Homeowners Policy Booklet

from Travelers

HO-3 HOMEOWNERS 3 - SPECIAL FORM

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YOUR HOMEOWNERS POLICY QUICK REFERENCE

DECLARATIONS PAGEYour NameLocation of Your ResidencePolicy PeriodCoveragesAmounts of InsuranceDeductible Amounts

BeginningOn Page

1AGREEMENT1DEFINITIONS

2COVERAGES SECTION IPROPERTYCOVERAGES

2Coverage A - Dwelling

Coverage B - Other Structures 22Coverage C - Personal Property4Coverage D - Loss of Use4Additional Coverages

PERILS INSURED AGAINST 7

EXCLUSIONS 10

CONDITIONS 11Your Duties After Loss 11Loss Settlement 12

COVERAGES 14SECTION IILIABILITYCOVERAGES

Coverage E - Personal Liability 14

Coverage F - Medical Payments to Others 14EXCLUSIONS 15ADDITIONAL COVERAGES 17CONDITIONS 18

Limit of Liability 1818Duties After Loss

CONDITIONS SECTION I andSECTION II CONDITIONS

19Policy Period 19Cancellation 19Nonrenewal 20

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Homeowners 3 Special Form

AGREEMENT

We will provide the insurance described in this policy in return for the premium and compliance with all applica-ble provisions of this policy.

DEFINITIONS

Throughout this policy, "you" and "your" refer to the"named insured" shown in the Declarations and thespouse, if a resident of the same household, and"we", "us" and "our" refer to the Company providingthis insurance. In addition, certain words and phrasesare defined as follows:

1. "aircraft" means any contrivance, whether or nottethered, used or designed for air or space flightcapable of carrying cargo or people. The contriv-ance may be either lighter or heavier than the air,engine powered or designed or used to float,glide, soar or control descent.

2. "bodily injury" means bodily harm, sickness ordisease, including required care, loss of servicesand death that results.

3. "business" includes trade, profession or occupa-tion

4. "insured" means you and the following residentsof your household:

a. your relatives;

b. any other person under the age of 21 who isin the care of any person named above.

Under Section II, "insured" also means:

c. with respect to animals or watercraft to whichthis policy applies, any person or organizationlegally responsible for these animals or wa-tercraft which are owned by you or any per-son included in 4.a. or 4.b. above. A personor organization using or having custody ofthese animals or watercraft in the course ofany business, or without permission of theowner is not an insured;

d. with respect to any vehicle to which this policyapplies:

(1) persons while engaged in your employ orthat of any person included in 4.a. or 4.b.above; or

(2) other persons using the vehicle on aninsured location with your consent.

5. "insured location" means:

a. the residence premises;

b. the part of any other premises, other struc-tures, and grounds, used by you as a resi-dence and which is shown in the Declarationsor which is acquired by you during the policyperiod for your use as a residence;

c. any premises used by you in connection withthe premises included in 5.a. or 5.b.;

d. any part of a premises not owned by any in-sured but where any insured is temporarilyresiding;

e. vacant land owned by or rented to any in-sured other than farm land;

f. land owned by or rented to any insured onwhich a one or two family dwelling is beingconstructed as a residence for any insured;

g. individual or family cemetery plots or burialvaults of any insured;

h. any part of a premises occasionally rented toany insured for other than business pur-poses.

i. any part of a premises, which is not a resi-dence, owned or rented by any insured usedfor other than business purposes to:

(1) moor or store watercraft;

(2) garage or store motorized land vehicles;or

(3) park or store aircraft.

6. "occurrence" means an accident, including con-tinuous or repeated exposure to substantially thesame generally harmful conditions which results,during the policy period, in:

a. bodily injury; or

b. property damage.

7. "property damage" means physical injury to,destruction of, or loss of use of tangible property.

8. "residence employee" means an employee ofany insured who performs duties in connectionwith the maintenance or use of the residencepremises, including household or domestic ser-vices, or who performs duties elsewhere of a

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lar nature not in connection with the business ofany insured.

9. "residence premises" means the one or twofamily dwelling, other structures, and grounds or

that part of any other building where you resideand which is shown as the "residence premises"in the Declarations.

SECTION I - PROPERTY COVERAGES

COVERAGE A - DWELLING

We cover:

a. the dwelling on the residence premises shown inthe Declarations used principally as a privateresidence, including structures attached to thedwelling on the same or contiguous foundation;and

b. materials and supplies located on or adjacent tothe residence premises for use in the construc-tion, alteration or repair of the dwelling or otherstructures on the residence premises.

THIS COVERAGE DOES NOT APPLY TO:

a. FENCES;

b. EXTERIOR WALLS THAT DO NOT SUPPORTTHE ROOF OF THE DWELLING;

c. LAND, INCLUDING LAND ON WHICH THEDWELLING IS LOCATED.

COVERAGE B - OTHER STRUCTURES

We cover:

Other structures on the residence premises, sepa-rated from the dwelling by clear space. Structureswith a separation from the dwelling and its foundationand linked by only a conduit, deck, fence, patio, utilityline, walk, wall, or similar connector means thatstructure is an other structure. Other structures in-clude but are not limited to:

a. Barns;

b. Exterior walls that do not support the roof of thedwelling;

c. Fences;

d. Garages that are detached from the dwelling;

e. Gazebos;

f. Sheds; or

g. Swimming pools that are exterior to the wallssupporting the roof of the dwelling.

THIS COVERAGE DOES NOT APPLY TO LAND,INCLUDING LAND ON WHICH THE OTHERSTRUCTURES ARE LOCATED.

WE DO NOT COVER OTHER STRUCTURES:

a. USED IN WHOLE OR IN PART FOR BUSINESSPURPOSES: OR

b. RENTED OR HELD FOR RENTAL TO ANYPERSON NOT A TENANT OF THE DWELLING,UNLESS USED SOLELY AS A PRIVATE GA-RAGE. Use of Coverage B does not reduce theamount of coverage available to you under Cov-erage A - Dwelling.

COVERAGE C - PERSONAL PROPERTY

We cover personal property owned or used by anyinsured while it is anywhere in the world. At your re-quest, we will cover personal property owned by oth-ers while the property is on the part of the residencepremises occupied by any insured. In addition, wewill cover at your request, personal property owned bya guest or a residence employee, while the propertyis in any residence occupied by any insured.

Our limit of liability for personal property usually lo-cated at any insured's residence, other than theresidence premises, is 10% of the limit of liability forCoverage C, or $1,000, whichever is greater. THISLIMIT APPLIES TO THE PERSONAL PROPERTYOF INSUREDS, INCLUDING, BUT NOT LIMITEDTO, STUDENTS WHO RESIDE AWAY FROM THERESIDENCE PREMISES PERIODICALLY FOR THEPERSONAL PROPERTY AT THE LOCATIONAWAY. Personal property in a newly acquired princi-pal residence is not subject to this limitation for the 30days immediately after you begin to move the prop-erty there.

SPECIAL LIMITS OF LIABILITY. THESE LIMITS DONOT INCREASE THE COVERAGE C LIMIT OF LI-ABILITY. THE SPECIAL LIMIT FOR EACH FOL-LOWING NUMBERED CATEGORY IS THE TOTALLIMIT FOR EACH OCCURRENCE FOR ALL PROP-ERTY IN THAT NUMBERED CATEGORY.

1. $200 ON MONEY, BANK NOTES, BULLION,GOLD OTHER THAN GOLDWARE, SILVEROTHER THAN SILVERWARE, PLATINUM,COINS AND MEDALS.

2. $1,000 ON SECURITIES, ACCOUNTS, DEEDS,EVIDENCES OF DEBT, LETTERS OF CREDIT,NOTES OTHER THAN BANK NOTES, MANU-SCRIPTS, PASSPORTS, TICKETS ANDSTAMPS.

3. $1,000 ON WATERCRAFT, INCLUDING THEIRTRAILERS, FURNISHINGS, EQUIPMENT ANDOUTBOARD MOTORS.

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4. $1,000 ON TRAILERS NOT USED WITH WA-TERCRAFT.

5. $1,000 FOR LOSS BY THEFT OF JEWELRY,WATCHES, FURS, PRECIOUS AND SEMIPRE-CIOUS STONES.

6. $2,500 FOR LOSS BY THEFT OF SILVER-WARE, SILVER-PLATED WARE, GOLDWARE,AND GOLD-PLATED WARE AND PEWTER-WARE. THIS INCLUDES FLATWARE, HOLLO-WARE, TEA SETS, TRAYS AND TROPHIESMADE OF OR INCLUDING SILVER, GOLD ORPEWTER.

7. $2,000 FOR LOSS BY THEFT OF FIREARMS.

8. $2,500 ON PROPERTY, ON THE RESIDENCEPREMISES USED AT ANY TIME OR IN ANYMANNER FOR ANY BUSINESS PURPOSE;

9. $250 ON PROPERTY AWAY FROM THERESIDENCE PREMISES USED AT ANY TIMEOR IN ANY MANNER FOR ANY BUSINESSPURPOSE. HOWEVER, THIS LIMIT DOES NOTAPPLY TO LOSS TO ADAPTABLE ELEC-TRONIC APPARATUS AS DESCRIBED INSPECIAL LIMITS 10. AND 11. BELOW.

10. $1000 FOR LOSS TO ELECTRONIC APPARA-TUS, WHILE IN OR UPON A MOTOR VEHICLEOR OTHER MOTORIZED LAND CONVEYANCE,IF THE ELECTRONIC APPARATUS ISEQUIPPED TO BE OPERATED BY POWERFROM THE ELECTRICAL SYSTEM OF THEVEHICLE OR CONVEYANCE WHILE RETAIN-ING ITS CAPABILITY OF BEING OPERATEDBY OTHER SOURCES OF POWER. ELEC-TRONIC APPARATUS INCLUDES:

a. ACCESSORIES AND ANTENNAS; OR

b. TAPES, WIRES, RECORDS, DISCS OROTHER MEDIA;

FOR USE WITH ANY ELECTRONIC APPARA-TUS.

11. $1000 FOR LOSS TO ELECTRONIC APPARA-TUS, WHILE NOT IN OR UPON A MOTOR VE-HICLE OR OTHER MOTORIZED LANDCONVEYANCE, IF THE ELECTRONIC APPA-RATUS:

a. IS EQUIPPED TO BE OPERATED BYPOWER FROM THE ELECTRICAL SYSTEMOF THE VEHICLE OR CONVEYANCEWHILE RETAINING ITS CAPABILITY OFBEING OPERATED BY OTHER SOURCESOF POWER;

b. IS AWAY FROM THE RESIDENCE PREM-ISES; AND

c. IS USED AT ANY TIME OR IN ANY MAN-NER FOR ANY BUSINESS PURPOSE.

