Administrative Code

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Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau of Insurance
Chapter 340. Rules Governing Standards for the Content of Fire Insurance or Fire Insurance in Combination with Other Coverages
8/11/2020

14VAC5-340-150:3. Exhibit 3. Minimum Standards of Content for a Dwelling Building(S) and Contents - Special Form

Insurance attaches only to those items specifically described in this policy for which a specific amount is shown and, unless otherwise provided, all provisions of this form and of the policy of which it is made a part shall apply separately to each item covered.

No insurance shall apply hereunder if the described dwelling is SEASONAL, unless it is so described in this policy.

DESCRIPTION OF PROPERTY AND INTERESTS COVERED

COVERAGE A - DWELLING

When the insurance under this policy covers a dwelling, such insurance shall include additions in contact therewith; also, if the property of the owner of the described dwelling and when not otherwise covered fixtures of the building pertaining to the service of the described premises and while located thereon; (NOTE: Fixtures of the building include but are not limited to wells, plumbing systems, pumps, air conditioning equipment, systems and their component parts (except window units), furnaces, hot water heaters, lighting systems including fixtures, and appliances which are actually built into the structure whose removal would result in defacement or disfigurement of the building); also, materials and supplies located on the described premises or adjacent there to, intended for use in construction, alteration or repair of such dwelling.

Unless the occupancy is otherwise described on the first page of this policy or by endorsement thereto, "dwelling" shall mean a building occupied principally for dwelling purposes by the number of families stated in this policy, but in no event more than four families.

COVERAGE B - APPURTENANT STRUCTURES

When the insurance under this policy covers structures, such insurance shall cover structures appertaining to the described premises and located thereon, including structures used exclusively for private garage purposes. This coverage also includes materials and supplies located on the described premises or adjacent thereto, intended for use in the construction, alteration or repair of such structures.

Coverage B shall not apply to structures used in whole or in part for commercial, manufacturing or farming purposes or to the described dwelling and additions in contact therewith.

This coverage shall not apply to structures (other than structures used exclusively for private garage purposes) which are rented or leased in whole or in part, or held for such rental or lease, to other than a tenant of the described dwelling.

COVERAGE C - HOUSEHOLD AND PERSONAL PROPERTY

When the insurance under this policy covers household and personal property, such insurance shall cover household and personal property belonging to the insured or members of the insured's family of the same household, and such property for which the insured may be liable and, at the option of the insured, such property belonging to a servant or guest of the insured; all while on the described premises.

If, during the term of this policy, the insured removes household or personal property covered under Coverage C from the described premises to another location within this Commonwealth and occupied in whole or in part as the insured's residence, the amount of insurance for Coverage C shall apply at each location in the proportion that the value at each location bears to the total value of all such property covered under Coverage C.

Property in transit shall be subject to the limit of liability for household and personal property away from the premises.

This coverage shall apply only for a period of 30 days from the date removal commences and then cease.

This coverage excludes:

1. Animals, birds or fish;

2. Aircraft and parts;

3. Motorized land vehicles, including motorized bicycles, except such vehicles pertaining to the service of the premises and not licensed for road use;

4. Boats other than rowboats and canoes;

5. Accounts, bills, currency, deeds, evidences of debt, money, securities, bullion or manuscripts;

6. Property of roomers and boarders not related to the insured;

7. Business property in storage or held as samples or for sale or for delivery after sale;

8. Property rented or held for rental to others by the insured, except property contained in that portion of the described premises customarily occupied exclusively by the insured and occasionally rented to others or property of the insured in that portion of the described dwelling occupied by roomers and boarders;

9. Business property while away from the described premises;

10. Any device or instrument, including any accessories or antennas, for the transmitting, recording, receiving or reproduction of sound which is used with a motor vehicle and obtains power for operation from the electrical system of the motor vehicle, or any tape, wire, record disc or other medium for use with any such device or instrument while any of said property is in or upon a motor vehicle; or

11. Property which is separately described and specifically insured in whole or in part by this or any other insurance.

Special Limits of Liability. Under Coverage C, this Company shall not be liable for loss in any one occurrence with respect to the following property for more than:

1. $100 in the aggregate on numismatic property, bank notes, gold, platinum, and silver;

2. $500 in the aggregate on letters of credit, notes other than bank notes, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,000 in the aggregate on trailers (whether licensed or not) used with watercraft and watercraft furnishings, equipment and outboard motors;

4. $500 on trailers and campers, not otherwise provided for, whether licensed or not; or

5. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns.

