rudolph alston iii washington dc 20017 · allstate property and casualty insurance company policy...

PROP *01100451310115P000682901* 000000977175156 070 065 VA

Information as of

October 11, 2013NP92

Verify the information listed in thePolicy Declarations.

Please call if you have any questions.

File this package safely away.

Verify the information on the AddressConfirmation Request document;its accuracy could affect your premium.

If you haven't paid your premium infull, watch the mail for your bill.

Rudolph Alston III2901 12th St NeWashington DC 20017

Mai and Gene Y Woo6555 Brooks PlFalls Church VA 22044-1106

Thank you for becoming an Allstate Property and Casualty Homeowners insurancecustomer. We appreciate your business and want to remind you that you're backed by anexperienced Allstate team that's ready to help you protect your family, your home, and yourfinancial security.

Your policy documents are inside.You'll find your coverages, limits, deductibles, and premiums listed on the enclosed PolicyDeclarations, along with any discounts you have. Your new policy is also enclosed.

Before storing these documents with your other important papers, please read themcarefully, particularly the Policy Declarations to make sure it accurately reflects yourinformation and the choices you've made. If there's anything you'd like to change, please getin touch with your agent right away.

About your premium payment.Unless a mortgage company or lienholder pays your insurance premium for you, keep aneye out for your bill, which will include information on payment options.

If you're paying your premium using the Allstate Easy Pay Plan, you will not receive a bill.Instead, we'll send you a statement detailing your withdrawal schedule for the policy period.

(over)

1310115P00068 41006208

We're here to help you.Feel free to call your agent at (202) 635 0850. Or take advantage of the online services atallstate.com, where you can view your policy information and even make a payment byregistering at the Allstate Customer Care Center. And for 24 hour a day, 7 day a weekservice and information, just call 1 800 ALLSTATE (1 800 255 7828).

Insure today. Secure tomorrow.SM

Protecting your home and belongings is crucial to safeguarding your overall financialsecurity, so keep in mind that insurance needs can change as your life does. If you need toadjust your coverage to keep up with your changing needs, please get in touch with youragent soon.

We're delighted you've chosen Allstate Property and Casualty. Welcome.

Steven P. SorensonPresident, Allstate Property and Casualty Insurance Company

PROP *01000451310115P000682902*

Information as ofPage 1

October 11, 2013 VA070NBD

Allstate Property and Casualty Insurance Company

HomeownersPolicy Declarations

SummaryNAMED INSURED(S) YOUR ALLSTATE AGENT IS: CONTACT YOUR AGENT AT:Mai and Gene Y Woo6555 Brooks PlaceFalls Church VA 22044 1106

Rudolph Alston III2901 12th St NeWashington DC 20017

(202) 635 0850

POLICY NUMBER POLICY PERIOD PREMIUM PERIOD9 77 175156 10/15 Begins on Oct. 15, 2013 Oct. 15, 2013 to Oct. 15, 2014

at 12:01 A.M. standard time, at 12:01 A.M. standard timewith no fixed date of expiration

LOCATION OF PROPERTY INSURED6555 Brooks Place, Falls Church, VA 22044 1106

Total Premium for the Premium Period (Your bill will be mailed separately)

Premium for Property Insured $1,942.66

TOTAL $1,942.66

Allstate Property and Casualty Insurance CompanyPolicy Number: 9 77 175156 10/15 Your Agent: Rudolph Alston III (202) 635 0850For Premium Period Beginning: Oct. 15, 2013



POLICY COVERAGES AND LIMITS OF LIABILITY

COVERAGE AND APPLICABLE DEDUCTIBLES LIMITS OF LIABILITY(See Policy for Applicable Terms, Conditions and Exclusions)

Dwelling Protection with Building Structure Reimbursement Extended Limits $1,040,000� $1,500 All Peril Deductible Applies

Other Structures Protection $104,000� $1,500 All Peril Deductible Applies

Personal Property Protection Reimbursement Provision $780,000� $1,500 All Peril Deductible Applies

Family Liability Protection $500,000 each occurrence

Guest Medical Protection $5,000 each person

Coverage for other (appurtenant) structures and loss of use of your residence premises (add'l living expense) included.

Sewer Back Up Included� $250 Sewer Back up Deductible Applies

DISCOUNTS Your premium reflects the following discounts on applicable coverage(s):Protective Device 4.00 % Renovated House 1.00 %55 and Retired 4.00 % Claim Free 20.00 %Age of Home 6.00 %

RATING INFORMATIONThe dwelling is of Fire Resistive construction and is occupied by 1 familyYour dwelling is 2 mile(s) to the fire department

PROP *01000451310115P000682903*




Your Policy DocumentsYour Homeowners policy consists of this Policy Declarations and the documents listed below. Please keep these together.

Homeowners Policy form APC355 VA Water Damage Endorsement form AP152Ext. Protection Amend. End. form APC356 Homeowners Amendatory Endorsement form APC554

Important Payment and Coverage InformationEarthquake coverage is excluded unless purchased by endorsement. Allstate does not sell earthquake coverage.

The Property Insurance Adjustment condition applies using the Marshall & Swift/Boeckh building cost index.

Please note: This is not a request for payment. Any adjustments to your premium will be reflected on your next scheduledbill which will be mailed separately.

IN WITNESS WHEREOF, Allstate Property and Casualty Insurance Company has caused this policy to besigned by two of its officers at Northbrook, Illinois, and if required by state law, this policy shall not bebinding unless countersigned on the Policy Declarations by an authorized agent of Allstate Property andCasualty Insurance Company.

Steven P. SorensonPresident

Mary J. McGinnSecretary

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Important NoticePrivacy Policy StatementThank you for choosing Allstate. We value you, respect your privacy and work hard protect your personal information.

This statement is provided on behalf of Allstate Insurance Company and the affilia tes (" Allstate" ) listed at the end of this notice.We would like to explain how we collect, use and share the information we obtain about you in the course of doing business.

Our Privacy Assurance• We do not sell your personal or medical information to anyone.• We do not share your information with non affilia te companies that would use it to contact you about their own

products and services, unless permitted pursuant to a joint marketing agreement.• We require persons or organizations that represent or assist us in servicing your policy and claims to keep your

information confidential.• We require our employees to protect your personal information and keep it confidential.

As you can see, protecting your personal information is important to us. In addition to the practices described above, we use avariety of physical, technical and administrative security measures that help to safeguard your information. For Social SecurityNumbers (SSN), this includes restricting access to our employees, agents and others who use your SSN only as permitted bylaw: to comply with the law, to provide you with products and services, and to handle your claims. Also, our employees' andagents' access to and use of your SSN are limited by the law, our policies and standards, and our written agreements.

Our privacy practices continue to apply to your information even if you cease to be an Allstate customer.

What Personal Information Do We Have and Where Do We Get ItWe gather personal information from you and from outside sources for business purposes. Some examples of theinformation we collect from you may include your name, phone number, home and e mail addresses, driver's licensenumber, social security number, marital status, family member information and healthcare information. Also, we maintainrecords that include, but are not limited to, policy coverages, premiums, and payment history. We also collect informationfrom outside sources that may include, but is not limited to, your driving record, claims history, medical information andcredit information.

In addition, Allstate and its business partners gather information through Internet activity, which may include, for example,your operating system, links you used to visit allstate.com, web pages you viewed while visiting our site or applications,Internet Protocol (IP) addresses, and cookies. We use cookies, analytics and other technologies to help:

• Evaluate our marketing campaigns• Analyze how customers use our website and applications• Develop new services• Know how many visitors have seen or clicked on our ads

Also, our business partners assist us with monitoring information including, but not limited to, IP addresses, domain names andbrowser data, which can help us to better understand how visitors use allstate.com.

How We Use and Share Your Personal InformationIn the course of normal business activities, we use and share your personal information. We may provide your informationto persons or organizations within and outside of Allstate. This would be done as required or permitted by law. For example,we may do this to:

• Fulfill a transaction you requested or service your policy


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• Market our products• Handle your claim• Prevent fraud• Comply with requests from regulatory and law enforcement authorities• Participa te in insurance support organizations

The persons or organizations with whom we may share your personal information may include, among others:• Your agent, broker or Allstate affilia ted companies• Companies that perform services, such as marketing, credit card processing, and performing communication services

on our behalf• Business partners that assist us with tracking how visitors use allstate.com.• Other financial institutions with whom we have a joint marketing agreement• Other insurance companies that play a role in an insurance transaction with you• Independent claims adjusters• A business or businesses that conduct actuarial or research studies• Those who request information pursuant to a subpoena or court order• Repair shops and recommended claims vendors

The Internet and Your Information SecurityWe use cookies, analytics and other technologies to help us provide users with better service and a more customized webexperience. Additionally, our business partners use tracking services, analytics and other technologies to monitor visits toallstate.com. The website may also use Web beacons (also called " clear GIFs" or " pixel tags" ) in conjunction with cookies. Ifyou prefer, you can choose to not accept cookies by changing the settings on your web browser. Also, if you would like to learnabout how we gather and protect your information over the Internet, please see our online privacy statement located at thebottom of the allstate.com homepage.

To learn more, the allstate.com Privacy Statement provides information relating to your use of the web site.This includes, for example, information regarding:

1) how we collect information such as IP address (the number assigned to your computer when you use the Internet),browser and platform types, domain names, access times, referral data, and your activity while using our site;

2) who should use our web site;3) the security of information over the Internet; and4) links and co branded sites.

How You Can Review and Correct Your Personal InformationYou can request to review your personal information contained in our records at any time. To do this, please send a letter to theaddress below requesting to see your information for the previous two years. If you believe that our information is incompleteor inaccurate, you can request that we correct it. Please note we may not be able to provide information relating toinvestigations, claims, litigation, and other matters. We will be happy to make corrections whenever possible.

Please send requests to:Allstate Insurance Company Customer Privacy InquiriesP.O. Box 40047Roanoke, VA 24022 0047

Your Preference for Sharing Personal InformationWe would like to share your personal information with one or more Allstate affilia tes in order to make you aware of differentproducts, services and offers they can provide. However, you can request that Allstate and its affilia te companies not shareyour personal information with our affiliates for marketing products and services.

PROP *01000451310115P000682905*


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To request that we not allow other Allstate affilia tes to use your personal information to market their products and services, youcan contact us by calling 1 800 856 2518 twenty four hours a day, seven days a week. Please keep in mind that it may take upto four weeks to process your request. If you previously contacted us and asked us not to allow other Allstate affilia tes to useyour personal information, your previous choice still applies and you do not need to contact us again. If you would like tochange your previous choice please call the number above at any time.

We Appreciate Your BusinessThank you for choosing Allstate. We understand your concerns about privacy and confidentiality, and we hope this notice hasbeen helpful to you. We value our relationship with you and look forward to keeping you in Good Hands®.

If you have questions or would like more information, please don't hesitate to contact your Allstate agent or call the AllstateCustomer Information Center at 1 800 Allstate.

We reserve the right to change our Privacy practices, procedures, and terms.

Allstate Insurance Company

Allstate affiliates to which this notice applies: Allstate County Mutual Insurance Company, Allstate Finance Company, AllstateFinancial Services, LLC (LSA Securities in LA and PA), Allstate Fire and Casualty Insurance Company, AllstateIndemnity Company, Allstate Investment Management Company, Allstate Life Insurance Company, Allstate Life InsuranceCompany of New York, Allstate Motor Club, Inc., Allstate New Jersey Insurance Company, Allstate New Jersey Property andCasualty Insurance Company , Allstate Property and Casualty Insurance Company, Allstate Texas Lloyd's, Allstate Texas Lloyd's,Inc., Allstate Vehicle and Property Insurance Company, Deerbrook General Agency, Inc., Deerbrook Insurance Company, LincolnBenefit Life Company, North Light Specialty Insurance Company, Northbrook Indemnity Company.

Please Note: Allstate affiliates American Heritage Life Insurance Company, Castle Key Insurance Company and Castle KeyIndemnity Company participate in information sharing with the affilia tes listed above, but have a separate privacy notice fortheir customers.

For California residents:Pursuant to California law, we need to disclose to you that we would obtain your consent before sharing medical information formarketing purposes.

For Montana residents:Pursuant to Montana law, you may also request a record of any disclosure of your medical information during the precedingthree years. Please send requests to: Allstate Insurance Company Customer Privacy Inquiries, P.O. Box 40047, Roanoke, VA24022 0047

For Nevada Residents:Allstate is committed to serving you when and where you prefer as we help you protect what you have today and prepare youfor the future. To that end, and as Nevada law requires, if you do not want to receive sales calls from Allstate, you have theoption to be placed on our internal " do not call" list. (Please disregard this notice if you have already been added to Allstate'sinternal " do not call" list.) You may make this request in the following convenient ways:

• Contact your local Allstate agency• Call 1 800 ALLSTATE and speak with a customer representative• Visit allstate.com, click on Contact Us and send us an e mail• Write to us at Allstate Insurance Company, Attn: Customer Service, P.O. Box 40047, Roanoke, VA 24022 0047


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In your discussion or correspondence with us, please be sure to provide us with your name, address and all telephone numbersyou wish to include on our list. If you have questions about this notice, you may contact us at the address listed above or youmay also contact the Nevada Attorney General's office at:

Office of the Nevada Attorney GeneralBureau of Consumer Protection555 E. Washington Avenue, Suite 3900Las Vegas, NV 89101Phone: (702) 486 3132Email: [email protected]

Please note that Allstate's " do not call" list is limited only to telephone solicita tion calls. We may still contact you about yourAllstate policy, billing issues, claims and other service matters.