ELECTRONIC APPARATUS INCLUDES:

a. ACCESSORIES AND ANTENNAS; OR

b. TAPES, WIRES, RECORDS, DISCS OROTHER MEDIA;

FOR USE WITH ANY ELECTRONIC APPARA-TUS.

PROPERTY NOT COVERED. WE DO NOT COVER:

1. ARTICLES SEPARATELY DESCRIBED ANDSPECIFICALLY INSURED IN THIS OR ANYOTHER INSURANCE;

2. ANIMALS, BIRDS OR FISH;

3. MOTORIZED LAND VEHICLES, EXCEPT WEDO COVER:

a. MOTORIZED LAND VEHICLES INCLUDINGTHEIR ACCESSORIES, ATTACHMENTS,EQUIPMENT OR PARTS, NOT SUBJECTTO MOTOR VEHICLE REGISTRATION,USED TO SERVICE AN INSURED'S RESI-DENCE.

b. MOTORIZED LAND VEHICLES, NOT RE-QUIRING MOTOR VEHICLE REGISTRA-TION DESIGNED FOR ASSISTING THEHANDICAPPED.

c. EXTRA ACCESSORIES, EQUIPMENT ORPARTS DETACHED FROM A MOTORIZEDLAND VEHICLE SUBJECT TO MOTOR VE-HICLE REGISTRATION, OWNED OR INTHE POSSESSION OF ANY INSURED,PROVIDED THAT IMMEDIATELY FOL-LOWING THE LOSS TO THE ITEMSCLAIMED THAT VEHICLE FOR WHICH THEITEMS WERE INTENDED BE FULLY AS-SEMBLED WITH ALL OF ITS USUAL AC-CESSORIES, EQUIPMENT OR PARTS ANDBE CAPABLE OF OPERATION, AS DE-SIGNED, PROPERLY AND LEGALLY,UPON THE PUBLIC WAYS FOR ANAMOUNT NOT EXCEEDING $500.

4. a. ANY DEVICE OR INSTRUMENT, INCLUD-ING ANY ACCESSORIES OR ANTENNAS,FOR THE TRANSMITTING, RECORDING,RECEIVING OR REPRODUCTION OFSOUND WHICH IS DESIGNED TO BESOLELY OPERATED BY POWER FROMTHE ELECTRICAL SYSTEM OF A MOTORVEHICLE, OR ANY TAPE, WIRE, RECORD,DISC OR OTHER MEDIUM FOR USE WITHANY SUCH DEVICE OR INSTRUMENTWHILE ANY OF THIS PROPERTY IS IN ORUPON A MOTOR VEHICLE;

b. RADAR DETECTION DEVICES.

5. AIRCRAFT AND AIRCRAFT PARTS;

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6. PROPERTY OF ROOMERS, BOARDERS ANDOTHER TENANTS, EXCEPT PROPERTY OFROOMERS AND BOARDERS RELATED TOANY INSURED;

7. PROPERTY CONTAINED IN AN APARTMENTREGULARLY RENTED OR HELD FOR RENTALTO OTHERS BY ANY INSURED;

8. PROPERTY RENTED OR HELD FOR RENTALTO OTHERS AWAY FROM THE RESIDENCEPREMISES.

COVERAGE D - LOSS OF USE

The limit of liability for Coverage D is the total for allthe following coverages.

1. Additional Living Expense. If a loss coveredunder this Section makes the residence prem-ises uninhabitable, we cover any necessary in-crease in living expenses incurred by you so thatyour household can maintain its normal standardof living. PAYMENT SHALL BE FOR THESHORTEST TIME REQUIRED TO REPAIR ORREPLACE THE PREMISES OR, IF YOU PER-MANENTLY RELOCATE, THE SHORTEST TIMEREQUIRED FOR YOUR HOUSEHOLD TO SET-TLE ELSEWHERE. This period of time is not lim-ited by expiration of this policy.

2. Fair Rental Value. If a loss covered under thissection makes that part of the residence prem-ises rented to others or held for rental by you un-inhabitable, we cover its fair rental value.PAYMENTS SHALL BE FOR THE SHORTESTTIME REQUIRED TO REPAIR OR REPLACETHE PART OF THE PREMISES RENTED ORHELD FOR RENTAL. This period of time is notlimited by expiration of this policy. FAIR RENTALVALUE SHALL NOT INCLUDE ANY EXPENSETHAT DOES NOT CONTINUE WHILE THATPART OF THE RESIDENCE PREMISESRENTED OR HELD FOR RENTAL IS UNIN-HABITABLE.

3. Prohibited Use. If a civil authority prohibits youfrom use of the residence premises as a resultof direct damage to neighboring premises by aPeril Insured Against in this policy, we cover anyresulting Additional Living expense and FairRental Value loss FOR A PERIOD NOT EX-CEEDING TWO WEEKS DURING WHICH USEIS PROHIBITED.

WE DO NOT COVER LOSS OR EXPENSE DUE TOCANCELLATION OF A LEASE OR AGREEMENT.

ADDITIONAL COVERAGES

1. Debris Removal.

We will pay the reasonable expense incurred byyou in:

a. the removal of debris of Covered propertyPROVIDED COVERAGE IS AFFORDEDFOR THE PERIL CAUSING THE LOSS; and

b. the removal of one or more trees fallen on theresidence premises as a result of a peril in-sured against UNDER SECTION I - PERILSINSURED AGAINST, COVERAGE A -DWELLING AND COVERAGE B - OTHERSTRUCTURES, but not more than $500 forany one occurrence regardless of the numberof fallen trees.

Debris removal expense is included in the limit ofliability applying to the damaged property. Whenthe amount payable for the actual damage to theproperty plus the expense for debris removal ex-ceeds the limit of liability for the damaged prop-erty, an additional 5% of that limit of liability willbe available to cover debris removal expense.However the availability of this additional amountdoes not change the $500 maximum payable fortree debris removal under subsection b above.

2. Reasonable Repairs. In the event that coveredproperty is damaged by an applicable Peril In-sured Against, we will pay the reasonable costINCURRED BY YOU FOR THE NECESSARYMEASURES TAKEN SOLELY TO PROTECTAGAINST FURTHER DAMAGE. IF THE MEAS-URES TAKEN INVOLVE REPAIR TO OTHERDAMAGED PROPERTY, WE WILL PAY FORTHOSE MEASURES ONLY IF THAT PROP-ERTY IS COVERED UNDER THIS POLICY ANDTHE DAMAGE TO THAT PROPERTY ISCAUSED BY AN APPLICABLE PERIL INSUREDAGAINST.

This Additional Coverage:

a. DOES NOT INCREASE THE LIMIT OF LI-ABILITY THAT APPLIES TO THE COVEREDPROPERTY.

b. DOES NOT CHANGE YOUR OBLIGATIONSOR DUTIES, IF THERE IS LOSS OR DAM-AGE TO COVERED PROPERTY, ASSTATED IN SECTION I - CONDITIONS,CONDITION 2. YOUR DUTIES AFTERLOSS SUBSECTION d.

3. Trees, Shrubs and Other Plants. We covertrees, shrubs, plants or lawns, on the residencepremises, for loss caused by the following PerilsInsured Against; Fire or lightning, Explosion, Riotor civil commotion, Aircraft, Vehicles not ownedor operated by a resident of the residencepremises, Vandalism or malicious mischief orTheft.

WE WILL PAY UP TO 5% OF THE LIMIT OF LI-ABILITY THAT APPLIES TO THE DWELLINGFOR ALL TREES, SHRUBS, PLANTS OR

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LAWNS. NO MORE THAN $500 OF THIS LIMITWILL BE AVAILABLE FOR ANY ONE TREE,SHRUB OR PLANT. WE DO NOT COVERPROPERTY GROWN FOR BUSINESS PUR-POSES.

THIS COVERAGE IS ADDITIONAL INSUR-ANCE.

4. Fire Department Service Charge. WE WILLPAY UP TO $500 for your liability assumed bycontract or agreement for fire department chargesincurred when the fire department is called tosave or protect covered property from a Peril In-sured Against. No deductible applies to this cov-erage.

5. Property Removed. We insure covered propertyagainst direct loss from any cause while beingremoved from a premises endangered by a PerilInsured Against and no more than 30 days whileremoved. THIS COVERAGE DOES NOTCHANGE THE LIMIT OF LIABILITY APPLYINGTO THE PROPERTY BEING REMOVED.

6. Credit Card, Fund Transfer Card, Forgery andCounterfeit Money. We will pay up to $1,000 for:

a. the legal obligation of any insured to pay be-cause of the theft or unauthorized use ofcredit cards or fund transfer cards issued to orregistered in any insured's name. WE DONOT COVER USE BY A RESIDENT OFYOUR HOUSEHOLD, A PERSON WHO HASBEEN ENTRUSTED WITH THE CREDITCARD OR FUND TRANSFER CARD, ORANY PERSON, IF ANY INSURED HAS NOTCOMPLIED WITH ALL TERMS AND CON-DITIONS UNDER WHICH THE CREDITCARD OR FUND TRANSFER CARD IS IS-SUED.

b. loss to any insured caused by forgery or al-teration of any check or negotiable instru-ment; and

c. loss to any insured through acceptance ingood faith of counterfeit United States or Ca-nadian paper currency.

ALL LOSS RESULTING FROM A SERIES OFACTS COMMITTED BY ANY ONE PERSON ORIN WHICH ANY ONE PERSON IS CONCERNEDOR IMPLICATED IS CONSIDERED TO BE ONELOSS.

WE DO NOT COVER LOSS ARISING OUT OFBUSINESS PURSUITS OR DISHONESTY OFANY INSURED.

No deductible applies to this coverage.

Defense:

a. We may make any investigation and settleany claim or suit that we decide is appropri-ate. OUR OBLIGATION TO DEFEND ANYCLAIM OR SUIT ENDS WHEN THEAMOUNT WE PAY FOR THE LOSSEQUALS OUR LIMIT OF LIABILITY.

b. If a claim is made or a suit is brought againstany insured for liability under the Credit Cardor Fund Transfer Card coverage, we will pro-vide a defense at our expense by counsel ofour choice.

c. We have the option to defend at our expenseany insured or any insured's bank againstany suit for the enforcement of payment un-der Forgery coverage.

