House Construction Insurance Policy Wording House Construction Cover

your house construction policy

House Construction Insurance Policy wording house construction cover

In consideration of you agreeing to pay us the premium in the schedule, we agree to provide the insurance set out below.

headings

In this policy, headings are inserted for convenience and reference only and shall not affect the clause’s interpretation.

definitions

Wherever these words are used in the policy in a. Partial completion bold, this is what they mean. These definitions with respect to that portion only of the also apply to any derivatives of the words contract works: defined: • at the time a partial practical completion accidental: a happening or event which is certificate is issued; or unexpected and unintended from the insured’s point of view. • at the time that portion of the contract works is occupied, taken over or taken into actual value: the value calculated by deducting use by the purchaser, principal or authorised depreciation for age and use from the new replacement cost of insured property affected. person, bodily injury: whichever is the earlier; or a. accidental death of, or bodily injury to any b. Completion person (including sickness, disease, disability, • at the time a practical completion certificate shock, fright, mental anguish or mental injury); is issued; or b. false arrest or false imprisonment; malicious • at the time the contract works are prosecution or malicious humiliation; practically complete except for minor c. defamation, or publication in violation of any omissions and minor defects which do not individual’s right to privacy, except: prevent the contract works from being reasonably capable of being used for their i defamation where you know the statement intended purpose; or is false; • at the time the contract works are ii defamation or publication made in the occupied, taken over or taken into use by the course of, or relating to, advertising, purchaser, principal or authorised person broadcasting or telecasting activities conducted by you, or on your behalf; whichever is the earliest; or d. wrongful entry or eviction, or other invasion of c. Speculative project the right of private occupancy; with respect to any speculative project where there is no agreement to purchase, e. battery or assault not committed by, or at your at the time 95% of the project price has direction (unless committed for the purpose of been expended on the contract works and preventing or eliminating danger to persons or the contract works are made available for property). public viewing; or contract: the contract between the principal and d. Scheduled date the contractor to perform the contract works. on the finishing date shown in theschedule contract site: the location referred to in the This date may be extended beyond the contract at which the contract works are to be completed. date shown in the schedule for the express purpose of completing the contract works, contract works: the whole of the works, whether provided we agree in writing prior to the temporary or permanent, to be performed by finishing date, andyou agree to pay any you, as described in the contract, which is the additional premium required subject of this insurance, including all materials and items to be incorporated therein. whichever applies first. construction period: the period commencing on construction plant: tools, plant or equipment, the date shown in the schedule and finishing: site encampments or hoardings used for the purpose of carrying out the contract works, excluding any plant or equipment forming, or to form, a permanent part of the contract works. 1 your house construction policy

excess: the amount referred to in the schedule property damage: which we do not insure. a. accidental physical loss or accidental first insured: the first named person or entity physical damage to any tangible property, listed in the schedule as insured. including subsequent loss of use; and/or immediately arising: the event occurring b. accidental loss of use of tangible property immediately prior to the loss, and if there is which has not suffered physical loss or a chain of events, the last event occurring physical damage. immediately prior to the loss. proximately caused: the active and efficient insured property: the contract works; and any cause that sets in motion a train of events other property shown in the schedule once it which brings about the loss. becomes the responsibility of the contractor regions and districts: the area of land insured. in the regions and districts defined in the liable: legally liable according to the law of New Department of Survey and Land Information Zealand. Infomap 319B dated June 1994. loss: accidental physical loss or accidental schedule: the current Schedule to this policy physical damage. issued to you. maintenance period: the period commencing sum insured: the limit of our liability in New when any part of the contract works is put into Zealand dollars for each Item as stated in the service, taken over, occupied or issued with a schedule. certificate of partial or practical completion; and vehicle: any type of machine on wheels, or finishing: tracks, made or intended to be propelled by • at the end of the Maintenance or Defects its own power, or towed thereby. Liability Period referred to in the contract; or we; our; us; company: AMI Insurance (AMI), • at the end of the period shown in the a business division of IAG New Zealand schedule, Limited. whichever is the earlier. you; your; insured: the person(s) or entity(s) Defects Liability Period shall have the same named in the schedule: meaning. a. but only in their capacity as principal or natural disaster: earthquake shock, earthquake main contractor; and fire, tsunami, volcanic eruption, subterranean fire, b. only in their capacity as sub contractor, and hydrothermal activity. where shown in the schedule. occurrence: an event (including continuous or including: any director, employee or partner repeated exposure to conditions), or a series of there of, but only while acting within the events resulting from, or attributable to, one scope of their duties in that capacity, source or original cause. for their respective rights and interests. period of insurance: both the construction period and the maintenance period. section one: construction

