General insurance provisions (GIP)/

Transcription

1 General insurance provisions (GIP)/ Building property insurance Version C&P 3445 En WGR 720 En

2 Table of contents Overview of your building property insurance A Insured object A 1 Buildings A 2 Special property and costs A 3 Rental income B B 1 Insured risks and damage Fire damage (incl. events caused by natural forces) B 2 Burglary and robbery B 3 Water damage B 4 Breakage of glass on buildings and sanitary facilities B 5 Construction project C General exclusions C 1 General exclusions D Procedure if damage occurs D 1 Obligations D 2 Damage assessment D 3 Loss adjustment procedure E Indemnity E 1 General E 2 Buildings E 3 Special property and costs E 4 Rental income E 5 Construction project E 6 Underinsurance E 7 Deductibles E 8 Indemnity limits for events caused by natural forces E 9 Payment of the indemnity E 10 Condominium property E 11 Protection of the pledge holder E 12 Limitation and forfeiture F Miscellaneous provisions F 1 Beginning and term of contract / termination on expiration F 2 Termination in the event of a claim F 3 Due diligence obligations F 4 Premiums / changes to the contract F 5 Automatic adjustment of amounts (indexing) F 6 Risk increase and decrease F 7 Change in ownership F 8 Double insurance F 9 Communication with AXA / group policies F 10 Statutory provisions

3 Overview of your building property insurance Below you will find an overview of the material contents of our insurance offer. Who is the insurance carrier? What property and costs can be insured? What risks and damage can be insured? What exclusions apply? What does coverage include? AXA Insurance Ltd, General-Guisan-Strasse 40, 8401 Winterthur (hereinafter referred to as AXA ), a stock corporation domiciled in Winterthur and a subsidiary of AXA Group. The following objects and costs (GIC A 1 A 3) can be included in building property insurance: Buildings and/or parts thereof; Site preparation costs for leaks, as well as the cost of walling up or covering pipes carrying gas or liquids after the repair; Clearing and disposal costs of the remnants of insured property; Cost of protecting and moving property that must be moved, changed, temporarily stored or protected in order to restore, replace or clean up insured property; Cost of decontaminating soil and extinguishing water; Cost of changing the locks; Temporary security measures, such as the cost of emergency doors, locks and glass; Equipment and materials that are necessary for maintaining and/or using the insured building and associated plot; Cost of repairing damage to buildings caused in connection with proven or attempted burglary; Subsequent cost increases, i. e. an inflation-linked increase in construction costs; Construction materials that belong to the owner of the building and that are not yet a permanent part of the insured building; Damage to the surroundings, i. e. the cost of restoring the physical structures, plot, and utilities connecting the building; Additional living expenses, i. e. costs arising from the inability to use the buildings and/or parts thereof that are shown in the policy; Loss of rental income from rooms that cannot be used. The insurance can include the following risks and damage (GIC B 1 B 5): Fire damage: Fire, smoke, singeing, lightning, explosion, implosion and falling aircraft; Events caused by natural forces: High water, flood, storm, hail, avalanche, snow load, rockslide, rockfall, landslide; Burglary and robbery; Water damage: Damage from water leaking from pipe systems located within the insured building; from connecting systems and apparatuses; from pipe systems that supply the insured building and physical structures outside of the building; from leaks from permanently installed apparatuses and systems used for heating, air conditioning and building services; from ornamental fountains, aquariums, waterbeds, portable air conditioners, humidifiers, and pools; from water seeping in through the roof, closed windows and doors or from gutters or external drainpipes; from backups from sewage systems, groundwater and water from slopes flowing below the surface; as well as the cost of defrosting and repairing connected water pipes and apparatuses that are damaged by frost; breakage of glass on buildings and sanitary facilities. The insurance also covers damage to construction and installation works (GIC B 5) from construction accidents. Coverage is limited to construction projects of up to CHF 100,000. The insurance does not cover new construction and extension projects. The indemnity is limited to CHF 100,000 (GIC E 5). Coverage is subject to the following general exclusions (GIC C 1): Property, costs and income for which a cantonal insurer provides or should provide coverage; Damage from a warlike event, neutrality violation, revolution, rebellion, uprising and civil unrest (except glass breakage), earthquake, volcanic eruption, changes to the structure of atoms, water from reservoirs. The insurance replaces buildings or parts thereof that are destroyed or damaged as the result of one of the above-mentioned risks. The indemnity is based on the replacement value at the time of the event (GIC E 2.1). Replacement value is the new-for-old value of the rebuilding or reconstruction costs that are customary for the location. If the present value is insured, the structural depreciation that has occurred since construction is deducted (GIC E 2.2). In the 3

