Administrative Code

Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau of Insurance
1/19/2020

Chapter 340. Rules Governing Standards for the Content of Fire Insurance or Fire Insurance in Combination with Other Coverages

14VAC5-340-10. Scope and purpose.

This chapter (14VAC5-340-10 et seq.) shall apply to any insurance company that is licensed to do business in this Commonwealth and is issuing fire policies or fire in combination with other coverages as set forth in §§ 38.2-1921, 38.2-2104, 38.2-2105 and 38.2-2106 of the Code of Virginia. The purpose of this chapter is to establish standards for the content of fire policies or fire in combination with other coverages.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 2, eff. February 1, 1982.

14VAC5-340-20. Standards for content of policies.

Notwithstanding other statutory requirements, all fire or fire combination policies filed with the Commission must contain, as a minimum, the content of the coverages, terms and conditions contained in this chapter (14VAC5-340-10 et seq.). It is acceptable to provide broader and more favorable coverages, terms and conditions in the policy than the minimum standards of content provided for in this chapter. Also, the format and language may be other than that which is shown in this chapter, provided that the content remains as set forth herein.

As respects market value policies, no limited policy form shall be approved which does not prominently display an appropriate title which reflects the limitation in policy coverage. Acceptable titles are those which indicate the coverage limitation in a simple and objective manner such as "Limited Homeowners" or "Market Value Homeowners." Titles which fail to convey the coverage limitation, such as "Specialized Homeowners" or "Customized Homeowners," are not acceptable. The approved name shall be used everywhere the title appears on the policy form. The policy jacket shall display a notification to the policyholder of the restrictions found in the market value policy.

The policy filing shall include an eligibility standard which provides that the market value policy will not be used to insure any property which qualifies for an amount of insurance equal to 80% or more of the structure's full replacement cost under a conventional homeowner policy except at the choice of the insured. This replacement may be satisfied by use of an eligibility standard restricting sale of the market value policy to properties which would only qualify for coverage limits of less than 80% of full replacement cost.

All policy filings shall specifically note all provisions which are broader than the standards contained herein. In addition, for each policy filed, the company will specify the appropriate minimum standards section below (14VAC5-340-40 through 14VAC5-340-120) on which the form filing is based.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 3, eff. February 1, 1982.

14VAC5-340-30. Certification.

The insuring company shall certify to the Commission in writing at the time any policy form or endorsement is filed for approval that, in its opinion, the coverage provided therein is not less favorable than the minimum standards for coverage set forth in this chapter (14VAC5-340-10 et seq.).

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 4, eff. February 1, 1982.

14VAC5-340-40. Dwelling buildings and contents policy; basic form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-DF-1, attached hereto as Exhibit 1.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 5, eff. February 1, 1982.

14VAC5-340-50. Dwelling buildings and contents policy; broad form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-DF-2, attached hereto as Exhibit 2.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 6, eff. February 1, 1982.

14VAC5-340-60. Dwelling buildings and contents policy; special form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-DF-3, attached hereto as Exhibit 3.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 7, eff. February 1, 1982.

14VAC5-340-70. Homeowners policy; basic form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-HO-1, attached hereto as Exhibit 4.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 8, eff. February 1, 1982.

14VAC5-340-80. Homeowners policy; broad form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-HO-2, attached hereto as Exhibit 5.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 9, eff. February 1, 1982.

14VAC5-340-90. Homeowners policy; special form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-HO-3, attached hereto as Exhibit 6.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 10, eff. February 1, 1982.

14VAC5-340-100. Homeowners policy; comprehensive form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-HO-5, attached hereto as Exhibit 7.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 11, eff. February 1, 1982. 1982.

14VAC5-340-110. Homeowners policy; condominium unit-owners form.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-HO-6, attached hereto as Exhibit 8.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 12, eff. February 1, 1982.

14VAC5-340-120. Market value policy.

No policy which is filed based on this section shall be more restrictive than the form designated as SCC-BI-MV, attached hereto as Exhibit 9.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 13, eff. February 1, 1982.

14VAC5-340-130. Severability.

If any provisions of this chapter, 14VAC5-340-10 et seq., or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this chapter, 14VAC5-340-10 et seq., which can be given effect without the invalid provision or application, and to that end the provisions of this chapter, 14VAC5-340-10 et seq., are severable.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 14, eff. February 1, 1982.

14VAC5-340-140. Advertisement.

No company or agent shall state or imply in their advertisements that approval, endorsement or accreditation of such policy forms or endorsements to which this chapter, 14VAC5-340-10 et seq., applies has been granted by any division or agency of this Commonwealth.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 15, eff. February 1, 1982.

14VAC5-340-150. Effective date.

All companies shall file for approval policy forms or endorsements which are not less favorable than the minimum standard for coverage set forth in this chapter on or before October 1, 1981. No policy or endorsement shall be delivered, issued for delivery or renewed in this Commonwealth to become effective on or after February 1, 1982 unless it has been approved by the Commission and is not less favorable than the minimum standards for coverage set forth in this chapter, 14VAC5-340-10 et seq.

Statutory Authority

§§ 38.2-223 and 38.2-2108 of the Code of Virginia.