insuring clauses Conditions of the contract, provided the loss is discovered during the maintenance period, 1 During the construction period and: We will indemnify you against loss to insured a. arises out of the contract works during the property occurring at the contract site during construction period; or the construction period. b. arises out of your operations whilst 2 During the maintenance period executing work under the Maintenance or Defects Liability Conditions of the contract; We will indemnify you during the maintenance or period for your legal liability to rectify loss to c. occurs to property forming part of the insured property under the Maintenance or contract works, which is incomplete, not Defects Liability built, or upon which work is being carried out for the purpose of completion following issuance of a partial or practical completion certificate.

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3 Additional items 2 We will indemnify you by: These Additional Items only apply if shown in the a. cash payment; or schedule. b. replacement; or Where there is a loss covered by 1 or 2 above, c. repair this policy is extended to indemnify costs and at our option. expenses necessarily incurred up to the sum insured for each of the following Item(s) shown 3 The excess shall be deducted from each in the schedule: adjusted loss for each event or series of losses from the same event. a. Principal’s Supplied Materials A series of losses arising from subsidence, being materials and items supplied by the erosion, flood, inundation, landslip, cyclone, principal to the contractor free of charge for storm, tempest,or earthquake during any inclusion in the contract works, provided they period of 72 consecutive hours will be treated were not in their final position when supplied. as one event for the purpose of applying the b. Removal of Debris excess. being all costs necessarily incurred to 4 The most we will pay: dismantle, demolish and remove the • for each Item is the sum insured plus GST; debris, and prepare the contract works for rectification of theloss. • under this policy is the TOTAL SUM INSURED shown in the schedule plus GST. c. Professional Fees being architects, surveyors, consulting engineers, clerk of works and other fees incurred by you which are necessary to exclusions rectify the loss (but excluding any fees for the This policy does not insure: preparation of a claim or estimate of fees). 1 a. loss proximately caused by: d. Increased Costs During Construction being the costs incurred for variations and i faulty or defective workmanship or fluctuations in thecontract price, and/or material; or increases in the costs of labour and materials ii wear and tear, corrosion, erosion, or the during the construction period. action of normal atmospheric conditions; e. Escalation During Reconstruction b. loss to mechanical or electrical items being the actual amount by which the costs of incorporated in the contract works reconstruction of the contract works exceed proximately caused by their operation, the initial costs, provided that reconstruction is or mechanical or electrical failure, completed without delay. derangement, breakdown, or pressure explosion; c. mechanical or electrical failure, derangement basis of settlement or breakdown of construction plant; d. loss which is a gradual deterioration of the 1 In the event of loss, the basis of settlement shall be: insured property, or any part of it; a. where the insured damage can be repaired,the These exclusion(s) (a)-(d) shall be limited to the: cost of repairs necessary to restore the insured • item of construction plant; or property to its condition immediately before • part of the structure or contract works the loss; directly affected, and shall not extend to other Where the cost of repair equals or exceeds insured property which is affected as a result, the actual value immediately before the loss (if any). of the insured property affected, settlement 2 loss proximately caused by fault, defect, shall be made on the basis provided for in b. or omission in design, plan, specification, b. where the insured damage is not repairable, sequence, procedure or programme. the actual value immediately before the loss 3 loss immediately arising from total or partial of the insured property; cessation of the contract works. to the extent that: 4 loss arising out of or resulting from rot, mould, i the loss claimed had to be borne by you; mildew, fungi or the action of micro organisms. and ii the loss is in respect of insured property included in the calculation of the sum(s) insured.

