homeowners continuous protection plan western mutual … · 2016-03-31 · 3. “business“ means...

Homeowners Continuous Protection Plan

WESTERN MUTUAL INSURANCE COMPANY RESIDENCE MUTUAL INSURANCE COMPANY

Home Office 2172 Dupont Drive Irvine, CA 92612

Mailing Address P.O. Box 19626 Irvine, CA 92623-9626

Customer Service Phone 800-234-2103 Claim Department Phone 800 927-2142

Fax 949-838-0019 Web Site www.WesternMutual.com

www.ResidenceMutual.com

SERVING CALIFORNIA HOMEOWNERS FOR OVER 70 YEARS

HOMEOWNERS POLICY HO3 / HO3D (06/14)

HO3 / HO3D (06/14) - 1 - Includes copyright material of Insurance Services Office, Inc. with its permission

HOMEOWNERS POLICY SPECIAL FORM

AGREEMENT

We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy.

DEFINITIONS

Throughout this policy, “you” and “your” refer to the “named insured” shown in the Declarations and the spouse if a resident of the same household, and “we,” “us” and “our” refer to the Company providing this insurance. In addition, certain words and phrases are defined as follows: 1. “actual cash value“ means: a. in case of total loss to the structure, the policy

limit or the fair market value of the structure, whichever is less.

b. in case of partial loss to the structure, or loss to its contents, the amount it would cost you to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. The cost to repair, rebuild or replace does not in-clude the increased costs to comply with the enforcement of any ordinance or law. In case of a partial loss to the structure, a deduction for physical depreciation shall apply only to compo-nents of a structure that are normally subject to repair and replacement during the useful life of that structure.

2. “bodily injury“ means actual physical injury, sickness or disease. This includes required care, loss of services and death resulting there-from. Bodily injury does not include any of the following:

A. emotional distress, mental anguish, humilia-tion, mental distress, mental injury, physical distress, or any similar injury unless it arises out of actual physical injury to some person.

B. communicable disease, bacteria, parasite, virus, or other organism, any of which are trans-mitted by an insured to any other person. It also does not include the exposure to any such dis-ease, bacteria, parasite, virus, or other organism by an insured to any other person.

3. “business“ means a trade, profession or occu-pation, or any full or part time activity of any kind engaged in for economic gain or the use of any part of any premises for such purposes. This in-cludes farming.

4. “building“ means a structure with at least 3 full walls and a roof.

5. “Declarations“ means the policy Declarations,any amended Declarations, the most recent re-newal notice or certificate, an Evidence of

Insurance form, or any endorsement changing any of these.

6. “fine arts“ means paintings, etchings, pictures, tapestries, bronzes, antique furniture, antique sil-ver, art glass windows, other bonafide works of art (e.g., statues, marble, rare books and maga-zines, porcelains, rare glass, bric-a-brac of rarity) and items of historical value or artistic merit.

7. “insured” means you and the following residents of your household: a. your relatives, and any registered domestic

partner of yours as defined in Section 297 of the Family Code in California.

b. any other person under the age of 21 who is in the care of any person named above.

c. If you are not a permanent resident of the residence premises but included in the Declarations as a named insured, you are an insured but your insurance is restricted to:

(1) Coverages A and B under Section I – Property, and

(2) An occurrence arising out of the ownership, maintenance or use of the residence premises under Section II – Liability.

Under Section II, “insured” also means: d. with respect to animals or watercraft to which

this policy applies, any person or organiza-tion legally responsible for these animals or watercraft which are owned by you or any person included in a. or b. above. A person or organization using or having custody of these animals or watercraft in the course of any business, or without permission of the owner is not an insured;

e. with respect to any vehicle to which this poli-cy applies; (1) any person while engaged in your em-

ployment or the employment of any person included in a. or b. above;

8. “insured location” means: a. the residence premises;


b. that part of any other premises, other struc-tures and grounds, used by you as a residence and which is shown in the Decla-rations or which is acquired by you during the policy period for your use as a residence;

c. any premises used by you in connection with the premises included in a. or b. above;

d. any part of a premises not owned by an in-sured but where an insured is temporarily residing;

e. vacant land owned by or rented to an in-sured other than farm land;

f. land owned by or rented to an insured onwhich a one or two family dwelling is being constructed as a residence for an insured;

g. individual or family cemetery plots or burial vaults of an insured;

h. any part of a premises occasionally rented to an insured for other than business purpos-es.

9. “Microbial contamination” means any contami-nation, either airborne or surface, which arises out of or is related to the presence of mold, fun-gus, spores or any other pathogenic organism.

10. “occurrence” means an accident, including ex-posure to conditions which results, during the policy period, in bodily injury or property dam-age. Repeated or continuous exposure to the same general conditions is considered to be one occurrence.

Occurrence does not include accidents or events which take place during the policy period which do not result in bodily injury or propertydamage until after the policy period.

11. “Oriental rugs” are any hand-woven silk or wool rug, carpet, tapestry, wall-hanging or other simi-lar article, whose principle value is derived from its color, design, quality of wool or silk, quality of weaving, condition and age. Oriental rugs in-clude but are not limited to Persian (Iranian), Turkish, Caucasian and Turkoman, Chinese and Indian rugs.

12. “pathogenic organism” means any bacteria, yeast, mildew, virus, fungi, mold or other spores, mycotoxins or other metabolic products.

13. “property damage” means physical injury to or destruction of tangible property, including loss of use of this property.

14. “residence employee” means an employee of an insured who performs duties in connection with the maintenance or use of the residence premises, including household or domestic ser-vices, or who performs duties elsewhere of a similar nature not in connection with the busi-ness of an insured.

15. “residence premises” means the one or two family dwelling, other structures and grounds; or that part of any other building where you reside and which is shown in the Declarations.

SECTION I — COVERAGES

COVERAGE A — DWELLING We cover: 1. the dwelling on the residence premises shown

in the Declarations used principally as a private residence, including structures attached to the dwelling; and

2. materials and supplies located on or adjacent to the residence premises for use in the construc-tion, alteration or repair of the dwelling or other structures on the residence premises.

This coverage does not apply to land, including land on which the dwelling is located.

COVERAGE B — OTHER STRUCTURES We cover other structures on the residence premis-es, separated from the dwelling by clear space. Structures connected to the dwelling by only a fence, utility line, or similar connection are considered to be other structures. We do not cover other structures: 1. not permanently attached to or otherwise forming

a part of the realty, or

2. used in whole or in part for business purposes; or

3. rented or held for rental to any person not a ten-ant of the dwelling, unless used solely as a private garage.

This coverage does not apply to land, including land on which the other structures are located.

COVERAGE C — PERSONAL PROPERTY We cover personal property owned or used by an insured while it is anywhere in the world. At your request, we will cover personal property owned by others while the property is on that part of the resi-dence premises occupied exclusively by an insured.In addition, we will cover, at your request, personal property owned by a guest or a residence employee,while the property is in a residence occupied by an insured.Our limit of liability for personal property usually situ-ated at an insured’s residence, other than the residence premises, is 10% of the limit of liability for Coverage C. This is an additional amount of insur-ance. Personal property in a newly acquired principal residence is not subject to this limitation for the 30


days immediately after you begin to move the property there.SPECIAL LIMITS OF LIABILITY — The special limit for each following numbered category is the total limit for each loss for all property in that numbered catego-ry: 1. $200 on money, bank notes, bullion, gold other

than goldware, silver other than silverware, plati-num, coins and medals.

2. $1,000 on securities, accounts, deeds, evidenc-es of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the ma-terial exists.

This limit includes the cost to research, replace or restore the information from the lost or dam-aged material.

3. $1,000 on watercraft, including their trailers, furnishings, equipment and outboard engines or motors.

4. $1,500 on trailers not used with watercraft. 5. $1,000 for loss of jewelry, watches, furs, precious

and semi-precious stones. 6. $2,000 for loss by theft of firearms, firearm ac-

cessories or related equipment 7. $2,500 for loss by theft of silverware, silverplated

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

8. $2,500 on property on the “residence premis-es”, used at any time or in any manner for any “business” purpose.

9. $250 on property, away from the “residence premises,” used at any time or in any manner for any business purpose.

10. $3,000 on electronic data processing equipment and the recording or storage media used with that equipment. There is no coverage for said equipment or media while located away from the residence premises.

11. $200 on any one card and $1,000 in the aggre-gate on sports cards, including but not limited to baseball cards.

12. $2,500 on any one article and $10,000 in the aggregate for loss of oriental rugs.

13. $2,500 on any one article and $10,000 in the aggregate on fine arts.

The above limits do not increase the Coverage C limit of liability.

PROPERTY NOT COVERED We do not cover: 1. articles separately described and specifically

insured in this or any other insurance;

2. animals, birds or fish; 3. any engine or motor propelled vehicle or ma-

chine, including the parts, designed for movement on land. We do cover those used solely for the service of the insured locationand not licensed for use on public highways, or designed to assist the handicapped.

4. any device or instrument for the transmitting, recording, receiving or reproduction of sound or pictures which is operated by power from the electrical system of motor vehicles or all other motorized land conveyances, including while in or upon the vehicle: (a) accessories or anten-nas; or (b) tapes, wires, records, discs or other media for use with any such device or instru-ment. This exclusion does not apply to portable, battery-operated cellular telephones that cannot be operated off of the electrical system of a mo-tor vehicle, nor to digital cameras.

5. aircraft, including disassembled parts of aircraft. This exclusion does not apply to model aircraft. Any aircraft designed for carrying persons or cargo is not a model aircraft.

6. property of roomers, boarders and other tenants, not related to an insured;

7. property contained in an apartment regularly rented or held for rental to others by an insured;

8. property rented or held for rental to others away from the residence premises;

9. business property or merchandise in storage or held as a sample or for sale or delivery after sale;

10. business property pertaining to a businessactually conducted on the residence premises.

11. credit cards or fund transfer cards, except as provided in item 7., Section I, Additional Cov-erages.

COVERAGE D — LOSS OF USE The limit of liability for Coverage D is the total limit for all the following coverages: 1. If a loss covered under this Section makes that

part of the residence premises where you re-side uninhabitable, we cover, at your option, either:a. Additional Living Expense, meaning any

necessary increase in living expenses you incur so that your household can maintain its normal standard of living; or

b. Fair Rental Value, meaning the fair rental value of that part of the residence premiseswhere you reside, less any expenses that do not continue while the premises is uninhabit-able.

Payment under a. or b. shall be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time re-quired for your household to settle elsewhere.


2. If a loss covered under this Section makes that part of the residence premises you rent to oth-ers or hold for rental, uninhabitable, we cover: Fair Rental Value, meaning the fair rental

value of that part of the residence premisesyou rent to others or hold for rental, less any expenses that do not continue while the premises is uninhabitable.

Payment shall be for the shortest time required to repair or replace the damage.

3. If a civil authority prohibits you from use of the residence premises as a result of direct dam-age to neighboring premises by a Peril Insured Against in the policy, we cover the Additional Liv-ing Expense or Fair Rental Value loss as provided under 1., 2. above for a period not ex-ceeding two weeks during which use is prohibited.

The periods of time under 1., 2. and 3. above are not limited by expiration of this policy. We do not cover loss or expense due to cancellation of a lease or agreement. No deductible applies to this coverage.

ADDITIONAL COVERAGES 1. Debris Removal. We will pay the reasonable

expense you incur in the removal of debris of covered property provided coverage is afforded for the peril causing the loss. Debris removal expense is included in the limit of liability apply-ing to the damaged property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an addi-tional 5% of that limit of liability shown on the Declarations page will be available to cover de-bris removal expense.

We will also pay the reasonable expenses you incur removing fallen trees from the residence premises when: a. coverage is not afforded under Section I —

Additional Coverages, 3. Trees, Shrubs and Other Plants for the peril causing the loss; or

b. the tree is not covered by this policy; provided the tree damages covered property and

a Peril Insured Against under Coverage C is the cause of the tree falling. Our limit of liability for this coverage will not exceed $500 in the aggre-gate for any one loss.

2. Reasonable Repairs. We will pay the reasona-ble cost you incur for necessary repairs made solely to protect covered property from further damage, provided coverage is afforded for the peril causing the loss. This coverage does not increase the limit of liability applying to the prop-erty being repaired.

3. Trees, Shrubs and Other Plants. We cover, as an additional amount of insurance, trees, shrubs, plants or lawns, on the residence premises, for loss caused by the following Perils Insured Against: Fire or Lightning, Explosion, Riot or Civil Commotion, Aircraft, Vehicles not owned or op-erated by a resident of the residence premises,Vandalism or Malicious Mischief and Theft. The limit of liability for this coverage shall not exceed 5% of the limit of liability that applies to the dwell-ing for all trees, shrubs, plants and lawns, nor more than $500 for any one tree, shrub or plant. We do not cover property grown for businesspurposes.

4. Loss Assessment Coverage for Members of Homeowners Associations. We agree to pay your share of any loss assessment charged dur-ing the policy period against you by the association of property owners up to $1,000 when the assessment is made as a result of di-rect loss to the property owned by all members collectively, caused by a Peril Insured Against.

5. Property Removed. Covered property while being removed from a premises endangered by a Peril Insured Against, and for not more than 30 days while removed, is covered for direct loss from any cause. This coverage does not change the limit of liability applying to the property being removed.

6. Collapse. We insure for risk of direct physical loss to covered property involving collapse of a building or any part of a building caused by: a. Perils Insured Against in Coverage C — Per-

sonal Property; or b. the weight of ice, snow or rain which collects

on a roof. Loss to an awning, fence, patio, pavement,

swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not included un-der items a. and b. unless the loss is a direct result of the collapse of a building.

Collapse does not include settling, cracking, shrinking, bulging or expansion. This coverage does not increase the limit of

liability applying to the damaged covered property.

7. Credit Card, Fund Transfer Card, Forgery and Counterfeit Money.

We will pay up to $2000 for: a. the legal obligation of an insured to pay be-

cause of theft of or unauthorized use of credit cards issued to or registered in an insured’sname.

b. loss resulting from theft or unauthorized use of a fund transfer card used for deposit, with-drawal or transfer of funds, issued to or registered in an insured’s name.


We do not cover use by a resident of your household, a person who has been entrusted with the credit card or fund transfer card or any person if an insured has not complied with all terms and conditions under which the credit card or fund transfer card is issued.

c. loss to an insured caused by forgery or al-teration of any check or negotiable instrument; and

d. loss to an insured through acceptance in good faith of counterfeit United States or Ca-nadian paper currency.

All loss resulting from a series of acts committed by any one person or in which any one person is con-cerned or implicated is considered to be one loss.

