MID-STATE MUTUAL INSURANCE COMPANY Packet Complete 0406.pdf · MID-STATE MUTUAL INSURANCE COMPANY NOTIFICATION OF INFORMATION PRACTICES To help protect your right to privacy, you

MID-STATE MUTUAL INSURANCE COMPANY

HOMEOWNERS SPECIAL FORM POLICY

TABLE OF CONTENTS

PAGEGENERALNotification of Information Practices ............................... 1Consumer Complaints/Recoupment............................... 1

HOMEOWNERS POLICY SPECIAL FORMAgreement.......................................................................1Definitions........................................................................1Deductible .......................................................................2Section IPROPERTY COVERAGES

Coverage A - Dwelling .............................................. 2Coverage B - Other Structures .................................2Coverage C - Personal Property ..............................3Coverage D - Loss of Use ........................................4Additional Coverages................................................4

PERILS INSURED AGAINSTCoverage A – Dwelling andCoverage B – Other Structures ................................7Coverage C – Personal Property..............................8

EXCLUSIONS ...............................................................10CONDITIONS................................................................11

FORM CODE PAGESection IILIABILITY COVERAGES

Coverage E - Personal Liability ..............................14Coverage F - Medical Payments To Others........... 14

EXCLUSIONS............................................................... 14ADDITIONAL COVERAGES ........................................ 17CONDITIONS ............................................................... 18Sections I and IICONDITIONS ............................................................... 19

ADDITIONAL COVERAGES AND ENDORSEMENTSAdvisory Notice....................................... ANMS 03........... 1Limited Fungi, Wet or Dry Rot,Or Bacteria Coverage ............................. HO 04 27........... 1Workers' Compensation ResidenceEmployees Endorsement........................ HO 24 90........... 4Lender’s Loss Payable Endorsement..... 438BFU NS ....... 5Premises Alarm OrFire Protection System ........................... HO 04 16........... 6Inflation Guard ........................................ HO 04 46........... 6Special Provisions – California ............... HO 01 04........... 7Additional Time to File aReplacement Cost Claim ....................... MSM2051.......... 9

OPTIONAL COVERAGE ENDORSEMENTS *

* NOTE: Insurance is provided for each of the following optional Coverages only if indicated in theDeclarations with the form number shown and premium charged.

FORM CODE PAGE

Replacement Cost Composite .......................................... MS-RCC................................1Dwelling Replacement Cost..............................................MS-DRC................................1Personal Property Replacement Cost............................... MS-RPP ................................2Increased Limits For Coverage C and D-Section I ........... MS-CCD................................3Increased Limits On Certain Personal Property ............... MS-CPP ................................3Ordinance or Law Increased Amount of Coverage........... HO-0477 ............................... 4Personal Injury ................................................................. HO-2482 ............................... 4Scheduled Personal Property Endorsement..................... HO-0461 ............................... 7Earthquake Insurance Endorsement ................................ MS-EQ .................................. 9Earthquake - Reconstruction Cost Coverage ................... MS-EQR..............................10

Consult your agent for further information on these and other available options.

READ YOUR POLICY CAREFULLY

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

- 1 -Amended MSM 0406

MID-STATE MUTUAL INSURANCE COMPANY

NOTIFICATION OF INFORMATION PRACTICES

To help protect your right to privacy, you should be aware of the following:

When providing Homeowners or Dwelling Fire insurance, in addition to the information that we receive from our agent, wewill obtain a property inspection report. This report usually will include a diagram of your property and a color photograph,which is helpful in evaluating the exterior maintenance of the property. The inspector will estimate the age of the dwellingand comment on the roof construction, condition and the overall maintenance of the property. The inspector is instructedto not ask any questions of your neighbors. The inspection information is obtained solely from observations of the prem-ises.

You don’t need to be home at the time of the inspection. If a neighbor inquires, the inspector is instructed to identify him-self and explain his purpose, or he may leave his card to let you know that he has been there and what his purpose was.

You have a right to obtain a copy of the report or to be interviewed in connection with it. If you request in writing, we willprovide you with the name and address of the reporting company so that you can discuss any report that they make di-rectly with them. You have a right to discuss anything that you feel is inaccurate, and if any information is not accurate, tohave it corrected.

Sometimes insurance companies contact other companies that have provided coverage in the past to verify any lossesthat were processed during an earlier policy term. The Privacy Protection Act requires that you be made aware that thisinformation may be disclosed to another company if a request is made in writing.If we decline to provide coverage for you, you are entitled, upon written request, to know the specific items of informationconcerning your property that support the Company’s underwriting decision and the sources of the information. Your writ-ten request must be received by us within ninety business days of the date of the notice. We will respond to your requestwithin twenty-one business days of receipt of your request.

CONSUMER COMPLAINTS

IF YOU HAVE A COMPLAINT REGARDING YOUR POLICY, YOU SHOULD CON-TACT YOUR AGENT OR THE COMPANY FIRST. IF THIS FAILS TO PRODUCE A

SATISFACTORY SOLUTION TO THE PROBLEM, YOU CAN CONTACTTHE DEPARTMENT OF INSURANCE,

CONSUMER AFFAIRS DIVISION,300 S. SPRING STREET,

LOS ANGELES, CA 90013OR CALL TOLL FREE 1-800-927-HELP

RECOUPMENT

Section 1063 of the California Insurance Code created the California Insurance Guarantee Association. It is designed topay certain claims against insurance companies that become insolvent. The Association assesses the costs of suchclaims against financially sound insurance companies. They, in turn, are directed by Section 1063 to recover the as-sessments paid by them from their policyholders in the form of a surcharge.When assessments are made, the premium for your policy will include a Recoupment Surcharge which will be clearlyidentified on the Declarations page of your policy in accordance with Insurance Code Section 1063.

HomeownersPolicy

Special Form

HOMEOWNERSHO 00 03 10 00

HO 00 03 10 00 Copyright, Insurance Services Office, Inc., 1999- 1 -

HOMEOWNERS 3 – SPECIAL FORM

AGREEMENTWe will provide the insurance described in this policy inreturn for the premium and compliance with all applicableprovisions of this policy.

DEFINITIONSA. In this policy, "you" and "your" refer to the "named in-

sured" shown in the Declarations and the spouse if aresident of the same household. "We", "us" and "our"refer to the Company providing this insurance.

B. In addition, certain words and phrases are defined asfollows:1. "Aircraft Liability", "Hovercraft Liability", "Motor

Vehicle Liability" and "Watercraft Liability", subjectto the provisions in b. below, mean the following:a. Liability for "bodily injury" or "property damage"

arising out of the:(1) Ownership of such vehicle or craft by an "in-

sured";(2) Maintenance, occupancy, operation, use,

loading or unloading of such vehicle or craftby any person;

(3) Entrustment of such vehicle or craft by an"insured" to any person;

(4) Failure to supervise or negligent supervisionof any person involving such vehicle or craftby an "insured"; or

(5) Vicarious liability, whether or not imposed bylaw, for the actions of a child or minor involv-ing such vehicle or craft.

b. For the purpose of this definition:(1) Aircraft means any contrivance used or de-

signed for flight except model or hobby air-craft not used or designed to carry people orcargo;

(2) Hovercraft means a self-propelled motorizedground effect vehicle and includes, but is notlimited to, flarecraft and air cushion vehicles;

(3) Watercraft means a craft principally designedto be propelled on or in water by wind, en-gine power or electric motor; and

(4) Motor vehicle means a "motor vehicle" asdefined in 7. below.

2. "Bodily injury" means bodily harm, sickness or dis-ease, including required care, loss of services anddeath that results.

3. "Business" means:

a. A trade, profession or occupation engaged in ona full-time, part-time or occasional basis; or

b. Any other activity engaged in for money or othercompensation, except the following:

(1) One or more activities, not described in (2)through (4) below, for which no "insured" re-ceives more than $2,000 in total compensa-tion for the 12 months before the beginningof the policy period;

(2) Volunteer activities for which no money isreceived other than payment for expensesincurred to perform the activity;

(3) Providing home day care services for whichno compensation is received, other than themutual exchange of such services; or

(4) The rendering of home day care services toa relative of an "insured".

4. "Employee" means an employee of an "insured", oran employee leased to an "insured" by a labor leas-ing firm under an agreement between an "insured"and the labor leasing firm, whose duties are otherthan those performed by a "residence employee".

5. "Insured" means:a. You and residents of your household who are:

(1) Your relatives; or(2) Other persons under the age of 21 and in the

care of any person named above;b. A student enrolled in school full time, as defined

by the school, who was a resident of yourhousehold before moving out to attend school,provided the student is under the age of:

(1) 24 and your relative; or(2) 21 and in your care or the care of a person

described in a.(1) above; orc. Under Section II:

(1) With respect to animals or watercraft towhich this policy applies, any person or or-ganization legally responsible for these ani-mals or watercraft which are owned by youor any person included in a. or b. above. "In-sured" does not mean a person or organiza-tion using or having custody of these animalsor watercraft in the course of any "business"or without consent of the owner; or

(2) With respect to a "motor vehicle" to whichthis policy applies:



(a) Persons while engaged in your employ orthat of any person included in a. or b.above; or

(b) Other persons using the vehicle on an"insured location" with your consent.

Under both Sections I and II, when the word an im-mediately precedes the word "insured", the wordsan "insured" together mean one or more "insureds".

6. "Insured location" means:a. The "residence premises";b. The part of other premises, other structures and

grounds used by you as a residence; and(1) Which is shown in the Declarations; or(2) Which is acquired by you during the policy

period for your use as a residence;c. Any premises used by you in connection with a

premises described in a. and b. above;d. Any part of a premises:

(1) Not owned by an "insured"; and(2) Where an "insured" is temporarily residing;

e. Vacant land, other than farm land, owned by orrented to an "insured";

f. Land owned by or rented to an "insured" onwhich a one, two, three or four family dwelling isbeing built as a residence for an "insured";

g. Individual or family cemetery plots or burialvaults of an "insured"; or

h. Any part of a premises occasionally rented to an"insured" for other than "business" use.

7. "Motor vehicle" means:a. A self-propelled land or amphibious vehicle; orb. Any trailer or semitrailer which is being carried

on, towed by or hitched for towing by a vehicledescribed in a. above.

8. "Occurrence" means an accident, including con-tinuous or repeated exposure to substantially thesame general harmful conditions, which results,during the policy period, in:a. "Bodily injury"; orb. "Property damage".

9. "Property damage" means physical injury to, de-struction of, or loss of use of tangible property.

10. "Residence employee" means:a. An employee of an "insured", or an em-

ployee leased to an "insured" by a laborleasing firm, under an agreement betweenan "insured" and the labor leasing firm,whose duties are related to the maintenanceor use of the "residence premises", includinghousehold or domestic services; or

b. one who performs similar duties elsewherenot related to the "business" of an "insured".

A "residence employee" does not include a tempo-rary employee who is furnished to an "insured" tosubstitute for a permanent "residence employee" onleave or to meet seasonal or short-term workloadconditions.

11. "Residence premises" means:a. The one family dwelling where you reside;b. The two, three or four family dwelling where you

reside in at least one of the family units; orc. That part of any other building where you reside;and which is shown as the "residence premises" inthe Declarations."Residence premises" also includes other structuresand grounds at that location.

DEDUCTIBLEUnless otherwise noted in this policy, the following de-ductible provision applies:Subject to the policy limits that apply, we will pay only thatpart of the total of all loss payable under Section I that ex-ceeds the deductible amount shown in the Declarations.

SECTION I – PROPERTY COVERAGESA. Coverage A – Dwelling

1. We cover:a. The dwelling on the "residence premises" shown

in the Declarations, including structures attachedto the dwelling; and

b. Materials and supplies located on or next to the"residence premises" used to construct, alter orrepair the dwelling or other structures on the"residence premises".

2. We do not cover land, including land on which thedwelling is located.

B. Coverage B – Other Structures1. We cover other structures on the "residence prem-

ises" set apart from the dwelling by clear space.This includes structures connected to the dwellingby only a fence, utility line, or similar connection.

2. We do not cover:a. Land, including land on which the other struc-

tures are located;b. Other structures rented or held for rental to any

person not a tenant of the dwelling, unless usedsolely as a private garage;

c. Other structures from which any "business" isconducted; or



d. Other structures used to store "business" prop-erty. However, we do cover a structure that con-tains "business" property solely owned by an"insured" or a tenant of the dwelling providedthat "business" property does not include gase-ous or liquid fuel, other than fuel in a perma-nently installed fuel tank of a vehicle or craftparked or stored in the structure.

3. The limit of liability for this coverage will not bemore than 10% of the limit of liability that applies toCoverage A. Use of this coverage does not reducethe Coverage A limit of liability.

C. Coverage C – Personal Property1. Covered Property

We cover personal property owned or used by an"insured" while it is anywhere in the world. After aloss and at your request, we will cover personalproperty owned by:a. Others while the property is on the part of the

"residence premises" occupied by an "insured";or

b. A guest or a "residence employee", while theproperty is in any residence occupied by an "in-sured".

2. Limit For Property At Other ResidencesOur limit of liability for personal property usually lo-cated at an "insured's" residence, other than the"residence premises", is 10% of the limit of liabilityfor Coverage C, or $1,000, whichever is greater.However, this limitation does not apply to personalproperty:a. Moved from the "residence premises" because it

is being repaired, renovated or rebuilt and is notfit to live in or store property in; or

b. In a newly acquired principal residence for 30days from the time you begin to move the prop-erty there.

3. Special Limits Of LiabilityThe special limit for each category shown below is

the total limit for each loss for all property in thatcategory. These special limits do not increase theCoverage C limit of liability.a. $200 on money, bank notes, bullion, gold other

than goldware, silver other than silverware, plati-num other than platinumware, coins, medals,scrip, stored value cards and smart cards.

b. $1,500 on securities, accounts, deeds, evi-dences of debt, letters of credit, notes other thanbank notes, manuscripts, personal records,passports, tickets and stamps. This dollar limitapplies to these categories regardless of themedium (such as paper or computer software)on which the material exists.This limit includes the cost to research, replaceor restore the information from the lost or dam-aged material.

c. $1,500 on watercraft of all types, including theirtrailers, furnishings, equipment and outboardengines or motors.

d. $1,500 on trailers or semitrailers not used withwatercraft of all types.

e. $1,500 for loss by theft of jewelry, watches, furs,precious and semiprecious stones.

f. $2,500 for loss by theft of firearms and relatedequipment.

g. $2,500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware, plati-numware, platinum-plated ware and pewter-ware. This includes flatware, hollowware, teasets, trays and trophies made of or including sil-ver, gold or pewter.

h. $2,500 on property, on the "residence prem-ises", used primarily for "business" purposes.

i. $500 on property, away from the "residencepremises", used primarily for "business" pur-poses. However, this limit does not apply to lossto electronic apparatus and other property de-scribed in Categories j. and k. below.

j. $1,500 on electronic apparatus and accessories,while in or upon a "motor vehicle", but only if theapparatus is equipped to be operated by powerfrom the "motor vehicle's" electrical system whilestill capable of being operated by other powersources.Accessories include antennas, tapes, wires, re-cords, discs or other media that can be usedwith any apparatus described in this Category j.

k. $1,500 on electronic apparatus and ac-cessories used primarily for "business" whileaway from the "residence premises" and not inor upon a "motor vehicle". The apparatus mustbe equipped to be operated by power from the"motor vehicle's" electrical system while still ca-pable of being operated by other power sources.Accessories include antennas, tapes, wires, re-cords, discs or other media that can be usedwith any apparatus described in this Category k.

4. Property Not CoveredWe do not cover:a. Articles separately described and specifically

insured, regardless of the limit for which they areinsured, in this or other insurance;

b. Animals, birds or fish;c. "Motor vehicles".

(1) This includes:(a) Their accessories, equipment and parts;

or



(b) Electronic apparatus and accessoriesdesigned to be operated solely by powerfrom the electrical system of the "motorvehicle". Accessories include antennas,tapes, wires, records, discs or other me-dia that can be used with any apparatusdescribed above.

