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Homeowners Policy Booklet

from Travelers

HIGH VALUE HOMEOWNERS - DWELLING FORM HV-3 (06-06)

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YOUR HIGH VALUE HOMEOWNERS POLICY QUICK REFERENCE

DECLARATIONS PAGE

Your NameLocation of Your ResidencePolicy PeriodPolicy CoveragesLimits of LiabilityDeductible Amounts

BeginningOn Page

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

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

SECTION I

PROPERTYCOVERAGES

COVERAGE A - DWELLING ........................................................................ 3

COVERAGE B - OTHER STRUCTURES ..................................................... 4

COVERAGE C - PERSONAL PROPERTY ................................................... 4

COVERAGE D - LOSS OF USE ................................................................... 5

ADDITIONAL COVERAGES ........................................................................ 6

PERILS INSURED AGAINST ....................................................................... 11

EXCLUSIONS .............................................................................................. 13

CONDITIONS ............................................................................................... 14

Duties After Loss .................................................................................... 14

Loss Settlement ..................................................................................... 15

Loss Deductible ...................................................................................... 16

SECTION II

LIABILITYCOVERAGES

COVERAGE E - PERSONAL LIABILITY ...................................................... 18

COVERAGE F - MEDICAL PAYMENTS TO OTHERS ................................. 18

ADDITIONAL COVERAGES ........................................................................ 19

EXCLUSIONS .............................................................................................. 20

CONDITIONS ............................................................................................... 24

Limit of Liability ...................................................................................... 24

Duties After Occurrence ......................................................................... 24

SECTIONS I AND II

CONDITIONS

CONDITIONS ............................................................................................... 25

Waiver or Change of Policy Provisions .................................................. 25

Cancellation ........................................................................................... 25

Nonrenewal ............................................................................................ 26

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HIGH VALUE HOMEOWNERS POLICY

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. The Declarations is a part of this policy.

DEFINITIONS

In this policy, "you" and "your" refer to the named“insured" shown in the Declarations and the spouseif a resident of the same household. "We," "us" and"our" refer to the company providing this insurance.In addition, certain words and phrases are definedas follows:

1. "Aircraft Liability", "Hovercraft Liability", "MotorVehicle 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 byan "insured";

(2) Maintenance, occupancy, operation,use, loading or unloading of such vehi-cle or craft by any person;

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

(4) Failure to supervise or negligent su-pervision of any person involving suchvehicle or craft by an "insured"; or

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

b. For the purpose of this definition:

(1) Aircraft means any contrivance used ordesigned for flight, except model orhobby aircraft not used or designed tocarry people or cargo;

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

(3) Watercraft means a craft principallydesigned to be propelled on or in water

by wind, engine power or electric mo-tor; and

(4) Motor vehicle means a "motor vehicle"as defined in 9. below.

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

3. "Business" means:

a. A trade, profession or occupation engagedin on a full-time, part-time or occasional ba-sis; or

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

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

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

(3) Providing home day care services to arelative of an "insured".

4. "Employee" means an employee of an "in-sured", or an employee leased to an "insured"by a labor leasing firm under an agreement be-tween an "insured" and the labor leasing firm,whose duties are other than those performed bya "residence employee".

5. "Fuel system" means:

a. One or more containers, tanks or vesselswhich have a total combined fuel storagecapacity 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 loca-tion;

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b. Any pumping apparatus, which includes themotor, gauge, nozzle, hose or pipes thatare, or were, connected to one or more con-tainers, tanks or vessels described in Para-graph a.;

c. Filler pipes and flues connected to one ormore containers, tanks or vessels describedin Paragraph a.;

d. A boiler, furnace or a water heater, the fuelfor which is stored in a container, tank orvessel described in Paragraph a.;

e. Fittings and pipes connecting the boiler, fur-nace or water heater to one or more con-tainers, tanks or vessels described inParagraph a.; or

f. A structure that is specifically designed andbuilt to hold escaped or released fuel fromone or more containers, tanks or vesselsdescribed in Paragraph a.

A “fuel system” does not include any fuel tanksthat are permanently affixed to a “motor vehicle”or watercraft owned by an “insured”, used forpowering the “motor vehicle” or watercraft andnot used at any time or in any manner for “busi-ness”.

6. “Fungi”

a. "Fungi" means any type or form of fungus,including mold or mildew, and any mycotox-ins, spores, scents or by-products producedor released by “fungi”.

b. Under Section II, it does not mean any“fungi” that are, are on, or are contained in,a product or goods intended for consump-tion.

7. "Insured" means:

a. You and residents of your household whoare:

(1) Your relatives; or

(2) Other persons under the age of 21 andin the care of any person namedabove.

b. A student enrolled in school full-time, as de-fined by the school, who was a resident ofyour household before moving out to attendschool, provided the student is under theage of:

(1) 24 and your relative; or

(2) 21 and in your care or the care of aperson described in a.(1) above; or

c. Any Additional Insured named in the Decla-rations, but only with respect to CoveragesA, B, E and F and only for the “residencepremises”.

d. Under Section II:

(1) With respect to animals or watercraft towhich this policy applies, any person ororganization legally responsible forthese animals or watercraft which areowned by you or any person included ina. or b. above. “Insured” does notmean a person or organization using orhaving custody of these animals or wa-tercraft in the course of any "business"or without consent of the owner; or

(2) With respect to any vehicle to whichthis policy applies:

(a) Persons while engaged in youremploy or that of any person in-cluded in a. or b. above; or

(b) Other persons using the vehicleon an "insured location" with yourconsent.

Under both Sections I and II, when the word animmediately precedes the word "insured", thewords an "insured" together mean one or more"insureds".

8. "Insured location" means:

a. The "residence premises";

b. The part of other premises, other structuresand grounds used by you as a residenceand:

(1) Which is shown in the Declarations; or

(2) Which is acquired by you during thepolicy period for your use as a resi-dence;

c. Any premises used by you in connectionwith 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 re-siding;

e. Vacant land, other than farm land, owned byor rented to an "insured";

f. Land owned by or rented to an "insured" onwhich a one or two family dwelling is beingbuilt as a residence for an "insured";

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

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

i. Any premises owned by you and rented toothers for use as a residence by not morethan two families, if shown in the Declara-tions as an ADDITIONAL RESIDENCERENTED TO OTHERS; or

j. Any other structure on the “residence prem-ises” rented to others as a private residencefor which a limit of liability is shown in theDeclarations for STRUCTURES RENTEDTO OTHERS.

9. "Motor vehicle" means:

a. A self-propelled land or amphibious vehicle;or

b. Any trailer or semi-trailer which is being car-ried on, towed by or hitched for towing by avehicle described in a. above.

10. "Occurrence" means:

a. An accident, including continuous or re-peated exposure to substantially the samegeneral harmful conditions, which resultsduring the policy period, in:

(1) "bodily injury"; or

(2) "property damage"; or

b. An offense, including a series of related of-fenses, committed during the policy periodthat results in "personal injury".

11. "Personal injury" means injury, other than “bod-ily injury”, caused by any of the following of-fenses committed during the policy period:

a. False arrest, detention or imprisonment;

b. Malicious prosecution;

c. The wrongful eviction from, wrongful entryinto, or invasion of the right of private occu-pancy of a room, dwelling or premises that a

person occupies, committed by or on behalfof its owner, landlord or lessor;

d. Oral, written or electronic publication of ma-terial that slanders or libels a person or or-ganization or disparages a person's ororganization's goods, products or services;or

e. Oral, written or electronic publication of ma-terial that violates a person's right of pri-vacy.

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

13. "Residence employee" means:

a. An employee of an "insured", or an em-ployee leased to an "insured" by a laborleasing firm under an agreement betweenan "insured" and the labor leasing firm, ifthe employee's duties are related to themaintenance or use of the "residence prem-ises", including household or domestic ser-vices; or

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

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

14. "Residence premises" means:

a. The one family dwelling where you reside;or

b. The two, three or four family dwelling whereyou reside in at least one of the family units;

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 A - DWELLING

1. We cover:

a. The dwelling on the "residence premises"shown in the Declarations, including struc-tures attached to the dwelling; and

b. Materials and supplies located on or next tothe "residence premises" used to construct,alter or repair the dwelling or other struc-tures on the "residence premises".

2. We do not cover land, including land on whichthe dwelling is located, except as provided un-der Additional Coverage 13. Land.

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COVERAGE B - OTHER STRUCTURES

1. We cover other structures on the "residencepremises" set apart from the dwelling by clearspace. This includes structures connected to thedwelling by only a fence, utility line, or similarconnection.

