Home Insurance - A Guide to the New Policy

Transcription

1 FM 4056 H&C Extra DM 13/4/07 12:09 PM Page 46 SHANNONS BRANCHES Australian Capital Territory Unit 1, 74 Newcastle Street, Fyshwick 2609 New South Wales Unit B, 12 Frederick Street, St Leonards 2065 Northern Territory Hidden Valley Motor Sports Park, Hidden Valley Road, Berrimah 0828 Queensland 3-11 Ross Street, Newstead 4006 South Australia South Road, Clarence Gardens 5039 Tasmania Argyle Street, North Hobart 7000 Victoria 321 Warrigal Road, Cheltenham 3192 Western Australia 152 Burswood Road, Burswood 6100 Call for the cost of a local call from anywhere in Australia. National Claims Fax: Agent for Insurer & Authorised Representative Shannons Limited ABN Authorised Representative No Insurer & Licensee Australian Alliance Insurance Company Ltd ABN Australian Financial Services Licence No SHAPDS 13/04/07 SHANNONS HOME & CONTENTS EXTRA INSURANCE WITH ENTHUSIAST SECTION PRODUCT DISCLOSURE STATEMENT & POLICY WORDING shannons.com.au Insurance for Motoring Enthusiasts

2 FM 4056 H&C Extra DM 13/4/07 12:09 PM Page B Important Messages Contents If You have suffered loss or damage to Your Home, telephone Us on immediately so that We can take care of everything for You. You can call Us 24 hours a day, 7 days a week. How to use this Product Disclosure Statement and Policy Wording No policy covers everything therefore We have designed this document so that it is easy for You to distinguish between what is covered and what is not covered. In most areas of the Policy Wording We have put on the left page of the booklet and WHAT IS NOT COVERED on the right page. We have also used blue shading to highlight the limitations and exclusions. To fully understand Your Cover, You should read the appropriate section on the left page and then refer to the specific limitations and exclusions directly opposite. You must also read the exclusions and conditions which are on pages 36 to 39. If there is anything You don t understand about the Policy feel free to discuss it with Your nearest Shannons branch, either by telephone or in person. Please keep this document and Your Certificate in a safe place. Inflation Protection The sums insured shown in Your Certificate for Your Home and Contents will be automatically adjusted at the end of each Period of Insurance to account for inflationary trends. Sum Insured Any sum insured shown in Your Certificate is inclusive of any applicable taxes and charges and is the maximum amount We are obliged to pay in settlement of any claim. Notice If more than one person is an insured under this Policy, a failure or wrongful action by one of those persons may adversely affect the rights of the other person(s) insured under this Policy. The General Insurance Code of Practice 1 Part One - Product Disclosure Statement 2-7 Significant Features and Benefits 2 Important Information 4 Part Two - Policy Wording 7-43 Our Agreement with You 7 Definitions 8 Section One - Your Home: The cover 14 Section One - Your Home: Additional benefits 16 Section Two - Your Contents: The cover 20 Section Two - Your Contents: Additional benefits 22 Section Three - Legal Liability: The cover 26 Section Four - Enthusiast Section 30 Section Five - Unspecified Personal Effects 32 Section Six - Specified Personal Effects 34 Exclusions 36 Conditions 38 What to do when You have a claim 40 What to do if You have a complaint 41 The General Insurance Code of Practice Shannons believe it is important that insurance companies meet high performance and service standards. We fully support the General Insurance Code of Practice. The Code sets the standards of customer service to be provided by the insurance industry. It covers matters such as purchasing insurance, claims handling and dispute resolution. The Code is the general insurance industry s promise to be open, fair and honest in the way it deals with its customers. That s the way Shannons runs its business. You can obtain more information about the Code from your local Shannons branch or the Insurance Council of Australia. This insurance product is issued by: Australian Alliance Insurance Company Limited ABN Australian Financial Services Licence No Level 4, 440 Collins Street, Melbourne VIC 3000 This Product Disclosure Statement was prepared on 18/07/06 Page 1

