Accidental damage QBE Insurance (Australia) Limited

Transcription

1 Accidental damage QBE Insurance (Australia) Limited Product disclosure statement and Home & contents insurance policy

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3 1 CONTENTS Introduction About this booklet Updating our product disclosure statement About QBE Australia Important Information Duty of disclosure Your sum insured may not be adequate The cost of this policy How to make a claim Cooling off information Privacy The General Insurance Code of Practice Dispute resolution Financial claims scheme Policy Wording Our agreement with you Your Policy Providing proof Other party's interest Paying your premium Preventing our right of recovery A claim may be refused Words with special meanings Section 1: What Home and Contents mean Home Contents Section 2: Cover for your Home & Contents Accidental damage What you are insured against, and what you are not Specified events How we will pay Section 3: Cover for your Legal Liability What you are covered against Additional benefits Liability What you are not covered against What we will pay Date of preparation: 1st October 2013 Date effective: 14th December 2013 QM

4 2 Section 4: Additional benefits Section 5: Options you can choose for additional premium 1. Valuables 2. Domestic workers compensation Section 6: What you must pay if you make a claim Excess When you will not have to pay an excess Section 7: When you are not covered General exclusions applying to this Policy Additional exclusions applying to this Policy Section 8: General conditions Changing your Policy Other interests Cancelling your Policy Changes Unoccupancy Salvage Burglary protection Care and maintenance Adjustment of premium on renewal Strata title mortgagee s interest Section 9: Claims What you must do What you must not do What we do What can affect a claim

5 3 Introduction We understand how important it is to be comfortable with your cover so we are glad you chose QBE to take care of your insurance. As the largest Australian owned general insurer and reinsurer, we have been taking care of the insurance needs of Australians since Safe, strong and secure, you can be confident you ve made a great choice. Inside, you will find the information you need to know about your Policy. We explain what your Policy covers, information about discounts and excesses and importantly, how to make a claim. Remember, whether you call us for a quote, or to report a claim, or to change your details, you can rely on our friendly team to help you. Please take the time to read through this booklet and if you have any questions or need more information, call us on or the phone number at the top of your Policy Schedule. Thank you for making QBE your first choice. About this booklet This booklet is a Product Disclosure Statement (PDS) and is also the Policy Wording. Other documents may comprise the PDS and we will tell you if this is the case in the relevant document. This booklet has two (2) parts: Important Information to help you understand the insurance, and the Policy Wording, which sets out terms and condition of the cover provided. It is up to you to choose the cover you need. Any advice in this booklet is general in nature only and has not considered your objectives, financial situation or needs. You should carefully consider the information provided having regard to your personal circumstances to decide if it is right for you. Updating our product disclosure statement We may update the information contained in this PDS when necessary. A paper copy of any updated information is available to you at no cost by calling us. We will issue you with a new PDS or a supplementary PDS, where the update is to rectify a misleading or deceptive statement or omission, which is materially adverse from the point of view of a reasonable person deciding whether to obtain or renew this insurance.

6 4 About QBE Australia QBE Insurance (Australia) Limited is a member of the QBE Insurance Group (ASX: QBE). QBE Insurance Group is Australia s largest international general insurance and reinsurance group, and one of the top 25 insurers and reinsurers worldwide. The company has been operating in Australia since 1886 and continues to provide insurance solutions that are focused on the needs of policyholders. QBE is a respected name in Australian insurance, backed by sizeable assets, and well known as a strong and financially secure organisation. Important Information The information provided in this section includes high level information about the options in cover you can choose from, as well as factors that affect the cost, our dispute resolution process, your duty of disclosure, cooling off rights, how to make a claim and other relevant information. The Policy Wording section sets out the detailed terms, conditions and exclusions relating to the insurance. If we issue you with a Policy, you will be given a Policy Schedule. The Policy Schedule sets out the specific terms applicable to your cover and should be read together with the Policy Wording. The Policy Wording and Policy Schedule form your legal contract with us so please keep them is a safe place for future reference. You should check the Policy or Renewal Schedule when you receive it to ensure it accurately states what you have insured. If you require further assistance or information about this product, please contact your financial services provider. Duty of disclosure New business What you must tell us When answering our questions, you must be honest and you have a duty under the law to tell us anything known to you, and which a reasonable person in the circumstances would include in answer to the questions. We will use the answers in deciding whether to insure you and anyone else to be insured under this insurance and on what terms. Who needs to tell us It is important that you understand you are answering our questions in this way for yourself and anyone else who is an insured under this insurance.

