Your Belvoir Lettings Property Investor Legal Expenses and Tenant Default Insurance Policy

Transcription

1 Your Belvoir Lettings Property Investor Legal Expenses and Tenant Default Insurance Policy 1

2 Introducing Your Belvoir Lettings Property Investor Legal Expenses and Tenant Default Insurance Policy This policy sets out the agreement between the Policyholder and ARAG. Please read it carefully to familiarise yourself with the terms and conditions. If you are unsure about anything you have read please contact whoever you purchased your policy from. About ARAG plc ARAG plc is a specialist legal expenses insurance provider. We are authorised to administer this insurance on behalf of the insurer, Brit Insurance Limited. Our Registered Office is at 9 Whiteladies Road, Clifton, Bristol BS8 1NN. We are registered in England number Find out more about us at ARAG plc is authorised and regulated by the Financial Services Authority (FSA firm reference number ). Brit Insurance Limited is authorised and regulated by the Financial Services Authority (FSA firm reference number ). FSA registration can be checked by visiting the FSA website at or by contacting the FSA on How to contact us for personal legal advice or tax advice Phone us on at any time to get legal advice over the 'phone about any problem you have either as or on behalf of a landlord or for advice about UK tax rules. Legal Advice is available 24/7 365 days a year while we can respond to enquiries about UK tax law between 9.00am and 5.00 pm Monday to Friday. How to download legal documents for landlords Once registered, you can download legal documents to demand unpaid rent, give notice of the deposit protection scheme and you can access various other documents that will help you as a landlord and property owner. You can also access our on-line law guide. Register at and enter the voucher code EC426C378CB8. What to do if you need to claim under this policy If you need to report a claim: 1. You must never instruct your own lawyer as the insurer will not pay their charges and it could stop your claim being covered. 2

3 2. Please telephone This line is open between Monday to Friday from 9.00am to 5.00pm. It will help us if you quote policy number We will take your details and or send you a claim form to fill in. Alternatively, you can download a claim form at 3. Tell us about your claim straight away as soon as you become aware of the Contingency having occurred. If You are claiming in England and Wales due to your tenant falling two months behind with their rent we can arrange for a Section 8 notice of repossession to be served. Providing we accept your claim, we will arrange for a solicitor to quickly contact you with a view to progressing the case. If you change your mind after taking out the policy The policy provides you with a 14 day reflection period in which to decide whether you wish to continue. Cancellation is fully explained in condition 9 of the policy. What happens if you have a complaint? We are committed to providing a first class service at all times. If, however, a complaint arises, please address it in the first instance to our Customer Relations Department at the address shown above for ARAG plc. Alternatively, you can details of your complaint to customerrelations@arag.co.uk We will take your complaint seriously and will thoroughly review it. If the matter is not concluded to your satisfaction, you may refer it to the Financial Ombudsman Service. They can be contacted at Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR. telephone: enquiries@financial-ombudsman.org.uk You will not be charged for using the Financial Ombudsman Service and using this service will not affect your right to take legal action. What happens if the insurer cannot meet its liabilities? Brit Insurance Limited is covered by the Financial Services Compensation Scheme ( FSCS ). You may be entitled to compensation of 90% of the cost of your claim in the unlikely event that the Insurer cannot pay it. Further information about compensation scheme arrangements is available from the FSCS. ( 3

