State Farm® Renters Policy

This policy is one of the broadest forms available today, and provides you with outstanding value for your insurance dollars. However, we want to point out that every policy contains limitations and exclusions. Please read your policy carefully, especially “Losses Not Insured” and all exclusions. State Farm® Renters Policy

Oklahoma H4-2136 RENTERS POLICY

TABLE OF CONTENTS AGREEMENT ...... 1 SECTION I – LOSS SETTLEMENT ...... 15 DEFINITIONS ...... 1 COVERAGE B – PERSONAL PROPERTY ...... 15 DEDUCTIBLE ...... 5 B1 – Limited Replacement Cost Loss Settlement ...... 15 SECTION I – PROPERTY COVERAGES ...... 5 B2 – Depreciated Loss Settlement ...... 16 COVERAGE B – PERSONAL PROPERTY ...... 5 SECTION I – CONDITIONS ...... 16 Property Covered ...... 5 Insurable Interest and Limit of Liability ...... 16 Special Limits of Liability ...... 5 Your Duties After Loss ...... 16 Property Not Covered ...... 6 Loss to a Pair or Set ...... 17 COVERAGE C – LOSS OF USE ...... 7 Appraisal ...... 17 Additional Living Expense ...... 7 Other Insurance ...... 18 Fair Rental Value ...... 7 Suit Against Us ...... 18 Prohibited Use ...... 7 Our Option ...... 18 Loss Payment ...... 18 SECTION I – ADDITIONAL COVERAGES ...... 8 Abandonment of Property ...... 19 Debris Removal ...... 8 Glass Replacement ...... 19 Temporary Repairs ...... 8 No Benefit to Bailee ...... 19 Trees, Shrubs, and Landscaping ...... 8 Recovered Property ...... 19 Building Additions and Alterations ...... 8 Assignment of Claim ...... 19 Property Removed ...... 8 SECTION II – LIABILITY COVERAGES ...... 19 Credit Card, Bank Fund Transfer Card, COVERAGE L – PERSONAL LIABILITY ...... 19 Forgery, and Counterfeit Money ...... 8 COVERAGE M – MEDICAL PAYMENTS TO Power Interruption ...... 9 OTHERS ...... 19 Refrigerated Products ...... 9 SECTION II – ADDITIONAL COVERAGES ...... 19 Arson Reward ...... 9 Claim Expenses ...... 20 Volcanic Action ...... 9 First Aid Expenses ...... 20 Collapse ...... 9 Damage to Property of Others ...... 20 Locks and Remote Devices ...... 10 SECTION II – EXCLUSIONS ...... 20 Fuel Oil Release ...... 10 SECTION II – CONDITIONS ...... 24 INFLATION COVERAGE ...... 11 Limit of Liability ...... 24 SECTION I – LOSSES INSURED ...... 11 Severability of Insurance ...... 24 COVERAGE B – PERSONAL PROPERTY ...... 11 Duties After Loss ...... 24 SECTION I – LOSSES NOT INSURED ...... 13 Coverage M Requirements ...... 25

©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 H4-2136 Payment of Claim – Coverage M or Damage Conformity to State Law ...... 27 to Property of Others ...... 25 Premium ...... 27 Suit Against Us ...... 25 Right to Inspect ...... 28 Bankruptcy of an Insured ...... 25 Joint and Individual Interests ...... 28 Other Insurance – Coverage L ...... 25 Change of Policy Address ...... 28 SECTION I AND SECTION II – CONDITIONS ...... 25 Electronic Delivery ...... 28 Our Rights Regarding Claim Information ...... 28 Policy Period ...... 25 Concealment or Fraud ...... 25 Duties Regarding Claim Information ...... 29 Liberalization Clause ...... 25 OPTIONAL POLICY PROVISIONS ...... 29 Waiver or Change of Policy Provisions ...... 25 Option BP – Business Property ...... 29 Cancellation ...... 26 Option BU – Business Pursuits ...... 29 Nonrenewal ...... 26 Option FA – Firearms ...... 30 Assignment of Policy ...... 26 Option IO – Incidental Business ...... 30 Subrogation and Reimbursement ...... 26 Option JF – Jewelry and Furs ...... 31 Death ...... 27 Option SG – Silverware and Goldware Theft ...... 31

©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 H4-2136 RENTERS POLICY AGREEMENT We agree to provide the insurance described in this policy: 3. we insure you on the basis your statements are true; and 1. based on your payment of premium, in a form ac- ceptable to us, for the coverages you chose; 4. this policy contains all of the agreements between you and us and any of our agents. 2. based on your compliance with all applicable provisions of this policy; and Unless otherwise indicated in the application, you state that during the five years preceding the time of your appli- 3. based on the information you have given us and cation for this insurance you have not had any losses, in- your statements in this agreement. sured or not. You agree, by acceptance of this policy, that: When you request changes to this policy, or the information or factors used to calculate the premium for this 1. you will pay premiums when due and comply with the policy changes during the policy period, we may adjust the provisions of this policy; premium in accordance with the change during the policy 2. the statements in this agreement are your state- period and you must pay any additional premium due ments and are true; within the time we specify.

DEFINITIONS We define the following words and phrases for use e. any pre-loss damage including wear, tear, or de- throughout this policy. These definitions apply to the sin- terioration; gular, plural, and possessive forms of these words and of the damaged part of the property. phrases. Defined words and phrases are printed in bold 2. “bodily injury” means physical injury, sickness, or italics. disease to a person. This includes required care, 1. “actual cash value” means the value of the dam- loss of services, and death resulting therefrom. aged part of the property at the time of loss, calcu- Bodily injury does not include: lated as the estimated cost to repair or replace such a. any of the following which are communicable: property, less a deduction to account for pre-loss de- disease, bacteria, parasite, virus, or other or- preciation. For this calculation, all components of this ganism, any of which are transmitted by any in- estimated cost including, but not limited to: sured to any other person; a. materials, including any tax; b. the actual or alleged exposure to any such disease, bacteria, parasite, virus, or other organism b. labor, including any tax; and by any insured to any other person; or c. overhead and profit; c. emotional distress, mental anguish, humiliation, are subject to depreciation. mental distress, mental injury, or any similar injury unless it arises out of actual physical injury The depreciation deduction may include such consid- to some person. erations as: 3. “building structure” means a structure fully en- a. age; closed with permanent walls and a roof. A permanent wall or roof does not include any kind of temporary b. condition; materials including but not limited to tarps, plastic c. reduction in useful life; sheeting, or other similar material. A structure that is otherwise fully enclosed with permanent walls and a d. obsolescence; and roof, that is undergoing repairs due to a recent loss

1 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 insured, using materials such as tarps, plastic sheet- d. the ownership, maintenance, or use of systems ing, or other similar material, is still considered a and equipment used to generate electrical building structure. power up to but not exceeding 125 percent of A building structure includes: the actual electrical power usage by the residence premises in the 12-month period prior to a. the foundation supporting the structure, includ- the date of the loss; or ing: e. ownership of the residence premises by the (1) slabs; person or organization shown in the Declara- tions as Additional Insured. (2) basement walls; 5. “Declarations” means the policy Declarations, any (3) crawl space walls; amended Declarations, the most recent renewal (4) footings; and Declarations, an Evidence of Insurance form, or any (5) gravel, stone, or sand, used as fill material endorsement changing any of these. and located not more than 12 inches di- 6. “diminution in value” means any reduction in the rectly below a slab described in item a.(1), value of any covered property prior to or following re- including water supply lines, domestic wa- pair or replacement as compared to the value of that ter pipes, and sewer pipes located within property immediately before the loss. this fill material; and 7. “dwelling” means that part of the building structure b. wall-to-wall carpeting attached to the structure. on the residence premises used as the primary private 4. “business” means any full-time or part-time activity, residence. trade, profession, employment, or occupation or a 8. “fungus” means any type or form of fungus, including commercial, mercantile, or industrial undertaking mold, mildew, mycotoxins, spores, scents, or byprod- of an economic nature. It does not matter whether it is continuous or regular, is a secondary or sup- ucts produced or released by fungi. plemental source of income, or is an insured’s prin- 9. “insured” means: cipal means of livelihood. Profit and profit motive are irrelevant. a. you; Business does not include: b. your relatives; and c. any other person under the age of 21 in the care a. volunteer activities for a not-for-profit or non- of a person described above. profit organization or public agency for which no money is received other than payment of ex- Under Section II, insured also means: penses; d. the person or organization legally responsible b. incidental and infrequent personal economic ac- for animals or watercraft to which this policy ap- tivity such as a hobby, garage or yard sale, or plies. However, the animal or watercraft must be traditional farm activities when the farm products owned by you or a person included in 9.b. or 9.c. are intended only for the personal use of the in- above. A person or organization using or having sured; custody of these animals or watercraft in the c. any occasional or part-time self-employed ac- course of a business, or without permission of tivity by a person under 19 years of age that in- the owner, is not an insured; and volves no employees or subcontracted independent contractors and is a type of activity e. with respect to any vehicle to which this policy normally performed by persons under 19 years applies, any person while engaged in your em- of age, including but not limited to, child care, ployment or the employment of a person in- lawn mowing, or paper delivery; cluded in 9.b. or 9.c. above.

