PREMIER
HOMEOWNERS
POLICY

	Beginning On Page
AGREEMENT	1
DEFINITIONS	1
SECTION I - PROPERTY COVERAGES	3
COVERAGE A - Dwelling	3
COVERAGE B - Other Structures	3
COVERAGE C - Personal Property	4
Specia Limits of Liability	4
Property Not Covered	6
COVERAGE D - Loss Of Use	7
ADDITIONAL COVERAGES	8
Debris Removal	8
Reasonable Repairs	9
Trees, Shrubs and Other Plants	9
Fire Department Service Charge	9
Property Removed	10
Credit Card, Fund Transfer Card, Forger and Counterfeit Money	10
Loss Assessment	11
Collapse	11
Glass or Safety Glazing Material	12
Landlord's Furnishings	13
Ordinance or Law	15
SECTION I - PERILS INSURED AGAINST	16
COVERAGE A - Dwelling and	16
COVERAGE B - Other Structures	16
COVERAGE C - Personal Property	17
SECTION I - EXCLUSIONS	20

 

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However, we do cover the cost of blank recording or storage media and of pre-recorded computer programs available on the retail market; or

9. Credit cards or fund transfer cards except as provided in Additional Coverages 6.

COVERAGE D - Loss of Use
The limit of liability for Coverage D is the total limit for all the coverages that follow.

1. If a loss covered under this Section makes that part of the residence premises where you reside not fit to live in, we cover, at your choice, either of the following. However, if the residence premises is not your principal place of residence, we will not provide the option under paragraph b. below.

 

     

provided the tree(s) damages a covered structure. The $500 limit is the most we will pay in any one loss regardless of the number of fallen trees.

2. Reasonable Repairs. In the event that covered property is damaged by an applicable Peril Insured Against, we will pay the reasonable cost incurred by you for necessary measures taken solely to protect against further damage. If the measures taken involve repair to other damaged property, we will pay for those measures only if that property is covered under this policy and the damage to that property is caused by an applicable Peril Insured Against.

This coverage:

3. Trees, Shrubs and Other Plants. We cover trees, shrubs, plants or lawns, on the residence premises, for loss caused by the following Perils Insured Against: Fire or lightning, Explosion, Riot or civil commotion, Aircraft, Vehicles not owned or operated by a resident of the residence premises, Vandalism or malicious mischief or Theft.

We will pay up to 5% of the limit of liability that applies to the dwelling, for all trees, shrubs, plants or lawns. No more than $500 of this limit will be available for any one tree, shrub or plant. We do not cover property grown for business purposes.

This coverage is additional insurance.

4. Fire Department Service Charge. We will pay up to $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. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response.

This coverage is additional insurance. No deductible applies to this coverage.

5. Property Removed. We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being removed.

6. Credit Card, Fund Transfer Card, Forgery and Counterfeit Money.

We will pay up to $500 for:

     a. By a resident of your household;
     b. By a person who has been entrusted with either type of card; or
     c. If an insured has not complied with all terms and conditions under which the cards issued.

All loss resulting from a series of acts committed by any one person or in which any one person is concerned or implicated is considered to be one loss.

We do not cover loss arising out of business use or

 

 

     j. Weight of ice, snow or sleet which causes damage to property contained in a building.
     k. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or      automatic fire protective sprinkler system or from within a household appliance.

     This peril does not include loss:

          (1) To the system or appliance from which the water or steam escaped;
          (2) Caused by or resulting from freezing except as provided in the peril of freezing below; or
          (3) On the residence premises caused by accidental discharge or overflow which occurs off the residence           premises.

     In this peril, a plumbing system does not include a sump, sump pump or related equipment.
     1. Sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system,      an air conditioning or automatic fire protective sprinkler system or an appliance for heating water.

     We do not cover loss caused by a resulting from freezing under this peril.
     m. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household      appliance.

     This peril does not include loss on the residence premises while the dwelling is unoccupied, unless you have      used reasonable care to:

          (1) Maintain heat in the building; or
          (2) Shut off the water supply and drain the system and appliances of water.

     n. Sudden and accidental damage from artificially generated electrical current. This peril does not include      loss to a tube, transistor or similar electronic component.
     o. Volcanic eruption other than loss caused by earthquake, land shock waves or tremors.