4 Your Belvoir Lettings Property Investor Legal Expenses and Tenant Default Insurance Policy The following notes are to assist You to understand Your Belvoir Lettings Property Investor Legal Expenses and Tenant Default Insurance cover and the process that You must follow to get the best from this policy. As soon as You are aware of a legal problem that arises from a matter relating to Your Investment Property You should contact the legal advice helpline on without delay. Please quote Policy number If You require Your tenant to leave Your Investment Property and need to serve them with notice under Section 8 of the Housing Acts, We can help with this provided that the Investment Property is in England or Wales. Please contact Us on and ask for a claim form. (A section 8 notice can be served as soon as your tenant is two months in arrears with their rent ). If Your Investment Property is in Scotland or Northern Ireland You must arrange to serve the correct legal notices on Your tenant before making a claim for repossession under this policy. If You think that You might need to claim for any other Contingency covered by this policy please contact the number above to obtain a claim form. You can contact Us from Monday to Friday between 9.00am and 5.00pm. Alternatively You can download a claim form at You must never instruct Your own solicitor as the Insurer will not pay their charges it could stop Your claim being covered. ARAG plc will assess cover for Your claim only on receipt of all the information required. Provided that Your claim is accepted ARAG will arrange for a solicitor to contact You to progress Your case. Definitions Each time We use one of the word of phrases listed below it will have the same meaning wherever it appears in this policy. A defined word or phrase will start with a capital letter each time it appears in this policy Appointed Advisor The solicitor, accountant, or other advisor appointed by ARAG to act on behalf of the Insured under the terms of this policy. Collective Conditional Fee Agreement The agreement between the Appointed Advisor and Us for paying his or her professional fees which is an enforceable conditional fee agreement within the meaning of sections 58,58A, Courts and Legal Services Act 1990 (as substituted and inserted by section 27, Access to Justice Act 1999) which does not refer to specific proceedings but which provides for the appointed advisor's fees and expenses to be payable on a common basis. Conditional Fee Agreement The separate agreement between You and the Appointed Advisor for paying his or her professional fees which is an enforceable conditional fee agreement within the meaning of sections 58,58A, Courts and Legal Services Act 1990 (as substituted and inserted by section 27,Access to Justice Act 1999). The format and contents of which have been agreed by Us before it has been entered into. 4

5 Investment Property The property which You own or are responsible for letting that is located in England & Wales, Northern Ireland or Scotland and is let for residential purposes in accordance with the terms and conditions of this policy Insurer Brit Insurance limited Insured (1) You, Your directors, partners, managers, officers and employees acting in relation to Your Investment Property (2) The estate, heirs, legal representatives or assigns of any persons mentioned in (1) in the event of such person dying (3) A person declared to Us, who is contracted to perform work for You who is in all other respects insured by You on the same basis as Your other employees and who performs work under Your supervision Legal Costs and Expenses (1) For all Contingencies other than as provided for in (2) below (a)reasonable legal costs, fees and disbursements reasonably and proportionately incurred by the Appointed Advisor on the Standard Basis and agreed in advance by Us (b) Other side s costs, fees and disbursements incurred in civil claims where the Insured has been ordered to pay them or pays them with Our agreement. (c) The Insured's loss of earnings up to a maximum of 100 per day and 1,000 in total while i) travelling to and from and attending court or tribunal at the request of the Appointed Advisor ii) performing jury service to the extent that such earnings are not recoverable from the court or tribunal (2) For Contingencies 1C, 4 and 7(3) where the claim is brought in England and Wales and falls outside the jurisdiction of the Small Claims Court, reasonable legal costs reasonably and proportionately incurred by the Appointed Advisor (3) For Contingency 5 - Reasonable accountancy fees, disbursements and other costs reasonably incurred by the Appointed Advisor and agreed in advance by Us (4) For Contingency 1D - Accommodation costs up to 75 per day for a maximum of 30 days while You are unable to get possession of Your Premises provided that possession is sought because You wish to live at Your Premises (5) For Contingency 2 - Rent as described in this policy Limit of Indemnity The maximum Legal Costs and Expenses and compensation awards payable by the Insurer for all claims related by time or original cause which shall be: For Contingencies 1ABCD and 2 50,000 For all other Contingencies 100,000 5