COVERAGE D - RENTAL VALUE

When the insurance under this policy covers rental value, such insurance shall cover the fair rental value of the building or parts thereof, as furnished and equipped by the owner whether rented or not. Loss of rental value shall be computed for the period of time, following damage to or destruction of the building or equipment therein or on the described premises (caused by a peril insured against) which would be required with the exercise of due diligence and dispatch, and not limited by the termination date of this policy, to restore the property to a tenantable condition, less such charges and expenses as do not continue.

Under Coverage D this policy covers rental value during a period of time, not exceeding two weeks, while access to the described premises is prohibited by order of civil authority, provided such order is given as a direct result of damage to adjacent premises by any peril insured against.

COVERAGE E - ADDITIONAL LIVING EXPENSE

When the insurance under this policy covers additional living expense, such insurance shall cover the necessary increase in living expense incurred by the insured in order to continue as nearly as practicable the normal standard of living of the insured's household for the applicable period described in 1 or 2 whichever is the lesser, and not limited by the expiration date of this policy:

1. The time required, with the exercise of due diligence and dispatch, to repair or replace the damaged or destroyed property;

2. The time required for the insured's household to become settled in any permanent quarters.

Under Coverage E:

1. This Company shall be liable during the period of time, not exceeding two weeks, while access to the described premises is prohibited by order of civil authority, provided such order is given as a direct result of damage to neighboring premises by any peril insured against.

2. This Company shall not be liable for loss due to the cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This insurance covers expense incurred in the removal of debris of the property covered hereunder, which may be occasioned by loss caused by any of the perils insured against in this policy. The total liability under this policy for both loss to property and debris removal expense shall not exceed the amount of insurance applying under this policy to the property covered.

In the event the insured elects to apply the following Additional Coverages, this Company shall not be liable for a greater proportion of any loss than would have been the case if all policies covering the described property had contained identical provisions and the same election were made under all policies. The amounts of insurance applicable to the following Additional Coverages 2 through 4 shall constitute additional amounts of insurance; the amount(s) of insurance applicable to the following Additional Coverages 5 and 6 shall not constitute additional amounts of insurance.

2. Appurtenant Structures. The insured may apply up to 10% of the amount of insurance applicable to the dwelling covered under this policy to cover loss to structures as defined in Coverage B.

3. Improvements, Alterations and Additions. The insured, if not the owner of the described premises, may apply up to 10% of the amount of insurance applicable to Coverage C to cover loss to improvements, alterations and additions to the described dwelling and to structures as defined in Coverage B.

4. Rental Value and Additional Living Expense. The insured may apply up to 10% of the amount of insurance applicable under Coverage A to cover loss of both rental value, as described in Coverage D, with respect to any portion of the described buildings not occupied by the insured, and additional living expense, as defined in Coverage E, with respect to any portion of the described buildings occupied by the insured, but not to exceed said 10% for both rental value and additional living expense in the aggregate. This coverage shall not apply to loss resulting from damage to or destruction of buildings or structures used in whole or in part for commercial, manufacturing or farming purposes, or structures (other than structures used exclusively for private garage purposes) which are rented or leased in whole or in part, or held for such rental or lease, to other than a tenant of the described dwelling.

5. Away Prom Premises Coverage. The insured may apply up to 10% of the amount of insurance applicable to Coverage C to cover loss to property, as defined in Coverage C (except rowboats and canoes), belonging to the insured or members of the insured's family of the same household, while elsewhere than on the described premises but within the limits of the United States of America and Canada.

6. Trees, Shrubs, Plants and Lawns. The insured may apply up to 5.0% of the amount of insurance applicable to the principal dwelling item under this policy to cover loss to trees, shrubs, plants and lawns on the described premises (except those grown for commercial purposes) by fire, lightning, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles (except vehicles owned or operated by an insured or any tenant of the described premises), collapse of a building, and vandalism and malicious mischief, including damage during a burglary or attempted burglary, but not theft of property. This Company shall not be liable for more than its proportion of $250 on any one tree, shrub, or plant including expense incurred for removing debris thereof.

