Microsoft Word - HW-2136

State Farm

Homeowners

Policy

Oklahoma

HW-2136

This policy is one of the broadest

forms available today, and provides

you with outstanding value for your in-

surance dollars. However, we want

to point out that every policy contains

limitations and exclusions. Please

read your policy carefully, especially

“Losses Not Insured” and all exclusions.

©, Copyright, State Farm Mutual Automobile Insurance Company, 2017

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HOMEOWNERS POLICY

TABLE OF CONTENTS

AGREEMENT ................................................................. 1

DEFINITIONS ................................................................. 1

DEDUCTIBLE ................................................................. 5

SECTION I – PROPERTY COVERAGES ...................... 5

COVERAGE A – DWELLING ..................................... 5

Dwelling ............................................................... 5

Other Structures .................................................. 5

Property Not Covered .......................................... 5

COVERAGE B – PERSONAL PROPERTY ............... 5

Property Covered ............................................... 5

Special Limits of Liability .................................... 6

Property Not Covered .......................................... 6

COVERAGE C – LOSS OF USE ................................ 8

Additional Living Expense .................................. 8

Fair Rental Value ................................................ 8

Prohibited Use ..................................................... 8

SECTION I – ADDITIONAL COVERAGES ................ 8

Debris Removal .................................................. 8

Temporary Repairs ............................................. 9

Trees, Shrubs, and Landscaping ....................... 9

Fire Department Service Charge ........................ 9

Property Removed ............................................. 9

Credit Card, Bank Fund Transfer Card,

Forgery, and Counterfeit Money ......................... 9

Power Interruption ............................................ 10

Refrigerated Products ...................................... 10

Arson Reward ................................................... 10

Volcanic Action ................................................. 10

Collapse ........................................................... 10

Locks and Remote Devices .............................. 11

Fuel Oil Release ............................................... 11

Tear Out ........................................................... 11

Home Certification ............................................ 11

INFLATION COVERAGE ......................................... 11

SECTION I – LOSSES INSURED ................................ 12

COVERAGE A – DWELLING ................................... 12

COVERAGE B – PERSONAL PROPERTY ............. 12

SECTION I – LOSSES NOT INSURED ........................ 14

SECTION I – LOSS SETTLEMENT ............................. 18

COVERAGE A – DWELLING ................................... 18

A1 – Replacement Cost Loss Settlement –

Similar Construction ......................................... 18

A2 – Replacement Cost Loss Settlement –

Common Construction ...................................... 18

COVERAGE B – PERSONAL PROPERTY ............. 19

B1 – Limited Replacement Cost Loss

Settlement ........................................................ 19

B2 – Depreciated Loss Settlement ................... 19

SECTION I – CONDITIONS .......................................... 20

Insurable Interest and Limit of Liability .............. 20

Your Duties After Loss ...................................... 20

Loss to a Pair or Set ......................................... 20

Appraisal........................................................... 21

Other Insurance ................................................ 22

Suit Against Us ................................................. 22

Our Option ........................................................ 22

Loss Payment ................................................... 22

Abandonment of Property................................. 22

Mortgagee Clause ............................................ 22

No Benefit to Bailee .......................................... 23

Recovered Property.......................................... 23

Assignment of Claim......................................... 23

SECTION II – LIABILITY COVERAGES ...................... 23

COVERAGE L – PERSONAL LIABILITY ................ 23

COVERAGE M – MEDICAL PAYMENTS TO

OTHERS ................................................................... 23

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SECTION II – ADDITIONAL COVERAGES ............. 23

Claim Expenses ............................................... 24

First Aid Expenses ........................................... 24

Damage to Property of Others ......................... 24

SECTION II – EXCLUSIONS ........................................ 24

SECTION II – CONDITIONS ........................................ 28

Limit of Liability ................................................. 28

Severability of Insurance .................................. 28

Duties After Loss .............................................. 28

Coverage M Requirements .............................. 29

Payment of Claim – Coverage M or Damage

to Property of Others ....................................... 29

Suit Against Us ................................................. 29

Bankruptcy of an Insured ................................. 29

Other Insurance – Coverage L ......................... 29

SECTION I AND SECTION II – CONDITIONS ............. 29

Policy Period .................................................... 29

Concealment or Fraud ...................................... 29

Liberalization Clause ........................................ 29

Waiver or Change of Policy Provisions ............ 29

Cancellation ...................................................... 29

Nonrenewal ...................................................... 30

Assignment of Policy ........................................ 30

Subrogation and Reimbursement ..................... 30

Death ................................................................ 31

Conformity to State Law ................................... 31

Premium ........................................................... 31

Right to Inspect................................................. 32

Joint and Individual Interests ............................ 32

Change of Policy Address ................................ 32

Electronic Delivery ............................................ 32

Our Rights Regarding Claim Information .......... 32

Duties Regarding Claim Information ................. 33

OPTIONAL POLICY PROVISIONS .............................. 33

Option AI – Additional Insured .......................... 33

Option BP – Business Property ........................ 33

Option BU – Business Pursuits ........................ 33

Option FA – Firearms ....................................... 34

Option ID – Increased Dwelling Limit ............... 34

Option IO – Incidental Business ....................... 34

Option JF – Jewelry and Furs........................... 35

Option OL – Building Ordinance or Law ........... 36

Option SG – Silverware and Goldware

Theft ................................................................. 37

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©, Copyright, State Farm Mutual Automobile Insurance Company, 2017

HOMEOWNERS POLICY

AGREEMENT

We agree to provide the insurance described in this policy:

1. based on your payment of premium, in a form ac-

ceptable to us, for the coverages you chose;

2. based on your compliance with all applicable provi-

sions of this policy; and

3. based on the information you have given us and

your statements in this agreement.

You agree, by acceptance of this policy, that:

1. you will pay premiums when due and comply with

the provisions of this policy;

2. the statements in this agreement are your state-

ments and are true;

3. we insure you on the basis your statements are

true; and

4. this policy contains all of the agreements between

you and us and any of our agents.

Unless otherwise indicated in the application, you state

that during the five years preceding the time of your

application for this insurance you have not had any losses,

insured or not.

When you request changes to this policy, or the infor-

mation or factors used to calculate the premium for this

policy changes during the policy period, we may adjust

the premium in accordance with the change during the

policy period and you must pay any additional premium

due within the time we specify.

DEFINITIONS

We define the following words and phrases for use

throughout this policy. These definitions apply to the

singular, plural, and possessive forms of these words and

phrases. Defined words and phrases are printed in bold

italics.

1. “actual cash value” means the value of the dam-

aged part of the property at the time of loss, calcu-

lated as the estimated cost to repair or replace such

property, less a deduction to account for pre-loss

depreciation. For this calculation, all components of

this estimated cost including, but not limited to:

a. materials, including any tax;

b. labor, including any tax; and

c. overhead and profit;

are subject to depreciation.

The depreciation deduction may include such con-

siderations as:

a. age;

b. condition;

c. reduction in useful life;

d. obsolescence; and

e. any pre-loss damage including wear, tear, or

deterioration;

of the damaged part of the property.

2. “bodily injury” means physical injury, sickness, or

disease to a person. This includes required care,

loss of services, and death resulting therefrom.

Bodily injury does not include:

a. any of the following which are communicable:

disease, bacteria, parasite, virus, or other

organism, any of which are transmitted by any

insured to any other person;

b. the actual or alleged exposure to any such disease,

bacteria, parasite, virus, or other organism by

any insured to any other person; or

c. emotional distress, mental anguish, humiliation,

mental distress, mental injury, or any similar in-

jury unless it arises out of actual physical injury

to some person.

3. “building structure” means a structure fully en-

closed with permanent walls and a roof. A perma-

nent wall or roof does not include any kind of

temporary materials including but not limited to

tarps, plastic sheeting, or other similar material. A

structure that is otherwise fully enclosed with per-

manent walls and a roof, that is undergoing repairs

due to a recent loss insured, using materials such

as tarps, plastic sheeting, or other similar material,

is still considered a building structure.

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A building structure includes:

a. the foundation supporting the structure, includ-

ing:

(1) slabs;

(2) basement walls;

(3) crawl space walls;

(4) footings; and

(5) gravel, stone, or sand, used as fill material

and located not more than 12 inches di-

rectly below a slab described in item a.(1),

including water supply lines, domestic wa-

ter pipes, and sewer pipes located within

this fill material; and

b. wall-to-wall carpeting attached to the structure.

4. “business” means any full-time or part-time activity,

trade, profession, employment, or occupation or a

commercial, mercantile, or industrial undertaking

of an economic nature. It does not matter whether

it is continuous or regular, is a secondary or

supplemental source of income, or is an insured's

principal means of livelihood. Profit and profit motive

are irrelevant.

Business does not include:

a. volunteer activities for a not-for-profit or non-

profit organization or public agency for which

no money is received other than payment of

expenses;

b. incidental and infrequent personal economic

activity such as a hobby, garage or yard sale,

or traditional farm activities when the farm

products are intended only for the personal use

of the insured;

c. any occasional or part-time self-employed activity

by a person under 19 years of age that involves

no employees or subcontracted independent

contractors and is a type of activity normally per-

formed by persons under 19 years of age, in-

cluding but not limited to, child care, lawn

mowing, or paper delivery;

d. the ownership, maintenance, or use of systems

and equipment used to generate electrical

power up to but not exceeding 125 percent of

the actual electrical power usage by the resi-

dence premises in the 12-month period prior

to the date of the loss; or

e. ownership of the residence premises by the

person or organization shown in the Declara-

tions as Additional Insured.

5. “Declarations” means the policy Declarations, any

amended Declarations, the most recent renewal

Declarations, an Evidence of Insurance form, or

any endorsement changing any of these.

6. “diminution in value” means any reduction in the

value of any covered property prior to or following

repair or replacement as compared to the value of

that property immediately before the loss.

7. “dwelling” means the building structure on the

residence premises used as the primary private

residence and includes structures attached to the

dwelling.

8. “fungus” means any type or form of fungus, in-

cluding mold, mildew, mycotoxins, spores, scents, or

byproducts produced or released by fungi.

9. “insured” means:

a. you;

b. your relatives; and

c. any other person under the age of 21 in the

care of a person described above.

Under Section II, insured also means:

d. the person or organization legally responsible

for animals or watercraft to which this policy

applies. However, the animal or watercraft

must be owned by you or a person included in

9.b. or 9.c. above. A person or organization

using or having custody of these animals or

watercraft in the course of a business, or with-

out permission of the owner, is not an insured;

and

e. with respect to any vehicle to which this policy

applies, any person while engaged in your

employment or the employment of a person in-

cluded in 9.b. or 9.c. above.

10. “insured location” means:

a. the residence premises;

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b. the part of any other premises, other structures,

and grounds used by you as a residence. This

includes premises, structures, and grounds

you acquire while this policy is in effect for

your use as a residence;

c. any premises used by you in connection with

the premises included in 10.a. or 10.b. above;

d. any part of a premises not owned by an in-

sured but where an insured is temporarily re-

siding;

e. land owned by or rented to an insured on

which a one or two family dwelling is being

constructed as a residence for an insured;

f. individual or family cemetery plots or burial

vaults owned by an insured;

g. any part of a premises occasionally rented to

an insured for purposes other than business;

h. vacant land owned by or rented to an insured.

For the purposes of this definition, vacant land

does not include:

(1) farm land;

(2) land containing a residence; or

(3) land containing fences, corrals, boat

docks, tool sheds, barns, grain bins, and

similar structures, unless they are used

solely for the personal use of the insured;

i. farm land (without buildings), rented or held for

rental to others, but not to exceed a total of 500

acres, regardless of the number of locations.

11. “loss insured” means a loss as described under

SECTION I – LOSSES INSURED, COVERAGE A –

DWELLING and SECTION I – LOSSES INSURED,

COVERAGE B – PERSONAL PROPERTY.

12. “motor vehicle”, when used in Section II of this

policy, means:

a. a land motor vehicle designed for travel on

public roads or subject to motor vehicle regis-

tration;

b. a trailer or semi-trailer designed for travel on

public roads and subject to motor vehicle regis-

tration;

c. a “recreational or utility vehicle” while off an in-

sured location. “Recreational or utility vehicle”

means a motorized vehicle designed for rec-

reation or utility purposes, used principally off

public roads, and that is owned or leased by an

insured. This includes, but is not limited to, a

motorized all-terrain vehicle, side-by-side vehi-

cle, utility work vehicle, amphibious vehicle,

dune buggy, go-cart, golf cart, snowmobile,

trailbike, minibike, and personal assistive mo-

bility device. “Leased” does not include tempo-

rary rental;

d. a “locomotive” while off an insured location.

“Locomotive” means a self-propelled vehicle for

pulling or pushing freight or passenger cars on

tracks that is large enough to carry a person

and is owned or leased by an insured.

“Leased” does not include temporary rental;

e. a bulldozer, track loader, backhoe, high-hoe,

trencher, grader, crane, self-propelled scraper,

excavator, pipe-layer, cherry picker, tele-

handler, logging vehicle, mining vehicle, or

road building vehicle that is owned or leased by

an insured while off an insured location.

“Leased” does not include temporary rental;

and

f. any vehicle while being towed or pushed by or

carried on a vehicle included in 12.a. through

12.e. above.

The following are not motor vehicles:

a. a boat, camper, home, or utility trailer not being

towed or pushed by or carried on a vehicle in-

cluded in 12.a. through 12.e. above;

b. a motorized land vehicle in storage on an in-

sured location not intended to be operated for

an extended period of time and rendered inop-

erable by placing the vehicle on blocks or re-

moving parts essential for its operation;

c. a motorized golf cart while used for golfing pur-

poses;

d. a motorized vehicle or trailer designed to assist

persons with disabilities that is not designed for

travel on public roads or subject to motor vehi-

cle registration; or

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e. a commercially manufactured two, three, or

four wheeled personal conveyance powered

only by or assisted by an unmodified motor or

engine with a manufacturer’s power rating of no

more than 1 horsepower and capable of a top

speed of no more than 20 miles per hour.

