Landlord Residential Building Insurance Policy Product Disclosure Statement and Policy Wording

Transcription

1 Landlord Residential Bilding Insrance Policy Prodct Disclosre Statement and Policy Wording Astralia s Leading Landlord Insrance Specialist terrischeer.com.a

2 Astralia s Leading Landlord Insrance Specialist

3 Terri Scheer Insrance Pty Ltd Landlord Residential Bilding Insrance Policy Prodct Disclosre Statement and Policy Wording terrischeer.com.a

4 2 Prodct Disclosre Statement and Policy Wording (PDS) The prpose of this Prodct Disclosre Statement and Policy Wording (PDS) is to help yo nderstand the insrance Policy and provide yo with sfficient information to enable yo to compare and make an informed decision abot it. This PDS is in two parts: Part 1: Part 2: Important Information. This part incldes important information abot yor rights and responsibilities, the General Insrance Code of Practice and how yo may contact s if yo have a complaint. Policy Wording. This part contains the terms, conditions, limits and definitions of yor Insrance. The information in this PDS was crrent at the date of preparation. We may pdate some of the information in the PDS that is not materially adverse from time to time withot needing to notify yo. Yo can obtain a copy of any pdated information by contacting s. We will give yo a free paper copy of any pdates if yo reqest them. In some circmstances this PDS may be amended by a Spplementary Prodct Disclosre Statement. Astralia s Leading Landlord Insrance Specialist

5 Part 1: Important Information It is important that yo: Read all of this PDS before yo by the Insrance to make sre it gives yo the protection yo need, and Are aware of the limits on the cover provided, the amonts we will pay yo and any excess that applies. This insrance is only available to landlords of residential rental properties. These properties can be self managed or managed by a licensed real estate agent, on-site Property Manager or, in the case of short term rentals (sch as holiday homes), a letting agent. Abot Terri Scheer Terri Scheer Insrance Pty Ltd was established in 1995 to specialise in providing landlord insrance for owners of professionally managed residential rental properties. The fonder, Terri Scheer, designed landlords insrance in The Company is niqe in that it is the only insrance intermediary in Astralia to specialise solely in landlord insrance. Terri Scheer Insrance Pty Ltd provides training for licensed real estate agents and on site Property Managers who have been appointed as distribtors or referrers of Terri Scheer prodcts in the area of general insrance and claims handling, to ensre the best possible reslts for landlords. Date of preparation : 13th Febrary 2014 Version Nmber : TS /03/14 A terrischeer.com.a

6 4 Insrer AAI Limited ABN , AFS Licence No trading as Vero Insrance is the insrer and isser of the insrance Policy and is the isser of this PDS. References to s, we, Vero and or in this Policy are to the insrer. In arranging this insrance Policy, Terri Scheer Insrance Pty Ltd ABN , AFS Licence No will be acting nder athority given to them by Vero. They will be acting as agents of Vero, not as yor agent. How yo contact s Yo may contact Vero by calling: , or alternatively by writing to s at: Vero Insrance Limited GPO Box 1619, Adelaide, SA 5001 Type of tenancy This policy is designed to provide cover for landlords of residential rental properties which are sed for: Permanent tenancies, or As holiday let properties. Abot yor premim The premim is the amont we charge yo for this Insrance. It incldes the amont which we have calclated will cover the risk, as well as stamp dty, GST, other government charges and any fire services levy (FSL) that applies all of which will be shown on yor Policy Schedle. Yor premim incldes any disconts we have given yo. Yo can pay yor premim in one annal payment by cash, cheqe, postal order, MasterCard, Visa or BPay. Astralia s Leading Landlord Insrance Specialist

7 More details For frther details abot the way we calclate yor premim and for information abot the disconts yo may be eligible for, please refer to or Premim, Excesses, Disconts and Claim Payments Gide available at terrischeer.com.a. A copy of this gide can be provided to yo on reqest at no charge, if yo contact s on How to make a claim As soon as possible after the event that cases loss, damage or legal liability, yo mst follow the steps set ot in Making a Claim on page 35 of the enclosed policy wording. Contact Terri Scheer Insrance on , who will advise yo of the claims process and assist yo throgh the next steps. The amont yo pay towards a claim An excess is the amont yo are reqired to pay in the event of a claim. The amont of any excess that applies will either be set ot in the PDS on pages 39 to 40 or shown on yor Policy Schedle. Depending on the circmstances, yo might have to pay more than one type of excess when yo make a claim. Yo mst pay the excess in fll (if we ask for it) before we pay the claim. We will decide whether yo pay the excess to s or to a repairer or spplier. We may also choose to dedct the excess from the amont we pay yo or from the amonts we mst legally pay another person. More details For frther details abot or excesses, please refer to or Premim, Excesses, Disconts and Claim Payments Gide available at terrischeer.com.a. A copy of this gide can be provided to yo on reqest at no charge, if yo contact s on terrischeer.com.a

8 6 How a claim payment is calclated When we pay a claim we consider a nmber of aspects in calclating the amont. These can inclde the: Amont of loss or damage or liability, Excess, Sm insred, Policy limits, and Terms and conditions of the policy. How and when benefits are provided Benefits are provided following the sbmission of a claim. After considering the factors in How a claim payment is calclated, we will either: Pay for repair or replacement of yor bilding, or Pay the person to whom yo are legally liable, or Pay yo. More details For frther details on how we calclate and pay claims, please refer to or Premim, Excesses, Disconts and Claim Payments Gide available at terrischeer.com.a. A copy of this gide can be provided to yo on reqest at no charge, if yo contact s on The Policy does not cover certain things The Policy provides cover for losses cased by specific events and nder certain circmstances. This means that not all losses are claimable. The specific events we insre and don t insre yo for, along with the terms and conditions of cover, can be fond in the Policy Wording contained in this docment. Astralia s Leading Landlord Insrance Specialist

