Homeowners 3 – Special Form

HOMEOWNERS HO 00 03 10 00 HOMEOWNERS 3 – SPECIAL FORM

AGREEMENT 2. "Bodily injury" means bodily harm, sickness or We will provide the insurance described in this policy disease, including required care, loss of serv- in return for the premium and compliance with all ices and death that results. applicable provisions of this policy. 3. "Business" means: a. A trade, profession or occupation engaged DEFINITIONS in on a full-time, part-time or occasional basis; or A. In this policy, "you" and "your" refer to the "named insured" shown in the Declarations and the spouse b. Any other activity engaged in for money or if a resident of the same household. "We", "us" other compensation, except the following: and "our" refer to the Company providing this in- (1) One or more activities, not described in surance. (2) through (4) below, for which no "in- B. In addition, certain words and phrases are defined sured" receives more than $2,000 in as follows: total compensation for the 12 months before the beginning of the policy pe- 1. "Aircraft Liability", "Hovercraft Liability", "Motor riod; Vehicle Liability" and "Watercraft Liability", subject to the provisions in b. below, mean the (2) Volunteer activities for which no money following: is received other than payment for expenses incurred to perform the activity; a. Liability for "bodily injury" or "property damage" arising out of the: (3) Providing home day care services for which no compensation is received, (1) Ownership of such vehicle or craft by an other than the mutual exchange of such "insured"; services; or (2) Maintenance, occupancy, operation, (4) The rendering of home day care serv- use, loading or unloading of such vehi- ices to a relative of an "insured". cle or craft by any person; 4. "Employee" means an employee of an "in- (3) Entrustment of such vehicle or craft by sured", or an employee leased to an "insured" an "insured" to any person; by a labor leasing firm under an agreement (4) Failure to supervise or negligent super- between an "insured" and the labor leasing vision of any person involving such ve- firm, whose duties are other than those per- hicle or craft by an "insured"; or formed by a "residence employee". (5) Vicarious liability, whether or not im- 5. "Insured" means: posed by law, for the actions of a child a. You and residents of your household who or minor involving such vehicle or craft. are: b. For the purpose of this definition: (1) Your relatives; or (1) Aircraft means any contrivance SAMPLEused or (2) Other persons under the age of 21 and designed for flight except model or in the care of any person named above; hobby aircraft not used or designed to carry people or cargo; b. A student enrolled in school full time, as defined by the school, who was a resident (2) Hovercraft means a self-propelled mo- of your household before moving out to at- torized ground effect vehicle and in- tend school, provided the student is under cludes, but is not limited to, flarecraft the age of: and air cushion vehicles; (1) 24 and your relative; or (3) Watercraft means a craft principally designed to be propelled on or in water (2) 21 and in your care or the care of a by wind, engine power or electric motor; person described in a.(1) above; or and (4) Motor vehicle means a "motor vehicle" as defined in 7. below.

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 1 of 22 c. Under Section II: h. Any part of a premises occasionally rented (1) With respect to animals or watercraft to to an "insured" for other than "business" which this policy applies, any person or use. organization legally responsible for 7. "Motor vehicle" means: these animals or watercraft which are a. A self-propelled land or amphibious vehicle; owned by you or any person included in or a. or b. above. "Insured" does not mean a person or organization using or having b. Any trailer or semitrailer which is being custody of these animals or watercraft in carried on, towed by or hitched for towing the course of any "business" or without by a vehicle described in a. above. consent of the owner; or 8. "Occurrence" means an accident, including (2) With respect to a "motor vehicle" to continuous or repeated exposure to substan- which this policy applies: tially the same general harmful conditions, which results, during the policy period, in: (a) Persons while engaged in your em- ploy or that of any person included in a. "Bodily injury"; or a. or b. above; or b. "Property damage". (b) Other persons using the vehicle on 9. "Property damage" means physical injury to, an "insured location" with your con- destruction of, or loss of use of tangible prop- sent. erty. Under both Sections I and II, when the word an 10. "Residence employee" means: immediately precedes the word "insured", the a. An employee of an "insured", or an em- words an "insured" together mean one or more ployee leased to an "insured" by a labor "insureds". leasing firm, under an agreement between 6. "Insured location" means: an "insured" and the labor leasing firm, a. The "residence premises"; whose duties are related to the maintenance or use of the "residence premises", b. The part of other premises, other structures including household or domestic services; and grounds used by you as a residence; or and b. One who performs similar duties elsewhere (1) Which is shown in the Declarations; or not related to the "business" of an "in- (2) Which is acquired by you during the sured". policy period for your use as a resi- A "residence employee" does not include a dence; temporary employee who is furnished to an c. Any premises used by you in connection "insured" to substitute for a permanent "resi- with a premises described in a. and b. dence employee" on leave or to meet seasonal above; or short-term workload conditions. d. Any part of a premises: 11. "Residence premises" means: (1) Not owned by an "insured"; and a. The one family dwelling where you reside; (2) Where an "insured" is temporarily re- b. The two, three or four family dwelling where siding; you reside in at least one of the family units; e. Vacant land, other than farm land,SAMPLE owned or by or rented to an "insured"; c. That part of any other building where you f. Land owned by or rented to an "insured" on reside; which a one, two, three or four family and which is shown as the "residence prem- dwelling is being built as a residence for an ises" in the Declarations. "insured"; "Residence premises" also includes other g. Individual or family cemetery plots or burial structures and grounds at that location. vaults of an "insured"; or

Page 2 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 DEDUCTIBLE C. Coverage C – Personal Property Unless otherwise noted in this policy, the following 1. Covered Property deductible provision applies: We cover personal property owned or used by Subject to the policy limits that apply, we will pay only an "insured" while it is anywhere in the world. that part of the total of all loss payable under Section I After a loss and at your request, we will cover that exceeds the deductible amount shown in the personal property owned by: Declarations. a. Others while the property is on the part of the "residence premises" occupied by an SECTION I – PROPERTY COVERAGES "insured"; or A. Coverage A – Dwelling b. A guest or a "residence employee", while the property is in any residence occupied by 1. We cover: an "insured". a. The dwelling on the "residence premises" 2. Limit For Property At Other Residences shown in the Declarations, including structures attached to the dwelling; and Our limit of liability for personal property usually located at an "insured's" residence, other than b. Materials and supplies located on or next to the "residence premises", is 10% of the limit of the "residence premises" used to construct, liability for Coverage C, or $1,000, whichever is alter or repair the dwelling or other struc- greater. However, this limitation does not apply tures on the "residence premises". to personal property: 2. We do not cover land, including land on which a. Moved from the "residence premises" be- the dwelling is located. cause it is being repaired, renovated or re- B. Coverage B – Other Structures built and is not fit to live in or store property 1. We cover other structures on the "residence in; or premises" set apart from the dwelling by clear b. In a newly acquired principal residence for space. This includes structures connected to 30 days from the time you begin to move the dwelling by only a fence, utility line, or the property there. similar connection. 3. Special Limits Of Liability 2. We do not cover: The special limit for each category shown be- a. Land, including land on which the other low is the total limit for each loss for all prop- structures are located; erty in that category. These special limits do b. Other structures rented or held for rental to not increase the Coverage C limit of liability. any person not a tenant of the dwelling, a. $200 on money, bank notes, bullion, gold unless used solely as a private garage; other than goldware, silver other than sil- c. Other structures from which any "business" verware, platinum other than platinumware, is conducted; or coins, medals, scrip, stored value cards and smart cards. d. Other structures used to store "business" property. However, we do cover a structure b. $1,500 on securities, accounts, deeds, that contains "business" property solely evidences of debt, letters of credit, notes owned by an "insured" or a tenant of the other than bank notes, manuscripts, per- dwelling provided that "business" property sonal records, passports, tickets and SAMPLEstamps. This dollar limit applies to these does not include gaseous or liquid fuel, other than fuel in a permanently installed categories regardless of the medium (such fuel tank of a vehicle or craft parked or as paper or computer software) on which stored in the structure. the material exists. 3. The limit of liability for this coverage will not be This limit includes the cost to research, re- more than 10% of the limit of liability that ap- place or restore the information from the plies to Coverage A. Use of this coverage does lost or damaged material. not reduce the Coverage A limit of liability.