3 FM 4056 H&C Extra DM 13/4/07 12:09 PM Page 2 Part One: Product Disclosure Statement Please read this Product Disclosure Statement and the Policy Wording carefully so that You are aware of the risks, limits of cover and other significant features associated with this Policy. Significant Features and Benefits The Shannons Home & Contents Extra Insurance Policy offers various types of cover for You to choose from. The cover You have selected is indicated in Your Certificate. Following is a brief summary of the significant benefits available under each form of cover. For the full details You must read the entire Policy Wording which starts on page 7. Your Home Provides cover for: accidental loss or damage loss or damage to Your Home up to the sum insured specified in Your Certificate caused by any accident or misfortune not excluded by the Policy; legal liability accidental loss or damage to someone else s property and accidental death or bodily injury of another person for which You are legally liable as owner and/or occupier up to an amount of $20,000,000; professional fees up to $5,000 for architects, consultants, surveyors and solicitors fees when damage or loss occurs; loss of rent loss of rent where Your Home is tenanted and becomes uninhabitable due to loss or damage covered under the Policy; rental costs rental costs that You incur for comparable accommodation up to 20% of the sum insured on Your Home if Your Home becomes uninhabitable due to loss or damage covered under the Policy; landlord s contents domestic furnishings, furniture and carpets are covered up to 5% of the sum insured on Your Home while they are in Your Home and it is tenanted; trees and plants up to $2,000 for reasonable costs of replacing in ground trees, shrubs or plants; replacement of locks and keys up to $1,000 for the costs or rekeying or replacing locks on external doors and windows if the keys to these locks are stolen from Your Home; additional benefits as described in the Policy Wording on pages 16 to 19. Your Contents Provides cover for: accidental loss or damage loss or damage to Your Contents whilst contained in Your Home up to the sum insured specified in Your Certificate caused by any accident or misfortune not excluded by the Policy; legal liability accidental loss or damage to someone else s property and accidental death or bodily injury of another person for which You are legally liable as occupier of Your Home and/or owner of Your Contents up to an amount of $20,000,000; Australia wide cover Your Contents are covered anywhere in Australia whilst temporarily removed from Your Address for up to 120 consecutive days (Note: some restrictions apply see the Policy Wording on pages 22 and 23); removal of damaged property reasonable costs of removal of debris and damaged property up to an amount of $1,000; temporary accommodation costs that You incur for similar temporary accommodation up to 20% of the sum insured on Your Contents if Your Home becomes uninhabitable due to loss or damage covered under the Policy; office equipment up to $15,000 or 25% of the sum insured specified in Your Certificate (whichever is lesser) for the loss or damage to Your office equipment if You maintain an office at Your Home; stock up to $1,000 for stock used for business, trade or profession; food spoilage all food spoilage in Your refrigerator or freezer following breakdown failure or malfunction; unauthorised use of credit cards up to $1,000 for loss caused by unauthorised use of Your credit or other financial transaction cards; temporary repairs reasonable costs of temporary repairs and protection to prevent further loss or damage following any loss or damage insured by the Policy; additional benefits as described in the Policy Wording on pages 22 to 25. Page 2 Page 3

4 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 4 Part One: Product Disclosure Statement (continued) Enthusiast Section Provides cover for loss or damage to Automotive Memorabilia and Collectables, automotive spare parts and accessories, tools, instruments and equipment whilst kept at Your Address caused by any accident or misfortune that occurs up to the amount shown in Your Certificate. Unspecified Personal Effects Provides cover for loss or damage to Your Unspecified Personal Effects caused by any accident or misfortune up to an amount of $1,000 for an individual item. Specified Personal Effects Provides cover for loss or damage to Your personal effects caused by any accident or misfortune up to the limit shown in Your Certificate. Important Information About the insurer Australian Alliance Insurance Company Limited ABN (AAI), Level 4, 440 Collins Street, Melbourne 3000, has prepared this Product Disclosure Statement and is the issuer of policies effected by Shannons Limited ABN Shannons Limited is the authorised representative and wholly owned subsidiary of AAI, and acts as AAI s agent under an authority given to it by AAI to enter into contracts of insurance on behalf of AAI as insurer and deal with and settle claims on behalf of AAI. What You must tell Us When answering Our questions You will need to answer for yourself or for anyone else who may receive a benefit under this insurance cover. It is important that You answer these truthfully and accurately as they may affect Our decision to insure You or pay a claim. Exclusions Your Policy may not provide You with cover in certain circumstances. Further information about the circumstances in which exclusions under this Policy may apply is contained on pages 36 and 37. Premiums We calculate Your premium after taking a variety of factors into account. Some factors are set, such as Our costs of distribution and profit component. Other factors can affect the amount of Your premium. The higher Your risk profile, the higher the premium. Using Our experience We decide what factors will increase Your risk profile and how they impact on the premium. The following table is a guide on how these factors combine together and may impact on Our assessment of the risk and therefore, Your premium. Factor May Reduce Premium May Increase Premium The postcode where Your Home Low risk postcode High risk postcode and/or Contents are located Amount You chose to insure Lower sum insured Higher sum insured Your Home and/or Your Contents for Construction type of Your Home Purpose for which Your Home is used In what capacity You occupy Your Home Fibro Holiday Home As a tenant The amount of Your excess An optional excess that An optional excess that is higher than the is lower than the standard excess standard excess Multi-policy discount You have a motor vehicle policy with Shannons Your premium also takes into account Our obligation to pay any relevant compulsory government charges, taxes or levies (eg. Stamp Duty, GST and Fire Services Levy) in relation to Your Policy. These amounts will be set out separately on any Certificate of Insurance as part of the total premium payable. Page 4 Page 5