9 Yor dty of disclosre Before yo enter into a contract of general insrance with an insrer, yo have a dty, nder the Insrance Contracts Act 1984, to disclose to s every matter that yo know, or cold reasonably be expected to know, is relevant to or decision whether to accept the risk of the insrance and, if so, on what terms. Yo have the same dty to disclose those matters to the insrer before yo renew, extend, vary or reinstate a contract of general insrance. Yor dty however does not reqire disclosre: That diminishes the risk to be ndertaken by s, That is of common knowledge, That we know or, in the ordinary corse of or bsiness, oght to know, In respect of which we have waived yor dty. Non disclosre If yo fail to comply with yor dty of disclosre, we may be entitled to redce or liability nder the contract in respect of a claim or may cancel the contract. If yor non disclosre is fradlent we may also have the option of avoiding the contract from its beginning. The General Insrance Code of Practice We spport and adhere to the General Insrance Code of Practice. Yo can get a copy of the code from the Insrance Concil of Astralia website ( or by phoning (02) terrischeer.com.a

10 8 How we will deal with a complaint If yo are not satisfied with or prodcts or services or a decision made in relation to yor insrance, please let s know so that we can help. It is important to follow the complaint handling process in order to resolve yor complaint effectively and efficiently. Step 1. Let s know If yo wold like to make a complaint, please let s know by contacting the relevant department as they may be able to resolve the complaint for yo. If not, the staff member will refer yo to a Manager or their delegate and they will attempt to resolve the complaint. A response is sally provided to yo within 5 bsiness days. Yo can contact s: By phone: By cstomerservice@terrischeer.com.a In writing: GPO Box 1619, Adelaide, Soth Astralia 5001 Step 2. Review by or Internal Dispte Resoltion Team If yo are not satisfied with the otcome of the bsiness review yo can reqest the complaint be referred to the Internal Dispte Resoltion (IDR) Team for review or yo can contact them directly: By phone: By idr@terrischeer.com.a In writing: Internal Dispte Resoltion, Terri Scheer Insrance Ltd, PO Box 14180, Melborne City Mail Centre VIC 8001 If we reqire additional information we will contact yo to discss. IDR will sally contact yo with a decision within 15 bsiness days of receiving yor complaint. Step 3. Seek review by an external service We expect or procedres will deal fairly and promptly with yor complaint. However, if yo remain dissatisfied, yo may be able to access the services of the Financial Ombdsman Astralia s Leading Landlord Insrance Specialist

11 Service (FOS). FOS is an independent external dispte scheme and their service is free to yo. Any decision FOS makes is binding on s, provided yo also accept the decision. Yo do not have to accept their decision and yo have the option of seeking remedies elsewhere. FOS is available to cstomers who fall within their terms of reference. FOS will advise if they can help yo. Yo can contact FOS: By phone: By fax: (03) By In writing: Financial Ombdsman Service, GPO Box 3, Melborne VIC 3001 By visiting: Cooling off Yo have the right to cancel and retrn the insrance contract within 30 days of the date it was issed to yo ( cooling off period ), nless yo make a claim nder the contract within the cooling off period. If yo cancel dring this time, we will retrn the amont yo have paid. To cancel at other times, please see Cancelling yor policy on page 44 of the policy wording. terrischeer.com.a

12 10 Part 2: Policy Wording Or agreement with yo 11 Information yo need to tell s 11 Defined terms 13 Section 1: Bilding 17 What is Bilding? 17 Bilding is not 17 What we do and do not cover 18 Benefits within yor sm insred 22 Benefits in addition to yor sm insred 24 Basis on which claims are paid 25 Section 2: Loss of rent 28 What we do cover 28 Conditions Section 2 29 Basis on which claims are paid 31 Section 3: Liability to others 33 What we do cover (liability) 33 What we do not cover (liability) 33 Making a claim 35 General terms and conditions 42 General exclsions 46 Astralia s Leading Landlord Insrance Specialist

13 Or agreement with yo Yor Policy consists of this Policy Wording and the Policy Schedle we give yo. The Policy is a legal contract between yo and s: Yo agree to pay s the premim, and We will provide yo with the cover yo have chosen as set ot in the Policy, occrring dring the period of insrance shown on yor Policy Schedle or any renewal period. Information yo need to tell s Changing yor Policy If yo want to make a change to this Policy, the change becomes effective when we agree to it, and when we give yo a new Policy Schedle showing the revised details of the insrance. Any new Policy Schedle we give yo will be in writing, and it will be effective if it is delivered: To yo personally, or Posted to yor address last known to s. Change of circmstances dring the period of insrance Yo mst tell s as soon as possible: If yor personal details change, inclding yor name, mailing or insred address, If there is any significant change in condition or change in se of the property. For example, a change from a permanent tenancy to a holiday let property shold be notified, Of any changes that increase the risk of a claim being made nder this insrance, sch as that yo are having major renovations ndertaken or the property falls into a state of disrepair, terrischeer.com.a

