Comprehensive Insurance Policy Homeowner Condominium Renters Effective July 1, 2012
Comprehensive Insurance Policy British Columbia How to Read and Understand Your Policy Your complete policy is made up of the application, this Comprehensive policy wording booklet and the declaration page(s) provided to you. This booklet defines the coverages offered by the BCAA Insurance Corporation through its duly appointed insurance agencies. It has been written as clearly as possible to help you better understand the insurance protection you have purchased. The declaration page(s) describe your property, the amounts of insurance provided and the premiums charged. There are a variety of coverages available and only those coverages for which a description and a premium are indicated on your declaration page(s) apply to you. This policy wording consists of five sections: Section 1 Property Coverages: Section 2 Liability Coverages: Section 3 Optional Coverages: Section 4 Additional Conditions: Section 5 Definitions: describes the insurance on your property and is identified on the declaration page as; Homeowner, Condominium, Tenant or Mobile Homeowner policy type. describes the insurance coverage in case you or an insured person under this policy is legally responsible for an injury to another person or damage to someone else s property. describes optional coverages available to enhance your insurance protection. describes additional conditions, which are applicable to Sections 1, 2 and 3. describes the definitions, which are applicable to your entire policy, including Sections 1, 2, 3 and 4. In order to determine what coverages you have, simply read your declaration page insurance coverages apply when a description, amount or limit, rider number or premium are shown. If you need any assistance in understanding your declarations or this wording booklet, just phone or visit your insurance agency representative. Important This policy contains various exclusions and limitations that eliminate or restrict coverage. Please read it carefully. Insurance cannot be a source of profit. It is only designed to indemnify the Insured against losses or expenses insured under this policy. Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act. 1
Index Section 1. Property Coverages 3 Homeowner, Tenant and Condominium Policy 3 1.1 Agreement 3 1.2 Coverage A Dwelling Building 3 1.3 Coverage B Detached Private Structures 4 1.4 Coverage C Personal Property 4 1.5 Special Limits of Insurance 7 1.6 Coverage D Additional Living Expense 8 1.7 Perils Insured 9 1.8 Loss or Damage Not Insured 9 1.9 Specified Perils 12 1.10 Basis of Claim Payment 13 1.11 Deductible 15 Section 2. Liability Coverages 16 2.1 Agreement 16 2.2 Coverage E - Legal Liability 16 2.3 Coverage F Voluntary Medical Payments 17 2.4 Coverage G Voluntary Payment for Damage to Property 18 2.5 Special Liability Limitations 19 2.6 Loss or Damage Not Insured 21 2.7 Conditions 22 Section 3. Optional Coverages 24 3.1 Agreement 24 3.2 Bed & Breakfast Rider R11 24 3.3 Building By-Law Rider R13 24 3.4 Earthquake Rider R6 25 3.5 Home Business Rider R14 26 3.6 Identity Theft Rider R50 31 3.7 Increased Strata Deductible Assessment Rider C10 33 3.8 No Glass Deductible Rider R4 33 3.9 Optional Liability Assessment Rider C9 34 3.10 Optional Property Assessment Rider C12 34 3.11 Premier Condominium Rider C11 35 3.12 Premier Home Rider R20 36 3.13 Premier Tenants Rider R25 37 3.14 Rental Advantage Rider R30 37 3.15 Rental Income Rider C5 38 3.16 Residential Rental Rider D1 38 3.17 Residence Glass Rider R1 45 3.18 Scheduled Personal Property Rider R2 45 3.19 Seasonal Burglary or Robbery Rider S2 47 3.20 Seasonal Dwelling Rider S1 47 3.21 Seasonal Vandalism Rider S3 52 3.22 Storage Rider R12 53 3.23 Voluntary Compensation for Employees Rider R3 55 3.24 DrainGuard Rider R5A 57 3.25 RoofGuard Rider R5B 58 3.26 Watercraft Rider R7 58 Section 4. Additional Conditions 61 4.1 Standard Mortgage Clause 61 4.2 Statutory Conditions 62 4.3 Additional Conditions 64 Section 5. Definitions 67 5.1 Applicable to Sections 1, 2, 3 and 4 67 2 5.2 Additional Definitions Applicable to Section 2 70
Homeowner, Tenant and Condominium Policy 1.1 Agreement Section 1. Property Coverages In consideration of the payment of the premium and when the declaration page indicates an amount or limit of insurance applies, we provide the insurance described under that coverage, subject to the terms and conditions set out. The amounts of insurance are shown on the declaration page. A description of coverages follows. 1.2 Coverage A Dwelling Building 1.2.1 Description of Coverage We insure: 1) The dwelling and attached structures. 2) Permanently installed outdoor equipment on the premises. 3) Swimming pools, hot tubs and attached equipment on the premises. 4) Materials and supplies located on or adjacent to the premises intended for use in construction, alteration or repair of your dwelling or private structures on the premises. 1.2.2 Extensions of Coverage These extensions of coverage do not increase the amounts of insurance stated in the policy. We insure: 1) Building Fixtures and Fittings: You may apply up to ten percent (10%) of the amount of insurance on your dwelling to insure building fixtures and fittings temporarily removed from the premises for repair or seasonal storage. 2) Zoning Bylaws: At your option, you may apply up to $10,000 of your Coverage A Dwelling Building limit for losses or increased costs of repair or replacement due to the operation of any law regulating the zoning, demolition, repair or construction of buildings and their related services. 3) Lock replacement: If as a result of theft, it is necessary for you to replace or alter the locks on your dwelling; we will pay up to $1,000. 4) Fire department service charge: We will pay any charges for which you are legally responsible up to $2,000, if the fire department was called because of a fire in, on, or exposing your premises. No deductible applies to this coverage. 5) Outdoor trees, shrubs, plants, lawns, permanent ornamental landscaping structures or rockeries: You may apply up to five percent (5%) in all, of the amount of insurance on your dwelling to trees, shrubs, plants, lawns, permanent ornamental landscaping structures or rockeries on your premises. We will not pay more than $1,000 for any one (1) tree, shrub or plant including debris removal expenses. We insure these items (except those grown for commercial purposes) against loss caused by fire, lightning, explosion, theft, impact by aircraft or land vehicle, riot, vandalism or malicious acts only. 6) Debris removal: We will pay the cost of cleaning and removal of debris as a result of an Insured Peril. However, if debris removal is made necessary by a tree striking the exterior and causing resulting insured damage to the dwelling building or detached 3
