State Farm® Renters Policy

State Farm

Renters

Policy

Oklahoma

H4-2136

This policy is one of the broadest

forms available today, and provides

you with outstanding value for your in-

surance dollars. However, we want

to point out that every policy contains

limitations and exclusions. Please

read your policy carefully, especially

“Losses Not Insured” and all exclusions.

©, Copyright, State Farm Mutual Automobile Insurance Company, 2017

H4-2136

RENTERS POLICY

TABLE OF CONTENTS

AGREEMENT ................................................................. 1

DEFINITIONS ................................................................. 1

DEDUCTIBLE ................................................................. 5

SECTION I – PROPERTY COVERAGES ...................... 5

COVERAGE B – PERSONAL PROPERTY ............... 5

Property Covered ............................................... 5

Special Limits of Liability .................................... 5

Property Not Covered .......................................... 6

COVERAGE C – LOSS OF USE ................................ 7

Additional Living Expense .................................. 7

Fair Rental Value ................................................ 7

Prohibited Use ..................................................... 7

SECTION I – ADDITIONAL COVERAGES ................ 8

Debris Removal .................................................. 8

Temporary Repairs ............................................. 8

Trees, Shrubs, and Landscaping ....................... 8

Building Additions and Alterations ...................... 8

Property Removed ............................................. 8

Credit Card, Bank Fund Transfer Card,

Forgery, and Counterfeit Money ......................... 8

Power Interruption .............................................. 9

Refrigerated Products ........................................ 9

Arson Reward ..................................................... 9

Volcanic Action ................................................... 9

Collapse ............................................................. 9

Locks and Remote Devices .............................. 10

Fuel Oil Release ............................................... 10

INFLATION COVERAGE ......................................... 11

SECTION I – LOSSES INSURED ................................ 11

COVERAGE B – PERSONAL PROPERTY ............. 11

SECTION I – LOSSES NOT INSURED ........................ 13

SECTION I – LOSS SETTLEMENT ............................. 15

COVERAGE B – PERSONAL PROPERTY ............. 15

B1 – Limited Replacement Cost Loss

Settlement ........................................................ 15

B2 – Depreciated Loss Settlement ................... 16

SECTION I – CONDITIONS .......................................... 16

Insurable Interest and Limit of Liability ...................... 16

Your Duties After Loss .............................................. 16

Loss to a Pair or Set ................................................. 17

Appraisal ................................................................... 17

Other Insurance ........................................................ 18

Suit Against Us ......................................................... 18

Our Option ................................................................ 18

Loss Payment ........................................................... 18

Abandonment of Property ......................................... 19

Glass Replacement ................................................... 19

No Benefit to Bailee .................................................. 19

Recovered Property .................................................. 19

Assignment of Claim ................................................. 19

SECTION II – LIABILITY COVERAGES ...................... 19

COVERAGE L – PERSONAL LIABILITY ................ 19

COVERAGE M – MEDICAL PAYMENTS TO

OTHERS ................................................................... 19

SECTION II – ADDITIONAL COVERAGES ............. 19

Claim Expenses ................................................ 20

First Aid Expenses ............................................ 20

Damage to Property of Others .......................... 20

SECTION II – EXCLUSIONS ........................................ 20

SECTION II – CONDITIONS ......................................... 24

Limit of Liability ......................................................... 24

Severability of Insurance ........................................... 24

Duties After Loss ....................................................... 24

Coverage M Requirements ....................................... 25

©, Copyright, State Farm Mutual Automobile Insurance Company, 2017

H4-2136

Payment of Claim – Coverage M or Damage

to Property of Others ................................................ 25

Suit Against Us ......................................................... 25

Bankruptcy of an Insured .......................................... 25

Other Insurance – Coverage L .................................. 25

SECTION I AND SECTION II – CONDITIONS ............. 25

Policy Period ............................................................. 25

Concealment or Fraud .............................................. 25

Liberalization Clause ................................................. 25

Waiver or Change of Policy Provisions ..................... 25

Cancellation .............................................................. 26

Nonrenewal ............................................................... 26

Assignment of Policy ................................................. 26

Subrogation and Reimbursement ............................. 26

Death ........................................................................ 27

Conformity to State Law ............................................ 27

Premium .................................................................... 27

Right to Inspect ......................................................... 28

Joint and Individual Interests .................................... 28

Change of Policy Address ......................................... 28

Electronic Delivery .................................................... 28

Our Rights Regarding Claim Information .................. 28

Duties Regarding Claim Information ......................... 29

OPTIONAL POLICY PROVISIONS .............................. 29

Option BP – Business Property ................................ 29

Option BU – Business Pursuits ................................. 29

Option FA – Firearms ................................................ 30

Option IO – Incidental Business ................................ 30

Option JF – Jewelry and Furs ................................... 31

Option SG – Silverware and Goldware Theft ............ 31

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2017

RENTERS POLICY

AGREEMENT

We agree to provide the insurance described in this policy:

1. based on your payment of premium, in a form ac-

ceptable to us, for the coverages you chose;

2. based on your compliance with all applicable provi-

sions of this policy; and

3. based on the information you have given us and

your statements in this agreement.

You agree, by acceptance of this policy, that:

1. you will pay premiums when due and comply with the

provisions of this policy;

2. the statements in this agreement are your state-

ments and are true;

3. we insure you on the basis your statements are true;

and

4. this policy contains all of the agreements between

you and us and any of our agents.

Unless otherwise indicated in the application, you state

that during the five years preceding the time of your appli-

cation for this insurance you have not had any losses, in-

sured or not.

When you request changes to this policy, or the infor-

mation or factors used to calculate the premium for this

policy changes during the policy period, we may adjust the

premium in accordance with the change during the policy

period and you must pay any additional premium due

within the time we specify.

DEFINITIONS

We define the following words and phrases for use

throughout this policy. These definitions apply to the sin-

gular, plural, and possessive forms of these words and

phrases. Defined words and phrases are printed in bold

italics.

1. “actual cash value” means the value of the dam-

aged part of the property at the time of loss, calcu-

lated as the estimated cost to repair or replace such

property, less a deduction to account for pre-loss de-

preciation. For this calculation, all components of this

estimated cost including, but not limited to:

a. materials, including any tax;

b. labor, including any tax; and

c. overhead and profit;

are subject to depreciation.

The depreciation deduction may include such consid-

erations as:

a. age;

b. condition;

c. reduction in useful life;

d. obsolescence; and

e. any pre-loss damage including wear, tear, or de-

terioration;

of the damaged part of the property.

2. “bodily injury” means physical injury, sickness, or

disease to a person. This includes required care,

loss of services, and death resulting therefrom.

Bodily injury does not include:

a. any of the following which are communicable:

disease, bacteria, parasite, virus, or other or-

ganism, any of which are transmitted by any in-

sured to any other person;

b. the actual or alleged exposure to any such dis-

ease, bacteria, parasite, virus, or other organism

by any insured to any other person; or

c. emotional distress, mental anguish, humiliation,

mental distress, mental injury, or any similar in-

jury unless it arises out of actual physical injury

to some person.

3. “building structure” means a structure fully en-

closed with permanent walls and a roof. A permanent

wall or roof does not include any kind of temporary

materials including but not limited to tarps, plastic

sheeting, or other similar material. A structure that is

otherwise fully enclosed with permanent walls and a

roof, that is undergoing repairs due to a recent loss

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insured, using materials such as tarps, plastic sheet-

ing, or other similar material, is still considered a

building structure.

A building structure includes:

a. the foundation supporting the structure, includ-

ing:

(1) slabs;

(2) basement walls;

(3) crawl space walls;

(4) footings; and

(5) gravel, stone, or sand, used as fill material

and located not more than 12 inches di-

rectly below a slab described in item a.(1),

including water supply lines, domestic wa-

ter pipes, and sewer pipes located within

this fill material; and

b. wall-to-wall carpeting attached to the structure.

4. “business” means any full-time or part-time activity,

trade, profession, employment, or occupation or a

commercial, mercantile, or industrial undertaking

of an economic nature. It does not matter whether

it is continuous or regular, is a secondary or sup-

plemental source of income, or is an insured’s prin-

cipal means of livelihood. Profit and profit motive are

irrelevant.

Business does not include:

a. volunteer activities for a not-for-profit or non-

profit organization or public agency for which no

money is received other than payment of ex-

penses;

b. incidental and infrequent personal economic ac-

tivity such as a hobby, garage or yard sale, or

traditional farm activities when the farm products

are intended only for the personal use of the in-

sured;

c. any occasional or part-time self-employed ac-

tivity by a person under 19 years of age that in-

volves no employees or subcontracted

independent contractors and is a type of activity

normally performed by persons under 19 years

of age, including but not limited to, child care,

lawn mowing, or paper delivery;

d. the ownership, maintenance, or use of systems

and equipment used to generate electrical

power up to but not exceeding 125 percent of

the actual electrical power usage by the resi-

dence premises in the 12-month period prior to

the date of the loss; or

e. ownership of the residence premises by the

person or organization shown in the Declara-

tions as Additional Insured.

5. “Declarations” means the policy Declarations, any

amended Declarations, the most recent renewal

Declarations, an Evidence of Insurance form, or any

endorsement changing any of these.

6. “diminution in value” means any reduction in the

value of any covered property prior to or following re-

pair or replacement as compared to the value of that

property immediately before the loss.

7. “dwelling” means that part of the building structure

on the residence premises used as the primary private

residence.

8. “fungus” means any type or form of fungus, including

mold, mildew, mycotoxins, spores, scents, or byprod-

ucts produced or released by fungi.

9. “insured”

means:

a. you;

b. your relatives; and

c. any other person under the age of 21 in the care

of a person described above.

Under Section II, insured also means:

d. the person or organization legally responsible

for animals or watercraft to which this policy ap-

plies. However, the animal or watercraft must be

owned by you or a person included in 9.b. or 9.c.

above. A person or organization using or having

custody of these animals or watercraft in the

course of a business, or without permission of

the owner, is not an insured; and

e. with respect to any vehicle to which this policy

applies, any person while engaged in your em-

ployment or the employment of a person in-

cluded in 9.b. or 9.c. above.

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10. “insured location” means:

a. the residence premises;

b. the part of any other premises, other structures,

and grounds used by you as a residence. This

includes premises, structures, and grounds you

acquire while this policy is in effect for your use

as a residence;

c. any premises used by you in connection with

the premises included in 10.a. or 10.b. above;

d. any part of a premises not owned by an insured

but where an insured is temporarily residing;

e. land owned by or rented to an insured on which

a one or two family dwelling is being constructed

as a residence for an insured;

f. individual or family cemetery plots or burial

vaults owned by an insured;

g. any part of a premises occasionally rented to an

insured for purposes other than business;

h. vacant land owned by or rented to an insured.

For the purposes of this definition, vacant land

does not include:

(1) farm land;

(2) land containing a residence; or

(3) land containing fences, corrals, boat docks,

tool sheds, barns, grain bins, and similar

structures, unless they are used solely for

the personal use of the insured; or

i. farm land (without buildings), rented or held for

rental to others, but not to exceed a total of 500

acres, regardless of the number of locations.

11. “loss insured” means a loss as described under

SECTION I – LOSSES INSURED, COVERAGE B –

PERSONAL PROPERTY.