5 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 6 Part One: Product Disclosure Statement (continued) Excess When You make a claim under Your Policy, You may be required to pay an excess in respect of a claim. There are 2 types of excesses that may apply to Your Home and Your Contents. Standard Excess This is the first amount that You may need to contribute towards a claim. The amount of Your standard excess is shown on Your Certificate. Optional Excess You can choose an excess which is higher or lower than the standard excess, in order to meet Your personal circumstances. A higher excess will attract a lower premium, whilst a lower excess will attract a higher premium. Your optional excess will replace Your standard excess and the amount of any excess will be shown on Your Certificate. Cooling off period You may cancel the insurance contract up to 14 days after You receive it by calling Us or writing to Us at one of the addresses listed on the back page and telling Us that You want to cancel it. If You cancel it in this time, and You have not made any claims, We will return to You all of the premium You have paid to Us. (To cancel at other times, please see Cancellation by You on page 39.) What to do if You have a claim For information about how to make a claim under Your Policy, see What to do when You have a Claim on page 40. What to do if You have a complaint For information about how We deal with Your complaints, see What to do if You have a complaint on pages 41 and 42. Your privacy Shannons complies with Australia s privacy laws. We may communicate Your information to organisations to whom We outsource certain functions such as claim assessing or mail processing. In these circumstances confidentiality agreements apply. On occasion, We may be obliged to disclose information by law if requested to do so. For full details of Our privacy policy, You can: View them online at shannons.com.au; or Request a copy of our privacy brochure titled Privacy and Your Personal Information by calling ; or Visit a branch. Shannons likes to keep You informed about Our products which may be of interest to You. If You would prefer not to receive any promotional material and have not previously told Us, then please call at any time. Please note that You may be able to access any information We hold about You. How to contact us In person at any Shannons branch By telephone on On the web at shannons.com.au Part Two: Policy Wording Notification of change Information in this Product Disclosure Statement is subject to change from time to time. We will issue a supplementary or replacement Product Disclosure Statement if there is any change that We are required by law to notify You of. For other changes, updated information can be obtained at any Shannons branch or by calling A paper copy of any updated information will be provided, free of charge, on request. Part Two: Policy Wording Our Agreement with You Shannons Limited ABN (Shannons) on behalf of Australian Alliance Insurance Company Limited ABN agrees in return for Your premium to insure You in the circumstances and subject to the terms and conditions and amounts of cover set out in this Policy. Page 6 Page 7

6 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 8 Definitions Applicable to Your Policy In this Policy: 1. You, Your means the insured named in Your Certificate and members of Your Family who normally live with You. 2. Your Family means Your spouse, defacto spouse, partner, parents, grandparents, children, grandchildren, brothers, sisters and in laws who normally live with You, any person who provides care or service to You and who normally lives with You and any other person named in Your Certificate. 3. We, Our, Us means Shannons Limited (Shannons) on behalf of Australian Alliance Insurance Company Limited. 4. Policy means Your contract of insurance with Us and includes the Policy Wording, Your Certificate and any endorsements. 5. Policy Wording means the summary of the terms of the Policy contained in Part Two of this document. 6. Your Certificate means any certificate of insurance, renewal certificate or schedule containing details of Your Policy. 7. Your Address means the address shown in Your Certificate at which Your Home is located. 8. Rainwater means rain falling naturally from the sky including rainwater run-off over the surface of the land and including rainwater over-flowing from storm water drains and channels. 9. Storm means violent wind (including cyclones and tornadoes) and thunderstorms which may be accompanied by rain or snow. 10. Flood means the inundation of normally dry land by water overflowing from the normal confines of any natural or artificial watercourse, lake, reservoir, canal or dam. 11. Period of Insurance means the period stated in Your Certificate. 12. Your Home means the residential building situated at Your Address together with all domestic outbuildings, Structural Improvements, fixtures including fixed wall, ceiling and floor coverings and insulation. 10. Tidal inundation caused by the action of the sea, erosion, landslide, subsidence or tsunami. 12. Your Contents. Page 8 Page 9

7 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 10 Definitions Applicable to Your Policy (continued) 13. Structural Improvements are permanent additions to Your Home that add value to the cost of rebuilding or repairing it and includes: clothes line; paved driveways or paths; masts and aerials; pergolas and gazebos; in ground pools; saunas and spas; gates and fences; privately owned wharves, jetties and pontoons not used for commercial purposes. 14. Your Contents means Your: domestic and antique furniture and furnishings; carpets, drapes and interior blinds; moveable swimming pool; moveable sauna and spa; wall and floor coverings; household goods, clothing and other personal effects; cash and negotiable instruments; bicycles, surfboards, surf skis and sailboards; computer equipment and licensed software; motorised golf carts, wheelchairs, lawn mowers and motor scooters which do not require registration; tools used only for domestic purposes. Your Contents also includes the above items (excluding cash and negotiable instruments) not owned by You but for which You are legally responsible. 15. Open Air means any area of Your Address that is not fully enclosed by the walls and a roof of Your Home and is not capable of being secured by a lock or similar device. 14. Motor vehicles, motorcycles, trailers, caravans, aircraft, watercraft and attached accessories. Any item included in the definition of Your Home. Restoration of Your computer records. Plants, trees, shrubs and landscaping. Pets or animals of any kind. Items covered under Sections Four, Five and Six of this Policy. Page 10 Page 11