private structures on the premises, we will pay for tree removal up to a maximum limit of $500. 7) Property removed: If you must remove insured property from your premises to protect it from loss or damage, it is insured by this policy for seven (7) days or until your policy term ends whichever occurs first. The amount of insurance will be divided in the proportions that the value of the property removed bears to the value of all insured property at the time of loss. 8) Tear out: If any walls, ceilings or other parts of the insured dwelling or structure must be removed or torn apart so that water damage covered by this policy can be repaired, we will pay the cost of repairing that which had to be torn apart. The cost of tearing out and replacing property to repair damage related to outdoor domestic water containers or a public watermain is not insured. 1.3 Coverage B Detached Private Structures We insure private structures or outbuildings on your premises separated from the dwelling by a clear space but not insured under Coverage A. If you have more than one (1) detached structure, the amount of insurance coverage on each will be divided in the proportions that the value of each structure has to the total value of all your detached private structures at the time of loss. 1.4 Coverage C Personal Property 1.4.1 Description of Coverage Property Coverages Cont'd We insure: 1) The contents of your dwelling or Strata Unit and other personal property you own, wear or use, while on your premises, which is usual to the ownership or maintenance of a dwelling or Strata Unit. 2) If you wish, we will include uninsured personal property of others while it is on that portion of your premises which you occupy, but we do not insure property of roomers or boarders who are not related to you. 3) Your personal property while it is temporarily away from your premises anywhere in the world. If you wish, we will include uninsured personal property belonging to others while it is in your possession or belonging to a residence employee traveling while in service to you. 4) Your personal property stored in a commercial or personal storage facility for thirty (30) consecutive days commencing from when you first place items in storage. After thirty (30) days no coverage will apply. Personal property normally kept at any other location you own is not insured. 5) Your personal property permanently removed from your principal premises, while you are moving from the premises stated on the declaration page to another location anywhere within the Province of British Columbia which you intend to occupy as your principal residence. This coverage applies only for a period of seven (7) days from the date you commence moving or until your policy term ends whichever occurs first. 4
1.4.2 Extensions of Coverage 1.4.2.1 Extensions that do not increase the amount of insurance These extensions of coverage do not increase the amounts of insurance stated in the policy. We insure: 1) Student Property: Personal property owned by each member of your family who is a student as defined in You and Your, up to a limit of $5,000. 2) Parents in a Care Facility: Personal property owned by the parents of the named Insured, who are living in a long term care facility within the Province of British Columbia, up to a limit of $5,000. 3) Personal Property kept in your Recreational Vehicle: Your personal property normally kept in your recreational vehicle up to $3,000 in all but not including accessories and equipment built into the recreational vehicle. 4) Damage to Premises: (Applies to Strata Unit Owners and Tenants only) At your option, you may apply up to $500 of your Personal Property Insurance (Coverage C) to pay for damage, not including fire damage: a) to the principal residence premises directly caused by theft or attempted theft; or b) to the interior of the premises caused directly by vandalism or malicious acts. 5) Credit Card, Bank Card, Cheque Forgery and Counterfeit Money: We provide the insurance described in this coverage up to the maximum stated of $10,000 subject to the terms and conditions set out. Coverages: a) Credit Card and Bank Card. We insure the amount that you are legally obligated under Canadian Law to pay, but not more than $10,000 maximum, due to theft and unauthorized use of your personal credit card or bank card issued to you or registered in your name, provided that you comply with all the terms under which the card was issued. b) Cheque Forgery. We insure losses, but not more than $10,000 maximum, due to: i) forgery or alteration of any cheque or negotiable instrument, or; ii) Property Coverages Cont'd apparent fraud on the part of the payee of any cheque you issue, particularly in the case of impersonation or where the actual identity of the payee is in question. If due to your refusal to pay a cheque in either of these cases, a suit is brought against you and we give consent in writing for the defense of that suit, we will pay all reasonable legal fees incurred. c) Counterfeit Money Coverage. We insure losses, but not more than $10,000 maximum, due to your acceptance, in good faith, of counterfeit Canadian or United States paper currency. Exclusions: We do not insure: a) Losses caused by the dishonesty of any Insured; b) Losses sustained due to any of the perils described in this coverage, and associated with your business, occupational or commercial pursuits (unless it is a credit card issued or registered in your name for which you are personally liable); c) Any amounts you are required to pay due to your own use of your credit card or bank card or its use by someone to whom you entrusted it. 6) Property Removed: If you must remove insured property from your premises to protect it from loss or damage, it is insured by this policy for seven (7) days or until your policy 5