We do not cover loss arising out of business pursuits or dishonesty of an insured.

We may make any investigation and settle any claim or suit that we decide is appropriate. If a suit is brought against an insured for liability under the Credit Card or Fund Transfer Card Coverage, we will provide a defense at our expense by counsel of our choice. We have the option to defend, at our ex-pense, an insured or an insured’s bank against any suit for the enforcement of payment under the Forgery Coverage.

This coverage is additional insurance. No deductible applies to this coverage.

LIMITED SMOKE, SOOT, ASH AND DEBRIS RESULTING HO CA WR 12 FROM WILDFIRE COVERAGE

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SCHEDULE*

This special limit of liability applies to the total of all losses or costs payable under this endorsement during the policy period, regardless of the number of buildings, other structures and personal property insured under this policy. This limit is the total annual aggregate limit available for all Section I – Property Coverages listed in the Schedule. This limit does not increase any of the Section I – Property Coverage limits of liability. Total Property Coverage Limit for Smoke, Soot, Ash and Debris resulting from a Wildfire or Brushfire. This limitation of coverage is only applicable if the loss is not reported to us within forty-five (45) days of the governmental authority’s full containment or extinguishment of the wildfire or brushfire event.

$2,500

Coverage A – Dwelling

Coverage B – Other Structures

Coverage C – Personal Property

Coverage D – Loss of Use *Entries may be left blank if shown elsewhere in this policy for this coverage.

With respect to the coverage provided under this en-dorse-ment, “smoke, soot, ash and debris resulting from a wildfire or brushfire” means any type of air or wind borne or wind driven smoke, soot, ash, dust, particle, material or byproduct that is produced, discharged, emitted or released during, caused by or at any time resulting from or following a wildfire and/or brushfire event.

The following is added to SECTION I – PROPERTY COVERAGES, Additional Coverages:

8. Smoke, Soot, Ash and Debris Resulting From a Wildfire or Brushfire

a. The amount shown in the Schedule above is the most we will pay for:

(1) The total of all loss payable under the Section I – property Coverages listed in the Schedule above

caused by “smoke, soot, ash and debris resulting from a wildfire or brushfire;”

(2) The cost to remove “smoke, soot, ash and debris resulting from a wildfire or brushfire” from covered property;

(3) The cost to tear out and replace any part of the building or other covered property as needed to gain access to the “smoke, soot, ash and debris resulting from a wildfire or brushfire;” and

(4) The cost of testing of air or property to confirm the ab-sence, presence or level of “smoke, soot, ash and debris resulting from a wildfire or brushfire,” whether performed prior to, during or after removal, repair, restoration or re-placement. The cost of such testing will be provided only to the extent that there is reason to believe that there is a presence of “smoke, soot, ash and debris re-sulting from a wildfire or brushfire.”


b. The coverage described in this endorsement only applies when such losses or costs are a result of a wildfire or brushfire event, regardless of when such wildfire or brushfire event occurred, and the losses or costs caused by “smoke, soot, ash and debris resulting from a wildfire or brushfire” occur during the policy peri-od.

However, this special limit of liability is not applicable where covered property at the insured premises has sustained loss or costs, including loss of use thereof, caused by “smoke, soot, ash and debris resulting from a wildfire or brushfire” if the claim for the loss or costs is reported to us within forty-five (45) days of the govern-mental authority’s full containment or extinguishment of the wildfire or brushfire event.

Any loss or costs caused by “smoke, soot, ash and de-bris resulting from a wildfire or brushfire” that is not reported to us within forty-five (45) days of the full con-tainment or extinguishment of the wildfire or brushfire event shall be subject to this special limit of liability.

c. The amount shown in the Schedule for this coverage is the most we will pay for the total of all losses or costs payable under this endorsement during the policy period regardless of the number of buildings, other structures and personal property insured under this policy.

d. If there is covered loss or damage to covered proper-ty, not caused, in whole or in part, by “smoke, soot, ash and debris resulting from a wildfire or brushfire,” the loss payment will not be limited by the terms of this endorse-ment, except to the extent that “smoke, soot, ash and debris resulting from a wildfire or brushfire” cause an increase in the loss. Any such increase in the loss will be subject to the terms of this endorsement.

e. This coverage does not increase the limit of liability applying to the damaged covered property or the loss of use thereof.

f. This special limit of liability is not applicable where covered property at the insured premises has sustained any direct damage by fire.

SECTION I — DEDUCTIBLE

In case of loss under Section I of this policy, we cover only that part of the loss over the deductible stated in the Dec-larations. The deductible does not apply to Coverage D — Loss of Use.

SECTION I — PERILS INSURED AGAINST

COVERAGE A — DWELLING AND COVERAGE B — OTHER STRUCTURES We insure for accidental direct physical loss to property described in Coverages A and B except: 1. losses excluded under Section I — Exclusions; 2. involving collapse, other than as provided in Addi-

tional Coverage 6; 3. freezing of a plumbing, heating, air conditioning or

automatic fire protective sprinkler system, or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing, while the dwelling is vacant, unoccupied or being constructed; unless you have used reasonable care to: a. maintain heat in the building; or b. shut off the water supply and drain the system

and appliances of water; 4. freezing, thawing, pressure or weight of water or

ice, whether driven by wind or not, to a fence, pavement, patio, swimming pool, foundation, re-taining wall, bulkhead, pier, wharf or dock;

5. theft in or to a dwelling under construction, or of materials and supplies for use in the construction, until the dwelling is completed and occupied;

6. vandalism and malicious mischief or breakage of glass and safety glazing materials if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant;

7. a. wear and tear, marring, deterioration; b. inherent vice, latent defect, mechanical break-

down; c. pressure from or presence of (1) any trees,

shrubs, plants or lawn, or (2) any root system from any trees, shrubs, plants or lawn.

d. contamination, smog, smoke from agricultural smudging or industrial operations;

e. settling, cracking, shrinking, bulging, or expan-sion of pavements, patios, foundations, walls, floors, roofs or ceilings;

f. birds, vermin, rodents, insects or domestic an-imals;

g. release, discharge or dispersal of contaminants or pollutants;

h. acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body;

i. faulty, inadequate or defective planning, zoning, development, surveying, siting, design, specifi-cations, workmanship, repair, construction,


renovation, remodeling, grading, compaction, materials or maintenance of part or all of any property.

If any of these cause direct physical loss or dam-age to covered property from direct contact with water, and the water results from a sudden and accidental discharge, eruption, overflow or release of water from within any portion of a plumbing, heating, air conditioning or automatic fire protective sprinkler system, or household appliance, we cov-er loss caused by the water. A sudden and accidental discharge, eruption, overflow or release of water does not include a constant or repeating gradual, intermittent or slow release of water, or the infiltration or presence of water over a period of time. We also cover the cost of tearing out and replacing any part of a building necessary to re-pair the system or appliance. We do not cover loss to the system or appliance from which the wa-ter escaped;

8. this policy does not cover any water, or the pres-ence of water or steam, over a period of time from any constant, continuous or repeating gradual, in-termittent or slow discharge, seepage, leakage, trickle, collecting infiltration, or overflow of water from any source whether known or unknown to any insured, whether or not hidden, from within a plumbing, heating or air conditioning system or from within a household appliance.

Under items 2 through 8, any ensuing loss not excluded is covered. 9. rust, mold, wet or dry rot, microbial contamina-

tion or pathogenic organism.

COVERAGE C — PERSONAL PROPERTY Subject to the losses excluded under Section I – Exclu-sions, we insure for accidental direct physical loss to property described in Coverage C caused by: 1. Fire or Lightning 2. Windstorm or Hail This peril does not include loss to the property

contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening.

This peril includes loss to watercraft and their trail-ers, furnishings, equipment, and outboard motors, only while inside a fully enclosed building.

3. Explosion 4. Riot or Civil Commotion 5. Aircraft, including self-propelled missiles and

spacecraft 6. Vehicles 7. Smoke, meaning sudden and accidental damage

from smoke.

This peril does not include loss caused by smoke from agricultural smudging or industrial operations.

8. Vandalism or Malicious Mischief 9. Theft, including attempted theft and loss of proper-

ty from a known location when it is likely that the property has been stolen.

This peril does not include: a. loss of a precious or semi-precious stone from

its setting. b. loss caused by theft:

(1) committed by an insured or by any other person regularly residing at the insuredlocation;

(2) in or to a dwelling under construction, or of materials and supplies for use in the con-struction until the dwelling is completed and occupied; or

(3) from that part of a residence premisesrented by an insured to other than an in-sured.

c. loss caused by theft that occurs away from the residence premises of: (1) property while at any other residence

owned, rented to or occupied by an in-sured, except while an insured is temporarily residing there. Property of a student who is an insured is covered while at a residence away from home.

(2) watercraft of all types, including their fur-nishings, equipment and outboard motors; or

(3) trailers and campers designed to be pulled or carried on a vehicle.

If the residence premises is a newly acquired principal residence, property in the immediately past principal residence shall not be consid-ered property away from the residence premises for the first 30 days after the incep-tion of this policy.

10. Falling Objects This peril does not include loss to property con-

tained in a building unless the roof or an exterior wall of the building is first damaged by a falling object. Damage to the falling object itself is not in-cluded.

11. Weight of Ice, Snow or Sleet which causes dam-age to property contained in a building.

12. Sudden and Accidental Discharge, Eruption, Overflow or Release of Water from within any portion of a plumbing, heating, air conditioning or automatic fire protective sprinkler system, or household appliance causing direct physical loss or damage to covered property from direct contact from water. A sudden and accidental discharge, eruption, overflow or release of water does not in-clude a constant or repeating gradual, intermittent


or slow release of water, or the infiltration or pres-ence of water over a period of time.

This peril does not include loss, including deterio-ration, rust, mold, or wet or dry rot: a. to the appliance or system from which the wa-

ter or steam escaped; b. caused by or resulting from freezing; c. on the residence premises caused by acci-

dental discharge or overflow which occurs off the residence premises.

d. caused by or resulting from any water, or the presence of water or steam, over a period of time from any constant, continuous or repeat-ing gradual, intermittent or slow discharge, seepage, leakage, trickle, collecting infiltration, or overflow of water from any source whether known or unknown to any insured, whether or not hidden, from within any portion of a plumb-ing, heating or air conditioning system or from within a household appliance;;

e. caused by or resulting from water which backs up through sewers or drains or water which en-ters into and overflows from within a sump pump, well or other type system designed to remove subsurface water which is drained from the foundation area.

13. Sudden and Accidental Tearing Apart, Crack-ing, Burning or Bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. This peril does not include loss, including deterio-

ration, rust, mold or wet or dry rot: a. caused by or resulting from freezing;

b. caused by or resulting from any water, or the presence of water or steam, over a period of time from any constant, continuous or repeat-ing gradual, intermittent or slow discharge, seepage, leakage, trickle, collecting infiltration, or overflow of water from any source whether known or unknown to any insured, whether or not hidden, from within any portion of a plumb-ing, heating or air conditioning system or from within a household appliance..

14. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system, or of a household appliance.

This peril does not include loss on the residence premises while the dwelling is vacant, unoccupied or being constructed, unless you have used rea-sonable care to: a. maintain heat in the building; or b. shut off the water supply and drain the system

and appliances of water. 15. Sudden and accidental damage to electrical

appliances, devices, fixtures and wiring from an in-crease or decrease of electrical currents artificially generated. There is no coverage for loss to a tube, transistor, wafer, card, chip, integrated circuit or similar electronic circuitry and components.

16. Breakage of glass, meaning damage to personal property caused by breakage of glass which is a part of a building on the residence premises.There is no coverage for loss or damage to the glass.

SECTION I - EXCLUSIONS

We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regard-less of any other cause or event contributing concur-rently or in any sequence to the loss. 1. Ordinance or Law, meaning enforcement of any

ordinance or law regulating the construction, re-pair, or demolition of a building or other struc-ture, unless specifically provided under this policy. However, loss for damage of glass caused by a Peril Insured Against shall be set-tled on the basis of replacement with safety glazing materials when required by ordinance or law.

2. Earth Movement, meaning the sinking, rising, shifting, expanding or contracting of earth, all whether combined with water or not. EarthMovement includes but is not limited to earth-quake, tectonic plate movement, landslide, mudflow, sinkhole, subsidence and erosion.

Earth Movement also includes volcanic explo-sion or lava flow.

We do insure for any direct loss by fire or explo-sion, other than explosion of a volcano, resulting from earth movement.

3. Water Damage, meaning: a. flood, surface water, waves, tidal water, over-

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

b. water, sewage or waterborne material which backs up through sewers, drains or sumps, or which overflows or is discharged from a sump, sump pump or related equipment, sewers or drains; or

c. water below the surface of the ground, in-cluding water which exerts pressure on, or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure.


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

4. Power Failure, meaning the failure of power or other utility service if the failure take place off the residence premises. But, if a Peril Insured Against ensues on the residence premises, we will pay only for that ensuing loss.

5. Neglect; meaning your failure to use all reason-able means to save and preserve property at and after the time of loss.

6. War, including undeclared war, civil war, insur-rection, rebellion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and includ-ing any consequence of any of these. Discharge of a nuclear weapon shall be deemed a warlike act even if accidental.

7. Nuclear Hazard, meaning any nuclear reaction, radiation or radioactive contamination, all wheth-er controlled or uncontrolled or however caused, or any consequence of any of these. Loss caused by the nuclear hazard shall not be con-sidered loss caused by fire, explosion, or smoke. However, we do insure for direct loss by fire re-sulting from the nuclear hazard.

8. Intentional Loss, meaning any loss arising out of any act committed: a. by or at the direction of an insured; and b. with the intent to cause a loss.

9.Pollution. All loss, damage, costs and/or ex-penses arising out of or caused by pollution, and all costs and/or expenses incurred by you to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants. Pollu-tants means any solid, liquid, gaseous or thermal irritant or contamination, including but

not limited to vapor, fumes, acids, alkalis, chemicals, asbestos, lead, microbial contami-nation, pathogenic organism, and waste. Waste includes, but is not limited to material to be recycled, reconditioned or reclaimed.

10. We do not insure for loss where one or more of the following (a) directly or indirectly cause, contribute to or aggravate the loss; or (b) occur before, at the same time, or after the loss or any other cause of the loss:

a. conduct, act, failure to act, or decision of any person, group, organization or governmental body whether intentional, wrongful, negligent, or without fault;

b. defect, weakness, inadequacy, fault or un-soundness in:

(1) planning, zoning, development, surveying, siting;

(2) design, specifications, workmanship, con-struction, grading, compaction;

(3) materials used construction, repair, reno-vation or remodeling; or

(4) maintenance; of any property (including land, structures, or

improvements of any kind) whether on or off the residence premises.