The exclusion of property described in (a)and (b) above applies only while such prop-erty is in or upon the "motor vehicle".

(2) We do cover "motor vehicles" not required tobe registered for use on public roads or prop-erty which are:

(a) Used solely to service an "insured's" resi-dence; or

(b) Designed to assist the handicapped;d. Aircraft meaning any contrivance used or de-

signed for flight including any parts whether ornot attached to the aircraft.We do cover model or hobby aircraft not used ordesigned to carry people or cargo;

e. Hovercraft and parts. Hovercraft means a self-propelled motorized ground effect vehicle andincludes, but is not limited to, flarecraft and aircushion vehicles;

f. Property of roomers, boarders and other ten-ants, except property of roomers and boardersrelated to an "insured";

g. Property in an apartment regularly rented or heldfor rental to others by an "insured", except asprovided in E.10. Landlord's Furnishings underSection I – Property Coverages;

h. Property rented or held for rental to others offthe "residence premises";

i. "Business" data, including such data stored in:(1) Books of account, drawings or other paper

records; or(2) Computers and related equipment.We do cover the cost of blank recording or stor-age media, and of prerecorded computer pro-grams available on the retail market;

j. Credit cards, electronic fund transfer cards oraccess devices used solely for deposit, with-drawal or transfer of funds except as provided inE.6. Credit Card, Electronic Fund Transfer CardOr Access Device, Forgery And CounterfeitMoney under Section I – Property Coverages; or

k. Water or steam.D. Coverage D – Loss Of Use

The limit of liability for Coverage D is the total limit forthe coverages in 1. Additional Living Expense, 2. FairRental Value and 3. Civil Authority Prohibits Use below.

1. Additional Living ExpenseIf a loss covered under Section I makes that part

of the "residence premises" where you reside not fitto live in, we cover any necessary increase in livingexpenses incurred by you so that your householdcan maintain its normal standard of living.

Payment will be for the shortest time required torepair or replace the damage or, if you permanentlyrelocate, the shortest time required for your house-hold to settle elsewhere.

2. Fair Rental ValueIf a loss covered under Section I makes that part

of the "residence premises" rented to others or heldfor rental by you not fit to live in, we cover the fairrental value of such premises less any expensesthat do not continue while it is not fit to live in.Payment will be for the shortest time required to re-pair or replace such premises.

3. Civil Authority Prohibits UseIf a civil authority prohibits you from use of the "resi-dence premises" as a result of direct damage toneighboring premises by a Peril Insured Against, wecover the loss as provided in 1. Additional LivingExpense and 2. Fair Rental Value above for nomore than two weeks.

4. Loss Or Expense Not CoveredWe do not cover loss or expense due to cancella-tion of a lease or agreement.

The periods of time under 1. Additional Living Expense,2. Fair Rental Value and 3. Civil Authority Prohibits Useabove are not limited by expiration of this policy.

E. Additional Coverages1. Debris Removal

a. We will pay your reasonable expense for theremoval of:

(1) Debris of covered property if a Peril InsuredAgainst that applies to the damaged propertycauses the loss; or

(2) Ash, dust or particles from a volcanic erup-tion that has caused direct loss to a buildingor property contained in a building.

This expense is included in the limit of liabilitythat applies to the damaged property. If theamount to be paid for the actual damage to theproperty plus the debris removal expense ismore than the limit of liability for the damagedproperty, an additional 5% of that limit is avail-able for such expense.

b. We will also pay your reasonable expense, up to$1,000, for the removal from the "residencepremises" of:

(1) Your tree(s) felled by the peril of Windstormor Hail or Weight of Ice, Snow or Sleet; or



(2) A neighbor's tree(s) felled by a Peril InsuredAgainst under Coverage C;

provided the tree(s):(3) Damage(s) a covered structure; or(4) Does not damage a covered structure,

but:(a) Block(s) a driveway on the "residence

premises" which prevent(s) a "motor ve-hicle", that is registered for use on publicroads or property, from entering or leav-ing the "residence premises"; or

(b) Block(s) a ramp or other fixture designedto assist a handicapped person to enteror leave the dwelling building.

The $1,000 limit is the most we will pay in anyone loss regardless of the number of fallentrees. No more than $500 of this limit will bepaid for the removal of any one tree.This coverage is additional insurance.

2. Reasonable Repairsa. We will pay the reasonable cost incurred by you

for the necessary measures taken solely to pro-tect covered property that is damaged by a PerilInsured Against from further damage.

b. If the measures taken involve repair to otherdamaged property, we will only pay if that prop-erty is covered under this policy and the damageis caused by a Peril Insured Against. This cov-erage does not:

(1) Increase the limit of liability that applies tothe covered property; or

(2) Relieve you of your duties, in case of a lossto covered property, described in B.4. underSection I – Conditions.

3. Trees, Shrubs And Other PlantsWe cover trees, shrubs, plants or lawns, on the"residence premises", for loss caused by the follow-ing Perils Insured Against:a. Fire or Lightning;b. Explosion;c. Riot or Civil Commotion;d. Aircraft;e. Vehicles not owned or operated by a resi-

dent of the "residence premises";f. Vandalism or Malicious Mischief; org. Theft.We will pay up to 5% of the limit of liability that ap-plies to the dwelling for all trees, shrubs, plants orlawns. No more than $500 of this limit will be paidfor any one tree, shrub or plant. We do not coverproperty grown for "business" purposes.This coverage is additional insurance.

4. Fire Department Service ChargeWe will pay up to $500 for your liability assumed bycontract or agreement for fire department chargesincurred when the fire department is called to saveor protect covered property from a Peril InsuredAgainst. We do not cover fire department servicecharges if the property is located within the limits ofthe city, municipality or protection district furnishingthe fire department response.This coverage is additional insurance. No deducti-ble applies to this coverage.

5. Property RemovedWe insure covered property against direct loss fromany cause while being removed from a premisesendangered by a Peril Insured Against and for nomore than 30 days while removed.This coverage does not change the limit of liabilitythat applies to the property being removed.

6. Credit Card, Electronic Fund Transfer Card OrAccess Device, Forgery And Counterfeit Moneya. We will pay up to $500 for:

(1) The legal obligation of an "insured" to paybecause of the theft or unauthorized use ofcredit cards issued to or registered in an "in-sured's" name;

(2) Loss resulting from theft or unauthorized useof an electronic fund transfer card or accessdevice used for deposit, withdrawal or trans-fer of funds, issued to or registered in an "in-sured's" name;

(3) Loss to an "insured" caused by forgery oralteration of any check or negotiable instru-ment; and

(4) Loss to an "insured" through acceptance ingood faith of counterfeit United States or Ca-nadian paper currency.

All loss resulting from a series of acts committedby any one person or in which any one person isconcerned or implicated is considered to be oneloss.This coverage is additional insurance. No de-ductible applies to this coverage.

b. We do not cover:(1) Use of a credit card, electronic fund transfer

card or access device:(a) By a resident of your household;(b) By a person who has been entrusted with

either type of card or access device; or(c) If an "insured" has not complied with all

terms and conditions under which thecards are issued or the devices ac-cessed; or

(2) Loss arising out of "business" use or dishon-esty of an "insured".



c. If the coverage in a. above applies, the followingdefense provisions also apply:

(1) We may investigate and settle any claim orsuit that we decide is appropriate. Our dutyto defend a claim or suit ends when theamount we pay for the loss equals our limit ofliability.

(2) If a suit is brought against an "insured" forliability under a.(1) or (2) above, we will pro-vide a defense at our expense by counsel ofour choice.

(3) We have the option to defend at our expensean "insured" or an "insured's" bank againstany suit for the enforcement of payment un-der a.(3) above.

7. Loss Assessmenta. We will pay up to $1,000 for your share of loss

assessment charged during the policy periodagainst you, as owner or tenant of the "resi-dence premises", by a corporation or associationof property owners. The assessment must bemade as a result of direct loss to property,owned by all members collectively, of the typethat would be covered by this policy if owned byyou, caused by a Peril Insured Against underCoverage A, other than:

(1) Earthquake; or(2) Land shock waves or tremors before, during

or after a volcanic eruption.The limit of $1,000 is the most we will pay withrespect to any one loss, regardless of the num-ber of assessments. We will only apply one de-ductible, per unit, to the total amount of any oneloss to the property described above, regardlessof the number of assessments.

b. We do not cover assessments charged againstyou or a corporation or association of propertyowners by any governmental body.

c. Paragraph P. Policy Period under SectionI – Conditions does not apply to this coverage.

This coverage is additional insurance.8. Collapse

a. With respect to this Additional Coverage:(1) Collapse means an abrupt falling down or

caving in of a building or any part of a build-ing with the result that the building or part ofthe building cannot be occupied for its cur-rent intended purpose.

(2) A building or any part of a building that is indanger of falling down or caving in is not con-sidered to be in a state of collapse.

(3) A part of a building that is standing is notconsidered to be in a state of collapse even ifit has separated from another part of thebuilding.

(4) A building or any part of a building that isstanding is not considered to be in a state ofcollapse even if it shows evidence of crack-ing, bulging, sagging, bending, leaning, set-tling, shrinkage or expansion.

b. We insure for direct physical loss to coveredproperty involving collapse of a building or anypart of a building if the collapse was caused byone or more of the following:

(1) The Perils Insured Against named underCoverage C;

(2) Decay that is hidden from view, unless thepresence of such decay is known to an "in-sured" prior to collapse;

(3) Insect or vermin damage that is hidden fromview, unless the presence of such damage isknown to an "insured" prior to collapse;

(4) Weight of contents, equipment, animals orpeople;

(5) Weight of rain which collects on a roof; or(6) Use of defective material or methods in con-

struction, remodeling or renovation if the col-lapse occurs during the course of the con-struction, remodeling or renovation.

c. Loss to an awning, fence, patio, deck, pave-ment, swimming pool, underground pipe, flue,drain, cesspool, septic tank, foundation, retain-ing wall, bulkhead, pier, wharf or dock is not in-cluded under b.(2) through (6) above, unless theloss is a direct result of the collapse of a buildingor any part of a building.

d. This coverage does not increase the limit of li-ability that applies to the damaged coveredproperty.

9. Glass Or Safety Glazing Materiala. We cover:

(1) The breakage of glass or safety glazing ma-terial which is part of a covered building,storm door or storm window;

(2) The breakage of glass or safety glazing ma-terial which is part of a covered building,storm door or storm window when caused di-rectly by earth movement; and

(3) The direct physical loss to covered propertycaused solely by the pieces, fragments orsplinters of broken glass or safety glazingmaterial which is part of a building, stormdoor or storm window.

b. This coverage does not include loss:(1) To covered property which results because

the glass or safety glazing material has beenbroken, except as provided in a.(3) above; or



(2) On the "residence premises" if the dwellinghas been vacant for more than 60 consecu-tive days immediately before the loss, exceptwhen the breakage results directly from earthmovement as provided in a.(2) above. Adwelling being constructed is not consideredvacant.

c. This coverage does not increase the limit of li-ability that applies to the damaged property.

10. Landlord's FurnishingsWe will pay up to $2,500 for your appliances, car-peting and other household furnishings, in eachapartment on the "residence premises" regularlyrented or held for rental to others by an "insured",for loss caused by a Peril Insured Against in Cover-age C, other than Theft.This limit is the most we will pay in any one loss re-gardless of the number of appliances, carpeting orother household furnishings involved in the loss.

This coverage does not increase the limit of liabil-ity applying to the damaged property.

11. Ordinance Or Lawa. You may use up to 10% of the limit of liability

that applies to Coverage A for the increasedcosts you incur due to the enforcement of anyordinance or law which requires or regulates:

(1) The construction, demolition, remodeling,renovation or repair of that part of a coveredbuilding or other structure damaged by aPeril Insured Against;

(2) The demolition and reconstruction of the un-damaged part of a covered building or otherstructure, when that building or other struc-ture must be totally demolished because ofdamage by a Peril Insured Against to anotherpart of that covered building or other struc-ture; or

(3) The remodeling, removal or replacement ofthe portion of the undamaged part of a cov-ered building or other structure necessary tocomplete the remodeling, repair or replace-ment of that part of the covered building orother structure damaged by a Peril InsuredAgainst.

b. You may use all or part of this ordinance or lawcoverage to pay for the increased costs you in-cur to remove debris resulting from the construc-tion, demolition, remodeling, renovation, repairor replacement of property as stated in a. above.

c. We do not cover:(1) The loss in value to any covered building or

other structure due to the requirements ofany ordinance or law; or

(2) The costs to comply with any ordinance orlaw which requires any "insured" or others totest for, monitor, clean up, remove, contain,treat, detoxify or neutralize, or in any way re-spond to, or assess the effects of, pollutantsin or on any covered building or other struc-ture.Pollutants means any solid, liquid, gaseousor thermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes mate-rials to be recycled, reconditioned or re-claimed.

This coverage is additional insurance.12. Grave Markers

We will pay up to $5,000 for grave markers, includ-ing mausoleums, on or away from the "residencepremises" for loss caused by a Peril Insured Againstunder Coverage C.This coverage does not increase the limits of liabilitythat apply to the damaged covered property.

SECTION I – PERILS INSURED AGAINSTA. Coverage A – Dwelling And Coverage B – Other

Structures1. We insure against risk of direct physical loss to

property described in Coverages A and B.2. We do not insure, however, for loss:

a. Excluded under Section I – Exclusions;b. Involving collapse, except as provided in E.8.

Collapse under Section I – Property Coverages;or

c. Caused by:(1) Freezing of a plumbing, heating, air condi-

tioning or automatic fire protective sprinklersystem or of a household appliance, or bydischarge, leakage or overflow from withinthe system or appliance caused by freezing.This provision does not apply if you haveused reasonable care to:

(a) Maintain heat in the building; or(b) Shut off the water supply and drain all

systems and appliances of water.However, if the building is pro-

tected by an automatic fire protective sprin-kler system, you must use reasonable care tocontinue the water supply and maintain heatin the building for coverage to apply.For purposes of this provision a plumbingsystem or household appliance does not in-clude a sump, sump pump or related equip-ment or a roof drain, gutter, downspout orsimilar fixtures or equipment;



(2) Freezing, thawing, pressure or weight of wa-ter or ice, whether driven by wind or not, to a:

(a) Fence, pavement, patio or swimmingpool;

(b) Footing, foundation, bulkhead, wall, orany other structure or device that sup-ports all or part of a building, or otherstructure;

(c) Retaining wall or bulkhead that does notsupport all or part of a building or otherstructure; or

(d) Pier, wharf or dock;(3) Theft in or to a dwelling under construction,

or of materials and supplies for use in theconstruction until the dwelling is finished andoccupied;

(4) Vandalism and malicious mischief, and anyensuing loss caused by any intentional andwrongful act committed in the course of thevandalism or malicious mischief, if the dwell-ing has been vacant for more than 60 con-secutive days immediately before the loss. Adwelling being constructed is not consideredvacant;

(5) Mold, fungus or wet rot. However, we do in-sure for loss caused by mold, fungus or wetrot that is hidden within the walls or ceilingsor beneath the floors or above the ceilings ofa structure if such loss results from the acci-dental discharge or overflow of water orsteam from within:

(a) A plumbing, heating, air conditioning orautomatic fire protective sprinkler system,or a household appliance, on the "resi-dence premises"; or

(b) A storm drain, or water, steam or sewerpipes, off the "residence premises".