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 3 of 22 c. $1,500 on watercraft of all types, including b. Animals, birds or fish; their trailers, furnishings, equipment and c. "Motor vehicles". outboard engines or motors. (1) This includes: d. $1,500 on trailers or semitrailers not used with watercraft of all types. (a) Their accessories, equipment and parts; or e. $1,500 for loss by theft of jewelry, watches, furs, precious and semiprecious stones. (b) Electronic apparatus and accessories designed to be operated solely f. $2,500 for loss by theft of firearms and by power from the electrical system related equipment. of the "motor vehicle". Accessories g. $2,500 for loss by theft of silverware, silver- include antennas, tapes, wires, rec- plated ware, goldware, gold-plated ware, ords, discs or other media that can platinumware, platinum-plated ware and be used with any apparatus de- pewterware. This includes flatware, hollow- scribed above. ware, tea sets, trays and trophies made of The exclusion of property described in or including silver, gold or pewter. (a) and (b) above applies only while h. $2,500 on property, on the "residence such property is in or upon the "motor premises", used primarily for "business" vehicle". purposes. (2) We do cover "motor vehicles" not re- i. $500 on property, away from the "residence quired to be registered for use on public premises", used primarily for "business" roads or property which are: purposes. However, this limit does not ap- (a) Used solely to service an "insured's" ply to loss to electronic apparatus and other residence; or property described in Categories j. and k. below. (b) Designed to assist the handicapped; j. $1,500 on electronic apparatus and acces- d. Aircraft meaning any contrivance used or sories, while in or upon a "motor vehicle", designed for flight including any parts but only if the apparatus is equipped to be whether or not attached to the aircraft. operated by power from the "motor vehi- We do cover model or hobby aircraft not cle's" electrical system while still capable of used or designed to carry people or cargo; being operated by other power sources. e. Hovercraft and parts. Hovercraft means a Accessories include antennas, tapes, wires, self-propelled motorized ground effect vehi- records, discs or other media that can be cle and includes, but is not limited to, flare- used with any apparatus described in this craft and air cushion vehicles; Category j. f. Property of roomers, boarders and other k. $1,500 on electronic apparatus and acces- tenants, except property of roomers and sories used primarily for "business" while boarders related to an "insured"; away from the "residence premises" and g. Property in an apartment regularly rented or not in or upon a "motor vehicle". The appa- held for rental to others by an "insured", ex- ratus must be equipped to be operated by cept as provided in E.10. Landlord's Fur- power from the "motor vehicle's" electrical nishings under Section I – Property Cover- system while still capable of being operated ages; by other power sources. SAMPLE h. Property rented or held for rental to others Accessories include antennas, tapes, wires, off the "residence premises"; records, discs or other media that can be used with any apparatus described in this i. "Business" data, including such data stored Category k. in: 4. Property Not Covered (1) Books of account, drawings or other paper records; or We do not cover: (2) Computers and related equipment. a. Articles separately described and specifically insured, regardless of the limit for We do cover the cost of blank recording or which they are insured, in this or other in- storage media, and of prerecorded com- surance; puter programs available on the retail mar- ket;

Page 4 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 j. Credit cards, electronic fund transfer cards E. Additional Coverages or access devices used solely for deposit, 1. Debris Removal withdrawal or transfer of funds except as provided in E.6. Credit Card, Electronic a. We will pay your reasonable expense for Fund Transfer Card Or Access Device, the removal of: Forgery And Counterfeit Money under Sec- (1) Debris of covered property if a Peril tion I – Property Coverages; or Insured Against that applies to the dam- k. Water or steam. aged property causes the loss; or D. Coverage D – Loss Of Use (2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a The limit of liability for Coverage D is the total limit building or property contained in a for the coverages in 1. Additional Living Expense, building. 2. Fair Rental Value and 3. Civil Authority Prohibits Use below. This expense is included in the limit of liability that applies to the damaged property. 1. Additional Living Expense If the amount to be paid for the actual dam- If a loss covered under Section I makes that age to the property plus the debris removal part of the "residence premises" where you re- expense is more than the limit of liability for side not fit to live in, we cover any necessary the damaged property, an additional 5% of increase in living expenses incurred by you so that limit is available for such expense. that your household can maintain its normal b. We will also pay your reasonable expense, standard of living. up to $1,000, for the removal from the Payment will be for the shortest time required "residence premises" of: to repair or replace the damage or, if you per- (1) Your tree(s) felled by the peril of Wind- manently relocate, the shortest time required storm or Hail or Weight of Ice, Snow or for your household to settle elsewhere. Sleet; or 2. Fair Rental Value (2) A neighbor's tree(s) felled by a Peril If a loss covered under Section I makes that Insured Against under Coverage C; part of the "residence premises" rented to oth- provided the tree(s): ers or held for rental by you not fit to live in, we cover the fair rental value of such premises (3) Damage(s) a covered structure; or less any expenses that do not continue while it (4) Does not damage a covered structure, is not fit to live in. but: Payment will be for the shortest time required (a) Block(s) a driveway on the "resi- to repair or replace such premises. dence premises" which prevent(s) a 3. Civil Authority Prohibits Use "motor vehicle", that is registered for use on public roads or property, from If a civil authority prohibits you from use of the entering or leaving the "residence "residence premises" as a result of direct dam- premises"; or age to neighboring premises by a Peril Insured Against, we cover the loss as provided in 1. (b) Block(s) a ramp or other fixture Additional Living Expense and 2. Fair Rental designed to assist a handicapped Value above for no more than two weeks. person to enter or leave the dwelling building. 4. Loss Or Expense Not Covered SAMPLE The $1,000 limit is the most we will pay in We do not cover loss or expense due to can- any one loss regardless of the number of cellation of a lease or agreement. fallen trees. No more than $500 of this limit The periods of time under 1. Additional Living Ex- will be paid for the removal of any one tree. pense, 2. Fair Rental Value and 3. Civil Authority This coverage is additional insurance. Prohibits Use above are not limited by expiration of this policy. 2. Reasonable Repairs a. We will pay the reasonable cost incurred by you for the necessary measures taken solely to protect covered property that is damaged by a Peril Insured Against from further damage.

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 5 of 22 b. If the measures taken involve repair to 6. Credit Card, Electronic Fund Transfer Card other damaged property, we will only pay if Or Access Device, Forgery And Counterfeit that property is covered under this policy Money and the damage is caused by a Peril In- a. We will pay up to $500 for: sured Against. This coverage does not: (1) The legal obligation of an "insured" to (1) Increase the limit of liability that applies pay because of the theft or unauthorized to the covered property; or use of credit cards issued to or regis- (2) Relieve you of your duties, in case of a tered in an "insured's" name; loss to covered property, described in (2) Loss resulting from theft or unauthorized B.4. under Section I – Conditions. use of an electronic fund transfer card 3. Trees, Shrubs And Other Plants or access device used for deposit, with- We cover trees, shrubs, plants or lawns, on the drawal or transfer of funds, issued to or "residence premises", for loss caused by the registered in an "insured's" name; following Perils Insured Against: (3) Loss to an "insured" caused by forgery a. Fire or Lightning; or alteration of any check or negotiable instrument; and b. Explosion; (4) Loss to an "insured" through acceptance c. Riot or Civil Commotion; in good faith of counterfeit United States d. Aircraft; or Canadian paper currency. e. Vehicles not owned or operated by a resi- All loss resulting from a series of acts dent of the "residence premises"; committed by any one person or in which f. Vandalism or Malicious Mischief; or any one person is concerned or implicated is considered to be one loss. g. Theft. This coverage is additional insurance. No We will pay up to 5% of the limit of liability that deductible applies to this coverage. applies to the dwelling for all trees, shrubs, plants or lawns. No more than $500 of this limit b. We do not cover: will be paid for any one tree, shrub or plant. We (1) Use of a credit card, electronic fund do not cover property grown for "business" transfer card or access device: purposes. (a) By a resident of your household; This coverage is additional insurance. (b) By a person who has been entrusted 4. Fire Department Service Charge with either type of card or access We will pay up to $500 for your liability as- device; or sumed by contract or agreement for fire de- (c) If an "insured" has not complied with partment charges incurred when the fire de- all terms and conditions under which partment is called to save or protect covered the cards are issued or the devices property from a Peril Insured Against. We do accessed; or not cover fire department service charges if the (2) Loss arising out of "business" use or property is located within the limits of the city, dishonesty of an "insured". municipality or protection district furnishing the fire department response. c. If the coverage in a. above applies, the SAMPLEfollowing defense provisions also apply: This coverage is additional insurance. No deductible applies to this coverage. (1) We may investigate and settle any claim or suit that we decide is appropriate. 5. Property Removed Our duty to defend a claim or suit ends We insure covered property against direct loss when the amount we pay for the loss from any cause while being removed from a equals our limit of liability. premises endangered by a Peril Insured (2) If a suit is brought against an "insured" Against and for no more than 30 days while for liability under a.(1) or (2) above, we removed. will provide a defense at our expense by This coverage does not change the limit of li- counsel of our choice. ability that applies to the property being re- (3) We have the option to defend at our moved. expense an "insured" or an "insured's" bank against any suit for the enforce- ment of payment under a.(3) above.