However, we do insure for any ensuing loss from items a. and b. unless the ensuing loss is itself an excluded loss under the terms of this policy.

Whenever rust, mold, wet or dry rot or microbialcontamination or pathogenic organism occurs, the rust, mold, wet or dry rot or microbial contaminationor pathogenic organism is always excluded under this policy, however caused.

SECTION I — CONDITIONS 1. Your Duties to Maintain Policy Limits. It is

your responsibility to maintain adequate amounts of insurance on your dwelling and personal prop-erty. To simplify your responsibility of keeping your dwelling and personal property insured to value during fluctuating economic conditions, we may adjust annually, either up or down, your pol-icy limits. This adjustment will be made on the renewal date of your policy, and will be based upon factors for your area supplied us by recog-nized appraisal agencies.

You will be notified in advance of the new amount of coverage. Payment of your renewal is all that is necessary to indicate your acceptance of the new amount.

2. Your Duties After Loss. In case of a loss to which this insurance may apply, you must see that the following are done: a. give immediate notice to us or our agent and,

in case of theft, also to the police; In the event of loss under the Credit Card or Fund Transfer coverage; also notify the credit card company;

b. protect the property at and after the loss from further damage, make reasonable and nec-essary repairs required to protect the property, and keep an accurate record of re-pair expenditures;

c. prepare an inventory of damaged or stolen personal property showing in detail the quan-tity, description, actual cash value and


amount of loss. Attach to the inventory all bills, receipts and related documents that substantiate the figures in the inventory;

d. as often as we reasonably require: (1) exhibit the damaged property; (2) provide us with records and documents

we request and permit us to make cop-ies; and

(3) provide recorded or signed statements (4) submit to examinations under oath and

subscribe the same. We may examine an insured separately and apart from the presence of any other insured, even af-ter the claim has been paid or closed.

e. submit to us, within 60 days after the loss, your signed, sworn statement of loss which sets forth, to the best of your knowledge and belief:(1) the time and cause of loss; (2) interest of the insured and all others in

the property involved and all encum-brances on the property;

(3) other insurance which may cover the loss;

(4) changes in title or occupancy of the property during the term of the policy;

(5) specifications of any damaged buildingand detailed estimates for repair of the damage;

(6) an inventory of damaged or stolen per-sonal property described in 2.c.;

(7) receipts for additional living expenses in-curred and records supporting the fair rental value loss.

3. Loss Settlement. In this Condition 3, the terms “repair or replace” and “replacement cost” do not include the increased costs incurred to comply with the enforcement of any ordinance or law. Covered property losses are settled as follows: a. (1) Personal property;

(2) carpeting, domestic appliances, awnings, outdoor antennas and outdoor equip-ment, whether attached to buildings or not; and

(3) structures that are not buildings; at actual cash value at the time of loss but

not more than the amount required to repair or replace.

b. Buildings under Coverage A or B at re-placement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss, the amount of in-

surance in this policy on the damaged building is 80% or more of the full re-placement cost of the building immedi-

ately prior to the loss, we will pay the cost of repair or replacement, without deduc-tion for depreciation, but not exceeding the smallest of the following amounts: (a) the limit of liability under the policy

applying to Coverage A or B; (b) the replacement cost of that part of

the damaged building for equivalent construction and use on the same premises as determined shortly fol-lowing the loss; or

(c) the amount actually and necessarily spent to repair or replace the dam-aged building as determined shortly following the loss;

(d) the direct financial loss you incur; or (e) our pro-rata share of any loss when

divided with any other valid and col-lectible insurance applying to the covered property at the time of loss.

(2) If, at the time of loss, the amount of in-surance in this policy on the damaged building is less than 80% of the full re-placement cost of the building immedi-ately prior to the loss, we will pay the larger of the following amounts, but not exceeding the limit of liability under this policy applying to the building:(a) the actual cash value of that part of

the building damaged; or (b) that proportion of the cost to repair or

replace, without deduction for depre-ciation, of that part of the buildingdamaged, which the total amount of insurance in this policy on the dam-aged building bears to 80% of the replacement cost of the building.

(3) In determining the amount of insurance required to equal 80% of the full re-placement cost of the buildingimmediately prior to the loss, you shall disregard the value of excavations, foun-dations, piers and other supports which are below the undersurface of the lowest basement floor or, where there is no basement, which are below the surface of the ground inside the foundation walls, and underground flues, pipes, wiring and drains.

(4) When the cost to repair or replace the damage is more than $1000 or more than 5% of the amount of insurance in this pol-icy on the building, whichever is less, we will pay no more than the actual cash value of the damage until actual repair or replacement is completed.

(5) You may disregard the replacement cost loss settlement provisions and make


claim under this policy for loss or damage to buildings on an actual cash valuebasis and then make claim within 12 months from the date that the first pay-ment toward the actual cash value is made for any additional liability on a re-placement cost basis. We may extend this 12 month period for good cause. In the event of a state declared emergency, this period of time is extended to 24 months.

(6) Payment of loss on an actual cash valuebasis will not include payment of a con-tractor’s overhead and profit unless and until such overhead and profit is actually incurred by you.

4. Loss to a Pair or Set. In case of loss to a pair or set, we may elect to: a. repair or replace any part to restore the pair

or set to its value before the loss; or b. pay the difference between actual cash val-

ue of the pair or set before and after the loss. 5. Appraisal. In case the insured and this compa-

ny shall fail to agree as to the actual cash value or the amount of loss, then, on the written re-quest of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days of the request. Where the request is accepted, the ap-praisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon the umpire, then, on request of the insured or this company, the umpire shall be se-lected by a judge of a court of record in the state in which the property covered is located. Ap-praisal proceedings are informal unless the insured and this company mutually agree other-wise. For purposes of this section, “informal” means that no formal discovery shall be con-ducted, including depositions, interrogatories, requests for admission, or other forms of formal civil discovery, no formal rules of evidence shall be applied, and no court reporter shall be used for the proceedings. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this company shall determine the amount of actual cash value and loss. Each ap-praiser shall be paid by the party selecting him or her and the expenses of appraisal and umpire shall be paid by the parties equally. In the event of a government-declared disaster, as defined in the Government Code, appraisal may be re-quested by either the insured or this company but shall not be compelled.

6.Other Insurance. If a loss covered by this policy is also covered by other insurance, we will pay only the proportion of the loss that the limit of li-

ability that applies under this policy bears to the total amount of insurance covering the loss.

7.Suit Against Us. No action shall be brought un-less there has been compliance with the policy provisions and the action is started within one year after inception of the loss.

8. Our Option. If we give you written notice within 30 days after we receive your signed, sworn proof of loss, we may repair or replace any part of the property damaged with equivalent proper-ty.

9. Loss Payment. We will adjust all losses with you. We will pay you unless some other person is named in the policy to receive payment. Loss will be payable 30 days after we receive your proof of loss and: a. reach agreement with you; or b. there is an entry of a final judgment; or c. there is a filing of an appraisal award with us.

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

11. Mortgage Clause. The word “mortgagee” includes trustee. If a mortgagee is named in this policy, any loss

payable under Coverage A or B shall be paid to the mortgagee and you, as interests appear. If more than one mortgagee is named, the order of payment shall be the same as the order of prec-edence of the mortgages.

If we deny your claim, that denial shall not apply to a valid claim of the mortgagee, if the mortga-gee:a. notifies us of any change in ownership, occu-

pancy or substantial change in risk of which the mortgagee is aware;

b. pays any premium due under this policy on demand if you have neglected to pay the premium;

c. submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Policy conditions re-lating to Appraisal, Suit Against Us and Loss Payment apply to the mortgagee;

d. complies with item 2.d. of Section I — Condi-tions.

If the policy is canceled or not renewed by us, the mortgagee shall be notified at least 10 days before the date cancellation or non-renewal takes effect.

If we pay the mortgagee for any loss and deny payment to you: a. we are subrogated to all the rights of the

mortgagee granted under the mortgage on the property; or

b. at our option, we may pay to the mortgagee the whole principal on the mortgage plus any


accrued interest. In this event, we shall re-ceive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.

Subrogation shall not impair the right of the mortgagee to recover the full amount of the mortgagee’s claim.

12. No Benefit to Bailee. We will not recognize any assignment or grant any coverage for the benefit

of any person or organization holding, storing or transporting property for a fee regardless of any other provision of this policy.

13. Intentional Acts. If you or any person insured under this policy causes or procures a loss to property covered under this policy for the pur-pose of obtaining insurance benefits, then this policy is void and we will not pay you or any other insured for this loss.

SECTION II — LIABILITY COVERAGES

COVERAGE E — PERSONAL LIABILITY If a claim is made or a suit is brought against an in-sured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies, we will: 1. pay up to our limit of liability for the damages for

which the insured is legally liable; and 2. subject to the insured’s compliance with the

terms of this policy, and subject to the limits of li-ability as defined herein, provide a defense at our expense by counsel of our choice, provided that coverage for said claim or suit is afforded by this policy. The selection of defense counsel will be the sole right and obligation of the Company. Any counsel retained by an insured will be at the sole expense of such insured. All defense costs incurred by the insured without written consent of the company shall be borne by the insured.Our obligation to defend any claim or suit ends when the amount we pay for damages resulting from the occurrence equals our limit of liability. We may investigate and settle any claim or suit that we decide is appropriate.

COVERAGE F — MEDICAL PAYMENTS TO OTHERS We will pay the necessary medical expenses incurred or medically ascertained within three years from the date of the accident causing bodily injury. Medical expenses means reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, profes-sional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household other than resi-dence employees. This coverage applies only: 1. to a person on the insured location with the

permission of an insured; or 2. to a person off the insured location, if the bodi-

ly injury:a. arises out of a condition in the insured loca-

tion or the ways immediately adjoining; b. is caused by the activities of an insured;

c. is caused by a residence employee in the course of the residence employee’s em-ployment by an insured; or

d. is caused by an animal owned by or in the care of an insured.

3. to a residence employee if the occurrencecausing bodily injury occurs off the insured lo-cation and arises out of or in the course of the residence employee’s employment by an in-sured.

ADDITIONAL COVERAGES We cover the following, in addition to the limits of liability: 1. Claim Expenses. We pay:

a. expenses incurred by us and costs taxed against an insured in any suit we defend;

b. premiums on bonds required in a suit de-fended by us, but not for bond amounts greater than the limit of liability for Coverage E. We are not obligated to apply for or fur-nish any bond;

c. up to $50 per day for loss of wages and sala-ry, when we ask you to attend trials and hearings.

d. interest on the entire judgment which accrues after entry of the judgment and before we pay or tender, or deposit in court that part of the judgment which does not exceed the limit of liability that applies;

e. prejudgment interest awarded against the in-sured on that part of the judgment we pay. If we make an offer to pay the applicable limit of liability, we will not pay any prejudgment interest based on that period of time after the offer.

2. First Aid Expenses. We will pay expenses for first aid to others incurred by an insured for bod-ily injury covered under this policy. We will not pay for first aid to you or any other insured.

3. Damage to Property of Others. We will pay up to $500 per occurrence for property damage to property of others caused by an insured.


We will not pay for property damage:a. to the extent of any amount recoverable un-

der Section I of this policy; b. caused intentionally by an insured who is 13

years of age or older; c. to property owned by or rented to an in-

sured, a tenant of an insured, or a resident in your household; or

d. arising out of:

(1) business pursuits; (2) any act or omission in connection with a

premises owned, rented or controlled by an insured, other than the insured loca-tion; or

(3) the ownership, maintenance, occupancy, loading or unloading, entering, exiting or use of aircraft, watercraft or motor vehicle or any other motorized land conveyance.

SECTION II — EXCLUSIONS

1.Coverage E—Personal Liability and Coverage F—Medical Payments to Others do not apply to bodily injury or property damage:a. resulting from an act or omission intended or

expected to cause bodily injury or propertydamage. This exclusion applies even if the bodily injury or property damage is of a dif-ferent kind or degree, or is sustained by a different person or property than that intend-ed or expected;

b. resulting from an act or omission committed by an insured person while insane or while lacking the mental capacity to control his or her conduct or while unable to form any in-tent to cause bodily injury or property damage. This exclusion applies only if a reasonable person would expect some bodi-ly injury or property damage to result from the act or omission.

c. to any person or property which is the result of willful and malicious acts of an insured.

d. arising out of business pursuits of an in-sured or the rental or holding for rental of any part of any premises by an insured.

If an insured regularly provides home day care services to a person or persons other than insureds and receives monetary or other compensation for such services, that enterprise is a business pursuit. Mutual ex-change of home day care services, however, is not considered compensation. The render-ing of home day care services by an insured without monetary or other compensation is not considered a business pursuit. This ex-clusion does not apply to: (1) activities which are ordinarily incident to

non-business pursuits; (2) the rental or holding for rental of a resi-

dence of yours; (a) for fewer than 45 days out of the 12

month period preceding the date of the occurrence.

(b) in part, unless intended for use as a residence by more than two roomers or boarders; or

e. arising out of the rendering or failing to ren-der professional services;

f. arising out of any premises owned or rented to an insured which is not an insured loca-tion;

g. arising out of the ownership, maintenance, use, occupancy, loading or unloading, enter-ing or exiting of: (1) aircraft. This exclusion does not apply to

model aircraft. Any aircraft designed for carrying persons or cargo is not a model aircraft.

(2) (a) motor vehicles or all other motorized land conveyances, including any trail-ers, owned or operated by or rented or loaned to an insured; or

(b) entrustment by an insured of a motor vehicle or any other motorized land conveyance to any person.

This exclusion does not apply to: (a) a trailer not towed by or carried on a

motorized land conveyance; (b) a motorized land conveyance de-

signed for recreational use off public roads, not subject to motor vehicle registration and owned by an in-sured, while on an insured location;

(c) a motorized golf cart when used to play golf on a golf course;

(d) a motorized land conveyance de-signed for assisting the handicapped or for the maintenance of an insuredlocation, which is: I. not designed for travel on public

roads; and ii. not subject to motor vehicle regis-

tration.(3) watercraft;


(a) owned by or rented to an insured if it has inboard or inboard-outboard mo-tor power of more than 50 horsepower; or

(b) owned by or rented to an insured if it is a watercraft 26 feet or more in overall length, with or without auxiliary power; or

(c) powered by one or more outboard motors with 25 or more total horse-power if the outboard motors are owned by an insured.

(d) designated as an airboat, air cushion, jet ski or similar type of craft.