12. “motor vehicle”, when used in Section II of this pol-

icy, means:

a. a land motor vehicle designed for travel on

public roads or subject to motor vehicle registra-

tion;

b. a trailer or semi-trailer designed for travel on

public roads and subject to motor vehicle regis-

tration;

c. a “recreational or utility vehicle” while off an in-

sured location. “Recreational or utility vehicle”

means a motorized vehicle designed for recrea-

tion or utility purposes, used principally off public

roads, and that is owned or leased by an in-

sured. This includes, but is not limited to, a mo-

torized all-terrain vehicle, side-by-side vehicle,

utility work vehicle, amphibious vehicle, dune

buggy, go-cart, golf cart, snowmobile, trailbike,

minibike, and personal assistive mobility device.

“Leased” does not include temporary rental;

d. a “locomotive” while off an insured location.

“Locomotive” means a self-propelled vehicle for

pulling or pushing freight or passenger cars on

tracks that is large enough to carry a person and

is owned or leased by an insured. “Leased”

does not include temporary rental;

e. a bulldozer, track loader, backhoe, high-hoe,

trencher, grader, crane, self-propelled scraper,

excavator, pipe-layer, cherry picker, telehandler,

logging vehicle, mining vehicle, or road building

vehicle that is owned or leased by an insured

while off an insured location. “Leased” does

not include temporary rental; and

f. any vehicle while being towed or pushed by or

carried on a vehicle included in 12.a. through

12.e. above.

The following are not motor vehicles:

a. a boat, camper, home, or utility trailer not being

towed or pushed by or carried on a vehicle in-

cluded in 12.a. through 12.e. above;

b. a motorized land vehicle in storage on an in-

sured location not intended to be operated for

an extended period of time and rendered inop-

erable by placing the vehicle on blocks or re-

moving parts essential for its operation;

c. a motorized golf cart while used for golfing pur-

poses;

d. a motorized vehicle or trailer designed to assist

persons with disabilities that is not designed for

travel on public roads or subject to motor vehicle

registration; or

e. a commercially manufactured two, three, or four

wheeled personal conveyance powered only by

or assisted by an unmodified motor or engine

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with a manufacturer’s power rating of no more

than 1 horsepower and capable of a top speed

of no more than 20 miles per hour.

13. “occurrence”, when used in Section II of this policy,

means an accident, including accidental exposure to

conditions, which first results in:

a. bodily injury; or

b. property damage;

during the policy period. All bodily injury and prop-

erty damage resulting from one accident, series of re-

lated accidents, or from continuous and repeated

exposure to the same general conditions is considered

to be one occurrence.

14. “property damage” means physical damage to or

destruction of tangible property, including loss of use

of this property. Theft or conversion of property by

any insured is not property damage.

15. “relative” means any person related to you by:

a. blood;

b. adoption;

c. marriage; or

d. civil union, domestic partnership, or other substan-

tially similar legal relationship that is recognized

and valid in the state where, and at the time when,

the legal relationship was established;

and who resides primarily with you.

16. “residence employee” means an employee of an

insured, or an employee leased to an insured by a

labor leasing firm under an agreement between an

insured and the labor leasing firm, who performs du-

ties, including household or domestic services, in

connection with the maintenance or use of the resi-

dence premises. This includes employees who per-

form similar duties elsewhere for you. This does not

include employees while performing duties in con-

nection with the business of an insured.

17. “residence premises” means:

a. the one, two, three, or four family dwelling, other

structures and grounds; or

b. that part of any other building structure;

where you reside and which is shown in the Decla-

rations.

18. “State Farm Companies” means one or more of the

following:

a. State Farm Mutual Automobile Insurance Com-

pany;

b. State Farm Fire and Casualty Company; and

c. subsidiaries or affiliates of either 18.a. or 18.b.

above.

19. “vacant dwelling” means:

a. a dwelling:

(1) that has not been occupied as a residence

for more than 30 consecutive days immedi-

ately before the loss; and

(2) where a predominant amount of personal

property has been removed or is absent

such that the dwelling is not functional as a

habitual place of residence.

A dwelling will be considered occupied only if it

is being used as a habitual place of residence

with your knowledge and approval.

b. A dwelling that is under active construction will

not be considered a vacant dwelling. A dwell-

ing is under active construction when it is:

(1) being built as a new structure;

(2) being repaired due to damage otherwise

covered by this policy; or

(3) undergoing substantial improvements, ren-

ovations, remodeling, or modifications;

and the construction results in substantial con-

tinuing activities by persons associated with the

construction project at the premises during the

relevant time periods.

20. “we”, “us”, and “our” mean the Company shown in

the Declarations.

21. “you” and “your” mean the person or persons

shown as “Named Insured” in the Declarations. If a

“Named Insured” shown in the Declarations is a hu-

man being, then you and your include:

a. a spouse of a “Named Insured”;

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b. a party to a civil union with a “Named Insured”;

c. a domestic partner of a “Named Insured”; or

d. a person in a substantially similar legal relation-

ship with a “Named Insured”;

if such relationship is recognized and valid in the

state where, and at the time when, the legal relation-

ship was established, so long as the person in the

above relationship resides primarily with that “Named

Insured”.

DEDUCTIBLE

In case of loss under this policy, we will pay, subject to

specified policy limits, only that part of the amount of the

loss that exceeds the deductible amount shown in the

Declarations. Deductibles will be applied per occurrence.

Deductibles apply to specific losses as described in this

policy.

SECTION I – PROPERTY COVERAGES

COVERAGE B – PERSONAL PROPERTY

1. Property Covered.

a. We cover personal property owned or used by an

insured while it is anywhere in the world. This in-

cludes structures not permanently attached to or

otherwise forming a part of the realty. At your

request, we will cover personal property:

(1) owned by others while the property is on

the part of the residence premises occu-

pied exclusively by an insured;

(2) owned by a guest or a residence em-

ployee, while the property is in any other

residence occupied by an insured; and

(3) owned by roomers, boarders, tenants, and

other residents, any of whom are related to

you.

b. We cover personal property usually located at

an insured’s residence, other than the resi-

dence premises, for up to $1,000 or 10% of the

Coverage B limit, whichever is greater. This lim-

itation does not apply to personal property:

(1) in a newly acquired principal residence for

the first 30 days after you start moving the

property there. If the residence premises is

a newly acquired principal residence, per-

sonal property in your immediate past prin-

cipal residence is not subject to this

limitation for the first 30 days after the in-

ception of this policy; and

(2) of a student who is an insured while lo-

cated at a residence away from the resi-

dence premises.

Special Limits of Liability. These limits do not in-

crease the Coverage B limit. The special limit for

each of the following categories is the total limit for

each loss for all property in that category:

a. $200 on money, coins, and medals, including

any of these that are a part of a collection, bank

notes, bullion, gold other than goldware, silver

other than silverware, and platinum;

b. $1,500 on property used or intended for use in a

business, including merchandise held as sam-

ples or for sale or for delivery after sale, while on

the residence premises. This coverage is lim-

ited to $750 on such property away from the res-

idence premises.

Electronic data processing system equipment or

the recording or storage media used with that

equipment is not included under this coverage,

and is addressed in item c. below;

c. $10,000 on electronic data processing system

equipment used or intended for use in a busi-

ness, including but not limited to computers, tab-

lets, mobile personal communication equipment,

global positioning systems, mobile personal elec-

tronic devices used for the reproduction of sound,

and standard media or non-media equipment for

use with the above devices;

d. $1,500 on securities, checks, cashiers checks,

travelers checks, money orders, gift certificates,

gift cards, rechargeable debit cards, phone

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cards, and other negotiable instruments, ac-

counts, deeds, evidences of debt, letters of

credit, notes other than bank notes, manu-

scripts, passports, and tickets;

e. $1,500 on watercraft of all types and outboard

motors, including their trailers, furnishings, and

equipment;

f. $1,500 on trailers not used with watercraft;

g. $2,500 on stamps, trading cards, and comic

books, including any of these that are a part of a

collection;

h. $2,500 for loss by theft of firearms;

i. $2,500 for loss by theft of silverware and

goldware;

j. $5,000 on any one article and $10,000 in the ag-

gregate for loss by theft of any rug, carpet (ex-

cept wall-to-wall carpet), tapestry, wall-hanging,

or other similar article;

k. $1,000 on commercially manufactured two,

three, or four wheeled personal conveyances

powered only by or assisted by an unmodified

motor or engine with a manufacturer’s power

rating of no more than 1 horsepower and capa-

ble of a top speed of no more than 20 miles per

hour. This does not include such conveyances

that are:

(1) designed for assisting persons with disabil-

ities;

(2) not designed for travel on public roads; and

(3) not subject to motor vehicle registration; and

l. $1,000 for loss by theft of jewelry, watches, fur

garments and garments trimmed with fur, and

precious and semi-precious stones.

2. Property Not Covered. We do not cover:

a. articles separately described and specifically in-

sured in this or any other insurance;

b. animals, birds, or fish;

c. any engine-propelled or motor-propelled vehicle

or machine, including parts, designed for move-

ment on land, except as provided in Special Lim-

its of Liability, item k. However, we do cover

those vehicles or machines:

(1) that are:

(a) not designed for travel on public

roads; and

(b) not subject to motor vehicle registra-

tion;

(2) and that are:

(a) used primarily to service the insured

location; or

(b) designed for assisting persons with

disabilities;

d. any electronic equipment, devices, or accesso-

ries designed for the recording, reproduction, or

storage of audio, video, photos, or other data

that is permanently installed in or permanently

fastened to an engine-propelled or motor-pro-

pelled vehicle or hard-wired directly to the vehi-

cle’s electrical system. We also do not cover

removable products that may be used with the

equipment or devices described above, includ-

ing but not limited to tapes, discs, videos, or

memory cards while in an engine-propelled or

motor-propelled vehicle;

e. aircraft and parts. This does not apply to un-

manned aircraft systems used as model aircraft

and operated solely for recreational or hobby

purposes;

f. property of roomers, boarders, tenants, and

other residents not related to you;

g. property regularly rented or held for rental to oth-

ers by an insured. This does not apply to prop-

erty of an insured:

(1) in a sleeping room when the dwelling is

rented in part, for use as a permanent res-

idence, by either one or two full-time room-

ers or boarders; or

(2) on the residence premises if it is rented,

either completely or in part, for exclusive

use as a residence, for no more than 30

nights in the 12-month period prior to the

date of the loss;

h. property rented or held for rental to others away

from the residence premises;

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i. any radio devices or transmitters, global posi-

tioning systems, radar or laser detectors, an-

tennas, and all other similar equipment that is

permanently installed in or permanently fas-

tened to an engine-propelled or motor-pro-

pelled vehicle or that is hard-wired directly to the

vehicle’s electrical system;

j. books or records of accounts receivable, ab-

stracts or other journals, architectural or tech-

nical drawings, card index systems, or other

records. This does not apply to any recording or

storage media for electronic data processing.

We will cover the cost of blank books, cards, or

other blank material plus the cost of labor you

incur for transcribing or copying such records;

k. recording or storage media for electronic data

processing that cannot be replaced with prop-

erty of like kind and quality on the current retail

market;

l. purchased or created audio, video, photos, or

other data that cannot be replaced with like kind

and quality on the current retail market and

that is transferred or downloaded onto mobile

communication equipment, global positioning

systems, or electronic devices designed for the

recording, reproduction, or storage of audio,

video, photos, or other data;

m. contraband, or any property used in the course

of illegal consumption, possession, import, ex-

port, or trade;

n. outdoor hardscape property used for aesthetic

purposes except as provided in SECTION I –

ADDITIONAL COVERAGES, Trees, Shrubs,

and Landscaping; or

o. electronic currency, digital currency, virtual

currency, crypto-currency, and other similar me-

diums of exchange.