4 case of lost rental income, the insurance covers the difference between the actual amount and the hypothetical amount that could be expected without the lost earnings (GIC E 4.2). Coverage also includes loss minimization costs (GIC E 1.4) and construction management costs (GIC E 1.5). The indemnity is limited to the amount of insurance shown in the application and the policy for each group or coverage module (GIC E 1.1). Any deductible that may apply is shown in the application and the policy (GIC E 7). The deductible for construction projects is CHF 500 (GIC E 7.1). What applies with respect to premium payments? What other obligations does the policyholder have? When does coverage / the contract begin and end? What information does AXA use and how? The premium and due dates are shown in the application and the policy. Federal stamp tax of 5% and any installment fees are added to the premium amount. If an automatic adjustment has been agreed, the amounts of insurance and premiums are adjusted annually to the construction costs index (GIC F 5). If the premiums or indemnity limits for events caused by natural forces change, AXA can ask to have the contract adjusted. In this case the policyholder has the right to terminate the contract (GIC F 4.2.2). The policyholder must: take all measures deemed reasonable under the circumstances to protect the insured property against the insured risks (GIC F 3.1); maintain pipes and connecting systems and apparatuses and protect them from freezing (GIC F 3.2); notify AXA immediately if an insured event occurs (GIC D 1.1.1) and minimize the damage that has occurred (GIC D 1.1.5); not alter or dispose of damaged property unless doing so minimizes the damage or serves the public interest (GIC D 1.1.6); notify the police immediately in the case of theft or robbery (GIC D 1.2.1); notify AXA in writing immediately of any material changes that could affect the ability to assess the risk (AVB F 6.1). The contract begins on the date shown in the application and the policy. Coverage is granted provisionally until the policy is delivered, provided that a written cover note has been issued (GIC F 1.1). The contract is valid for the term shown in the application and the policy. On expiry, the contract renews automatically for one year at a time unless a contracting party terminates it by giving 3 months written notice. A contract of less than one year ends on the date shown (GIC F 1.3). While preparing and managing the contract, AXA becomes aware of customer information (name, address, date of birth, gender, nationality, bank account details, etc.), stored in electronic customer files; application information (on the risk to be insured, answers to the questions in the application, reports by experts, information on the claims experience from the previous insurer, etc.), stored in the policy files; contract information (contract term, insured risks and indemnities, etc.), stored in contract administration systems such as physical policy files and electronic risk databases; payment information (dates of premium payments, amounts owed, reminders, credit balances, etc.), stored in debt collection databases; claims information (notifications of loss, investigation reports, invoices, etc.) that may apply, stored in physical claims files and electronic claims application systems. This information is needed in order to estimate and assess the risk, manage the contract, collect the premiums on time and handle the matter correctly in the event of claim. The information must be stored for at least 10 years after the contract has ended; claims data must be stored for at least 10 years after the claim has been settled. If necessary, the information can be passed on to third parties such as other participating insurers, pledge holders, officials, lawyers and external experts. The information may also be passed on for the purpose of uncovering or preventing insurance fraud. AXA Group companies operating in Switzerland and the Principality of Liechtenstein grant each other access to master data (to identify customers), basic contract information (excluding health or claims data) and customer profiles in order to simplify administrative procedures and for marketing purposes (providing our customers with the best possible products and services). Important! Please refer to the application and the policy and the General Insurance Conditions (GIC) for further information. 4

5 A Insured object A 1 Buildings If mentioned in the policy, the insurance covers 1 buildings. The insurance covers the buildings and/or parts thereof as shown in the policy. The amount of insurance equals the new-for-old value (restoration or replacement), unless coverage at present value has been agreed. 1.1 The following applies if only an individual owner s share of a condominium is insured: The insurance covers the condominium owner s premises that have been assigned by special right (taking into account any special structural features) as well as shared parts and facilities of buildings, but only up to the corresponding value of the insured condominium. 1.2 The following applies when differentiating between buildings or movable property: AXA s norms for buildings insurance; The respective statutory provisions apply in cantons with cantonal buildings insurance and in the Principality of Liechtenstein. 1.3 The insurance continues to cover building components that are removed temporarily for maintenance or repair, irrespective of their location. Only by special agreement does the insurance cover 2 special foundations, physical structures outside of the building, works of artistic or historical value in accordance with AXA s norms for buildings insurance. Cantonal provisions that differ from this are reserved. 3 property in accordance with B 1.2 against damage from natural forces. Under A 1 the insurance does not cover 4 special property and costs in accordance with A 2. 5 rental income in accordance with A 3. A 2 Special property and costs If mentioned in the policy, the insurance covers 1 site preparation costs, i. e. the cost of uncovering leaking water and gas pipes and of walling up or covering them again after they have been repaired or replaced. The insurance also covers costs outside of the building, provided that these pipes serve the insured building and/or physical structures or permanently installed property outside of the building for whose maintenance the building owner is responsible. The insurance also covers costs incurred in connection with searching for the leak to the extent necessary and if doing so reduces site preparation costs, as well as the cost of repairing the area around the leak; loss of water or gas resulting from the leak; provisionally supplying utilities to the insured building in connection with leaking or frozen pipes carrying gas or liquids. If the pipes serve multiple buildings, the insurance covers only the prorated cost. The insurance does not cover site preparation costs for pipes that were moved for operational reasons; site preparation costs for earth tubes, geothermal probes, geothermal storage facilities and the like; the cost of searching for, uncovering and repairing pipes in connection with instructions by the authorities or for maintenance (renovation) purposes; maintenance and loss prevention costs. 2 clearing and disposal costs, i. e. the cost of cleaning up the remains of insured property and taking them to the nearest disposal site, as well as the cost of storing, disposing or destroying such items. The insurance also covers the cost of toxicological analyses of special waste and the cost of demolishing any remaining parts of buildings that claims adjusters have determined to be of no value. The cost of clearing and disposal does not include decontaminating the air, water and soil (incl. fauna and flora), even if mixed with or covered by the insured items. The insurance does not cover the cost of clearing and disposing items outside of the building ( damage to the surroundings ). If such costs are covered they are included in the agreed amount of insurance in accordance with A the cost of protecting and moving property, i. e. costs not covered by an insurer of movables and incurred when property must be moved, changed, temporarily stored or protected in order to restore, replace or clean up other property that is covered by this contract. Damage is indemnified only if the policyholder cannot claim partial or full compensation under another insurance contract. 4 the cost of decontaminating soil and fire extinguishing water, i. e. cost the policyholder incurs as a consequence of contamination because of a publiclaw order in order to investigate and if necessary decontaminate or replace the soil (incl. fauna and flora) on the plot where the loss occurred; test and if necessary decontaminate or remove extinguishing water on the plot where the loss occurred; transport contaminated soil or extinguishing water to the next suitable disposal site and to store or destroy it there; subsequently restore the site to the condition it was in before the insured event occurred. Costs in accordance with A 2.3 do not count as clearing and disposal costs as defined in A