7. Loss Assessment. We will pay up to $1,000 foryour share of any loss assessment charged duringthe policy period against you by a corporation orassociation of property owners. This only applieswhen the assessment is made as a result of eachdirect loss to the property; owned by all memberscollectively, caused by a Peril Insured Againstunder Coverage A - Dwelling.

This coverage applies only to loss assessmentscharged against you as owner or tenant of theresidence premises.

We do not cover loss assessments chargedagainst you or a corporation or association ofproperty owners by any governmental body.

THE LIMIT OF $1,000 IS THE MOST WE WILLPAY WITH RESPECT TO ANY ONE LOSS, RE-GARDLESS OF THE NUMBER OF ASSESS-MENTS.

Under Section I and II Conditions, Condition 1.Policy Period does not apply to this additionalcoverage.

8. Collapse. EXCEPT FOR LOSS CAUSED BYSETTLING, CRACKING, BULGING OR EXPAN-SION, we insure for risk of direct physical loss tocovered property resulting from collapse of abuilding or any part of a building CAUSED ONLYBY ONE OR MORE OF THE FOLLOWING:

a. hidden decay;

b. hidden bird, insect or vermin damage;

c. weight of contents, equipment, animals orpeople;

d. weight of precipitation which collects on aroof;

e. use of defective material or methods in al-teration, construction, remodeling or renova-tion if the collapse occurs during the course ofthe alteration, construction, remodeling orrenovation.

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UNDER ITEMS a .- e., THIS COVERAGE DOESNOT INCLUDE LOSS TO AN AWNING, FENCE,PATIO, DRIVEWAY, ROADWAY, WALKWAY,PAVEMENT, SWIMMING POOL, SPA, HOTTUB, UNDERGROUND PIPE, FLUE, DRAIN,DECKS, CESSPOOL, SEPTIC TANK, FOUNDA-TION, RETAINING WALL, BULKHEAD, PIER,WHARF OR DOCK UNLESS THE LOSS IS ADIRECT RESULT OF THE COLLAPSE OF ABUILDING.

f. The specific Perils that follow:

(1) Fire or Lightning

(2) Windstorm or Hail

(3) Explosion

(4) Riot or civil commotion

(5) Aircraft including self-propelled missilesand spacecraft.

(6) Vehicles

(7) Smoke, meaning sudden and accidentaldamage from smoke.

(8) Theft

(9) Falling objects

(10)Weight of ice, snow or sleet

(11)Accidental discharge or overflow ofwater or steam from within a plumbing,drainage, heating, or air conditioningsystem or from within a household appli-ance.

(12)Sudden and accidental tearing asun-der, cracking, burning or bulging of asteam or hot water heating system, anair conditioning system, or an appliancefor heating water.

(13)Freezing of a plumbing, drainage, heat-ing, air conditioning system or of ahousehold appliance.

(14)Sudden and accidental damage fromartificially generated electrical cur-rent.

These perils apply to covered building andpersonal property for loss insured by this ad-ditional coverage:

THIS COVERAGE DOES NOT INCREASE ANYLIMIT OF LIABILITY APPLYING TO THE DAM-AGED COVERED PROPERTY.

9. Glass or Safety Glazing Material

We cover:

a. the breakage of glass or safety glazing mate-rial which is part of a covered building, stormdoor or storm window; and

b. damage to covered property by glass orsafety glazing material which is part of abuilding, storm door or storm window.

THIS COVERAGE DOES NOT INCLUDE LOSSON THE RESIDENCE PREMISES IF THEDWELLING HAS BEEN VACANT FOR MORETHAN 30 CONSECUTIVE DAYS IMMEDIATELYBEFORE THE LOSS. A DWELLING BEINGCONSTRUCTED IS NOT CONSIDERED VA-CANT.

Loss for damage to glass will be settled on thebasis of replacement with safety glazing materialswhen required by ordinance or law.

THIS COVERAGE DOES NOT INCREASE THELIMIT OF LIABILITY THAT APPLIES TO THEDAMAGED PROPERTY.

10. Refrigerated Products Coverage

We will pay up to $500 for damage or loss to thecontents of freezers or refrigerated units causedby a power interruption or a mechanical failure ofthe appliance located on the residence prem-ises.

POWER INTERRUPTION SHALL NOT INCLUDEDISCONNECTION OF THE ELECTRICALSERVICE TO THE APPLIANCE BY UNPLUG-GING IT FROM THE ELECTRICAL SOURCE ORBY SWITCHING THE APPLIANCE OR ELEC-TRIC SOURCE OFF.

Mechanical failure means the breakdown or mal-function of the appliance compressor or its relatedcomponents resulting in the loss of refrigeration.

WHEN YOU LEARN OF A POWER INTERRUP-TION OR MECHANICAL FAILURE OCCUR-RENCE THAT MAY RESULT IN LOSS ORDAMAGE TO THE CONTENTS OF A FREEZEROR REFRIGERATED UNIT, YOU MUST USEALL REASONABLE MEANS TO PROTECT THISPROPERTY FROM FURTHER LOSS OR DAM-AGE. IF YOU DO NOT PROTECT THESE RE-FRIGERATED PRODUCTS FROM FURTHERDAMAGE, THIS COVERAGE WILL NOT AP-PLY.A $100 DEDUCTIBLE APPLIES TO THISCOVERAGE.

11. Excavation Coverage

We will pay the reasonable cost INCURRED BYYOU UP TO $1,000, for the digging or excavationof the grounds on the residence premises to ex-amine or unearth underground:

a. Drains;

b. Flues;

c. Pipes;

d. Tanks; or

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e. Wiring

TO PREVENT DAMAGE OR RESTORE UTILITYSERVICE ON SUCH PREMISES TO THE:

a. DWELLING;

b. OTHER STRUCTURE(S); OR

c. CONTENTS.

WE WILL PAY ONLY FOR THE DIGGING OREXCAVATION, REASONABLY NECESSARYUNDER THIS ADDITIONAL COVERAGE. LOSSOR DAMAGE TO THE:

a. DRAINS;

b. FLUES;

c. PIPES;

d. TANKS; OR

e. WIRING

IS NOT COVERED UNDER THIS ADDITIONALCOVERAGE.

WE WILL NOT PAY FOR:

a. ANY DIGGING OR EXCAVATION BEYONDTHE UTILITY SHUT-OFF POINT;

b. TREES, SHRUBS, PLANTS OR LAWNS; OR

c. ANY REFILL OR BACKFILL.

12. Spillage or Residue Removal Coverage

We will pay up to $5,000 for the removal of

a. substances accidently spilled on; or

b. residue covering

an interior building item insured under CoverageA - Dwelling or Coverage B Other Structures.

THIS COVERAGE INCLUDES, BUT IS NOTLIMITED TO THE CLEANING, CORRECTION,MODIFICATION, REMOVAL, REPAIR ORRENOVATION OF THE INTERIOR BUILDINGITEM(S) ALTERED, COATED, COVERED ORDAMAGED BY SUCH SPILLAGE OR RESIDUE.

THIS COVERAGE IS LIMITED TO INTERIORBUILDING ITEMS. WE DO NOT COVER ANYITEM LOCATED OUTSIDE THE EXTERIORWALLS OF THE BUILDING OR BELOW THEUNDERSURFACE OF THE LOWEST BASE-MENT FLOOR OR, WHERE THERE IS NOBASEMENT, BELOW THE SURFACE OF THEGROUND INSIDE THE FOUNDATION WALLS.

WE WILL NOT PAY FOR SPILLAGE OR RESI-DUE REMOVAL IF THE SPILLAGE OR RESI-DUE WAS CAUSED BY A PERIL EXCLUDEDOR LIMITED BY THIS POLICY. HOWEVERCOVERAGE EXCEPTION C. 7.e. UNDER SEC-TION I - COVERAGE A. DWELLING and COV-ERAGE B - OTHER STRUCTURES PERILSINSURED AGAINST DOES NOT APPLY TOTHIS ADDITIONAL COVERAGE.

This coverage is additional coverage.

SECTION I - PERILS INSURED AGAINST

COVERAGE A DWELLING AND - COVERAGE BOTHER STRUCTURES

We insure against risks of direct physical loss toproperty described in COVERAGE A and B, EX-CEPT:

A. WE DO NOT COVER ANY LOSS THAT RE-SULTS FROM A PERIL EXCLUDED OR LIM-ITED BY THIS POLICY, EVEN IF A COVEREDPERIL IS A CONCURRENT CAUSE OF LOSS.

B. WE DO NOT COVER ANY LOSS OR DAMAGETO YOUR DWELLING OR OTHER STRUC-TURES CAUSED DIRECTLY OR INDIRECTLY,CONTRIBUTED TO, OR AGGRAVATED BY DE-FECTIVE, INADEQUATE, OR FAULTY PLAN-NING, CONSTRUCTION, OR MAINTENANCEOF ANY PROPERTY WHETHER ON OR OFFTHE insured location RESULTING FROM:

DEFECTIVE, INADEQUATE, OR FAULTY:

1. DEVELOPMENT, SUBDIVIDING, SURVEY-ING, OR SITING; INCLUDING GRADING,EXCAVATION, AND SOIL COMPACTION;

2. SPECIFICATIONS, BUILDING CODES ORTHEIR ENFORCEMENT OR ZONING RE-QUIREMENTS;

3. ALTERATION, CONSTRUCTION, REPAIRS,RENOVATION, OR REMODELING;

4. MATERIALS RECOMMENDED, SELECTED,SUPPLIED, OR USED IN ALTERATION,CONSTRUCTION, REPAIRS, RENOVATIONOR REMODELING;

5. MAINTENANCE.

YOU MAY NOT CLAIM ANY OF THE SITUA-TIONS INCLUDED IN "B." ABOVE AS A CAUSEOF LOSS. THESE ARE NOT PERILS WE IN-SURE AGAINST. Ensuing perils, NOT OTHER-WISE EXCLUDED OR LIMITED BY THISPOLICY are covered.

C. WE DO NOT COVER:

1. LOSSES EXCLUDED UNDER SECTION I -EXCLUSIONS.

2. LOSS CAUSED BY FREEZING OF APLUMBING, DRAINAGE, HEATING, AIR

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CONDITIONING SYSTEM OR AUTOMATICFIRE PROTECTIVE SPRINKLER SYSTEMOR OF A HOUSEHOLD APPLIANCE, OR BYDISCHARGE, LEAKAGE OR OVERFLOWFROM WITHIN THE SYSTEM OR APPLI-ANCE CAUSED BY FREEZING. THIS EX-CLUSION APPLIES ONLY WHILE THEDWELLING IS VACANT, UNOCCUPIED ORBEING CONSTRUCTED UNLESS YOUHAVE USED REASONABLE CARE TO:

a. MAINTAIN HEAT IN THE BUILDING,OR

b. SHUT OFF THE WATER SUPPLY ANDDRAIN THE SYSTEM AND APPLI-ANCES OF WATER.