For purposes of this provision, a plumbingsystem or household appliance does not in-clude a sump, sump pump or related equip-ment or a roof drain, gutter, downspout orsimilar fixtures or equipment; or

(6) Any of the following:(a) Wear and tear, marring, deterioration;(b) Mechanical breakdown, latent defect, in-

herent vice, or any quality in property thatcauses it to damage or destroy itself;

(c) Smog, rust or other corrosion, or dry rot;(d) Smoke from agricultural smudging or in-

dustrial operations;

(e) Discharge, dispersal, seepage, migration,release or escape of pollutants unless thedischarge, dispersal, seepage, migration,release or escape is itself caused by aPeril Insured Against named under Cov-erage C.Pollutants means any solid, liquid, gase-ous or thermal irritant or contaminant, in-cluding smoke, vapor, soot, fumes, acids,alkalis, chemicals and waste. Waste in-cludes materials to be recycled, recondi-tioned or reclaimed;

(f) Settling, shrinking, bulging or expansion,including resultant cracking, of bulkheads,pavements, patios, footings, foundations,walls, floors, roofs or ceilings;

(g) Birds, vermin, rodents, or insects; or(h) Animals owned or kept by an "insured".

Exception To c.(6)Unless the loss is otherwise excluded, we coverloss to property covered under Coverage A or Bresulting from an accidental discharge or over-flow of water or steam from within a:(i) Storm drain, or water, steam or sewer pipe,

off the "residence premises"; or(ii) Plumbing, heating, air conditioning or

automatic fire protective sprinkler system orhousehold appliance on the "residence prem-ises". This includes the cost to tear out andreplace any part of a building, or other struc-ture, on the "residence premises", but onlywhen necessary to repair the system or ap-pliance. However, such tear out and re-placement coverage only applies to otherstructures if the water or steam causes ac-tual damage to a building on the "residencepremises".

We do not cover loss to the system or appliancefrom which this water or steam escaped.For purposes of this provision, a plumbing sys-tem or household appliance does not include asump, sump pump or related equipment or aroof drain, gutter, down spout or similar fixturesor equipment.

Section I – Exclusion A.3. Water Damage, Para-graphs a. and c. that apply to surface water and wa-ter below the surface of the ground do not apply toloss by water covered under c.(5) and (6) above.Under 2.b. and c. above, any ensuing loss to prop-erty described in Coverages A and B not precludedby any other provision in this policy is covered.

B. Coverage C – Personal PropertyWe insure for direct physical loss to the property de-scribed in Coverage C caused by any of the followingperils unless the loss is excluded in Section I – Exclu-sions.



1. Fire Or Lightning2. Windstorm Or Hail

This peril includes loss to watercraft of all typesand their trailers, furnishings, equipment, and out-board engines or motors, only while inside a fullyenclosed building.

This peril does not include loss to the propertycontained in a building caused by rain, snow, sleet,sand or dust unless the direct force of wind or haildamages the building causing an opening in a roofor wall and the rain, snow, sleet, sand or dust en-ters through this opening.

3. Explosion4. Riot Or Civil Commotion5. Aircraft

This peril includes self-propelled missiles andspacecraft.

6. Vehicles7. Smoke

This peril means sudden and accidental damagefrom smoke, including the emission or puffback ofsmoke, soot, fumes or vapors from a boiler, furnaceor related equipment.This peril does not include loss caused by smokefrom agricultural smudging or industrial operations.

8. Vandalism Or Malicious Mischief9. Theft

a. This peril includes attempted theft and loss ofproperty from a known place when it is likely thatthe property has been stolen.

b. This peril does not include loss caused by theft:(1) Committed by an "insured";(2) In or to a dwelling under construction, or of

materials and supplies for use in the con-struction until the dwelling is finished and oc-cupied;

(3) From that part of a "residence premises"rented by an "insured" to someone otherthan another "insured"; or

(4) That occurs off the "residence premises" of:(a) Trailers, semitrailers and campers;(b) Watercraft of all types, and their furnish-

ings, equipment and outboard engines ormotors; or

(c) Property while at any other residenceowned by, rented to, or occupied by an"insured", except while an "insured" istemporarily living there. Property of an"insured" who is a student is coveredwhile at the residence the student occu-pies to attend school as long as the stu-dent has been there at any time duringthe 60 days immediately before the loss.

10. Falling ObjectsThis peril does not include loss to property con-tained in a building unless the roof or an outsidewall of the building is first damaged by a falling ob-ject. Damage to the falling object itself is not in-cluded.

11. Weight Of Ice, Snow Or SleetThis peril means weight of ice, snow or sleet whichcauses damage to property contained in a building.

12. Accidental Discharge Or Overflow Of Water OrSteama. This peril means accidental discharge or over-

flow of water or steam from within a plumbing,heating, air conditioning or automatic fire protec-tive sprinkler system or from within a householdappliance.

b. This peril does not include loss:(1) To the system or appliance from which the

water or steam escaped;(2) Caused by or resulting from freezing except

as provided in Peril Insured Against 14.Freezing;

(3) On the "residence premises" caused by ac-cidental discharge or overflow which occursoff the "residence premises"; or

(4) Caused by mold, fungus or wet rot unlesshidden within the walls or ceilings or beneaththe floors or above the ceilings of a structure.

c. In this peril, a plumbing system or householdappliance does not include a sump, sump pumpor related equipment or a roof drain, gutter,downspout or similar fixtures or equipment.

d. Section I – Exclusion A.3. Water Damage, Para-graphs a. and c. that apply to surface water andwater below the surface of the ground do notapply to loss by water covered under this peril.

13. Sudden And Accidental Tearing Apart,Cracking, Burning Or BulgingThis peril means sudden and accidental tearingapart, cracking, burning or bulging of a steam or hotwater heating system, an air conditioning or auto-matic fire protective sprinkler system, or an appli-ance for heating water.We do not cover loss caused by or resulting fromfreezing under this peril.

14. Freezinga. This peril means freezing of a plumbing, heating,

air conditioning or automatic fire protective sprin-kler system or of a household appliance but onlyif you have used reasonable care to:

(1) Maintain heat in the building; or(2) Shut off the water supply and drain all sys-

tems and appliances of water.



However, if the building is protected by an auto-matic fire protective sprinkler system, you mustuse reasonable care to continue the water sup-ply and maintain heat in the building for cover-age to apply.

b. In this peril, a plumbing system or householdappliance does not include a sump, sump pumpor related equipment or a roof drain, gutter,downspout or similar fixtures or equipment.

15. Sudden And Accidental Damage FromArtificially Generated Electrical CurrentThis peril does not include loss to tubes, transistors,electronic components or circuitry that are a part ofappliances, fixtures, computers, home entertain-ment units or other types of electronic apparatus.

16. Volcanic EruptionThis peril does not include loss caused by earth-quake, land shock waves or tremors.

SECTION I – EXCLUSIONSA. We do not insure for loss caused directly or indirectly

by any of the following. Such loss is excluded regard-less of any other cause or event contributing concur-rently or in any sequence to the loss. These exclusionsapply whether or not the loss event results in wide-spread damage or affects a substantial area.1. Ordinance Or Law

Ordinance Or Law means any ordinance or law:a. Requiring or regulating the construction, demoli-

tion, remodeling, renovation or repair of prop-erty, including removal of any resulting debris.This Exclusion A.1.a. does not apply to theamount of coverage that may be provided for inE.11. Ordinance Or Law under Section I – Prop-erty Coverages;

b. The requirements of which result in a loss invalue to property; or

c. Requiring any "insured" or others to test for,monitor, clean up, remove, contain, treat, detox-ify or neutralize, or in any way respond to, or as-sess the effects of, pollutants.Pollutants means any solid, liquid, gaseous orthermal irritant or contaminant, including smoke,vapor, soot, fumes, acids, alkalis, chemicals andwaste. Waste includes materials to be recycled,reconditioned or reclaimed.

This Exclusion A.1. applies whether or not the prop-erty has been physically damaged.

2. Earth MovementEarth Movement means:a. Earthquake, including land shock waves or trem-

ors before, during or after a volcanic eruption;b. Landslide, mudslide or mudflow;c. Subsidence or sinkhole; or

d. Any other earth movement including earth sink-ing, rising or shifting;

caused by or resulting from human or animal forcesor any act of nature unless direct loss by fire or ex-plosion ensues and then we will pay only for theensuing loss.This Exclusion A.2. does not apply to loss by theft.

3. Water DamageWater Damage means:a. Flood, surface water, waves, tidal water, over-

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

b. Water or water-borne material which backs upthrough sewers or drains or which overflows oris discharged from a sump, sump pump or re-lated equipment; or

c. Water or water-borne material below the surfaceof the ground, including water which exerts pres-sure on or seeps or leaks through a building,sidewalk, driveway, foundation, swimming poolor other structure;

caused by or resulting from human or animal forcesor any act of nature.Direct loss by fire, explosion or theft resulting fromwater damage is covered.

4. Power FailurePower Failure means the failure of power or otherutility service if the failure takes place off the "resi-dence premises". But if the failure results in a loss,from a Peril Insured Against on the "residencepremises", we will pay for the loss caused by thatperil.

5. NeglectNeglect means neglect of an "insured" to use allreasonable means to save and preserve property atand after the time of a loss.

6. WarWar includes the following and any consequence ofany of the following:a. Undeclared war, civil war, insurrection, rebellion

or revolution;b. Warlike act by a military force or military person-

nel; orc. Destruction, seizure or use for a military pur-

pose.Discharge of a nuclear weapon will be deemed awarlike act even if accidental.

7. Nuclear HazardThis Exclusion A.7. pertains to Nuclear Hazard tothe extent set forth in M. Nuclear Hazard Clauseunder Section I – Conditions.



8. Intentional LossIntentional Loss means any loss arising out of anyact an "insured" commits or conspires to commitwith the intent to cause a loss.In the event of such loss, no "insured" is entitled tocoverage, even "insureds" who did not commit orconspire to commit the act causing the loss.

9. Governmental ActionGovernmental Action means the destruction, con-fiscation or seizure of property described in Cover-age A, B or C by order of any governmental or pub-lic authority.This exclusion does not apply to such acts orderedby any governmental or public authority that aretaken at the time of a fire to prevent its spread, if theloss caused by fire would be covered under this pol-icy.

B. We do not insure for loss to property described in Cov-erages A and B caused by any of the following. How-ever, any ensuing loss to property described in Cover-ages A and B not precluded by any other provision inthis policy is covered.1. Weather conditions. However, this exclusion only

applies if weather conditions contribute in any waywith a cause or event excluded in A. above to pro-duce the loss.

2. Acts or decisions, including the failure to act or de-cide, of any person, group, organization or govern-mental body.

3. Faulty, inadequate or defective:a. Planning, zoning, development, surveying, sit-

ing;b. Design, specifications, workmanship, re-

pair, construction, renovation, remodeling, grad-ing, compaction;

c. Materials used in repair, construction, renovationor remodeling; or

d. Maintenance;of part or all of any property whether on or off the"residence premises".

SECTION I – CONDITIONSA. Insurable Interest And Limit Of Liability

Even if more than one person has an insurable interestin the property covered, we will not be liable in any oneloss:1. To an "insured" for more than the amount of such

"insured's" interest at the time of loss; or2. For more than the applicable limit of liability.

B. Duties After LossIn case of a loss to covered property, we have no dutyto provide coverage under this policy if the failure tocomply with the following duties is prejudicial to us.These duties must be performed either by you, an "in-sured" seeking coverage, or a representative of either:

1. Give prompt notice to us or our agent;2. Notify the police in case of loss by theft;3. Notify the credit card or electronic fund transfer card

or access device company in case of loss as pro-vided for in E.6. Credit Card, Electronic Fund Trans-fer Card Or Access Device, Forgery And CounterfeitMoney under Section I – Property Coverages;

4. Protect the property from further damage. If repairsto the property are required, you must:a. Make reasonable and necessary repairs to pro-

tect the property; andb. Keep an accurate record of repair expenses;

5. Cooperate with us in the investigation of a claim;6. Prepare an inventory of damaged personal property

showing the quantity, description, actual cash valueand amount of loss. Attach all bills, receipts and re-lated documents that justify the figures in the inven-tory;

7. As often as we reasonably require:a. Show the damaged property;b. Provide us with records and documents we re-

quest and permit us to make copies; andc. Submit to examination under oath, while not in

the presence of another "insured", and sign thesame;

8. Send to us, within 60 days after our request, yoursigned, sworn proof of loss which sets forth, to thebest of your knowledge and belief:a. The time and cause of loss;b. The interests of all "insureds" and all others in

the property involved and all liens on the prop-erty;

c. Other insurance which may cover the loss;d. Changes in title or occupancy of the property

during the term of the policy;e. Specifications of damaged buildings and de-

tailed repair estimates;f. The inventory of damaged personal property

described in 6. above;g. Receipts for additional living expenses incurred

and records that support the fair rental valueloss; and

h. Evidence or affidavit that supports a claim underE.6. Credit Card, Electronic Fund Transfer CardOr Access Device, Forgery And CounterfeitMoney under Section I – Property Coverages,stating the amount and cause of loss.



C. Loss SettlementIn this Condition C., the terms "cost to repair or re-place" and "replacement cost" do not include the in-creased costs incurred to comply with the enforcementof any ordinance or law, except to the extent that cov-erage for these increased costs is provided in E.11.Ordinance Or Law under Section I – Property Cover-ages. Covered property losses are settled as follows:1. Property of the following types:

a. Personal property;b. Awnings, carpeting, household appliances, out-

door antennas and outdoor equipment, whetheror not attached to buildings;

c. Structures that are not buildings; andd. Grave markers, including mausoleums;at actual cash value at the time of loss but not morethan the amount required to repair or replace.

2. Buildings covered under Coverage A or B at re-placement cost without deduction for depreciation,subject to the following:a. If, at the time of loss, the amount of insurance in

this policy on the damaged building is 80% ormore of the full replacement cost of the buildingimmediately before the loss, we will pay the costto repair or replace, after application of any de-ductible and without deduction for depreciation,but not more than the least of the followingamounts:

(1) The limit of liability under this policy that ap-plies to the building;

(2) The replacement cost of that part of thebuilding damaged with material of like kindand quality and for like use; or

(3) The necessary amount actually spent to re-pair or replace the damaged building.

If the building is rebuilt at a new premises, thecost described in (2) above is limited to the costwhich would have been incurred if the buildinghad been built at the original premises.

b. If, at the time of loss, the amount of insurance inthis policy on the damaged building is less than80% of the full replacement cost of the buildingimmediately before the loss, we will pay thegreater of the following amounts, but not morethan the limit of liability under this policy that ap-plies to the building:

(1) The actual cash value of that part of thebuilding damaged; or

(2) That proportion of the cost to repair or re-place, after application of any deductible andwithout deduction for depreciation, that partof the building damaged, which the totalamount of insurance in this policy on thedamaged building bears to 80% of the re-placement cost of the building.

c. To determine the amount of insurance requiredto equal 80% of the full replacement cost of thebuilding immediately before the loss, do not in-clude the value of:

(1) Excavations, footings, foundations, piers, orany other structures or devices that supportall or part of the building, which are below theundersurface of the lowest basement floor;

(2) Those supports described in (1) above whichare below the surface of the ground insidethe foundation walls, if there is no basement;and

(3) Underground flues, pipes, wiring and drains.d. We will pay no more than the actual cash value

of the damage until actual repair or replacementis complete. Once actual repair or replacementis complete, we will settle the loss as noted in2.a. and b. above.However, if the cost to repair or replace thedamage is both:

(1) Less than 5% of the amount of insurance inthis policy on the building; and

(2) Less than $2,500;we will settle the loss as noted in 2.a. and b.above whether or not actual repair or replace-ment is complete.

e. You may disregard the replacement cost losssettlement provisions and make claim under thispolicy for loss to buildings on an actual cashvalue basis. You may then make claim for anyadditional liability according to the provisions ofthis Condition C. Loss Settlement, provided younotify us of your intent to do so within 180 daysafter the date of loss.

D. Loss To A Pair Or SetIn case of loss to a pair or set we may elect to:1. Repair or replace any part to restore the pair or set

to its value before the loss; or2. Pay the difference between actual cash value of

the property before and after the loss.