7. Reasonable Repairs. Permission is granted for the insured, in the event of loss hereunder, to make reasonable repairs, temporary or permanent, provided such repairs are confined solely to the protection of the property from further damage and provided further that the insured shall keep an accurate record of such repair expenditures. The cost of any such repairs directly attributable to damage by any peril insured against shall be included in determining the amount of loss hereunder. Nothing herein contained is intended to modify the policy requirements applicable in case loss occurs.

LOSS DEDUCTIBLE CLAUSE

With respect to loss covered under this policy, this Company shall be liable only when such loss in each occurrence exceeds the deductible shown on the Declarations and then only for the amount of such excess. However, if this policy covers more than one dwelling this deductible shall apply separately to the amount of loss to each dwelling including property appertaining thereto covered hereunder. This deductible does not apply to rental value or additional living expense coverages.

PERILS INSURED AGAINST

This policy insures under:

Coverage A and Coverage B against all risks of physical loss to the property covered (and under Coverage D and Coverage E resulting from such loss), except as otherwise excluded or limited.

Coverage C against direct loss to the property covered by the following perils as defined and limited, except as otherwise excluded:

1. Fire or lightning.

2. Wind storm or hail, excluding loss:

a. To the interior of the building, or the property covered therein caused by rain, snow, sand or dust, all whether driven by wind or not, unless the building covered or containing the property covered shall first sustain an actual damage to roof or walls by the direct force of wind or hail and then this Company shall be liable for loss to the interior of the building or the property covered therein as may be caused by rain, snow, sand or dust, entering the building through openings in the roof or walls made by direct action of wind or hail; or

b. To outdoor radio and television antennas and aerials including their lead-in wiring, masts or towers, or to lawns, trees, shrubs or plants.

3. Explosion.

4. Riot, riot attending a strike or civil commotion, including direct loss from pillage and looting occurring during and at the immediate place of a riot or civil commotion.

5. Aircraft, including self-propelled missiles and spacecraft.

6. Vehicles.

7. Sudden and accidental damage from smoke, other than smoke from agricultural smudging or industrial operations.

8. Vandalism or malicious mischief, meaning only the wilful and malicious damage to or destruction of the property covered.

9. Burglars, except with respect to property taken by burglars.

10. Falling objects, but excluding loss to:

a. Property within a building unless the building containing the property covered shall first sustain an actual damage to the exterior of the roof or wall. by the falling object; and

b. Damage to the falling object itself.

11. Weight of ice, snow or sleet, but only with respect to property contained in a building and then only if the weight of ice, snow or sleet results in physical damage to such building.

12. Collapse of buildings to any part thereof, but collapse does not include settling. cracking, shrinkage, bulging or expansion.

13. Sudden and accidental tearing asunder, cracking, burning or bulging of a steam or hot water heating system or of appliances for heating water, but excluding loss caused by or resulting from freezing.

14. Freezing of plumbing, heating and air conditioning systems and domestic appliances.

15. Accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system or domestic appliance but excluding loss to the appliance from which the water or steam escapes. This peril does not include loss caused by or resulting from freezing.

16. Sudden and accidental injury from electrical currents artificially generated to electrical appliances. devices, fixtures and wiring, except tubes, transistors and similar electronic components.

17. Removal, meaning direct loss by removal of the property covered hereunder from premises endangered by, or for repair of damage caused by the perils insured against. The applicable limit of liability will apply for 30 days at each proper place to which any of the property shall necessarily be removed for preservation from or for repair of damages caused by the perils insured against.

GENERAL EXCLUSIONS

1. This policy does not insure against loss:

(1) Under Coverages A, B and C (and under Coverage D and Coverage E resulting from such loss):

a. Caused by, resulting from, contributed to or aggravated by any of the following:

(a) Flood, surface water, waves, tidal water or tidal waves, overflow of streams or other bodies of water, or spray from any of the foregoing, all whether driven by wind or not;

(b) Water which backs up through sewers or drains; or

(c) Water below the surface of the ground including that which exerts pressure on or flows, seeps or leaks through sidewalks, driveways, foundations, walls, basement or other floors or through doors, windows or any other openings in such sidewalks, driveways, foundations, walls, or floors;

Unless loss by fire or explosion (not otherwise excluded) ensues, and this Company shall then be liable only for such ensuing loss;