3. LOSS CAUSED BY FREEZING, THAWING,PRESSURE OR WEIGHT OF WATER,SNOW OR ICE, WHETHER DRIVEN BYWIND OR NOT TO A:

a. FENCE, DRIVEWAY, ROADWAY,WALKWAY, PAVEMENT, PATIO,SWIMMING POOL, SPA, OR HOT TUB;

b. FOUNDATION, RETAINING WALL,BULKHEAD; OR

c. PIER, DECK, WHARF OR DOCK

4. LOSS CAUSED BY THEFT IN OR TO ADWELLING UNDER CONSTRUCTION, OROF MATERIALS AND SUPPLIES FOR USEIN THE CONSTRUCTION UNTIL THEDWELLING IS COMPLETED AND OCCU-PIED;

5. LOSS CAUSED BY VANDALISM AND MA-LICIOUS MISCHIEF OR BREAKAGE OFGLASS AND SAFETY GLAZING MATERI-ALS IF THE DWELLING HAS BEEN VA-CANT FOR MORE THAN 30 CONSECUTIVEDAYS IMMEDIATELY BEFORE THE LOSS.A DWELLING BEING CONSTRUCTED ISNOT CONSIDERED VACANT;

6. CONTINUOUS OR REPEATED SEEPAGEOR LEAKAGE OF WATER OR STEAMOVER A PERIOD OF TIME, WEEKS,MONTHS OR YEARS, FROM WITHIN APLUMBING, DRAINAGE, HEATING, AIRCONDITIONING SYSTEM OR AUTOMATICFIRE PROTECTIVE SPRINKLER SYSTEMOR FROM WITHIN A HOUSEHOLD APPLI-ANCE;

7. LOSS CAUSED BY:

a. WEAR AND TEAR, MARRING, DETE-RIORATION, OR FAILURE TO MAIN-TAIN;

b. INHERENT VICE, LATENT DEFECT,MECHANICAL BREAKDOWN;

c. SMOG, RUST OR OTHER CORRO-SION, MOLD, FUNGUS, WET OR DRYROT;

d. SMOKE FROM AGRICULTURALSMUDGING OR INDUSTRIAL OPERA-TIONS;

e. DISCHARGE, DISPERSAL, SEEPAGE,MIGRATION, RELEASE OR ESCAPEOF POLLUTANTS UNLESS THE DIS-CHARGE, DISPERSAL, SEEPAGE,MIGRATION, RELEASE OR ESCAPE ISITSELF CAUSED BY A PERIL IN-SURED AGAINST UNDER COVERAGEC OF THIS POLICY. POLLUTANTSMEANS ANY SOLID, LIQUID, GASE-OUS, OR THERMAL IRRITANT ORCONTAMINANT, INCLUDING SMOKE,VAPOR, SOOT, FUMES, ACIDS, AL-KALIS, CHEMICALS AND WASTE.WASTE INCLUDES MATERIALS TO BERECYCLED, RECONDITIONED ORRECLAIMED EXCEPT AS PROVIDEDBY SECTION I - ADDITIONAL COV-ERAGE 12. Spillage or Residue Re-moval Coverage;

f. SETTLING, CRACKING, SHRINKING,BULGING OR EXPANSION OFDRIVEWAYS, ROADWAYS, WALK-WAYS, PAVEMENTS, PATIOS, FOUN-DATIONS, WALLS, FLOORS, ROOFSOR CEILINGS;

g. BIRDS, VERMIN, RODENTS OR IN-SECTS; OR

h. ANIMALS OWNED OR KEPT BY ANYINSURED.

If any of these cause water to suddenly escape from aplumbing, heating, air conditioning system or auto-matic fire protective sprinkler system or householdappliance, we cover loss caused by the water. Wealso cover the cost of tearing out and replacing anypart of a building necessary to repair the system orappliance. HOWEVER, "TEARING OUT" DOES NOTINCLUDE ANY DIGGING OR EXCAVATION FORTHE EXAMINATION OF UNDERGROUND DRAINS,FLUES, PIPES, TANKS OR WIRING, EXCEPT ASPROVIDED BY SECTION I - ADDITIONAL COVER-AGES - 11. Excavation Coverage. WE DO NOTCOVER LOSS TO THE SYSTEM OR APPLIANCEFROM WHICH THIS WATER ESCAPED.

8. LOSS CAUSED BY COLLAPSE OTHERTHAN PROVIDED AS ADDITIONAL COV-ERAGE 8.

UNDER ITEMS B. AND C. 2 THROUGH 7 ANY EN-SUING LOSS NOT EXCLUDED IS COVERED.

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COVERAGE C PERSONAL - PROPERTY

We insure for direct physical loss to property de-scribed in Coverage C caused only by the perilsnamed below, unless excepted or excluded by SEC-TION I EXCLUSIONS:

1. Fire or lightning.

2. Windstorm or hail.

THIS PERIL DOES NOT INCLUDE LOSS TOTHE PROPERTY CONTAINED IN A BUILDINGBY RAIN, SNOW, SLEET, SAND OR DUST UN-LESS THE DIRECT FORCE OF WIND OR HAILDAMAGES THE BUILDING CAUSING ANOPENING IN A ROOF OR WALL AND THERAIN, SNOW, SLEET, SAND OR DUST EN-TERS THROUGH THIS OPENING.

THIS PERIL INCLUDES LOSS TO WATER-CRAFT AND THEIR TRAILERS, FURNISHINGS,EQUIPMENT, AND OUTBOARD ENGINES ORMOTORS, ONLY WHILE INSIDE A FULLY EN-CLOSED BUILDING.

3. Explosion.

4. Riot or civil commotion.

5. Aircraft, including self-propelled missiles andspacecraft.

6. Vehicles.

7. Smoke, meaning sudden and accidental damagefrom smoke.

THIS PERIL DOES NOT INCLUDE LOSSCAUSED BY SMOKE FROM AGRICULTURALSMUDGING OR INDUSTRIAL OPERATIONS.

8. Vandalism or malicious mischief.

9. Theft, including attempted theft and loss of prop-erty from a known location when it is likely thatthe property has been stolen.

THIS PERIL DOES NOT INCLUDE LOSSCAUSED BY THEFT:

a. COMMITTED BY ANY INSURED, OR ANYPERSON RENTING THE RESIDENCEPREMISES;

b. IN OR TO A DWELLING UNDER CON-STRUCTION, OR OF MATERIALS ANDSUPPLIES FOR USE IN THE CONSTRUC-TION UNTIL THE DWELLING IS COM-PLETED AND OCCUPIED: OR

c. FROM ANY PART OF A RESIDENCEPREMISES RENTED FOR MORE THAN 60DAYS ANNUALLY BY AN INSURED TOOTHER THAN AN INSURED.

THIS PERIL DOES NOT INCLUDE LOSSCAUSED BY THEFT THAT OCCURS AWAYFROM THE RESIDENCE PREMISES OF:

a. PROPERTY WHILE AT ANY OTHER RESI-DENCE OWNED, RENTED TO, OR OCCU-PIED BY ANY INSURED, EXCEPT WHILEANY INSURED IS TEMPORARILY RESID-ING THERE. PROPERTY OF A STUDENTWHO IS AN INSURED IS COVERED WHILEAT A RESIDENCE AWAY FROM HOME IFTHE STUDENT HAS BEEN THERE AT ANYTIME DURING THE 45 DAYS IMMEDIATELYBEFORE THE LOSS;

b. WATERCRAFT, INCLUDING THEIR FUR-NISHINGS, EQUIPMENT AND OUTBOARDENGINES OR MOTORS; OR

c. TRAILERS AND CAMPERS.

10. Falling Objects

THIS PERIL DOES NOT INCLUDE LOSS TOPROPERTY CONTAINED IN A BUILDING UN-LESS THE ROOF OR AN OUTSIDE WALL OFTHE BUILDING IS FIRST DAMAGED BY A FAL-LING OBJECT. DAMAGE TO THE FALLING OB-JECT ITSELF IS NOT INCLUDED.

11. Weight of ice, snow or sleet which causesdamage to property contained in a building.

12. Accidental discharge or overflow of water orsteam from within a plumbing, drainage, heating,automatic fire protective sprinkler system or airconditioning system or from within a householdappliance.

THIS PERIL DOES NOT INCLUDE LOSS:

a. TO THE SYSTEM OR APPLIANCE FROMWHICH THE WATER OR STEAM ES-CAPED;

b. CAUSED BY OR RESULTING FROMFREEZING, except AS PROVIDED IN THEPERIL FREEZING (14. FREEZING) BELOW;OR

c. ON THE RESIDENCE PREMISES CAUSEDBY ACCIDENTAL DISCHARGE OR OVER-FLOW WHICH OCCURS OFF THE RESI-DENCE PREMISES.

13. Sudden and accidental tearing asunder,cracking, burning or bulging of a steam or hotwater heating system, an air conditioning system,an automatic fire protective sprinkler system or anappliance for heating water.

WE DO NOT COVER LOSS CAUSED BY ORRESULTING FROM FREEZING UNDER THISPERIL.

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14. Freezing of a plumbing, drainage, heating, auto-matic fire protective sprinkler system or air condi-tioning system or of a household appliance. THISPERIL DOES NOT INCLUDE LOSS ON THERESIDENCE PREMISES WHILE THE DWELL-ING IS UNOCCUPIED, UNLESS YOU HAVEUSED REASONABLE CARE TO:

a. MAINTAIN HEAT IN THE BUILDING: OR

b. SHUT OFF THE WATER SUPPLY ANDDRAIN THE SYSTEM AND APPLIANCESOF WATER.

15. Sudden and accidental damage from artifi-cially generated electrical current. THIS PERILDOES NOT INCLUDE LOSS TO A TUBE,TRANSISTOR OR SIMILAR ELECTRONICCOMPONENT.