2 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 10. “insured location” means: c. a “recreational or utility vehicle” while off an insured location. “Recreational or utility vehicle” a. the residence premises; means a motorized vehicle designed for recrea- b. the part of any other premises, other structures, tion or utility purposes, used principally off public and grounds used by you as a residence. This roads, and that is owned or leased by an in- includes premises, structures, and grounds you sured. This includes, but is not limited to, a mo- acquire while this policy is in effect for your use torized all-terrain vehicle, side-by-side vehicle, as a residence; utility work vehicle, amphibious vehicle, dune c. any premises used by you in connection with buggy, go-cart, golf cart, snowmobile, trailbike, the premises included in 10.a. or 10.b. above; minibike, and personal assistive mobility device. “Leased” does not include temporary rental; d. any part of a premises not owned by an insured d. a “locomotive” while off an insured location. but where an insured is temporarily residing; “Locomotive” means a self-propelled vehicle for e. land owned by or rented to an insured on which pulling or pushing freight or passenger cars on a one or two family dwelling is being constructed tracks that is large enough to carry a person and as a residence for an insured; is owned or leased by an insured. “Leased” f. individual or family cemetery plots or burial does not include temporary rental; vaults owned by an insured; e. a bulldozer, track loader, backhoe, high-hoe, g. any part of a premises occasionally rented to an trencher, grader, crane, self-propelled scraper, insured for purposes other than business; excavator, pipe-layer, cherry picker, telehandler, logging vehicle, mining vehicle, or road building h. vacant land owned by or rented to an insured. vehicle that is owned or leased by an insured For the purposes of this definition, vacant land while off an insured location. “Leased” does does not include: not include temporary rental; and (1) farm land; f. any vehicle while being towed or pushed by or (2) land containing a residence; or carried on a vehicle included in 12.a. through 12.e. above. (3) land containing fences, corrals, boat docks, tool sheds, barns, grain bins, and similar The following are not motor vehicles: structures, unless they are used solely for a. a boat, camper, home, or utility trailer not being the personal use of the insured; or towed or pushed by or carried on a vehicle in- i. farm land (without buildings), rented or held for cluded in 12.a. through 12.e. above; rental to others, but not to exceed a total of 500 b. a motorized land vehicle in storage on an in- acres, regardless of the number of locations. sured location not intended to be operated for an extended period of time and rendered inop- 11. “loss insured” means a loss as described under erable by placing the vehicle on blocks or re- SECTION I – LOSSES INSURED, COVERAGE B – moving parts essential for its operation; PERSONAL PROPERTY. c. a motorized golf cart while used for golfing pur- 12. “motor vehicle”, when used in Section II of this pol- poses; icy, means: d. a motorized vehicle or trailer designed to assist a. a land motor vehicle designed for travel on persons with disabilities that is not designed for public roads or subject to motor vehicle registra- travel on public roads or subject to motor vehicle tion; registration; or b. a trailer or semi-trailer designed for travel on e. a commercially manufactured two, three, or four public roads and subject to motor vehicle regis- wheeled personal conveyance powered only by tration; or assisted by an unmodified motor or engine

3 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 with a manufacturer’s power rating of no more where you reside and which is shown in the Decla- than 1 horsepower and capable of a top speed rations. of no more than 20 miles per hour. 18. “State Farm Companies” means one or more of the 13. “occurrence”, when used in Section II of this policy, following: means an accident, including accidental exposure to a. State Farm Mutual Automobile Insurance Com- conditions, which first results in: pany; a. bodily injury; or b. State Farm Fire and Casualty Company; and b. property damage; c. subsidiaries or affiliates of either 18.a. or 18.b. during the policy period. All bodily injury and prop- above. erty damage resulting from one accident, series of re- 19. “vacant dwelling” means: lated accidents, or from continuous and repeated exposure to the same general conditions is considered a. a dwelling: to be one occurrence. (1) that has not been occupied as a residence 14. “property damage” means physical damage to or for more than 30 consecutive days immedi- destruction of tangible property, including loss of use ately before the loss; and of this property. Theft or conversion of property by (2) where a predominant amount of personal any insured is not property damage. property has been removed or is absent 15. “relative” means any person related to you by: such that the dwelling is not functional as a habitual place of residence. a. blood; A dwelling will be considered occupied only if it b. adoption; is being used as a habitual place of residence c. marriage; or with your knowledge and approval. d. civil union, domestic partnership, or other substan- b. A dwelling that is under active construction will not be considered a vacant dwelling. A dwell- tially similar legal relationship that is recognized ing is under active construction when it is: and valid in the state where, and at the time when, the legal relationship was established; (1) being built as a new structure; and who resides primarily with you. (2) being repaired due to damage otherwise covered by this policy; or 16. “residence employee” means an employee of an insured, or an employee leased to an insured by a (3) undergoing substantial improvements, ren- labor leasing firm under an agreement between an ovations, remodeling, or modifications; insured and the labor leasing firm, who performs du- and the construction results in substantial con- ties, including household or domestic services, in tinuing activities by persons associated with the connection with the maintenance or use of the resi- construction project at the premises during the dence premises. This includes employees who per- relevant time periods. form similar duties elsewhere for you. This does not include employees while performing duties in con- 20. “we”, “us”, and “our” mean the Company shown in nection with the business of an insured. the Declarations. 17. “residence premises” means: 21. “you” and “your” mean the person or persons shown as “Named Insured” in the Declarations. If a a. the one, two, three, or four family dwelling, other “Named Insured” shown in the Declarations is a hu- structures and grounds; or man being, then you and your include: b. that part of any other building structure; a. a spouse of a “Named Insured”;

4 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 b. a party to a civil union with a “Named Insured”; if such relationship is recognized and valid in the state where, and at the time when, the legal relation- c. a domestic partner of a “Named Insured”; or ship was established, so long as the person in the d. a person in a substantially similar legal relation- above relationship resides primarily with that “Named ship with a “Named Insured”; Insured”.

DEDUCTIBLE In case of loss under this policy, we will pay, subject to Declarations. Deductibles will be applied per occurrence. specified policy limits, only that part of the amount of the Deductibles apply to specific losses as described in this loss that exceeds the deductible amount shown in the policy.

SECTION I – PROPERTY COVERAGES COVERAGE B – PERSONAL PROPERTY (2) of a student who is an insured while located at a residence away from the resi- 1. Property Covered. dence premises. a. We cover personal property owned or used by an Special Limits of Liability. These limits do not in- insured while it is anywhere in the world. This increase the Coverage B limit. The special limit for cludes structures not permanently attached to or each of the following categories is the total limit for otherwise forming a part of the realty. At your each loss for all property in that category: request, we will cover personal property: a. $200 on money, coins, and medals, including (1) owned by others while the property is on any of these that are a part of a collection, bank the part of the residence premises occu- notes, bullion, gold other than goldware, silver other than silverware, and platinum; pied exclusively by an insured; b. $1,500 on property used or intended for use in a (2) owned by a guest or a residence em- business, including merchandise held as sam- ployee, while the property is in any other ples or for sale or for delivery after sale, while on residence occupied by an insured; and the residence premises. This coverage is lim- (3) owned by roomers, boarders, tenants, and ited to $750 on such property away from the residence premises. other residents, any of whom are related to you. Electronic data processing system equipment or the recording or storage media used with that b. We cover personal property usually located at equipment is not included under this coverage, an insured’s residence, other than the resi- and is addressed in item c. below; dence premises, for up to $1,000 or 10% of the c. $10,000 on electronic data processing system Coverage B limit, whichever is greater. This lim- equipment used or intended for use in a busi- itation does not apply to personal property: ness, including but not limited to computers, tab- (1) in a newly acquired principal residence for lets, mobile personal communication equipment, the first 30 days after you start moving the global positioning systems, mobile personal elec- property there. If the residence premises is tronic devices used for the reproduction of sound, a newly acquired principal residence, per- and standard media or non-media equipment for sonal property in your immediate past prin- use with the above devices; cipal residence is not subject to this d. $1,500 on securities, checks, cashiers checks, limitation for the first 30 days after the in- travelers checks, money orders, gift certificates, ception of this policy; and gift cards, rechargeable debit cards, phone

5 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 cards, and other negotiable instruments, ac- (1) that are: counts, deeds, evidences of debt, letters of (a) not designed for travel on public credit, notes other than bank notes, manu- roads; and scripts, passports, and tickets; e. $1,500 on watercraft of all types and outboard (b) not subject to motor vehicle registra- motors, including their trailers, furnishings, and tion; equipment; (2) and that are: f. $1,500 on trailers not used with watercraft; (a) used primarily to service the insured g. $2,500 on stamps, trading cards, and comic location; or books, including any of these that are a part of a (b) designed for assisting persons with collection; disabilities; h. $2,500 for loss by theft of firearms; d. any electronic equipment, devices, or accesso- i. $2,500 for loss by theft of silverware and ries designed for the recording, reproduction, or goldware; storage of audio, video, photos, or other data that is permanently installed in or permanently j. $5,000 on any one article and $10,000 in the ag- fastened to an engine-propelled or motor-pro- gregate for loss by theft of any rug, carpet (ex- pelled vehicle or hard-wired directly to the vehi- cept wall-to-wall carpet), tapestry, wall-hanging, cle’s electrical system. We also do not cover or other similar article; removable products that may be used with the k. $1,000 on commercially manufactured two, equipment or devices described above, includ- three, or four wheeled personal conveyances ing but not limited to tapes, discs, videos, or powered only by or assisted by an unmodified memory cards while in an engine-propelled or motor or engine with a manufacturer’s power motor-propelled vehicle; rating of no more than 1 horsepower and capa- e. aircraft and parts. This does not apply to un- ble of a top speed of no more than 20 miles per manned aircraft systems used as model aircraft hour. This does not include such conveyances and operated solely for recreational or hobby that are: purposes; (1) designed for assisting persons with disabilities; f. property of roomers, boarders, tenants, and other residents not related to you; (2) not designed for travel on public roads; and g. property regularly rented or held for rental to oth- (3) not subject to motor vehicle registration; and ers by an insured. This does not apply to prop- l. $1,000 for loss by theft of jewelry, watches, fur erty of an insured: garments and garments trimmed with fur, and (1) in a sleeping room when the dwelling is precious and semi-precious stones. rented in part, for use as a permanent res- 2. Property Not Covered. We do not cover: idence, by either one or two full-time room- a. articles separately described and specifically in- ers or boarders; or sured in this or any other insurance; (2) on the residence premises if it is rented, b. animals, birds, or fish; either completely or in part, for exclusive use as a residence, for no more than 30 c. any engine-propelled or motor-propelled vehicle nights in the 12-month period prior to the or machine, including parts, designed for move- date of the loss; ment on land, except as provided in Special Lim- its of Liability, item k. However, we do cover h. property rented or held for rental to others away those vehicles or machines: from the residence premises;

6 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 i. any radio devices or transmitters, global posi- 1. Additional Living Expense. When a loss insured tioning systems, radar or laser detectors, an- causes the residence premises to become uninhab- tennas, and all other similar equipment that is itable, we will pay the reasonable and necessary in- permanently installed in or permanently fas- crease in cost incurred by an insured to maintain tened to an engine-propelled or motor-pro- their normal standard of living for up to 24 months. pelled vehicle or that is hard-wired directly to the Our payment is limited to incurred costs for the short- vehicle’s electrical system; est of: j. books or records of accounts receivable, ab- a. The time required to repair or replace the premises; stracts or other journals, architectural or tech- b. The time required for your household to settle nical drawings, card index systems, or other elsewhere; or records. This does not apply to any recording or storage media for electronic data processing. c. 24 months. We will cover the cost of blank books, cards, or This period of time is not limited by the expiration of other blank material plus the cost of labor you this policy. incur for transcribing or copying such records; We will not pay more than the limit of liability shown k. recording or storage media for electronic data in the Declarations for Coverage C – Loss of Use. processing that cannot be replaced with prop- Any normal expenses that are reduced or discontinued erty of like kind and quality on the current retail due to a loss insured will be subtracted from any amount owed. market; 2. Fair Rental Value. When a loss insured causes that l. purchased or created audio, video, photos, or part of the residence premises rented to others or other data that cannot be replaced with like kind held for rental by you to become uninhabitable, we will and quality on the current retail market and pay its fair rental value. Payment will be for the short- that is transferred or downloaded onto mobile est time required to repair or replace the part of the communication equipment, global positioning premises rented or held for rental, but not to exceed 12 systems, or electronic devices designed for the months. This period of time is not limited by the expi- recording, reproduction, or storage of audio, ration of this policy. Fair rental value will not include video, photos, or other data; any expense that does not continue while that part of m. contraband, or any property used in the course the residence premises rented or held for rental is un- of illegal consumption, possession, import, ex- inhabitable. port, or trade; 3. Prohibited Use. We will pay Additional Living Ex- n. outdoor hardscape property used for aesthetic pense and Fair Rental Value, for a continuous period purposes except as provided in SECTION I – not to exceed two weeks, beginning when a civil au- ADDITIONAL COVERAGES, Trees, Shrubs, thority issues an order of evacuation or prohibits your and Landscaping; or use of the residence premises, provided that: o. electronic currency, digital currency, virtual a. direct physical damage occurs to any property, currency, crypto-currency, and other similar me- other than covered property located on the residence premises, arising from a cause of loss diums of exchange. that would be a loss insured under this policy if COVERAGE C – LOSS OF USE the damage had occurred to property on the res- The most we will pay for the sum of all losses combined idence premises; under Additional Living Expense, Fair Rental Value, b. the residence premises is within one mile of and Prohibited Use is the limit of liability shown in the property damaged by a cause of loss identified Declarations for Coverage C – Loss of Use. in 3.a. above; and