2. We do not cover:

a. Land, including land on which the otherstructures are located, except as providedunder Additional Coverage 13. Land:

b. Other structures rented or held for rental toany person not a tenant of the dwelling,unless used solely as a private garage.However, we do cover other structures rent-ed to others as a private residence for whicha limit of liability is shown in the Declara-tions for STRUCTURES RENTED TOOTHERS;

c. Other structures from which any "business"is conducted; or

d. Other structures used to store "business"property. However, we do cover a structurethat contains "business" property solelyowned by an "insured" or a tenant of thedwelling provided that "business" propertydoes not include gaseous or liquid fuel,other than fuel in a permanently installedfuel tank of a vehicle or craft parked orstored in the structure.

COVERAGE C - PERSONAL PROPERTY

1. Covered Property. We cover personal propertyowned or used by an "insured" while it is any-where in the world. At your request, we willcover personal property owned by:

a. Others while the property is on the part ofthe "residence premises" occupied by an"insured"; or

b. A guest or a "residence employee", whilethe property is in any residence occupied byan "insured".

This request may be made after a loss.

2. Limit For Property At Other Residences. Ourlimit of liability for personal property usually lo-cated at an "insured's" residence, other than the"residence premises", is 10% of the limit of li-ability for Coverage C. However, this limitationdoes not apply to personal property:

a. Moved from the "residence premises" be-cause it is being repaired, renovated or re-built and is not fit to live in or store propertyin; or

b. In a newly acquired principal residence for60 days from the time you begin to movethe property there.

3. Special Limits of Liability. The special limit foreach category shown below is the total limit foreach loss for all property in that category. Thesespecial limits do not increase the Coverage Climit of liability.

a. $2,000 on money, bank notes, bullion, goldother than goldware, silver other than sil-verware, platinum other than platinumware,coins, medals, scrip, stored value cards andsmart cards.

b. $5,000 on securities, accounts, deeds, evi-dence of debt, letters of credit, notes otherthan bank notes, manuscripts, passports,tickets and stamps. This limit applies re-gardless of the medium (such as paper orcomputer software) on which the materialexists.

This limit includes the cost to research, re-place or restore the information from thelost or damaged material.

c. $2,500 on watercraft of all types, includingtheir trailers, furnishings, equipment andoutboard engines or motors.

d. $3,000 on trailers or semitrailers not usedwith watercraft of all types.

e. $5,000 for loss by theft, misplacing or losingof jewelry, watches, and precious and semi-precious stones.

f. $5,000 for loss by theft, misplacing or losingof furs.

g. $6,000 for loss by theft, misplacing or losingof firearms and related equipment.

h. $10,000 for loss by theft, misplacing or los-ing of silverware, silver-plated ware, gold-ware, gold-plated ware, platinumware,platinum-plated ware and pewterware. Thisincludes flatware, hollowware, tea sets,trays and trophies made of or including sil-ver, gold, platinum or pewter.

The special limits of liability for categories b., e.,and h. are increased to a combined limit of $50,000while such property is in a vault at a federal or statechartered bank, savings and loan association orthrift institution. Caution: This limit does not applyto property removed from the premises of the bank,savings and loan association or thrift institution.

4. Property Not Covered. We do not cover:

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a. Articles separately described and specifi-cally insured, regardless of the limit forwhich they are insured, in this or other in-surance except as provided in Section I -Conditions, Loss Settlement.

b. Animals, birds or fish.

c. "Motor vehicles".

(1) This includes:

(a) Their accessories, equipment andparts; or

(b) Electronic apparatus and accesso-ries designed to be operatedsolely by power from the electricalsystem of the "motor vehicle". Ac-cessories include antennas, tapes,wires, records, discs or other me-dia that can be used with any ap-paratus described above.

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

(2) We do cover "motor vehicles" not re-quired to be registered for use on pub-lic roads or property, including theiraccessories, equipment and parts,which are:

(a) Used to service an "insured's"residence; or

(b) Designed to assist the handi-capped.

d. Aircraft meaning any contrivance used ordesigned for flight, including any partswhether or not attached to the aircraft.

We do cover model or hobby aircraft notused or designed to carry people or cargo.

e. Hovercraft and parts, whether or not at-tached to the hovercraft. Hovercraft meansa self-propelled motorized ground effect ve-hicle and includes, but is not limited to,flarecraft and air cushion vehicles.

f. Property of roomers, boarders and othertenants, except property of roomers andboarders related to an "insured".

g. Property in an apartment regularly rented orheld for rental to others by an "insured", ex-cept as provided under Additional Coverage11. Landlord’s Furnishings.

h. Property rented or held for rental to othersoff the "residence premises".

i. Property used for any “business” purpose,except as provided in Additional Coverage18. Business Property.

j. "Business" or personal records or data,whether stored in:

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

(2) Computers and related equipment.

except as provided in Additional Coverages17. Data Replacement and 18. BusinessProperty.

We do cover the cost of blank recording orstorage media, and of prerecorded com-puter programs available on the retail mar-ket.

k. Credit cards, electronic fund transfer cardsor access devices used solely for deposit,withdrawal or transfer of funds except asprovided in Additional Coverage 7. CreditCard, Electronic Fund Transfer Card Or Ac-cess Device, Forgery And CounterfeitMoney.

l. Grave markers, except as provided in Addi-tional Coverage 12. Grave Markers; or

m. Water or steam.

COVERAGE D - LOSS OF USE

The limit of liability for Coverage D is the total limitfor the coverages in 1. Additional Living Expense, 2.Fair Rental Value and 3. Civil Authority ProhibitsUse below.

1. Additional Living Expense. If a loss coveredunder Section I makes that part of the "resi-dence premises" where you reside not fit to livein, we cover any necessary increase in livingexpenses incurred by you so that your house-hold can maintain its normal standard of living.However, additional living expense due to“fungi”, other microbes or rot remediation willnot be paid in addition to any amounts paid orpayable under Additional Coverage 20. Limited“Fungi”, Other Microbes Or Rot Remediation.

Payment will be for the shortest time required torepair or replace the damage or, if you perma-nently relocate, the shortest time required foryour household to settle elsewhere.

2. Fair Rental Value. If a loss covered under Sec-tion I makes that part of the "residence prem-ises" rented to others or held for rental by younot fit to live in, we cover the fair rental value ofsuch premises less any expenses that do notcontinue while it is not fit to live in. However,

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fair rental value due to “fungi”, other microbesor rot remediation will not be paid in addition toany amounts paid or payable under AdditionalCoverage 20. Limited “Fungi”, Other MicrobesOr Rot Remediation.

Payment will be for the shortest time required torepair or replace such premises.

3. Civil Authority Prohibits Use. If a civil author-ity prohibits you from use of the "residencepremises" as a result of direct physical damageto neighboring premises caused by a Peril In-sured Against under this policy, we cover result-ing 1. Additional Living Expense and 2. FairRental Value as provided above for up to 30days. Neighboring premises means a premisesin sufficient proximity to the “residence prem-ises” that there exists a reasonable risk that theperil affecting the neighboring premises couldendanger either the “residence premises” or thesafety of its occupants while in the “residencepremises”.

4. Loss Or Expense Not Covered. We do notcover loss or expense due to cancellation of alease or agreement.

The periods of time under 1., 2. and 3. above arenot 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 InsuredAgainst that applies to the damaged prop-erty causes the loss; or

b. Ash, dust or particles from a volcanic erup-tion that has caused direct loss to a buildingor property contained in a building.

We do not pay for the removal of trees exceptas provided under 2. Tree Removal below.

2. Tree Removal. We will pay your reasonableexpense for the removal of one or more treesfallen on the "residence premises" as a result ofa Peril Insured Against, provided the tree(s):

a. Damage(s) a covered structure; or

b. Do(es) not damage a covered structure, but:

(1) Block(s) a driveway on the "residencepremises" which prevent(s) a "motorvehicle", that is registered for use onpublic roads or property, from enteringor leaving the "residence premises"; or

(2) Block(s) a ramp or other fixture de-signed to assist a handicapped personto enter or leave the dwelling building.

The most we will pay in any one loss, regardlessof the number of fallen trees, is $1,000. Nomore than $500 of this limit will be paid for theremoval of any one tree.

3. Reasonable Repairs.

a. We will pay the reasonable cost incurred byyou for the necessary measures takensolely to protect covered property that isdamaged by a Peril Insured Against fromfurther damage.

b. If the measures taken involve repair to otherdamaged property, we will pay only if thatproperty is covered under this policy and thedamage is caused by a Peril InsuredAgainst.

c. This coverage does not increase the limit ofliability that applies to the covered property;or

d. Relieve you of your duties, in case of a lossto covered property, described in 2.d. underSection I – Conditions.

4. Trees, Shrubs and Other Plants. We covertrees, shrubs, plants or lawns, on the "residencepremises", for loss caused by the following Per-ils Insured Against:

a. Fire or Lightning;

b. Explosion;

c. Riot or Civil Commotion;

d. Aircraft;

e. Vehicles not owned or operated by a resi-dent of the "residence premises";

f. Vandalism or Malicious Mischief; or

g. Theft.

