PRINCIPAL AND SEASONAL RESIDENCE HOMEOWNERS

Transcription

1 PRINCIPAL AND SEASONAL RESIDENCE HOMEOWNERS GOLD PACKAGE FORM AGREEMENT WORDS AND PHRASES IN QUOTATIONS HAVE SPECIAL MEANING AS DEFINED UNDER THE DEFINITIONS SECTION OF THIS FORM We provide the insurance described in this policy in return for payment of the premium as stated on the Policy Declaration Page and subject to the terms and conditions set out. Various provisions in this form restrict coverage. Read the entire form carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words you and your refer to the Named Insured shown on the Declaration Page. The word Insured means any person qualifying as such under the DEFINITIONS section. The words we, us and our refer to the Company or Insurer providing this insurance. This form consists of two sections. SECTION I describes the insurance for your property. SECTION II describes the insurance for your legal liability to others because of bodily injury and property damage, and provides for certain voluntary payments. SECTION I -- PROPERTY COVERAGES The amounts of insurance are shown on the Policy Declaration Page. These amounts include the cost of removing debris of the insured property, or the debris that damaged the property, as the result of an insured peril. If you must remove insured property from your premises to protect it from loss or damage, it is insured by this form for thirty (30) days or until your policy term ends - whichever occurs first. The amount of insurance will be divided in the proportions that the value of the property removed bears to the value of all property at the time of loss. COVERAGE A -- Dwelling Building We insure: 1. The dwelling and attached structures. 2. Permanently installed outdoor equipment on the premises. 3. Outdoor swimming pool and attached equipment on the premises. 4. Materials and supplies located on or adjacent to the premises intended for use in construction, alteration or repair of your dwelling or private structures on the premises. The peril of theft applies only when your dwelling is occupied or completed and ready to be occupied. Tear Out If any walls, ceilings or other parts of insured buildings or structures must be torn apart before water damage from a plumbing, heating, air conditioning or sprinkler system or domestic water container can be repaired we will pay the cost of such repairs. The cost of tearing out and replacing property to repair damage related to outdoor swimming pools or public watermain is not insured. Building Fixtures and Fittings You may apply up to 10 percent of the amount of insurance on your dwelling to insure building fixtures and fittings temporarily removed from the premises for repair or seasonal storage. COVERAGE B -- Detached Private Structures. We insure structures or buildings separated from the dwelling by a clear space, on your premises but not insured under Coverage A. If they are connected to the dwelling by a fence, utility line or similar connection only, they are considered to be detached structures. COVERAGE C -- Personal Property 1. We insure the contents of your dwelling or unit and other personal property you own, wear or use, while on your premises, which is usual to the ownership or maintenance of a dwelling. If you wish, we will include uninsured personal property of others while it is on that portion of your premises which you occupy but we do not insure property of roomers, boarders or tenants who are not related to you. We do not insure loss or damage to motorized vehicles, trailers and aircraft or their equipment (except watercraft, wheelchairs, lawn mowers, gardening equipment, snow blowers or electric powered vehicles as defined including bicycles, children s toys, personal transporters and scooters). Equipment includes audio, visual, recording or transmitting equipment powered by the electrical system of a motor vehicle or aircraft. 2. We insure your personal property while it is temporarily removed from your premises anywhere in the world. We also insure newly acquired personal property in situations where there has not been an opportunity to take such property to your premises. If you wish we will include personal property belonging to others while it is in your possession or belonging to a residence employee travelling for you. This coverage is extended to cover personal property normally kept in a land recreation vehicle you own. This coverage is extended to insure the personal property of students insured by this policy while temporarily residing away from home and in full-time attendance at school, college or university. Personal property stored in a warehouse is only insured for 30 days unless loss or damage is caused by theft. To extend cover in storage for a further period we must be notified in writing and endorse your policy as required. Personal property kept at any other location you own, rent, lease or occupy, except while you are temporarily living there, is not insured (06/2007) BC page 1

2 3. We insure your personal property damaged by change of temperature resulting from physical damage to your dwelling, unit or equipment by an Insured Peril. This only applies to personal property kept in the dwelling or unit. 4. If this insurance is governed by the law of Quebec, the words "personal property" shall, subject to the coverages, exclusions and conditions of this insurance, mean corporeal, moveable property other than the right to property. 5. We insure your personal property that is being moved to another location within Canada which is to be occupied by you as your principal dwelling, the limit of insurance for Personal Property will be divided between the premises, in transit and at the new location on the basis of the percentage of the total value of the property at your premises, in transit and at the new location. This coverage applies only for a period of 30 days from the date you commenced removal. 6. We insure your personal property up to $500 in all, normally kept at your place of business. 7. We will insure up to $10,000 on personal property owned by you or a parent, who is dependent on you or your spouse for support and maintenance, if residing in a nursing home. Special Limits of Insurance We insure: 1. Jewellery, watches, gems, fur garments and garments trimmed with fur up to $6,000 in all; 2. Numismatic property (coin collections) up to $1,000 in all; 3. Manuscripts, stamps and philatelic property (such as stamp collections) up to $2,000 in all; 4. Sound and electronic communication equipment, including radios, tape players/decks, compact disc players, telephones, cellular telephones, CB radios, ham radios, televisions, facsimile machines, computers and items of a similar nature including their tapes, discs and compact discs, up to $500 in all if stolen from an automobile; 5. Bicycles, including their parts, equipment and accessories, for not more than $1,000 any one bicycle; 6. Collectible cards, sports memorabilia and comic collectibles up to $250 any one item with a maximum of $2,000 in all. The above limits do not apply to any claim caused by a Specified Peril. 7. Books, tools and instruments pertaining to a business, profession or occupation for an amount up to $5,000 in all, but only while on your premises. Other business property, including samples and goods held for sale, is not insured; 8. Securities up to $7,500 in all; 9. Money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum, coins, medals and medallions up to $500 in all; 10. Watercraft, their furnishings, equipment, accessories and motors up to $2,000 in all are insured only for Specified Perils and theft or attempted theft. Loss or damage from windstorm or hail is insured if they were inside a fully enclosed building. Canoes and rowboats are also insured while in the open; 11. Garden type tractors including attachments and accessories up to $5,000 in all. COVERAGE D -- Additional Living Expenses The amount of insurance for Coverage D is the total amount payable for any one or a combination of the following coverages. The periods of time stated below are not limited by the expiration of the policy. 