DEFINITIONS

The following definition is being added:

9. "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents, or by-products produced or released by fungi.

10. "Motorized Vehicle" means a self-propelled land or amphibious vehicle regardless of method of surface contact. This includes parts and equipment. This does not include vehicles that are designed and used to assist the handicapped or are not required to be licensed for road use.

11. "Motorized Vehicle Registration" means any licensing, fees, registration or other process that must be completed with any governmental entity that is required by any ordinance, statute or regulation. Motorized Vehicle Registration is not limited to registration of motorized vehicles for use on the public highways, and includes any and all fees, licensing and/or registration of motorized vehicles pursuant to applicable law.

SECTION I - PROPERTY COVERAGES

COVERAGE C - Personal Property

Property Not Covered
Under item 3., paragraph 3 is deleted and replaced by the following:
We do cover vehicles or conveyances not subject to motor vehicle registration which are:

     a. Used solely to service an insured's residence; or
     b. Designed for assisting the handicapped;

COVERAGE D - LOSS OF USE

The first paragraph is deleted and replaced by the following:

The limit of liability for Coverage D is the actual loss sustained within 12 months from the date of the loss for 1. and 2. below:

Item 3. is deleted and the following paragraph is added:

If a civil authority prohibits you from the use of the residence premises as a result of direct damage to neighboring premises by a Peril Insured Against in this policy, we cover the Additional Living Expense and Fair Rental Value loss as provided under 1. and 2. above for no more than two weeks.

The paragraph "The periods of time under 1., 2. and 3. above are not limited by expiration of this policy." is deleted and replaced by the following:

The periods of time for all the above are not limited by expiration of this policy.

ADDITIONAL COVERAGES

4. Fire Department Service Charge. The first sentence is deleted and replaced by the following:

We will pay up to $2,500 for your liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from a Peril Insured Against.

SECTION I - PERILS INSURED AGAINST
For Premier and Premier Plus policies, under Coverage A - Dwelling and Coverage B - Other Structures, item 2.e.(3) is deleted and replaced by the following:

(3) Smog, rust or other corrosion, fungi, mold, wet or dry rot;

SECTION I - EXCLUSIONS
The lead-in paragraph to the Section I - Exclusions is deleted and replaced by the following:

We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area.
(This is paragraph 1. for Premier and Premier Plus policies.)

Item 9. is added as follows:

9. We do not insure for loss, caused by hail, that alters the physical appearance of the metal roof covering but does not result in the penetration of water through the metal roof covering or does not result in the failure of the metal roof covering to perform its intended function of keeping out the elements over an extended period of time.

Metal roof covering means the metal roofing material exposed to the weather, the underlayments applied for moisture protection and all flashings required in the replacement of a metal roof covering.

We do insure for loss, by a covered peril, to metal roof coverings that will allow the penetration of water through the metal roof covering or that results in the failure of the metal roof covering to perform its intended function of keeping out the elements over an extended period of time.

(This is Exclusion 3. for Premier and Premier Plus policies.)

SECTION I - CONDITIONS
Item 6. Appraisal is deleted and replaced by the following:

6. Appraisal. If you and we fail to agree on the amount of loss, and any insured claiming coverage has complied with all other conditions of the policy, an appraisal of the loss may take place. However, an appraisal will take place only if both you and we agree, voluntarily, to have the loss appraised. If both parties agree in writing to appraisal, each party will choose a competent and disinterested appraiser within 20 days after receiving a written request from the other. the two appraisersw will choose a disinterested and impartial umpire. If they cannot agree upon an umpire within 15 days, you or we, upon written notice to the other, may request that the choice be made by a judge of a court of record in the state where the residence premises is located. The appraisers shall separately set the amount of the loss as defined in the policy. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. An appraisal decision will not be binding on either party.

Each party will:

a. Pay its own appraiser; and
b. Bear the other expenses of the appraisal and umpire equally.

Item 8. Suit Against Us is deleted and replaced by the following:

8. Suit Against Us. No action can be brought unless the policy provisions have been complied with and the action is started within five years after the date of loss.