6 5 the cost of changing the locks, i. e. the cost of changing or replacing keys, magnetic cards and the like; locks to the buildings shown in the policy. 6 temporary security measures, i. e. the cost of emergency doors, locks, glass protection and the like to which AXA agreed in advance. 7 equipment and materials, i. e. equipment, installations and materials that are necessary for maintaining and / or using the insured building and associated plot. 8 damage to buildings, i. e. the cost of repairing damage to buildings caused in connection with proven or attempted burglary. 9 subsequent cost increases, i. e. an inflation-linked increase in construction costs starting from the beginning of the insured event until completion of the restoration. Liability is limited to 2 years. The calculation is based on the building costs index for the contract. In every case, only the effective additional costs are covered. 10 construction materials, i. e. those that belong to the building owner and that are not yet a permanent part of the insured building. 11 damage to the surroundings, i. e. the cost of damage incurred outside of the insured building but on the building plot that is proven to have been caused by an insured event. The insurance covers the cost of restoring the physical structures (incl. clearing and disposal costs) or permanent footpaths, stairs, retaining walls, garden sheds, flagpoles, antenna systems, solar panels, earth tubes, earth probes, pergolas, swimming pools (including fixed covers and parts), etc.; the cost of restoring the building plot itself (incl. clearing and disposal costs) and replanting it with seedlings of the same kind; the cost of restoring the parts of the building s supply and drainage infrastructure that the owner is responsible for maintaining. Only by special agreement does the insurance cover property in accordance with B 1.2 against damage from natural forces. The insurance does not cover items and costs that constitute buildings or parts thereof in accordance with A 1; special foundations, systems for securing the excavation site and sealing off groundwater (drill, ram, cement, wood and special piling; pipe-jacks and reinforced pile walls, supports for diaphragm wall, reinforcements, anchors); areas and woodland used for agricultural purposes; cultivation for commercial use, incl. the associated land; damage from hail or snow loads to all plants and cultivation, incl. products derived thereof; damage resulting from work to improve the construction substrate as well as from excavation of the site; site preparation costs in accordance with A 2.1; damage to protective installations that serve their normal purpose. 12 additional living expenses, i. e. cost the building owner incurs from not being able to use the buildings and/or parts thereof as shown in the policy. Any cost savings are deducted. Under A 2, the insurance does not cover 13 buildings and property in accordance with A rental income in accordance with A 3. A 3 Rental income Water insurance covers rental income except in the case of hotels, guesthouses with guest rooms, vacation homes and apartments. 1 rental income, i. e. the effective lost rental income from rented premises that cannot be used. The damage must have occurred in a building shown in the policy and be the result of a loss event that is covered under these General Insurance Conditions or under the applicable provisions if cantonal buildings insurance is in effect. Liability is limited to 2 years unless another mutual agreement is in effect. The total gross rental income (incl. ancillary costs) for the building shown in the policy forms the basis for the relevant declaration year (12 months). Only by special agreement does the insurance cover 2 rental income in accordance with A 3.1 against fire and damage caused by natural forces; against water damage at hotels, guesthouses with guest rooms, vacation homes and apartments. Under A 3 the insurance does not cover 3 buildings and property in accordance with A 1. 4 special property and costs in accordance with A 2. 6