Historical Notes

Derived from Regulation 17, Case No. INS800067, § 16, eff. February 1, 1982.

EXHIBIT 1. MINIMUM STANDARDS OF CONTENT FOR A DWELLING BUILDING(S) AND CONTENTS -- BASIC FORM (SEASONAL PROPERTY SHALL BE SO DESCRIBED IN THIS POLICY).

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.

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 thereto, 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 shall 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 or 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 on 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.

ADDITIONAL COVERAGES

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 shall not constitute additional amounts of insurance under this policy.

1. 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.

2. 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.

3. Rental Value. The insured may apply up to 10% of the amount of insurance applicable under Coverage A to cover rental value, as defined in Coverage D, and not exceeding 1/12 of said 10% for each month such dwelling or appurtenant structures, or parts thereof, are untenantable. 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.

4. Away From 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.

5. 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.

6. 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.

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 the 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.

PERILS INSURED AGAINST

This policy insures against direct loss to the property covered by the following perils as defined and limited herein or in the policy of which this form is made a part:

1. Fire or lightning, excluding loss resulting from electrical injury or disturbance to electrical appliances. devices, fixtures or wiring caused by electrical currents artificially generated, unless fire ensues, and then only for the loss caused by such ensuing fire.

2. Removal, meaning loss by removal of the property covered hereunder from premises endangered by the perils insured against. The amount of insurance will apply for five days at each proper place to which such property shall necessarily be removed for preservation from the perils insured against.

3. Inherent explosion, meaning explosion occurring in the described dwelling or appurtenant structures or in any structure containing property covered hereunder from hazards inherent therein. Loss by explosion shall include direct loss resulting from the explosion of accumulated gases or unconsumed fuel within the firebox (or combustion chamber) of any fired vessel or within the flues or passages which conduct the gases or combustion therefrom.

This Company shall not be liable for loss by explosion of steam boilers, steam pipes, steam turbines or steam engines, if owned by, leased by or operated under the control of the insured.

The following are not explosions:

a. Electric arcing;

b. Rupture or bursting or rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown;

c. Water hammer;

d. Rupture or bursting of water pipes; or

e. Rupture, bursting or operation of pressure relief devices.

This policy is extended to insure against loss by the following perils 4 through 8, only when the premium for extended coverage is inserted in the spaces provided on the first page of this policy or endorsed hereon.

4. Windstorm 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;

b. Unless liability therefor is assumed by endorsement hereon, this Company shall not be liable for damage to the following property:

(1) Windmills, wind pumps or their towers;

(2) Crop silos or their contents;

(3) Metal smokestacks; or

(4) When outside of buildings,

(a) Grain, hay, straw or other crops;

(b) Lawns, trees, shrubs or plants;

(c) 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; or

(d) Signs or radio or television antennas and aerials, including their lead-in wiring, masts or towers;

(5) Fences;

(6) Seawall, property line and similar walls;

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

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

c. By water from sprinklered equipment or from other piping, unless such equipment or piping be damaged as a direct result of wind or hail.

5. Explosion, including direct loss resulting from the explosion of accumulated gases or unconsumed fuel within the firebox (or combustion chamber) of any fired vessel or within the flues or passages which conduct the gases of combustion therefrom.

This Company shall not be liable for loss by explosion of steam boilers, steam pipes, steam turbines or steam engines, if owned by, leased by or operated under the control of the insured.

The following are not explosions:

a. Shock waves caused by aircraft, generally known as "sonic boom;"

b. Electric arcing;

c. Rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown;

d. Water hammer;

e. Rupture or bursting of water pipes;

f. Rupture or bursting due to expansion or swelling of the contents of any building or structure, caused by or resulting from water; or

g. Rupture, bursting or operation of pressure relief devices.

This Explosion provision, when effective, supersedes Inherent Explosion provision 3 herein.

6. Riot, riot attending a strike or civil commotion, including direct loss by acts of striking employees of the owner or tenant(s) of the described building(s) while occupied by said striking employees and shall also include direct loss from pillage and looting occurring during and at the immediate place of a riot, riot attending a strike or civil commotion. Unless specifically endorsed hereon, this Company shall not be liable for loss resulting from damage to or destruction of the described property due to change in temperature or humidity or interruption of operations whether or not such loss is covered by this policy as to other perils.

7. Aircraft or vehicles, meaning only direct loss resulting from actual physical contact of a land vehicle or aircraft, including self-propelled missiles or spacecraft, with property covered hereunder or with the building containing the property covered, and direct loss by objects falling from aircraft; but excluding loss:

a. By any vehicle owned or operated by an insured or by any tenant of the described premises; or

b. By any vehicle to fences, driveways, walks, or when outside of buildings, to lawns, trees, shrubs or plants.

8. Smoke, meaning only smoke due to a sudden, unusual and faulty operation of any heating or cooking unit, only when such unit is connected to a chimney by a smoke pipe or vent pipe, and while in or on the described premises but not smoke from fireplaces.

This policy is extended to insure against loss by vandalism and malicious mischief only when the premium for vandalism and malicious mischief is inserted in the spaces provided on the first page of this policy or endorsed hereon.