(2) Caused by, resulting from, contributed to or aggravated by any earth movement, including but not limited to earthquake, volcanic eruption, landslide, mudflow, earth sinking, rising or shifting; unless loss by fire, explosion or breakage of glass constituting a part of the building(s) covered hereunder, including glass in storm doors and storm windows, ensues, and this Company shall then be liable only for such ensuing loss;

(3) Occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) except any ordinance or law requiring the use of safety glazing material in replacement of damaged glass constituting a part of the building covered herein;

(4) Caused directly or indirectly by the interruption of power or other utility service furnished to the insured premises if the interruption takes place away from the insured premises. If a peril insured against ensues on the insured premises, the Company will pay only for loss caused by the ensuing peril;

(5) By theft of any property:

(a) Which at the time of loss is not an integral part of any building or appurtenant structure covered; or

(b) From a dwelling or appurtenant structure in the process of construction;

Unless loss from a peril not excluded ensues from theft or attempted theft, and then this Company shall be liable only for such ensuing loss;

(6) Caused by neglect of the insured to use all reasonable means to save and preserve the property at and after a loss or when the property is endangered by a covered peril;

(7) To plumbing, heating or air conditioning systems or domestic appliances, or by leakage or overflow from such systems or appliances, caused by or resulting from freezing while the building(s) is vacant, under construction, or while all occupants are absent therefrom for a period in excess of four consecutive days, unless the insured shall have exercised due diligence with respect to maintaining heat in the building(s) or unless such systems and appliances had been drained and the water supply shut off or to the building caused by continuous or repeated seepage or leakage over a period of weeks, months or years; or

(8) To fences, pavements, patios, swimming pools, foundations, retaining walls, bulkheads, piers, wharves or docks when such loss is caused by freezing, thawing or by the pressure or weight of ice, snow or water whether driven by wind or not.

b. Under Coverages A and B (and under Coverage D and E resulting from such loss):

(1) By wear and tear, deterioration, rust, mold, wet or dry rot; contamination, smog, smoke from agricultural smudging or industrial operations; mechanical breakdown; settling, cracking, shrinkage, bulging or expansion of pavements, patios, foundations, walls, floors, roofs or ceilings; birds, vermin, insects or domestic animals; unless loss from a peril not excluded ensues, and then this Company shall be liable for only such ensuing loss.

(2) Vandalism and malicious mischief, theft or attempted theft, or glass breakage, if the described building(s) had been vacant beyond a period of 30 consecutive days immediately preceding the loss; unless loss from a peril not excluded ensues, and then this Company shall be liable for only such ensuing loss.

(3) By wind, hail, ice, snow or sleet to the following property, unless liability therefor is assumed on the first page of this policy by separate and specific item(s), or by endorsement hereon:

(a) Any overhead structure (including its supports and screening), whether attached to a building or not, whose rooflike cover is constructed principally of cloth, metal, fiberglass or plastic, which has been erected to provide protection from the elements for windows, doors, stoops, steps, walkways, patios, carports and other dining and/or recreational areas;

(b) Outdoor radio or television antennas including their lead-in wiring, masts or towers;

(c) Fences;

(d) Seawall, property line and similar walls;

(e) Greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises;

(f) Wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon;

(g) Lawns, trees, shrubs or plants.

2. War Risk Exclusion Clause. (This clause applies to all perils insured against hereunder except the perils of fire and lightning, which are otherwise provided for in this policy): This Company shall not be liable for loss caused directly or indirectly by:

a. Hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack, (i) by any government or sovereign power, or by any authority maintaining or using military, naval or air forces; or (ii) by military, naval or air forces; or (iii) by an agent of any such government, power, authority or forces, it being understood that any discharge, explosion or use of any weapon of war employing nuclear fission or fusion shall be conclusively presumed to be such a hostile or warlike action by such government, power, authority or forces;

b. Invasion, insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; order of any civil authority except acts of destruction at the time of and for the purpose of preventing the spread of fire, provided that such fire did not originate from any of the perils excluded by this policy; seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority; or risks of contraband or illegal transportation or trade.

3. Nuclear Exclusion. (This clause applies to all perils insured against hereunder except the perils of fire and lightning, which are otherwise provided for in the Nuclear Clause below in Conditions): Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, or due to any act or condition incident to any of the foregoing, is not insured against by this policy, whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by any of the perils insured against by this policy; and nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled is not "explosion" or "smoke."