13. “occurrence”, when used in Section II of this poli-

cy, means an accident, including accidental expo-

sure to conditions, which first results in:

a. bodily injury; or

b. property damage;

during the policy period. All bodily injury and prop-

erty damage resulting from one accident, series of

related accidents, or from continuous and repeated

exposure to the same general conditions is consid-

ered to be one occurrence.

14. “property damage” means physical damage to or

destruction of tangible property, including loss of use

of this property. Theft or conversion of property by

any insured is not property damage.

15. “relative” means any person related to you by:

a. blood;

b. adoption;

c. marriage; or

d. civil union, domestic partnership, or other sub-

stantially similar legal relationship that is rec-

ognized and valid in the state where, and at the

time when, the legal relationship was estab-

lished;

and who resides primarily with you.

16. “residence employee” means an employee of an

insured, or an employee leased to an insured by a

labor leasing firm under an agreement between an

insured and the labor leasing firm, who performs

duties, including household or domestic services, in

connection with the maintenance or use of the resi-

dence premises. This includes employees who per-

form similar duties elsewhere for you. This does not

include employees while performing duties in con-

nection with the business of an insured.

17. “residence premises” means:

a. the one, two, three, or four family dwelling, other

structures and grounds; or

b. that part of any other building structure;

where you reside and which is shown in the Decla-

rations.

18. “State Farm Companies” means one or more of

the following:

a. State Farm Mutual Automobile Insurance

Company;

b. State Farm Fire and Casualty Company; and

c. subsidiaries or affiliates of either 18.a. or 18.b.

above.

19. “vacant dwelling” means:

a. a dwelling:

(1) that has not been occupied as a residence

for more than 30 consecutive days imme-

diately before the loss; and

(2) where a predominant amount of personal

property has been removed or is absent

such that the dwelling is not functional as

a habitual place of residence.

A dwelling will be considered occupied only if it

is being used as a habitual place of residence

with your knowledge and approval.

b. A dwelling that is under active construction will

not be considered a vacant dwelling. A dwell-

ing is under active construction when it is:

(1) being built as a new structure;

(2) being repaired due to damage otherwise

covered by this policy; or

(3) undergoing substantial improvements,

renovations, remodeling, or modifications;

and the construction results in substantial con-

tinuing activities by persons associated with the

construction project at the premises during the

relevant time periods.

20. “we”, “us”, and “our” mean the Company shown

in the Declarations.

21. “you” and “your” mean the person or persons

shown as “Named Insured” in the Declarations. If a

“Named Insured” shown in the Declarations is a

human being, then you and your include:

a. a spouse of a “Named Insured”;

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b. a party to a civil union with a “Named Insured”;

c. a domestic partner of a “Named Insured”; or

d. a person in a substantially similar legal rela-

tionship with a “Named Insured”;

if such relationship is recognized and valid in the

state where, and at the time when, the legal rela-

tionship was established, so long as the person in

the above relationship resides primarily with that

“Named Insured”.

DEDUCTIBLE

In case of loss under this policy, we will pay, subject to

specified policy limits, only that part of the amount of the

loss that exceeds the deductible amount shown in the

Declarations. Deductibles will be applied per occur-

rence. Deductibles apply to specific losses as described

in this policy.

SECTION I – PROPERTY COVERAGES

COVERAGE A – DWELLING

1. Dwelling. We cover the dwelling and materials and

supplies located on or adjacent to the residence

premises for use in the construction, alteration, or

repair of the dwelling or other structures on the res-

idence premises.

2. Other Structures. We cover other structures on the

residence premises, separated from the dwelling

by clear space. Structures connected to the

dwelling by only a fence, utility line, or similar con-

nection are considered to be other structures.

We do not cover other structures:

a. not permanently attached to or otherwise form-

ing a part of the realty;

b. used either completely or in part for business

purposes unless such use consists solely of of-

fice space for paperwork, computer work, or

use of a telephone, and consists solely of activ-

ities that are:

(1) duties of the insured’s employment by

another; and

(2) performed solely by the insured; or

c. rented or held for rental unless:

(1) rented to a person who is a tenant of the

dwelling;

(2) rented for use solely as a private garage;

(3) rented either completely or in part, for ex-

clusive use as a residence, for no more

than 30 nights in the 12-month period prior

to the date of the loss.

3. Property Not Covered. We do not cover:

a. land, including the land necessary to support any

Coverage A property. We also do not cover:

(1) any costs required to replace, rebuild, sta-

bilize, or otherwise restore the land; or

(2) the costs of repair techniques designed to

compensate for or prevent land instability

to any property, whether or not insured

under Coverage A;

b. trees, shrubs, live or artificial plants, lawns, or arti-

ficial grass, except as provided in SECTION I –

ADDITIONAL COVERAGES, Trees, Shrubs,

and Landscaping; or

c. systems and equipment used to generate elec-

trical power exceeding 125 percent of the actual

electrical power usage by the residence prem-

ises in the 12-month period prior to the date of

the loss.

COVERAGE B – PERSONAL PROPERTY

1. Property Covered.

a. We cover personal property owned or used by an

insured while it is anywhere in the world. This in-

cludes structures not permanently attached to or

otherwise forming a part of the realty. At your

request, we

will cover personal property:

(1) owned by others while the property is on

the part of the residence premises occu-

pied exclusively by an insured;

(2) owned by a guest or a residence em-

ployee, while the property is in any other

residence occupied by an insured; and

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(3) owned by roomers, boarders, tenants, and

other residents, any of whom are related

to you.

b. We cover personal property usually located at

an insured’s residence, other than the resi-

dence premises, for up to $1,000 or 10% of

the Coverage B limit, whichever is greater.

This limitation does not apply to personal prop-

erty:

(1) in a newly acquired principal residence for

the first 30 days after you start moving the

property there. If the residence premises is

a newly acquired principal residence, per-

sonal property in your immediate past

principal residence is not subject to this

limitation for the first 30 days after the in-

ception of this policy; and

(2) of a student who is an insured while lo-

cated at a residence away from the res-

idence premises.

Special Limits of Liability. These limits do not in-

crease the Coverage B limit. The special limit for

each of the following categories is the total limit for

each loss for all property in that category:

a. $200 on money, coins, and medals, including

any of these that are a part of a collection,

bank notes, bullion, gold other than goldware,

silver other than silverware, and platinum;

b. $1,500 on property used or intended for use in

a business, including merchandise held as

samples or for sale or for delivery after sale,

while on the residence premises. This cover-

age is limited to $750 on such property away

from the residence premises.

Electronic data processing system equipment

or the recording or storage media used with

that equipment is not included under this cov-

erage, and is addressed in item c. below;

c. $10,000 on electronic data processing system

equipment used or intended for use in a busi-

ness, including but not limited to computers, tab-

lets, mobile personal communication equipment,

global positioning systems, mobile personal elec-

tronic devices used for the reproduction of sound,

and standard media or non-media equipment for

use with the above devices;

d. $1,500 on securities, checks, cashiers checks,

travelers checks, money orders, gift certifi-

cates, gift cards, rechargeable debit cards,

phone cards, and other negotiable instruments,

accounts, deeds, evidences of debt, letters of

credit, notes other than bank notes, manu-

scripts, passports, and tickets;

e. $1,500 on watercraft of all types and outboard

motors, including their trailers, furnishings, and

equipment;

f. $1,500 on trailers not used with watercraft;

g. $2,500 on stamps, trading cards, and comic

books, including any of these that are a part of

a collection;

h. $2,500 for loss by theft of firearms;

i. $2,500 for loss by theft of silverware and

goldware;

j. $5,000 on any one article and $10,000 in the ag-

gregate for loss by theft of any rug, carpet (ex-

cept wall-to-wall carpet), tapestry, wall-hanging,

or other similar article;

k. $1,000 on commercially manufactured two,

three, or four wheeled personal conveyances

powered only by or assisted by an unmodified

motor or engine with a manufacturer’s power

rating of no more than 1 horsepower and capa-

ble of a top speed of no more than 20 miles per

hour. This does not include such conveyances

that are:

(1) designed for assisting persons with

disabilities;

(2) not designed for travel on public roads; and

(3) not subject to motor vehicle registration; and

l. $1,000 for loss by theft of jewelry, watches, fur

garments and garments trimmed with fur, and

precious and semi-precious stones.

Property Not Covered. We do not cover:

a. articles separately described and specifically

insured in this or any other insurance;

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b. animals, birds, or fish;

c. any engine-propelled or motor-propelled vehicle

or machine, including parts, designed for move-

ment on land, except as provided in Special

Limits of Liability, item k. However, we do

cover those vehicles or machines:

(1) that are:

(a) not designed for travel on public

roads; and

(b) not subject to motor vehicle registra-

tion;

(2) and that are:

(a) used primarily to service the insured

location; or

(b) designed for assisting persons with

disabilities;

d. any electronic equipment, devices, or accesso-

ries designed for the recording, reproduction, or

storage of audio, video, photos, or other data

that is permanently installed in or permanently

fastened to an engine-propelled or motor-

propelled vehicle or hard-wired directly to the

vehicle’s electrical system. We also do not

cover removable products that may be used

with the equipment or devices described

above, including but not limited to tapes, discs,

videos, or memory cards while in an engine-

propelled or motor-propelled vehicle;

e. aircraft and parts. This does not apply to un-

manned aircraft systems used as model aircraft

and operated solely for recreational or hobby

purposes;

f. property of roomers, boarders, tenants, and

other residents not related to you;

g. property regularly rented or held for rental to

others by an insured. This does not apply to

property of an insured:

(1) in a sleeping room when the dwelling is

rented in part, for use as a permanent res-

idence, by either one or two full-time

roomers or boarders; or

(2) on the residence premises if it is rented,

either completely or in part, for exclusive

use as a residence, for no more than 30

nights in the 12-month period prior to the

date of the loss;

h. property rented or held for rental to others

away from the residence premises;

i. any radio devices or transmitters, global posi-

tioning systems, radar or laser detectors, an-

tennas, and all other similar equipment that is

permanently installed in or permanently fas-

tened to an engine-propelled or motor-

propelled vehicle or that is hard-wired directly

to the vehicle’s electrical system;

j. books or records of accounts receivable, ab-

stracts or other journals, architectural or tech-

nical drawings, card index systems, or other

records. This does not apply to any recording

or storage media for electronic data pro-

cessing. We will cover the cost of blank books,

cards, or other blank material plus the cost of

labor you incur for transcribing or copying such

records;

k. recording or storage media for electronic data

processing that cannot be replaced with prop-

erty of like kind and quality on the current retail

market;

l. purchased or created audio, video, photos, or

other data that cannot be replaced with like

kind and quality on the current retail market

and that is transferred or downloaded onto

mobile communication equipment, global posi-

tioning systems, or electronic devices designed

for the recording, reproduction, or storage of

audio, video, photos, or other data;

m. contraband, or any property used in the course

of illegal consumption, possession, import, ex-

port, or trade;

n. outdoor hardscape property used for aesthetic

purposes except as provided in SECTION I –

ADDITIONAL COVERAGES, Trees, Shrubs,

and Landscaping; or

o. electronic currency, digital currency, virtual cur-

rency, crypto-currency, and other similar medi-

ums of exchange.

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COVERAGE C – LOSS OF USE

The most we will pay for the sum of all losses combined

under Additional Living Expense, Fair Rental Value,

and Prohibited Use is the limit of liability shown in the

Declarations for Coverage C – Loss of Use.

1. Additional Living Expense. When a loss insured

causes the residence premises to become unin-

habitable, we will pay the reasonable and necessary

increase in cost incurred by an insured to maintain

their normal standard of living for up to 24 months.

Our payment is limited to incurred costs for the

shortest of:

a. the time required to repair or replace the premises;

b. the time required for your household to settle

elsewhere; or

c. 24 months.

This period of time is not limited by the expiration of

this policy.

We will not pay more than the limit of liability shown

in the Declarations for Coverage C – Loss of Use.

Any normal expenses that are reduced or discontin-

ued due to a loss insured will be subtracted from

any amount owed.

2. Fair Rental Value. When a loss insured causes

that part of the residence premises rented to others or

held for rental by you to become uninhabitable, we

will pay its fair rental value. Payment will be for the

shortest time required to repair or replace the part of

the premises rented or held for rental, but not to ex-

ceed 12 months. This period of time is not limited by

the expiration of this policy. Fair rental value will not

include any expense that does not continue while

that part of the residence premises rented or held

for rental is uninhabitable.

3. Prohibited Use. We will pay Additional Living Ex-

pense and Fair Rental Value, for a continuous period

not to exceed two weeks, beginning when a civil au-

thority issues an order of evacuation or prohibits

your use of the residence premises, provided that:

a. direct physical damage occurs to any property,

other than covered property located on the res-

idence premises, arising from a cause of loss

that would be a loss insured under this policy

if the damage had occurred to property on the

residence premises;

b. the residence premises

is within one mile of

property damaged by a cause of loss identified

in 3.a. above; and

c. the action of the civil authority is taken in re-

sponse to:

(1) dangerous physical conditions resulting

from the continuation of the cause of loss

identified in 3.a. above;

(2) dangerous physical conditions resulting

from the damage caused by the cause of

loss identified in 3.a. above; or

(3) the need to gain free access to property

damaged by the cause of loss identified in

3.a. above.

