PERSONAL AUTO
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PERSONAL AUTO POLICY
AGREEMENT
In return for payment of the premium and subject to all the terms of this policy, we agree with you as follows:
DEFINITIONS
A. Throughout this policy, "you" and "your" refer to:
1. The "named insured" shown in the Declarations; and
2. The spouse if a resident of the same household.
If the spouse ceases to be a resident of the same
household during the policy period or prior to the
inception of this policy, the spouse will be considered "you" and "your" under this policy but only until the earlier of:
1. The end of 90 days following the spouse's
change of residency;
2. The effective date of another policy listing the
spouse as a named insured; or
3. The end of the policy period.
B. "We", "us" and "our" refer to the Company providing this insurance.
C. For purposes of this policy, a private passenger
type auto, pickup or van shall be deemed to be
owned by a person if leased:
1. Under a written agreement to that person; and
2. For a continuous period of at least 6 months.
Other words and phrases are defined. They are in
quotation marks when used.
D. "Bodily injury" means bodily harm, sickness or
disease, including death that results.
2. Pickup or van.
It also means a farm wagon or farm implement
while towed by a vehicle listed in 1. or 2. above.
J. "Your covered auto" means:
1. Any vehicle shown in the Declarations.
2. A "newly acquired auto".
3. Any "trailer" you own.
4. Any auto or "trailer" you do not own while used
as a temporary substitute for any other vehicle
described in this definition which is out of normal use because of its:
a. Breakdown;
b. Repair;
c. Servicing;
d. Loss; or
e. Destruction.
This Provision (J.4.) does not apply to Coverage For Damage To Your Auto.
K. "Newly acquired auto":
1. "Newly acquired auto" means any of the following types of vehicles you become the owner of
during the policy period:
a. A private passenger auto; or
b. A pickup or van, for which no other insurance policy provides coverage, that:
E. "Business" includes trade, profession or occupation.
(1) Has a Gross Vehicle Weight Rating of
10,000 lbs. or less; and
F. "Family member" means a person related to you by
blood, marriage or adoption who is a resident of
your household. This includes a ward or foster child.
G. "Occupying" means:
(2) Is not used for the delivery or transportation of goods and materials unless such
use is:
1. In;
2. Upon; or
3. Getting in, on, out or off.
H. "Property damage" means physical injury to, destruction of or loss of use of tangible property.
I. "Trailer" means a vehicle designed to be pulled by
a:
1. Private passenger auto; or
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(a) Incidental to your "business" of installing, maintaining or repairing furnishings or equipment; or
(b) For farming or ranching.
2. Coverage for a "newly acquired auto" is provided as described below. If you ask us to insure a "newly acquired auto" after a specified
time period described below has elapsed, any
coverage we provide for a "newly acquired auto"
will begin at the time you request the coverage.
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a. For any coverage provided in this policy
except Coverage For Damage To Your Auto,
a "newly acquired auto" will have the
broadest coverage we now provide for any
vehicle shown in the Declarations. Coverage begins on the date you become the
owner. However, for this coverage to apply
to a "newly acquired auto" which is in addition to any vehicle shown in the Declarations, you must ask us to insure it within 14
days after you become the owner.
If a "newly acquired auto" replaces a vehicle
shown in the Declarations, coverage is provided for this vehicle without your having to
ask us to insure it.
b. Collision Coverage for a "newly acquired
auto" begins on the date you become the
owner. However, for this coverage to apply,
you must ask us to insure it within:
(1) 14 days after you become the owner if the
Declarations indicate that Collision
Coverage applies to at least one auto. In
this case, the "newly acquired auto" will
have the broadest coverage we now
provide for any auto shown in the Declarations.
(2) Four days after you become the owner if
the Declarations do not indicate that Collision Coverage applies to at least one
auto. If you comply with the 4 day requirement and a loss occurred before you
asked us to insure the "newly ac- quired
auto", a Collision deductible of
$500 will apply.
c. Other Than Collision Coverage for a "newly
acquired auto" begins on the date you become the owner. However, for this coverage
to apply, you must ask us to insure it within:
(1) 14 days after you become the owner if the
Declarations indicate that Other Than
Collision Coverage applies to at least one
auto. In this case, the "newly acquired
auto" will have the broadest coverage we
now provide for any auto shown in the
Declarations.
(2) Four days after you become the owner if
the Declarations do not indicate that
Other Than Collision Coverage applies to
at least one auto. If you comply with the
4 day requirement and a loss oc- curred
before you asked us to insure the "newly
acquired auto", an Other Than Collision
deductible of $500 will apply.
PART A - LIABILITY COVERAGE
INSURING AGREEMENT
A. We will pay damages for "bodily injury" or "property
damage" for which any "insured" becomes legally
responsible because of an auto accident. Damages include prejudgment interest awarded against
the "insured". We will settle or defend, as we
consider appropriate, any claim or suit asking for
these damages. In addition to our limit of liabil- ity,
we will pay all defense costs we incur. Our duty to
settle or defend ends when our limit of liability for
this coverage has been exhausted by payment of
judgments or settlements. We have no duty to
defend any suit or settle any claim for "bodily injury" or "property damage" not covered under this
policy.
B. "Insured" as used in this Part means:
1. You or any "family member" for the ownership,
maintenance or use of any auto or "trailer".
2. Any person using "your covered auto".
3. For "your covered auto", any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom
coverage is afforded under this Part.
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4. For any auto or "trailer", other than "your
cov-
ered auto", any other person or organization but
only with respect to legal responsibility for acts
or omissions of you or any "family mem- ber" for
whom coverage is afforded under this Part. This
Provision (B.4.) applies only if the person or
organization does not own or hire the auto or
"trailer".
SUPPLEMENTARY PAYMENTS
We will pay on behalf of an "insured":
1. Up to $250 for the cost of bail bonds required
because of an accident, including related traffic
law violations. The accident must result in "bodily injury" or "property damage" covered under
this policy.
2. Premiums on appeal bonds and bonds to release attachments in any suit we defend.
3. Interest accruing after a judgment is entered in
any suit we defend. Our duty to pay interest
ends when we offer to pay that part of the
judgment which does not exceed our limit of liability for this coverage.
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4. Up to $200 a day for loss of earnings, but not
other income, because of attendance at hearings or trials at our request.
5. Other reasonable expenses incurred at our
request.
These payments will not reduce the limit of liability.
EXCLUSIONS
A. We do not provide Liability Coverage for any "insured":
1. Who intentionally causes "bodily injury" or
"property damage".
2. For "property damage" to property owned or
being transported by that "insured".
3. For "property damage" to property:
a. Rented to;
b. Used by; or
c. In the care of;
that "insured".
This Exclusion (A.3.) does not apply to "property damage" to a residence or private garage.
4. For "bodily injury" to an employee of that "insured" during the course of employment. This
Exclusion (A.4.) does not apply to "bodily injury"
to a domestic employee unless workers' compensation benefits are required or available for
that domestic employee.
5. For that "insured's" liability arising out of the
ownership or operation of a vehicle while it is
being used as a public or livery conveyance.
This Exclusion (A.5.) does not apply to a sharethe-expense car pool.
6. While employed or otherwise engaged in the
"business" of:
a. Selling;
b. Repairing;
c. Servicing;
d. Storing; or
e. Parking;
vehicles designed for use mainly on public
highways. This includes road testing and delivery. This Exclusion (A.6.) does not apply to the
ownership, maintenance or use of "your covered auto" by:
a. You;
b. Any "family member"; or
c. Any partner, agent or employee of you or
any "family member".
7. Maintaining or using any vehicle while that
"insured" is employed or otherwise engaged in
any "business" (other than farming or ranching)
not described in Exclusion A.6.
This Exclusion (A.7.) does not apply to the
maintenance or use of a:
a. Private passenger auto;
b. Pickup or van; or
c. "Trailer" used with a vehicle described in a.
or b. above.
8. Using a vehicle without a reasonable belief that
that "insured" is entitled to do so. This Exclusion (A.8.) does not apply to a "family member"
using "your covered auto" which is owned by
you.
9. For "bodily injury" or "property damage" for
which that "insured":
a. Is an insured under a nuclear energy liability
policy; or
b. Would be an insured under a nuclear energy liability policy but for its termination
upon exhaustion of its limit of liability.
A nuclear energy liability policy is a policy issued by any of the following or their successors:
a. Nuclear Energy Liability Insurance Association;
b. Mutual Atomic Energy Liability Underwriters;
or
c. Nuclear Insurance Association of Canada.
B. We do not provide Liability Coverage for the ownership, maintenance or use of:
1. Any vehicle which:
a. Has fewer than four wheels; or
b. Is designed mainly for use off public roads.
This Exclusion (B.1.) does not apply:
a. While such vehicle is being used by an
"insured" in a medical emergency;
b. To any "trailer"; or
c. To any non-owned golf cart.
2. Any vehicle, other than "your covered auto",
which is:
a. Owned by you; or
b. Furnished or available for your regular use.
3. Any vehicle, other than "your covered auto",
which is:
a. Owned by any "family member"; or
b. Furnished or available for the regular use of
any "family member".
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However, this Exclusion (B.3.) does not apply to
you while you are maintaining or "occupying"
any vehicle which is:
a. Owned by a "family member"; or
b. Furnished or available for the regular use of
a "family member".
4. Any vehicle, located inside a facility designed
for racing, for the purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed
contest.
LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for
each person for Bodily Injury Liability is our maximum limit of liability for all damages, including
damages for care, loss of services or death, arising out of "bodily injury" sustained by any one person in any one auto accident. Subject to this limit
for each person, the limit of liability shown in the
Declarations for each accident for Bodily Injury Liability is our maximum limit of liability for all damages for "bodily injury" resulting from any one auto
accident.
The limit of liability shown in the Declarations for
each accident for Property Damage Liability is our
maximum limit of liability for all "property damage"
resulting from any one auto accident.
This is the most we will pay regardless of the
number of:
1. "Insureds";
2. Claims made;
2. Any Underinsured Motorists Coverage provided
by this policy.
OUT OF STATE COVERAGE
If an auto accident to which this policy applies occurs
in any state or province other than the one in which
"your covered auto" is principally garaged, we will
interpret your policy for that accident as follows:
A. If the state or province has:
1. A financial responsibility or similar law specifying limits of liability for "bodily injury" or "property damage" higher than the limit shown in the
Declarations, your policy will provide the higher
specified limit.