CONDITIONS

1. Insured's Duties After Loss. The insured shall give immediate written notice to this Company of any loss, protect the property from further damage, forthwith separate the damaged and undamaged personal property, put it in the best possible order, and furnish a complete inventory of the destroyed or damaged property setting forth for each item, or by category if itemization is not reasonably practicable, the amount of loss claimed. The Company may, in addition, require the insured to furnish a complete inventory of the destroyed, damaged and undamaged property, showing in detail quantities, costs, actual cash value and amount of loss claimed; and within 60 days after the loss, unless such time is extended in writing by this Company, the insured shall render to this Company a proof of loss, signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: the time and origin of the loss, the interest of the insured and of all others in the property, the actual cash value of each item thereof and the amount of loss thereto, all encumbrances thereon, all other contracts of insurance, whether valid or not, covering any of said property, any changes in the title, use, occupation, location, possession or exposures of said property since the issuing of this policy, by whom and for what purpose any building herein described and the several parts thereof were occupied at the time of loss and whether or not it then stood on leased ground, and shall furnish a copy of all the descriptions and schedules in all policies and, if required, verified plans and specifications of any building, fixtures or machinery destroyed or damaged. The insured, as often as may be reasonably required, shall exhibit to any person designated by this Company all that remains of any property herein described, and submit to examinations under oath by any person named by this Company, and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by this Company or its representative, and shall permit extracts and copies thereof to be made.

2. Replacement Cost. This condition shall be applicable to Coverages A and/or B excluding outdoor radio and television antennas and aerials, carpeting, awnings including their supports, and domestic appliances, all whether attached to the building structure or not. (NOTE: Furnaces, air conditioning equipment, systems and their component parts (except window units), and hot water heaters are not domestic appliances but are to be considered part of the described dwelling building.)

a. If at the time of loss the whole amount of insurance applicable to said building structure for the peril causing the loss is 80% or more of the full replacement cost of such building structure, the coverage of this policy applicable to such building structure is extended to include the full cost of repair or replacement (without deduction for depreciation).

b. If at the time of loss the whole amount of insurance applicable to said building structure for the peril causing the loss is less than 80% of the full replacement cost of such building structure, this Company's liability for loss under this policy shall not exceed the larger of the following amounts (1) or (2):

(1) The actual cash value of that part of the building structure damaged or destroyed; or

(2) That proportion of the full cost of repair or replacement without deduction for depreciation of that part of the building structure damaged or destroyed, which the whole amount of insurance applicable to said building structure for the peril causing the loss bears to 80% of the full replacement cost of such building structure.

c. This Company's liability for loss under this policy shall not exceed the smallest of the following amounts (1), (2), or (3):

(1) The limit of liability of this policy applicable to the damaged or destroyed building structure;

(2) The replacement cost of the building structure or any part thereof identical with such building structure on the same premises and intended for the same occupancy and use; or

(3) The amount actually and necessarily expended in repairing or replacing said building structure or any part thereof intended for the same occupancy and use.

d. When the full cost of repair or replacement is more than $1,000 or more than 5.0% of the whole amount of insurance applicable to said building structure for the peril causing the loss, this Company shall not be liable for any loss under subdivision a or subdivision b(2) of this coverage unless and until actual repair or replacement is completed.

e. In determining if the whole amount of insurance applicable to said building structure is 80% or more of the full replacement cost of such building structure, the cost of excavations, underground flues and pipes, underground wiring and drains, and brick, stone and concrete foundations, piers and other supports which are below the under surface of the lowest basement floor, or where there is no basement, which are below the surface of the ground inside the foundation walls, shall be disregarded.

f. The insured may elect to disregard this coverage in making claim hereunder, but such election shall not prejudice the insured's right to make further claim within 180 days after loss for any additional liability brought about by this policy condition.

3. Pair and Set Clause. If there is loss of an article which is part of a pair or set, the measure of loss shall be a reasonable and fair proportion of the total value of the pair or set, giving consideration to the importance of said article, but such loss shall not be construed to mean total loss of the pair or set.

4. Appraisal. In case the insured and this Company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days of such demand. The appraisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon such umpire, then, on request of the insured or this Company, such umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this Company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting him and the expenses of appraisal and umpire shall be paid by the parties equally; provided, however, if the written demand is made by this Company, then the insured shall be reimbursed by this Company for the reasonable cost of the insured's appraiser and the insured's portion of the cost of the umpire.