14 12 If yo transfer the management of yor property from one licensed real estate agency to another licensed real estate agency dring the period of insrance, If the management of yor property changes from either being self-managed or to being managed by a real estate agent, on-site manager or letting agent, or vice versa. Astralia s Leading Landlord Insrance Specialist

15 Defined terms Some key words and terms sed in this Policy have a special meaning these words are shown in italic throghot this docment. If words and terms are only sed in jst one Section of the Policy, we will describe their special meaning in that Section. Wherever the following words or terms are sed in the Policy, they mean what is set ot below: Above grond pool Accidental loss or damage Act Act of Terrorism Actions or movement of the sea Bond money/ monies Bilding A pool that has most of its water volme above the average grond level. A sdden or nexpected loss which is cased by persons inclding yor tenant, their family or their gests, bt excldes: Damage cased over a period of time, Malicios damage, Damages otherwise exclded by this Policy, and Neglect, wear and tear. The Act of parliament relating to residential tenancies in yor state or territory. An act, inclding bt not limited to the se of force or violence and/or the threat of these, of any person or grop(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s) which from its natre or context is done for, or in connection with, political, religios, ideological, ethnic or similar prposes or reasons, inclding the intention to inflence any government and/ or to pt the pblic, or any section of the pblic, in fear. Incldes: Rises in the level of the ocean or sea, Storm srge, Sea waves, High tides or king tides, Tsnami, any other actions or movements in the sea. Those monies paid by the tenant and held as secrity deposit against damage or otstanding rent. Bilding is defined in Section 1: Bilding of this Policy terrischeer.com.a

16 14 Bilding sm insred Excess Floating timber floor boards Flood Holiday let property In-grond swimming pool Lease This is the maximm amont we will pay nder Section 1: Bilding dring any one period of insrance (exclding any amonts paid for Benefits in addition to yor sm insred ). The amont of yor bilding sm insred is shown in yor Policy Schedle. The first amont of any claim which yo contribte. We will dedct the amont of the excess before the application of the maximm sm insred limits. The excess mst be paid by yo and is not considered a re-letting expense to be dedcted from the tenant s bond money. Timber floors which are loosely laid (i.e. not fixed) onto a sb floor sch as a concrete slab. The floorboards may be secred arond the edge of the room or to each other, bt not to the sb floor. Flood means the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following: A lake (whether or not it has been altered or modified), A river (whether or not it has been altered or modified), A creek (whether or not it has been altered or modified), Another natral watercorse (whether or not it has been altered or modified), A reservoir, A canal, A dam. Tenancies which are not permanent tenancies and where each of the following applies: A docmented (paper or electronic) booking confirmation has been issed, No one individal booking is greater than 12 weeks in dration, and A deposit or fll rent payment has been made to yo or yor Property Manager. A pool which has most of its water volme below the average grond level. For permanent tenancies this is the contract in place between yo and the tenant to rent the property in accordance with the Residential Tenancy Act in yor state or territory. This can either be a fixed term, periodical or contination of the Lease. Astralia s Leading Landlord Insrance Specialist

17 Malicios damage Maximm amont Occrrence Period of insrance Permanent tenancy/ tenancies Policy Schedle Property Property Manager Rainwater Damage committed on the property which is motivated by spite, malice or vindictiveness with the intention of damaging the property. This does not inclde: Damage cased by the landlord or someone acting nder the express consent of the landlord or the landlord s family, Tenant carelessness, neglect, nhygienic living habits or poor hosekeeping, Damage cased by children, Damaged cased by domestic pets, Scratching, denting or chipping, or Damage as a reslt of repairs or attempted repairs carried ot by the tenant. The maximm we will pay (inclsive of all legal expenses) for any one occrrence arising from an insred event. Incldes continos or repeated exposre to sbstantially the same general conditions. We regard all death, bodily injry or loss of or damage to property arising from one original sorce or case as one occrrence. The period shown on the Policy Schedle. Tenancies which are governed by the Residential Tenancy Act in yor State or Territory. The schedle of insrance, or if we sbseqently give yo an endorsement notice, the endorsement notice. The bilding at the sitation set ot in the Policy Schedle which is: Owned by yo, For se by the tenant, Primarily sed a residential rental, and Where the sitation is no more than 2 acres in size. The licensed real estate agent or on-site Property Manager shown as the managing agent in the Policy Schedle. For holiday let properties, this also incldes letting agents. Rain which falls natrally from the sky. It incldes rainwater rn-off over the srface of the land, bt not flood. terrischeer.com.a

18 16 Rent Rent arrears Sitation Storm Storm srge Tenant Tenant s family Tenantable Tsnami Untenantable Watercraft Weekly rent sm insred Yo, Yor Yor family For permanent tenancies this is the rent applying nder the lease at the time of loss or damage. For holiday let properties this is rent from docmented (paper or electronic) rental bookings(s) or rental agreement(s), at the time of loss or damage. Means the tenant s rental payments were in arrears to the extent that a vacate/breach notice on the gronds of a breach of the lease to pay rent cold have been issed in accordance with the Act in yor state or territory. The address at which the property is located. Violent wind, cyclone or tornado which may also inclde rain, hail or snow. A rise in the sea level de to the meteorological conditions above the predicted astronomical tide level of a particlar day. The person or persons named in the lease or docmented (paper or electronic) booking confirmation who occpy the property and pay rent nder either a permanent tenancy or in a holiday let property. These people if they normally reside in the property the tenant s spose (legal or defacto), or partner, parents, parents- in-law, siblings or siblings of the tenant s spose, children or the children of the tenant s spose. The property cold be reasonably and safely re-let in its crrent condition withot adversely affecting the amont of rent being soght. A sea wave cased by a distrbance of the ocean floor or by seismic movement. Yo or yor Property Manager cold not reasonably attempt to re-let the property ntil loss or damage claimable nder this Policy has been repaired, replaced or reinstated bt does not inclde periods of elective maintenance or improvement. Any vessel, machine or object designed to be sed on or in water. This amont is set ot in yor Policy Schedle. The person(s), companies or firms named on the crrent Policy Schedle as the Insred. Any member of yor family who lives permanently with yo, inclding yor partner. Astralia s Leading Landlord Insrance Specialist