For Vermont residents:We won't share your personal information with Allstate companies for marketing purposes except as allowed by Vermont law.

(ed. 8/2012) X66702 1v5

PROP *01000451310115P000682906*


Address Confirmation Request

Please Confirm Your Current AddressAs you may know, we base our property insurance rates, in part, on where a customer's property is located.According to our records, the location of the dwelling your property policy covers is:

Address: 6555 Brooks PlaceCity/Village/Township: Falls ChurchState: VAZip: 22044 1106County: Fairfax

We ask that you please review this information to make sure the address we've listed above is accurate. Ifyou see any information that is incorrect, please contact your Allstate representative as soon as possible andprovide them with the correct information. Once we receive your updated information, we will send you anAmended Policy Declarations and, if necessary, adjust your insurance premium to reflect the updatedinformation.

If the information above is correct, you do not need to contact us. Feel free to contact your Allstate representativewith any questions you may have about this notice.

X72770


Important NoticeImportant Information About Your Allstate PolicyThe enclosed Policy Declarations includes important information, such as your address, the coverages andcoverage limits you've chosen, the names of insured persons — as well as other details pertinent to yourpolicy. These details may include, for example, for motor vehicle policies, the drivers and vehicles you'veinsured, as well as the vehicle identification numbers (VIN) assigned to your insured vehicles; and, forproperty policies, the location of the insured property and mortgagee information, if applicable. Your PolicyDeclarations also lists any discounts or surcharges applied to your policy.

Because much of the information found on your Policy Declarations is used to help us determine yourpremium, please be sure to review your Policy Declarations carefully each time you receive one. You maywant to add coverage, delete coverage or change your coverage limits — or you may want to change otherinformation relating to your policy, whether it be a motor vehicle, your home or other insured property. Youmay also want to contact your Allstate representative for information concerning discounts that may beavailable for your policy.

Making changes to your policyIf you need to make a change to any of the information listed on your Policy Declarations, please notify yourAllstate representative of the change as soon as possible. With a few exceptions, any changes will beeffective as of the date you notify us.

If you have any questions about this notice, or if you need to update any of the information listed on theenclosed Policy Declarations, please contact your Allstate agent or our Customer Information Center at1 800 ALLSTATE (1 800 255 7828).

X67096

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Important NoticeInformation about Flood Insurance

Protection against flood damageMost homeowners, renters and commercial insurance policies do not provide coverage for damage caused byfloods. In fact, protection against floods is generally available only through a separate policy.

That's why Allstate is a participant in the National Flood Insurance Program and offers standard flood insurancepolicies*. A flood policy can help complete the insurance protection for your property and help protect yourfinancial well being.

You may need it more than you thinkApproximately 90% of all disasters in the U.S. are flood related. While you may think that it couldn't happen toyou, over 25% of all flood losses occur in low to moderate risk areas.

And because flood damage is often accompanied by other damage, such as wind and hail (which is typicallycovered under a property policy), selecting Allstate gives you the convenience and peace of mind that comeswith working with just one claim adjuster and one agent, instead of two or more.

It's affordableThe federal government sets the rates for flood insurance, so there's typically no difference in rates from policyto policy – you can generally switch to a flood insurance policy administered by Allstate for the same amount ofpremium. If you choose Allstate, you can have the service, convenience and comfort you've come to expect fromus.

For more information about flood insurance, or if you have any questions about your policy in general, pleasecontact your Allstate representative or visit us at allstate.com.

*Allsta te provides the standard flood insurance policy under the terms of the National Flood Insurance Act of 1968 and its amendments,and Title 44 of the Code of Federal Regulations. The standard flood insurance policy is written by Allstate for the National Flood InsuranceProgram which is administered by the Federal Insurance Administration, part of the Federal Emergency Management Agency.

Subject to availability and qualifications. Other terms, conditions and exclusions may apply.


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Information about Scheduled Personal Property Coverage

Protection for your valuablesAllstate offers Scheduled Personal Property (SPP) coverage to help protect your valuables.

These items can include jewelry (such as engagement and wedding rings), fine art and musical instruments.Sports equipment, such as golf clubs, can also be covered by SPP.

In addition, SPP can cover valuables stored outside of your home in a safe deposit box or bank.

Already have SPP?Even if you currently have SPP coverage, it's a good idea to review your coverage annually. It's possible that thevalue of your property has changed or that you have purchased new items that have not been added to yourcoverage.

Affordable coverageThe cost of SPP coverage varies, but the value of your property is the best way to determine how much coverageyou need – the rates are generally a small percentage of the total value of the items you're insuring. This couldmean that your valuables are being protected for only a fraction of the cost.

To learn more about SPP coverage, or if you have any questions about your insurance policy in general, contactyour Allstate representative, or visit us at allstate.com.

Subject to availability and qualifications. Other terms, conditions and exclusions may apply.

X67372v1

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Important NoticeIf you have a question about your insurance...In the event you need to contact someone about this insurance for any reason, you may contact your agent, theAllstate Customer Information Center at 1 800 ALLSTATE ® (1 800 255 7828), or the Allstate Support Center atthe following address: National Support Center, PO Box 40047, Roanoke, VA 24022 0047.

If you have been unable to contact or obtain satisfaction from your Allstate agent, the Customer InformationCenter or an Allstate representative at the Support Center, you can contact the Virginia State CorporationCommission's Bureau of Insurance at the following address and phone number: Property and Casualty Division,Bureau of Insurance, PO Box 1157, Richmond, VA 23218. 1 800 552 7945 or (804) 371 9741.

Written correspondence is preferable so that a record of your inquiry can be maintained. When contacting youragent, company or the Bureau of Insurance, please have your policy number available.

X67327 1


Important NoticeFor your information

When you cancel your policy or make a change to your policy by endorsement, you will not be charged orautomatically credited when a policy change takes effect during the final 60 days of your policy period. Youmay obtain credit only by contacting your Allstate representative.

If you have any questions about this matter, or about your policy in general, please contact your Allstaterepresentative.

X66508 1

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Important NoticeFlood Insurance NoticeIn accordance with Virginia Law, we are providing all of our Property Insurance policyholders with this importantcommunication to remind you that your property policy does not provide coverage for floods. This means thatyou will not have coverage for property damage from floods unless you take steps to purchase a separate policyof flood insurance at an additional premium from the National Flood Insurance Program.

Your policy and accompanying endorsements remain subject to all exclusions, limitations and conditions.Contents coverage may be available with the flood policy for an additional premium from the National FloodInsurance Program.

If you would like more information about obtaining flood insurance coverage under the National Flood InsuranceProgram, please contact your Allstate representative or call the Allstate Customer Information Center at 1 800ALLSTATE (1 800 255 7828).

XC1039


Important NoticeBuilding Codes CoverageWe'd like to make sure that you're aware of the Building Codes optional coverage.

This optional coverage provides protection against the additional costs that may be incurred due to an ordinanceor law that regulates the construction, repair or demolition of property when the property is repaired or replaced.

Optional coverage BC – Building Codes is available to you. Coverage BC – Building Codes coverage will pay up to10% of the amount of insurance shown on the Policy Declarations under Coverage A – Dwelling Protection.

If you wish to add either coverage or simply want additional information, please contact your Allstaterepresentative.

Also, if your policy already includes this optional coverage and you wish to change the amount available forBuilding Codes coverage, please contact your Allstate representative.

XC2635

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Important NoticeBuilding Structures Replacement Cost ExplanationVirginia law now requires any insurer offering a replacement cost provision to provide you with a statementsummarizing the minimum coverage requirements and the effect on claim payment if those requirements are notmet.

If the Building Structures Replacement Cost Extended Limits Endorsement or the Extended ProtectionAmendatory Endorsement is not attached to your policy:

In order for your replacement provision to be fully effective you should insure your dwelling for 100% of the fullreplacement cost. If a covered loss occurs, we will pay the cost to repair or replace, after your deductible isapplied and without a deduction for depreciation. We will not pay more than the least of:

1. The replacement cost on the part of the building which was damaged;

2. The amount actually spent to repair or replace the damaged building; or

3. The limit of liability that applies to the building.

If the Building Structures Replacement Cost Extended Limits Endorsement or the Extended ProtectionAmendatory Endorsement is attached to your policy:

You must insure your dwelling for 100% of the full replacement cost.

You must allow us to adjust your residence value and the premium in accordance with the property evaluationswe make and any increases in inflation; notify us of changes which increase the replacement cost of yourdwelling by $5,000 or more; and decide to repair or replace the damaged building.

If you comply with the above, a covered loss will be settled up to 120% of the limit of liability applicable to thedamaged building structure shown on the Policy Declarations, after your deductible is applied but without adeduction for depreciation. However, we will not pay more than the replacement cost of the dwelling or theamount actually spent to repair or replace the damaged building, whichever is less. If necessary, we willincrease your residence value to equal the current replacement cost of the dwelling if the amount of the coveredloss is more than the limit of liability stated on the Policy Declarations. If you do not comply with the provisionsstated in the policy, then a covered loss will be settled according to the policy's How We Pay For A LossConditions described in paragraphs two and three above.

Please read your policy and accompanying endorsements carefully. If you have any questions please contactyour Allstate representative.

XC2634


Important NoticeProtect Your Property Against Water Damage...We offer insurance protection for water damage caused by backed up sewers and drains. The annual cost ofadding this important coverage to your policy varies depending on the deductible option you choose. This optionis subject to the terms of your policy.

If you wish to add this coverage to your present policy, just contact an Allstate representative or call the AllstateCustomer Information Center at 1 800 ALLSTATE (1 800 255 7828).

XM67

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Important NoticeThe company listed below uses local agencies to assist customers with their insurance decision making processby providing customers with information and high quality service. These agencies provide numerous services tocustomers on the company's behalf. Agencies are paid a commission by the company for selling and servicingthe company's insurance policies and may be eligible to receive additional compensation and rewards based onperformance.

Allstate Property and Casualty Insurance Company

X72006

PROP *11000451310115P000682912*

Allstate Property andCasualtyInsurance CompanyHomeownerPolicy

VIRGINIAPolicy: 9 77 175156 10/15

Issued to:Mai and Gene Y Woo6555 Brooks PlaceFalls Church VA 22044 1106

Effective: October 15, 2013

By your Allstate agent:Rudolph Alston III2901 12th St NeWashington DC 20017

Allstate Property and Casualty Insurance CompanyA Stock Company Home Office: Northbrook, Illinois 60062

APC355

Includes copyrighted material of Insurance Services Office, Inc., with its permission.Copyright, Insurance Services Office, Inc., 1998

Page 1

Table of Contents

Agreements We Make With You......................... 3

GeneralDefinitions Used In This Policy ........................... 3Insuring Agreement............................................ 4Conformity To State Statutes ............................. 4Coverage Changes.............................................. 4Policy Transfer.................................................... 4Continued Coverage After Your Death................ 5Cancellation........................................................ 5Concealment or Fraud........................................ 5Action Against Us ............................................... 5Arbitration........................................................... 6

Section I –Your PropertyCoverage A

Dwelling ProtectionProperty We Cover Under Coverage A................ 6Property We Do Not Cover Under Coverage A.... 6

Coverage BOther Structures ProtectionProperty We Cover Under Coverage B................ 6Property We Do Not Cover Under Coverage B.... 6Losses We Cover Under Coverages

A and B ........................................................... 7Losses We Do Not Cover Under Coverages

A and B ........................................................... 7

Coverage CPersonal Property ProtectionProperty We Cover Under Coverage C..............9Limitations On Certain Personal Property ........9Property We Do Not Cover Under Coverage C ..10Losses We Cover Under Coverage C ................10Losses We Do Not Cover Under

Coverage C...................................................12

Additional ProtectionAdditional Living Expense ................................13Credit Card, Debit Card or Automated

Teller Machine Card, BankFund Transfer Card, Check Forgeryand Counterfeit Money .................................14

Debris Removal................................................15

Emergency Removal Of Property..................... 15Fire Department Charges ................................ 15Temporary Repairs After A Loss ...................... 15Trees, Shrubs, Plants and Lawns .................... 15Temperature Change ....................................... 16Power Interruption........................................... 16Arson Reward.................................................. 16Land ................................................................ 16Lock Replacement........................................... 16