COVERAGE C – LOSS OF USE

The most we will pay for the sum of all losses combined

under Additional Living Expense, Fair Rental Value,

and Prohibited Use is the limit of liability shown in the

Declarations for Coverage C – Loss of Use.

1. Additional Living Expense. When a loss insured

causes the residence premises to become uninhab-

itable, we will pay the reasonable and necessary in-

crease in cost incurred by an insured to maintain

their normal standard of living for up to 24 months.

Our payment is limited to incurred costs for the short-

est of:

a. The time required to repair or replace the premises;

b. The time required for your household to settle

elsewhere; or

c. 24 months.

This period of time is not limited by the expiration of

this policy.

We will not pay more than the limit of liability shown

in the Declarations for Coverage C – Loss of Use.

Any normal expenses that are reduced or discontinued

due to a loss insured will be subtracted from any

amount owed.

2. Fair Rental Value. When a loss insured causes that

part of the residence premises rented to others or

held for rental by you to become uninhabitable, we will

pay its fair rental value. Payment will be for the short-

est time required to repair or replace the part of the

premises rented or held for rental, but not to exceed 12

months. This period of time is not limited by the expi-

ration of this policy. Fair rental value will not include

any expense that does not continue while that part of

the residence premises rented or held for rental is un-

inhabitable.

3. Prohibited Use. We

will pay Additional Living Ex-

pense and Fair Rental Value, for a continuous period

not to exceed two weeks, beginning when a civil au-

thority issues an order of evacuation or prohibits your

use of the residence premises, provided that:

a. direct physical damage occurs to any property,

other than covered property located on the res-

idence premises, arising from a cause of loss

that would be a loss insured under this policy if

the damage had occurred to property on the res-

idence premises;

b. the residence premises is within one mile of

property damaged by a cause of loss identified

in 3.a. above; and

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c. the action of the civil authority is taken in re-

sponse to:

(1) dangerous physical conditions resulting

from the continuation of the cause of loss

identified in 3.a. above;

(2) dangerous physical conditions resulting

from the damage caused by the cause of

loss identified in 3.a. above; or

(3) the need to gain free access to property

damaged by the cause of loss identified in

3.a. above.

We will not pay for loss or expense due to cancella-

tion of a lease or agreement.

SECTION I – ADDITIONAL COVERAGES

The following Additional Coverages are subject to all the

terms, provisions, exclusions, and conditions of this policy.

1. Debris Removal. We will pay the reasonable ex-

penses you incur in the removal of debris of covered

property damaged by a loss insured. This expense

is included in the limit applying to the damaged prop-

erty.

When the amount payable for the property damage

plus the debris removal exceeds the limit for dam-

aged property, an additional 5% of that limit is avail-

able for debris removal expense. This additional

amount of insurance does not apply to SECTION I –

ADDITIONAL COVERAGES, Trees, Shrubs, and

Landscaping.

2. Temporary Repairs. If damage is caused by a loss

insured, we will pay the reasonable and necessary

cost you incur for temporary repairs to covered prop-

erty to protect the property from further immediate dam-

age or loss. This coverage does not increase the

limit applying to the property being repaired.

3. Trees, Shrubs, and Landscaping. We will pay for

accidental direct physical loss to outdoor:

a. trees, shrubs, live or artificial plants, and lawns;

b. artificial grass; and

c. hardscape property used for aesthetic purposes

not permanently affixed to realty;

on the residence premises, caused by the following

perils: Fire or lightning, Explosion, Riot or civil

commotion, Aircraft, Vehicles (not owned or oper-

ated by a resident of the residence premises), Van-

dalism or malicious mischief, or Theft.

The limit for this coverage, including the removal of

debris, will not exceed 10% of the amount shown in

the Declarations for COVERAGE B – PERSONAL

PROPERTY. We will not pay more than $750 for any

one outdoor tree, shrub, plant, or hardscape item, in-

cluding debris removal expense. This coverage may

increase the limit otherwise applicable. We will not

pay for any loss to property grown for business pur-

poses.

4. Building Additions and Alterations. We will pay,

under Coverage B, for a loss insured to building ad-

ditions, alterations, fixtures, improvements, or instal-

lations made or acquired at your expense. The

following conditions apply:

a. This coverage applies only to that part of the resi-

dence premises used exclusively by you; and

b. The limit for this coverage will not exceed 15% of

the limit of liability shown in the Declarations for

COVERAGE B – PERSONAL PROPERTY. This

coverage does not increase the Coverage B limit.

5. Property Removed. We will pay for any accidental

direct physical loss to covered property while being

removed from a premises endangered by a loss in-

sured. This coverage also applies to the property for

up to 30 days while removed. We will also pay for

reasonable expenses incurred by you for the removal

and return of the covered property. This coverage

does not increase the limit applying to the property

being removed.

6. Credit Card, Bank Fund Transfer Card, Forgery,

and Counterfeit Money.

a. We will pay up to $1,000 for:

(1) the legal obligation of an insured to pay be-

cause of the theft or unauthorized use of

credit cards and bank fund transfer cards is-

sued to or registered in an insured’s name.

If an insured has not complied with all terms

and conditions under which the cards are is-

sued, we will not pay for use by an insured

or anyone else;

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(2) loss to an insured caused by forgery or al-

teration of any check or negotiable instru-

ment; and

(3) loss to an insured through acceptance in

good faith of counterfeit United States or

Canadian paper currency.

No deductible applies to this coverage.

We will not pay more than the limit stated above

for forgery or alteration committed by any one

person. This limit applies when the forgery or al-

teration involves one or more instruments in the

same loss.

b. We will not pay for loss arising out of business

pursuits or dishonesty of an insured.

c. Defense:

(1) We may make any investigation and settle

any claim or suit that we decide is appro-

priate. Our obligation to defend claims or

suits ends when the amount we pay for the

loss equals our limit of liability.

(2) If claim is made or a suit is brought against

an insured for liability under the Credit

Card or Bank Fund Transfer Card cover-

age, we will provide a defense. This de-

fense is at our expense by counsel of our

choice.

(3) We have the option to defend at our ex-

pense an insured or an insured’s bank

against any suit for the enforcement of pay-

ment under the Forgery coverage.

7. Power Interruption. We will pay for accidental direct

physical loss caused directly or indirectly by a change

of temperature that results from power interruption

that takes place on the residence premises. The

power interruption must be caused by a loss insured

occurring on the residence premises. The power

lines off the residence premises must remain ener-

gized. This coverage does not increase the limit ap-

plying to the damaged property.

8. Refrigerated Products. Coverage B is extended to

cover the contents of deep freeze or refrigerated units

on the residence premises for loss due to power fail-

ure or mechanical failure. If mechanical failure or

power failure is known to you, all reasonable means

must be used to protect the property insured from fur-

ther damage or this coverage is void. Power failure

or mechanical failure does not include:

a. removal of a plug from an electrical outlet; or

b. turning off an electrical switch unless caused by

a loss insured.

This coverage does not increase the limit applying to

the damaged property.

9. Arson Reward. We will pay $1,000 for information

that leads to an arson conviction in connection with a

fire loss to property covered by this policy. This cov-

erage may increase the limit otherwise applicable.

However, the $1,000 limit will not be increased re-

gardless of the number of persons providing infor-

mation.

10. Volcanic Action. We will pay for accidental direct

physical loss to a covered building structure or cov-

ered property contained in a building structure re-

sulting from the eruption of a volcano when the loss

is directly and immediately caused by:

a. airborne volcanic shock waves;

b. ash, dust, or particulate matter; or

c. lava flow.

We will also pay for the removal of that ash, dust, or

particulate matter that has caused accidental direct

physical loss to a covered building structure or cov-

ered property contained in a building structure.

All volcanic eruptions that occur within any 168-hour

period will be considered one volcanic eruption.

This coverage does not increase the limit applying to

the damaged property.

11. Collapse. We will pay for accidental direct physical

loss to covered property involving the abrupt, entire

collapse of a building structure or any part of a

building structure.

a. Collapse means the abrupt and entire falling

down, caving in, or falling into pieces of a build-

ing structure or any part of a building struc-

ture. Collapse does not include any of the

following:

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(1) settling, cracking, crumbling, deterioration,

shrinking, bulging, expansion, sagging,

bowing, leaning, or bending;

(2) substantial structural impairment;

(3) imminent or threatened collapse;

(4) a building structure or any part of a build-

ing structure that is in danger of falling

down or caving in; or

(5) a part of a building structure that is stand-

ing even if:

(a) it has separated from another part of

the building structure; or

(b) it shows evidence of settling, cracking,

crumbling, deterioration, shrinking,

bulging, expansion, sagging, bowing,

leaning, or bending.

b. The collapse must be directly and immediately

caused by one or more of the following:

(1) perils described in SECTION I – LOSSES

INSURED, COVERAGE B – PERSONAL

PROPERTY. These perils apply to build-

ing structures covered under Coverage B

for loss insured by this Additional Cover-

age;

(2) decay or deterioration of, or damage from

animals, birds, or insects to:

(a) a connector; or

(b) a structural member of a building

structure;

The decay, deterioration, or damage must

be hidden from view and unknown to all in-

sureds prior to the collapse;

(3) weight of contents, equipment, animals, or

people;

(4) weight of ice, snow, sleet, or rain that col-

lects on a roof, porch, or deck; or

(5) use of defective material or methods in the

construction (includes remodeling or reno-

vation) of the building structure, if the col-

lapse occurs during the course of the

construction of the building structure.

Loss to awnings, fences, patios, pavement,

swimming pools, underground pipes, flues,

drains, cesspools, septic tanks, foundations (in-

cluding slabs, basement walls, and crawl space

walls), retaining walls, bulkheads, piers, wharfs,

docks, trellises, or antennas and their support-

ing structures is not included under items (2),

(3), and (4) immediately above unless the loss

is the direct and immediate result of the collapse

of a building structure or any part of a building

structure.

This coverage does not increase the limit applying to

the damaged property.

12. Locks and Remote Devices. We will pay up to

$1,000 for each loss for the reasonable expenses

you incur to rekey, replace, recode, program, or re-

program locks on exterior doors to the dwelling or

other structures located on the residence premises

when the keys or remote devices used with those

doors are part of a covered theft loss. This cover-

age includes remote devices designed solely for lock-

ing, unlocking, opening, or closing doors, including

garage doors and gates.

No deductible applies to this coverage.

13. Fuel Oil Release. We will pay up to $10,000 for each

loss for accidental direct physical loss to covered

property caused by the abrupt and accidental escape

of liquid fuel oil from a fixed household tank, appa-

ratus, or pipes that are part of a heating unit for the

dwelling. This includes damage to covered property

resulting from an accidental spill or overflow of fuel oil

in the course of filling a fixed household tank.

This coverage includes surface clean up only. We

will not pay for:

a. the cost to repair or replace the fuel oil tank, ap-

paratus, and pipes; or

b. the cost of testing, monitoring, removing, treat-

ing, or detoxifying of soil, air, or water.

This coverage does not increase the limit applying to

the damaged property.

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INFLATION COVERAGE

The limit of liability shown in the Declarations for Cover-

age B will be increased at the same rate as the increase

in the Inflation Coverage Index shown in the Declarations.

To find the limit on a given date:

1. divide the Index on that date by the Index as of the

effective date of this Inflation Coverage provision;

then

2. multiply the resulting factor by the limit of liability for

Coverage B.