Page 6 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 7. Loss Assessment b. We insure for direct physical loss to cov- a. We will pay up to $1,000 for your share of ered property involving collapse of a build- loss assessment charged during the policy ing or any part of a building if the collapse period against you, as owner or tenant of was caused by one or more of the follow- the "residence premises", by a corporation ing: or association of property owners. The as- (1) The Perils Insured Against named under sessment must be made as a result of di- Coverage C; rect loss to property, owned by all members (2) Decay that is hidden from view, unless collectively, of the type that would be cov- the presence of such decay is known to ered by this policy if owned by you, caused an "insured" prior to collapse; by a Peril Insured Against under Coverage A, other than: (3) Insect or vermin damage that is hidden from view, unless the presence of such (1) Earthquake; or damage is known to an "insured" prior to (2) Land shock waves or tremors before, collapse; during or after a volcanic eruption. (4) Weight of contents, equipment, animals The limit of $1,000 is the most we will pay or people; with respect to any one loss, regardless of (5) Weight of rain which collects on a roof; the number of assessments. We will only or apply one deductible, per unit, to the total amount of any one loss to the property de- (6) Use of defective material or methods in scribed above, regardless of the number of construction, remodeling or renovation if assessments. the collapse occurs during the course of the construction, remodeling or renova- b. We do not cover assessments charged tion. against you or a corporation or association of property owners by any governmental c. Loss to an awning, fence, patio, deck, body. pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, c. Paragraph P. Policy Period under Section I foundation, retaining wall, bulkhead, pier, – Conditions does not apply to this cover- wharf or dock is not included under b.(2) age. through (6) above, unless the loss is a di- This coverage is additional insurance. rect result of the collapse of a building or 8. Collapse any part of a building. a. With respect to this Additional Coverage: d. This coverage does not increase the limit of liability that applies to the damaged covered (1) Collapse means an abrupt falling down property. or caving in of a building or any part of a building with the result that the building 9. Glass Or Safety Glazing Material or part of the building cannot be occu- a. We cover: pied for its current intended purpose. (1) The breakage of glass or safety glazing (2) A building or any part of a building that material which is part of a covered is in danger of falling down or caving in building, storm door or storm window; is not considered to be in a state of col- (2) The breakage of glass or safety glazing lapse. SAMPLEmaterial which is part of a covered (3) A part of a building that is standing is building, storm door or storm window not considered to be in a state of col- when caused directly by earth move- lapse even if it has separated from an- ment; and other part of the building. (3) The direct physical loss to covered (4) A building or any part of a building that property caused solely by the pieces, is standing is not considered to be in a fragments or splinters of broken glass or state of collapse even if it shows evi- safety glazing material which is part of a dence of cracking, bulging, sagging, building, storm door or storm window. bending, leaning, settling, shrinkage or expansion.

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 7 of 22 b. This coverage does not include loss: b. You may use all or part of this ordinance or (1) To covered property which results be- law coverage to pay for the increased costs cause the glass or safety glazing mate- you incur to remove debris resulting from rial has been broken, except as pro- the construction, demolition, remodeling, vided in a.(3) above; or renovation, repair or replacement of property as stated in a. above. (2) On the "residence premises" if the dwelling has been vacant for more than c. We do not cover: 60 consecutive days immediately before (1) The loss in value to any covered build- the loss, except when the breakage re- ing or other structure due to the results directly from earth movement as quirements of any ordinance or law; or provided in a.(2) above. A dwelling be- (2) The costs to comply with any ordinance ing constructed is not considered va- or law which requires any "insured" or cant. others to test for, monitor, clean up, re- c. This coverage does not increase the limit of move, contain, treat, detoxify or neu- liability that applies to the damaged prop- tralize, or in any way respond to, or as- erty. sess the effects of, pollutants in or on 10. Landlord's Furnishings any covered building or other structure. We will pay up to $2,500 for your appliances, Pollutants means any solid, liquid, gaseous or thermal irritant or contami- carpeting and other household furnishings, in each apartment on the "residence premises" nant, including smoke, vapor, soot, regularly rented or held for rental to others by fumes, acids, alkalis, chemicals and an "insured", for loss caused by a Peril Insured waste. Waste includes materials to be Against in Coverage C, other than Theft. recycled, reconditioned or reclaimed. This limit is the most we will pay in any one This coverage is additional insurance. loss regardless of the number of appliances, 12. Grave Markers carpeting or other household furnishings in- We will pay up to $5,000 for grave markers, involved in the loss. cluding mausoleums, on or away from the This coverage does not increase the limit of li- "residence premises" for loss caused by a Peril ability applying to the damaged property. Insured Against under Coverage C. 11. Ordinance Or Law This coverage does not increase the limits of a. You may use up to 10% of the limit of liabil- liability that apply to the damaged covered ity that applies to Coverage A for the in- property. creased costs you incur due to the en- forcement of any ordinance or law which SECTION I – PERILS INSURED AGAINST requires or regulates: A. Coverage A – Dwelling And Coverage B – (1) The construction, demolition, remodel- Other Structures ing, renovation or repair of that part of a covered building or other structure 1. We insure against risk of direct physical loss to damaged by a Peril Insured Against; property described in Coverages A and B. (2) The demolition and reconstruction of the 2. We do not insure, however, for loss: undamaged part of a covered SAMPLEbuilding a. Excluded under Section I – Exclusions; or other structure, when that building or b. Involving collapse, except as provided in other structure must be totally demol- E.8. Collapse under Section I – Property ished because of damage by a Peril In- Coverages; or sured Against to another part of that covered building or other structure; or c. Caused by: (3) The remodeling, removal or replace- (1) Freezing of a plumbing, heating, air ment of the portion of the undamaged conditioning or automatic fire protective part of a covered building or other sprinkler system or of a household ap- structure necessary to complete the re- pliance, or by discharge, leakage or modeling, repair or replacement of that overflow from within the system or ap- part of the covered building or other pliance caused by freezing. This provi- structure damaged by a Peril Insured sion does not apply if you have used Against. reasonable care to: (a) Maintain heat in the building; or

