CONTENTS. Date of preparation: 2nd October 2013 Date effective: 14th December 2013 QM

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3 1 CONTENTS Introduction About this booklet Updating our PDS About QBE Australia About Defence Service Homes Insurance Important Information Duty of disclosure Privacy promise Significant risks The cost of this Policy Keep receipts How to make a claim The General Insurance Code of Practice Cooling off information Dispute resolution Financial claims scheme Policy Wording Our agreement with you Your Policy Paying your premium Other party's interests A claim may be refused Providing proof Changing your Policy Cancelling your Policy Words with special meaning Section 1: What Contents means Date of preparation: 2nd October 2013 Date effective: 14th December 2013 QM

4 2 What contents means What contents does not mean Section 2: Cover for your Contents Insured Events What you are insured against, and what you are not 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 Section 4: Additional benefits Section 5: Options you can choose for additional premium 1. Valuables 2. Domestic Workers' Compensation 3. Accidental damage extension for your contents in the home Section 6: What you must pay if you make a claim Excess Section 7: When you are not covered General exclusions applying to this Policy Additional exclusions applying to this Policy Section 8: General Conditions Other interests Changes to your circumstances Unoccupancy Salvage Burglary protection Care and maintenance Adjustment of premium on renewal Section 9: Claims

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, please contact your financial services provider. 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 PDS 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

6 4 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. 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. About Defence Service Homes Insurance Defence Service Homes Insurance has a strong heritage and has been insuring homes of Australian Veterans for over 90 years. Defence Service Homes Insurance understands the needs of homeowners and has developed a contents insurance policy which complements its own home building insurance policy.

7 5 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.

8 6 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;

9 7 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; 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. Privacy promise 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.

10 8 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); 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);

11 9 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.

12 10 Significant risks Your sum insured may not be adequate The Policy provides replacement or reinstatement conditions for 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 contents on a new for old basis. The sums insured that you select must make allowance for GST and any additional benefits that are included in the sum insured such as removal of debris. 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. 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. 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.

13 11 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 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 or flood cover. Keep receipts You should keep receipts, invoices or other evidence of ownership and value of all property that you insure because if you make a claim you will be asked to prove ownership and value in order for us to pay the claim. 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.

14 12 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; 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. 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. 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. 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

15 13 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

16 14 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. 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. 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.

17 15 Overdue premium You must pay your premium on time otherwise your Policy may not operate. 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.

18 16 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. Other party's interests 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. 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. 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. Changing your Policy If you want to make a change to this Policy, the change becomes effective when: we agree to it; and we give you a new Policy Schedule detailing the change.

19 17 Cancelling your Policy How you may cancel this policy You may cancel this policy at any time by telling us in writing that you want to cancel it. Where you involves more than one person, we will only cancel the policy when a written agreement to cancel the policy is received from all persons named as the insured. How we may cancel your policy We may cancel this policy in any of the circumstances permitted by law (e.g. failure to pay the premium by the due date) by informing you in writing We will give you notice in person or send it to your address (including an electronic address) last known to us. Where you have paid your premium in advance of the date you wish to cancel from, we will refund to you the proportion of the premium for the remaining period of insurance. Unless directed otherwise by all insured, the refund will be made payable to all insured. Notices Any notice we give you will be in writing, and it will be effective: If it is delivered to you personally; or It is delivered to you at your address (including an electronic address) last known to us. It is important for you to tell us of any change of address as soon as possible. Words with special meaning 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.

20 18 Wherever the following words or terms are used in the Policy, they mean what is set out below: Word or expression Excess Flood Home Negotiables 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. the dwelling used entirely or primarily as a place of residence at the site shown on the Policy Schedule but does not include a hotel, motel, nursing home, boarding house, caravan (whether fixed to the site or not) or any building used for any business or trade, except for a dwelling used principally for as a place of residence that is also used as an office or surgery. 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.