We will not pay for loss or expense due to cancella-

tion of a lease or agreement.

SECTION I – ADDITIONAL COVERAGES

The following Additional Coverages are subject to all

the terms, provisions, exclusions, and conditions of

this policy.

1. Debris Removal. We will pay the reasonable ex-

penses you incur in the removal of debris of cov-

ered property damaged by a loss insured. This

expense is included in the limit applying to the dam-

aged property. The following coverages and limits

also apply:

a. When the amount payable for the property dam-

age plus the debris removal exceeds the limit for

damaged property, an additional 5% of that limit

is available for debris removal expense. This

additional amount of insurance does not apply to

SECTION I – ADDITIONAL COVERAGES,

Trees, Shrubs, and Landscaping.

b. We will also pay up to $1,000 total for each

loss to cover the reasonable expenses you in-

cur in the removal of tree debris and stumps

from the residence premises, unless other-

wise excluded. This coverage applies when:

(1) the tree has caused a loss insured to

Coverage A property; or

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(2) the tree debris felled by windstorm, hail, or

weight of snow or ice blocks:

(a) the driveway, on the residence prem-

ises, and prevents land motor vehicle

access to or from the dwelling; or

(b) a ramp designed to assist persons

with disabilities, on the residence

premises, and prevents access to or

from a building structure.

2. Temporary Repairs. If damage is caused by a loss

insured, we will pay the reasonable and necessary

cost you incur for temporary repairs to covered property

to protect the property from further immediate damage

or loss. This coverage does not increase the limit ap-

plying to the property being repaired.

3. Trees, Shrubs, and Landscaping. We will pay for

accidental direct physical loss to outdoor:

a. trees, shrubs, live or artificial plants, and lawns;

b. artificial grass; and

c. hardscape property used for aesthetic purposes

not permanently affixed to realty;

on the residence premises, caused by the follow-

ing perils: Fire or lightning, Explosion, Riot or

civil commotion, Aircraft, Vehicles (not owned or

operated by a resident of the residence premises),

Vandalism or malicious mischief, or Theft.

The limit for this coverage, including the removal of

debris, will not exceed 5% of the amount shown in

the Declarations for COVERAGE A – DWELLING.

We will not pay more than $750 for any one outdoor

tree, shrub, plant, or hardscape item, including de-

bris removal expense. This coverage may increase

the limit otherwise applicable. We will not pay for

any loss to property grown for business purposes.

4. Fire Department Service Charge. We will pay up

to $500 per occurrence for fire department charges

incurred when the fire department is called to save

or protect Coverage A property from fire, lightning, or

explosion. No deductible applies to this coverage. This

coverage may increase the limit otherwise applicable.

5. Property Removed. We will pay for any accidental

direct physical loss to covered property while being

removed from a premises endangered by a loss in-

sured. This coverage also applies to the property

for up to 30 days while removed. We will also pay

for reasonable expenses incurred by you for the

removal and return of the covered property. This

coverage does not increase the limit applying to the

property being removed.

6. Credit Card, Bank Fund Transfer Card, Forgery,

and Counterfeit Money.

a. We will pay up to $1,000 for:

(1) the legal obligation of an insured to pay

because of the theft or unauthorized use

of credit cards and bank fund transfer

cards issued to or registered in an in-

sured’s name. If an insured has not

complied with all terms and conditions un-

der which the cards are issued, we will not

pay for use by an insured or anyone else;

(2) loss to an insured caused by forgery or

alteration of any check or negotiable in-

strument; and

(3) loss to an insured through acceptance in

good faith of counterfeit United States or

Canadian paper currency.

No deductible applies to this coverage.

We will not pay more than the limit stated above

for forgery or alteration committed by any one

person. This limit applies when the forgery or al-

teration involves one or more instruments in the

same loss.

b. We will not pay for loss arising out of business

pursuits or dishonesty of an insured.

c. Defense:

(1) We may make any investigation and settle

any claim or suit that we decide is appro-

priate. Our obligation to defend claims or

suits ends when the amount we pay for

the loss equals our limit of liability.

(2) If claim is made or a suit is brought against

an insured for liability under the Credit Card

or Bank Fund Transfer Card coverage, we

will provide a defense. This defense is at

our expense by counsel of our choice.

(3) We have the option to defend at our ex-

pense an insured or an insured’s bank

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against any suit for the enforcement of

payment under the Forgery coverage.

7. Power Interruption. We will pay for accidental

direct physical loss caused directly or indirectly by a

change of temperature that results from power inter-

ruption that takes place on the residence premises.

The power interruption must be caused by a loss

insured occurring on the residence premises. The

power lines off the residence premises must re-

main energized. This coverage does not increase

the limit applying to the damaged property.

8. Refrigerated Products. Coverage B is extended to

cover the contents of deep freeze or refrigerated

units on the residence premises for loss due to

power failure or mechanical failure. If mechanical

failure or power failure is known to you, all reasonable

means must be used to protect the property insured

from further damage or this coverage is void. Power

failure or mechanical failure does not include:

a. removal of a plug from an electrical outlet; or

b. turning off an electrical switch unless caused

by a loss insured.

This coverage does not increase the limit applying

to the damaged property.

9. Arson Reward. We will pay $1,000 for information

that leads to an arson conviction in connection with

a fire loss to property covered by this policy. This

coverage may increase the limit otherwise applica-

ble. However, the $1,000 limit will not be increased

regardless of the number of persons providing in-

formation.

10. Volcanic Action. We will pay for accidental direct

physical loss to a covered building structure or

covered property contained in a building structure

resulting from the eruption of a volcano when the

loss is directly and immediately caused by:

a. airborne volcanic shock waves;

b. ash, dust, or particulate matter; or

c. lava flow.

We will also pay for the removal of that ash, dust, or

particulate matter that has caused accidental direct

physical loss to a covered building structure or

covered property contained in a building structure.

All volcanic eruptions that occur within any 168-hour

period will be considered one volcanic eruption.

This coverage does not increase the limit applying

to the damaged property.

11. Collapse. We will pay for accidental direct physical

loss to covered property involving the abrupt, entire

collapse of a building structure or any part of a

building structure.

a. Collapse means the abrupt and entire falling

down, caving in, or falling into pieces of a

building structure or any part of a building

structure. Collapse does not include any of

the following:

(1) settling, cracking, crumbling, deterioration,

shrinking, bulging, expansion, sagging,

bowing, leaning, or bending;

(2) substantial structural impairment;

(3) imminent or threatened collapse;

(4) a building structure or any part of a

building structure that is in danger of

falling down or caving in; or

(5) a part of a building structure that is

standing even if:

(a) it has separated from another part of

the building structure; or

(b) it shows evidence of settling, cracking,

crumbling, deterioration, shrinking,

bulging, expansion, sagging, bowing,

leaning, or bending.

b. The collapse must be directly and immediately

caused by one or more of the following:

(1) perils described in SECTION I – LOSSES

INSURED, COVERAGE B – PERSONAL

PROPERTY. These perils apply to build-

ing structures covered under Coverage

A or Coverage B for loss insured by this

Additional Coverage;

(2) decay or deterioration of, or damage from

animals, birds, or insects to:

(a) a connector; or

(b) a structural member of a building

structure;

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The decay, deterioration, or damage must

be hidden from view and unknown to all

insureds prior to the collapse;

(3) weight of contents, equipment, animals, or

people;

(4) weight of ice, snow, sleet, or rain that col-

lects on a roof, porch, or deck; or

(5) use of defective material or methods in the

construction (includes remodeling or reno-

vation) of the building structure, if the

collapse occurs during the course of the

construction of the building structure.

Loss to awnings, fences, patios, pavement,

swimming pools, underground pipes, flues,

drains, cesspools, septic tanks, foundations

(including slabs, basement walls, and crawl

space walls), retaining walls, bulkheads, piers,

wharfs, docks, trellises, or antennas and their

supporting structures is not included under

items (2), (3), and (4) immediately above un-

less the loss is the direct and immediate result

of the collapse of a building structure or any

part of a building structure.

This coverage does not increase the limit applying

to the damaged property.

12. Locks and Remote Devices. We will pay up to

$1,000 for each loss for the reasonable expenses

you incur to rekey, replace, recode, program, or re-

program locks on exterior doors to the dwelling or

other structures located on the residence premises

when the keys or remote devices used with those

doors are part of a covered theft loss. This cover-

age includes remote devices designed solely for

locking, unlocking, opening, or closing doors, includ-

ing garage doors and gates.

No deductible applies to this coverage.

13. Fuel Oil Release. We will pay up to $10,000 for

each loss for accidental direct physical loss to cov-

ered property caused by the abrupt and accidental

escape of liquid fuel oil from a fixed household tank,

apparatus, or pipes that are part of a heating unit for

the dwelling. This includes damage to covered

property resulting from an accidental spill or overflow

of fuel oil in the course of filling a fixed household

tank.

This coverage includes surface clean up only. We

will not pay for:

a. the cost to repair or replace the fuel oil tank,

apparatus, and pipes; or

b. the cost of testing, monitoring, removing, treat-

ing, or detoxifying of soil, air, or water.

This coverage does not increase the limit applying

to the damaged property.

14. Tear Out. If a loss insured to Coverage A property

is caused by water, steam, or sewage escaping from

a system or appliance, we will also pay the reason-

able cost you incur to tear out and replace only that

particular part of the building structure necessary

to gain access to the specific point of that system or

appliance from which the water, steam, or sewage

escaped. We will not pay for the cost of repairing or

replacing the system or appliance itself. This cover-

age does not increase the limit applying to Cover-

age A property.

15. Home Certification. If damage to covered property

is caused by a

loss insured, we will pay the rea-

sonable increase in cost to repair or replace only the

damaged property to maintain the dwelling’s FOR-

TIFIED HOME or FORTIFIED FOR SAFER LIVING

certification in place at the time of the loss. This

coverage does not increase the limit applying to the

damaged property.

We will not pay:

a. any increase in cost until the repair or replace-

ment of the property is complete; or

b. for increased costs resulting from enforcement of

any ordinance or law regulating the construction

or repair of the dwelling except as provided un-

der OPTIONAL POLICY PROVISIONS, Option

OL – Building Ordinance or Law.

This coverage does not apply if Loss Settlement

provision A2 – Replacement Cost Loss Settlement –

Common Construction is shown in the Declara-

tions.

INFLATION COVERAGE

The limits of liability shown in the Declarations for Cov-

erage A, Coverage B, and when applicable, Option ID will

be increased at the same rate as the increase in the

Inflation Coverage Index shown in the Declarations.

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To find the limits on a given date:

1. divide the Index on that date by the Index as of the effec-

tive date of this Inflation Coverage provision; then

2. multiply the resulting factor by the limits of liability for

Coverage A, Coverage B, and Option ID separately.

The limits of liability will not be reduced to less than the

amounts shown in the Declarations.

If during the term of this policy the Coverage A limit of

liability is changed at your request, the effective date of

this Inflation Coverage provision is changed to coincide

with the effective date of such change.

SECTION I – LOSSES INSURED

COVERAGE A – DWELLING

We will pay for accidental direct physical loss to the

property described in Coverage A, unless the loss is

excluded or limited in SECTION I – LOSSES NOT IN-

SURED or otherwise excluded or limited in this policy.

However, loss does not include and we will not pay for,

any diminution in value.

COVERAGE B – PERSONAL PROPERTY

We will pay for accidental direct physical loss to the prop-

erty described in Coverage B caused by the following per-

ils, unless the loss is excluded or limited in SECTION I –

LOSSES NOT INSURED or otherwise excluded or lim-

ited in this policy. However, loss does not include and

we will not pay for, any diminution in value.

1. Fire or lightning.

2. Windstorm or hail. This peril does not include loss

to property contained in a structure caused by rain,

snow, sleet, sand, or dust. This limitation does not

apply when the direct force of wind or hail damages

the structure causing an opening in a roof or wall

and the rain, snow, sleet, sand, or dust enters

through this opening.

This peril includes loss to watercraft of all types and

their trailers, furnishings, equipment, and outboard

motors, only while inside a building structure.

3. Explosion.

4. Riot or civil commotion.

5. Aircraft, including self-propelled missiles and

spacecraft.

6. Vehicles, meaning accidental direct physical loss to

covered property caused by the weight, force, power,

or movement of a vehicle.

a. This includes:

(1) the impact of a vehicle;

(2) an object propelled from the tire or body of

a vehicle;

(3) the upset or collision of a vehicle with a

stationary object or other vehicle, includ-

ing damage to personal property carried

on the exterior of the vehicle; or

(4) a vehicle door or trunk lid being closed on

personal property.

b. This peril does not include loss:

(1) to personal property that falls off a vehicle

and strikes the ground, any other surface,

or any object;

(2) caused by shifting of the load being car-

ried in or on a vehicle; or

(3) to the vehicle itself unless the vehicle is

property covered under COVERAGE B –

PERSONAL PROPERTY and the loss is

caused by the weight, force, power, or

movement of another vehicle.

7. Smoke, meaning abrupt and accidental damage

from smoke.

This peril does not include loss caused by smoke

from agricultural smudging or industrial operations.

8. Vandalism or malicious mischief, meaning only

willful and malicious damage to or destruction of

property.

9. Theft, including attempted theft and loss of property

from a known location when it is probable that the

property has been stolen.