8 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 12 Definitions Applicable to Your Policy (continued) 16. Automotive Memorabilia and Collectables means objects and collections valued for their connection with motoring. 17. Unspecified Personal Effects means: belongings normally worn or carried by You; sporting, recreational and leisure goods and equipment; portable electronic and electrical items and their accessories; photographic and optical equipment. 17. cash, negotiable instruments, stamps, postal notes, money orders; credit, debit, stored value and access cards; films, compact discs, video and audio tapes, digital video discs; vehicles and motorcycles; watercraft, aircraft and aerial devices; tools of any description. Page 12 Page 13

9 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 14 Section One - Your Home: The Cover We will cover You for loss or damage to Your Home caused during the Period of Insurance by any accident or misfortune not excluded by this Policy. The reasonable costs of rebuilding, replacing or repairing Your Home so that it is, if possible, in the same condition as when new, or when last renovated, will be paid for by Us. Where it is not possible to match materials, the best similar materials will be paid for by Us. If You decide not to rebuild, repair or replace Your Home, or if You do not commence such work within six months of the date the loss or damage occurred, We will only pay You what it would have reasonably cost to rebuild, repair or replace Your Home at the date of the loss or damage. We will also cover You for any additional costs incurred in complying with Government or Local Authority regulations or by-laws. 1. Any amount in excess of the sum insured specified in Your Certificate. 2. The exclusions on pages 36 and Damage caused by water seeping or percolating through walls, roofs or floors. 4. Storm, wind, Rainwater, Flood, or hail damage to retaining walls, paths, driveways, and tennis court surfaces. 5. Storm, wind, Rainwater, or hail damage to external paintwork or other exterior coatings of buildings if that is the only damage sustained to that part of the building. 6. In respect of loss or damage resulting from burning out by electric current of an electric motor, any amount that exceeds 2% of the sum insured on Your Home and any repairs or costs which are incidental to or incurred as a consequence of repairing the damage caused by the electric current including, but not limited to, all protective devices and mechanical parts. 7. Incorrect siting of buildings. 8. Demolition ordered by Government or Local Authority. 9. Where Your Home is in the course of construction. 10. Costs incurred in complying with any Government or Local Authority regulations or by-laws where notice requiring compliance was received by You prior to a claim. 11. We will not cover You for loss or damage caused by theft or by fire, explosion or lightning if Your Home has been unoccupied for a period of 60 continuous days or more (unless You have obtained Our written consent and paid any additional premium required by Us). For Your Home to be considered occupied You, or someone nominated by You, must have stayed in Your Home for 2 consecutive nights on at least one occasion in a 60 day period. 12. In respect of any fixed wall, ceiling or floor covering We will only pay for the repair or replacement in the room or rooms in which the loss or damage occurred. 13. Damage caused by tree loppping by You or on Your behalf. Page 14 Page 15

10 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 16 Section One - Your Home: Additional Benefits 1. Following loss or damage insured by this Policy We will pay the reasonable costs of: architects, consultants, surveyors and solicitors relating to the replacement or repair of Your Home; fees incurred during the discharge and reinstatement of a mortgage on Your Home; preparing new Title Deed Documents for Your Home lost or destroyed in Your Home or a bank safe deposit; removal of debris, necessary demolition and temporary work. 2. If Your Home becomes uninhabitable as a result of loss or damage insured by this Policy We will pay an amount equal to the loss of rent where Your Home is tenanted. If You live in Your Home We will pay the rental costs You pay for similar alternative accommodation. 3. We will pay reasonable exploratory costs incurred in locating the cause of loss or damage covered by this Policy. 4. Landlord s Contents. If You do not live in Your Home and have it tenanted We will extend the cover provided by Section One to include Your domestic furnishings, furniture and carpets whilst contained in Your Home. 5. Following loss or damage insured by this Policy We will pay for the reasonable cost of temporary repairs and protection to prevent further loss or damage. 1. The total amount payable under Section One of this Policy including this additional benefit will not exceed the sum insured on Your Home plus $5,000. We will not pay for the removal of any tree stumps and We will not pay for the removal of any fallen trees or branches where no damage to Your Home has been sustained. 2. Loss of rental cost in excess of a period reasonably required to replace or repair Your Home or 12 months whichever is the lesser; Any amount which exceeds 20% of the sum insured on Your Home. 3. We will not pay these costs if the loss or damage is due to lack of maintenance. 4. This benefit will not apply if the sum insured on Your Home has been otherwise totally exhausted; Accidental breakage of any kind; Any amount which exceeds 5% of the sum insured on Your Home; In respect of carpets and internal window furnishings We will only pay for the repair or replacement in the room or rooms in which the loss or damage occurred. Page 16 Page 17

11 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 18 Section One - Your Home: Additional Benefits (continued) 6. If Your Home is to be replaced You may do so to Your specifications at Your Address or another address. 7. We will pay for the reasonable cost of replacing any inground tree, shrub or plant. 8. We will pay the costs of rekeying or replacing locks and cylinders (whichever is the lesser) on external doors and windows at Your Home if the keys designated to operate those locks are stolen from Your Home. 6. Any amount in excess of the amount which would have been payable if the change of address or specifications had not taken place. 7. Any amount which exceeds $200 for any one item and limited to a total of $2,000 for any one claim. 8. Any amount in excess of $1,000 but We will not pay anything if You have cover on Your Contents under Section Two as this benefit is already provided there. Page 18 Page 19