SECTION I - EXCLUSIONS

WE DO NOT COVER LOSS RESULTING DIRECTLYOR INDIRECTLY FROM:

1. ORDINANCE OR LAW, MEANING ESTAB-LISHING, ENFORCEMENT OF, OR THE FAIL-URE TO ESTABLISH OR ENFORCE ANYORDINANCE, REGULATION OR LAW REGU-LATING THE CONSTRUCTION, REPAIR,DEMOLITION OR ZONING OF A BUILDING OROTHER STRUCTURE, UNLESS SPECIFICALLYPROVIDED UNDER THIS POLICY.

2. EARTH MOVEMENT, MEANING ANY LOSSCAUSED BY, RESULTING FROM, CONTRIB-UTED TO, OR AGGRAVATED BY EVENTSTHAT INCLUDE, BUT ARE NOT LIMITED TOTHE FOLLOWING:

a. EARTHQUAKE AND EARTHQUAKE AF-TERSHOCKS

b. VOLCANO ACTIVITY INCLUDING BUT NOTLIMITED TO:

1. VOLCANIC ERUPTION;

2. VOLCANIC EXPLOSION;

3. EFFUSION OF VOLCANIC MATERIAL;OR

4. LAVA FLOW;

c. MUDSLIDE INCLUDING, MUDFLOW, DE-BRIS FLOW, LANDSLIDE, AVALANCHE, ORSEDIMENT;

d. SINKHOLE;

e. SUBSIDENCE;

f. EXCAVATION COLLAPSE;

g. EROSION;

h. ANY EXPANSION, SHIFTING, RISING,SINKING, CONTRACTING, OR SETTLINGOF THE EARTH, SOIL, OR LAND.

THIS EXCLUSION APPLIES WHETHER ORNOT THE EARTH, SOIL, OR LAND IS COM-BINED OR MIXED WITH WATER OR ANYOTHER LIQUID OR MATERIAL NATURAL ORMAN-MADE.

However, loss caused directly by the specific per-ils:

a. fire;

b. explosion;

c. breakage of building or dwelling glass orsafety glazing material, including storm doorsor windows; or;

d. theft,

following any EARTH MOVEMENT is covered.

3. WATER DAMAGE, MEANING:

a. FLOOD, SURFACE WATER, WAVES,WAVE WASH, TIDAL WATER, OVERFLOWOF A BODY OF WATER, OR SPRAY FROMANY OF THESE, WHETHER OR NOT ARESULT OF PRECIPITATION; OR DRIVENBY WIND;

b. WATER

(1) WHICH BACKS UP THROUGH SEW-ERS AND DRAINS;

(2) WHICH OVERFLOWS FROM A SUMP;OR

c. WATER BELOW THE SURFACE OF THEGROUND, INCLUDING WATER:

(1) WHICH EXERTS PRESSURE ON, ORSEEPS OR LEAKS THROUGH ABUILDING, DRIVEWAY, ROADWAY,WALKWAY, PAVEMENT, FOUNDA-TION, SPA, HOT TUB, SWIMMINGPOOL OR OTHER STRUCTURE;

(2) WHICH CAUSES EARTH MOVEMENT.

ALL LOSS FROM WATER DAMAGE IS EX-CLUDED NO MATTER IF LOSS OR DAMAGEWAS CAUSED BY, OR AGGRAVATED BY ANYOTHER PERIL IN ANY SEQUENCE. However,direct loss by fire, explosion or theft resulting fromWATER DAMAGE will be covered.

4. POWER FAILURE, MEANING THE FAILURE OFPOWER OR OTHER UTILITY SERVICE IF THEFAILURE TAKES PLACE OFF THE RESIDENCEPREMISES. IF A PERIL INSURED AGAINST

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ENSUES ON THE RESIDENCE PREMISES, WEWILL PAY ONLY FOR LOSS CAUSED BY THEENSUING PERIL.

5. NEGLECT, MEANING NEGLECT OF THE IN-SURED TO USE ALL REASONABLE MEANS TOSAVE AND PRESERVE PROPERTY AT ANDAFTER THE TIME OF A LOSS, OR WHENPROPERTY IS ENDANGERED BY A PERIL IN-SURED AGAINST.

6. WAR, INCLUDING UNDECLARED WAR, CIVILWAR, INSURRECTION, REBELLION, REVOLU-TION, WARLIKE ACT BY A MILITARY FORCEOR MILITARY PERSONNEL, DESTRUCTIONOR SEIZURE OR USE FOR A MILITARY PUR-POSE, AND INCLUDING ANY CONSEQUENCEOF ANY OF THESE. DISCHARGE OF A NU-

CLEAR WEAPON SHALL BE DEEMED A WAR-LIKE ACT EVEN IF ACCIDENTAL.

7. NUCLEAR HAZARD, TO THE EXTENT SETFORTH IN THE NUCLEAR HAZARD CLAUSEOF SECTION I - CONDITIONS.

8. INTENTIONAL LOSS, MEANING ANY LOSSARISING OUT OF ANY ACT COMMITTED:

(1) BY OR AT THE DIRECTION OF AN IN-SURED; and

(2) WITH THE INTENT TO CAUSE A LOSS.

LOSS OR DAMAGE EXCLUSIONS 1-8 APPLYABOVE EVEN IF A COVERED PERIL IS ACONCURRENT CAUSE OF LOSS. Ensuing lossspecifically accepted by the terms of this policy iscovered.

SECTION I - CONDITIONS

1. Insurable Interest and Limit of Liability. Even ifmore than one person has an insurable interest inthe property covered, WE SHALL NOT BE LI-ABLE:

a. TO THE INSURED FOR AN AMOUNTGREATER THAN THE INSURED'S INTER-EST; nor

b. FOR MORE THAN THE APPLICABLE LIMITOF LIABILITY.

2. Your Duties After Loss. In case of a loss towhich this insurance may apply, you shall see thatthe following duties are performed:

a. GIVE IMMEDIATE OR AS SWIFT AS POS-SIBLE NOTICE TO US OR OUR/YOURAGENT;

b. IN ADDITION, GIVE IMMEDIATE OR ASSWIFT AS POSSIBLE, A REPORT TO THEPOLICE, IF THE LOSS IS THEFT;

c. NOTIFY THE CREDIT CARD COMPANY ORFUND TRANSFER CARD COMPANY INTHE CASE OF LOSS UNDER ADDITIONALCOVERAGE - 6. CREDIT CARD, FUNDTRANSFER CARD COVERAGE;

d. (1) PROTECT THE PROPERTY FROMFURTHER DAMAGE;

(2) MAKE REASONABLE AND NECES-SARY REPAIRS TO PROTECT THEPROPERTY; AND

(3) KEEP AN ACCURATE RECORD OFREPAIR EXPENDITURES;

e. PREPARE AN INVENTORY OF DAMAGEDPERSONAL PROPERTY SHOWING IN DE-TAIL THE:

(1) QUANTITY;

(2) DESCRIPTION;

(3) ACTUAL CASH VALUE; AND

(4) AMOUNT OF LOSS.

ATTACH TO THE INVENTORY ALL:

(1) BILLS;

(2) RECEIPTS; AND

(3) RELATED DOCUMENTS THAT SUB-STANTIATE THE FIGURES IN THE IN-VENTORY;

f. AS OFTEN AS WE REASONABLY RE-QUIRE:

(1) SHOW THE DAMAGED PROPERTY;

(2) PROVIDE US WITH RECORDS ANDDOCUMENTS AND PERMIT US TOMAKE COPIES; AND

(3) SUBMIT TO EXAMINATION UNDEROATH, WHILE NOT IN THE PRES-ENCE OF ANY OTHER INSURED ANDSIGN THE SAME;

g. SUBMIT TO US, WITHIN 60 DAYS AFTERWE REQUEST, YOUR SIGNED, SWORNSTATEMENT OF LOSS WHICH SETSFORTH, TO THE BEST OF YOUR KNOWL-EDGE AND BELIEF:

(1) THE TIME AND CAUSE OF LOSS;

(2) INTEREST OF THE INSURED AND ALLOTHERS IN THE PROPERTY IN-VOLVED AND ALL ENCUMBRANCESON THE PROPERTY;

(3) OTHER INSURANCE WHICH MAYCOVER THE LOSS;

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(4) CHANGES IN TITLE OR OCCUPANCYOF THE PROPERTY DURING THETERM OF THE POLICY;

(5) SPECIFICATIONS OF ANY DAMAGEDBUILDING AND DETAILED ESTI-MATES FOR REPAIR OF THE DAM-AGE;

(6) AN INVENTORY OF DAMAGED PER-SONAL PROPERTY DESCRIBED IN 2e.ABOVE;

(7) RECEIPTS FOR ADDITIONAL LIVINGEXPENSES INCURRED AND REC-ORDS SUPPORTING THE FAIRRENTAL VALUE LOSS;

(8) EVIDENCE OR AFFIDAVIT SUP-PORTING A CLAIM UNDER THECREDIT CARD, FUND TRANSFERCARD, FORGERY AND COUNTERFEITMONEY COVERAGE, STATING THEAMOUNT AND CAUSE OF LOSS.

3. Loss Settlement. Covered property losses aresettled as follows:

a. PERSONAL PROPERTY AND STRUC-TURES THAT ARE NOT BUILDINGS ATACTUAL CASH VALUE AT THE TIME OFLOSS, BUT NOT EXCEEDING THEAMOUNT NECESSARY TO REPAIR ORREPLACE;

b. CARPETING, DOMESTIC APPLIANCES,AWNINGS, OUTDOOR ANTENNAS ANDOUTDOOR EQUIPMENT, WHETHER ORNOT ATTACHED TO BUILDINGS, AT AC-TUAL CASH VALUE AT THE TIME OF LOSSBUT NOT EXCEEDING THE AMOUNTNECESSARY TO REPAIR OR REPLACE;

c. BUILDINGS UNDER COVERAGE A OR BAT REPLACEMENT COST WITHOUT DE-DUCTION FOR DEPRECIATION, SUBJECTTO THE FOLLOWING:

(1) IF AT THE TIME OF LOSS THEAMOUNT OF INSURANCE IN THISPOLICY ON THE DAMAGED BUILDINGIS 80% OR MORE OF THE FULL RE-PLACEMENT COST OF THE BUILDINGIMMEDIATELY PRIOR TO THE LOSS,WE WILL PAY THE COST OF REPAIROR REPLACEMENT, WITHOUT DE-DUCTION FOR DEPRECIATION, BUTNOT EXCEEDING THE SMALLEST OFTHE FOLLOWING AMOUNTS:

(a) THE LIMIT OF LIABILITY UNDERTHIS POLICY APPLYING TO THEBUILDING;

(b) THE REPLACEMENT COST OFTHAT PART OF THE BUILDINGDAMAGED FOR EQUIVALENTCONSTRUCTION AND USE ONTHE SAME PREMISES; OR

(c) THE AMOUNT ACTUALLY ANDNECESSARILY SPENT TO RE-PAIR OR REPLACE THE DAM-AGED BUILDING.