7 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 c. the action of the civil authority is taken in re- commotion, Aircraft, Vehicles (not owned or oper- sponse to: ated by a resident of the residence premises), Van- dalism or malicious mischief, or Theft. (1) dangerous physical conditions resulting from the continuation of the cause of loss The limit for this coverage, including the removal of identified in 3.a. above; debris, will not exceed 10% of the amount shown in the Declarations for COVERAGE B – PERSONAL (2) dangerous physical conditions resulting from the damage caused by the cause of PROPERTY. We will not pay more than $750 for any loss identified in 3.a. above; or one outdoor tree, shrub, plant, or hardscape item, including debris removal expense. This coverage may (3) the need to gain free access to property increase the limit otherwise applicable. We will not damaged by the cause of loss identified in pay for any loss to property grown for business pur- 3.a. above. poses. We will not pay for loss or expense due to cancellation of a lease or agreement. 4. Building Additions and Alterations. We will pay, under Coverage B, for a loss insured to building ad- SECTION I – ADDITIONAL COVERAGES ditions, alterations, fixtures, improvements, or instal- The following Additional Coverages are subject to all the lations made or acquired at your expense. The terms, provisions, exclusions, and conditions of this policy. following conditions apply: 1. Debris Removal. We will pay the reasonable ex- a. This coverage applies only to that part of the resi- penses you incur in the removal of debris of covered dence premises used exclusively by you; and property damaged by a loss insured. This expense is included in the limit applying to the damaged prop- b. The limit for this coverage will not exceed 15% of erty. the limit of liability shown in the Declarations for COVERAGE B – PERSONAL PROPERTY. This When the amount payable for the property damage coverage does not increase the Coverage B limit. plus the debris removal exceeds the limit for damaged property, an additional 5% of that limit is avail- 5. Property Removed. We will pay for any accidental able for debris removal expense. This additional direct physical loss to covered property while being amount of insurance does not apply to SECTION I – removed from a premises endangered by a loss in- ADDITIONAL COVERAGES, Trees, Shrubs, and sured. This coverage also applies to the property for Landscaping. up to 30 days while removed. We will also pay for 2. Temporary Repairs. If damage is caused by a loss reasonable expenses incurred by you for the removal insured, we will pay the reasonable and necessary and return of the covered property. This coverage cost you incur for temporary repairs to covered prop- does not increase the limit applying to the property erty to protect the property from further immediate dam- being removed. age or loss. This coverage does not increase the 6. Credit Card, Bank Fund Transfer Card, Forgery, limit applying to the property being repaired. and Counterfeit Money. 3. Trees, Shrubs, and Landscaping. We will pay for a. We will pay up to $1,000 for: accidental direct physical loss to outdoor: (1) the legal obligation of an insured to pay be- a. trees, shrubs, live or artificial plants, and lawns; cause of the theft or unauthorized use of b. artificial grass; and credit cards and bank fund transfer cards is- c. hardscape property used for aesthetic purposes sued to or registered in an insured’s name. not permanently affixed to realty; If an insured has not complied with all terms and conditions under which the cards are is- on the residence premises, caused by the following sued, we will not pay for use by an insured perils: Fire or lightning, Explosion, Riot or civil or anyone else;

8 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (2) loss to an insured caused by forgery or al- must be used to protect the property insured from fur- teration of any check or negotiable instru- ther damage or this coverage is void. Power failure ment; and or mechanical failure does not include: (3) loss to an insured through acceptance in a. removal of a plug from an electrical outlet; or good faith of counterfeit United States or Canadian paper currency. b. turning off an electrical switch unless caused by a loss insured. No deductible applies to this coverage. This coverage does not increase the limit applying to We will not pay more than the limit stated above for forgery or alteration committed by any one the damaged property. person. This limit applies when the forgery or al- 9. Arson Reward. We will pay $1,000 for information teration involves one or more instruments in the that leads to an arson conviction in connection with a same loss. fire loss to property covered by this policy. This cov- b. We will not pay for loss arising out of business erage may increase the limit otherwise applicable. pursuits or dishonesty of an insured. However, the $1,000 limit will not be increased re- c. Defense: gardless of the number of persons providing information. (1) We may make any investigation and settle any claim or suit that we decide is appro- 10. Volcanic Action. We will pay for accidental direct priate. Our obligation to defend claims or physical loss to a covered building structure or cov- suits ends when the amount we pay for the ered property contained in a building structure re- loss equals our limit of liability. sulting from the eruption of a volcano when the loss (2) If claim is made or a suit is brought against is directly and immediately caused by: an insured for liability under the Credit a. airborne volcanic shock waves; Card or Bank Fund Transfer Card coverage, we will provide a defense. This de- b. ash, dust, or particulate matter; or fense is at our expense by counsel of our c. lava flow. choice. We will also pay for the removal of that ash, dust, or (3) We have the option to defend at our ex- particulate matter that has caused accidental direct pense an insured or an insured’s bank physical loss to a covered building structure or cov- against any suit for the enforcement of pay- ered property contained in a building structure. ment under the Forgery coverage. All volcanic eruptions that occur within any 168-hour 7. Power Interruption. We will pay for accidental direct period will be considered one volcanic eruption. physical loss caused directly or indirectly by a change of temperature that results from power interruption This coverage does not increase the limit applying to that takes place on the residence premises. The the damaged property. power interruption must be caused by a loss insured occurring on the residence premises. The power 11. Collapse. We will pay for accidental direct physical lines off the residence premises must remain ener- loss to covered property involving the abrupt, entire gized. This coverage does not increase the limit ap- collapse of a building structure or any part of a plying to the damaged property. building structure. 8. Refrigerated Products. Coverage B is extended to a. Collapse means the abrupt and entire falling cover the contents of deep freeze or refrigerated units down, caving in, or falling into pieces of a build- on the residence premises for loss due to power failing structure or any part of a building struc- ure or mechanical failure. If mechanical failure or ture. Collapse does not include any of the power failure is known to you, all reasonable means following:

9 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (1) settling, cracking, crumbling, deterioration, Loss to awnings, fences, patios, pavement, shrinking, bulging, expansion, sagging, swimming pools, underground pipes, flues, bowing, leaning, or bending; drains, cesspools, septic tanks, foundations (in- (2) substantial structural impairment; cluding slabs, basement walls, and crawl space walls), retaining walls, bulkheads, piers, wharfs, (3) imminent or threatened collapse; docks, trellises, or antennas and their support- (4) a building structure or any part of a building structures is not included under items (2), ing structure that is in danger of falling (3), and (4) immediately above unless the loss down or caving in; or is the direct and immediate result of the collapse (5) a part of a building structure that is stand- of a building structure or any part of a building ing even if: structure. (a) it has separated from another part of This coverage does not increase the limit applying to the building structure; or the damaged property. (b) it shows evidence of settling, cracking, crumbling, deterioration, shrinking, 12. Locks and Remote Devices. We will pay up to bulging, expansion, sagging, bowing, $1,000 for each loss for the reasonable expenses leaning, or bending. you incur to rekey, replace, recode, program, or re- program locks on exterior doors to the dwelling or b. The collapse must be directly and immediately other structures located on the residence premises caused by one or more of the following: when the keys or remote devices used with those (1) perils described in SECTION I – LOSSES doors are part of a covered theft loss. This cover- INSURED, COVERAGE B – PERSONAL age includes remote devices designed solely for lock- PROPERTY. These perils apply to building, unlocking, opening, or closing doors, including ing structures covered under Coverage B garage doors and gates. for loss insured by this Additional Cover- age; No deductible applies to this coverage. (2) decay or deterioration of, or damage from 13. Fuel Oil Release. We will pay up to $10,000 for each animals, birds, or insects to: loss for accidental direct physical loss to covered (a) a connector; or property caused by the abrupt and accidental escape (b) a structural member of a building of liquid fuel oil from a fixed household tank, appa- structure; ratus, or pipes that are part of a heating unit for the dwelling. This includes damage to covered property The decay, deterioration, or damage must resulting from an accidental spill or overflow of fuel oil be hidden from view and unknown to all in- in the course of filling a fixed household tank. sureds prior to the collapse; (3) weight of contents, equipment, animals, or This coverage includes surface clean up only. We people; will not pay for: (4) weight of ice, snow, sleet, or rain that col- a. the cost to repair or replace the fuel oil tank, ap- lects on a roof, porch, or deck; or paratus, and pipes; or (5) use of defective material or methods in the b. the cost of testing, monitoring, removing, treat- construction (includes remodeling or reno- ing, or detoxifying of soil, air, or water. vation) of the building structure, if the collapse occurs during the course of the This coverage does not increase the limit applying to construction of the building structure. the damaged property.

10 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 INFLATION COVERAGE 2. multiply the resulting factor by the limit of liability for The limit of liability shown in the Declarations for Cover- Coverage B. age B will be increased at the same rate as the increase The limit of liability will not be reduced to less than the in the Inflation Coverage Index shown in the Declarations. amounts shown in the Declarations. To find the limit on a given date: If during the term of this policy the Coverage B limit of lia- 1. divide the Index on that date by the Index as of the bility is changed at your request, the effective date of this effective date of this Inflation Coverage provision; Inflation Coverage provision is changed to coincide with then the effective date of such change.

