Homeowners Policy Booklet from Travelers

Homeowners Policy Booklet

from Travelers

HOMEOWNERS - CONTENTS BROAD FORM HO-4 (06-06)

HO-4 (06-06)

YOUR HOMEOWNERS POLICY QUICK REFERENCE

DECLARATIONS PAGE

Your Name

Location of Your Residence

Policy Period

Policy Coverages

Limits of Liability

Deductible Amounts

Beginning

On Page

AGREEMENT .............................................................................................. 1

DEFINITIONS .............................................................................................. 1

SECTION I

PROPERTY

COVERAGES

COVERAGES .............................................................................................. 3

Coverage C - Personal Property ............................................................. 3

Coverage D - Loss of Use ...................................................................... 4

Additional Coverages.............................................................................. 5

PERILS INSURED AGAINST ....................................................................... 9

EXCLUSIONS .............................................................................................. 11

CONDITIONS ............................................................................................... 12

Duties After Loss .................................................................................... 12

Loss Settlement ..................................................................................... 13

Loss Deductible ...................................................................................... 13

Policy Period .......................................................................................... 14

SECTION II

LIABILITY

COVERAGES

COVERAGES .............................................................................................. 14

Coverage E - Personal Liability .............................................................. 14

Coverage F - Medical Payments to Others ............................................. 14

ADDITIONAL COVERAGES ........................................................................ 15

EXCLUSIONS .............................................................................................. 16

CONDITIONS ............................................................................................... 19

Limit of Liability ...................................................................................... 19

Duties After Occurrence ......................................................................... 19

Policy Period .......................................................................................... 20

SECTION I and

SECTION II

CONDITIONS

CONDITIONS ............................................................................................... 20

Cancellation .......................................................................................... 21

Nonrenewal ............................................................................................ 21

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HOMEOWNERS 4 – CONTENTS BROAD FORM

AGREEMENT

We will provide the insurance described in this policy in return for the premium and compliance with all applica-

ble provisions of this policy.

DEFINITIONS

In this policy, "you" and "your" refer to the named "in-

sured" 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. In addi-

tion, certain words and phrases are defined as fol-

lows:

1. "Aircraft Liability", "Hovercraft Liability", "Motor

Vehicle Liability" and "Watercraft Liability", sub-

ject to the provisions in b. below, mean the fol-

lowing:

a. Liability for "bodily injury" or "property dam-

age" arising out of the:

(1) Ownership of such vehicle or craft by an

"insured";

(2) Maintenance, occupancy, operation, use,

loading or unloading of such vehicle or

craft by any person;

(3) Entrustment of such vehicle or craft by an

"insured" to any person;

(4) Failure to supervise or negligent supervi-

sion 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. 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 motor-

ized ground effect vehicle and includes,

but is not limited to, flarecraft and air

cushion vehicles;

(3) Watercraft means a craft principally de-

signed to be propelled on or in water by

wind, engine power or electric motor; and

(4) Motor vehicle means a "motor vehicle" as

defined in 9. below.

2. "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;

b. Any other activity engaged in for money or

other compensation, except the following:

(1) Volunteer activities for which no money is

received other than payment for ex-

penses incurred to perform the activity;

(2) Providing home day care services for

which no compensation is received, other

than the mutual exchange of such ser-

vices; or

(3) Providing 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 "in-

sured" and the labor leasing firm, whose duties

are other than those performed by a "residence

employee".

5. "Fuel system" means:

a. One or more containers, tanks or vessels

which have a total combined fuel storage ca-

pacity of 100 or more U.S. gallons; and:

(1) Are, or were, used to hold fuel; and

(2) Are, or were, located on any one location;

b. Any pumping apparatus, which includes the

motor, gauge, nozzle, hose or pipes that are,

or were, connected to one or more containers,

tanks or vessels described in Paragraph a.;

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c. Filler pipes and flues connected to one or

more containers, tanks or vessels described

in Paragraph a.;

d. A boiler, furnace or a water heater, the fuel

for which is stored in a container, tank or ves-

sel described in Paragraph a.;

e. Fittings and pipes connecting the boiler, fur-

nace or water heater to one or more contain-

ers, tanks or vessels described in Paragraph

a.; or

f. A structure that is specifically designed and

built to hold escaped or released fuel from

one or more containers, tanks or vessels de-

scribed in Paragraph a.

A “fuel system” does not include any fuel tanks

that are permanently affixed to a motor vehicle or

watercraft owned by an “insured”, used for power-

ing the motor vehicle or watercraft and not used

at any time or in any manner for “business”.

6. “Fungi”

a. "Fungi" means any type or form of fungus,

including mold or mildew, and any mycotox-

ins, spores, scents or by-products produced or

released by “fungi”.

b. Under Section II, this does not include any

“fungi” that are, are on, or are contained in, a

product or goods intended for consumption.

7. "Insured" means:

a. You and residents of your household who are:

(1) Your relatives; or

(2) Other persons under the age of 21 and in

the care of any person named above.

b. A student enrolled in school full-time, as de-

fined 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 per-

son described in a.(1) above; or

c. Any Additional Insured named in the Declara-

tions, but only with respect to Coverages E

and F and only for the “residence premises”.

d. 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 any vehicle to which this

policy applies:

(a) Persons while engaged in your em-

ploy 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 the word "insured", the

words an "insured" together mean one or more

"insureds".

8. "Insured location" means:

a. The "residence premises";

b. The part of other premises, other structures

and grounds used by you as a residence and:

(1) Which is shown in the Declarations; or

(2) Which is acquired by you during the pol-

icy period for your use as a residence;

c. Any premises used by you in connection with

a premises in a. and b. above;

d. Any part of a premises:

(1) Not owned by an "insured"; and

(2) Where an "insured" is temporarily resid-

ing;

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

or rented to an "insured";

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

which a one or two family dwelling is being

built as a residence for an "insured";

g. Individual or family cemetery plots or burial

vaults of an "insured";

h. Any part of a premises occasionally rented to

an "insured" for other than "business" use; or

i. Any premises owned by you and rented to

others for use as a residence by not more

than four families, if shown in the Declara-

tions as an ADDITIONAL RESIDENCE

RENTED TO OTHERS.

9. "Motor vehicle" means:

a. A self-propelled land or amphibious vehicle;

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b. Any trailer or semi-trailer which is being car-

ried on, towed by or hitched for towing by a

vehicle described in a. above.

10. "Occurrence" means an accident, including con-

tinuous or repeated exposure to substantially the

same general harmful conditions, which results

during the policy period, in:

a. "bodily injury"; or

b. "property damage".

11. "Property Damage" means physical injury to, de-

struction of, or loss of use of tangible property.

12. "Residence employee" means:

a. 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, if the employee's

duties are related to the maintenance or use

of the "residence premises", including house-

hold 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 tem-

porary employee who is furnished to an "insured"

to substitute for a permanent "residence em-

ployee" on leave or to meet seasonal or short-

term workload conditions.

13. "Residence premises" means:

a. The one family dwelling where you reside;

b. The two, three or four family dwelling where

you reside in at least one of the family units;

c. That part of any other building where you re-

side;

and which is shown as the "residence premises"

in the Declarations.

"Residence premises" also includes other struc-

tures and grounds at that location.