The limit of liability will not be reduced to less than the

amounts shown in the Declarations.

If during the term of this policy the Coverage B limit of lia-

bility is changed at your request, the effective date of this

Inflation Coverage provision is changed to coincide with

the effective date of such change.

SECTION I – LOSSES INSURED

COVERAGE B – PERSONAL PROPERTY

We will pay for accidental direct physical loss to the prop-

erty described in Coverage B caused by the following per-

ils, unless the loss is excluded or limited in SECTION I –

LOSSES NOT INSURED or otherwise excluded or limited

in this policy. However, loss does not include and we will

not pay for, any diminution in value.

1. Fire or lightning.

2. Windstorm or hail. This peril does not include loss

to property contained in a structure caused by rain,

snow, sleet, sand, or dust. This limitation does not ap-

ply when the direct force of wind or hail damages the

structure causing an opening in a roof or wall and the

rain, snow, sleet, sand, or dust enters through this

opening.

This peril includes loss to watercraft of all types and

their trailers, furnishings, equipment, and outboard

motors, only while inside a building structure.

3. Explosion.

4. Riot or civil commotion.

5. Aircraft, including self-propelled missiles and space-

craft.

6. Vehicles, meaning accidental direct physical loss to

covered property caused by the weight, force, power,

or movement of a vehicle.

a. This includes:

(1) the impact of a vehicle;

(2) an object propelled from the tire or body of

a vehicle;

(3) the upset or collision of a vehicle with a sta-

tionary object or other vehicle, including

damage to personal property carried on the

exterior of the vehicle; or

(4) a vehicle door or trunk lid being closed on

personal property.

b. This peril does not include loss:

(1) to personal property that falls off a vehicle

and strikes the ground, any other surface,

or any object;

(2) caused by shifting of the load being carried

in or on a vehicle; or

(3) to the vehicle itself unless the vehicle is

property covered under COVERAGE B –

PERSONAL PROPERTY and the loss is

caused by the weight, force, power, or

movement of another vehicle.

7. Smoke, meaning abrupt and accidental damage from

smoke.

This peril does not include loss caused by smoke

from agricultural smudging or industrial operations.

8. Vandalism or malicious mischief, meaning only

willful and malicious damage to or destruction of

property.

9. Theft, including attempted theft and loss of property

from a known location when it is probable that the

property has been stolen.

This peril does not include:

a. loss of a precious or semi-precious stone from

its setting;

b. loss caused by theft:

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(1) committed by an insured or by any other

person regularly residing on the insured

location. Property of a student who is an

insured is covered while located at a resi-

dence away from the residence premises, if

the theft is committed by a person who is

not 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 completed and

occupied; or

(3) from the part of a residence premises

rented to others:

(a) caused by a tenant, members of the

tenant’s household, or the tenant’s

employees unless the residence

premises is rented, either completely

or in part, for exclusive use as a resi-

dence, for no more than 30 nights in

the 12-month period prior to the date

of the loss;

(b) of money, bank notes, bullion, gold,

goldware, silver, silverware, pewter-

ware, platinum, coins, and medals;

travelers checks, money orders, gift

certificates, gift cards, rechargeable

debit cards, phone cards, and other ne-

gotiable instruments, accounts, deeds,

evidences of debt, letters of credit,

notes other than bank notes, manu-

scripts, passports, tickets, and stamps;

(d) of jewelry, watches, fur garments and

garments trimmed with fur, and pre-

cious and semi-precious stones; or

c. loss caused by theft that occurs away from the

residence premises of:

(1) property while at any other residence

owned, rented to, or occupied by an in-

sured, except while an insured is tempo-

rarily residing there. Property of a student

who is an insured is covered while at a res-

idence away from the residence prem-

ises;

(2) watercraft of all types, including their fur-

nishings, equipment, and outboard motors;

(3) trailers and campers designed to be pulled

by or carried on a vehicle.

If the residence premises is a newly acquired

principal residence, property in the immediate

past principal residence will not be considered

property away from the residence premises for

the first 30 days after the inception of this policy.

10. Falling objects. This peril does not include loss to

property contained in a structure unless the roof or an

exterior wall of the structure is first damaged by a fall-

ing object. Damage to the falling object itself is not

included.

11. Weight of ice, snow, or sleet that causes damage

to property contained in a structure.

12. Abrupt and accidental discharge or overflow of

water, steam, or sewage from within a plumbing,

heating, air conditioning, or automatic fire protective

sprinkler system, or from within a household appli-

ance.

This peril does not include loss:

a. to the system or appliance from which the water,

steam, or sewage escaped;

b. caused by or resulting from:

(1) freezing;

(2) water or sewage from outside the resi-

dence premises plumbing system that en-

ters through sewers or drains, or water that

enters into and overflows from within a

sump pump, sump pump well, or any other

system designed to remove subsurface

water that is drained from the foundation

area; or

(3) the pressure from or presence of tree,

shrub, or plant roots; or

c. that occurs or develops over a period of time and

is caused by or resulting from:

(1) condensation or the presence of humidity,

moisture, or vapor; or

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(2) seepage or leakage of water, steam, or

sewage that is:

(a) continuous;

(b) repeating;

(d) intermittent;

(e) slow; or

(f) trickling.

13. Abrupt and accidental tearing asunder, cracking,

burning, or bulging of a steam or hot water heat-

ing system, an air conditioning system, an auto-

matic fire protective sprinkler system, or an appliance

for heating water.

This peril does not include loss:

a. caused by or resulting from freezing; or

b. that occurs or develops over a period of time and

is caused by or resulting from:

(1) condensation or the presence of humidity,

moisture, or vapor; or

(2) seepage or leakage of water or steam that

is:

(a) continuous;

(b) repeating;

(d) intermittent;

(e) slow; or

(f) trickling.

14. Freezing of a plumbing, heating, air conditioning, or

automatic fire protective sprinkler system, or of a

household appliance.

This peril does not include:

a. loss to a portable hot tub or portable spa unless

you have used reasonable care to prevent

freezing; or

b. loss on the residence premises unless you

have used reasonable care to:

(1) maintain heat in the building structure at

55 degrees Fahrenheit or higher; or

(2) shut off the water supply and drain the sys-

tem and appliances of water.

However, if the building structure is protected

by an automatic fire protective sprinkler system,

you must use reasonable care to continue the

water supply and maintain heat in the building

structure at 55 degrees Fahrenheit or higher for

coverage to apply.

15. Abrupt and accidental damage to electrical appli-

ances, devices, fixtures, and wiring from an increase

or decrease of artificially generated electrical current.

We will pay up to $3,000 under this peril for each

damaged item described above.

16. Breakage of glass, meaning damage to personal

property caused by breakage of glass that is a part of

a structure on the residence premises. We will not

pay for loss or damage to the glass.

17. Wild bears or deer, meaning damage caused by

wild bears or deer to property located in a building

structure.

18. Breakage of glass or safety glazing material that

is part of a building, storm door, or storm window and

is covered under SECTION I – ADDITIONAL COV-

ERAGES, Building Additions and Alterations.

This peril does not include loss on the residence

premises if the dwelling is a vacant dwelling.

SECTION I – LOSSES NOT INSURED

1. We will not pay for, under any part of this policy, any

loss that would not have occurred in the absence of

one or more of the following excluded events. We will

not pay for such loss regardless of: (a) the cause of

the excluded event; or (b) other causes of the loss; or

sequence with the excluded event to produce the

loss; or (d) whether the event occurs abruptly or grad-

ually, involves isolated or widespread damage, oc-

curs on or off the residence premises, arises from

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any natural or external forces, or occurs as a result of

any combination of these:

a. Ordinance or Law, meaning enforcement of

any ordinance or law regulating the construc-

tion, repair, or demolition of a building struc-

ture or other structure.

b. Earth Movement, meaning the sinking, rising,

shifting, expanding, or contracting of earth, all

regardless of whether combined with water,

sewage, or any material carried by, or otherwise

moved by the earth. Earth movement includes

but is not limited to:

(1) earthquake;

(2) landslide, mudslide, or mudflow;

(3) sinkhole or subsidence;

(4) movement resulting from:

(a) improper compaction;

(b) site selection;

(d) excavation;

(5) erosion;

(6) pressure by surface or subsurface earth or fill;

(7) any volcanic activity, except as specifically

provided in SECTION I – ADDITIONAL

COVERAGES, Volcanic Action.

However, we will pay for any accidental direct

physical loss by fire resulting from earth move-

ment, provided the resulting fire loss is itself a

loss insured.

c. Water, meaning:

(1) flood;

(2) surface water. This does not include water

solely caused by the release of water from

a swimming pool, spigot, sprinkler system,

hose, or hydrant;

(3) waves (including tidal wave, tsunami, and

seiche);

(4) tides or tidal water;

(5) overflow of any body of water (including

any release, escape, or rising of any body

of water, or any water held, contained, con-

trolled, or diverted by a dam, levee, dike, or

any type of water containment, diversion,

or flood control device);

(6) spray or surge from any of the items c.(1)

through c.(5) described above, all whether

driven by wind or not;

(7) water or sewage from outside the resi-

dence premises plumbing system that en-

ters through sewers or drains, or water or

sewage that enters into and overflows from

within a sump pump, sump pump well, or

any other system designed to remove sub-

surface water that is drained from the foun-

dation area;

(8) water or sewage below the surface of the

ground, including water or sewage that ex-

erts pressure on, or seeps or leaks through

a building structure, sidewalk, driveway,

swimming pool, or other structure; or

(9) material carried or otherwise moved by any

of the water or sewage, as described in

items c.(1) through c.(8) above.

However, we will pay for any accidental direct

physical loss by fire, explosion, or theft resulting

from water, provided the resulting loss is itself a

loss insured.

d. Neglect, meaning neglect of the insured to use

all reasonable means to save and preserve

property at and after the time of a loss, or when

property is endangered.

e. War, including any undeclared war, civil war, in-

surrection, rebellion, revolution, warlike act by a

military force or military personnel, destruction

or seizure or use for a military purpose, and in-

cluding any consequence of any of these. Dis-

charge of a nuclear weapon will be considered

a warlike act even if accidental.

f. Nuclear Hazard, meaning any nuclear reaction,

radiation, or radioactive contamination, all

whether controlled or uncontrolled or however

caused, or any consequence of any of these.

Loss caused by the nuclear hazard will not be

considered loss caused by fire, explosion, or

smoke.

However, we will pay for any accidental direct

physical loss by fire resulting from the nuclear

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hazard, provided the resulting fire loss is itself a

loss insured.

g. Fungus, including:

(1) any loss of use or delay in rebuilding, re-

pairing, or replacing covered property, in-

cluding any associated cost or expense,

due to interference at the residence prem-

ises or location of the rebuilding, repair, or

replacement, by fungus;

(2) any remediation of fungus, including the

cost to:

(a) remove the fungus from covered

property or to repair, restore, or re-

place that property; or

(b) tear out and replace any part of the

building structure or other property

as needed to gain access to the fun-

gus; or

(3) the cost of any testing or monitoring of air

or property to confirm the type, absence,

presence, or level of fungus, whether per-

formed prior to, during, or after removal, re-

pair, restoration, or replacement of covered

property.

h. Intentional Losses. If any insured intention-

ally causes or procures a loss to property cov-

ered under this policy, we will not pay any

insured for this loss. This applies regardless of

whether the insured is charged with or con-

victed of a crime.