19 Section 1: Bilding What is Bilding? Bilding means the property owned by yo at the address shown in the Policy Schedle, sed principally and primarily as a residential bilding, and incldes: Domestic fixtres and fittings i.e. bilt in air conditioners and heaters, plmbed-in dishwashers, garbage disposal systems, cook tops, bilt-in cabinetry, doors, walls, windows (and glass), tap ware, hot water systems and shower screens, Strctral domestic improvements sch as paths, driveways, garden borders, yor proportion of fencing, gates, retaining walls, in-grond swimming pools and spas (inclding attachments which fit into their filter systems), Awnings, pergolas, fixed rainwater tanks, solar panels and their fixed accessories (e.g. inverters), TV antennae, satellite dishes and letter boxes, Fixed floor coverings sch as linolem, floor tiles and parqetry, (bt not carpets), Fixed light fittings which are hardwired to the bilding, Tennis corts, and Undergrond services sch as plmbing, sewerage, water and electrical which are located on yor property. Bilding is not Bilding does not inclde: Common property, Carpets, carpet nderlay or floating timber floorboards, Grass, lawn, artificial trf, plants, hedges, trees or shrbs, Soil or bark (mlch) in gardens, Above-grond pools, terrischeer.com.a

20 18 Any jetty or other marine strctre, Caravans, trailers or vehicles of any kind, Gravel, stones, shale or soil on paths, driveways or tennis corts. What we do and do not cover If any of the Insred Events listed in this Section 1 occr dring the period of insrance, we will pay for reslting loss or damage to yor Bilding. This will be on the basis set ot nder the heading Basis on which claims are paid and sbject to the, General terms and conditions and General exclsions applying to this Policy together with the reqirements otlined nder the heading Making a claim. Insred Events a) Accidental glass breakage in: Fixed glass i.e. windows, Fixed basins, Baths, Shower bases, and Lavatory pans or cisterns. We will not provide cover for glass: 8 That was damaged or that had imperfections before the breakage, or 8 That is only chipped or scratched or which arises from any imperfections in the glass. b) Accidental loss or damage We will not provide cover when: 8 The damage is covered by another Insred Event in this Section 1. c) Earthqake 8 Bt not any actions or movement of the sea. d) Electric motor brnot We will pay p to $2,000 for the cost to repair or replace any motor in a hosehold electrical machine or appliance, bt only if: The electrical machine or appliance forms part of yor bilding and, The motor is brnt ot by electric crrent, and The motor is brnt ot at the property. Astralia s Leading Landlord Insrance Specialist

21 We will not pay for: 8 Costs to replace fses or protective devices, contact switches or relays, lighting or heating elements, starter switches, other parts where sparking or arcing occrs dring their ordinary se, 8 Damage to mechanical parts of any description, 8 The hiring of a replacement appliance or machine, 8 Any electrical appliance or component which is not an electric motor, 8 Mechanical parts which do not carry an electric crrent sch as a pmp, 8 Loss of or damage to compter software or data stored on a compter, 8 Lighting or heating elements, fses or switches of any kind, 8 Damage to swimming pools, spas or their water as a reslt of fsion, or 8 Any amont recoverable nder a manfactrer s garantee or warranty. However, yo mst contribte towards the cost of replacement parts where the age of the motor is more than 5 years. The contribtion will be 7% of the cost of the replacement parts for each complete year of age from new. For example: If the motor is 6 years old, we will depreciate it by 42% (6 years x 7%), meaning that if the cost of replacement parts is $1000, we will dedct $420 depreciation. e) Fire or explosion. f) Flood Bt we do not cover loss or damage: 8 Cased by the actions or movements of the sea (e.g. storm srge, tsnami, high tides etc), 8 Cased by erosion, vibration, sbsidence, landslip, landslide, mdslide, collapse, shrinkage or any other earth movement, bt we will cover damage cased by a landslide or sbsidence that occrs within 72 hors of, and directly becase of flood and not becase of erosion over time, strctral falt or design falt, 8 To retaining walls, garden borders and free standing walls, 8 To gates, fences or wall fences that were in a state of disrepair which wold have been obvios to a reasonable person before the damage occrred, 8 Resltant cracking to paths, driveways, any otdoor srfaces, bt we will cover them if they are washed away by the flood, 8 To a sporting srface or cort, 8 To any wharf, jetty, pontoon or sea wall, 8 To water in a tank, swimming pools or spas or their liners or covers, terrischeer.com.a