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5 loss of files, deeds, evidence of debt, bonds, bills C Transit of exchange, promissory notes, cash, bank notes, cheques, securities or money, stamps, account or Where shown in the schedule, this section computer records. of the policy is extended to include loss of insured property during: 6 disappearance or shortage of insured property where that loss is revealed only by the taking of • storage at a place other than the contract an inventory or stocktaking. site; and 7 consequential economic loss of any kind or • transit within New Zealand by road, rail, description, including (without limitation) airfreight, inter-island ferry, or containerised penalties for non-completion or delay in shipping between New Zealand ports. completion or non-compliance with contract conditions. Exclusion 11 is modified accordingly. 8 loss to any structure or property already at the D Natural Disaster contract site before commencement of the contract works. Where shown in the schedule, this section of 9 loss to: the policy is extended to include loss caused by earthquake, but excluding any damage for a. any vehicle; or which compensation is payable under any Act b. construction plant; or of Parliament. c. tyres or tracks, unless as a result of other insured loss to a vehicle/mobile plant; or General Exclusion 3 shall not apply.

any aircraft, waterborne vessel or craft; or d. For the purpose of this Extension only: e. employees’ personal effects or hand tools. Excess 10 extra charges for overtime, night work, work on In respect of each location at which a loss public holidays, express delivery or airfreight, occurs, the excess for each Area, shall be unless such charges are reasonable, and incurred deducted from each adjusted loss: solely for the purpose of minimising further loss to the insured property following an insured Area (a) loss. The regions of Northland, Auckland, Waikato, 11 loss to insured property during transit not on Otago and Southland and the districts of the contract site. Timaru and Waimate. Area (b) The regions of Bay of Plenty, Gisborne, optional extensions Hawkes Bay, Taranaki, Manawatu, Wanganui, Tasman, West Coast and Canterbury excluding NOTE: A Overtime & express delivery the districts of Timaru and Waimate. These extensions Where shown in the schedule, this section of must be selected by Area (c) the policy is extended to cover the additional you and shown in The regions of Wellington, Nelson and costs incurred in rectifying the loss in the most the schedule of the Marlborough. policy. They are not expeditious time, including: automatic. • the cost of penal rates of pay; and This section only applies if shown in • express delivery and airfreight within New the schedule. Zealand Provided, however, we will not pay more than 30% of ordinary labour, road carriage charges or ordinary costs.

Exclusion 10 is modified accordingly.

B Overseas airfreight expenses Where shown in the schedule, this policy is extended to include the cost of airfreight charges necessarily and reasonably incurred in rectifying the loss, provided that the airfreight carriage is by a recognised regular scheduled airline service and not carriage by an aircraft chartered for that purpose. Exclusion 10 is modified accordingly.

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section two: public liability

insuring clauses

A Public Liability • this extension does not apply to liability in connection with seepage, pollution or We will indemnify you for all sums you become contamination of any kind; and liable to pay arising from: • this extension does not apply to liability a. bodily injury; and / or arising from any premises owned, or leased b. property damage to another party, by you in those countries; happening during the period of insurance and resulting from an occurrence in New Zealand in • Defence Costs are deemed to be included connection with the contract works. within the sum insured referred to in LIMITS OF INDEMNITY and not in addition to it. Employees’ Vehicles Extension For the purpose of this extension only, the Exclusion 4 a. does not apply to liability for definition of liable is extended to the legal property damage to any motor vehicle or motor liability according to the law of the country or cycle belonging to, or in the charge of, or under state where the occurrence takes place. the control of, any of your employees or agents in a private capacity (and not owned by you, or Mechanical Plant and Cranes Extension any member of your family ordinarily living with you). Section Two is extended to include liability resulting from the use by you of mechanical Carparks Extension plant or machinery, including cranes and mobile cranes, but only whilst on, or adjacent to, the Exclusion 3 a. ii does not apply to liability for contract site. property damage to property in any car park operated by you for the contract works. Exclusion 4 a. is modified accordingly

