DEFINITIONS

The following definition is 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 1. is deleted and replaced by the following:

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 the Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living.

Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere.

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 - ADDITIONAL COVERAGES

11. Ordinance or Law. The following Paragraph is added to c.(2):

This exception applies whether or not the irritant or contaminant has any function with respect to your property or business.

(This is Additional Coverage 10. in our Premier Condominium Policy. This does not apply to our Premier Select Policy)

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;

If this endorsement is attached to our Premier or Premier Plus Policy or our Premier Condominium Policy with either CO 17 31 or CO 17 32 or both, then the following is added to Paragraph 2.e. (5) in our Premier and Premier Plus Policy, Paragraph 3.d.(5) on CO 17 31 and Paragraph 2.e.(5) on CO 17 32;

In this provision, any reference to pollutants applies whether or not the irritant or contaminant has any function with respect to your property or business.

SECTION I - EXCLUSIONS

1. Ordinance or Law. The following Paragraph is added:
This exclusion applies whether or not the property has been physically damaged, or whether or not the irritant or contaminant has any function with respect to your property or business.

Item 9. is added as follows:

9. We do not insure for loss, by a covered peril, 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

12. Mortgage Clause

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

SECTION II - EXCLUSIONS

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

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 assumed 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 damages, and/or attorney's fees, and/or exemplary damages and/or damages for aggravating circumstances as described in the Wrongful Death Statute. Punitive Damages are amounts of money awarded or imposed to punish or to make an example of a wrongdoer.

SECTION I AND II - CONDITIONS

2. Concealment or Misrepresentaton is deleted and replaced by the following:
2. Concealment, Fraud or Misrepresentation.
a. Under SECTION I - PROPERTY COVERAGES with respect to all insureds covered under this policy, we provide no coverage for loss under SECTION I - PROPERTY COVERAGES if, whether before or after a loss, one or more insureds, have:

(1) Intentionally concealed or misrepresented any material fact or circumstance;
(2) Engaged in fraudulent conduct; or
(3) Made false statements;
relating to this insurance.

b. Under SECTION II - LIABILITY COVERAGES, we do not provide coverage to one or more insureds who, whether before or after the loss, have:

(1) Intentionally concealed or misrepresented any material fact or circumstance;
(2) Engaged in fraudulent conduct; or
(3) Made false statements;
relating to this insurance.

5. Cancellation.
The following is added to Paragraphs b. (2) and (3):
However, if any one of the following conditions exist at any building that is covered in this policy, we may cancel this policy by letting you know at least 5 days before the date cancellation takes effect.

(a) The building has been vacant or unoccupied 60 or more consecutive days.
This does not apply to:

(i) Seasonal unoccupancy; or
(ii)Buildings in the course of construction, renovation or addition.

Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision.

(b) After damage by a covered peril, permanent repairs to the building:

(i) Have not started; and
(ii) Have not been contracted for;

within 30 days of payment of loss.

(c) The building has:

(i) An outstanding order to vacate;
(ii) An outstanding demolition order, or
(iii) Has been declared unsafe by governmental authority.

(d) Fixed and salvageable items have been or are being removed from the building and are not being replaced. This does not apply to removal that is necessary or incidental to any renovation or remodeling.

(e) Failure to:

(i) Furnish necessary heat, water, sewer service or electricity for 30 consecutive days or more, except during a period of seasonal unoccupancy; or
(ii) Pay property taxes that are owing and have been outstanding for more than one year following the date due, except that this provision will not apply where you are in a bona fide dispute with the taxing authority regarding payment of such taxes.

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

The following condition is added:

10. Notice to Agent. Your notice is our agent will be deemed to be notice to us.

All other provision of this policy apply.

AUTO CLUB FAMILY INSURANCE COMPANY