9. Vandalism or malicious mischief, meaning only the wilful and malicious damage to or destruction of the property covered excluding glass (other than glass building blocks) constituting a part of the building or loss by pilferage, theft, burglary or larceny and excluding loss if the described dwelling had been vacant beyond a period of 30 consecutive days immediately preceding the loss. Unless specifically endorsed hereon, this Company shall not be liable for any loss resulting from change in temperature or humidity.

GENERAL EXCLUSIONS

1. This policy does not insure against loss:

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

(1) Floor, 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;

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

(3) 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;

b. 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;

c. 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, this Company will pay only for loss caused by the ensuing peril. This Company shall not be liable for any loss specifically excluded under the Riot Peril or the Vandalism and Malicious Mischief Peril;

d. Caused by theft; or

e. 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.

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.

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. 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.

3. 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.

4. 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.

5. 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.

6. 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.

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

8. 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.

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

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

11. 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.

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

13. Increased Hazards. Unless otherwise provided in writing added hereto this Company shall not be liable for loss occurring while the hazard is increased by any means within the control or knowledge of the insured.

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 10 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 for 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.

EXHIBIT 2. MINIMUM STANDARDS OF CONTENT FOR A DWELLING BUILDING(S) AND CONTENTS - BROAD 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 thereto, 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 structure.

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 shall 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 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 or 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 COVERAGE

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 amount(s) 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 building(s) not occupied by the insured, and additional living expense, as defined in Coverage E, with respect to any portion of the described building(s) 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 From 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 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 against direct loss to the property covered by the following perils as defined and limited herein or in the policy of which this form is made a part:

1. Fire or lightning.

2. Windstorm 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. Unless liability therefor is assumed on the first page of this policy by separate and specific item(s) or by endorsement thereon:

(1) 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;

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

(3) Fences;

(4) Seawall, property line and similar walls;

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

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

(7) 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, but excluding loss to driveways, walks, lawns, trees, shrubs or plants caused by any vehicle owned or operated by any occupant of the premises.

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 excluding loss by pilferage, theft, burglary or larceny. Loss by vandalism or malicious mischief is not covered if the building covered had been vacant beyond a period of 30 consecutive days immediately preceding the loss.

9. Breakage of glass constituting a part of the building covered hereunder, including glass in storm doors and storm windows. Loss by breakage of glass is not covered if the building had been vacant beyond a period of 30 consecutive days immediately preceding the loss.

10. Burglars, but excluding loss of property taken by burglars. Loss by burglars is not covered if the building covered had been vacant beyond a period of 30 consecutive days immediately preceding the loss.

11. Falling Objects, but excluding loss to:

a. The interior of the building or the property covered therein, caused by falling objects unless the building covered or containing the property covered shall first sustain an actual damage to the exterior of the roof or walls by the falling objects;

b. Outdoor radio and television antennas and aerials including their lead-in wiring, masts and towers, outdoor equipment, gutters and downspouts, awnings including their supports, fences, lawns, trees, shrubs and plants; and

c. Damage to the falling object itself.

12. Weight of ice, snow or sleet which results in physical damage to a building covered or to a building containing the property covered, but excluding loss to:

a. Outdoor equipment, awnings including their supports and fences; and

b. 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 or water whether driven by wind or not.

13. Collapse of building or any part thereof but excluding loss to outdoor equipment, awnings, fences, pavements, patios, swimming pools, underground pipes, flues, drains, cesspools and septic tanks, foundations, retaining walls, bulkheads, piers, wharves, or docks, all except as the direct result of the collapse of a building.

Collapse does not include settling, cracking, shrinkage, bulging or expansion.

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

15. Freezing of plumbing, heating and air conditioning systems and domestic appliances but excluding loss caused by or resulting from freezing while the building is under construction, vacant 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 or unless the plumbing, heating and air conditioning systems and domestic appliances had been drained and the water supply shut off.

16. Accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system or domestic appliance, including the cost of tearing out and replacing any part of the building covered required to effect repairs to the system or appliance from which the water or steam escapes but excluding loss:

a. To the building caused by continuous or repeated seepage or leakage over a period of weeks, months or years;

b. If the building covered had been vacant beyond a period of 30 consecutive days immediately preceding the loss;

c. To the system or appliance from which the water or steam escapes; or

d. Caused by or resulting from freezing.

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

18. 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:

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

(1) 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;

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

(3) 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;

b. 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;

c. 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;

d. 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, this Company will pay only for loss caused by the ensuing peril;

e. Caused by theft; or

f. 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.

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 there to, 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 another 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 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 10 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 or 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 another 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.

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.

EXHIBIT 4. MINIMUM STANDARDS OF CONTENT FOR A HOMEOWNERS POLICY - BASIC FORM.

SECTION I - COVERAGES

DESCRIPTION OF PROPERTY AND INTERESTS COVERED

COVERAGE A - DWELLING

This policy covers the described dwelling building, including additions in contact therewith, occupied principally as a private residence.

This coverage also includes:

1. If the property of the insured and when not otherwise covered, fixtures of the building pertaining to the service of the premises and while located thereon or temporarily elsewhere; (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.)

2. Materials and supplies located on the premises or adjacent thereto, intended for use in construction, alteration or repair of such dwelling.