term ends whichever occurs first. The amount of insurance will be divided in the proportions that the value of the property removed bears to the value of all insured property at the time of loss. 7) Outdoor trees, shrubs, plants, lawns, permanent ornamental landscaping structures or rockeries: (Applies to Strata Unit owners only) You may apply up to five percent (5%) in all, of the amount of insurance on your personal property to trees, shrubs, plants, lawns, permanent ornamental landscaping structures or rockeries on your premises. We will not pay more than $1,000 for any one (1) tree, shrub or plant including debris removal expenses. We insure these items (except those grown for commercial purposes) against loss caused by fire, lightning, explosion, theft, impact by aircraft or land vehicle, riot, vandalism or malicious acts only. 8) Change of Temperature: We insure your personal property damaged by change of temperature resulting from physical damage to your dwelling or Strata Unit or equipment by an Insured Peril. This only applies to personal property kept in the dwelling or Strata Unit. 9) Tear out: If your Strata Unit Fixtures or Improvements to Strata Unit Fixtures must be removed or torn apart so that water damage covered by this policy can be repaired, we will pay the cost of repairing that which had to be torn apart. The cost of tearing out and replacing property to repair damage related to outdoor domestic water containers or a public watermain is not insured. 10) Household animals, birds or fish: We will insure your household animals, birds or fish up to a limit of $2,000 in all. They are insured only if loss or damage is caused by fire, lightning, explosion, theft, smoke, riot, vandalism or malicious acts, windstorm or hail, and collapse of an insured building or any part of that building. 11) Uninsured business property of others: We will insure this property while it is on that portion of your premises, which you occupy, up to $500 in all. 12) Cemetery markers or monuments: We will insure grave markers or headstones of immediate family members (Insured or their children or parents) located in burial grounds or cemeteries within the Province of British Columbia, up to $3,000 in all. 13) Spare automobile parts: We will insure spare automobile parts being used or stored for personal use only, while located on your premises, up to a limit of $1,000 in all. 1.4.2.2 Extensions that do increase the amount of insurance These extensions of coverage are in addition to the amounts of insurance stated in the policy. We insure: 1) Building Improvements and Additions: (Applies to Strata Unit Owners or Tenants only) We will pay under Coverage C Personal Property for any building improvements, betterments, additions, alterations, fixtures or installations made or purchased at your expense, when situated within that portion of the premises used exclusively by you, for an amount not exceeding twenty-five percent (25%) of the amount of Coverage C, up to a maximum limit of $100,000. 2) Strata Deductible Assessment: (Applies to Strata Unit Owners principal residence as shown on the declaration page) We will pay under Coverage C - Personal Property up to $5,000 for any assessment charged against you by the Strata Corporation to recover any portion of the Strata Corporation s insurance deductible if: a) the assessment is valid under the governing rules of the Strata Corporation, and; b) it is made necessary by direct physical loss or damage to the Common Assets and Strata Buildings owned by the Strata Corporation caused by a peril insured and not excluded in this policy; and 6 Property Coverages Cont'd
Property Coverages Cont'd c) the physical loss or damage occurs and the assessment is made within this policy term. We will not pay under extension 2) for any regular monthly Strata maintenance fees; any special levy not related to a loss under the Strata policy; any fines levied by the Strata Corporation or Strata Council. 3) Property Damage Assessment: (Applies to Strata Unit Owners principal residence as shown on the declaration page) We will pay up to the limit shown on the declaration page under Coverage C - Personal Property for your share of any assessment charged against you by your Strata Corporation if: a) the assessment is valid under the governing rules of the Strata Corporation; and b) it is made necessary by direct physical loss or damage to the Common Assets and Strata Buildings owned by the Strata Corporation caused by a peril insured and not excluded in this policy; and c) the physical loss or damage occurs and the assessment is made within this policy term. We will not pay under extension 3) for any regular monthly Strata maintenance fees; any special levy not related to a loss under the Strata policy; any fines levied by the Strata Corporation or Strata Council; that part of an assessment made against you as a result of a deductible in the insurance policy of the Strata Corporation. 1.5 Special Limits of Insurance These special limits do not increase the amounts of insurance stated in the policy. 1.5.1 Applicable to All Perils Insured The following special limits apply to the items described below for loss or damage from any peril insured under this policy: 1) Books, tools and instruments which you personally own (other than computers and related software which is dealt with under a separate clause) pertaining to a business, profession or occupation, but only while on your premises, for an amount up to $2,000 in all. Business property, including samples and goods held for sale, is not insured. 2) Securities and bullion up to $5,000 in all. 3) Money including cash cards up to $500 in all. 4) Watercraft, their furnishings, equipment, accessories and motors up to $3,000 in all. However, we do not insure watercraft equipped with an inboard jet water propulsion system. 5) Computers, including software and peripheral equipment, even if used for your business, profession or occupation, up to $5,000 in all. 6) Audio and video media (including but not limited to CDs, DVDs, records and tapes) up to $2,000 in all. However, if any of these items are stolen while in or on a motor vehicle we will only pay up to $200 in all. 7) Cameras and camera recorders, including accessories up to $3,000 in all. 8) Cellular phones and mobile electronic devices, including accessories up to $500 in all. 9) Garden-type tractors including attachments and accessories, up to $5,000 in all. 1.5.2 Applicable to the Perils of Theft, Burglary, Robbery or Disappearance The following special limits apply only if loss or damage to the items described below is caused by theft, burglary, robbery or disappearance mysterious or otherwise: 7