2. A compulsory insurance or similar law requiring
a nonresident to maintain insurance whenever
the nonresident uses a vehicle in that state or
province, your policy will provide at least the
required minimum amounts and types of coverage.
B. No one will be entitled to duplicate payments for
the same elements of loss.
FINANCIAL RESPONSIBILITY
When this policy is certified as future proof of financial
responsibility, this policy shall comply with the law to
the extent required.
OTHER INSURANCE
If there is other applicable liability insurance we will pay
only our share of the loss. Our share is the pro- portion
that our limit of liability bears to the total of all applicable
limits. However, any insurance we provide for a vehicle
you do not own, including any vehicle while used as a
temporary substitute for "your covered auto", shall be
excess over any other collectible insur- ance.
3. Vehicles or premiums shown in the Declarations; or
4. Vehicles involved in the auto accident.
B. No one will be entitled to receive duplicate payments for the same elements of loss under this
coverage and:
1. Part B or Part C of this policy; or
PART B - MEDICAL PAYMENTS COVERAGE
INSURING AGREEMENT
A. We will pay reasonable expenses incurred for
necessary medical and funeral services because of
"bodily injury":
1. Caused by accident; and
2. Sustained by an "insured".
We will pay only those expenses incurred for services rendered within 3 years from the date of the
accident.
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B. "Insured" as used in this Part means:
1. You or any "family member":
a. While "occupying"; or
b. As a pedestrian when struck by;
a motor vehicle designed for use mainly on
public roads or a trailer of any type.
2. Any other person while "occupying" "your covered auto".
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EXCLUSIONS
We do not provide Medical Payments Coverage for
any "insured" for "bodily injury":
1. Sustained while "occupying" any motorized
vehicle having fewer than four wheels.
2. Sustained while "occupying" "your covered
auto" when it is being used as a public or livery
conveyance. This Exclusion (2.) does not apply
to a share-the-expense car pool.
3. Sustained while "occupying" any vehicle located for use as a residence or premises.
4. Occurring during the course of employment if
workers' compensation benefits are required or
available for the "bodily injury".
5. Sustained while "occupying", or when struck by,
any vehicle (other than "your covered auto")
which is:
a. Owned by you; or
b. Furnished or available for your regular use.
6. Sustained while "occupying", or when struck by,
any vehicle (other than "your covered auto")
which is:
a. Owned by any "family member"; or
b. Furnished or available for the regular use of
any "family member".
However, this Exclusion (6.) does not apply to
you.
7. Sustained while "occupying" a vehicle without a
reasonable belief that that "insured" is entitled to
do so. This Exclusion (7.) does not apply to a
"family member" using "your covered auto"
which is owned by you.
8. Sustained while "occupying" a vehicle when it is
being used in the "business" of an "insured".
This Exclusion (8.) does not apply to "bodily injury" sustained while "occupying" a:
a. Private passenger auto;
b. Pickup or van; or
c. "Trailer" used with a vehicle described in a.
or b. above.
10. From or as a consequence of the following,
whether controlled or uncontrolled or however
caused:
a. Nuclear reaction;
b. Radiation; or
c. Radioactive contamination.
11. Sustained while "occupying" any vehicle located inside a facility designed for racing, for the
purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed
contest.
LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for
this coverage is our maximum limit of liability for
each person injured in any one accident. This is the
most we will pay regardless of the number of:
1. "Insureds";
2. Claims made;
3. Vehicles or premiums shown in the Declarations; or
4. Vehicles involved in the accident.
B. No one will be entitled to receive duplicate payments for the same elements of loss under this
coverage and:
1. Part A or Part C of this policy; or
2. Any Underinsured Motorists Coverage provided
by this policy.
OTHER INSURANCE
If there is other applicable auto medical payments
insurance we will pay only our share of the loss. Our
share is the proportion that our limit of liability bears to
the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not
own, including any vehicle while used as a temporary
substitute for "your covered auto", shall be excess over
any other collectible auto insurance providing
payments for medical or funeral expenses.
9. Caused by or as a consequence of:
a. Discharge of a nuclear weapon (even if
accidental);
b. War (declared or undeclared);
c. Civil war;
d. Insurrection; or
e. Rebellion or revolution.
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PART C - UNINSURED MOTORISTS COVERAGE
INSURING AGREEMENT
A. We will pay compensatory damages which an
"insured" is legally entitled to recover from the
owner or operator of an "uninsured motor vehicle"
because of "bodily injury":
1. Sustained by an "insured"; and
2. Caused by an accident.
2. Owned or operated by a self-insurer under any
applicable motor vehicle law, except a selfinsurer which is or becomes insolvent.
3. Owned by any governmental unit or agency.
4. Operated on rails or crawler treads.
5. Designed mainly for use off public roads while
not on public roads.
The owner's or operator's liability for these damages must arise out of the ownership, maintenance or use of the "uninsured motor vehicle".
6. While located for use as a residence or premises.
EXCLUSIONS
Any judgment for damages arising out of a suit
brought without our written consent is not binding
on us.
B. "Insured" as used in this Part means:
A. We do not provide Uninsured Motorists Coverage
for "bodily injury" sustained:
2. Any other person "occupying" "your covered
auto".
1. By an "insured" while "occupying", or when
struck by, any motor vehicle owned by that "insured" which is not insured for this coverage
under this policy. This includes a trailer of any
type used with that vehicle.
3. Any person for damages that person is entitled
to recover because of "bodily injury" to which
this coverage applies sustained by a person
described in 1. or 2. above.
2. By any "family member" while "occupying", or
when struck by, any motor vehicle you own
which is insured for this coverage on a primary
basis under any other policy.
C. "Uninsured motor vehicle" means a land motor
vehicle or trailer of any type:
B. We do not provide Uninsured Motorists Coverage
for "bodily injury" sustained by any "insured":
1. To which no bodily injury liability bond or policy
applies at the time of the accident.
1. If that "insured" or the legal representative
settles the "bodily injury" claim and such settlement prejudices our right to recover payment.
1. You or any "family member".
2. To which a bodily injury liability bond or policy
applies at the time of the accident. In this case
its limit for bodily injury liability must be less than
the minimum limit for bodily injury liability
specified by the financial responsibility law of the
state in which "your covered auto" is princi- pally
garaged.
3. Which is a hit-and-run vehicle whose operator
or owner cannot be identified and which hits:
a. You or any "family member";
b. A vehicle which you or any "family member"
are "occupying"; or
c. "Your covered auto".
4. To which a bodily injury liability bond or policy
applies at the time of the accident but the bonding or insuring company:
a. Denies coverage; or
2. While "occupying" "your covered auto" when it
is being used as a public or livery conveyance.
This Exclusion (B.2.) does not apply to a sharethe-expense car pool.
3. Using a vehicle without a reasonable belief that
that "insured" is entitled to do so. This Exclusion (B.3.) does not apply to a "family member"
using "your covered auto" which is owned by
you.
C. This coverage shall not apply directly or indirectly to
benefit any insurer or self-insurer under any of the
following or similar law:
1. Workers' compensation law; or
2. Disability benefits law.
D. We do not provide Uninsured Motorists Coverage
for punitive or exemplary damages.
b. Is or becomes insolvent.
However, "uninsured motor vehicle" does not include any vehicle or equipment:
1. Owned by or furnished or available for the
regular use of you or any "family member".
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LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for
each person for Uninsured Motorists Coverage is
our maximum limit of liability for all damages, including damages for care, loss of services or death,
arising out of "bodily injury" sustained by any one
person in any one accident. Subject to this limit for
each person, the limit of liability shown in the
Declarations for each accident for Uninsured
Motorists Coverage is our maximum limit of liability
for all damages for "bodily injury" resulting from any
one accident.
This is the most we will pay regardless of the
number of:
1. "Insureds";
2. Claims made;
3. Vehicles or premiums shown in the Declarations; or
4. Vehicles involved in the accident.
B. No one will be entitled to receive duplicate payments for the same elements of loss under this
coverage and:
1. Part A or Part B of this policy; or
2. Any Underinsured Motorists Coverage provided
by this policy.
C. We will not make a duplicate payment under this
coverage for any element of loss for which payment has been made by or on behalf of persons or
organizations who may be legally responsible.
D. We will not pay for any element of loss if a person
is entitled to receive payment for the same element of loss under any of the following or similar
law:
1. Workers' compensation law; or
2. Disability benefits law.
OTHER INSURANCE
If there is other applicable insurance available under
one or more policies or provisions of coverage that is
similar to the insurance provided under this Part of the
policy:
1. Any recovery for damages under all such policies or provisions of coverage may equal but not
exceed the highest applicable limit for any one
vehicle under any insurance providing coverage on either a primary or excess basis.
2. Any insurance we provide with respect to a
vehicle you do not own, including any vehicle
while used as a temporary substitute for "your
covered auto", shall be excess over any collectible insurance providing such coverage on a
primary basis.
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3. If the coverage under this policy is provided:
a. On a primary basis, we will pay only our
share of the loss that must be paid under
insurance providing coverage on a primary
basis. Our share is the proportion that our
limit of liability bears to the total of all applicable limits of liability for coverage provided
on a primary basis.
b. On an excess basis, we will pay only our
share of the loss that must be paid under
insurance providing coverage on an excess
basis. Our share is the proportion that our
limit of liability bears to the total of all applicable limits of liability for coverage provided
on an excess basis.
ARBITRATION
A. If we and an "insured" do not agree:
1. Whether that "insured" is legally entitled to
recover damages; or
2. As to the amount of damages which are recoverable by that "insured";
from the owner or operator of an "uninsured motor
vehicle", then the matter may be arbitrated. However, disputes concerning coverage under this Part
may not be arbitrated.
Both parties must agree to arbitration. If so agreed,
each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within
30 days, either may request that selection be made
by a judge of a court having jurisdiction.
B. Each party will:
1. Pay the expenses it incurs; and
2. Bear the expenses of the third
equally.
arbitrator
C. Unless both parties agree otherwise, arbitration will
take place in the county in which the "insured" lives.
Local rules of law as to procedure and evi- dence
will apply. A decision agreed to by at least two of
the arbitrators will be binding as to:
1. Whether the "insured" is legally entitled to recover damages; and
2. The amount of damages. This applies only if the
amount does not exceed the minimum limit for
bodily injury liability specified by the financial
responsibility law of the state in which "your
covered auto" is principally garaged. If the
amount exceeds that limit, either party may
demand the right to a trial. This demand must be
made within 60 days of the arbitrators' decision. If this demand is not made, the amount of
damages agreed to by the arbitrators will be
binding.