SECTION I - PROPERTY COVERAGES

COVERAGE C - PERSONAL PROPERTY

1. Covered Property. We cover personal property

owned or used by an "insured" while it is any-

where in the world. At your request, we will cover

personal property owned by:

a. Others while the property is on the part of the

"residence premises" occupied by an "in-

sured"; or

b. A guest or a "residence employee", while the

property is in any residence occupied by an

"insured".

This request may be made after a loss.

2. Limit For Property At Other Residences. Our

limit of liability for personal property usually lo-

cated at an "insured's" residence, other than the

"residence premises", is 10% of the limit of liabil-

ity for Coverage C, or $1,000, whichever is

greater. However, this limitation does not apply to

personal property:

a. Moved from the "residence premises" be-

cause it is being repaired, renovated or rebuilt

and is not fit to live in or store property in; or

b. In a newly acquired principal residence for 30

days from the time you begin to move the

property there.

3. Special Limits of Liability. The special limit for

each category described below is the greater of

the limit shown below or the special limit for such

category, if any, shown in the Declarations. Such

limit is the total limit for each loss for all property

in that category. These special limits do not in-

crease the Coverage C limit of liability.

a. $200 on money, bank notes, bullion, gold

other than goldware, silver other than silver-

ware, platinum other than platinumware,

coins, medals, scrip, stored value cards and

smart cards.

b. $1,500 on securities, accounts, deeds, evi-

dence of debt, letters of credit, notes other

than bank notes, manuscripts, personal re-

cords, passports, tickets and stamps. This

dollar limit applies to these categories regard-

less of the medium (such as paper or com-

puter software) on which the material exists.

This limit includes the cost to research, re-

place or restore the information from the lost

or damaged material.

c. $1,500 on watercraft of all types, including

their trailers, furnishings, equipment and out-

board 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.

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f. $2,500 for loss by theft of firearms and re-

lated equipment.

g. $2,500 for loss by theft of silverware, silver-

plated ware, goldware, gold-plated ware, plati-

numware, platinum-plated ware and pewter-

ware. This includes flatware, hollowware, tea

sets, trays and trophies made of or including

silver, gold, platinum or pewter.

h. $5,000 on property, on the "residence prem-

ises", used primarily for "business" purposes.

i. $1,500 on property, away from the "residence

premises", used primarily for "business" pur-

poses. However, this limit does not apply to

loss to electronic apparatus and accessories

described in category j. below.

j. $1,500 on electronic apparatus and accesso-

ries, while in or upon a "motor vehicle", but

only if the apparatus is equipped to be oper-

ated by power from the "motor vehicle's" elec-

trical system while still capable of being

operated by other power sources.

k. $250 on tapes, records, discs or other media

that can be used with any electronic appara-

tus, while in or upon a "motor vehicle".

4. Property Not Covered

We do not cover:

a. Articles separately described and specifically

insured, regardless of the limit for which they

are insured, in this or other insurance;

b. 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".

The exclusion of property described in (a)

and (b) above applies only while such

property is in or upon the "motor vehicle".

(2) We do cover "motor vehicles" not re-

quired to be registered for use on public

roads or property which are:

(a) Used to service an "insured's" resi-

dence; or

(b) Designed to assist the handicapped;

d. Aircraft meaning any contrivance used or de-

signed 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 ten-

ants, except property of roomers and board-

ers related to an "insured";

g. Property in an apartment regularly rented or

held for rental to others by an "insured;

h. Property rented or held for rental to others off

the "residence premises";

i. "Business" data, including such data stored

in:

(1) Books of account, drawings or other pa-

per records; or

(2) Computers and related equipment.

We do cover the cost of blank recording or

storage media, and of prerecorded computer

programs available on the retail market;

j. Credit cards, electronic fund transfer cards or

access devices used solely for deposit, with-

drawal or transfer of funds except as provided

in Additional Coverage 7. Credit Card, Elec-

tronic Fund Transfer Card Or Access Device,

Forgery And Counterfeit Money;

k. Grave markers, except as provided in Addi-

tional Coverage 13. Grave Markers; or

l. Water or steam.

COVERAGE D - LOSS OF USE

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 be-

low.

1. Additional Living Expense. If a loss by a Peril

Insured Against under this policy to covered prop-

erty or the building containing the property makes

the "residence premises" not fit to live in, we

cover any necessary increase in living expenses

incurred by you so that your household can main-

tain its normal standard of living. However, addi-

tional living expense due to “fungi”, other

microbes or rot remediation will not be paid in ad-

dition to any amounts paid or payable under Addi-

tional Coverage 16. Limited “Fungi”, Other

Microbes Or Rot Remediation.

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Payment will be for the shortest time required to

repair or replace the damage or, if you perma-

nently relocate, the shortest time required for your

household to settle elsewhere.

2. Fair Rental Value. If a loss covered under Sec-

tion 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. However, fair rental

value due to “fungi”, other microbes or rot reme-

diation will not be paid in addition to any amounts

paid or payable under Additional Coverage 16.

Limited “Fungi”, Other Microbes Or Rot Remedia-

tion.

Payment will be for the shortest time required to

repair or replace such premises.

3. Civil Authority Prohibits Use. If a civil authority

prohibits you from use of the "residence prem-

ises" as a result of direct physical damage to

neighboring premises caused by a Peril Insured

Against under this policy, we cover resulting 1.

Additional Living Expense and 2. Fair Rental

Value as provided above for no more than two

weeks. Neighboring premises means a premises

in sufficient proximity to the “residence premises”

that there exists a reasonable risk that the peril

affecting the neighboring premises could endan-

ger either the “residence premises” or the safety

of its occupants while in the “residence premises”.

4. Loss Or Expense Not Covered. We do not

cover loss or expense due to cancellation of a

lease or agreement.

The periods of time under 1. Additional Living Ex-

pense, 2. Fair Rental Value and 3. Civil Authority Pro-

hibits Use above are not limited by expiration of this

policy.

ADDITIONAL COVERAGES

Unless otherwise stated:

The following coverages are additional insurance; and

They are subject to your deductible.

1. Debris Removal. We will pay your reasonable

expense for the removal of:

a. Debris of covered property if a Peril Insured

Against that applies to the damaged property

causes the loss; or

b. Ash, dust or particles from a volcanic eruption

that has caused direct loss to property cov-

ered as Building Additions and Alterations or

other covered property contained in a build-

ing.

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 do not pay for the removal of trees except as

provided under 2. Tree Removal below.

2. Tree Removal. We will pay your reasonable ex-

pense, up to $1,000, for the removal of one or

more trees fallen on the "residence premises" as

a result of a Peril Insured Against, provided the

tree(s):

a. Damage(s) property covered as Building Ad-

ditions and Alterations; or

b. Do(es) not damage property covered as

Building Additions and Alterations, but:

(1) Block(s) a driveway on the "residence

premises" which prevent(s) a "motor ve-

hicle", that is registered for use on public

roads or property, from entering or leav-

ing the "residence premises"; or

(2) Block(s) a ramp or other fixture designed

to assist a handicapped person to enter or

leave the dwelling building.

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.

3. 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 dam-

age.

b. If the measures taken involve repair to other

damaged property, we will pay only if that

property is covered under this policy and the

damage is caused by a Peril Insured Against.

c. This coverage does not increase the limit of

liability that applies to the covered property;

d. Relieve you of your duties, in case of a loss

to covered property, described in 2.d. under

Section I – Conditions.

4. 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:

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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.

We will pay up to 10% of the limit of liability that

applies to Coverage C 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.