(2) IF AT THE TIME OF LOSS THEAMOUNT OF INSURANCE IN THISPOLICY ON THE DAMAGED BUILDINGIS LESS THAN 80% OF THE FULL RE-PLACEMENT COST OF THE BUILDINGIMMEDIATELY PRIOR TO THE LOSS,WE WILL PAY THE LARGER OF THEFOLLOWING AMOUNTS, BUT NOTEXCEEDING THE LIMIT OF LIABILITYUNDER THIS POLICY APPLYING TOTHE BUILDING;

(a) THE ACTUAL CASH VALUE OFTHAT PART OF THE BUILDINGDAMAGED; OR

(b) THAT PROPORTION OF THECOST TO REPAIR OR REPLACE,WITHOUT DEDUCTION FOR DE-PRECIATION, OF THAT PART OFTHE BUILDING DAMAGED,WHICH THE TOTAL AMOUNT OFINSURANCE IN THIS POLICY ONTHE DAMAGED BUILDING BEARSTO 80% OF THE REPLACEMENTCOST OF THE BUILDING.

(3) IN DETERMINING THE AMOUNT OFINSURANCE REQUIRED TO EQUAL80% OF THE FULL REPLACEMENTCOST OF THE BUILDING IMMEDI-ATELY PRIOR TO THE LOSS, YOUSHALL DISREGARD THE VALUE OFEXCAVATIONS, FOUNDATIONS,PIERS AND OTHER SUPPORTSWHICH ARE BELOW THE UNDER-SURFACE OF THE LOWEST BASE-MENT FLOOR OR, WHERE THERE ISNO BASEMENT, WHICH ARE BELOWTHE SURFACE OF THE GROUND IN-SIDE THE FOUNDATION WALLS, ANDUNDERGROUND FLUES, PIPES,WIRING AND DRAINS.

(4) WE WILL PAY NO MORE THAN THEACTUAL CASH VALUE OF THE DAM-AGE UNTIL ACTUAL REPAIR OR RE-PLACEMENT IS COMPLETE. ONCEACTUAL REPAIR IS COMPLETE, wewill settle the loss according to the provi-sions of c.(1) and c.(2) above. However,

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IF THE COST TO REPAIR OR RE-PLACE IS LESS THAN $1,000 we willsettle the loss ACCORDING TO THEPROVISIONS OF c. (1) and c. (2)above, whether or not actual repair orreplacement is complete.

(5) YOU MAY DISREGARD THE RE-PLACEMENT COST LOSS SETTLE-MENT PROVISIONS AND MAKE CLAIMUNDER THIS POLICY FOR LOSS ORDAMAGE TO BUILDINGS ON AN AC-TUAL CASH VALUE BASIS AND THENMAKE CLAIM WITHIN 180 DAYS AF-TER LOSS FOR ANY ADDITIONAL LI-ABILITY ON A REPLACEMENT COSTBASIS.

4. Loss to a Pair or Set. In case of loss to a pair orset we may elect to:

a. REPAIR OR REPLACE ANY PART TO RE-STORE THE PAIR OR SET TO ITS VALUEBEFORE THE LOSS; OR

b. PAY THE DIFFERENCE BETWEEN AC-TUAL CASH VALUE OF THE PROPERTYBEFORE AND AFTER THE LOSS.

5. Glass Replacement. Loss for damage to glasscaused by a Peril Insured Against shall be settledon the basis of replacement with safety glazingmaterials when required by ordinance or law.

6. Appraisal. If you and we fail to agree on theamount of loss, either one can demand that theamount of loss be set by appraisal. If eithermakes a written demand for appraisal, each shallselect a competent, independent appraiser andnotify the other of the appraiser's identity within20 days of receipt of the written demand. The twoappraisers shall then select a competent, impar-tial umpire. If the two appraisers are unable toagree upon an umpire within 15 days, you or wecan ask a judge of a court of record in the statewhere the residence premises is located to se-lect an umpire. The appraisers shall then set theamount of loss. If the appraisers submit a writtenreport of an agreement to us, the amount agreedupon shall be the amount of the loss. If the ap-praisers fail to agree within a reasonable time,they shall submit their differences to the umpire.Written agreement signed by any two of thesethree shall set the amount of the loss. Each ap-praiser shall be paid by the party selecting thatappraiser. Other expenses of the appraisal andthe compensation of the umpire shall be paidequally by you and us.

7. Other Insurance. If a loss covered by this policyis also covered by other insurance, WE WILLPAY ONLY THE PROPORTION OF THE LOSSTHAT THE LIMIT OF LIABILITY THAT APPLIES

UNDER THIS POLICY BEARS TO THE TOTALAMOUNT OF INSURANCE COVERING THELOSS.

8. Suit Against Us. No action shall be brought UN-LESS THERE HAS BEEN COMPLIANCE WITHTHE POLICY PROVISIONS AND THE ACTIONIS STARTED WITHIN ONE YEAR AFTER THEOCCURRENCE CAUSING LOSS OR DAMAGE.

9. Our Option. If we give you written notice within30 days after we receive your signed, swornstatement of loss, we may repair or replace anypart of the property damaged with equivalentproperty.

10. Loss Payment. We will adjust all losses with you.We will pay you UNLESS SOME OTHER PER-SON NAMED IN THE POLICY IS LEGALLY EN-TITLED TO RECEIVE PAYMENT. Loss will bepayable 60 days after we receive your proof ofloss and;

a. Reach agreement with you; or

b. There is an entry of a final judgment; or

c. There is a filing of an appraisal award with us.

11. Abandonment of Property. We need not acceptany property abandoned by any insured.

12. Mortgage Clause. The word "mortgagee" in-cludes trustee. If a mortgagee is named in thispolicy, any loss payable under Coverage A or Bshall be paid to the mortgagee and you, as inter-ests appear. If more than one mortgagee isnamed, the order of payment shall be the sameas the order or precedence of the mortgages. Ifwe deny your claim, that denial shall not apply toa valid claim of the mortgagee, if the mortgagee:

a. notifies us of any change in ownership, occu-pancy or substantial change in risk of whichthe mortgagee is aware;

b. pays any premium due under this policy ondemand if you have neglected to pay thepremium;

c. submits a signed, sworn statement of losswithin 60 days after receiving notice from usof your failure to do so. Policy conditions re-lating to Appraisal, Suit Against Us and LossPayment apply to the mortgagee.

If we decide to cancel or not to renew this policy,the mortgagee will be notified at least 10 daysbefore the date of cancellation or nonrenewaltakes place.

If we pay the mortgagee for any loss and denypayment to you:

a. we are subrogated to all the rights of themortgagee granted under the mortgage onthe property; or

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b. at our option, we may pay to the mortgageethe whole principal on the mortgage plus anyaccrued interest. In this event, we shall re-ceive a full assignment and transfer of themortgage and all securities held as collateralto the mortgage debt.

Subrogation shall not impair the right of the mort-gagee to recover the full amount of the mortga-gee's claim.

13. No Benefit to Bailee. We will not recognize anyassignment or grant any coverage for the benefitof any person or organization holding, storing ortransporting property for a fee regardless of anyother provision of this policy.

14. Nuclear Hazard Clause.

a. "Nuclear Hazard" means any nuclear reac-tion, radiation, or radioactive contamination,all whether controlled or uncontrolled or how-ever caused, or any consequence of any ofthese.

b. LOSS CAUSED BY THE NUCLEAR HAZ-ARD SHALL NOT BE CONSIDERED LOSSCAUSED BY FIRE, EXPLOSION, ORSMOKE, WHETHER THESE PERILS ARESPECIFICALLY NAMED IN OR OTHER-WISE, INCLUDED WITHIN THE PERILS IN-SURED AGAINST IN SECTION I.

c. THIS POLICY DOES NOT APPLY UNDERSECTION I TO LOSS CAUSED DIRECTLYOR INDIRECTLY BY NUCLEAR HAZARD,EXCEPT THAT DIRECT LOSS BY FIRE RE-

SULTING FROM THE NUCLEAR HAZARDIS COVERED.

15. Inflation Protection Coverage

a. During the term of this policy, we will increasethe limit of liability for Coverage A monthly atthe rate of 1/12 of the annual residentialbuilding cost percentage change factors asdetermined by our cost calculation methodwhich is based on a nationally recognizedconstruction cost index.

b. The limit of liability shown on the DeclarationsPage for Coverage A will be revised yearly ateach renewal to reflect any changes in build-ing costs during the policy period as deter-mined in paragraph 1 above. Any adjustmentin premium resulting from this change will bemade on the basis of rates in use by us at thetime the change is made. You have the rightto refuse this change prior to the renewal dateby contacting your agent or us.

16. Recovered Property. If you or we recover anyproperty for which we have made payment underthis policy, you or we will notify the other of therecovery. At your option, the property will be re-turned to or retained by you or it will become ourproperty. If the recovered property is returned toor retained by you, the loss payment will be ad-justed based on the amount you received for therecovered property.

SECTION II - LIABILITY COVERAGES

COVERAGE E - PERSONAL LIABILITY

If a claim is made or a suit is brought against any in-sured for damages because of bodily injury orproperty damage caused by an occurrence to whichthis coverage applies, even if the claim or suit isfalse, we will:

a. Pay up to our limit of liability for the damages forwhich the insured is legally liable. Damages in-clude prejudgment interest awarded against theinsured; and

b. provide a defense at our expense by counsel ofour choice, even if the suit is groundless, false orfraudulent. We may investigate and settle anyclaim or suit that we decide is appropriate. Ourduty to settle or defend ends when the amount wepay for damages resulting from the occurrenceequals our limit of liability.

COVERAGE F-MEDICAL PAYMENTS TO OTHERS

We will pay the necessary medical expenses that areincurred or medically ascertained within three yearsfrom the date of an accident causing bodily injury.Medical expenses means reasonable charges formedical, surgical, X-ray, dental, ambulance, hospital,professional nursing, prosthetic devices and funeralservices. This coverage does not apply to you orregular residents of your household except residenceemployees. As to others, this coverage applies only:

a. to a person on the insured location with thepermission of any insured; or

b. to a person off the insured location, if the bod-ily injury:

(1) arises out of a condition on the insured loca-tion or the ways immediately adjoining;

(2) is caused by the activities of any insured;

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(3) is caused by a residence employee in thecourse of the residence employee's em-ployment by any insured; or

(4) is caused by an animal owned by or in thecare of any insured.