7 5 If you do not tell us If you do not answer our questions in this way, we may reduce or refuse to pay a claim, or cancel your insurance. If you answer our questions fraudulently, we may refuse to pay a claim and treat the insurance as never having worked. Renewals, variations, extensions and reinstatements Once your insurance is entered into and is no longer new business then your duty to us changes. You are required before you renew, vary, extend or reinstate your insurance, to tell us everything you know and that a reasonable person in the circumstances could be expected to know, is a matter that is relevant to our decision whether to insure you, and anyone else to be insured under this insurance, and if so, on what terms. You do not have to tell us about any matter: that diminishes the risk to be undertaken by us; that is of common knowledge; that we know or should know or, in the ordinary course of our business, we ought to know; as to which compliance with your duty is waived by us. Non-disclosure If you fail to comply with your duty of disclosure, we may be entitled to reduce our liability under the insurance in respect of a claim or may cancel the insurance. If your non-disclosure is fraudulent, we may also have the option of avoiding the insurance from its beginning. You must disclose to us all previous claims You are asked at the time you take out this insurance to give us full and correct details concerning any: renewal or insurance policy declined, cancelled or refused, or where any excess was imposed; claim refused by an insurer; claim made; criminal conviction or finding of guilt for an offence, in relation to you and your family because any of these may affect the premium and extent of insurance. For example, we may be entitled to: charge you an additional premium; impose (back-dated) restrictions including declining your insurance back to when this information should have been provided;

8 6 decline to insure your building, contents or valuables; refuse a claim. When renewing your Policy with us you must also advise us of any changes to your: claims; insurance; or criminal history. We will notify you in writing of the effect a change may have on your renewal. Your sum insured may not be adequate The Policy provides replacement or reinstatement conditions for home and contents which means that claims are settled without contribution for age, depreciation or wear and tear. It is important that the sums insured you select cover the cost of replacing your home and contents on a new for old basis. The sums insured that you select must make allowance for structural improvements (such as sheds, pergolas, and fencing), GST and any additional benefits that are included in the sum insured such as removal of debris. It is recommended that you use the free, sum insured calculator, available on our website to determine your building sum insured. It is important that you read the sub-limits in the Terms and Conditions for items such as works of art, items of jewellery and collections. If you have any of these items that will cost more than the sub-limit to replace, then you will need to nominate them to ensure that they are covered for more than the sub-limit. For example, there is a sub-limit on jewellery of $5,000 per item, and in total, 25% of the unspecified contents sum insured. If it would cost more than this to replace your jewellery as new, then you must specify your jewellery item(s) to ensure that you are covered for your jewellery s full value. Policy not suitable for landlords or holiday homes This Policy is issued on the basis that that you live in the home and it is not used to let to tenants or as a holiday home. There are limitations on the cover provided by this Policy if you do not tell us that you let the home to tenants or you use the home as a holiday home. If you let the home to tenants or use the home as a holiday home, you must tell us beforehand. Should this occur, we will cancel this Policy and replace it and offer you an alternative cover.

9 7 If you let the home to tenants or use it as a holiday home and you do not tell us, we will not insure you for malicious damage, accidental damage, or any of the following specified events: (a) (b) (c) (d) (e) (f) implosion, subterranean fire, volcanic eruption, Impact, sonic boom, falling objects. The cost of this policy The total premium is the amount we charge you for this insurance policy. It includes the amount we have calculated for the risk and the taxes and government charges applicable. The premium will be shown on the policy schedule. When calculating the premium we take a number of factors into account. These factors and the degree to which they affect the premium will depend on the information you give us, and the level and type of cover you choose. The main factors that impact your premium include: where the home or contents are located, the sum insured and your previous insurance and claims history. Some rating factors do not affect all components of the premium calculation. For example, age discounts, retiree discounts, no claim bonus and loyalty discounts do not apply to the parts of the premium paid for liability cover or flood cover. How to make a claim Please contact your appointed financial services provider to make a claim. We will only accept responsibility for repairs or payments to third parties under a claim where you have told us about them beforehand and we have accepted your claim. Full details of what you must do for us to consider your claim are provided in the Claims section at the end of this booklet. In an emergency outside normal business hours you may ring our emergency service on for assistance. Cooling off information If you want to return your insurance after your decision to buy it, you may cancel it and receive a full refund. To do this you may notify your financial services provider electronically or in writing within twenty one (21) days from the date the Policy commenced.