5. 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 pro-

tect 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 fur-

nishing the fire department response.

No deductible applies to this coverage.

6. 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 be-

ing removed.

7. Credit Card, Electronic Fund Transfer Card Or

Access Device, Forgery And Counterfeit

Money.

a. We will pay up to the greater of $1,000, or the

higher amount, if any, shown in the Declara-

tions for CREDIT CARD, for:

(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;

(2) Loss resulting from theft or unauthorized

use of an electronic fund transfer card or

access device used for deposit, with-

drawal or transfer of funds, issued to or

registered in an "insured's" name;

(3) Loss to an "insured" caused by forgery or

alteration of any check or negotiable in-

strument; and

(4) Loss to an "insured" through acceptance

in good faith of counterfeit United States

or Canadian paper currency.

No deductible applies to this coverage.

b. All loss resulting from a series of acts:

(1) Committed by any one person or group of

persons acting in concert; or

(2) In which any one person or group of per-

sons acting in concert is concerned or

implicated;

Is considered to be one loss.

c. We do not cover:

(1) Use of a credit card, electronic fund trans-

fer card or access device:

(a) By a resident of your household;

(b) By a person who has been entrusted

with either type of card or access de-

vice; or

all terms and conditions under which

the cards are issued or the devices

accessed; or

(2) Loss arising out of "business" use or dis-

honesty of an "insured".

d. If the coverage in a. applies, the following de-

fense 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 ex-

pense an "insured" or an "insured's" bank

against any suit for the enforcement of

payment under a.(3) above.

8. 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 as-

sociation 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 pol-

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icy if owned by you, caused by a Peril Insured

Against under Coverage C, other than:

(1) Earthquake; or

(2) Land shock waves or tremors before, dur-

ing or after a volcanic eruption.

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 apply only

one deductible, per unit, to the total amount

of any one loss to the property described

above, regardless of the number of assess-

ments.

b. We do not cover assessments charged

against you or a corporation or association of

property owners by any governmental body.

c. Section I Condition 16. Policy Period does not

apply to this coverage.

9. Collapse.

a. 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 col-

lapse.

(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, lean-

ing, settling, shrinkage or expansion.

b. 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:

(1) The Perils Insured Against;

(2) Decay that is hidden from view, unless

the presence of such decay is known to

an "insured" prior to collapse or there are

visible signs of water damage and the "in-

sured" has not taken prompt action to

prevent further damage;

(3) Insect or vermin damage that is hidden

from view, unless the presence of such

damage is known to an "insured" prior to

collapse;

(4) Weight of contents, equipment, animals

or people;

(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 renova-

tion.

c. Loss to an awning, fence, patio, deck, pave-

ment, swimming pool, underground pipe, flue,

drain, cesspool, septic tank, foundation, re-

taining wall, bulkhead, pier, wharf or dock is

not included under b.(2) through (6) above,

unless the loss is a direct result of the col-

lapse 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.

10. Glass Or Safety Glazing Material.

a. We cover:

(1) The breakage of glass or safety glazing

material which is part of a building, storm

door or storm window, and covered as

Building Additions And Alterations;

(2) The breakage of glass or safety glazing

material which is part of a building, storm

door or storm window and covered as

Building Additions And Alterations when

caused directly by earth movement; and

(3) The direct physical loss to covered prop-

erty caused solely by the pieces, frag-

ments or splinters of broken glass or

safety glazing material which is part of a

building, storm door or storm window.

b. This coverage does not include loss:

(1) To covered property which results be-

cause the glass or safety glazing material

has been broken, except as provided in

a.(3) above; or

(2) On the "residence premises" if the dwell-

ing has been vacant for more than 60

consecutive days immediately before the

loss, except when the breakage results di-

rectly from earth movement as provided

in a.(2) above. Vacant means substan-

tially empty of personal property neces-

sary to sustain normal occupancy. A

dwelling being constructed is not consid-

ered vacant.

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c. This coverage does not increase the limit of

liability that applies to the damaged property.

11. Building Additions And Alterations. We cover

under Coverage C the building improvements or

installations, made or acquired at your expense,

to that part of the "residence premises" used ex-

clusively by you. The limit of liability for this cov-

erage will not be more than 10% of the limit of

liability that applies to Coverage C. However, if a

higher limit of liability is shown in the Declarations

for BUILDING ADDITIONS AND ALTERATIONS,

we will pay up to that higher limit for any one loss.

12. Ordinance or Law.

a. You may use up to the greater of 10%, or the

higher percentage, if any, shown in the Decla-

rations for ORDINANCE OR LAW, of the limit

of liability that applies to Building Additions

and Alterations for the increased costs you

incur due to the enforcement of any ordi-

nance or law which requires or regulates:

(1) The construction, demolition, remodeling,

renovation or repair of that part of a cov-

ered 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 neces-

sary to complete the remodeling, repair or

replacement of that part of the covered

building or other structure damaged by a

Peril Insured Against.

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, renova-

tion, repair or replacement of property as

stated in a. above.

c. We do not cover:

(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, re-

move, contain, treat, detoxify or neutral-

ize, or in any way respond to, or assess

the effects of, pollutants in or on any cov-

ered building or other structure.

Pollutants means any solid, liquid, gase-

ous or thermal irritant or contaminant, in-

cluding smoke, vapor, soot, fumes, acids,

alkalis, chemicals and waste. Waste in-

cludes materials to be recycled, recondi-

tioned or reclaimed.

13. Grave Markers.

We will pay up to $5,000 for grave markers, in-

cluding mausoleums, on or away from the "resi-

dence premises" for loss caused by a Peril

Insured Against.

This coverage does not increase the limits of li-

ability that apply to the damaged covered prop-

erty.

14. Refrigerated Products Coverage. We insure, up

to $500, covered property stored in freezers or re-

frigerators on the "residence premises" for direct

loss caused by:

a. Loss of power to the refrigeration unit. Loss of

power means the complete or partial interrup-

tion of electric power due to conditions be-

yond an "insured's" control. Loss of power

must be caused by damage to:

(1) Generating equipment; or

(2) Transmitting equipment; or

b. Mechanical failure of the unit which stores the

property.

Coverage will apply only if you have maintained

the refrigeration unit in proper working condition

immediately prior to the loss.

This coverage does not increase the limit of liabil-

ity for Coverage C.

We will pay only that part of the total of all loss

payable that exceeds $100. No other deductible

applies to this coverage.

The Power Failure exclusion does not apply to

this coverage.

15. Inflation Coverage. We may adjust the limits of

liability for Coverages C and D at the beginning

of each successive policy term to reflect in-

creases in the cost of insured property. The

amount of such increase will be based on the data

provided by the appraisal company shown in the

Declarations. Payment of the required premium

when due for the successive policy term will be

sufficient to indicate your acceptance of the ad-

justed limits.

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We will also adjust the limits of liability at the time

of a loss by the same percentage pro rated from

the effective date of the policy period or the effec-

tive date of change if you have requested a

change to the limit of liability for Coverage C dur-

ing the policy period.