COVERAGE B - APPURTENANT STRUCTURES

This policy covers structures (other than the described dwelling building, including additions in contact therewith) appertaining to the premises and located thereon.

This coverage also includes materials and supplies located on the premises or adjacent thereto, intended for use in the construction, alteration or repair of such structures.

This coverage excludes:

1. Structures used in whole or in part for business purposes; or

2. Structures rented or leased in whole or in part or held for such rental or lease (except structures used exclusively for private garage purposes) to other than a tenant of the described dwelling.

COVERAGE C - UNSCHEDULED PERSONAL PROPERTY

This policy covers unscheduled personal property owned or used by an insured while it is anywhere in the world and, at the option of the named insured, owned by others while on the portion of the premises occupied exclusively by the insured.

This coverage also includes such unscheduled personal property while elsewhere than on the described premises, anywhere in the world:

1. At the option of the named insured,

a. Owned by a guest while in a residence occupied by an insured; or

b. Owned by a residence employee while actually engaged in the service of an insured and while such property is in the physical custody of such residence employee or in a residence occupied by an Insured;

2. But the limit of this Company's liability for the unscheduled personal property away from the premises shall be an amount of insurance equal to 10% of the amount specified for Coverage C, but in no event less than $1,000.

3. If, during the term of this policy, the named insured removes unscheduled personal property covered under Coverage C from the premises to another location within the continental United States or the State of Hawaii, to be occupied as his principal residence, the limit of liability 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 unscheduled personal property away from the premises.

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

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 money, bullion, numismatic property, bank notes, gold, platinum and silver; provided, however, for the purpose of this limitation, goldware and gold-plated ware shall not be deemed to be gold and silverware and silver-plated ware shall not be deemed to be silver.

2. $500 in the aggregate on securities, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,500 in the aggregate for loss by theft of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and furs including articles containing fur which represents its principal value;

4. $1,000 in the aggregate on watercraft, including their trailers (whether licensed or not), furnishings, equipment and outboard motors;

5. $500 on trailers and campers, not otherwise provided for, whether licensed or not;

6. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns;

7. $500 in the aggregate for loss by theft of guns and related accessories.

This coverage excludes:

1. Animals, birds or fish;

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

3. Aircraft and parts;

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

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

6. 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 or boarders;

7. Business property while away from the described premises;

8. 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

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

COVERAGE D - ADDITIONAL LIVING EXPENSE

If a property loss covered under this policy renders the premises untenantable, this policy covers the necessary increase in living expense incurred by the named insured to continue as nearly as practicable the normal standard of living of the named insured's household for not exceeding the period of time required:

1. To repair or replace such damaged or destroyed property as soon as possible; or

2. For the named insured's household to become settled in permanent quarters; whichever is less.

This coverage also includes:

1. The fair rental value of any portion of the described dwelling or appurtenant structures covered under this policy, as furnished or equipped by the named insured, which is rented or held for rental by the named insured. The fair rental value shall not include charges and expenses that do not continue during the period of untenantability. Coverage shall be limited to the period of time required to restore, as soon as possible, the rented portion to the same tenantable condition;

2. The period of time, not exceeding two weeks, while access to the premises is prohibited by order of civil authority, as a direct result of damage to neighboring premises by a peril insured against.

The periods described above shall not be limited by the expiration of this policy.

This coverage excludes expense due to cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This policy covers expenses incurred in the removal of all debris of the property covered hereunder occasioned by loss thereto for which coverage is afforded. Coverage will also be provided for the removal of fallen trees which cause damage to covered property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an additional 5.0% of that limit of liability will be available to cover debris removal expense.

2. 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, and in particular the requirements that in case loss occurs the insured shall protect the property from further damage.

3. Trees, Shrubs, and Other Plants. This Company shall be liable for loss to trees, shrubs, plants and lawns (except those grown for business purposes) only when the loss is caused by fire, lightning, explosion, riot, civil commotion, vandalism, malicious mischief, theft, aircraft, or vehicles not owned or operated by an occupant of the premises. This Company's liability for loss in any one occurrence under this provision shall not exceed in the aggregate for all such property 5.0% of the limit of liability of Coverage A nor more than $500 on any one tree, shrub or plant.

4. Fire Department Service Charge. This policy covers for an amount not exceeding $250 the named insured's liability, assumed by contract or agreement for fire department charges where the fire department is called because of fire in, on or exposing property insured hereunder, while located on the premises described. This coverage does not cover the named insured's liability, by contract or otherwise, to indemnify either a city, municipality or fire protection district, or any other person, firm or corporation against loss, claim or liability arising by reasons of the movement or functioning of fire apparatus or members of a fire department; or by reason of any accident arising out of the performance of services by any fire department. Coverage afforded under this clause applies only if the property is not located within the limits of the city, municipality or fire protection district furnishing such fire department response. This coverage shall not increase the applicable limit of liability under this policy.

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. This loss deductible clause shall not apply to Coverage D - Additional Living Expense or Fire Department Service Charge.