SECTION I – LOSSES INSURED COVERAGE B – PERSONAL PROPERTY damage to personal property carried on the We will pay for accidental direct physical loss to the prop- exterior of the vehicle; or erty described in Coverage B caused by the following per- (4) a vehicle door or trunk lid being closed on ils, unless the loss is excluded or limited in SECTION I – personal property. LOSSES NOT INSURED or otherwise excluded or limited b. This peril does not include loss: in this policy. However, loss does not include and we will not pay for, any diminution in value. (1) to personal property that falls off a vehicle 1. Fire or lightning. and strikes the ground, any other surface, or any object; 2. Windstorm or hail. This peril does not include loss to property contained in a structure caused by rain, (2) caused by shifting of the load being carried snow, sleet, sand, or dust. This limitation does not ap- in or on a vehicle; or ply when the direct force of wind or hail damages the (3) to the vehicle itself unless the vehicle is structure causing an opening in a roof or wall and the rain, snow, sleet, sand, or dust enters through this property covered under COVERAGE B – opening. PERSONAL PROPERTY and the loss is caused by the weight, force, power, or This peril includes loss to watercraft of all types and movement of another vehicle. their trailers, furnishings, equipment, and outboard motors, only while inside a building structure. 7. Smoke, meaning abrupt and accidental damage from 3. Explosion. smoke. 4. Riot or civil commotion. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. 5. Aircraft, including self-propelled missiles and space- craft. 8. Vandalism or malicious mischief, meaning only willful and malicious damage to or destruction of 6. Vehicles, meaning accidental direct physical loss to covered property caused by the weight, force, power, property. or movement of a vehicle. 9. Theft, including attempted theft and loss of property a. This includes: from a known location when it is probable that the property has been stolen. (1) the impact of a vehicle; This peril does not include: (2) an object propelled from the tire or body of a vehicle; a. loss of a precious or semi-precious stone from its setting; (3) the upset or collision of a vehicle with a sta- tionary object or other vehicle, including b. loss caused by theft:

11 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (1) committed by an insured or by any other (2) watercraft of all types, including their fur- person regularly residing on the insured nishings, equipment, and outboard motors; location. Property of a student who is an or insured is covered while located at a resi- (3) trailers and campers designed to be pulled dence away from the residence premises, if by or carried on a vehicle. the theft is committed by a person who is If the residence premises is a newly acquired not an insured; principal residence, property in the immediate (2) in or to a dwelling under construction or of past principal residence will not be considered materials and supplies for use in the con- property away from the residence premises for struction until the dwelling is completed and the first 30 days after the inception of this policy. occupied; or 10. Falling objects. This peril does not include loss to (3) from the part of a residence premises property contained in a structure unless the roof or an rented to others: exterior wall of the structure is first damaged by a fall- (a) caused by a tenant, members of the ing object. Damage to the falling object itself is not tenant’s household, or the tenant’s included. employees unless the residence 11. Weight of ice, snow, or sleet that causes damage premises is rented, either completely to property contained in a structure. or in part, for exclusive use as a residence, for no more than 30 nights in 12. Abrupt and accidental discharge or overflow of the 12-month period prior to the date water, steam, or sewage from within a plumbing, of the loss; heating, air conditioning, or automatic fire protective sprinkler system, or from within a household appli- (b) of money, bank notes, bullion, gold, ance. goldware, silver, silverware, pewter- ware, platinum, coins, and medals; This peril does not include loss: (c) of securities, checks, cashiers checks, a. to the system or appliance from which the water, travelers checks, money orders, gift steam, or sewage escaped; certificates, gift cards, rechargeable debit cards, phone cards, and other ne- b. caused by or resulting from: gotiable instruments, accounts, deeds, (1) freezing; evidences of debt, letters of credit, notes other than bank notes, manu- (2) water or sewage from outside the resi- scripts, passports, tickets, and stamps; dence premises plumbing system that en- or ters through sewers or drains, or water that (d) of jewelry, watches, fur garments and enters into and overflows from within a garments trimmed with fur, and pre- sump pump, sump pump well, or any other cious and semi-precious stones; or system designed to remove subsurface water that is drained from the foundation c. loss caused by theft that occurs away from the area; or residence premises of: (1) property while at any other residence (3) the pressure from or presence of tree, owned, rented to, or occupied by an in- shrub, or plant roots; or sured, except while an insured is tempo- c. that occurs or develops over a period of time and rarily residing there. Property of a student is caused by or resulting from: who is an insured is covered while at a residence away from the residence prem- (1) condensation or the presence of humidity, ises; moisture, or vapor; or

12 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (2) seepage or leakage of water, steam, or a. loss to a portable hot tub or portable spa unless sewage that is: you have used reasonable care to prevent (a) continuous; freezing; or b. loss on the residence premises unless you (b) repeating; have used reasonable care to: (c) gradual; (1) maintain heat in the building structure at (d) intermittent; 55 degrees Fahrenheit or higher; or (e) slow; or (2) shut off the water supply and drain the sys- (f) trickling. tem and appliances of water. 13. Abrupt and accidental tearing asunder, cracking, However, if the building structure is protected burning, or bulging of a steam or hot water heat- by an automatic fire protective sprinkler system, ing system, an air conditioning system, an auto- you must use reasonable care to continue the matic fire protective sprinkler system, or an appliance water supply and maintain heat in the building for heating water. structure at 55 degrees Fahrenheit or higher for This peril does not include loss: coverage to apply. a. caused by or resulting from freezing; or 15. Abrupt and accidental damage to electrical appli- b. that occurs or develops over a period of time and ances, devices, fixtures, and wiring from an increase is caused by or resulting from: or decrease of artificially generated electrical current. We will pay up to $3,000 under this peril for each (1) condensation or the presence of humidity, damaged item described above. moisture, or vapor; or (2) seepage or leakage of water or steam that 16. Breakage of glass, meaning damage to personal is: property caused by breakage of glass that is a part of (a) continuous; a structure on the residence premises. We will not pay for loss or damage to the glass. (b) repeating; (c) gradual; 17. Wild bears or deer, meaning damage caused by wild bears or deer to property located in a building (d) intermittent; structure. (e) slow; or 18. Breakage of glass or safety glazing material that (f) trickling. is part of a building, storm door, or storm window and 14. Freezing of a plumbing, heating, air conditioning, or is covered under SECTION I – ADDITIONAL COV- automatic fire protective sprinkler system, or of a ERAGES, Building Additions and Alterations. household appliance. This peril does not include loss on the residence This peril does not include: premises if the dwelling is a vacant dwelling.

SECTION I – LOSSES NOT INSURED 1. We will not pay for, under any part of this policy, any (c) whether other causes acted concurrently or in any loss that would not have occurred in the absence of sequence with the excluded event to produce the one or more of the following excluded events. We will loss; or (d) whether the event occurs abruptly or grad- not pay for such loss regardless of: (a) the cause of ually, involves isolated or widespread damage, oc- the excluded event; or (b) other causes of the loss; or curs on or off the residence premises, arises from

13 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 any natural or external forces, or occurs as a result of any type of water containment, diversion, any combination of these: or flood control device); a. Ordinance or Law, meaning enforcement of (6) spray or surge from any of the items c.(1) any ordinance or law regulating the construc- through c.(5) described above, all whether tion, repair, or demolition of a building struc- driven by wind or not; ture or other structure. (7) water or sewage from outside the resi- b. Earth Movement, meaning the sinking, rising, dence premises plumbing system that en- shifting, expanding, or contracting of earth, all ters through sewers or drains, or water or regardless of whether combined with water, sewage that enters into and overflows from sewage, or any material carried by, or otherwise within a sump pump, sump pump well, or moved by the earth. Earth movement includes any other system designed to remove sub- but is not limited to: surface water that is drained from the foun- (1) earthquake; dation area; (2) landslide, mudslide, or mudflow; (8) water or sewage below the surface of the (3) sinkhole or subsidence; ground, including water or sewage that ex- erts pressure on, or seeps or leaks through (4) movement resulting from: a building structure, sidewalk, driveway, (a) improper compaction; swimming pool, or other structure; or (b) site selection; (9) material carried or otherwise moved by any (c) natural resource extraction activities; or of the water or sewage, as described in (d) excavation; items c.(1) through c.(8) above. (5) erosion; However, we will pay for any accidental direct physical loss by fire, explosion, or theft resulting (6) pressure by surface or subsurface earth or fill; or from water, provided the resulting loss is itself a loss insured. (7) any volcanic activity, except as specifically provided in SECTION I – ADDITIONAL d. Neglect, meaning neglect of the insured to use COVERAGES, Volcanic Action. all reasonable means to save and preserve property at and after the time of a loss, or when However, we will pay for any accidental direct property is endangered. physical loss by fire resulting from earth movement, provided the resulting fire loss is itself a e. War, including any undeclared war, civil war, in- loss insured. surrection, rebellion, revolution, warlike act by a c. Water, meaning: military force or military personnel, destruction or seizure or use for a military purpose, and in- (1) flood; cluding any consequence of any of these. Dis- (2) surface water. This does not include water charge of a nuclear weapon will be considered solely caused by the release of water from a warlike act even if accidental. a swimming pool, spigot, sprinkler system, f. Nuclear Hazard, meaning any nuclear reaction, hose, or hydrant; radiation, or radioactive contamination, all (3) waves (including tidal wave, tsunami, and whether controlled or uncontrolled or however seiche); caused, or any consequence of any of these. Loss caused by the nuclear hazard will not be (4) tides or tidal water; considered loss caused by fire, explosion, or (5) overflow of any body of water (including smoke. any release, escape, or rising of any body of water, or any water held, contained, con- However, we will pay for any accidental direct trolled, or diverted by a dam, levee, dike, or physical loss by fire resulting from the nuclear

14 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 hazard, provided the resulting fire loss is itself a This does not apply to an insured who did not loss insured. participate in, cooperate in, or contribute to causing or procuring the loss. g. Fungus, including: 2. We will not pay for, under any part of this policy, any (1) any loss of use or delay in rebuilding, re- loss consisting of one or more of the items below. Fur- pairing, or replacing covered property, in- ther, we will not pay for any loss described in para- cluding any associated cost or expense, graph 1. immediately above regardless of whether due to interference at the residence prem- one or more of the following: (a) directly or indirectly ises or location of the rebuilding, repair, or cause, contribute to, or aggravate the loss; or (b) oc- replacement, by fungus; cur before, at the same time, or after the loss or any other cause of the loss: (2) any remediation of fungus, including the a. conduct, act, failure to act, or decision of any cost to: person, group, organization, or governmental (a) remove the fungus from covered body whether intentional, wrongful, negligent, or property or to repair, restore, or re- without fault; place that property; or b. defect, weakness, inadequacy, fault, or un- soundness in: (b) tear out and replace any part of the building structure or other property (1) planning, zoning, development, surveying, as needed to gain access to the fun- or siting; gus; or (2) design, specifications, workmanship, repair, construction, renovation, remodeling, (3) the cost of any testing or monitoring of air grading, or compaction; or property to confirm the type, absence, presence, or level of fungus, whether per- (3) materials used in repair, construction, renovation, remodeling, grading, or compaction; or formed prior to, during, or after removal, repair, restoration, or replacement of covered (4) maintenance; property. of any property (including land, structures, or im- h. Intentional Losses. If any insured intention- provements of any kind) whether on or off the residence premises; or ally causes or procures a loss to property covered under this policy, we will not pay any c. weather conditions. insured for this loss. This applies regardless of However, we will pay for any resulting loss from items whether the insured is charged with or con- 2.a., 2.b., and 2.c. unless the resulting loss is itself a victed of a crime. Loss Not Insured as described in this Section.