10 8 This cooling off right does not apply if you have made or are entitled to make a claim. Even after the cooling off period ends, you still have cancellation rights however your financial services provider may deduct certain amounts from any refund for administration costs or any non-refundable taxes. Privacy All companies in the QBE Group are committed to safeguarding your privacy and the confidentiality of your personal information. QBE collects only that personal information from or about you for the purpose of assessing your application for insurance and administering your insurance policy, including any claim made by you. QBE will only use and disclose your personal information for a purpose you would reasonably expect. We will request your consent for any other purpose. Without this personal information we may not be able to issue insurance cover, administer your insurance or process your claim. Our aim is to always have accurate and up-to-date information. When you receive a Policy Schedule, Certificate of Insurance, Renewal or other document from us, you should contact us if the information is not correct. QBE uses the services of a related company located in the Philippines to provide Call Centre sales and claims handling, accounting and administration services to QBE in Australia. QBE or our authorised agent may collect or disclose your personal information from or to: any person authorised by you; a mail house, records management company or technology services provider (for printing and/or delivery of mail and , including secure storage and management of our records). These companies may be located or the records stored using 'Cloud' technology overseas, including in India, Ireland, USA or the Netherlands; a financier whose name appears on your Policy Schedule (for the purpose of confirming the currency of your Policy or when you have a claim and the insured property is a total loss, to confirm if the financier has a current interest); an organisation that provides you with banking facilities (for the purpose of arranging direct debit or other payment transactions or confirming payments made by you to us); a financial services provider or our agent who is arranging your insurance (for the purpose of confirming your personal and insurance details); another person named as a co-insured on your Policy (for the purpose of confirming if full disclosure has been made to us); another insurer (to obtain confirmation of your no claim bonus or to assess insurance risks or to assist with an investigation); our reinsurer that may be located overseas (for the purpose of seeking recovery from them);

11 9 a dispute resolution organisation such as the Financial Ombudsman Service (for the purpose of resolving disputes between QBE and you or between QBE and a third party); a company to conduct surveys on our behalf for the purpose of improved customer services; and an insurance reference bureau (to record any claims you may make upon us). In addition to the above, in the event of a claim, QBE or our authorised agent may disclose your personal information: to a repairer or supplier (for the purpose of repairing or replacing your insured items); to an investigator, assessor (for the purpose of investigating or assessing your claim); to a lawyer or recovery agent (for the purpose of defending an action by a third party against you or recovering our costs including your excess or seeking a legal opinion regarding the acceptance of a claim); to a witness to a claim (for the purpose of obtaining a witness statement); to another party to a claim (for the purpose of obtaining a statement from them or seeking recovery from them or to defend an action by a third party). Personal information (about you) may also be obtained from the above people or organisations. In addition we will: give you the opportunity to find out what personal information we hold about you and when necessary, correct any errors in this information. Generally we will do this without restriction or charge; and provide our dispute resolution procedures to you, should you wish to complain about how we handle your personal information. To obtain further information about our Privacy Policy or to request access to or correct your personal information, please compliance.manager@qbe.com. To make a complaint complaints@qbe.com. The General Insurance Code of Practice QBE Insurance (Australia) Limited is a signatory to the General Insurance Code of Practice. The Code aims to: promote more informed relations between insurers and their customers; improve consumer confidence in the general insurance industry;

12 10 provide better mechanisms for the resolution of complaints and disputes between insurers and their customers; and commit insurers and the professionals they rely upon to higher standards of customer service. Dispute resolution We will do everything possible to provide a quality service to you. However, we recognise that occasionally there may be some aspect of our service or a decision we have made that you wish to query or draw to our attention. We have a complaints and dispute resolution procedure which undertakes to provide an answer to your complaint within fifteen (15) working days. If you would like to make a complaint or access our internal dispute resolution service please contact your nearest QBE office and ask to speak to a dispute resolution specialist. If you are not happy with our answer, or we have taken more than fifteen (15) working days to respond, you may take your complaint to the Financial Ombudsman Service (FOS), an ASIC approved external dispute resolution body. FOS resolves certain insurance disputes between consumers and insurers and will provide an independent review at no cost to you. QBE is bound by the determination of FOS but the determination is not binding on you. Financial claims scheme This Policy is a protected policy under the Financial Claims Scheme (FCS), which protects certain insureds and claimants in the event of an insurer becoming insolvent. In the unlikely event of QBE becoming insolvent you may be entitled to access the FCS, provided you meet the eligibility criteria. More information may be obtained from APRA - or Policy Wording This Policy is underwritten by QBE Insurance (Australia) Limited ABN , AFS Licence No of 82 Pitt Street, Sydney NSW Our agreement with you This Policy is a legal contract between you and us. You pay us the premium and we provide you with the cover you have chosen as set out in the Policy, occurring during the period of insurance shown on your Policy Schedule or any renewal period.