16. Limited “Fungi”, Other Microbes Or Rot

Remediation.

a. If a loss caused by a Peril Insured Against re-

sults in “fungi”, other microbes or rot, we will

pay for:

(1) Remediation of the “fungi”, other mi-

crobes or rot. This includes payment for

the reasonable and necessary cost to:

(a) Remove the “fungi”, other microbes

or rot from covered property or to re-

pair, restore or replace that property;

and

(b) Tear out and replace any part of a

building covered as Building Addi-

tions and Alterations as needed to

gain access to the “fungi”, other mi-

crobes or rot;

(2) Any reasonable and necessary increase

in living expense you incur:

(a) So that your household can maintain

its normal standard of living; or

(b) Loss of fair rental value;

if the “fungi”, other microbes or rot makes

the “residence premises” not fit to live in;

and

(3) Any reasonable and necessary testing or

monitoring of air or property to confirm

the absence, presence or level of the

“fungi”, other microbes or rot, whether

performed prior to, during or after re-

moval, repair, restoration or replacement.

b. We will pay under this additional coverage

only if:

(1) The covered loss occurs during the policy

period;

(2) All reasonable means were used to save

and preserve the property at the time of

and after the covered loss; and

(3) We receive prompt notice of the covered

cause of loss that is alleged to have re-

sulted in “fungi”, other microbes or rot.

c. The most we will pay under this additional

coverage is the limit of liability shown in the

Declarations for Limited "Fungi", Other Mi-

crobes Or Rot Remediation. This is the most

we will pay for the total of all loss or costs re-

gardless of the:

(1) Number of locations or items of property

insured under this policy; or

(2) Number of losses or claims made.

d. This coverage does not increase the limit of

liability that applies to the damaged property.

SECTION I - PERILS INSURED AGAINST

We insure for direct physical loss to the property de-

scribed in Coverage C caused by any of the following

perils, unless the loss is excluded in Section I - Exclu-

sions.

1. Fire or lightning.

2. Windstorm or hail.

This peril includes loss to watercraft of all types

and their trailers, furnishings, equipment, and out-

board engines or motors, only while inside a fully

enclosed building.

This peril does not include loss to property con-

tained 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.

6. Vehicles.

7. Smoke.

This peril means sudden and accidental damage

from smoke, including the emission or puffback of

smoke, soot, fumes or vapors from a boiler, fur-

nace or related equipment.

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This peril does not include loss caused by smoke

from agricultural smudging or industrial opera-

tions.

8. Vandalism or malicious mischief.

This peril does not include loss to property on the

"residence premises", and any ensuing loss

caused by any intentional and wrongful act com-

mitted 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. Vacant means substantially empty of per-

sonal property necessary to sustain normal occu-

pancy. A dwelling being constructed is not

considered vacant.

9. Theft.

a. This peril includes attempted theft and loss of

property from a known place when it is likely

that the property has been stolen.

b. This peril does not include loss caused by

theft:

(1) Committed by an "insured";

(2) In or to a dwelling under construction, or

of materials and supplies for use in the

construction until the dwelling is finished

and occupied;

(3) From that part of a "residence premises"

rented by an "insured" to someone other

than another "insured"; or

(4) That occurs off the "residence premises"

of:

(a) Trailers, semitrailers and campers;

(b) Watercraft of all types, and their fur-

nishings, equipment and outboard

engines or motors; or

owned by, rented to, or occupied by

an "insured", except while an "in-

sured" is temporarily living there.

Property of an "insured" who is a stu-

dent 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 imme-

diately before the loss.

10. Falling Objects.

This peril does not include loss to property con-

tained 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.

12. Accidental Discharge Or Overflow Of Water Or

Steam.

a. This peril means accidental discharge or

overflow of water or steam from within a

plumbing, heating, air conditioning or auto-

matic fire protective sprinkler system or from

within a household appliance.

b. This peril does not include loss:

(1) To the system or appliance from which

the water or steam escaped;

(2) Caused by or resulting from freezing ex-

cept as provided in Peril Insured Against

14. Freezing;

(3) On the "residence premises" caused by

accidental discharge or overflow which

occurs away from the building where the

"residence premises" is located; or

(4) Caused by constant or repeated seepage

or leakage that occurs over a period of 14

days or more.

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 equip-

ment.

d. Section I – Exclusion 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.

13. Sudden And Accidental Tearing Apart, Crack-

ing, 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.

This peril does not include loss caused by or re-

sulting from freezing except as provided in Peril

Insured Against 14. Freezing below.

14. Freezing.

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

ing, air conditioning or automatic fire protec-

tive sprinkler system or of a household

appliance but only if you have used reason-

able care to:

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HO-4 (06-06) Page 11 of 21

(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.

b. 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 equip-

ment.

15. Sudden And Accidental Damage From Artifi-

cially Generated Electrical Current.

This peril does not include loss to tubes, transis-

tors, electronic components or circuitry that are a

part of appliances, fixtures, computers, home en-

tertainment units or other types of electronic ap-

paratus.

16. Volcanic Eruption.

This peril does not include loss caused by earth-

quake, land shock waves or tremors.

SECTION I - EXCLUSIONS

We do not insure for loss caused directly or indirectly

by any of the following. Such loss is excluded regard-

less of any other cause or event contributing concur-

rently or in any sequence to the loss. These

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:

a. Requiring or regulating the construction,

demolition, remodeling, renovation or repair

of property, including removal of any resulting

debris. This exclusion, 1.a., does not apply to

the amount of coverage that may be provided

for under Additional Coverage 12. Ordinance

or Law;

b. The requirements of which result in a loss in

value to property.

c. Requiring any "insured" or others to test for,

monitor, clean up, remove, contain, treat, de-

toxify or neutralize, or in any way respond to,

or assess the effects of, pollutants.

Pollutants means any solid, liquid, gaseous or

thermal irritant or contaminant, including

smoke, vapor, soot, fumes, acids, alkalis,

chemicals and waste. Waste includes materi-

als to be recycled, reconditioned or re-

claimed.

This exclusion 1. applies whether or not the prop-

erty 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;

b. Landslide; mudslide, or mudflow;

c. Subsidence or sinkhole; or

d. Any other earth movement including earth

sinking, rising or shifting;

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 2. does not apply to loss by theft.

3. 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;

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 sur-

face of the ground, including water which ex-

erts 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. 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 "resi-

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HO-4 (06-06) Page 12 of 21

dence premises", we will pay for the loss caused

by that peril.

5. Neglect.

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. War.

War includes the following and any consequence

of any of the following:

a. Undeclared war, civil war, insurrection, rebel-

lion or revolution;

b. Warlike act by a military force or military per-

sonnel; or

c. Destruction, seizure or use for a military pur-

pose.

Discharge of a nuclear weapon will be deemed a

warlike act even if accidental.

7. Nuclear Hazard.

This Exclusion 7. pertains to Nuclear Hazard to

the extent set forth in the Nuclear Hazard Clause

of Section I - Conditions.

8. 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.

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.

9. Governmental Action, meaning the destruction,

confiscation or seizure of property described in

Coverage C by order of any governmental or pub-

lic authority.

This exclusion does not apply to such acts or-

dered by any governmental or public authority

that are taken at the time of a fire to prevent its

spread, if the loss caused by fire would be cov-

ered under this policy.

10. “Fungi”, Other Microbes or Rot, meaning any

loss or cost resulting from, arising out of, caused

by, consisting of, or related to, “fungi”, other mi-

crobes or rot. This exclusion does not apply to:

a. “Fungi”, other microbes or rot remediation

coverage that may be afforded under Addi-

tional Coverage 16. Limited “Fungi”, Other

Microbes Or Rot Remediation; or

b. “Fungi”, other microbes or rot that results

from fire or lightning.