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PART D - COVERAGE FOR DAMAGE TO YOUR AUTO
INSURING AGREEMENT
d. Loss; or
A. We will pay for direct and accidental loss to "your
covered auto" or any "non-owned auto", including
their equipment, minus any applicable deductible
shown in the Declarations. If loss to more than one
"your covered auto" or "non-owned auto" re- sults
from the same "collision", only the highest
applicable deductible will apply. We will pay for
loss to "your covered auto" caused by:
e. Destruction.
1. Other than "collision" only if the Declarations
indicate that Other Than Collision Coverage is
provided for that auto.
2. "Collision" only if the Declarations indicate that
Collision Coverage is provided for that auto.
If there is a loss to a "non-owned auto", we will
provide the broadest coverage applicable to any
"your covered auto" shown in the Declarations.
B. "Collision" means the upset of "your covered
auto" or a "non-owned auto" or their impact with
another vehicle or object.
Loss caused by the following is considered other
than "collision":
1. Missiles or falling objects;
2. Fire;
3. Theft or larceny;
4. Explosion or earthquake;
5. Windstorm;
6. Hail, water or flood;
7. Malicious mischief or vandalism;
8. Riot or civil commotion;
9. Contact with bird or animal; or
10. Breakage of glass.
If breakage of glass is caused by a "collision", you
may elect to have it considered a loss caused by
"collision".
C. "Non-owned auto" means:
1. Any private passenger auto, pickup, van or
"trailer" not owned by or furnished or available
for the regular use of you or any "family member" while in the custody of or being operated
by you or any "family member"; or
2. Any auto or "trailer" you do not own while used
as a temporary substitute for "your cov- ered
auto" which is out of normal use because of its:
a. Breakdown;
TRANSPORTATION EXPENSES
A. In addition, we will pay, without application of a
deductible, up to a maximum of $600 for:
1. Temporary transportation expenses not exceeding $20 per day incurred by you in the
event of a loss to "your covered auto". We will
pay for such expenses if the loss is caused by:
a. Other than "collision" only if the Declarations indicate that Other Than Collision
Coverage is provided for that auto.
b. "Collision" only if the Declarations indicate
that Collision Coverage is provided for that
auto.
2. Expenses for which you become legally responsible in the event of loss to a "non-owned
auto". We will pay for such expenses if the loss
is caused by:
a. Other than "collision" only if the Declarations indicate that Other Than Collision
Coverage is provided for any "your covered auto".
b. "Collision" only if the Declarations indicate
that Collision Coverage is provided for any
"your covered auto".
However, the most we will pay for any expenses for loss of use is $20 per day.
B. Subject to the provisions of Paragraph A., if the
loss is caused by:
1. A total theft of "your covered auto" or a "nonowned auto", we will pay only expenses incurred during the period:
a. Beginning 48 hours after the theft; and
b. Ending when "your covered auto" or the
"non-owned auto" is returned to use or we
pay for its loss.
2. Other than theft of a "your covered auto" or a
"non-owned auto", we will pay only expenses
beginning when the auto is withdrawn from use
for more than 24 hours.
Our payment will be limited to that period of time
reasonably required to repair or replace the "your
covered auto" or the "non-owned auto".
b. Repair;
c. Servicing;
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EXCLUSIONS
We will not pay for:
1. Loss to "your covered auto" or any "nonowned auto" which occurs while it is being
used as a public or livery conveyance. This
Exclusion (1.) does not apply to a share-theexpense car pool.
2. Damage due and confined to:
a. Wear and tear;
b. Freezing;
c. Mechanical or electrical breakdown or
failure; or
d. Road damage to tires.
This Exclusion (2.) does not apply if the damage results from the total theft of "your covered auto" or any "non-owned auto".
3. Loss due to or as a consequence of:
a. Radioactive contamination;
b. Discharge of any nuclear weapon (even if
accidental);
c. War (declared or undeclared);
d. Civil war;
e. Insurrection; or
f. Rebellion or revolution.
4. Loss to any electronic equipment that reproduces, receives or transmits audio, visual or
data signals. This includes but is not limited to:
a. Radios and stereos;
b. Tape decks;
c. Compact disk systems;
d. Navigation systems;
e. Internet access systems;
f. Personal computers;
g. Video entertainment systems;
h. Telephones;
6. A total loss to "your covered auto" or any "nonowned auto" due to destruction or confiscation by governmental or civil authorities.
This Exclusion (6.) does not apply to the interests of Loss Payees in "your covered auto".
7. Loss to:
a. A "trailer", camper body, or motor home,
which is not shown in the Declarations; or
b. Facilities or equipment used with such
"trailer", camper body or motor home. Facilities or equipment include but are not
limited to:
(1) Cooking, dining, plumbing or refrigeration facilities;
(2) Awnings or cabanas; or
(3) Any other facilities or equipment used
with a "trailer", camper body, or motor
home.
This Exclusion (7.) does not apply to a:
a. "Trailer", and its facilities or equipment,
which you do not own; or
b. "Trailer", camper body, or the facilities or
equipment in or attached to the "trailer" or
camper body, which you:
(1) Acquire during the policy period; and
(2) Ask us to insure within 14 days after you
become the owner.
8. Loss to any "non-owned auto" when used by
you or any "family member" without a reasonable belief that you or that "family member" are
entitled to do so.
9. Loss to equipment designed or used for the
detection or location of radar or laser.
10. Loss to any custom furnishings or equipment
in or upon any pickup or van. Custom furnishings or equipment include but are not limited
to:
a. Special carpeting or insulation;
i. Televisions;
b. Furniture or bars;
j. Two-way mobile radios;
c. Height-extending roofs; or
k. Scanners; or
d. Custom murals, paintings or other decals
or graphics.
I. Citizens band radios.
This Exclusion (4.) does not apply to electronic equipment that is permanently installed
in "your covered auto" or any "non-owned
auto".
5. Loss to tapes, records, disks or other media
used with equipment described in Exclusion 4.
This Exclusion (10.) does not apply to a cap,
cover or bedliner in or upon any "your covered
auto" which is a pickup.
11. Loss to any "non-owned auto" being maintained or used by any person while employed
or otherwise engaged in the "business" of:
a. Selling;
b. Repairing;
PP 00 01 01 05
Page 9 of 13
c. Servicing;
d. Storing; or
e. Parking;
vehicles designed for use on public highways.
This includes road testing and delivery.
12. Loss to "your covered auto" or any "nonowned auto", located inside a facility designed
for racing, for the purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed
contest.
13. Loss to, or loss of use of, a "non-owned auto"
rented by:
a. You; or
b. Any "family member";
if a rental vehicle company is precluded from
recovering such loss or loss of use, from you
or that "family member", pursuant to the provisions of any applicable rental agreement or
state law.
LIMIT OF LIABILITY
A. Our limit of liability for loss will be the lesser of the:
1. Actual cash value of the stolen or damaged
property; or
2. Amount necessary to repair or replace the
property with other property of like kind and
quality.
However, the most we will pay for loss to:
1. Any "non-owned auto" which is a trailer is
$1500.
2. Electronic equipment that reproduces, receives or transmits audio, visual or data signals, which is permanently installed in the auto
in locations not used by the auto manufacturer for installation of such equipment, is
$1,000.
B. An adjustment for depreciation and physical
condition will be made in determining actual cash
value in the event of a total loss.
C. If a repair or replacement results in better than like
kind or quality, we will not pay for the amount of
the betterment.
Page 10 of 13
PAYMENT OF LOSS
We may pay for loss in money or repair or replace the
damaged or stolen property. We may, at our expense,
return any stolen property to:
1. You; or
2. The address shown in this policy.
If we return stolen property we will pay for any damage resulting from the theft. We may keep all or part
of the property at an agreed or appraised value.
If we pay for loss in money, our payment will include
the applicable sales tax for the damaged or stolen
property.
NO BENEFIT TO BAILEE
This insurance shall not directly or indirectly benefit
any carrier or other bailee for hire.
OTHER SOURCES OF RECOVERY
If other sources of recovery also cover the loss, we
will pay only our share of the loss. Our share is the
proportion that our limit of liability bears to the total of
all applicable limits. However, any insurance we
provide with respect to a "non-owned auto" shall be
excess over any other collectible source of recovery
including, but not limited to:
1. Any coverage provided by the owner of the
"non-owned auto";
2. Any other applicable physical damage insurance;
3. Any other source of recovery applicable to the
loss.
APPRAISAL
A. If we and you do not agree on the amount of loss,
either may demand an appraisal of the loss. In this
event, each party will select a competent and
impartial appraiser. The two appraisers will select
an umpire. The appraisers will state separately the
actual cash value and the amount of loss. If they
fail to agree, they will submit their differ- ences to
the umpire. A decision agreed to by any two will
be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire equally.
B. We do not waive any of our rights under this
policy by agreeing to an appraisal.
PP 00 01 01 05
PART E - DUTIES AFTER AN ACCIDENT OR LOSS
We have no duty to provide coverage under this policy
if the failure to comply with the following duties is
prejudicial to us:
A. We must be notified promptly of how, when and
where the accident or loss happened. Notice should
also include the names and addresses of any
injured persons and of any witnesses.
B. A person seeking any coverage must:
1. Cooperate with us in the investigation, settlement or defense of any claim or suit.
2. Promptly send us copies of any notices or legal
papers received in connection with the accident
or loss.
3. Submit, as often as we reasonably require:
a. To physical exams by physicians we select.
We will pay for these exams.
b. To examination under oath and subscribe
the same.
4. Authorize us to obtain:
b. Other pertinent records.
5. Submit a proof of loss when required by us.
C. A person seeking Uninsured Motorists Coverage
must also:
1. Promptly notify the police if a hit-and-run driver
is involved.
2. Promptly send us copies of the legal papers if a
suit is brought.
D. A person seeking Coverage For Damage To Your
Auto must also:
1. Take reasonable steps after loss to protect "your
covered auto" or any "non-owned auto" and
their equipment from further loss. We will pay
reasonable expenses incurred to do this.
2. Promptly notify the police if "your covered auto"
or any "non-owned auto" is stolen.
3. Permit us to inspect and appraise the damaged
property before its repair or disposal.
a. Medical reports; and
PART F - GENERAL PROVISIONS
BANKRUPTCY
Bankruptcy or insolvency of the "insured" shall not
relieve us of any obligations under this policy.