E.AppraisalIf you and we fail to agree on the amount of loss, eithermay demand an appraisal of the loss. In this event,each party will choose a competent and impartial ap-praiser within 20 days after receiving a written requestfrom the other. The two appraisers will choose an um-pire. If they cannot agree upon an umpire within 15days, you or we may request that the choice be madeby a judge of a court of record in the state where the"residence premises" is located. The appraisers willseparately set the amount of loss. If the appraiserssubmit a written report of an agreement to us, theamount agreed upon will be the amount of loss. If theyfail to agree, they will submit their differences to theumpire. A decision agreed to by any two will set theamount of loss.Each party will:1. Pay its own appraiser; and2. Bear the other expenses of the appraisal and um-

pire equally.F. Other Insurance And Service Agreement

If a loss covered by this policy is also covered by:1. Other insurance, we will pay only the proportion of

the loss that the limit of liability that applies underthis policy bears to the total amount of insurancecovering the loss; or

2. A service agreement, this insurance is excess overany amounts payable under any such agreement.Service agreement means a service plan, propertyrestoration plan, home warranty or other similar ser-vice warranty agreement, even if it is characterizedas insurance.

G. Suit Against UsNo action can be brought against us unless there hasbeen full compliance with all of the terms under SectionI of this policy and the action is started within two yearsafter the date of loss.

H. Our OptionIf we give you written notice within 30 days after we re-ceive your signed, sworn proof of loss, we may repairor replace any part of the damaged property with mate-rial or property of like kind and quality.

I. Loss PaymentWe will adjust all losses with you. We will pay youunless some other person is named in the policy or islegally entitled to receive payment. Loss will be payable60 days after we receive your proof of loss and:1. Reach an agreement with you;2. There is an entry of a final judgment; or3. There is a filing of an appraisal award with us.

J. Abandonment Of PropertyWe need not accept any property abandoned by an "in-sured".

K. Mortgage Clause1. If a mortgagee is named in this policy, any loss pay-

able under Coverage A or B will be paid to themortgagee and you, as interests appear. If morethan one mortgagee is named, the order of paymentwill be the same as the order of precedence of themortgages.

2. If we deny your claim, that denial will not apply to avalid claim of the mortgagee, if the mortgagee:a. Notifies us of any change in ownership, occu-

pancy or substantial change in risk of which themortgagee is aware;

b. Pays any premium due under this policy on de-mand if you have neglected to pay the premium;and

c. Submits a signed, sworn statement of loss within60 days after receiving notice from us of yourfailure to do so. Paragraphs E. Appraisal, G. SuitAgainst Us and I. Loss Payment under Section I– Conditions also apply to the mortgagee.

3. If we decide to cancel or not to renew this policy,the mortgagee will be notified at least 10 days be-fore the date cancellation or nonrenewal takes ef-fect.

4. If we pay the mortgagee for any loss and deny pay-ment to you:a. We are subrogated to all the rights of the mort-

gagee granted under the mortgage on the prop-erty; or

b. At our option, we may pay to the mortgagee thewhole principal on the mortgage plus any ac-crued interest. In this event, we will receive a fullassignment and transfer of the mortgage and allsecurities held as collateral to the mortgagedebt.

5. Subrogation will not impair the right of the mort-gagee to recover the full amount of the mortgagee'sclaim.

L. No Benefit To BaileeWe will not recognize any assignment or grant any cov-erage that benefits a person or organization holding,storing or moving property for a fee regardless of anyother provision of this policy.

M. Nuclear Hazard Clause1. "Nuclear Hazard" means any nuclear reaction, ra-

diation, or radioactive contamination, all whethercontrolled or uncontrolled or however caused, orany consequence of any of these.

2. Loss caused by the nuclear hazard will not be con-sidered loss caused by fire, explosion, or smoke,whether these perils are specifically named in orotherwise included within the Perils Insured Against.



3. This policy does not apply under Section I to losscaused directly or indirectly by nuclear hazard, ex-cept that direct loss by fire resulting from the nu-clear hazard is covered.

N. Recovered PropertyIf you or we recover any property for which we havemade payment under this policy, you or we will notifythe other of the recovery. At your option, the propertywill be returned to or retained by you or it will becomeour property. If the recovered property is returned to orretained by you, the loss payment will be adjustedbased on the amount you received for the recoveredproperty.

O. Volcanic Eruption PeriodOne or more volcanic eruptions that occur within a 72hour period will be considered as one volcanic erup-tion.

P. Policy PeriodThis policy applies only to loss which occurs during thepolicy period.

Q. Concealment Or FraudWe provide coverage to no "insureds" under this policyif, whether before or after a loss, an "insured" has:1. Intentionally concealed or misrepresented any ma-

terial fact or circumstance;2. Engaged in fraudulent conduct; or3. Made false statements;relating to this insurance.

R. Loss Payable ClauseIf the Declarations show a loss payee for certain listedinsured personal property, the definition of "insured" ischanged to include that loss payee with respect to thatproperty.If we decide to cancel or not renew this policy, that losspayee will be notified in writing.

SECTION II – LIABILITY COVERAGESA. Coverage E – Personal Liability

If a claim is made or a suit is brought against an "in-sured" for damages because of "bodily injury" or "prop-erty damage" caused by an "occurrence" to which thiscoverage applies, we will:1. Pay up to our limit of liability for the damages for

which an "insured" is legally liable. Damages in-clude prejudgment interest awarded against an "in-sured"; and

2. Provide a defense at our expense by counsel of ourchoice, even if the suit is groundless, false orfraudulent. We may investigate and settle any claimor suit that we decide is appropriate. Our duty tosettle or defend ends when our limit of liability forthe "occurrence" has been exhausted by paymentof a judgment or settlement.

B. Coverage F – Medical Payments To OthersWe will pay the necessary medical expenses that areincurred or medically ascertained within three yearsfrom the date of an accident causing "bodily injury".Medical expenses means reasonable charges formedical, surgical, x-ray, dental, ambulance, hospital,professional nursing, prosthetic devices and funeralservices. This coverage does not apply to you or regu-lar residents of your household except "residence em-ployees". As to others, this coverage applies only:1. To a person on the "insured location" with the per-

mission of an "insured"; or2. To a person off the "insured location", if the "bodily

injury":a. Arises out of a condition on the "insured loca-

tion" or the ways immediately adjoining;b. Is caused by the activities of an "insured";c. Is caused by a "residence employee" in the

course of the "residence employee's" employ-ment by an "insured"; or

d. Is caused by an animal owned by or in the careof an "insured".

SECTION II – EXCLUSIONSA. "Motor Vehicle Liability"

1. Coverages E and F do not apply to any "motor ve-hicle liability" if, at the time and place of an "occur-rence", the involved "motor vehicle":a. Is registered for use on public roads or property;b. Is not registered for use on public roads or prop-

erty, but such registration is required by a law, orregulation issued by a government agency, for itto be used at the place of the "occurrence"; or

c. Is being:(1) Operated in, or practicing for, any prear-

ranged or organized race, speed contest orother competition;

(2) Rented to others;(3) Used to carry persons or cargo for a charge;

or(4) Used for any "business" purpose except for a

motorized golf cart while on a golfing facility.2. If Exclusion A.1. does not apply, there is still no

coverage for "motor vehicle liability" unless the "mo-tor vehicle" is:a. In dead storage on an "insured location";b. Used solely to service an "insured's" residence;c. Designed to assist the handicapped and, at the

time of an "occurrence", it is:(1) Being used to assist a handicapped person;

or(2) Parked on an "insured location";



d. Designed for recreational use off public roadsand:

(1) Not owned by an "insured"; or(2) Owned by an "insured" provided the "occur-

rence" takes place on an "insured location"as defined in Definitions B. 6.a., b., d., e. orh.; or

e. A motorized golf cart that is owned by an "in-sured", designed to carry up to 4 persons, notbuilt or modified after manufacture to exceed aspeed of 25 miles per hour on level ground and,at the time of an "occurrence", is within the legalboundaries of:

(1) A golfing facility and is parked or storedthere, or being used by an "insured" to:

(a) Play the game of golf or for other recrea-tional or leisure activity allowed by the fa-cility;

(b) Travel to or from an area where "motorvehicles" or golf carts are parked orstored; or

(c) Cross public roads at designated pointsto access other parts of the golfing facil-ity; or

(2) A private residential community, including itspublic roads upon which a motorized golf cartcan legally travel, which is subject to the au-thority of a property owners association andcontains an "insured's" residence.

B. "Watercraft Liability"1. Coverages E and F do not apply to any "watercraft

liability" if, at the time of an "occurrence", the in-volved watercraft is being:a. Operated in, or practicing for, any prearranged

or organized race, speed contest or other com-petition. This exclusion does not apply to a sail-ing vessel or a predicted log cruise;

b. Rented to others;c. Used to carry persons or cargo for a charge; ord. Used for any "business" purpose.

2. If Exclusion B.1. does not apply, there is still nocoverage for "watercraft liability" unless, at the timeof the "occurrence", the watercraft:a. Is stored;b. Is a sailing vessel, with or without auxiliary

power, that is:(1) Less than 26 feet in overall length; or(2) 26 feet or more in overall length and not

owned by or rented to an "insured"; orc. Is not a sailing vessel and is powered by:

(1) An inboard or inboard-outdrive engine or mo-tor, including those that power a water jetpump, of:

(a) 50 horsepower or less and not owned byan "insured"; or

(b) More than 50 horsepower and not ownedby or rented to an "insured"; or

(2) One or more outboard engines or motorswith:

(a) 25 total horsepower or less;(b) More than 25 horsepower if the outboard

engine or motor is not owned by an "in-sured";

(c) More than 25 horsepower if the outboardengine or motor is owned by an "insured"who acquired it during the policy period;or

(d) More than 25 horsepower if the outboardengine or motor is owned by an "insured"who acquired it before the policy period,but only if:(i) You declare them at policy inception;

or(ii) Your intent to insure them is reported

to us in writing within 45 days afteryou acquire them.

The coverages in (c) and (d) above apply forthe policy period.

Horsepower means the maximum power ratingassigned to the engine or motor by the manufac-turer.

C. "Aircraft Liability"This policy does not cover "aircraft liability".

D. "Hovercraft Liability"This policy does not cover "hovercraft liability".

E. Coverage E – Personal Liability And Coverage F –Medical Payments To OthersCoverages E and F do not apply to the following:1. Expected Or Intended Injury

"Bodily injury" or "property damage" which is ex-pected or intended by an "insured" even if the re-sulting "bodily injury" or "property damage":a. Is of a different kind, quality or degree than ini-

tially expected or intended; orb. Is sustained by a different person, entity, real or

personal property, than initially expected or in-tended.

However, this Exclusion E.1. does not apply to"bodily injury" resulting from the use of reasonableforce by an "insured" to protect persons or property;



2. "Business"a. "Bodily injury" or "property damage" arising out

of or in connection with a "business" conductedfrom an "insured location" or engaged in by an"insured", whether or not the "business" isowned or operated by an "insured" or employsan "insured".This Exclusion E.2. applies but is not limited toan act or omission, regardless of its nature orcircumstance, involving a service or duty ren-dered, promised, owed, or implied to be pro-vided because of the nature of the "business".

b. This Exclusion E.2. does not apply to:(1) The rental or holding for rental of an "insured

location";(a) On an occasional basis if used only as a

residence;(b) In part for use only as a residence, unless

a single family unit is intended for use bythe occupying family to lodge more thantwo roomers or boarders; or

(c) In part, as an office, school, studio or pri-vate garage; and

(2) An "insured" under the age of 21 years in-volved in a part-time or occasional, self-employed "business" with no employees;

3. Professional Services"Bodily injury" or "property damage" arising out ofthe rendering of or failure to render professionalservices;

4. "Insured's" Premises Not An "Insured Location""Bodily injury" or "property damage" arising out of apremises:a. Owned by an "insured";b. Rented to an "insured"; orc. Rented to others by an "insured";that is not an "insured location";

5. War"Bodily injury" or "property damage" caused directlyor indirectly by war, including the following and anyconsequence of any of the following:a. Undeclared war, civil war, insurrection, rebellion



pose.Discharge of a nuclear weapon will be deemed awarlike act even if accidental;

6. Communicable Disease"Bodily injury" or "property damage" which arisesout of the transmission of a communicable diseaseby an "insured";

7. Sexual Molestation, Corporal Punishment OrPhysical Or Mental Abuse"Bodily injury" or "property damage" arising out ofsexual molestation, corporal punishment or physicalor mental abuse; or

8. Controlled Substance"Bodily injury" or "property damage" arising out ofthe use, sale, manufacture, delivery, transfer orpossession by any person of a Controlled Sub-stance as defined by the Federal Food and DrugLaw at 21 U.S.C.A. Sections 811 and 812. Con-trolled Substances include but are not limited to co-caine, LSD, marijuana and all narcotic drugs. How-ever, this exclusion does not apply to the legitimateuse of prescription drugs by a person following theorders of a licensed physician.

Exclusions A. "Motor Vehicle Liability", B. "WatercraftLiability", C. "Aircraft Liability", D. "Hovercraft Liability"and E.4. "Insured's" Premises Not An "Insured Loca-tion" do not apply to "bodily injury" to a "residence em-ployee" arising out of and in the course of the "resi-dence employee's" employment by an "insured".

F. Coverage E – Personal LiabilityCoverage E does not apply to:1. Liability:

a. For any loss assessment charged against youas a member of an association, corporation orcommunity of property owners, except as pro-vided in D. Loss Assessment under Section II –Additional Coverages;

b. Under any contract or agreement entered into byan "insured". However, this exclusion does notapply to written contracts:

(1) That directly relate to the ownership, mainte-nance or use of an "insured location"; or

(2) Where the liability of others is assumed byyou prior to an "occurrence";

unless excluded in a. above or elsewhere in thispolicy;

2. "Property damage" to property owned by an "in-sured". This includes costs or expenses incurred byan "insured" or others to repair, replace, enhance,restore or maintain such property to prevent injuryto a person or damage to property of others,whether on or away from an "insured location";

3. "Property damage" to property rented to, occupiedor used by or in the care of an "insured". This ex-clusion does not apply to "property damage" causedby fire, smoke or explosion;



4. "Bodily injury" to any person eligible to receive anybenefits voluntarily provided or required to be pro-vided by an "insured" under any:a. Workers' compensation law;b. Non-occupational disability law; orc. Occupational disease law;

5. "Bodily injury" or "property damage" for which an"insured" under this policy:a. Is also an insured under a nuclear energy liabil-

ity policy issued by the:(1) Nuclear Energy Liability Insurance Associa-

tion;(2) Mutual Atomic Energy Liability Underwriters;(3) Nuclear Insurance Association of Canada;or any of their successors; or

b. Would be an insured under such a policy but forthe exhaustion of its limit of liability; or

6. "Bodily injury" to you or an "insured" as defined un-der Definitions 5.a. or b.This exclusion also applies to any claim made orsuit brought against you or an "insured":a. To repay; orb. Share damages with;another person who may be obligated to pay dam-ages because of "bodily injury" to an "insured".

G. Coverage F – Medical Payments To OthersCoverage F does not apply to "bodily injury":1. To a "residence employee" if the "bodily injury":

a. Occurs off the "insured location"; andb. Does not arise out of or in the course of the

"residence employee's" employment by an "in-sured";

2. To any person eligible to receive benefits voluntarilyprovided or required to be provided under any:a. Workers' compensation law;b. Non-occupational disability law; orc. Occupational disease law;

3. From any:a. Nuclear reaction;b. Nuclear radiation; orc. Radioactive contamination;all whether controlled or uncontrolled or howevercaused; ord. Any consequence of any of these; or

4. To any person, other than a "residence employee"of an "insured", regularly residing on any part of the"insured location".

SECTION II – ADDITIONAL COVERAGESWe cover the following in addition to the limits of liability:

A. Claim ExpensesWe pay:1. Expenses we incur and costs taxed against an "in-

sured" in any suit we defend;2. Premiums on bonds required in a suit we defend,

but not for bond amounts more than the CoverageE limit of liability. We need not apply for or furnishany bond;

3. Reasonable expenses incurred by an "insured" atour request, including actual loss of earnings (butnot loss of other income) up to $250 per day, forassisting us in the investigation or defense of aclaim or suit; and

4. Interest on the entire judgment which accrues afterentry of the judgment and before we pay or tender,or deposit in court that part of the judgment whichdoes not exceed the limit of liability that applies.