SECTION I – LOSS SETTLEMENT Only the Loss Settlement Provision shown in the Decla- COVERAGES, COVERAGE B – PERSONAL rations applies. We will settle covered property losses PROPERTY, except for property listed in item b. according to the following. However, the valuation of any below, subject to the following: covered property losses does not include, and we will not pay, any amount for diminution in value. (1) until repair or replacement is completed, we will pay only the actual cash value of the COVERAGE B – PERSONAL PROPERTY damaged property; 1. B1 – Limited Replacement Cost Loss Settlement. (2) after repair or replacement is completed, a. We will pay the cost to repair or replace property we will pay the difference between the actual covered under SECTION I – PROPERTY cash value and the cost you have actually

15 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 and necessarily spent to repair or replace 2. B2 – Depreciated Loss Settlement. the property; and a. We will pay the actual cash value for property (3) if property is not repaired or replaced within covered under SECTION I – PROPERTY COV- two years after the date of loss, we will pay ERAGES, COVERAGE B – PERSONAL only the actual cash value. PROPERTY, except for property listed in item b. b. We will pay market value at the time of loss for: below. b. We will pay market value at the time of loss for: (1) antiques, fine arts, paintings, statuary, and similar articles which by their inherent na- (1) antiques, fine arts, paintings, statuary, and ture cannot be replaced with new articles; similar articles which by their inherent nature cannot be replaced with new articles; (2) articles whose age or history contribute substantially to their value including, but not (2) articles whose age or history contribute limited to, memorabilia, souvenirs, and col- substantially to their value including, but not limited to, memorabilia, souvenirs, and lectors items; and collectors items; and (3) property not useful for its intended purpose. (3) property not useful for its intended purpose. However, we will not pay an amount exceeding the However, we will not pay an amount exceeding the smallest of the following for items a. and b. above: smallest of the following for items a. and b. above: (1) our cost to replace at the time of loss; (1) our cost to replace at the time of loss; (2) the full cost of repair; (2) the full cost of repair; (3) any special limit of liability described in this (3) any special limit of liability described in this policy; or policy; or (4) any applicable Coverage B limit of liability. (4) any applicable Coverage B limit of liability.

SECTION I – CONDITIONS 1. Insurable Interest and Limit of Liability. Even if (2) the credit card company or bank if the loss in- more than one person has an insurable interest in the volves a credit card or bank fund transfer card; property covered, we will not be liable: b. protect the property from further damage or loss a. to the insured for an amount greater than the and also: insured’s interest; or (1) make reasonable and necessary temporary repairs required to protect the property; and b. for more than the applicable limit of liability. (2) keep an accurate record of repair expenses; 2. Your Duties After Loss. After a loss to which this insurance may apply, you must cooperate with us in c. prepare an inventory of damaged or stolen per- the investigation of the claim and also see that the sonal property: following duties are performed: (1) showing in detail the quantity, description, age, replacement cost, and amount of loss; a. give immediate notice to us or our agent and and also notify: (2) attaching all bills, receipts, and related doc- (1) the police if the loss is caused by theft, van- uments that substantiate the figures in the dalism, or any other criminal act; and inventory;

16 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 d. as often as we reasonably require: b. pay the difference between the depreciated (1) exhibit the damaged property; value of the property before the loss and the depreciated value of the property after the loss. (2) provide us with any requested records and documents and allow us to make copies; 4. Appraisal. If you and we fail to agree on the amount of loss, either party can demand that the amount of (3) while not in the presence of any other in- the loss be set by appraisal. Only you or we may sured: demand appraisal. A demand for appraisal must be (a) give statements; and in writing. You must comply with SECTION I – CONDI- TIONS, Your Duties After Loss before making a de- (b) submit to examinations under oath; and mand for appraisal. At least 10 days before demanding appraisal, the party seeking appraisal (4) produce employees, members of the in- must provide the other party with written, itemized sured’s household, or others for examina- documentation of a specific dispute as to the amount tion under oath to the extent it is within the of the loss, identifying separately each item being dis- insured’s power to do so; and puted. e. submit to us, within 60 days after the loss, your a. Each party will select a competent, disinterested signed, sworn proof of loss that sets forth, to the appraiser and notify the other party of the ap- best of your knowledge and belief: praiser’s identity within 20 days of receipt of the (1) the time and cause of loss; written demand for appraisal. (2) interest of the insured and all others in the b. The appraisers will then attempt to set the property involved and all encumbrances on amount of the loss of each item in dispute as the property; specified by each party, and jointly submit to (3) other insurance that may cover the loss; each party a written report of agreement signed by them. In all instances the written report of (4) changes in title or occupancy of the prop- agreement will be itemized and state separately erty during the term of this policy; the actual cash value, replacement cost, and if applicable, the market value of each item in dis- (5) specifications of any damaged structure pute. and detailed estimates for repair of the damage; The written report of agreement will set the amount of the loss of each item in dispute. (6) an inventory of damaged or stolen personal property described in 2.c.; c. If the two appraisers fail to agree upon the amount of the loss within 30 days, unless the pe- (7) receipts for additional living expenses in- riod of time is extended by mutual agreement, they curred and records supporting the fair will select a competent, disinterested umpire and rental value loss; and will submit their differences to the umpire. If the (8) evidence or affidavit supporting a claim un- appraisers are unable to agree upon an umpire der SECTION I – ADDITIONAL COVER- within 15 days: AGES, Credit Card, Bank Fund Transfer Card, Forgery, and Counterfeit Money (1) you or we may make a written application coverage, stating the amount and cause of for a judge of a court of record in the same loss. state and county (or city if the city is not within a county) where the residence 3. Loss to a Pair or Set. In case of loss to a pair or set, premises is located to select an umpire; we may choose to: (2) the party requesting the selection de- a. repair or replace any part to restore the pair or scribed in item c.(1) must provide the other set to its value before the loss; or party:

17 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (a) written notice of the intent to file, iden- g. You and we do not waive any rights by demand- tifying the specific location and identity ing or submitting to an appraisal, and retain all of the court at least 10 days prior to contractual rights to determine if coverage ap- submission of the written application; plies to each item in dispute. and h. Appraisal is only available to determine the (b) a copy of the written application; and amount of the loss of each item in dispute. The appraisers and the umpire have no authority to (3) a written report of agreement, as required in item b., signed by any two (appraisers or decide: appraiser and umpire) will set the amount (1) any other questions of fact; of the loss of each item in dispute. In all (2) questions of law; instances the written report of agreement will be itemized and state separately the (3) questions of coverage; actual cash value, replacement cost, and (4) other contractual issues; or if applicable, the market value of each item in dispute. (5) to conduct appraisal on a class-wide basis. d. To qualify as an appraiser or umpire for a loss to i. Appraisal is a non-judicial proceeding and does building property, a person must be one of the not provide for or require arbitration. Neither following and be licensed or certified as required party will be awarded attorney fees. The ap- by the applicable jurisdiction: praisal award may not be entered as a judgment (1) an engineer or architect with experience and in a court. training in building construction, repair, es- j. A party may not demand appraisal after that timating, or investigation of the type of party brings suit or action against the other party property damage in dispute; relating to the amount of loss. (2) an adjuster or public adjuster with experi- 5. Other Insurance. If a loss covered by this policy is ence and training in estimating the type of also covered by other insurance, we will pay only our property damage in dispute; or share of the loss. Our share is the proportion of the (3) a contractor with experience and training in loss that the applicable limit under this policy bears to the construction, repair, and estimating of the total amount of insurance covering the loss. the type of property damage in dispute. 6. Suit Against Us. No action will be brought against e. A person may not serve as an appraiser or umpire us unless there has been full compliance with all of if that person, any employee of that person, that the policy provisions. Any action by any party must person’s employer, or any employee of their em- be started within one year after the date of loss or ployer: damage. However, if the cause of loss or damage is burglary, theft, larceny, robbery, forgery, fraud, van- (1) has performed services for either party with dalism, malicious mischief, confiscation, wrongful respect to the claim at issue in the ap- conversion, disposal or concealment, the action must praisal; or be started within two years from the time the cause (2) has a financial interest in the outcome of of action accrues. the claim at issue in the appraisal. 7. Our Option. We may repair or replace any part of f. Each party will be responsible for the compen- the property damaged or stolen with similar property. sation of their selected appraiser. Reasonable Any property we pay for or replace becomes our expenses of the appraisal and the reasonable property. compensation of the umpire will be paid equally 8. Loss Payment. We will adjust all losses with you. by you and us. We will pay you unless some other person is named

18 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 in the policy or is legally entitled to receive payment. or organization holding, storing, or transporting prop- Loss will be payable: erty for a fee. This applies regardless of any other provision of this policy. a. 60 days after we receive your proof of loss and: 12. Recovered Property. If either you or we recover (1) reach agreement with you; or any property after loss settlement, that party must (2) there is a filing of an appraisal award with give the other prompt notice. At your option, you us; or may keep the property or we will return it to you. Oth- erwise, it will become our property. If you choose to b. 30 days after we receive your proof of loss and keep the property, the loss payment will be adjusted there is an entry of a final judgment. based on the amount you received for the recovered 9. Abandonment of Property. We need not accept property. any property abandoned by an insured. 13. Assignment of Claim. Assignment to another party 10. Glass Replacement. Loss for damage to glass of any of your rights or duties under this policy re- caused by a loss insured will be settled on the ba- garding any claim, or any part of any claim, will be sis of replacement with safety glazing materials when void and we will not recognize any such assignment, unless we give our written consent. However, once required by ordinance or law. you have complied with all policy provisions, you 11. No Benefit to Bailee. We will not recognize an as- may assign to another party, in writing, payment of signment or grant coverage for the benefit of a person claim proceeds otherwise payable to you.