12 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 20 Section Two - Your Contents: The Cover We will cover You for loss or damage to Your Contents whilst contained in Your Home caused during the Period of Insurance by any accident or misfortune not excluded by this Policy. At Our option We shall either: pay the reasonable cost of repairing Your Contents which have been damaged; or replace Your Contents which have been damaged or stolen; or compensate You in cash for Your loss or damage. If, at Your request, We agree to compensate You in cash, We will reduce the cash compensation by an amount equal to any trade discount which We would have obtained from a supplier had We chosen to repair or replace Your Contents. 1. Any amount in excess of the sum insured specified in Your Certificate. 2. The exclusions on pages 36 and In respect of pictures, works of art, vases, ornaments, watches, jewellery, unset stones and gems, furs, leather items, gold or silver articles, documents, cameras or photographic equipment or camcorders and their accessories any amount in excess of $2,000 per individual item, pair, set or collection, and in any event not more in total than 20% of the sum insured on Your Contents. This restriction does not apply to items specified in Your Certificate. 4. In respect of loss or damage resulting from the burning out by electric current of an electric motor any amount that exceeds 2% of the sum insured on Your Contents and any repairs or costs which are incidental to or incurred as a consequence of repairing the damage caused by the electric current including, but not limited to, all protective devices and mechanical parts. 5. We will not cover You for loss or damage caused by theft or by fire, explosion or lightning if Your Home has been unoccupied for a period of 60 continuous days or more (unless You have obtained Our written consent and paid any additional premium required by Us). For Your Home to be considered occupied You, or someone nominated by You, must have stayed in Your Home for 2 consecutive nights on at least one occasion in a 60 day period. 6. Cash and negotiable instruments in excess of $500 in total. 7. In respect of carpets or internal window furnishings We will only pay for the repair or replacement in the room or rooms in which the loss or damage occurred. 8. Theft by any person who normally lives in Your Home or by a person lawfully at Your Address; Theft which occurs when Your Home does not have sufficient furniture and furnishings for normal living purposes. 9. Damage caused by tree lopping by You or on Your behalf. 10. Breakage of non-ornamental glassware, porcelain, china, pottery, earthenware, crystal and mirrors whilst in use or being carried by hand. 11. Damage to sporting goods or equipment whilst in use. 12. Your Contents whilst in the Open Air. Page 20 Page 21

13 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 22 Section Two Your Contents: Additional Benefits 1. Following loss or damage insured by this Policy We will pay the reasonable cost of removal of debris and damaged property. 2. If Your Home becomes uninhabitable as a result of loss or damage insured by this Policy We will pay the reasonable cost incurred by You for similar temporary accommodation. 3. Cover provided by Section Two is extended to include Your Contents within Australia whilst temporarily removed from Your Address for up to a period of 120 consecutive days. 4. Cover provided by Section Two is extended to include Your Contents whilst in the Open Air. 5. If You maintain an office at Your Home We will extend cover provided by Section Two to include Your office equipment. 6. Stock used in any business, trade or profession. 7. We will cover You for food spoilage in Your domestic refrigerator or freezer following: (a) mechanical, electrical or electronic breakdown, failure or malfunction; (b) the escape of refrigerant fumes; (c) the public electricity supply failing to reach Your Home. 8. Cover provided by Section Two is extended to include visitors effects not otherwise insured whilst they are contained in Your Home. 1. Any amount in excess of $1, Costs incurred for accommodation outside the period reasonably required to replace or repair Your Home; Any amount which exceeds 20% of the sum insured on Your Contents. 3. Any amount in excess of $2,000 per individual item, pair, set or collection and in any event not more in total than 20% of the sum insured on Your Contents; Breakage of non-ornamental glassware, porcelain, china, pottery, earthenware, crystal and mirrors whilst in use or being carried by hand; Your Contents whilst they are removed for sale, storage or hire; Cash or negotiable instruments. 4. Any amount in excess of $2,000 per individual item, pair, set or collection and in any event not more in total than 20% of the sum insured on Your Contents; Breakage of non-ornamental glassware, porcelain, china, pottery, earthenware, crystal and mirrors whilst in use or being carried by hand; Claims for theft in excess of $2,000; Cash and negotiable instruments in excess of $500 in total. 5. Any amount which exceeds $15,000 or 25% of the sum insured on Your Contents whichever is the lesser. 6. Any amount in excess of $1, When the failure was caused by industrial action or the deliberate act of a power supply authority. 8. Any amount in excess of $1,000 unless a higher amount is specified in Your Certificate; Accidental breakage of any kind; Cash and negotiable instruments; Effects owned by visitors who have stayed with You for more than 30 days. Page 22 Page 23