SECTION I - PERILS INSURED AGAINST

This policy insures against direct loss to the property covered by the following perils as defined and limited herein:

1. Fire or lightning, excluding any loss resulting from any electrical injury or disturbance to electrical appliances, devices, fixtures or wiring caused by electrical currents artificially generated, unless fire ensues and then only for the loss caused by such ensuing fire.

2. Removal, meaning direct loss by removal of the property covered hereunder from premises endangered 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.

3. Windstorm 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;

b. To watercraft (except rowboats and canoes on premises) including their trailers, furnishings, equipment and outboard motors while such property is not inside fully enclosed buildings; or

c. To the following property unless liability therefor is assumed by endorsement hereon: (i) 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; (ii) fences; (iii) seawall, property line and similar walls; (iv) greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises; (v) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon.

4. Explosion, including direct loss resulting from the explosion of accumulated gases or unconsumed fuel within the fire box (or combustion chamber) of any fired vessel or within the flues or passages which conduct the gases of combustion therefrom. This Company shall not be liable for loss by explosion of steam boilers, steam pipes, steam turbines or steam engines, if owned by, leased by or operated under the control of the insured.

The following are not explosions within the intent or meaning of this peril:

a. Shock waves caused by aircraft, generally known as "sonic boom,"

b. Electric arcing,

c. Rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown,

d. Water hammer,

e. Rupture or bursting of water pipes, or

f. Rupture, bursting or operation of pressure relief devices.

5. Riot or civil commotion.

6. Vehicles or aircraft, meaning only direct loss resulting from actual physical contact of a land vehicle or aircraft, including self-propelled missiles or spacecraft, with property covered hereunder or with the building containing the property covered, and direct loss by objects falling from aircraft; but excluding loss:

a. By any vehicle owned or operated by an occupant of the premises;

b. By any vehicle to fences, driveways or walks; or

c. To any motor vehicle or trailer.

7. Smoke, meaning only direct loss from smoke due to a sudden, unusual and faulty operation of any heating or cooking unit in or on the described premises but excluding smoke from fireplaces.

8. Vandalism or malicious mischief, meaning only the wilful and malicious damage to or destruction of the property covered, but excluding loss if the described dwelling had been vacant beyond a period of 30 consecutive days immediately preceding the loss.

9. Breakage of glass constituting a part of the building covered hereunder, including glass in storm doors and storm windows, but excluding loss if the building covered had been vacant beyond a period of 30 consecutive days, immediately preceding the loss. This Company shall not be liable for loss to glass for an amount exceeding $50 in any one occurrence.

10. Theft, meaning any act of stealing or attempt thereat. Unscheduled personal property contained in any bank, trust or safe deposit company, public warehouse or occupied dwelling not owned or occupied by or rented to an insured in which the property covered has been placed for safekeeping shall be considered as being on the described premises.

Upon knowledge of loss under this peril or of an occurrence which may give rise to a claim for such loss, the insured shall give immediate notice to this Company or any of its authorized agents and also to the police.

a. General Theft Exclusions:

This policy does not apply to loss:

(1) If committed by an insured;

(2) In or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

(3) Arising out of or resulting from the theft of any credit card or automatic teller card or loss by forgery or alterations of any check, draft, promissory note, bill of exchange, or similar written promise, order or direction to pay a sum certain in money; or

(4) Of a precious or semi-precious stone from its setting.

b. Theft exclusions applicable while the described dwelling is rented to others:

This policy does not apply to loss from the described dwelling while the portion of the described dwelling customarily occupied exclusively by an insured is rented to others:

(1) Of money, bullion, silver, gold, platinum, numismatic property or bank notes;

(2) Of securities, accounts, manuscripts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, passports, railroad and other tickets or stamps, including philatelic property;

(3) Of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, silverware, goldware, pewterware, silver-plated ware and gold-plated ware; or any article of fur or article containing fur which represents its principal value; or

(4) Caused by a tenant, his employees or members of his household while renting the portion of the described dwelling customarily occupied exclusively by an insured.

c. Theft exclusions applicable to property away from the described premises:

This policy does not apply to loss away from the described premises of:

(1) Property while in any dwelling or premises thereof, owned, rented or occupied by an insured except while an insured is temporarily residing therein; however, property of a student who is an insured is covered while at a residence away from home if the student has been at that residence at any time during the 45 days immediately before the loss;

(2) Property while unattended in or on any motor vehicle or trailer, other than a public conveyance, unless the loss is the result of forcible entry into such vehicle while all doors, windows or other openings thereof are closed and locked, provided there are visible marks of forcible entry upon the exterior of such vehicle, but property shall not be considered unattended when the insured is required to surrender the keys of such vehicle to a bailee;

(3) Property while unattended in or on private watercraft unless the loss is the direct result of forcible entry into a securely locked compartment and provided there are visible marks of forcible entry upon the exterior of such compartment;

(4) Watercraft, their furnishings, equipment and outboard motors; or

(5) Trailers and campers whether licensed or not.