Page 8 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 (b) Shut off the water supply and drain (b) A storm drain, or water, steam or all systems and appliances of water. sewer pipes, off the "residence However, if the building is protected by premises". an automatic fire protective sprinkler For purposes of this provision, a system, you must use reasonable care plumbing system or household appli- to continue the water supply and main- ance does not include a sump, sump tain heat in the building for coverage to pump or related equipment or a roof apply. drain, gutter, downspout or similar fix- For purposes of this provision a plumb- tures or equipment; or ing system or household appliance does (6) Any of the following: not include a sump, sump pump or re- (a) Wear and tear, marring, deteriora- lated equipment or a roof drain, gutter, tion; downspout or similar fixtures or equipment; (b) Mechanical breakdown, latent de- fect, inherent vice, or any quality in (2) Freezing, thawing, pressure or weight of property that causes it to damage or water or ice, whether driven by wind or destroy itself; not, to a: (c) Smog, rust or other corrosion, or dry (a) Fence, pavement, patio or swimming rot; pool; (d) Smoke from agricultural smudging or (b) Footing, foundation, bulkhead, wall, industrial operations; or any other structure or device that supports all or part of a building, or (e) Discharge, dispersal, seepage, mi- other structure; gration, release or escape of pollutants unless the discharge, dispersal, (c) Retaining wall or bulkhead that does seepage, migration, release or es- not support all or part of a building or cape is itself caused by a Peril In- other structure; or sured Against named under Cover- (d) Pier, wharf or dock; age C. (3) Theft in or to a dwelling under construc- Pollutants means any solid, liquid, tion, or of materials and supplies for use gaseous or thermal irritant or con- in the construction until the dwelling is taminant, including smoke, vapor, finished and occupied; soot, fumes, acids, alkalis, chemi- (4) Vandalism and malicious mischief, and cals and waste. Waste includes any ensuing loss caused by any inten- materials to be recycled, recondi- tional and wrongful act committed in the tioned or reclaimed; course of the vandalism or malicious (f) Settling, shrinking, bulging or expan- mischief, if the dwelling has been vacant sion, including resultant cracking, of for more than 60 consecutive days im- bulkheads, pavements, patios, foot- mediately before the loss. A dwelling ings, foundations, walls, floors, roofs being constructed is not considered va- or ceilings; cant; (g) Birds, vermin, rodents, or insects; or (5) Mold, fungus or wet rot. However, we do (h) Animals owned or kept by an "in- insure for loss caused by mold,SAMPLE fungus sured". or wet rot that is hidden within the walls or ceilings or beneath the floors or Exception To c.(6) above the ceilings of a structure if such Unless the loss is otherwise excluded, we loss results from the accidental dis- cover loss to property covered under Cov- charge or overflow of water or steam erage A or B resulting from an accidental from within: discharge or overflow of water or steam (a) A plumbing, heating, air conditioning from within a: or automatic fire protective sprinkler (i) Storm drain, or water, steam or sewer system, or a household appliance, pipe, off the "residence premises"; or on the "residence premises"; or

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 9 of 22 (ii) Plumbing, heating, air conditioning or 6. Vehicles automatic fire protective sprinkler sys- 7. Smoke tem or household appliance on the "residence premises". This includes the This peril means sudden and accidental dam- cost to tear out and replace any part of a age from smoke, including the emission or building, or other structure, on the "resi- puffback of smoke, soot, fumes or vapors from dence premises", but only when neces- a boiler, furnace or related equipment. sary to repair the system or appliance. This peril does not include loss caused by However, such tear out and replace- smoke from agricultural smudging or industrial ment coverage only applies to other operations. structures if the water or steam causes 8. Vandalism Or Malicious Mischief actual damage to a building on the "residence premises". 9. Theft We do not cover loss to the system or ap- a. This peril includes attempted theft and loss pliance from which this water or steam es- of property from a known place when it is caped. likely that the property has been stolen. For purposes of this provision, a plumbing b. This peril does not include loss caused by system or household appliance does not theft: include a sump, sump pump or related (1) Committed by an "insured"; equipment or a roof drain, gutter, down (2) In or to a dwelling under construction, or spout or similar fixtures or equipment. of materials and supplies for use in the Section I – Exclusion A.3. Water Damage, construction until the dwelling is finished Paragraphs a. and c. that apply to surface and occupied; water and water below the surface of the (3) From that part of a "residence premises" ground do not apply to loss by water covered rented by an "insured" to someone other under c.(5) and (6) above. than another "insured"; or Under 2.b. and c. above, any ensuing loss to (4) That occurs off the "residence prem- property described in Coverages A and B not ises" of: precluded by any other provision in this policy is covered. (a) Trailers, semitrailers and campers; B. Coverage C – Personal Property (b) Watercraft of all types, and their furnishings, equipment and outboard We insure for direct physical loss to the property engines or motors; or described in Coverage C caused by any of the following perils unless the loss is excluded in Sec- (c) Property while at any other residence tion I – Exclusions. owned by, rented to, or occupied by an "insured", except while an "in- 1. Fire Or Lightning sured" is temporarily living there. 2. Windstorm Or Hail Property of an "insured" who is a This peril includes loss to watercraft of all types student is covered while at the resi- and their trailers, furnishings, equipment, and dence the student occupies to attend outboard engines or motors, only while inside a school as long as the student has fully enclosed building. been there at any time during the 60 days immediately before the loss. This peril does not include loss to the SAMPLEproperty contained in a building caused by rain, snow, 10. Falling Objects sleet, sand or dust unless the direct force of This peril does not include loss to property wind or hail damages the building causing an contained in a building unless the roof or an opening in a roof or wall and the rain, snow, outside wall of the building is first damaged by sleet, sand or dust enters through this opening. a falling object. Damage to the falling object it- 3. Explosion self is not included. 4. Riot Or Civil Commotion 11. Weight Of Ice, Snow Or Sleet 5. Aircraft This peril means weight of ice, snow or sleet which causes damage to property contained in This peril includes self-propelled missiles and a building. spacecraft.

Page 10 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 12. Accidental Discharge Or Overflow Of Water b. In this peril, a plumbing system or house- Or Steam hold appliance does not include a sump, a. This peril means accidental discharge or sump pump or related equipment or a roof overflow of water or steam from within a drain, gutter, downspout or similar fixtures plumbing, heating, air conditioning or auto- or equipment. matic fire protective sprinkler system or 15. Sudden And Accidental Damage From from within a household appliance. Artificially Generated Electrical Current b. This peril does not include loss: This peril does not include loss to tubes, tran- (1) To the system or appliance from which sistors, electronic components or circuitry that the water or steam escaped; are a part of appliances, fixtures, computers, home entertainment units or other types of (2) Caused by or resulting from freezing electronic apparatus. except as provided in Peril Insured Against 14. Freezing; 16. Volcanic Eruption (3) On the "residence premises" caused by This peril does not include loss caused by accidental discharge or overflow which earthquake, land shock waves or tremors. occurs off the "residence premises"; or (4) Caused by mold, fungus or wet rot un- SECTION I – EXCLUSIONS less hidden within the walls or ceilings A. We do not insure for loss caused directly or indi- or beneath the floors or above the ceil- rectly by any of the following. Such loss is ex- ings of a structure. cluded regardless of any other cause or event c. In this peril, a plumbing system or house- contributing concurrently or in any sequence to the hold appliance does not include a sump, loss. These exclusions apply whether or not the sump pump or related equipment or a roof loss event results in widespread damage or af- drain, gutter, downspout or similar fixtures fects a substantial area. or equipment. 1. Ordinance Or Law d. Section I – Exclusion A.3. Water Damage, Ordinance Or Law means any ordinance or Paragraphs a. and c. that apply to surface law: water and water below the surface of the ground do not apply to loss by water cov- a. Requiring or regulating the construction, ered under this peril. demolition, remodeling, renovation or repair of property, including removal of any re- 13. Sudden And Accidental Tearing Apart, sulting debris. This Exclusion A.1.a. does Cracking, Burning Or Bulging not apply to the amount of coverage that This peril means sudden and accidental tear- may be provided for in E.11. Ordinance Or ing apart, cracking, burning or bulging of a Law under Section I – Property Coverages; steam or hot water heating system, an air con- b. The requirements of which result in a loss ditioning or automatic fire protective sprinkler in value to property; or system, or an appliance for heating water. c. Requiring any "insured" or others to test for, We do not cover loss caused by or resulting monitor, clean up, remove, contain, treat, from freezing under this peril. detoxify or neutralize, or in any way respond 14. Freezing to, or assess the effects of, pollutants. a. This peril means freezing of a plumbing,SAMPLEPollutants means any solid, liquid, gaseous heating, air conditioning or automatic fire or thermal irritant or contaminant, including protective sprinkler system or of a house- smoke, vapor, soot, fumes, acids, alkalis, hold appliance but only if you have used chemicals and waste. Waste includes ma- reasonable care to: terials to be recycled, reconditioned or re- (1) Maintain heat in the building; or claimed. (2) Shut off the water supply and drain all This Exclusion A.1. applies whether or not the systems and appliances of water. property has been physically damaged. However, if the building is protected by an 2. Earth Movement automatic fire protective sprinkler system, Earth Movement means: you must use reasonable care to continue a. Earthquake, including land shock waves or the water supply and maintain heat in the tremors before, during or after a volcanic building for coverage to apply. eruption;