SECTION II – LIABILITY COVERAGES COVERAGE L – PERSONAL LIABILITY 1. to a person on the insured location with the permis- If a claim is made or a suit is brought against an insured sion of an insured; for damages because of bodily injury or property dam- 2. to a person off the insured location, if the bodily in- age to which this coverage applies, caused by an occur- jury: rence, we will: a. arises out of a condition on the insured location 1. pay up to our limit of liability for the damages for or the ways immediately adjoining; which the insured is legally liable. We will not pay for criminal restitution; and b. is caused by the activities of an insured; 2. provide a defense at our expense by counsel of our c. is caused by a residence employee in the choice. We may make any investigation and settle course of the residence employee’s employ- any claim or suit that we decide is appropriate. Our ment by an insured; or obligation to defend any suit ends when the amount we pay for damages, to effect settlement or satisfy a d. is caused by an animal owned by or in the care judgment resulting from the occurrence, equals our of an insured; or limit of liability. We will not provide a defense to any 3. to a residence employee if the occurrence causing insured for criminal prosecution or proceedings. bodily injury occurs off the insured location and COVERAGE M – MEDICAL PAYMENTS TO OTHERS arises out of or in the course of the residence em- We will pay the necessary medical expenses incurred or ployee’s employment by an insured. medically ascertained within three years from the date of SECTION II – ADDITIONAL COVERAGES an accident causing bodily injury. Medical expenses means reasonable charges for medical, surgical, x-ray, The following Additional Coverages are subject to all the dental, ambulance, hospital, professional nursing, rehabil- terms, provisions, exclusions, and conditions of this policy. itation, pharmaceuticals, orthopedic devices, prosthetic We will pay for the following in addition to the limits of lia- devices, and funeral services. This coverage applies only: bility:

19 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 1. Claim Expenses. We will pay: (2) full cost of repair; or a. expenses we incur and costs taxed against an (3) the limit of liability shown in the Declara- insured in suits we defend. Taxed costs do not tions for Damage to Property of Others include attorney fees; for any one occurrence. b. premiums on bonds required in suits we defend, c. We will not pay for property damage: but not for bond amounts greater than the Cov- (1) for a loss that is recoverable under Section erage L limit. We are not obligated to apply for I of this policy. We also will not pay for any or furnish any bond; applicable deductible regardless of c. reasonable expenses an insured incurs at our whether the amount of the loss exceeds the request. This includes actual loss of earnings deductible; (but not loss of other income) up to $250 per day for aiding us in the investigation or defense of (2) caused intentionally by an insured 13 years of age or older; claims or suits; d. interest the insured is legally liable to pay on (3) to property, other than a rented golf cart, damages payable under Coverage L above be- owned by, or rented to an insured, a tenant fore a judgment, but only the interest on the of an insured, or a resident in your house- lesser of: hold; (1) that part of the damages we pay; or (4) arising out of: (2) the Coverage L limit; and (a) business pursuits; e. interest on the entire judgment that accrues after (b) any act or omission in connection with entry of the judgment and before we pay or ten- a premises an insured owns, rents, or der, or deposit in court that part of the judgment controls, other than the insured loca- that does not exceed the limit of liability that applies. tion; 2. First Aid Expenses. We will pay expenses for first (c) a condition on the insured location or aid to others incurred by an insured for bodily injury the ways immediately adjoining; or covered under this policy. We will not pay for first aid (d) the ownership, maintenance, or use of to you or any other insured. a motor vehicle, aircraft, or water- 3. Damage to Property of Others. craft, including airboat, air cushion, a. We will pay for property damage to property of personal watercraft, sail board, or sim- others caused by the activities of an insured. ilar type watercraft; or b. We will not pay more than the smallest of the (5) if a payment is made under COVERAGE L following amounts: – PERSONAL LIABILITY for the same (1) replacement cost at the time of loss; property damage.

SECTION II – EXCLUSIONS 1. Coverage L and Coverage M do not apply to: act or omission of the insured; a. bodily injury or property damage that: (2) was intended by the insured; or (1) was a result of a: (3) would have been expected by the insured based on a reasonable person standard. (a) willful and malicious; or However, exclusions a.(2) and a.(3) above do (b) criminal; not apply to bodily injury or property damage

20 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 resulting from the use of reasonable force to pro- acres, regardless of the number of loca- tect persons or property. tions; or Exclusions a.(1), a.(2), and a.(3) above apply to (4) to activities that are ordinarily incident to all bodily injury or property damage even if the: non-business pursuits; (1) bodily injury or property damage was d. bodily injury or property damage arising out of the rendering or failing to render professional sustained by a different person, entity, or services; property than was expected or intended; e. bodily injury or property damage arising out (2) bodily injury or property damage was of of any premises currently owned or rented to a different kind, quality, or degree than was any insured which is not an insured location. expected or intended; This exclusion does not apply to bodily injury to a residence employee arising out of and in (3) insured lacked the mental capacity to con- the course of the residence employee’s em- trol his or her conduct; ployment by an insured; (4) insured was not charged with or convicted f. bodily injury or property damage arising out of a criminal act or omission; or of the ownership, maintenance, use, loading, or (5) insured was impaired by drugs or alcohol; unloading of: b. bodily injury or property damage arising out (1) an aircraft. This exclusion does not apply of business pursuits of any insured, except as to the ownership, maintenance, use, loading, provided in item c. below. This exclusion does or unloading of unmanned aircraft systems not apply to activities that are ordinarily incident used as model aircraft: to non-business pursuits; (a) solely for recreational or hobby pur- c. bodily injury or property damage arising out poses; of the rental of any part of any premises by any (b) designed to be operated within the insured. This exclusion does not apply: visual line of sight of the operator and (1) to the rental of the residence premises: operated within the visual line of sight (a) either completely or in part, for exclu- of the operator; and sive use as a residence, for up to 30 (c) weighing not more than 55 pounds at nights in the 12-month period prior to the time of operation; the date of the loss; unless the ownership, maintenance, use, (b) in part, for use as a permanent resi- loading, or unloading of such aircraft re- dence, by either one or two full-time sults in: roomers or boarders; or (a) property damage to any aircraft; or (c) in part, as an office, school, studio, or (b) bodily injury or property damage re- private garage; sulting from interference with an air- (2) when the dwelling on the residence craft carrying people regardless of premises is a two, three, or four family whether the bodily injury or property dwelling and you occupy one part and rent damage is sustained by people or the other part to others; property on the aircraft or not; (3) to farm land (without buildings), rented to (2) a motor vehicle owned or operated by or others, but not to exceed a total of 500 rented or loaned to any insured; or

21 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (3) a watercraft: weapon will be considered a warlike act even if (a) owned by or rented to any insured if accidental; it has inboard or inboard-outdrive motor i. bodily injury to any insured within the meaning power of more than 50 horsepower; of part 9.a., 9.b., or 9.c. of the definition of insured. (b) owned by or rented to any insured if it is a sailing vessel, with or without This exclusion also applies to any claim made or auxiliary power, 26 feet or more in suit brought against any insured within the overall length; meaning of part 9.a., 9.b., or 9.c. of the definition (c) powered by one or more outboard mo- of insured to share damages with or repay tors with more than 25 total horse- someone else who may be obligated to pay power owned by any insured; damages because of the bodily injury sus- (d) designated as an airboat, air cushion, tained by any insured within the meaning of part or similar type of craft; or 9.a., 9.b., or 9.c. of the definition of insured; (e) owned by any insured if it is a per- j. any claim made or suit brought against any in- sonal watercraft using a water jet sured by: pump powered by an internal combus- (1) any person in the care of any insured be- tion engine as the primary source of cause of child care services provided by or propulsion. at the direction of: This exclusion does not apply to bodily injury (a) any insured; to a residence employee arising out of and in the course of the residence employee’s em- (b) any employee of any insured; or ployment by an insured. Exclusion f.(3) does (c) any other person actually or appar- not apply while the watercraft is on the resi- ently acting on behalf of any insured; dence premises; or g. bodily injury or property damage arising out (2) any person who makes a claim because of of: bodily injury to any person in the care of (1) the entrustment by any insured to any per- any insured because of child care services son; provided by or at the direction of: (2) the supervision by any insured of any (a) any insured; person; (b) any employee of any insured; or (3) any liability statutorily imposed on any in- (c) any other person actually or appar- sured; or ently acting on behalf of any insured. (4) any liability assumed through an unwritten This exclusion does not apply to the occasional or written agreement by any insured; child care services provided by any insured, or with regard to the ownership, maintenance, or to the part-time child care services provided by use of any aircraft, watercraft, or motor vehicle any insured under 19 years of age; not covered under Section II of this policy; k. bodily injury or property damage arising out h. bodily injury or property damage caused di- of an insured’s participation in, or preparation rectly or indirectly by war, including undeclared or practice for, any prearranged or organized war, or any warlike act including destruction, sei- race, speed or demolition contest, or similar zure, or use for a military purpose, or any con- competition involving a motorized land vehicle sequence of these. Discharge of a nuclear or motorized watercraft. This exclusion does not

22 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 apply to a sailing vessel less than 26 feet in (3) contamination or pollution arising out of ac- overall length with or without auxiliary power; tually or allegedly defective building mate- l. bodily injury or property damage arising out rials, nuclear substances, or waste. Waste of the use, sale, manufacture, distribution, deliv- includes materials to be recycled, recondi- tioned, or reclaimed; ery, transfer, or possession, by any insured, of any substance that is illegal or is a controlled n. bodily injury or property damage arising out substance under either federal or state law. of any actual, alleged, or threatened: This exclusion does not apply to the legitimate (1) sexual harassment, sexual molestation, or use of legally prescribed drugs, under either fed- sexual misconduct; eral or state law, by a person following orders of a licensed health care professional; (2) physical or mental abuse; or (3) corporal punishment; m. bodily injury or property damage arising out of the actual, alleged, or threatened presence, by the insured; discharge, dispersal, seepage, migration, re- o. bodily injury or property damage arising out lease, escape of, or exposure to contaminants of the actual, alleged, or threatened inhalation or pollutants at or from any source or location. of, ingestion of, contact with, exposure to, exist- Contaminants and pollutants include but are not ence of, or presence of any fungus at or from limited to any solid, liquid, gaseous, or thermal any source or location. irritant, including smoke from agricultural We also do not cover any loss, cost, or expense smudging or industrial operations, smog, soot, arising out of any: vapor, fumes, acids, alkalis, chemicals, patho- gens, noxious substances, fuel oil, asbestos, or (1) request, demand, order, or statutory or reg- lead. ulatory requirement that any insured or others test for, monitor, clean up, remove, This exclusion does not apply to bodily injury contain, treat, detoxify, neutralize, remedi- or property damage arising out of smoke or ate, dispose of, or in any way respond to or fumes caused by fire or explosion. assess the effects of fungus; or We also do not cover: (2) claim or suit for damages because of testing for, monitoring, cleaning up, removing, (1) any loss, cost, or expense arising out of containing, treating, detoxifying, neutraliz- any request, demand, order, or statutory or ing, remediating, disposing of, or in any regulatory requirement that any insured or way responding to or assessing the effects others test for, monitor, clean up, remove, of fungus; or contain, treat, detoxify, neutralize, remedi- ate, dispose of, or in any way respond to p. bodily injury or property damage arising out of or assess the effects of contaminants or the ownership, maintenance, or use of systems pollutants; and equipment used to generate electrical power exceeding 125 percent of the actual electrical (2) any loss, cost, or expense arising out of power usage by the residence premises in the any claim or suit by or on behalf of a gov- 12-month period prior to the date of the loss. ernmental authority for damages because of testing for, monitoring, cleaning up, re- 2. Coverage L does not apply to: moving, containing, treating, detoxifying, a. liability: neutralizing, remediating, disposing of, or (1) for your share of any loss assessment in any way responding to or assessing the charged against all members of any type of effects of contaminants or pollutants; or association of property owners; or