This peril does not include:

a. loss of a precious or semi-precious stone from

its setting;

b. loss caused by theft:

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(1) committed by an insured or by any other

person regularly residing on the insured

location. Property of a student who is an

insured is covered while located at a res-

idence away from the residence premises,

if the theft is committed by a person who

is not an insured;

(2) in or to a dwelling under construction or of

materials and supplies for use in the con-

struction until the dwelling is completed and

occupied; or

(3) from the part of a residence premises

rented to others:

(a) caused by a tenant, members of the

tenant’s household, or the tenant’s

employees unless the residence

premises is rented, either completely

or in part, for exclusive use as a resi-

dence, for no more than 30 nights in

the 12-month period prior to the date

of the loss;

(b) of money, bank notes, bullion, gold,

goldware, silver, silverware, pewter-

ware, platinum, coins, and medals;

checks, travelers checks, money or-

ders, gift certificates, gift cards, re-

chargeable debit cards, phone cards,

and other negotiable instruments, ac-

counts, deeds, evidences of debt, let-

ters of credit, notes other than bank

notes, manuscripts, passports, tick-

ets, and stamps; or

(d) of jewelry, watches, fur garments and

garments trimmed with fur, and pre-

cious and semi-precious stones; or

c. loss caused by theft that occurs away from the

residence premises of:

(1) property while at any other residence

owned, rented to, or occupied by an in-

sured, except while an insured is tempo-

rarily residing there. Property of a student

who is an insured is covered while at a

residence away from the residence

premises;

(2) watercraft of all types, including their fur-

nishings, equipment, and outboard mo-

tors; or

(3) trailers and campers designed to be pulled

by or carried on a vehicle.

If the residence premises is a newly acquired

principal residence, property in the immediate

past principal residence will not be considered

property away from the residence premises

for the first 30 days after the inception of this

policy.

10. Falling objects. This peril does not include loss to

property contained in a structure unless the roof or

an exterior wall of the structure is first damaged by a

falling object. Damage to the falling object itself is

not included.

11. Weight of ice, snow, or sleet that causes damage

to property contained in a structure.

12. Abrupt and accidental discharge or overflow of

water, steam, or sewage from within a plumbing,

heating, air conditioning, or automatic fire protective

sprinkler system, or from within a household appliance.

This peril does not include loss:

a. to the system or appliance from which the water,

steam, or sewage escaped;

b. caused by or resulting from:

(1) freezing;

(2) water or sewage from outside the resi-

dence premises plumbing system that

enters through sewers or drains, or water

that enters into and overflows from within

a sump pump, sump pump well, or any

other system designed to remove subsur-

face water that is drained from the founda-

tion area; or

(3) the pressure from or presence of tree,

shrub, or plant roots; or

c. that occurs or develops over a period of time

and is caused by or resulting from:

(1) condensation or the presence of humidity,

moisture, or vapor; or

(2) seepage or leakage of water, steam, or

sewage that is:

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(a) continuous;

(b) repeating;

(d) intermittent;

(e) slow; or

(f) trickling.

13. Abrupt and accidental tearing asunder, cracking,

burning, or bulging of a steam or hot water

heating system, an air conditioning system, an

automatic fire protective sprinkler system, or an ap-

pliance for heating water.

This peril does not include loss:

a. caused by or resulting from freezing; or

b. that occurs or develops over a period of time

and is caused by or resulting from:

(1) condensation or the presence of humidity,

moisture, or vapor; or

(2) seepage or leakage of water or steam that

is:

(a) continuous;

(b) repeating;

(d) intermittent;

(e) slow; or

(f) trickling.

14. Freezing of a plumbing, heating, air conditioning, or

automatic fire protective sprinkler system, or of a

household appliance.

This peril does not include:

a. loss to a portable hot tub or portable spa unless

you have used reasonable care to prevent

freezing; or

b. loss on the residence premises unless you

have used reasonable care to:

(1) maintain heat in the building structure at

55 degrees Fahrenheit or higher; or

(2) shut off the water supply and drain the

system and appliances of water.

However, if the building structure is protected

by an automatic fire protective sprinkler system,

you must use reasonable care to continue the

water supply and maintain heat in the building

structure at 55 degrees Fahrenheit or higher

for coverage to apply.

15. Abrupt and accidental damage to electrical appli-

ances, devices, fixtures, and wiring from an increase

or decrease of artificially generated electrical current.

We will pay up to $3,000 under this peril for each

damaged item described above.

16. Breakage of glass, meaning damage to personal

property caused by breakage of glass that is a part

of a structure on the residence premises. We will

not pay for loss or damage to the glass.

17. Wild bears or deer, meaning damage caused by

wild bears or deer to property located in a building

structure.

SECTION I – LOSSES NOT INSURED

1. We will not pay for any loss to the property de-

scribed in Coverage A that consists of, or is directly

and immediately caused by, one or more of the per-

ils listed in items a. through m. below, regardless of

whether the loss occurs abruptly or gradually, in-

volves isolated or widespread damage, arises from

natural or external forces, or occurs as a result of

any combination of these:

a. collapse, except as specifically provided in

SECTION I – ADDITIONAL COVERAGES,

Collapse;

b. freezing of a plumbing, heating, air conditioning,

or automatic fire protective sprinkler system or

of a household appliance; or discharge, leak-

age, or overflow from within the system or ap-

pliance caused by freezing. This does not apply

if you have used reasonable care to:

(1) maintain heat in the building structure at

55 degrees Fahrenheit or higher; or

(2) shut off the water supply and drain the

system and appliances of water.

However, if the building structure is protected

by an automatic fire protective sprinkler sys-

tem, you must use reasonable care to continue

the water supply and maintain heat in the

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building structure at 55 degrees Fahrenheit

or higher for coverage to apply;

c. freezing, thawing, pressure, or weight of water,

ice, snow, or sleet, whether driven by wind or

not, to:

(1) a swimming pool, hot tub, or spa, includ-

ing their covers, filtration, and circulation

systems; or

(2) an awning, fence, pavement, patio, foun-

dation (including slabs, basement walls,

crawl space walls, and footings), retaining

wall, bulkhead, pier, wharf, or dock;

d. theft in or to a dwelling under construction, or of

materials and supplies for use in the construction,

until the dwelling is completed and occupied;

e. theft, vandalism, malicious mischief, or breakage

of glass and safety glazing materials if the

dwelling is a vacant dwelling;

f. seepage or leakage of water, steam, or sewage

that occurs or develops over a period of time:

(1) and is:

(a) continuous;

(b) repeating;

(d) intermittent;

(e) slow; or

(f) trickling; and

(2) from a:

(a) heating, air conditioning, or automatic

fire protective sprinkler system;

(b) household appliance; or

within or around any shower stall,

shower bath, tub installation, or other

plumbing fixture, including their walls,

ceilings, or floors.

We also will not pay for losses arising from

condensation or the presence of humidity,

moisture, or vapor that occurs or develops over

a period of time;

g. wear, tear, decay, marring, scratching, deterio-

ration, inherent vice, latent defect, or mechanical

breakdown;

h. corrosion, electrolysis, or rust;

i. wet or dry rot;

j. contamination or pollution, meaning the pres-

ence, discharge, dispersal, seepage, migration,

release, or escape of contaminants or pollu-

tants at or from any source. This does not apply if

the presence, discharge, dispersal, seepage,

migration, release, or escape is itself caused by

a peril described in SECTION I – LOSSES IN-

SURED, COVERAGE B – PERSONAL

PROPERTY.

(1) Contaminants and pollutants include but

are not limited to any:

(a) solid, liquid, gaseous, or thermal irritant,

including smoke from agricultural

smudging or industrial operations,

smog, soot, vapor, fumes, acids, al-

kalis, chemicals, pathogens, noxious

substances, asbestos, or lead;

(b) contaminants or pollutants resulting

from any natural resource extraction

activities; or

in SECTION I – ADDITIONAL

COVERAGES, Fuel Oil Release.

(2) We also will not pay for:

(a) losses arising from contamination or

pollution caused by or resulting from

defective building materials, nuclear

substances, and waste. Waste in-

cludes materials to be recycled, re-

conditioned, or reclaimed;

(b) the cost to extract contaminants or

pollutants from land, water, or air, or

the cost to remove, restore, or re-

place contaminated or polluted land,

water, or air; or

ing, removing, containing, treating,

detoxifying, neutralizing, remediating,

disposing of, or assessing the effects

of contaminants or pollutants;

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k. settling, cracking, shrinking, bulging, or expan-

sion of pavements, patios, foundations (includ-

ing slabs, basement walls, crawl space walls,

and footings), walls, floors, roofs, or ceilings;

l. all animals, birds, or insects.

(1) This includes:

(a) nesting, infestation, gnawing, feeding,

breeding, or discharge or release of

waste products or secretions by ani-

mals, birds, or insects;

(b) costs to remove animals, birds, or in-

sects from the covered property; and

insects from returning to the property;

(2) However, we will pay for:

(a) losses caused by wild bears or deer;

and

(b) the breakage of glass or safety glaz-

ing material that is a part of a build-

ing structure, when caused by

animals, birds, or insects; or

m. pressure from or presence of tree, shrub, or

plant roots.

However, we will pay for any resulting loss from

items a. through l. unless the resulting loss is itself a

Loss Not Insured as described in this Section.

2. We will not pay for, under any part of this policy, any

loss that would not have occurred in the absence of

one or more of the following excluded events. We

will not pay for such loss regardless of: (a) the

cause of the excluded event; or (b) other causes of

the loss; or (c) whether other causes acted concur-

rently or in any sequence with the excluded event to

produce the loss; or (d) whether the event occurs

abruptly or gradually, involves isolated or wide-

spread damage, occurs on or off the residence

premises, arises from any natural or external forces,

or occurs as a result of any combination of these:

a. Ordinance or Law, meaning enforcement of

any ordinance or law regulating the construction,

repair, or demolition of a building structure or

other structure.

b. Earth Movement, meaning the sinking, rising,

shifting, expanding, or contracting of earth, all

regardless of whether combined with water,

sewage, or any material carried by, or other-

wise moved by the earth. Earth movement in-

cludes but is not limited to:

(1) earthquake;

(2) landslide, mudslide, or mudflow;

(3) sinkhole or subsidence;

(4) movement resulting from:

(a) improper compaction;

(b) site selection;

(d) excavation;

(5) erosion;

(6) pressure by surface or subsurface earth or

fill; or

(7) any volcanic activity, except as specifically

provided in SECTION I – ADDITIONAL

COVERAGES, Volcanic Action.

However, we will pay for any accidental direct

physical loss by fire resulting from earth

movement, provided the resulting fire loss is

itself a loss insured.

c. Water, meaning:

(1) flood;

(2) surface water. This does not include wa-

ter solely caused by the release of water

from a swimming pool, spigot, sprinkler

system, hose, or hydrant;

(3) waves (including tidal wave, tsunami, and

seiche);

(4) tides or tidal water;

(5) overflow of any body of water (including

any release, escape, or rising of any body

of water, or any water held, contained, con-

trolled, or diverted by a dam, levee, dike, or

any type of water containment, diversion,

or flood control device);

(6) spray or surge from any of the items c.(1)

through c.(5) described above, all whether

driven by wind or not;

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(7) water or sewage from outside the resi-

dence premises plumbing system that

enters through sewers or drains, or water

or sewage that enters into and overflows

from within a sump pump, sump pump

well, or any other system designed to re-

move subsurface water that is drained

from the foundation area;

(8) water or sewage below the surface of the

ground, including water or sewage that

exerts pressure on, or seeps or leaks

through a building structure, sidewalk,

driveway, swimming pool, or other struc-

ture; or

(9) material carried or otherwise moved by

any of the water or sewage, as described

in items c.(1) through c.(8) above.

However, we will pay for any accidental direct

physical loss by fire, explosion, or theft result-

ing from water, provided the resulting loss is it-

self a loss insured.

d. Neglect, meaning neglect of the insured to

use all reasonable means to save and preserve

property at and after the time of a loss, or when

property is endangered.

e. War, including any undeclared war, civil war,

insurrection, rebellion, revolution, warlike act by

a military force or military personnel, destruc-

tion or seizure or use for a military purpose,

and including any consequence of any of

these. Discharge of a nuclear weapon will be

considered a warlike act even if accidental.

f. Nuclear Hazard, meaning any nuclear reac-

tion, radiation, or radioactive contamination, all

whether controlled or uncontrolled or however

caused, or any consequence of any of these.

Loss caused by the nuclear hazard will not be

considered loss caused by fire, explosion, or

smoke.

However, we will pay for any accidental direct

physical loss by fire resulting from the nuclear

hazard, provided the resulting fire loss is itself a

loss insured.

g. Fungus, including:

(1) any loss of use or delay in rebuilding,

repairing, or replacing covered property,

including any associated cost or expense,

due to interference at the residence

premises or location of the rebuilding, re-

pair, or replacement, by fungus;

(2) any remediation of fungus, including the

cost to:

(a) remove the fungus from covered

property or to repair, restore, or re-

place that property; or

(b) tear out and replace any part of the

building structure or other property

as needed to gain access to the

fungus; or

(3) the cost of any testing or monitoring of air

or property to confirm the type, absence,

presence, or level of fungus, whether per-

formed prior to, during, or after removal,

repair, restoration, or replacement of cov-

ered property.

h. Intentional Losses. If any insured intention-

ally causes or procures a loss to property

covered under this policy, we will not pay any

insured for this loss. This applies regardless

of whether the insured is charged with or con-

victed of a crime.

This does not apply to an insured

who did not

participate in, cooperate in, or contribute to

causing or procuring the loss.

3. We will not pay for, under any part of this policy, any

loss consisting of one or more of the items below.