Section I ConditionsDeductible ...........................................................16Insurable Interest and Our Liability.....................16What You Must Do After A Loss..........................16Our Settlement Options ......................................17How We Pay For A Loss ......................................17Our Settlement Of Loss.......................................20Appraisal .............................................................20Abandoned Property ...........................................20Permission Granted To You ................................20Our Rights To Recover Payment.........................20Our Rights To Obtain Salvage .............................21Action Against Us................................................21Loss To A Pair Or Set ..........................................21Glass Replacement .............................................21No Benefit To Bailee ...........................................21Other Insurance ..................................................21Property Insurance Adjustment ..........................21Mortgagee...........................................................22Loss Clause .........................................................22

Section II –Family Liability andGuest Medical Protection

Coverage XFamily Liability ProtectionLosses We Cover Under Coverage X................ 22

Coverage YGuest Medical ProtectionLosses We Cover Under Coverage Y................ 23

Additional ProtectionClaim Expense ................................................. 23Emergency First Aid ........................................ 23Damage To Property Of Others ....................... 23

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Losses We Do Not Cover UnderCoverage X and Coverage Y .........................24

Section II ConditionsWhat You Must Do After An Accidental Loss....26What An Injured Person Must Do – Coverage Y

Guest Medical Protection .............................26Our Payment of Loss – Coverage Y –

Guest Medical Protection .............................26Our Limits Of Liability.......................................26Bankruptcy ......................................................26Our Rights To Recover Payment – Coverage X –

Family Liability Protection ............................26Action Against Us.............................................27Other Insurance – Coverage X –

Family Liability Protection ............................27

Section III –Optional ProtectionOptional Coverages You May BuyCoverage BCBuilding Codes .................................................27Coverage BPIncreased Coverage On Business Property ......27Coverage FFire Department Charges .................................27Coverage GLoss Assessments ...........................................27Coverage JExtended Coverage On Jewelry, Watches........and Furs...........................................................28Coverage KIncidental Office, Private School Or Studio ......28Coverage MIncreased Coverage On Money ........................29Coverage PBusiness Pursuits ............................................29Coverage SIncreased Coverage On Securities ...................29


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Agreements We Make With YouWe make the following agreements with you:

General

Definitions Used In This PolicyThroughout this policy, when the following wordsappear in bold type, they are defined as follows:

1. Bodily Injury – means physical harm to thebody, including sickness or disease, care, lossof services and resulting death.

2. Building structure –means a structure withwalls and a roof.

3. Business – means:a) any trade, profession or occupation

including farming, this includes the use ofany part of any premises for suchpurposes.

b) the rental or holding for rental of propertyby an insured person. Rental of yourresidence premises is not considered abusiness when:1) it is rented occasionally for residential

purposes;2) a portion is rented to not more than

two roomers or boarders provided notmore than two roomers or boardersreside on the residence premises atany one time; or

3) a portion is rented as a private garage,office, school or studio.

4. Dwelling –means a one, two, three or fourfamily building structure, identified as theinsured property on the Policy Declarations,where you reside and which is principally usedas a private residence.

5. Insured persons – means you and, if a residentof your household:a) any relative; andb) any person under the age of 21 in your

care.

Under Coverage X –Family Liability Protectionand Coverage Y –Guest Medical Protection," insured person" also means:a) any person or organization legally

responsible for loss caused by animals orwatercraft covered by this policy which areowned by an insured person. We do notcover any person or organization using orhaving custody of animals or watercraft inany business, or without permission of theowner.

b) with respect to the use of any vehiclecovered by this policy, any person whileengaged in the employment of an insuredperson.

6. Insured premises –means:a) the residence premises; andb) under Section II only:

1) the part of any other premises, otherstructures and grounds used by youas a residence. This includespremises, structures and grounds youacquire for your use as a privateresidence while this policy is in effect;

2) any part of a premises not owned byan insured person but where aninsured person is temporarily living;

3) cemetery plots or burial vaults ownedby an insured person;

4) vacant land, other than farmland,owned by or rented to an insuredperson;

5) land owned by or rented to an insuredperson where a one, two, three or fourfamily dwelling is being built as thatperson's residence;

6) any premises used by an insuredperson in connection with theresidence premises; or

7) any part of a premises occasionallyrented to an insured person for otherthan business purposes.

7. Occurrence – means an accident, includingcontinuous or repeated exposure to substantiallythe same general harmful conditions, which

PROP *11000451310115P000682914*


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results, during the policy period, in bodily injuryor property damage.

8. Property damage –means physical injury to ordestruction of tangible property, including lossof its use resulting from such physical injury ordestruction.

9. Residence employee – means an employee ofan insured person while performing dutiesarising out of and in the course of employmentin connection with the maintenance or use ofyour residence premises. This includes similarduties performed elsewhere for an insuredperson, not in connection with the business ofan insured person.

10. Residence premises – means the dwelling,other structures and land located at the addressstated on the Policy Declarations.

11. We, us or our –means the company named onthe Policy Declarations.

12. You or your –means the person listed underNamed Insured(s) on the Policy Declarations asthe insured and that person's resident spouse.

Insuring AgreementIn reliance on the information you have given us, weagree to provide the coverages indicated on thePolicy Declarations. In return, you must pay thepremium when due and comply with the policy termsand conditions, and inform us of any change in title,use or occupancy of the residence premises.

Subject to the terms of this policy, the PolicyDeclarations shows the location of the residencepremises, applicable coverages, limits of liability andpremiums. The policy applies only to losses oroccurrences that take place during the policy period.The policy period is shown on the PolicyDeclarations. This policy is not complete without thePolicy Declarations.

This policy impose joint obligations on the NamedInsured(s) listed on the Policy Declarations as the

insured and on that person's resident spouse. Thesepersons are defined as you or your. This means thatthe responsibilities, acts and omissions of a persondefined as you or your will be binding upon any otherperson defined as you or your.

The terms of this policy impose joint obligations onpersons defined as an insured person. This meansthat the responsibilities, acts and failures to act of aperson defined as an insured person will be bindingupon another person defined as an insured person.

Conformity To State StatutesWhen the policy provisions conflict with the statutesof the state in which the residence premises islocated, the provisions are amended to conform tosuch statutes.

Coverage ChangesWhen we broaden coverage during the policy periodwithout charge, you have the new features if youhave the coverage to which they apply as of theeffective date of the revision. Otherwise, the policycan be changed only by endorsement.

The coverage provided and the premium for thepolicy is based on information you have given us.You agree to cooperate with us in determining if thisinformation is correct and complete. You agree that ifthis information changes, is incorrect or incomplete,we may adjust your premium accordingly during thepolicy period.

Any calculation of your premium or changes in yourcoverage will be made using the rules, rates andforms on file, if required, for our use in your state.The rates in effect at the beginning of your currentpolicy period will be used to calculate any change inyour premium.

Policy TransferYou may not transfer this policy to another personwithout our written consent.


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Continued Coverage After Your DeathIf you die, coverage will continue until the end of thepolicy period for:1) your legal representative while acting as such,

but only with respect to the residence premisesand property covered under this policy on thedate of your death.

2) An insured person, and any person havingproper temporary custody of your property untila legal representative is appointed and qualified.

CancellationYour Right to Cancel:You may cancel this policy by notifying us that youwish to stop coverage.

Our Right to Cancel:We may cancel this policy by mailing notice to you atthe mailing address shown on the PolicyDeclarations. When this policy has been in effect forless than 90 days, and it is not a renewal with us, wemay cancel this policy for any reason by giving you atleast 10 days notice before the cancellation takeseffect.

When the policy has been in effect for 90 days ormore, or if it is a renewal with us, we may cancel thispolicy for one or more of the following reasons:1) non payment of premium;2) discovery of fraud or material misrepresentation;3) wilful or reckless acts or omissions increasing

the hazard insured against as determined from aphysical inspection of the insured premises;

4) physical changes in the covered property whichresult in the covered property becominguninsurable as determined from a physicalinspection of the insured premises; or

5) conviction of a crime arising out of actsincreasing the hazard insured against.

If the cancellation is for non payment of premium,we will mail you notice at least 15 days before thecancellation effective date. If the cancellation is forany of the other reasons, we will mail you notice atleast 30 days prior to the cancellation effective date.

Proof of mailing the notice of cancellation to you willbe deemed proof of notice. Coverage under thispolicy will terminate on the effective date and hourstated on the cancellation notice. Your returnpremium, if any, will be calculated on a pro rata basisand refunded at the time of cancellation or as soonas possible. However, refund of unearned premium isnot a condition of cancellation.

Our Right Not to Renew or Continue:We have the right not to renew or continue the policybeyond the current policy period. If we do not intendto continue or renew the policy, we will mail younotice at least 30 days before the end of the policyperiod. Proof of mailing the notice of non renewal toyou will be deemed proof of notice.

If your policy is issued for less than one year, we willnot refuse to renew except as of the expiration of apolicy period which coincides with the end of anannual period commencing with the original effectivedate of your policy.

Concealment Or FraudWe may void this policy if it was obtained by materialmisrepresentation, fraud or concealment of materialfacts. If we determine that this policy is void, allpremiums paid will be returned to you since therehas been no coverage under this policy.

We do not cover any loss or occurrence in which anyinsured person has concealed or misrepresentedany material fact or circumstance.

Action Against UsNo one may bring an action against us unless therehas been full compliance with all policy terms.

Any action against us to which neither the ActionAgainst Us provision located in Section I Conditionsnor the Action Against Us provision located inSection II Conditions applies must be commencedwithin two years of the date the cause of actionaccrues.

If an action is brought asserting claims relating to theexistence or amount of coverage, or the amount of

PROP *11000451310115P000682915*


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loss for which coverage is sought, under differentcoverages of this policy, the claims relating to eachcoverage shall be treated as if they were separateactions for the purpose of the time limit tocommence action.

ArbitrationAny claim or dispute in any way related to this policy,by an insured person against us or us against aninsured person, may be resolved by arbitration onlyupon mutual consent of the parties. Arbitrationpursuant to this provision shall be subject to thefollowing:a) no arbitrator shall have the authority to award

punitive damages or attorney's fees;b) neither of the parties shall be entitled to

arbitrate any claims or disputes in arepresentative capacity or as a member of aclass; and

c) no arbitrator shall have the authority, withoutthe mutual consent of the parties, to consolidateclaims or disputes in arbitration.

Any decision agreed to by the arbitrator will not bebinding.

Section I – Your Property

Coverage ADwelling Protection

Property We Cover Under Coverage A:1. Your dwelling including attached structures.

Structures connected to your dwelling by only afence, utility line, or similar connection are notconsidered attached structures.

2. Construction materials and supplies at theaddress of, or adjacent to the residencepremises, for use in connection with yourdwelling.

3. Wall to wall carpeting fastened to yourdwelling.

Property We Do Not Cover UnderCoverage A:1. Any structure including fences or other property

covered under Coverage B –Other StructuresProtection.

2. Land, except as specifically provided in SectionI –Additional Protection under item 11," Land." .

Coverage BOther Structures Protection

Property We Cover Under Coverage B:1. Structures at the address shown on the Policy

Declarations separated from your dwelling byclear space.

2. Structures connected to your dwelling by only afence, utility line, or similar connection.

3. Construction materials and supplies at theaddress of, or adjacent to, the residencepremises for use in connection with structuresother than your dwelling.

4. Wall to wall carpeting fastened to buildingstructures on the residence premises otherthan your dwelling.

Property We Do Not Cover UnderCoverage B:1. Structures used in whole or in part for business

purposes.

2. Any structure or other property covered underCoverage A –Dwelling Protection.

3. Land, no matter where located, or thereplacement, rebuilding, restoration,stabilization or value of any such land.

4. Construction materials and supplies at theaddress of the residence premises for use inconnection with the dwelling.


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Losses We Cover Under Coverages Aand B:We will cover direct physical loss to propertydescribed in Coverage A – Dwelling Protection andCoverage B –Other Structures Protection except aslimited or excluded in this policy.

Losses We Do Not Cover Under CoveragesA and B:We do not cover loss to the property described inCoverage A –Dwelling Protection or Coverage B –Other Structures Protection caused directly orindirectly by any of the following, regardless of anyother cause or event contributing concurrently or inany sequence to the loss.A. 1. Flood, including, but not limited to surface

water, waves, tidal water or overflow ofany body of water, or spray from any ofthese, whether or not driven by wind.

2. Water that backs up through sewers ordrains.

3. Water that overflows from a sump pump,sump pump well or other system designedfor the removal of subsurface water whichis drained from a foundation area of astructure.

4. Water below the surface of the ground,regardless of its source. This includeswater which exerts pressure on, or flows,seeps or leaks through any part of theresidence premises.

We do cover direct physical loss caused byfire, explosion or theft resulting from items1 through 4 listed above.

5. Earth movement of any type, including, butnot limited to earthquake, volcaniceruption, lava flow, landslide, subsidence,mudflow, pressure, sinkhole, erosion, orthe sinking, rising, shifting, creeping,expanding, bulging, cracking, settling orcontracting of the earth. This exclusion

applies whether or not the earth movementis combined with water.

We do cover direct physical loss caused byfire, explosion, theft or breakage of glass orsafety glazing materials resulting fromearth movement.