SECTION I - CONDITIONS

1. 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:

a. To an "insured" for more than the amount of

such "insured's" interest at the time of loss; or

b. For more than the applicable limit of liability.

2. 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.

a. Give us prompt notice;

b. Notify the police in case of loss by theft;

c. Notify the credit card or electronic fund trans-

fer card or access device company in case of

loss as provided for in Additional Coverage 7.

Credit Card, Electronic Fund Transfer Card

Or Access Device, Forgery And Counterfeit

Money;

d. Protect the property from further damage. If

repairs to the property are required, you must:

(1) Make reasonable and necessary repairs

to protect the property; and

(2) Keep an accurate record of repair ex-

penses;

e. Cooperate with us in the investigation of a

claim;

f. Prepare an inventory of damaged personal

property showing the quantity, description, ac-

tual cash value and amount of loss. Attach all

bills, receipts and related documents that jus-

tify the figures in the inventory;

g. As often as we reasonably require:

(1) Show the damaged property;

(2) Provide us with records and documents

we request and permit us to make copies;

and

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HO-4 (06-06) Page 13 of 21

(3) Submit to examination under oath, while

not in the presence of another "insured",

and sign the same;

h. 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 be-

lief:

(1) The time and cause of loss;

(2) The interest of all "insureds" and all oth-

ers in the property involved and all liens

on the property;

(3) Other insurance which may cover the

loss;

(4) Changes in title or occupancy of the prop-

erty during the term of the policy;

(5) Specifications of damaged buildings and

detailed repair estimates;

(6) The inventory of damaged personal prop-

erty described in f. above;

(7) Receipts for additional living expenses

incurred and records that support the fair

rental value loss; and

(8) Evidence or affidavit that supports a

claim under Additional Coverage 7. Credit

Card, Electronic Fund Transfer Card Or

Access Device, Forgery And Counterfeit

Money, stating the amount and cause of

loss.

3. Loss Settlement.

Covered property losses are settled at actual cash

value at the time of loss but not more than the

amount required to repair or replace.

4. Loss Deductible. Unless otherwise stated in this

policy, the following deductible provision applies:

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.

5. Loss to a Pair or Set. In case of loss to a pair or

set we may elect to:

a. Repair or replace any part to restore the pair

or set to its value before the loss; or

b. Pay the difference between actual cash value

of the property before and after the loss.

6. Loss Payment. 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 we

receive your proof of loss and:

a. Reach an agreement with you;

b. There is an entry of a final judgment; or

c. There is a filing of an appraisal award with us.

7. Appraisal. 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 appraiser within 20 days

after receiving a written request from the other.

The two appraisers will choose an umpire. If they

cannot agree upon an umpire within 15 days, you

or we may request that the choice be made by a

judge 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 ap-

praisers submit a written report of an agreement

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.

Each party will:

a. Pay its own appraiser; and

b. Bear the other expenses of the appraisal and

umpire equally.

8. Other Insurance and Service Agreement. If a

loss covered by this policy is also covered by:

a. Other insurance, we will pay only the propor-

tion of the loss that the limit of liability that

applies under this policy bears to the total

amount of insurance covering the loss; or

b. A service agreement, the coverage provided

under this policy is excess over any amounts

payable under any such agreement. Service

agreement means a service plan, property

restoration plan, home warranty or other simi-

lar service warranty agreement, even if it is

characterized as insurance.

9. 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.

10. 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.

11. Abandonment of Property. We need not accept

any property abandoned by an "insured".

12. No Benefit to Bailee. We will not recognize any

assignment or grant any coverage that benefits a

person or organization holding, storing or moving

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property for a fee regardless of any other provi-

sion of this policy.

13. Nuclear Hazard Clause.

a. "Nuclear Hazard" means any nuclear reac-

tion, radiation, or radioactive contamination,

all whether controlled or uncontrolled or how-

ever caused, or any consequence of any of

these.

b. Loss caused by the nuclear hazard will not be

considered loss caused by fire, explosion, or

smoke, whether these perils are specifically

named in or otherwise included within the

Perils Insured Against.

c. This policy does not apply under Section I to

loss caused directly or indirectly by nuclear

hazard, except that direct loss by fire resulting

from the nuclear hazard is covered.

14. Recovered Property. If you or we recover any

property for which we have made payment under

this policy, you or we will notify the other of the

recovery. At your option, the property will be re-

turned to or retained by you or it will become our

property. If the recovered property is returned to

or retained by you, the loss payment will be ad-

justed based on the amount you received for the

recovered property.

15. Volcanic Eruption Period. One or more volcanic

eruptions that occur within a 72-hour period will

be considered as one volcanic eruption.

16. Policy Period. This policy applies only to loss

which occurs during the policy period.

17. Concealment or Fraud. We provide coverage to

no "insureds" under this policy if, whether before

or after a loss, an "insured" has:

a. Intentionally concealed or misrepresented any

material fact or circumstance;

b. Engaged in fraudulent conduct; or

c. Made false statements;

relating to this insurance.

18. Premises Alarm or Fire Protection System.

(Applies only if PROTECTIVE DEVICES CREDIT

is shown in the Declarations.)

We acknowledge the installation of an alarm sys-

tem and/or an automatic sprinkler system ap-

proved by us on the “residence premises”. You

agree to maintain this system or systems in work-

ing order and to let us know promptly of any

change, including removal, made to the sys-

tem(s).

SECTION II - LIABILITY COVERAGES

COVERAGE E - PERSONAL LIABILITY

If a claim is made or a suit is brought against an "in-

sured" for damages because of "bodily injury" or

"property damage" caused by an "occurrence" to

which this coverage applies, we will:

1. Pay up to our limit of liability for the damages for

which an "insured" is legally liable. Damages in-

clude prejudgment interest awarded against an

"insured"; and

2. Provide a defense at our expense by counsel of

our choice, even if the suit is groundless, false or

fraudulent. We may investigate and settle any

claim or suit that we decide is appropriate. Our

duty to settle or defend ends when our limit of li-

ability for the "occurrence" is exhausted by the

payment of a judgment or settlement.

COVERAGE F - MEDICAL PAYMENTS TO OTH-

ERS

We will pay the necessary medical expenses that are

incurred or medically ascertained within three years

from the date of an accident causing "bodily injury".

Medical expenses means reasonable charges for

medical, surgical, x-ray, dental, ambulance, hospital,

professional nursing, prosthetic devices and funeral

services. This coverage does not apply to you or

regular residents of your household except "residence

employees". As to others, this coverage applies only:

1. To a person on the "insured location" with the

permission of an "insured"; or

2. To a person off the "insured location", if the "bod-

ily injury";

a. Arises out of a condition on the "insured loca-

tion" or the ways immediately adjoining;

b. Is caused by the activities of an "insured";

c. Is caused by a "residence employee" in the

course of the "residence employee's" em-

ployment by an "insured"; or

d. Is caused by an animal owned by or in the

care of an "insured".

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SECTION II - ADDITIONAL COVERAGES

We cover the following in addition to the limits of li-

ability:

1. Claim Expenses. We pay:

a. Expenses we incur and costs taxed against

an "insured" in any suit we defend;

b. Premiums on bonds required in a suit we de-

fend, but not for bond amounts more than the

Coverage E limit of liability. We need not ap-

ply for or furnish any bond;

c. Reasonable expenses incurred by an "in-

sured" at our request, including actual loss of

earnings (but not loss of other income) up to

$250 per day, for assisting us in the investiga-

tion or defense of a claim or suit; and

d. Interest on the entire judgment which accrues

after entry of the judgment and before we pay

or tender, or deposit in court that part of the

judgment which does not exceed the limit of

liability that applies.