B. First Aid ExpensesWe will pay expenses for first aid to others incurred byan "insured" for "bodily injury" covered under this pol-icy. We will not pay for first aid to an "insured".

C. Damage To Property Of Others1. We will pay, at replacement cost, up to $1,000 per

"occurrence" for "property damage" to property ofothers caused by an "insured".

2. We will not pay for "property damage":a. To the extent of any amount recoverable under

Section I;b. Caused intentionally by an "insured" who is 13

years of age or older;c. To property owned by an "insured";d. To property owned by or rented to a tenant of an

"insured" or a resident in your household; ore. Arising out of:

(1) A "business" engaged in by an "insured";(2) Any act or omission in connection with a

premises owned, rented or controlled by an"insured", other than the "insured location";or

(3) The ownership, maintenance, occupancy,operation, use, loading or unloading of air-craft, hovercraft, watercraft or "motor vehi-cles".This exclusion e.(3) does not apply to a "mo-tor vehicle" that:

(a) Is designed for recreational use off publicroads;

(b) Is not owned by an "insured"; and(c) At the time of the "occurrence", is not re-

quired by law, or regulation issued by agovernment agency, to have been regis-tered for it to be used on public roads orproperty.



D. Loss Assessment1. We will pay up to $1,000 for your share of loss as-

sessment charged against you, as owner or tenantof the "residence premises", during the policy periodby a corporation or association of property owners,when the assessment is made as a result of:a. "Bodily injury" or "property damage" not ex-

cluded from coverage under Section II – Exclu-sions; or

b. Liability for an act of a director, officer or trusteein the capacity as a director, officer or trustee,provided such person:

(1) Is elected by the members of a corporationor association of property owners; and

(2) Serves without deriving any income from theexercise of duties which are solely on behalfof a corporation or association of propertyowners.

2. Paragraph I. Policy Period under Section II – Condi-tions does not apply to this Loss Assessment Cov-erage.

3. Regardless of the number of assessments, the limitof $1,000 is the most we will pay for loss arising outof:a. One accident, including continuous or repeated

exposure to substantially the same generalharmful condition; or

b. A covered act of a director, officer or trustee. Anact involving more than one director, officer ortrustee is considered to be a single act.

4. We do not cover assessments charged against youor a corporation or association of property ownersby any governmental body.

SECTION II – CONDITIONSA. Limit Of Liability

Our total liability under Coverage E for all damages re-sulting from any one "occurrence" will not be more thanthe Coverage E limit of liability shown in the Declara-tions. This limit is the same regardless of the number of"insureds", claims made or persons injured. All "bodilyinjury" and "property damage" resulting from any oneaccident or from continuous or repeated exposure tosubstantially the same general harmful conditions shallbe considered to be the result of one "occurrence".Our total liability under Coverage F for all medical ex-pense payable for "bodily injury" to one person as theresult of one accident will not be more than the Cover-age F limit of liability shown in the Declarations.

B. Severability Of InsuranceThis insurance applies separately to each "insured".This condition will not increase our limit of liability forany one "occurrence".

C. Duties After "Occurrence"In case of an "occurrence", you or another "insured"will perform the following duties that apply. We have noduty to provide coverage under this policy if your failureto comply with the following duties is prejudicial to us.You will help us by seeing that these duties are per-formed:1. Give written notice to us or our agent as soon as is

practical, which sets forth:a. The identity of the policy and the "named in-

sured" shown in the Declarations;b. Reasonably available information on the time,

place and circumstances of the "occurrence";and

c. Names and addresses of any claimants and wit-nesses;

2. Cooperate with us in the investigation, settlement ordefense of any claim or suit;

3. Promptly forward to us every notice, demand, sum-mons or other process relating to the "occurrence";

4. At our request, help us:a. To make settlement;b. To enforce any right of contribution or indemnity

against any person or organization who may beliable to an "insured";

c. With the conduct of suits and attend hearingsand trials; and

d. To secure and give evidence and obtain the at-tendance of witnesses;

5. With respect to C. Damage To Property Of Othersunder Section II – Additional Coverages, submit tous within 60 days after the loss, a sworn statementof loss and show the damaged property, if in an "in-sured's" control;

6. No "insured" shall, except at such "insured's" owncost, voluntarily make payment, assume obligationor incur expense other than for first aid to others atthe time of the "bodily injury".

D. Duties Of An Injured Person – Coverage F –Medical Payments To Others1. The injured person or someone acting for the in-

jured person will:a. Give us written proof of claim, under oath if re-

quired, as soon as is practical; andb. Authorize us to obtain copies of medical reports

and records.2. The injured person will submit to a physical exam

by a doctor of our choice when and as often as wereasonably require.

E. Payment Of Claim – Coverage F – MedicalPayments To OthersPayment under this coverage is not an admission of li-ability by an "insured" or us.



F. Suit Against Us1. No action can be brought against us unless there

has been full compliance with all of the terms underthis Section II.

2. No one will have the right to join us as a party toany action against an "insured".

3. Also, no action with respect to Coverage E can bebrought against us until the obligation of such "in-sured" has been determined by final judgment oragreement signed by us.

G. Bankruptcy Of An "Insured"Bankruptcy or insolvency of an "insured" will not relieveus of our obligations under this policy.

H. Other InsuranceThis insurance is excess over other valid and collecti-ble insurance except insurance written specifically tocover as excess over the limits of liability that apply inthis policy.

I. Policy PeriodThis policy applies only to "bodily injury" or "propertydamage" which occurs during the policy period.

J. Concealment Or FraudWe do not provide coverage to an "insured" who,whether before or after a loss, has:1. Intentionally concealed or misrepresented any ma-

terial fact or circumstance;2. Engaged in fraudulent conduct; or3. Made false statements;relating to this insurance.

SECTIONS I AND II – CONDITIONSA. Liberalization Clause

If we make a change which broadens coverage underthis edition of our policy without additional premiumcharge, that change will automatically apply to your in-surance as of the date we implement the change inyour state, provided that this implementation date fallswithin 60 days prior to or during the policy period statedin the Declarations.This Liberalization Clause does not apply to changesimplemented with a general program revision that in-cludes both broadenings and restrictions in coverage,whether that general program revision is implementedthrough introduction of:1. A subsequent edition of this policy; or2. An amendatory endorsement.

B. Waiver Or Change Of Policy ProvisionsA waiver or change of a provision of this policy must bein writing by us to be valid. Our request for an appraisalor examination will not waive any of our rights.

C. Cancellation1. You may cancel this policy at any time by returning

it to us or by letting us know in writing of the datecancellation is to take effect.

2. We may cancel this policy only for the reasonsstated below by letting you know in writing of thedate cancellation takes effect. This cancellation no-tice may be delivered to you, or mailed to you atyour mailing address shown in the Declarations.Proof of mailing will be sufficient proof of notice.a. When you have not paid the premium, we may

cancel at any time by letting you know at least10 days before the date cancellation takes ef-fect.

b. When this policy has been in effect for less than60 days and is not a renewal with us, we maycancel for any reason by letting you know atleast 10 days before the date cancellation takeseffect.

c. When this policy has been in effect for 60 daysor more, or at any time if it is a renewal with us,we may cancel:

(1) If there has been a material misrepresenta-tion of fact which if known to us would havecaused us not to issue the policy; or

(2) If the risk has changed substantially sincethe policy was issued.

This can be done by letting you know at least 30days before the date cancellation takes effect.

d. When this policy is written for a period of morethan one year, we may cancel for any reason atanniversary by letting you know at least 30 daysbefore the date cancellation takes effect.

3. When this policy is canceled, the premium for theperiod from the date of cancellation to the expirationdate will be refunded pro rata.

4. If the return premium is not refunded with the no-tice of cancellation or when this policy is returned tous, we will refund it within a reasonable time afterthe date cancellation takes effect.

D. NonrenewalWe may elect not to renew this policy. We may do soby delivering to you, or mailing to you at your mailingaddress shown in the Declarations, written notice atleast 30 days before the expiration date of this policy.Proof of mailing will be sufficient proof of notice.

E. AssignmentAssignment of this policy will not be valid unless wegive our written consent.

F. SubrogationAn "insured" may waive in writing before a loss allrights of recovery against any person. If not waived, wemay require an assignment of rights of recovery for aloss to the extent that payment is made by us.



If an assignment is sought, an "insured" must sign anddeliver all related papers and cooperate with us.Subrogation does not apply to Coverage F or Para-graph C. Damage To Property Of Others under SectionII – Additional Coverages.

G. DeathIf any person named in the Declarations or the spouse,if a resident of the same household, dies, the followingapply:

1. We insure the legal representative of the deceasedbut only with respect to the premises and propertyof the deceased covered under the policy at thetime of death; and

2. "Insured" includes:a. An "insured" who is a member of your house-

hold at the time of your death, but only while aresident of the "residence premises"; and

b. With respect to your property, the person havingproper temporary custody of the property untilappointment and qualification of a legal repre-sentative.

AdditionalCoverages

andEndorsements

Includes copyright material of Insurance Services Office, Inc. with its permission.- 1 -

ADDITIONAL COVERAGES AND ENDORSEMENTS

ADVISORY NOTICE TO POLICY HOLDERS ANMS 03

LIMITED FUNGI, WET OR DRY ROT, ORBACTERIA COVERAGE

Endorsement # HO 04 27 04 02

Attached to your policy is endorsement HO 04 27 04 02 which provides limited coverage underSection I–Property, for loss due to fungi, wet or dry rot, or bacteria when such loss results from aperil insured against and occurred during the policy period. There is limited coverage under Sec-tion II–Liability for damages as a result of fungi, wet or dry rot, or bacteria.

THIS NOTICE DOES NOT PROVIDE COVERAGE NOR DOES THIS NOTICE REPLACE ANY PROVISIONS OF OUR POL-ICY. YOU SHOULD READ YOUR POLICY AND REVIEW YOUR DECLARATIONS PAGE FOR COMPLETE INFORMATIONON THE COVERAGES YOU ARE PROVIDED WITH. IF THERE IS ANY CONFLICT BETWEEN THE POLICY AND THISNOTICE, THE PROVISIONS OF THE POLICY SHALL PREVAIL.

Mid-State Mutual Insurance CompanyAdvisory Notice – MoldANMS 03

LIMITED FUNGI, WET OR DRY ROT, OR BACTERIACOVERAGE

HO 04 27 04 02

FOR USE WITH FORMS HO 00 03 AND HO 00 05

SCHEDULE*

These limits of liability apply to the total of all loss or costs payable under this endorsement, regardless of the numberof "occurrences", the number of claims-made, or the number of locations insured under this endorsement and listedin this Schedule.

1. Section I – Property Coverage Limit Of Liability for the Additional Coverage "Fungi", Wet OrDry Rot, Or Bacteria

$5,000.00

2. Section II – Coverage E Aggregate Sublimit of Liability for "Fungi", Wet Or Dry Rot, Or Bac-teria

$25,000.00

*Entries may be left blank if shown elsewhere in this policy for this coverage.


DEFINITIONSThe following definition is added:

"Fungi"a. "Fungi" means any type or form of fungus,

including mold or mildew, and any mycotoxins,spores, scents or by-products produced or re-leased by fungi.

b. Under Section II, this does not include anyfungi that are, are on, or are contained in, agood or product intended for consumption.

SECTION I – PROPERTY COVERAGESE. Additional Coverages

Paragraph 10.k.(2)(d) is deleted in Form HO 00 05only.

The following Additional Coverage is added:13. "Fungi", Wet Or Dry Rot, Or Bacteria

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

(1) The total of all loss payable under Section I– Property Coverages caused by "fungi",wet or dry rot, or bacteria;

(2) The cost to remove "fungi", wet or dry rot,or bacteria from property covered underSection I – Property Coverages;

(3) The cost to tear out and replace any part ofthe building or other covered property asneeded to gain access to the "fungi", wetor dry rot, or bacteria; and

(4) The cost of testing of air or property to con-firm the absence, presence or level of"fungi", wet or dry rot, or bacteria whetherperformed prior to, during or after removal,repair, restoration or replacement. The costof such testing will be provided only to theextent that there is a reason to believe thatthere is the presence of "fungi", wet or dryrot, or bacteria.

b. The coverage described in 13.a. only applieswhen such loss or costs are a result of a PerilInsured Against that occurs during the policyperiod and only if all reasonable means wereused to save and preserve the property fromfurther damage at and after the time the PerilInsured Against occurred.

c. The amount shown in the Schedule for thiscoverage is the most we will pay for the totalof all loss or costs payable under this Addi-tional Coverage regardless of the:

(1) Number of locations insured under this en-dorsement; or

(2) Number of claims-made.

d. If there is covered loss or damage to coveredproperty, not caused, in whole or in part, by"fungi", wet or dry rot, or bacteria, loss pay-ment will not be limited by the terms of thisAdditional Coverage, except to the extent that"fungi", wet or dry rot, or bacteria causes anincrease in the loss. Any such increase in theloss will be subject to the terms of this Addi-tional Coverage.

This coverage does not increase the limit of liabil-ity applying to the damaged covered property.

SECTION I – PERILS INSURED AGAINSTIn Form HO 00 03:A. Coverage A – Dwelling And Coverage B – Other

StructuresParagraph 2.c.(5) is deleted and replaced by the fol-lowing:

(5) Caused by constant or repeated seepage orleakage of water or the presence or condensa-tion of humidity, moisture or vapor, over a pe-riod of weeks, months or years unless suchseepage or leakage of water or the presenceor condensation of humidity, moisture or vaporand the resulting damage is unknown to all"insureds" and is hidden within the walls orceilings or beneath the floors or above theceil ings of a structure.

Paragraph 2.c.(6)(c) is deleted and replaced by thefollowing:

(c) Smog, rust or other corrosion;B. Coverage C – Personal Property

12. Accidental Discharge Or Overflow Of Water OrSteamParagraph b.(4) is deleted and replaced by thefollowing:

(4) Caused by constant or repeated seepage orleakage of water or the presence or condensa-tion of humidity, moisture or vapor, over a pe-riod of weeks, months or years unless suchseepage or leakage of water or the presenceor condensation of humidity, moisture or vaporand the resulting damage is unknown to all"insureds" and is hidden within the walls orceilings or beneath the floors or above theceil ings of a structure.

In Form HO 00 05:A. Under Coverages A, B and C:

Paragraph 2.d. is deleted and replaced by the follow-ing:

HO 04 27 04 02

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

d. Caused by constant or repeated seepage orleakage of water or the presence or condensa-tion of humidity, moisture or vapor, over a pe-riod of weeks, months or years unless suchseepage or leakage of water or the presenceor condensation of humidity, moisture or vaporand the resulting damage is unknown to all"insureds" and is hidden within the walls orceilings or beneath the floors or above theceil ings of a structure.

Paragraph 2.e.(3) is deleted and replaced by the fol-lowing:

(3) Smog, rust or other corrosion;SECTION I – EXCLUSIONSExclusion A.10. is added.

10. "Fungi", Wet Or Dry Rot, Or Bacteria"Fungi", Wet Or Dry Rot, Or Bacteria meaning thepresence, growth, proliferation, spread or any activityof "fungi", wet or dry rot, or bacteria.This exclusion does not apply:a. When "fungi", wet or dry rot, or bacteria results

from fire or lightning; orb. To the extent coverage is provided for in the

"Fungi", Wet Or Dry Rot, Or Bacteria AdditionalCoverage under Section I – Property Coverageswith respect to loss caused by a Peril InsuredAgainst other than fire or lightning.Direct loss by a Peril Insured Against resultingfrom "fungi", wet or dry rot, or bacteria is covered.

SECTION I – CONDITIONSCondition P. Policy Period is deleted and replaced bythe following:P. Policy Period

This policy applies to loss or costs which occur dur-ing the policy period.