7 B Insured risks and damage B 1 Fire damage (incl. events caused by natural forces) If mentioned in the policy, the insurance covers 1 fire. This includes 1.1 fire damage caused by combustion, i. e. damage caused through burning; smoke (sudden accidental impact); singeing to residential property that the policyholder owns and occupies; lightning; explosion and implosion; aircraft and spacecraft or parts thereof that crash or land during an emergency. 1.2 damage from natural forces, i. e. damage caused through high water; flood; storm (= winds of at least 75 kph that uproot trees or unroof buildings in the vicinity of the insured property); hail; avalanche; snow load; rock slide; rockfall; landslide. Damage from natural forces does not include damage caused by ground subsidence, poor construction substrate, faulty construction methods, lack of building maintenance, omission of preventive measures, artificial earth movements, snowslide from roofs, groundwater, water that rises and overflows in places where experience has shown this is likely to occur sooner or later; damage caused by water from reservoirs or other manmade systems, water backups from the sewage system irrespective of the cause; damage from operational and managerial activities that experience has shown are likely to give rise to claims, such as on construction or civil engineering sites, on underground sites, or while extracting stone, gravel, sand or clay; Damage from tremors caused when a manmade hollow space collapses. Only by special agreement does the insurance cover 2 damage from natural forces to structures that can be easily moved (such as booths used for exhibitions or festivities, large tents, carousels, inflatable structures), greenhouses, and mobile homes and their contents. Scope of coverage: 3 The insurance covers insured objects that are destroyed, damaged or lost as the result of a fire or natural hazard, plus any related insured costs and insured rental income. 4 Singeing damage in accordance with B is limited to CHF 5,000 per event. The insurance does not cover 5 damage caused by intentional or gradual effects of smoke; 6 damage to insured property that is exposed to purposeful combustion or warmth; 7 damage to electrical machines, apparatuses and connecting cables because of the effects of the electrical energy itself, from excess voltage, or from a rise in temperature due to overload; 8 damage to electrical safety devices, such as thermal fuses, while being used for a standard purpose; 9 damage in the form of cracks from blasting (explosion); The insurance does, however, cover unavoidable renovations of cracks to building elements for structural reasons. 10 damage resulting from underpressure (except implosion), water impact, centrifuge breaks, and other operational effects caused by mechanical forces; 11 damage resulting from snow loads affecting only tiles and other roofing materials, chimneys, gutters or drainpipes. B 2 Burglary and robbery If mentioned in the policy, the insurance covers 1 damage caused from burglary or robbery. Burglary and robbery refers to damage that can be proven conclusively on the basis of the evidence, witnesses or circumstances. 1.1 burglary, i. e. theft by perpetrators who forcefully break into a building or a room, or break into a closed container in the room. Moveable structures such as tool sheds are also deemed to be the same as buildings. Theft through access involving the correct keys, magnetic cards etc. or codes is deemed to be the same as burglary, provided that the perpetrator appropriated them by way of burglary or robbery; 1.2 robbery, i. e. theft under the threat or use of force directed at an insured person, his employees or persons who live in the same household. Theft whereby someone is rendered helpless in defending himself due to accident, unconsciousness or death is deemed to be the same as robbery. Scope of coverage: 2 The insurance covers insured objects that are destroyed, damaged or lost as the result of robbery, plus any related insured costs. The insurance does not cover 3 damage caused by persons who share the insured 7

8 person s household or who work for him, provided their position grants them access to the insured premises. 4 damage resulting from fire and events caused by natural forces in accordance with B 1. B 3 Water damage If mentioned in the policy, the insurance covers 1 water damage. Water damage refers to damage caused by 1.1 water leaking from pipe systems within the insured building; pipes connecting such systems and apparatuses; pipe systems that supply the insured building, physical structures, or any permanently installed property outside of the building for whose maintenance the building owner is responsible or that serve only the insured building. 1.2 fluids leaking from permanently installed heating, air conditioning, or cooling apparatuses and systems that serve the insured building or operations within it. 1.3 water leaking suddenly and accidentally from ornamental fountains, aquariums, waterbeds, portable air conditioners, humidifiers, and pools. 1.4 rain, snow or meltwater inside the building, provided that the water entered the building through the roof, through closed doors or windows, from the gutter or from exterior drainpipes. 1.5 fluids inside the building from backups from the sewage system. 1.6 groundwater and water originating from underground slopes that seeps into the building; also as a consequence of high water or flooding, provided that the water seeped into the building only from underground. 1.7 frost, i. e. the cost of repairing and thawing out frostdamaged water pipe systems and connecting apparatuses within the building and pipes in the ground on the outside, provided that they serve the insured building, building works or permanently installed property outside of the building that the property owner must maintain. If these pipes serve multiple buildings, the insurance covers only the prorated cost. Scope of coverage: 2 The insurance covers insured objects that are destroyed, damaged or lost as the result of a fire or natural hazard, plus any related insured costs and insured rental income. 3 Site preparation costs are insured as described in A 2.1. The insurance does not cover 4 damage to the leaking fluids themselves or the loss thereof; 5 damage to installations (technical installations, machines and apparatuses) connected to such pipe systems themselves from leaking fluids within; 6 damage resulting from oil leaks during maintenance work on the heating oil tank or the heating system, or when filling or emptying the tank system; 7 damage to air-conditioning systems caused by artificially produced frost; 8 damage to the apparatuses and installations referred to in B that results when fluids or gases are mixing within these systems; 9 damage resulting from rain, snow and meltwater to the roof (support structures, insulation, and roofing materials with underlay) and facade (exterior walls and insulation) as well as all elements belonging to the building s envelope, such as windows, doors, cladding, and panels; 10 thawing out and repairing gutters and/or exterior drainpipes; 11 the cost of removing snow and ice; 12 damage from water leaking in through open skylights, openings in the roof of new buildings, or while conversions or other work is performed; 13 backwater damage for which the owner of the sewerage system is liable; 14 damage caused by ground subsidence and poor construction substrate; 15 damage from faulty construction, i. e. mistakes in the design (planning and calculation errors) or construction of the building, provided that a participating contractor, architect, engineer, etc. can be held liable for it under statutory or contractual provisions. This exclusion is valid for 5 years after the construction activities have been concluded; 16 damage from faulty building maintenance or the omission of preventive measures; 17 the cost of repairing the source of the damage itself and of maintenance and loss prevention measures. The conditions described in A 2.1 and B are reserved; 18 damage resulting from fire and events caused by natural forces in accordance with B 1 (B is reserved). B 4 Breakage of glass on buildings and sanitary facilities If mentioned in the policy, the insurance covers 1 breakage of 1.1 glass on buildings (incl. the facades and wall cladding made of glass and glass bricks) that is permanently connected to the insured building. The insurance also covers breakage of glass ceramic stove tops; breakage of natural and artificial stone tops in kitchens, bathrooms and toilet areas; breakage of glass parts of solar panels; breakage of glass on dome lights; breakage of glass on physical structures and permanently installed property outside of the insured building but on the plot; the cost of emergency windows; the cost of engraving, laminating, etching, sandblasting, etc. broken glass. 8