21 19 Word or expression Meaning To be occupied the home must: contain at least one usable bed/mattress, contain at least one dining table or bench, a chair and some other furniture, contain a functioning refrigerator, be connected to the electricity, and be connected to hot and cold running water. Open air is restricted to the site and includes: any area without a fixed covering such as a ceiling or roof that entirely covers a fully enclosed and lockable area or lockable structure, and non lockable parts of the home. For example, the back yard would be considered the open air even if it is surrounded by a fence and has locked gates because it has no roof or ceiling. It also means in or on a motor vehicle, motor cycle, trailer or caravan, at the site whether those vehicles are locked or not, unless the vehicle is in a fully enclosed, locked, private, structure; for example your own garage to which no-one else has access. Period of insurance Policy Schedule The period shown in the Policy Schedule that is in force. 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

22 20 Word or expression Meaning your Policy is changed or renewed, we will give you a new Policy schedule. The information on your schedule can modify the terms set out in this Policy. Site We, our, us Your family You, your The address shown on your Policy Schedule where 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 Contents means 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. 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.

23 21 Contents are: (a) (b) (c) (d) (e) (f) all household goods (including carpets whether fixed or not), personal effects, cash, coins and negotiables. Negotiables means treasury notes, savings certificates, stamps, money orders, gift certificates and any other negotiable instruments, 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 paintwork, 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, motorised wheelchairs or any of the following equipment if it does not require registration: golf buggies, motorcycles up to 125cc engine capacity, garden equipment. canoes, kayaks, surfboards, surfskis or sailboards, and any other watercraft up to: four (4) metres (which is approximately thirteen (13) feet) 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 four (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, at the site,

24 22 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. 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 (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 alarm devices of motor vehicles, (including motorcycles or motorscooters) 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.

25 23 Section 2: Cover for your Contents Insured Events What you are insured against, and what you are not You are insured for loss or damage which occurs to your contents while they are at the site, if caused directly by any of the insured events set out in the left column of the following table (except to the extent indicated in the right column of the table). There are also some limits and exclusions described under How we will pay and When you are not covered, which you must read. Some more extensive cover for contents in your home can be selected if you purchase the 'Accidental damage extension' option under Options you can choose for an additional premium. You are insured against loss or damage caused directly by the following insured events But not (a) (b) Fire, smoke or explosion Storm (including cyclone or hurricane) and/or rainwater, which may be accompanied by snow, sleet or hail Flood The action of the sea, high water, tidal wave, tsunami. Loss or damage to any item caused by scorching, melting, or charring without flames. Any damage that is gradual or recurring, for example, from a fireplace. more than the greater of; $5,000 or 8% of your unspecified contents sum insured, for damage to contents in the open air; but this limit does not apply to spas or above-ground swimming pools that are full.

26 24 You are insured against loss or damage caused directly by the following insured events Tsunami means a sea wave caused by a disturbance of the ocean floor or by seismic movement. But not Please see Words with special meanings for the open air definition. An above-ground swimming pool means one that has most of its water volume above the average ground level of the ground that the pool occupies and its immediate surrounds. Loss or damage caused by: water seeping through a wall or floor, mildew, mould, algae, atmospheric or climatic conditions other than storm, or water entering the home through an opening made for the purpose of alterations, additions, renovations or repair. (c) (d) (e) Lightning or thunderbolt Earthquake All destruction or damage occurring within a period of seventy two (72) hours of the earthquake is regarded as the one insured event. Theft or attempted theft The first $250 for earthquake damage, or the excess amount shown on your Policy Schedule, whichever is greater. Loss or damage caused by: theft by any person who is living at the site unless there is evidence

27 25 You are insured against loss or damage caused directly by the following insured events But not that your home has been entered forcibly and violently, or theft of cash or negotiables, unless there is evidence that your home has been entered forcibly and violently forcible and violent entry does not include: entry through a door or window that has been left open or unlocked; where the home has been entered with the consent of the owner or occupier of the home. More than $1,200 for cash and negotiables (in total for any one theft) but only if there is evidence of forcible and violent entry. More than the greater of: $5,000, or 8% of your unspecified contents sum insured, for damage to contents in the open air. Please see Words with special meanings for the open air definition.