6. Enforcement of any building codes,ordinances or laws regulating theconstruction, reconstruction, maintenance,repair, placement or demolition of anybuilding structure, other structure or landat the residence premises. This provisiondoes not apply to the replacement ofdamaged glass which constitutes a part ofthe covered dwelling with safety glazingmaterial where required by ordinance orlaw.

We do cover direct physical loss caused byactions of civil authority to prevent thespread of tire.

7. The failure by any insured person to takeall reasonable steps to preserve propertywhen the property is endangered by acause of loss we cover.

8. Intentional or criminal acts of, or at thedirection of, an insured person, if the lossthat occurs:a) may be reasonably expected to result

from such acts; orb) is the intended result of such acts.

This provision does not apply to aninnocent co insured having an interest inthe covered property.

9. Nuclear action, meaning nuclear reaction,discharge, radiation or radioactivecontamination or any consequence of anyof these. Loss caused by nuclear action isnot considered loss by fire, explosion orsmoke.

PROP *11000451310115P000682916*


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We do cover direct physical loss by fireresulting from nuclear action.

10. War or warlike acts, including but notlimited to, insurrection, rebellion orrevolution.

In addition, we do not cover loss caused by any ofthe following. However, any ensuing loss to propertydescribed in Coverage A –Dwelling Protection orCoverage B –other Structures Protection notexcluded or excepted in this policy is covered:

B. 1. a) wear and tear, marring, scratching,deterioration, inherent vice, or latentdefect;

b) mechanical breakdown;c) rust, mold, wet or dry rot;d) contamination;e) smog, smoke from agricultural

smudging and industrial operations;f) settling, cracking, shrinking, bulging

or expansion of pavements, patios,foundations, walls, floors, roofs orceilings;

g) insects, rodents, birds or domesticanimals. We do cover the breakage ofglass or safety glazing materialscaused by birds; or

h) seizure of any covered property bygovernment authority.

We will cover any loss that follows causedby fire, smoke that is not from agriculturalsmudging or industrial operations,explosion, collapse of a building, glassbreakage, or water damage not specificallyexcluded by this policy.

If any of (a) through (g) cause the suddenand accidental escape of water or steamfrom a plumbing, heating or airconditioning system, household applianceor fire protective sprinkler system withinyour dwelling, we cover the direct physicaldamage caused by the water or steam. Ifloss to covered property is caused by thewater or steam not otherwise excluded, we

will cover the cost of tearing out andreplacing any part of your dwellingnecessary to repair the system orappliance. This does not include damage tothe defective system or appliance fromwhich the water escaped.

2. Freezing of:a) plumbing, fire protective sprinkler

systems, heating or air conditioningsystems;

b) household appliances; orc) swimming pools, hot tubs and spas

within the dwelling, their filtration andcirculation systems;

or discharge, leakage or overflow fromwithin a), b) or c) above, caused byfreezing, while the building structure isvacant, unoccupied or being constructedunless you have used reasonable care to:a) maintain heat in the building

structure; orb) shut off the water supply and drain the

system and appliances.

3. Freezing, thawing, pressure or weight ofwater, snow or ice, whether driven by windor not. This exclusion applies only tofences, pavements, patios, swimmingpools, foundations, retaining walls,bulkheads, piers, wharves or docks. Thisexclusion also applies to swimming pools,hot tubs, spas, their filtration andcirculation systems if the swimming pool,hot tub or spa is not located within aheated portion of the dwelling.

4. Seepage, meaning continuous or repeatedseepage or leakage over a period of weeks,months, or years, of water or steam:a) from a plumbing, heating, air

conditioning or automatic fireprotection system or from within adomestic appliance; or

b) from, within or around any plumbingfixtures, including, but not limited toshower stalls, shower baths, tubinstallations, sinks or other fixtures


Page 9

designed for the use of water orsteam.

5. Theft from your residence premises whileyour dwelling is under construction, or ofmaterials and supplies for use inconstruction, until your dwelling iscompleted and occupied.

6. Vandalism or Malicious Mischief if yourdwelling is vacant for more than 30consecutive days immediately prior to thevandalism or malicious mischief. Adwelling under construction is notconsidered vacant or unoccupied.

We do not cover loss to the property described inCoverage A –Dwelling Protection or Coverage B –Other Structures Protection caused by any of thefollowing. However, any ensuing loss to propertydescribed in Coverage A –Dwelling Protection orCoverage B –other Structures Protection notexcluded or excepted in this policy is covered:

C. 1. Weather Conditions that contribute in anyway with a cause of loss excluded underLosses We Do Not Cover UnderCoverages A and B to produce a loss.

2. Planning, Construction or Maintenance,meaning faulty, inadequate or defective:a) planning, zoning, development,

surveying, siting;b) design, specifications, workmanship,

repair, construction, renovation,remodeling, grading, compaction;

c) materials used in repair, construction,renovation or remodeling; or

d) maintenance;

of property whether on or off the residencepremises by any person or organization.

Coverage CPersonal Property Protection

Property We Cover Under Coverage C:1. Personal property owned or used by an insured

person anywhere in the world. When personalproperty is located at a residence owned by you,other than the residence premises, coverage islimited to 10% of the limit of liability ofCoverage C –Personal Property Protection, or$1,000, whichever is greater. This limitationdoes not apply to personal property in a newlyacquired principal residence for the 30 daysimmediately after you begin to move propertythere or to personal property in studentdormitory, fraternity or sorority housing.

2. At your option:a) personal property owned by a guest while

the property is in a residence you occupy;or

b) personal property owned by a residenceemployee while the property is:1) in a residence you occupy; or2) in the physical custody of that

residence employee, engaged in theservice of an insured person.

Limitations On Certain Personal Property:Limitations apply to the following groups of personalproperty. These limitations do not increase theamount of insurance under Coverage C –PersonalProperty Protection. The total amount of coveragefor each group in any one loss is as follows:

1. $ 100 – Money, bullion, platinum otherthan platinumware, bank notes,gold other than goldware orgold plated ware, silver otherthan silverware or silver platedware, coins and othernumismatic property.

2. $ 200 – Business property while thatbusiness property is away fromthe residence premises.

PROP *11000451310115P000682917*


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3. $ 200 – Business property while thebusiness property is at theresidence premises

4. $1,500 – Theft of jewelry, watches,necklaces , bracelets, gems,precious and semi preciousstones, and furs, including anyitem containing fur whichrepresents its principle value.

5. $1,000 – Accounts, bills, deeds, evidencesof debt, letters of credit, notesother than bank notes,passports, securities, tickets,and stamps, including philatelicproperty regardless of the mediaon which the material exists.

6. $1,000 – Manuscripts, includingdocuments stored on electronicmedia.

7. $1,000 – Watercraft, including theirattached or unattached trailers,furnishings, equipment andoutboard motors.

8. $1,000 – Trailers not used withwatercraft.

9. $ 1,500 – Electronic data processingequipment and the recordingor storage media used withthat equipment when thebusiness property is used in abusiness conducted on oraway from the residencepremises. Recording orstorage media will be coveredonly up to:a) the retail value of the

media, if preprogrammed; or

b) the retail value of themedia in blank orunexposed form, if blankor self programmed.

10. $ 2,000 – Theft of firearms and relatedaccessories.

Property We Do Not Cover UnderCoverage C1. Personal property specifically described and

insured by this or any other insurance.

2. Animals, birds or fish.

3. Motorized land vehicles, including, but notlimited to any land vehicle powered or assistedby a motor or engine. We do cover motorizedland vehicles designed for assisting thehandicapped or used solely for the service of theresidence premises which are not licensed foruse on public roads.

4. Aircraft and aircraft part. This does not includemodel or hobby craft not designed to carrypeople or cargo.

5. Property of roomers, boarders, or tenants notrelated to you.

6. Property located away from the residencepremises and rented or held for rental to others.

7. Business property in storage, or held assamples, or for sale, or delivery after sale.

Losses We Cover Under Coverage C:We will cover direct physical loss to the propertydescribed in Coverage C –Personal PropertyProtection, except as limited or excluded in thispolicy, caused by:

1. Fire or Lightning.

2. Windstorm or Hail.

We do not cover:a) loss to covered property inside a building

structure, caused by rain, snow, sleet,sand or dust unless the wind or hail firstdamages the roof or walls and the wind


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forces rain, snow, sleet, sand or dustthrough the damaged roof or walls;

b) loss to watercraft and their trailers,furnishings, equipment and outboardmotors unless inside a fully enclosedbuilding structure. However, we do covercanoes and rowboats on the residencepremises.

3. Explosion.

4. Riot or Civil Commotion, including pillage andlooting during, and at the site of, the riot or civilcommotion.

5. Aircraft, including self propelled missiles andspacecraft.

6. Vehicles.

7. Smoke, meaning sudden and accidentaldamage from smoke.

We do not cover loss caused by smoke,agricultural smudging or industrial operations.

8. Vandalism or Malicious Mischief.

9. Falling objects.

We do not cover loss to personal property insidea building structure unless the falling objectfirst damages the exterior walls or roof of thebuilding structure.

10. Weight of ice, snow or sleet which causesdamage to personal property in a buildingstructure, but only if the building structure isdamaged due to the weight of ice, snow orsleet.

11. Sudden and accidental damage resulting fromincrease or decrease of artificially generatedelectrical current to electronics, electricalappliances, fixtures and wiring.

This peril does not include loss to tubes,transistors or similar electronic components.

12. Sudden and accidental damage resulting from,bulging, burning, cracking or rupture of a steamor hot water heating system, an air conditioningsystem, an automatic fire protection system oran appliance for heating water.

13. Water or steam that escapes from a plumbing,heating or air conditioning system, an automaticfire protection system, or from a householdappliance due to accidental discharge oroverflow.

We do not cover loss to the system or appliancefrom which the water or steam escapes, or lossfrom water which backs up through sewers ordrains or overflows from a sump pump, sumppump well or other system designed for theremoval of subsurface water which is drainedfrom a foundation area of a structure.

14. Freezing of a plumbing, heating, air conditioningsystem, automatic fire protection sprinklersystem or a household appliance.

We do not cover loss at the residence premisesunder perils 12), 13), and 14) caused by orresulting from freezing while the buildingstructure is vacant, unoccupied or underconstruction unless you have used reasonablecare to:a) maintain heat in the building structure; orb) shut off the water supply and drain the

water from the systems and appliances.

15. Theft, or attempted theft, includingdisappearance of property from a known placewhen it is likely that a theft has occurred. Anytheft must be promptly reported to the police.

We do not cover:a) theft or attempted theft committed by an

insured person;b) theft in or from the residence premises

while under construction or of materials

PROP *11000451310115P000682918*


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and supplies for use in construction, untilthe dwelling is completed and occupied;

c) theft of any property while at any otherresidence owned, rented to or occupied byan insured person unless the insuredperson is temporarily residing there.

However, we do cover property of a studentwho is an insured person, while at aresidence away from home, if the studenthas been at that residence at any timeduring the 45 days immediately before theloss;

d) theft of trailers, campers, watercraft,including furnishings, equipment andoutboard motors, away from the residencepremises;

e) theft from that part of the residencepremises rented by you to other than aninsured person:1) of money, bullion, bank notes, gold

and silver coins, and other numismaticproperty,;

2) of manuscripts, including documentsstored on electronic media, accounts,bills, deeds, evidences of debt, lettersof credit, notes other than bank notes,passports, securities, tickets, stamps,including philatelic property regardlessof the media on which the materialexists;

3) theft of jewelry, watches, necklaces,bracelets, gems, gold, goldware,silver, silver ware, silver platedware,pewterware, platinum and coins,precious and semi precious stones,and furs, including any item containingfur which represents its principlevalue.

4) caused by a tenant, the tenant'semployees, or members of thetenant's household while renting theportion of the described dwellingcustomarily occupied exclusively by aninsured.

f) theft of property while unattended in orupon a motor vehicle or trailer, other than apublic conveyance, unless there is visibleevidence of forcible entry upon the exteriorof the vehicle. All doors and windows of thevehicle must be closed and locked. Thisprovision does not apply if you have giventhe keys to your vehicle to a garage orparking attendant or the loss is the result ofthe theft of the vehicle which is notrecovered within 30 days.

16. Breakage of glass, meaning damage to coveredpersonal property caused by breakage of glassconstituting a part of any building structure onthe residence premises. This does not includedamage to the glass.

17. CollapseWe will cover direct physical loss to coveredpersonal property caused by collapse of abuilding structure or any part of a buildingstructure. Collapse does not include setting,cracking, shrinking, bulging or expansion.

Losses We Do Not Cover Under Coverage C– Personal Property Protection:We do not cover loss to the property described inCoverage C –Personal Property Protection causeddirectly or indirectly by any of the following,regardless of any other cause or event contributingconcurrently or in any sequence to the loss.

A. 1. Flood, including, but not limited to surfacewater, waves, tidal water or overflow ofany body of water, or spray from any ofthese, whether or not driven by wind.

2. Water that backs up through sewers ordrains.

3. Water that overflows from a sump pump,sump pump well or other system designedfor the removal of subsurface water whichis drained from a foundation area of astructure.