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 11 of 22 b. Landslide, mudslide or mudflow; Discharge of a nuclear weapon will be deemed c. Subsidence or sinkhole; or a warlike act even if accidental. d. Any other earth movement including earth 7. Nuclear Hazard sinking, rising or shifting; This Exclusion A.7. pertains to Nuclear Hazard caused by or resulting from human or animal to the extent set forth in M. Nuclear Hazard forces or any act of nature unless direct loss by Clause under Section I – Conditions. fire or explosion ensues and then we will pay 8. Intentional Loss only for the ensuing loss. Intentional Loss means any loss arising out of This Exclusion A.2. does not apply to loss by any act an "insured" commits or conspires to theft. commit with the intent to cause a loss. 3. Water Damage In the event of such loss, no "insured" is enti- Water Damage means: tled to coverage, even "insureds" who did not commit or conspire to commit the act causing a. Flood, surface water, waves, tidal water, the loss. overflow of a body of water, or spray from any of these, whether or not driven by wind; 9. Governmental Action b. Water or water-borne material which backs Governmental Action means the destruction, up through sewers or drains or which over- confiscation or seizure of property described in flows or is discharged from a sump, sump Coverage A, B or C by order of any govern- pump or related equipment; or mental or public authority. c. Water or water-borne material below the This exclusion does not apply to such acts or- surface of the ground, including water dered by any governmental or public authority which exerts pressure on or seeps or leaks that are taken at the time of a fire to prevent its through a building, sidewalk, driveway, spread, if the loss caused by fire would be foundation, swimming pool or other struc- covered under this policy. ture; B. We do not insure for loss to property described in caused by or resulting from human or animal Coverages A and B caused by any of the follow- forces or any act of nature. ing. However, any ensuing loss to property described in Coverages A and B not precluded by Direct loss by fire, explosion or theft resulting any other provision in this policy is covered. from water damage is covered. 1. Weather conditions. However, this exclusion 4. Power Failure only applies if weather conditions contribute in Power Failure means the failure of power or any way with a cause or event excluded in A. other utility service if the failure takes place off above to produce the loss. the "residence premises". But if the failure re- 2. Acts or decisions, including the failure to act or sults in a loss, from a Peril Insured Against on decide, of any person, group, organization or the "residence premises", we will pay for the governmental body. loss caused by that peril. 3. Faulty, inadequate or defective: 5. Neglect a. Planning, zoning, development, surveying, Neglect means neglect of an "insured" to use siting; all reasonable means to save and preserve property at and after the time of a loss.SAMPLEb. Design, specifications, workmanship, repair, construction, renovation, remodeling, 6. War grading, compaction; War includes the following and any conse- c. Materials used in repair, construction, reno- quence of any of the following: vation or remodeling; or a. Undeclared war, civil war, insurrection, d. Maintenance; rebellion or revolution; of part or all of any property whether on or off b. Warlike act by a military force or military the "residence premises". personnel; or c. Destruction, seizure or use for a military purpose.

Page 12 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 SECTION I – CONDITIONS d. Changes in title or occupancy of the prop- A. Insurable Interest And Limit Of Liability erty during the term of the policy; Even if more than one person has an insurable e. Specifications of damaged buildings and interest in the property covered, we will not be li- detailed repair estimates; able in any one loss: f. The inventory of damaged personal prop- 1. To an "insured" for more than the amount of erty described in 6. above; such "insured's" interest at the time of loss; or g. Receipts for additional living expenses 2. For more than the applicable limit of liability. incurred and records that support the fair rental value loss; and B. Duties After Loss h. Evidence or affidavit that supports a claim In case of a loss to covered property, we have no under E.6. Credit Card, Electronic Fund duty to provide coverage under this policy if the Transfer Card Or Access Device, Forgery failure to comply with the following duties is preju- And Counterfeit Money under Section I – dicial to us. These duties must be performed ei- Property Coverages, stating the amount ther by you, an "insured" seeking coverage, or a and cause of loss. representative of either: C. Loss Settlement 1. Give prompt notice to us or our agent; In this Condition C., the terms "cost to repair or 2. Notify the police in case of loss by theft; replace" and "replacement cost" do not include the 3. Notify the credit card or electronic fund transfer increased costs incurred to comply with the en- card or access device company in case of loss forcement of any ordinance or law, except to the as provided for in E.6. Credit Card, Electronic extent that coverage for these increased costs is Fund Transfer Card Or Access Device, For- provided in E.11. Ordinance Or Law under Section gery And Counterfeit Money under Section I – I – Property Coverages. Covered property losses Property Coverages; are settled as follows: 4. Protect the property from further damage. If 1. Property of the following types: repairs to the property are required, you must: a. Personal property; a. Make reasonable and necessary repairs to b. Awnings, carpeting, household appliances, protect the property; and outdoor antennas and outdoor equipment, b. Keep an accurate record of repair ex- whether or not attached to buildings; penses; c. Structures that are not buildings; and 5. Cooperate with us in the investigation of a d. Grave markers, including mausoleums; claim; at actual cash value at the time of loss but not 6. Prepare an inventory of damaged personal more than the amount required to repair or re- property showing the quantity, description, ac- place. tual cash value and amount of loss. Attach all bills, receipts and related documents that jus- 2. Buildings covered under Coverage A or B at tify the figures in the inventory; replacement cost without deduction for depreciation, subject to the following: 7. As often as we reasonably require: a. If, at the time of loss, the amount of insur- a. Show the damaged property; ance in this policy on the damaged building b. Provide us with records and documentsSAMPLE we is 80% or more of the full replacement cost request and permit us to make copies; and of the building immediately before the loss, c. Submit to examination under oath, while not we will pay the cost to repair or replace, af- in the presence of another "insured", and ter application of any deductible and without sign the same; deduction for depreciation, but not more than the least of the following amounts: 8. Send to us, within 60 days after our request, your signed, sworn proof of loss which sets (1) The limit of liability under this policy that forth, to the best of your knowledge and belief: applies to the building; a. The time and cause of loss; (2) The replacement cost of that part of the building damaged with material of like b. The interests of all "insureds" and all others kind and quality and for like use; or in the property involved and all liens on the property; (3) The necessary amount actually spent to repair or replace the damaged building. c. Other insurance which may cover the loss;

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 13 of 22 If the building is rebuilt at a new premises, e. You may disregard the replacement cost the cost described in (2) above is limited to loss settlement provisions and make claim the cost which would have been incurred if under this policy for loss to buildings on an the building had been built at the original actual cash value basis. You may then premises. make claim for any additional liability ac- b. If, at the time of loss, the amount of insur- cording to the provisions of this Condition ance in this policy on the damaged building C. Loss Settlement, provided you notify us is less than 80% of the full replacement of your intent to do so within 180 days after cost of the building immediately before the the date of loss. loss, we will pay the greater of the following D. Loss To A Pair Or Set amounts, but not more than the limit of li- In case of loss to a pair or set we may elect to: ability under this policy that applies to the building: 1. Repair or replace any part to restore the pair or set to its value before the loss; or (1) The actual cash value of that part of the building damaged; or 2. Pay the difference between actual cash value of the property before and after the loss. (2) That proportion of the cost to repair or replace, after application of any deducti- E. Appraisal ble and without deduction for deprecia- If you and we fail to agree on the amount of loss, tion, that part of the building damaged, either may demand an appraisal of the loss. In this which the total amount of insurance in event, each party will choose a competent and im- this policy on the damaged building partial appraiser within 20 days after receiving a bears to 80% of the replacement cost of written request from the other. The two appraisers the building. will choose an umpire. If they cannot agree upon c. To determine the amount of insurance an umpire within 15 days, you or we may request required to equal 80% of the full replace- that the choice be made by a judge of a court of ment cost of the building immediately be- record in the state where the "residence premises" fore the loss, do not include the value of: is located. The appraisers will separately set the amount of loss. If the appraisers submit a written (1) Excavations, footings, foundations, report of an agreement to us, the amount agreed piers, or any other structures or devices upon will be the amount of loss. If they fail to that support all or part of the building, agree, they will submit their differences to the um- which are below the undersurface of the pire. A decision agreed to by any two will set the lowest basement floor; amount of loss. (2) Those supports described in (1) above Each party will: which are below the surface of the ground inside the foundation walls, if 1. Pay its own appraiser; and there is no basement; and 2. Bear the other expenses of the appraisal and (3) Underground flues, pipes, wiring and umpire equally. drains. F. Other Insurance And Service Agreement d. We will pay no more than the actual cash If a loss covered by this policy is also covered by: value of the damage until actual repair or 1. Other insurance, we will pay only the proportion replacement is complete. Once actual re- of the loss that the limit of liability that applies pair or replacement is complete, SAMPLEwe will under this policy bears to the total amount of settle the loss as noted in 2.a. and b. insurance covering the loss; or above. 2. A service agreement, this insurance is excess However, if the cost to repair or replace the over any amounts payable under any such damage is both: agreement. Service agreement means a serv- (1) Less than 5% of the amount of insur- ice plan, property restoration plan, home war- ance in this policy on the building; and ranty or other similar service warranty agree- (2) Less than $2,500; ment, even if it is characterized as insurance. we will settle the loss as noted in 2.a. and G. Suit Against Us b. above whether or not actual repair or re- No action can be brought against us unless there placement is complete. has been full compliance with all of the terms under Section I of this policy and the action is started within two years after the date of loss.