Item 12. MORTGAGE CLAUSE is amended as follows:

Item b. is deleted and replaced by the following:

b. Pays any premium due under this policy when notified if you have neglected to pay the premium; and

The sentence "if we decide to cancel or not to renew this policy, the mortgagee will be notified at least 10 days before the date cancellation or nonrenewal takes effect." is deleted and replaced by the following:

If we decide to cancel this policy, the mortgagee will be notified:

a. At least 10 days before the date cancellation takes effect if:

(1) We cancel for nonpayment of premium, or
(2) The policy has been in effect for less than 60 days and is not a renewal with us; or

b. At least 30 days before the date cancellation takes effect in all other cases.

If we decide not to renew this policy, the mortgagee will be notified at least 30 days before the date nonrenewal takes effect.

SECTION II - EXCLUSIONS

Under 1. Coverage E - Personal Liability and Coverage F - Medical Payments to Others, Exclusions a. and f. are deleted and replaced by the following and Exclusions m. and n. are added:

a. Which is expected or intended by one or more Insureds even if the bodily injury or property damage:

(1) Is of a different kind, quality or degree than expected or intended; or
(2) Is sustained by a different person or entity than expected or intended.

However, this Exclusion 1.a does not apply to bodily injury resulting from the use of reasonable force by one or more Insureds to protect persons or property.

f. Arising out of:
(1) The ownership, maintenance, use, loading or unloading of any motorized vehicles or all other motorized land conveyances, including trailers, owned or operated by or rented or loaned to an insured;
(2) The entrustment by an insured of any motorized vehicles or any other motorized land conveyance to any person; or
(3) Vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using a vehicle or conveyance excluded in paragraph (1) or (2) above.

This exclusion does not apply to:
(1) A trailer not towed by or carried on a motorized land conveyance.
(2) A motorized land conveyance designed for recreational use off public roads that is not subject to any motorized vehicle registration and;
(a) Not owned by an insured; or
(b) Owned by an insured and on an insured location;
(3) A motorized golf cart when used to play golf on a golf course;
(4) A vehicle or conveyance that is not subject to any motorized vehicle registration which is:
(a) Used to service an insured's residence;
(b) Designed for assisting the handicapped; or
(c) In dead storage on an insured location;

m. Arising out of the liability assumed by the insured under any contract or agreement except any indemnity obligation asumed by the insured under a written contract directly relating to the ownership, maintenance or use of the premises.

n. Arising out of the liability for claims made against any insured arising out of the sale or transfer of the insured premises or other real estate including but not limited to any claims made against any insured for fraud, misrepresentation, failure to disclose or any other claim made against any insured arising out of the sale or transfer of real estate.

Under 2. Coverage E - Personal Liability, Exclusion a. (3) is added:

(3) For the liability imposed for punitive damage and/or exemplary damages. Punitive Damages are amounts of money awarded or imposed to punish or to make an example of a wrongdoer.

SECTION I AND II - CONDITIONS

5. Cancellation. Paragraphs b.(3) is deleted and replaced by the following:

(3) When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel:

(a) Upon disocvery of fraud or material misrepresentation made by or with knowledge of the named insured in obtaining or continuing the policy, or in presenting a claim under this policy;

(b) Upon the occurrence of a material change in the risk which substantially increases any hazard insured against after insurance coverage has been issued;

(c) If there is a violation of any local fire, health, safety, building or construction regulation or ordinance with respect to any insured property which substantially increases any hazard insured against;

(d) For nonpayment of membership dues required by us as a condition of the issuance and maintenance of the policy; or

(e) In the event of a material violation of a material provision of this policy.

This can be done by letting you know at least 20 days before the date cancellation takes effect.

Paragraph b. (4)is deleted in its entirety.

8. Subrogation. The first paragraph is deleted and replaced by the following:

8. Subrogation. An Insured may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assignment of rights of recovery for a loss to the extent that payment is made by us. However, we will be entitled to a recovery only after an Insured has been fully compensated for the loss sustained.

All other provisions of this policy apply.

 

 

AUTO CLUB FAMILY INSURANCE COMPANY