14 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 24 Section Two Your Contents: Additional Benefits (continued) 9. If there is unauthorised use of Your credit or other financial transaction cards We will cover Your loss anywhere in the world. 10. We will pay the costs of rekeying or replacing locks and cylinders (whichever is the lesser) on external doors and windows at Your Home if the keys designated to operate those locks are stolen and the theft is reported to the Police. 11. If Your Contents are permanently moved to a new address We will automatically cover them at the new location. 12. Fixtures and fittings. If You do not own Your Home or You are the owner of a unit on a plan of subdivision which has provided for or resulted in the creation of a body corporate, We will extend the cover provided by Section Two to include fixtures and fittings installed by You or for which You are legally liable. 13. Cover provided by Section Two is extended to cover accessories and spare parts removed from Your watercraft and stored within Your Home. 14. Following loss or damage insured by this Policy We will pay for the reasonable cost of temporary repairs and protection to prevent further loss or damage. 15. If, as a result of a loss or damage covered by Your Policy, You suffer an injury that results in Your death, quadriplegia or paraplegia We will pay You or Your estate $10, We will pay reasonable veterinary expenses for Your domestic pet injured as a result of vehicle impact. 17. Cover provided by Section Two is extended to cover the tools, instruments and equipment used by You in Your current or former business or occupation whilst stored within Your Home. 9. Any amount in excess of $1,000; Where You fail to comply with the conditions of the card; Where the unauthorised user was a member of Your Family or a person who normally lives in Your Home. 10. Any amount in excess of $1, Any loss, damage or liability that occurs after a period of 14 days from the date of the move to the new address, unless Our written acknowledgement has been given. 12. Any amount in excess of the amount which would have been payable under Section Two if this additional benefit had not been applied. 13. Any amount in excess of $1, We will not pay more than $10,000 in respect of any Period of Insurance. 16. Any amount in excess of $ Any amount in excess of $3,000 unless a higher amount is specified in Your Certificate; Any item covered under Sections Four, Five and Six. Page 24 Page 25

15 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 26 Section Three Legal Liability: The Cover We will cover You for Your legal liability for accidental loss of or damage to any property and for accidental death or bodily injury resulting from an occurrence or series of occurrences (including cover for legal costs incurred with Our consent or ordered against You). The extent of that cover is as follows: A. where You are covered under Section One and You are the owner and occupier of Your Home, Your liability as owner and/or occupier is covered; B. where You are covered under Section One and You are the owner but not the occupier of Your Home, Your liability as owner is covered; C. where You are covered under Section One and Your Home is a unit in a subdivision which resulted in the creation of a body corporate, Your liability as a member of the body corporate is covered; D. where You are covered under Section Two and You are the occupier of Your Home (whether as an owner or as a tenant): Your liability as occupier of Your Home is covered; Your liability as owner of Your Contents is covered; Your liability to Your landlord in respect of any property items left by the landlord in Your Home for use by You and Your Family is covered; Your personal legal liability arising anywhere in the world is covered. 1. Any amount in excess of $20,000,000 for any legal liability covered under this Policy or any other policy issued by Us resulting from an occurrence or series of occurrences. 2. Claims arising from, and of or in connection with: Your ownership of any buildings or land other than Your Home or the land at Your Address; the transmission of any disease by You; any trade, business, or occupation or employment carried on by You or Your Family for reward other than casual babysitting and except as a landlord; Your liability or Your acceptance of liability arising out of any contract; vibration or interference with the support of land, buildings or other property; registered vehicles (other than garden appliances, bicycles, motorised wheel chairs, mobility scooters and golf carts); aircraft or the provision of any facilities for the landing or storing of such craft; watercraft (other than surfboards, surf skis and sailboards) or the provision for commercial purposes of any facilities for the landing or storing of such craft; any building construction, alteration, addition, repair or decoration the cost of which exceeds $50,000 per project. 3. Claims for bodily injury to, the death of or the illness of You or any person who normally lives with You in Your Home or any employee of Yours or of any such person. 4. Claims for bodily injury to, the death or illness of Your employees other than to or of an employee whilst doing domestic work for You and for whom You or Your Family s legal liability cannot be covered by workers compensation insurance because the employee is not an individual who works under a contract of service. 5. Your liability as owner of Your Home if You are not covered under Section One. 6. Claims for death, bodily injury or illness attributable to or contributed to by the consumption of alcohol or drugs of any kind (including tobacco) provided or permitted by You. Page 26 Page 27

16 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 28 Section Three Legal Liability: The Cover (continued) See page Claims for loss or damage to property belonging to or under the control of You or any person who normally lives at Your Home or any employee of Yours or of any such person. 8. Claims for punitive or exemplary damages. 9. Claims arising out of or in connection with contamination or pollution. 10. Claims resulting directly or indirectly from the existence of asbestos, asbestos fibres or derivatives of asbestos. 11. Claims brought against You in any country on the Continent of North America or any State or territory incorporated in or administered from such country. Page 28 Page 29