CHANGES
A. This policy contains all the agreements between
you and us. Its terms may not be changed or waived
except by endorsement issued by us.
B. If there is a change to the information used to
develop the policy premium, we may adjust your
premium. Changes during the policy term that may
result in a premium increase or decrease include,
but are not limited to, changes in:
1. The number, type or use classification of insured vehicles;
2. Operators using insured vehicles;
3. The place of principal garaging of insured vehicles;
4. Coverage, deductible or limits.
If a change resulting from A. or B. requires a premium
adjustment, we will make the premium adjustment in
accordance with our manual rules.
C. If we make a change which broadens coverage
under this edition of your policy without additional
premium charge, that change will automatically
apply to your policy as of the date we implement the
change in your state. This Paragraph (C.) does not
apply to changes implemented with a general
program revision that includes both broadenings
and restrictions in coverage, whether that general
program revision is implemented through introduction of:
1. A subsequent edition of your policy; or
2. An Amendatory Endorsement.
FRAUD
We do not provide coverage for any "insured" who has
made fraudulent statements or engaged in fraudulent
conduct in connection with any accident or loss for
which coverage is sought under this policy.
LEGAL ACTION AGAINST US
A. No legal action may be brought against us until
there has been full compliance with all the terms of
this policy. In addition, under Part A, no legal action may be brought against us until:
1. We agree in writing that the "insured" has an
obligation to pay; or
2. The amount of that obligation has been finally
determined by judgment after trial.
PP 00 01 01 05
Page 11 of 13
B. No person or organization has any right under this
policy to bring us into any action to determine the
liability of an "insured".
OUR RIGHT TO RECOVER PAYMENT
(2) If notice is mailed during the first 60 days
this policy is in effect and this is not a
renewal or continuation policy; or
b. At least 20 days notice in all other cases.
A. If we make a payment under this policy and the
person to or for whom payment was made has a
right to recover damages from another we shall be
subrogated to that right. That person shall do:
3. After this policy is in effect for 60 days, or if this
is a renewal or continuation policy, we will cancel only:
a. For nonpayment of premium; or
b. If your driver's license or that of:
1. Whatever is necessary to enable us to exercise
our rights; and
2. Nothing after loss to prejudice them.
However, our rights in this Paragraph (A.) do not
apply under Part D, against any person using "your
covered auto" with a reasonable belief that that
person is entitled to do so.
B. If we make a payment under this policy and the
person to or for whom payment is made recovers
damages from another, that person shall:
1. Hold in trust for us the proceeds of the recovery; and
2. Reimburse us to the extent of our payment.
POLICY PERIOD AND TERRITORY
A. This policy applies only to accidents and losses
which occur:
1. During the policy period as shown in the Declarations; and
2. Within the policy territory.
B. The policy territory is:
1. The United States of America, its territories or
possessions;
2. Puerto Rico; or
3. Canada.
This policy also applies to loss to, or accidents involving, "your covered auto" while being transported between their ports.
TERMINATION
A. CanceIIation
This policy may be cancelled during the policy period as follows:
1. The named insured shown in the Declarations
may cancel by:
a. Returning this policy to us; or
b. Giving us advance written notice of the date
cancellation is to take effect.
2. We may cancel by mailing to the named insured shown in the Declarations at the address
shown in this policy:
a. At least 10 days notice:
(1) Any driver who lives with you; or
(2) Any driver who customarily uses "your
covered auto";
has been suspended or revoked. This must
have occurred:
(1) During the policy period; or
(2) Since the last anniversary of the original
effective date if the policy period is other
than 1 year; or
c. If the policy was obtained through material
misrepresentation.
B. NonrenewaI
If we decide not to renew or continue this policy, we
will mail notice to the named insured shown in the
Declarations at the address shown in this pol- icy.
Notice will be mailed at least 20 days before the end
of the policy period. Subject to this notice
requirement, if the policy period is:
1. Less than 6 months, we will have the right not to
renew or continue this policy every 6 months,
beginning 6 months after its original effective
date.
2. 6 months or longer, but less than one year, we
will have the right not to renew or continue this
policy at the end of the policy period.
3. 1 year or longer, we will have the right not to
renew or continue this policy at each anniversary of its original effective date.
C. Automatic Termination
If we offer to renew or continue and you or your
representative do not accept, this policy will automatically terminate at the end of the current policy
period. Failure to pay the required renewal or continuation premium when due shall mean that you
have not accepted our offer.
If you obtain other insurance on "your covered
auto", any similar insurance provided by this policy
will terminate as to that auto on the effective date of
the other insurance.
(1) If cancellation is for nonpayment of
premium; or
Page 12 of 13
PP 00 01 01 05
D. Other Termination Provisions
1. We may deliver any notice instead of mailing it.
Proof of mailing of any notice shall be sufficient
proof of notice.
2. If this policy is cancelled, you may be entitled to
a premium refund. If so, we will send you the
refund. The premium refund, if any, will be
computed according to our manuals. However,
making or offering to make the refund is not a
condition of cancellation.
3. The effective date of cancellation stated in the
notice shall become the end of the policy period.
TRANSFER OF YOUR INTEREST IN THIS POLICY
2. The legal representative of the deceased person as if a named insured shown in the Declarations. This applies only with respect to the
representative's legal responsibility to maintain
or use "your covered auto".
B. Coverage will only be provided until the end of the
policy period.
TWO OR MORE AUTO POLICIES
If this policy and any other auto insurance policy issued to you by us apply to the same accident, the
maximum limit of our liability under all the policies shall
not exceed the highest applicable limit of liability under
any one policy.
A. Your rights and duties under this policy may not be
assigned without our written consent. However, if a
named insured shown in the Declarations dies,
coverage will be provided for:
1. The surviving spouse if resident in the same
household at the time of death. Coverage applies to the spouse as if a named insured shown
in the Declarations; and
PP 00 01 01 05
Page 13 of 13
Review the Sample Homeowners Insurance Policy and answer the following questions. Answer each
question in 200- to 250-words:
Question
Answer
Will a detached garage be
covered?
To what degree are credit and
debit card losses covered?
A plumber working at your home
is injured, is he covered?
You find mold, fungus, and wet
rot in your attic, what are the
policy provisions?
What are the policy limits on
liability?
Review the Sample Auto Insurance Policy and answer the following questions. Answer each question in
200- to 250-words:
Question
Answer
When does the coverage begin
on a newly acquired auto?
Explain the time limit on medical
claims incurred by the insured?
You use your auto in a sharethe-expense car pool. Are you
covered by the uninsured
motorist provision?
You have an auto accident on
the way to work and you laptop
computer is destroyed, is it
covered?
Your driver’s license is
suspended for one year, what is
your status with the auto?
Identify and briefly describe the seven broad classes of property and liability insurance for business
firms.
#
Insurance Type
Insurance Type Description
HOMEOWNERS POLICY
Homeowners Policy Declarations
POLICYHOLDER
(Named Insured
Mark L. and Dianna Jones
2900 Palisade Drive
Anytown, Anystate 12000
POLICY PERIOD
Inception
Expiration
POLICY NUMBER
April 1, 2005
April 1, 2006
00123 456
Policy period begins at 12:01 A.M.
standard time at the residence premises
FIRST MORGAGEE AND MAILING ADDRESS
Bob’s Bank
N 4552 Main Street
Anytown, Anystate 12000
We will provide the described in this policy in return for the premium and compliance with the
applicable policy provisions.
SECTION I COVERAGES
LIMIT
$200,000
20,000
100,000
40,000
A—Dwelling
B—Other Structures
C—Personal Property
D—Loss of Use
SECTION II COVERAGES
E—Personal Liability
F—Medical Payments to Others
CONSTRUCTION: Frame
YEAR BUILT
1990
SECTION I DEDUCTIBLE $ 250
(In case of loss under Section I, we
cover only that part of the loss over
the deductible shown above.
300,000
1,000
NO. OF FAMILIES
PROTECTION CLASS
One
TYPE ROOF:
Approved
FIRE DISTRICT Johnson Township
NOT MORE THAN 1000 FEET FROM HYDRANT
NOT MORE THAN 5 MILES FROM FIRE DEPT.
FORMS AND ENDORSEMENTS IN POLIICY
POLICY PREMIUM
COUNTERSIGNATURE DATE
$ 455
March 15, 2002
HO 00 03, HO 04 54, HO 04 61, HO 24 82
AGENT:
Tom Jefferson
HOMEOWNERS
HO 00 03 10 00
HOMEOWNERS 3 SPECIAL FORM
AGREEMENT
2.
We will provide the insurance described in this policy in
return for the premium and compliance with all
applicable provisions of this policy.
“Bodily injury” means bodily harm, sickness or
disease, including required care, loss of
services and death that results.
3.
“Business” means:
a.
A trade, profession or occupation engaged
in on a full-time, part-time or occasional
basis; or
b.
Any other activity engaged in for money
or other compensation,
except the
following:
DEFINITIONS
A. In this policy, “you” and “your” refer to the “named
insured” shown in the Declarations and the spouse
if a resident of the same household. “We”, “us” and
“our” refer to the Company providing this insurance.
SAMPLE
(1) One or more activities, not described
in (2) through (4) below, for which no
“insured” receives more than $2,000 in
total
compensation
for the of
12the
months
before the beginning
B. In addition, certain words and phrases are defined
as follows:
1. “Aircraft Liability”, “Hovercraft Liability”, “Motor
Vehicle Liability” and “Watercraft Liability”,
subject to the provisions in b. below, mean
the following:
a.
policy period;
(2) Volunteer activities for which no money
is received other than payment for
expenses incurred to perform the
activity;
Liability for “bodily injury” or “property
damage” arising out of the:
(1) Ownership of such vehicle or craft by
an “insured”;
(3) Providing home day care services for
which no compensation is received,
other than the mutual exchange of
such services; or
(2) Maintenance, occupancy, operation,
use, loading or unloading of such
vehicle or craft by any person;
(3) Entrustment of such vehicle or craft by
an “insured” to any person;
(4) The rendering of home day care
services to a relative of an “insured”.
4.
“Employee” means an employee of an
“insured”, or an employee leased to an
“insured” by a labor leasing firm under an
agreement between an “insured” and the labor
leasing firm, whose duties are other than those
performed by a “residence employee”.
5.
“Insured” means:
(4) Failure to supervise or negligent
supervision of any person involving such
vehicle or craft by an “insured”; or
(5) Vicarious liability, whether or not
imposed by law, for the actions of a
child or minor involving such vehicle or
craft.
b.
a.