1) Jewellery, watches, gems, fur garments and garments trimmed with fur up to $6,000 in all. 2) Numismatic property (such as coin collections) up to $200 in all. 3) Manuscripts, stamps and philatelic property (such as stamp collections) up to $1,000 in all. 4) Silverware up to $6,000 in all. 5) Bicycles and accessories, including helmets and riding gear, up to $1,000 in all for any one (1) bicycle including its accessories. 6) Collectible cards (such as sport cards) and comic books up to $1,000 in all. 7) Sporting equipment and accessories up to $3,000 in all. 1.6 Coverage D Additional Living Expense 1.6.1 Description of Coverage The amount of insurance for Coverage D is the total amount for any one (1) or a combination of the following coverages. The periods of time stated below are not limited by the expiration of the policy. 1.6.2 Additional Living Expense If an Insured Peril makes your dwelling or Strata Unit unfit for occupancy, or if as a result of loss or damage from an Insured Peril you have to move out while repairs are being made, we insure any necessary increase in living expenses, including moving expenses incurred by you, so that your household can maintain its normal standard of living. Payment shall be for the reasonable time required for repairing or rebuilding your dwelling or Strata Unit or, if you permanently relocate, the reasonable time required for your household to settle elsewhere. Regular living expenses are not paid. 1.6.3 Fair Rental Value If an Insured Peril makes that part of the dwelling, detached private structures, or Strata Unit rented to others or held for rental by you unfit for occupancy, we insure its fair rental value. Payment shall be for the reasonable time required for repairing or replacing that part of the dwelling, detached private structures, or Strata Unit rented or held for rental. Fair rental value shall not include any expense that does not continue while that part of the dwelling, detached private structures, or Strata Unit rented or held for rental is unfit for occupancy. If a civil authority prohibits access to your dwelling or Strata Unit as a direct result of damage to neighbouring premises by an Insured Peril, we insure any resulting additional living expense and fair rental value loss up to a maximum amount of $2,500. 1.6.4 Mass Evacuation Property Coverages Cont'd We will pay any necessary and reasonable increase in living expense incurred by you while access to your principal residence dwelling or Strata Unit is prohibited by order of Civil Authority, but only when such order is given for mass evacuation as a direct result of a sudden and accidental event within Canada or the United States of America. 8
You are insured for the actual loss sustained, to a maximum limit of $10,000, from the date of the order of evacuation. This coverage does not increase the amount or limit of insurance shown on the declaration page for Coverage D Additional Living Expense. You are not insured for any claim arising from evacuation resulting from: 1) flood; 2) snow slide, earthquake, landslide or other earth movement; 3) war, invasion, act of a foreign enemy, hostilities, civil war, rebellion, revolution, insurrection or military power; 4) any nuclear incident as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear explosion, except for ensuing loss or damage which results directly from fire, lightning or explosion of natural, coal or manufactured gas; 5) contamination by radioactive material; 6) Terrorism or any activity or decision of a government agency or other entity to prevent, respond to or terminate Terrorism except for ensuing loss or damage which results directly from fire or explosion. We do not insure the cancellation of a lease or agreement. 1.7 Perils Insured Property Coverages Cont'd You are insured against all risks of direct physical loss or damage subject to the exclusions and conditions in this policy. 1.8 Loss or Damage Not Insured In this section of the policy, the words caused by mean directly, indirectly or in any way caused by or resulting from and exclude coverage for the specified loss or damage regardless of whether other causes, covered or not, acted concurrently or in any sequence to produce the loss. We do not insure: 1) buildings, Strata Units or structures used in whole or in part for business or farming purposes; 2) any property lawfully seized or confiscated, unless destroyed to prevent the spread of fire; 3) any property illegally acquired or kept, or stored or transported, or imported, or property subject to forfeiture; 4) books of account and evidences of debt or title; 5) losses or increased costs of repair or replacement due to the operation of any law regulating the zoning, demolition, repair or construction of buildings and their related services (except as may be provided elsewhere in this policy); 6) the cost of making good: a) faulty or improper material; b) faulty or improper workmanship; c) faulty or improper design, provided however, to the extent otherwise insured and not otherwise excluded under this policy, resultant damage to the property is insured; 7) loss or damage caused by or comprising wear and tear, deterioration, rust or corrosion, inherent vice, latent defect, or wet or dry rot, or fungi or spores ; 9