5. Suit. No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within two years next after inception of the loss.

6. Company's Options. It shall be optional with this Company to take all, or any part, of the property at the agreed or appraised value, and also to repair, rebuild or replace the property destroyed or damaged with other of like kind and quality within a reasonable time, on giving notice of its intention so to do within 30 days after the receipt of the proof of loss herein required.

7. Loss Payable Clause. Loss, if any, shall be adjusted with the named insured and shall be payable to him unless other payee is specifically named hereunder. The amount of loss for which this Company may be liable shall be payable 30 days after proof of loss, as herein provided, is received by this Company and ascertainment of the loss as to amount and coverage is made either by agreement between the insured and this Company expressed in writing or by the filing with this Company of an appraisal award.

8. Abandonment. There can be no abandonment to this Company of any property.

9. Mortgage Clause. (Applies to building items only and is effective only when policy is made payable to a named mortgagee or trustee).

Loss, if any, under this policy, shall be payable to the aforesaid as mortgagee (or trustee) as interest may appear under all present or future mortgages upon the property herein described in which the aforesaid may have an interest as mortgagee (or trustee) in order of precedence of said mortgages, and this insurance, as to the interest of the mortgagee (or trustee) only therein, shall not be invalidated by any act or neglect of the mortgagor or owner of the within described property nor by any foreclosure or other proceedings or notice of sale relating to the property, nor by any change in the title or ownership of the property, nor by the occupation of the premises for purposes more hazardous than are permitted by this policy; provided that in case the mortgagor or owner shall neglect to pay any premium due under this policy the mortgagee (or trustee) shall, on demand pay the same.

Provided, also, that the mortgagee (or trustee) shall notify this Company of any change of ownership or occupancy or increase of hazard which shall come to the knowledge of said mortgagee (or trustee) and, unless permitted by this policy, it shall be noted thereon and the mortgagee (or trustee) shall, on demand, pay the premium for such increased hazard for the term of the use thereof; otherwise this policy shall be null and void.

This Company reserves the right to cancel or nonrenew this policy at any time as provided by its terms, but in such case this policy shall continue in force for the benefit only of the mortgagee (or trustee) for 10 days after notice to the mortgagee (or trustee) of such cancellation or nonrenewal and shall then cease, and this Company shall have the right on like notice, to terminate this agreement.

Whenever this Company shall pay the mortgagee (or trustee) any sum for loss under this policy and shall claim that, as to the mortgagor or owner, no liability therefor existed, this Company shall, to the extent of such payment, be thereupon legally subrogated to all the rights of the party to whom such payment shall be made, under all securities held as collateral to the mortgage debt, or may, at its option, pay to the mortgagee (or trustee) the whole principal due or to grow due on the mortgage with interest, and shall thereupon receive a full assignment and transfer of the mortgage and of all such other securities; but no subrogation shall impair the right of the mortgagee (or trustee) to recover the full amount of said mortgagee's (or trustee's) claim. If the insured fails to render proof of loss such mortgagee, upon notice, shall render proof of loss in the form herein specified within 60 days thereafter and shall be subject to the provisions hereof relating to appraisal and time of payment and of bringing suit.

10. No Benefit to Bailee. This insurance shall not inure directly or indirectly to the benefit of any carrier or other bailee for hire.

11. Loss Clause. Loss hereunder shall not reduce the applicable limit of liability under this policy.

12. Nuclear Clause. The word "fire" in this policy or endorsements attached hereto is not intended to and does not embrace nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and loss by nuclear reaction or nuclear radiation or radioactive contamination is not intended to be and is not insured against by this policy or said endorsements, whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to, or aggravated by "fire" or any other perils insured against by this policy or said endorsements; however, subject to the foregoing and all provisions of this policy, direct loss by "fire," resulting from nuclear reaction or nuclear radiation or radioactive contamination, is insured against by this policy.

13. Policy Term. This policy applies only to loss which occurs during the policy term.

14. Concealment or Fraud. This entire policy shall be void if, whether before or after a loss, the insured has wilfully concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof, or the interest of the insured therein, or in case of any fraud or false swearing by the insured relating thereto.