This does not apply to an insured who did not

participate in, cooperate in, or contribute to caus-

ing or procuring the loss.

2. We will not pay for, under any part of this policy, any

loss consisting of one or more of the items below. Fur-

ther, we will not pay for any loss described in para-

graph 1. immediately above regardless of whether

one or more of the following: (a) directly or indirectly

cause, contribute to, or aggravate the loss; or (b) oc-

cur before, at the same time, or after the loss or any

other cause of the loss:

a. conduct, act, failure to act, or decision of any

person, group, organization, or governmental

body whether intentional, wrongful, negligent, or

without fault;

b. defect, weakness, inadequacy, fault, or un-

soundness in:

(1) planning, zoning, development, surveying,

or siting;

(2) design, specifications, workmanship, re-

pair, construction, renovation, remodeling,

grading, or compaction;

(3) materials used in repair, construction, renova-

tion, remodeling, grading, or compaction; or

(4) maintenance;

of any property (including land, structures, or im-

provements of any kind) whether on or off the

residence premises; or

c. weather conditions.

However, we will pay for any resulting loss from items

2.a., 2.b., and 2.c. unless the resulting loss is itself a

Loss Not Insured as described in this Section.

SECTION I – LOSS SETTLEMENT

Only the Loss Settlement Provision shown in the Decla-

rations applies. We will settle covered property losses

according to the following. However, the valuation of any

covered property losses does not include, and we will not

pay, any amount for diminution in value.

COVERAGE B – PERSONAL PROPERTY

1. B1 – Limited Replacement Cost Loss Settlement.

a. We will pay the cost to repair or replace property

covered under SECTION I – PROPERTY

COVERAGES, COVERAGE B – PERSONAL

PROPERTY, except for property listed in item b.

below, subject to the following:

(1) until repair or replacement is completed,

we will pay only the actual cash value of the

damaged property;

(2) after repair or replacement is completed,

we will pay the difference between the actual

cash value and the cost you have actually

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and necessarily spent to repair or replace

the property; and

(3) if property is not repaired or replaced within

two years after the date of loss, we will pay

only the actual cash value.

b. We will pay market value at the time of loss for:

(1) antiques, fine arts, paintings, statuary, and

similar articles which by their inherent na-

ture cannot be replaced with new articles;

(2) articles whose age or history contribute sub-

stantially to their value including, but not

limited to, memorabilia, souvenirs, and col-

lectors items; and

(3) property not useful for its intended purpose.

However, we will not pay an amount exceeding the

smallest of the following for items a. and b. above:

(1) our cost to replace at the time of loss;

(2) the full cost of repair;

(3) any special limit of liability described in this

policy; or

(4) any applicable Coverage B limit of liability.

2. B2 – Depreciated Loss Settlement.

a. We will pay the actual cash value for property

covered under SECTION I – PROPERTY COV-

ERAGES, COVERAGE B – PERSONAL

PROPERTY, except for property listed in item b.

below.

b. We will pay market value at the time of loss for:

(1) antiques, fine arts, paintings, statuary, and

similar articles which by their inherent na-

ture cannot be replaced with new articles;

(2) articles whose age or history contribute

substantially to their value including, but

not limited to, memorabilia, souvenirs, and

collectors items; and

(3) property not useful for its intended purpose.

However, we will not pay an amount exceeding the

smallest of the following for items a. and b. above:

(1) our cost to replace at the time of loss;

(2) the full cost of repair;

(3) any special limit of liability described in this

policy; or

(4) any applicable Coverage B limit of liability.

SECTION I – CONDITIONS

1. Insurable Interest and Limit of Liability. Even if

more than one person has an insurable interest in the

property covered, we will not be liable:

a. to the insured for an amount greater than the

insured’s interest; or

b. for more than the applicable limit of liability.

2. Your Duties After Loss. After a loss to which this

insurance may apply, you must cooperate with us in

the investigation of the claim and also see that the

following duties are performed:

a. give immediate notice to us or our agent and

also notify:

(1) the police if the loss is caused by theft, van-

dalism, or any other criminal act; and

(2) the credit card company or bank if the loss in-

volves a credit card or bank fund transfer card;

b. protect the property from further damage or loss

and also:

(1) make reasonable and necessary temporary

repairs required to protect the property; and

(2) keep an accurate record of repair expenses;

c. prepare an inventory of damaged or stolen per-

sonal property:

(1) showing in detail the quantity, description,

age, replacement cost, and amount of loss;

and

(2) attaching all bills, receipts, and related doc-

uments that substantiate the figures in the

inventory;

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d. as often as we reasonably require:

(1) exhibit the damaged property;

(2) provide us with any requested records and

documents and allow us to make copies;

(3) while not in the presence of any other in-

sured:

(a) give statements; and

(b) submit to examinations under oath;

and

(4) produce employees, members of the in-

sured’s household, or others for examina-

tion under oath to the extent it is within the

insured’s power to do so; and

e. submit to us, within 60 days after the loss, your

signed, sworn proof of loss that sets forth, to the

best of your knowledge and belief:

(1) the time and cause of loss;

(2) interest of the insured and all others in the

property involved and all encumbrances on

the property;

(3) other insurance that may cover the loss;

(4) changes in title or occupancy of the prop-

erty during the term of this policy;

(5) specifications of any damaged structure

and detailed estimates for repair of the

damage;

(6) an inventory of damaged or stolen personal

property described in 2.c.;

(7) receipts for additional living expenses in-

curred and records supporting the fair

rental value loss; and

(8) evidence or affidavit supporting a claim un-

der SECTION I – ADDITIONAL COVER-

AGES, Credit Card, Bank Fund Transfer

Card, Forgery, and Counterfeit Money

coverage, stating the amount and cause of

loss.

3. Loss to a Pair or Set. In case of loss to a pair or set,

we may choose to:

a. repair or replace any part to restore the pair or

set to its value before the loss; or

b. pay the difference between the depreciated

value of the property before the loss and the de-

preciated value of the property after the loss.

4. Appraisal. If you and we fail to agree on the amount

of loss, either party can demand that the amount of

the loss be set by appraisal. Only you or we may

demand appraisal. A demand for appraisal must be

in writing. You must comply with SECTION I – CONDI-

TIONS, Your Duties After Loss before making a de-

mand for appraisal. At least 10 days before

demanding appraisal, the party seeking appraisal

must provide the other party with written, itemized

documentation of a specific dispute as to the amount

of the loss, identifying separately each item being dis-

puted.

a. Each party will select a competent, disinterested

appraiser and notify the other party of the ap-

praiser’s identity within 20 days of receipt of the

written demand for appraisal.

b. The appraisers will then attempt to set the

amount of the loss of each item in dispute as

specified by each party, and jointly submit to

each party a written report of agreement signed

by them. In all instances the written report of

agreement will be itemized and state separately

the actual cash value, replacement cost, and if

applicable, the market value of each item in dis-

pute.

The written report of agreement will set the

amount of the loss of each item in dispute.

c. If the two appraisers fail to agree upon the

amount of the loss within 30 days, unless the pe-

riod of time is extended by mutual agreement, they

will select a competent, disinterested umpire and

will submit their differences to the umpire. If the

appraisers are unable to agree upon an umpire

within 15 days:

(1) you or we may make a written application

for a judge of a court of record in the same

state and county (or city if the city is not

within a county) where the residence

premises is located to select an umpire;

(2) the party requesting the selection de-

scribed in item c.(1) must provide the other

party:

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(a) written notice of the intent to file, iden-

tifying the specific location and identity

of the court at least 10 days prior to

submission of the written application;

and

(b) a copy of the written application; and

(3) a written report of agreement, as required

in item b., signed by any two (appraisers or

appraiser and umpire) will set the amount

of the loss of each item in dispute. In all

instances the written report of agreement

will be itemized and state separately the

actual cash value, replacement cost, and

if applicable, the market value of each item

in dispute.

d. To qualify as an appraiser or umpire for a loss to

building property, a person must be one of the

following and be licensed or certified as required

by the applicable jurisdiction:

(1) an engineer or architect with experience and

training in building construction, repair, es-

timating, or investigation of the type of

property damage in dispute;

(2) an adjuster or public adjuster with experi-

ence and training in estimating the type of

property damage in dispute; or

(3) a contractor with experience and training in

the construction, repair, and estimating of

the type of property damage in dispute.

e. A person may not serve as an appraiser or umpire

if that person, any employee of that person, that

person’s employer, or any employee of their em-

ployer:

(1) has performed services for either party with

respect to the claim at issue in the ap-

praisal; or

(2) has a financial interest in the outcome of

the claim at issue in the appraisal.

f. Each party will be responsible for the compen-

sation of their selected appraiser. Reasonable

expenses of the appraisal and the reasonable

compensation of the umpire will be paid equally

by you and us.

g. You and we do not waive any rights by demand-

ing or submitting to an appraisal, and retain all

contractual rights to determine if coverage ap-

plies to each item in dispute.

h. Appraisal is only available to determine the

amount of the loss of each item in dispute. The

appraisers and the umpire have no authority to

decide:

(1) any other questions of fact;

(2) questions of law;

(3) questions of coverage;

(4) other contractual issues; or

(5) to conduct appraisal on a class-wide basis.

i. Appraisal is a non-judicial proceeding and does

not provide for or require arbitration. Neither

party will be awarded attorney fees. The ap-

praisal award may not be entered as a judgment

in a court.

j. A party may not demand appraisal after that

party brings suit or action against the other party

relating to the amount of loss.

5. Other Insurance. If a loss covered by this policy is

also covered by other insurance, we will pay only our

share of the loss. Our share is the proportion of the

loss that the applicable limit under this policy bears to

the total amount of insurance covering the loss.

6. Suit Against Us. No action will be brought against

us unless there has been full compliance with all of

the policy provisions. Any action by any party must

be started within one year after the date of loss or

damage. However, if the cause of loss or damage is

burglary, theft, larceny, robbery, forgery, fraud, van-

dalism, malicious mischief, confiscation, wrongful

conversion, disposal or concealment, the action must

be started within two years from the time the cause

of action accrues.

7. Our Option. We may repair or replace any part of

the property damaged or stolen with similar property.

Any property we pay for or replace becomes our

property.

8. Loss Payment. We will adjust all losses with you.

We will pay you unless some other person is named

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in the policy or is legally entitled to receive payment.

Loss will be payable:

a. 60 days after we receive your proof of loss and:

(1) reach agreement with you; or

(2) there is a filing of an appraisal award with

us; or

b. 30 days after we receive your proof of loss and

there is an entry of a final judgment.

9. Abandonment of Property. We need not accept

any property abandoned by an insured.

10. Glass Replacement. Loss for damage to glass

caused by a loss insured will be settled on the ba-

sis of replacement with safety glazing materials when

required by ordinance or law.

11. No Benefit to Bailee. We will not recognize an as-

signment or grant coverage for the benefit of a person

or organization holding, storing, or transporting prop-

erty for a fee. This applies regardless of any other

provision of this policy.

12. Recovered Property. If either you or we recover

any property after loss settlement, that party must

give the other prompt notice. At your option, you

may keep the property or we will return it to you. Oth-

erwise, it will become our property. If you choose to

keep the property, the loss payment will be adjusted

based on the amount you received for the recovered

property.

13. Assignment of Claim. Assignment to another party

of any of your rights or duties under this policy re-

garding any claim, or any part of any claim, will be

void and we will not recognize any such assignment,

unless we give our written consent. However, once

you have complied with all policy provisions, you

may assign to another party, in writing, payment of

claim proceeds otherwise payable to you.