We will pay up to 5% of the limit of liability thatapplies to the dwelling for all trees, shrubs,plants or lawns. No more than $1,000 of thislimit 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 payup to $1,000 for your liability assumed by con-tract or agreement for fire department chargesincurred when the fire department is called tosave or protect covered property from a PerilInsured Against. We do not cover fire depart-ment service charges if the property is located

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within the limits of the city, municipality or pro-tection district furnishing the fire department re-sponse.

No deductible applies to this coverage.

6. Property Removed. We insure covered prop-erty against direct loss from any cause while be-ing removed from a premises endangered by aPeril Insured Against and for no more than 90days while removed. This coverage does notchange the limit of liability that applies to theproperty being removed.

7. Credit Card, Electronic Fund Transfer CardOr Access Device, Forgery And CounterfeitMoney.

a. We will pay up to $10,000 for:

(1) The legal obligation of an "insured" topay because of the theft or unauthor-ized use of credit cards issued to orregistered in an "insured's" name;

(2) Loss resulting from theft or unauthor-ized use of an electronic fund transfercard or access device used for deposit,withdrawal or transfer of funds, issuedto or registered in an "insured's" name;

(3) Loss to an "insured" caused by forgeryor alteration of any check or negotiableinstrument; and

(4) Loss to an "insured" through accep-tance in good faith of counterfeit UnitedStates 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 groupof persons acting in concert; or

(2) In which any one person or group ofpersons acting in concert is concernedor implicated;

Is considered to be one loss.

c. We do not cover:

(1) Use of a credit card, electronic fundtransfer card or access device:

(a) By a resident of your household;

(b) By a person who has been en-trusted with either type of card oraccess device; or

(c) If an "insured" has not compliedwith all terms and conditions under

which the cards are issued or thedevices accessed; or

(2) Loss arising out of "business" use ordishonesty of an "insured".

d. If the coverage in a. applies, the followingdefense provisions also apply:

(1) If a suit is brought against an "insured"for liability under a.(1) or (2) above, wewill provide a defense at our expenseby counsel of our choice.

(2) We have the option to defend at ourexpense an "insured" or an "insured's"bank against any suit for the enforce-ment of payment under a.(3) above.

(3) We may investigate and settle anyclaim or suit that we decide is appro-priate. Our duty to defend a claim orsuit ends when the amount we pay forthe loss equals our limit of liability.

8. Loss Assessment. We will pay up to $50,000for your share of loss assessment charged dur-ing the policy period against you, as owner ortenant of the "residence premises", by a corpo-ration or association of property owners. Theassessment must be made as a result of directloss to the property, owned by all members col-lectively and of the type that would be coveredby this policy if owned by you, caused by a PerilInsured Against, other than:

a. Earthquake; or

b. Land shock waves or tremors which occurbefore, during or after a volcanic eruption.

The limit of $50,000 is the most we will pay withrespect to any one loss, regardless of the num-ber of assessments. We will apply only one de-ductible, per unit, to the total amount of any oneloss to the property described above, regardlessof the number of assessments.

We do not cover assessments charged againstyou or a corporation or association of propertyowners by any governmental body.

Section I Condition 17. Policy Period does notapply to this coverage.

SPECIAL LIMIT - We will not pay more than$1,000 of your assessment that results from adeductible in the policy of insurance purchasedby a corporation or association of property own-ers.

9. Collapse.

a. With respect to this additional coverage:

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(1) Collapse means an abrupt falling downor caving in of a building or any part ofa building with the result that the build-ing or part of the building cannot beoccupied for its current intended pur-pose.

(2) A building or any part of a building thatis in danger of falling down or caving inis not considered to be in a state of col-lapse.

(3) A part of a building that is standing isnot considered to be in a state of col-lapse even if it has separated from an-other part of the building.

(4) A building that is standing or any partof a building that is standing is not con-sidered to be in a state of collapseeven if it shows evidence of cracking,bulging, sagging, bending, leaning, set-tling, shrinkage or expansion.

b. We insure for direct physical loss to coveredproperty involving collapse of a building orany part of a building if the collapse wascaused only by one or more of the following:

(1) A Peril Insured Against;

(2) Decay that is hidden from view, unlessthe presence of such decay is known toan "insured" prior to collapse or thereare visible signs of water damage andthe "insured" has not taken prompt ac-tion to prevent further damage;

(3) Insect or vermin damage that is hiddenfrom view, unless the presence of suchinsect or vermin damage is known toan "insured" prior to collapse;

(4) Weight of contents, equipment, ani-mals or people;

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

(6) Use of defective material or methods inconstruction, remodeling or renovationif the collapse occurs during the courseof the construction, remodeling or reno-vation.

c. Loss to an awning, fence, patio, deck, pave-ment, swimming pool, underground pipe,flue, drain, cesspool, septic tank, founda-tion, retaining wall, bulkhead, pier, wharf ordock is not included under b.(2) through (6)above, unless the loss is a direct result ofthe collapse of a building or any part of abuilding.

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

10. Glass or Safety Glazing Material.

a. We cover:

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

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

(3) The direct physical loss to coveredproperty caused solely by the pieces,fragments or splinters of broken glassor safety glazing material which is partof a building, storm door or storm win-dow.

b. This coverage does not include loss:

(1) To covered property which results be-cause the glass or safety glazing mate-rial has been broken, except asprovided in a.(3) above; or

(2) On the "residence premises" if thedwelling has been vacant for more than60 consecutive days immediately be-fore the loss, except when the break-age results directly from EarthMovement as provided for in a.(2)above. Vacant means substantiallyempty of personal property necessaryto sustain normal occupancy. A dwell-ing being constructed is not consideredvacant.

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

11. Landlord's Furnishings. We will pay up to$10,000 for your appliances, carpeting and otherhousehold furnishings, in each apartment on the"residence premises" regularly rented or held forrental to others by an "insured", for loss causedby a Peril Insured Against, other than theft.

This limit is the most we will pay in any one lossregardless of the number of appliances, carpet-ing or other household furnishings involved inthe loss.

This coverage does not increase the limit of li-ability applying to the damaged property.

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12. Grave Markers. We will pay up to $5,000 forgrave markers, including mausoleums, on oraway from the "residence premises" for losscaused by a Peril Insured Against.

This coverage does not increase the limits of li-ability that apply to the damaged covered prop-erty.

13. Land. Whenever there is a covered loss to yourdwelling or other permanent structure and therelated repair or rebuilding requires excavation,replacement, or stabilization of land under oraround your dwelling or other permanent struc-ture, we will also pay up to 10% of the amountof the covered loss to your dwelling or other per-manent structure for the excavation, replace-ment, or stabilization of the land.

14. Refrigerated Products Coverage. We insure,up to $5,000, covered property stored in freez-ers or refrigerators on the "residence premises"for direct loss caused by:

a. Loss of power to the refrigeration unit. Lossof power means the complete or partial in-terruption of electric power due to conditionsbeyond an "insured's" control. Loss of powermust be caused by damage to:

(1) Generating equipment; or

(2) Transmitting equipment; or

b. Mechanical failure of the unit which storesthe property.

Coverage will apply only if you have maintainedthe refrigeration unit in proper working conditionimmediately prior to the loss.

15. Lock Replacement Coverage. We will pay upto $500 for the reasonable costs you incur to re-place the locks at the "residence premises"when your keys to the "residence premises"have been stolen. The theft of the keys must bereported to the police for this coverage to apply.

No deductible applies to this coverage.

16. Reward Coverage. We will pay up to $1,000 forthe payment of rewards you have incurred forinformation leading to the return of stolen arti-cles or the arrest and conviction of any per-son(s) who has stolen articles and/or damagedany of your covered property.

17. Data Replacement. We will pay up to $5,000 toreplace or recreate personal records or data asa result of loss by a Peril Insured Against. Thislimit applies:

a. Regardless of the medium (such as paper orcomputer software) on which the materialexists; and

b. To the cost to research, replace or restorethe information from the lost or damagedmaterial.

However, we will pay only if the records or dataare actually replaced or recreated at your ex-pense.

18. Business Property. We will pay up to $15,000for property, on the "residence premises," usedprimarily for "business" purposes. We will payup to $5,000 for property, away from the "resi-dence premises," used primarily for "business"purposes.

This includes the cost to replace or recreate"business" records or data as a result of loss bya Peril Insured Against. These limits apply:

a. Regardless of the medium (such as paper orcomputer software) on which the materialexists; and

b. To the cost to research, replace or restorethe information from the lost or damagedmaterial.

However, we will pay only if the records or dataare actually replaced or recreated at your ex-pense.

19. Inflation Coverage. The limits of liability forCoverages A, B, C and D may be adjusted atthe beginning of each successive policy term toreflect increases in the cost of insured property.The amount of such increase will be based onthe data provided by the appraisal companyshown in the Declarations. Payment of the re-quired premium when due for the successivepolicy term will be sufficient to indicate your ac-ceptance of the adjusted limits.