13 11 The limits of cover applying to the cover selected by you and the amount of any excess that applies to your Policy, is shown on your Policy Schedule. Your Policy Your Policy consists of the Policy Wording in this booklet and the Policy Schedule we give you. Please keep them in a safe place for future reference. Please check the Policy Schedule details to ensure it accurately states what you have insured. Be sure to check that the sum insured for the various areas of cover are adequate. If you need any further information about any part of your Policy, please ask us or your financial services provider. Providing proof So that your claim can be assessed quickly you should keep the following: receipts or other confirmation of purchase; valuations; and photographs of items in the home. We may ask you for these if you make a claim. You must be able to prove to us that you have suffered a loss that is covered by this Policy before we will pay you for it. Other party's interest You must tell us of the interest of all parties (e.g. financiers, lessors or owners) who will be covered by this insurance. We will protect their interests only if you have told us about them and we have noted them on your Policy Schedule. Paying your premium You can pay your premium: in one (1) annual payment to your appointed financial services provider according to their business practices, or in monthly instalments by direct debit from your credit card or from your account with your financial institution which facility can be arranged by your financial services provider. Overdue premium You must pay your premium on time otherwise your Policy may not operate.

14 12 Paying your annual premium You must pay your annual premium by the due date to your financial services provider. If your premium is unpaid by this date or your payment is dishonoured this Policy will not operate and there will be no cover. Paying your instalment premium If you are paying your premium for the first time by instalments we will deduct instalments each month on the day of the month that you nominate as your payment date. If you are renewing your Policy and you paid your previous Policy by instalments, we will continue to deduct instalments for your renewed Policy on the day of the month you previously nominated as your payment date, unless you tell us otherwise. If you have nominated the 29th, 30th or 31st of the month as your payment date, we will deduct your instalment payment on the next day if those dates don t occur in a month. Details of your instalments are shown on your Policy Schedule. If your first instalment of premium when you take out your Policy or renew it is dishonoured, this Policy will not operate and there will be no cover. We will not pay a claim under this Policy if, at the time the claim occurred, any instalment of premium has remained unpaid for fourteen (14) days or more. If any instalment of premium has remained unpaid for 1 month, we may cancel this Policy. We will send you a notice giving you details of the action we intend to take and when any cancellation will become effective. We are entitled to deduct from any amount we pay you under a claim any unpaid premium or instalment of premium. If you are paying your premium in instalments by direct debit from your credit card or financial institution account, you must tell us if those details change. You must do this no later than seven (7) days before your next instalment is due. Preventing our right of recovery If you have agreed not to seek compensation from another person who is liable to compensate you for any loss, damage or liability which is covered by this Policy, we will not cover you under this Policy for that loss, damage or liability.

15 13 A claim may be refused We may refuse to pay or reduce the amount we pay under a claim if you do not comply with the Policy conditions, if you do not comply with your duty of disclosure, or if you make a fraudulent claim. Words with special meanings Some key words and terms used in this Policy have a special meaning. If words and terms are only used in one (1) section of the Policy, we will describe their special meaning in that section. Wherever the following words or terms are used in the Policy, they mean what is set out below: Word or expression Excess Flood Negotiable instruments Occupied Meaning the first amount of any claim, which is your responsibility to contribute. We deduct the Excess shown in the Policy Schedule or PDS from the amount of your claim. When a sub-limit is applicable, the Excess will be applied to the claim prior to applying the sub-limit. the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following: (a) a lake (whether or not it has been altered or modified); (b) a river (whether or not it has been altered or modified); (c) a creek (whether or not it has been altered or modified); (d) another natural watercourse (whether or not it has been altered or modified); (e) a reservoir; (f) a canal; (g) a dam. treasury notes, savings certificates, stamps, money orders, gift certificates and any other negotiable instruments. the home is furnished such that it is comfortably habitable and you, your family or someone with your consent has resided in the home overnight. To be occupied the home must: contain at least one usable bed/mattress,

16 14 Word or expression Meaning contain at least one dining table or bench, a chair and some other furniture, contain a functioning refrigerator, be connected to the electricity supply, and be connected to hot and cold running water. Period of insurance Policy Schedule Site We, our, us Your family You, your The period shown in the current Policy Schedule. the document we give you which sets out the details of your cover which are personal to you. It forms parts of the Policy. It shows the cover and any options that you have selected. When your Policy is changed or renewed, we will give you a new Policy Schedule. The information on your Policy Schedule can modify the terms set out in this Policy. the address shown on your Policy Schedule where your home is located or your contents are kept. QBE Insurance (Australia) Limited, ABN any member of your family who lives permanently with you, including your partner. the person(s), companies or firms named on the current Policy Schedule as the Insured. Section 1: What Home and Contents mean Home Your Policy Schedule indicates whether your home is insured and the sum insured. What Home means Your Home is the dwelling used entirely or primarily as a place of residence at the site shown on the Policy Schedule. Home includes the following: (a) outbuildings, fixtures and structural improvements including in-ground swimming pools, tennis courts, in-ground spas, saunas,