Page 13

4. Water below the surface of the ground,regardless of its source. This includeswater which exerts pressure on, or flows,seeps or leaks through any part of theresidence premises.

We do cover direct physical loss caused byfire, explosion or theft resulting from items1 through 4 listed above.

5. Earth movement of any type, including, butnot limited to earthquake, volcaniceruption, lava flow, landslide, subsidence,mudflow, pressure, sinkhole, erosion, orthe sinking, rising, shifting, creeping,expanding, bulging, cracking, settling orcontracting of the earth. This exclusionapplies whether or not the earth movementis combined with water.

We do cover direct physical loss caused byfire, explosion, theft or breakage of glass orsafety glazing materials resulting fromearth movement.

6. Enforcement of any building codes,ordinances or laws regulating theconstruction, reconstruction, maintenance,repair, placement or demolition of anybuilding structure, other structure or land atthe residence premises.

We do cover direct physical loss to coveredproperty caused by actions of civil authorityto prevent the spread of fire.

7. The failure by any insured person to takeall reasonable steps to save and preserveproperty when the property is endangeredby a cause of loss we cover.

8. Intentional or criminal acts of, or at thedirection of, an insured person, if the lossthat occurs:a) may be reasonably expected to result


This provision does not apply to aninnocent co insured having an interest inthe covered property.

9. Nuclear action, meaning nuclear reaction,discharge, radiation or radioactivecontamination, or any consequence of anyof these. Loss caused by nuclear action isnot considered loss by fire, explosion orsmoke.

We do cover direct physical loss by fireresulting from nuclear action.

10. War or warlike acts, including, but notlimited to, insurrection, rebellion,revolution.

We do not cover loss to the property described inCoverage C –Personal Property Protection causedby any of the following. However, any ensuing loss toproperty described in Coverage C –PersonalProperty Protection not excluded or excepted in thispolicy is covered.

B. 1. Weather Conditions that contribute in anyway with a cause of loss excluded underCoverage C – Personal PropertyProtection to produce a loss.

2. Planning, Construction or Maintenance,meaning faulty, inadequate or defective:a) planning, zoning, development,

surveying, siting;b) design, specifications, workmanship,

repair, construction, renovation,remodeling, grading, compaction;

c) materials used in repair, construction,renovation or remodeling; or

d) maintenance;

of property whether on or off the residencepremises by any person or organization.

Additional Protection

1. Additional Living Expensea) We will pay the reasonable increase in

living expenses necessary to maintain your

PROP *11000451310115P000682919*


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normal standard of living when a directphysical loss we cover under Coverage A –Dwelling Protection, Coverage B –OtherStructures Protection or Coverage C –Personal Property Protection makes yourresidence premises uninhabitable.

Payment for additional living expense as aresult of a covered loss under Coverage A –Dwelling Protection, Coverage B –OtherStructures Protection or Coverage C –Personal Property Protection will belimited to the least of the following:1) the time period required to repair or

replace the property we cover, usingdue diligence and dispatch; or

2) if you permanently relocate, theshortest time for your household tosettle elsewhere.

b) We will pay your lost fair rental incomeresulting from a covered loss, less chargesand expenses which do not continue, whena loss we cover makes the part of theresidence premises you rent to others, orhold for rental, uninhabitable. We will payfor lost fair rental income for the shortesttime required to repair or replace the partrented or held for rental.

c) We will pay the reasonable and necessaryincrease in living expenses and the lost fairrental income for up to two weeks shouldcivil authorities prohibit the use of theresidence premises due to a loss at aneighboring premises caused by a peril weinsure against.

Additional Living Expense including fair rentalincome will not exceed the amount indicated onyour Policy Declarations.

These periods of time are not limited by thetermination of this policy.

We do not cover any lost income or expense dueto the cancellation of a lease or agreement.

No deductible applies to this protection.

2. Credit Card, Debit Card or Automated TellerMachine Card, Bank Fund Transfer Card,Check Forgery and Counterfeit MoneyWe will pay for loss:a) that an insured person is legally required

to pay for the unauthorized use of any1) credit card;2) debit or automated teller machine

card;3) bank fund transfer card;4) code;5) account number;6) personal identification number; or7) other means of account accessthat can be used, alone or in conjunctionwith items 1) through 7) above, to obtainmoney, goods, services, or any other thingof value, or that can be used to initiate atransfer of funds.

b) caused by forgery, or alteration of a check,or negotiable instrument made or drawnupon an insured person's account; or

c) to an insured person through acceptancein good faith of counterfeit United States orCanadian paper currency.

Our maximum limit of liability for any one loss is$1,000, regardless of the number of personsinvolved. All loss due to forgery or unauthorizeduse by or involving any one person is consideredone loss.

We do not cover:

a) loss arising from any business of aninsured person;

b) loss caused by or at the direction of aninsured person or any other person whohas been entrusted with any credit card,debit or automated teller machine card, orbank fund transfer card; or

c) loss arising out of dishonesty of an insuredperson.


Page 15

When loss is discovered, the insured personmust give us immediate written notice. If theloss involves a credit card, debit or automatedteller machine card, or bank fund transfer card,the insured person must also give immediatewritten notice to the company or bank thatissued the card or plate. Failure to comply withthe terms and conditions of the card or platevoids this protection.

We will pay only for loss occurring during thepolicy period, including those losses discoveredand reported to us within one year after thepolicy has terminated. We have the right toinvestigate and settle any claim or suit as wedeem appropriate. Full payment of the amountof insurance for any one loss ends our obligationunder each claim or suit arising from the loss.

When this coverage applies, we will defend anysuit brought against an insured person for theenforcement of payment that an insured personis legally required to make as a result of theunauthorized use of any credit card, debit orautomated teller machine card, or bank fundtransfer card issued to or registered in the nameof an insured person. The defense will be at ourexpense, with counsel of our choice.We have the option to defend an insured personor the insured person's bank against a suit forthe enforcement of payment legally required tobe made as a result of forgery or alteration of acheck or negotiable instrument made or drawnupon an insured person's account. The defensewill be at our expense, with counsel of ourchoice.


3. Debris RemovalWe will pay reasonable expenses you incur toremove debris of covered property damaged bya loss we cover. We will also pay the reasonableexpense for removal of fallen trees which causedirect physical loss to covered property. If theloss to the covered property and the cost ofdebris removal are more than the Limit of

Liability shown on the Policy Declarations for thecovered property, we will pay up to an additional5% of that limit for debris removal.

4. Emergency Removal of PropertyWe will pay for direct physical loss to coveredproperty from any cause while removed from apremises because of danger from a loss wecover. Protection is limited to a 30 day periodfrom date of removal. This protection does notincrease the limit of liability that applies to thecovered property.

5. Fire Department ChargesWe will pay up to $500 for service chargesmade by fire departments called to protect yourproperty from a loss we cover at the residencepremises. No deductible applies to thisprotection.

6. Temporary Repairs After a LossWe will reimburse you for the reasonable andnecessary cost you incur for temporary orpermanent repairs to protect covered propertyfrom further imminent covered loss following aloss we cover. You must keep an accuraterecord of repair expenses. This coverage doesnot increase the limit of liability applying to theproperty being repaired.

7. Trees, Shrubs, Plants and LawnsWe will pay up to 5% of the limit of liabilityshown on the Policy Declarations underCoverage A –Dwelling Protection for loss totrees, shrubs, plants and lawns at the addressof the residence premises.

We will not pay more than $500 for any onetree, shrub, or plant. This coverage applies onlyto direct physical loss caused by fire orlightning, explosion, riot or civil commotion,aircraft, vehicles not owned or operated by anoccupant of the residence premises, vandalismor malicious mischief, theft.

We do not cover trees, shrubs, plants, or lawnsgrown for business purposes.

PROP *11000451310115P000682920*


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

8. Temperature ChangeWe will pay for loss to covered personalproperty in a building structure at the residencepremises resulting from a change intemperature. The change in temperature mustresult from a covered loss to the buildingstructure.


9. Power InterruptionWe will pay up to $500 for loss to the contentsof freezers and refrigerated units on theresidence premises caused by the interruptionof power which occurs off the residencepremises. If a power interruption is known to aninsured person, all reasonable means must beused to protect the contents of freezers andrefrigerated units.


10. Arson RewardWe will pay up to $5,000 for information leadingto an arson conviction in connection with a fireloss to property covered under Section I of thispolicy. The $5,000 limit applies regardless of thenumber of persons providing information.

11. LandIf a direct physical loss results in both a coveredloss to the dwelling, other than the breakage ofglass or safety glazing material, and a loss ofland stability, we will pay up to $10,000 as anadditional amount of insurance for repair costsassociated with the land. This includes the costsrequired to replace, rebuild, stabilize orotherwise restore the land necessary to supportthat part of the dwelling sustaining the coveredloss.

The Section I –Losses We Do Not Cover UnderCoverages A and B reference to earthmovement does not apply to the loss of landstability provided under this AdditionalProtection.

12. Lock ReplacementWhen a key to a lock is stolen as part of acovered theft loss, we will pay under CoverageA –Dwelling Protection the reasonableexpenses you incur to replace or re key exteriordoor locks at the residence premises with locksor cylinders of like kind and quality. The limit ofliability under this coverage following any onetheft loss is $500.

This coverage does not increase the limit ofliability that applies to the covered property

Section I Conditions

1. DeductibleWe will pay when a covered loss exceeds theapplicable deductible shown on the PolicyDeclarations. We will then pay only the excessamount, unless we have indicated otherwise inthis policy.

2. Insurable Interest and Our LiabilityIn the event of a covered loss, we will not payfor more than an insured person's insurableinterest in the property covered, nor more thanthe amount of coverage afforded by this policy.

3. What You Must Do After A LossIn the event of a loss to any property that maybe covered by this policy, you must:a) immediately give us or our agent notice.

Report any theft to the police as soon aspossible. If the loss involves a credit card,debit or automated teller machine card orbank fund transfer card, give notice to thecompany or bank that issued the card orplate.

b) protect the property from further loss.Make any reasonable repairs necessary to


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protect it. Keep an accurate record of anyrepair expenses.

c) separate damaged from undamagedpersonal property. Give us a detailed list ofthe damaged, destroyed or stolen property,showing the quantity, cost, actual cashvalue and the amount of loss claimed.

d) give us all accounting records, bills,invoices and other vouchers, or certifiedcopies, which we may reasonably requestto examine and permit us to make copies.

e) produce receipts for any increased costs tomaintain your standard of living while youreside elsewhere, and records supportingany claim for loss of rental income.

f) as often as we reasonably require:1) show us the damaged property;2) at our request, submit to examinations

under oath and sign a transcript of thesame;

3) produce representatives, employees,members of the insured person'shousehold or others to the extent it iswithin the insured person's power todo so; and

g) within 60 days after the loss, give us asigned, sworn proof of the loss. Thisstatement must include the followinginformation:1) the date, time, location and cause of

loss;2) the interest insured persons and

others have in the property, includingany encumbrances;

3) the actual cash value and amount ofloss for each item damaged, destroyedor stolen;

4) any other insurance that may coverthe loss;

5) any changes in title, use, occupancy orpossession of the property that haveoccurred during the policy period; and

6) at our request, the specifications ofany damaged building structure orother structure.

7) evidence supporting any claim underthe Credit Card, Debit or Automated

Teller Machine Card, Bank FundTransfer Card, Check Forgery andCounterfeit Money protection. Statethe cause and amount of loss.

4. Our Settlement OptionsIn the event of a covered loss, we have theoption to:a) repair, rebuild or replace all or any part of

the damaged, destroyed or stolen propertywith property of like kind and quality withina reasonable time; or

b) pay for all or any part of the damaged,destroyed or stolen property as describedin Condition 5. " How We Pay For A Loss."

Within 30 days after we receive your signed,sworn proof of loss we will notify you of theoption or options we intend to exercise.

5. How We Pay For A LossUnder Coverage A –Dwelling Protection,Coverage B –Other Structures Protection andCoverage C –Personal Property Protection,payment for covered loss will be by one or moreof the following methods:a) Special Payment.

1) At our option, we will make paymentfor a covered loss before you repair,rebuild or replace the damaged,destroyed or stolen structure orbuilding structure covered underCoverage A –Dwelling Protection orCoverage B –Other StructuresProtection, without deduction fordepreciation, if the amount of loss forthe structure or building structurecovered under Coverage A –DwellingProtection or Coverage B –OtherStructures Protection is:

a) less than 5% of the limit ofliability for the structure orbuilding structure, and

b) less than $2,500; and theproperty is not excluded from the

PROP *11000451310115P000682921*


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Building Structure ReplacementCost provision.

2) Under Coverage C –PersonalProperty Protection, at our option, wemay make payment for a covered lossbefore you repair, rebuild or replacethe damaged, destroyed or stolenproperty if the whole amount of lossfor property covered under CoverageC –Personal Property Protection,without deduction for depreciation, isless than $1,000, and the property isnot excluded from the PersonalProperty Replacement Cost provision.

b) Actual Cash Value.Property of the following types will besettled at actual cash value at the time ofloss:(i) personal property;(ii) awnings, carpeting, household

appliances, outdoor antennas andoutdoor equipment, even if attached toa building structure; or

(iii) structures that are not buildingstructures.