Overseas Visits Extension Removal of Support Extension Section Two is extended to indemnify you Section Two includes liability arising from: for all sums you become liable to pay arising a. bodily injury; and / or from bodily injury and/or property damage which happens during the period of insurance b. property damage provided that: happening during the period of insurance a. it results from an occurrence anywhere in the resulting from an occurrence at the contract world in connection with any business trip by site in connection with: you solely in connection with the contract • vibration of; or works; and • removal or weakening of; or b. you are a New Zealand Resident and normally • interference with the support live in New Zealand at the time of the of land or buildings which are not part of the occurrence; and insured property. c. the indemnity under this extension does not The indemnity provided by this clause shall not extend to liability in connection with the exceed in the aggregate during the period of actual carrying out of any tangible part of insurance $250,000, unless a different amount the contract works or you engaging in any is shown in the schedule for this extension. physical or manual work; and An excess of $5,000 shall apply for each d. with respect to occurrences in the United occurrence, unless a different amount is shown States of America and Canada (including in the schedule for this extension. their dependencies, mandated territories and protectorates): Exclusion 4 e. does not apply to this extension.

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Forest and Rural Fires Act Extension An excess of $1,000 shall apply for each occurrence unless a different amount is We will indemnify you for: shown in the schedule for this extension. a. levies imposed by a fire authority under the Forest and Rural Fires Act 1977 and Exclusion 4 d. does not apply to this apportioned to you, (but excluding levies extension. under Section 45); and b. liability for costs and losses recoverable under section 43 of the Forest and Rural Fires Act limits of indemnity 1977. Provided that: 1 Limits • the costs are in connection with a fire, or threat of fire, that occurs during the period Unless otherwise stated in the extension: of insurance, and a. The maximum indemnity payable by us • the costs and losses result from an for each occurrence during the period of occurrence in New Zealand. insurance shall not exceed the limit shown in the schedule for each extension; Provided however that the indemnity provided by this extension shall not exceed for each b. Defence Costs shall be paid in addition to occurrence $250,000 unless a different amount the limit set out in a. above; is shown in the schedule for this extension, c. The excess shown in the schedule shall which ever is the greater. be deducted from the amount payable for This extension is deemed to apply whether each occurrence. property damage has occurred or not, and exclusion 8 shall not apply to this extension. 2 Discharge of Liability We may at any time elect to pay you the sum B Defence Costs insured applicable under this section of the We will indemnify you for all legal costs and policy, or any lesser sum for which the claim expenses reasonably and properly incurred in against you can be settled, and upon payment defending any legal action against you arising we shall be under no further liability to you out of bodily injury or property damage under this policy except for Defence Costs indemnifiable under this section of the policy, already incurred up until the time of payment. even if the legal action appears groundless. 3 Cross Liability optional extension This section insures all insureds separately. NOTE: PROVIDED that our liability shall not exceed This extension must be the limit shown in the schedule in respect selected by you and Defective Design shown in the schedule of of the aggregate of all sums for which all the policy. Where shown in the schedule, we will indemnify insureds are liable. It is not automatic. you for all sums you become liable to pay arising from: This section only applies if shown in the schedule. a. bodily injury; and/or exclusions b. property damage There is no indemnity under this section of the happening during the period of insurance policy: resulting from an occurrence in New Zealand in connection with any defective: 1 For liability created by an express term of a contract, where that liability exceeds what: i design; or a. The common law; and ii formula; or b. The statue law, iii specification; or imposes on contracting parties in those iv plan; or circumstances. This exclusion does not apply v pattern to liability arising out of the use of property prepared by you for the contract works. under an agreement entered into by the insured for the hire, lease, or rental of any The indemnity provided by this extension shall property to the insured. not exceed in the aggregate during the period of insurance $250,000. Defence Costs are included Provided that this exception to this exclusion 1 in this figure and are not in addition to it. does not apply to liability: i for property damage to any of the property the subject of the agreement;