28 26 You are insured against loss or damage caused directly by the following insured events But not (f) (g) (h) (i) Malicious acts Riot or civil commotion Bursting, leaking, discharging or overflowing of fixed basins, shower bases, or other fixed apparatus, fixed tanks or fixed pipes used to hold or carry liquid of any kind. Water suddenly escaping from a waterbed, aquarium or the water catchment tray of a refrigerator. If we accept a claim because damage has occurred as a direct result of the liquid escaping, we will also pay the reasonable costs of locating the cause of the damage, and the costs of reinstating the property damaged or disturbed in the course of work. Impact by: a vehicle, an aircraft or a waterborne craft, Loss or damage intentionally caused by: you, your family, or your family s visitors a tenant, or a tenant s visitors or family. Loss or damage which: occurs gradually over time results from water escaping from a shower base not fitted with a tray or water proof membrane is caused by the porous condition of any tiles, grouting or sealant. We will not pay for repair or replacement of the apparatus, tank or pipe itself. Loss or damage caused by felling or lopping trees at the site

29 27 You are insured against loss or damage caused directly by the following insured events But not space debris or debris from an aircraft, rocket or satellite, an animal, a falling tree or part of a tree, a mast or a television or radio aerial that has broken or collapsed. Impact means a collision of two (2) or more objects. (j) Breakage of glass forming part of an item of furniture, or, domestic telephones, including tinting or shatter-proofing. Damage to any property other than the broken glass set out in the insured event. Any item that is chipped or scratched prior to the breakage. Glass in a picture frame or clock. Glass in television sets, radios, VDUs (Visual Display Units) or any other computer or electrical equipment. Glassware, crystal or ornaments. Mobile cellular telephones. (k) 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 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.

30 28 You are insured against loss or damage caused directly by the following insured events 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 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. (l) Spoilage of food We pay for spoilage of food or legally prescribed pharmaceutical drugs that require 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. Spoilage as a result of: Strikes, switching off or disconnecting the electricity supply.

31 29 You are insured against loss or damage caused directly by the following insured events But not (m) (n) Power surge to domestic appliances or domestic equipment directly caused by an identifiable and verifiable source outside your home including; a lightning strike, an object contacting power lines, the resumption of power following a blackout caused by a storm or unexpected interference with a power company transformer by an animal. Erosion, subsidence, landslide or earth movement but only if it is directly as a result of one of the following insured events; (a) explosion, (b) storm, flood or tsunami (d) earthquake, (h) escaping liquid, and it occurs no more than seventy two (72) hours after the insured event. Domestic appliances or domestic equipment more than fifteen (15) years from the date of purchase when new. Any power surges caused at the site. Any other erosion, subsidence, landslide or earth movement event. (o) Damage caused by animals including birds any damage caused by or resulting from any animal kept at the site,

32 30 You are insured against loss or damage caused directly by the following insured events But not rodents, vermin or insects, (at any stage of their life cycle), any gnawing, chewing, pecking, clawing, scratching or in any way polluting or soiling, your contents in the open air; or any exterior part of your home; or any part of the interior of your home that is not fully enclosed and secured prior to and at the time of damage. By secure we mean that there is no open door, window or screen that allowed the animal to enter; any part of the interior of your home if you or the occupier has knowingly permitted an animal to enter your home. How we will pay (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.