SECTION II – LIABILITY COVERAGES

COVERAGE L – PERSONAL LIABILITY

If a claim is made or a suit is brought against an insured

for damages because of bodily injury or property dam-

age to which this coverage applies, caused by an occur-

rence, we will:

1. pay up to our limit of liability for the damages for

which the insured is legally liable. We will not pay

for criminal restitution; and

2. provide a defense at our expense by counsel of our

choice. We may make any investigation and settle

any claim or suit that we decide is appropriate. Our

obligation to defend any suit ends when the amount

we pay for damages, to effect settlement or satisfy a

judgment resulting from the occurrence, equals our

limit of liability. We will not provide a defense to any

insured for criminal prosecution or proceedings.

COVERAGE M – MEDICAL PAYMENTS TO OTHERS

We will pay the necessary medical expenses incurred or

medically ascertained within three years from the date of

an accident causing bodily injury. Medical expenses

means reasonable charges for medical, surgical, x-ray,

dental, ambulance, hospital, professional nursing, rehabil-

itation, pharmaceuticals, orthopedic devices, prosthetic

devices, and funeral services. This coverage applies only:

1. to a person on the insured location with the permis-

sion of an insured;

2. to a person off the insured location, if the bodily in-

jury:

a. arises out of a condition on the insured location

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 care

of an insured; or

3. to a residence employee if the occurrence causing

bodily injury

occurs off the insured location and

arises out of or in the course of the residence em-

ployee’s employment by an insured.

SECTION II – ADDITIONAL COVERAGES

The following Additional Coverages are subject to all the

terms, provisions, exclusions, and conditions of this policy.

We will pay for the following in addition to the limits of lia-

bility:

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1. Claim Expenses. We will pay:

a. expenses we incur and costs taxed against an

insured in suits we defend. Taxed costs do not

include attorney fees;

b. premiums on bonds required in suits we defend,

but not for bond amounts greater than the Cov-

erage L limit. We are not obligated to apply for

or furnish any bond;

c. reasonable expenses an insured incurs at our

request. This includes actual loss of earnings

(but not loss of other income) up to $250 per day

for aiding us in the investigation or defense of

claims or suits;

d. interest the insured is legally liable to pay on

damages payable under Coverage L above be-

fore a judgment, but only the interest on the

lesser of:

(1) that part of the damages we pay; or

(2) the Coverage L limit; and

e. interest on the entire judgment that accrues after

entry of the judgment and before we pay or ten-

der, or deposit in court that part of the judgment

that does not exceed the limit of liability that ap-

plies.

2. First Aid Expenses. We will pay expenses for first

aid to others incurred by an insured for bodily injury

covered under this policy. We will not pay for first aid

to you or any other insured.

3. Damage to Property of Others.

a. We will pay for property damage to property of

others caused by the activities of an insured.

b. We will not pay more than the smallest of the

following amounts:

(1) replacement cost at the time of loss;

(2) full cost of repair; or

(3) the limit of liability shown in the Declara-

tions for Damage to Property of Others

for any one occurrence.

c. We will not pay for property damage:

(1) for a loss that is recoverable under Section

I of this policy. We also will not pay for any

applicable deductible regardless of

whether the amount of the loss exceeds the

deductible;

(2) caused intentionally by an insured 13

years of age or older;

(3) to property, other than a rented golf cart,

owned by, or rented to an insured, a tenant

of an insured, or a resident in your house-

hold;

(4) arising out of:

(a) business pursuits;

(b) any act or omission in connection with

a premises an insured owns, rents, or

controls, other than the insured loca-

tion;

the ways immediately adjoining; or

(d) the ownership, maintenance, or use of

a motor vehicle, aircraft, or water-

craft, including airboat, air cushion,

personal watercraft, sail board, or sim-

ilar type watercraft; or

(5) if a payment is made under COVERAGE L

– PERSONAL LIABILITY for the same

property damage.

SECTION II – EXCLUSIONS

1. Coverage L and Coverage M do not apply to:

a. bodily injury or property damage that:

(1) was a result of a:

(a) willful and malicious; or

(b) criminal;

act or omission of the insured;

(2) was intended by the insured; or

(3) would have been expected by the insured

based on a reasonable person standard.

However, exclusions a.(2) and a.(3) above do

not apply to bodily injury or property damage

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resulting from the use of reasonable force to pro-

tect persons or property.

Exclusions a.(1), a.(2), and a.(3) above apply to

all bodily injury or property damage even if

the:

(1) bodily injury or property damage was

sustained by a different person, entity, or

property than was expected or intended;

(2) bodily injury or property damage was of

a different kind, quality, or degree than was

expected or intended;

(3) insured lacked the mental capacity to con-

trol his or her conduct;

(4) insured was not charged with or convicted

of a criminal act or omission; or

(5) insured was impaired by drugs or alcohol;

b. bodily injury or property damage arising out

of business pursuits of any insured, except as

provided in item c. below. This exclusion does

not apply to activities that are ordinarily incident

to non-business pursuits;

c. bodily injury or property damage arising out

of the rental of any part of any premises by any

insured. This exclusion does not apply:

(1) to the rental of the residence premises:

(a) either completely or in part, for exclu-

sive use as a residence, for up to 30

nights in the 12-month period prior to

the date of the loss;

(b) in part, for use as a permanent resi-

dence, by either one or two full-time

roomers or boarders; or

private garage;

(2) when the dwelling on the residence

premises is a two, three, or four family

dwelling and you occupy one part and rent

the other part to others;

(3) to farm land (without buildings), rented to

others, but not to exceed a total of 500

acres, regardless of the number of loca-

tions; or

(4) to activities that are ordinarily incident to

non-business pursuits;

d. bodily injury or property damage arising out

of the rendering or failing to render professional

services;

e. bodily injury or

property damage arising out

of any premises currently owned or rented to

any insured which is not an insured location.

This exclusion does not apply to bodily injury

to a residence employee arising out of and in

the course of the residence employee’s em-

ployment by an insured;

f. bodily injury or property damage arising out

of the ownership, maintenance, use, loading, or

unloading of:

(1) an aircraft. This exclusion does not apply

to the ownership, maintenance, use, loading,

or unloading of unmanned aircraft systems

used as model aircraft:

(a) solely for recreational or hobby pur-

poses;

(b) designed to be operated within the

visual line of sight of the operator and

operated within the visual line of sight

of the operator; and

the time of operation;

unless the ownership, maintenance, use,

loading, or unloading of such aircraft re-

sults in:

(a) property damage to any aircraft; or

(b) bodily injury or property damage re-

sulting from interference with an air-

craft carrying people regardless of

whether the bodily injury or property

damage is sustained by people or

property on the aircraft or not;

(2) a motor vehicle owned or operated by or

rented or loaned to any insured; or

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(3) a watercraft:

(a) owned by or rented to any insured if

it has inboard or inboard-outdrive motor

power of more than 50 horsepower;

(b) owned by or rented to any insured if

it is a sailing vessel, with or without

auxiliary power, 26 feet or more in

overall length;

tors with more than 25 total horse-

power owned by any insured;

(d) designated as an airboat, air cushion,

or similar type of craft; or

(e) owned by any insured if it is a per-

sonal watercraft using a water jet

pump powered by an internal combus-

tion engine as the primary source of

propulsion.

This exclusion does not apply to bodily injury

to a residence employee arising out of and in

the course of the residence employee’s em-

ployment by an insured. Exclusion f.(3) does

not apply while the watercraft is on the resi-

dence premises;

g. bodily injury or property damage arising out

of:

(1) the entrustment by any insured to any per-

son;

(2) the supervision by any insured of any

person;

(3) any liability statutorily imposed on any in-

sured; or

(4) any liability assumed through an unwritten

or written agreement by any insured;

with regard to the ownership, maintenance, or

use of any aircraft, watercraft, or motor vehicle

not covered under Section II of this policy;

h. bodily injury or property damage caused di-

rectly or indirectly by war, including undeclared

war, or any warlike act including destruction, sei-

zure, or use for a military purpose, or any con-

sequence of these. Discharge of a nuclear

weapon will be considered a warlike act even if

accidental;

i. bodily injury to any insured within the meaning

of part 9.a., 9.b., or 9.c. of the definition of

insured.

This exclusion also applies to any claim made or

suit brought against any insured within the

meaning of part 9.a., 9.b., or 9.c. of the definition

of insured to share damages with or repay

someone else who may be obligated to pay

damages because of the bodily injury

sus-

tained by any insured within the meaning of part

9.a., 9.b., or 9.c. of the definition of insured;

j. any claim made or suit brought against any in-

sured by:

(1) any person in the care of any insured be-

cause of child care services provided by or

at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured;

(2) any person who makes a claim because of

bodily injury to any person in the care of

any insured because of child care services

provided by or at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured.

This exclusion does not apply to the occasional

child care services provided by any insured, or

to the part-time child care services provided by

any insured under 19 years of age;

k. bodily injury or property damage arising out

of an insured’s participation in, or preparation

or practice for, any prearranged or organized

race, speed or demolition contest, or similar

competition involving a motorized land vehicle

or motorized watercraft. This exclusion does not

23 H4-2136

apply to a sailing vessel less than 26 feet in

overall length with or without auxiliary power;

l. bodily injury or property damage arising out

of the use, sale, manufacture, distribution, deliv-

ery, transfer, or possession, by any insured, of

any substance that is illegal or is a controlled

substance under either federal or state law.

This exclusion does not apply to the legitimate

use of legally prescribed drugs, under either fed-

eral or state law, by a person following orders of

a licensed health care professional;

m. bodily injury or property damage arising out

of the actual, alleged, or threatened presence,

discharge, dispersal, seepage, migration, re-

lease, escape of, or exposure to contaminants

or pollutants at or from any source or location.

Contaminants and pollutants include but are not

limited to any solid, liquid, gaseous, or thermal

irritant, including smoke from agricultural

smudging or industrial operations, smog, soot,

vapor, fumes, acids, alkalis, chemicals, patho-

gens, noxious substances, fuel oil, asbestos, or

lead.

This exclusion does not apply to bodily injury

or property damage arising out of smoke or

fumes caused by fire or explosion.

We also do not cover:

(1) any loss, cost, or expense arising out of

any request, demand, order, or statutory or

regulatory requirement that any insured or

others test for, monitor, clean up, remove,

contain, treat, detoxify, neutralize, remedi-

ate, dispose of, or in any way respond to

or assess the effects of contaminants or

pollutants;

(2) any loss, cost, or expense arising out of

any claim or suit by or on behalf of a gov-

ernmental authority for damages because

of testing for, monitoring, cleaning up, re-

moving, containing, treating, detoxifying,

neutralizing, remediating, disposing of, or

in any way responding to or assessing the

effects of contaminants or pollutants; or

(3) contamination or pollution arising out of ac-

tually or allegedly defective building mate-

rials, nuclear substances, or waste. Waste

includes materials to be recycled, recondi-

tioned, or reclaimed;

n. bodily injury or property damage arising out

of any actual, alleged, or threatened:

(1) sexual harassment, sexual molestation, or

sexual misconduct;

(2) physical or mental abuse; or

(3) corporal punishment;

by the insured;

o. bodily injury or property damage arising out

of the actual, alleged, or threatened inhalation

of, ingestion of, contact with, exposure to, exist-

ence of, or presence of any fungus at or from

any source or location.