15. Liberalization. If this Company adopts any revision of the forms or endorsements made part of this policy which would broaden coverage presently granted hereunder without additional premium charge, such broadened coverage will automatically apply to this policy from the effective date of such revision.

16. Added Provisions. The extent of the application of insurance under this policy and of the contribution to be made by this Company in case of loss, and any other provision or agreement not inconsistent with the provisions of this policy, may be provided for in writing added hereto, but no provision may be waived except such as by the terms of this policy is subject to change.

17. Waiver Provisions. No permission affecting this insurance shall exist, or waiver of any provision be valid, unless granted herein or expressed in writing added hereto. No provision, stipulation or forfeiture shall be held to be waived by any requirement or proceeding on the part of this Company relating to appraisal or to any examination provided for herein.

18. Termination Provisions. This policy shall be cancelled at any time at the request of the named insured, in which case this Company shall, upon demand and surrender of this policy, refund the excess of paid premium above the customary short rates for the expired time.

This policy may be cancelled at any time by this Company except when a, b, or c below apply by giving to the named insured a 10 days' written notice of cancellation with or without tender of the excess of paid premium above the pro rata premium for the expired time, which excess, if not tendered, shall be refunded on demand.

a. Cancellation for Non-Payment of Premium. This policy may be cancelled by this Company at any time during the policy period for failure to pay any premium when due whether such premium is payable directly to this Company or its agent or indirectly under any premium finance plan or extension of credit by mailing or delivering to the named insured written notice stating when, not less than ten days thereafter, such cancellation shall be effective.

b. Cancellation of Policies in Force for 90 Days or More and Renewal Policies. If this policy:

(1) Has been in force for 90 days or more; or

(2) If this is a renewal of a policy issued by this Company, effective immediately;

it may be cancelled by this Company for one or more of the following reasons and then only by mailing or delivering to the named insured written notice stating when, not less than 30 days thereafter, such cancellation shall be effective:

(a) Conviction of a crime arising out of acts increasing the hazard insured against;

(b) Discovery of fraud or material misrepresentation;

(c) Wilful or reckless acts or omissions increasing the hazard insured against as determined from a physical inspection of the insured premises; or

(d) Physical changes in the property which result in the property becoming uninsurable as determined from a physical inspection of the insured premises.

c. Non-Renewal of the Policy. The Company agrees that it will not refuse to renew or continue this policy unless a written notice of its intention not to renew or continue is mailed to the insured named in the declarations, at the address shown in this policy, not less than 30 days prior to the expiration date. Such notice shall not be required:

(1) If the insurer or its agent acting on behalf of the insurer has manifested its willingness to renew by issuing or offering to issue a renewal policy, certificate or other evidence of renewal, or has otherwise manifested such intention in writing to the named insured, or

(2) If the named insured has notified in writing the insurer or its agent that he wishes the policy to be cancelled, or that he does not wish the policy to be renewed, or if prior to the date of expiration, he fails to accept the offer of the insurer to renew the policy, or

(3) If the named insured fails to pay the premium as required by the Company for renewal or continuance of this policy.

If this policy is written for a policy period of less than one year, this Company agrees that it will not refuse to renew except as of the expiration of a policy period which coincides with the end of an annual period commencing with its original effective date.

The mailing of notice as aforesaid shall be sufficient proof of notice. Delivery of such written notice by this Company shall be equivalent to mailing.

All other terms and conditions of this policy remain unchanged.

All notices of cancellation shall state that said excess premium (if not tendered) will be refunded on demand.

19. Assignment. Assignment of this policy shall not be valid except with the written consent of this Company.

20. Subrogation. This insurance shall not be invalidated should the insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property described herein. If not waived, this Company may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment therefor is made by this Company.

21. Death of Named Insured. In the event of death of the named insured, this policy covers:

(a) The legal representative but only with respect to the premises and property of the deceased covered under this policy at the time of such death; and

(b) With respect to the property of the named insured, the person having proper temporary custody thereof, but only until the appointment and qualification of the legal representative.

22. Other Insurance. If a loss covered by this policy is also covered by other insurance, whether collectible or not, this Company will pay only the proportion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss.

23. Modification of Terms. The terms of this policy which are less favorable than those which are provided for in the statutes and rules and regulations established pursuant thereto of the state wherein this policy is issued are hereby amended to conform to such statutes, rules and/or regulations.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.