Exclusion g.(3) does not apply while the wa-tercraft is stored and exclusions f. and g. do not apply to bodily injury to any residence employee arising out of and in the course of the residence employee’s employment by an insured.

h. bodily injury or property damage arising out of: (1) the entrustment by an insured to any

person;(2) the negligent supervision by an insured

of any person; (3) any liability statutorily imposed on an in-

sured; or (4) any liability assumed through an unwrit-

ten or written agreement by an insured; with regard to the ownership, occupancy,

loading or unloading, entering or exiting, maintenance or use of any aircraft, water-craft, or motor vehicle (or any other motorized land conveyance) which is not covered under Section II of this policy;

i. caused directly or indirectly by war, including undeclared war, civil war, insurrection, rebel-lion, revolution, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear weapon shall be deemed a war-like act even if accidental.

j. arising out of any condition in premises al-ienated by an insured that was known to, or is alleged to have been known by, an in-sured before title was transferred, including any claims of fraud or negligent misrepresen-tation. The Company shall have no duty to defend any such claims nor to indemnify an insured for any damages awarded on any such claims.

k. the legal liability of an insured to:

(1) any person who is in the care of an in-sured because of child care services provided by or at the direction of: (a) an insured;(b) any employee of an insured; or (c) any other person actually or appar-

ently acting on behalf of an insured.(2) any person who makes a claim because

of bodily injury to any person who is in the care of an insured because of child care services provided by or at the direc-tion of: (a) an insured;(b) any employee of an insured; or (c) any other person actually or appar-

ently acting on behalf of an insured. This exclusion does not apply to the oc-

casional child care services provided by an insured, or to the part-time child care services provided by an insured who is under 19 years of age.

l. arising out of the actual, alleged or threat-ened discharge or escape of toxic chemicals, microbial contamination, pathogenic or-ganism, or pollutants at or from premises owned, rented or occupied by an insured.

m. resulting from any act or omission which is criminal, committed by or at the direction of an insured, or an act or omission which is criminal in nature and committed by an in-sured who lacked the mental capacity to appreciate the criminal nature or wrongful-ness of the act or omission or conform his or her conduct to the requirements of the law, or to form the necessary intent under the law.

n. resulting from Personal Injury . Personal Inju-ry includes, but is not limited to:

1. false arrest, detention or imprisonment, or malicious prosecution.

2. libel, slander or defamation of character; or:

3. invasion of privacy, wrongful eviction or wrongful entry.

o. arising from demands for the payment of punitive or exemplary damages or the cost of defense related to such damages.

p. arising out of any microbial contaminationor pathogenic organisms(1.) regardless of any other cause or event

that contributed concurrently or in any sequence to that injury or damage, or

(2.) caused by or related to the abatement of any microbial contamination or pathogenic organism.


2. Coverage E—Personal Liability does not apply to:a. Liability:

(1) for your share of any loss assessment charged against all members of an asso-ciation of property owners;

(2) under any contract or agreement in con-nection with any business of an insured;

(3) under any other contract or agreement except those contracts directly relating to the maintenance or use of the insuredlocation not excluded in (1) or (2) above or elsewhere in this policy;

b. property damage to property owned by an insured;

c. property damage to property rented to, oc-cupied or used by, or in the care of, an insured. This exclusion does not apply to property damage caused by fire, smoke, explosion, or water;

d. bodily injury to any person eligible to re-ceive any benefits required to be provided or voluntarily provided by an insured under: (1) any workers’ or workmen’s compensa-

tion;(2) non-occupational disability; or (3) occupational disease law;

e. bodily injury or property damage for which an insured under this policy is also an in-sured under a nuclear energy liability policy or would be an insured but for its termination

upon exhaustion of its limit of liability. A nu-clear energy liability policy is a policy issued by Nuclear Energy Liability Insurance Asso-ciation, Mutual Atomic Energy Liability Under-writers, Nuclear Insurance Association of Canada, or any of their successors;

f. bodily injury to you or an insured within the meaning of part a. or b. of Definition 6 — “insured”.

3. Coverage F—Medical Payment to Others, does not apply to bodily injury:a. to a residence employee if it occurs off the

insured location and does not arise out of or in the course of the residence employ-ee’s employment by an insured;

b. to any person eligible to receive any benefits required to be provided or voluntarily provid-ed under any workers’ or workmen’s compensation, non-occupational disability or occupational disease law;

c. from any nuclear reaction, radiation or radio-active contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of these;

d. to any person, other than a residence em-ployee of an insured, regularly residing on any part of the insured location.

WORKERS’ COMPENSATION AND EMPLOYERS’ LIABILITY INSURANCE

RESIDENCE EMPLOYEES With respect to residence employees of the insured,

INSURING AGREEMENTS Coverage I — to pay promptly when due all compen-sation and other benefits required of the insured by the Workers’ Compensation Law, and Coverage II — to pay on behalf of the insured all sums which the insured shall become legally obligat-ed to pay as damages because of bodily injury by accident or disease, including death at any time re-sulting therefrom, sustained by any residence employee arising out of and in the course of his em-ployment by the insured. 1. sustained in the United States of America, its

territories or possessions, or Canada, or 2. sustained while temporarily outside the United

States of America, its territories or possessions, or Canada if the injured employee is a citizen or resident of the United States or Canada; but Coverage II does not apply to any suit brought in

or any judgment rendered by any court outside the United States of America, its territories or possessions, or Canada or to an action on such judgment wherever brought.

DEFINITIONA residence employee as used in this endorsement means any person employed by the owner or occu-pant of a residential dwelling whose duties are incidental to the ownership, maintenance or use of the dwelling, including the performance of household domestic services, or whose duties are personal and not in the course of the trade, business, profession or occupation of the owner or occupant, as defined. Persons so employed are covered provided that dur-ing the 90 calendar days immediately preceding the date of injury such employee has: 1. actually been engaged in such employment by

the insured for no less than 52 hours, and 2. earned from the insured no less than one hun-

dred dollars ($100) in wages.


APPLICATION OF COVERAGE This coverage applies only to injury (1) arising out of and in the course of employment and occurring during the policy period, or (2) occupational disease or cumu-lative injury of a residence employee who, during the term of this policy, actually worked for the insuredduring the last day of covered employment* which exposed the employee to the hazard of such occupa-tional disease or cumulative injury. * “covered employment” means employment for an

insured who possesses compensation coverage.

CONDITIONS1. Policy Provisions

None of the insuring agreements, exclusions or conditions of the policy shall apply to this en-dorsement except as stated above and the following: a. any policy condition or provision applying to:

(1) assignment, subrogation, or cancellation; (2) granting of permission or waiving of poli-

cy conditions or provisions; (3) insured’s duties in the event of an acci-

dent, occurrence, claim or suit as provided for under the personal liability or medical payments coverages;

(4) suit or action against the Company; (5) agreement for defense, settlement and

supplementary payments as provided for under the personal liability coverage;

b. the definition of the words “business,” “busi-ness property” and “insured premises,” if applicable.

2. Additional Provisions Applicable to Coverage I

The following provisions are applicable to Cover-age I afforded under this endorsement: a. The Company shall be directly and primarily

liable to any residence employee of the in-sured entitled to the benefits of the Workers’ Compensation Law under this policy.

b. As between the residence employee and the Company, notice to or knowledge of the oc-currence of the injury on the part of the insured will be deemed notice or knowledge as the case may be on the part of the Com-pany.

c. The jurisdiction of the insured will, for the purpose of the law imposing liability for com-pensation, be jurisdiction of the Company.

d. The Company will in all things be bound by and subject to the orders, findings, decisions or awards rendered against the insured un-der the provisions of the law imposing liability for compensation, subject to the provisions, conditions and limitations of the policy. This

policy shall govern as between the insuredand Company as to payments by either in discharge of the insured’s liability for com-pensation.

3. Limits of Liability Coverage II The words “damages because of bodily injury

by accident or disease, including death at any time resulting therefrom,” in Coverage II under this endorsement include damages for care and loss of services and damages for which the in-sured is liable by reasons of suits or claims brought against the insured by others to recover the damages obtained from such others because of such bodily injury sustained by residence employees of the insured arising out of and in the course of their employment. The limit of lia-bility stated below for Coverage II is the total limit of the Company’s liability for all damages be-cause of bodily injury by accident, including death at any time resulting therefrom, sustained by one or more residence employees in any one accident. The limit of liability stated below for Coverage II is the total limit of the Company’s li-ability for all damages because of bodily injuryby disease, including death at any time resulting therefrom, sustained by one or more residence employees of the insured.

The inclusion therein of more than one insuredshall not operate to increase the limits of the Company’s liability of $100,000.

4. Other Insurance This endorsement does not apply to any loss

with respect to which other valid and collectible Workers’ Compensation or Employers’ Liability Insurance applies.

TERMS OF POLICY CONFORMEDTO STATUTE The terms of this endorsement which are in conflict with the provisions of a Workers’ Compensation Law are hereby amended to conform to such law. EXCLUSIONSTHE POLICY DOES NOT APPLY:

1. TO LIABILITY FOR ADDITIONAL COMPENSATION IMPOSED ON THE INSUREDUNDER SECTIONS 4553 AND 4557, DIVISION IV, LABOR CODE OF THE STATE OF CALIFORNIA, BY REASON OF THE SERIOUS AND WILLFUL MISCONDUCT OF THE INSURED OR ANY REPRESENTATIVE OF THE INSURED OR BY REASON OF INJURY TO AN EMPLOYEE UNDER 16 YEARS OF AGE AND ILLEGALLY EMPLOYED AT THE TIME OF INJURY;


2. TO LIABILITY FOR COMPENSATION DUE A RESIDENCE EMPLOYEE FOR INJURY OR ILLNESS SUSTAINED WHILE ENGAGED IN SERVICES IN CONNECTION WITH THE TRADE, BUSINESS, PROFESSION OR OCCUPATION OF THE INSURED;

3. UNDER COVERAGE II, TO LIABILITY ASSUMED BY THE INSURED UNDER ANY CONTRACT OR AGREEMENT;

4. UNDER COVERAGE II, TO BODILY INJURY BY DISEASE UNLESS PRIOR TO THIRTY-SIX MONTHS AFTER THE END OF THE POLICY PERIOD WRITTEN CLAIM IS MADE OR SUIT BROUGHT AGAINST THE INSURED FOR DAMAGES BECAUSE OF SUCH INJURY OR DEATH RESULTING THEREFROM;

5. UNDER COVERAGE II, TO ANY OBLIGATION FOR WHICH THE INSURED OR ANY CARRIER AS HIS INSURER MAY BE HELD LIABLE UNDER THE WORKERS’ COMPENSATION LAW OF CALIFORNIA, ANY OTHER WORKERS’ COMPENSATION OR OCCUPATIONAL DISEASE LAW, ANY UNEMPLOYMENT COMPENSATION OR DISABILITY BENEFITS LAW, OR UNDER ANY SIMILAR LAW.

SECTION II — CONDITIONS

1. Limit of Liability. Regardless of the number of insureds, claims made or persons injured, our total liability under Coverage E stated in this poli-cy for all damages resulting from any one occurrence shall not exceed the limit of liability for Coverage E stated in the Declarations. All bodily injury and property damage resulting from any one accident or from repeated or con-tinuous exposure to substantially the same general conditions shall be considered to be the result of one occurrence.

Our total liability under Coverage F for all medi-cal expense payable for bodily injury to one person as the result of one accident shall not ex-ceed the limit of liability for Coverage F stated in the Declarations.

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

3. Your Duties After Loss. In case of an accident or occurrence, the insured shall perform the fol-lowing duties that apply. You shall cooperate with us in seeing that these duties are per-formed:a. give written notice to us or our agent as soon

as practicable, which sets forth: (1) the identify of the policy and insured;(2) reasonably available information on the

time, place and circumstances of the ac-cident or occurrence;

(3) names and addresses of any claimants and available witnesses; and

(4) in case of loss under the Credit Card or Fund Transfer Card coverage, also notify

the credit card or fund transfer card com-pany;

b. immediately forward to us every notice, de-mand, summons or other process relating to the accident or occurrence;

c. at our request, assist in: (1) making settlement; (2) the enforcement of any right of contribu-

tion or indemnity against any person or organization who may be liable to an in-sured;

(3) the conduct of suits and attend hearings and trials;

(4) securing and giving evidence and obtain-ing the attendance of witnesses;

d. While not in the presence of another in-sured, as often as we reasonably require, even after a claim is paid or closed:

(1) Provide recorded or signed state-ments

(2) Submit to examination under oath and sign the same.

e. under Additional Coverages 3 — Damage to the Property of Others, submit to us within 60 days after the loss, a sworn statement of loss and exhibit the damaged property, if within the insured’s control;

f. submit within 60 days after the loss, evidence or affidavit supporting a claim under the Credit Card, Fund Transfer Card, or Forgery and Counterfeit Money coverage, stating the amount and cause of loss;

g. the insured shall not, except at the in-sured’s own cost, voluntarily make any


payment, assume any obligation or incur any expense other than for first aid to others at the time of the bodily injury.

4. Duties of an Injured Person, Coverage F—Medical Payments to Others. The injured person or someone acting on behalf of the injured per-son shall: a. give us written proof of claim, under oath if

required, as soon as practicable; b. execute authorization to allow us to obtain

copies of medical reports and records. The injured person shall submit to physical ex-

amination by a physician selected by us when and as often as we reasonably required.

5. Payment of Claim, Coverage F—Medical Pay-ments to Others. Payment under this coverage is not an admission of liability by an insured or us.

6. Suit Against Us. No action shall be brought against us unless there has been compliance with the policy provisions.

No one shall have any right to join us as a party to any action against an insured. Further, no action with respect to Coverage E shall be brought against us, until the obligation of the in-sured has been determined by final judgment or agreement signed by us.

7. Bankruptcy of an Insured. Bankruptcy or in-solvency of and insured shall not relieve us of any of our obligations under this policy.

8. Other Insurance, Coverage E—Personal Liabil-ity. This insurance is excess over any other valid and collectible insurance except insurance writ-ten specifically to cover as excess over the limits of liability that apply in this policy.

SECTION I AND SECTION II — CONDITIONS

1. Policy Period. The effective time of this policy is 12:01 A.M. Standard Time at the residence premises. This policy applies only to loss under Section I or bodily injury or property damageunder Section II which occurs during the period this policy is in effect.

2. Concealment of fraud. This policy is void as to you and any other insured if you or any other insured under this policy has intentionally con-cealed or misrepresented any material fact or circumstance relating to this insurance, whether before or after a loss, engaged in fraudulent conduct, or made false statements.