We will also adjust the limits of liability at thetime of a loss by the same percentage pro ratedfrom the effective date of the policy period orthe effective date of change if you have re-quested a change to the limit of liability for Cov-erage A during the policy period.

20. Limited “Fungi”, Other Microbes Or RotRemediation.

a. If a loss caused by a Peril Insured Againstresults in “fungi”, other microbes or rot, wewill pay for:

(1) Remediation of the “fungi”, other mi-crobes or rot. This includes paymentfor the reasonable and necessary costto:

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(a) Remove the “fungi”, other mi-crobes or rot from covered prop-erty or to repair, restore or replacethat property; and

(b) Tear out and replace any part ofthe building as needed to gain ac-cess to the “fungi”, other microbesor rot;

(2) Any reasonable and necessary in-crease in living expense you incur:

(a) So that your household can main-tain its normal standard of living;or

(b) Loss of fair rental value;

if the “fungi”, other microbes or rotmakes the “residence premises” not fitto live in; and

(3) Any reasonable and necessary testingor monitoring of air or property to con-firm the absence, presence or level ofthe “fungi”, other microbes or rot,whether performed prior to, during orafter removal, repair, restoration or re-placement.

b. We will pay under this additional coverageonly if:

(1) The covered loss occurs during the pol-icy period;

(2) All reasonable means were used tosave and preserve the property at thetime of and after the covered loss; and

(3) We receive prompt notice of the cov-ered cause of loss that is alleged tohave resulted in “fungi”, other microbesor rot.

c. The most we will pay under this additionalcoverage is the limit of liability shown in theDeclarations for Limited "Fungi", Other Mi-crobes Or Rot Remediation. This is themost we will pay for the total of all loss orcosts regardless of the:

(1) Number of locations or items of prop-erty insured under this policy; or

(2) Number of losses or claims made.

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

21. Identity Fraud Expense.

a. We will pay up to $25,000 for "expenses"incurred by an "insured" as the direct resultof any one "identity fraud" discovered duringthe policy period. Additionally, you will haveaccess to “resolution services” from a con-sumer fraud specialist who will assist you inthe process of restoring your identity.

Any act or series of acts:

(1) Committed by any one person or groupof persons acting in concert; or

(2) In which any one person or group ofpersons is concerned or implicated;

is considered to be one "identity fraud",even if a series of acts continues into a sub-sequent policy period.

b. Definitions. With respect to the provisionsof this additional coverage only, the follow-ing definitions are added:

"Expenses" means:

(1) Costs for notarizing fraud affidavits orsimilar documents for financial institu-tions or similar credit grantors or creditagencies that have required that suchaffidavits be notarized.

(2) Costs for certified mail to law enforce-ment agencies, credit agencies, finan-cial institutions or similar creditgrantors.

(3) Lost wages as a result of time taken offfrom work to meet with, or talk to, lawenforcement agencies, credit agenciesand/or legal counsel, or to completefraud affidavits, or due to wrongful in-carceration arising solely from some-one else having committed a crime inthe "insured's" name, up to a maximumpayment of $1,000 per week for amaximum period of five weeks. Lostwages shall not apply in the case ofwrongful incarceration absent allcharges being dropped or an acquittalof the "insured".

(4) Loan application fees for re-applyingfor a loan or loans when the originalapplication is rejected solely becausethe lender received incorrect credit in-formation.

(5) Reasonable attorney fees incurred,with our prior consent, for:

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(a) Defense of lawsuits broughtagainst the "insured" by merchantsor their collection agencies,

(b) The removal of any criminal orcivil judgments wrongly enteredagainst an "insured", and

(c) Challenging the accuracy or com-pleteness of any information in aconsumer credit report.

(6) Charges incurred for long distance tele-phone calls to merchants, law en-forcement agencies, financialinstitutions or similar credit grantors, orcredit agencies to report or discuss anactual "identity fraud".

(7) Costs for daycare and eldercare in-curred by an “insured” solely as a directresult of any one “identity fraud”.

"Identity fraud" means the act of knowinglytransferring or using, without lawful author-ity, a means of identification of an "insured"with the intent to commit, or to aid or abet,any unlawful activity that constitutes a viola-tion of federal law or a felony under any ap-plicable state or local law.

“Resolution services” include ordering yourcredit report, alerting credit reporting agen-

cies, providing credit monitoring, and pre-paring documentation and letters. You arelimited to a maximum of three 6-month en-rollments with the consumer fraud specialistwe provide to you for any one “identitytheft”.

“Resolution services” are not available toany individual under 14 years old and is lim-ited to those services not involved in the ob-taining of credit report information for anyindividual aged 14-17 years old.

c. Exclusions. The following additional exclu-sions apply to this coverage.

We do not cover:

(1) Loss arising out of "business pursuits"of any "insured".

(2) "Expenses" incurred due to any fraudu-lent, dishonest or criminal act by an "in-sured" or any person acting in concertwith an "insured", or by any authorizedrepresentative of an "insured", whetheracting alone or in collusion with others.

(3) Loss other than “expenses” or “resolu-tion services”.

d. Deductible. No deductible applies to "iden-tity fraud" coverage.

SECTION I - PERILS INSURED AGAINST

We insure against risk of direct physical loss toproperty described in Coverages A, B and C.

We do not insure, however, for loss:

A. Under Coverages A, B and C:

1. Excluded under Section I - Exclusions;

2. Involving collapse or danger of collapse, exceptas provided in Additional Coverage 9. Collapseunder Section I – Property Coverages; or

3. Caused by:

a. Freezing of a plumbing, heating, air condi-tioning or automatic fire protective sprinklersystem or of a household appliance, or bydischarge, leakage or overflow from withinthe system or appliance caused by freezing.This exclusion does not apply if you haveused reasonable care to:

(1) Maintain heat in the building; or

(2) Shut off the water supply and drain allsystems and appliances of water.

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

For purposes of this provision a plumbingsystem or household appliance does not in-clude a sump, sump pump or related equip-ment or a roof drain, gutter, downspout orsimilar fixtures or equipment;

b. Freezing, thawing, pressure or weight of wa-ter or ice, whether driven by wind or not, toa:

(1) Fence, pavement, patio or swimmingpool;

(2) Footing, foundation, bulkhead, wall, orany other structure or device that sup-ports all or part of a building, or otherstructure;

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

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(4) Pier, wharf or dock;

c. Theft in or to a dwelling under construction,or of materials and supplies for use in theconstruction until the dwelling is finishedand occupied;

d. Any of the following:

(1) Wear and tear, marring, deterioration;

(2) Mechanical breakdown, latent defect,inherent vice, or any quality in propertythat causes it to damage or destroy it-self;

(3) Smog, rust or other corrosion;

(4) Smoke from agricultural smudging orindustrial operations;

(5) Discharge, dispersal, seepage, migra-tion, release or escape of pollutantsunless the discharge, dispersal, seep-age, migration, release or escape is it-self caused by a Peril Insured Against.

Pollutants means any solid, liquid,gaseous or thermal irritant or contami-nant, including smoke, vapor, soot,fumes, acids, alkalis, chemicals andwaste. Waste includes materials to berecycled, reconditioned or reclaimed;

(6) Settling, shrinking, bulging or expan-sion, including resultant cracking, ofbulkheads, pavements, patios, foot-ings, foundations, walls, floors, roofs orceilings;

(7) Birds, vermin, rodents, or insects; or

(8) Animals owned or kept by an "insured."

Exception To 3.d.

Unless the loss is otherwise excluded, wecover loss to property covered under Cov-erage A, B or C resulting from an accidentaldischarge or overflow of water or steamfrom within a plumbing, heating, air condi-tioning or automatic fire protective sprinklersystem or household appliance on the "resi-dence premises". This includes the cost totear out and replace any part of a building,or other structure, on the "residence prem-ises", but only when necessary to repair thesystem or appliance. However, such tearout and replacement coverage only appliesto other structures if the water or steamcauses actual damage to a building on the"residence premises".

We do not cover loss to the system or ap-pliance from which this water or steam es-caped.

For purposes of this provision, a plumbingsystem or household appliance does not in-clude a sump, sump pump or related equip-ment or a roof drain, gutter, down spout orsimilar fixtures or equipment.

e. Constant or repeated seepage or leakage ofwater or steam, or the presence or conden-sation of humidity, moisture or vapor, thatoccurs over a period of 14 days or more.

Under A. 2. and 3. above, any ensuing loss toproperty described in Coverages A, B and C notexcluded by any other provision in this policy iscovered.