9 1.2 sanitary facilities, i. e. washbasins, sinks, toilets, cisterns, urinals, separating walls and bidets. Only by special agreement does the insurance cover 2 restrictions in coverage for shared premises. Scope of coverage: 3 The insurance covers breakage of insured glass on buildings and sanitary facilities. 4 Materials similar to glass are deemed to be the same as glass if used instead of glass. 5 In amendment of the general exclusions under C 1.2, the insurance covers breakage that occurs in connection with civil unrest and related preventive measures. The amount of insurance agreed in the policy is doubled for such damage. 6 The amount of insurance for glass on buildings and sanitary facilities also includes 6.1 consequential and complementary damage from insured glass breakage up to CHF 5,000; however, without replacement of fittings of any kind (in particular the mixer tap). 6.2 In rooms used by the policyholder and his family members: Damage from chipping on sanitary facilities in accordance with B 4.1.2; Damage in the form of broken or chipped bathtubs or shower trays. The insurance does not cover 7 lighting fixtures of any kind. 8 damage caused by third parties (e. g. workmen, etc.) to glass on buildings, to the frames of such glass, or to sanitary facilities. 9 damage to display screen glass and displays of all types. 10 damage resulting from ground subsidence, poor construction substrate, faulty building maintenance, as well as from faulty construction, in accordance with B damage resulting from fire and events caused by natural forces in accordance with B 1. B 5 Construction project The insurance covers 1 construction projects for the insured buildings or parts thereof as shown in the policy, provided that the total cost does not exceed CHF 100,000. Construction projects include renovation, maintenance and remodeling work on the insured building or parts thereof that must be carried out by qualified builders. Coverage includes sudden and unforeseen damage or destruction (construction accidents) affecting any construction and installation works, building materials, and the insured building or insured parts thereof that occurs and is identified during the contract term and is a direct consequence of the building activities and damage for which the builder-owner and policyholder is liable under the norms of the Swiss Society of Engineers and Architects (SIA). Insurance coverage ends when the construction project is deemed to have been accepted in accordance with the law or SIA norms. Commissioning of a construction project is deemed to be the same as acceptance. Disregarding any contributing causes, the insurance does not cover 2 new construction and extension projects involving the roof, facade or the outside of the insured building; 3 damage through mistaken demolition or deinstallation; 4 damage through normal weather effects as can be expected given the season and local conditions; 5 the cost of remedying defects (wrongly executed or planned work); 6 exposed cracks, also in cases where surfaces are no longer properly sealed. The insurance does, however, cover unavoidable renovations of cracks to building elements for structural reasons; 7 the cost of remedying cosmetic defects, even if they result from an event that must be indemnified; 8 scratches and stains on all types of surfaces; corrosive action on building parts of all types, in particular from cement fluid, damage caused by spray painting and graffiti and operational damage to technical installations; 9 contractual penalties due to non-compliance with completion and acceptance deadlines or other obligations and other financial losses; 10 damage caused culpably by a contractor involved in the construction of the building or for which he is liable. In this case, unavoidable and reasonable legal costs are covered; 11 work that affects the stability of support elements; 12 damage resulting from fire and events caused by natural forces in accordance with B 1. 9

10 C General exclusions C 1 General exclusions 1 The insurance does not cover property, costs and income for which a cantonal insurer provides or should provide coverage. 2 In case of warlike events, neutrality violations, revolution, rebellion, uprising, civil commotion (acts of violence against persons or objects as a result of riots or commotion, or by mobs) and any measures taken against such events, as well as earthquakes, volcanic eruptions, or changes to the structure of atoms, AXA is liable only if the policyholder can prove that the damage is unrelated to these events. 3 The civil commotions (C 1.2) exclusion does not apply to glass breakage. 4 The insurance does not cover damage through water from reservoirs, irrespective of the cause. D Procedure if damage occurs D 1 Obligations 1 When faced with an insured event, the policyholder or eligible claimant must 1.1 inform AXA immediately; 1.2 provide information on the cause, amount in damage and the surrounding circumstances in written form, unless another arrangement has been agreed; 1.3 permit AXA to review the claim and assist in doing so; 1.4 at his own expense provide the information required for substantiating the claim and establishing the indemnity amount, submit the necessary documents and, on request, prepare a signed list of the items before and after the event that shows the value of the damaged property, whereby AXA can set reasonable deadlines; 1.5 do his utmost during and after the event in order to preserve and recover the damaged property and minimize the loss, and to follow AXA s instructions while doing so; 1.6 not alter or dispose of damaged property in a way that interferes with being able to determine the cause and amount of the damage, unless doing so would help to reduce the damage or serve a public interest. 2 In case of theft or robbery, he must additionally 2.1 inform the police immediately, request an official investigation, and neither remove nor change any of the evidence without the permission of the authorities; 2.2 cooperate with the investigating authorities and AXA to identify the perpetrators and trace and recover the missing property; 2.3 notify AXA immediately if stolen property is recovered or when information about it has been received. D 2 Damage assessment 1 Both the eligible claimant and AXA can request an immediate assessment of the damage. The damage must be assessed either by the parties themselves, by a mutually agreed claims adjuster, or through a claims adjustment procedure. Both parties can request that a loss adjustment procedure in accordance with D 3 be conducted. 2 The eligible claimant must provide proof of the event and of the amount in damage at his own expense. The policy and amount of insurance do not constitute proof of the existence and value of the insured property at the time of the insured event. 3 In the case of insurance on third-party account, AXA reserves the right to assess the damage only with the policyholder. 4 AXA is under no obligation to accept recovered or damaged property. 5 AXA can decide which contractor should carry out repair work. The indemnity can be paid in cash or in kind. 10