3. Liberalization Clause. If we adopt any revision which would broaden coverage under this policy without additional premium, within 60 days prior to or during the period this policy is in effect, the broadened coverage will immediately apply to this policy.

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

turning it to us or by notifying us in writing of the date cancellation is to take effect.

b. We may cancel this policy only for the rea-sons stated below by notifying you in writing of the date cancellation takes effect. This cancellation notice may be delivered to you, or mailed to you at your mailing address shown in the Declarations. Proof of mailing shall be sufficient proof of notice. (1) When you have not paid the premium,

whether payable to us or to our agent or under any finance or credit plan, we may

cancel at any time by notifying you at least 10 days before the date cancellation takes effect.

(2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason other than nonpayment by notifying you at least 20 days before the date cancella-tion takes effect.

(3) When this policy has been in effect for 60 days or more, or at any time if it is a re-newal with us, we may cancel if there has been:(a) conviction of a crime having as one of

its necessary elements an act in-creasing the hazard insured against; or

(b) discovery of fraud or material misrep-resentation; or

(c) discovery of grossly negligent acts or omissions substantially increasing any of the hazards insured against; or

(d) physical changes in the property in-sured against which result in the property becoming uninsurable.

This can be done by notifying you at least 20 days before the date cancellation takes ef-fect.

c. When this policy is canceled, the premium for the period from the date of cancellation to the expiration date will be refunded. When you request cancellation, the return premium will be based on our rules for such cancellation.


The return premium may be less than a full pro rata refund. When we cancel, the return premium will be pro rata.

d. If, when we cancel this policy, the return premium, is not refunded with the notice of cancellation, we will refund it within 30 days after the date cancellation takes effect. If, when you cancel this policy, the return pre-mium is not refunded when this policy is returned to us, we will refund it within a rea-sonable time after the date cancellation takes effect.

5. Non-Renewal. We may elect not to renew this policy. We may do so by delivery to you, or mail-ing to you at your mailing address shown in the Declarations, written notice at least 45 days be-fore the expiration date of this policy. Proof of mailing shall be sufficient proof of notice.

6. Assignment. Assignment of this policy shall not be valid unless and until we give our written con-sent.

7. Subrogation. An insured may waive in writing, before a loss, all rights of recovery against any person. If not waived, when we pay a loss, an insured’s right to recover becomes ours up to the amount we have paid. An insured must pro-

tect and help us to enforce these rights. If we make payment under this policy and an insuredrecovers damages from another, that insuredwill reimburse us to the extent of our payment.

Subrogation does not apply under Section II to Medical Payments to Others or Damage to Property of Others.

8. 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 premises and property of the deceased covered under the policy at the time of death;

b. insured includes: (1) any member of your household who is an

insured at the time of your death, but on-ly while a resident of the residence premises; and

(2) with respect to your property, the person having proper temporary custody of the property until appointment and qualifica-tion of a legal representative.

OPTIONAL SPECIAL DEDUCTIBLES NOTE: The following special deductibles apply to your policy only if the form number is listed on your Declarationspage.

WINDSTORM OR HAIL PERCENTAGE DEDUCTIBLE HO 03 12 WR

Windstorm Or Hail Deductible Percentage Amount:

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

SECTION I – DEDUCTIBLE The following special deductible is added to the policy:

With respect to the peril of Windstorm Or Hail, for any one loss, we will pay only that part of the total of all loss payable that ex-ceeds the windstorm or hail percentage deductible.

The dollar amount of the windstorm or hail deductible is determined by multiplying the Coverage A Limit Of Liability shown in the Declarations by the deductible percentage amount shown in the Schedule above. This reference to the Coverage A Limit of Liability is made for the sole purpose of calculating the Windstorm or Hail Percentage Deducti-ble.No other deductible in the policy applies to loss caused by windstorm or hail.

All other provisions of this policy apply.


THEFT PERCENTAGE DEDUCTIBLE HO 03 12 T WR

Theft Deductible Percentage Amount:



With respect to the peril of Theft, for any one loss, we will pay only that part of the total of all loss payable that exceeds the theft per-centage deductible.

The dollar amount of the theft deductible is determined by multiplying the Coverage ALimit Of Liability shown in the Declarations by the deductible percentage amount shown in the Schedule above. This reference to the Coverage A Limit of Liability is made for the sole purpose of calculating the Theft Deduct-ible.No other deductible in the policy applies to loss caused by theft.


WATER PERCENTAGE DEDUCTIBLE HO 03 12 W WR

Water Deductible Percentage Amount:



With respect to a covered accidental direct physical loss to property subject to this en-dorsement and resulting from “sudden and accidental” discharge, eruption, overflow or release of water from within any portion of a plumbing, heating, air conditioning or auto-matic fire protective sprinkler system, or household appliance, for any one loss, we will pay only that part of the total of all loss payable that exceeds the water percentage deductible.

Covered water losses are subject to this en-dorsement if any prior loss(es) described herein occurred while the property was owned by you, whether or not we provided insurance at the time of such prior loss(es), and:

1. the loss results from “sudden and acci-dental” discharge, eruption, overflow or release of water from within the same plumb-ing, heating, air conditioning or automatic fire protective sprinkler system that experienced or otherwise caused a prior loss if such sys-tem was not completely replaced after the prior loss. For purposes of this endorse-ment, the term “plumbing system” includes, but is not limited to, toilets; or


2. the loss results from “sudden and acci-dental” discharge, eruption, overflow or release of water from within the same household appliance that experienced or otherwise caused a prior loss if such house-hold appliance was determined to be the cause of the prior loss and was not com-pletely replaced after the loss; or3. the loss results from “sudden and acci-dental” discharge, eruption, overflow or release of water from within the same household appliance that experienced or otherwise caused a prior loss if the prior loss was determined to be due to the failure of any apparatus, or any component of any ap-paratus, connecting the household appliance to the plumbing system and such apparatus was not completely replaced after the prior loss; or 4. the loss results from “sudden and acci-dental” discharge, eruption, overflow or release of water from within any apparatus, or any component of any apparatus, con-necting any toilet on the residence premises to the plumbing system if any prior loss was caused by any apparatus, or any component of any apparatus, connecting the same or any other toilet on the residence premises to the plumbing system and the connective components were not completely replaced on all toilets on the residence premises after the prior loss.

All replacements described in this endorse-ment must have been performed by a contractor with the appropriate license for the nature of the job. All plumbing system re-placements must be performed by a licensed plumber.

The dollar amount of the water deductible is determined by multiplying the Coverage ALimit Of Liability shown in the Declarations by the deductible percentage amount shown in the Schedule above. This reference to the Coverage A Limit of Liability is made for the sole purpose of calculating the Water Per-centage Deductible. No other deductible in the policy applies to water losses subject to this endorsement.


HO3 / HO3D (06/14) - 22 -

Includes copyright material of Insurance Services Office, Inc. with its permission

OPTIONAL COVERAGE LIMITATIONS NOTE: The following coverage limitations apply to your policy only if the form number is listed on your Declarations page. COMMON CONSTRUCTION REPLACEMENT COST HO CC RC WR

We will pay the cost to repair or replace with common construction and for the same use on the premises shown in the Declarations, the damaged part of the property covered under Section I - Coverages, Coverage A - Dwelling or Coverage B - Other Structures, subject to the following: (1) We will pay only for repair or replacement of

the damaged part of the property with com-mon construction techniques and materials commonly used by the building trades in standard new construction. We will not pay the cost to repair or replace obsolete, an-tique or custom construction with like kind and quality.

The terms “common construction replacement cost” and “repair or replace” do not include the increased costs incurred to comply with the en-forcement of any ordinance or law. SECTION I – CONDITIONS 3. Loss Settlement

Paragraph b. is replaced by the following: b. Buildings covered under Coverage A or

B: 1. If, at the time of loss, the amount of

insurance in this policy on the dam-aged building is 80% or more of the common construction replacement cost of the building immediately be-fore the loss; and you contract for repair or replacement of the damaged building for the same use, within 180 days of the damage unless we and you otherwise agree, we will pay the lesser of the following amounts:

(a) The limit of liability under this poli-cy that applies to the building; or

(b) The necessary amount actually spent to repair or replace the dam-aged building on a common construction replacement cost ba-sis. However, if this amount is less than the actual cash value of that part of the damaged building, we will settle the loss on an actual cash value basis.

2. If you do not make claim under b.1. above, we will pay the least of the fol-lowing amounts:

(a) The limit of liability under this poli-cy that applies to the building; or

(b) The actual cash value of the damaged part of the building.

3. If, at the time of loss, the amount of insurance in this policy on the damaged building is less than 80% of the com-mon construction replacement cost of the building immediately before the loss, we will pay the greater of the fol-lowing amounts, but not more than the limit of liability under this policy that ap-plies to the building:

(a) The actual cash value of that part of the building damaged; or

(b) That proportion of the cost to re-pair or replace, without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 80% of the common construction replacement cost of the building.

4. To determine the amount of insurance required to equal 80% of the common construction replacement cost of the building immediately before the loss, do not include the value of:

HO3 / HO3D (06/14) - 23 -


(a) Excavations, footings, foundations, piers, or any other structures or devices that support all or part of the building, which are below the undersurface of the lowest base-ment floor;

(b) Those supports in (1) above which are below the surface of the ground inside the foundation walls, if there is no basement; and

(c) Underground flues, pipes, wiring and drains.

5. If the actual cash value of the dam-age is less than the common construction replacement cost, then:

(a) We will pay no more than the ac-tual cash value of the damage until replacement is complete. Once replacement is complete, we will settle the loss according to the provisions of b.1. and b.3. above.

However, if the cost to functionally

repair the damage is both: (1) Less than 5% of the amount of

insurance in this policy on the building; and

(2) Less than $2,500; we will settle the loss according to the provisions of b.1. and b.3. above whether or not replacement is complete.

(b) We must be notified within: (1) 24 months after our payment

for actual cash value if the loss or damage relates to a state of emergency under Cali-fornia Law; or

(2) 12 months after our payment for actual cash value in all other cases;

that you intend to repair or replace the damaged property.

6. Payment of loss on an actual cash

value basis will not include payment of a contractor’s overhead and profit unless and until such overhead and profit is actually incurred by you.


ACTUAL CASH VALUE LOSS SETTLEMENT HO 04 93 WR

WINDSTORM OR HAIL LOSSES TO ROOF SURFACING

SECTION I – CONDITIONS For purposes of this endorsement, the term “roof surfacing” means the material of the roof struc-ture, including flashings, that is located on or above the roof decking. This endorsement modifies the Section I – Loss Settlement Condition in the policy form with re-spect to a covered loss to predominantly tile “roof surfacing” that is over 20 years old, or with respect to a covered loss to any other type of “roof surfacing” that is over 15 years old, caused by the peril of windstorm or hail. Such loss will be subject to actual cash value loss settlement. Therefore, the loss settlement conditions that pertain to "repair or replacement cost without deduction for depreciation" are changed as not-ed below:

3. Loss Settlement a. Paragraph a.(3) is replaced by the

following: (3) Structures that are not buildings,

including their “roof surfacing”; b. The following is added to Paragraph

a.: (4) “Roof surfacing” on structures that

are buildings if a loss to the “roof surfacing” is caused by the peril of windstorm or hail.

HO3 / HO3D (06/14) 24


c. In Paragraph b., the introductory statement "Buildings covered under Coverage A or B at replacement cost without deduction for depreciation, subject to the following:" is replaced by the following:

2. Buildings covered under Coverage A or B, except for their “roof sur-facing” if the loss to the “roof surfacing” is caused by the peril of windstorm or hail, at replacement cost without deduction for depreci-ation, subject to the following:


SPECIAL LIMIT FOR ANIMAL LIABILITY HO SL AL WR Your policy is amended as follows: Section II – Liability Coverages Coverage E – Personal Liability

We will not pay more than $50,000 for any claim or suit brought against any “insured” for “bodi-ly injury” or “property damage” caused by or contributed to by any animal owned by, or in the care or custody of any “insured” or any mem-ber of the “insured’s” family or household. This limit is the maximum we will pay for any one “occurrence”.

All Definitions and Conditions of the Personal Liability Coverage Part apply. All other provi-sions of the policy apply.

ADDITIONAL COVERAGES & ENDORSEMENTS

The following endorsement applies to your policy only if form number 372-NS (11-50) appears on the Decla-rations page. MORTGAGEE CLAUSE Form No. 372-NS (Nov. 1950)

Loss (if any) under this policy, on buildings only, shall be payable to the mortgagee(s), if named as payee(s) on the first page of this policy, as mortgagee(s) under any present or future mortgage upon the property described in and covered by this policy, as interest may appear, and in order of precedence of said mortgages.

1. The terms “Mortgage”, “Mortgagee” and “Mort-gagor” wherever used in this rider shall be deemed to include deeds of trust and the respec-tive parties thereto.

2. This insurance, as to the interests of the mortga-gee only therein, shall not be in validated by any act or neglect of the mortgagor or owner of the described property, nor by the use of the premis-es for purposes more hazardous than are permitted by this policy.

3. Any mortgagee who shall have or acquire knowledge that the premises are being used for purposes more hazardous than are permitted by this policy, or that the premises have been vacant or unoccupied beyond the period permit-ted by this policy, shall forthwith notify this company thereof and shall cause the consent of the company thereto to be noted on this poli-cy; and in the event of failure so to do, all rights of such mortgagee hereunder shall forthwith terminate.

4. In case the mortgagor or owner shall fail to pay any premium due or to become due under this policy, the mortgagee hereby covenants and agrees to pay the same on demand. The mort-gagee also covenants and agrees to pay on demand the premium for any increased hazard for the term of the existence thereof.

5. This company shall not be liable to the mortga-gee for a greater proportion of any loss than the amount hereby insured shall bear the whole in-surance covering the property against the peril

HO3 / HO3D (06/14) - 25 -


involved under the policies issued to, held by, or payable to the mortgagee, whether collectible or not.

6. The policy provisions relating to ”mortgagee interests and obligations” are specifically referred to and made part of this rider.

LENDER’S LOSS PAYABLE ENDORSEMENT Form 438BFU NS (Rev. May 1, 1942) x. This en-dorsement applies to your policy only if form 438BFU appears on the Declarations page. 1. Loss or damage, if any, under this policy, shall

be paid to the Payee named on the first page of this policy, its successors and assigns, hereinaf-ter referred to as the “Lender”, in whatever form or capacity its interests may appear and whether said interest may appear and whether said inter-est be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or repre-sentative capacity, or otherwise, or vested in a nominee or trustee in said Lender.