2. First Aid Expenses. We will pay expenses for

first aid to others incurred by an "insured" for

"bodily injury" covered under this policy. We will

not pay for first aid to an "insured".

3. Damage to Property of Others. We will pay, at

replacement cost, up to $1,000 per "occurrence"

for "property damage" to property of others

caused by an "insured".

We will not pay for "property damage":

a. To the extent of any amount recoverable un-

der Section I;

b. Caused intentionally by an "insured" who is

13 years of age or older;

c. To property owned by an "insured";

d. To property owned by or rented to a tenant of

an "insured" or a resident in your household;

e. Arising out of:

(1) A "business" engaged in by an "insured";

(2) Any act or omission in connection with a

premises owned, rented or controlled by

an "insured", other than the "insured loca-

tion"; or

(3) The ownership, maintenance, occupancy,

operation, use, loading or unloading of

aircraft, hovercraft, watercraft or "motor

vehicles".

This exclusion e.(3) does not apply to a

"motor vehicle" that:

(a) Is designed for recreational use off

public roads;

(b) Is not owned by an "insured"; and

rence", is not required by law, or

regulation issued by a government

agency, to have been registered for it

to be used at the place of the "occur-

rence".

4. Loss Assessment. We will pay up to $1,000 for

your share of loss assessment charged against

you, as owner or tenant of the "residence prem-

ises", during the policy period by a corporation or

association of property owners, when the as-

sessment is made as a result of:

a. "Bodily injury" or "property damage" not ex-

cluded under Section II of this policy; or

b. Liability for an act of a director, officer or trus-

tee in the capacity as a director, officer or

trustee, provided such person:

(1) Is elected by the members of a corpora-

tion or association of property owners;

and

(2) Serves without deriving any income from

the exercise of duties which are solely on

behalf of a corporation or association of

property owners.

Section II Condition 9. Policy Period, does not

apply to this coverage.

Regardless of the number of assessments, the

limit of $1,000 is the most we will pay for loss

arising out of:

a. One accident, including continuous or re-

peated exposure to substantially the same

general harmful condition; or

b. A covered act of a director, officer or trustee.

An act involving more than one director, offi-

cer or trustee is considered to be a single act.

We do not cover assessments charged against

you or a corporation or association of property

owners by any governmental body.

HO-4 (06-06)

HO-4 (06-06) Page 16 of 21

SECTION II - EXCLUSIONS

A. Coverage E - Personal Liability and Coverage

F - Medical Payments to Others.

Coverages E and F do not apply to "bodily injury" or

"property damage":

1. Which is expected or intended by an "insured"

even if the resulting "bodily injury" or "property

damage":

a. Is of a different kind, quality or degree than

initially expected or intended; or

b. Is sustained by a different person, entity, real

or personal property, than initially expected or

intended.

However, this exclusion A.1. does not apply to

"bodily injury" resulting from the use of reason-

able force by an "insured" to protect persons or

property.

2. Arising out of or in connection with a "business"

conducted from an "insured location" or engaged

in by an "insured", whether or not the "business"

is owned or operated by an "insured" or employs

an "insured". This exclusion A.2. applies to, but is

not limited to, an act or omission, regardless of its

nature or circumstance, involving a service or

duty rendered, promised, owed, or implied to be

provided because of the nature of the "business".

This exclusion A.2. does not apply to:

a. The rental or holding for rental of an "insured

location";

(1) On an occasional basis if used only as a

residence;

(2) In part for use only as a residence, unless

a single family unit is intended for use by

the occupying family to lodge more than

two roomers or boarders;

(3) In part, as an office, school, studio or pri-

vate garage; or

(4) Shown in the Declarations as an ADDI-

TIONAL RESIDENCE RENTED TO OTH-

ERS.

b. An "insured" under the age of 21 years in-

volved in a part-time or occasional, self-

employed "business" with no employees; or

c. One or more activities, for which no "insured"

receives more than $2,000 in total compensa-

tion for the consecutive 12 months before an

"occurrence";

3. Arising out of the rendering of or failure to render

professional services;

4. Arising out of a premises:

a. Owned by an "insured";

b. Rented to an "insured"; or

c. Rented to others by an "insured";

that is not an "insured location";

5. Caused directly or indirectly by war, including the

following and any consequence of any of the fol-

lowing:

a. Undeclared war, civil war, insurrection, rebel-

lion or revolution;

b. Warlike act by a military force or military per-

sonnel; or

c. Destruction, seizure or use for a military pur-

pose.

Discharge of a nuclear weapon will be deemed a

warlike act even if accidental;

6. Arising out of the transmission of a communicable

disease by an "insured";

7. Arising out of sexual molestation, corporal pun-

ishment or physical or mental abuse;

8. Arising out of the use, sale, manufacture, deliv-

ery, transfer or possession by any person of a

Controlled Substance(s) as defined by the Fed-

eral Food and Drug Law at 21 U.S.C.A. Sections

811 and 812. Controlled Substances include but

are not limited to cocaine, LSD, marijuana and all

narcotic drugs. However, this exclusion does not

apply to the legitimate use of prescription drugs

by a person following the orders of a licensed

physician;

9. Arising out of, consisting of, caused by, contrib-

uted to, aggravated by or resulting from, whether

directly or indirectly, by “fungi”, other microbes or

rot. This includes:

a. The cost of testing, monitoring, abating, miti-

gating, removing, remediating or disposing of

“fungi”, other microbes or rot;

b. Any supervision, instruction, disclosures, or

failures to disclose, recommendations, warn-

ings, or advice given, or that allegedly should

have been given, in connection with “bodily

injury” or “property damage” consisting of,

arising out of, caused by, contributed to, ag-

gravated by or resulting from, whether directly

HO-4 (06-06)

HO-4 (06-06) Page 17 of 21

or indirectly, by “fungi”, other microbes or rot,

or the activities described in 9.a. above;

c. Any obligation to share with or repay another

who must pay damages because of “bodily in-

jury” or “property damage” damage of the

type described in this exclusion. This applies

regardless of any other cause that contributed

directly or indirectly, concurrently or in any

sequence to the “bodily injury” or “property

damage”; and

d. Liability imposed upon any “insured” by any

governmental authority for “bodily injury” or

“property damage” consisting of, arising out

of, caused by, contributed to, aggravated by

or resulting from, whether directly or indi-

rectly, by “fungi”, other microbes or rot; or

10. Arising out of, resulting from, caused by or con-

tributed to by the escape or release of fuel from a

“fuel system”. This exclusion applies, but is not

limited to:

a. Any supervision, instructions, recommenda-

tions, warnings or advice given in connection

with the above;

b. Any obligation to share damages, losses,

costs, payments or expenses with or repay

someone else who must make payment be-

cause of such “bodily injury” or “property

damage”, damages, loss, cost, payment or

expense; or

c. Any request, order or requirement to test for,

monitor, abate, mitigate, remediate, contain,

remove, dispose of, or in any way respond to

or assess the effects of fuel in any form.

However, this exclusion does not apply to “bodily

injury” or “property damage” arising out of fire or

explosion that results from such escaped or re-

leased fuel.