SECTION I - EXCLUSIONS

This policy does not insure against loss:

1. Occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) unless such liability is otherwise specifically assumed by endorsement hereon. However, this policy does cover the replacement of damaged glass, constituting a part of the building covered herein, with safety glazing material where required by any ordinance or law;

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 or explosion ensues, and this Company shall then be liable only for such ensuing loss;

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

a. Flood, surface water, waves, tidal water or tidal wave, 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 ensues, and this Company shall then be liable only for such ensuing loss, but these exclusions do not apply to loss by theft;

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, this Company will pay only for loss caused by the ensuing peril;

5. 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;

6. 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; or

7. 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, 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." 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 contained below in Section I - Conditions.

SECTION I - CONDITIONS I.

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 - Coverages A and B. This condition shall be applicable to Coverages A and 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 condition 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 named insured may elect to disregard this condition in making claim hereunder, but such election shall not prejudice the named 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, damaged or stolen 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 - Coverages A and B only. (This entire clause is void unless the name of the mortgagee [or trustee] is inserted in the Declarations):

Loss, if any, under this policy, shall be payable to the mortgagee (or trustee), named on the first page of this policy, 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 accrued 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 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, 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, 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.

SECTION II - LIABILITY AND MEDICAL PAYMENTS COVERAGES

COVERAGE E - PERSONAL LIABILITY

This Company agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This Company shall have the right and duty, at its own expense, to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient. This Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of this Company's liability has been exhausted by payment of judgments or settlements.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

This Company agrees to pay all reasonable medical expenses, incurred within one year from the date of the accident, to or for each person who sustains bodily injury to which this insurance applies caused by an accident, while such person is:

1. On an insured premises with the permission of any insured; or

2. Elsewhere, if such bodily injury:

a. Arises out of a condition in the insured premises or the ways immediately adjoining,

b. Is caused by the activities of any insured, or by a residence employee in the course of his employment by any insured,

c. Is caused by an animal owned by or in the care of any insured,

d. Is sustained by any residence employee and arises out of and in the course of his employment by any insured.

SECTION II - EXCLUSIONS

This policy does not apply:

1. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) Any aircraft; or

(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the residence premises if the motor vehicle is kept in dead storage on the residence premises; or

(3) Any recreational motor vehicle owned by any insured, if the bodily injury or property damage occurs away from the residence premises; but this subdivision (3) does not apply to golf carts while used for golfing purposes.

This exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured except while such employee is engaged in the operation of maintenance of aircraft:

b. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft:

(1) Owned by or rented to any insured if the watercraft has inboard or inboard-outboard motor power of more than 50 horsepower or is a sailing vessel (with or without auxiliary power) 26 feet or more in overall length; or

(2) Powered by any outboard motors, singly or in combination of more than 25 total horsepower, if such outboard motors are owned by any insured at the inception of this policy and not endorsed hereon, unless the insured reports in writing to this Company within 45 days after acquisition his intention to insure the outboard motor or combination of outboard motors, ownership of which was acquired prior to the policy term.

This exclusion does not apply to (i) bodily injury or property damage occurring on the residence premises or (ii) bodily injury to any residence employee arising out of and in the course of his employment by any insured;

c. To bodily injury or property damage arising out of the rendering of or failing to render professional services;

d. To bodily injury or property damage arising out of business pursuits of any insured except activities therein which are ordinarily incident to nonbusiness pursuits. Coverage is provided for incidental business activities of any insured for babysitting, caddying, lawn care, newspaper delivery and other similar activities;

e. To bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by any insured; but this exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured;

f. To bodily injury or property damage which is either expected or intended from the standpoint of the insured;

g. To bodily injury or property damage caused directly or indirectly by:

(1) 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 (de jure or de facto), 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;

(2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; 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.

2. Under Coverage E - Personal Liability

a. To liability assumed by the insured under any contract or agreement not in writing or under any contract or agreement in connection with the insured "s business;

b. To bodily injury to any person, including a residence employee, if the insured has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided by the insured under any workmen's compensation or occupational disease law;

c. To property damage to property owned by the insured;

d. To property damage to property occupied or used by the insured or rented to or in the care, custody or control of the insured or as to which the insured is for any purpose exercising physical control;

e. To sickness, disease or death resulting therefrom of any residence employee unless written claim is made or suit is brought therefor against the insured within 36 months after the end of the policy term;

f. To bodily injury or property damage with respect to which any insured under this policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.

3. Under Coverage F - Medical Payments to Others

a. To bodily injury to any person, including a residence employee, if any person or organization has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided under any workmen's compensation or occupational disease law;

b. To bodily injury to:

(1) Any insured under subdivision 3 of the definition of "insured,"

(2) Any person, other than a residence employee, regularly residing on any part of the insured premises, or

(3) Any person while on the insured premises because a business is conducted or professional services are rendered thereon;

c. To bodily injury from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of the foregoing.

SECTION II - ADDITIONAL COVERAGES

1. Damage to Property of Others: This Company will, at its option, either pay for the actual cash value of property damaged or destroyed during the policy period by any insured, or repair or replace such property with other property of like quality and kind, but in no event shall this Company's limit of liability exceed $250 in any one occurrence.