The $2500 limit is the most we will pay in any one loss regardless of the number of appliances, carpeting or other household furnishings involved in the loss.

     a. You may use up to 10% of the limit of liability that applies to COVERAGE A for the increased costs you incur      due to the enforcement of any ordinance or law which requires or regulates:

          (1) The construction, demolition, remodeling, renovation or repair of that part of a covered building or other           structure damaged by a Peril Insured Against;
          (2) The demolition and reconstruction of the undamaged part of a covered building or other structure, when           that building or other structure must be totally demolished because of damage by a Peril Insured Against to           another part of that covered building or other structure; or
          (3) The remodeling, removal or replacement of the portion of the undamaged part of a covered building or           other structure necessary to complete the remodeling, repair or replacement of that part of the covered building           or other structure damaged by a Peril Insured Against.

     b. You may use all or part of this ordinance or law coverage to pay for the increased costs you incur to remove      debris resulting from the construction, demolition, remodeling, renovation, repair or replacement of property as      stated in a. above.
     c. We do not cover:

          (1) The loss in value to any covered building or other structure due to requirements of any ordinance or law; or
          (2) The costs to comply with any ordinance or law which requires any insured or others to test for, monitor,           clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of,           pollutants on any covered building or other structure.

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

 

SECTION I - PERILS INSURED AGAINST

COVERAGE A - DWELLING and

COVERAGE B - OTHER STRUCTURES

We insure against risk of direct loss to property described in Coverages A and B only if that loss is a physical loss to property. We do not, however, insure for loss:

1. Involving collapse, other than as provided in Additional Coverage 8.;

2. Caused by:

     a. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household      appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This      exclusion applies only while the dwelling is vacant, unoccupied or being constructed unless you have used      reasonable care to:

     b. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a:
          (1) Fence, pavement, patio or swimming pool;
          (2) Foundation, retaining wall or bulkhead; or
          (3) Pier, wharf or dock;
     c. Theft in or to a dwelling under construction, or of materials and supplies for use in the construction, or of      materials and supplies for use in the construction until the dwelling is finished and occupied;
     d. Vandalism and malicious mischief if the dwelling has been vacant or unoccupied for more than 30 consecutive      days immediately before the loss. A dwelling being constructed is not considered vacant;
     e. Any of the following:
          (1) Wear and tear, marring, deterioration;
          (2) Inherent vice, latent defect, mechanical breakdown;
          (3) Smog, rust or other corrosion, mold, wet or dry rot;
          (4) Smoke from agricultural smudging or industrial operations;
          (5) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal,           seepage, migration, release or

 

this opening.

This peril includes loss to watercraft and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building.

3. Explosion.

4. Riot or civil commotion.

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

6. Vehicles.

7. Smoke, meaning sudden 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.

9. Theft, including attempted theft and loss of property from a known place when it is likely that the property has been stolen.

     a. Committed by an insured;
     b. In or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is      finished and occupied; or
     c. From that part of a residence premises rented by an insured to other than an insured.

This peril does not include loss caused by theft occurs off the residence premises of:
     a. Property while at any other residence owned by, rented to or occupied by an insured, except while an insured is      temporarily living there. Property of a student who is insured is covered while living away from home if the student      has been there at any time during the 45 days immediately before the loss;
     b. Watercraft, and their furnishings, equipment and outboard engines or motors; or

 

     

 

     

     ensues and then we will pay only for the ensuing loss. This exclusion does not apply to loss by theft.
     c. Water Damage, meaning:

          (1) Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether           or not driven by wind;
          (2) Water which backs up through sewers or drains or which overflows from a sump; or
          (3) Water below the surface of the ground, including water which exerts pressure on or seeps or leaks through           a building, sidewalk, driveway, foundation, swimming pool or other structure

     Direct loss by fire, explosion or theft resulting from water damage is covered.
     d. Power Failure, meaning the failure of power or other utility service if the failure takes place off the residence      premises. But, if the failure of power or other utility service results in a loss, from a Peril Insured against on the      residence premises, we will pay for the loss or damage caused by that Peril Insured Against.
     e. Neglect, meaning neglect of the insured to use all reasonable means to save and preserve property at and after      the time of a loss.
     f. War, including the following and any consequence of any of the following:

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

          (2) Warlike act by a military force or military personnel; or

          (3) Destruction, seizure or use for a military purpose.