SECTION II - EXCLUSIONS

1. Coverage E - Personal Liability and CoverageF - Medical Payments to Others do not apply tobodily injury or property damage:

a. which is expected or intended by any in-sured;

b. Arising out of or in connection with a busi-ness engaged in by any insured. This exclu-sion applies but is not limited to an act oromission, regardless of its nature or circum-stances involving a service or duty rendered,promised, owed or implied to be provided be-cause of the nature of the business;

NOTE: The furnishing of home day care services for

(1) a fee, or

(2) other compensation

by the insured and the rendering of such servicestwo or more days per week for a period of two ormore hours per day constitutes one type of manydifferent business pursuits.

c. Arising out of the rental or holding for rentalof any premises by any insured. This exclu-sion does not apply to the rental or holding forrental of an insured location:

(1) on an occasional basis if used only as aresidence.

(2) in part for use only as a residence, un-less a single family unit is intended foruse by the occupying family to lodgemore than two roomers or boarders; or

(3) in part, as an office, school, studio orprivate garage;

d. arising out of the rendering or failing to renderprofessional services;

e. arising out of a premise:

(1) owned by any insured;

(2) rented to any insured; or

(3) rented to others by any insured;

that is not an insured location;

f. arising out of:

(1) the ownership, maintenance, use, load-ing or unloading of motor vehicles or allother motorized land conveyances, in-cluding trailers, owned or operated by orrented or loaned to any insured;

(2) the entrustment by any insured of amotor vehicle or any other motorizedland conveyance to any person; or

(3) vicarious liability, whether or not statuto-rily imposed, for the actions of a child orminor using a conveyance excluded inparagraph (1) or (2) above.

This exclusion does not apply to:

(1) a trailer not towed by or carried on amotorized land conveyance.

(2) a motorized land conveyance designedfor recreational use off public roads, notsubject to motor vehicle registration and:

(a) not owned by any insured; or

(b) owned by any insured and on aninsured location.

(3) a motorized golf cart when used to playgolf on a golf course.

(4) a vehicle or conveyance not subject tomotor vehicle registration which is:

(a) used to service any insured's resi-dence;

(b) designed for assisting the handi-capped; or

(c) in dead storage on an insured lo-cation.

g. arising out of:

(1) the ownership, maintenance, use, load-ing or unloading of watercraft describedbelow;

(2) the entrustment by any insured of awatercraft described below to any per-son; or

(3) vicarious liability, whether or not statuto-rily imposed, for the actions of a child orminor using an excluded watercraft de-scribed below.

Excluded watercraft are those that areprincipally designed to be propelled byengine power, jet power or electric mo-tor, or are sailing vessels, whetherowned by or rented to any insured. Thisexclusion does not apply to watercraft:

(1) that are not sailing vessels and arepowered by:

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(a) inboard or inboard-out driveengine or motor power of 50horsepower or less not ownedby any insured;

(b) inboard or inboard-outdrive en-gine or motor power of morethan 50 horsepower not ownedby or rented to any insured;

(c) one or more outboard enginesor motors with 25 total horse-power or less;

(d) one or more outboard enginesor motors with more than 25total horsepower if the out-board engine or motor is notowned by any insured;

(e) outboard engines or motors ofmore than 25 total horsepowerowned by any insured if:

(i) you acquire them prior tothe policy period; and

(a) you declare them atpolicy inception;

(b) your intention to in-sure is reported to usin writing within 45days after you ac-quire the outboardmotors.

(ii) you acquire them duringthe policy period.

This coverage applies for the policyperiod.

(2) that are sailing vessels, with orwithout auxiliary power:

(a) less than 26 feet in overalllength;

(b) 26 feet or more in overalllength not owned by or rentedto any insured.

(3) that are stored;

h. rising out of:

(1) the ownership, maintenance, use, load-ing or unloading of any aircraft;

(2) the entrustment by any insured of anaircraft to any person; or

(3) vicarious liability, whether or not statuto-rily imposed, for the actions of a child orminor using an aircraft.

Exclusions e, f, g and h do not apply to bod-ily injury to any residence employee arising

out of and in the course of the residenceemployee's employment by any insured.

i. caused directly or indirectly by war, includingthe following and any consequence of any ofthe following:

(1) undeclared war, civil war, insurrection,rebellion or revolution;

(2) warlike act by military force or militarypersonnel; or

(3) destructive seizure or use for a militarypurpose. Discharge of a nuclear weaponwill be deemed a war-like act even if ac-cidental;

j. which arises out of the transmission of acommunicable disease by any insured.

k. Arising out of sexual molestation, corporalpunishment or physical or mental abuse; or

l. arising out of the use, sale, manufacture, de-livery, transfer or possession by any person ofany Controlled Substance(s) as defined bythe Federal Food and Drug Law at 21U.S.C.A. Sections 811 and 812. ControlledSubstances include but not limited to cocaine,LSD, marijuana and all narcotic drugs. How-ever, this exclusion does not apply to the le-gitimate use of prescription drugs by a personfollowing the orders of a licensed physician.

2. Coverage E - Personal Liability, does not applyto:

a. Liability:

(1) for any loss assessment charged againstyou as a member of an association, cor-poration or community of property own-ers;

(2) under any contract or agreement. How-ever, this exclusion does not apply towritten contracts:

(a) that directly relate to the ownership,maintenance or use of an insuredlocation; or

(b) where the liability of others is as-sumed by the insured prior to anoccurrence;

unless excluded in (1) above or else-where in this policy;

b. property damage to property owned by anyinsured;

c. property damage to property rented to, oc-cupied or used by or in the care of any in-sured. This exclusion does not apply to

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property damage caused by fire, smoke orexplosion;

d. bodily injury to any person eligible to re-ceive any benefits:

(1) voluntarily provided; or

(2) required to be provided;

by the insured under any:

(1) workers' compensation law;

(2) non-occupational disability law; or

(3) occupational disease law;

e. bodily injury or property damage for whichan insured under this policy:

(1) is also an insured under a nuclear energyliability policy; or

(2) would be an insured under that policy butfor the exhaustion of its limit of liability.

A nuclear energy liability policy is a one is-sued by:

(1) American Nuclear Insurers;

(2) Mutual Atomic Energy Liability Under-writers;

(3) Nuclear Insurance Association of Can-ada;

or any of their successors; or

f. bodily injury to any person who is related byblood, marriage, or adoption to a coveredperson and who is a resident of the householdof that person; or bodily injury to you.

3. Coverage F - Medical Payments to Others,does not apply to bodily injury:

a. to a residence employee if the bodily in-jury:

(1) occurs off the insured location; and

(2) does not arise out of or in the course ofthe residence employee's employmentby an insured;

b. to any person eligible to receive benefits:

(1) voluntarily provided; or

(2) required to be provided;

under any:

(1) workers' compensation law;

(2) non-occupational disability law; or

(3) occupational disease law;

c. from any:

(1) nuclear reaction;

(2) nuclear radiation; or

(3) radioactive contamination;

all whether controlled or uncontrolled or how-ever caused; or

(4) any consequence of any of these.

d. to any person, other than a residence em-ployee of an insured, regularly residing onany part of the insured location.

SECTION II - ADDITIONAL COVERAGES

We cover the following in addition to the limits of li-ability:

1. Claim Expenses. We pay:

a. expenses incurred by us and costs taxedagainst any insured in any suit we defend;

b. premiums on bonds required in a suit de-fended by us, but not for bond amountsgreater than the limit of liability for CoverageE. We are not obligated to apply for or furnishany bond;

c. reasonable expenses incurred by any in-sured at our request, including actual loss ofearnings (but not loss of other income) up to$50 per day for assisting us in the investiga-tion or defense of any claim or suit;

d. interest on the entire judgment which accruesafter entry of the judgment and before we payor tender, or deposit in court that part of the

judgment which does not exceed the limit ofliability that applies.

2. First Aid Expenses. We will pay expenses forfirst aid to others incurred by any insured forbodily injury covered under this policy. We willnot pay for first aid to you or any other insured.

3. Damage to Property of Others. We will pay atreplacement cost, up to $500 per occurrence forproperty damage to property of others caused byany insured. We will not pay for propertydamage:

a. to the extent of any amount recoverable un-der Section I of this policy;

b. caused intentionally by any insured who is 13years of age or older;

c. to property owned by any insured;

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d. to property owned by or rented to a tenant ofany insured, or a resident in your household;or

e. arising out of:

(1) a business engaged in by any insured;

(2) any act or omission in connection with apremises owned, rented or controlled byany insured, other than the insured lo-cation; or

(3) the ownership, maintenance, or use ofaircraft, watercraft, motor vehicles or allother motorized land conveyances.

This exclusion does not apply to a motorized landconveyance designed for recreational use offpublic roads, not subject to motor vehicle regis-tration and not owned by an insured.

4. Loss Assessment. We will pay up to $1,000 foryour share of any loss assessment charged duringthe policy period against you by a corporation orassociation of property owners, when the as-sessment is made as a result of:

a. bodily injury or property damage not ex-cluded under Section II of this policy; or

b. liability for each act of a director, officer ortrustee in the capacity as a director, officer ortrustee, provided:

(1) the director, officer or trustee is electedby the members of the corporation or as-sociation of property owners; and

(2) the director, officer or trustee serveswithout deriving any income from theexercise of duties which are solely onbehalf of a corporation or association ofproperty owners.

This coverage applies only to loss assessmentscharged against you as owner or tenant of theresidence premises.

We do not cover loss assessments chargedagainst you or a corporation or association ofproperty owners by any governmental body.

Regardless of the number of assessments, thelimit of $1,000 is the most we will pay for lossarising out of:

a. one accident, including continuous or re-peated exposure to substantially the samegeneral harmful condition; or

b. A covered act of a director, officer or trustee.An act involving more than one director, offi-cer or trustee is considered to be a single act.

The following do not apply to this coverage:

1. Section II - Coverage E Personal Liability Ex-clusion 2.a.(1);

2. Under Section I & II - Conditions, Condition 1.Policy Period.

SECTION II - CONDITIONS

1. Limit of Liability. Our total liability under Cover-age E for all damages resulting from any one oc-currence will not be more than the limit of liabilityfor Coverage E as shown in the Declarations.This limit is the same regardless of the number ofinsureds, claims made, or persons injured. Allbodily injury and property damage resultingfrom any one accident or from continuous or re-peated exposure to substantially the same gen-eral harmful conditions shall be considered to bethe result of one occurrence.