For the purpose of this definition:
(1) Aircraft means any contrivance used
or designed for flight except model or
hobby aircraft not used or designed to
carry people or cargo;
(2) Hovercraft means a self-propelled
motorized ground effect vehicle and
includes, but is not limited to, flarecraft
and air cushion vehicles;
(3) Watercraft means a craft principally
designed to be propelled on or in water
by wind, engine power or electric
motor; and
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 resident
of your household before moving out to
attend 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 a.(1) above; or
(4) Motor vehicle means a
“motor
vehicle” as defined in 7. below.
HO 00 03 10 00
Page 1 of 22
c.
h. Any part of a premises occasionally rented to
an “insured” for other than “business” use.
Under Section II:
(1) With respect to animals or watercraft to
which this policy applies, any person or
organization legally responsible for these
animals or watercraft which are owned by
you or any person included in a. or b.
above. “Insured” does not mean a person
or organization using or having custody of
these animals or watercraft in the course of
any “business” or without consent of the
owner; or
(2) With respect to a “motor vehicle” to which
this policy applies:
(a) Persons while engaged in your employ
or that of any person included in a. or
b. above; or
(b) Other persons using the vehicle on an
“insured location” with your consent.
Under both Sections I and II, when the word an
immediately
precedes
themean
wordone
“insured”,
words an “insured”
together
or more the
“insureds”.
6.
7. “Motor vehicle” means:
a.
A self-propelled land or amphibious vehicle; or
b.
Any trailer or semitrailer which is being carried
on, towed by or hitched for towing by a vehicle
described in a. above.
8. “Occurrence” means an accident, including
continuous or repeated exposure to substantially
the same general harmful conditions, which
results, during the policy period, in:
a.
“Bodily injury”; or
b.
“Property damage”.
9. “Property damage” means physical injury to,
destruction of, or loss of use of tangible property.
10. “Residence employee” means:
a. An employee of an “insured”,
SAMPLE
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 residence;
c.
Any premises used by you in connection with a
premises described in a. and b. above;
d.
Any part of a premises:
(1) Not owned by an “insured”; and
g.
leasing firm, under an agreement between an
“insured” and the labor leasing firm, whose
duties are related to the maintenance or use
of the “residence premises”, including
household or domestic services; or
b. One who performs similar duties elsewhere not
related to the “business” of an “insured”.
A “residence employee” does not include a
temporary employee who is furnished to an
“insured” to substitute for a permanent “residence
employee” on leave or to meet seasonal or short term workload conditions.
11. “Residence premises” means:
a.
The one family dwelling where you reside;
b.
Vacant land, other than farm land, owned by
or rented to an “insured”;
The two, three or four family dwelling where
you reside in at least one of the family units; or
c.
Land owned by or rented to an “insured” on
which a one, two, three or four family dwelling
is being built as a residence for an “insured”;
That part of any other building where you
reside;
and which is shown as the “residence premises” in
the Declarations.
Individual or family cemetery plots or burial
vaults of an “insured”; or
“Residence premises” also includes
structures and grounds at that location.
(2) Where an
residing;
f.
an
employe e leased to an “insured” by a labor
“Insured location” means:
e.
or
Page 2 of 22
“insured”
is
temporarily
other
HO 00 03 10 00
C. Coverage C — Personal Property
DEDUCTIBLE
1.
Unless otherwise noted in this policy, the following
deductible provision applies:
Covered Property
We cover personal property owned or used by
an “insured” while it is anywhere in the world.
After a loss and at your request, we will cover
personal property owned by:
Subject to the policy limits that apply, we will pay only
that part of the total of all loss payable under Section I
that exceeds the deductible amount shown in the
Declarations.
a.
Others while the property is on the part of
the “residence premises” occupied by an
“insured”; or
b.
A guest or a “residence employee”, while
the property is in any residence occupied
by an “insured”.
SECTION I - PROPERTY COVERAGES
A. Coverage A — Dwelling
1.
We cover:
a.
b.
2.
The dwelling on the “residence premises”
shown in the Declarations, including
structures attached to the dwelling; and
2.
Limit For Property At Other Residences
Our limit of liability for personal property usually
located at an “insured’s” residence, other than
the “residence premises”, is 10% of the limit of
liability for Coverage C, or $1,000, whichever
is greater. However, this limitation does not
apply to personal property:
a. Moved from the “residence premises”
SAMPLE
Materials and supplies located on or next to
the “residence premises” used to construct,
alter or repair the dwelling or other structures
on the “residence premises”.
We do not cover land, including land on which
the dwelling is located.
because it is being repaired, renovated or
rebuilt and is not fit to live in or store
property in; or
B. Coverage B — Other Structures
1.
2.
We cover other structures on the “residence
premises” set apart from the dwelling by clear
space. This includes structures connected to
the dwelling by only a fence, utility line, or
similar connection.
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, unless
used solely as a private garage;
c.
Other structures from which any “business” is
conducted; or
d.
Other structures used to store “business”
property. However, we do cover a structure
that contains “business” property solely
owned by an “insured” or a tenant of the
dwelling provided that “business” property
does not include gaseous or liquid fuel, other
than fuel in a permanently installed fuel tank
of a vehicle or craft parked or stored in the
structure.
3.
The limit of liability for this coverage will not be
more than 10% of the limit of liability that
applies to Coverage A. Use of this coverage
does not reduce the Coverage A limit of
liability.
HO 00 03 10 00
b.
3.
In a newly acquired principal residence for
30 days from the time you begin to move
the property there.
Special Limits Of Liability
The special limit for each category shown below is
the total limit for each loss for all property in that
category. These special limits do not increase the
Coverage C limit of liability.
a.
$200 on money, bank notes, bullion, gold
other than goldware, silver other silverware,
platinum other 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,
personal records, passports, tickets and
stamps. This dollar limit applies to these
categories regardless of the medium (such
as paper or computer software) on which
the material exists.
This limit includes the cost to research, replace
or restore the information from the lost or
damaged material.
Page 3 of 22
c.
$1,500 on watercraft of all types, including their
trailers, furnishings, equipment and outboard
engines or motors.
d.
$1,500 on trailers or semitrailers not used with
watercraft of all types.
e.
$1,500 for loss by theft of jewelry, watches,
furs, precious and semiprecious stones.
f.
$2,500 for loss by theft of firearms and related
equipment.
g.
$2,500 for loss by theft of silverware, silverplated ware, goldware, gold-plated ware
platinumware, platinum-plated ware and
pewterware.
This
includes
flatware,
hollowware, tea sets, trays and trophies made
of or including silver, gold or pewter.
Animals, birds or fish;
c.
“Motor vehicles”.
(1) This includes:
(a) Their accessories, equipment and
parts; or
(b) Electronic apparatus and accessories
designed to be operated solely by
power from the electrical system of the
“motor vehicle”. Accessories include
antennas, tapes, wires, records, discs
or other media that can be used with
any apparatus described above.
The exclusion of property described in (a)
and (b) above applies only while such
property is in or upon the “motor vehicle”.
h.
$2,500 on property, on the
premises”, used primarily for
purposes.
“residence
“business”
(2) We do cover “motor vehicles” not required
to be registered for use on public roads or
property which are:
i.
$500 on property, away from the “residence
premises”, used primarily for “business”
(a) Used solely to service an “insured’s”
residence; or
purposes. However, this limit does not apply
to loss to electronic apparatus and other
property described in Categories j. and k.
below.
j.
k.
(b) Designed to as sist the handicapped;
SAMPLE
$1,500
on
electronic
apparatus
and
accessories, while in or upon a “motor vehicle”,
but only if the apparatus is equipped to be
operated by power from the “motor vehicle’s”
electrical system while still capable of being
operated by other power sources.
Accessories include antennas, tapes, wires,
records, discs or other media that can be used
with any apparatus described in this Category
j.
$1,500
on
electronic
apparatus
and
accessories used primarily for “business” while
away from the “residence premises” and not in
or upon a “motor vehicle”. The apparatus must
be equipped to be operated by power from the
“motor vehicle’s” electrical system while still
capable of being operated by other power
sources.
Accessories include antennas, tapes, wires,
records, discs or other media that can be used
with any apparatus described in this Category
k.
4.
b.
d.
Aircraft meaning any contrivance used or
designed for flight including any parts
whether or not attached to the aircraft.
We do cover model or hobby aircraft not
used or designed to carry people or cargo;
e.
Hovercraft and parts. Hovercraft means a
self-propelled motorized ground effect
vehicle and includes, but is not limited to,
flarecraft and air cushion vehicles;
f.
Property of roomers, boarders and other
tenants, except property of roomers and
boarders related to an “insured”;
g.
Property in an apartment regularly rented
or held for rental to others by an “insured”,
except as provided in E.10. Landlord’s
Furnishings under Section I — Property
Coverages;
h.
Property rented or held for rental to others
off the “residence premises”;
i.
“Business” data, including such data stored
in:
Property Not Covered
(1) Books of account, drawings or other
paper records; or
We do not cover:
(2) Computers and related equipment.
a.
We do cover the cost of blank recording or
storage media, and of prerecorded
computer programs available on the retail
market;
Articles separately described and specifically
insured, regardless of the limit for which they
are insured, in this or other insurance;
Page 4 of 22
HO 00 03 10 00
j.
k.
Credit cards, electronic fund transfer cards
or access devices used solely for deposit,
withdrawal or transfer of funds except as
provided in E.6. Credit Card, Electronic
Fund Transfer Card Or Access Device,
Forgery And Counterfeit Money under
Section I — Property Coverages; or
E. Additional Coverages
1.
Debris Removal
a.
(1) Debris of cove red property if a Peril
Insured Against that applies to the
damaged property causes the loss; or
Water or steam.
D. Coverage D – Loss of Use
(2) Ash, dust or particles from a volcanic
eruption that has caused direct loss to
a building or property contained in a
building.
The limit of liability for Coverage D is the total limit
for the coverages in 1. Additional Living Expense,
2. Fair Rental Value and 3. Civil Authority
Prohibits Use below.
1.
We will pay your reasonable expense for
the removal of:
Additional Living Expense
This expense is included in the limit of
liability that applies to the damaged
property. If the amount to be paid for the
actual damage to the property plus the
debris removal expense is more than the
limit of liability for the damaged property,
an additional 5% of that limit is available for
such expense.