Property Coverages Cont'd 8) loss or damage caused by contamination or pollution, or the release, discharge or dispersal of contaminants or pollutants; 9) loss or damage caused by radioactive material; 10) loss or damage caused by snow slide, landslide or other earth movement. If any of these results in fire or explosion, we will pay only for the resulting loss or damage; 11) personal property while undergoing a process involving the application of heat, but resulting damage to other property is insured; 12) loss or damage caused by war, invasion, act of a foreign enemy, hostilities, civil war, rebellion, revolution, insurrection or military power; 13) loss or damage caused by any nuclear incident as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear explosion, except for ensuing loss or damage that results directly from fire, lightning or explosion of natural, coal or manufactured gas; 14) loss or damage occurring after your dwelling or Strata Unit has, to your knowledge, been vacant for more than thirty (30) consecutive days; 15) loss or damage caused by any intentional or criminal act or failure to act by: a) any person insured by this policy; b) any other person at the direction of any person insured by this policy; 16) property at any national or international exhibition or exposition for the purpose of exhibition; 17) loss or damage caused by: a) erasure, destruction, corruption, misappropriation, or misinterpretation, of data; b) error in creating, amending, entering, deleting or using data; c) inability to receive, transmit or use data, unless the loss or damage results from fire, explosion, aircraft or vehicle impact, falling objects, windstorm, hail, tornado, cyclone, hurricane, volcano, tsunami, freeze or weight of snow; 18) loss or damage caused by earthquake. If the earthquake results in fire or explosion, we will pay only for the resulting loss or damage from the fire or explosion; 19) loss of or damage to: a) motorized vehicles or their equipment (except for watercraft, lawn mowers, other gardening equipment, snow blowers, wheelchairs or scooters having more than two (2) wheels and specifically designed for the carriage of a person who has a physical disability); b) camper units, truck caps, trailers, or their equipment; c) aircraft or their equipment, in this case, equipment includes audio, visual, recording or transmitting equipment powered by the electrical system of a motor vehicle or aircraft; 20) loss or damage caused by or comprising marring or scratching of any property or breakage of any fragile or brittle articles unless caused by a Specified Peril; 21) loss or damage caused by water unless the loss or damage resulted from: a) the sudden and accidental escape of water from a watermain; b) the sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or air conditioning system, which is located inside your dwelling or which is located inside the Strata Building containing your Strata Unit. However such damage is not covered when the escape of water is caused by freezing of any part of a plumbing, heating, sprinkler or air conditioning system within an unheated portion of your dwelling or the Strata Building containing your Strata Unit during the usual heating season. You are also not insured if the escape of water is caused by freezing which occurs during the usual heating season if you have been away from your 10
Property Coverages Cont'd premises more than four (4) consecutive days. However, if you had arranged for a competent person to enter your dwelling or unit daily to ensure that heating was being maintained or if you had shut off the water supply and had drained all the pipes and appliances, you would still be covered; c) the sudden and accidental escape of water or steam from a domestic water container located on your premises or located within the Strata Building containing your Strata Unit. However, such damage is not covered when the escape of water is caused by freezing; d) the sudden and accidental entry of water, including rain or water from the melting of ice or snow, into your dwelling through any opening in the roof which has been created by a Specified Peril other than Water Damage; but we do not insure loss or damage: i) caused by continuous or repeated seepage or leakage of water; ii) caused by the backing up or escape of water from a drain, drainpipe, sewer, sump or septic tank, which is located outside your dwelling or located outside the Strata Building containing your Strata Unit; iii) caused by flood, ground water or rising of the water table; iv) caused by surface water, unless the water escapes as described in a) above; v) to a watermain; vi) to a system or domestic water container from which the water escaped; vii) occurring while the building or your Strata Unit is under construction or vacant even if we have given permission for construction or vacancy; 22) loss or damage to your dwelling or personal property caused by domestic or household animals, in excess of $2500; 23) loss or damage caused by or comprising settling, expansion, contraction, moving, bulging, buckling or cracking; 24) loss of or damage to the contents of plumbing, heating or air conditioning systems; 25) outdoor radio and television antennae, satellite receivers measuring more than forty (40) inches in diameter, and their attachments caused by windstorm or hail, weight of ice, snow or sleet, or collapse; 26) outdoor equipment, pavements, patios, swimming pools, hot tubs, foundations, retaining walls, bulkheads, pilings, piers, wharfs, docks, underground pipes, flues, drains, cesspools and septic tanks, where loss or damage is caused by: a) collapse of the building or any of its parts; b) freezing or thawing; c) the weight or pressure of ice, water, snow or sleet, whether wind driven or not; 27) loss or damage caused by extremes of temperature; 28) loss or damage caused by mechanical breakdown (except for spoilage of frozen food while contained in a home freezer located on your principal residence premises, caused by mechanical breakdown); 29) sporting equipment for loss or damage caused by its use; 30) loss or damage caused by vermin, raccoons, skunks, rodents or insects; 31) loss or damage caused by theft or attempted theft: a) from the part of the dwelling or Strata Unit rented to others by any tenant, tenant s employee, or member of the tenant s household; b) to property at any other dwelling or Strata Unit, which you own, rent or occupy, except while you are temporarily living there; c) to property in or from a dwelling or Strata Unit under construction or of materials and supplies for use in the construction until the dwelling or Strata Unit is completed and ready to be occupied; 32) loss or damage caused by vandalism or malicious acts or glass breakage occurring 11