B. Under Coverages A and B:

Caused by vandalism or malicious mischief, andany ensuing loss caused by any intentional andwrongful act committed in the course of the van-dalism or malicious mischief, if the dwelling hasbeen vacant for more than 60 consecutive daysimmediately before the loss. Vacant means sub-stantially empty of personal property necessaryto sustain normal occupancy. A dwelling beingconstructed is not considered vacant.

C. Under Coverage C caused by:

1. Breakage of:

a. Eyeglasses, glassware, statuary, marble;

b. Bric-a-brac, porcelains and similar fragilearticles other than jewelry, watches,bronzes, cameras and photographic lenses.

There is coverage for breakage of the propertyby or resulting from:

a. Fire, lightning;

b. Windstorm, hail;

c. Smoke, other than smoke from agriculturalsmudging or industrial operations;

d. Explosion, volcanic eruption;

e. Riot, civil commotion;

f. Aircraft, vehicles;

g. Vandalism and malicious mischief;

h. Collapse of a building or any part of a build-ing;

i. Water not otherwise excluded;

j. Theft or attempted theft; or

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k. Sudden and accidental tearing apart, crack-ing, burning or bulging of:

(1) A steam or hot water heating system;

(2) An air conditioning or automatic fireprotective sprinkler system; or

(3) An appliance for heating water;

2. Dampness of atmosphere or extremes of tem-perature unless the direct cause of loss is rain,snow, sleet or hail;

3. Refinishing, renovating or repairing propertyother than watches, jewelry and furs;

4. Collision, other than collision with a land vehi-cle, sinking, swamping or stranding of water-craft, including their trailers, furnishings,equipment and outboard motors; or

5. Error in computer programming or instructionsto any computer.

SECTION I - EXCLUSIONS

A. We do not insure for loss caused directly or indi-rectly by any of the following. Such loss is ex-cluded regardless of any other cause or eventcontributing concurrently or in any sequence tothe loss. These exclusions apply whether or notthe loss event results in widespread damage oraffects a substantial area.

1. Ordinance or Law, meaning any ordinance orlaw:

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

b. Requiring any "insured" or others to test for,monitor, clean up, remove, contain, treat,detoxify or neutralize, or in any way respondto, or assess the effects of, pollutants.

Pollutants means any solid, liquid, gaseousor thermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes mate-rials to be recycled, reconditioned or re-claimed.

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

2. Earth Movement, meaning:

a. Earthquake including land shock waves ortremors before, during or after a volcaniceruption;

b. Landslide; mudslide, or mudflow;

c. Subsidence or sinkhole; or

d. Any other earth movement including earthsinking, rising or shifting;

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

This Exclusion A.2. does not apply to loss bytheft.

3. Water Damage, meaning:

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

b. Water or water-borne material below thesurface of the ground, including water whichexerts pressure on or seeps or leaks througha building, sidewalk, driveway, foundation,swimming pool or other structure;

caused by or resulting from human or animalforces or any act of nature.

Direct loss by fire, explosion or theft resultingfrom water damage is covered.

Water damage to property described in Cover-age C away from a premises or location owned,rented, occupied or controlled by an "insured" iscovered.

4. Neglect, meaning neglect of the "insured" touse all reasonable means to save and preserveproperty at and after the time of a loss.

5. War. War includes the following and any conse-quence of any of the following:

a. Undeclared war, civil war, insurrection, re-bellion or revolution;

b. Warlike act by a military force or militarypersonnel; or

c. Destruction, seizure or use for a militarypurpose.

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

6. Nuclear Hazard, to the extent set forth in 14.Nuclear Hazard Clause of Section I - Condi-tions.

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7. Intentional Loss, meaning any loss arising outof any act an "insured" commits or conspires tocommit with the intent to cause a loss.

In the event of such loss, no "insured" is entitledto coverage, even "insureds" who did not com-mit or conspire to commit the act causing theloss.

8. Governmental Action, meaning the destruc-tion, confiscation or seizure of property de-scribed in Coverage A, B or C by order of anygovernmental or public authority.

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

9. “Fungi”, Other Microbes or Rot, meaning anyloss or cost resulting from, arising out of, causedby, consisting of, or related to, “fungi”, other mi-crobes or rot. This exclusion does not apply to:

a. “Fungi”, other microbes or rot remediationcoverage that may be afforded under Addi-tional Coverage 20. Limited “Fungi”, OtherMicrobes Or Rot Remediation; or

b. “Fungi”, other microbes or rot that resultsfrom fire or lightning.

B. We do not insure for loss caused by any of thefollowing. However, any ensuing loss to propertydescribed in Coverages A, B and C not ex-cluded by any other provision in this policy iscovered.

1. Weather conditions. However, this exclusionapplies only if weather conditions contribute inany way with a cause or event excluded in A.above to produce the loss;

2. Acts or decisions, including the failure to actor decide, of any person, group, organization orgovernmental body;

3. Faulty, inadequate or defective:

a. Planning, zoning, development, surveying,siting;

b. Design, specifications, workmanship, repair,construction, renovation, remodeling, grad-ing, compaction;

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

d. Maintenance;

of part or all of any property whether on or offthe "residence premises."

SECTION I - CONDITIONS

1. Insurable Interest and Limit of Liability. Evenif more than one person has an insurable inter-est in the property covered, we will not be liablein any one loss:

a. To the "insured" for more than the amountof the "insured's" interest at the time of loss;or

b. For more than the applicable limit of liabil-ity.

2. Duties After Loss. In case of a loss to coveredproperty, we have no duty to provide coverageunder this policy if the failure to comply with thefollowing duties is prejudicial to us. These dutiesmust 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 fundtransfer card or access device company incase of loss as provided for in AdditionalCoverage 7. Credit Card, Electronic Fund

Transfer Card Or Access Device, ForgeryAnd Counterfeit Money;

d. Protect the property from further damage. Ifrepairs to the property are required, youmust:

(1) Make reasonable and necessary re-pairs to protect the property; and

(2) Keep an accurate record of repair ex-penses;

e. Cooperate with us in the investigation of aclaim;

f. Prepare an inventory of damaged personalproperty showing the quantity, description,actual cash value and amount of loss. At-tach all bills, receipts and related docu-ments that justify the figures in theinventory;

g. As often as we reasonably require:

(1) Show the damaged property;

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(2) Provide us with records and documentswe request and permit us to make cop-ies; and

(3) Submit to examination under oath,while not in the presence of any other"insured," and sign the same;

h. Send to us, within 60 days after our request,your signed, sworn proof of loss which setsforth, to the best of your knowledge and be-lief:

(1) The time and cause of loss;

(2) The interest of the "insured" and allothers in the property involved and allliens on the property;

(3) Other insurance which may cover theloss;

(4) Changes in title or occupancy of theproperty during the term of the policy;

(5) Specifications of damaged buildingsand detailed repair estimates;

(6) The inventory of damaged personalproperty described in f. above;

(7) Receipts for additional living expensesincurred and records that support thefair rental value loss;

(8) Evidence or affidavit that supports aclaim under the Credit Card, ElectronicFund Transfer Card Or Access Device,Forgery and Counterfeit Money cover-age, stating the amount and cause ofloss; and

(9) Receipts, bills or other records thatsupport your claim for "expenses" un-der "identity fraud" expense coverage.

3. Loss Settlement.

Covered property losses are settled as follows:

a. Property of the following type:

(1) Personal property;

(2) Awnings, carpeting, household appli-ances, outdoor antennas and outdoorequipment, whether or not attached tobuildings;

(3) Structures that are not buildings; and

(4) Grave markers and mausoleums;

at the replacement cost at the time of loss.

Replacement cost coverage will also applyto articles separately described and specifi-

cally insured in this policy and not subject toagreed value loss settlement.

We will pay no more than the least of thefollowing amounts:

(1) Replacement cost at the time of losswithout deduction for depreciation;

(2) The full cost of repair at the time ofloss;

(3) The limit of liability that applies to Cov-erage C, if applicable;

(4) Any applicable special limits of liabilitystated in this policy; or

(5) For loss to any item separately de-scribed and specifically insured in thispolicy, the limit of liability that appliesto the item.

Property listed below is not eligible for re-placement cost settlement. We will not paymore than the actual cash value at the timeof loss or the amount required to repair orreplace, whichever is less, for any of the fol-lowing:

(1) Antiques, fine arts, paintings and simi-lar articles of rarity or antiquity whichcannot be replaced.

(2) Memorabilia, souvenirs, collectorsitems and similar articles whose age orhistory contribute to their value.

(3) Articles not maintained in good orworkable condition.