17 15 (b) (c) (d) a fixed solar photovoltaic or hot water system, jetties and pontoons all of which are used for domestic purposes; fixed light fittings, fixed wall coverings, fixed ceiling coverings and fixed floor coverings; services (whether underground or not) that are your property or which you are liable to repair or replace or pay the cost of their repair or replacement; landscaping, paved pathways and paved driveways, retaining walls, fences and gates entirely or partly on the site. What Home does not mean Home does not include: (a) (b) (c) (d) (e) (f) (g) (h) carpets (whether fixed or not), curtains or internal blinds; earth or gravel pathways or driveways or other unpaved surfaces; a hotel, motel, nursing home or boarding house, buildings of flats or caravan (whether fixed to the site or not), unless this is expressly endorsed on your Policy Schedule, strata title, company title or community units with respect to insuring the building, however we will insure contents contained within these units, any building used for any business or trade, except a dwelling used principally as a place of residence that also contains an office or surgery, a building in the course of construction, a building in the course of being demolished, or that is vacant pending demolition, a temporary building or structure, trees, shrubs and any other plant life including grass or lawns, or soil, sand, gravel, bark or mulch. Contents Your Policy Schedule indicates whether your contents are insured and the sums insured. The total contents sum insured consists of: a sum insured for unspecified contents, and a sum insured for specified contents. Specified contents are items of particular value that you have individually listed as specified items and that are listed on the Policy Schedule under Contents, specified items.

18 16 What Contents means Contents means, items (a) to (g) below, while they are at the site, and which belong to you or your family or for whose loss or damage you or your family are legally liable. Contents are: (a) (b) (c) (d) (e) (f) all household goods (including carpets whether fixed or not), personal effects, cash, coins and negotiables, articles of special value which you have listed on the Policy Schedule under contents specified items, if you live in a strata title building, the internal paint work, wallpaper and any fixture or structural improvement within or attached to that residence which the Body Corporate is not required by law to insure, if you are a tenant, landlord s fixtures and fittings for which you are legally liable and fixtures and fittings installed by you for your own use, any of the following equipment if it does not require registration: golf buggies; motorcycles up to 125cc engine capacity; garden equipment; or motorised wheelchairs canoes, kayaks, surfboards, surfskis or sailboards, and any other watercraft up to: four (4) metres in length, and ten (10) horsepower. This means that if the watercraft is not a canoe, kayak, surfboard, surf-ski or sailboard and it is either longer than 4 metres, or, is powered by a motor or engine that is greater than ten (10) horsepower, it is not covered. A watercraft motor: no more than ten (10) horsepower, and not attached to a watercraft, and at the site, will be treated by us as a watercraft accessory. If it is over ten (10) horsepower, it is not covered by this Policy (g) furniture and equipment of an office or surgery used by you or your family in your own business in the home and tools and equipment used for earning income by you or your family.

19 17 What 'Contents' does not mean Contents does not include: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) fish, birds or animals of any description; trees, shrubs and any other plant life including grass or lawns, or soil, bark or mulch (other than pot plants); any caravan or trailer; motorised vehicles other than those listed in point (e) under the heading What contents means ; watercraft other than those listed in point (f) under the heading What contents means ; aircraft or their accessories (other than a non-pilotable model aircraft); accessories or spare parts, keys or remote locking or alarm devices of motor vehicles (including motorcycles and motor scooters), caravans, trailers, aircraft or watercraft while they are in or on the motor vehicle, caravan, trailer, aircraft or watercraft; photographic and video equipment and musical instruments or musical equipment used for earning any income; any property: illegally in your possession, stored in a dangerous and illegal way, or any equipment connected with growing or creating any illegal substance, commercial or retail trade stock other than business stock temporarily stored inside the home for a maximum period of thirty (30) days; your home or any part of your home.

20 18 Section 2: Cover for your Home & Contents Accidental damage What you are insured against, and what you are not You are insured against malicious damage, accidental loss or damage (including the specified events listed below) to your home, contents or both at the site during the period of insurance. There is also some extended cover provided for your contents under Additional benefit 1 - Cover for Contents when away from the site, for when your contents are away from the site. Specified events Specified events means loss or damage directly caused by the following Events (a) to (r): (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) fire, lightning, thunderbolt, explosion, Implosion, earthquake or tsunami. 'Tsunami' means a sea wave caused by a disturbance of the ocean floor or by seismic movement, subterranean fire, volcanic eruption, impact ( impact means a collision of two or more objects), aircraft and/or other aerial devices and/or articles dropped from them, sonic boom, theft, breakage of glass, the acts of persons taking part in riots or civil commotion or of strikes or of locked-out workers or of persons taking part in labour disturbances which do not assume the proportions of or amount to an uprising, falling objects, water and/or other liquids and/or substances discharged and/or overflowing and/or leaking from any apparatus and/or appliance and/or pipes, storm, tempest, rainwater, flood, wind, hail, tornado, cyclone or hurricane, freeze or weight of snow, power surge. You are not insured against loss or damage caused by tenants or tenant s visitors or a tenant s family.