This coverage does not apply to damage to or destruction of property:

a. Caused intentionally by any insured who has attained the age of 13;

b. Owned by or rented to any insured, any tenant of any insured or any resident of named insured's household;

c. Rising out of (i) any act or omission in connection with premises (other than the insured premises) owned, rented or controlled by any insured, (ii) business pursuits or professional services or (iii) the ownership, maintenance, operation, use, loading or unloading of any land motor vehicle, trailer or semi-trailer, farm machinery or equipment, aircraft or watercraft;

d. If insurance therefor is provided under Section I of this policy.

2. Personal Liability Claim Expenses: This Company will pay:

a. All expenses incurred by this Company and all costs taxed against the insured in any suit defended by this Company;

b. All premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but this Company shall have no obligation to apply for or furnish any such bonds;

c. All interest on the entire amount of any judgment which accrues after entry of the judgment and before this Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of this Company's liability thereon;

d. Reasonable expenses incurred by the insured at this Company's request, including actual loss of earnings (but not loss of other income) and vacation time or other benefit loss not to exceed $50 per day because of the insured "s attendance at hearings or trials at such request.

Any expenses incurred by this Company under this provision shall not reduce the applicable limit of liability.

3. First Aid Expenses: In addition to this Company's limit of liability, this Company will pay expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this insurance applies.

4. Property in Control of the insured: Such insurance as is afforded under Coverage E - Personal Liability, applies to property damage to any insured premises and to house furnishings therein if such property damage arises out of fire, explosion, or smoke or smudge caused by sudden, unusual and faulty operation of any heating or cooking unit. Exclusion 2 d does not apply to this additional coverage.

5. Construction of New Residence: Such insurance as is afforded under Coverage E - Personal Liability, applies to bodily injury and property damage arising out of any vacant land owned by or rented to any insured on which a one or two family dwelling is being constructed for use by any insured as a residence. Such insurance as is afforded under Coverage F - Medical Payments to Others, applies to bodily injury sustained by any person while on such vacant land with the permission of any insured. This coverage does not apply to bodily injury to any employee, other than a residence employee, of any insured arising out of the course of his employment by any insured. Exclusion 1 e does not apply to this additional coverage.

SECTION II - CONDITIONS

1. Limits of Liability. Regardless of the number of:

a. Insureds under this insurance;

b. Persons or organizations who sustain bodily injury or property damage;

c. Claims made or suits brought on account of bodily injury or property damage;

This Company's liability is limited as follows:

(1) Coverage E - Personal Liability. The limit of liability stated in the Declarations as applicable to "each occurrence" is the total limit of the Company's liability under Coverage E - Personal Liability for all damages as the result of any one occurrence.

(2) Coverage F - Medical Payments to Others. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability under Coverage F - Medical Payments to Others for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person," the total liability of the Company under Coverage F - Medical Payments to Others for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of liability stated in the Declarations as applicable to "each accident."

2. Severability of Insurance. The insurance afforded under Section II applies separately to each insured against whom claim is made or suit is brought except with respect to this Company's limit of liability.

3. Insured's Duties in the Event of Accident, Occurrence, Claim or Suit:

a. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

(1) In the event of an accident or occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to this Company or any of its authorized agents as soon as practicable.

(2) If claim is made or suit is brought against the insured, the insured shall immediately forward to this Company every demand, notice, summons or other process received by him or his representative.

(3) The insured shall cooperate with this Company and upon this Company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of bodily injury or property damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident.

b. Under Additional Coverages - Damage of Property of Others: When loss occurs, the insured shall give written notice as soon as practicable to this Company or any of its authorized agents and file sworn proof of loss with this Company within 60 days after the occurrence of loss. The insured shall exhibit the damaged property, if within his control, and cooperate with this Company in all matters pertaining to the loss or claims with respect thereto.

4. Injured Party's Duty in Case of Accident - Under Coverage F - Medical Payments to Others: The injured party or someone on his behalf shall:

a. Give this Company written proof of claim, under oath if required, as soon as practicable;

b. Execute authorizations enabling this Company to obtain copies of medical reports and records, and the injured party shall submit to physical examination by a physician selected by this Company at such times and as often as this Company may reasonably require.

5. Payment of Claim - Coverage F - Medical Payments to Others: This Company may pay the injured person or any person or organization rendering medical services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of any liability by any insured or this Company.

6. Suit Against This Company:

a. No suit or action shall lie against this Company, unless:

(1) As a condition precedent thereto there has been full compliance with all of the provisions and stipulations of this policy, and

(2) The amount of the insured's obligation to pay has been finally determined:

(a) By judgment against the insured after actual trial; or

(b) By written agreement of the insured, the claimant and this Company.

b. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded under this policy.

c. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability. This company shall not be impleaded.

d. Bankruptcy or insolvency of the insured or his estate shall not relieve this Company of its obligations under this policy.

SECTION I AND SECTION II - CONDITIONS

1. Policy Term. This policy applies only to loss under Section I or bodily injury or property damage under Section II, which occurs during the policy term.

2. 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 circumstances 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.

3. 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.

4. 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.

5. 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.

6. 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 10 days thereafter, such cancellation shall be effective.

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

1. 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;

1. 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.

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

8. Subrogation. This insurance shall not be invalidated should the named insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property covered 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. Subrogation is not applicable to Coverage F - Medical Payments to Others and Additional Coverages - Damage to Property of Others.