We also do not cover any loss, cost, or expense

arising out of any:

(1) request, demand, order, or statutory or reg-

ulatory requirement that any insured or oth-

ers test for, monitor, clean up, remove,

contain, treat, detoxify, neutralize, remedi-

ate, dispose of, or in any way respond to or

assess the effects of fungus; or

(2) claim or suit for damages because of test-

ing for, monitoring, cleaning up, removing,

containing, treating, detoxifying, neutraliz-

ing, remediating, disposing of, or in any

way responding to or assessing the effects

of fungus; or

p. bodily injury or property damage arising out of

the ownership, maintenance, or use of systems

and equipment used to generate electrical power

exceeding 125 percent of the actual electrical

power usage by the residence premises in the

12-month period prior to the date of the loss.

2. Coverage L does not apply to:

a. liability:

(1) for your share of any loss assessment

charged against all members of any type of

association of property owners; or

24 H4-2136

(2) imposed on or assumed by any insured

through any unwritten or written contract or

agreement. This exclusion does not apply

to liability for damages that the insured

would have in absence of the contract or

agreement;

b. property damage to property owned by any in-

sured at the time of the occurrence;

c. property damage to property rented to, used or

occupied by, or in the care, custody, or control of

any insured at the time of the occurrence. This

exclusion does not apply to property damage

caused by fire, smoke, explosion, or abrupt and

accidental damage from water;

d. bodily injury to a person eligible to receive any

benefits required to be provided or voluntarily

provided by an insured under a workers’ com-

pensation, non-occupational disability, or occu-

pational disease law;

e. bodily injury or property damage for which an

insured under this policy is also an insured un-

der a nuclear energy liability policy or would be

an insured but for its termination upon exhaus-

tion of its limit of liability. A nuclear energy lia-

bility policy is a policy issued by Nuclear Energy

Liability Insurance Association, Mutual Atomic

Energy Liability Underwriters, Nuclear Insur-

ance Association of Canada, or any of their suc-

cessors; or

f. bodily injury or property damage arising out

of any real property any insured has sold or

transferred. This includes but is not limited to

bodily injury or property damage arising out

of known, unknown, hidden, or alleged property

conditions, problems, or defects.

This exclusion also applies to any property dam-

age to the sold or transferred real property itself.

However, this exclusion does not apply to:

(1) bodily injury arising out of fire, smoke, ex-

plosion, electrocution, or carbon monoxide

poisoning; or

(2) property damage arising out of fire,

smoke, or explosion.

3. Coverage M does not apply to bodily injury:

a. to a

residence employee if it occurs off the in-

sured location and does not arise out of or in

the course of the residence employee’s em-

ployment by an insured;

b. to a person eligible to receive any benefits required

to be provided or voluntarily provided under any

workers’ compensation, non-occupational disabil-

ity, or occupational disease law;

c. to a person other than a residence employee

of an insured, regularly residing on any part of

the insured location; or

d. from nuclear reaction, radiation, or radioactive

contamination, all whether controlled or uncon-

trolled or however caused, or any consequence

of any of these.

SECTION II – CONDITIONS

1. Limit of Liability. The Coverage L limit is shown in

the Declarations. This is the limit for all damages

from each occurrence for the policy period in which

the bodily injury or property damage first occurs,

regardless of the number of insureds, claims made,

or persons injured. No additional limits or coverage

will be available for the occurrence under any addi-

tional policy periods while this policy remains in force.

The Coverage M limit is shown in the Declarations.

This is our limit for all medical expenses for bodily

injury to one person as the result of one accident.

2. Severability of Insurance. This insurance applies

separately to each insured. This condition does not

increase our limit of liability for any one occurrence.

3. Duties After Loss. In case of an accident or occur-

rence, the insured must cooperate with us in the in-

vestigation, settlement, or defense of any claim or

suit and also perform the following duties that apply.

You must cooperate with us in seeing that these du-

ties are performed:

25 H4-2136

a. give written notice to us or our agent as soon as

possible, which sets forth:

(1) the identity of this policy and the insured;

(2) reasonably available information on the

time, place, and circumstances of the acci-

dent or occurrence; and

(3) names and addresses of any claimants and

available witnesses;

b. immediately forward to us every notice, de-

mand, summons, or other process relating to the

accident or occurrence;

c. at our request, assist in:

(1) making settlement;

(2) the enforcement of any right of contribution

or indemnity against a person or organiza-

tion who may be liable to an insured;

(3) the conduct of suits and attend hearings

and trials; and

(4) securing and giving evidence and obtaining

the attendance of witnesses;

d. under SECTION II – ADDITIONAL COVER-

AGES, Damage to Property of Others, exhibit

the damaged property if within the insured’s

control; and

e. the insured must not, except at the insured’s

own cost, voluntarily make payments, assume

obligations, or incur expenses. This does not ap-

ply to expense for first aid to others at the time

of the bodily injury.

4. Coverage M Requirements. We may require the fol-

lowing in regard to any Coverage M claim:

a. written proof of claim, under oath if required, as

soon as possible from the injured person, or

when appropriate, someone acting on behalf of

that person;

b. the injured person’s submission to physical ex-

aminations by a physician selected by us when

and as often as we reasonably require; and

c. any authorizations from the injured person as

we may require.

5. Payment of Claim – Coverage M or Damage to

Property of Others. Payment under either of these

is not an admission of liability by an insured or us.

6. Suit Against Us. No action will be brought against

us unless there has been compliance with the policy

provisions.

No one will have the right to join us as a party to an

action against an insured. Further, no action with re-

spect to Coverage L will be brought against us until

the obligation of the insured has been determined by

final judgment on the merits, after an actual trial or by

an agreement signed by us; but we will not be liable

for damages that are not payable under the terms of

this policy or that are in excess of the applicable Limit

of Liability.

7. Bankruptcy of an Insured. Bankruptcy or insol-

vency of an insured will not relieve us of our obliga-

tion under this policy.

8. Other Insurance – Coverage L. This insurance is

excess over any other valid and collectible insurance

except insurance written specifically to cover as ex-

cess over the limits of liability that apply in this policy.

SECTION I AND SECTION II – CONDITIONS

1. Policy Period. This policy applies only to loss under

Section I or bodily injury or property damage under

Section II that occurs during the period this policy is

in effect.

2. Concealment or Fraud. This policy is void as to you

and any other insured if you or any other insured

under this policy has intentionally concealed or mis-

represented any material fact or circumstance relat-

ing to this insurance, whether before or after a loss.

3. Liberalization Clause. If we adopt any revision that

would broaden coverage under this policy without ad-

ditional premium, within 60 days prior to or during the

period this policy is in effect, the broadened coverage

will immediately apply to this policy.

4. Waiver or Change of Policy Provisions. A waiver

or change of any provision of this policy must be in

writing by us to be valid. Our request for an appraisal

or examination does not waive any of our rights.

26 H4-2136

5. Cancellation.

a. You may cancel this policy at any time by giving

us advance written notice of the date cancella-

tion is to take effect. We may waive the require-

ment that the notice be in writing by confirming

the date and time of cancellation to you in writ-

ing.

b. We may cancel this policy only for the reasons

stated in this condition. We will notify you in

writing of the date cancellation takes effect. This

cancellation notice may be delivered to you, or

mailed to you at your mailing address shown in

the Declarations. Proof of mailing will be suffi-

cient proof of notice:

(1) When you have not paid the premium, we

may cancel at any time by notifying you at

least 10 days before the date cancellation

takes effect. This condition applies whether

the premium is payable to us or our agent

or under any finance or credit plan.

(2) When this policy has been in effect for less

than 45 business days and is not a renewal

with us, we may cancel for any reason. We

may cancel by notifying you at least 10

days before the date cancellation takes ef-

fect.

(3) When this policy has been in effect for 45

business days or more, or at any time if it is

a renewal with us, we may cancel for the

following reasons:

(a) discovery of fraud or material misrep-

resentation in the procurement of the

insurance or with respect to any

claims submitted thereunder;

(b) discovery of willful or reckless acts or

omissions on the part of the named in-

sured which increase any hazard in-

sured against;

tially increases any hazard insured

against after insurance coverage has

been issued or renewed;

(d) violation of any local fire, health,

safety, building, or construction regu-

lation or ordinance with respect to any

insured property or the occupancy

thereof which substantially increases

any hazard insured against;

(e) a determination by the Insurance

Commissioner that the continuation of

the policy would place the insurer in

violation of the insurance laws of this

state; or

(f) conviction of the named insured of a

crime having as one of its necessary

elements an act increasing any haz-

ard insured against.

We may cancel this policy by notifying

you

at least 30 days before the date cancella-

tion takes effect.

(4) When this policy is written for a period

longer than one year, we may cancel for

any reason at anniversary. We may cancel

by notifying you at least 30 days before the

date cancellation takes effect.

c. When this policy is cancelled, the premium for

the period from the date of cancellation to the

expiration date will be refunded. The return pre-

mium will be pro rata.

d. The return premium may not be refunded with

the notice of cancellation or when this policy is

returned to us. In such cases, we will refund it

within a reasonable time after the date cancella-

tion takes effect.

6. Nonrenewal. We may elect not to renew this policy.

If we elect not to renew, a written notice will be deliv-

ered to you, or mailed to you at your mailing address

shown in the Declarations. The notice will be mailed

or delivered at least 30 days before the expiration

date of this policy. Proof of mailing will be sufficient

proof of notice.

7. Assignment of Policy. Assignment of this policy will

be void and we will not recognize any such assign-

ment, unless we give our written consent.

8. Subrogation and Reimbursement.

a. Subrogation.

(1) Applicable to SECTION I:

27 H4-2136

If any insured to or for whom we make

payment under this policy has rights to re-

cover damages from another, those rights

are transferred to us to the extent of our

payment. That insured must do everything

necessary to secure our rights and must do

nothing after loss to impair them. However

before a loss, an insured may waive in

writing all rights of recovery against any

person.

(2) Applicable to SECTION II:

If any insured has rights to recover all or

part of any payment we have made under

this policy, those rights are transferred to

us. An insured must do nothing after loss

to impair them. At our request, an insured

will bring suit or transfer those rights to us

and help us enforce them.

Subrogation does not apply under Section II to

Medical Payments to Others or Damage to

Property of Others.

b. Reimbursement.

If we make payment under this policy and any

insured to or for whom we make payment re-

covers or has recovered from another person or

organization, then the insured to or for whom

we make payment must:

(1) hold in trust for us the proceeds of any

recovery; and

(2) reimburse us to the extent of our payment.

9. Death. If you die:

a. we insure the legal representative of the de-

ceased. This condition applies only with respect

to the premises and property of the deceased

covered under this policy at the time of death;

b. insured includes:

(1) any member of your household who is an

insured at the time of your death, but only

while a resident of the residence prem-

ises

; and

(2) with respect to your property, the person

having proper temporary custody of the

property until appointment and qualification

of a legal representative.

10. Conformity to State Law. When a policy provision

is in conflict with the applicable law of the state in

which this policy is issued, the law of the state will

apply.