(4) Articles that are outdated or obsoleteand are stored or not being used.

b. In this Condition 3.b., the terms "cost to re-pair or replace" and "replacement cost" in-clude the increased costs incurred tocomply with the enforcement of any ordi-nance or law which requires or regulates theconstruction, demolition, remodeling, reno-vation or repair of a covered building orother structure, except as provided underSection I Exclusion A.1. Buildings underCoverage A or B are settled at replacementcost without deduction for depreciation, sub-ject to the following:

(1) We will pay the cost to repair or re-place, after application of deductibleand without deduction for depreciation,but not more than the least of the fol-lowing amounts:

(a) The limit of liability under this pol-icy that applies to the building, in-

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creased in accordance with Para- We will increase the limits of liabilityfor Coverages B, C and D if the Cover-graph b.(2) below, if applicable;age A limit of liability is increased as a

(b) The replacement cost of that part result of a Coverage A loss. We will in-of the building damaged with ma- crease such limits by the same per-terial of like kind and quality and centage applied to Coverage A.for like use; or

(3) We will pay no more than the actual(c) The necessary amount actually cash value of the damage until actual

spent to repair or replace the repair or replacement is complete.damaged building.

However, if the cost to repair or replaceIf the building is rebuilt at a new prem- the damage is less than $5,000, we willises, the cost described in (b) above is settle the loss according to the provi-limited to the cost which would have sions of b.(1) above whether or not ac-been incurred if the building had been tual repair or replacement is complete.built at the original premises.

If you elect not to rebuild after a cov-(2) If you have: ered total loss, we will pay the lesser

of:(a) Allowed us to adjust the CoverageA limit of liability and the premium (a) The replacement cost at the timein accordance with: of loss without deduction for de-

preciation; or(i) The property evaluations wemake; and (b) The Coverage A limit of liability.

(ii) Any increases in inflation; (4) You may disregard the replacementand cost loss settlement provisions and

make claim under this policy for loss or(b) Notified us, within 30 days of com-damage to buildings on an actual cashpletion, of any improvements, al-value basis. You may then make claimterations or additions to thefor any additional liability on a re-building which increase the re-placement cost basis, provided you no-placement cost of the building bytify us of your intent to do so within 1805% or more;days after the date of loss.

Then, if there is a loss to the dwelling,4. Loss Deductible. Unless otherwise stated inand:

this policy, the following deductible provision(i) The cost to repair or replace; plus applies:

(ii) The increased costs to comply a. Subject to the policy limits that apply, wewith the enforcement of any ordi- will pay only that part of the total of all lossnance or law which requires or payable under Section I that exceeds theregulates the construction, demoli- deductible amount shown in the Declara-tion, remodeling, renovation or re- tions.pair of the dwelling exceeds the

b. However, if the amount of the covered lossCoverage A limit of liability shownis equal to or greater than $50,000 we willin the Declarations; andwaive the first $500 of any deductible.

(iii) You elect to repair or replace the5. Loss to a Pair or Set. In case of loss to a pairdamaged or destroyed dwelling;

or set we may elect to:We will increase the Coverage A limit

a. Repair or replace any part to restore the pairof liability:or set to its value before the loss; or

(i) To equal the current replacementb. Pay the difference between actual cashcost of the building; or

value of the property before and after the%(ii) Up to of the Coverage A loss.

limit of liability;6. Loss Payment. We will adjust all losses with

whichever is less; and you. We will pay you unless some other personis named in the policy or is legally entitled to re-

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ceive payment. Loss will be payable 60 days af-ter 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 withus.

7. Appraisal. If you and we fail to agree on theamount of loss, either may demand an appraisalof the loss. In this event, each party will choosea competent and impartial appraiser within 20days after receiving a written request from theother. The two appraisers will choose an umpire.If they cannot agree upon an umpire within 15days, you or we may request that the choice bemade by a judge of a court of record in the statewhere the "residence premises" is located. Theappraisers will separately set the amount ofloss. If the appraisers submit a written report ofan agreement to us, the amount agreed uponwill 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 theamount of loss.

Each party will:

a. Pay its own appraiser; and

b. Bear the other expenses of the appraisaland umpire equally.

8. Other Insurance and Service Agreement. If aloss covered by this policy is also covered by:

a. Other insurance, we will pay only the pro-portion of the loss that the limit of liabilitythat applies under this policy bears to the to-tal amount of insurance covering the loss; or

b. A service agreement, the coverage pro-vided under this policy is excess over anyamounts payable under any such agree-ment. Service agreement means a serviceplan, property restoration plan, home war-ranty or other similar service warrantyagreement, even if it is characterized as in-surance.

9. Suit Against Us. No action can be broughtagainst us unless there has been full compli-ance with all of the terms of this policy and theaction is started within two years after the dateof loss.

10. Our Option. If we give you written notice within30 days after we receive your signed, swornproof of loss, we may repair or replace any partof the damaged property with material or prop-erty of like kind and quality.

11. Abandonment of Property. We need not ac-cept any property abandoned by an "insured."

12. Mortgage Clause.

a. If a mortgagee is named in this policy, anyloss payable under Coverage A or B will bepaid to the mortgagee and you, as interestsappear. If more than one mortgagee isnamed, the order of payment will be thesame as the order of precedence of themortgages.

b. If we deny your claim, that denial will notapply to a valid claim of the mortgagee, ifthe mortgagee:

(1) Notifies us of any change in ownership,occupancy or substantial change in riskof which the mortgagee is aware;

(2) Pays any premium due under this pol-icy on demand if you have neglected topay the premium; and

(3) Submits a signed, sworn statement ofloss within 60 days after receiving no-tice from us of your failure to do so.Policy conditions relating to Appraisal,Suit Against Us and Loss Payment ap-ply to the mortgagee.

c. If we decide to cancel or not to renew thispolicy, the mortgagee will be notified atleast 10 days before the date cancellation ornonrenewal takes effect.

d. If we pay the mortgagee for any loss anddeny payment to you:

(1) We are subrogated to all the rights ofthe mortgagee granted under the mort-gage on the property; or

(2) At our option, we may pay to the mort-gagee the whole principal on the mort-gage plus any accrued interest. In thisevent, we will receive a full assignmentand transfer of the mortgage and allsecurities held as collateral to the mort-gage debt.

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

13. No Benefit To Bailee. We will not recognizeany assignment or grant any coverage thatbenefits a person or organization holding, stor-ing or moving property for a fee regardless ofany other provision of this policy.

14. Nuclear Hazard Clause.

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a. "Nuclear Hazard" means any nuclear reac-tion, radiation, or radioactive contamination,all whether controlled or uncontrolled orhowever caused, or any consequence ofany of these.

b. Loss caused by the nuclear hazard will notbe considered loss caused by fire, explo-sion, or smoke, whether these perils arespecifically named in or otherwise includedwithin the Perils Insured Against.

c. This policy does not apply under Section I toloss caused directly or indirectly by nuclearhazard, except that direct loss by fire result-ing from the nuclear hazard is covered.

15. Recovered Property. If you or we recover anyproperty for which we have made payment un-der this policy, you or we will notify the other ofthe recovery. At your option, the property will bereturned to or retained by you or it will becomeour property. If the recovered property is re-turned to or retained by you, the loss paymentwill be adjusted based on the amount you re-ceived for the recovered property.

16. Volcanic Eruption Period. One or more vol-canic eruptions that occur within a 72-hour pe-riod will be considered as one volcanic eruption.

17. Policy Period. This policy applies only to losswhich occurs during the policy period.

18. Concealment or Fraud. We provide coverageto no "insureds" under this policy if, whether be-fore or after a loss, an "insured" has:

a. Intentionally concealed or misrepresentedany material fact or circumstance;

b. Engaged in fraudulent conduct; or

c. Made false statements;

relating to this insurance.

19. Premises Alarm or Fire Protection System.(Applies only if PROTECTIVE DEVICESCREDIT is shown in the Declarations.)

We acknowledge the installation of an alarmsystem and/or an automatic sprinkler systemapproved by us on the “residence premises”.You agree to maintain this system or systems inworking order and to let us know promptly ofany change, including removal, made to thesystem(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", "prop-erty damage" or "personal injury" caused by an"occurrence" to which this coverage applies, we will:

1. Pay up to our limit of liability for the damages forwhich the "insured" is legally liable. Damages in-clude prejudgment interest awarded against the"insured"; and

2. Provide a defense at our expense by counsel ofour choice, even if the suit is groundless, false orfraudulent. We may investigate and settle anyclaim or suit that we decide is appropriate. Ourduty to settle or defend ends when our limit of li-ability is exhausted by the payment of a judgmentor settlement.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

We will pay the necessary medical expenses that areincurred or medically ascertained within three yearsfrom 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 funeralservices. This coverage does not apply to you orregular residents of your household except "residenceemployees." As to others, this coverage applies only:

1. To a person on the "insured location" with thepermission 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 thecourse of the "residence employee's" em-ployment by an "insured"; or

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

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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 againstan "insured" in any suit we defend;

b. Premiums on bonds required in a suit we de-fend, but not for bond amounts more than thelimit of liability for Coverage E. We need notapply for or furnish any bond;

c. Reasonable expenses incurred by an "in-sured" at our request, including actual loss ofearnings (but not loss of other income) up to$250 per day, for assisting us in the investi-gation or defense of a claim or suit; and

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

2. First Aid Expenses. We will pay expenses forfirst aid to others incurred by an "insured" for"bodily injury" covered under this policy. We willnot pay for first aid to you or any other "insured."