2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its successors and assigns, shall not be invalidated nor suspended: a. by any error, omission, or change respecting

the ownership, description, possession, or lo-cation of the subject of the insurance of the interest therein or the title thereto;

b. by the commencement of foreclosure pro-ceedings or the giving of notice of sale of any property covered by this policy by virtue of any mortgage or trust deed;

c. by any breach of warranty, act, omission, ne-glect, or non-compliance with any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor, vendee, owner, tenant, warehouse-man, custodian, occupant, or by the agents of either or any of them or by the happening of any event permitted by them or either of them, or their agents, or which they failed to prevent, whether occurring before of after the attachment of this endorsement, or whether before or after a loss, which under provisions of this policy of insurance of any rider or en-dorsement attached thereto would invalidate or suspend the insurance as to the named insured, excluding herefrom, however, any acts or omissions of the Lender while exer-cising active control and management of the property.

3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of the policy or on account of any change in occupancy or increase in hazard not permitted by this policy, this Com-

pany agrees to give written notice to the Lender of such non-payment of premium after sixty (60) days from and within one hundred twenty (120) days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so noti-fied in writing by this Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten (10) days following receipt of the Company’s demand in writing therefore. If the Lender shall decline to pay said premium or additional premium, the rights of the Lender under this Lenders Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by the Lender.

4. Whenever this Company shall pay to the Lender any sum for the loss or damage under this policy and shall claim that as to the insured no liability therefor exists, this Company, at its option, may pay the Lender the whole principal sum and in-terest and other indebtedness due or to become due from the insured, whether secured or unse-cured, (with refund of all interest not accrued), and this Company, to the extent of such pay-ment, shall thereupon receive a full assignment and transfer, without recourse , or the debt and all rights and securities held as collateral thereto.

5. If there be any other insurance upon the within described property, this Company shall be liable under this policy to the Lender for the proportion of such loss or damage that the sum hereby in-sured bears to the entire insurance of similar character on paid property under policies held by, payable to and expressly consented to by the Lender Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribution Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has re-ceived extension of the coverage to include hazards other than fire and compliance with such contribution Clause is made part of the consider-ation for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Company (pro rata with all other insurers contributing to said pay-ment) to all of the Lender’s rights of contribution under said other insurance.

6. This company reserves the right to cancel this policy at anytime, as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and shall then cease.

HO3 / HO3D (06/14) - 26 -


7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an accepta-ble policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lenders Loss Payable Endorse-ment, shall have been issued by some insurance company and accepted by the Lender.

8. Should legal title to and beneficial ownership of any of the property covered under this policy be-come vested in the Lender or its agents, insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event, any privileges granted by this Lend-er’s Loss Payable Endorsement which are not also granted the insured under the terms and

conditions of this policy and/or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property.

9. All notices herein provided to be given be the Company to the Lender in connection with this policy and this Lender’s Loss Payable endorse-ment shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy.

APPROVED: Board of Fire Underwriters of the Pacific,

California Bankers Association, Committee on Insurance

NOTIFICATION OF INFORMATION PRACTICES (As required by Article 6.6 of the Insurance Code)

To help protect your right to privacy we would like you to be aware of the following information:

When providing homeowners or dwelling fire cover-age, in addition to the information that we receive from our agent, we sometimes obtain a property in-spection report or a “consumer report”. The inspection report will typically include color photo-graphs which we use as an indicator of the overall exterior maintenance of the property. There are ques-tions regarding such items as the roof construction, proximity to hazards such as brush, and general maintenance of the property. You don’t need to be home for the completion of the inspection. If a neighbor asks, the inspector will iden-tify himself/herself and briefly explain his/her purpose, or he/she may leave a card at the residence advising the owner he/she has inspected the property. You have a right to obtain a copy of the report or to be interviewed in connection with it. Upon written re-quest, we will provide you with the name and address

of the reporting company, if you desire to review the report. You have the right to discuss any inaccuracies and have them corrected. Occasionally an insurance company may contact the company which last provided coverage and ask some routine questions about the exterior maintenance of the home and verify any losses incurred during the previous policy term. The Privacy Protection Act re-quires that you know this information may be disclosed to another company if a request is made in writing. In the event of an adverse underwriting decision, you are entitled, upon written request, to know the specific items of information concerning your property that support the Company’s decision and the sources of the information. Your written request must be re-ceived by us within 90 business days of the date of the notice. We will respond within 21 business days of the receipt of your request.

CONSUMER COMPLAINTS IF YOU HAVE A COMPLAINT REGARDING YOUR POLICY, YOU SHOULD CONTACT YOUR AGENT

OR THE COMPANY FIRST. YOU MAY CONTACT THE COMPANY AT P.O. BOX 19626, IRVINE, CA 92623-9626 OR BY TELEPHONE AT 1-800-234-2103. IF THIS FAILS TO PRODUCE A SATISFACTORY RESOLUTION TO

THE PROBLEM, YOU CAN CONTACT THE DEPARTMENT OF INSURANCE, CONSUMER AFFAIRS DIVISION, 300 S. SPRING STREET, LOS ANGELES, CA 90013 OR CALL TOLL FREE 1-800-927-HELP.

HO3 / HO3D (06/14) - 27 -


OPTIONAL COVERAGE ENDORSEMENTS NOTE: Insurance is provided for each of the following optional coverages only if indicated in the Declarations with the form number shown and a premium charged. HOMEOWNERS PLUS ENDORSEMENT HP- 1 / HP - 3

COVERAGE A — DWELLING Extended Replacement Cost Endorsement With No Building Code Upgrade (ERC) This endorsement relating to coverage on the dwelling building (as defined in Coverage A) is included in this policy.

COVERAGE C — PERSONAL PROPERTY Increased to 75% of Coverage A Amount. As shown on the Declarations page, the limit of liability for Coverage C has been increased to 75% of the amount of Coverage A. Replacement Cost Coverage on Personal Property (HO-1036) This endorsement which provides for replacement cost coverage on unscheduled personal property is included in this policy. In addition, replacement cost coverage applies to awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings. The 400% of actual cash value limitation is deleted. Also, it is no longer necessary to repair or replace the property to receive full replacement cost unless the loss exceeds $1,500. Special limits of liability. The Special Limits shown in the basic policy are increased as follows: 5. $1,500 for loss of jewelry, watches, fur garments

and garments trimmed with fur, precious and semi-precious stones.

7. $3,000 for loss by theft of silverware and gold ware (not bullion).

10. $5,000 on electronic data processing equip-ment and the recording or storage media used with that equipment while located at the resi-dence premises. There is an additional $1,000 of coverage, if needed for the replace-

ment of personal data destroyed by a covered peril. “Personal Data” means your personal facts or records. There is no coverage for said equipment or media which is located away from the residence premises.

COVERAGE D — LOSS OF USE The amount of coverage for loss of use is increased to 40% of the amount of coverage A.

ADDITIONAL COVERAGES Mortgage Payment Protection (WR07) This additional coverage is automatically included in this policy. Refrigerated Contents Coverage. We will pay up to $500 over your deductible for loss to the contents of refrigerated or freezer units on the premises caused by either of the following: 1. Interruption of electrical service to the described

dwelling; or 2. Mechanical or electrical malfunction of the unit

itself. The unplugging of the appliance shall not be covered. If a loss occurs to which this coverage may apply, you must use all reasonable means to protect the refriger-ated products from further damage. If you do not protect the products as required, this coverage will not apply to the loss.

Damage to Property of Others. Under Section II — Additional Coverages, the limit on Damage to Proper-ty of others is increased to $1,000. Loss Assessment Coverage. The limit for this cov-erage is increased from $1,000 to $2,000. ALL OTHER POLICY TERMS, CONDITIONS AND EXCLUSIONS NOT AMENDED BY THIS ENDORSEMENT CONTINUE TO APPLY

INCREASED LIMIT LOSS ASSESSMENT COVERAGE HOCO-35 For an additional premium, the policy is amended as follows:

The limit of liability for Section I and Section II — Ad-ditional Coverages - Loss Assessment is increased to the amount stated in the Declarations.

HO3 / HO3D (06/14) 28


Special Limit We will not pay more than $1,000 ($2000 if HP1 applies) of your assessment per unit that results from a deducti-

ble in the insurance purchased by the association of property owners. All other provisions of this policy apply.

INCREASED LIMIT COVERAGE C – PERSONAL PROPERTY C-70 For Additional premium the policy is amended as follows: As shown on the declarations page, the limit of liability for Coverage C has been increased to 70% of the amount of Coverage A. MORTGAGE PAYMENT PROTECTION ENDORSEMENT WR07 BENEFIT (Maximum $18,000) 1. In consideration of the additional premium set forth

separately under the Premium section on the Dec-larations page, the Company will pay the Benefit as set forth in paragraph 2 below, upon receipt of timely proof that the dwelling described in the poli-cy to which this Endorsement is attached has been rendered uninhabitable by reason of damage caused to said dwelling by fire or other perils in-sured against.

2. Said benefit shall be a sum of money to be paid to the insured in monthly installments, each install-ment to equal the monthly payment due payable on that promissory note executed by the insured which is secured by a first deed of trust or mort-gage covering the said dwelling, beginning forty-five (45) calendar days after the occurrence which rendered said dwelling uninhabitable, and continu-ing during the period that said dwelling remains uninhabitable but for not more than twelve (12) consecutive such monthly installments.

3. No part of this Benefit shall be paid or payable on account of taxes or insurance, or delinquencies on the insured’s promissory note or trustee fees or foreclosure costs, or late penalties or other ex

penses stemming from a breach of the insured’s

ligations arising under said promissory note or deed of trust or mortgage.

4. This payment will be limited to a maximum of $1,500 per month and will not include any delin-quencies, foreclosure costs or late penalties.

EXCLUSIONS This Endorsement does not apply to damages caused by flood, landslide or mudflow, by dry rot or infestation by fungi, mold, wet rot, microbial contamination, pathogenic organism, termites or other wood-destroying organisms, by illegal activity by the insured or of any occupant of said dwelling, by riot, insurrection or war, declared or undeclared, by intrusion of tres-passers, by theft, or by interference with the construction or reconstruction and repair of said dwell-ing.

TERMINATION All liability under this Endorsement shall terminate 90 calendar days after said dwelling is rendered uninhabit-able unless reconstruction or repair of said dwelling has begun; and also when the insured chooses any other residence as his permanent abode. This Endorsement shall become part of the policy to which it is attached and the applicable provisions of such policy shall be construed to be part of this En-dorsement on the Declarations page.

EXTENDED REPLACEMENT COST ENDORSEMENT WITH NO BUILDING CODE UPGRADE ERC

The following endorsement applies to your policy only if indicated.

In this Extended Replacement Cost Endorsement With No Building Code Upgrade, the terms “cost to repair or replace” and “replacement cost” do not include the in-creased costs incurred to comply with the enforcement

of any ordinance or law. If you agree, as part of this Extended Replacement Cost option, to: 1. Insure the dwelling building to 100% of its full

replacement cost and provide us with accurate in-formation about your home, including by

HO3 / HO3D (06/14) - 29 -


confirming the accuracy of the square footage and year built information displayed on the declarations page;

2. Maintain coverage on the dwelling building at 100% of its full replacement cost;

3. Agree to any adjustments in coverage and premi-ums by paying renewal premiums;

4. Report to us, within 60 days, any improvements to the dwelling building. If you do not, and the full replacement cost of these improvements exceeds $5,000 or 5% of the Coverage A limit shown on the Declarations page, whichever is greater, then the limit shown in the page will again become the max-imum limit we will pay;

5. Elect to repair or replace the damaged dwelling building; we agree that the limit of liability shown on the Declarations page is modified as follows:

a. Coverage A — Dwelling Building We will increase the Coverage A limit of liabil-

ity to equal the current replacement cost of the dwelling building not to exceed 150% of the Coverage A amount if the amount of loss to the dwelling building is more than the limit of lia-bility shown on the Declarations page.

The Coverage A limit shown on the Declara-tions page will be used to determine your premium only, except as otherwise stated in this endorsement.

b. If you comply with the provisions of this en-dorsement and there is a loss to the dwelling building insured under Coverage A, Section I—Conditions, Condition 3. Loss Settlement paragraph b. will not apply to Coverage A — Dwelling. It is replaced by paragraphs b., c. and d. as follows: b. The dwelling building under Coverage A

at replacement cost not to exceed 150% of Coverage A without deduction for deprecia-

tion. We will pay the lesser of the following amounts for equivalent construction and use on the same premises: (1) the replacement cost of the dwelling

building or any parts of it; or (2) the amount actually spent to repair or

replace the dwelling building or any parts of it.

c. When the cost to repair or replace the damage is more than $1,000 or more than 5% of the amount of insurance in this policy on the dwelling building, whichever is less, we will pay no more than the actual cash value of the damage until actual repair or replacement is completed.

d. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss or damage to the dwelling building on an actual cash value basis and then make claim within 12 months from the date that the first payment toward the actual cash value is made for additional liability on a replacement cost basis. We will extend this 12 month period for an additional six months for good cause. In the event of a state declared emergency, this period of time is extended to 24 months.

e. Payment of loss on an actual cash value basis will not include payment of a contrac-tor’s overhead and profit unless and until such overhead and profit is actually in-curred by you.

This endorsement is void if you fail to comply with its provisions. All other provisions of this policy apply.

FREEWAY ACCIDENTAL DEATH BENEFIT WR03

The following endorsement applies to your policy only if indicated on Declarations page.

For an additional premium payment we will pay to the estate of the insured a Freeway Accidental Death Ben-efit of $25,000 upon receipt of timely proof that: 1. The death of the insured was caused directly and

independently of all other causes from the bodily injury resulting solely from external, violent and accidental means while the insured was in a mov-ing motor vehicle while on the freeway in the state of California.

2. The death occurred within 90 days after said bodi-ly injury was suffered and the accident occurred before the termination of this endorsement.

EXCLUSION The Freeway Accidental Death Benefit will not be paya-ble if the injury or death resulted directly or indirectly from: 1. Suicide or attempted suicide while sane or insane; 2. Behavior contrary to medical advice; 3. Riding or driving a motorcycle;

HO3 / HO3D (06/14) - 30 -


4. Engaging in an illegal occupation; or commission of a felony;

5. War or insurrection, declared or undeclared; 6. Service in the Armed forces of any country; 7. The insured’s being intoxicated or under the influ-

ence of alcohol, any drug, sedative or narcotic, voluntarily or involuntarily;

8. Participating in any speed contest;

DEFINITIONS When used in this endorsement, the following defini-tions apply:

1. “Freeway” is used as defined in California Vehicle Code section 332.