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ii arising from any provision in the agreement ii work undertaken by you to any aircraft, or for the insured to arrange insurance over the thing made or intended to travel through air property which is the subject of the contract. or space; 2 For liability arising from bodily injury to any d. i any defective: person: • design; or a. arising out of, and in the course of, • formula; or employment of that person by you; or • specification; or b. who is a member of your family ordinarily • plan; or residing with you; • pattern 3 For liability arising from property damage: prepared by you; a. to property: ii the giving of advice; or the administering i belonging to; or of medical treatment by you or anyone on • held under a hire purchase agreement by; your behalf. or PROVIDED this exclusion 4 d. ii shall not • held under a conditional purchase apply to any of your employees acting in agreement by; or the capacity of an industrial nurse; • hired by; or e. vibration of; or removal or weakening of; • leased by; or or interference with the support of land or • rented by; or buildings; ii lent to; or 5 For liability proximately caused by : • in the possession or control of a. seepage, pollution, or contamination, (including the cost of removing, nullifying or you or any member of your family ordinarily cleaning up). residing with you; Unless the seepage, pollution or b. to that part of any property on which you contamination occurs during the period are, or have been, working, if the property of insurance and is caused by a sudden, damage is caused directly by the work done unintended and unexpected occurrence to that part. However, this exclusion 3 b. does during the same period of insurance, not apply to property damage to any other separate and identifiable components of that b. mining, processing, transporting, property not worked on; distributing or storing asbestos; c. to any part of property insured under Section c. manufacturing or processing materials One of this policy. containing asbestos; 4 For liability in connection with: d. any process of decontamination, treatment or control of asbestos; a. the ownership, possession or use by you, or on your behalf, of any vehicle. e. the presence of asbestos in any building or structure; PROVIDED this exclusion 4 a. shall not apply to the loading and unloading of a vehicle, and f. asbestos pollution or contamination the bringing to and taking away of a load from (notwithstanding the proviso to 5 a. a vehicle at the contract site; above); b. i the ownership, possession or use by you, or 6 For liability determined by a judgement on your behalf, of any watercraft, or thing (including the costs and expenses arising out made or intended to float or travel on water; of the litigation leading to the judgement) of any court other than a New Zealand Court, ii work undertaken by you to any watercraft, unless that judgement is enforceable by a New or thing made or intended to float or travel on Zealand Court; water; 7 For liability in respect of any fine or penalty c. i the ownership, possession or use by you, or imposed on you, or any punitive or exemplary on your behalf, of any aircraft, or thing made damages awarded against you. or intended to travel through air or space; 8 For liability arising under the Forest and Rural Fires Act 1977.

7 your house construction policy general exclusions applicable to all parts of the policy