Our total liability under Coverage F for all medicalexpense payable for bodily injury to one personas the result of one accident will not be more thanthe limit of liability for Coverage F as shown inthe Declarations.

2. Severability of Insurance. This insurance ap-plies separately to each insured. This conditionshall not increase our limit of liability for any oneoccurrence.

3. Duties After Loss. In case of an accident or oc-currence, the insured shall perform the followingduties that apply. You will help us by seeing thatthese duties are performed:

a. give written notice to us or our agent as soonas is practical, which sets forth:

(1) the identity of the policy and insured;

(2) reasonably available information on thetime, place and circumstances of the ac-cident or occurrence; and

(3) names and addresses of any claimantsand witnesses;

b. Promptly forward to us every notice, demand,summons or other process relating to the ac-cident or occurrence;

c. at our request, help us

(1) to make settlement;

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(2) to enforce any right of contribution or in-demnity against any person or organiza-tion who may be liable to any insured;

(3) with the conduct of suits and attendhearings and trials;

(4) to secure and give evidence and to ob-tain the attendance of witnesses;

d. At our option, either:

(1) Submit to us, within 60 days after we re-quest, your signed, sworn statement ofloss; or

(2) Submit to an oral examination underoath setting forth to the best of yourknowledge and belief:

(a) the time and cause of loss;

(b) a description of the accident or oc-currence, and;

(c) any other information we may rea-sonably require.

e. under this coverage - Damage to the Propertyof Others - submit to us within 60 days afterthe loss, a sworn statement of loss and showthe damaged property, if within the insured'scontrol;

f. the insured will not, except at the insured'sown cost, voluntarily make any payment, as-sume any obligation or incur any expenseother than for first aid to others at the time ofbodily injury.

4. Duties of an Injured Person - Coverage F -Medical Payments to Others. The injured per-son or someone acting for the injured person will:

a. give us written proof of claim, under oath ifrequired, as soon as practical;

b. authorize us to obtain copies of medical re-ports and records.

The injured person will submit to physical exami-nation by a doctor of our choice when and as of-ten as we reasonably require.

5. Payment of Claim - Coverage F - MedicalPayments to Others. Payment under this cover-age is not an admission of liability by any insuredor us.

6. Suit Against Us. No action shall be broughtagainst us unless there has been compliance withthe policy provisions.

No one shall have any right to join us as a partyto any action against any insured. Also, no actionwith respect to Coverage E can be broughtagainst us until the obligation of the insured hasbeen determined by final judgment or agreementsigned by us.

7. Bankruptcy of any Insured. Bankruptcy or in-solvency of any insured shall not relieve us ofany of our obligations under this policy.

8. Other Insurance - Coverage E - Personal Li-ability. This insurance is excess over any othervalid and collectible insurance except insurancewritten specifically to cover as excess over thelimits of liability that apply in this policy.

SECTION I AND SECTION II - CONDITIONS

1. POLICY PERIOD. THIS POLICY APPLIES ONLYTO LOSS UNDER SECTION I OR BODILY IN-JURY OR PROPERTY DAMAGE UNDER SEC-TION II, WHICH OCCURS DURING THEPOLICY PERIOD.

YOU MAY CONTINUE THIS POLICY, SUBJECTTO OUR CONSENT, FOR SUCCESSIVE PERI-ODS BY PAYING REQUIRED PREMIUMSWHEN DUE.

2. CONCEALMENT OR FRAUD. THE ENTIREPOLICY WILL BE VOID IF, WHETHER BEFOREOR AFTER A LOSS, ANY INSURED HAS:

a. INTENTIONALLY CONCEALED OR MIS-REPRESENTED ANY MATERIAL FACT ORCIRCUMSTANCE;

b. ENGAGED IN FRAUDULENT CONDUCT;OR

c. MADE FALSE STATEMENTS; RELATINGTO THIS INSURANCE.

3. Liberalization Clause. If we make a changewhich broadens coverage under this edition of ourpolicy WITHOUT ADDITIONAL PREMIUMCHARGE, that change will automatically apply toyour insurance as of the date we implement thechange in your state PROVIDED THAT THISDATE FALLS WITHIN 60 DAYS PRIOR TO ORDURING THE POLICY PERIOD STATED IN THEDECLARATIONS. THIS LIBERALIZATIONCLAUSE DOES NOT APPLY TO CHANGES IM-PLEMENTED THROUGH INTRODUCTION OF ASUBSEQUENT EDITION OF OUR POLICY.

4. Cancellation.

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a. You may cancel this policy at any time by re-turning it to us or by notifying us in writing ofthe date cancellation is to take effect.

b. WE MAY CANCEL THIS POLICY FOR THEREASONS STATED IN THIS CONDITIONBY NOTIFYING YOU IN WRITING OF THEDATE CANCELLATION TAKES EFFECT.THIS CANCELLATION NOTICE MAY BEDELIVERED TO YOU, OR MAILED TO YOUAT YOUR MAILING ADDRESS SHOWN INTHE DECLARATIONS. PROOF OF MAILINGSHALL BE SUFFICIENT PROOF OF NO-TICE.

(1) WHEN YOU HAVE NOT PAID THEPREMIUM, WHETHER PAYABLE TOUS OR TO OUR AGENT OR UNDERANY FINANCE OR CREDIT PLAN, WEMAY CANCEL AT ANY TIME BY NOTI-FYING YOU AT LEAST 10 DAYS BE-FORE THE DATE CANCELLATIONTAKES EFFECT.

(2) WHEN THIS POLICY HAS BEEN INEFFECT FOR LESS THAN 60 DAYSAND IS NOT A RENEWAL WITH US,WE MAY CANCEL FOR ANY REASONBY NOTIFYING YOU AT LEAST 10DAYS BEFORE THE DATE CANCEL-LATION TAKES EFFECT.

(3) WHEN THIS POLICY HAS BEEN INEFFECT FOR 60 DAYS OR MORE, ORAT ANY TIME IF IT IS A RENEWALWITH US, WE MAY CANCEL IF THEREHAS BEEN A MATERIAL MISREPRE-SENTATION OF FACT WHICH IFKNOWN TO US WOULD HAVECAUSED US NOT TO ISSUE THEPOLICY OR IF THE RISK HASCHANGED SUBSTANTIALLY SINCETHE POLICY WAS ISSUED. THIS CANBE DONE BY NOTIFYING YOU ATLEAST 30 DAYS BEFORE THE DATECANCELLATION TAKES EFFECT.

(4) WHEN THIS POLICY IS WRITTEN FORA PERIOD LONGER THAN ONE YEAR,WE MAY CANCEL FOR ANY REASONAT ANNIVERSARY BY NOTIFYINGYOU AT LEAST 30 DAYS BEFORETHE DATE CANCELLATION TAKESEFFECT.

c. WHEN THIS POLICY IS CANCELLED, THEPREMIUM FOR THE PERIOD FROM THEDATE OF CANCELLATION TO THE EXPI-RATION DATE WILL BE REFUNDED.WHEN YOU REQUEST CANCELLATION INTHE FIRST POLICY YEAR, THE RETURNPREMIUM WILL BE BASED ON OUR

SHORT-RATE TABLE. OTHERWISE, THERETURN PREMIUM WILL BE PRO RATA.

d. IF THE RETURN PREMIUM IS NOT RE-FUNDED WITH THE NOTICE OF CANCEL-LATION OR WHEN THIS POLICY ISRETURNED TO US, WE WILL REFUND ITWITHIN A REASONABLE TIME AFTER THEDATE CANCELLATION TAKES EFFECT.

5. NON-RENEWAL. WE MAY ELECT NOT TORENEW THIS POLICY. WE MAY DO SO BYDELIVERING TO YOU, OR MAILING TO YOUAT YOUR MAILING ADDRESS SHOWN IN THEDECLARATIONS WRITTEN NOTICE AT LEAST30 DAYS BEFORE THE EXPIRATION DATE OFTHIS POLICY. PROOF OF MAILING SHALL BESUFFICIENT PROOF OF NOTICE.

6. Assignment. ASSIGNMENT OF THIS POLICYSHALL NOT BE VALID UNLESS WE GIVE OURWRITTEN CONSENT.

7. Subrogation. Any insured may waive in writingbefore a loss all rights of recovery against anyperson. IF NOT WAIVED, WE MAY REQUIREAN ASSIGNMENT OF RIGHTS OF RECOVERYFOR A LOSS TO THE EXTENT THAT PAY-MENT IS MADE BY US.

IF AN ASSIGNMENT IS SOUGHT, ANY IN-SURED SHALL SIGN AND DELIVER RELATEDPAPERS AND COOPERATE WITH US IN ANYREASONABLE MANNER.

Subrogation does not apply under Section II toMedical Payments to Others or Damage to Prop-erty of Others.

8. Death. If any person named in the Declarations orthe spouse, if a resident of the same householddies;

a. we insure the legal representative of the de-ceased BUT ONLY WITH RESPECT TO THEPREMISES AND PROPERTY OF THE DE-CEASED COVERED UNDER THE POLICYAT THE TIME OF DEATH;

b. INSURED INCLUDES:

(1) ANY MEMBER OF YOUR HOUSEHOLDWHO IS AN INSURED AT THE TIMEOF YOUR DEATH, BUT ONLY WHILEA RESIDENT OF THE RESIDENCEPREMISES; AND

(2) WITH RESPECT TO YOUR PROP-ERTY, THE PERSON HAVINGPROPER TEMPORARY CUSTODY OFTHE PROPERTY UNTIL APPOINT-MENT AND QUALIFICATION OF A LE-GAL REPRESENTATIVE.

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9. PREMIUM. THE PREMIUM STATED IN THEDECLARATIONS IS THE INITIAL PREMIUMFOR THIS POLICY. ON EACH RENEWAL,CONTINUATION OR ANNIVERSARY OF THE

EFFECTIVE DATE OF THIS POLICY, THEPREMIUM SHALL BE COMPUTED BY US INACCORDANCE WITH RULES AND RATES INEFFECT.

.

This policy is signed for the company which is the insurer under this policy.

abcdWendy C. Skjerven Gregory C. Toczydlowski

PresidentCorporate SecretaryPersonal Insurance

IN WITNESS WHEREOF, the Company has executed and attested these presents.

PL-9107 8-97