2. “Insured” means the principal named insured on the Declarations page and his spouse, provided, however, that only one death benefit shall be pay-able under this endorsement.

This endorsement shall become a part of the Policy to which it is attached and the applicable provisions of such Policy shall be construed to be part of this en-dorsement.

APPURTENANT STRUCTURES - RENTED TO OTHERS HO-40 (1 or 2 Families)

In consideration of an additional premium, this policy is amended as follows:

Section I: Under Coverage B — Appurtenant Structures, the ap-purtenant structures listed on the Endorsements page located on the described premises rented or leased in whole or in part or held for such rental or lease for

dwelling purposes to other than a tenant of the de-scribed dwelling is covered for an amount not exceeding the limit of liability shown on the Endorse-ment page.

ADDITIONAL INSURED - DESIGNATED PREMISES ONLY HO-41 The definition of “insured” contained in this policy is amended to include the person(s) or organization(s) named on the Endorsements page subject to the follow-ing conditions: Section I: Applicable only to Coverage A — Dwelling and Cover-age B — Appurtenant Structures; and

Section II: Applicable only to Coverage E — Personal Liability and Coverage F — Medical Payments to Others but only with respect to the premises designated above. The insurance with respect to said person or organiza-tion does not apply to bodily injury to any employee of said person or organization arising out of or in course of his employment by said person or organization.

OFFICE, PROFESSIONAL, PRIVATE SCHOOL OR STUDIO OCCUPANCY DESCRIBED RESIDENCE PREMISES ONLY HO-42 Section I: Coverage C — Unscheduled Personal Property is

extended, subject to all the conditions of this poli-cy, to include equipment, supplies and furnishings usual or incidental to the occupancy described on the Endorsements page only while such property is on the described premises.

Section II: It is agreed that with respect to Coverage E —

Personal Liability and Coverage F — Medical Payments to Others: 1. The described residence premises shall not

be considered business property because an

insured occupies a part thereof as an office, school or studio.

2. Exclusions 1.d. and 1.e. are deleted and the following substituted therefor: d. to bodily injury or property damage aris-

ing out of the rendering of or failure to render professional services of any nature including but not limited to any architectur-al, engineering or industrial design services, any medical, surgical, dental or other services or treatment conducive to the health of persons or ani-mals and any cosmetic or tonsorial services or treatment;

HO3 / HO3D (06/14) 31


e. to bodily injury or property damage aris-ing out of business pursuits of an insured except activities therein which are ordinarily incident to non-business pursuits or to the occupancy described above.

3. This insurance does not apply to bodily injury to: a. any employee of an insured arising out of

the occupancy described above or busi-ness pursuits other than to a residence employee or insured farm employee while

engaged in his employment as such by an insured; or

b. any pupil arising out of corporal punish-ment administered by or at the direction of the insured.

4. Under Coverage F — Medical Payments to Others, exclusion 3.b. is deleted, but only with respect to persons, other than employees of an insured, who are on the insured premises or the ways immediately adjoining because busi-ness pursuits are conducted or professional services rendered on the insured premises.

APPURTENANT STRUCTURES HO-48 (Section I Only) In consideration of an additional premium, the additional limit of liability shown on the Endorsements page for each appurtenant structure shall be considered specific insurance applicable only to such structure. SCHEDULED PERSONAL PROPERTY ENDORSEMENT HO-61

In consideration of an additional premium, this policy covers Scheduled Personal Property for which an amount of insurance is indicated on the Endorsement page.

PERILS INSURED AGAINST This endorsement insures against all risks of physical loss or damage except as excluded or limited herein.

TERRITORIAL LIMITS Unless otherwise provided hereinafter or endorsed hereon this insurance covers wherever the property may be located.

ADDITIONAL EXCLUSIONS This endorsement does not insure against: 1. Loss caused by wear and tear, gradual deteriora-

tion, insects, vermin, or inherent vice; 2. Loss by nuclear reaction or nuclear radiation or

radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by the peril(s) insured against in this endorsement; however, subject to the foregoing and all provi-sions of this policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this endorse-ment.

3. as to Fine Arts: a. damage sustained due to and resulting from

any repairing, restoration or retouching pro-cess;

b. breakage of fine art glass windows, statuary, marbles, glassware, bric-a-brac, porcelains and similar fragile articles unless caused by

fire, lightning, aircraft, theft or attempted theft, cyclone, tornado, windstorm, earthquake, flood, explosion, malicious damage or collision, derailment or overturn of conveyance, unless endorsed hereon;

c. loss to property on exhibition at fairgrounds or on the premises of any national or international exposition unless such premises are specifical-ly herein described.

4. as to Postage Stamps or Rare and Current Coin Collections: a. fading, creasing, denting, scratching, tearing,

thinning, transfer of colors, inherent defect, dampness, extremes of temperature, gradual depreciation, or damage sustained from han-dling or while being actually worked upon and resulting therefrom;

b. mysterious disappearance of individual stamps, coins or other individual articles in-sured hereunder unless specifically scheduled herein with a definite amount set opposite their description, or if not specifically scheduled, un-less mounted in a volume, and the page to which they are attached is also lost;

c. loss of or damage to property in the custody of transportation companies, nor shipments by mail unless by registered mail;

d. theft from any unattended automobile except while being shipped by registered mail;

HO3 / HO3D (06/14) - 32 -


e. loss of or damage to any property described herein which is not an actual part of a stamp, money or numismatic collection.

ADDITIONAL ACQUIRED PROPERTY The following clause is applicable only to jewelry, watches, furs, cameras and musical instruments when such property is covered hereunder. In consideration of the agreement by the insured to report additional property of the kind insured hereunder, acquired by the insured subsequent to the attachment date of this endorsement, within thirty (30) days from the date acquired and to pay full premium thereon from the date acquired at pro rata of current rates of this Company for such insurance, this endorsement covers on each separate class of such additionally acquired property for not exceeding 25%, or $10,000 whichever is the lesser, of the amount of insurance on such class exclusive of this provision. It is specifically understood and agreed by the insured that this endorsement shall cease to cover additionally acquired property if it is not reported to this Company within the stated thirty (30) day period. This additional coverage does not apply to property of a class not already covered hereunder.

SPECIAL CONDITIONS 1. Fine Arts: If Fine Arts are covered hereunder, the

Insured represents and agrees that the property insured hereunder will be packed and unpacked by competent packers.

This Company shall not be liable for more than the amount set opposite the respective articles cov-ered hereunder, which amounts are agreed to be the value of said articles.

In the event of the total loss of any article or arti-cles which are part of a set, this Company agrees to pay the insured the full amount of the value of such set as specified in the schedule on the En-dorsement page, and the insured agrees to surrender the remaining article or articles of the set to the Company.

This insurance covers the property insured while on exhibition or otherwise within the limits of the Continental United States, the State of Hawaii and Canada except as herein before excluded.

2. Golfer’s Equipment: If the golfer’s equipment is covered hereunder, this insurance shall cover golf clubs, golf clothing and golf equipment, which is the property of the Named Insured, but excluding watches, jewelry and stock for sale; also on other clothing of the Named Insured while contained in any locker situated in a club house or other build-ing used in connection with the game of golf; except that golf balls are covered hereunder only against loss by fire or burglary, meaning the feloni-ous abstraction of the balls from within a building, room or locker by any persons making felonious

entry therein by actual force or violence, of which there shall be visible marks made upon the exterior of such premises at the place of such entry.

3. Musical Instruments: If musical instruments are covered hereunder, the insured represents and agrees such instruments insured hereunder will not be played for remuneration during the term of this endorsement, unless otherwise endorsed hereon and additional premium paid at the current rates of this Company.

4. Silverware: Silverware shall not include: pens pencils, flasks, smoking implements or accessories or articles of personal adornment.

5. Postage Stamps or Rare and Current Coin Col-lection: If a stamp or coin collection is covered hereunder, in the event of loss or damage the amount payable hereunder shall be ascertained in the following manner: a. In case of loss of or damage to property

scheduled herein and representing any one stamp, coin or other individual article insured, this company shall pay or make good to the insured such loss or damage up to but not ex-ceeding the amount(s) set opposite the item(s) involved;

b. In case of loss of or damage to property specif-ically described in the schedule on the Endorsements page as pairs, strips, blocks, series, sheets, covers, frames, cards or the like, this company shall pay in the event of total loss of such an item up to but not exceeding the amount set opposite the item involved and in the event of partial loss not more than the cash market value of the remainder at the time of loss, it being however understood and agreed that in the event of the property being insured for less than the cash market value, the liability of this company shall not exceed the proportion that the amount insured bears to the cash market value.

c. In all cases of loss of or damage to the insured property not provided for in the two previous paragraphs, this company shall not be liable for more than the actual cash market value of the property at the time of loss, subject howev-er to a limit of not exceeding $1,000 on unscheduled numismatic property and not ex-ceeding $250, with respect to any one stamp, coin or other individual article or any one pair, strip, block, series, sheet, cover, frame, card or the like.

d. This company shall not be liable for a greater proportion of any loss on property not specifi-cally scheduled herein, than the total sum insured on such unscheduled property bears to the actual cash market value thereof at the time such loss shall happen.

HO3 / HO3D (06/14) - 33 -


6. Valuation: This company shall not be liable for more than the actual cash value of the property at the time any loss or damage occurs and the loss or damage shall be ascertained or estimated accord-ing to such actual cash value with proper deduction for depreciation, however caused, and shall in no event exceed: a. What it would cost to repair or replace the

same with material of like kind and quality, or b. The applicable amount of insurance set oppo-

site the respective article covered hereunder, whichever is less.

7. Loss Clause: Any loss hereunder shall not re-duce the amount of this endorsement, except in the event of payment of claim for total loss of an item specifically scheduled hereon. If claim is paid for total loss of one or more scheduled items, the

unearned premium applicable to such items will be refunded to the insured or applied to the premium due on item(s) replacing those on which the claim was paid.

8. Pair, Set or Parts. In the event of loss to: a. Any article or articles which are part of a pair or

set, the measure of loss to such article or arti-cles shall be a reasonable and fair proportion of the total value of the pair or set, giving con-sideration to the importance of said article or articles, but in no event shall such loss be con-strued to mean total loss of the pair or set; or

b. Any part of property covered consisting, when complete for use, of several parts, the compa-ny shall only be liable for the value of part lost or damaged.

COVERAGE C — INCREASED SPECIAL HO-65 LIMIT OF LIABILITY For an additional premium, the Special Limit of Liability under Coverage C — Personal Property is increased as follows :

Jewelry, watches, furs, precious and semi-precious stones for loss; but not exceeding $1,500 for any one article. Total Limit of Liability is $5,000.

ADDITIONAL RESIDENCE PREMISES - RENTED TO OTHERS HO-70 (1 or 2 Families - Section II Only) In consideration of an additional premium, it is agreed that the definition of “insured location” contained in this policy includes under Coverage E — Personal

Liability and Coverage F — Medical Payments to Oth-ers the premises designated on the Endorsements page, and the provisions of Exclusion 1d(2)(a) under Section II – Exclusions is deleted.

BUSINESS PURSUITS ENDORSEMENT HO-71 (Section II Only) In consideration of an additional premium, it is agreed that such insurance as is afforded by this policy under Coverage E — Personal Liability and Coverage F — Medical Payments to Others is extended to apply with respect to the business pursuits of the insured(s) named on the Endorsements page in connection with the business stated on the Endorsements page, sub-ject to the following provisions: This insurance does not apply: 1. to bodily injury or property damage arising out

of the business pursuits of the insured in connec-tion with a business owned or financially controlled by such insured or by a partnership of joint ven-ture of which such insured is a partner or member;

2. to bodily injury or property damage arising out of the rendering of or failure to render professional services of any nature (other than teaching), in-

cluding but not limited to any architectural, engi-neering or industrial design services, any

HO3 / HO3D (06/14) 34


medical, surgical, dental or other services or treatment conducive to health of persons or ani-mals and any cosmetic or tonsorial services or treatment;

3. to bodily injury to a fellow employee of the in-sured injured in the course of employment;

4. when the insured is a member of the faculty or teaching staff of any school or college; a. to bodily injury or property damage arising

out of the maintenance, operation, use, loading or unloading of draft or saddle animals, vehi-

cles for use therewith, aircraft, motor vehicle, recreational motor vehicle or watercraft owned or operated, or hired by or for the insured or his employer or used by the insured for the purpose of instruction in the use thereof; or

b. to bodily injury to any pupil arising out of cor-poral punishment administered by or at the direction of the insured.

WATERCRAFT ENDORSEMENT HO-75 (Section II Only) In consideration of an additional premium, it is agreed that Coverage E — Personal Liability and Coverage F — Medical Payments to Others is extended to apply to bodily injury or property damage arising out of the ownership, maintenance, use, loading or unloading of the watercraft powered by outboard motor(s) described on the Endorsements page. This insurance does not apply with respect to watercraft with inboard, outboard, or inboard-outboard motor pow-er or sailing vessels:

1. to bodily injury to an employee of an insured arising out of or in the course of his employment by the insured, if such employee’s principal duties are in connection with the maintenance or use of said watercraft; or

2. while said watercraft is used to carry persons for a charge or is rented to others.

PERSONAL INJURY ENDORSEMENT HO-82

For an additional premium, under Coverage E — Per-sonal Liability, the definition bodily injury is amended to include personal injury, and exclusion m under Sec-tion II - Exclusions is deleted. “Personal injury” means injury arising out of one or more of the following offenses: 1. false arrest, detention or imprisonment, or mali-

cious prosecution; 2. libel, slander or defamation of character; or 3. invasion of privacy, wrongful eviction or wrongful

entry.

Section II — Exclusions do not apply to personal injury. Personal injury insurance does not apply to: 1. liability assumed by the insured under any con-

tract or agreement except any indemnity

obligation assumed by the insured under a written contract directly relating to the ownership, mainte-nance or use of the premises;

2. injury caused by a violation of a penal law or ordi-nance committed by or with the knowledge or consent of the insured;

3. injury sustained by any person as a result of an offense directly or indirectly related to the employ-ment of this person by the insured;

4. injury arising out of the business pursuits of an insured; or

5. civic or public activities performed for a pay by an insured.

6. Injury arising out of microbial contamination or pathogenic organism.

WORKERS’ COMPENSATION AND EMPLOYERS’ HO-91 LIABILITY INSURANCE ENDORSEMENT For an additional premium, as shown on the Declarations page, it is agreed that workers’ compensation coverage applies in regards to resident employees whose employment exceeds 20 hours per week.