Page 14 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 H. Our Option b. At our option, we may pay to the mortgagee If we give you written notice within 30 days after the whole principal on the mortgage plus we receive your signed, sworn proof of loss, we any accrued interest. In this event, we will may repair or replace any part of the damaged receive a full assignment and transfer of the property with material or property of like kind and mortgage and all securities held as collat- quality. eral to the mortgage debt. I. Loss Payment 5. Subrogation will not impair the right of the mortgagee to recover the full amount of the We will adjust all losses with you. We will pay you mortgagee's claim. unless some other person is named in the policy or is legally entitled to receive payment. Loss will L. No Benefit To Bailee be payable 60 days after we receive your proof of We will not recognize any assignment or grant any loss and: coverage that benefits a person or organization 1. Reach an agreement with you; holding, storing or moving property for a fee regardless of any other provision of this policy. 2. There is an entry of a final judgment; or M. Nuclear Hazard Clause 3. There is a filing of an appraisal award with us. 1. "Nuclear Hazard" means any nuclear reaction, J. Abandonment Of Property radiation, or radioactive contamination, all We need not accept any property abandoned by whether controlled or uncontrolled or however an "insured". caused, or any consequence of any of these. K. Mortgage Clause 2. Loss caused by the nuclear hazard will not be 1. If a mortgagee is named in this policy, any loss considered loss caused by fire, explosion, or payable under Coverage A or B will be paid to smoke, whether these perils are specifically the mortgagee and you, as interests appear. If named in or otherwise included within the Per- more than one mortgagee is named, the order ils Insured Against. of payment will be the same as the order of 3. This policy does not apply under Section I to precedence of the mortgages. loss caused directly or indirectly by nuclear 2. If we deny your claim, that denial will not apply hazard, except that direct loss by fire resulting to a valid claim of the mortgagee, if the mort- from the nuclear hazard is covered. gagee: N. Recovered Property a. Notifies us of any change in ownership, If you or we recover any property for which we occupancy or substantial change in risk of have made payment under this policy, you or we which the mortgagee is aware; will notify the other of the recovery. At your option, b. Pays any premium due under this policy on the property will be returned to or retained by you demand if you have neglected to pay the or it will become our property. If the recovered premium; and property is returned to or retained by you, the loss payment will be adjusted based on the amount you c. Submits a signed, sworn statement of loss received for the recovered property. within 60 days after receiving notice from us of your failure to do so. Paragraphs E. Ap- O. Volcanic Eruption Period praisal, G. Suit Against Us and I. Loss One or more volcanic eruptions that occur within a Payment under Section I – Conditions also 72 hour period will be considered as one volcanic apply to the mortgagee. SAMPLEeruption. 3. If we decide to cancel or not to renew this P. Policy Period policy, the mortgagee will be notified at least 10 This policy applies only to loss which occurs dur- days before the date cancellation or nonrene- ing the policy period. wal takes effect. Q. Concealment Or Fraud 4. If we pay the mortgagee for any loss and deny payment to you: We provide coverage to no "insureds" under this policy if, whether before or after a loss, an "in- a. We are subrogated to all the rights of the sured" has: mortgagee granted under the mortgage on the property; or 1. Intentionally concealed or misrepresented any material fact or circumstance;

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 15 of 22 2. Engaged in fraudulent conduct; or SECTION II – EXCLUSIONS 3. Made false statements; A. "Motor Vehicle Liability" relating to this insurance. 1. Coverages E and F do not apply to any "motor R. Loss Payable Clause vehicle liability" if, at the time and place of an "occurrence", the involved "motor vehicle": If the Declarations show a loss payee for certain listed insured personal property, the definition of a. Is registered for use on public roads or "insured" is changed to include that loss payee property; with respect to that property. b. Is not registered for use on public roads or If we decide to cancel or not renew this policy, that property, but such registration is required by loss payee will be notified in writing. a law, or regulation issued by a government agency, for it to be used at the place of the "occurrence"; or SECTION II – LIABILITY COVERAGES c. Is being: A. Coverage E – Personal Liability (1) Operated in, or practicing for, any prear- If a claim is made or a suit is brought against an ranged or organized race, speed contest "insured" for damages because of "bodily injury" or or other competition; "property damage" caused by an "occurrence" to (2) Rented to others; which this coverage applies, we will: (3) Used to carry persons or cargo for a 1. Pay up to our limit of liability for the damages charge; or for which an "insured" is legally liable. Dam- ages include prejudgment interest awarded (4) Used for any "business" purpose except against an "insured"; and for a motorized golf cart while on a golfing facility. 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, 2. If Exclusion A.1. does not apply, there is still no false or fraudulent. We may investigate and coverage for "motor vehicle liability" unless the settle any claim or suit that we decide is ap- "motor vehicle" is: propriate. Our duty to settle or defend ends a. In dead storage on an "insured location"; when our limit of liability for the "occurrence" b. Used solely to service an "insured's" resi- has been exhausted by payment of a judgment dence; or settlement. c. Designed to assist the handicapped and, at B. Coverage F – Medical Payments To Others the time of an "occurrence", it is: We will pay the necessary medical expenses that (1) Being used to assist a handicapped are incurred or medically ascertained within three person; or years from the date of an accident causing "bodily injury". Medical expenses means reasonable (2) Parked on an "insured location"; charges for medical, surgical, x-ray, dental, am- d. Designed for recreational use off public bulance, hospital, professional nursing, prosthetic roads and: devices and funeral services. This coverage does (1) Not owned by an "insured"; or not apply to you or regular residents of your household except "residence employees". As to (2) Owned by an "insured" provided the others, this coverage applies only: "occurrence" takes place on an "insured SAMPLElocation" as defined in Definitions B. 1. To a person on the "insured location" with the 6.a., b., d., e. or h.; or permission of an "insured"; or e. A motorized golf cart that is owned by an 2. To a person off the "insured location", if the "insured", designed to carry up to 4 per- "bodily injury": sons, not built or modified after manufac- a. Arises out of a condition on the "insured ture to exceed a speed of 25 miles per hour location" or the ways immediately adjoining; on level ground and, at the time of an "oc- b. Is caused by the activities of an "insured"; currence", is within the legal boundaries of: c. Is caused by a "residence employee" in the (1) A golfing facility and is parked or stored course of the "residence employee's" em- there, or being used by an "insured" to: ployment by an "insured"; or (a) Play the game of golf or for other d. Is caused by an animal owned by or in the recreational or leisure activity al- care of an "insured". lowed by the facility;