We will not pay more than the amountrequired to repair or replace the damagedproperty, or the limit of liability whichever isless.

If you do not repair or replace thedamaged, destroyed or stolen property,payment will be on an actual cash valuebasis. This means there may be adeduction for depreciation. Payment willnot exceed the Limit of Liability shown onthe Policy Declarations for the coveragethat applies to the damaged, destroyed orstolen property, regardless of the numberof items involved in the loss.

You may disregard the Building StructureReplacement Cost and Personal PropertyReimbursement Cost provisions and makean initial claim under this policy for loss or

damage to buildings on an actual cashvalue basis. You may then make claim, inaccordance with the provisions of theCondition 5. " How We Pay For A Loss" , forthe difference between the actual cashvalue and the full replacement cost of thebuildings within 6 months of the later of:(i) the last date on which you received

actual cash value payment for thesame covered property; or

(ii) the date of entry of a final order of acourt of competent jurisdictiondeclaring your right to fullreplacement cost.

Payment under c), below will not includeany increased cost due to the enforcementof building codes, ordinances or lawsregulating the construction, reconstruction,maintenance, repair, relocation ordemolition of building structures or otherstructures.

c) Building Structure Replacement Cost.Other than losses subject to SpecialPayment provision, a)1), under Coverage A–Dwelling Protection and Coverage B –Other Structures Protection, we will makepayment for building structures coveredunder Coverage A –Dwelling Protection orCoverage B –Other Structures Protectionat replacement cost, without deduction fordepreciation, subject to the following:

Building Structure Replacement Cost willnot exceed the smallest of the followingamounts:1) the replacement cost of the part(s) of

the building structure(s) for likeconstruction for similar use on thesame residence premises;

2) the amount actually and necessarilyspent to repair or replace the damagedbuilding structure(s) with likeconstruction for similar use on thesame residence premises; or


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3) the limit of liability applicable to thebuilding structure(s) as shown on thePolicy Declarations for Coverage A –Dwelling Protection or Coverage B –Other Structures Protection,regardless of the number of buildingstructures and structures other thanbuilding structures involved in theloss.

If you replace the damaged buildingstructure(s) at an address other than shownon the Policy Declarations throughconstruction of a new structure orpurchase of an existing structure, suchreplacement will not increase the amountpayable under Building StructureReplacement Cost described above. Theamount payable under Building StructureReplacement Cost described above doesnot include the value of any land associatedwith the replacement structure(s).

Building Structure Replacement Costpayment will be limited to the differencebetween any actual cash value paymentmade for the covered loss to buildingstructures and the smallest of 1), 2) or 3)above.

This additional payment includes thereasonable and necessary expense fortreatment or removal and disposal ofcontaminants, toxins or pollutants asrequired to complete repair or replacementof that part of a building structuredamaged by a covered loss.

Building Structure Replacement Cost willnot apply to:1) property covered under Coverage C –

Personal Property Protection;2) property covered under Coverage B –

Other Structures Protection that is nota building structure;

3) wall to wall carpeting, built inhousehold appliances, awnings and

outdoor antenna whether or notfastened to a building structure; or

4) land.

Payment under a), b) or c), above will notinclude any increased cost due to theenforcement of building codes, ordinancesor laws regulating the construction,reconstruction, maintenance, repair,relocation or demolition of buildingstructures or other structures.

d) Personal Property Reimbursement Cost.Under Coverage C –Personal PropertyProtection, we will make additionalpayment to you, on a replacement costbasis, for cost in excess of actual cashvalue, if you intend to repair, restore orreplace the damaged or stolen property.You may make claim for additionalpayment for property covered underCoverage C –Personal PropertyProtection, within six months of the laterof:(i) the last date on which you received

actual cash value payment for thesame covered property; or

(ii) the date of entry of a final order of acourt of competent jurisdictiondeclaring your right to fullreplacement cost.

Personal Property Reimbursement Costpayment will not exceed the smallest of thefollowing amounts:1) the amount actually and necessarily

spent to repair or replace the propertywith similar property of like kind andquality;

2) the cost of repair or restoration; or3) the Limit of Liability shown on the

Policy Declarations for Coverage C –Personal Property Protection, or anyspecial limit of liability described in thepolicy, regardless of the number ofitems of personal property involved inthe loss.

PROP *11000451310115P000682922*


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Personal Property Reimbursement Cost willbe limited to the difference between anyactual cash value payment made for thecovered loss to personal property and thesmallest of 1), 2) or 3) above.

Personal Property Reimbursement Cost willnot apply to:1) property insured under Coverage A –

Dwelling Protection and Coverage B –Other Structures Protection, exceptwall to wall carpeting;

2) antiques, fine arts, paintings, statuaryand similar articles which, by theirinherent nature, cannot be replaced;

3) articles whose age or historycontribute substantially to their value.This includes but is not limited tomemorabilia, souvenirs and collector'sitems;

4) property that was obsolete orunusable for the originally intendedpurpose because of age or conditionprior to the loss; or

5) motorized land vehicles used solely forthe service of the insured premisesand not licensed for use on publicroads. This does not include motorizedland vehicles designed for assistingthe disabled.

6. Our Settlement Of LossWe will settle any covered loss with you unlesssome other person or entity is named in thepolicy. Losses will be payable within 30 daysafter the amount of loss is finally determined.This amount may be determined by anagreement between you and us, an appraisalaward or a court judgment.

7. AppraisalIf you and we fail to agree on the amount ofloss, either party may make written demand foran appraisal. Upon such demand, each partymust select a competent and impartial appraiserand notify the other of the appraiser's identitywithin 20 days after the demand is received.The appraisers will select a competent and

impartial umpire. If the appraisers are unable toagree upon an umpire within 15 days, you or wecan ask a judge of a court of record in the statewhere the residence premises is located toselect an umpire.

The appraisers shall then determine the amountof loss, stating separately the actual cash valueand the amount of loss to each item. If theappraisers submit a written report of anagreement to you and to us the amount agreedupon shall be the amount of loss. If they cannotagree, they will submit their differences to theumpire. A written award agreed upon by anytwo will determine the amount of loss.

Each party will pay the appraiser it chooses, andequally bear expenses for the umpire and allother appraisal expenses; however, if we makethe written demand, then you shall bereimbursed for the reasonable cost of yourappraiser and your portion of the cost of theumpire.

8. Abandoned PropertyWe are not obligated to accept any property orresponsibility for any property abandoned by aninsured person.

9. Permission Granted To Youa) The residence premises may be vacant or

unoccupied for any length of time, exceptwhere a time limit is indicated in this policyfor specific perils. A building structureunder construction is not consideredvacant.

b) You may make alterations, additions orrepairs, and you may complete structuresunder construction.

10. Our Right To Recover PaymentWhen we pay for any loss, an insured person'sright to recover from anyone else becomes oursup to the amount we have paid. An insuredperson must protect these rights and help usenforce them. You may waive your rights torecover against another person for loss involving


Page 21

the property covered by this policy. This waivermust be in writing prior to the date of loss.

11. Our Rights To Obtain SalvageWe have the option to take all or any part of thedamaged or destroyed covered property uponreplacement by us or payment of the agreed orappraised value.

We will notify you of our intent to exercise thisoption within 30 days after we receive yoursigned, sworn proof of loss. If no signed, swornproof of loss is requested by us, we will notifyyou of our intent to exercise this option within30 days after the date you report the loss to us.

When we settle any loss caused by theft ordisappearance, we have the right to obtain all orpart of any property which may be recovered.An insured person must protect this right andinform us of any property recovered. We willinform you of our intent to exercise this rightwithin 10 days of your notice of recovery to us.If no signed, sworn proof of loss is requested byus, we will notify you of our intent to exercisethis option within 30 days after the date youreport the loss to us.

12. Action Against UsNo one may bring an action against us in anyway related to the existence or amount ofcoverage, or the amount of loss for whichcoverage is sought, under a coverage to whichSection I Conditions applies, unless:a) there has been full compliance with all

policy terms; andb) the action is commenced within two years

after the inception of loss or damage.

13. Loss To A Pair Or SetIf there is a covered loss to a pair or set, wemay:a) repair or replace any part of the pair or set

to restore it to its value before the loss; orb) pay the difference between the actual cash

value of the pair or set before and after theloss.

14. Glass ReplacementPayment for loss to covered glass includes thecost of using safety glazing materials whenrequired by law.

15. No Benefit To BaileeThis insurance will not benefit any person ororganization who may be caring for or handlingyour property for a fee.

16. Other InsuranceIf both this insurance and other insurance applyto a loss, we will pay the proportionate amountthat this insurance bears to the total amount ofall applicable insurance.

17. Property Insurance AdjustmentWhen the Policy Declarations indicates that theProperty Insurance Adjustment Conditionapplies, you agree that, at each policyanniversary, we may increase the Limit ofLiability shown on the Policy Declarations forCoverage A –Dwelling Protection to reflect oneof the following:a) the rate of change in the Index identified in

the " Important Payment and CoverageInformation" section of the PolicyDeclarations. The limit of liability forCoverage A –Dwelling Protection for thesucceeding premium period will bedetermined by changing the existing limit inproportion to the change in the Indexbetween the time the existing limit wasestablished and the time the change ismade. The resulting amount will berounded to the nearest $1000; or

b) the minimum amount of insurancecoverage we are willing to issue for thesucceeding premium period underCoverage A –Dwelling Protection for yourdwelling and other property we coverunder Coverage A –Dwelling Protection.

Any adjustment in the limit of liability forCoverage A –Dwelling Protection will result inan adjustment in the limit of liability forCoverage B –Other Structures Protection and

PROP *11000451310115P000682923*


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Coverage C –Personal Property Protection inaccordance with our manual of rules and rates.

We will not reduce the Limit of Liability shownon the Policy Declarations without your consent.

Any adjustment in premium resulting from theapplication of this condition will be made basedon premium rates in use by us at the time achange in limits is made.

You agree that it is your responsibility to ensurethat each of the Limits of Liability shown on thePolicy Declarations are appropriate for yourinsurance needs. If you want to increase ordecrease any of the limits of liability shown onthe Policy Declarations, you must contact us torequest such a change.

18. MortgageeA covered loss will be payable to themortgagees named on the Policy Declarations,to the extent of their interest and in the order ofprecedence. All provisions of Section I of thispolicy apply to these mortgagees.

We will:a) protect the mortgagee's interest in a

covered building structure in the event ofan increase in hazard, intentional orcriminal acts of, or directed by, an insuredperson, failure by any insured person totake all reasonable steps to save andpreserve property after a loss, a change inownership, or foreclosure if the mortgageehas no knowledge of these conditions; and

b) give the mortgagee at least 15 days noticeif we cancel or non renew this policy.

The mortgagee will:a) furnish proof of loss within 60 days after

notice of the loss if an insured person failsto do so;

b) pay upon demand any premium due if aninsured person fails to do so;

c) notify us of any change of ownership oroccupancy or any increase in hazard ofwhich the mortgagee has knowledge;

d) give us the mortgagee's right of recoveryagainst any party liable for loss; and

e) after a loss, and at our option, permit us tosatisfy the mortgage requirements andreceive full transfer of the mortgage.

Our right to subrogation will not effect themortgagees right to recover the full amount ofthe mortgagee's claim.

This mortgagee interest provision shall apply toany trustee or loss payee or other secured party.

19. Loss ClauseOur payment of loss will not reduce the amountof insurance under this policy for future losses.

Section II – Family Liability and GuestMedical Protection

Coverage XFamily Liability Protection

Losses We Cover Under Coverage XSubject to the terms, conditions and limitations ofthis policy, we will pay damages which an insuredperson becomes legally obligated to pay because ofbodily injury or property damage arising from anoccurrence to which this policy applies, and iscovered by this part of the policy.

We may investigate or settle any claim or suit forcovered damages against an insured person. If aninsured person is sued for these damages, we willprovide a defense, at our expense, with counsel ofour choice, even if the allegations are groundless,false or fraudulent. We are not obligated to pay anyclaim or judgment after we have exhausted our limitof liability.


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Coverage YGuest Medical Protection

Losses We Cover Under Coverage Y:We will pay the reasonable expenses incurred fornecessary medical, surgical, x ray and dentalservices; ambulance, hospital, licensed nursing andfuneral services; and prosthetic devices, eye glasses,hearing aids, and pharmaceuticals. These expensesmust be incurred and the services performed withinone year from the date of an occurrence causingbodily injury to which this policy applies, and iscovered by this part of the policy.

Each person who sustains bodily injury is entitled tothis protection when that person is:1. on the insured premises with the permission of

an insured person; or2. off the insured premises, if the bodily injury:

a) arises out of a condition on the insuredpremises or immediately adjoining ways;

b) is caused by the activities of an insuredperson or a residence employee;

c) is caused by an animal owned by or in thecare of an insured person; or

d) is sustained by a residence employee andarises out of and in the course ofemployment by any insured person.