B. Coverage E- Personal Liability and Coverage

F- Medical Payments to Others.

Coverages E and F also do not apply to:

1. "Motor Vehicle Liability" unless, at the time of an

"occurrence", the involved "motor vehicle" is:

a. In dead storage on an "insured location";

b. Used to service an "insured's" residence;

c. Designed to assist the handicapped and, at

the time of an "occurrence", it is:

(1) Being used to assist a handicapped per-

son; or

(2) Parked on an "insured location";

d. Designed for recreational use off public roads

and:

(1) Not owned by an "insured"; or

(2) Owned by an "insured", provided the "oc-

currence" takes place on an "insured lo-

cation" as defined in Definitions

paragraphs 8.a., b., d., e. or h.; or

e. A motorized golf cart that is owned by an "in-

sured", designed to carry up to 4 persons, not

built or modified after manufacture to exceed

a speed of 25 miles per hour on level ground

and, at the time of an "occurrence", is within

the legal boundaries of:

(1) A golfing facility and is parked or stored

there, or being used by an "insured" to:

(a) Play the game of golf or for other rec-

reational or leisure activity allowed by

the facility;

(b) Travel to or from an area where "mo-

tor vehicles" or golf carts are parked

or stored; or

points to access other parts of the

golfing facility; or

(2) A private residential community, including

its public roads upon which a motorized

golf cart can legally travel, which is sub-

ject to the authority of a property owners

association and contains an "insured's"

residence.

However this exception to the exclusion from cov-

erage does not apply if, at the time and place of

an "occurrence", the involved "motor vehicle":

a. Is registered for use on public roads or prop-

erty;

b. Is not registered for use on public roads or

property, but such registration is required by a

law, or regulation issued by a government

agency, for it to be lawfully used at the place

of the "occurrence"; or

c. Is being:

(1) Operated in, or practicing for, any prear-

ranged or organized race, speed contest

or other competition;

(2) Rented to others;

(3) Used to carry persons or cargo for a

charge; or

(4) Used for any other "business" purpose

except for a motorized golf cart used for

HO-4 (06-06)

HO-4 (06-06) Page 18 of 21

incidental "business" entertainment while

on a golfing facility.

2. “Watercraft liability" unless, at the time of an "oc-

currence", the involved watercraft:

a. Is stored;

b. Is a sailing vessel, with or without auxiliary

power that is:

(1) Less than 26 feet in overall length; or

(2) 26 feet or more in overall length and not

owned by or rented to an "insured";

c. Is not a sailing vessel and is powered by:

(1) An inboard or inboard-outdrive engine or

motor, including those that power a water

jet pump, of:

(a) 50 horsepower or less and not owned

by an "insured"; or

(b) More than 50 horsepower and not

owned by or rented to an "insured"; or

(2) One or more outboard engines or motors

with:

(a) 25 total horsepower or less; or

(b) More than 25 horsepower if the out-

board engine or motor is not owned

by an "insured";

board engine or motor is owned by an

"insured" who acquired it during the

policy period, or:

(d) More than 25 horsepower if the out-

board engine or motor is owned by an

"insured" who acquired it before the

policy period, but only if:

(1) You declare them at policy incep-

tion; or

(2) Your intent to insure them is re-

ported to us in writing within 45

days after you acquire them.

The coverages in (c) and (d) above apply

for the policy period.

Horsepower means the maximum power rat-

ing assigned to the engine or motor by the

manufacturer.

However this exception to the exclusion from cov-

erage does not apply if, at the time and place of

an "occurrence", the involved watercraft is being:

a. Operated in, or practicing for, any prear-

ranged or organized race, speed contest or

other competition. This exclusion does not

apply to a sailing vessel or a predicted log

cruise;

b. Rented to others;

c. Used to carry persons or cargo for a charge;

d. Used for any other "business" purpose.

3. "Aircraft Liability".

4. "Hovercraft Liability”.

Exclusions A.4., B.1., B.2., B.3. and B.4. do not apply

to "bodily injury" to a "residence employee" arising out

of and in the course of the "residence employee's"

employment by an "insured".

C. Coverage E - Personal Liability.

Coverage E does not apply to:

1. Liability:

a. For any loss assessment charged against you

as a member of an association, corporation or

community of property owners, except as pro-

vided in Additional Coverage 4. Loss As-

sessment;

b. Under any contract or agreement entered into

by an "insured". However, this exclusion does

not apply to written contracts:

(1) That directly relate to the ownership,

maintenance or use of an "insured loca-

tion"; or

(2) In which the liability of others is assumed

by the "insured" prior to an "occurrence";

unless excluded in a. above or elsewhere in

this policy;

2. "Property damage" to property owned by the "in-

sured". This includes costs or expenses incurred

by an "insured" or others to repair, replace, en-

hance, restore or maintain such property to pre-

vent injury to a person or damage to property of

others, whether on or away from an "insured loca-

tion".

3. "Property damage" to property rented to, occu-

pied or used by or in the care of the "insured."

This exclusion does not apply to "property dam-

age" caused by fire, smoke or explosion;

4. "Bodily injury" to any person eligible to receive

any benefits voluntarily provided or required to be

provided by an "insured" under any:

a. Workers' compensation law;

b. Non-occupational disability law; or

c. Occupational disease law;

HO-4 (06-06)

HO-4 (06-06) Page 19 of 21

5. "Bodily injury" or "property damage" for which an

"insured" under this policy:

a. Is also an insured under a nuclear energy li-

ability policy issued by the:

(1) Nuclear Energy Liability Insurance Asso-

ciation;

(2) Mutual Atomic Energy Liability Underwrit-

ers;

(3) Nuclear Insurance Association of Canada;

or any of their successors; or

b. Would be an insured under that policy but for

the exhaustion of its limit of liability;

6. "Bodily injury" to you or an "insured" as defined in

Definition 7.a. or b.

This exclusion also applies to any claim made or

suit brought against you or an "insured":

a. To repay; or

b. Share damages with;

another person who may be obligated to pay

damages because of "bodily injury" to an "in-

sured"; or

7. "Bodily injury" to an “employee”, “residence em-

ployee” or a temporary employee furnished to the

“insured” to substitute for a permanent “residence

employee” arising out of or in the course of the

employee’s employment by any Additional In-

sured named in the Declarations.

D. Coverage F - Medical Payments to Others.

Coverage F does not apply to "bodily injury":

1. To a "residence employee" if the "bodily injury":

a. Occurs off the "insured location"; and

b. Does not arise out of or in the course of the

"residence employee's" employment by an

"insured";

2. To any person eligible to receive benefits volun-

tarily provided or required to be provided under

any:

a. Workers' compensation law;

b. Non-occupational disability law; or

c. Occupational disease law;

3. From any:

a. Nuclear reaction;

b. Nuclear radiation; or

c. Radioactive contamination;

all whether controlled or uncontrolled or however

caused; or

d. Any consequence of any of these; or

4. To any person, other than a "residence employee"

of an "insured", regularly residing on any part of

the "insured location".

SECTION II - CONDITIONS

1. Limit of Liability. Our total liability under Cover-

age E for all damages resulting from any one "oc-

currence" will not be more than the Coverage E

limit of liability shown in the Declarations. This

limit is the same regardless of the number of "in-

sureds", claims made or persons injured. All "bod-

ily injury" and "property damage" resulting from

any one accident or from continuous or repeated

exposure to substantially the same general harm-

ful conditions shall be considered to be the result

of one "occurrence".