6 Period of Insurance From the effective date until the expiry date shown in the Schedule and and subsequent period for which We accept premium for the Investment Property insured under this policy Reasonable Prospects of Success Where the Insured has a greater than 50% chance of successfully defending or pursuing a claim. If the Insured is seeking damages or compensation, there must also be a greater than 50% chance of enforcing any judgment that might be obtained In criminal prosecution claims where the Insured (a) pleads guilty, where there is a greater than 50% chance of successfully mitigating any sentence or fine or (b) pleads not-guilty, where there is a greater than 50% chance of that plea being accepted by the court. In all claims involving an appeal, where the Insured has a greater than 50% chance of being successful. Schedule The document which specifies details of the Policyholder, Investment Property insured and any excesses and endorsements applying to the policy Small Claims Court A court in England & Wales that hears a claim falling under the small claims track in the County Court as defined by Section 26.6 (1) of the Civil Procedure Rules 1999; a court in Scotland that uses the small claims procedure as set out by the Act of Sederunt (Small Claims) Rules 2002 or a court in Northern Ireland where the sum in dispute is less than 3,000. Territorial Limits For Contingencies 1A, 2, 4AB & C, 5A & B and 7 The United Kingdom of Great Britain and Northern Ireland and the Isle of Man and Channel Islands. For Contingencies 1B and 1 C The United Kingdom of Great Britain and Northern Ireland For Contingencies 3A & B and 6 Member states of the European Union, the Isle of Man and Channel Islands. We/Us/Our ARAG plc who are authorised under an agreement with the Insurer to administer claims under this policy You/Your/The Policyholder The companies, partnerships or unincorporated associations named in the Schedule as the Policyholder and/or any individual engaged in the business of property investment and who appoints The Policyholder to manage the letting of their Investment Property Cover For those Contingencies shown in the Schedule, the Insurer will pay the Insured's Legal Costs and Expenses (and Compensation awards under Contingency 6B) up to the Limit of Indemnity including the cost of appeals provided that: (1) the Contingency occurs within the Territorial Limits 6

7 (2) the claim (a) always has Reasonable Prospects of Success (b)is reported to Us during the Period of Insurance and immediately the Insured first becomes aware of circumstances which could give rise to a claim under this policy (c) unless there is a conflict of interest the Insured always agrees to use the Appointed Advisor chosen by Us in any claim (i) (ii) falling under the jurisdiction of an Employment tribunal or the Small Claims Court, and/or prior to the issue of legal proceedings (d) any proceedings or hearing are dealt with by a court, tribunal or other body that We agree to in the Territorial Limits (e) in respect of Contingencies 1C, 4 & and 7(3) the Insured enters into a Conditional Fee Agreement with the Appointed Advisor or the Appointed Advisor enters into a Conditional Fee Agreement with Us if the claim will be decided in a court within England & Wales and falls outside the jurisdiction of the Small Claims Court. Contingency 1A - Property nuisance, damage and trespass (1) An event which causes visible damage to Your Investment Property and/or anything owned by You at Your Investment Property (2) a public or private nuisance or a trespass relating to Your Investment Property What is not covered under Contingency 1A (1) Damage to the Investment Property that arises from or relates to a contractual agreement other than a tenancy agreement (2) The first 250 of each and every claim brought under (2) above, except where You bring a claim against a person who is living at the Investment Property without Your permission. We will ask You to pay the first 250 when We accept Your claim (3) Trespass by Your tenant or ex-tenant. (4) Defending any claim brought against You unless defending a counter-claim (5) The compulsory purchase of or restrictions or controls placed on Your Investment property by any government, local or public authority Contingency 1B Repossession Cover for tenancies under the Housing Acts for England, Wales and Scotland Pursuit of Your legal rights to repossess the Investment Property that You have let under (i) an assured shorthold tenancy; or (ii) a shorthold tenancy; or (iii) an assured tenancy; as defined by the Housing Act 1988 as amended by the Housing Act 1996 and the Assured Tenancies (Amendment) (England) Order 2010 or the Housing (Scotland) Act Providing 7