Additional Protection

We will pay, in addition to the limits of liability:

1. Claim ExpensesWe will pay:a) all costs we incur in the settlement of any

claim or the defense of any suit against aninsured person;

b) interest accruing on damages awardeduntil such time as we have paid, formallyoffered, or deposited in court the amountfor which we are liable under this policy;interest will be paid only on damageswhich do not exceed our limits of liability;

c) premiums on bonds required in any suit wedefend; we will not pay bond premiums in

an amount that is more than our limit ofliability; we have no obligation to apply foror furnish bonds;

d) up to $150 per day for reasonableexpenses including actual loss of wages,salary, (but not loss of other income)vacation time or other benefit loss, whenwe ask you to attend trials and hearings;

e) the cost of bail bonds required of aninsured person because of an accidentarising out of the use of any vehicle towhich this policy applies, not to exceed$250 per bail bond, we are not obligated toapply for or furnish any such bond; or

f) any other reasonable expenses incurred byan insured person at our request.

2. Emergency First AidWe will pay expenses incurred by an insuredperson for first aid to other persons at the timeof an accident involving bodily injury coveredunder this policy.

3. Damage To Property Of OthersAt your request, we will pay up to $500 eachtime an insured person causes propertydamage to someone else's property. At ouroption, we will pay the cost to either repair orreplace the property damaged by an insuredperson, without deduction for depreciation.

We will not pay for property damage:a) to property covered under Section I of this

policy;b) to property intentionally damaged by an

insured person who has attained the ageof 13;

c) to property owned by, or rented to, aninsured person, any tenant of an insuredperson, or any resident in your household;or

d) arising out of:1) past or present business activities;2) any act or omission in connection with

a premises, other than an insuredpremises, owned, rented or controlledby an insured person; or

PROP *11000451310115P000682924*


Page 24

3) the ownership or use of a motorizedland vehicle, trailer, aircraft orwatercraft. This exclusion does notapply to a golf cart, snowmobile, orany motorized land vehicle designedprincipally for recreational use offpublic roads, not subject to motorvehicle registration and not owned byan insured person.

Losses We Do Not Cover Under Coverage Xand Y:

A. Losses We Do Not Cover Under Coverage X:1. We do not cover bodily injury to an insured

person or property damage to propertyowned by an insured person whenever anybenefit of this coverage would accruedirectly or indirectly to an insured person.

2. We do not cover any liability an insuredperson assumes arising out of any oralcontract or agreement or under anycontract or agreement in connection with abusiness activity.

3. We do not cover property damage toproperty rented to, occupied or used by, orin the care of, an insured person. Thisexclusion does not apply if the propertydamage is caused by fire, explosion,smoke or smudge.

4. We do not cover bodily injury consisting ofor caused by the transmission of anycommunicable disease by an insuredperson, including any resulting symptom,effect, condition, disease or illness relatedto the communicable disease.

B. Losses We Do Not Cover Under Coverage Y:1. We do not cover bodily injury to any

insured person or regular resident of theinsured premises. However, this exclusiondoes not apply to a residence employee.

C. Losses We Do Not Cover Under Coverage Xand Coverage Y:Coverage under Coverage X –Family LiabilityProtection will be excluded for bodily injury andproperty damage and coverage under CoverageY –Guest Medical Protection will be excludedfor bodily injury as follows:

1. We do not provide coverage for an insuredperson for intentional or criminal acts of, orat the direction of, an insured, if the lossthat occurs results in bodily injury orproperty damage and:a) may be reasonably expected to result


2. We do not cover bodily injury to any personeligible to receive benefits required to beprovided or voluntarily provided by aninsured person under any workers'compensation, non occupational disabilityor occupational disease law.

3. We do not cover bodily injury or propertydamage arising out of the ownership,maintenance, use, entrusting, loading orunloading of aircraft. An aircraft as used inthis provision does not include modelaircraft.

This provision does not apply to an insuredperson as a passenger on a commercialairline.

4. We do not cover bodily injury or propertydamage arising out of the ownership,maintenance, use, entrusting, loading orunloading of any motor vehicle or trailerthat is owned or operated by, rented orloaned to, any insured person.

Additionally we do not cover bodily injuryor property damage arising out of theownership, maintenance, use, entrusting,loading or unloading of any recreationalvehicle that is designed principally for


Page 25

recreational use off public roads, and isowned by any insured person, if bodilyinjury or property damage occurs awayfrom the residence premises.

However, this exclusion does not apply to:a) a motor vehicle in dead storage on an

insured premises;b) any motor vehicle designed principally

for recreational use off public roads,unless that vehicle is owned by anyinsured, if bodily injury or propertydamage occurs away from theresidence premises;

c) a motorized wheel chair;d) a vehicle used to service an insured

premises which is not designed foruse on public roads and not subject tomotor vehicle registration;

e) a golf cart owned by an insuredperson when used for golfingpurposes;

f) a trailer of the boat, camper, home orutility type unless it is being towed orcarried by a motorized land vehicle;

g) lawn or garden implements;h) bodily injury to a residence employee

arising out of and in the course ofemployment by any insured person.However, this provision does not applyto the operation or maintenance of anyaircraft by a residence employee.

5. We do not cover bodily injury or propertydamage arising out of the ownership,maintenance, use, entrusting, loading orunloading of watercraft that is owned by, orrented to, any insured person while thatwatercraft is away from an insuredpremises if the watercraft:a) has inboard or inboard outboard motor

power of more than 50 horsepower;b) is a sailing vessel 26 feet or more in

length; orc) is powered by one or more outboard

motors with more than 25 totalhorsepower.

This exclusion does not apply to (i) bodilyinjury or property damage occurring onthe residence premises or (ii) bodily injuryto any residence employee arising out ofand in the course of his employment by anyinsured person.

6. We do not cover bodily injury or propertydamage arising out of:a) the negligent supervision by an

insured person of any person; orb) any liability statutorily imposed on any

insured person

arising from the ownership, maintenance,use, entrusting, loading or unloading of anyaircraft, watercraft, motorized land vehicleor trailer which is not covered underSection II of this policy.

7. We do not cover bodily injury or propertydamage arising out of the rendering of, orfailure to render, professional services byan insured person.

8. We do not cover bodily injury or propertydamage arising out of business pursuits ofany insured person. This does not apply toactivities which are ordinarily incident tonon business pursuits. Coverage isprovided for incidental business activitiesof any insured person for baby sitting,caddying, lawn care, newspaper deliveryand other similar activities.

9. We do not cover bodily injury or propertydamage arising out of any premises, otherthan an insured premises, owned, rentedor controlled by an insured person. Thisexclusion does not apply to bodily injury toa residence employee.

10. We do not cover bodily injury or propertydamage caused by war or warlike acts,including, but not limited to, insurrection,rebellion or revolution.

PROP *11000451310115P000682925*


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Section II Conditions

1. What You Must Do After An Accidental LossIn the event of bodily injury or propertydamage, you must do the following:a) Promptly notify us or our agent stating:

1) your name and policy number;2) the date, the place and the

circumstances of the loss;3) the name and address of anyone who

might have a claim against an insuredperson;

4) the names and addresses of anywitnesses.

b) Promptly send us any legal papers relatingto the accident.

c) At our request, an insured person will:1) cooperate with us and assist us in any

matter concerning a claim or suit;2) help us enforce any right of recovery

against any person or organizationwho may be liable to an insuredperson;

3) attend any hearing or trial;4) help us by collecting and giving

evidence and by obtaining theattendance of witnesses.

d) Under the Damage To Property Of Othersprotection, give us a sworn statement ofthe loss. This must be made within 60 daysafter the date of loss. Also, an insuredperson must be prepared to show us anydamaged property under that person'scontrol.

The insured person, except at the insuredperson's own expense, will not voluntarily payany money, assume any obligations or incur anyexpense, other than for first aid to others at thetime of the loss as provided for in this policy.

2. What An Injured Person Must Do –Coverage Y–Guest Medical ProtectionIf someone is injured, that person, or someoneacting for that person, must do the following:a) promptly give us written proof of the loss. If

we request, this must be done under oath;

b) give us written authorization to obtaincopies of all medical records and reports;and

c) permit doctors we select to examine theinjured person as often as we mayreasonably require.

3. Our Payment Of Loss –Coverage Y –GuestMedical ProtectionWe may pay the injured person or the providerof the medical services. Payment under thiscoverage is not an admission of liability by us oran insured person.

4. Our Limits Of LiabilityRegardless of the number of insured persons,injured persons, claims, claimants or policiesinvolved, our total liability under Coverage X –Family Liability Protection for damagesresulting from one occurrence will not exceedthe Limit of Liability shown on the PolicyDeclarations. All bodily injury and propertydamage resulting from continuous or repeatedexposure to the same general conditions isconsidered the result of one occurrence.

Our total liability under Coverage Y –GuestMedical Protection for all medical expensespayable for bodily injury, to any one person,shall not exceed the " each person" limit shownon the Policy Declarations.

5. BankruptcyWe are not relieved of any obligation under thispolicy because of the bankruptcy or insolvencyof an insured person or insolvency of aninsured person's estate.

6. Our Rights To Recover Payment –Coverage X–Family Liability ProtectionWhen we pay any loss, an insured person'sright to recover from anyone else becomes oursup to the amount we have paid. An insuredperson must protect these rights and help usenforce them. An insured person may waive inwriting before a loss all rights of recoveryagainst any person. If not waived, we may


Page 27

require an assignment of rights of recovery for aloss to the extent that payment is made by us.

7. Action Against Usa) No one may bring an action against us in

any way related to the existence or amountof coverage, or the amount of loss forwhich coverage is sought, unless there hasbeen full compliance with all policy terms.

No one may bring an action against us inany way related to the existence or amountof coverage, or the amount of loss forwhich coverage is sought, under CoverageX –Family Liability Protection, unless theobligation of an insured person to pay hasbeen finally determined either by judgmentagainst the insured person after actualtrial, or by written agreement of theinsured person, injured person and us. Anyperson or organization or their legalrepresentative who has secured suchjudgment or written agreement shall beentitled to recovery, subject to the Limit ofLiability stated on the Policy Declarations.

b) No one shall have any right to make us aparty to an action to determine the liabilityof an insured person.

8. Other Insurance –Coverage X –FamilyLiability ProtectionIf both this and other insurance applies to acovered loss, we will pay the proportionateamount that this insurance bears to the totalamount of all applicable insurance.

However, this insurance is excess over anyother valid and collectible insurance available toyou with respect to bodily injury or propertydamage arising out of the ownership,maintenance, operation, use, loading orunloading of any motorized land vehicle orwatercraft to which this policy applies.

Section III – Optional Protection

Optional Coverages You May BuyThe following Optional Coverages may supplementcoverages found in Section I or Section II and applyonly when they are indicated on the PolicyDeclarations. The provisions of this policy apply toeach Optional Coverage in this section unlessmodified by the terms of the specific OptionalCoverage.

1. Coverage BCBuilding CodesWe will pay up to the amount of insuranceindicated for the Limit Of Liability shown on thePolicy Declarations under Coverage A –Dwelling Protection to comply with localbuilding codes after a covered loss to yourdwelling or when repair or replacement resultsin increased cost due to the enforcement of anybuilding codes, ordinances or laws regulatingthe construction, reconstruction, maintenance,repair or demolition of the dwelling.

2. Coverage BPIncreased Coverage On Business PropertyThe $200 limitation on business property usedin a business conducted at the residencepremises, under Coverage C –PersonalProperty Protection, is increased to the amountshown on the Policy Declarations. Thisincreased coverage includes property held assamples or for sale or delivery after sale, whilethe property is at the residence premises.

3. Coverage FFire Department ChargesThe $500 limit applying to the fire departmentservice charges under Additional Protection isincreased to the amount shown on the PolicyDeclarations.

4. Coverage GLoss AssessmentsIf your ownership of your dwelling requires thatyou be a member of, and subject to the rules of,an association governing areas held in commonby all building owners as members of theassociation, we will pay your share of any

PROP *11000451310115P000682926*


Page 28

special assessment charged against all buildingowners by the association up to the Limit ofLiability shown on the Policy Declarations, whenthe assessment is made as a result of:a) direct physical loss to the property held in

common by all building owners caused bya loss we cover under Section I of thispolicy; or

b) bodily injury or property damage coveredunder Section II of this policy.

However, this optional coverage shall apply onlyto special assessments made as a result ofcovered losses occurring while this optionalcoverage is in force.

Any reduction or elimination of payments forlosses because of any deductible applying to theinsurance coverage of the association ofbuilding owners collectively is not coveredunder this protection.

We will pay only when the assessment leviedagainst the insured person, as a result of anyone loss, for bodily injury or property damageexceeds $250 and then only for the amount ofsuch excess. This coverage is not subject to anydeductible applying to Section I of this policy.

In the event of an assessment, this coverage issubject to all the exclusions applicable toSections I and II of this policy and the Section Iand II Conditions, except as otherwise noted.

This coverage is excess over any insurancecollectible under any policy or policies coveringthe association of building owners.