22 20 8 For the cost of cleaning md or debris ot of tanks, swimming pools or spas, 8 To swimming pools and their parts or ndergrond tanks cased by water leaking down the sides, against the sides, or getting nderneath them, 8 To paintwork of yor bilding, if that is the only bilding damage cased by the flood, 8 The cost of cleaning yor bilding at the insred address. g) Impact by: Motor vehicles or water craft, Aircraft, space debris or satellites, Falling trees and branches, or TV antennae, satellite dishes or radio masts. We will not pay for: 8 Damage cased by tree lopping or felling carried ot by yo or at yor reqest, or 8 Removal of the fallen tree or branch nless it is reqired to allow repairs to be carried ot. h) Lightning, inclding power srge cased by lightning striking power spplies away from the property, bt only when yo can show s reasonable meteorological evidence that lightning was the most likely case of the power srge. i) Malicios damage cased by: Yor tenant, Yor tenant s family, Yor tenant s visitors, An nknown person e.g. a brglar. We will not provide cover when: 8 The property is damaged by yo or yor family or yor non-paying gests. j) Oil leakage from any heater. k) Riot or civil commotion. l) Storm or rainwater, bt there is no cover for loss or damage: 8 Cased by flood, 8 Cased by the action or movements of the sea, 8 Cased by wind, rainwater, hail or snow penetrating into yor bilding, nless it enters as a reslt of strctral damage made by the storm, 8 Cased by wind, rainwater, hail or snow penetrating into yor bilding as a reslt of falty design of yor bilding or falty workmanship in its constrction, 8 Cased by wind, rainwater, hail or snow penetrating into yor bilding as a reslt of strctral alterations, additions, renovations or repairs, Astralia s Leading Landlord Insrance Specialist

23 8 Cased by erosion, vibration, sbsidence, landslip, landslide, mdslide, collapse, shrinkage or any other earth movement, bt we will cover damage cased by a landslide or sbsidence that occrs within 72 hors of, and directly becase of a storm and not becase of erosion over time, strctral falt or design falt, 8 De to rst, corrosion, wear, tear or gradal deterioration, 8 To swimming pool or spa covers or liners, 8 Reslting from yor failre, or failre by yor Property Manager, to maintain the property in a good state of repair or failre to fix damage or deterioration, 8 De to a defect that yo or yor Property Manager were aware of or shold reasonably have been aware of, 8 To retaining walls, free standing walls, or 8 To gates, fences or wall fences that wold be considered by a reasonable person to be in an obvios state of disrepair before the loss or damage occrred. Under no circmstances will we pay the cost of rectifying the defect itself. m) Theft or damage de to theft cased by: Yor tenant, Yor tenant s family, Yor tenant s invited gests, or An nknown person e.g. a brglar. We will not provide cover if: 8 Cased by yo or yor family, yor non-paying gests or any person acting for yo. n) Water damage de to the accidental escape of liqid from any: Rainwater pipes, roof gttering and drains, Water main or pipe, Water tanks, aqarims and hot water systems, Roads, pathways, gtters, Washing machine or dishwasher, and Other parts of the property designed to contain or carry liqid sch as sinks, basins, baths and cisterns. We will not provide cover for: 8 Loss or damage cased by the gradal escape of liqid over a period of time, 8 Loss or damage cased by the poros condition of any tiles, grot or sealant, 8 Loss or damage de to a leaking shower base which has not been fitted with a tray or water proof membrane, or 8 The cost to locate or repair the defective part or item that cases the loss or damage. Please refer to Benefits in addition to yor sm insred, section d) Location costs escaping liqid for more details. terrischeer.com.a

24 22 Benefits within yor sm insred The following additional benefits are payable provided that yor bilding sm insred is not exhasted. For any additional benefits to be payable yo mst sffer or incr the relevant loss or damage to yor bilding dring the Period of insrance. Benefit a) Fees If we agree to pay a claim nder this Section 1 for loss of or damage to yor bilding, we pay any reasonable fees which we have approved and which are incrred directly in relation to repair or replacement of yor bilding. b) Removal of debris If yor bilding is damaged and we agree to pay a claim nder this Section 1, then we will pay the reasonable costs of demolition and removal of debris from the site to the nearest athorised facility. If the damage for which we agree to pay a claim is cased by a fallen tree, which as a reslt becomes debris, we also agree to remove the tree from the site. We will remove a standing tree or branch that formed part of the tree that cased the insred damage only if: We agree that the remaining tree or branch is nsafe, The remaining tree or branch only became nsafe as a direct reslt of the event covered nder this Policy casing damage to the tree, and All necessary approvals have been obtained and removal of the tree or branch wold not reslt in a breach of any laws, by-laws, reglations or contractal obligations. We will remove a stmp that formed part of the tree that cased the insred damage only if: All necessary approvals have been obtained and removal of the stmp wold not reslt in a breach of any laws, bylaws, reglations or contractal obligations, and Not removing the stmp wold interfere with repairing or replacing the damaged part of the bilding reqired to settle yor claim. c) Extra costs of re-instatement If yor bilding is damaged, and we agree to pay a claim, we pay the extra costs necessary to meet the reqirements of any stattory athority in connection with rebilding or repairing the bilding at the site. If only part of yor bilding is damaged, we pay only the extra costs yo incr in repairing that part. Astralia s Leading Landlord Insrance Specialist