1. ADDITIONAL LIVING EXPENSE: If an Insured Peril makes your dwelling or unit unfit for occupancy, or you have to move out while repairs are being made, we insure any necessary increase in living expenses, including moving expenses incurred by you, so that your household can maintain its normal standard of living. Payment shall be for the reasonable time required to repair or rebuild your dwelling or unit or, if you permanently relocate, the reasonable time required for your household to settle elsewhere. 2. FAIR RENTAL VALUE: If an Insured Peril makes that part of the dwelling, detached private structures or unit rented or held for rental by you unfit for occupancy, we insure its Fair Rental Value. Payment shall be for the reasonable time required to repair or replace that part of the dwelling or unit rented or held for rental. Fair Rental Value shall not include any expense that does not continue while that part of the dwelling or unit rented or held for rental is unfit for occupancy. If a civil authority prohibits access to your dwelling or unit as a direct result of damage to neighbouring premises by an Insured Peril under this form, we insure any resulting Additional Living Expense and Fair Rental Value loss for a period not exceeding two weeks. We do not insure the cancellation of a lease or agreement. 1. OUTDOOR TREES, LAWNS, SHRUBS AND PLANTS ADDITIONAL COVERAGES If you are a homeowner you may apply up to 5% of the amount of insurance on your dwelling to trees, lawns, plants and shrubs on your premises. We will not pay more than $500 for any one tree, plant or shrub including debris removal expenses. We will also reimburse you for up to $500 in total for removal of trees due to a peril not covered. We insure these items against loss caused by fire, lightning, explosion, theft, impact by aircraft or land vehicle, riot, vandalism and malicious acts. 2. FIRE DEPARTMENT SERVICE CHARGE We will pay for your liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect your property from an Insured Peril. NOTE: Any deductible specified in the policy does not apply to this coverage. 3. LOCK REPLACEMENT We will pay up to $500 to replace or re-key, at our option, the locks on your principal residence if the keys are stolen during a burglary, robbery or in conjunction with theft of other property. NOTE: Any deductible specified in the policy does not apply to this coverage (06/2007) BC page 2

3 4. REWARD COVERAGE We will pay up to $500 to any individual or organization for information leading to the arrest and conviction of any person(s) who robs, steals, or burglarizes any covered personal property from any insured. We will also pay $1,000 for information which leads to a conviction for arson in connection with a fire loss to property insured by this form. This coverage may increase the amount otherwise applicable, however, the $500 or $1,000 limit will not be increased regardless of the number of persons providing information. NOTE: Any deductible specified in the policy does not apply to this coverage. 5. INFLATION PROTECTION During the term of this policy, we will automatically increase the limit of insurance on your dwelling Building (Coverage A) by an amount which is solely attributable to the inflation increase since the inception date of this policy or the latest renewal or anniversary date. We will also automatically increase the limits of Insurance on your Detached Private Structures (Coverage B), Personal Property (Coverage C) and Additional Living Expenses (Coverage D) by the same proportion. On renewal date, we will automatically increase the limits of insurance shown on the Declaration Page in the same way and adjust the premium. If, at your request, we change the limit of insurance on your Dwelling Building (Coverage A) shown on the Declaration Page, we will apply this Inflation Protection on the changed limits of insurance from the date the change is made. 6. BY-LAW COVERAGE We will pay up to $10,000 for any loss or damage due to any law regulating the zoning, demolition, repair or construction of buildings, resulting from an insured peril. This coverage is limited to repair or replacement of damaged property on the same, or adjacent site. 7. CREDIT CARD, AUTOMATED TELLER CARD, LIBRARY CARD, VIDEO CARD, FORGERY AND COUNTERFEIT MONEY The most we will pay under this coverage is $10,000 during the policy period, except as provided hereunder: (a) your legal obligation to pay because of the theft or unauthorized use of credit cards issued to you or registered in your name provided you have complied with all of the conditions under which the card was issued. (b) loss caused by the theft of your automated teller card, library card or video card provided you have complied with all of the conditions under which the card was issued. (c) loss to you caused by forgery or alteration of cheques, drafts, or other negotiable instruments. (d) loss by your acceptance in good faith of counterfeit Canadian or United States paper currency. We do not cover loss caused by the use of your credit card, automated teller card, library card or video card by a resident of your household or by a person to whom the card has been entrusted. NOTE: Any deductible specified in the policy does not apply to this coverage. 8. FOOD FREEZER CONTENTS We insure foodstuffs while contained in a food freezer located within the dwelling, unit or detached private structure against all risks of direct physical loss of or damage except as hereinafter provided.we do not insure loss or damage caused by: (a) spoilage as a result of accidental or deliberate disconnection of the power supply to the food freezer; (b) improper or faulty wrapping, packing or handling; (c) inherent vice or natural spoilage. You agree to report any loss as soon as practicable to us and, if the food freezer is under warranty, to the person(s) or firm from whom the food freezer was purchased. You also agree to file a detailed sworn proof of loss with us within (60) sixty days of the date of loss. NOTE: Any deductible specified in the policy does not apply to this coverage. 9. SAFETY DEPOSIT BOX We insure up to $10,000 and without reference to any special limits of insurance or deductible, on your personal property kept in a safety deposit box of a bank or trust company, against loss or damage caused by an insured peril. However, insurance afforded in respect of property temporarily removed from your premises does not apply to such a loss or damage 10. MASS EVACUATION We will pay any necessary and reasonable increase in living expense incurred by you while access to your dwelling or unit is prohibited by order of civil authority, but only when such order is given for mass evacuation as a direct result of a sudden and accidental event within Canada or the Continental United States. You are insured for a period not exceeding two (2) weeks from the date of the order of evacuation, subject to the deductible amount shown on the Declaration Page. You are not insured for any claim arising from evacuation resulting from: (a) flood ; (b) earthquake; (c) war, invasion, act of a foreign enemy, declared or undeclared hostilities, civil war, rebellion, revolution, insurrection or military power; (d) loss or damage caused directly or indirectly by any nuclear incident as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear explosion, except for ensuing loss or damage which results directly from fire, lightning or explosion of natural, coal or manufactured gas; (e) loss or damage caused directly or indirectly by contamination by radioactive material; 5154 (06/2007) BC page 3