Further, we will not pay for any loss described in

paragraphs 1. and 2. immediately above regardless

of whether one or more of the following: (a) directly

or indirectly cause, contribute to, or aggravate the

loss; or (b) occur before, at the same time, or after

the loss or any other cause of the loss:

a. conduct, act, failure to act, or decision of any

person, group, organization, or governmental

body whether intentional, wrongful, negligent,

or without fault;

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b. defect, weakness, inadequacy, fault, or un-

soundness in:

(1) planning, zoning, development, surveying,

or siting;

(2) design, specifications, workmanship, repair,

construction, renovation, remodeling,

grading, or compaction;

(3) materials used in repair, construction, renova-

tion, remodeling, grading, or compaction; or

(4) maintenance;

of any property (including land, structures, or

improvements of any kind) whether on or off

the residence premises; or

c. weather conditions.

However, we will pay for any resulting loss from

items 3.a., 3.b., and 3.c. unless the resulting loss is

itself a Loss Not Insured as described in this Sec-

tion.

SECTION I – LOSS SETTLEMENT

Only the Loss Settlement Provisions shown in the

Declarations apply. We will settle covered property

losses according to the following. However, the valuation

of any covered property losses does not include, and we

will not pay, any amount for diminution in value.

COVERAGE A – DWELLING

1. A1 – Replacement Cost Loss Settlement – Simi-

lar Construction.

a. We will pay the cost to repair or replace with

similar construction and for the same use on

the premises shown in the Declarations, the

damaged part of the property covered under

SECTION I – PROPERTY COVERAGES,

COVERAGE A – DWELLING, except for wood

fences, subject to the following:

(1) until actual repair or replacement is com-

pleted, we will pay only the actual cash

value of the damaged part of the property,

up to the applicable limit of liability shown

in the Declarations, not to exceed the

cost to repair or replace the damaged part

of the property;

(2) when the repair or replacement is actually

completed, we will pay the covered addi-

tional amount you actually and necessarily

spend to repair or replace the damaged

part of the property, or an amount up to

the applicable limit of liability shown in the

Declarations, whichever is less;

(3) to receive any additional payments on a

replacement cost basis, you must com-

plete the actual repair or replacement of

the damaged part of the property within

two years after the date of loss, and notify

us within 30 days after the work has been

completed; and

(4) we will not pay for increased costs result-

ing from enforcement of any ordinance or

law regulating the construction, repair, or

demolition of a building structure or other

structure, except as provided under OP-

TIONAL POLICY PROVISIONS, Option

OL – Building Ordinance or Law.

b. Wood Fences: We will pay the actual cash

value for loss or damage to wood fences, not to

exceed the limit of liability shown in the Declara-

tions for COVERAGE A – Other Structures.

2. A2 – Replacement Cost Loss Settlement –

Common Construction.

a. We will pay the cost to repair or replace with

common construction and for the same use on

the premises shown in the Declarations, the

damaged part of the property covered under

SECTION I – PROPERTY COVERAGES,

COVERAGE A – DWELLING, except for wood

fences, subject to the following:

(1) we will pay only for repair or replacement

of the damaged part of the property with

common construction techniques and ma-

terials commonly used by the building

trades in standard new construction. We

will not pay the cost to repair or replace

obsolete, antique, or custom construction

with like kind and quality;

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(2) until actual repair or replacement is com-

pleted, we will pay only the actual cash

value of the damaged part of the property,

up to the applicable limit of liability shown

in the Declarations, not to exceed the

cost to repair or replace the damaged part

of the property as described in a.(1)

above;

(3) when the repair or replacement is actually

completed as described in a.(1) above, we

will pay the covered additional amount

you actually and necessarily spend to re-

pair or replace the damaged part of the

property, or an amount up to the applica-

ble limit of liability shown in the Declara-

tions, whichever is less;

(4) to receive any additional payments on a

replacement cost basis, you must com-

plete the actual repair or replacement of

the damaged part of the property within

two years after the date of loss, and notify

us within 30 days after the work has been

completed; and

(5) we will not pay for increased costs result-

ing from enforcement of any ordinance or

law regulating the construction, repair, or

demolition of a building structure or other

structure, except as provided under OP-

TIONAL POLICY PROVISIONS, Option

OL – Building Ordinance or Law.

b. Wood Fences: We will pay the actual cash

value for loss or damage to wood fences, not

to exceed the limit of liability shown in the Dec-

larations for COVERAGE A – Other Struc-

tures.

COVERAGE B – PERSONAL PROPERTY

1. B1 – Limited Replacement Cost Loss Settlement.

a. We will pay the cost to repair or replace property

covered under SECTION I – PROPERTY

COVERAGES, COVERAGE B – PERSONAL

PROPERTY, except for property listed in item

b. below, subject to the following:

(1) until repair or replacement is completed,

we will pay only the actual cash value of

the damaged property;

(2) after repair or replacement is completed,

we will pay the difference between the ac-

tual cash value and the cost you have

actually and necessarily spent to repair or

replace the property; and

(3) if property is not repaired or replaced with-

in two years after the date of loss, we will

pay only the actual cash value.

b. We will pay market value at the time of loss for:

(1) antiques, fine arts, paintings, statuary, and

similar articles which by their inherent na-

ture cannot be replaced with new articles;

(2) articles whose age or history contribute sub-

stantially to their value including, but not

limited to, memorabilia, souvenirs, and

collectors items; and

(3) property not useful for its intended pur-

pose.

However, we will not pay an amount exceeding the

smallest of the following for items a. and b. above:

(1) our cost to replace at the time of loss;

(2) the full cost of repair;

(3) any special limit of liability described in

this policy; or

(4) any applicable Coverage B limit of liability.

2. B2 – Depreciated Loss Settlement.

a. We will pay the actual cash value for property

covered under SECTION I – PROPERTY

COVERAGES, COVERAGE B – PERSONAL

PROPERTY, except for property listed in item

b. below.

b. We will pay market value at the time of loss for:

(1) antiques, fine arts, paintings, statuary, and

similar articles which by their inherent na-

ture cannot be replaced with new articles;

(2) articles whose age or history contribute

substantially to their value including, but

not limited to, memorabilia, souvenirs, and

collectors items; and

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(3) property not useful for its intended purpose.

However, we will not pay an amount exceeding the

smallest of the following for items a. and b. above:

(1) our cost to replace at the time of loss;

(2) the full cost of repair;

(3) any special limit of liability described in

this policy; or

(4) any applicable Coverage B limit of liability.

SECTION I – CONDITIONS

1. Insurable Interest and Limit of Liability. Even if

more than one person has an insurable interest in

the property covered, we will not be liable:

a. to the insured for an amount greater than the

insured’s interest; or

b. for more than the applicable limit of liability.

2. Your Duties After Loss. After a loss to which this

insurance may apply, you must cooperate with us in

the investigation of the claim and also see that the

following duties are performed:

a. give immediate notice to us or our agent and

also notify:

(1) the police if the loss is caused by theft,

vandalism, or any other criminal act; and

(2) the credit card company or bank if the loss

involves a credit card or bank fund trans-

fer card;

b. protect the property from further damage or

loss and also:

(1) make reasonable and necessary temporary

repairs required to protect the property; and

(2) keep an accurate record of repair expenses;

c. prepare an inventory of damaged or stolen per-

sonal property:

(1) showing in detail the quantity, description,

age, replacement cost, and amount of

loss; and

(2) attaching all bills, receipts, and related

documents that substantiate the figures in

the inventory;

d. as often as we reasonably require:

(1) exhibit the damaged property;

(2) provide us with any requested records and

documents and allow us to make copies;

(3) while not in the presence of any other insured:

(a) give statements; and

(b) submit to examinations under oath; and

(4) produce employees, members of the in-

sured’s household, or others for examina-

tion under oath to the extent it is within the

insured’s power to do so; and

e. submit to us, within 60 days after the loss,

your signed, sworn proof of loss that sets forth,

to the best of your knowledge and belief:

(1) the time and cause of loss;

(2) interest of the insured and all others in

the property involved and all encumbrances

on the property;

(3) other insurance that may cover the loss;

(4) changes in title or occupancy of the prop-

erty during the term of this policy;

(5) specifications of any damaged structure

and detailed estimates for repair of the

damage;

(6) an inventory of damaged or stolen per-

sonal property described in 2.c.;

(7) receipts for additional living expenses in-

curred and records supporting the fair

rental value loss; and

(8) evidence or affidavit supporting a claim

under SECTION I – ADDITIONAL COV-

ERAGES, Credit Card, Bank Fund

Transfer Card, Forgery, and Counterfeit

Money coverage, stating the amount and

cause of loss.

3. Loss to a Pair or Set. In case of loss to a pair or

set, we may choose to:

a. repair or replace any part to restore the pair or

set to its value before the loss; or

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b. pay the difference between the depreciated

value of the property before the loss and the

depreciated value of the property after the loss.

4. Appraisal. If you and we fail to agree on the

amount of loss, either party can demand that the

amount of the loss be set by appraisal. Only you or

we may demand appraisal. A demand for appraisal

must be in writing. You must comply with SEC-

TION I – CONDITIONS, Your Duties After Loss be-

fore making a demand for appraisal. At least 10 days

before demanding appraisal, the party seeking ap-

praisal must provide the other party with written,

itemized documentation of a specific dispute as to

the amount of the loss, identifying separately each

item being disputed.

a. Each party will select a competent, disinterested

appraiser and notify the other party of the ap-

praiser’s identity within 20 days of receipt of the

written demand for appraisal.

b. The appraisers will then attempt to set the

amount of the loss of each item in dispute as

specified by each party, and jointly submit to

each party a written report of agreement signed

by them. In all instances the written report of

agreement will be itemized and state separately

the actual cash value, replacement cost, and

if applicable, the market value of each item in

dispute.

The written report of agreement will set the

amount of the loss of each item in dispute.

c. If the two appraisers fail to agree upon the

amount of the loss within 30 days, unless the

period of time is extended by mutual agreement,

they will select a competent, disinterested umpire

and will submit their differences to the umpire.

If the appraisers are unable to agree upon an

umpire within 15 days:

(1) you or we may make a written application

for a judge of a court of record in the same

state and county (or city if the city is not

within a county) where the residence

premises is located to select an umpire;

(2) the party requesting the selection described

in item c.(1) must provide the other party:

(a) written notice of the intent to file,

identifying the specific location and

identity of the court at least 10 days

prior to submission of the written ap-

plication; and

(b) a copy of the written application; and

(3) a written report of agreement, as required

in item b., signed by any two (appraisers

or appraiser and umpire) will set the

amount of the loss of each item in dispute.

In all instances the written report of

agreement will be itemized and state sep-

arately the actual cash value, replace-

ment cost, and if applicable, the market

value of each item in dispute.

d. To qualify as an appraiser or umpire for a loss

to property described in COVERAGE A –

DWELLING, a person must be one of the fol-

lowing and be licensed or certified as required

by the applicable jurisdiction:

(1) an engineer or architect with experience

and training in building construction, re-

pair, estimating, or investigation of the

type of property damage in dispute;

(2) an adjuster or public adjuster with experi-

ence and training in estimating the type of

property damage in dispute; or

(3) a contractor with experience and training

in the construction, repair, and estimating

of the type of property damage in dispute.

e. A person may not serve as an appraiser or

umpire if that person, any employee of that

person, that person’s employer, or any em-

ployee of their employer:

(1) has performed services for either party

with respect to the claim at issue in the

appraisal; or

(2) has a financial interest in the outcome of

the claim at issue in the appraisal.

f. Each party will be responsible for the compen-

sation of their selected appraiser. Reasonable

expenses of the appraisal and the reasonable

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compensation of the umpire will be paid equally

by you and us.

g. You and we do not waive any rights by de-

manding or submitting to an appraisal, and re-

tain all contractual rights to determine if

coverage applies to each item in dispute.

h. Appraisal is only available to determine the

amount of the loss of each item in dispute. The

appraisers and the umpire have no authority to

decide:

(1) any other questions of fact;

(2) questions of law;

(3) questions of coverage;

(4) other contractual issues; or

(5) to conduct appraisal on a class-wide basis.

i. Appraisal is a non-judicial proceeding and does

not provide for or require arbitration. Neither

party will be awarded attorney fees. The ap-

praisal award may not be entered as a judg-

ment in a court.

j. A party may not demand appraisal after that

party brings suit or action against the other party

relating to the amount of loss.

5. Other Insurance. If a loss covered by this policy is

also covered by other insurance, we will pay only

our share of the loss. Our share is the proportion of

the loss that the applicable limit under this policy

bears to the total amount of insurance covering the loss.

6. Suit Against Us. No action will be brought against

us unless there has been full compliance with all of

the policy provisions. Any action by any party must

be started within one year after the date of loss or

damage. However, if the cause of loss or damage is

burglary, theft, larceny, robbery, forgery, fraud, van-

dalism, malicious mischief, confiscation, wrongful

conversion, disposal or concealment, the action

must be started within two years from the time the

cause of action accrues.

7. Our Option. We may repair or replace any part of

the property damaged or stolen with similar property.

Any property we pay for or replace becomes our

property.

8. Loss Payment. We will adjust all losses with you.

We will pay you unless some other person is named

in the policy or is legally entitled to receive payment.

Loss will be payable:

a. 60 days after we receive your proof of loss and:

(1) reach agreement with you; or

(2) there is a filing of an appraisal award with

us; or

b. 30 days after we receive your proof of loss and

there is an entry of a final judgment.

9. Abandonment of Property. We need not accept

any property abandoned by an insured.