21 19 Whether you have selected cover for your home, contents or both is shown on your Policy Schedule. There are some limits and exclusions described under How much we will pay and When you are not covered, which you must read. In addition, you are insured for loss or damage to your home, contents or both at the site, caused directly by any of the events set out in the left column of the following table (except to the extent indicated in the right column of the table). You are insured against (a) Fusion of an electric motor: Fusion is the process of fusing or melting together of the windings of an electric motor following damage to their insulating material as a result of overheating caused by an electric current. We will pay the cost of rewinding the motor, or at our option, replacing it. For refrigerators and air conditioning units, we pay for the replacement of refrigerant gas and refrigerant driers, only if replacement of the refrigerant gas or drier is made necessary because of the fusion. But not Motors more than fifteen (15) years from the date of purchase when new or more than fifteen (15) years from the date of rewinding. The cost of repair or replacement of additional parts or service items, including worn or broken bearings or switches. Leakage of refrigerant gas and maintenance of refrigerant driers. Lighting elements (for example, light bulbs or fluorescent tubes or heating elements, solenoids, fuses or protective devices (for example a fuse or circuit breaker). Electrical contact points where sparking or arcing occurs during ordinary use. The cost of retrieving, removing or replacing the pump section of pool or pressure pumps or the cost of retrieving submersible pumps or their driving motors. Electronic controllers or other electronics. (b) Spoilage of food If this Policy insures your contents, we also pay for spoilage of food or legally prescribed pharmaceutical drugs that require Spoilage as a result of: Strikes switching off or disconnecting the electricity supply.

22 20 You are insured against But not refrigeration in domestic refrigerators or freezers at the site caused by: breakdown of the refrigerator or freezer failure of the electricity supply to the home. (c) Erosion, subsidence, landslide or earth movement but only if it is directly as a result of one (1) of the following Specified events (d) explosion (f) earthquake or tsunami (p) water and/or other liquid discharged (q) storm, tempest or flood. and it occurs no more than seventy two (72) hours after the insured event. Any other erosion, subsidence, landslide or earth movement. How we will pay Home (a) At our option we: repair the home, or replace the home to a condition substantially the same as, but not better than when new, or pay the reasonable cost of its repair or replacement to a condition substantially the same as when new, or pay up to the sum insured shown on your Policy Schedule. If your home is damaged beyond economic repair, we will pay no more than the reasonable cost of replacement when new even if you have insured for an amount greater than the reasonable cost of replacement when new. When we pay your claim for your home being damaged beyond economic repair, the Policy is exhausted and comes to an end.

23 21 Special benefit - Home sum insured safeguard If we agree that the cost to repair or replace your home is greater than your home sum insured, then we will pay up to 30% more than your home sum insured to, at our option: repair the home, or replace the home to a condition substantially the same as, but not better than when new, or pay the reasonable cost of its repair or replacement to a condition substantially the same as when new. This Special benefit applies only if: (A) (B) (C) this Policy insures your home, and your home is so damaged by an event that is insured by this Policy that it is considered by us to be a total loss, and the cost to repair or replace your home is greater than your home sum insured because either, (i) the increased cost of repairing damage to your home was caused directly by a Catastrophic event, or (ii) you correctly used the QBE Home Building Sum Insured calculator on the QBE Website located at to calculate your home sum insured and the calculator estimated an inadequate sum insured for your home, provided; that you can demonstrate that you correctly used the QBE Home sum insured calculator to determine your home sum insured, and your home is substantially the same as when you used the QBE Home sum insured calculator (for example, you have not added to nor extended your home), and you have not reduced any sum insured that we have offered on any renewal invitation since you used the QBE Home sum insured calculator. Catastrophic event means a suddenly occurring, major, natural disaster that is insured by this policy, where the resultant damage to property in the vicinity of your home and generally is so extensive and widespread that the resultant surge in demand for the materials and labour required to repair buildings causes a surge in the prices of building repairs. This Special benefit only relates to the home. It does not apply to any other insured property, Policy section, additional benefit or other Policy feature. (b) You may choose to have the home replaced at another site, but we do not pay more than the sum insured.