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

     g. Nuclear Hazard, to the extent set forth in the Nuclear Hazard Clause of SECTION I - CONDITIONS.

     h. Intentional Loss, meaning any loss arising out of any act committed:

          (1) By or at the expressed or implied direction of any insured; and

          (2) With the intent to cause a loss.

2. We do not insure for loss to property described in

 

 

          required to equal 80% of the full replacement cost of the building immediately before the loss, do not include           the value of:
               (a) Excavations, foundations, piers or any supports which are below the undersurface of the lowest                basement floor;
               (b) Those supports in(a) above which are below the surface of the ground inside the foundation walls, if                there is no basement; and
               (c) Underground flues, pipes, wiring and drains.
          (4) We will pay no more than the actual cash value of the damage until actual repair or replacement is           complete. Once actual repair or replacement is complete, we will settle the loss according to the provisions of           b.(1) and b.(2) above.

          However, if the cost to repair or replace the damage is both:
               (a) Less than 5% of the amount of insurance in this policy on the building; and
               (b) Less than $2500;
          we will settle the loss according to the provisions of b.(1) and b.(2) above whether or not actual repair or           replacement is complete.
          (5) you may disregard the replacement cost loss settlement provisions and make claim under this policy for loss           or damage to buildings on an actual cash value basis. You may then make claim within 180 days after loss for           any additional liability according to the provisions of this Condition 3. Loss Settlement.

4. Loss to a Pair or Set. In case of loss to a pair or set we may elect 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 actual cash value of the property before and after the loss.

5. Glass Replacement. Loss for damage to glass caused by a Peril Insured Against will be settled on the basis of replacement with safety glazing materials when required by

         

 

 

 

         

 

     

         

          liability policy; or
          (2) would be an insured under that policy but for the exhaustion of its limit of liability.

     A nuclear energy liability policy is one issued by:
          (1) American Nuclear Insurers;
          (2) Mutual Atomic energy Liability Underwriters;
          (3) Nuclear Insurance Association of Canada;
     or any of their successors; or
     f. Bodily injury to you or an insured within the meaning of part a. or b. of insured as defined.

3. Coverage F-Medical Payments to Others, does not apply to bodily injury:
     a. To a residence employee if the bodily injury:
          (1) Occurs off the insured location; and
          (2) Does not arise out of or in the course of the residence employee's employment by 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 however caused; or
          (4) Any consequence of any of these; or
     d. To any person, other than a residence employee of an insured, regularly residing on any part of the insured      location.

SECTION II - ADDITIONAL COVERAGES

We cover the following in addition to the limits of liability:
1. Claim Expenses. We pay:
     a. Expenses we incur and costs taxed against an insured in any suit we defend;

 

     

     b. Premiums on bonds required in a suit we defend, but not for bond amounts more than the limit of liability for      Coverage E. We need not apply for or furnish any bond;
     c. Reasonable expenses incurred by an insured at our request, including actual loss of earnings (but not loss of      other income) up to $50 per day, for assisting us in the investigation or defense of a claim or suit; and
     d. Interest on the entire judgment which accrues after entry of the judgment and before we pay or tender, or      deposit in court that part of the judgment which does not exceed the limit of liability that applies.

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. We will pay, at replacement cost, up to $500 per occurrence for property damage to property of others caused by an insured.

We will not pay for property damage:
     a. To the extent of any amount recoverable under Section I of this policy;
     b. Caused intentionally by an insured who is 13 years of age or older;
     c. To property owned by an insured;
     d. To property owned by or rented to a tenant of an insured or a resident in your household; or
     e. Arising out of:
          (1) A business engaged in by an insured;
          (2) Any act or omission in connection with a premises owned, rented or controlled by an insured, other than           the insured location; or
          (3) The ownership, maintenance, or use of aircraft, watercraft or motor vehicles or all other motorized land           conveyances.

          This exclusion does not apply to a motorized land conveyance designed for recreational use off public roads,           not subject to motor vehicle registration and not owned by an insured.

 

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4. Loss Assessment. We will pay up to $1000 for your share of loss assessment charged during the policy period against you by a corporation or association of property owners, when the assessment is made as a result of:
     a. Bodily injury or property damage not excluded under Section II of this policy; or
     b. Liability for an act of a director, officer or trustee in the capacity as a director, officer or trustee, provided:
          (1) The director, officer or trustee is elected by the members of a corporation or association of property           owners; and
          (2) The director, officer or trustee serves without deriving any income from the exercise of duties which are           solely on behalf of a corporation or association of property owners.