8 (a) For Investment Properties in England & Wales You have notified Us that You wish to serve notice on Your tenant to leave Your Investment Property and We have arranged for a solicitor chosen by Us to give the tenant notice for repossession of the Investment Property under Schedule 2, Part 1 (grounds 1 to 8) of the Housing Act 1988 as amended by the Housing Act 1996; or (b) For Investment Properties in Scotland You have correctly served notice for repossession if the Investment Property under Schedule 5, Part 1 (grounds 1 to 8) of the Housing Act (Scotland) 1988; or (c) For Investment Property in England, Wales and Scotland You have served the correct notices on Your tenant to recover possession of Your Investment Property when the tenancy comes to an end under - Part 1, Section 21 of the Housing Act 1988 amended by the Housing Act 1996; or - Part 2, Section 33 of the Housing Act (Scotland) Cover for tenancies that do not fall under the Housing Acts for England, Wales and Scotland Pursuit of Your legal rights to repossess the Investment Property that You have let (i) under a contractual tenancy agreement that was created after 1988 where the Investment Property is let for residential purposes and the annual rent is no greater than 100,000 and the provisions of the Housing Acts in England, Wales and Scotland do not apply to Your tenancy; or (ii) in accordance with the Private Tenancies (Northern Ireland) Order 2006; or (iii) to a limited company or business partnership for residential use by employees; or (iv) to Your employee or ex-employee (v) where You live at Your Investment Property and have one or two written licence agreement(s) which contain(s) a termination clause Provided that (a) in respect of 1B(i) above You will be seeking repossession in accordance with the forfeiture clause of the contractual tenancy agreement (b) in respect of contingency 1B)(iv)above You will be seeking to invoke the termination clause. Contingency 1C - Recovery of rent arrears Pursuit of Your legal right to recover rent owed to You by Your tenant or ex-tenant Contingency 1D Accommodation costs Your accommodation costs up to 75 per day up to a maximum of 2,250 in total while You are unable to get possession of Your Investment Property providing that possession is sought because You wish to live at the Investment Property Contingency 2 Tenant default Following a claim We have accepted for repossession of the Investment Property under Contingency 1B above, the Insurer will pay You 8

9 any rent owed to You until You gain possession provided that rent first falls into arrears and is reported during the Period of Insurance and while the tenant is living at the Investment Property Once You have gained possession of the Investment Property the most the Insurer will pay shall be 75% of the monthly rent that was previously payable for a maximum further period of 2 months provided that You agree to relet the Investment Property where an offer equal to or greater than 85% of the preceding rent is offered The Insurer will pay up to a maximum of eleven month s rent (after the first unpaid month s rent). What is not covered under Contingency 1A You are responsible for the first unpaid month s rent Conditions Precedent to Contingency 2 You must (1) have signed a tenancy agreement with each tenant before You allow occupation of the Investment Property (2) obtain, prior to granting the tenancy, either (i) a satisfactory tenant reference to include written references from a previous managing agent or landlord where applicable, or an employer (or any other financial source); and a basic credit report; or (ii) where there is a guarantor, a satisfactory written tenant reference from a previous managing agent or landlord where applicable, and for each guarantor a satisfactory employer or other financial reference and basic credit report (iii) You should not grant the tenancy if You are in any doubt of the integrity or the financial standing of the tenant (3) ensure that all conditions on the reference report are met and be able to demonstrate that they have been met (4) not enter into a tenancy agreement where a person has been requested to stand surety for the tenant unless that person has entered into a legally enforceable agreement in Your favour (5) not allow a tenant to occupy the Investment Property until the first month s rent and the dilapidations deposit has been paid in cash or payment has cleared in Your bank account (6) comply with statutory regulations relating to such deposits before allowing a tenant to occupy the Investment Property (7) ensure that all statutory requirements are complied with regarding the issue and service of notices of intention to take proceedings (8) prepare prior to granting a tenancy, a detailed inventory which should be signed by the tenant and allow for comments to be made about the condition of the items in the inventory on check in and comments to be made later on check out of the Investment Property (9) keep up-to-date rental records 9