Page 16 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 (b) Travel to or from an area where (d) More than 25 horsepower if the "motor vehicles" or golf carts are outboard engine or motor is owned parked or stored; or by an "insured" who acquired it be- (c) Cross public roads at designated fore the policy period, but only if: points to access other parts of the (i) You declare them at policy incep- golfing facility; or tion; or (2) A private residential community, includ- (ii) Your intent to insure them is ing its public roads upon which a mo- reported to us in writing within 45 torized golf cart can legally travel, which days after you acquire them. is subject to the authority of a property The coverages in (c) and (d) above ap- owners association and contains an "in- ply for the policy period. sured's" residence. Horsepower means the maximum power B. "Watercraft Liability" rating assigned to the engine or motor by 1. Coverages E and F do not apply to any "water- the manufacturer. craft liability" if, at the time of an "occurrence", C. "Aircraft Liability" the involved watercraft is being: This policy does not cover "aircraft liability". a. Operated in, or practicing for, any prear- ranged or organized race, speed contest or D. "Hovercraft Liability" other competition. This exclusion does not This policy does not cover "hovercraft liability". apply to a sailing vessel or a predicted log E. Coverage E – Personal Liability And Coverage cruise; F – Medical Payments To Others b. Rented to others; Coverages E and F do not apply to the following: c. Used to carry persons or cargo for a 1. Expected Or Intended Injury charge; or "Bodily injury" or "property damage" which is d. Used for any "business" purpose. expected or intended by an "insured" even if 2. If Exclusion B.1. does not apply, there is still no the resulting "bodily injury" or "property dam- coverage for "watercraft liability" unless, at the age": time of the "occurrence", the watercraft: a. Is of a different kind, quality or degree than a. Is stored; initially expected or intended; or b. Is a sailing vessel, with or without auxiliary b. Is sustained by a different person, entity, power, that is: real or personal property, than initially ex- (1) Less than 26 feet in overall length; or pected or intended. (2) 26 feet or more in overall length and not However, this Exclusion E.1. does not apply to owned by or rented to an "insured"; or "bodily injury" resulting from the use of reasonable force by an "insured" to protect persons or c. Is not a sailing vessel and is powered by: property; (1) An inboard or inboard-outdrive engine or 2. "Business" motor, including those that power a water jet pump, of: a. "Bodily injury" or "property damage" arising out of or in connection with a "business" (a) 50 horsepower or less andSAMPLE not conducted from an "insured location" or en- owned by an "insured"; or gaged in by an "insured", whether or not the (b) More than 50 horsepower and not "business" is owned or operated by an "in- owned by or rented to an "insured"; sured" or employs an "insured". or This Exclusion E.2. applies but is not lim- (2) One or more outboard engines or mo- ited to an act or omission, regardless of its tors with: nature or circumstance, involving a service (a) 25 total horsepower or less; or duty rendered, promised, owed, or im- plied to be provided because of the nature (b) More than 25 horsepower if the of the "business". outboard engine or motor is not owned by an "insured"; b. This Exclusion E.2. does not apply to: (c) More than 25 horsepower if the (1) The rental or holding for rental of an outboard engine or motor is owned "insured location"; by an "insured" who acquired it during the policy period; or

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 17 of 22 (a) On an occasional basis if used only 8. Controlled Substance as a residence; "Bodily injury" or "property damage" arising out (b) In part for use only as a residence, of the use, sale, manufacture, delivery, transfer unless a single family unit is in- or possession by any person of a Controlled tended for use by the occupying Substance as defined by the Federal Food and family to lodge more than two room- Drug Law at 21 U.S.C.A. Sections 811 and ers or boarders; or 812. Controlled Substances include but are not (c) In part, as an office, school, studio or limited to cocaine, LSD, marijuana and all nar- private garage; and cotic drugs. However, this exclusion does not apply to the legitimate use of prescription drugs (2) An "insured" under the age of 21 years by a person following the orders of a licensed involved in a part-time or occasional, physician. self-employed "business" with no employees; Exclusions A. "Motor Vehicle Liability", B. "Water- craft Liability", C. "Aircraft Liability", D. "Hovercraft 3. Professional Services Liability" and E.4. "Insured's" Premises Not An "In- "Bodily injury" or "property damage" arising out sured Location" do not apply to "bodily injury" to a of the rendering of or failure to render profes- "residence employee" arising out of and in the sional services; course of the "residence employee's" employment 4. "Insured's" Premises Not An "Insured by an "insured". Location" F. Coverage E – Personal Liability "Bodily injury" or "property damage" arising out Coverage E does not apply to: of a premises: 1. Liability: a. Owned by an "insured"; a. For any loss assessment charged against b. Rented to an "insured"; or you as a member of an association, corpo- c. Rented to others by an "insured"; ration or community of property owners, except as provided in D. Loss Assessment that is not an "insured location"; under Section II – Additional Coverages; 5. War b. Under any contract or agreement entered "Bodily injury" or "property damage" caused di- into by an "insured". However, this exclu- rectly or indirectly by war, including the follow- sion does not apply to written contracts: ing and any consequence of any of the follow- (1) That directly relate to the ownership, ing: maintenance or use of an "insured loca- a. Undeclared war, civil war, insurrection, tion"; or rebellion or revolution; (2) Where the liability of others is assumed b. Warlike act by a military force or military by you prior to an "occurrence"; personnel; or unless excluded in a. above or elsewhere in c. Destruction, seizure or use for a military this policy; purpose. 2. "Property damage" to property owned by an Discharge of a nuclear weapon will be deemed "insured". This includes costs or expenses in- a warlike act even if accidental; curred by an "insured" or others to repair, replace, enhance, restore or maintain such prop- 6. Communicable Disease SAMPLE erty to prevent injury to a person or damage to "Bodily injury" or "property damage" which property of others, whether on or away from an arises out of the transmission of a communi- "insured location"; cable disease by an "insured"; 3. "Property damage" to property rented to, occu- 7. Sexual Molestation, Corporal Punishment pied or used by or in the care of an "insured". Or Physical Or Mental Abuse This exclusion does not apply to "property "Bodily injury" or "property damage" arising out damage" caused by fire, smoke or explosion; of sexual molestation, corporal punishment or 4. "Bodily injury" to any person eligible to receive physical or mental abuse; or any benefits voluntarily provided or required to be provided by an "insured" under any: a. Workers' compensation law;

Page 18 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 b. Non-occupational disability law; or SECTION II – ADDITIONAL COVERAGES c. Occupational disease law; We cover the following in addition to the limits of 5. "Bodily injury" or "property damage" for which liability: an "insured" under this policy: A. Claim Expenses a. Is also an insured under a nuclear energy We pay: liability policy issued by the: 1. Expenses we incur and costs taxed against an (1) Nuclear Energy Liability Insurance As- "insured" in any suit we defend; sociation; 2. Premiums on bonds required in a suit we de- (2) Mutual Atomic Energy Liability Under- fend, but not for bond amounts more than the writers; Coverage E limit of liability. We need not apply (3) Nuclear Insurance Association of Can- for or furnish any bond; ada; 3. Reasonable expenses incurred by an "insured" or any of their successors; or at our request, including actual loss of earnings (but not loss of other income) up to $250 per b. Would be an insured under such a policy day, for assisting us in the investigation or de- but for the exhaustion of its limit of liability; fense of a claim or suit; and or 4. Interest on the entire judgment which accrues 6. "Bodily injury" to you or an "insured" as defined after entry of the judgment and before we pay under Definitions 5.a. or b. or tender, or deposit in court that part of the This exclusion also applies to any claim made judgment which does not exceed the limit of li- or suit brought against you or an "insured": ability that applies. a. To repay; or B. First Aid Expenses b. Share damages with; We will pay expenses for first aid to others in- another person who may be obligated to pay curred by an "insured" for "bodily injury" covered damages because of "bodily injury" to an "in- under this policy. We will not pay for first aid to an sured". "insured". G. Coverage F – Medical Payments To Others C. Damage To Property Of Others Coverage F does not apply to "bodily injury": 1. We will pay, at replacement cost, up to $1,000 per "occurrence" for "property damage" to 1. To a "residence employee" if the "bodily injury": property of others caused by an "insured". a. Occurs off the "insured location"; and 2. We will not pay for "property damage": b. Does not arise out of or in the course of the a. To the extent of any amount recoverable "residence employee's" employment by an under Section I; "insured"; b. Caused intentionally by an "insured" who is 2. To any person eligible to receive benefits vol- 13 years of age or older; untarily provided or required to be provided under any: c. To property owned by an "insured"; a. Workers' compensation law; d. To property owned by or rented to a tenant of an "insured" or a resident in your house- b. Non-occupational disability law; or SAMPLEhold; or c. Occupational disease law; e. Arising out of: 3. From any: (1) A "business" engaged in by an "in- a. Nuclear reaction; sured"; b. Nuclear radiation; or (2) Any act or omission in connection with a premises owned, rented or controlled by c. Radioactive contamination; an "insured", other than the "insured lo- all whether controlled or uncontrolled or how- cation"; or ever caused; or (3) The ownership, maintenance, occu- d. Any consequence of any of these; or pancy, operation, use, loading or un- 4. To any person, other than a "residence em- loading of aircraft, hovercraft, watercraft ployee" of an "insured", regularly residing on or "motor vehicles". any part of the "insured location".