4 (f) loss or damage or expense caused directly or indirectly, in whole or in part, by chemical, biological and/or radioactive contamination resulting from terrorism or from any activity or decision of a government agency or other entity to prevent, respond to or terminate terrorism. This exclusion applies regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage or expense. 11. IDENTITY THEFT We will pay for your identity fraud expenses arising directly from an act of identity fraud committed against you provided that you first became aware of the occurrence of identity fraud during the policy period. Coverage is limited to: (a) The cost of notarizing fraud affidavits or similar documents for government and law enforcement agencies, financial institutions or similar credit grantors or credit agencies that have required that such affidavits be notarized; (b) The costs for certified mail to government and law enforcement agencies, credit agencies, financial institutions or similar credit grantors; (c) Lost wages as a result of time taken off from work to meet with, or talk to, government and law enforcement agencies, credit agencies and/or legal counselors to complete fraud affidavits. The maximum payment for lost wages is $500 per week of net earnings up to a maximum payout of $2000 of net earnings. This coverage does not increase the maximum aggregate limit of $10,000; (d) Loan application fees for re-applying for loan(s) due to the rejection of the original application based solely on the lender receiving incorrect information resulting from an act of identity fraud committed against you; (e) Reasonable legal counsel fees incurred directly as a result of an occurrence with prior notice to us for: (i) Defense of lawsuits brought against the insured person by merchants or their collection agencies; (ii) The removal of any criminal or civil judgments wrongly entered against an insured person, and (iii) Challenging the accuracy or completeness of any information in a customer credit report. (f) Reasonable Charges incurred for long distance telephone calls or fax transmissions to merchants, government and law enforcement agencies, financial institutions or similar credit grantors or credit agencies to report or discuss an actual identify fraud; (g) The services performed by a firm authorized by the Insured to assist him/her in reporting and addressing the effects of identity theft. A maximum aggregate limit of $10,000 applies for all identity fraud expense claims within a single policy period. We are responsible only for the amount by which the identity fraud loss exceeds the amount of the deductible shown on the Policy Declaration Page in any one identity fraud occurrence. You agree to: (a) Notify an applicable law enforcement agency in writing in the event of a loss pertaining to identity fraud. (b) Notify The Economical Insurance Group within thirty (30) days of becoming aware of the identity fraud. (c) Assume responsibility for contacting the relevant financial institutions to remove a hold on your credit card or to cancel a personal card, which includes compliance under all of the conditions of the card s agreement. We do not insure the following: (a) Expenses incurred due to any fraudulent, dishonest or criminal act by an insured person, or by any person acting with the insured person, or by any authorized representative of an insured person, whether acting alone or in collusion with others. (b) This coverage does not apply to losses covered under the Credit/Bank Card, Video/Library Card, Forgery And Counterfeit Money coverage provided by your habitational policy. (c) Any identity fraud expenses that are covered by other insurance or that are recoverable from any other sources. (d) Any identity fraud expenses arising out of the business pursuits of the insured. INSURED PERILS You are insured against risks of direct physical loss or damage subject to the exclusions and conditions in this form. Loss or Damage Not Insured We do not insure: 1. lawns or items grown for commercial purposes; 2. buildings, units or detached private structures used in whole or in part for business or farming purposes unless declared on the Declaration Page ; 3. sporting equipment where the loss or damage is due to its use; 4. contact lenses unless the loss or damage is caused by a Specified Peril, earthquake, accident to a land vehicle, watercraft or aircraft, or theft or attempted theft; 5. animals, birds or fish unless the loss or damage is caused by a Specified Peril other than impact by aircraft or land vehicle; 6. property at any fairground, exhibition or exposition for the purpose of exhibition; 7. any property illegally imported, acquired, kept, stored or transported, or property subject to forfeiture; 8. books of account and evidences of debt or title; 9. any property lawfully seized or confiscated unless such property is destroyed to prevent the spread of fire; 10. losses or increased costs of repair due to operation of any law regulating the zoning, demolition, repair or construction of buildings and their related services; 11. marring or scratching of any property or breakage of any fragile or brittle articles unless caused by a Specified Peril, watercraft or aircraft, or theft or attempted theft; 12. wear and tear, deterioration, defect or mechanical breakdown, rust or corrosion, extremes of temperature, wet or dry rot, fungi or spores, and contamination; 13. the cost of making good, faulty material or workmanship; 14. settling, expansion, contraction, moving, bulging, buckling or cracking except resulting damage to building glass; We do not insure loss or damage: 15. occurring after your dwelling has, to your knowledge, been vacant for more than 30 consecutive days; 16. caused directly or indirectly by: (a) any nuclear incident as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear explosion, except for ensuing loss or damage which results directly from fire, lightning or explosion of natural, coal or manufactured gas; 5154 (06/2007) BC page 4

5 (b) by contamination by radioactive material; 17. caused by war, invasion, act of a foreign enemy, declared or undeclared hostilities, civil war, rebellion, revolution, insurrection or military power; 18. resulting from any intentional or criminal act or failure to act by: (a) any person insured by this policy; or (b) any other person at the direction of any person insured by this policy; 19. to personal property undergoing any process or while being worked on, where the damage results from such process or work, but resulting damage to or other property is insured; 20. caused directly or indirectly by birds, vermin, rodents, insects, groundhogs, skunks, bats, raccoons or termites except loss or damage to building glass; 21. caused by smoke from agricultural smudging or industrial operations; 22. caused by snow slide, earthquake, landslide or any other earth movement. If any of these results in fire or explosion, we will pay only for the resulting loss or damage; 23. caused by theft or attempted theft by any tenant, members of a tenant's household or employees of the tenant ; 24. caused by vandalism or malicious acts except for resulting fire damage or glass breakage occurring while your dwelling is under construction or vacant even if permission for construction or vacancy has been given by us; 25. caused by water unless the loss or damage resulted from: (a) the sudden and accidental escape of water from a water main; (b) the sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or air conditioning system or domestic water container, which is located inside your dwelling ; (c) the sudden and accidental escape of water from a domestic water container or equipment attached, located outside your