11 D 3 Loss adjustment procedure 1 The following principles apply to the loss adjustment procedure: 1.1 Each party must appoint a claims adjuster in writing. The claims adjusters then elect an umpire using the same procedure before the start of any loss investigation. If a party fails to appoint its claims adjuster within 14 days after having been ordered to do so in writing, the judge will appoint one at the request of the other party; the same judge also appoints the umpire if the claims adjusters are unable to agree on one. 1.2 Persons without the necessary expertise, who are related to one of the parties, or are otherwise biased, can be rejected as claims adjusters. If the reasons for the rejection are in dispute, the decision rests with the judge, who appoints the claims adjuster or umpire in the case of a justified appeal. 1.3 The claims adjusters are responsible for establishing the cause, surrounding circumstances and amount in damage. They must determine the new-for-old value, the present value and the market value of the damaged property immediately before and after the insured event. In case of any discrepancies in the established value, the umpire must set a value between the upper and lower amount. 1.4 The adjusters findings within the scope of their authority are binding unless one of the parties can prove that they vary significantly from actual circumstances. 1.5 Each party bears the costs of its claims adjuster; the two parties each bear half of the costs of the umpire. E Indemnity E 1 General 1 The indemnity is limited to the amount of insurance shown in the policy for each group or coverage module. 2 If the policy or the General Insurance Conditions define limits for certain indemnities, entitlement to compensation per event applies only once, also in cases where different policies are in effect. 3 Personal sentimental value is taken into account only if this has been explicitly agreed. 4 The cost of minimizing loss is covered as well. If these costs together with the indemnity exceed the amount of insurance, only the cost of measures taken on AXA s instructions is covered. AXA does not cover the services of public firefighters, police and others whose duty it is to provide assistance. 5 The indemnity also includes construction management costs, provided the insured event has been established and the claims settlement has been approved or ordered by AXA s claims adjusters. 6 If the eligible claimant regains possession of the stolen or lost property at a later time, the indemnity minus any reduction in value must be repaid, or the property must be handed over to AXA. E 2 Buildings 1 The indemnity for insured buildings or parts thereof is calculated based on their replacement value at the time of the insured event, less the value of their remains. If damaged buildings or parts thereof can be repaired, AXA indemnifies only the cost of the repair. Any restrictions on the restoration imposed by the authorities are of no consequence. 2 Replacement value is the new-for-old value of the rebuilding or reconstruction costs that are customary for the location. If the present value is insured, the structural depreciation that has occurred since construction is deducted. The remains are assessed in the same manner. 3 If buildings or parts thereof are not restored at the same place within the same scope and purpose within 2 years, their replacement value is limited to the current market value; in the case of repairs, the indemnity is based on the present value. This applies also if the restoration or repair is not carried out by the insured person or his legal heir in accordance with family and inheritance law, or by a person who holds a legal title to acquire the building at the time of the event; is not possible because of administrative orders. 4 The current market value of a building equals the market price that could have been realized at the time immediately prior to the insured event excluding the value of the plot (land, preparation and work on the surroundings, prorated ancillary costs of developing and accessing the site). In case of an insured event, an independent adjuster can establish the current market value. 5 In the case of demolition properties, the replacement value equals the proceeds that could have been realized from the property without the land (demolition value). 6 If, due to neglect, the current value of the building at the time of the damage is less than 50% of the present value, the present value is indemnified. 11