23 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (2) imposed on or assumed by any insured transferred. This includes but is not limited to through any unwritten or written contract or bodily injury or property damage arising out agreement. This exclusion does not apply of known, unknown, hidden, or alleged property to liability for damages that the insured conditions, problems, or defects. would have in absence of the contract or This exclusion also applies to any property dam- agreement; age to the sold or transferred real property itself. b. property damage to property owned by any in- However, this exclusion does not apply to: sured at the time of the occurrence; (1) bodily injury arising out of fire, smoke, ex- c. property damage to property rented to, used or plosion, electrocution, or carbon monoxide occupied by, or in the care, custody, or control of poisoning; or any insured at the time of the occurrence. This exclusion does not apply to property damage (2) property damage arising out of fire, caused by fire, smoke, explosion, or abrupt and smoke, or explosion. accidental damage from water; 3. Coverage M does not apply to bodily injury: d. bodily injury to a person eligible to receive any a. to a residence employee if it occurs off the in- benefits required to be provided or voluntarily sured location and does not arise out of or in provided by an insured under a workers’ compensation, non-occupational disability, or occu- the course of the residence employee’s em- pational disease law; ployment by an insured; e. bodily injury or property damage for which an b. to a person eligible to receive any benefits required insured under this policy is also an insured un- to be provided or voluntarily provided under any der a nuclear energy liability policy or would be workers’ compensation, non-occupational disabil- an insured but for its termination upon exhaus- ity, or occupational disease law; tion of its limit of liability. A nuclear energy liability policy is a policy issued by Nuclear Energy c. to a person other than a residence employee Liability Insurance Association, Mutual Atomic of an insured, regularly residing on any part of Energy Liability Underwriters, Nuclear Insur- the insured location; or ance Association of Canada, or any of their suc- d. from nuclear reaction, radiation, or radioactive cessors; or contamination, all whether controlled or uncon- f. bodily injury or property damage arising out trolled or however caused, or any consequence of any real property any insured has sold or of any of these.

SECTION II – CONDITIONS 1. Limit of Liability. The Coverage L limit is shown in 2. Severability of Insurance. This insurance applies the Declarations. This is the limit for all damages separately to each insured. This condition does not from each occurrence for the policy period in which the bodily injury or property damage first occurs, increase our limit of liability for any one occurrence. regardless of the number of insureds, claims made, 3. Duties After Loss. In case of an accident or occur- or persons injured. No additional limits or coverage will be available for the occurrence under any addi- rence, the insured must cooperate with us in the in- tional policy periods while this policy remains in force. vestigation, settlement, or defense of any claim or The Coverage M limit is shown in the Declarations. suit and also perform the following duties that apply. This is our limit for all medical expenses for bodily You must cooperate with us in seeing that these du- injury to one person as the result of one accident. ties are performed:

24 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 a. give written notice to us or our agent as soon as a. written proof of claim, under oath if required, as possible, which sets forth: soon as possible from the injured person, or (1) the identity of this policy and the insured; when appropriate, someone acting on behalf of that person; (2) reasonably available information on the time, place, and circumstances of the acci- b. the injured person’s submission to physical ex- dent or occurrence; and aminations by a physician selected by us when (3) names and addresses of any claimants and and as often as we reasonably require; and available witnesses; c. any authorizations from the injured person as b. immediately forward to us every notice, de- we may require. mand, summons, or other process relating to the 5. Payment of Claim – Coverage M or Damage to accident or occurrence; Property of Others. Payment under either of these c. at our request, assist in: is not an admission of liability by an insured or us. (1) making settlement; 6. Suit Against Us. No action will be brought against us unless there has been compliance with the policy (2) the enforcement of any right of contribution provisions. or indemnity against a person or organization who may be liable to an insured; No one will have the right to join us as a party to an (3) the conduct of suits and attend hearings action against an insured. Further, no action with re- and trials; and spect to Coverage L will be brought against us until the obligation of the insured has been determined by (4) securing and giving evidence and obtaining final judgment on the merits, after an actual trial or by the attendance of witnesses; an agreement signed by us; but we will not be liable d. under SECTION II – ADDITIONAL COVER- for damages that are not payable under the terms of AGES, Damage to Property of Others, exhibit this policy or that are in excess of the applicable Limit the damaged property if within the insured’s of Liability. control; and 7. Bankruptcy of an Insured. Bankruptcy or insol- e. the insured must not, except at the insured’s vency of an insured will not relieve us of our obliga- own cost, voluntarily make payments, assume obligations, or incur expenses. This does not ap- tion under this policy. ply to expense for first aid to others at the time 8. Other Insurance – Coverage L. This insurance is of the bodily injury. excess over any other valid and collectible insurance 4. Coverage M Requirements. We may require the fol- except insurance written specifically to cover as ex- lowing in regard to any Coverage M claim: cess over the limits of liability that apply in this policy.

SECTION I AND SECTION II – CONDITIONS 1. Policy Period. This policy applies only to loss under 3. Liberalization Clause. If we adopt any revision that Section I or bodily injury or property damage under would broaden coverage under this policy without ad- Section II that occurs during the period this policy is ditional premium, within 60 days prior to or during the in effect. period this policy is in effect, the broadened coverage 2. Concealment or Fraud. This policy is void as to you will immediately apply to this policy. and any other insured if you or any other insured 4. Waiver or Change of Policy Provisions. A waiver under this policy has intentionally concealed or mis- or change of any provision of this policy must be in represented any material fact or circumstance relat- writing by us to be valid. Our request for an appraisal ing to this insurance, whether before or after a loss. or examination does not waive any of our rights.

25 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 5. Cancellation. insured property or the occupancy a. You may cancel this policy at any time by giving thereof which substantially increases us advance written notice of the date cancella- any hazard insured against; tion is to take effect. We may waive the require- (e) a determination by the Insurance ment that the notice be in writing by confirming Commissioner that the continuation of the date and time of cancellation to you in writ- the policy would place the insurer in ing. violation of the insurance laws of this b. We may cancel this policy only for the reasons state; or stated in this condition. We will notify you in (f) conviction of the named insured of a writing of the date cancellation takes effect. This crime having as one of its necessary cancellation notice may be delivered to you, or elements an act increasing any haz- mailed to you at your mailing address shown in ard insured against. the Declarations. Proof of mailing will be sufficient proof of notice: We may cancel this policy by notifying you at least 30 days before the date cancella- (1) When you have not paid the premium, we may cancel at any time by notifying you at tion takes effect. least 10 days before the date cancellation (4) When this policy is written for a period takes effect. This condition applies whether longer than one year, we may cancel for the premium is payable to us or our agent any reason at anniversary. We may cancel or under any finance or credit plan. by notifying you at least 30 days before the (2) When this policy has been in effect for less date cancellation takes effect. than 45 business days and is not a renewal c. When this policy is cancelled, the premium for with us, we may cancel for any reason. We the period from the date of cancellation to the may cancel by notifying you at least 10 expiration date will be refunded. The return pre- days before the date cancellation takes ef- mium will be pro rata. fect. d. The return premium may not be refunded with (3) When this policy has been in effect for 45 the notice of cancellation or when this policy is business days or more, or at any time if it is returned to us. In such cases, we will refund it a renewal with us, we may cancel for the within a reasonable time after the date cancella- following reasons: tion takes effect. (a) discovery of fraud or material misrep- 6. Nonrenewal. We may elect not to renew this policy. resentation in the procurement of the insurance or with respect to any If we elect not to renew, a written notice will be deliv- claims submitted thereunder; ered to you, or mailed to you at your mailing address shown in the Declarations. The notice will be mailed (b) discovery of willful or reckless acts or or delivered at least 30 days before the expiration omissions on the part of the named in- date of this policy. Proof of mailing will be sufficient sured which increase any hazard insured against; proof of notice. (c) a change in the risk which substan- 7. Assignment of Policy. Assignment of this policy will tially increases any hazard insured be void and we will not recognize any such assign- against after insurance coverage has ment, unless we give our written consent. been issued or renewed; 8. Subrogation and Reimbursement. (d) violation of any local fire, health, a. Subrogation. safety, building, or construction regu- lation or ordinance with respect to any (1) Applicable to SECTION I:

26 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 If any insured to or for whom we make property until appointment and qualification payment under this policy has rights to re- of a legal representative. cover damages from another, those rights 10. Conformity to State Law. When a policy provision are transferred to us to the extent of our is in conflict with the applicable law of the state in payment. That insured must do everything which this policy is issued, the law of the state will necessary to secure our rights and must do apply. nothing after loss to impair them. However before a loss, an insured may waive in 11. Premium. writing all rights of recovery against any a. Unless as otherwise provided by an alternative person. payment plan in effect with the State Farm (2) Applicable to SECTION II: Companies with respect to the premium for this If any insured has rights to recover all or policy, the premium is due and payable in full on part of any payment we have made under or before the first day of the policy period shown this policy, those rights are transferred to in the most recently issued Declarations. us. An insured must do nothing after loss b. The renewal premium for this policy will be to impair them. At our request, an insured will bring suit or transfer those rights to us based upon the rates in effect, the coverages and help us enforce them. carried, the applicable limits, deductibles, and other elements that affect the premium applica- Subrogation does not apply under Section II to ble at the time of renewal. Medical Payments to Others or Damage to Property of Others. c. The premium for this policy may vary based b. Reimbursement. upon: If we make payment under this policy and any (1) the purchase of other products or services insured to or for whom we make payment re- from the State Farm Companies; covers or has recovered from another person or (2) the purchase of products or services from organization, then the insured to or for whom an organization that has entered into an we make payment must: agreement or contract with the State Farm (1) hold in trust for us the proceeds of any Companies. The State Farm Companies recovery; and do not warrant the merchantability, fitness, (2) reimburse us to the extent of our payment. or quality of any product or service offered or provided by that organization; or 9. Death. If you die: a. we insure the legal representative of the de- (3) an agreement, concerning the insurance provided by this policy, that the State Farm ceased. This condition applies only with respect to the premises and property of the deceased Companies has with an organization of covered under this policy at the time of death; which you are a member, employee, sub- scriber, licensee, or franchisee. b. insured includes: d. Your purchase of this policy may allow: (1) any member of your household who is an insured at the time of your death, but only (1) you to purchase or obtain certain cover- while a resident of the residence prem- ages, coverage options, coverage deductibles, coverage limits, or coverage terms on ises; and other products from the State Farm Com- (2) with respect to your property, the person panies, subject to their applicable eligibility having proper temporary custody of the rules; or