24 22 (c) (d) If your home is damaged beyond economic repair and you do not commence rebuilding within six (6) months of the damage occurring, (or any other period which we agree with you in writing) you may have to pay any increase in cost caused by your delay. If part of your home is damaged and we agree to pay your claim, we pay only for the part or parts of the home that actually sustained damage. We do not pay to replace any undamaged materials. However, if: it is impossible to acquire new material to replace the damaged material that reasonably matches the undamaged portion to a similar extent as immediately prior to the damage occurring, and the amount of damaged material that cannot be matched to the undamaged material is more than 40% of the total material that would have to be replaced if all the matching damaged and undamaged material was replaced, then we will replace both the damaged and undamaged material. Example 1 There are 300 matching white, wall tiles in the bathroom. As a result of a burst pipe, eight (8) bathroom wall tiles are damaged. We would pay only the reasonable cost to repair or replace the 8 damaged tiles to a condition substantially the same as when new. (In addition, we would pay for damage sustained in locating the leak-additional benefit 27). Example 2 There are 300 superseded, matching, wall tiles in the bathroom. As a result of a burst pipe, 140 wall tiles are damaged. It is impossible to locate tiles that reasonably match the remaining 160 tiles. Over 40% of the matching wall tiles have been damaged. Therefore, we would pay the reasonable cost to repair or replace all 300 tiles (140 damaged and 160 undamaged) to a condition substantially the same as when new. We would be entitled to keep the 160 undamaged wall tiles by way of salvage. We would not pay to replace any tiles located in a room other than where the loss or damage occurred.

25 23 (e) Where materials that are required to settle a claim that we agree to pay are not commercially available in Australia, at our option, we: replace the materials with the nearest equivalent or similar new materials available in Australia or overseas, or pay the cost to replace the materials with the nearest equivalent or similar new materials available in Australia or overseas. Contents (a) At our option we: repair the damaged items, or replace the items with items substantially the same as, but not better than when new, or pay the reasonable cost of repair or reinstatement to a condition substantially the same as, but not better than when new, or pay up to the sum insured shown on your Policy Schedule. If your contents are damaged beyond economic repair, we will pay no more than the reasonable cost of replacement when new even if you have insured them for an amount greater than the reasonable cost of replacement when new. When we pay your claim for all your contents being damaged beyond economic repair, the Policy is exhausted and comes to an end. We will not pay more than the total contents sum insured for all contents lost or damaged. (b) (c) (d) (e) If we agree to pay a claim where film, photos, home movies or home videos or any similar recorded material is destroyed, we pay for the replacement with new, blank film, videos or similar (e.g. If a compact disc upon which you had photos stored is destroyed, we would replace it with a new, blank compact disc). We do not pay to reconstruct any circumstances or conditions. If we agree to pay a claim where software is lost, damaged or destroyed, we pay the cost to replace it with the nearest equivalent new software. We do not pay for any software that was acquired by you at no cost. Where an item required to settle a claim that we agree to pay is not commercially available in Australia, at our option, we: replace the item with the nearest equivalent or similar new item available in Australia or overseas, or pay the cost to replace the item with the nearest equivalent or similar new item available in Australia or overseas. The maximum we pay on the following contents items is shown in the table below. You may obtain higher limits for (a), (b), (c), (f) or (g) (except for cash) by having any of these items specified on your Policy Schedule. Additional conditions may be imposed, for example, it may be required to keep items in a safe when not being used. We will pay up to the amount specified for each item.

26 24 Contents where a maximum limit applies Maximum limit (a) (b) (c) (d) (e) (f) (g) Works of art, pictures, tapestries, rugs Items of jewellery, gold or silver articles, furs, watches Collections of any kind Office or surgical equipment used by you or your family in your or their own business in the home Other equipment used by you or your family for earning income Accessories, or spare parts of motor vehicles (including motor cycles and motor scooters), caravans, trailers and watercraft, not in or on the motor vehicle, caravan, trailer or watercraft. We include motor vehicle keys, remote locking or alarm devices as accessories while they are not in or on the motor vehicle, but we do not pay for any recoding of devices or changing of vehicle locks Cash, coins, negotiable instruments or bullion $25,000 per item and in total 25% of the sum insured for unspecified contents $5,000 per item and in total 25% of the sum insured for unspecified contents $20,000 per collection and in total 25% of the sum insured for unspecified contents $25,000 in total $7,500 in total including a maximum of $2,000 for business stock temporarily stored inside the home for a maximum period of thirty (30) days $2,000 per item up to $4,000 in total $1,500 in total