17 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 30 Section Four Enthusiast Section We will cover you for loss or damage to: Automotive Memorabilia and Collectables; spare parts and accessories removed from any Vehicle owned by You tools, instruments and equipment used in Motoring, or related to Your current or former business or occupation; by any accident or misfortune not excluded by this Policy and whilst kept at Your Address. At Our option We shall either: pay the reasonable cost of repairing Your items which have been damaged; or replace Your items which have been damaged or stolen; or compensate You in cash for Your loss or damage. If, at Your request, We agree to compensate You in cash, We will reduce the cash compensation by an amount equal to any trade discount which We would have obtained from a supplier had We chosen to repair or replace Your items. 1. Any amount in excess of the sum insured specified in Your Certificate. 2. The exclusions under pages 36 and Any items specified under Section Six. 4. Any amount in excess of $1,000 per individual item, pair, set or collection unless specified in Your Certificate. 5. Damage to tools, instruments and equipment whilst in use. 6. Any registered vehicle. 7. Any items covered under Section Two. 8. We will not cover You if Your Home has been unoccupied for a period of 60 continuous days or more (unless You have obtained Our written consent and paid any additional premium required by Us). For Your Home to be considered occupied You must have stayed in Your Home for 2 consecutive nights on at least one occasion in a 60 day period. Page 30 Page 31

18 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 32 Section Five Unspecified Personal Effects We will cover You for loss or damage to Your Unspecified Personal Effects caused during the Period of Insurance by any accident or misfortune not excluded by this Policy. At Our option We shall either: pay the reasonable cost of repairing Your personal effects which have been damaged; or replace Your personal effects which have been damaged or stolen; or compensate You in cash for Your loss or damage. If, at Your request, We agree to compensate You in cash, We will reduce the cash compensation by an amount equal to any trade discount which We would have obtained from a supplier had We chosen to repair or replace Your personal effects. 1. Any amount in excess of the sum insured specified in Your Certificate for each claim. 2. The exclusions on pages 36 and Any personal effects covered under Section Four and Six. 4. Any amount in excess of $1,000 per individual item, pair, set or collection. 5. Damage to sporting, recreational and leisure goods and equipment whilst in use. 6. Any costs associated with network connection. 7. Restoration of Your computer records. Page 32 Page 33

19 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 34 Section Six Specified Personal Effects We will cover You for loss or damage to Your personal effects caused during the Period of Insurance by any accident or misfortune not excluded by this Policy up to the limit shown in Your Certificate. At Our option We shall either: pay the reasonable cost of repairing Your personal effects which have been damaged; or replace Your personal effects which have been damaged or stolen; or compensate You in cash for Your loss or damage. If, at Your request, We agree to compensate You in cash, We will reduce the cash compensation by an amount equal to any trade discount which We would have obtained from a supplier had We chosen to repair or replace Your personal effects. 1. The exclusions on pages 36 and Damage to recreational and sporting goods or equipment whilst in use. 3. More than the sum insured specified for each item in Your Certificate. Page 34 Page 35

20 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 36 Exclusions Applicable to Your Policy In respect of Sections One, Two, Four, Five and Six We will not pay for loss or damage caused by or arising from or occurring to any item by way of: 1. cracking, chipping or scratching; 2. mechanical, electric or electronic breakdown, failure or malfunction except where an electrical motor is burnt out by electric current; 3. malicious, unlawful or dishonest acts by tenants or persons lawfully at Your Address; 4. water entering Your Home; (a) as a result of Your failure to perform adequate maintenance on Your Home, or a structural defect, or faulty design or workmanship; or (b) through any opening made for the purpose of repairs or alterations to Your Home unless You can prove that the loss or damage was caused by the negligence of someone other than You; 5. any process involving the use of chemicals; 6. wear and tear, lack of maintenance or inherent defect; 7. rust, corrosion, mildew, wet or dry rot, rising damp or seepage and other signs of failure to keep Your Home in good order and repair; 8. any act by You intended to cause loss or damage or to incur a liability; 9. the action of insects or vermin; 10. the action of trees or their roots; 11. consequential loss of any kind; 12. loss or damage to property occasioned by its undergoing any process involving the application of heat; 13. structural defects or faulty workmanship, settling shrinkage or expansion; 14. the action of the sea, erosion, landslide, subsidence or tsunami; 15. the lawful seizure or repossession of Your Home, Contents or any personal effects; 16. war, invasion, act of a foreign enemy, hostilities (whether war be declared or not), civil war rebellion or insurrection; 17. the use, misuse or existence of nuclear weapons or the use, misuse, escape or existence of nuclear fuel, waste or materials or ionising radiation or contamination from such fuels, waste or materials, or the combustion, detonation, fission and/or fusion of nuclear fuel or nuclear materials; 18. the existence of, or operation of, or threatened existence or operation of chemical or biological weapon(s) or actual or threatened pollution or contamination from such weapons, or action taken by a public authority or anybody authorised by a public authority to prevent, limit, or remedy such pollution or contamination; 19. where Your Home is in the course of construction. Page 36 Page 37