while your dwelling, detached private structures or Strata Unit insured or containing the property insured is under construction or vacant, even if we have given permission for construction or vacancy; 33) loss or damage caused by hail to a mobile home, if the mobile home has a metal roof and/or siding, unless the hail directly creates an opening in the roof and/or siding; 34) loss or damage caused by collision to a mobile home, unless the mobile home is being transported or towed by a vehicle operating as a licensed common carrier and then only for loss or damage from upset or collision with another object including but not limited to; moving or stationary objects or vehicles, the surface of the ground or an inanimate object on or near the ground; 35) glass that forms part of your Strata Unit, including glass in storm windows and doors; 36) loss or damage caused by Terrorism or by any activity or decision of a government agency or other entity to prevent, respond to or terminate Terrorism, except for ensuing loss or damage which results directly from fire or explosion; 37) loss or damage to buildings, Strata Units, structures or personal property contained in them, used in whole or in part for the cultivation, harvesting, storage, processing, manufacture, distribution or sale of marijuana or any product derived from or containing marijuana or any other substance falling within the Controlled Drugs and Substances Act SC 1996, c19, whether or not you have knowledge of such activity. 1.9 Specified Perils Property Coverages Cont'd Subject to the exclusions and conditions in this policy, Specified Perils means: 1) Fire; 2) Lightning; 3) Explosion; 4) Smoke Damage, meaning smoke damage from the sudden and accidental discharge of smoke from a heating or cooking apparatus, or from external sources, but excluding smoke from agricultural smudging or industrial operations; 5) Falling Objects which strike the exterior of the building, but not objects which strike the building because of snow slide, earthquake, landslide or other earth movement; 6) Impact by Aircraft or Land Vehicle; 7) Riot; 8) Vandalism or Malicious Acts; 9) Water Damage meaning damage caused by: a) the sudden and accidental escape of water from a watermain; b) the sudden and accidental escape of water or steam from within a plumbing, heating, sprinkler or air conditioning system, which is located inside your dwelling or which is located inside the Strata Building containing your Strata Unit. However such damage is not covered when the escape of water is caused by freezing of any part of a plumbing, heating, sprinkler or air conditioning system within an unheated portion of your dwelling or the Strata Building containing your Strata Unit during the usual heating season. You are also not insured if the escape of water is caused by freezing which occurs during the usual heating season if you have been away from your premises more than four (4) consecutive days. However, if you had arranged for a competent person to enter your dwelling or unit daily to ensure that heating was being maintained or if you had shut off the water supply and had drained all the pipes and appliances, you would still be covered; c) the sudden and accidental escape of water or steam from a domestic water container located on your premises or located within the Strata Building 12
containing your Strata Unit. However, such damage is not covered when the escape of water is caused by freezing; d) the sudden and accidental entry of water, including rain or water from the melting of ice or snow, into your dwelling through any opening in the roof which has been created by a Specified Peril other than Water Damage; 10) Windstorm or Hail; 11) Accident to a Land Vehicle, Watercraft or Aircraft; 12) Theft or Attempted Theft. 1.10 Basis of Claim Payment We will pay for insured loss or damage up to your financial interest in the property, but not exceeding the applicable limit(s) of insurance for any loss or damage arising out of one (1) occurrence. We are responsible only for the amount by which the loss or damage caused by any of the Insured Perils exceeds the amount of the deductible shown on the declaration page in any one (1) occurrence, unless shown otherwise. The deductible applies to Coverage A, B, C and D, as well as any extensions of coverage, unless shown otherwise within that coverage. If your claim involves unscheduled personal property under Special Limits of Insurance, the limitations apply to losses exceeding the deductible amount. 1.10.1 Guaranteed Building Replacement Coverage A If you comply fully with the following conditions, we agree to provide Guaranteed Replacement Cost for your building, not limited to the amount shown under Coverage A Dwelling Building on your declaration page, provided you: 1) Insure your building to one-hundred percent (100%) of the replacement cost, which we determine; 2) Accept any yearly adjustments, which we may make to your Coverage A limits to reflect changes in construction costs in your area; 3) Notify us of any addition or remodeling which increases the replacement cost of your building by $5,000 or more within ninety (90) days from the start of construction and pay any resulting additional premium; 4) Repair or replace the damaged building on the same premises, with a building of the same occupancy constructed with materials of equivalent kind and quality. If the policy covers two (2) or more buildings, this one-hundred percent (100%) guaranteed building replacement coverage applies separately to each building. If you do not fully comply with the above conditions, the applicable amount or policy limit shown on the declaration page shall apply to Coverage A Dwelling Building and the basis of claim payment will be according to the Optional Loss Settlement Clause. 1.10.1.1 Optional Loss Settlement Clause Property Coverages Cont'd If you repair or replace the damaged or destroyed building on the same premises, with a building of the same occupancy constructed with materials of equivalent kind and quality within a reasonable time after the damage, you may choose as the basis of loss settlement either 1) or 2) below; otherwise, settlement will be as in 2). 13