Our total liability under Coverage F for all medical

expense payable for "bodily injury" to one person

as the result of one accident will not be more than

the Coverage F limit of liability shown in the Dec-

larations.

2. Severability of Insurance. This insurance ap-

plies separately to each "insured". This condition

will not increase our limit of liability for any one

"occurrence".

3. Duties After "Occurrence". In case of an "occur-

rence", you or another "insured" will perform the

following duties that apply. We have no duty to

provide coverage under this policy if your failure

to comply with the following duties is prejudicial to

us. You will help us by seeing that these duties

are performed:

a. Give us written notice as soon as is practical,

which sets forth:

(1) The identity of the policy and the named

"insured" shown in the Declarations;

(2) Reasonably available information on the

time, place and circumstances of the "oc-

currence"; and

(3) Names and addresses of any claimants

and witnesses;

b. Cooperate with us in the investigation, set-

tlement or defense of any claim or suit;

HO-4 (06-06)

HO-4 (06-06) Page 20 of 21

c. Promptly forward to us every notice, demand,

summons or other process relating to the "oc-

currence";

d. At our request, help us:

(1) To make settlement;

(2) To enforce any right of contribution or in-

demnity against any person or organiza-

tion who may be liable to an "insured";

(3) With the conduct of suits and attend hear-

ings and trials; and

(4) To secure and give evidence and obtain

the attendance of witnesses;

e. With respect to Additional Coverage 3. Dam-

age to Property of Others, submit to us within

60 days after the loss, a sworn statement of

loss and show the damaged property, if in an

"insured's" control;

f. No "insured" shall, except at such "insured's"

own cost, voluntarily make payment, assume

obligation or incur expense other than for first

aid to others at the time of the "bodily injury".

4. Duties of an Injured Person - Coverage F -

Medical Payments to Others.

a. The injured person or someone acting for the

injured person will:

(1) Give us written proof of claim, under oath

if required, as soon as is practical; and

(2) Authorize us to obtain copies of medical

reports and records.

b. The injured person will submit to a physical

exam by a doctor of our choice when and as

often as we reasonably require.

5. Payment of Claim - Coverage F - Medical Pay-

ments to Others. Payment under this coverage

is not an admission of liability by an "insured" or

us.

6. Suit Against Us. No action can be brought

against us unless there has been full compliance

with all of the terms under this Section II.

No one will have the right to join us as a party to

any action against an "insured". Also, no action

with respect to Coverage E can be brought

against us until the obligation of such "insured"

has been determined by final judgment or agree-

ment signed by us.

7. Bankruptcy of an Insured. Bankruptcy or insol-

vency of an "insured" will not relieve us of our ob-

ligations under this policy.

8. Other Insurance. This insurance is excess over

other valid and collectible insurance except insur-

ance written specifically to cover as excess over

the limits of liability that apply in this policy.

9. Policy Period. This policy applies only to "bodily

injury" or "property damage" which occurs during

the policy period.

10. Concealment or Fraud. We do not provide cov-

erage to an "insured" who, whether before or after

a loss, has:

a. Intentionally concealed or misrepresented any

material fact or circumstance;

b. Engaged in fraudulent conduct; or

c. Made false statements;

relating to this insurance.

SECTIONS I AND II - CONDITIONS

1. Liberalization Clause. If we make a change

which broadens coverage under this edition of our

policy without additional premium charge, that

change will automatically apply to your insurance

as of the date we implement the change in your

state, provided that this implementation date falls

within 60 days prior to or during the policy period

stated in the Declarations.

This Liberalization Clause does not apply to

changes implemented with a general program re-

vision that includes both broadenings and restric-

tions of coverage, whether that general program

revision is implemented through introduction of:

a. A subsequent edition of this policy form; or

b. An amendatory endorsement

2. Waiver or Change of Policy Provisions. A

waiver or change of a provision of this policy

must be in writing by us to be valid. Our request

for an appraisal or examination will not waive any

of our rights.

The coverage provided and the premium charged

are based on information you have given us. You

agree to cooperate with us in determining if this

information is correct and complete and to inform

us of any change in title, use or occupancy of the

“residence premises”.

You agree that, if within 60 days of the policy ef-

fective date this information changes, is incorrect

or incomplete, we may adjust your coverage and

premium accordingly by giving you notice. This

notice may be delivered to you, or mailed to you

HO-4 (06-06)

HO-4 (06-06) Page 21 of 21

at your mailing address shown in the Declara-

tions. The notice will contain the changed, incor-

rect or incomplete information along with the

resulting premium change.

3. Cancellation.

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

turning it to us or by letting us know in writing

of the date cancellation is to take effect.

b. We may cancel this policy only for the rea-

sons stated below by letting you know in writ-

ing of the date cancellation takes effect. This

cancellation notice may be delivered to you,

or mailed to you at your mailing address

shown in the Declarations. Proof of mailing

will be sufficient proof of notice.

(1) When you have not paid the premium, we

may cancel at any time by letting you

know at least 10 days before the date

cancellation takes effect.

(2) When this policy has been in effect for

less than 60 days and is not a renewal

with us, we may cancel for any reason by

letting you know at least 10 days before

the date cancellation takes effect.

(3) When this policy has been in effect for 60

days or more, or at any time if it is a re-

newal with us, we may cancel:

(a) If there has been a material misrep-

resentation of fact which if known to

us would have caused us not to issue

the policy; or

(b) If the risk has changed substantially

since the policy was issued.

This can be done by letting you know at

least 30 days before the date cancellation

takes effect.

c. We will also mail a copy of any notice of can-

cellation to any Additional Insured named in

the Declarations.

d. When this policy is cancelled, the premium

for the period from the date of cancellation to

the expiration date will be refunded pro rata.

e. If the return premium is not refunded with the

notice of cancellation or when this policy is re-

turned to us, we will refund it within a reason-

able time after the date cancellation takes

effect.

4. Nonrenewal. We may elect not to renew this pol-

icy. We may do so by delivering to you, or mailing

to you at your mailing address shown in the Dec-

larations, written notice at least 30 days before

the expiration date of this policy. Proof of mailing

will be sufficient proof of notice. We will also mail

a copy of the notice to any Additional Insured

named in the Declarations.

If we offer to renew and you or your representa-

tive do not accept, this policy will automatically

terminate without notice of termination at the end

of the current policy period. Failure to pay the re-

quired renewal premium when due shall mean

that you have not accepted our offer.

5. Assignment. Assignment of this policy will not be

valid unless we give our written consent.

6. Subrogation. An "insured" may waive in writing

before a loss all rights of recovery against any

person. If not waived, we may require an assign-

ment of rights of recovery for a loss to the extent

that payment is made by us.

If an assignment is sought, an "insured" must sign

and deliver all related papers and cooperate with

us.

Subrogation does not apply under Section II to

Medical Payments to Others or Damage to Prop-

erty of Others.

7. Death. If any person named in the Declarations or

the spouse, if a resident of the same household,

dies:

a. We insure the legal representative of the de-

ceased but only with respect to the premises

and property of the deceased covered under

the policy at the time of death;

b. "Insured" includes:

(1) An "insured" who is a member of your

household at the time of your death, but

only while a resident of the "residence

premises"; and

(2) With respect to your property, the person

having proper temporary custody of the

property until appointment and qualifica-

tion of a legal representative.