12 E 3 Special property and costs 1 The indemnity is calculated in accordance with A 2 for site preparation costs; clearing and disposal costs; the cost of protecting and moving property; the cost of changing the locks; temporary security measures; subsequent cost increases; damage to the surroundings; additional living costs. 2 In case of an order to decontaminate the soil and fire extinguishing water in accordance with A 2.3 as part of an insured event, the cost is compensated if the public-law orders are based on ordinances that were in force when the insured event occurred; are issued within one year from when the damage occurred; was notified to AXA within 14 days from the date of issue, regardless of any appeals period; affect contamination that is proven to be the consequence of an insured event. If the insured event aggravates the contamination due to a prior condition, AXA indemnifies only the amount that exceeds the cost of remedying the current state, regardless of if and when these costs were in fact incurred. Damage is indemnified only if the policyholder cannot claim partial or full compensation under another insurance contract. 3 Equipment and materials in accordance with A 2.6 are indemnified at new-for-old value (cost of buying a replacement). If damaged property can be repaired, AXA covers the cost of the repair, provided that the amount does not exceed the new-for-old value. Property that can no longer be used is compensated at present value. 4 In the case of damage to buildings, the insurance covers the cost of the actual repairs. 5 AXA covers building materials at their market price. E 4 Rental income 1 Any lost rental income must relate to the insured property damage (adequate causal connection). The deciding factor is the legal and contractual circumstances at the time of the event. 2 AXA indemnifies the difference between the actual and the hypothetical earnings without the loss as derived from renting or leasing out the building during the agreed liability period. 3 If the lost income increases due to a public-law order, the resulting lost earnings are compensated only if the order is based on ordinances that were in effect when the insured event occurred. E 5 Construction project The indemnity is limited to CHF 100,000 for the 1 cost of restoring the insured building works to the condition immediately before the loss event; 2 cost of restoring the building shown in the policy to the present value of the condition immediately before the loss event; The insurance does not indemnify for additional costs arising from changes in the construction method or from improvements made during restoration in comparison to the condition immediately prior to the loss event; reduced value after the restoration or repair has been completed. E 6 Underinsurance 1 If the amount of insurance is less than the replacement value (underinsurance), any damage is indemnified only at the ratio of the amount of insurance to the replacement value. It may be necessary to consider an automatic adjustment to the limit in accordance with F 5. 2 If the policy provides for several groups or coverage modules with each with its own amount of insurance, any underinsurance amounts that may apply are calculated separately per group or coverage module. 3 In the case of insurance on first loss (discretionary insured value), the damage is indemnified up to the agreed amount of insurance without including the underinsurance amount. 4 If rental income is insured in accordance with A 3.2 and the contract is based on too low an amount in gross rental income, damage is indemnified only in the ratio of declared income to actual income. The declaration year (12 months) shown in the policy is authoritative. E 7 Deductibles The eligible claimant must pay the deductible agreed in the policy per insured event. In the case of statutory insurance against damage by natural forces, this amount is deducted from the indemnity. A CHF 500 deductible applies in every case to construction projects in accordance with B 5. The deductible applies only once per event, unless another agreement is in effect. If different deductibles apply, the largest amount counts. The provisions of Art. 175 para. 2 of the Insurance Supervision Ordinance (ISO) are reserved. 12

13 E 8 Indemnity limits for events caused by natural forces 1 The following limits apply to indemnities that are based on insurance against damage by natural forces in accordance with the Insurance Supervision Ordinance (ISO): 1.1 The total in indemnities that all insurers with permission to do business in Switzerland are liable for to one policyholder for a single insured event cannot exceed CHF 25 million. A further reduction in accordance with E is reserved. 1.2 If the total in indemnities for an insured event in Switzerland that all insurers with permission to do business in Switzerland are liable for exceeds CHF 1 billion, the indemnity amounts for individual eligible claimants are adjusted so as to not exceed this amount in total. 1.3 Indemnities for damage to movables and buildings may not be cumulated. 1.4 Damage with separate temporal and spatial aspects constitutes a single event if it originates from the same atmospheric or tectonic cause. E 9 Payment of the indemnity 1 The indemnity is due 4 weeks after the date on which all the information necessary for establishing the obligation to indemnify reaches AXA. A first installment of the amount derived from the current state of the loss assessment can be requested 4 weeks after the damage occurred. 2 AXA s obligation to pay is suspended for as long as the indemnity amount cannot be established or paid due to culpable conduct by the policyholder or eligible claimant. 3 In particular, no payment is due for as long as 3.1 the lawful recipient has not been established; 3.2 the police or authorities are investigating circumstances in connection with the event or if criminal proceedings against the policyholder or eligible claimant are still underway. E 10 Condominium property 1 In the case of insurance for individual condominium property, the replacement value of the unit in question applies in the event of a claim. The insured condominium unit also includes special structural features and the prorated value of any shared parts of the building and facilities. If the amount of insurance is less than the replacement value (underinsurance), any damage is indemnified only at the ratio of the amount of insurance to the replacement value. 2 The following applies if the condominium owners association insures the building: 2.1 If a condominium owner forfeits his right to an indemnity, AXA remains obligated to indemnify the remaining condominium owners in accordance with their shares. If the insured event was caused intentionally, the condominium owner responsible for having caused the forfeiture must repay AXA this amount. In all other respects, the right of recourse in accordance with legal provisions applies. 2.2 The remaining condominium owners can request that AXA indemnifies them commensurately also for the portion of the co-owned share of the condominium owner who forfeited his right, provided that this additional indemnity is used to restore the shared portion of the property and the pledge holder of the shared condominium portion whose owner forfeited his right agrees with this provision, and the remaining condominium owners are not indemnified directly by the condominium owner who has forfeited his right. The obligation to repay and the right of recourse under E apply also to this additional expense. 2.3 Any additional living expenses in accordance with A 2.11 are paid to the condominium owners association. E 11 Protection of the pledge holder 1 If a right of lien has been entered in the land register or the creditor has registered such with AXA in writing and the debtor defaults on the amounts that are due, AXA is liable to the pledge holder for the amount that is due even if the policyholder or insured person has lost all or part of the right to be indemnified through the insurance. 2 In the case of a pledge on a condominium unit, the insurer s obligation under E reduces commensurately with AXA s indemnity for the pledge holder. 3 The pledge holder is not covered if he himself is the eligible claimant or has caused the damage intentionally or through gross negligence. E 12 Limitation and forfeiture 1 Claims brought under the insurance contract become time-barred two years after the event on which the obligation to indemnify is based. 2 If AXA refuses to indemnify, the eligible claimant must take the matter before a court within 2 years, otherwise he will lose his rights to such (forfeiture). 3 Claims arising from the insurance of the rental contract in accordance with A 3 become time-barred and forfeited 1 year after the liability period ends. 13