dwelling. However, such damage is not covered when the escape of water is caused by freezing; (d) water which enters through an opening which has been created suddenly and accidentally by a Specified Peril other than water damage; but we do not insure loss or damage: (e) caused by freezing during the usual heating season, of any part of a plumbing, heating, sprinkler or air conditioning system or domestic water container ; (i) within a heated portion of your dwelling if you have been away from your premises for more than four (4) consecutive days; however, you would still be insured if you: arranged for a competent person to enter your dwelling each day you were away to ensure that heating was being maintained; or shut off the water supply and had drained all the pipes and domestic water containers ; or if your heating system is connected by a monitored heating alarm to a station providing twenty-four (24) hour service; (ii) within an unheated portion of your dwelling ; (f) caused by continuous or repeated seepage or leakage of water; (g) caused by the backing up or escape of water from a sewer, sump, septic tank, eaves trough or downspout; (h) caused by ground water or rising of the water table; (i) caused by surface waters, unless the water escapes from a water main or from a domestic water container located outside your dwelling ; (j) caused by seepage or leakage of water below the surface of the ground including through sidewalks, driveways, foundations, walls, basement, or other floors, through doors, windows or any other openings, unless the loss or damage resulted from the escape of water from a public water main, domestic water container or equipment attached; (k) to a water main; (l) caused by flood, ice or waterborne objects, all whether driven by wind or not, unless the loss or damage resulted from the escape of water from a public water main, domestic water container or equipment attached; (m) to a system or domestic water container and its equipment attached, from which the water escaped; (n) occurring while the building is under construction or vacant even if we have given permission for construction or vacancy; (o) caused by shoreline ice build-up or by waterborne ice or other objects, all whether driven by wind or not.; 26. caused by collapse of: (a) outside property such as awnings, fences, or trellises unless resulting from structural collapse of foundations, walls, floors or roof of a building; (b) swimming pools, patios, driveways, walks or retaining walls; 27. due to vandalism or malicious acts caused by you or any resident of your household. 28. to building(s) or property caused by pets or animals you own. 29. loss or damage occurring when the described seasonal dwelling has been unoccupied by the insured or insured representative for 60 consecutive days. A seasonal dwelling will be considered occupied if an interior and exterior inspection is carried out by a competent adult at least once every 60 days. 30. loss or damage to buildings or structures or personal property contained in them, used in whole or in part for the cultivation, harvesting, processing, manufacture, distribution or sale of marijuana or any product derived from or containing marijuana or any other substance falling within the Schedules of the Controlled Drugs and Substances Act. 31. caused directly or indirectly, in whole or in part, by terrorism or by any activity or decision of a government agency or other entity to prevent, respond to or terminate terrorism regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage, but you are still insured for ensuing loss or damage which results directly from fire or explosion. 32. nor do we insure: (a) data, or (b) loss or damage caused directly or indirectly by a data problem. However, if loss or damage caused by a data problem results in the occurrence of further loss of or damage to property insured that is directly caused by fire, explosion, smoke, water damage, all as described Specified Perils, this exclusion shall not apply to such resulting loss or damage. BASIS OF CLAIM PAYMENT We will pay for insured loss or damage up to your financial interest in the property, but not exceeding the applicable amount(s) of insurance for any loss or damage arising out of one occurrence. Any loss or damage shall not reduce the amounts of insurance provided by this policy. 1. DEDUCTIBLE We are responsible only for the amount by which the loss or damage caused by any of the insured perils exceeds the amount of the deductible shown on the Declaration Page in any one occurrence (06/2007) BC page 5

6 However, if an insured loss equals or exceeds $25,000 in any one occurrence, we are responsible for the entire insured loss, up to the applicable limit of insurance. If the insured loss is caused by the peril of earthquake or any ensued loss or damage caused directly or indirectly by any of the following perils whether caused by or attributable to earthquake: fire, explosion, smoke, leakage from fire protective equipment, theft, vandalism and malicious acts, flood of any nature, waves, tidal waves, tsunamis, high water, waterborne objects or ice and coverage has been purchased, the deductible will apply regardless of the amount of the insured loss. If your claim involves personal property on which the SPECIAL LIMITS OF INSURANCE apply, the limitations apply to losses exceeding the deductible amount. 2. DWELLING BUILDING AND DETACHED PRIVATE STRUCTURES If you are a homeowner and you repair or replace the damaged or destroyed building on the same location with a building of the same occupancy constructed with materials of similar quality within a reasonable time after the damage, you may choose as the basis of loss settlement either (a) or (b) below; otherwise settlement will be as in (b). (a) The cost of repairs or replacement (whichever is less) without deduction for depreciation, in which case we will pay in the proportion that the applicable amount of insurance bears to 80 percent of the Replacement Cost of the damaged building at the date of damage, but not exceeding the actual cost incurred; (b) The Actual Cash Value of the damage at the date of the occurrence. In determining the cost of repairs or replacement under (a) or the amount payable under (b) above, we will not pay or include the increased costs of repair or replacement due to the operation of any law regulating the zoning, demolition, repair or construction of buildings and their related services. 3. REPLACEMENT COST ON PERSONAL PROPERTY If there is a loss insured by Coverage C Personal Property, we agree to pay on the basis of Replacement Cost provided that: (a) the property at the time of loss was useable for its original purpose; (b) you have repaired or replaced the property promptly. Otherwise, payment will be based as if this endorsement had not been in effect. 4. PERSONAL PROPERTY We will pay the Actual Cash Value of the damage up to the applicable amount of insurance as at the date of the occurrence. 5. ACTUAL CASH VALUE The Actual Cash Value will take into account such things as the cost of replacement less any depreciation, and in determining depreciation we will consider the condition immediately before the damage, use of the property, the resale value and the normal life expectancy. 6. INSURANCE UNDER MORE THAN ONE POLICY If you have insurance on specifically described property, this policy will be considered excess insurance and we will not pay any loss or claim until the amount of such other insurance is used up. In all other cases, we will pay our rateable proportion of the loss or claim under this policy. 7. SUBROGATION We will be entitled to assume all your rights of recovery against others and may bring action in your name to enforce these rights when we make payment or assume liability under this policy. 