10. Mortgagee Clause. The word “mortgagee” includes

trustee.

a. If a mortgagee is named in this policy, any loss

payable under Coverage A will be paid to the

mortgagee and you, as interests appear. If

more than one mortgagee is named, the order

of payment will be the same as the order of

precedence of the mortgages.

b. If we deny your claim, that denial will not apply

to a valid claim of the mortgagee, if the mort-

gagee:

(1) notifies us of any change in ownership,

occupancy, or substantial change in risk of

which the mortgagee is aware;

(2) pays on demand any premium due under this

policy, if you have not paid the premium; and

(3) submits a signed, sworn statement of loss

within 60 days after receiving notice from

us of your failure to do so. Policy condi-

tions relating to Appraisal, Suit Against

Us, and Loss Payment apply to the mort-

gagee.

c. If we cancel

this policy, the mortgagee will be

notified at least 10 days before the date cancel-

lation takes effect. Proof of mailing will be

proof of notice.

d. If we pay the mortgagee for any loss and deny

payment to you:

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(1) we are subrogated to all the rights of the

mortgagee granted under the mortgage on

the property; or

(2) at our option, we may pay to the mortga-

gee the whole principal on the mortgage

plus any accrued interest. In this event,

we will receive a full assignment and

transfer of the mortgage and all securities

held as collateral to the mortgage debt.

e. Subrogation does not impair the right of the

mortgagee to recover the full amount of the

mortgagee’s claim.

11. No Benefit to Bailee. We will not recognize an

assignment or grant coverage for the benefit of a

person or organization holding, storing, or transport-

ing property for a fee. This applies regardless of any

other provision of this policy.

12. Recovered Property. If either you or we recover

any property after loss settlement, that party must

give the other prompt notice. At your option, you

may keep the property or we will return it to you.

Otherwise, it will become our property. If you

choose to keep the property, the loss payment will

be adjusted based on the amount you received for

the recovered property.

13. Assignment of Claim. Assignment to another party

of any of your rights or duties under this policy re-

garding any claim, or any part of any claim, will be

void and we will not recognize any such assign-

ment, unless we give our written consent. However,

once you have complied with all policy provisions,

you may assign to another party, in writing, payment

of claim proceeds otherwise payable to you.

SECTION II – LIABILITY COVERAGES

COVERAGE L – PERSONAL LIABILITY

If a claim is made or a suit is brought against an insured

for damages because of bodily injury or property dam-

age to which this coverage applies, caused by an occur-

rence, we will:

1. pay up to our limit of liability for the damages for

which the insured is legally liable. We will not pay

for criminal restitution; and

2. provide a defense at our expense by counsel of our

choice. We may make any investigation and settle

any claim or suit that we decide is appropriate. Our

obligation to defend any suit ends when the amount

we pay for damages, to effect settlement or satisfy a

judgment resulting from the occurrence, equals our

limit of liability. We will not provide a defense to any

insured for criminal prosecution or proceedings.

COVERAGE M – MEDICAL PAYMENTS TO OTHERS

We will pay the necessary medical expenses incurred or

medically ascertained within three years from the date of

an accident causing bodily injury. Medical expenses

means reasonable charges for medical, surgical, x-ray,

dental, ambulance, hospital, professional nursing,

rehabilitation, pharmaceuticals, orthopedic devices,

prosthetic devices, and funeral services. This coverage

applies only:

1. to a person on the insured location with the per-

mission of an insured;

2. to a person off the insured location, if the bodily

injury:

a. arises out of a condition on the insured loca-

tion or the ways immediately adjoining;

b. is caused by the activities of an insured;

c. is caused by a residence employee in the

course of the residence employee’s employ-

ment by an insured; or

d. is caused by an animal owned by or in the care

of an insured; or

3. to a residence employee if the occurrence

caus-

ing bodily injury occurs off the insured location

and arises out of or in the course of the residence

employee’s employment by an insured.

SECTION II – ADDITIONAL COVERAGES

The following Additional Coverages are subject to all the

terms, provisions, exclusions, and conditions of this policy.

We will pay for the following in addition to the limits of

liability:

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1. Claim Expenses. We will pay:

a. expenses we incur and costs taxed against an

insured in suits we defend. Taxed costs do

not include attorney fees;

b. premiums on bonds required in suits we de-

fend, but not for bond amounts greater than the

Coverage L limit. We are not obligated to apply

for or furnish any bond;

c. reasonable expenses an insured incurs at our

request. This includes actual loss of earnings

(but not loss of other income) up to $250 per

day for aiding us in the investigation or defense

of claims or suits;

d. interest the insured is legally liable to pay on

damages payable under Coverage L above be-

fore a judgment, but only the interest on the

lesser of:

(1) that part of the damages we pay; or

(2) the Coverage L limit; and

e. interest on the entire judgment that accrues af-

ter entry of the judgment and before we pay or

tender, or deposit in court that part of the judg-

ment that does not exceed the limit of liability

that applies.

2. First Aid Expenses. We will pay expenses for first

aid to others incurred by an insured for bodily injury

covered under this policy. We will not pay for first

aid to you or any other insured.

3. Damage to Property of Others.

a. We will pay for property damage to property of

others caused by the activities of an insured.

b. We will not pay more than the smallest of the

following amounts:

(1) replacement cost at the time of loss;

(2) full cost of repair; or

(3) the limit of liability shown in the Declara-

tions for Damage to Property of Others

for any one occurrence.

c. We will not pay for property damage:

(1) for a loss that is recoverable under Sec-

tion I of this policy. We also will not pay

for any applicable deductible regardless of

whether the amount of the loss exceeds

the deductible;

(2) caused intentionally by an insured 13

years of age or older;

(3) to property, other than a rented golf cart,

owned by, or rented to an insured, a ten-

ant of an insured, or a resident in your

household;

(4) arising out of:

(a) business pursuits;

(b) any act or omission in connection with

a premises an insured owns, rents, or

controls, other than the insured

location;

or the ways immediately adjoining; or

(d) the ownership, maintenance, or use

of a motor vehicle, aircraft, or wa-

tercraft, including airboat, air cushion,

personal watercraft, sail board, or

similar type watercraft; or

(5) if a payment is made under COVERAGE

L – PERSONAL LIABILITY for the same

property damage.

SECTION II – EXCLUSIONS

1. Coverage L and Coverage M do not apply to:

a. bodily injury or property damage that:

(1) was a result of a:

(a) willful and malicious; or

(b) criminal;

act or omission of the insured;

(2) was intended by the insured; or

(3) would have been expected by the insured

based on a reasonable person standard.

However, exclusions a.(2) and a.(3) above do

not apply to bodily injury or property damage

resulting from the use of reasonable force to

protect persons or property.

25 HW-2136

©, Copyright, State Farm Mutual Automobile Insurance Company, 2017

Exclusions a.(1), a.(2), and a.(3) above apply to

all bodily injury or property damage even if

the:

(1) bodily injury or property damage was

sustained by a different person, entity, or

property than was expected or intended;

(2) bodily injury or property damage was of

a different kind, quality, or degree than

was expected or intended;

(3) insured lacked the mental capacity to

control his or her conduct;

(4) insured was not charged with or con-

victed of a criminal act or omission; or

(5) insured was impaired by drugs or alcohol;

b. bodily injury or property damage arising out

of business pursuits of any insured, except as

provided in item c. below. This exclusion does

not apply to activities that are ordinarily incident

to non-business pursuits;

c. bodily injury or property damage arising out

of the rental of any part of any premises by any

insured. This exclusion does not apply:

(1) to the rental of the residence premises:

(a) either completely or in part, for exclu-

sive use as a residence, for up to 30

nights in the 12-month period prior to

the date of the loss;

(b) in part, for use as a permanent resi-

dence, by either one or two full-time

roomers or boarders; or

private garage;

(2) when the dwelling on the residence

premises is a two, three, or four family

dwelling and you occupy one part and

rent the other part to others;

(3) to farm land (without buildings), rented to

others, but not to exceed a total of 500

acres, regardless of the number of loca-

tions; or

(4) to activities that are ordinarily incident to

non-business pursuits;

d. bodily injury or property damage arising out

of the rendering or failing to render professional

services;

e. bodily injury or property damage arising out

of any premises currently owned or rented to

any insured which is not an insured location.

This exclusion does not apply to bodily injury

to a residence employee arising out of and in

the course of the residence employee’s em-

ployment by an insured;

f. bodily injury or property damage arising out

of the ownership, maintenance, use, loading, or

unloading of:

(1) an aircraft. This exclusion does not apply

to the ownership, maintenance, use, load-

ing, or unloading of unmanned aircraft

systems used as model aircraft:

(a) solely for recreational or hobby pur-

poses;

(b) designed to be operated within the

visual line of sight of the operator and

operated within the visual line of sight

of the operator; and

the time of operation;

unless the ownership, maintenance, use,

loading, or unloading of such aircraft results in:

(a) property damage to any aircraft; or

(b) bodily injury or property damage

resulting from interference with an

aircraft carrying people regardless of

whether the bodily injury or prop-

erty damage is sustained by people

or property on the aircraft or not;

(2) a motor vehicle owned or operated by or

rented or loaned to any insured; or

(3) a watercraft:

(a) owned by or rented to any insured if

it has inboard or inboard-outdrive mo-

tor power of more than 50 horsepower;

(b) owned by or rented to any insured if

it is a sailing vessel, with or without

26 HW-2136

auxiliary power, 26 feet or more in

overall length;

motors with more than 25 total

horsepower owned by any insured;

(d) designated as an airboat, air cushion,

or similar type of craft; or

(e) owned by any insured if it is a per-

sonal watercraft using a water jet

pump powered by an internal com-

bustion engine as the primary source

of propulsion.

This exclusion does not apply to bodily injury

to a residence employee arising out of and in

the course of the residence employee’s em-

ployment by an insured. Exclusion f.(3) does

not apply while the watercraft is on the resi-

dence premises;

g. bodily injury or property damage arising out of:

(1) the entrustment by any insured to any

person;

(2) the supervision by any insured of any

person;

(3) any liability statutorily imposed on any in-

sured; or

(4) any liability assumed through an unwritten

or written agreement by any insured;

with regard to the ownership, maintenance, or

use of any aircraft, watercraft, or motor vehi-

cle not covered under Section II of this policy;

h. bodily injury or property damage caused di-

rectly or indirectly by war, including undeclared

war, or any warlike act including destruction,

seizure, or use for a military purpose, or any

consequence of these. Discharge of a nuclear

weapon will be considered a warlike act even if

accidental;

i. bodily injury to any insured within the mean-

ing of part 9.a., 9.b., or 9.c. of the definition of

insured.

This exclusion also applies to any claim made

or suit brought against any insured within the

meaning of part 9.a., 9.b., or 9.c. of the defini-

tion of insured to share damages with or repay

someone else who may be obligated to pay

damages because of the bodily injury sus-

tained by any insured within the meaning of

part 9.a., 9.b., or 9.c. of the definition of

in-

sured;

j. any claim made or suit brought against any in-

sured by:

(1) any person in the care of any insured be-

cause of child care services provided by

or at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured;

(2) any person who makes a claim because

of bodily injury to any person in the care

of any insured because of child care ser-

vices provided by or at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured.

This exclusion does not apply to the occasional

child care services provided by any insured, or

to the part-time child care services provided by

any insured under 19 years of age;

k. bodily injury or property damage arising out

of an insured’s participation in, or preparation

or practice for, any prearranged or organized

race, speed or demolition contest, or similar

competition involving a motorized land vehicle

or motorized watercraft. This exclusion does

not apply to a sailing vessel less than 26 feet in

overall length with or without auxiliary power;

l. bodily injury or property damage arising out

of the use, sale, manufacture, distribution, de-

livery, transfer, or possession, by any insured,

of any substance that is illegal or is a controlled

substance under either federal or state law.

27 HW-2136

This exclusion does not apply to the legitimate

use of legally prescribed drugs, under either

federal or state law, by a person following or-

ders of a licensed health care professional;

m. bodily injury or property damage arising out

of the actual, alleged, or threatened presence,

discharge, dispersal, seepage, migration, re-

lease, escape of, or exposure to contaminants

or pollutants at or from any source or location.

Contaminants and pollutants include but are not

limited to any solid, liquid, gaseous, or thermal irri-

tant, including smoke from agricultural smudging or

industrial operations, smog, soot, vapor, fumes, ac-

ids, alkalis, chemicals, pathogens, noxious sub-

stances, fuel oil, asbestos, or lead.

This exclusion does not apply to bodily injury

or property damage arising out of smoke or

fumes caused by fire or explosion.

We also do not cover:

(1) any loss, cost, or expense arising out of

any request, demand, order, or statutory

or regulatory requirement that any in-

sured or others test for, monitor, clean up,

remove, contain, treat, detoxify, neutralize,

remediate, dispose of, or in any way re-

spond to or assess the effects of contami-

nants or pollutants;

(2) any loss, cost, or expense arising out of

any claim or suit by or on behalf of a gov-

ernmental authority for damages because

of testing for, monitoring, cleaning up, re-

moving, containing, treating, detoxifying,

neutralizing, remediating, disposing of, or

in any way responding to or assessing the

effects of contaminants or pollutants; or

(3) contamination or pollution arising out of

actually or allegedly defective building ma-

terials, nuclear substances, or waste.

Waste includes materials to be recycled,

reconditioned, or reclaimed;

n. bodily injury or property damage arising out

of any actual, alleged, or threatened:

(1) sexual harassment, sexual molestation, or

sexual misconduct;

(2) physical or mental abuse; or

(3) corporal punishment;

by the insured;

o. bodily injury or property damage arising out

of the actual, alleged, or threatened inhalation

of, ingestion of, contact with, exposure to, ex-

istence of, or presence of any fungus at or

from any source or location.