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 19 of 22 This exclusion e.(3) does not apply to a SECTION II – CONDITIONS "motor vehicle" that: A. Limit Of Liability (a) Is designed for recreational use off Our total liability under Coverage E for all dam- public roads; ages resulting from any one "occurrence" will not (b) Is not owned by an "insured"; and be more than the Coverage E limit of liability (c) At the time of the "occurrence", is shown in the Declarations. This limit is the same not required by law, or regulation is- regardless of the number of "insureds", claims sued by a government agency, to made or persons injured. All "bodily injury" and have been registered for it to be "property damage" resulting from any one accident used on public roads or property. or from continuous or repeated exposure to substantially the same general harmful conditions D. Loss Assessment shall be considered to be the result of one "occur- 1. We will pay up to $1,000 for your share of loss rence". assessment charged against you, as owner or Our total liability under Coverage F for all medical tenant of the "residence premises", during the expense payable for "bodily injury" to one person policy period by a corporation or association of as the result of one accident will not be more than property owners, when the assessment is the Coverage F limit of liability shown in the Decla- made as a result of: rations. a. "Bodily injury" or "property damage" not B. Severability Of Insurance excluded from coverage under Section II – Exclusions; or This insurance applies separately to each "insured". This condition will not increase our limit of b. Liability for an act of a director, officer or liability for any one "occurrence". trustee in the capacity as a director, officer or trustee, provided such person: C. Duties After "Occurrence" (1) Is elected by the members of a corpora- In case of an "occurrence", you or another "insured" will perform the following duties that apply. tion or association of property owners; and We have no duty to provide coverage under this policy if your failure to comply with the following (2) Serves without deriving any income duties is prejudicial to us. You will help us by see- from the exercise of duties which are ing that these duties are performed: solely on behalf of a corporation or association of property owners. 1. Give written notice to us or our agent as soon as is practical, which sets forth: 2. Paragraph I. Policy Period under Section II – Conditions does not apply to this Loss As- a. The identity of the policy and the "named sessment Coverage. insured" shown in the Declarations; 3. Regardless of the number of assessments, the b. Reasonably available information on the limit of $1,000 is the most we will pay for loss time, place and circumstances of the "oc- arising out of: currence"; and a. One accident, including continuous or re- c. Names and addresses of any claimants peated exposure to substantially the same and witnesses; general harmful condition; or 2. Cooperate with us in the investigation, settle- b. A covered act of a director, officer or trus- ment or defense of any claim or suit; tee. An act involving more than oneSAMPLE direc- 3. Promptly forward to us every notice, demand, tor, officer or trustee is considered to be a summons or other process relating to the "oc- single act. currence"; 4. We do not cover assessments charged against 4. At our request, help us: you or a corporation or association of property a. To make settlement; owners by any governmental body. b. To enforce any right of contribution or in- demnity against any person or organization who may be liable to an "insured";

Page 20 of 22 Copyright, Insurance Services Office, Inc., 1999 HO 00 03 10 00 c. With the conduct of suits and attend hear- J. Concealment Or Fraud ings and trials; and We do not provide coverage to an "insured" who, d. To secure and give evidence and obtain the whether before or after a loss, has: attendance of witnesses; 1. Intentionally concealed or misrepresented any 5. With respect to C. Damage To Property Of material fact or circumstance; Others under Section II – Additional Cover- 2. Engaged in fraudulent conduct; or ages, submit to us within 60 days after the loss, a sworn statement of loss and show the 3. Made false statements; damaged property, if in an "insured's" control; relating to this insurance. 6. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume SECTIONS I AND II – CONDITIONS obligation or incur expense other than for first aid to others at the time of the "bodily injury". A. Liberalization Clause D. Duties Of An Injured Person – Coverage F – If we make a change which broadens coverage Medical Payments To Others under this edition of our policy without additional premium charge, that change will automatically 1. The injured person or someone acting for the apply to your insurance as of the date we imple- injured person will: ment the change in your state, provided that this a. Give us written proof of claim, under oath if implementation date falls within 60 days prior to or required, as soon as is practical; and during the policy period stated in the Declarations. b. Authorize us to obtain copies of medical This Liberalization Clause does not apply to reports and records. changes implemented with a general program re- 2. The injured person will submit to a physical vision that includes both broadenings and restric- exam by a doctor of our choice when and as tions in coverage, whether that general program often as we reasonably require. revision is implemented through introduction of: E. Payment Of Claim – Coverage F – Medical 1. A subsequent edition of this policy; or Payments To Others 2. An amendatory endorsement. Payment under this coverage is not an admission B. Waiver Or Change Of Policy Provisions of liability by an "insured" or us. A waiver or change of a provision of this policy F. Suit Against Us must be in writing by us to be valid. Our request 1. No action can be brought against us unless for an appraisal or examination will not waive any there has been full compliance with all of the of our rights. terms under this Section II. C. Cancellation 2. No one will have the right to join us as a party 1. You may cancel this policy at any time by re- to any action against an "insured". turning it to us or by letting us know in writing of 3. Also, no action with respect to Coverage E can the date cancellation is to take effect. be brought against us until the obligation of 2. We may cancel this policy only for the reasons such "insured" has been determined by final stated below by letting you know in writing of judgment or agreement signed by us. the date cancellation takes effect. This can- G. Bankruptcy Of An "Insured" cellation notice may be delivered to you, or SAMPLEmailed to you at your mailing address shown in Bankruptcy or insolvency of an "insured" will not the Declarations. Proof of mailing will be suffi- relieve us of our obligations under this policy. cient proof of notice. H. Other Insurance a. When you have not paid the premium, we This insurance is excess over other valid and col- may cancel at any time by letting you know lectible insurance except insurance written specifi- at least 10 days before the date cancella- cally to cover as excess over the limits of liability tion takes effect. that apply in this policy. b. When this policy has been in effect for less I. Policy Period than 60 days and is not a renewal with us, This policy applies only to "bodily injury" or "prop- we may cancel for any reason by letting you erty damage" which occurs during the policy pe- know at least 10 days before the date can- riod. cellation takes effect.

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999 Page 21 of 22 c. When this policy has been in effect for 60 E. Assignment days or more, or at any time if it is a re- Assignment of this policy will not be valid unless newal with us, we may cancel: we give our written consent. (1) If there has been a material misrepre- F. Subrogation sentation of fact which if known to us would have caused us not to issue the An "insured" may waive in writing before a loss all policy; or rights of recovery against any person. If not waived, we may require an assignment of rights of (2) If the risk has changed substantially recovery for a loss to the extent that payment is since the policy was issued. made by us. This can be done by letting you know at If an assignment is sought, an "insured" must sign least 30 days before the date cancellation and deliver all related papers and cooperate with takes effect. us. d. When this policy is written for a period of Subrogation does not apply to Coverage F or more than one year, we may cancel for any Paragraph C. Damage To Property Of Others un- reason at anniversary by letting you know at der Section II – Additional Coverages. least 30 days before the date cancellation takes effect. G. Death 3. When this policy is canceled, the premium for If any person named in the Declarations or the the period from the date of cancellation to the spouse, if a resident of the same household, dies, expiration date will be refunded pro rata. the following apply: 4. If the return premium is not refunded with the 1. We insure the legal representative of the de- notice of cancellation or when this policy is re- ceased but only with respect to the premises turned to us, we will refund it within a reason- and property of the deceased covered under able time after the date cancellation takes ef- the policy at the time of death; and fect. 2. "Insured" includes: D. Nonrenewal a. An "insured" who is a member of your We may elect not to renew this policy. We may do household at the time of your death, but so by delivering to you, or mailing to you at your only while a resident of the "residence mailing address shown in the Declarations, written premises"; and notice at least 30 days before the expiration date b. With respect to your property, the person of this policy. Proof of mailing will be sufficient having proper temporary custody of the proof of notice. property until appointment and qualification of a legal representative.

SAMPLE