1. NOTICE OF ACCIDENT OF OCCURRENCE CONDITIONS When an accident or occurrence takes place, you must promptly give us notice (in writing if required). The notice must include: (a) your name and policy number; (b) the time, place and circumstances of the accident; (c) the names and addresses of witnesses and potential claimants. 2. COOPERATION You are required to: (a) help us obtain witnesses, information and evidence about the accident and co-operate with us in any legal action if we ask you; (b) immediately send us everything received in writing concerning the claim including legal documents. 3. INSURANCE UNDER MORE THAN ONE POLICY If you have other insurance which applied to a loss or claim, or would have applied if this policy did not exist, our policy will be considered excess insurance and we will not pay any loss or claim until the amount of such other insurance is used up. DEFINITIONS 1. CIVIL AUTHORITY means any person acting under the authority of the Governor General in Council of Canada or the Lieutenant Governor in Council of a Province, and/or any person acting with authority under a Federal, Provincial or Territorial legislation with respect to the protection of persons and property in the event of an emergency. 2. DATA means representations of information or concepts, in any form. 3. DATA PROBLEM means: (a) erasure, destruction, corruption, misappropriation, misinterpretation of data; (b) error in creating, amending, entering, deleting or using data; or (c) inability to receive, transmit or use data (06/2007) BC page 6

7 4. DECLARATION PAGE means the declaration page applicable to this form. 5. DOMESTIC WATER CONTAINER means a device or apparatus for personal use on the premises for containing, heating, chilling or dispensing water. 6. DWELLING means the building described on the Declaration Page page, wholly or partially occupied by you as a private residence. 7. ELECTRIC POWERED VEHICLE includes, a bicycle with an added battery powered electric motor that does not exceed 500 watts and can assist the cyclist up to a speed of 32 km/h, an electric powered children s toy vehicle, a personal transporter (commonly referred to as a "Segway"), that is a self-balancing, electric-powered transportation device able to turn in place and designed for one person, with a top speed of 20 km/h, and an electric powered scooter. 8. FLOOD means waves, tides, tidal waves and the rising of, the breaking out or the overflow of, any body of water, whether natural or man-made. 9. FUNGI includes, but is not limited to, any form or type of mould, yeast, mushroom or mildew whether or not allergenic, pathogenic or toxigenic, and any substance, vapour or gas produced by, emitted from or arising out of any fungi or spore(s) or resultant mycotoxins, allergens, or pathogens. 10. GROUND WATER means water in the soil beneath the surface of the ground including but not limited to water in wells and in underground streams, and in percolating waters. 11. HOMEOWNER means the owner of the "dwelling" and "premises". 12. IDENTITY FRAUD means the act of acquiring key pieces of an insured persons identifying information and knowingly transferring or using that information, without lawful authority, with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of any federal, provincial, territorial, municipal or quasicriminal law. 13. IDENTITY FRAUD EXPENSE means the costs associated with the restoration of an insured persons identity. 14. INSURED means the person(s) named as Insured on the Declaration Page page and, while living in the same household: (a) his or her spouse; (b) the relatives of either; and (c) any person under twenty-one (21) in their care. Spouse means: (i) either of a man and a woman who are married to each other or who have together entered into a marriage that is voidable or void, or (ii) either of two (2) persons who are living together in a conjugal relationship outside marriage and have so lived together continuously for a period of three (3) years or, if they are the natural or adoptive parents of a child, for a period of one (1) year. In addition, a student who is enrolled in and actually attends a school, college or university and who is dependent on the Named Insured or his or her spouse for support and maintenance is also insured even if temporarily residing away from the principal residence stated on the Declaration Page. If the Named Insured is a Corporation, Partnership, Society or other legal entity, you and your refers to the legal entity. Only the person(s) named on the Declaration Page may take legal action against us. 15. OCCUPANCY means the presence of you or your representative in the described seasonal dwelling. A seasonal dwelling will be considered occupied if an interior and exterior inspection is carried out by a competent adult at least once every sixty (60) days. 16. PREMISES means the land contained within the lot lines on which your dwelling is situated 17. REPLACEMENT includes repair, construction or reconstruction with new property of like kind and quality. 18. REPLACEMENT COST means the cost of replacing, repairing, constructing or reconstructing (whichever is the least) the property with new property of like kind and quality and for like occupancy without deduction for depreciation. 19. RESIDENCE EMPLOYEE means a person employed by you to perform duties in connection with the maintenance or use of the insured premises. This includes persons who perform household or domestic services or duties of a similar nature for you. This does not include persons while performing duties in connection with your business. 20. SPECIFIED PERILS, subject to the exclusions and conditions in this policy, means: (a) fire; (b) lightning; (c) explosion; (d) smoke due to a sudden, unusual and faulty operation of any heating or cooking unit in or on the premises ; (e) falling object which strikes the exterior of the building; (f) impact by aircraft or land vehicle; (g) riot; (h) vandalism or malicious acts, not including loss or damage caused by theft or attempted theft; (i) freezing of any part of a plumbing, heating, sprinkler or air conditioning system or domestic water container ; (j) rupture of a heating, plumbing, sprinkler or air conditioning system or escape of water from such a system, or from a swimming pool or equipment attached, or from a public water main, or damage caused by melting of ice and snow and resulting interior water damage from the roof; (k) windstorm or hail; (l) transportation meaning loss or damage caused by collision, upset, overturn, derailment, stranding or sinking of any automobile or attached trailer in which the insured property is being carried. This would also apply to any conveyance of a common carrier. 21. SPORES includes, but it is not limited to, one or more reproductive particles or microscopic fragments produced by, emitted from or arising out of any fungi. 22. SURFACE WATERS means, but is not limited to, water on the surface of the ground where water does not usually accumulate in ordinary watercourses, lakes or ponds. 23. TENANT means one who rents property from another for dwelling purposes (06/2007) BC page 7

