionally concealed or misrepresented any


SAMPLE




LIMITED FUNGI, WET OR DRY ROT, OR BACTERIACOVERAGE

FOR USE WITH ALL FORMS

SCHEDULE*

These limits of liability apply to the total of all loss or costs payable under this endorsement, regardless of thenumber of claims made or the number of locations insured under this endorsement and listed in this Schedule.Property Coverage Limit of Liability for the Other Coverage "Fungi", Wet Or Dry Rot, OrBacteria

$

*Entries may be left blank if shown elsewhere in this policy for this coverage.

With respect to the coverage provided under thisendorsement, "Fungi" means any type or form offungus, including mold or mildew, and any mycotox-ins, spores, scents or by-products produced or re-leased by fungi.COVERAGESThe following Coverage is added to Paragraph F.Other Coverage (Paragraph E. in DP 00 01):

13. "Fungi", Wet Or Dry Rot, Or Bacteriaa. The amount shown in the Schedule above

is the most we will pay for:(1) The total of all loss payable caused by

"fungi", wet or dry rot, or bacteria;(2) The cost to remove "fungi", wet or dry

rot, or bacteria from covered property;(3) The cost to tear out and replace any part

of the building or other covered propertyas needed to gain access to the "fungi",wet or dry rot, or bacteria; and

(4) The cost of testing of air or property toconfirm the absence, presence or levelof "fungi", wet or dry rot, or bacteriawhether performed prior to, during orafter removal, repair, restoration or re-placement. The cost of such testing willbe provided only to the extent that thereis reason to believe that there is a pres-ence of "fungi", wet or dry rot, or bacte-ria.

b. The coverage described in 13.a. only ap-plies when such loss or costs are a result ofa Peril Insured Against that occurs duringthe policy period and only if all reasonablemeans were used to save and preserve theproperty from further damage at and afterthe time the Peril Insured Against occurred.

c. The amount shown in the Schedule for thiscoverage is the most we will pay for the totalof all loss or costs payable under this OtherCoverage regardless of the:

(1) Number of locations insured under thisendorsement; or

(2) Number of claims made.d. If there is covered loss or damage to cov-

ered property, not caused, in whole or inpart, by "fungi", wet or dry rot, or bacteria,loss payment will not be limited by the termsof this Other Coverage, except to the extentthat "fungi", wet or dry rot, or bacteriacauses an increase in the loss. Any suchincrease in the loss will be subject to theterms of this Other Coverage.

This Coverage does not increase the limit of li-ability applying to the damaged covered prop-erty.

(This is Other Coverage 9. in Form DP 00 01.)

SAMPLE


PERILS INSURED AGAINSTIn Form DP 00 03, Paragraph A.2.c.(8)(c) is deletedand replaced by the following:

(c) Smog, rust or other corrosion;(When Endorsement DP 04 65 is attached to thispolicy, this is Paragraph 2.c.(8)(c)).GENERAL EXCLUSIONSThe following exclusion is added:

10. "Fungi", Wet Or Dry Rot, Or Bacteria"Fungi", Wet Or Dry Rot, Or Bacteria meaning,the presence, growth, proliferation, spread orany activity of "fungi", wet or dry rot, or bacteria.This Exclusion does not apply:a. When "fungi", wet or dry rot, or bacteria

results from fire or lightning; or

b. To the extent coverage is provided for inOther Coverages, "Fungi", Wet Or Dry Rot,Or Bacteria with respect to loss caused by aPeril Insured Against other than fire or light-ning.

Direct loss by a Peril Insured Against resultingfrom "fungi", wet or dry rot, or bacteria is cov-ered.

(This is General Exclusion A.10. in FormsDP 00 01 and DP 00 03.)

CONDITIONSA. Policy Period is deleted and replaced by the fol-

lowing:A. Policy Period

This policy applies only to loss or costs which oc-cur during the policy period.


www.kaplanfinancial.com1905 Palace Street, La Crosse, WI 54603800-824-8742

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Property and Casualty Continuing Education Course ... · Property and Casualty Continuing Education Course Supplemental Material 4th Edition Dwelling Coverage. At press time, this