25 We do not pay any extra costs which reslted from any notice which a stattory athority served on yo before yor bilding sffered loss or damage. d) Replacement of locks and keys We pay p to $1,000 to replace or alter locks and/or keys if the: Locks to yor bilding are damaged, or Keys to yor bilding are lost, damaged or stolen from anywhere in Astralia, provided sch loss, damage or theft was not connected with the tenant or tenant s family or tenant s visitors or anyone living in yor bilding. e) Contracting prchaser If yo have entered a contract to sell yor bilding, this Policy insres the prchaser from when they become liable for any damage to yor bilding ntil the contract is settled or terminated, or ntil the prchaser insres yor bilding, whichever happens first. f) Home rebilt at another address If yor bilding is replaced as a reslt of loss or damage insred by this Policy, yo may do so to yor specifications at the sitation shown on yor Policy Schedle or another address yo choose. We do not cover: 8 Any amont in excess of the amont we wold pay if the change of address or specifications had not occrred. terrischeer.com.a

26 24 Benefits in addition to yor sm insred The following additional benefits, if payable, do not exhast yor bilding sm insred. For any additional benefits to be applicable yo mst sffer or incr the relevant loss or damage to yor bilding dring the Period of insrance. Benefit a) Atomatic Reinstatement of sm insred This benefit applies to the bilding sm insred for yor bilding as shown on the Policy Schedle. Following payment of a claim other than a claim for total loss the bilding sm insred will be reinstated, nless: Yo reqest otherwise, or We tell yo otherwise. b) Inflation adjstment Dring each period of insrance we increase the bilding sm insred by 0.25 of 1% of the bilding sm insred shown on the crrent Policy Schedle per month, ntil the next renewal date. c) Legal Costs If we agree to pay a total loss claim nder Section 1 for loss of or damage to yor bilding, we will pay the reasonable legal costs incrred in discharging any mortgage over yor bilding. d) Location costs escaping liqid If we have agreed to pay a claim cased by Insred Event n) Water damage nder Section 1, we will also pay the reasonable costs of locating the sorce of the leak, and of reinstating the parts of yor bilding damaged or distrbed in the corse of work. We do not pay for repair or replacement of the apparats, tank or pipe itself. Astralia s Leading Landlord Insrance Specialist

27 Basis on which claims are paid Limit of amont payable The maximm amont we will pay nder Section 1: Bilding, dring any one period of insrance (exclding any amonts paid for Benefits in addition to yor sm insred ) is the bilding sm insred shown in the Policy Schedle. How we calclate what we will pay After considering the terms and conditions of the Policy we will determine the amont of loss or damage that is covered. This will be redced by: Any available bond money from the tenant*, then By any applicable excess (s)**. We will then apply the policy limit (if applicable) to yor claim and pay yo the remaining amont. *Refer to Bond money permanent tenancies and Bond money holiday let properties in the General Terms and Conditions section of this Policy for how bond money is applied to yor claim. **Refer to section Making a Claim for excess vales and how they are applied. Repairing and replacing yor bilding When an insred event cases loss or damage to yor bilding dring the period of insrance, and we accept yor claim, we will decide which of the following actions we will take. Repair if we establish yor bilding can be repaired, then we will repair it sing new materials. Replace if we establish that yor bilding needs to be replaced, then we will replace it sing new materials. Pay yo the amont to repair or replace if we decide to pay the cost of repairing or replacing yor bilding then we will pay the lesser of the bilding sm insred, the retail vale of the bilding fixtre (if applicable) at the time of the loss or damage or the repair cost (if repairs are possible), whichever is less. terrischeer.com.a

28 26 When yo do not want to replace or repair yor bilding if yo do not want s to replace or repair yor bilding and want cash instead, we will pay yo the indemnity vale of the bilding, the bilding sm insred or the repair cost (if repairs are possible), whichever is the lesser. Unless specified otherwise, we will assess yor claim on the basis of the replacement vale of the bilding, bt to an amont no greater than the bilding sm insred shown in yor Policy Schedle. Replacement vale for the prposes of this section means the reasonable and necessary cost of rebilding, replacing or repairing the bilding (at the time of the loss or damage), to a condition which is eqivalent to, bt not more extensive than when it was new. Indemnity vale for the prposes of this section means the replacement vale, less an allowance for the age, wear and tear and depreciation of yor bilding at the time of the loss or damage. If yo case nreasonable delays in commencing or carrying ot the rebilding work, yo mst pay any extra costs that reslt from yor delay. Matching bilding materials When we repair yor bilding we will try to retrn it to the same condition as when new, or when last renovated, by making all reasonable endeavors to match existing bilding materials. Where materials that are reqired to settle a claim that we have agreed to pay are not commercially available in Astralia, then at or option we will: Replace the damaged or lost material with the nearest eqivalent or similar new material available in Astralia or overseas, or Pay the cost to replace the damaged or lost material with the nearest eqivalent or similar new materials available in Astralia or overseas, bt only in the room where the loss or damage occrred. Astralia s Leading Landlord Insrance Specialist

29 If only a part of yor bilding is damaged and we agree to pay yor claim, we will only pay for the part, or parts of the bilding that actally sstained damage. We do not pay to replace ndamaged materials. However, if: It is not possible to acqire new material that reasonably matches the ndamaged material, and The amont of damaged material that cannot be matched to the ndamaged material is more than 40% of the total material reqired if all the damaged and ndamaged material was replaced, then we will replace both the damaged and ndamaged materials. Example 1 There are 300 matching white wall tiles in the bathroom. As a reslt of a brst pipe, 8 bathroom wall tiles are damaged and we agree to pay the claim. In this example we wold pay only the reasonable cost to repair or replace the 8 damaged tiles to a condition sbstantially the same as when new. If it is not possible to locate matching tiles we wold still pay only the reasonable cost to replace the 8 damaged tiles. Example 2 There are 300 sperseded, matching wall tiles in the bathroom. As a reslt of a brst pipe, 140 wall tiles are damaged and we agree to pay the claim. It is not possible to locate tiles that reasonably match the remaining 160 tiles. Over 40% of the matching wall tiles have been damaged, therefore we wold pay the reasonable cost to replace all 300 tiles (140 damaged and 160 ndamaged) to a condition sbstantially the same as when new. We wold be entitled to keep the 160 ndamaged wall tiles by way of salvage. We wold not pay to replace any tiles located in a room other than where the loss or damage occrred. Salvage We can take and keep any recovered or salvaged item and sell it and keep the proceeds after we have replaced the item or paid yo for it. terrischeer.com.a