14 F Miscellaneous provisions F 1 Beginning and term of contract / termination on expiration 1 The contract begins on the date shown in the policy. Insurance coverage is provisional until the policy is delivered, provided that written confirmation of coverage has been issued. 2 AXA can reject the application in writing. If it rejects the application, coverage ends 3 days after notification reaches the policyholder. AXA can request the premium for the prorated period of coverage. 3 The contract is valid for the period shown in the policy. On expiry, it renews automatically for 1 year at a time unless notice of termination reaches one of the contracting parties no later than one day before a 3-month period. A contract of less than one year ends on the date shown. F 2 Termination in the event of a claim 1 Either party can terminate the contract in writing following an event for which an indemnity is due. 2 The notice period for the policyholder is 14 days and starts on the date on which he is informed about the indemnity. The contract ends 14 days after the notice reaches the party in question. 3 AXA must give notice no later than when it pays the indemnity. The contract ends 4 weeks after the notice has reached the policyholder. F 3 Due diligence obligations 1 The insured persons (policyholder and eligible claimants) are subject to due diligence obligations. In particular, they must implement measures as required by the circumstances in order to protect insured property against the insured risks. 2 In the case of water insurance, insured persons must maintain all pipes and connecting systems and apparatuses at their own expense, remedy any blockage, and take the necessary steps to prevent liquids in pipes from freezing. In particular in the case of unused premises, the heating system must be maintained and kept operational, otherwise the pipes and all connecting systems and apparatuses must be drained. 3 If due diligence obligations, security regulations or other obligations are culpably violated, the indemnity can be reduced commensurate with the scope to which this has caused or influenced the damage. F 4 Premiums / changes to the contract 1 The first premium is due on the date shown on the invoice; subsequent premiums are due on the first day of every insurance year. If installments have been agreed, the premiums due during the insurance year are regarded as deferred. 2 If the premiums, rules on deductibles, or indemnity limits in accordance with E 8 for damage from natural forces change, AXA can request that the contract be adjusted effective as of the following insurance year. 2.1 Notification of any changes to the terms of the contract must reach the policyholder no later than one day before a 25-day period starts. 2.2 The policyholder then has the right to terminate the affected part, or the entire contract, to the end of the current insurance year. The scope of the contract then adjusts according to the policyholder s request when the insurance year ends. Notice of termination must reach AXA no later than on the last day of the insurance year. 2.3 The new premium is deemed to have been accepted unless the policyholder terminates the contract. F 5 Automatic adjustment of amounts (indexing) 1 Indexed amounts of insurance and premiums are adjusted to changes in the construction cost index in accordance with the following provisions at the beginning of every insurance year (due date): 1.1 Any buildings shown in the policy that a cantonal insurer covers against fire damage are subject to the current construction cost index of the canton. 1.2 In all other cases and provided that no separate construction cost index exists for a particular canton, the global construction cost index of Zurich is used. The current index is authoritative. 2 Limits in accordance with the General Insurance Conditions, amounts of insurance on first loss (discretionary insured value), and insured rental income are not indexed. F 6 Risk increase and decrease 1 Every significant change in circumstance for assessing the risk must be notified to AXA in writing immediately. If notification is culpably omitted, the indemnity can be reduced commensurate with the scope to which this has caused or influenced the damage. 2 If risk increases, AXA can raise the premium accordingly for the remainder of the contract term or terminate the contract. The policyholder has the same right of termination if no agreement can be reached on the premium increase. 2.1 The notice period is 14 days from the date of receipt of the notice. The contract ends 4 weeks after the notice of termination has reached the other party. 14

15 2.2 In either case AXA can collect the additional premium from the start of the higher risk until the end of the contract term. 3 In the case of a risk decrease, the premium is reduced commensurately. F 7 Change in ownership 1 If the subject of the contract changes ownership, the rights and obligations arising from it are passed on to the new owner. 2 The new owner can reject the transfer of the contract by means of a written statement no later than 30 days after the change in ownership. In this case the contract ends retroactively to the day of the change in ownership. 3 If the new owner becomes aware of the insurance only after the change in ownership, he can terminate the insurance within 30 days from the date on which he became aware of its existence but no later than 30 days after the date on which the next annual or partial premium is due following the change of ownership. The contract ends when notice of termination reaches AXA. F 9 Communication with AXA /group policies 1 All notifications and information by the policyholder or eligible claimants must be addressed to the relevant branch office or registered office of AXA. Notices of termination or other correspondence must reach the other party before the end of the specified period. 2 If AXA has the lead in cases where policies from several companies (group policies) are in effect, the correspondence between these companies and the policyholder or eligible claimant in all matters concerning these policies must be sent exclusively via AXA. 3 In the case of group policies, each company is liable only for its own part (no joint and several liability). F 10 Statutory provisions In all other respects, Swiss law, in particular the Federal Act on Insurance Contracts (ICA), applies. 4 AXA can terminate the contract in writing 14 days after it becomes aware of the change in ownership. The contract ends 30 days after notice of termination reaches the new owner. F 8 Double insurance 1 AXA must be informed immediately if property currently is or is about to be insured against the same risk and for the same period with another insurer. 2 AXA can terminate the insurance within 14 days of receipt of the notice. The contract ends 4 weeks after the notice has reached the policyholder. 3 If, under the policy or the General Insurance Conditions, the policyholder must pay for a part of the damage, he is not permitted to take out other coverage for that part. Otherwise the indemnity is reduced so that the eligible claimant himself must pay for the part of the damage as agreed under this contract in every case. 15

16 AXA Insurance Ltd