33 31 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 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) (f) 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. 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. Matching décor However, if carpets and other floor coverings, curtains or internal blinds are damaged, and we agree to repair or replace them, and you reasonably need to replace or modify undamaged carpet, floor coverings, curtains or blinds respectively to match the carpets, other floor coverings, curtains or internal blinds that we have repaired or replaced, then we will pay the reasonable costs of replacing or modifying undamaged carpet, floor coverings, curtains or blinds. The most we will pay for each claim, or series of claims arising from one event is $500. You must actually incur the costs of replacing or modifying

34 32 (g) (h) the undamaged carpet, floor covering curtains or blinds before you can claim these costs. 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. The maximum we pay on the following contents items is shown in the table below. You may obtain higher limits for (a), (b), (c) or (f) by having any of these items specified on your Policy Schedule. We will pay up to the amount specified for each item. Contents where a maximum limit applies Maximum limit (a) (b) (c) (d) 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. $20,000 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. $10,000 per collection and in total 25% of the sum insured for unspecified contents. $15,000 in total.

35 33 Contents where a maximum limit applies Maximum limit (e) (f) (g) (h) Other equipment used by you or your family for earning income. Accessories, or spare parts of motor vehicles, 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 re-coding of devices or changing of vehicle locks. Cash, coins, negotiables or bullion. Storm damage to or theft of contents in the open air. Please see Words with special meanings for the Open air definition. $5,000 in total including a maximum of $2,000 for business stock temporarily stored inside the home for a maximum period of thirty (30) days. $1,250 per item up to $2,500 in total. $1,200 in total The greater of: $5,000, or 8% of your unspecified contents sum insured, for damage to contents in the open air; but this limit does not apply to spas or above ground swimming pools that are full.

36 34 Note: Where an item could be classified under more than one of the above maximum limits, (a) through to (h), 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 of $11,000. To replace the item with the closest, similar new item would cost $2,100. At the time of the loss, our inquiries 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.

37 35 Section 3: Cover for your Legal Liability What you are covered against If the home where you keep your contents 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. When we insure your contents kept in your home that is a strata titled 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, or 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 in What home means. 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 original source or cause as one occurrence. Additional benefits Liability These additional benefits apply only when this Policy insures your contents in your primary residence.

38 36 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, or 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, or 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

39 37 where this exclusion would contravene s.45 of the Insurance Contracts Act, 1985). 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 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. What you are not covered against (applies to Legal Liability and Additional benefits - Liability ) When we do not insure you or your family We do not insure you or your family: (a) (b) against any liability caused by or arising directly or indirectly, out of or in connection with the actual or alleged use or presence of asbestos, against fines, penalties, or punitive, aggravated, multiple or exemplary damages.

40 38 We do not insure you or your family against liabilities arising from: (a) (b) (c) (d) (e) (f) (g) any agreement, unless liability would have attached to you or your family if that agreement did not exist or unless the agreement is a lease agreement for your residential tenancy that complies with the relevant Residential Tenancies Act, death of or bodily injury to you or to any person who normally lives with you, In this exclusion we consider that a person normally lives with you, if that person: has lived with you in your home as their primary residence for sixty (60) days or more out of any ninety (90) consecutive day period (irrespective of the commencement date of the Policy) during which there is an occurrence, or has lived with you in your home and intends or intended to use your home as their primary residence for sixty (60) days or more out of any ninety (90) consecutive day period (irrespective of the commencement date of the Policy) during which there is an occurrence. death of or bodily injury to anyone employed by you or by someone who lives with you if the death or injury arises out of their employment, damage to property belonging to you or any person who normally lives with you or to your or their employees, any workers compensation legislation, industrial award or agreement, or statutory accident compensation scheme, he ownership, custody, or use of any lift, aerial device or aircraft (except model aircraft or toy kites), aircraft landing area, boat exceeding four (4) metres in length (except canoes, kayaks, surfboards, surf skis or sailboards) or motorised watercraft in excess of ten (10) horsepower, the conduct of any activity carried on by you or your family for reward except for letting the home for domestic purposes or babysitting on a casual basis. Babysitting cannot be considered to be on a casual basis where: the babysitting is not of a casual nature, any licence or other permission is required by any government body or public authority in order to legally conduct the babysitting,