We will also pay your reasonable
SAMPLE
If a loss covered under Section I makes that
part of the “residence premises” where you
reside not fit to live in, we cover any necessary
increase in living expenses incurred by you so
that your household can maintain its normal
standard of living.
2.
b.
Payment will be for the shortest time required
to repair or replace the damage or, if you
permanently relocate, the shortest time
required for your household to settle
elsewhere.
expense, up to $1,000, for the removal
from the “residence premises” of:
Fair Rental Value
(2) A neighbor’s tree(s) felled by a Peril
Insured Against under Coverage C;
(1) Your tree(s) felled by the peril of
Windstorm or Hail or Weight of
Snow or Sleet; or
If a loss covered under Section I makes that
part of the “residence premises” rented to
others or held for rental by you not fit to live in,
we cover the fair rental value of such premises
less any expenses that do not continue while it
is not fit to live in.
provided the tree(s):
(3) Damage(s) a covered structure; or
(4) Does not damage a covered structure,
but:
Payment will be for the shortest time required
to repair or replace such premises.
3.
(a) Block(s) a driveway on the
“residence
premises”
which
prevent(s) a “motor vehicle”, that is
registered for use on public roads or
property, from entering or leaving
the “residence premises”; or
Civil Authority Prohibits Use
If a civil authority prohibits you from use of the
“residence premises” as a result of direct
damage to neighboring premises by a Peril
Insured Against, we cover the loss as provided
in 1. Additional Living Expense and
2. Fair Rental Value above for no more than
two weeks.
4.
(b) Block(s) a ramp or other fixture
designed to assist a handicapped
person to enter or leave the
dwelling building.
Loss Or Expense Not Covered
The $1,000 limit is the most we will pay in
any one loss regardless of the number of
fallen trees. No more than $500 of this limit
will be paid for the removal of any one tree.
We do not cover loss or expense due to
cancellation of a lease or agreement.
The periods of time under 1. Additional Living
Expense, 2. Fair Rental Value and 3. Civil Authority
Prohibits Use above are not limited by expiration of
this policy.
HO 00 03 10 00
Ice,
This coverage is additional insurance.
2.
Reasonable Repairs
a.
We will pay the reasonable cost incurred
by you for the necessary measures taken
solely to protect covered property that is
damaged by a Peril Insured Against from
further damage.
Page 5 of 22
b.
If the measures taken involve repair to
other damaged property, we will only pay
if that property is covered under this policy
and the damage is caused by a Peril
Insured Against. This coverage does not:
6.
Credit Card, Electronic Fund Transfer Card Or
Access Device, Forgery And Counterfeit Money
a.
(1) The legal obligation of an “insured” to pay
because of the theft or unauthorized use of
credit cards issued to or registered in an
“insured’s” name;
(1) Increase the limit of liability that
applies to the covered property; or
(2) Relieve you of your duties, in case of a
loss to covered property, described in
B.4. under Section I — Conditions.
3.
(2) Loss resulting from theft or unauthorized
use of an electronic fund transfer card or
access
device
used
for
deposit,
withdrawal or transfer of funds, issued to or
registered in an “insured’s” name;
Trees, Shrubs And Other Plants
We cover trees, shrubs, plants or lawns, on the
“residence premises”, for loss caused by the
following Perils Insured Against:
(3) Loss to an “insured” caused by forgery or
alteration of any check or negotiable
instrument; and
SAMPLE
a.
Fire or Lightning;
b.
Explosion;
c.
Riot or Civil Commotion;
d.
Aircraft;
e.
Vehicles not owned or operated by a resident
of the “residence premises”;
f.
Vandalism or Malicious Mischief; or
g.
Theft.
(4) Loss to an “insured” through acceptance in
good faith of counterfeit United States or
Canadian paper currency.
All loss resulting from a series of acts
We will pay up to 5% of the limit of liability that
applies to the dwelling for all trees, shrubs, plants
or lawns. No more than $500 of this limit will be
paid for any one tree, shrub or plant. We do not
cover property grown for “business” purposes.
committed by any one person or in which any
one person is concerned or implicated is
considered to be one loss.
This coverage is additional insurance. No
deductible applies to this coverage.
b.
(a) By a resident of your household;
(b) By a person who has been entrusted
with either type of card or access
device; or
Fire Department Service Charge
We will pay up to $500 for your liability assumed
by contract or agreement for fire department
charges incurred when the fire department is called
to save or protect covered property from a Peril
Insured Against. We do not cover fire department
service charges if the property is located within the
limits of the city, municipality or protection district
furnishing the fire department response.
This coverage is additional insurance.
deductible applies to this coverage.
5.
We do not cover:
(1) Use of a credit card, electronic fund
transfer card or access device:
This coverage is additional insurance.
4.
We will pay up to $500 for:
No
Property Removed
We insure covered property against direct loss
from any cause while being removed from a
premises endangered by a Peril Insured Against
and for no more than 30 days while removed.
This coverage does not change the limit of liability
that applies to the property being removed.
(c) If an “insured” has not complied with all
terms and conditions under which the
cards are issued or the devices
accessed; or
(2) Loss arising out of “business” use or
dishonesty of an “insured”.
c.
If the coverage in a. above applies, the
following defense provisions also apply:
(1) We may investigate and settle any claim or
suit that we decide is appropriate. Our duty
to defend a claim or suit ends when the
amount we pay for the loss equals our limit
of liability.
(2) If a suit is brought against an “insured” for
liability under a.(1) or (2) above, we will
provide a defense at our expense by
counsel of our choice.
(3) We have the option to defend at our
expense an “insured” or an “insured’s”
bank against any suit for the enforcement
of payment under a.(3) above.
Page 6 of 22
HO 00 03 10 00
7.
b.
Loss Assessment
a.
We will pay up to $1,000 for your share of loss
assessment charged during the policy period
against you, as owner or tenant of the
“residence premises”, by a corporation or
association
of
property
owners.
The
assessment must be made as a result of direct
loss to property, owned by all members
collectively, of the type that would be covered
by this policy if owned by you, caused by a Peril
Insured Against under Coverage A, other than:
(1) The Perils Insured Against named under
Coverage C;
(2) Decay that is hidden from view, unless the
presence of such decay is known to an
“insured” prior to collapse;
(3) Insect or vermin damage that is hidden
from view, unless the presence of such
damage is known to an “insured” prior to
collapse;
(1) Earthquake; or
(2) Land shock waves or tremors before,
during or after a volcanic eruption.
(4) Weight of contents, equipment, animals or
people;
SAMPLE
The limit of $1,000 is the most we will pay with
respect to any one loss, regardless of the
number of assessments. We will only apply one
deductible, per unit, to the total amount of any
one loss to the property described above,
regardless of the number of assessments.
b.
c.
(5) Weight of rain which collects on a roof; or
(6) Use of defective material or methods in
construction, remodeling or renovation if
the collapse occurs during the course of
the
construction,
remodeling
or
renovation.
We do not cover assessments charged
against you or a corporation or association of
property owners by any governmental body.
c.
Loss to an awning, fence, patio, deck,
pavement, swimming pool, underground pipe,
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 direct result of the collapse
of a building or any part of a building.
d.
This coverage does not increase the limit of
liability that applies to the damaged covered
property.
Paragraph P. Policy Period under Section I —
Conditions does not apply to this coverage.
This coverage is additional insurance.
8.
Collapse
a.
We insure for direct physical loss to covered
property involving collapse of a building or any
part of a building if the collapse was caused by
one or more of the following:
With respect to this Additional Coverage:
(1) Collapse means an abrupt falling down or
caving in of a building or any part of a
building with the result that the building or
part of the building cannot be occupied for
its current intended purpose.
(2) A building or any part of a building that is in
danger of falling down or caving in is not
considered to be in a state of collapse.
(3) A part of a building that is standing is not
considered to be in a state of collapse
even if it has separated from another part
of the building.
(4) A building or any part of a building that is
standing is not considered to be in a
state of collapse even if it shows
evidence of cracking, bulging, sagging,
bending, leaning, settling, shrinkage or
expansion.
HO 00 03 10 00
9.
Glass Or Safety Glazing Material
a.
We cover:
(1) The breakage of glass or safety glazing
material which is part of a covered building,
storm door or storm window;
(2) The breakage of glass or safety glazing
material which is part of a covered building,
storm door or storm window when caused
directly by earth movement; and
(3) The direct physical loss to covered
property caused solely by the pieces,
fragments or splinters of broken glass or
safety glazing material which is part of a
building, storm door or storm window.
Page 7 of 22
b.
This coverage does not include loss:
b.
You may use all or part of this ordinance or law
coverage to pay for the increased costs you
incur to remove debris resulting from the
construction,
demolition,
remodeling,
renovation, repair or replacement of property
as stated in a. above.
c.
We do not cover:
(1) To covered property which results
because the glass or safety glazing
material has been broken, except as
provided in a.(3) above; or
(2) On the “residence premises” if the
dwelling has been vacant for more than 60
consecutive days immediately before the
loss, except when the breakage results
directly from earth movement as provided
in a.(2) above. A dwelling being
constructed is not considered vacant.
c.
(1) The loss in value to any covered building
or other structure due to the requirements
of any ordinance or law; or
(2) The costs to comply with any ordinance or
law which requires any “insured” or others
to test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or in
any way respond to, or assess the effects
of, pollutants in or on any covered building
or other structure.
This coverage does not increase the limit of
liability that applies to the damaged property.
10. Landlord’s Furnishings
SAMPLE
We will pay up to $2,500 for your appliances,
carpeting and other household furnishings, in each
apartment on the “residence premises” regularly
rented or held for rental to others by an
“insured”, for loss caused by a Peril Insured Against
in Coverage C, other than Theft.
This limit is the most we will pay in any one loss
regardless of the number of appliances, carpeting
or other household furnishings involved in the loss.
This coverage does not increase the limit of liability
applying to the damaged property.
11. Ordinance Or Law
a.
You may use up to 10% of the limit of liability
that applies to Coverage A for the increased
costs you incur due to the enforcement of any
ordinance or law which requires or regulates:
(1) The construction, demolition, remodeling,
renovation or repair of that part of a
covered building or other structure
damaged by a Peril Insured Against;
(2) The demolition and reconstruction of the
undamaged part of a covered building or
other structure, when that building or other
structure must be totally demolished
because of damage by a Peril Insured
Against to another part of that covered
building or other structure; or
(3) The remodeling, removal or replacement of
the portion of the undamaged part of a
covered building or other structure
necessary to complete the remodeling,
repair or replacement of that part of the
covered building or other structure
damaged by a Peril Insured Against.