We also do not cover any loss, cost, or ex-

pense arising out of any:

(1) request, demand, order, or statutory or

regulatory requirement that any insured

or others test for, monitor, clean up, re-

move, contain, treat, detoxify, neutralize,

remediate, dispose of, or in any way re-

spond to or assess the effects of fungus;

(2) claim or suit for damages because of test-

ing for, monitoring, cleaning up, removing,

containing, treating, detoxifying, neutraliz-

ing, remediating, disposing of, or in any

way responding to or assessing the ef-

fects of fungus; or

p. bodily injury or property damage

arising out

of the ownership, maintenance, or use of sys-

tems and equipment used to generate electrical

power exceeding 125 percent of the actual

electrical power usage by the residence prem-

ises in the 12-month period prior to the date of

the loss.

2. Coverage L does not apply to:

a. liability:

(1) for your share of any loss assessment

charged against all members of any type

of association of property owners; or

(2) imposed on or assumed by any insured

through any unwritten or written contract

or agreement. This exclusion does not

apply to liability for damages that the in-

sured would have in absence of the con-

tract or agreement;

b. property damage to property owned by any

insured at the time of the occurrence;

28 HW-2136

c. property damage to property rented to, used

or occupied by, or in the care, custody, or con-

trol of any insured at the time of the occur-

rence. This exclusion does not apply to

property damage caused by fire, smoke, ex-

plosion, or abrupt and accidental damage from

water;

d. bodily injury to a person eligible to receive

any benefits required to be provided or volun-

tarily provided by an insured under a workers’

compensation, non-occupational disability, or

occupational disease law;

e. bodily injury or property damage for which an

insured under this policy is also an insured under

a nuclear energy liability policy or would be an in-

sured but for its termination upon exhaustion of its

limit of liability. A nuclear energy liability policy is a

policy issued by Nuclear Energy Liability Insur-

ance Association, Mutual Atomic Energy Liability

Underwriters, Nuclear Insurance Association of

Canada, or any of their successors;

f. bodily injury or property damage arising out

of any real property any insured has sold or

transferred. This includes but is not limited to

bodily injury or property damage arising out

of known, unknown, hidden, or alleged property

conditions, problems, or defects.

This exclusion also applies to any property

damage to the sold or transferred real property

itself.

However, this exclusion does not apply to:

(1) bodily injury arising out of fire, smoke,

explosion, electrocution, or carbon monox-

ide poisoning; or

(2) property damage arising out of fire,

smoke, or explosion.

3. Coverage M does not apply to bodily injury:

a. to a residence employee if it occurs off the in-

sured location and does not arise out of or in

the course of the residence employee’s em-

ployment by an insured;

b. to a person eligible to receive any benefits re-

quired to be provided or voluntarily provided

under any workers’ compensation, non-

occupational disability, or occupational disease

law;

c. to a person other than a residence employee

of an insured, regularly residing on any part of

the insured location; or

d. from nuclear reaction, radiation, or radioactive

contamination, all whether controlled or uncon-

trolled or however caused, or any consequence

of any of these.

SECTION II – CONDITIONS

1. Limit of Liability. The Coverage L limit is shown in

the Declarations. This is the limit for all damages

from each occurrence for the policy period in which

the bodily injury or property damage first occurs,

regardless of the number of insureds, claims made,

or persons injured. No additional limits or coverage

will be available for the occurrence under any addi-

tional policy periods while this policy remains in

force.

The Coverage M limit is shown in the Declarations.

This is our limit for all medical expenses for bodily

injury to one person as the result of one accident.

2. Severability of Insurance. This insurance applies

separately to each insured. This condition does not

increase our limit of liability for any one occur-

rence.

3. Duties After Loss. In case of an accident or oc-

currence, the insured must cooperate with us in

the investigation, settlement, or defense of any

claim or suit and also perform the following duties

that apply. You must cooperate with us in seeing

that these duties are performed:

a. give written notice to us or our agent as soon

as possible, which sets forth:

(1) the identity of this policy and the insured;

(2) reasonably available information on the

time, place, and circumstances of the ac-

cident or occurrence; and

29 HW-2136

(3) names and addresses of any claimants

and available witnesses;

b. immediately forward to us every notice, demand,

summons, or other process relating to the acci-

dent or occurrence;

c. at our request, assist in:

(1) making settlement;

(2) the enforcement of any right of contribution

or indemnity against a person or organiza-

tion who may be liable to an insured;

(3) the conduct of suits and attend hearings

and trials; and

(4) securing and giving evidence and obtaining

the attendance of witnesses;

d. under SECTION II – ADDITIONAL COVER-

AGES, Damage to Property of Others, exhibit

the damaged property if within the insured’s

control; and

e. the insured must not, except at the insured’s

own cost, voluntarily make payments, assume

obligations, or incur expenses. This does not

apply to expense for first aid to others at the

time of the bodily injury.

4. Coverage M Requirements. We may require the

following in regard to any Coverage M claim:

a. written proof of claim, under oath if required, as

soon as possible from the injured person, or

when appropriate, someone acting on behalf of

that person;

b. the injured person’s submission to physical ex-

aminations by a physician selected by us when

and as often as we reasonably require; and

c. any authorizations from the injured person as

we may require.

5. Payment of Claim – Coverage M or Damage to

Property of Others. Payment under either of these

is not an admission of liability by an insured or us.

6. Suit Against Us. No action will be brought against

us unless there has been compliance with the policy

provisions.

No one will have the right to join us as a party to an

action against an insured. Further, no action with

respect to Coverage L will be brought against us

until the obligation of the insured has been deter-

mined by final judgment on the merits, after an ac-

tual trial or by an agreement signed by us; but we

will not be liable for damages that are not payable

under the terms of this policy or that are in excess of

the applicable Limit of Liability.

7. Bankruptcy of an Insured.

Bankruptcy or insolvency

of an insured will not relieve us of our obligation under

this policy.

8. Other Insurance – Coverage L. This insurance is

excess over any other valid and collectible insur-

ance except insurance written specifically to cover

as excess over the limits of liability that apply in this

policy.

SECTION I AND SECTION II – CONDITIONS

1. Policy Period. This policy applies only to loss un-

der Section I or bodily injury or property damage

under Section II that occurs during the period this

policy is in effect.

2. Concealment or Fraud. This policy is void as to you

and any other insured if you or any other insured un-

der this policy has intentionally concealed or misrepre-

sented any material fact or circumstance relating to this

insurance, whether before or after a loss.

3. Liberalization Clause. If we adopt any revision

that would broaden coverage under this policy with-

out additional premium, within 60 days prior to or

during the period this policy is in effect, the broad-

ened coverage will immediately apply to this policy.

4. Waiver or Change of Policy Provisions. A waiver

or change of any provision of this policy must be in

writing by us to be valid. Our request for an ap-

praisal or examination does not waive any of our

rights.

5. Cancellation.

a. You may cancel this policy at any time by giving

us advance written notice of the date cancellation

is to take effect. We may waive the requirement

30 HW-2136

that the notice be in writing by confirming the

date and time of cancellation to you in writing.

b. We may cancel this policy only for the reasons

stated in this condition. We will notify you in

writing of the date cancellation takes effect.

This cancellation notice may be delivered to

you, or mailed to you at your mailing address

shown in the Declarations. Proof of mailing

will be sufficient proof of notice:

(1) When you have not paid the premium, we

may cancel at any time by notifying you at

least 10 days before the date cancellation

takes effect. This condition applies whether

the premium is payable to us or our agent

or under any finance or credit plan.

(2) When this policy has been in effect for

less than 45 business days and is not a

renewal with us, we may cancel for any

reason. We may cancel by notifying you

at least 10 days before the date cancella-

tion takes effect.

(3) When this policy has been in effect for 45

business days or more, or at any time if it

is a renewal with us, we may cancel for

the following reasons:

(a) discovery of fraud or material misrep-

resentation in the procurement of the

insurance or with respect to any

claims submitted thereunder;

(b) discovery of willful or reckless acts or

omissions on the part of the named

insured which increase any hazard

insured against;

tially increases any hazard insured

against after insurance coverage has

been issued or renewed;

(d) violation of any local fire, health,

safety, building, or construction regu-

lation or ordinance with respect to

any insured property or the occupancy

thereof which substantially increases

any hazard insured against;

(e) a determination by the Insurance

Commissioner that the continuation

of the policy would place the insurer

in violation of the insurance laws of

this state; or

(f) conviction of the named insured of a

crime having as one of its necessary

elements an act increasing any haz-

ard insured against.

We may cancel this policy by notifying

you at least 30 days before the date can-

cellation takes effect.

(4) When this policy is written for a period

longer than one year, we may cancel for

any reason at anniversary. We may can-

cel by notifying you at least 30 days be-

fore the date cancellation takes effect.

c. When this policy is cancelled, the premium for

the period from the date of cancellation to the

expiration date will be refunded. The return

premium will be pro rata.

d. The return premium may not be refunded with

the notice of cancellation or when this policy is

returned to us. In such cases, we will refund it

within a reasonable time after the date cancel-

lation takes effect.

6. Nonrenewal. We may elect not to renew this policy.

If we elect not to renew, a written notice will be de-

livered to you, or mailed to you at your mailing ad-

dress shown in the Declarations. The notice will be

mailed or delivered at least 30 days before the expi-

ration date of this policy. Proof of mailing will be suf-

ficient proof of notice.

7. Assignment of Policy. Assignment of this policy

will be void and we will not recognize any such as-

signment, unless we give our written consent.

8. Subrogation and Reimbursement.

a. Subrogation.

(1) Applicable to SECTION I:

If any insured to or for whom we make

payment under this policy has rights to re-

cover damages from another, those rights

are transferred to us to the extent of our

payment. That insured must do every-

thing necessary to secure our rights and

must do nothing after loss to impair them.

31 HW-2136

However before a loss, an insured may

waive in writing all rights of recovery

against any person.

(2) Applicable to SECTION II:

If any insured has rights to recover all or

part of any payment we have made under

this policy, those rights are transferred to

us. An insured must do nothing after loss

to impair them. At our request, an in-

sured will bring suit or transfer those

rights to us and help us enforce them.

Subrogation does not apply under Section II to

Medical Payments to Others or Damage to

Property of Others.

b. Reimbursement.

If we make payment under this policy and any

insured to or for whom we make payment re-

covers or has recovered from another person

or organization, then the insured to or for

whom we make payment must:

(1) hold in trust for us the proceeds of any re-

covery; and

(2) reimburse us to the extent of our payment.

9. Death. If you die:

a. we insure the legal representative of the de-

ceased. This condition applies only with re-

spect to the premises and property of the

deceased covered under this policy at the time

of death;

b. insured includes:

(1) any member of your household who is an

insured at the time of your death, but only

while a resident of the residence prem-

ises; and

(2) with respect to your property, the person

having proper temporary custody of the

property until appointment and qualifica-

tion of a legal representative.

10. Conformity to State Law. When a policy provision

is in conflict with the applicable law of the state in

which this policy is issued, the law of the state will

apply.

11. Premium.

a. Unless as otherwise provided by an alternative

payment plan in effect with the State Farm

Companies with respect to the premium for

this policy, the premium is due and payable

in full on or before the first day of the policy

period shown in the most recently issued Dec-

larations.

b. The renewal premium for this policy will be

based upon the rates in effect, the coverages

carried, the applicable limits, deductibles, and

other elements that affect the premium appli-

cable at the time of renewal.

c. The premium for this policy may vary based

upon:

(1) the purchase of other products or services

from the State Farm Companies;

(2) the purchase of products or services from

an organization that has entered into an

agreement or contract with the State

Farm Companies. The State Farm

Companies do not warrant the merchant-

ability, fitness, or quality of any product or

service offered or provided by that organi-

zation; or

(3) an agreement, concerning the insurance

provided by this policy, that the State

Farm Companies has with an organization

of which you are a member, employee,

subscriber, licensee, or franchisee.

d. Your purchase of this policy may allow:

(1) you to purchase or obtain certain coverages,

coverage options, coverage deductibles,

coverage limits, or coverage terms on

other products from the State Farm

Companies, subject to their applicable el-

igibility rules; or

(2) the premium or price for other products or

services purchased by you, including non-

insurance products or services, to vary.

Such other products or services must be

provided by the State Farm Companies

or by an organization that has entered into

an agreement or contract with the State

32 HW-2136

Farm Companies. The State Farm Com-

panies do not warrant the merchantability,

fitness, or quality of any product or service

offered or provided by that organization.

12. Right to Inspect.

a. We have the right but are not obligated to per-

form the following:

(1) make inspections and surveys of the in-

sured location at any time;

(2) provide you with reports on conditions we

find; or

(3) recommend changes.

Any inspections, surveys, reports, or recom-

mendations relate only to insurability and the

premiums to be charged.

b. We do not:

(1) make safety inspections;

(2) undertake to perform the duty of any per-

son or organization to provide for the

health or safety of workers or the public;

(3) warrant that conditions are safe or health-

ful; or

(4) warrant that conditions comply with laws,

regulations, codes, or standards.

This condition applies to us and to any rating, advi-

sory, rate service, or similar organization that makes

insurance inspections, surveys, reports, or recom-

mendations on our behalf.

13. Joint and Individual Interests. When there are

two or more Named Insureds, each acts for all to

cancel or change this policy.

14. Change of Policy Address. We may change the

Named Insured’s policy address as shown in the

Declarations and in our records to the most recent

address provided to us by:

a. you; or

b. the United States Postal Service.

15. Electronic Delivery. With your consent, we may

electronically deliver any document or notice, includ-

ing a notice to renew, nonrenew, or cancel, instead

of mailing it or delivering it by other means. Proof of

transmission will be sufficient proof of notice.