Property Coverages Cont'd 1) The cost of repair or replacement (whichever is less) without deduction for depreciation, in which case we will pay the proportion of the cost of repair or replacement that the applicable amount of insurance bears to eighty percent (80%) of the replacement cost of the damaged building at the date of damage, but not exceeding the actual cost incurred. 2) The Actual Cash Value of the damage at the date of the occurrence. We will pay the Actual Cash Value of the damage up to the applicable amount of insurance. The Actual Cash Value will take into account such things as the cost of replacement less any depreciation, and in determining depreciation we will consider the condition immediately before the damage, the resale value and the normal life expectancy. 1.10.2 Replacement Cost Coverage B 1) If you repair or replace the damaged or destroyed detached private structure on the same premises, with a building of the same occupancy constructed with materials of equivalent kind and quality within a reasonable time after the damage, we will pay the cost of repair or replacement (whichever is less) without deduction for depreciation, but not exceeding the applicable limit of insurance shown on the declaration page. 2) If you do not repair or replace the detached private structure we will pay on the basis of Actual Cash Value up to the applicable limit shown on the declaration page. The Actual Cash Value will take into account such things as the cost of replacement less any depreciation, and in determining depreciation we will consider the condition immediately before the damage, the resale value and the normal life expectancy. If you have more than one (1) detached private structure, the amount of insurance coverage on each will be divided in the proportions that the value of each structure has to the total value of all your detached private structures at the time of the loss. 1.10.3 Replacement Cost Coverage C If you comply fully with the following conditions, we agree to provide Replacement Cost coverage for your personal property or any scheduled personal property rider attached to your policy but not exceeding the applicable limit of insurance shown on the declaration page, provided: 1) The article is owned by you, and 2) The article has been maintained in good and workable condition, and 3) The article is repaired or replaced with equivalent kind and quality. We will pay on the basis of Replacement Cost only if the property lost or damaged is repaired or replaced as soon as is reasonably possible. Otherwise, we will pay on the basis of Actual Cash Value. This Replacement Cost coverage does not apply to antiques, fine arts, memorabilia or any article or collection of articles whose age, history or rarity contributes significantly to its value. Loss or damage to such ineligible property will be adjusted on an Actual Cash Value basis. 14
1.11 Deductible Property Coverages Cont'd The deductible applies to Coverage A, B, C and D, as well as any extensions of coverage, unless shown otherwise within that coverage. We will pay only the amount by which the loss or damage insured exceeds the deductible stated on the declaration page, in any one (1) occurrence. If your claim involves personal property on which the Special Limits of Insurance apply, the limitations apply to losses exceeding the deductible amount. 15
2.1 Agreement This insurance applies only to accidents or occurrences that take place during the period this policy is in force. The amounts of insurance are shown on the declaration page. Each person insured is a separate insured but this does not increase the limit of insurance. A description of coverages follows. 2.2 Coverage E - Legal Liability We will pay all sums that you become legally liable to pay as compensatory damages because of unintentional bodily injury or property damage. The amount of insurance is the maximum amount we will pay, under one (1) or more Sections of Coverage E, for all compensatory damages in respect of one (1) accident or occurrence regardless of the number of Insureds against whom claims are made or actions are brought. You are insured for claims made against you arising from: 2.2.1 Personal Liability Personal Liability legal liability arising out of your personal actions anywhere in the world: You are not insured for claims made against you arising from: 1) the ownership, use or operation of any motorized vehicle, trailer, camper unit or watercraft, except those for which coverage is shown in this policy; 2) damage to property you own, use, occupy or lease; 3) damage to property in your care, custody or control; 4) damage to personal property or fixtures as a result of work done on them by you or anyone on your behalf; 5) bodily injury to you or to any person residing in your household other than a residence employee. 2.2.2 Premises Liability Section 2. Liability Coverages Premises Liability legal liability arising out of your ownership, use or occupancy of the premises defined in this policy. This insurance also applies if you assume, by a written contract, the legal liability of other persons in relation to your premises. You are not insured for claims made against you arising from: 1) damage to property you own, use, occupy or lease; 2) damage to property in your care, custody or control; 3) damage to personal property or fixtures as a result of work done on them by you or anyone on your behalf; 4) bodily injury to you or to any person residing in your household other than a residence employee. 2.2.3 Tenants Legal Liability Tenants Legal Liability legal liability for property damage to premises or their contents, 16
owned by others, which you are using, renting or have in your custody or control caused by fire, explosion, water escape or smoke. Smoke means damage from smoke as the result of a sudden, unusual and faulty operation of any heating or cooking unit in or on the premises, but not smoke from fireplaces. Water escape means the sudden and accidental escape of water from a plumbing, heating, sprinkler, air conditioning system or domestic water container including a waterbed. You are not insured for liability you have assumed by contract unless your legal liability would have applied even if no contract had been in force. 2.2.4 Employers Liability Liability Coverages Cont'd Employers Liability legal liability for bodily injury to residence employees arising out of and in the course of their employment by you. You are not insured for claims made against you resulting from the ownership, use or operation of aircraft while being operated or maintained by your employee. You are not insured for liability imposed upon or assumed by you under any Workers Compensation statute. 