30 28 Section 2: Loss of rent What we do cover We will cover yor loss of rent in connection with a permanent tenancy cased by the Untenantable Permanent tenancies Insred Event listed in this Section 2 occrring dring the period of insrance. The cover provided by this section is sbject to the basis set ot nder the heading Basis on which claims are paid and is sbject to the Limits and Conditions applicable to this section and the General Terms and Conditions and General Exclsions applying to this Policy together with the reqirements otlined nder the heading Making a claim. Cover nder this Section 2 will be extended to inclde the Untenantable holiday let properties Insred Event listed below if: Yo have told s that yor property is sed as a holiday let property, and This is shown on yor Policy Schedle. Insred Event a) Untenantable Permanent tenancies Yor property becomes ntenantable for a minimm period of 7 days de to damage to the bilding cased by: Limit 52 weeks loss of rent Malicios damage by nknown persons, Theft, Fire or explosion, Lightning, Earthqake, Riot or civil commotion, Water damage, Oil leakage, Accidental glass breakage, Impact, Flood, Storm or rainwater, or Electric motor brnot. Astralia s Leading Landlord Insrance Specialist

31 We will pay loss of rent from the date the property became ntenantable ntil whichever of the following occrs first: The property becomes tenantable, The commencement of a new tenancy, or The Limit is reached. b) Untenantable holiday let properties Yor property becomes ntenantable de to damage to the bilding cased by: Malicios damage by nknown persons, Theft, Fire or explosion, Lightning, Earthqake, Riot or civil commotion, Water damage, Oil leakage, Accidental glass breakage, Impact, Flood, Storm or rainwater, or Electric motor brnot. We will pay yor loss of rent commencing from the date the property became ntenantable ntil whichever of the following occrs first: The property becomes tenantable, The commencement of a new booking, or The Limit is reached. Dring the period the property is ntenantable, we will only pay for loss of rent for those days where a docmented rental booking was in place sbject to the limit shown. 52 weeks loss of rent per claim, bt no more than $50,000 in any one period of insrance. Conditions Section 2 A claim nder Section 2 Loss of rent may be refsed or redced if the following terms and conditions have not been met or followed. Loss of rent before commencement of policy We do not cover loss of rent, for any period before the commencement of the initial period of insrance. terrischeer.com.a

32 30 Market conditions This Policy does not cover yor inability to rent the premises de to adverse market conditions. This means that if none of the Insred Events covered by Section 2 has occrred and the conditions of the rental market dictate that a vacancy period will be sstained between tenancies, the Policy will not cover that loss. Alternate accommodation Section 2 does not provide cover for alternate accommodation costs for the tenant as a reslt of the property becoming ntenantable for any reason. Failre to repair and re-let Yo or yor Property Manager mst demonstrate that all reasonable steps have been taken to repair and re-let the property as soon as possible after the departre of the tenant or damage is discovered. If yo fail to do so, we will commence the loss of rent claim from the point in time that it wold have been reasonable to have repaired any damage and attempted to re-let the property. Delaying repairs If yo case nreasonable delays in commencing or carrying ot any repair or rebilding work, we will redce the rental income benefit to take into accont any loss of rent that reslts from yor delay. Vacant at time of loss Untenantable loss of rent cover nder Section 2, will only apply when: The property was tenanted immediately prior to, or at the time of it becoming ntenantable, or Yo can demonstrate that the property wold have been tenanted had the loss not occrred. Astralia s Leading Landlord Insrance Specialist

33 Basis on which claims are paid How we calclate what we will pay Permanent tenancies Loss of rent is calclated sing either: The weekly rent of the tenant in accordance with their crrent lease, or The weekly rent sm insred on yor Policy Schedle, whichever is less. This is then mltiplied by the nmber of week s loss of rent that yo are entitled to nder this Policy. The resltant amont, if it exceeds the policy limit that applies to the event being claimed, is then redced to that policy limit. Holiday let properties Loss of rent is calclated and payable based on the daily rent of each booking that cold not be flfilled dring the period the property was ntenantable. The daily rent of the tenant as described above, is then mltiplied by the nmber of day s loss of rent that yo are entitled to nder the policy. This calclation will inclde: Any paid rent or deposits yo have retrned to tenants in relation to their docmented rental bookings which cold not be flfilled, pls Any npaid rent in relation to docmented rental bookings or rental agreements which cannot be flfilled, pls Any other shortfall in rent received for the period when ftre bookings cannot be accepted. If necessary, any shortfall in rent received will be determined by comparing the rent received to that received in the same period in the previos financial year and taking into accont any change in the rents in this financial year. terrischeer.com.a