8 24. TERRORISM means an ideologically motivated unlawful act or acts, including but not limited to the use of violence or force or threat of violence or force, committed by or on behalf of any group(s), organization(s) or governments(s), for the purpose of influencing any government and/or instilling fear in the public or a section of the public. 25. UNOCCUPIED means the dwelling is uninhabited. Seasonal dwellings only - unoccupied means the absence of you or your representative in the described furnished seasonal dwelling. A seasonal dwelling will not be considered unoccupied if an interior and exterior inspection is carried out by a competent adult at least once every sixty (60) days. 26. VACANT refers to the circumstance where, regardless of the presence of furnishings, all occupants have moved out with no intention of returning and no new occupant has taken up residence, or in the case of a newly constructed house, no occupant has yet taken up residence. SECTION II -- LIABILITY COVERAGE This insurance applies only to accidents or occurrences which take place during the term of this policy. The amounts of insurance are shown on the Policy Declaration Page. Each person insured is a separate insured but this does not increase the limit of insurance. COVERAGE E -- Legal Liability We will pay all sums which you become legally liable to pay as compensatory damages because of bodily injury or property damage. The amount of insurance is the maximum amount we will pay, under one or more sections of Coverage E, for all compensatory damages in respect of one accident or occurrence other than as provided under defense, settlement, supplementary payments. You are insured for claims made against you arising from: 1. Personal Liability -- legal liability arising out of your personal actions anywhere in the world. You are not insured for claims made against you arising from: (a) the ownership, use, or operation of any motorized vehicle, trailer or watercraft, except those for which coverage is shown in this form; (b) damage to property you own, use, occupy or lease; (c) damage to property in your care, custody or control; (d) damage to personal property or fixtures as a result of work done on them by you or anyone on your behalf; (e) bodily injury to you or to any person residing in your household other than a residence employee. 2. Premises Liability -- legal liability arising out of your ownership, use, or occupancy of the premises defined in Section II. This insurance also applies if you assume, by a written contract, the legal liability of other persons in relation to your premises. You are not insured for claims made against you arising from: (a) damage to property you own, use, occupy or lease; (b) damage to property in your care, custody or control; (c) damage to personal property or fixtures as a result of work done on them by you or anyone on your behalf; (d) bodily injury to you or to any person residing in your household other than a residence employee. 3. Tenants Legal Liability -- legal liability for property damage to premises, or their contents, which you are using, renting or have in your custody or control caused by fire, explosion, smoke or water escape, rupture, freezing, as provided in Section I. You are not insured for liability you have assumed by contract unless your legal liability would have applied even if no contract had been in force; Coverage is extended to include legal liability for property damage arising out of water accidentally escaping from a waterbed or an aquarium. 4. Employer's Liability -- legal liability for bodily injury to residence employees arising out of and in the course of their employment by you. You are not insured for claims made against you resulting from the ownership, use or operation of aircraft while being operated or maintained by your employee. You are not insured for liability imposed upon or assumed by you under any Workmen's Compensation Statute. 5. Defense, Settlement, Supplementary Payments Under Coverage E, we will defend any suit against you alleging bodily injury or property damage and seeking compensatory damages, even if it is groundless, false or fraudulent. We reserve the right to select legal counsel, investigate, negotiate and settle any claim if we decide this is appropriate. We will pay only for the legal counsel we select. In addition to the limit of insurance under Coverage E, we will pay; (a) all expenses which we incur; (b) all costs charged against you in any suit insured under Coverage E; (c) any interest accruing after judgment on that part of the judgment which is within the amount of insurance of Coverage E; (d) premiums for appeal bonds required in any insured lawsuit involving you and bonds to release any property that is being held as security, up to the amount of insurance, but we are not obligated to apply for or provide these bonds; (e) expenses which you have incurred for emergency medical or surgical treatment to others following an accident or occurrence insured by this form; (f) reasonable expenses including actual loss of income up to $100 per day, which you incur at our request. COVERAGE F -- Voluntary Medical Payments We will pay reasonable medical expenses, incurred within one year of the date of the accident, if you unintentionally injure another person or if they are accidentally injured on your premises. This coverage is available even though you are not legally liable. Medical expenses include surgical, dental, hospital, nursing, ambulance service and funeral expenses. Medical expenses for residence employees are insured. The amount of insurance shown on the Declaration Page is the maximum amount we will pay for each person in respect of one accident or occurrence (06/2007) BC page 8

9 We will not pay expenses covered by any medical, dental, surgical or hospitalization plan or law, or under any other insurance contract. We will not pay your medical expenses or those of persons residing with you other than residence employees. We will not pay medical expenses of any person covered by any Worker's Compensation Statute. You are not insured for claims arising out of the ownership, use or operation of any motorized vehicle, trailer or watercraft, except those for which coverage is shown in this policy. You shall arrange for the injured person, if requested to; 1. give us, as soon as possible, written proof of claim, under oath if requested; 2. submit to physical examination at our expense by doctors we select as often as we may reasonably require; 3. authorize us to obtain medical and other records. Proofs and authorization may be given by someone on behalf of the injured persons. COVERAGE G -- Voluntary Payment for Damage to Property We will pay for unintentional direct damage you cause to property even though you are not legally liable. You may also use this coverage to reimburse others for direct property damage caused intentionally by anyone included in the definition of "you" or "your" in Section II of this form, 12 years of age or under. You are not insured for claims: 1. resulting from the ownership, use or operation of any motorized vehicle, trailer or watercraft, except those for which coverage is provided by this form; 2. for property you or your tenants own or rent; 3. which are insured under Section I; 4. caused by the loss of use, disappearance or theft of property. VOLUNTARY COMPENSATION We offer to pay the benefits described below if your employee is injured or dies accidentally while working for you, even though you are not legally liable. If your employee does not accept these benefits or sues you, we may withdraw our offer, but this will not affect your legal liability insurance. An employee who accepts these benefits must sign a release giving up any right to sue you. We have the right to recover from anyone, other than you, who is responsible for the employee's injury or death. An injured employee will, if requested: 1. submit to a physical examination at our expense by doctors we select as often as we may reasonably require; 2. authorize us to obtain medical and other records; In case of death, we can require an autopsy before we make payment. We will not pay benefits: 1. unless your employee was actually performing duties for you when the accident happened; 2. for any hernia injury; 3. for injury or death caused by war, invasion, act of a foreign enemy, hostilities, civil war, rebellion, revolution, insurrection or military power. "Weekly Indemnity" means two-thirds of your employee's weekly wage at the date of the accident, but we will not pay more than $100 per week. 1. LOSS OF LIFE: SCHEDULE OF BENEFITS If your employee dies from injuries received in the accident within the following 26 weeks, we will pay: (a) to those wholly dependent upon him, a total of one hundred times the weekly indemnity in addition to any benefit for Temporary Total Disability paid up to the date of death; (b) actual funeral expenses up to $ TEMPORARY TOTAL DISABILITY If your employee temporarily becomes totally disabled from injuries received in the accident within the following 14 days and cannot work at any job, we will pay weekly indemnity up to 26 weeks while such disability continues. We will not pay for the first seven days unless the disability lasts for six weeks or more. 3. PERMANENT TOTAL DISABILITY If your employee becomes permanently and totally disabled from injuries received in the accident within the following 26 weeks and cannot work at any job, we will pay weekly indemnity for 100 weeks in addition to benefits provided under Temporary Total Disability. 