10 (10) ensure that where a tenant makes a payment of arrears, such payment is received on the express understanding that it is being taken on account of the longest outstanding sum of arrears that are due and is received without any prejudice to any termination notice and/or proceedings. Contingency 3- Prosecution defence A criminal prosecution against an Insured that arises from You letting out the Investment Property Contingency 4- Contract Disputes A dispute arising out of an agreement or alleged agreement which You have entered into to buy goods and services for the benefit of or furnishing of the Investment Property Condition Precedent to Contingency 4 You must enter into a Conditional Fee Agreement (sometimes known as a no-win-nofee agreement ) with the Appointed Advisor or the Appointed Advisor must enter into a Collective Conditional Fee Agreement with Us if the claim will be decided in a court within England and Wales and falls outside the jurisdiction of the small claims court What is not covered under Contingency 4 (1) A lease or licensing of land or buildings (2) Loans, mortgages, endowments, pensions, or any other financial or investment product (3) A business, venture for gain, profession or employment other than an agreement that You have entered into because You are a landlord or are responsible for managing the Investment Property (4) A contract involving a motor vehicle (5) A settlement due under an insurance policy (6) Franchise rights, agency agreements including managing or letting agency agreements (7) Construction work on any land, or designing, converting or extending any building where the contract value exceeds 5000 including VAT Contingency 5- Tax Disputes Where You own the Investment Property (1) a formal aspect or full enquiry into Your tax affairs (2) any appeal proceeding following an assessment by HM Revenue & Customs relating to Value Added Tax (3) a dispute about Your compliance with regulations relating to: - Pay As You Earn, or - Social Security, or - National Insurance Contributions following a review by HM Revenue and Customs (4) a formal aspect or full enquiry into the personal tax affairs of Your directors and/or partners Provided that all returns are completed and have been submitted within the legal timescales permitted What is not covered under Contingency 5 (1) An investigation by the Special Civil Investigation Office or the Special Compliance Office of HM Revenue and Customs 10

11 (2) An investigation under the Civil Investigation of Fraud procedure (3) A tax avoidance scheme (4) Returns or accounts where the HM Revenue & Customs levy a penalty or claim for interest or which contain negligent misstatements. (5) Your failure to register for VAT (6) In respect of aspect enquiries You are responsible for the first 250 of each and every claim. Contingency 6A Employment Disputes Where You own the Investment Property : Contingency 6B Employment Compensation Following a claim We have accepted under Contingency 6B the Insurer will pay (a) (b) basic and compensatory award made against You by a tribunal amount agreed by Us in settlement of a dispute Provided that (i) Reasonable Prospects of Success exist for a wholly successful defence throughout Defending You in an employment dispute with an employee, ex-employee, prospective employee arising from a breach or an alleged breach of their (1) contract of service with You and/or (2) statutory rights under employment laws An employment dispute is deemed to have occurred once all internal dismissal, disciplinary and grievance procedures as set out in the ACAS Guide to Disciplinary and Grievance Procedures have been or ought to have been concluded. (ii) (iii) in respect of any compensation payable for redundancy, alleged redundancy or unfair selection for redundancy You have sought and followed advice from Us or Our agent throughout including prior to serving any notice of a redundancy the compensation is awarded by a tribunal or through the ACAS Arbitration Scheme, under a judgment made after full argument other than by consent or default, or is payable under a settlement approved in writing by Us. What is not covered under Contingency 6A Any claim (1) arising from or relating to any transfer of business which falls under the scope of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (2) for Legal Costs & Expenses relating to an internal disciplinary hearing, grievance or appeal What is not insured under Contingency 6B (1) Money due to an employee under a contract of employment or a statutory provision relating thereto (2) Your failure to comply with a reinstatement or re-engagement order (3) A breach of an employee s statutory rights under the National Minimum Wage Act 1998 (4) Civil claims or statutory rights relating to trustees of occupational pension schemes 11