11. Premium.

a. Unless as otherwise provided by an alternative

payment plan in effect with the State Farm

Companies with respect to the premium for this

policy, the premium is due and payable in full on

or before the first day of the policy period shown

in the most recently issued Declarations.

b. The renewal premium for this policy will be

based upon the rates in effect, the coverages

carried, the applicable limits, deductibles, and

other elements that affect the premium applica-

ble at the time of renewal.

c. The premium for this policy may vary based

upon:

(1) the purchase of other products or services

from the State Farm Companies;

(2) the purchase of products or services from

an organization that has entered into an

agreement or contract with the State Farm

Companies. The State Farm Companies

do not warrant the merchantability, fitness,

or quality of any product or service offered

or provided by that organization; or

(3) an agreement, concerning the insurance

provided by this policy, that the State Farm

Companies has with an organization of

which you are a member, employee, sub-

scriber, licensee, or franchisee.

d. Your purchase of this policy may allow:

(1) you to purchase or obtain certain cover-

ages, coverage options, coverage deducti-

bles, coverage limits, or coverage terms on

other products from the State Farm Com-

panies, subject to their applicable eligibility

rules; or

28 H4-2136

(2) the premium or price for other products or

services purchased by you, including non-

insurance products or services, to vary.

Such other products or services must be

provided by the State Farm Companies or

by an organization that has entered into an

agreement or contract with the State Farm

Companies. The State Farm Companies

do not warrant the merchantability, fitness,

or quality of any product or service offered

or provided by that organization.

12. Right to Inspect.

a. We have the right but are not obligated to per-

form the following:

(1) make inspections and surveys of the in-

sured location at any time;

(2) provide you with reports on conditions we

find; or

(3) recommend changes.

Any inspections, surveys, reports, or recom-

mendations relate only to insurability and the

premiums to be charged.

b. We do not:

(1) make safety inspections;

(2) undertake to perform the duty of any per-

son or organization to provide for the health

or safety of workers or the public;

(3) warrant that conditions are safe or health-

ful; or

(4) warrant that conditions comply with laws,

regulations, codes, or standards.

This condition applies to us and to any rating, advi-

sory, rate service, or similar organization that makes

insurance inspections, surveys, reports, or recom-

mendations on our behalf.

13. Joint and Individual Interests. When there are two

or more Named Insureds, each acts for all to cancel

or change this policy.

14. Change of Policy Address. We may change the

Named Insured’s policy address as shown in the

Declarations and in our records to the most recent

address provided to us by:

a. you; or

b. the United States Postal Service.

15. Electronic Delivery. With your consent, we may

electronically deliver any document or notice, includ-

ing a notice to renew, nonrenew, or cancel, instead of

mailing it or delivering it by other means. Proof of

transmission will be sufficient proof of notice.

16. Our Rights Regarding Claim Information.

a. We will collect, receive, obtain, use, and retain

all the items described in item b.(1) below and

use and retain the information described in item

b.(3)(b) below, in accordance with applicable

federal and state laws and regulations and con-

sistent with the performance of our business

functions.

b. Subject to 16.a. above, we will not be restricted

in or prohibited from:

(1) collecting, receiving, or obtaining records,

receipts, invoices, medical bills, medical

records, wage information, salary infor-

mation, employment information, data, and

any other information;

(2) using any of the items described in item

b.(1) above; or

(3) retaining:

(a) any of the items in item b.(1) above; or

(b) any other information we have in our

possession as a result of our pro-

cessing, handling, or otherwise re-

solving claims submitted under this

policy.

c. We may disclose any of the items in b.(1) above

and any of the information described in item

b.(3)(b) above:

(1) to enable performance of our business

functions;

(2) to meet our reporting obligations to insur-

ance regulators;

(3) to meet our reporting obligations to insur-

ance data consolidators;

29 H4-2136

(4) to meet other obligations required by law; and

(5) as otherwise permitted by law.

d. Our rights under 16.a., 16.b., and 16.c. above

will not be impaired by any:

(1) authorization related to any claim submit-

ted under this policy; or

(2) act or omission of an insured or a legal

representative acting on an insured’s

behalf.

17. Duties Regarding Claim Information. An insured

or a legal representative acting on an insured’s behalf

must provide us with any requested authorizations re-

lated to the claim. Our rights as set forth under Our

Rights Regarding Claim Information of this policy

will not be impaired by any:

a. authorization related to the claim; or

b. act or omission of an insured or a legal repre-

sentative acting on an insured’s behalf.

OPTIONAL POLICY PROVISIONS

Each Optional Policy Provision applies only as shown in

the Declarations and is subject to all the terms, provi-

sions, exclusions, and conditions of this policy.

Option BP – Business Property. The COVERAGE B –

PERSONAL PROPERTY, Special Limits of Liability,

item b., for property used or intended for use in a busi-

ness, including merchandise held as samples or for sale

or for delivery after sale, is changed as follows:

The $1,500 limit is replaced with the amount shown

in the Declarations for this option.

Option BU – Business Pursuits. SECTION II – EXCLU-

SIONS, item 1.b. is modified as follows:

1. Section II coverage applies to the business pursuits

of an insured who is a:

a. clerical office employee, salesperson, collector,

messenger; or

b. teacher (except college, university, and profes-

sional athletic coaches), school principal, or

school administrator;

while acting within the scope of the above listed

occupations.

2. However, no coverage is provided:

a. for bodily injury or property damage arising

out of a business owned or financially con-

trolled by the insured or by a partnership of

which the insured is a partner or member;

b. for bodily injury or property damage arising

out of the rendering of or failure to render pro-

fessional services of any nature (other than

teaching or school administration). This exclu-

sion includes but is not limited to:

(1) computer programming, architectural, en-

gineering, or industrial design services;

(2) medical, surgical, dental, or other services

or treatment conducive to the health of per-

sons or animals; and

(3) beauty or barber services or treatment;

c. for bodily injury to a fellow employee of the in-

sured injured in the course of employment; or

d. when the insured is a member of the faculty or

teaching staff of a school or college:

(1) for bodily injury or property damage aris-

ing out of the maintenance, use, loading, or

unloading of:

(a) draft or saddle animals, including ve-

hicles for use with them; or

(b) aircraft, motor vehicles, recreational

motor vehicles or watercraft, air-

boats, air cushions, or personal water-

craft which use a water jet pump

engine as the primary source of pro-

pulsion;

owned, operated, or hired by or for the

insured or employer of the insured or

used by the insured for the purpose of

instruction in the use thereof; or

(2) under Coverage M for bodily injury to a

student arising out of corporal punishment

administered by or at the direction of the in-

sured.

30 H4-2136

Option FA – Firearms. Firearms are covered for acci-

dental direct physical loss or damage.

The limits for this option are shown in the Declarations.

The first amount is the limit for any one article; the sec-

ond amount is the aggregate limit for each loss.

The following additional provisions apply:

1. We will not pay for any loss to the property described

in this option either consisting of, or directly and im-

mediately caused by, one or more of the following:

a. mechanical breakdown, wear and tear, or

gradual deterioration;

b. all animals, birds, or insects, including nesting,

infestation, gnawing, feeding, breeding, or dis-

charge or release of waste products or secre-

tions by animals, birds, or insects. However, we

will pay for losses caused by wild bears or deer;

c. any process of refinishing, renovating, or repair-

ing;

d. dampness of atmosphere or extremes of tem-

peratures;

e. inherent defect or faulty manufacture;

f. rust, fouling, or explosion of firearms;

g. breakage, marring, scratching, tearing, or dent-

ing unless caused by fire, thieves, or accidents

to conveyances; or

h. infidelity of an insured’s employees or persons

to whom the insured property may be entrusted

or rented;

2. Our limit for loss by any Coverage B peril except theft

is the limit shown in the Declarations for Coverage

B, plus the aggregate limit;

3. Our limits for loss by theft are those shown in the

Declarations for this option. These limits apply in

lieu of the Coverage B theft limit; and

4. Our limits for loss by any covered peril except those

in items 2. and 3. above are those shown in the Dec-

larations for this option.

Option IO – Incidental Business. The coverage provided

by this option applies only to that incidental business oc-

cupancy on file with us.

1. COVERAGE B – PERSONAL PROPERTY is ex-

tended to include equipment, supplies, and furnish-

ings usual and incidental to this business

occupancy. This Optional Policy Provision does not

include electronic data processing system equipment

or the recording or storage media used with that

equipment or merchandise held as samples or for

sale or for delivery after sale.

The Option IO limits are shown in the Declarations.

The first limit applies to property on the residence

premises. The second limit applies to property while

off the residence premises. These limits are in ad-

dition to the COVERAGE B – PERSONAL PROP-

ERTY, Special Limits of Liability on property used

or intended for use in a business.

2. Under Section II, the residence premises is not con-

sidered business

property because an insured oc-

cupies a part of it as an incidental business.

3. SECTION II – EXCLUSIONS, item 1.b. is replaced

with the following:

b. bodily injury or property damage arising

out of business pursuits of any insured,

except as provided in item c. below. This

exclusion does not apply to activities that

are ordinarily incident to non-business

pursuits or to business pursuits of an in-

sured that are necessary or incidental to

the use of the residence premises as an

incidental business;

4. This insurance does not apply to:

a. bodily injury to an employee of an insured

arising out of the residence premises as an in-

cidental business other than to a residence

employee while engaged in the employee’s em-

ployment by an insured;

b. bodily injury to a student arising out of cor-

poral punishment administered by or at the di-

rection of the insured;

c. liability arising out of any acts, errors, or omissions

of an insured, or any other person for whose acts

an insured is liable, resulting from the preparation

or approval of data, plans, designs, opinions, re-

ports, programs, specifications, supervisory in-

spections, or engineering services in the conduct

of an insured’s incidental business involving data

31 H4-2136

processing, computer consulting, or computer pro-

gramming; or

d. any claim made or suit brought against any in-

sured by:

(1) any person in the care of any insured be-

cause of child care services provided by or

at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured;

(2) any person who makes a claim because of

bodily injury to any person in the care of

any insured because of child care services

provided by or at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured.

Coverage M does not apply to any person indi-

cated in d.(1) and d.(2) above.

This exclusion does not apply to the occasional

child care services provided by any insured, or

to the part-time child care services provided by

any insured under 19 years of age.

Option JF – Jewelry and Furs. Jewelry, watches, fur

garments and garments trimmed with fur, precious and

semi-precious stones, gold other than goldware, silver

other than silverware, and platinum are covered for acci-

dental direct physical loss or damage.

The limits for this option are shown in the Declarations.

The first amount is the limit for any one article; the sec-

ond amount is the aggregate limit for each loss. All provi-

sions and exclusions of SECTION I – LOSSES

INSURED, COVERAGE B – PERSONAL PROPERTY,

Theft apply to Option JF.

The following additional provisions apply:

1. We will not pay for any loss to the property described

in this option either consisting of, or directly and im-

mediately caused by, one or more of the following:

a. mechanical breakdown, wear and tear, gradual

deterioration;

b. all animals, birds or insects, including nesting,

infestation, gnawing, feeding, breeding, or dis-

charge or release of waste products or secre-

tions by animals, birds, or insects. However, we

will pay for losses caused by wild bears or deer;

c. inherent vice; or

d. seizure or destruction under quarantine or cus-

toms regulations;

2. Our limit for loss by any Coverage B peril except theft

is the limit shown in the Declarations for Coverage

B, plus the aggregate limit;

3. Our limits for loss by theft are those shown in the

Declarations

for this option. These limits apply in

lieu of the Coverage B theft limit; and

4. Our limits for loss by any covered peril except those

in items 2. and 3. above are those shown in the Dec-

larations for this option.

Option SG – Silverware and Goldware Theft. The COV-

ERAGE B – PERSONAL PROPERTY, Special Limits of

Liability, item i., for theft of silverware and goldware is in-

creased to be the amount shown in the Declarations for

this option.