SECTION II – CONDITIONSCondition A. Limit Of Liability is deleted and replacedby the following:A. Limit Of Liability

Our total liability under Coverage E for all damagesresulting from any one "occurrence" will not be morethan the Coverage E limit of liability shown in theDeclarations. This limit is the same regardless of thenumber of "insureds", claims-made or persons in-jured. All "bodily injury" and "property damage" re-sulting from any one accident or from continuous orrepeated exposure to substantially the same generalharmful conditions will be considered to be the resultof one "occurrence".

Our total liability under Coverage F for all medicalexpense payable for "bodily injury" to one person asthe result of one accident will not be more than theCoverage F limit of liability shown in the Declarations.However, our total liability under Coverage E for thetotal of all damages arising directly or indirectly, inwhole or in part, out of the actual, alleged or threat-ened inhalation of, ingestion of, contact with, expo-sure to, existence of, or presence of any "fungi", wetor dry rot, or bacteria will not be more than the Sec-tion II – Coverage E Aggregate Sublimit of Liabilityfor "Fungi", Wet Or Dry Rot, Or Bacteria. That sub-limit is the amount shown in the Schedule. This is themost we will pay regardless of the:1. Number of locations insured under the policy to

which this endorsement is attached;2. Number of persons injured;3. Number of persons whose property is damaged;4. Number of "insureds"; or5. Number of "occurrences" or claims-made.This sublimit is within, but does not increase, theCoverage E limit of liability. It applies separately toeach consecutive annual period and to any remainingperiod of less than 12 months, starting with the be-ginning of the policy period shown in the Declara-tions.

With respect to damages arising out of "fungi", wet or dryrot, or bacteria described in A. Limit Of Liability of thisendorsement, Condition B. Severability Of Insurance isdeleted and replaced by the following:B. Severability Of Insurance

This insurance applies separately to each "insured"except with respect to the Aggregate Sublimit of Li-ability described in this endorsement under Section II– Conditions, A. Limit Of Liability. This condition willnot increase the limit of liability for this coverage.

All other provisions of the policy apply.

- 3 -HO 04 27 04 02

Includes copyright material of Insurance Services Office, Inc. with its permissio- 4 -

WORKERS COMPENSATIONRESIDENCE EMPLOYEES – CALIFORNIA

HO 24 90 08 01

A. AgreementWe agree, with respect to "residence employees":UNDER COVERAGE ITo pay when due all benefits required of an "insured"by the California Workers' Compensation Law; and

UNDER COVERAGE IITo pay on behalf of an "insured" all damages for whichthe "insured" is legally liable because of "bodily injury"sustained by a "residence employee". The "bodily in-jury" must be caused by accident or disease and ariseout of and in the course of employment by the "insured"while:

1. In the United States of America, its territories orpossessions, or Canada, or

2. Temporarily elsewhere if the "residence employee"is a citizen or resident of the United States or Can-ada.

Coverage II does not apply to any suit brought in orjudgment rendered by any court outside the UnitedStates of America, its territories and possessions, orCanada, or to any action on such judgment.

B. Who Is CoveredA "residence employee" is covered if during the 90 cal-endar days immediately before the date of injury theemployee has:a. Actually been engaged in such employment by the

"insured" for no less than 52 hours, and

b. Earned no less than one hundred dollars ($100) inwages.

C. Application Of CoverageThis insurance applies only to "bodily injury" which oc-curs during the policy period. If the "bodily injury" is adisease, it must be caused or aggravated by the condi-tions of the "residence employee's" employment by the"insured".

D. Policy ProvisionsThis insurance is subject to all the provisions of thisendorsement and the following provisions of this policy:

1. Under Sections I and II – Conditions:B. Waiver Or Change Of Policy ProvisionsC. CancellationE. AssignmentF. Subrogation

2. Under Section II – Conditions:C. Duties After "Occurrence"F. Suit Against Us

3. Under Section II Liability Coverages, our agree-ment to defend an "insured" as provided under A.Coverage E – Personal Liability.

4. Under Section II – Additional Coverages:A. Claim Expenses.B. First Aid Expenses.

5. The definitions of "bodily injury", "business", "in-sured" and "residence employee".

E. Additional Provisions Applicable To Coverage IThe following provisions are applicable to Coverage I:1. We shall be directly and primarily liable to any "resi-

dence employee" of an "insured" entitled to thebenefits of the California Workers' CompensationLaw.

2. As between the "residence employee" and us, no-tice to or knowledge of the "occurrence" of the injuryon the part of an "insured" will be deemed notice orknowledge on our part.

3. The jurisdiction of an "insured" will, for the purposeof the law imposing liability for compensation, beour jurisdiction.

4. We will be subject to the orders, findings, decisionsor awards rendered against an "insured", under theprovisions of the law imposing liability for compen-sation, subject to the provisions, conditions and limi-tations of this policy. This policy shall govern as be-tween an "insured" and us as to payments by eitherin discharge or an "insured's" liability for compensa-tion.

5. The "residence employee" has a first lien upon anyamount which we owe you on account of this insur-ance. In case of your legal incapacity or inability toreceive the money and pay it to the "residence em-ployee", we will pay it directly to the "residence em-ployee". Your obligation to the "residence em-ployee" will be discharged to the extent of suchpayment.

F. Limits Of Liability Coverage IIOur total limit of liability will not exceed $100,000 for alldamages because of "bodily injury":1. Sustained by one or more "residence employees" in

any one accident; or

2. Caused by disease and sustained by a "residenceemployee".

Our total limit of liability will not exceed $500,000 for alldamages arising out of "bodily injury" by disease re-gardless of the number of "residence employees" whosustain "bodily injury" by disease.

n.HO 24 90 08 01


G. Other InsuranceThis insurance does not apply to any loss to whichother valid and collectible Workers' Compensation orEmployers' Liability Insurance applies.

H. Conformity To StatuteTerms of this insurance which are in conflict with theCalifornia Workers' Compensation Law are amended toconform to that law.

I. ExclusionsThis policy does not apply:1. To liability for additional compensation imposed on

an "insured" under Sections 4553 and 4557, Divi-sion IV, Labor Code of the State of California, be-cause of the serious and willful misconduct of an"insured", or because of "bodily injury" to an em-ployee under 16 years of age and illegally employedat the time of injury;

2. To liability for "bodily injury" arising out of "business"pursuits of an "insured".

3. Under Coverage II:a. To liability assumed by the "insured" under any

contract or agreement.

b. To "bodily injury" by disease unless a writtenclaim is made or suit brought against the "in-sured" within 36 months after the end of the pol-icy period.

c. To any obligation under a workers' compensa-tion, unemployment or disability benefits law orany similar law.

HO 24 90 08 01

LENDER’S LOSS PAYABLE ENDORSEMENT Form 438BFU NS

1. Loss or damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy, its successorsand assigns, hereinafter referred to as “the Lender”, in whatever form or capacity its interests may appear and whethersaid interest be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capac-ity, or otherwise, or vested in a nominee or trustee of said Lender.

2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, itssuccessors and assigns, shall not be invalidated nor suspended: (a) by any error, omission, or change respecting theownership, description, possession, or location of the subject of the insurance or the interest therein, or the title thereto;(b) by the commencement of foreclosure proceeding or the giving of notice of sale of any of the property covered by thispolicy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act, omission, neglect, or non-compliancewith any of the provisions of this policy, including any and all riders now or hereafter attached thereto, by the named in-sured, the borrower, mortgagor, trustor, vendee, owner, tenant, warehouseman, custodian, occupant, or by the agents ofeither or any of them or by the happening of any event permitted by them or either of them, or their agents, or which theyfailed to prevent, whether occurring before or after the attachment of this endorsement, or whether before of after a loss,which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate orsuspend the insurance at to the named insured, excluding herefrom, however, any acts or omissions of the Lender whileexercising active control and management of the property.

3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under theterms of this policy or on account of any change in occupancy or increase in hazard not permitted by this policy, thisCompany agrees to give written notice to the Lender or such non-payment of premium after sixty (60) days from andwithin on hundred and twenty (120) days after due date of such premium and it is a condition of the continuance of therights of the Lender hereunder that the Lender when so notified in writing by this Company of the failure of the insured topay such premium shall pay or cause to be paid the premium due within ten (10) days following receipt of the Company’sdemand in writing therefor. If the Lender shall decline to pay said premium or additional premium, the rights of Lenderunder this Lender’s Loss Payable Endorsement shall not be terminated before ten (10) days after the receipt of said writ-ten notice by the Lender.

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

5. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to theLender for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similarcharacter on said property under policies held by, payable to and expressly consented to by the Lender. Any ContributionClause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract

Form 438BFU NS


of insurance is hereby nullified, and also any Contribution Clause in any other endorsement or rider attached to this con-tract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has receivedreduction in the rate charged or has received extension of the coverage to include hazards other than fire and compliancewith such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon thepayment to it of the full amount of its claim, will subrogate this Company (pro rata with all other insurers contributing tosaid payment) to all of the Lender’s rights of contribution under said other insurance.

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

7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (days after in expirationunless an acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms ofthis Lender’ Loss Payable Endorsement, shall have been issued by some insurance company and accepted by theLender.

8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lenderor its agents, insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event,any privileges granted by this Lender’s Loss Payable Endorsement which are not also granted the insured under theterms and conditions of this policy and/or under other riders or endorsements attached thereto shall not apply to the in-surance hereunder as respects such property.

9. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender’s LossPayable Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of thepolicy.

Approved:Board of Fire Underwriters of the Pacific.California Bankers’ Association,

Committee on Insurance.

438BFU NS 05 42

PREMISES ALARM OR FIRE PROTECTION SYSTEM HO 04 16 10 00

We acknowledge the installation of an alarm systemand/or automatic sprinkler system approved by us on the"residence premises". You agree to maintain this systemor systems, for which we have granted a credit, in work-ing order and to let us know promptly of any change,including removal, made to the system(s).HO 04 16 10 00

INFLATION GUARD HO 04 46 10 00

SCHEDULE*

Percentage Amount:

4%

*Entry may be left blank if shown elsewhere in this policy for this coverage.

The limits of liability for Coverages A, B, C and D will beincreased annually by the percentage amount that is:1. Shown in the Schedule above; and2. Applied pro rata during the policy period.


SPECIAL PROVISIONS – CALIFORNIA HO 01 04 09 02

SECTION I – EXCLUSIONS8. Intentional Loss

The following paragraph is added:This exclusion does not apply, with respect to loss tocovered property caused by fire, to an "insured" whodoes not commit or conspire to commit, any act thatresults in loss by fire. We cover such "insured" onlyto the extent of that "insured's" legal interest, but notexceeding the applicable limit of liability.We may apply reasonable standards of proof toclaims for such loss.(This is Exclusion A.8. in Forms HO 00 03 andHO 00 05.)

SECTION I – CONDITIONSG. Suit Against Us is deleted and replaced by the fol-

lowing:G. Suit Against Us

No action can be brought against us unless there hasbeen full compliance with all of the terms under Sec-tion I of this policy and the action is started within oneyear after the date of loss.

I. Loss Payment is deleted and replaced by the follow-ing:

I. Loss PaymentWe will adjust all losses with you. We will pay youunless some other person is named in the policy or islegally entitled to receive payment. Loss will be pay-able 30 days after we receive your proof of loss and:a. Reach an agreement with you;b. There is an entry of a final judgment; orc. There is a filing of an appraisal award with us.

Q. Concealment Or Fraud is deleted and replaced bythe following:

Q. Concealment Or Fraud1. With respect to loss caused by fire, we do not pro-

vide coverage to the "insured" who has:a. Intentionally concealed or misrepresented any

material fact or circumstance;b. Engaged in fraudulent conduct;c. Made false statements;relating to this insurance.

2. With respect to loss caused by a peril other thanfire, we provide coverage to no "insureds" underthis policy, if whether before or after a loss, an "in-sured" has:a. Intentionally concealed or misrepresented any

material fact or circumstance;b. Engaged in fraudulent conduct;c. Made false statements;relating to this insurance.

(This is Condition P. in Forms HO 00 04.)SECTIONS I AND II – CONDITIONSC. Cancellation

Paragraphs 2.b, 2.c., 2.d., and 4. are deleted and re-placed by the following:

b. When this policy has been in effect for lessthan 60 days and is not a renewal with us, wemay cancel for any reason, except as providedbelow, by letting you know at least 10 days be-fore the date cancellation takes effect.We may not cancel this policy solely because:

(1) You accepted an offer of earthquake cov-erage;

(2) Corrosive soil conditions exist on the "resi-dence premises". This Provision (2) appliesonly if this policy includes one or more ofthe following, which exclude loss causedby corrosive soil conditions:

(a) Homeowners 3 – Special Form;(b) Homeowners 5 – Comprehensive

Form;(c) Special Personal Property Coverage

Endorsement;(d) Unit-Owners Coverage A Endorsement;

or(e) Unit-Owners Coverage C Endorsement;

or(3) You canceled or did not renew an earth-

quake policy issued by the CaliforniaEarthquake Authority (CEA) that includedan earthquake policy premium surcharge.However, we may cancel this policy if youhave accepted a new or renewal policy is-sued by the CEA that included an earth-quake policy premium surcharge, but youfailed to pay the earthquake policy pre-mium surcharge authorized by the CEA.

c. When this policy has been in effect for 60 daysor more, or at any time if it is a renewal withus, we may cancel if there has been:

(1) Conviction of a crime having as one of itsnecessary elements an act increasing thehazard insured against; or

(2) Discovery of fraud or material misrepresen-tation; by:

(a) Any "insured" or his or her representa-tive in obtaining this insurance; or

(b) You or your representative in pursuinga claim under this policy; or

(3) Discovery of grossly negligent acts oromissions substantially increasing any ofthe hazards insured against; or

- 7 -HO 01 04 09 02


(4) Physical changes in the property insuredagainst which result in the property becom-ing uninsurable.However, we may not cancel this policysolely because corrosive soil conditions ex-ist on the "residence premises" if this policyincludes one or more of the following,which exclude loss caused by corrosivesoil conditions:

(a) Homeowners 3 – Special Form;(b) Homeowners 5 – Comprehensive

Form;(c) Special Personal Property Coverage

Endorsement;(d) Unit-Owners Coverage A Endorsement;

or(e) Unit-Owners Coverage C Endorsement;

or(5) Acceptance of a new or renewal policy,

issued by the CEA that included an earth-quake policy premium surcharge, but youfailed to pay the earthquake policy pre-mium surcharge authorized by the CEA.

This can be done by notifying you at least 30days before the date cancellation takes effect.

d. When this policy is written for a period longerthan one year, we may cancel for any reasonat anniversary by notifying you at least 45days before the date cancellation takes effect.

4. If, when we cancel this policy, the return premiumis not refunded with the notice of cancellation, wewill refund it within 25 days after the date cancel-lation takes effect. If, when you cancel this policy,the return premium is not refunded when this pol-icy is returned to us, we will refund it within a rea-sonable time after the date cancellation takes ef-fect.

D. Nonrenewal is deleted and replaced by the follow-ing:

D. Nonrenewal1. We may elect not to renew this policy, subject to

the provisions of 2. below. We may do so by de-livering to you at your mailing address shown inthe Declarations, written notice at least 45 daysbefore the expiration date of this policy. Proof ofmailing will be sufficient proof of notice.