HO3 / HO3D (06/14) 35


BUILDING CODE UPGRADE COVERAGE HO-277 Loss for damage by a Peril Insured Against, to build-ings, as defined, will be settled on the basis of any ordinance or law that regulates the construction, repair or demolition of buildings.

The maximum amount of recovery for this coverage, which is an additional amount of insurance, payable only if the building is actually replaced, is the amount shown on the Declarations page for this coverage.

INCREASED AMOUNT OF COVERAGE ON SILVERWARE HO-301 In consideration of an additional premium the Special Limit of Liability on loss by theft of silverware, silver-plated ware, goldware, gold-plated ware and pewter-

ware is increased to the amount shown on the Declara-tions page for item 7, under Coverage C — Personal Property.

REPLACEMENT COST COVERAGE HO-1036 ON PERSONAL PROPERTY 1. It is agreed that provisions of this policy applicable

to Coverage C — Unscheduled Personal Property and any Scheduled Personal Property endorse-ment which is a part of the policy are amended to substitute the term “replacement cost” for the term “actual cash value” where ever it appears.

2. It is also agreed that, subject to the terms of this endorsement, if any of the following property is damaged by a peril covered by this policy, the loss will be adjusted on a “replacement cost” basis ra-ther than on an actual cash value basis: a. Outdoor radio and television antennas and aer-

ials, b. carpeting, c. awnings, d. domestic appliances and outdoor equipment

(whether or not attached to the building), 3. This Company shall only be liable under this En-

dorsement: a. for any loss to property owned by an insured; b. for any loss to property which has been main-

tained in good and workable condition and is being used or stored for use by the insured;

c. when damaged or destroyed property has ac-tually been repaired or replaced by the insured.

4. The Company’s liability for loss under this En-dorsement shall not exceed the smallest of the following amounts:

a. the limit of liability of this policy applicable to the damaged or destroyed property;

b. the replacement cost of the property or any part thereof;

c. the amount actually and necessarily spent by the insured in repairing or replacing the prop-erty or any part thereof; or

d. 400% of the actual cash value of the property or any part thereof;

5. We will pay the difference between actual cash value and the replacement cost only after the damaged, destroyed or stolen property has actual-ly been repaired or replaced. You may make a claim for loss on an actual cash value basis and then make a claim, within 12 months from the date that the first payment toward the actual cash value is made, for any additional liability on a replace-ment cost basis after you have repaired or replaced the property. We may extend this 12 month period for good cause. In the event of a state declared emergency, this period of time is ex-tended to 24 months.

6. EXCLUSION: This Endorsement shall not apply to antiques, fine arts, paintings, statuary and similar articles, which, by their inherent nature cannot be replaced with new articles. Also excluded are arti-cles whose age or history contribute substantially to their value including but not limited to, memora-bilia, souvenirs, and collector’s items.

7. DEFINITION: “Replacement cost” means the cost, at the time of the loss, of a new article identical to the one damaged, destroyed or stolen. When the identical article is no longer manufactured or is not available, replacement cost shall mean the cost of a new article similar to that damaged or destroyed and which is of comparable quality and usefulness.

HO3 / HO3D (06/14) 36


WATER BACK-UP AND SUMP DISCHARGE OR OVERFLOW HO 04 95 WM A. Coverage

We insure, up to $5,000, for direct physical loss, not caused by the negligence of an “insured”, to property covered under Section I caused by water, or waterborne material, which: 1. Backs up through sewers or drains; or

2. Overflows or is discharged from a:

a. Sump, sump pump; or b. Related equipment; even if such overflow or discharge results from mechanical breakdown. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown.

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

B. Section I – Perils Insured Against

With respect to the coverage described in A. above, Paragraph 7(b) of Form HO3 / HO3 D is replaced by the following: Latent defect, inherent vice or any quality in proper-ty that causes it to damage or destroy itself;

C. Special Deductible

The following replaces any other deductible provi-sion in this policy with respect to loss covered under this endorsement. We will pay only that part of the total of all loss payable under Section I that exceeds $250. No other deductible applies to this coverage. This de-ductible does not apply with respect to Coverage D – Loss of Use.

D. Exclusion

The Water Damage Exclusion is replaced by the following: Water This means: 1. Flood, surface water, waves, including tidal

wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, includ-ing storm surge;

2. Water which: a. Backs up through sewers or drains; or b. Overflows or is otherwise discharged from a sump, sump pump or related equipment; as a direct or indirect result of flood;

3. Water below the surface of the ground, includ-

ing water which exerts pressure on, or seeps, leaks or flows through a building, sidewalk, driveway, patio, foundation, swimming pool or other structure; or

4. Waterborne material carried or otherwise moved by any of the water referred to in D.1. through D.3. of this Exclusion.

This Exclusion applies regardless of whether any of the above, in D.1. through D.4., is caused by an act of nature or is otherwise caused. This Exclusion applies to, but is not limited to, es-cape, overflow or discharge, for any reason, of water or waterborne material from a dam, levee, seawall or any other boundary or containment sys-tem. However, direct loss by fire, explosion or theft re-sulting from any of the above, in D.1. through D.4., is covered. All other provisions of this policy apply.

IDENTITY FRAUD EXPENSE COVERAGE HO IF For an additional premium, the following Additional Coverage is added under Section I. Identity Fraud Expense We will pay up to $15,000 for expenses incurred by an insured as the direct result of any one identity fraud commenced during the policy period. Any act of series of acts committed by any one person or in which any one person is considered to be one identity fraud, even if a series of acts continues into a subsequent policy period.

DEFINITIONS With respect to the provisions of this endorsement only, the following definitions are added: “Expenses” means: 1. Costs for notarizing fraud affidavits or similar doc-

uments for financial institutions or similar credit

HO3 / HO3D (06/14) - 37 –


grantors or credit agencies that have required such affidavits be notarized.

2. Costs for certified mail to law enforcement agen-cies, credit agencies, financial institutions or similar credit grantors.

3. Lost wages as a result of time taken off from work to meet with, or talk to, law enforcement agencies, credit agencies and/or legal counsel, or to complete fraud affidavits, up to a maximum payment of $500 per week for a maximum period of four weeks.

4. Loan application fees for re-applying for a loan or loans when the original application is rejected sole-ly because the lender received incorrect credit information.

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

a. Defense of lawsuits brought against the insured by merchants or their collection agencies.

b. The removal of any criminal or civil judg-ments wrongly entered against an insured, and

c. Challenging the accuracy or completeness of any information in a consumer credit report.

6. Charges incurred for long distance telephone calls to merchants, law enforcement agencies, financial institutions or similar credit grantors, or credit agencies to report or discuss an actual identity fraud.

“Identity Fraud” means the act of knowingly transfer-ring or using, without legal authority, a means of

identification of an insured with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law or a felony under any applicable state or local law. EXCLUSIONS The following additional exclusions apply to this cover-age. 1. Loss arising out of business pursuits of any in-

sured. 2. Expenses incurred due to any fraudulent, dishon-

est or criminal act by an insured, or any person acting in concert with an insured, or by any author-ized representative of an insured, whether acting alone or in collusion with others.

3. Loss other than expenses. SPECIAL DEDUCTIBLE We will pay only that part of the loss that exceeds $100. No other deductible applies to identity fraud coverage. YOUR DUTY AFTER LOSS The following is added under Condition 2. Your Duties After Loss, paragraph e.: (8) Receipts, bills or other records that support your claim for expenses under identity fraud coverage. All other provisions of this policy apply.

OTHER MEMBERS OF YOUR HOUSEHOLD HO 04 58 WR

Schedule Name Of Person Covered By This Endorsement


A. Agreement 1. We insure the person named in the

Schedule above who lives with you and is a member of your household and who is not an "insured", guest, "residence em-ployee", tenant, roomer or boarder. We also insure a person under the age of 21 who lives with and is in the legal custody of the person named in the Schedule. Such persons are insured for the cover-ages described in B. Section I – Property Coverage of this endorsement and Sec-tion II – Liability described in the policy form.

2. It is agreed that this endorsement is is-sued in reliance on information you provided concerning the residency of the person described in the Schedule.

3. You agree to notify us in writing within 30 days of a change in the:

a. Residency; or b. Status as a household member;

of the person described in the Schedule. 4. You will be solely responsible for the

payment of any premium pertaining to this endorsement.

HO3 / HO3D (06/14) - 38 –


5. It is further agreed that you are the representative of the person described in the Schedule and will act in all matters pertaining to the provisions of this endorsement.

B. Section I – Property Coverage Under Coverage C, the first paragraph is re-placed by the following: We cover personal property owned or used by an "insured" or a person described in A.1. of this endorsement while it is anywhere in the world. After a loss and at your request, we will cover personal property owned by:

1. Others, not including a person described in A.1. of this endorsement, while the property is on the part of the "residence premises" occupied by an "insured"; or

2. A guest or a "residence employee", while the property is in any residence occupied by an "insured".

This coverage does not increase the Cover-age C limit of liability.

C. General Condition All other provisions under Section I and Sec-tion II of this policy that apply to you also apply to the persons described in A.1. of this endorsement, except Coverage A and B and paragraph 2 and 3, Fair Rental Value, under Coverage D.

ASSISTED LIVING CARE COVERAGE HO 04 59 WR

Schedule

Residency Limit Of Liability Name Of Relative(s) Name Location Coverage C Coverage E $ $ $ $ Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

HO3 / HO3D (06/14) - 39 –


AGREEMENT We will insure the person named in the Schedule above for the coverages provided under Section I Property Coverages below and Coverage E – Personal Liability in the policy form, subject to the limits of liability shown in the Schedule. It is agreed that such person is related to an "in-sured" by blood, marriage or adoption, is not a member of your household and regularly resides in the living care facility (facility) named in the Schedule. It is also agreed that such facility pro-vides assisted living services such as dining, therapy, medical supervision, housekeeping and social activities. It is further agreed that you will represent the per-son named in the Schedule and will act in all matters pertaining to the provisions of this en-dorsement. This insurance is excess over any other applica-ble insurance covering the same loss. SECTION I – PROPERTY COVERAGES 1. Coverage C – Personal Property a. Covered Property

We cover personal property owned and used by a person named in the Schedule for loss by a Peril Insured Against covered under Coverage C in the policy.

b. Limit Of Liability The Limit Of Liability shown in the Sched-ule is the most we will pay for any one loss regardless of the number of relatives resid-ing in the same living unit in the facility named in the Schedule.

c. Special Limits Of Liability The following special limits of liability apply only to property described in a. above and are in addition to the Coverage C special limits that apply to the policy to which this endorsement is attached. They do not in-crease the Coverage C Limit Of Liability shown in the Schedule. The special limit shown for each numbered category is the total limit for each loss for the property in that category.

(1) $250 for each hearing aid or other simi-lar audio enhancement device.

(2) $100 for each pair of eyeglasses. (3) $100 for all contact lenses. (4) $500 for all false teeth or dentures. (5) $500 for each medi-alert device.

(6) $250 for all walking aids and devices such as walkers or canes.

(7) $500 for each wheelchair. d. Property Not Covered (1) Property regularly located away from

the facility; (2) Property owned by an "insured"; and (3) Property owned by the facility but rent-

ed to or used by the person named in the Schedule.

2. Additional Living Expense a. If a loss covered under this endorsement

makes that part of the facility not fit to live in or results in suspension of facility opera-tions, we will cover the necessary increase in living expenses the person named in the Schedule incurs to maintain their normal standard of living. The amount we will pay for each loss will not exceed a maximum of $500 per month for no more than 12 con-secutive months. This amount is the most that we will pay for any one loss, regard-less of the number of relatives residing in the same living unit in the facility named in the Schedule.

b. If a civil authority prohibits the use of the facility as a result of direct damage to neighboring premises by a Peril Insured Against in this policy, we cover the neces-sary increase in living expense incurred by the relative for no more than two weeks, up to $50 per day.

This coverage is additional insurance. The deductible applies to this coverage. We do not cover loss or expense due to cancellation of a lease or agreement.

SECTION II – LIABILITY COVERAGES Coverage F – Medical Payments To Others does not apply to this endorsement. SECTION II – EXCLUSIONS With respect to the coverage provided by this endorsement, the following exclusion is added: Coverage E does not apply to: 1. Liability assumed by the facility prior to an "oc-

currence"; or 2. "Bodily injury" to a care facility professional or

support staff that occurs while such person is on or off duty and attending to the person named in the Schedule.


CONTINUOUS POLICY ENDORSEMENT (Applicable to all policies where Term is Continuous)

With respect to a Mortgagee (or Trustee) declared under this policy, this policy will be renewed and re-main in effect continuously until the Mortgagee (or

Trustee) is given at least 10 days notice in writing of the termination of this policy.

CALIFORNIA INSURANCE GUARANTEE ASSOCIATION

Companies writing property and casualty insurance business in California are required to participate in the California Insurance Guarantee Association. If a company becomes insolvent the California Insurance Guarantee Association settles unpaid claims and assesses each insurance company for its fair share.

California law requires all companies to surcharge policies to recover these assessments. If your policy is surcharged, “CIGA Recoupment Surcharge” with an amount will be displayed on your premium notice.

PROVISIONS APPLICABLE TO WESTERN MUTUAL INSURANCE COMPANY

RESIDENCE MUTUAL INSURANCE COMPANY

MUTUAL POLICY CONDITIONS

This policy is issued by a Mutual Company having spe-cial regulations, lawfully applicable to its organization, membership, policies or contracts of insurance, of which following shall apply to and form a part of this policy.

The insured is hereby notified that by virtue of this policy, if said insured is a member of the Western Mu-tual Insurance Company, as a member, Insured is entitled to vote in person, or by proxy, at all Western Mutual policyholders’ meetings, if said Insured is a member of the Residence Mutual Insurance Company, as a member, Insured is entitled to vote in person, or by proxy, at all Residence Mutual policyholders’ meet-ings.

The regular Annual Meeting of the Members will be held at the office of the company at 3:00 p.m. for Western Mutual, on the first Friday following the second Monday of February of each year until further notice.

The regular Annual Meeting of the Members will be held at the office of the Company at 4:00 p.m. for Residence Mutual, on the first Friday following the second Monday of February each year until further notice.

It is specified that no provisions or stipulations are con-tained in the Charter or By-Laws of this Company invalidating any part of the Policy Contract.

IN WITNESS WHEREOF, these Companies have executed and attested these presents; but this policy shall not be valid unless countersigned by the duly authorized agent of Western Mutual Insurance Company or Residence Mutual Insurance Company.

Western Mutual Insurance Company and Residence Mutual Insurance Company by

SECRETARY PRESIDENTPRESIDENT

homeowners continuous protection plan western mutual … · 2016-03-31 · 3. “business“ means...

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