4. INJURY BENEFITS If, as a result of the accident, your employee suffers the loss of, or permanent loss of use of any of the following within 26 weeks of the accident, we will pay weekly indemnity for the number of weeks shown. These benefits will be paid in addition to Temporary Total Disability Benefits but no others. We will not pay more than 100 weeks in total even if the accident results in loss from more than one item. For loss of: (a) One or more of the following: hand arm foot leg 100 weeks 5154 (06/2007) BC page 9

10 (b) One finger or toe: or more than one finger or toe: (c) One eye: or both eyes: (d) Hearing of one ear: or hearing of both ears: 5. MEDICAL EXPENSES: 25 weeks 50 weeks 50 weeks 100 weeks 25 weeks 100 weeks If, as a result of the accident, your employee incurs medical expenses, including surgical, dental, hospital, nursing and ambulance expenses, within the following 26 weeks, we will pay up to a maximum of $1,000. in addition to all other benefits. We will pay for the cost of supplying or renewing artificial limbs or braces, made necessary by the accident, for up to 52 weeks after the accident, subject to a maximum of $5,000. We do not insure you for cost recoverable from other insurance plans. All other items and conditions of the policy to which this rider applies remain unchanged. 1. Watercraft -- Watercraft You Own: SPECIAL LIMITATIONS You are insured against claims arising out of your ownership, use or operation of watercraft equipped with an outboard motor or motors of not more than 18kW (24 HP) in total when used with or on a single watercraft. You are also insured if your watercraft has an inboard or an inboard-outboard motor of not more than 38kW (50 HP) or for any other type of watercraft not more than 8 metres (26 feet) in length. We do not insure damage to the watercraft itself. If you own any motors or watercraft larger than those stated above, you are insured only if they are shown on the Policy. If they are acquired after the effective date of this policy, you will be insured automatically for a period of thirty days only from the date of their acquisition. 2. Watercraft You Do Not Own. You are insured against claims arising out of your use or operation of watercraft which you do not own, provided: (a) the watercraft is being used or operated with the owner's consent; (b) the watercraft is not owned by anyone included in the definition of "you" or "your" in Section II of this form. You are not insured for damage to the watercraft itself. 3. Vehicles You Own. You are insured against claims arising out of your ownership, use or operation of the following including their trailers or attachments: (a) self-propelled lawn mowers, snow blowers, garden-type tractors of not more than 19 kw (25 H.P) used or operated mainly on your property, provided they are not used for compensation or hire; (b) motorized golf carts while in use on a golf course; (c) motorized wheelchairs, including motorized scooters having more than two wheels and specifically designed for the carriage of a person who has a physical disability. (d) electric powered vehicles as defined in Section I including bicycles, children s toys, personal transporters and scooters. 4. Vehicles You Do Not Own. You are insured against claims arising out of your use or operation of any self-propelled land vehicle, amphibious vehicle or air cushion vehicle including their trailers, which you do not own, provided that: (a) the vehicle is not licensed and is assigned primarily for use off public roads: (b) you are not using it for business or organized racing; (c) the vehicle is being used or operated with the owner's consent; (d) the vehicle is not owned by anyone included in the definition of "you" or "your" in Section II of this form. You are not insured for damage to the vehicle itself. 5. Trailers: You are insured against claims arising out of your ownership, use or operation of any trailer or its equipment used for private pleasure purposes, providing that such trailer is not being towed by, attached to or carried on a motorized vehicle. 6. Business and Business Property: You are insured against claims arising out of: (a) your work for someone else as sales representative, collector, messenger or clerk provided that the claim does not involve injury to a fellow employee; (b) your work as a teacher, provided the claim does not involve physical disciplinary action to a student or injury to a fellow employee; (c) the occasional rental of your residence to others, rental to others of a one or two-family dwelling usually occupied in part by you as a residence, provided no family unit includes more than 2 roomers or boarders; (d) the rental of space in your residence to others for incidental office, school or studio occupancy; (e) the rental to others, or holding for rent, of not more than 3 car spaces or stalls in garages or stables; (f) activities during the course of your trade, profession or occupation which are ordinarily considered to be non-business pursuits; (g) the temporary or part-time business pursuits of an insured person under the age of 21 years. Claims arising from the following business pursuits are insured only if the properties or operations are declared on the Policy Declaration page: 5154 (06/2007) BC page 10

11 (a) the rental of residential buildings containing not more than 6 dwelling units; (b) the use of part of your residence by you for incidental office, school or studio occupancy. You are not insured for claims arising from: LOSS OR DAMAGE NOT INSURED 1. war, invasion, act of foreign enemy, declared or undeclared hostilities, civil war, rebellion, revolution, insurrection or military power; 2. (a) loss or damage caused directly or indirectly by any nuclear incident as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear explosion, except for ensuing loss or damage which results directly from fire, lightning or explosion of natural, coal or manufactured gas; (b) loss or damage caused directly or indirectly by contamination by radioactive material. 3. your business or any business use of your premises except as specified in this policy; 4. the rendering or failure to render any professional service; 5. bodily injury or property damage caused by any intentional or criminal act or failure to act by; (a) any person insured by this policy; or (b) any other person at the direction of any person insured by this policy; 6. the ownership, use or operation of any aircraft or premises used as an airport or landing strip, and all necessary or incidental operations; 7. the ownership, use or operation of any motorized vehicle, trailer or watercraft except those for which coverage is provided in this form; 8. the transmission of communicable disease by any person insured by this policy. 