A This policy does not indemnify: government(s), which from its nature or 1 loss or liability directly or indirectly caused by or context is done for, or in connection with, in connection with war, invasion, act of foreign political, religious, ideological, ethnic or similar enemy, hostilities (whether war is declared or purposes or reasons, including the intention to not), civil war, rebellion, revolution, insurrection influence any government and/or to put the or military or usurped power, confiscation, public, or any section of the public, in fear. nationalisation, requisition or destruction by or C Electronic Data Exclusion under the order of any Government or Public Notwithstanding any provision in the policy Authority. to the contrary, the policy excludes loss 2 loss or liability proximately caused by or of or damage to Electronic Data, and any immediately arising from ionising radiation or liability arising from this, directly or indirectly contamination by radioactivity. caused by, or in connection with a Computer 3 loss or liability proximately caused by Natural Virus. This includes loss of use, reduction in Disaster. functionality or any other associated loss or expense in connection with the Electronic 4 loss, damage, liability, prosecution or expense of Data. any type connected in any way with an internal part of a building or structure being wet, damp However, this exclusion does not apply to or moist that is caused directly or indirectly by: resultant physical damage to other insured property, which is not otherwise excluded. a. faulty design or faulty specification, including faulty sequence, procedure or programme, or “Electronic data” means facts, concepts and information converted to a form useable for b. faulty materials, or communications interpretation or processing c. faulty workmanship by electronic and electromechanical data when it was constructed or altered. processing or electronically controlled equipment. It includes programs, software and B Terrorism Exclusion other coded instructions for the processing Notwithstanding any provision in the policy to and manipulation of data or the direction and the contrary, the policy excludes death, injury, manipulation of such equipment. illness, loss, damage, cost, expenses or liability, “Computer Virus” means a set of corrupting, of any nature whatsoever, directly or indirectly harmful or otherwise unauthorised instructions caused by, or in connection with an Act of or code including a set of maliciously Terrorism. introduced unauthorised instructions or code, “Act of Terrorism” means: an act, including but programmatic or otherwise, which propagate not limited to the use of force or violence and/ themselves through a computer system or or threat thereof, of any person or group(s) of network of whatsoever nature. This includes persons, whether acting alone or on behalf of but is not limited to “Trojan Horses”, “Worms” or in connection with any organisation(s) or and “Time or Logic Bombs”. claim conditions applicable to all parts of the policy

Notification c. take prompt steps to minimise any liability, and avoid any further liability; If you suffer any loss likely to give rise to a claim 1 under this policy, or if you become aware of any d. if criminal offending is suspected, lay a potential liability likely to give rise to a claim complaint with the police; under this policy; e. take reasonable steps to obtain details You shall at your expense: of any other person, property or vehicle involved, and any witnesses; a. immediately notify us by fax or by telephone or via AMI Insurance; b. take prompt steps to minimise the loss, and avoid any further loss;

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You shall not: invoices, receipts, breakdown of costings f. dispose of any insured property which is and other documentation supporting intended to be the subject of a claim; amounts expended, or indicating that repairs have been effected or replacement g. admit responsibility for any liability or do or has taken place. say anything which may prejudice our ability to defend a claim against you or pursue g. if requested by us; recovery under subrogation. • provide a statutory declaration to verify the loss or liability; 2 Repairs • submit to cross-examination under oath You may proceed with repairs, without prejudice by any person we nominate. to our liability under the policy, if 1 a. and b. above are complied with. 4 Control of Claim After we have accepted a claim, we have the 3 How to claim sole right, at our expense, to act in your name If you wish to make a claim under this policy, you and on your behalf to negotiate, defend or shall: settle, as we see fit, anyliability you are facing. a. complete in full our Claim Form as soon as 5 Subrogation practicable after the loss; b. provide free access to examine and assess any After we have accepted a claim either in whole loss or liability; or in part, we shall be fully subrogated to your position and shall be able to exercise for our c. authorise the disclosure of your personal own benefit any legal right of recovery held by information held by other parties relating to you. You shall, at our expense, fully the claim; co-operate in the enforcement of this right by d. preserve the parts affected and make them the company. available for inspection by us; You shall not release any third party from e. forward any letter of demand or court liability that could arise from loss covered by documents to us immediately; this policy, unless agreed to by us. f. provide any other information or assistance Disputes we reasonably require to process the claim; 6 We will not be liable to make any payment The law of New Zealand shall apply to any under this policy unless you have produced dispute about this policy and the New Zealand to our reasonable satisfaction all accounts, Courts shall have exclusive jurisdiction.