Pollutants means any solid, liquid, gaseous
or thermal irritant or
contaminant,
including smoke, vapor, soot, fumes,
acids,
and
waste.alkalis,
Wastechemicals
includes materials
to be
recycled, reconditioned or reclaimed.
This coverage is additional insurance.
12. Grave Markers
We will pay up to $5,000 for grave markers,
including mausoleums, on or away from the
“residence premises” for loss caused by a Peril
Insured Against under Coverage C.
This coverage does not increase the limits of
liability that apply to the damaged covered
property.
SECTION I — PERILS INSURED AGAINST
A. Coverage A — Dwelling And Coverage B —
Other Structures
1.
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 Section I — Exclusions;
b.
Involving collapse, except as provided in
E.8. Collapse under Section I — Property
Coverages; or
c.
Caused by:
(1) Freezing of a plumbing, heating, air
conditioning
or
automatic
fire
protective sprinkler system or of a
household appliance, or by discharge,
leakage or overflow from within the
system or appliance caused by
freezing. This provision does not apply
if you have used reasonable care to:
(a) Maintain heat in the building; or
Page 8 of 22
HO 00 03 10 00
(b) Shut off the water supply and drain all
systems and appliances of water.
(b) A storm drain, or water, steam or sewer
pipes, off the “residence premises”.
However, if the building is protected by an
automatic fire protective sprinkler system,
you must use reasonable care to continue
the water supply and maintain heat in the
building for coverage to apply.
For purposes of this provision, a plumbing
system or household appliance does not
include a sump, sump pump or related
equipment or a roof drain, gutter,
downspout
or
similar
fixtures
or
equipment; or
For purposes of this provision a plumbing
system or household appliance does not
include a sump, sump pump or related
equipment or a roof drain, gutter,
downspout
or
similar
fixtures
or
equipment;
(2) Freezing, thawing, pressure or weight of
water or ice, whether driven by wind or not,
to a:
(6) Any of the following:
(a) Wear and tear, marring, deterioration;
(b) Mechanical breakdown, latent defect,
inherent vice, or any quality in property
that causes it to damage or destroy
itself;
(c) Smog, rust or other corrosion, or dry
rot;
SAMPLE
(a) Fence, pavement, patio or swimming
pool;
(b) Footing, foundation, bulkhead, wall, or
any other structure or device that
supports all or part of a building, or
other structure;
(c) Retaining wall or bulkhead that does
not support all or part of a building or
other structure; or
(d) Pier, wharf or dock;
(3) Theft in or to a dwelling under
construction, or of materials and supplies
for use in the construction until the
dwelling is finished and occupied;
(4) Vandalism and malicious mischief, 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;
(5) Mold, fungus or wet rot. However, we do
insure for loss caused by mold, fungus or
wet rot that is hidden within the walls or
ceilings or beneath the floors or above the
ceilings of a structure if such loss results
from the accidental discharge or overflow
of water or steam from within:
(a) A plumbing, heating, air conditioning
or automatic fire protective sprinkler
system, or a household appliance, on
the “residence premises”; or
HO 00 03 10 00
(d) Smoke from agricultural smudging or
industrial operations;
(e) Discharge,
dispersal,
seepage,
migration, release or escape of
pollutants unless the discharge,
dispersal, seepage, migration, release
or escape is itself caused by a Peril
Insured
Against
named
under
Coverage C.
Pollutants means any solid, liquid,
gaseous or thermal irritant to
contaminant, including smoke, vapor,
soot, fumes, acids, alkalis, chemicals
and waste. Waste includes materials to
be
recycled,
reconditioned
or
reclaimed.
(f) Settling,
shrinking,
bulging
or
expansion,
including
resultant
cracking, of bulkheads, pavements,
patios, footings, foundations, walls,
floors, roofs or ceilings;
(g) Birds, vermin, rodents, or insects; or
(h) Animals owned or kept by an “insured”.
Exception To c.(6)
Unless the loss is otherwise excluded, we
cover loss to property covered
under
Coverage A or B resulting from an accidental
discharge or overflow of water or steam from
within a:
(i) Storm drain, or water, steam or sewer
pipe, off the “residence premises”; or
Page 9 of 22
(ii) Plumbing, heating, air conditioning or
automatic fire protective sprinkler system
or household appliance on the “residence
premises”. This includes the cost to tear
out and replace any part of a building, or
other structure, on the “residence
premises”, but only when necessary to
repair the system or appliance. However,
such tear out and replacement coverage
only applies to other structures if the water
or steam causes actual damage to a
building on the “residence premises”.
6.
Vehicles
7.
Smoke
8.
Vandalism Or Malicious Mischief
We do not cover loss to the system or
appliance from which this water or steam
escaped.
9.
Theft
For purposes of this provision, a plumbing
system or household appliance does not
include a sump, sump pump or related
equipment or a roof drain, gutter, down spout
or similar fixtures or equipment.
This peril means sudden and accidental
damage from smoke, including the emission or
puffback of smoke, soot, fumes or vapors from
a boiler, furnace or related equipment.
This peril does not include loss caused by
smoke from agricultural smudging or industrial
operations.
a.
This peril includes attempted theft and loss
of property from a known place when it is
likely that the property has been stolen.
SAMPLE
Section I — Exclusion A.3. Water Damage,
Paragraphs a. and c. that apply to surface
b.
This peril does not include loss caused by
theft:
(1) Committed by an “insured”;
(2) In or to a dwelling under construction,
water and water below the surface of the
ground do not apply to loss by water covered
under c.(5) and (6) above.
or of materials and supplies for use in
the construction until the dwelling is
finished and occupied;
Under 2.b. and c. above, any ensuing loss to
property described in Coverages A and B not
precluded by any other provision in this policy
is covered.
(3) From that part of a “residence premises”
rented by an “insured” to someone other
than another “insured”; or
B. Coverage C — Personal Property
(4) That occurs
premises” of:
off
the
“residence
We insure for direct physical loss to the property
described in Coverage C caused by any of the
following perils unless the loss is excluded in
Section I — Exclusions.
(a) Trailers, semitrailers and campers;
1.
Fire Or Lightning
2.
Windstorm Or Hail
(c) Property while at any other
residence owned by, rented to, or
occupied by an “insured”, except
while an “insured” is temporarily
living there. Property of an “insured”
who is a student is covered while at
the residence the student occupies
to attend school as long as the
student has been there at any time
during the 60 days immediately
before the loss.
This peril includes loss to watercraft of all types
and their trailers, furnishings, equipment, and
outboard engines or motors, only while inside a
fully enclosed building.
This peril does not include loss to the property
contained in a building caused by rain, snow,
sleet, sand or dust unless the direct force of
wind or hail damages the building causing an
opening in a roof or wall and the rain, snow,
sleet, sand or dust enters through this opening.
3.
Explosion
4.
Riot Or Civil Commotion
5.
Aircraft
This peril includes self-propelled missiles and
spacecraft.
Page 10 of 22
(b) Watercraft of all types, and their
furnishings,
equipment
and
outboard engines or motors; or
10. Falling Objects
This peril does not include loss to property
contained in a building unless the roof or an
outside wall of the building is first damaged by
a falling object. Damage to the falling object
itself is not included.
11. Weight Of Ice, Snow Or Sleet
This peril means weight of ice, snow or sleet
which causes damage to property contained in
a building.
HO 00 03 10 00
b.
12. Accidental Discharge Or Overflow Of
Water Or Steam
a.
b.
This peril means accidental discharge or
overflow of water or steam from within a
plumbing, heating, air conditioning or
automatic fire protective sprinkler system or
from within a household appliance.
15. Sudden And Accidental Damage From
Artificially Generated Electrical Current
This peril does not include loss to tubes,
transistors, electronic components or circuitry
that are a part of appliances, fixtures,
computers, home entertainment units or other
types of electronic apparatus.
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 freezing
except as provided in Peril Insured
Against 14. Freezing;
(3) On the “residence premises” caused
by accidental discharge or overflow
which occurs off the “residence
premises”; or
above the ceilings of a structure.
d.
16. Volcanic Eruption
This peril does not include loss caused by
earthquake, land shock waves or tremors.
SAMPLE
(4) Caused by mold, fungus or wet rot
unless hidden within the walls or
ceilings or beneath the floors or
c.
In this peril, a plumbing system or
household appliance does not include a
sump, sump pump or related equipment or
a roof drain, gutter, downspout or similar
fixtures or equipment.
SECTION I — EXCLUSIONS
A. We do not insure for loss caused directly or
indirectly by any of the following. Such loss is
excluded regardless of any other cause or event
contributing concurrently or in any sequence to
the loss. These exclusions apply whether or not the
loss event results in widespread damage or affects
a substantial area.
1.
Ordinance Or Law
Ordinance Or Law means any ordinance or
law:
Section I — Exclusion A.3. Water
Damage, Paragraphs a. and c. that apply
to surface water and water below the
surface of the ground do not apply to loss
by water covered under this peril.
a.
Requiring or regulating the construction,
demolition, remodeling, renovation or
repair of property, including removal of any
resulting debris. This Exclusion A.1.a.
does not apply to the amount of coverage
that may be provided for in E.11.
Ordinance Or Law under Section I —
Property Coverages;
b.
The requirements of which result in a loss
in value to property; or
c.
Requiring any “insured” or others to test
for, monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any way
respond to, or assess the effects of,
pollutants.
13. Sudden And Accidental Tearing Apart,
Cracking, Burning Or Bulging
This peril means sudden and accidental
tearing apart, cracking, burning or bulging of a
steam or hot water heating system, an air
conditioning or automatic fire protective sprinkler system, or an appliance for heating water.
We do not cover loss caused by or resulting
from freezing under this peril.
14. Freezing
a.
In this peril, a plumbing system or
household appliance does not include a
sump, sump pump or related equipment or
a roof drain, gutter, downspout or similar
fixtures or equipment.
Pollutants means any solid, liquid, gaseous
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 peril means freezing of a plumbing,
heating, air conditioning or automatic fire
protective sprinkler system or of a
household appliance but only if you have
used reasonable 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 an
automatic fire protective sprinkler system,
you must use reasonable care to continue
the water supply and maintain heat in the
building for coverage to apply.
HO 00 03 10 00
This Exclusion A.1. applies whether or not the
property has been physically damaged.
2.
Earth Movement
Earth Movement means:
a.