27 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (2) the premium or price for other products or a. you; or services purchased by you, including non- b. the United States Postal Service. insurance products or services, to vary. Such other products or services must be 15. Electronic Delivery. With your consent, we may provided by the State Farm Companies or electronically deliver any document or notice, includ- by an organization that has entered into an ing a notice to renew, nonrenew, or cancel, instead of agreement or contract with the State Farm mailing it or delivering it by other means. Proof of Companies. The State Farm Companies transmission will be sufficient proof of notice. do not warrant the merchantability, fitness, or quality of any product or service offered 16. Our Rights Regarding Claim Information. or provided by that organization. a. We will collect, receive, obtain, use, and retain 12. Right to Inspect. all the items described in item b.(1) below and a. We have the right but are not obligated to per- use and retain the information described in item form the following: b.(3)(b) below, in accordance with applicable federal and state laws and regulations and con- (1) make inspections and surveys of the insured location at any time; sistent with the performance of our business functions. (2) provide you with reports on conditions we find; or b. Subject to 16.a. above, we will not be restricted in or prohibited from: (3) recommend changes. (1) collecting, receiving, or obtaining records, Any inspections, surveys, reports, or recom- receipts, invoices, medical bills, medical mendations relate only to insurability and the records, wage information, salary infor- premiums to be charged. mation, employment information, data, and b. We do not: any other information; (1) make safety inspections; (2) using any of the items described in item (2) undertake to perform the duty of any per- b.(1) above; or son or organization to provide for the health (3) retaining: or safety of workers or the public; (a) any of the items in item b.(1) above; or (3) warrant that conditions are safe or health- ful; or (b) any other information we have in our possession as a result of our pro- (4) warrant that conditions comply with laws, cessing, handling, or otherwise re- regulations, codes, or standards. solving claims submitted under this This condition applies to us and to any rating, advi- policy. sory, rate service, or similar organization that makes c. We may disclose any of the items in b.(1) above insurance inspections, surveys, reports, or recom- and any of the information described in item mendations on our behalf. b.(3)(b) above: 13. Joint and Individual Interests. When there are two (1) to enable performance of our business or more Named Insureds, each acts for all to cancel functions; or change this policy. (2) to meet our reporting obligations to insur- 14. Change of Policy Address. We may change the ance regulators; Named Insured’s policy address as shown in the Declarations and in our records to the most recent (3) to meet our reporting obligations to insur- address provided to us by: ance data consolidators;

28 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 (4) to meet other obligations required by law; and 17. Duties Regarding Claim Information. An insured (5) as otherwise permitted by law. or a legal representative acting on an insured’s behalf must provide us with any requested authorizations re- d. Our rights under 16.a., 16.b., and 16.c. above lated to the claim. Our rights as set forth under Our will not be impaired by any: Rights Regarding Claim Information of this policy (1) authorization related to any claim submit- will not be impaired by any: ted under this policy; or a. authorization related to the claim; or (2) act or omission of an insured or a legal representative acting on an insured’s b. act or omission of an insured or a legal repre- behalf. sentative acting on an insured’s behalf.

OPTIONAL POLICY PROVISIONS Each Optional Policy Provision applies only as shown in (1) computer programming, architectural, en- the Declarations and is subject to all the terms, provi- gineering, or industrial design services; sions, exclusions, and conditions of this policy. (2) medical, surgical, dental, or other services Option BP – Business Property. The COVERAGE B – or treatment conducive to the health of per- PERSONAL PROPERTY, Special Limits of Liability, sons or animals; and item b., for property used or intended for use in a busi- (3) beauty or barber services or treatment; ness, including merchandise held as samples or for sale or for delivery after sale, is changed as follows: c. for bodily injury to a fellow employee of the insured injured in the course of employment; or The $1,500 limit is replaced with the amount shown in the Declarations for this option. d. when the insured is a member of the faculty or teaching staff of a school or college: Option BU – Business Pursuits. SECTION II – EXCLU- SIONS, item 1.b. is modified as follows: (1) for bodily injury or property damage arising out of the maintenance, use, loading, or 1. Section II coverage applies to the business pursuits unloading of: of an insured who is a: (a) draft or saddle animals, including ve- a. clerical office employee, salesperson, collector, hicles for use with them; or messenger; or (b) aircraft, motor vehicles, recreational b. teacher (except college, university, and professional athletic coaches), school principal, or motor vehicles or watercraft, air- school administrator; boats, air cushions, or personal watercraft which use a water jet pump while acting within the scope of the above listed powered by an internal combustion occupations. engine as the primary source of pro- 2. However, no coverage is provided: pulsion; a. for bodily injury or property damage arising owned, operated, or hired by or for the out of a business owned or financially con- insured or employer of the insured or trolled by the insured or by a partnership of used by the insured for the purpose of which the insured is a partner or member; instruction in the use thereof; or b. for bodily injury or property damage arising out of the rendering of or failure to render pro- (2) under Coverage M for bodily injury to a fessional services of any nature (other than student arising out of corporal punishment teaching or school administration). This exclu- administered by or at the direction of the in- sion includes but is not limited to: sured.

29 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 Option FA – Firearms. Firearms are covered for acci- 1. COVERAGE B – PERSONAL PROPERTY is ex- dental direct physical loss or damage. tended to include equipment, supplies, and furnishings usual and incidental to this business The limits for this option are shown in the Declarations. occupancy. This Optional Policy Provision does not The first amount is the limit for any one article; the sec- include electronic data processing system equipment ond amount is the aggregate limit for each loss. or the recording or storage media used with that The following additional provisions apply: equipment or merchandise held as samples or for sale or for delivery after sale. 1. We will not pay for any loss to the property described in this option either consisting of, or directly and im- The Option IO limits are shown in the Declarations. The first limit applies to property on the residence mediately caused by, one or more of the following: premises. The second limit applies to property while a. mechanical breakdown, wear and tear, or off the residence premises. These limits are in ad- gradual deterioration; dition to the COVERAGE B – PERSONAL PROP- ERTY, Special Limits of Liability on property used b. all animals, birds, or insects, including nesting, or intended for use in a business. infestation, gnawing, feeding, breeding, or discharge or release of waste products or secre- 2. Under Section II, the residence premises is not con- tions by animals, birds, or insects. However, we sidered business property because an insured oc- will pay for losses caused by wild bears or deer; cupies a part of it as an incidental business. c. any process of refinishing, renovating, or repair- 3. SECTION II – EXCLUSIONS, item 1.b. is replaced with the following: ing; d. dampness of atmosphere or extremes of tem- b. bodily injury or property damage arising out of business pursuits of any insured, peratures; except as provided in item c. below. This e. inherent defect or faulty manufacture; exclusion does not apply to activities that f. rust, fouling, or explosion of firearms; are ordinarily incident to non-business pursuits or to business pursuits of an in- g. breakage, marring, scratching, tearing, or dent- sured that are necessary or incidental to ing unless caused by fire, thieves, or accidents the use of the residence premises as an to conveyances; or incidental business; h. infidelity of an insured’s employees or persons 4. This insurance does not apply to: to whom the insured property may be entrusted or rented; a. bodily injury to an employee of an insured arising out of the residence premises as an in- 2. Our limit for loss by any Coverage B peril except theft cidental business other than to a residence is the limit shown in the Declarations for Coverage employee while engaged in the employee’s em- B, plus the aggregate limit; ployment by an insured; 3. Our limits for loss by theft are those shown in the b. bodily injury to a student arising out of cor- Declarations for this option. These limits apply in poral punishment administered by or at the di- lieu of the Coverage B theft limit; and rection of the insured; 4. Our limits for loss by any covered peril except those c. liability arising out of any acts, errors, or omissions of an insured, or any other person for whose acts in items 2. and 3. above are those shown in the Dec- an insured is liable, resulting from the preparation larations for this option. or approval of data, plans, designs, opinions, re- Option IO – Incidental Business. The coverage provided ports, programs, specifications, supervisory in- by this option applies only to that incidental business oc- spections, or engineering services in the conduct cupancy on file with us. of an insured’s incidental business involving data

30 H4-2136 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2017 processing, computer consulting, or computer pro- The limits for this option are shown in the Declarations. gramming; or The first amount is the limit for any one article; the sec- d. any claim made or suit brought against any in- ond amount is the aggregate limit for each loss. All provi- sured by: sions and exclusions of SECTION I – LOSSES INSURED, COVERAGE B – PERSONAL PROPERTY, (1) any person in the care of any insured be- Theft apply to Option JF. cause of child care services provided by or The following additional provisions apply: at the direction of: (a) any insured; 1. We will not pay for any loss to the property described in this option either consisting of, or directly and im- (b) any employee of any insured; or mediately caused by, one or more of the following: (c) any other person actually or appar- a. mechanical breakdown, wear and tear, gradual ently acting on behalf of any insured; deterioration; or b. all animals, birds or insects, including nesting, (2) any person who makes a claim because of infestation, gnawing, feeding, breeding, or dis- bodily injury to any person in the care of charge or release of waste products or secre- any insured because of child care services tions by animals, birds, or insects. However, we will pay for losses caused by wild bears or deer; provided by or at the direction of: c. inherent vice; or (a) any insured; d. seizure or destruction under quarantine or cus- (b) any employee of any insured; or toms regulations; (c) any other person actually or appar- 2. Our limit for loss by any Coverage B peril except theft ently acting on behalf of any insured. is the limit shown in the Declarations for Coverage Coverage M does not apply to any person indi- B, plus the aggregate limit; cated in d.(1) and d.(2) above. 3. Our limits for loss by theft are those shown in the Declarations for this option. These limits apply in This exclusion does not apply to the occasional lieu of the Coverage B theft limit; and child care services provided by any insured, or to the part-time child care services provided by 4. Our limits for loss by any covered peril except those any insured under 19 years of age. in items 2. and 3. above are those shown in the Dec- larations for this option. Option JF – Jewelry and Furs. Jewelry, watches, fur Option SG – Silverware and Goldware Theft. The COV- garments and garments trimmed with fur, precious and ERAGE B – PERSONAL PROPERTY, Special Limits of semi-precious stones, gold other than goldware, silver Liability, item i., for theft of silverware and goldware is in- other than silverware, and platinum are covered for acci- creased to be the amount shown in the Declarations for dental direct physical loss or damage. this option.