9. (a) sexual, physical, psychological or emotional abuse, molestation or harassement, including corporal punishment by, at the direction of, or with the knowledge of any person insured by this policy; or (b) failure of any person insured by this policy to take steps to prevent sexual, physical, psychological or emotional abuse, molestation or harassment or corporal punishment; 10. punitive or exemplary damages, meaning that part of an award by a court which is in excess of compensatory damages and is stated or intended to be a punishment to you. 11. (a) the erasure, destruction, corruption, misappropriation, misinterpretation of Data; or erroneously creating, amending, entering, deleting or using Data; including any loss of use arising from any of these actions or events; or (b) the distribution or display of Data, by means of an Internet Website, the Internet, an intranet, extranet, or similar device or system designed or intended for electronic communication of Data. 12. (a) bodily injury, property damage, personal injury or Voluntary Medical Payments or any other cost, loss or expense incurred by others, arising directly or indirectly, from the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, presence of, spread of, reproduction, discharge or other growth of any fungi or spores however caused, including any costs or expenses incurred to prevent, respond to, test for, monitor, abate, mitigate, remove, cleanup, contain, remediate, treat, detoxify, neutralize, assess or otherwise deal with or dispose of fungi or spores, or (b) any supervision, instructions, recommendations, warnings, or advice given or which should have been given in connection with a. above; or (c) any obligation to pay damages with or repay someone else who must pay damages because of such injury or damage referred to in a. or b. above. The above applies regardless of the cause of the loss or damage, other causes of the injury, damage, expense or costs or whether other causes acted concurrently or in any sequence to produce the injury, damage, expenses or cost. 13. directly or indirectly, in whole or in part, out of Terrorism or out of any activity or decision of a government agency or other entity to prevent, respond to terminate Terrorism. This exclusion applies regardless of any other contributing or aggravating cause or event that contributes concurrently or in any sequence to the claim. DEFINITIONS (Applicable to Section II) 1. "BODILY INJURY" means bodily injury, sickness or disease or resulting death. 2. "BUSINESS" means any continuous or regular pursuit undertaken for financial gain including a trade, profession or occupation. 3. "BUSINESS PROPERTY" means property on which a business is conducted, property rented in whole or in part to others, or held for rental. 4. DATA in this section has the same meaning as in Section I. 5. FUNGI includes, but is not limited to, any form or type of mould, yeast, mushroom or mildew whether or not allergenic, pathogenic or toxigenic, and any substance, vapour or gas produced by, emitted from or arising out of any Fungi or Spores or resultant mycotoxins, allergens, or pathogens. 6. "INSURED" in this section has the same meanings as in Section I. In addition we will insure: any person or organization legally liable for damages caused by a watercraft or animal owned by you, and to which this insurance applies. This does not include anyone using or having custody of the watercraft or animal in the course of any business or without the owner's permission; (a) a residence employee while performing duties in connection with the ownership, use or operation of motorized vehicles and trailers for which coverage is provided in this form; (b) your legal representative having temporary custody of the insured premises, if you die while insured by this form, for legal liability arising out of the premises; (c) any person who is insured by this form at the time of your death and who continues residing on the premises. 7. "LEGAL LIABILITY" means responsibility which courts recognize and enforce between persons who sue one another. 8. "PREMISES" means all premises where the person(s) named as Insured on the Coverage Summary page, or their spouse, maintains a residence, including seasonal and other residences, provided such premises are specifically described on the Coverage Summary page. It also includes: (a) premises where you are residing temporarily or which you are using temporarily, as long as you are not: (i) the owner of the premises; (ii) the lessee or tenant of the premises under any agreement which is longer than 90 consecutive days excluding students in Canada; (b) premises in Canada to be occupied by you as your principal residence from the date you acquire ownership or take possession but not beyond the earliest of: 5154 (06/2007) BC page 11

12 1. 30 consecutive days; 2. the date the policy expires or is terminated; 3. the date upon which specific liability insurance is arranged for such premises; (c) individual or family cemetery plots or burial vaults; (d) vacant land in Canada you own or rent, other than farm land; (e) land in Canada where an independent contractor is building a one, two or three-family residence to be occupied by you; (f) premises in Canada, where a student who is enrolled in and actually attends a school, college, or university, is residing temporarily, or which they are using temporarily. 9. "PROPERTY DAMAGE" means damage to or destruction of, or loss of use of property. 10. "RESIDENCE EMPLOYEE" in this section has the same meaning as in Section I. 11. SPORES includes, but it is not limited to, any reproductive particle or microscopic fragment produced by, emitted from or arising out of any fungi. 12. TERRORISM means an ideologically motivated unlawful act or acts, including but not limited to the use of violence or force or threat of violence or force, committed by or on behalf of any group(s), organization(s) or government(s), for the purpose of influencing any government and/or instilling fear in the public or a section of the public. 13. "WE" or "US" in this Section have the same meanings as in Section I. 14. "YOU" or "YOUR" in this Section refer to the Insured. CONDITIONS Notice of Accident or Occurrence: When an accident or occurrence takes place, you must promptly give us notice (in writing if required). The notice must include: 1. your name and policy number; 2. the time, place and circumstances of the accident; 3. the names and addresses of witnesses and potential claimants. Cooperation: You are required to: 1. help us obtain witnesses, information and evidence about the accident and cooperate with us in any legal action if we ask you; 2. immediately send us everything received in writing concerning the claim including legal documents. Unauthorized Settlements -- Coverage E: You shall not, except at your cost, voluntarily make any payment, assume any obligations or incur expenses, other than first aid expenses necessary at the time of accident. Action Against Us -- Coverage E: You shall not bring suit against us until you have fully complied with all the terms of this policy, nor until the amount of your obligation to pay has been finally determined, either by judgment against you or by an agreement which has our consent. Action Against Us -- Coverages F and G: You shall not bring suit against us until you have fully complied with all the terms of this policy, nor until 60 days after the required Proof of Loss Form has been filed with us. Insurance Under More Than One Policy: If you have other insurance which applied to a loss or claim, or would have applied if this policy did not exist, our policy will be considered excess insurance and we will not pay any loss or claim until the amount of such other insurance is used up (06/2007) BC page 12