12 Contingency 7 Employees' Extra Protection At Your request and where You own the Investment Property (1) Defending an employee in civil proceedings under legislation for unlawful discrimination on the grounds of sex, race, disability, sexual orientation, age, religious belief or political opinion (2) Defending an employee as a trustee of a pension fund set up for the benefit of Your employees (3) Pursuing a claim following an event causing Your employee bodily injury Contingency 8 Statutory Licence Protection Representing You following a notice by the relevant authority to alter, suspend, revoke or refuse to renew Your statutory licence Policy Exceptions These policy exceptions apply to all contingencies (unless otherwise stated) You are not insured for any claim arising from or relating to: (1) Legal Costs & Expenses or Compensation Awards incurred before We accept a claim (2) any actual or alleged act, omission or dispute occurring prior to, or existing at the start of this policy, and which the Insured knew or ought reasonably to have known could give rise to a claim under this policy (3) Any disagreement with Your tenant during the first 90 days of the first Period of Insurance where the tenancy agreement started before the start of this policy (4) an allegation against the Insured involving: - assault, violence or dishonesty; - malicious falsehood; - the manufacture, dealing in or use of alcohol, illegal drugs, indecent or obscene materials; - illegal immigration; - offences under Part 7 of the Proceeds of Crime Act 2002 (money laundering offences) (5) registering assessing or reviewing rent, rent control, rent, rates or land tribunals or service charges (6) The defence of legal proceedings relating to - damages for personal injury (other than injury to feelings), or loss or damage to property owned by the Insured - a breach or alleged breach of professional duty (7) Fines, penalties or compensation awarded against the Insured except as covered under Contingency 6A (8) Costs awarded against the Insured by a court of criminal jurisdiction following a conviction (9) Patents, copyright, trademarks, passingoff, trade or service marks, registered 12

13 designs, secrecy and confidential information (10) A dispute with any subsidiary, parent, associated or sister company or between shareholders or partners. (11) Judicial review (12) A dispute with Us or the Insurer not dealt with under Condition 6 or with a managing agent. (13) Defamation (14) ( a) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; (b) radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof (c) war, invasion, act of foreign enemy hostilities (whether war is declared or not), civil war, rebellion revolution, insurrection or military or usurped power. (d) pressure waves from aircrafts or other aerial devices travelling at sonic or supersonic speed (e) any terrorist action (regardless of any other cause or event contributing concurrently or in any other sequence to the liability) or any action taken in controlling, preventing or suppressing terrorist action. If the Insurer alleges that by reason of this exclusion any liability or loss is not covered by this Policy, the burden of proving the contrary shall be upon the Insured. Conditions Precedent If the Insurer's risk under this policy has increased due to the Insured's failure to keep to any of these conditions the Insurer may cancel cover for the Investment Property, refuse a claim or withdraw from an ongoing claim. The Insurer also reserves the right to recover Legal Costs & Expenses from the Insured should this occur (1) The Insured s Responsibilities The Insured must (a) observe and keep to the terms of the policy (b) not do anything that hinders Us, the Insurer or the Appointed Advisor (c) tell Us immediately after first becoming aware of any cause, event or circumstances which could to give rise to a claim under this policy (d) tell Us immediately of anything that may materially alter Our assessment of the claim (e) cooperate fully with the Appointed Advisor and Us, give the Appointed Advisor any instructions We require, and keep them updated with progress of the claim (f) provide Us with everything We need to help Us handle the claim (g) take reasonable steps to recover Legal Costs & Expenses that the Insurer pays and repay them to the Insurer should these be paid to the Insured (h) tell the Appointed Advisor to have the Legal Costs & Expenses assessed or audited if We require 13