This coverage applies only to loss assessments charged against you as owner or tenant of the residence premises.

We do not cover loss assessments charged against you or a corporation or association of property owners by any governmental body.

Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of:
     a. One accident, including continuous or repeated exposure to substantially the same general harmful condition; or
     b. A covered act of a director, officer or trustee. An act involving more than one director, officer or trustee is      considered to be a single act.

The following do not apply to this coverage:
1. Section II-Coverage E-Personal Liability Exclusion 2.a.(1);
2. Condition 1. Policy Period, under SECTIONS I AND II-CONDITIONS.

SECTION II - CONDITIONS

1. Limit of Liability. Our total liability under Coverage E for all Damages resulting from any one occurrence will not be more than the limit of liability for Coverage E as

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     own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the      time of the bodily injury.

4. Duties of an Injured Person-Coverage F-Medical Payments to Others. The injured person or someone acting for the injured person will:
     a. Give us written proof of claim, under oath if required, as soon as is practical; and
     b. Authorize us to obtain copies of medical reports and records.

The injured person will submit to a physical exam by a doctor of our choice when asn as often as we reasonably require.

5. Payment of Claim-Coverage F-Medical Payments to Others. Payment under this coverage is not an admission of liability by an insured or us.

6. Suit Against Us. No action can be brought against us unless there has been full compliance with the policy provisions.

No one will have the right to join us as a party to any action against an insured. Also, no action with respect to Coverage E can be brought against us until the obligation of the insured has been determined by final judgment or agreement signed by us.

7. Bankruptcy of an Insured. Bankruptcy or insolvency of an insured will not relieve us of our obligations under this policy.

8. Other Insurance-Coverage E-Personal Liability. This insurance is excess over other valid and collectible insurance except insurance written specifically to cover as excess over the limits of liability that apply in this policy.

SECTION I AND II - CONDITIONS

1. Policy Period. This policy applies only to loss in Section I or bodily injury or property damage in Section II, which occurs during the policy period.

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2. Concealment or Misrepresentation. This entire policy will be void and all coverages forfeited, and payment will not be made to any insured, if before or after a loss, any insured has knowingly concealed or misrepresented any material fact or circumstance relating to this insurance, the insurance application, the loss, the presentation of the claim or any other fact or circumstance material to the investigation and adjustment of the claim.

3. Liberalization Clause. If we make a change which broadens coverage under this edition of our policy without additional premium charge, that change will automatically apply to your insurance as of the date we implement the change in your state, provided that this implementation date falls within 60 days prior to or during the policy period stated in the Declarations.

This Liberalization Clause does not apply to changes implemented through introduction of a subsequent edition of our policy.

4. Waiver or Change of Policy Provisions. A waiver or change of a provision of this policy must be in writing by us to be valid. Our request for an appraisal or examination will not waive any of our rights.

5. Cancellation.
     a. You may cancel this policy at any time by returning it to us or by letting us know in writing of the date      cancellation is to take effect.
     b. We may cancel this policy only for the reasons stated below by letting you know 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 sufficient proof of notice.

          (1) When you have not paid the premium, we may cancel at any time by letting you know at least 10 days           before the date cancellation takes effect.
          (2) When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for           any reason by letting you know

 

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9. Death. If any person named in the Declarations or the spouse, if a resident of the same household, dies; we insure the legal representative of the deceased, but only with respect to the premises and property of the deceased covered under the policy at the time of death.

Insured includes:

a. Any member of your household who is an insured at the time of your death, but only while a resident of the residence premises; and
b. With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative.

In Witness Whereof, we have caused this policy to be executed and attested, and, if required by state law, this policy shall not be valid unless countersigned by our authorized representative.

 

 

______________________________________________________Secretary

 

______________________________________________________President

 

 

 

William Erdman	Secretary
Kenneth A. Johnson	President

 

 

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Please keep your Declarations Certificates and
Endorsements with your policy.

 

 

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

 

Copyright, Insurance Services Office, Inc. 1995

 

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Form No. 5103 (Ed. 1/96)