3. Damage to Property of Others. We will pay, atreplacement cost, up to $1,000 per "occurrence"for "property damage" to others caused by an "in-sured."

We will not pay for "property damage":

a. To the extent of any amount recoverable un-der Section I of this policy;

b. Caused intentionally by an "insured" who is13 years of age or older;

c. To property owned by an "insured";

d. To property owned by or rented to a tenant ofan "insured" or a resident in your household;or

e. Arising out of:

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

(2) Any act or omission in connection with apremises owned, rented or controlled byan "insured," other than the "insured lo-cation"; or

(3) The ownership, maintenance, occu-pancy, operation, use, loading or unload-ing 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 offpublic roads;

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

(c) At the time and place of an "occur-rence", is not required by law, orregulation issued by a governmentagency, to have been registered forit to be used at the place of the "oc-currence".

4. Loss Assessment. We will pay up to $50,000 foryour share of loss assessment charged againstyou as owner or tenant of the "residence prem-ises", during the policy period by a corporation orassociation of property owners, when the as-sessment is made as a result of:

a. "Bodily injury", “personal Injury” or “propertydamage" not excluded under Section II - Ex-clusions; or

b. Liability for an act of a director, officer or trus-tee in the capacity as a director, officer ortrustee, provided such person:

(1) Is elected by the members of a corpora-tion or association of property owners;and

(2) Serves without deriving any incomefrom the exercise of duties which aresolely on behalf of a corporation or as-sociation of property owners.

Condition 9. Policy Period, under Section II -Conditions does not apply to this coverage.

Regardless of the number of assessments, thelimit of $50,000 is the most we will pay for lossarising out of:

a. One accident, including continuous or re-peated exposure to substantially the samegeneral 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 againstyou or a corporation or association of propertyowners by any governmental body.

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SECTION II - EXCLUSIONS

A. Coverage E - Personal Liability and CoverageF - 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 "propertydamage":

a. Is of a different kind, quality or degree thaninitially expected or intended; or

b. Is sustained by a different person, entity, realor personal property, than initially expected orintended.

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 orproperty.

2. Arising out of or in connection with a "business"conducted from an "insured location" or engagedin by an "insured", whether or not the "business"is owned or operated by an "insured" or employsan "insured". This exclusion A.2. applies to, but isnot limited to, an act or omission, regardless of itsnature or circumstance, involving a service orduty rendered, promised, owed, or implied to beprovided because of the nature of the "business".

This exclusion A.2. does not apply to:

a. The rental or holding for rental of an "insuredlocation";

(1) On an occasional basis if used only as aresidence;

(2) In part for use only as a residence,unless a single family unit is intended foruse by the occupying family to lodgemore 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 TOOTHERS.

(5) Shown in the Declarations as a STRUC-TURE RENTED TO OTHERS.

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 compen-

sation for the consecutive 12 months beforean "occurrence";

3. Arising out of the rendering of or failure to renderprofessional 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 thefollowing 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 awarlike act even if accidental;

6. Arising out of the transmission of a communica-ble 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 aControlled Substance(s) as defined by the Fed-eral Food and Drug Law at 21 U.S.C.A. Sections811 and 812. Controlled Substances include butare not limited to cocaine, LSD, marijuana and allnarcotic drugs. However, this exclusion does notapply to the legitimate use of prescription drugsby a person following the orders of a licensedphysician.

9. Arising out of, consisting of, caused by, contrib-uted to, aggravated by or resulting from, whetherdirectly or indirectly, by “fungi”, other microbes orrot. 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, orfailures to disclose, recommendations, warn-ings, or advice given, or that allegedly shouldhave been given, in connection with “bodilyinjury” or “property damage” consisting of,

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arising out of, caused by, contributed to, ag-gravated by or resulting from, whether di-rectly or indirectly, by “fungi”, other microbesor rot, or the activities described in 9.a.above;

c. Any obligation to share with or repay anotherwho must pay damages because of “bodilyinjury” or “property damage” damage of thetype described in this exclusion. This appliesregardless of any other cause that contributeddirectly or indirectly, concurrently or in anysequence to the “bodily injury” or “propertydamage”; and

d. Liability imposed upon any “insured” by anygovernmental authority for “bodily injury” or“property damage” consisting of, arising outof, caused by, contributed to, aggravated byor resulting from, whether directly or indi-rectly, by “fungi”, other microbes or rot.

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 notlimited to:

a. Any supervision, instructions, recommenda-tions, warnings or advice given in connectionwith the above;

b. Any obligation to share damages, losses,costs, payments or expenses with or repaysomeone else who must make payment be-cause of such “bodily injury” or “propertydamage”, damages, loss, cost, payment orexpense; or

c. Any request, order or requirement to test for,monitor, abate, mitigate, remediate, contain,remove, dispose of, or in any way respond toor assess the effects of fuel in any form.

However, this exclusion does not apply to “bodilyinjury” or “property damage” arising out of fire orexplosion that results from such escaped or re-leased fuel.

B. Coverage E- Personal Liability and CoverageF- 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, atthe 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 roadsand:

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

(2) Owned by an "insured", provided the"occurrence" takes place on an "insuredlocation" as defined in Definitions para-graphs 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, notbuilt or modified after manufacture to exceeda speed of 25 miles per hour on level groundand, at the time of an "occurrence", is withinthe legal boundaries of:

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

(a) Play the game of golf or for otherrecreational or leisure activity al-lowed by the facility;

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

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

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

However this exception to the exclusion fromcoverage does not apply if, at the time and placeof 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 orproperty, but such registration is required bya law, or regulation issued by a governmentagency, for it to be lawfully used at the placeof the "occurrence"; or

c. Is being:

(1) Operated in, or practicing for, any prear-ranged or organized race, speed contestor other competition;

(2) Rented to others;

(3) Used to carry persons or cargo for acharge; or

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(4) Used for any other "business" purposeexcept for a motorized golf cart used forincidental "business" entertainment whileon 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 auxiliarypower that is:

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

(2) 26 feet or more in overall length and notowned by or rented to an "insured";

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

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

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

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

(2) One or more outboard engines or motorswith:

(a) 50 total horsepower or less; or

(b) More than 50 horsepower if the out-board engine or motor is not ownedby an "insured";

(c) More than 50 horsepower if the out-board engine or motor is owned byan "insured" who acquired it duringthe policy period, or:

(d) More than 50 horsepower if the out-board engine or motor is owned byan "insured" who acquired it beforethe policy period, but only if:

(1) You declare them at policy in-ception; or

(2) Your intent to insure them isreported to us in writing within45 days after you acquirethem.

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

Horsepower means the maximum power rat-ing assigned to the engine or motor by themanufacturer.

However this exception to the exclusion fromcoverage does not apply if, at the time and place

of an "occurrence", the involved watercraft is be-ing:

a. Operated in, or practicing for, any prear-ranged or organized race, speed contest orother competition. This exclusion does notapply to a sailing vessel or a predicted logcruise;

b. Rented to others;

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

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 ap-ply to "bodily injury" to a "residence employee" arisingout 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 youas a member of an association, corporationor community of property owners, except asprovided in Additional Coverage 4. Loss As-sessment;

b. Under any contract or agreement entered intoby an "insured". However, this exclusion doesnot 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 as-sumed by the "insured" prior to an "oc-currence";

unless excluded in a. above or elsewhere inthis policy;

2. "Property damage" to property owned by the "in-sured". This includes costs or expenses incurredby 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 ofothers, 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, explosion, or waterdamage;

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4. "Bodily injury" to any person eligible to receiveany benefits voluntarily provided or required to beprovided by an "insured" under any:

a. Workers' compensation law;

b. Non-occupational disability law; or

c. Occupational disease law;

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 Under-writers;

(3) Nuclear Insurance Association of Can-ada;

or any of their successors; or

b. Would be an insured under that policy but forthe exhaustion of its limit of liability;

6. "Bodily injury" to you or an "insured" as defined inDefinition 7.a. or b.