27 25 Note: Where an item could be classified under more than one (1) of the above Maximum limits, (a) through to (g), the lower or lowest limit applies. For example, a piece of gold jewellery may be considered to be a work of art, however the jewellery sub-limit would be applied. If we choose to pay to replace a specified item, we will pay no more than the amount that it would cost us to replace the item with an item substantially the same as, but not better than when new, even if you have specified the item for a higher amount, whether or not you have supplied a valuation. We have negotiated special arrangements with various suppliers to purchase items for less than retail cost. Premiums are therefore based upon us replacing items at less than retail cost. Antiques Where we pay a claim for an antique item, and the market value of the item exceeds the cost of its replacement with a new item because of its antiquity and rarity, we will treat the market value as though it is the cost to replace the lost or damaged antique with a new item. For example: An antique sterling silver claret jug created in 1880 is stolen and we agree to pay the claim. The antique jug has a current valuation for $11,000. To replace the item with the closest, similar new item would cost $2,100. At the time of the loss, our enquiries indicate that to replace that antique item at market value would be approximately $11,000 but there is no equivalent item currently for sale in Australia or overseas. The market value of the item is higher than the new replacement cost due to the item s antiquity and rarity. In this instance, we would pay you $11,000 for the jug rather than $2,100. The sum we pay you would be subject to any applicable excess. (f) (g) Floor and wall coverings, blinds and curtains For wall coverings, and carpets and other floor coverings, curtains and internal blinds, we pay only for items in the room, hall or passage, where the damage occurred. Pairs and sets A pair or set means two (2) or more articles the collective value of which exceeds the sum of their individual values. If any item lost or damaged is part of a pair or set, we pay no more than the actual value of the item. We do not give any allowance for any special value it may have as forming part of a pair or set, or for any reduction in value of the remaining part or parts.

28 26 Section 3: Cover for your Legal Liability What you are covered against If this Policy covers your home If this Policy covers your home or, if the home is a strata titled residence and your contents are insured under this Policy, we insure you and any member of your family against any claim for compensation or expenses which you or the member of your family become legally liable to pay for: (a) (b) the death of, or bodily injury to, any person, the loss of, or damage to, property, resulting from an occurrence during the period of insurance, arising out of the ownership of the home or occupancy of the home. In this section we include land, trees, shrubs and other plant life on the site as part of your home. If this Policy covers your contents If this Policy covers your contents and, the home is your primary residence, we insure you and any member of your family against any claim for compensation or expenses which you or the member of your family become legally liable to pay for: (a) (b) the death of, or bodily injury to, any person, the loss of, or damage to, property, resulting from an occurrence during the period of insurance, anywhere in the world that is not related to the ownership of your home. An occurrence includes continuous or repeated exposure to substantially the same general conditions. We regard all death, bodily injury or loss or damage to property arising from one (1) original source or cause as one (1) occurrence.

29 27 Additional benefits Liability The Motor vehicle liability and Committee member of a social or sporting club additional benefits apply only when you occupy the home insured by this Policy as your primary residence or this Policy insures your contents in your primary residence. Motor vehicle liability What we insure you against: (a) We insure you and any member of your family against any claim for compensation or expenses which you or the member of your family become legally liable to pay for: the death of, or bodily injury to, any person; the loss of, or damage to, property; arising from the ownership, custody, or use of: any vehicle which is a type that is not required to be registered by law; any motorised wheelchair; any domestic trailer not attached to any vehicle; resulting from an occurrence during the period of insurance. (b) We also insure you or any member of your family against claims for: death or bodily injury caused by you or your family solely as a result of you or your family being passengers in a registered vehicle; death or bodily injury caused by any registered vehicle if the occurrence causing the death or bodily injury takes place at the site; during the period of insurance. When we do not insure you or your family We do not insure you or your family: (a) (b) if you or your family are entitled to be wholly or partly insured by any compulsory statutory insurance or accident compensation scheme, or would have been, but for failure to register the vehicle or to apply for cover under the scheme or to comply with a term or condition of the scheme, if you or your family are entitled to be wholly or partly protected by any other Policy of insurance which specifically covers the vehicle (except where this exclusion would contravene s.45 of the Insurance Contracts Act 1984 (Cth)).

30 28 Committee member of a social or sporting club What we insure you against: We insure you and any member of your family against any claim for compensation or expenses which you or the member of your family become legally liable in Australia to pay for an alleged or actual act or omission arising out of your position as a committee member of a sporting club or social club. We will not pay if you receive any payment or remuneration of any kind for holding the position. The most that we will pay under this additional benefit in any one (1) period of insurance is $10,000. We do not insure you or your family against liabilities arising from: (a) (b) any act or omission for which you or your family receive reimbursement from the sporting or social club, or any act or omission which is committed or alleged to have been committed prior to the period of insurance commencing or after it has ended. Liability cover for the site continues following a home total loss If your home is a total loss as the result of an insured event and your home Policy comes to an end, we will continue to provide you with this liability cover in relation to the site that your home formerly occupied until the earliest of; any construction commencing at the site, the sale of the site or any part of it, another Policy that includes liability cover being taken out in relation to the site, the commencement of construction of a home to replace the insured home at another site, or six (6) months from the date of the damage that caused the total loss.