34 32 The rent payable for each booking will then be combined. The resltant amont, if it exceeds the policy limit that applies to the event being claimed, is then redced to that Policy limit. Claims for more than one Insred Event Where a claim is payable nder more than one of the Insred Events of this Section, yo may only claim nder one of those Insred Events for any one period of rent loss. Astralia s Leading Landlord Insrance Specialist

35 Section 3: Liability to others What we do cover (liability) This section insres yor legal liability as the landlord and owner of the property in respect of an occrrence happening dring the period of insrance at the sitation which yo did not expect or intend to happen and which cases: Death or bodily injry to other people, or Damage to other people s property, sbject to the General Terms and Conditions and General Exclsions applying to this Policy together with the reqirements otlined nder the heading Making a claim. The maximm amont we will pay for any claim or series of claims arising ot of any occrrence is $20,000,000. The maximm amont incldes all legal expenses: Incrred by s, Incrred by yo with or prior written consent, and Which are recoverable from yo by a claimant when or lawyer is acting on yor behalf. What we do not cover (liability) We will not indemnify yo for any claim: 8 In respect of death or bodily injry to yo or yor family, 8 In respect of damage to property: Owned by yo, or anyone employed by yo, or Not owned by yo bt in yor cstody care and control, 8 For any liability to pay benefits nder any domestic workers compensation or accident compensation legislation, 8 For death of or bodily injry to anyone employed by yo or someone who lives with yo if the death or injry arises ot of their employment, 8 Arising nder the terms of any agreement nless liability wold have attached to yo in the absence of sch agreement, terrischeer.com.a

36 34 8 Cased by the ownership possession or se of any: Motorised or mechanically propelled vehicle or motor cycle, Trailer or caravan, Aircraft, aerial device or watercraft, or Any vehicle or craft that is reqired by law to be insred nder a complsory third party insrance Policy or scheme at the time of any occrrence. However, this exclsion will not apply to any motorised garden appliance that is not reqired by law to be insred nder a complsory third party insrance Policy or scheme at the time of any occrrence, 8 In connection with yor trade, profession or employment other than as landlord and owner of the property, 8 Arising ot of alterations, renovations or bilding works at the property, where the cost of bilding or contract works, inclding labor and materials, exceeds $50,000, 8 Arising ot of any deliberate or intentional act by yo or someone acting with yor consent, 8 Arising ot of any nlawfl or criminal act, 8 Arising ot of pregnancy or the transmission or spread of any infectios disease or virs, 8 For any fine, penalty, pnitive, exemplary, aggravated or mltiple damages, 8 Arising from demolition, vibration or interference with spport of land, bildings or other property, 8 Arising ot of the discharge, dispersal, release or escape of smoke, vapors, soot, fmes, acid, alkalis, toxic chemicals, liqid or gases, waste materials or other irritants, contaminants, or polltants into or pon land, the atmosphere or any watercorse or body of water or any costs and expenses incrred in the prevention or remediation of sch contamination or polltion, or 8 Cased by or arising directly or indirectly, ot of or in connection with the actal or alleged se or presence of asbestos. Astralia s Leading Landlord Insrance Specialist

37 Making a claim Actions yo mst take in the event of loss or damage In the event of loss or damage yo mst take the following actions: Take all reasonable precations to prevent any frther loss, damage or liability, If yor property sffers malicios damage or theft then yo mst report it to the police. If the loss is expected to exceed $10,000, then the police report nmber needs to be sbmitted with yor claim, Not carry ot repairs, except to prevent any frther loss or damage, ntil we have had the opportnity to examine the damage and have athorised repairs, Not delay in arranging the repair or replacement of stolen or damaged items after we have given yo the athority to do so. We will not pay any increased costs or expenses which reslt from yor nreasonable delay in retrning the property to a tenantable condition, Contact s as soon as possible after yo become aware of any loss, damage or liability (refer to yor Policy Schedle for the phone nmber). We will help and advise yo, and explain the next steps yo shold take. We may also arrange for an assessor to attend and inspect yor property if reqired, Keep any damaged property or stolen property that yo recover and let s inspect it if we need to. Please remember that we take over yor legal right to recover the insred bilding, and Not admit falt or settle or defend a claim withot or prior agreement. If yo do not follow these steps we may be entitled to redce the amont payable to yo or refse to pay a claim. terrischeer.com.a

38 36 Providing Proof Within a reasonable period of time of yo becoming aware of loss, damage or liability yo mst give s fll written details of yor claim. Docments which we may ask for inclde bt are not limited to: A copy of the tenant s rental payment history and Lease if the claim involves loss of rent, malicios/accidental damage or theft by yor tenant, Proof of ownership i.e. receipts, valations, photographs, warranties, instrction manals etc for items which have been stolen or damaged, Itemised qotes to repair/replace damaged items. If we have appointed an assessor, they can assist with sorcing qotes if reqired, Invoices to establish the cost of re-letting expenses that were dedcted from the tenant s bond money Copies of entry/exit and rotine property inspection reports along with photographs to spport a claim for damage, Any other cort issed docments, letter, claim, writ or smmons, in relation to a claim, as soon as possible after yo receive it, Written booking confirmations, extensions and deposits made by ftre gests for holiday let properties. Claims for loss of income will not be accepted for bookings made verbally which are not accompanied by a written booking confirmation, and Evidence of the rental vales being claimed (for holiday let properties), either by: The immediate past twelve months rental history, or A comparative valation by a real estate agent, or Copies of all booking docmentation in respect of crrent gests. Astralia s Leading Landlord Insrance Specialist