21 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 38 Conditions Applicable to Your Policy 1. Reinstatement following a loss Where there is loss or damage to Your Home or to Your Contents and a claim is admitted by Us the sum insured will be automatically reinstated without payment of an additional premium. 2. Protection of property You must take all reasonable steps to safeguard Your Home, Your Contents and personal effects from damage, to maintain them in good condition and to minimise the risk of injury from them. This includes compliance with all laws, by-laws and statutory regulations. 3. Proving evidence of the value and ownership of the insured property When You make a claim, We are entitled to ask You to provide Us with evidence of ownership and value of the property. Evidence includes: valuations; receipts; photographs; credit card statements. Instruction books will also help provide evidence of Your ownership in the event of a claim. 4. Strata Title mortgagee s interest If this Policy has been arranged to insure only the interest of a mortgagee in a strata unit title, We will only pay that part of the claim that applies to the interest of the mortgagee but no more than the sum insured shown in Your Certificate. 5. Inspection We shall at all reasonable times have free access to examine Your Home, Contents and personal effects. 6. Hazardous goods If You are storing hazardous goods or substances in Your Home or at Your Address, You must comply with all applicable laws and regulations. 7. Other persons bound by this Policy Any person entitled to cover under this Policy is bound by its terms and conditions. 8. Breach of Policy If You breach or fail to comply with this Policy and Your breach or failure prejudices Our interests, We may, subject to the Insurance Contracts Act, refuse to pay any claim under this Policy either in whole or, at Our option, in part. 9. Assistance If, after payment of a claim, We wish to recover the amount We have paid from another person then, subject to the Insurance Contracts Act, We can do so and You and any other person entitled to cover under this Policy must give Us any information and help that We may reasonably require. 10. Legal Representation We may represent or defend You or any person entitled to cover under this Policy in respect of legal liability as We see fit at any inquest or inquiry or in any action or proceedings. 11. Cancellation by You This Policy may be cancelled by You at any time, either in writing or by telephone. If You cancel this Policy, You will be refunded the unexpired portion of the premium, less any non-refundable government taxes and duties. 12. (a) Cancellation by Us We may cancel this Policy at any time where We are entitled to do so under the Insurance Contracts Act. If We cancel this Policy We will repay the amount of premium paid for the unexpired period of this Policy calculated from the date of cancellation. 12. (b) Important information for customers paying by instalments If You are paying the premium for this Policy by monthly instalments, You should be aware that if any instalment is not paid on time and remains overdue for: 14 days (or more) We will not pay claims that occur on or after that 14th day; a month (or more) We will cancel this Policy from when the instalment was due for payment. 13. Notification of change of risk You must notify Us in writing as soon as possible if during the Period of Insurance any change is made to Your Home or Your Contents or personal effects which might materially affect the nature of the risk against which You are covered by this Policy. 14. Excess In respect of each claim which You make under this Policy You must contribute the amount stated in Your Certificate. You do not have to pay the excess when You make a claim. However You will have to pay the excess before We will pay Your claim. Page 38 Page 39

22 FM 4056 H&C Extra DM 13/4/07 12:10 PM Page 40 What to do when You have a claim What to do if You have a complaint When a claim arises under this Policy: 1. contact Us immediately on anytime day or night. Do not authorise any repairs or arrange replacement of any of the property insured other than emergency repairs necessary to prevent further loss; 2. take immediate steps at Your own expense to minimise the damage (reasonable costs for temporary protection are recoverable under this Policy); 3. do not admit liability for or offer, agree or promise to settle any claim with a third party without Our prior written consent; 4. immediately notify the Police if a crime is suspected; 5. promptly notify Us of every loss or event and of any claim made against You. You must also promptly forward to Us any writ, summons or proceedings which You receive relating to any prosecution, inquest or hearing and all other information relevant to those matters where any liability under this Policy may arise; 6. make Your damaged property available for inspection by Us or Our representative and, if We require, deliver the items which have been damaged to Us; 7. when requested, provide Us with all proofs, information, co-operation and assistance in relation to a claim (including giving evidence in court) as We may reasonably require. Our goal is to have You as a happy, long-term customer. We want You to be completely satisfied in all Your dealings with Us. Shannons is committed to dealing with Our customers by: listening carefully to what You tell Us; being accurate and honest in telling You about Our products and services; communicating with You professionally and in plain language; and resolving any complaints or concerns You have with Us. So if You think We have let You down in any way, or Our service is not what You expect please let Us know so We can help. How to tell Us when You are not happy (or even if You just want to clarify something)... You can tell Us: By phone If You have a complaint please phone If We are unable to resolve the matter over the phone We will ask You to put it in writing. In writing Send Us the full details of Your complaint, including any supporting documents and evidence, and explain what You would like Us to do. Please address this information to Your nearest Shannons branch. These are listed on the back of this Policy. In person Come in and talk to Us, face to face at Your local Shannons branch. Rest assured... This is what We will do... If You phone, You will be told the name of the most appropriate person to deal with the matter. If You write to Us, Your letter will be directed to the correct person. In either case: Your complaint will be handled by the person who has authority to deal with it; and this person will consider the facts and contact You to resolve Your complaint as soon as possible, usually within 24 hours of receipt. If this person is not able to resolve the matter to Your satisfaction, then it will be referred to a Dispute Resolution Manager who has the authority to deal with it and You will be contacted within five business days. Page 40 Page 41