Earthquake, including land shock waves
or tremors before, during or after a volcanic
eruption;
Page 11 of 22
Discharge of a nuclear weapon will be
deemed a warlike act even if accidental.
b.
Landslide, mudslide or mudflow;
c.
Subsidence or sinkhole; or
d.
Any other earth movement including earth
sinking, rising or shifting;
7.
caused by or resulting from human or animal
forces or any act of nature unless direct loss by
fire or explosion ensues and then we will pay
only for the ensuing loss.
This Exclusion A.7. pertains to Nuclear Hazard
to the extent set forth in M. Nuclear Hazard
Clause under Section I — Conditions.
8.
In the event of such loss, no “insured” is
entitled to coverage, even “insureds” who did
not commit or conspire to commit the act
causing the loss.
Water Damage
Water Damage means:
a.
Flood, surface water, waves, tidal water,
overflow of a body of water, or spray from
any of these, whether or not driven by wind;
SAMPLE
b.
Water or water-borne material which backs
up through sewers or drains or which
overflows or is discharged from a sump,
sump pump or related equipment; or
c.
Water or water-borne material below the
surface of the ground, including water
which exerts pressure on or seeps or leaks
through a building, sidewalk, driveway,
foundation, swimming pool or other
structure;
caused by or resulting from human or animal
forces or any act of nature.
Direct loss by fire, explosion or theft resulting
from water damage is covered.
4.
Neglect
Governmental Action
Governmental Action means the destruction,
confiscation or seizure of property described in
Coverage A, B or C by order of any
governmental or public authority.
This exclusion does not apply to such acts
ordered by any governmental or public
authority that are taken at the time of a fire to
prevent its spread, if the loss caused by fire
would be covered under this policy.
B. We do not insure for loss to property described in
Coverages A and B caused by any of the following.
However, any ensuing loss to property described in
Coverages A and B not precluded by any other
provision in this policy is covered.
1.
Weather conditions. However, this exclusion
only applies if weather conditions contribute in
any way with a cause or event excluded in A.
above to produce the loss.
2.
Acts or decisions, including the failure to act or
decide, of any person, group, organization or
governmental body.
3.
Faulty, inadequate or defective:
a.
Planning, zoning,
surveying, siting;
b.
Design,
specifications,
workmanship,
repair,
construction,
renovation,
remodeling, grading, compaction;
any
c.
Materials used in repair, construction,
renovation or remodeling; or
a.
Undeclared war, civil war, insurrection,
rebellion or revolution;
d.
Maintenance;
b.
Warlike act by a military force or military
personnel; or
c.
Destruction, seizure, or use for a military
purpose.
Neglect means neglect of an “insured” to use
all reasonable means to save and preserve
property at and after the time of a loss.
6.
9.
Power Failure
Power Failure means the failure of power or
other utility service if the failure takes place off
the “residence premises”. But if the failure
results in a loss, from a Peril Insured Against
on the “residence premises”, we will pay for the
loss caused by that peril.
5.
Intentional Loss
Intentional Loss means any loss arising out of
any act an “insured” commits or conspires to
commit with the intent to cause a loss.
This Exclusion A.2. does not apply to loss by
theft.
3.
Nuclear Hazard
War
War includes the following and
consequence of any of the following:
Page12 of 22
development,
of part or all of any property whether on or
off the “residence premises”.
HO 00 03 10 00
SECTION I — CONDITIONS
A. Insurable Interest And Limit Of Liability
Even if more than one person has an insurable
interest in the property covered, we will not be
liable in any one loss:
1.
To an “insured” for more than the amount of
such “insured’s” interest at the time of loss; or
2.
For more than the applicable limit of liability.
B. Duties After Loss
In case of a loss to covered property, we have no
duty to provide coverage under this policy if the
failure to comply with the following duties is
prejudicial to us. These duties must be performed
either by you, an “insured” seeking coverage, or a
representative of either:
Give prompt notice to us or our agent;
2.
Notify the police in case of loss by theft;
3.
Notify the credit card or electronic fund transfer
card or access device company in case of loss
Specifications of damaged buildings and
detailed repair estimates;
f.
The inventory of damaged
property described in 6. above;
g.
Receipts for additional living expenses
incurred and records that support the fair
rental value loss; and
h.
Evidence or affidavit that supports a claim
under E.6. Credit Card, Electronic Fund
Transfer Card Or Access Device, Forgery
And Counterfeit Money under Section I —
Property Coverages, stating the amount
and cause of loss.
personal
C. Loss Settlement
In this Condition C., the terms “cost to repair or
replace” and “replacement cost” do not include the
increased costs incurred to comply with the
enforcement of any ordinance or law, except to the
extent that coverage for these increased costs is
provided in E.11. Ordinance Or Law under Section I
- Property Coverages. Covered property losses are
settled as follows:
Protect the property from further damage. If
repairs to the property are required, you must:
1.
a.
Make reasonable and necessary repairs to
protect the property; and
b.
Keep an accurate
expenses;
record
of
6.
Prepare an inventory of damaged personal
property showing the quantity, description,
actual cash value and amount of loss. Attach
all bills, receipts and related documents that
justify the figures in the inventory;
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; and
c.
Submit to examination under oath, while
not in the presence of another “insured”,
and sign the same;
Send to us, within 60 days after our request,
your signed, sworn proof of loss which sets
forth, to the best of your knowledge and belief:
a.
The time and cause of loss;
b.
The interests of all “insureds” and all
others in the property involved and all liens
on the property;
c.
Other insurance which may cover the loss;
HO 00 03 10 00
Property of the following types:
a.
Personal property;
b.
Awnings, carpeting, household appliances,
outdoor antennas and outdoor equipment,
whether or not attached to buildings;
c.
Structures that are not buildings; and
d.
Grave markers, including mausoleums;
repair
Cooperate with us in the investigation of a
claim
8.
e.
as provided for in E.6. Credit Card, Electronic
Fund Transfer Card Or Access Device, Forgery
And Counterfeit Money under Section I —
Property Coverages;
5.
7.
Changes in title or occupancy of the
property during the term of the policy;
SAMPLE
1.
4.
d.
at actual cash value at the time of loss but not
more than the amount required to repair or
replace.
2.
Buildings covered under Coverage A or B at
replacement cost without deduction for
depreciation, subject to the following:
a.
If, at the time of loss, the amount of
insurance in this policy on the damaged
building is 80% or more of the full
replacement
cost
of
the
building
immediately before the loss, we will pay the
cost to repair or replace, after application
of any deductible and without deduction for
depreciation, but not more than the least of
the following amounts:
(1) The limit of liability under this policy
that applies to the building;
(2) The replacement cost of that part of the
building damaged with material of like
kind and quality and for like use; or
(3) The necessary amount actually spent
to repair or replace the damaged
building.
Page 13 of 22
e. You may disregard the replacement cost
loss settlement provisions and make claim
under this policy for loss to buildings on an
actual cash value basis. You may then
make claim for any additional liability
according to the provisions of this
Condition C. Loss Settlement, provided
you notify us of your intent to do so within
180 days after the date of loss.
If the building is rebuilt at a new premises,
the cost described in (2) above is limited
to the cost which would have been
incurred if the building had been built at the
original premises.
b.
If, at the time of loss, the amount of
insurance in this policy on the damaged
building is less than 80% of the full
replacement
cost
of
the
building
immediately before the loss, we will pay
the greater of the following amounts, but
not more than the limit of liability under this
policy that applies to the building:
D. Loss To A Pair Or Set
In case of loss to a pair or set we may elect to:
(1) The actual cash value of that part of
the building damaged; or
(2) That proportion of the cost to repair or
replace, after application of any
deductible and without deduction for
depreciation, that part of the building
damaged, which the total amount of
insurance
in this
policy
the
damaged building
bears
to 80%onof the
2.
Pay the difference between actual cash value of
the property before and after the loss.
SAMPLE
If you and we fail to agree on the amount of loss,
either may demand an appraisal of the loss. In this
event, each party will choose a competent and
impartial
withinfrom
20 the
days
after
receiving aappraiser
written request
other.
The two
appraisers will choose an umpire. If they cannot
agree upon an umpire within 15 days, you or we
may request that the choice be made by a judge of
a court of record in the state where the “residence
premises” is located. The appraisers will separately
set the amount of loss. If the appraisers submit a
written report of an agree- ment to us, the amount
agreed upon will be the amount of loss. If they fail
to agree, they will submit their differences to the
umpire. A decision agreed to by any two will set the
amount of loss.
To determine the amount of insurance
required to equal 80% of the full
replacement
cost
of
the
building
immediately before the loss, do not include
the value of:
(1) Excavations, footings, foundations,
piers, or any other structures or
devices that support all or part of the
building, which are below the
undersurface of the lowest basement
floor;
Each party will:
(2) Those supports described in (1) above
which are below the surface of the
ground inside the foundation walls, if
there is no basement; and
(3) Underground flues, pipes, wiring and
drains.
d.
Repair or replace any part to restore the pair
or set to its value before the loss; or
E. Appraisal
replacement cost of the building.
c.
1.
We will pay no more than the actual cash
value of the damage until actual repair or
replacement is complete. Once actual
repair or replacement is complete, we will
settle the loss as noted in 2.a. and b.
above.
However, if the cost to repair or replace
the damage is both:
(1) Less than 5% of the amount of
insurance 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
replacement is complete.
Page14 of 22
F.
1.
Pay its own appraiser; and
2.
Bear the other expenses of the appraisal and
umpire equally.
Other Insurance And Service Agreement
If a loss covered by this policy is also covered by:
1.
Other insurance, we will pay only the proportion
of the loss that the limit of liability that applies
under this policy bears to the total amount of
insurance 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 restoration plan, home
warranty or other similar service warranty
agreement, even if it is characterized as
insurance.
G. Suit Against Us
No action can be brought against us unless there
has been full compliance with all of the terms under
Section I of this policy and the action is started
within two years after the date of loss.
HO 00 03 10 00
b. At our option, we may pay to the mortgagee
the whole principal on the mortgage plus
any accrued interest. In this event, we will
receive a full assignment and transfer of
the mortgage and all securities held as
collateral to the mortgage debt.
H. Our Option
If we give you written notice within 30 days after we
receive your signed, sworn proof of loss, we may
repair or replace any part of the damaged property
with material or property of like kind and quality.
I.
We will adjust all losses with you. We will pay you
unless some other person is named in the policy or
is legally entitled to receive payment. Loss will be
payable 60 days after ...
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