14 (i) (j) minimise any Legal Costs & Expenses and try to prevent anything happening that may cause a claim allow Us at any time to take over and conduct in their name any claim, proceedings or investigation 2. The Appointed Advisor (a) In certain circumstances as set out in 2 c) below the Insured can choose an Appointed Advisor. In all other cases We shall choose the Appointed Advisor. (b) Where the Insured wishes to exercise the right to choose, they should write to Us with their chosen representative s contact details. The Insured's chosen Appointed Advisor must agree to act under Our standard terms of business (which may include a "no-winno-fee" agreement) and must cooperate with Us at all times (c) If either We agree to start legal proceedings or legal proceedings are issued against the Insured and the court requires any representative to be legally qualified, or there is a conflict of interest, the Insured may choose a suitably qualified Appointed Advisor. The right to choose never applies to Small Claims Court or Employment Tribunal claims unless there is conflict of interest (d) If the Appointed Advisor refuses with good reason to continue acting for the Insured, or the Insured dismisses the Appointed Advisor without good reason, or withdraws from the claim without Our written agreement, cover will end immediately 3. Our Consent We must give Our written consent to incur any Legal Costs & Expenses. The Insurer does not accept any liability for Legal Costs & Expenses incurred without Our written consent 4. Settlement (a) (b) (c) The Insurer has the right to settle the claim by paying the value of the claim The Insured must not negotiate, settle the claim or agree to pay Legal Costs & Expenses without Our written agreement If the Insured refuses to settle the claim following (i) a reasonable offer, or (ii) advice to do so from the Appointed Advisor the Insurer will refuse to pay further Legal Costs & Expenses 5. Counsel s Opinion We may require the Insured to obtain and pay for an opinion from counsel regarding the merits or value of the claim. If the opinion supports the Insured then the Insurer will pay for the opinion 6. Arbitration If there is a dispute between the Insured and Us about the handling of a claim or the choice of an Appointed Advisor, the Insured can make a complaint to Us as described on page 3 of this policy and We will try to resolve the matter. If we are unable to satisfy the Insured's concerns the Insured can ask the Financial Ombudsman Service to review Your complaint. (See page 3 of this policy). Otherwise any dispute that remains unresolved shall be referred for arbitration to an independent solicitor to be 14

15 agreed by the parties. If an independent solicitor cannot be agreed upon, then an arbitrator will be appointed by the President for the time being of England and Wales. The arbitration shall be subject to the arbitration acts and the arbitrator's decision shall be binding on the parties 7. Dual Insurance The Insurer will not pay for any claim covered by another policy, or any claim that would have been covered by any other policy if this policy did not exist 8. Fraudulent Claims If the Insured make any claim under the policy which is fraudulent or false, the policy shall become void and all benefit under it will be forfeited and We will not return the premium premium for the unexpired period unless You have notified a claim which has been or is subsequently accepted under this policy in which case no return of premium shall be allowed (c) The Insurer may cancel the policy and/or cancel cover for an Investment Property at any time by giving at least 21 days written notice to You. The Insurer will refund part of the premium for the unexpired period 10. Acts of Parliament & Jurisdiction All Acts of Parliament within the policy shall include any subsequent amendment or replacement legislation This policy will be governed by English Law 11. Data Protection Act 9. Cancellation (a) You may cancel the policy within 14 days of the effective date of cover with a full refund of Your premium paid unless You have notified a claim which has been or is subsequently accepted under this policy in which case no return of premium shall be allowed (b) You may cancel this policy at any time by giving at least 21 days written notice to Us. You may cancel cover for an Investment Property at any time by giving at least 21 days written notice to Us. The Insurer will refund part of the It is agreed by You that any information provided to Us &/or the Insurer regarding You will be processed by Us &/or the Insurer, in compliance with the provisions of the Data Protection Act 1998, for the purpose of providing insurance and handling claims, if any, which may necessitate providing such information to third parties 12. Contracts (Rights of Third Parties) Act 1999 A person who is not insured by this policy has no right to enforce the terms and conditions of this policy under the Contracts (Rights of Third Parties) Act

16 Signed by Managing Director ARAG plc 16