2. We will not refuse to renew this policy:a. Solely because you accepted an offer of earth-

quake coverage.However, the following applies only to insurerswho are associate participating insurers as es-tablished by Cal. Ins. Code Section 10089.16.We may elect not to renew this policy afteryou have accepted an offer of earthquakecoverage if one or more of the following rea-sons apply:

(1) The nonrenewal is based on sound under-writing principles that relate to the cover-ages provided by this policy and that areconsistent with the approved rating planand related documents filed with the De-partment of Insurance as required by exist-ing law;

(2) The Commissioner of Insurance finds thatthe exposure to potential losses willthreaten our solvency or place us in a haz-ardous condition. A hazardous conditionincludes, but is not limited to, a condition inwhich we make claims payments for lossesresulting from an earthquake that occurredwithin the preceding two years and that re-quired a reduction in policyholder surplusof at least 25% for payment of thoseclaims; or

(3) We have:(a) Lost or experienced a substantial re-

duction in the availability or scope of re-insurance coverage; or

(b) Experienced a substantial increase inthe premium charged for reinsurancecoverage of our residential property in-surance policies; and

the Commissioner has approved a plan forthe nonrenewals that is fair and equitable,and that is responsive to the changes inour reinsurance position.

b. Solely because you cancelled or did not renewan earthquake policy, issued by the CaliforniaEarthquake Authority, that included an earth-quake policy premium surcharge;

c. Solely because corrosive soil conditions existon the "residence premises". This Provision c.applies only if this policy includes one or moreof the following, which exclude loss caused bycorrosive soil conditions:

(1) Homeowners 3 – Special Form;(2) Homeowners 5 – Comprehensive Form;(3) Special Personal Property Coverage En-

dorsement;(4) Unit-Owners Coverage A Endorsement; or(5) Unit-Owners Coverage C Endorsement; or

d. Solely on the grounds that a claim is pendingunder the policy unless such claim is madeunder coverage for loss caused by an earth-quake; or

e. Solely on the basis of an "insured's" age.3. If this policy is written for a period of less than one

year, we agree not to refuse to renew except atthe end of an annual period commencing with theoriginal or renewal effective date.

All other provisions of this policy apply.

.

HO 01 04 09 02

- 9 -

ADVISORY NOTICE TO POLICY HOLDERS MSM2051

To our valued policyholders:

ADDITIONAL TIME TO FILE A REPLACEMENT COST CLAIM

Effective July 1, 2005, all policy forms and endorsements making referenceto a time limitation of 180 days relative to the conditions of the replacementcost provisions must now conform to Section 2051.5 of the California In-surance Code. The aforementioned time period has been extended to a pe-riod of at least 12 months in duration rather than the previous 180 days.

The specific language of the revised code is as follows:

Section 2051.5 (b) No time limit of less than 12 months from the date thatthe first payment toward the actual cash value is made shall be placedupon an insured in order to collect the full replacement cost of the loss,subject to the policy limit. Additional extensions of six months shall beprovided to policyholders for good cause. In the event of a loss relating toa “state of emergency,” as defined in Section 8558 of the GovernmentCode, no time limit of less than 24 months from the date that the first pay-ment toward the actual cash value is made shall be placed upon the in-sured in order to collect the full replacement cost of the loss, subject to thepolicy limit. Nothing in this section shall prohibit the insurer from allowingthe insured additional time to collect the full replacement cost.

THIS EXTENSION OF ADDITIONAL TIME IS APPLICABLE TO ALLHOMEOWNERS, FARMOWNERS AND DWELLING FIRE POLICIES ISSUEDBY MID-STATE MUTUAL INSURANCE COMPANY.

MSM2051 (0705)

OptionalCoverage

Endorsements

-


OPTIONAL COVERAGE ENDORSEMENTSNOTE: Coverage as described in the following optional endorsements is only applicable if indicated in the policy declara-tions with the appropriate form number and a premium charged.

REPLACEMENT COST COMPOSITE MS-RCC 07 93

The Replacement Cost Composite Endorsement is comprised of:MS-DRC – Dwelling Replacement Cost Endorsement,MS-RPP – Personal Property Replacement Endorsement,MS-CCD – Increased Limits for Coverage C and D – Section I,MS-CPP – Increased Limits on Certain Personal Property.

MS-RCC 07 93

DWELLING REPLACEMENT COST ENDORSEMENT MS-DRC 07 93

Coverage as described in the following optional endorsement is only applicable if indicated in the policy declarations withthe appropriate form number and a premium charged.

For an additional premium, this Company agrees toamend the present coverage amounts indicated on theDeclarations page in accordance with following provi-sions:1. If you have:

A. Allowed this Company to adjust the Coverage Alimit of liability and the premium in accordancewith:(1) the property evaluations we make; and(2) any increases in inflation; and

B. Notified us within 60 days of commencement ofany alterations to the dwelling which increasethe replacement cost of the dwelling by 5% ormore; and

C. Notified us within 30 days of completion of suchalterations and paid the increased premiumbased thereon; and

D. Elected to repair or replace the damaged build-ing;

We will:E. Increase the Coverage A limit of liability to equal

the current replacement cost of the dwelling ifthe amount of loss to the dwelling is more thanthe limit of liability indicated on the Declarationspage; however our maximum limit of liability un-der this coverage shall not exceed 150% of thelimit that is shown on the Declarations page forCoverage A – Dwelling.

F. Also increase by the same percentage appliedto Coverage A the limits of liability for CoveragesB, C and D. However, we will do this only if the

Coverage A limit of liability is increased underParagraph A above as result of Coverage Aloss:

G. Adjust the policy premium from the time of lossfor the remainder of the policy term based on theincreased limits of liability.

2. If you have complied with the provisions of this en-dorsement and there is loss to a building insuredunder SECTION I – Conditions C. Loss Settlement,subparagraph 2, is deleted and replaced by the fol-lowing:

2. We will pay the cost of repair or replacement,without deduction for depreciation. We willpay no more than the smallest of the follow-ing amounts for equivalent construction andand use on the same premises:

a. the replacement cost of the buildingor any parts of it; or

b. the amount actually and necessarilyspent to repair or replace the build-ing or any parts of it;

c. the limit of liability under this policyapplying to the building.

d. We will pay no more than the actualcash value of the damage until ac-tual repair or replacement is com-pleted.

e. You may disregard these replace-ment cost less settlement provisionsand make claim under this policy for

- 1 -MS-DRC 07 93


loss or damage to buildings on anactual cash value basis. If actualrepair or replacement is completedwithin 180 days after we have paidyour actual cash value claim, youmay then make claim, within such180 days, for any additional liabilityon a replacement cost basis in ac-cordance with these replacementcost loss settlement provisions.

3. Replacement cost means the cost to replace or re-pair the building or any part of it using material andworkmanship of like kind and quality as may be rea-sonably available to the building trades. Buildings orparts thereof that have an antique, historic or intrin-sic value or whose material or craftsmanship are nolonger available are covered to the extent that re-placement materials or workmanship reasonably

available to the construction industry and of similaror like kind or quality may be used in their place.

4. Except as specifically provided in SECTION I - Addi-tional Coverages – Land, we do not cover land, in-cluding land on which the dwelling and attachedstructures are located or which provides lateral, sub-jacent or other support to the dwelling and/or at-tached structures or any costs required to replace,rebuild, stabilize or otherwise restore the land.

5. Payment under this Replacement or Repair CostProtection Endorsement will not include any in-creased costs due to the enforcement of any build-ing codes, ordinances or laws regulating the con-struction, reconstruction, maintenance, repair ordemolition of building structures or other structures.

6. This endorsement will not increase the Earthquakelimit, if any, shown on the Declarations page.

All other policy provisions remain the same and continue to applyMS-DRC 07 93

PERSONAL PROPERTY REPLACEMENT COSTENDORSEMENT

MS-RPP 07 93


1. The provisions of this policy which applyto insurance afforded under SECTION I-Conditions C. Loss Settlement, subpara-graph 1, is amended as follows:A. Wherever the term “actual cash value” appears,

it is replaced by the term “replacement cost”, de-fined as the cost, at the time of loss, of a new arti-cle identical to the one damaged, destroyed or sto-len. When the identical article is no longer manu-factured or is not available, “replacement cost”shall mean the cost of a new article similar to thatdamaged, destroyed or stolen and which is ofcomparable quality and usefulness.

B. It is also agreed that, subject to the provisions ofthis endorsement, “replacement cost” coverageapplies to outdoor radio and television antennasand aerials, floor coverings including carpeting,awnings, domestic appliances and outdoor equip-ment, all whether attached to the building structureor not.

C. Excluded property. This endorsement shall not beapplicable to the following property:(1) antiques, fine arts, paintings, sculptures, tap-

estries, oriental carpets, statuary and similararticles which, by their inherent nature, cannotbe replaced with new articles;

(2) articles whose age or history contribute substan-tially to their value, including but not limited tomemorabilia, souvenirs and collector’s items;

(3) business property and property of others,wherever situated

(4) records, film, tape or other magnetic recordings;and

(5) property which is separately described and spe-cifically insured, in whole or part, by this or anyother insurance.

D. This company shall only be liable under this en-dorsement:(1) for any loss to property owned by an insured

which has been maintained in good and worka-ble condition and is being used or stored for useby the insured ; and

(2) when the damaged, destroyed or stolen propertyhas actually been repaired or replaced by theinsured or, at its option, by this Company.

E. This Company’s liability for loss under this endorse-ment shall not exceed the smallest of the followingamounts:(1) the limit of liability of this policy applicable to the

damaged, destroyed or stolen property includingthe special limits of liability on certain propertyset forth in this policy;

MS-RPP 07 93

(2) the replacement cost of the property or anypart thereof;

(3) the amount actually and necessarily spent bythe insured or, at its option, by this Companyin repairing or replacing the property or anypart thereof; or

(4) 400% of the actual cash value of the propertyor any part thereof.

F. SECTION I-Conditions, I. Loss Payment, isamended by adding the following:4. with respect to claims under Personal Property

Replacement Cost Endorsement, payment will

be made once in each 30 calendar days for ad-ditional liability arising out of this endorsement.

G. The named insured may elect to disregard this En-dorsement in making claim under this policy, butsuch election shall not prejudice the named in-sured’s right to make further claim within 180 daysafter loss for any additional liability brought about bythis endorsement.

H. This endorsement will not increase the Earthquakelimit, if any, shown on the Declarations page.

All other policy provisions remain the same and continue to apply

MS-RPP 07 93

INCREASED LIMITS FORCOVERAGE C AND D – SECTION I

MS-CCD 07 93


1. If the insured hasA. Allowed this Company to adjust the Coverage A

limit of liability and the premium in accordancewith:(1) the property evaluations we make; and(2) any increases in inflation; and

B. Notified us within 60 days of commencement ofany alterations to the dwelling which increasesthe replacement cost of the dwelling by 5% ormore; and

C. Notified us within 30 days of completion of such al-terations and paid the increased premium basedthereon;

2. Then:the limit of liability for Coverage C, SECTION I, is in-creased to 70% of the limit of liability for Coverage A,SECTION I, as set forth in this policy and;the limit of liability for Coverage D, SECTION I, is in-creased to 40% of the limit of liability for Coverage A,SECTION I, as set forth in this policy.

All other policy provisions remain the same and continue to applyMS-CCD 07 93

INCREASED LIMITS ON CERTAIN PERSONALPROPERTY ENDORSEMENT

MS-CPP 07 93


SECTION I- C. 3. Special Limits of Liability is amendedas follows:

a. $500 on money, bank notes, bullion, gold other thangoldware, silver other than silverware, platinum otherthan platinumware, coins, medals, scrip, storedvalue cards and smart cards.

b. $2,000 on securities, accounts, deeds, evidences ofdebt, letters of credit, notes other than bank notes,manuscripts, personal records, passports, ticketsand stamps. This dollar limit applies to these cate-gories regardless of the medium (such as paper orcomputer software) on which the material exists.

This limit includes the cost to research, replace or re-store the information from the lost or damaged mate-rial.

c. $2,000 on watercraft of all types, including their trail-ers, furnishings, equipment and outboard engines ormotors.

d. $2,000 on trailers or semi-trailers not used with water-craft of all types.

e. $2,000 for loss by theft of jewelry, watches, furs, pre-cious and semiprecious stones.

f. $3,000 for loss by theft of firearms and related equip-ment.

g. $5,000 for loss by theft of silverware, silver-platedware, goldware, gold-plated ware, platinumware, plati-


MS-CPP 07 93


num-plated ware and pewter-ware. This includesflatware, hollowware, tea sets, trays and trophies

made of or including silver, gold or pewter.

All other policy provisions remain the same and continue to apply

MS-CPP 07 93

ORDINANCE OR LAW INCREASED AMOUNTOF COVERAGE

HO 04 77 10 00


SCHEDULE*

New Total Percentage Amount: 50%

*Entry may be left blank if shown elsewhere in this policy for this coverage.

SECTION I – PROPERTY COVERAGESADDITIONAL COVERAGES

11.Ordinance Or LawThe total limit of liability that applies:a. To Coverage A, or

b. For Form HO 00 04, to Building Additions AndAlterations;

is increased from 10% to the percentage amountshown in the Schedule above.This is Additional Coverage 10. in Form HO 00 06.


HO 04 77 10 00

PERSONAL INJURY HO 24 82 10 00


DEFINITIONSThe following definition is added:"Personal injury" means injury arising out of one or moreof the following offenses, but only if the offense wascommitted during the policy period:1. False arrest, detention or imprisonment;2. Malicious prosecution;3. The wrongful eviction from, wrongful entry into, or

invasion of the right of private occupancy of a room,dwelling or premises that a person occupies, commit-ted by or on behalf of its owner, landlord or lessor;

4. Oral or written publication of material that slanders orlibels a person or organization or disparages a per-son's or organization's goods, products or services;or

5. Oral or written publication of material that violates aperson's right of privacy.

SECTION II – LIABILITY COVERAGESA. Coverage E – Personal Liability

The following is added to Coverage E – Personal Li-ability:Personal Injury CoverageIf a claim is made or suit is brought against an "in-sured" for damages resulting from an offense, de-fined under "personal injury", to which this coverageapplies, we will:1. Pay up to our limit of liability for the damages for

which an "insured" is legally liable. Damages in-clude prejudgment interest awarded against an"insured"; and

HO 24 82 10 00


2. Provide a defense at our expense by counsel ofour choice, even if the suit is groundless, false orfraudulent. We may investigate and settle anyclaim or suit that we decide is appropriate. Ourduty to settle or defend ends when our limit of li-ability for the offense has been exhausted bypayment of a judgment or settlement.

SECTION II – EXCLUSIONSWith respect to the coverage provided by this endorse-ment, Section II – Exclusions is deleted and replacedby the following:This insurance does not apply to:1. "Personal Injury":

a. Caused by or at the direction of an "insured" withthe knowledge that the act would violate the rightsof another and would inflict "personal injury";

b. Arising out of oral or written publication of mate-rial, if done by or at the direction of an "insured"with knowledge of its falsity;

c. Arising out of oral or written publication of materialwhose first publication took place before the be-ginning of the policy period;

d. Arising out of a criminal act committed by or at thedirection of an "insured";

e. Arising out of liability assumed by an "insured"under any contract or agreement except any in-demnity obligation assumed by an "insured" un-der a written contract directly relating to the own-ership maintenance or use of the premises;

f. Sustained by any person as a result of an offensedirectly or indirectly related to the employment ofthis person by an "insured";

g. Arising out of or in connection with a "business"conducted from an "insured location" or engagedin by an "insured", whether or not the "business"is owned or operated by an "insured" or employsan "insured". This exclusion applies but is not lim-ited to an act or omission, regardless of its natureor circumstance, involving a service or duty ren-dered, promised, owed, or implied to be providedbecause of the nature of the "business".This exclusion does not apply to:

(1) The rental or holding for rental of an "insuredlocation";

(a) On an occasional basis if used only as aresidence;

(b) In part for use only as a residence, unlessa single family unit is intended for use bythe occupying family to lodge more thantwo roomers or boarders; or

(c) In part, as an office, school, studio or pri-vate garage; and

(2) An "insured" under the age of 21 years in-volved in a part-time or occasional, self-employed "business" with no employees;

h. Arising out of civic or public activities performedfor pay by an "insured";

i. To you or an "insured" as defined under Definition5.a. or b.;This exclusion also applies to any claim made orsuit brought against you or an "insured":

(1) To repay; or(2) Share damages with; orAnother person who may be obligated to paydamages because of "personal injury" to an "in-sured"; or

j. Arising out of the actual, alleged or threateneddischarge, dispersal, seepage, migration, releaseor escape of pollutants at any time.