16. Our Rights Regarding Claim Information.

a. We will collect, receive, obtain, use, and retain

all the items described in item b.(1) below and

use and retain the information described in item

b.(3)(b) below, in accordance with applicable

federal and state laws and regulations and

consistent with the performance of our busi-

ness functions.

b. Subject to 16.a. above, we will not be restricted

in or prohibited from:

(1) collecting, receiving, or obtaining records,

receipts, invoices, medical bills, medical

records, wage information, salary infor-

mation, employment information, data,

and any other information;

(2) using any of the items described in item

b.(1) above; or

(3) retaining:

(a) any of the items in item b.(1) above;

(b) any other information we have in our

possession as a result of our pro-

cessing, handling, or otherwise re-

solving claims submitted under this

policy.

c. We may disclose any of the items in b.(1)

above and any of the information described in

item b.(3)(b) above:

(1) to enable performance of our business

functions;

(2) to meet our reporting obligations to insur-

ance regulators;

(3) to meet our reporting obligations to insur-

ance data consolidators;

(4) to meet other obligations required by law;

and

(5) as otherwise permitted by law.

d. Our rights under 16.a., 16.b., and 16.c. above

will not be impaired by any:

33 HW-2136

(1) authorization related to any claim submit-

ted under this policy; or

(2) act or omission of an insured or a legal

representative acting on an insured’s be-

half.

17. Duties Regarding Claim Information. An insured

or a legal representative acting on an insured’s behalf

must provide us with any requested authorizations

related to the claim. Our rights as set forth under

Our Rights Regarding Claim Information of this

policy will not be impaired by any:

a. authorization related to the claim; or

b. act or omission of an insured or a legal repre-

sentative acting on an insured’s behalf.

OPTIONAL POLICY PROVISIONS

Each Optional Policy Provision applies only as shown in

the Declarations and is subject to all the terms, provi-

sions, exclusions, and conditions of this policy.

Option AI – Additional Insured. The definition of in-

sured is extended to include the person or organization

shown in the Declarations as an Additional Insured or

whose name is on file with us. Coverage is with respect

to:

1. SECTION I – Coverage A, Coverage B, or Cover-

age C; or

2. SECTION II – Coverage L and Coverage M but

only with respect to the residence premises. This

coverage does not apply to bodily injury to an em-

ployee arising out of or in the course of the employ-

ee’s employment by the person or organization.

This option applies only with respect to the location

shown in the Declarations.

Option BP – Business Property. The COVERAGE B –

PERSONAL PROPERTY, Special Limits of Liability,

item b., for property used or intended for use in a busi-

ness, including merchandise held as samples or for sale

or for delivery after sale, is changed as follows:

The $1,500 limit is replaced with the amount shown

in the Declarations for this option.

Option BU – Business Pursuits. SECTION II – EX-

CLUSIONS, item 1.b. is modified as follows:

1. Section II coverage applies to the business pursuits

of an insured who is a:

a. clerical office employee, salesperson, collector,

messenger; or

b. teacher (except college, university, and profes-

sional athletic coaches), school principal, or

school administrator;

while acting within the scope of the above listed

occupations.

2. However, no coverage is provided:

a. for bodily injury or property damage arising

out of a business owned or financially con-

trolled by the insured or by a partnership of

which the insured is a partner or member;

b. for bodily injury or property damage aris-

ing out of the rendering of or failure to render

professional services of any nature (other than

teaching or school administration). This exclu-

sion includes but is not limited to:

(1) computer programming, architectural,

engineering, or industrial design services;

(2) medical, surgical, dental, or other services

or treatment conducive to the health of

persons or animals; and

(3) beauty or barber services or treatment;

c. for bodily injury to a fellow employee of the

insured injured in the course of employment;

d. when the insured is a member of the faculty or

teaching staff of a school or college:

(1) for bodily injury or property damage

arising out of the maintenance, use, load-

ing, or unloading of:

(a) draft or saddle animals, including ve-

hicles for use with them; or

(b) aircraft, motor vehicles, recreational

motor vehicles or watercraft, air-

boats, air cushions, or personal wa-

tercraft which use a water jet pump

34 HW-2136

engine as the primary source of pro-

pulsion;

owned, operated, or hired by or for the in-

sured or employer of the insured or used

by the insured for the purpose of instruc-

tion in the use thereof; or

(2) under Coverage M for bodily injury to a

student arising out of corporal punishment

administered by or at the direction of the

insured.

Option FA – Firearms. Firearms are covered for acci-

dental direct physical loss or damage.

The limits for this option are shown in the Declarations.

The first amount is the limit for any one article; the sec-

ond amount is the aggregate limit for each loss.

The following additional provisions apply:

1. We will not pay for any loss to the property de-

scribed in this option either consisting of, or directly

and immediately caused by, one or more of the

following:

a. mechanical breakdown, wear and tear, or

gradual deterioration;

b. all animals, birds, or insects, including nesting,

infestation, gnawing, feeding, breeding, or dis-

charge or release of waste products or secre-

tions by animals, birds, or insects. However,

we will pay for losses caused by wild bears or

deer;

c. any process of refinishing, renovating, or repairing;

d. dampness of atmosphere or extremes of tem-

peratures;

e. inherent defect or faulty manufacture;

f. rust, fouling, or explosion of firearms;

g. breakage, marring, scratching, tearing, or denting

unless caused by fire, thieves, or accidents to

conveyances; or

h. infidelity of an insured’s employees or persons

to whom the insured property may be entrusted

or rented;

2. Our limit for loss by any Coverage B peril except

theft is the limit shown in the Declarations for Cov-

erage B, plus the aggregate limit;

3. Our limits for loss by theft are those shown in the

Declarations for this option. These limits apply in

lieu of the Coverage B theft limit; and

4. Our limits for loss by any covered peril except those

in items 2. and 3. above are those shown in the

Declarations for this option.

Option ID – Increased Dwelling Limit. We will settle

losses to damaged building structures covered under

COVERAGE A – DWELLING according to the Loss

Settlement Provision shown in the Declarations.

If the amount you actually and necessarily spend to re-

pair or replace damaged building structures

exceeds

the applicable limit of liability shown in the Declarations,

we will pay the additional amounts not to exceed:

1. the Option ID limit of liability shown in the Declara-

tions to repair or replace the dwelling; or

2. 10% of the Option ID limit of liability to repair or

replace building structures covered under

COVERAGE A – DWELLING, Other Structures.

Report Increased Values. You must notify us within 90

days of the start of construction on any new building

structure costing $5,000 or more; or any additions to or

remodeling of building structures that increase their

values by $5,000 or more. You must pay any additional

premium due for the increased value. We will not pay

more than the applicable limit of liability shown in the

Declarations if you fail to notify us of the increased

value within 90 days.

Option IO – Incidental Business. The coverage pro-

vided by this option applies only to that incidental busi-

ness occupancy on file with us.

1. COVERAGE A – DWELLING, Other Structures,

item 2.b. is deleted.

2. COVERAGE B – PERSONAL PROPERTY is extended

to include equipment, supplies, and furnishings usual

and incidental to this business occupancy. This

Optional Policy Provision does not include electronic

data processing system equipment or the recording or

storage media used with that equipment or merchan-

dise held as samples or for sale or for delivery after

sale.

The Option IO limits are shown in the Declarations.

The first limit applies to property on the residence

premises. The second limit applies to property

35 HW-2136

while off the residence premises. These limits are

in addition to the COVERAGE B – PERSONAL

PROPERTY, Special Limits of Liability on property

used or intended for use in a business.

3. Under Section II, the residence premises is not

considered business property because an insured

occupies a part of it as an incidental business.

4. SECTION II – EXCLUSIONS, item 1.b. is replaced

with the following:

b. bodily injury or property damage arising

out of business pursuits of any insured,

except as provided in item c. below. This

exclusion does not apply to activities that

are ordinarily incident to non-business

pursuits or to business pursuits of an in-

sured that are necessary or incidental to

the use of the residence premises as an

incidental business;

5. This insurance does not apply to:

a. bodily injury to an employee of an insured

arising out of the residence premises as an

incidental business other than to a residence

employee while engaged in the employee’s

employment by an insured;

b. bodily injury to a student arising out of corporal

punishment administered by or at the direction

of the insured;

c. liability arising out of any acts, errors, or omis-

sions of an insured, or any other person for

whose acts an insured is liable, resulting from

the preparation or approval of data, plans, de-

signs, opinions, reports, programs, specifica-

tions, supervisory inspections, or engineering

services in the conduct of an insured’s incidental

business involving data processing, computer

consulting, or computer programming; or

d. any claim made or suit brought against any in-

sured by:

(1) any person in the care of any insured

because of child care services provided

by or at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured;

(2) any person who makes a claim because

of bodily injury to any person in the care

of any insured because of child care ser-

vices provided by or at the direction of:

(a) any insured;

(b) any employee of any insured; or

ently acting on behalf of any insured.

Coverage M does not apply to any person indi-

cated in d.(1) and d.(2) above.

This exclusion does not apply to the occasional

child care services provided by any insured, or

to the part-time child care services provided by

any insured under 19 years of age.

Option JF – Jewelry and Furs. Jewelry, watches, fur

garments and garments trimmed with fur, precious and

semi-precious stones, gold other than goldware, silver

other than silverware, and platinum are covered for acci-

dental direct physical loss or damage.

The limits for this option are shown in the Declarations.

The first amount is the limit for any one article; the

second amount is the aggregate limit for each loss. All

provisions and exclusions of SECTION I – LOSSES IN-

SURED, COVERAGE B – PERSONAL PROPERTY,

Theft apply to Option JF.

The following additional provisions apply:

1. We will not pay for any loss to the property described in

this option either consisting of, or directly and immedi-

ately caused by, one or more of the following:

a. mechanical breakdown, wear and tear, or

gradual deterioration;

b. all animals, birds or insects, including nesting,

infestation, gnawing, feeding, breeding, or dis-

charge or release of waste products or secre-

tions by animals, birds, or insects. However, we

will pay for losses caused by wild bears or deer;

c. inherent vice; or

d. seizure or destruction under quarantine or cus-

toms regulations;

36 HW-2136

2. Our limit for loss by any Coverage B peril except

theft is the limit shown in the Declarations for Cov-

erage B, plus the aggregate limit;

3. Our limits for loss by theft are those shown in the

Declarations for this option. These limits apply in

lieu of the Coverage B theft limit; and

4. Our limits for loss by any covered peril except those

in items 2. and 3. above are those shown in the

Declarations for this option.

Option OL – Building Ordinance or Law.

1. Coverage Provided. The total limit of insurance

provided by this option will not exceed an amount

equal to the Option OL percentage shown in the

Declarations of the Coverage A limit shown in the

Declarations at the time of the loss, as adjusted by

the Inflation Coverage provisions of this policy. This

is an additional amount of insurance and applies to

building structures on the residence premises.

2. Damaged Portions of Building Structure. When

a building structure covered under COVERAGE

A – DWELLING is damaged by a loss insured, we

will pay for the increased cost to repair or rebuild the

physically damaged portion of the building struc-

ture caused by the enforcement of a building, zon-

ing, or land use ordinance or law if the enforcement

is directly caused by the same loss insured and the

requirement is in effect at the time the loss insured

occurs.

3. Undamaged Portions of Damaged Building

Structure. When a building structure covered

under COVERAGE A – DWELLING is damaged by

a loss insured, we will also pay for:

a. the cost to demolish and clear the site of the

undamaged portions of the building structure

caused by the enforcement of a building, zoning,

or land use ordinance or law if the enforcement

is directly caused by the same loss insured

and the requirement is in effect at the time the

loss insured occurs; and

b. loss to the undamaged portion of the building

structure

caused by enforcement of any ordi-

nance or law if:

(1) the enforcement is directly caused by the

same loss insured;

(2) the enforcement requires the demolition of

portions of the same building structure

not damaged by the same loss insured;

(3) the ordinance or law regulates the construc-

tion or repair of the building structure, or

establishes zoning or land use requirements

at the described premises; and

(4) the ordinance or law is in force at the time

of the occurrence of the same loss in-

sured; or

c. legally required changes to the undamaged

portion of the building structure caused by

the enforcement of a building, zoning, or land

use ordinance or law, if:

(1) the enforcement is directly caused by the

same loss insured;

(2) the requirement is in effect at the time the

loss insured occurs; and

(3) the legally required changes are made

to the undamaged portions of specific

building structure features, systems, or

components that have been physically

damaged by the loss insured.

We will not pay for legally required changes to

specific building structure features, systems,

or components that have not been physically

damaged by the loss insured.

4. Building Ordinance or Law Coverage Limitations.

a. We will not pay for any increased cost of con-

struction:

(1) until the building structure is actually re-

paired or replaced at the same or another

premises in the same general vicinity;

(2) unless the repairs or replacement are

made as soon as reasonably possible af-

ter the loss, not to exceed two years; and

(3) due to any original or subsequent construc-

tion, addition, modification, renovation,

remodel, or repair to a building structure

that did not comply with a building, zoning, or

land use ordinance or law in effect when the

construction, addition, modification, renova-

tion, remodel, or repair was performed.

37 HW-2136

b. We will not pay more under this coverage than

the amount you actually spend:

(1) for the increased cost to repair or rebuild

the building structure at the same or an-

other premises in the same general vicinity

if relocation is required by ordinance or

law; and

(2) to demolish and clear the site of the un-

damaged portions of the building struc-

ture caused by enforcement of building,

zoning, or land use ordinance or law.

We will not pay for more than a building structure

of the same height, floor area, and style on the

same or similar premises as the building structure,

subject to the limit provided in paragraph 1. Cover-

age Provided of this option.

Option SG – Silverware and Goldware Theft. The

COVERAGE B – PERSONAL PROPERTY, Special

Limits of Liability, item i., for theft of silverware and

goldware is increased to be the amount shown in the

Declarations for this option.