2.2.5 Defence, Settlement, and Supplementary Payments We will defend any suit against you for which you are insured under Coverage E alleging bodily injury or property damage and seeking damages, even if it is groundless, false or fraudulent. We reserve the right to investigate, negotiate and settle any claim or suit if we decide this is appropriate. In addition to the limit of insurance under Coverage E, we will pay: 1) all expenses which we incur; 2) all costs charged against you in any suit insured under Coverage E; 3) any interest accruing after judgment, or where applicable, interest accruing from the date of the action, or determined by the Court, on that part of the judgment which is within the amount of insurance of Coverage E; 4) premiums for appeal bonds required in any insured lawsuit involving you and bonds to release any property that is being held as security, up to the amount of insurance, but we are not obligated to apply for or provide these bonds; 5) expenses which you have incurred for emergency medical or surgical treatment to others following an accident or occurrence insured by this policy; 6) reasonable expenses, except loss of earnings, which you incur at our request. 2.3 Coverage F Voluntary Medical Payments We will pay reasonable medical expenses incurred within one (1) year of the date of the accident, if you unintentionally injure another person or if they are accidentally injured on your premises. This coverage is available even though you are not legally liable. Medical expenses include surgical, dental, hospital, nursing, ambulance service and funeral expenses. Medical expenses for residence employees are insured. 17
Liability Coverages Cont'd The amount of insurance shown on the declaration page is the maximum amount we will pay for each person in respect of one (1) accident or occurrence. We will not pay: 1) expenses covered by any medical, dental, surgical or hospitalization plan or law, or under any other insurance contract; 2) your medical expenses or those of persons residing with you, other than residence employees; 3) medical expenses of any person covered by any Workers Compensation statute; 4) for claims arising out of the ownership, use or operation of any motorized vehicle, trailer, camper unit or watercraft, except those for which coverage is shown in this policy. 2.3.1 Conditions and Duties after a Loss You shall arrange for the injured person, if requested, to: 1) give us, as soon as possible, written proof of claim, under oath if required; 2) submit to physical examination at our expense by doctors we select as often as we may reasonably require; 3) authorize us to obtain medical and other records. Proofs and authorizations may be given by someone acting on behalf of the injured person. 2.4 Coverage G Voluntary Payment for Damage to Property We will pay for unintentional direct damage you cause to property even though you are not legally liable. You may also use this coverage to reimburse others for direct property damage caused intentionally by anyone included in the definition of You and Your in this policy, twelve (12) years of age or under. You are not insured for claims: 1) resulting from the ownership, use or operation of any motorized vehicle or watercraft except those for which coverage is provided in this policy; 2) for property you or your tenants own or rent; 3) for damage to property which is insured under Section 1; 4) caused by the loss of use, disappearance or theft of property. 2.4.1 Basis of Claim Payment Coverage G We will pay whichever is the least of the following: 1) the Actual Cash Value of the property at the time of loss; 2) what it would cost to repair or replace the property with materials of equivalent kind and quality at the time of loss; 3) the amount shown on the declaration page. We may pay for the loss in money or may repair or replace the property, and may settle any claim for loss of property either with you or the owner of the property. We may take over any salvage if we wish. 18
2.4.2 Conditions and Duties after a Loss Within sixty (60) days after the loss, you must submit to us (under oath if required) a PROOF OF LOSS FORM containing the following information: 1) the amount, place, time and cause of loss; 2) the interest of all persons in the property affected; 3) the Actual Cash Value of the property at the time of loss. If necessary, you must help us verify the damage. 2.5 Special Liability Limitations 2.5.1 Watercraft 2.5.1.1 Watercraft You Own You are insured against claims arising out of your ownership, use or operation of watercraft equipped with an outboard motor or motors of not more than 12KW (16HP) in total when used with or on a single watercraft. You are also insured if your watercraft has an inboard or an inboard-outboard motor of not more than 38KW (50HP) or for any other type of watercraft not more than eight (8) meters (26 feet) in length. You are not insured against claims arising out of your ownership, use or operation of watercraft equipped with an inboard jet water propulsion system. If you own any motors or watercraft larger or more powerful than those stated above, you are insured only if they are shown on the declaration page. If they are acquired after the effective date of this policy, you will be insured automatically for a period of thirty (30) days only from the date of their acquisition, during which period you should advise us so we may add them to your policy to provide continued coverage. 2.5.1.2 Watercraft You Do Not Own You are also insured against claims arising out of your use or operation of any type of watercraft provided that the watercraft is not owned by any person insured by this policy. You are not insured for damage to the watercraft itself. 2.5.2 Motorized Vehicles 2.5.2.1 Vehicles You Own Liability Coverages Cont'd You are insured against claims arising out of your ownership, use or operation of: 1) self-propelled lawn mowers, snow blowers, garden-type tractors, or implements used or operated mainly on your property, provided they are not used for compensation or hire; 2) motorized golf carts while in use on a golf course; 3) motorized wheelchairs, including motorized scooters having more than two (2) wheels and specifically designed for the carriage of a person who has a physical disability. 19