Pollutants means any solid, liquid, gaseous orthermal irritant or contaminant, including smoke,vapor, soot, fumes, acids, alkalis, chemicals andwaste. Waste includes materials to be recycled,reconditioned or reclaimed.

2. Any loss, cost or expense arising out of any:a. Request, demand or order that an "insured" or

others test for, monitor, clean up, remove, con-tain, treat, detoxify or neutralize, or in any way re-spond to, or assess the effects of, pollutants; or

b. Claim or suit by or on behalf of a governmentalauthority for damages because of testing for,monitoring, clean up, removing, containing, treat-ing, detoxifying or neutralizing, or in any way re-sponding to, or assessing the effects of pollutants.

SECTION II – ADDITIONAL COVERAGESWith respect to the coverage provided by this endorse-ment, Paragraph D. Loss Assessment is deleted andreplaced by the following:D. Loss Assessment

We will pay up to $1000 for your share of loss as-sessment charged against you, as an owner or ten-ant of the "residence premises", during the policy pe-riod by a corporation or association of property own-ers, when the assessment is made as a result of"personal injury" not excluded under this endorse-ment.We do not cover assessments charged against youor a corporation or association of property owners byany governmental body.Regardless of the number of assessments, the limitof $1000 is the most we will pay for loss arising out of"personal injury".

SECTION II CONDITIONSWith respect to the coverage provided by this endorse-ment, Section II – Condition I. Policy Period does notapply and Conditions A. Limit Of Liability, B. Sever-ability Of Insurance and C. Duties After "Occur-rence" are deleted and replaced by the following:

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A. Limit Of LiabilityOur total liability under "Personal Injury" Coverage forall damages resulting from any one offense will notbe more than the limit of liability shown in the Decla-rations for Coverage E. This limit is the same regard-less of the number of "insureds", claims made orsuits brought.

B. Severability Of InsuranceThis insurance applies separately to each "insured".This condition will not increase our limit of liability forany one offense.

C. Duties After OffenseIn the event of a covered offense, you or another "in-sured" will perform the following duties that apply.We have no duty to provide coverage under this pol-icy if your failure to comply with the following duties isprejudicial to us. You will help us by seeing that theseduties are performed:1. Give written notice to us or our agent as soon as

is practical, which sets forth:a. The identity of the policy and "named insured";b. Reasonably available information on the time,

place and circumstances of the offense; and

c. Names and addresses of any claimants andwitnesses;

2. Cooperate with us in the investigation, settlementor defense of any claim or suit;

3. Promptly forward to us every notice, demand,summons or other process relating to the offense;

4. At our request, help us:a. To make settlement;b. To enforce any right of contribution or indem-

nity against any person or organization whomay be liable to an "insured";

c. With the conduct of suits and attend hearingsand trials; and

d. To secure and give evidence and obtain theattendance of witnesses;

5. No "insured" shall, except at such "insured's" owncost, voluntarily make payment, assume obliga-tion or incur expense other than for first aid toothers at the time of the "personal injury".



SCHEDULED PERSONAL PROPERTY ENDORSEMENT HO 04 61 10 00


SCHEDULE*

Class Of Personal PropertyAmount OfInsurance Premium

1. Jewelry, as scheduled below. $ $2. Furs and garments trimmed with fur or consisting principally of fur, as

scheduled below.3. Cameras, projection machines, films and related articles of equipment, as

listed below.4. Musical instruments and related articles of equipment, as listed below.

You agree not to perform with these instruments for pay unless specificallyprovided under this policy.

5. Silverware, silver-plated ware, goldware, gold-plated ware and pewterware,but excluding pens, pencils, flasks, smoking implements or jewelry.

6. Golfer's equipment meaning golf clubs, golf clothing and golf equipment.7.a. Fine Arts, as scheduled below. This premium is based on your statement

that the property insured is located at the following address:atat

Total FineArts Amount$

7.b. For an additional premium, Paragraph 5.b. under C. Perils Insured Against isdeleted only for the articles marked with a double asterisk (**) in the schedulebelow.

Amount of7.b. only$

8. Postage Stamps9. Rare and Current Coins

Article Or Property Description Amount Of Insurance

THE AMOUNTS SHOWN FOR EACH ITEM IN THIS SCHEDULE ARE LIMITED BY THE LOSS SETTLEMENTCONDITION IN PARAGRAPH F.2.*Entries may be left blank if shown elsewhere in this policy for this coverage.

We cover the classes of personal property which are indi-cated in the Schedule above by an amount of insurance.

This coverage is subject to the:1. Definitions;2. Section I – Conditions; and3. Sections I and II – Conditions;in the policy and all provisions of this endorsement.Any deductible stated in this policy does not apply to thiscoverage.

A. Newly Acquired Property – Jewelry, Furs, CamerasAnd Musical Instruments Only

1. We cover newly acquired property of a class ofproperty already insured. The lesser of the followinglimits applies:a. 25% of the amount of insurance for that class of

property; or

b. $10,000.2. When you acquire new property you must:

a. Report these objects to us within 30 days; and

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HO 24 82 10 00


b. Pay the additional premium from the date ac-quired.

B. Newly Acquired Fine ArtsWhen Fine Arts are scheduled, we cover objects of artacquired during the policy period for their actual cashvalue. However, we will pay no more than 25% of theamount of insurance for fine arts scheduled. For cover-age to apply for newly acquired fine arts you must:1. Report these objects to us within 90 days; and2. Pay the additional premium from the date acquired.

C. Perils Insured AgainstWe insure against risks of direct loss to property de-scribed only if that loss is a physical loss to property;however, we do not insure loss caused by any of thefollowing:1. Wear and tear, gradual deterioration or inherent

vice.2. Insects or vermin.3. War, including the following and any consequence

of any of the following:a. Undeclared war, civil war, insurrection, rebellion



pose.Discharge of a nuclear weapon will be deemed awarlike act even if accidental.

4. Nuclear Hazard, to the extent set forth in the Nu-clear Hazard Clause of Section I – Conditions.

5. If Fine Arts are covered:a. Repairing, restoration or retouching process;b. Breakage of art glass windows, glassware,

statuary, marble, bric-a-brac, porcelains andsimilar fragile articles. We cover loss by break-age if caused by:

(1) Fire or lightning;(2) Explosion, aircraft or collision;(3) Windstorm, earthquake or flood;(4) Malicious damage or theft;(5) Derailment or overturn of a conveyance.

We do not insure loss, from any cause, to propertyon exhibition at fair grounds or premises of nationalor international expositions unless the premises arecovered by this policy.

6. If Postage Stamps or Rare and Current Coins col-lections are covered:a. Fading, creasing, denting, scratching, tearing or

thinning;b. Transfer of colors, inherent defect, dampness,

extremes of temperature, or depreciation;c. Being handled or worked on;

d. The disappearance of individual stamps, coinsor other articles unless the item is:

(1) Described and scheduled with a specificamount of insurance; or

(2) Mounted in a volume and the page it is at-tached to is also lost; or

e. Shipping by mail other than registered mail.However, we do not insure loss, from any cause,

to property in the custody of transportation compa-nies or not part of a stamp or coin collection.

D. Territorial LimitsWe cover the property described worldwide.

E. Special Provisions1. Fine Arts: You agree that the covered property will

be handled by competent packers.2. Golfer's Equipment includes your other clothing

while contained in a locker when you are playinggolf. We cover golf balls for loss by fire or burglaryprovided there are visible marks of forcible entryinto the building, room or locker.

3. Postage Stamps includes the following owned by orin the custody or control of the "insured":a. Due, envelope, official, revenue, match and

medicine stamps;b. Covers, locals, reprints, essays, proofs and

other philatelic property; orc. Books, pages and mounting of items in a. and b.

4. Rare and Current Coins includes the followingowned by or in custody or control of the "insured":a. Medals, paper money, bank notes;b. Tokens of money and other numismatic prop-

erty; orc. Coin albums, containers, frames, cards and dis-

play cabinets in use with such collection.F. Conditions

1. Loss ClauseThe amount of insurance under this endorsementwill not be reduced except for a total loss of ascheduled article. We will refund the unearned pre-mium applicable to such article after the loss or youmay apply it to the premium due for the replace-ment of the scheduled article.

2. Loss SettlementCovered property losses are settled as follows:a. Fine Arts

(1) We will pay, for each article designated in theSchedule, the full amount shown in theSchedule which is agreed to be the value ofthat article or property. At our request, youwill surrender that article or property to us ifnot lost or stolen.

HO 04 61 10 00


(2) If the scheduled article or property is a pair orset, or consists of several parts when com-plete, we will pay the full amount shown inthe Schedule for that pair, set or complete ar-ticle. At our request, you will surrender thatarticle or property to us if not lost or stolen.

(3) In the event lost or stolen property is recov-ered and we have paid you the full amountshown in the Schedule for that property, youwill surrender that property to us.

(4) We will, at your request, sell back to you, at aprice you and we agree upon, any class ofproperty or scheduled article you surren-dered to us to comply with the terms in (1),(2) or (3) above.

b. POSTAGE STAMPS OR RARE ANDCURRENT COIN COLLECTIONIN CASE OF LOSS TO ANY SCHEDULEDITEM, THE AMOUNT TO BE PAID WILL BEDETERMINED IN ACCORDANCE WITHPARAGRAPH 2.c. OTHER PROPERTY.WHEN COINS OR STAMPS ARE COVEREDON A BLANKET BASIS, WE WILL PAY THECASH MARKET VALUE AT TIME OF LOSSBUT NOT MORE THAN $1,000 ON ANYUNSCHEDULED COIN COLLECTION NORMORE THAN $250 FOR ANY ONE STAMP,COIN OR INDIVIDUAL ARTICLE OR ANY ONEPAIR, STRIP, BLOCK, SERIES SHEET,COVER, FRAME OR CARD.WE WILL NOT PAY A GREATER PROPOR-TION OF ANY LOSS ON BLANKET PROP-ERTY THAN THE AMOUNT INSURED ONBLANKET PROPERTY BEARS TO THE CASHMARKET VALUE AT TIME OF LOSS.

c. OTHER PROPERTY(1) THE VALUE OF THE PROPERTY IN-

SURED IS NOT AGREED UPON BUT WILLBE ASCERTAINED AT THE TIME OFLOSS OR DAMAGE. WE WILL NOT PAYMORE THAN THE LEAST OF THEFOLLOWING AMOUNTS:

(a) THE ACTUAL CASH VALUE OF THEPROPERTY AT THE TIME OF LOSS ORDAMAGE;

(b) THE AMOUNT FOR WHICH THEPROPERTY COULD REASONABLY BEEXPECTED TO BE REPAIRED TO ITSCONDITION IMMEDIATELY PRIOR TOLOSS;

(c) THE AMOUNT FOR WHICH THE AR-TICLE COULD REASONABLY BEEXPECTED TO BE REPLACED WITHONE SUBSTANTIALLY IDENTICAL TOTHE ARTICLE LOST OR DAMAGED;OR

(d) THE AMOUNT OF INSURANCE.(2) THE ACTUAL CASH VALUE CONDITION

IN PARAGRAPH (1)(a) ABOVE DOES NOTAPPLY IF, AT THE TIME OF LOSS, COV-ERAGE C PERSONAL PROPERTYCOVERED IN THE POLICY TO WHICHTHIS ENDORSEMENT IS ATTACHED ISSUBJECT TO REPLACEMENT COSTLOSS SETTLEMENT.

3. PAIR, SET OR PARTS OTHER THAN FINE ARTSa. LOSS TO A PAIR OR SET

IN CASE OF A LOSS TO A PAIR OR SET WEMAY ELECT TO:

(1) REPAIR OR REPLACE ANY PART TORESTORE THE PAIR OR SET TO ITSVALUE BEFORE THE LOSS; OR

(2) PAY THE DIFFERENCE BETWEEN AC-TUAL CASH VALUE OF THE PROPERTYBEFORE AND AFTER THE LOSS.

b. PARTSIN CASE OF A LOSS TO ANY PART OFCOVERED PROPERTY, CONSISTING OFSEVERAL PARTS WHEN COMPLETE, WEWILL PAY FOR THE VALUE OF THE PARTLOST OR DAMAGED.

HO 04 61 10 00

EARTHQUAKE INSURANCE ENDORSEMENT MS-EQ 07 93

Coverage as described in the following optional endorsement is only applicable if indicated in the policy declarationswith the appropriate form number and a premium charged.

For the additional Premium stated in the Declarationspage, we agree to insure you for direct physical loss toproperty covered under Section I caused by earthquakeincluding land shock waves or tremors before, duringand after a volcanic eruption.

1. Limit of liability. We provide a single, aggregatelimit of liability which applies to the Dwelling, OtherStructures, Personal Property and Loss of Use forlosses caused by earthquake. If a loss occurs, ourlimit of liability in any one occurrence will not ex-ceed the Earthquake Limit stated in the Declara-tions.

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This Earthquake Limit is part of, not in addition to,the limits of liability stated in this policy for Cover-ages A, B, C, or D. Therefore, your earthquake cov-erage does not increase your Section I limits of li-ability.

Other provisions of this policy will not increase theEarthquake Limit.

2. One or More Earthquake Shocks that occur withina 168 hour period constitute a single earthquake.

3. Deductible Clause. The following deductible provi-sion replaces any other deductible provision in thispolicy with respect to loss covered under this en-dorsement.

We will pay only that part of the loss which exceeds10% of the Earthquake Limit. The amount of thisdeductible applies to the total amount of loss for allcovered property.

4. Special Exclusions.

a. We do not cover loss resulting directly or indi-rectly from flood or any nature or tidal wavewhether caused by, or resulting from, contrib-uted to or aggravated by earthquake.

b. We do not cover loss to exterior masonry ve-neer. The value of exterior masonry veneer willbe deducted from the loss before applying thedeductible clause. For the purpose of this ex-clusion, stucco is not considered masonry ve-neer.

5. Other Earthquake Coverages.

The following coverage applies when the amount ofdirect loss form Earthquake exceeds the 10% de-ductible applicable to your Earthquake Limit.

a. COVERAGE D – LOSS OF USE. If the amountto be paid for the actual damage to your coveredproperty plus the amount to be paid for Cover-age D – Loss of Use is more than the Earth-quake Limit, an additional $1,500 is available forCoverage D – Loss of Use.

b. We will pay up to 10% of the Earthquake Limitfor payment of services, except as provided bypublic entities, for the purpose of structural engi-neering costs to determine the habitability of theresidential dwelling or coverage for the home-owner’s liability for the actual costs of residentialdemolition due to structural condemnation as theresult of damage or loss from the peril of earth-quake.

This coverage is additional insurance.

This coverage does not insure land or include the cost offilling, stabilizing, or restoring land.

The Section I – Earth Movement exclusion does notapply to loss caused by earthquake including land shockwaves or tremors before, during or after a volcanic erup-tion.


MS-EQ 07 93

EARTHQUAKE – RECONSTRUCTION COST COVERAGE MS-EQR 07 93


In consideration of an additional premium, the following coverage applies when the amount ofdirect loss from earthquake exceeds the 10% deductible applicable to your Earthquake Limit.

After you have determined and we have verified the steps necessary to fit or retrofit the insured dwelling to reduce theearthquake damage hazard, we will pay up to ten thousand dollars ($10,000) for the purpose of reconstruction costs re-quired to bring the insured dwelling up to the required current local residential building code standards as required by thelocal government entity as part of the approval of the reconstruction permit process after the a covered loss from the peril ofearthquake.

This coverage is additional insurance and is subject to the Earthquake deductible specified in the policy.

All other provisions of the policy apply.

MS-EQR 07 93

MS-EQR 07 93

Documents

MID-STATE MUTUAL INSURANCE COMPANY Packet Complete 0406.pdf · MID-STATE MUTUAL INSURANCE COMPANY NOTIFICATION OF INFORMATION PRACTICES To help protect your right to privacy, you