general conditions applicable to all parts of the policy

1 One Contract c. if the policy covers the interests of any This policy wording and the schedule and any person other than the insured, that person endorsements shall be read together as one also complies with the same terms and contract. The Application and other information conditions of the policy where applicable. submitted shall be incorporated in the contract. 3 Insurance Law Reform Acts 2 Observance The conditions and exclusions in this policy are It shall be a condition precedent to our liability subject to your rights set out in the Insurance under this policy that: Law Reform Acts. a. you have complied with all the terms of the 4 Change in Circumstance policy; and b. the statements and answers in the: a. You shall give immediate written notice to us of any change in circumstance since i Application; and inception of the policy which materially ii any Claim Form; and increases the risk of a claim. iii any notice of change in circumstance or given separately in support of any of them (whether by any one of the insured or any other person), are true and correct; and

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We shall then be entitled to adjust the b. If 7 a. above is not complied with and any premium and/or the terms of this policy with values or sums insured, are understated, immediate effect. Average shall apply and the claim payment b. If you fail to comply with this obligation, this for a partial loss shall reduce by the same policy shall be voidable at our option from the percentage which the amount of any date you knew, or ought to have known, of understatement bears to that which should the change in circumstance. have been stated.

5 Other Insurance 8 Precautions At the time of loss you shall immediately give You shall at your own expense: notice to us of any other policy of insurance a. comply with all reasonable directions of covering the same insured property or liability, the company to prevent loss, where any whether arranged by you or not. deficiency, defect or danger is identified by If, at the time any claim arises under this policy, us; there is any other insurance covering you for the b. comply with the contract conditions and same risks, we shall only pay over and above the specifications as they relate to methods, sum payable under that other insurance. procedures, systems or sequences of work. 6 Interested Parties 9 Reasonable care Unless stated otherwise, any party whose interest You (and your employees) shall at your in the insured property is noted by us shall not own expense take all reasonable precautions be an insured under this policy. to prevent loss, bodily injury or property If we receive written advice of any mortgage or damage. security over any insured property under this policy, we may, at our option, pay part or all of any claim to that party up to the limit of its loss. 10 Reinstatement of Sum Insured Any such payment shall, to that extent, discharge When we pay for a loss, the sum insured is our obligations under the policy. reduced by that amount. The insured authorises disclosure of information We will add that amount back onto the sum about this policy to any party whose interest is insured to give you the full sum insured noted by the company. again after the loss, provided you agree to pay the additional premium required. 7 Your Obligations Acts of Parliament a. You must: 11 i insure the contract works for its full value, Where this policy refers to an Act of inclusive of all items and materials for their Parliament, this includes any Regulations new replacement value including freight, made under it. It also includes any Act or customs duties (excluding GST); wages; Regulations enacted in substitution. and subcontractor’s work. 12 Multiple Insureds ii declare in the Application the value of principal‘s supplied materials which form Where the insured consists of more than one part of the project that have not been person or entity, we shall: included in the contract works price; a. send all notices to the last known address The value declared for this Item shall be the of, the broker / agent of; and new replacement value of all the materials b. negotiate all claim settlements with; and and items supplied. c. pay all claim proceeds to; iii declare in the Application whether cover the first insured. for the anticipated inflationary effect on the cost of the contract works during the period of this insurance is required;

10 Duty of Disclosure • any insurance claim you have made in the past. When you apply for insurance you must tell us Examples of information you do not need to all information you know (or could reasonably disclose include: be expected to know) which would influence the • anything you have already told us, or that we judgement of a prudent underwriter: should be expected to know in the ordinary • whether or not to accept your application, course of our business; and • anything we say you do not need to tell us; • if it is accepted, on what terms, and at what • anything that is common knowledge; cost. • anything that reduces the risk of a claim. You also have this duty each time your insurance renews, and whenever you make any change to it. These examples are intended as a guide only. If you are not sure whether you need to disclose a Examples of information you may need to disclose particular piece of information, please ask. include: • any changes in circumstances which increases If you fail to meet your duty of disclosure, the the risk of a claim; consequences can be serious. You may find that • any criminal offence or traffic offence; you never had any insurance cover at all. • any cancellation, refusal to renew insurance, or When in doubt – disclose. Please remember that imposing of special terms by another insurance all information will be treated confidentially. company;

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