This exclusion also applies to any claim made orsuit brought against you or an "insured":

a. To repay; or

b. Share damages with;

another person who may be obligated to paydamages because of "bodily injury" to an "in-sured";

7. "Bodily injury" to an “employee”, “residence em-ployee” or a temporary employee furnished to the“insured” to substitute for a permanent “residenceemployee” arising out of or in the course of theemployee’s employment by any Additional In-sured named in the Declarations; or

8. “Personal Injury”:

a. Arising out of an act an “insured” commits orconspires to commit with the knowledge thatthe act would violate the rights of another andwould inflict “personal injury”;

b. Arising out of oral, written or electronic publi-cation of material, if done by or at the direc-tion of an “insured” with knowledge of itsfalsity;

c. Arising out of oral, written or electronic publi-cation of material whose first publication tookplace before the beginning of the policy pe-riod;

d. Arising out of a criminal act an “insured” com-mits or conspires to commit;

e. Arising out of liability assumed by an "in-sured" under any contract or agreement ex-cept any indemnity obligation assumed by an“insured” under a written contract directly re-lating to the ownership, maintenance or useof the premises;

f. Sustained by any person as a result of an of-fense directly or indirectly related to the em-ployment of this person by the "insured";

g. Arising out of or in connection with a "busi-ness" conducted from an "insured location" orengaged in by an "insured", whether or notthe "business" is owned or operated by an "in-sured" or employs an "insured". This exclu-sion applies but is not limited to an act oromission, regardless of its nature or circum-stance, involving a service or duty rendered,promised, owed, or implied to be providedbecause of the nature of the "business";

h. Arising out of civic or public activities per-formed for pay by an "insured";

i. To you or an "insured" as defined under Defi-nition 7.a. or b.

This exclusion also applies to any claimmade or suit brought against you or an "in-sured":

(1) To repay; or

(2) Share damages with;

another person who may be obligated to paydamages because of "personal injury" to an"insured"; or

j. Arising out of the actual, alleged or threat-ened discharge, dispersal, seepage, migra-tion, release or escape of pollutants at anytime. This includes any loss, cost or expensearising out of any:

(1) Request, demand or order that an "in-sured" or others test for, monitor, cleanup, remove, contain, treat, detoxify orneutralize, or in any way respond to, orassess the effects of, pollutants; or

(2) Claim or suit by or on behalf of a gov-ernmental authority for damages be-cause of testing for, monitoring, cleanup, removing, containing, treating, de-toxifying or neutralizing, or in any wayresponding to, or assessing the effectsof pollutants.

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Pollutants means any solid, liquid, gaseous orthermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes materi-als to be recycled, reconditioned or re-claimed.

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 underany:

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 howevercaused; or

d. Any consequence of any of these; or

4. To any person, other than a "residence em-ployee" of an "insured", regularly residing on anypart 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 Elimit of liability shown in the Declarations. Thislimit is the same regardless of the number of "in-sureds", claims made or persons injured. All"bodily injury" and "property damage" resultingfrom any one accident or from continuous or re-peated exposure to substantially the same gen-eral harmful conditions shall be considered to bethe result of one "occurrence". All “personal in-jury” resulting from a series of related offensesshall be considered to be the result of one of-fense.

Our total liability under Coverage F for all medi-cal expense payable for "bodily injury" to oneperson as the result of one accident will not bemore than the Coverage F limit of liability shownin the Declarations.

2. Severability of Insurance. This insurance ap-plies separately to each "insured." This conditionwill not increase our limit of liability for any one"occurrence."

3. Duties After "Occurrence". In case of an "oc-currence", you or another "insured" will performthe following duties that apply. We have no dutyto provide coverage under this policy if your fail-ure to comply with the following duties is prejudi-cial to us. You will help us by seeing that theseduties are performed:

a. Give written notice to us as soon as is practi-cal, which sets forth:

(1) The identity of the policy and the named"insured" shown in the Declarations;

(2) Reasonably available information on thetime, place and circumstances of the"occurrence"; and

(3) Names and addresses of any claimantsand witnesses;

b. Cooperate with us in the investigation, set-tlement or defense of any claim or suit;

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 orindemnity against any person or organi-zation who may be liable to an "insured";

(3) With the conduct of suits and attendhearings and trials; and

(4) To secure and give evidence and obtainthe attendance of witnesses;

e. With respect to Additional Coverage 3. Dam-age to Property of Others, submit to us within60 days after the loss, a sworn statement ofloss 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

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obligation or incur expense other than for firstaid 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 theinjured person will:

(1) Give us written proof of claim, underoath if required, as soon as is practical;and

(2) Authorize us to obtain copies of medicalreports and records.

b. The injured person will submit to a physicalexam by a doctor of our choice when and asoften as we reasonably require.

5. Payment of Claim - Coverage F - Medical Pay-ments to Others. Payment under this coverageis not an admission of liability by an "insured" orus.

6. Suit Against Us. No action can be broughtagainst us unless there has been full compliancewith all of the policy provisions.

No one will have the right to join us as a party toany action against an "insured". Also, no actionwith 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-ligation under this policy.

8. Other Insurance. This insurance is excess overother valid and collectible insurance except in-surance written specifically to cover as excessover the limits of liability that apply in this policy.

9. Policy Period. This policy applies only to:

a. "Bodily injury" or "property damage" whichoccurs during the policy period; or

b. Offenses committed during the policy periodthat result in “personal injury”.

10. Concealment or Fraud. We do not provide cov-erage to an "insured" who, whether before or aftera loss, has:

a. Intentionally concealed or misrepresentedany 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 changewhich broadens coverage under this edition ofour policy without additional premium charge,that change will automatically apply to your insur-ance as of the date we implement the change inyour state, provided that this implementation datefalls within 60 days prior to or during the policyperiod stated in the Declarations.

This Liberalization Clause does not apply tochanges implemented with a general program re-vision that includes both broadenings and restric-tions of coverage, whether that general programrevision 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. Awaiver or change of a provision of this policymust be in writing by us to be valid. Our requestfor an appraisal or examination will not waive anyof our rights.

The coverage provided and the premium chargedare based on information you have given us. Youagree to cooperate with us in determining if this

information is correct and complete and to informus of any change in title, use or occupancy of the“residence premises”.

You agree that, if within 90 days of the policy ef-fective date this information changes, is incorrector incomplete, we may adjust your coverage andpremium accordingly by giving you notice. Thisnotice may be delivered to you, or mailed to youat your mailing address shown in the Declara-tions. The notice will contain the changed, incor-rect or incomplete information along with theresulting 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 writingof 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. Thiscancellation notice may be delivered to you,or mailed to you at your mailing addressshown in the Declarations. Proof of mailingwill be sufficient proof of notice. Any Addi-

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tional Insured named in the Declarations willalso be notified in writing.

(1) When you have not paid the premium,we may cancel at any time by letting youknow at least 10 days before the datecancellation takes effect.

(2) When this policy has been in effect forless than 60 days and is not a renewalwith us, we may cancel for any reasonby letting you know at least 10 days be-fore the date cancellation takes effect.

(3) When this policy has been in effect for60 days or more, or at any time if it is arenewal with us, we may cancel:

(a) If there has been a material misrep-resentation of fact which if known tous would have caused us not to is-sue the policy; or

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

This can be done by letting you know atleast 30 days before the date cancella-tion takes effect.

c. We will also mail a copy of any notice of can-cellation to any Additional Insured named inthe Declarations.

d. When this policy is cancelled, the premiumfor the period from the date of cancellation tothe expiration date will be refunded pro rata.

e. If the return premium is not refunded with thenotice of cancellation or when this policy isreturned to us, we will refund it within a rea-sonable time after the date cancellation takeseffect.

4. Nonrenewal. We may elect not to renew this pol-icy. We may do so by mailing to the named “in-sured” at the mailing address shown in theDeclarations, written notice at least 30 days be-fore the expiration date of this policy. Proof ofmailing will be sufficient proof of notice. We will

also mail a copy of the notice to any AdditionalInsured named in the Declarations.

If we offer to renew and you or your representa-tive do not accept, this policy will automaticallyterminate without notice of termination at the endof the current policy period. Failure to pay the re-quired renewal premium when due shall meanthat you have not accepted our offer.

5. Assignment. Assignment of this policy will not bevalid unless we give our written consent.

6. Subrogation. An "insured" may waive in writingbefore a loss all rights of recovery against anyperson. If they are not so waived, we may requirean assignment of rights of recovery for a loss tothe extent that payment is made by us.

If an assignment is sought, an "insured" must signand deliver all related papers and cooperate withus.

Subrogation does not apply under Section II toMedical Payments to Others or Damage to Prop-erty of Others.

7. Death. If any person named in the Declarationsor the spouse, if a resident of the same house-hold, dies:

a. We insure the legal representative of the de-ceased but only with respect to the premisesand property of the deceased covered underthe policy at the time of death;

b. "Insured" includes:

(1) An "insured" who is a member of yourhousehold at the time of your death, butonly while a resident of the "residencepremises"; and

(2) With respect to your property, the personhaving proper temporary custody of theproperty until appointment and qualifica-tion of a legal representative.

This policy is signed for the company which is the insurer under this policy.

abcdWendy C. Skjerven Gregory C. Toczydlowski

PresidentCorporate SecretaryPersonal Insurance

IN WITNESS WHEREOF, the Company has executed and attested these presents.

PL-9107 8-97