5. Coverage JExtended Coverage On Jewelry, Watches andFursCoverage C –Personal Property Protection isextended to pay for direct physical loss to thefollowing property, subject to the provisions inthis coverage:a) jewelry, watches, gems, precious and

semi precious stones, gold, platinum; andb) furs, including any item containing fur

which represents its principal value.

The total amount of coverage and per item limitis shown on the Policy Declarations. Thisamount is not in addition to the amount ofinsurance applying to Coverage C –PersonalProperty Protection. However, in no event willcoverage be less than would have applied in theabsence of Coverage J.

We do not provide coverage for an insuredperson for intentional or criminal acts of, or atthe direction of, an insured person, if the lossthat occurs:a) may be reasonably expected to result from

such acts; orb) is the intended result of such acts.

This provision does not apply to an innocent coinsured having an interest in the coveredproperty.

In addition, we do not cover any loss caused byor consisting of:a) wear and tear, gradual deterioration,

inherent vice, insects or vermin;b) nuclear action, meaning nuclear reaction,

discharge, radiation or radioactivecontamination or any consequence of anyof these. Loss caused by nuclear action isnot considered loss by tire, explosion orsmoke.

We do cover direct physical loss by fire resultingfrom nuclear action.c) war or warlike acts, including, but not

limited to, insurrection, rebellion orrevolution.

d) failure by any insured person to take allreasonable steps to preserve propertyduring and after a loss or when theproperty is endangered by a cause of losswe cover.

Any deductible shown on the PolicyDeclarations applicable to Coverage C –Personal Property Protection, also appliesto a loss under this coverage.

6. Coverage KIncidental Office, Private School Or Studioa) The limits and exclusions applying to

property used or intended for use in a


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business under Coverage C –PersonalProperty Protection do not apply toequipment, supplies and furnishings usedin a described office, private school orstudio at your residence premises. Thisdoes not include electronic data processingequipment or the recording or storagemedia used with that equipment.

The Coverage K limits are shown on the PolicyDeclarations. The first limit applies to propertyused in a business conducted on the residencepremises. The second limit applies to businessproperty while away from the residencepremises. These limits are not in addition toCoverage C –Personal Property Protection,Limitations On Certain Personal Property onproperty used or intended for use in a business.The increased coverage does not includeproperty held for sample, sale or delivery aftersale.

b) Coverage X –Family Liability Protectionand Coverage Y –Guest MedicalProtection are extended to cover adescribed office, private school or studiooccupied by an insured person. Theoccupancy of the described property shallnot be considered a business.

We do not cover bodily injury to:a) any employee other than a residence

employee; orb) any person arising out of corporal

punishment administered by or at thedirection of an insured person.

7. Coverage MIncreased Coverage On MoneyThe limitation on money, bullion, platinum otherthan platinumware, bank notes, gold other thangoldware or gold plated ware, silver other thansilverware or silver plated ware, coins and othernumismatic property, under Coverage C –Personal Property Protection is increased tothe amount shown on the Policy Declarations.

8. Coverage PBusiness PursuitsCoverage X –Family Liability Protection andCoverage Y –Guest Medical Protection are

extended to cover specified business pursuits ofan insured person.

We do not cover:a) bodily injury or property damage arising

out of the business pursuits of an insuredperson when the business is owned orfinancially controlled by the insuredperson. This also means a partnership orjoint venture of which an insured person isa partner or member;

b) bodily injury or property damage arisingout of the rendering of or failure to render aprofessional service of any nature, otherthan teaching;

c) bodily injury to a fellow employee of aninsured person arising out of and in thecourse of employment;

d) bodily injury or property damage when aninsured person is a member of a teachingstaff or faculty of any school or college andthe bodily injury or property damagearises out of the maintenance or use ofsaddle animals, vehicles used with saddleanimals, motorized land vehicles,hovercrafts, aircraft or watercraft whenowned, hired or operated by an insuredperson or used for the purpose ofinstruction; or

e) bodily injury to any person arising out ofcorporal punishment administered by or atthe direction of an insured person when aninsured person is a member of theteaching staff or faculty of any school ofinstruction.

9. Coverage SIncreased Coverage On SecuritiesThe $1,000 limitation on accounts, bills, deeds,evidences of debt, letters of credit, notes otherthan bank notes, passports, securities, tickets,and stamps, including philatelic property,covered under Coverage C – Personal PropertyProtection, is increased to the amount shownon the Policy Declarations.

PROP *11000451310115P000682927*


Policy EndorsementThe following endorsement changes your policy. Please read this document carefully and keep it withyour policy.

This Endorsement Changes Your Policy — Keep It With Your Policy

Virginia Water Damage EndorsementCoverage SB — Sewer or Drain Back up — AP152

For an additional premium, and when Coverage SB — SEWER OR DRAIN BACK UP appears on your PolicyDeclarations in the section entitled "POLICY COVERAGES AND LIMITS OF LIABILITY ":

1. We will cover direct physical loss to covered property under Coverage A — Dwelling Protection ,Coverage B — Other Structures Protection and Coverage C — Personal Property Protection causedby water or any other substances which backs up through sewers or drains.

A deductible will apply to each covered sewer or drain water back up loss. The deductible amount will beshown on the Policy Declarations under the section entitled "LOSS DEDUCTIBLE(S) APPLICABLE. "

All other provisions of the policy apply.


Page 1

Policy EndorsementThe following endorsement changes your policy. Please read this document carefully and keep it with yourpolicy.

Extended ProtectionAmendatory Endorsement – APC356

I. In Section I – Your Property, Coverage C – Personal Property Protection is revised as follows:

A. In Property We Cover Under Coverage C, item 1. is replaced by the following:

1. Personal property owned or used by an insured person anywhere in the world. When personalproperty is located at a residence owned by you other than the residence premises, coverage islimited to 10% of Coverage C – Personal Property Protection. This limitation does not apply topersonal property in a newly acquired principal residence for the 30 days immediately after youbegin to move property there, personal property in use at a temporary residence when a directphysical loss we cover makes your residence premises uninhabitable, or to personal property instudent dormitory, fraternity or sorority housing.

B. The Limitations On Certain Personal Property provision is replaced by the following:

Limitations On Certain Personal Property:Limitations apply to the following groups of personal property. These limitations do not increase theamount of insurance under Coverage C – Personal Property Protection. The total amount of coveragefor each group in any one loss is as follows:1. $200 – Money, bullion, platinum other than platinumware, bank notes, gold other than

goldware or gold plated ware, silver other than silverware or silver plated ware, coinsand other numismatic property.

2. $200 – Business property while the business property is away from the residence premises.

3. $200 – Business property while the business property is at the residence premises.

4. $1,000 – Accounts, bills, deeds, evidences of debt, letters of credit, notes other than banknotes, passports, securities, tickets, and stamps, including philatelic propertyregardless of the media on which the material exists.

5. $1,000 – Manuscripts, including documents stored on electronic media.

6. $1,000 – Trailers not used with watercraft.

7. $2,000 – Watercraft, including their attached or unattached trailers, furnishings, equipment,and outboard motors.

8. $3,000 – Theft of firearms, their related equipment, and accessories.

9. $5,000 – Theft of jewelry, watches, necklaces, bracelets, gems, precious and semi precious

PROP *11000451310115P000682928*


Page 2

stones, and furs, including any item containing fur which represents its principalvalue, subject to a maximum amount of $1,500 per item.

II. In Section I – Your Property, Additional Protection is revised as follows:

A. Item 1. Additional Living Expense is replaced by the following:

1. Additional Living Expensea) We will pay the reasonable increase in living expenses necessary to maintain your normal

standard of living when a direct physical loss we cover under Coverage A – DwellingProtection, Coverage B – Other Structures Protection or Coverage C – Personal PropertyProtection makes your residence premises uninhabitable.

Payment for additional living expense as a result of a covered loss under Coverage A –Dwelling Protection, Coverage B – Other Structures Protection or Coverage C – PersonalProperty Protection will be limited to the least of the following:1) the time period required to repair or replace the property we cover, using due diligence

and dispatch; or2) if you permanently relocate, the shortest time for your household to settle elsewhere.

b) We will pay your lost fair rental income resulting from a covered loss, less charges andexpenses which do not continue, when a loss we cover makes the part of the residencepremises you rent to others, or hold for rental, uninhabitable. We will pay for lost fair rentalincome for the shortest time required to repair or replace the part rented or held for rental.

c) We will pay the reasonable and necessary increase in living expenses and the lost fair rentalincome for up to two weeks should civil authorities prohibit the use of the residence premisesdue to a loss at a neighboring premises caused by a loss we insure against.

These periods of time are not limited by the termination of this policy.

We do not cover any lost income or expense due to the cancellation of a lease or agreement.


B. Item 9. Power Interruption is replaced by the following:

9. Power InterruptionWe will pay for loss to the contents of freezers and refrigerated units on the residence premisescaused by the interruption of power which occurs off the residence premises. If a powerinterruption is known to an insured person, all reasonable means must be used to protect thecontents of freezers and refrigerated units.

This coverage does not increase the limit of liability applying to the damaged property.

III. Building Structure Replacement Cost Extended LimitsIn Section I – Conditions, item 5., How We Pay For A Loss, under c) Building Structure Replacement Costwe will replace item 3) if, at the time of the loss, you have met the following conditions:


Page 3

A. Insure your dwelling, attached structures and detached building structures to 100% of replacementcost as determined by our estimate completed and based on the accuracy of information you furnished;

B. Have accepted the Property Insurance Adjustment Condition, agree to accept each annual adjustmentin the Coverage A – Dwelling Protection limit of liability, and pay any additional premium charged; and

C. Notify us within 60 days of the start of any modifications that increase the aggregate value of yourdwelling, attached structures and detached building structures at the residence premises by $5,000or more, and pay any resulting additional premium due for the increase in value.

If, at the time of a covered loss, you meet all of the conditions in A., B., and C. above, then in Section I –Conditions, item 5., How We Pay For A Loss, under c) Building Structure Replacement Cost, item 3) isreplaced with:

3) 120% of the Limit Of Liability applicable to the building structure(s) as shown on the PolicyDeclarations for Coverage A – Dwelling Protection or Coverage B – Other Structures Protection,regardless of the number of building structures and structures other than building structures involvedin the loss.

If, at the time of a covered loss, you fail to meet any of the conditions in A., B., and C. above, then in SectionI – Conditions, item 5., How We Pay For A Loss, under c) Building Structure Replacement Cost, item 3)remains:

3) the Limit Of Liability applicable to the building structure(s) as shown on the Policy Declarations forCoverage A – Dwelling Protection or Coverage B – Other Structures Protection, regardless of thenumber of building structures and structures other than building structures involved in the loss.

IV. In Section II – Family Liability and Guest Medical Protection, under Additional Protection, item 3 isreplaced by the following:

3. Damage To Property Of OthersAt your request, we will pay up to $1,000 each time an insured person causes property damage tosomeone else's property. At our option, we will pay the cost to either repair or replace the propertydamaged by an insured person, without deduction for depreciation.

We will not pay for property damage:a) to property covered under Section I of this policy;b) to property intentionally damaged by an insured person who has attained the age of 13;c) to property owned by or rented to an insured person, any tenant of an insured person, or any

resident in your household; ord) arising out of:

1) past or present business activities;2) any act or omission in connection with a premises, other than an insured premises, owned,

rented or controlled by an insured person; or3) the ownership or use of a motorized land vehicle, trailer, aircraft or watercraft. This exclusion

does not apply to a golf cart, snowmobile, or any motorized land vehicle designed principallyfor recreational use off public roads, not subject to motor vehicle registration and not ownedby an insured person.

All other policy terms and conditions apply.

PROP *11000451310115P000682929*


Policy EndorsementThe following endorsement changes your policy. Please read this document carefully and keep it with yourpolicy.

Homeowners Amendatory Endorsement – Virginia – APC554

I. The General Section of your policy is amended as follows:

A. The Insuring Agreement is replaced with the following:

In reliance on the information you have given us, we agree to provide the coverages indicated on thePolicy Declarations. In return, you must pay the premium when due and comply with the policy termsand conditions.

Subject to the terms of this policy, the Policy Declarations shows the location of the residencepremises, applicable coverages, limits of liability and premiums. The policy applies only to losses oroccurrences that take place during the policy period. The policy period is shown on the PolicyDeclarations. This policy is not complete without the Policy Declarations.

This policy imposes joint obligations on the Named Insured(s) listed on the Policy Declarations as theinsured and on that person's resident spouse. These persons are defined as you or your . This meansthat the responsibilities, acts and omissions of a person defined as you or your will be binding uponany other person defined as you or your.

The terms of this policy impose joint obligations on persons defined as an insured person. This meansthat the responsibilities, acts and failures to act of a person defined as an insured person will bebinding upon another person defined as an insured person.

B. The Continued Coverage After Your Death section is replaced with the following:

If you die, coverage will continue for:1) your legal representative while acting as such, but only with respect to the premises and property

covered under this policy on the date of your death.2) An insured person, and any person having proper temporary custody of your property until a legal

representative is appointed and qualified.

All other policy terms and conditions apply.