9. Death of Named Insured. In the event of death of the named insured, the definition of "insured" is modified as follows:

a. The named insured shall mean:

(1) The spouse, if a resident of the household at the time of such death; and

(2) 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.

b. Insured shall also include:

(1) Any member of the deceased's household who was covered under this policy at the time of such death, but only while a resident of the insured premises; and

(2) 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.

10. Continuous Renewal. Subject to the consent of this Company, and subject to the premiums, rules and forms then in effect for this Company, this policy may be continued in force by payment of the required continuation premium for each successive policy term. Such continuation premium must be paid to the Company prior to the expiration of the then current policy term and if not so paid the policy shall terminate.

With respect to a mortgagee (or trustee) declared under this policy, this insurance will continue in force as to only the interest of the mortgagee (or trustee) for 10 days after written notice of termination to the mortgagee, (or trustee), and shall then terminate.

11. Other Insurance. Except as provided in 11a and 11b below, if a loss covered by the policy is also covered by other insurance, 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.

a. With respect to Section II - Medical Payments to Others, this Other Insurance condition does not apply.

b. With respect to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any motor vehicle, recreational motor vehicle or watercraft to which this policy applies, this insurance under Coverage E - Personal Liability, shall be excess insurance over any other valid and collectible insurance available to the insured.

12. 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.

DEFINITIONS

When used in this policy the following definitions apply:

"Insured" means

1. The named insured stated in the Declarations of this policy;

2. If residents of the named insured's household, the spouse, the relatives of either, and any other person under the age of 21 in the care of any insured; and

3. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. With respect to animals or watercraft to which this insurance applies owned by any insured, any person or organization legally responsible therefor, except a person or organization using or having custody or possession of any such animal or watercraft in the course of his business or without the permission of the owner; and

b. With respect to any vehicle to which this insurance applies, any employee of any insured while engaged in the employment of the insured.

"Insured premises" means

1. The residence premises described in the Declarations of this policy, and

2. Under Section II only:

a. Any other residence premises specifically named in this policy;

b. All other premises and private approaches thereto for use of the named insured or spouse in connection with the residence premises;

c. Any residence premises acquired by the named insured or spouse during the term of this policy;

d. Any premises which are not owned by any insured but where an insured may be temporarily residing;

e. Vacant land, other than farm land, owned by or rented to any insured; and

f. Individual or family cemetery plots or burial vaults.

"Residence premises" means

1. A one or two family dwelling building, appurtenant structures, grounds and private approaches thereto; or

2. That portion of any other building occupied as a residence; provided that such premises are used as a private residence by the named insured or his spouse but excluding any portion of the premises used for business purposes.

"Business" means

1. A trade, profession or occupation, including farming, and the use of any premises or portion of the residence premises for any such purposes; and

2. The rental or holding for rental of the whole or any portion of the premises by any insured;

But business shall not include:

a. The occasional rental or holding for rental of the residence premises for dwelling purposes;

b. The rental or holding for rental of a portion of the residence premises for dwelling purposes unless for the accommodation of three or more roomers or boarders;

c. The rental or holding for rental of a portion of the residence premises for private garage purposes; or

d. The rental or holding for rental of a portion of the residence premises as an office, school or studio.

"Aircraft" means any machine or device capable of atmospheric flight except model airplanes.

The following definitions apply only to coverage afforded under Section II of this policy:

"Bodily injury" means bodily injury, sickness or disease, including care, loss of services and death resulting therefrom.

"Medical expenses" means expenses for necessary medical, surgical, x-ray, dental services, including prosthetic devices, ambulance, hospital, professional nursing and funeral services.

"Motor vehicle" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached there to) but does not include, except while being towed by or carried on a motor vehicle, any of the following: utility, boat, camp or home trailer, recreational motor vehicle, crawler or farm type tractor, farm implement or, if not subject to motor vehicle registration, any equipment which is designed for use principally off public roads.

"Property damage" means injury to or destruction of tangible property, including loss of use thereof.

"Occurrence" means an accident, including injurious exposure to conditions, which results, during the policy term, in bodily injury or property damage.

"Recreational motor vehicle" means (i) a golf cart or snowmobile or (ii) if not subject to motor vehicle registration, any other land motor vehicle designed for recreational use off public roads.

"Residence employee" means an employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured's business.

EXHIBIT 5. MINIMUM STANDARDS OF CONTENT FOR A HOMEOWNERS POLICY - BROAD FORM.

SECTION I - COVERAGES

DESCRIPTION OF PROPERTY AND INTERESTS COVERED

COVERAGE A - DWELLING

This policy covers the described dwelling building, including additions in contact therewith, occupied principally as a private residence.

This coverage also includes:

1. If the property of the insured and when not otherwise covered, fixtures of the building pertaining to the service of the premises and while located thereon or temporarily elsewhere; (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.)

2. Materials and supplies located on the premises or adjacent thereto, intended for use in construction, alteration or repair of such dwelling.

COVERAGE B - APPURTENANT STRUCTURES

This policy covers structures (other than the described dwelling building, including additions in contact therewith) appertaining to the premises and located thereon.

This coverage also includes materials and supplies located on the premises or adjacent thereto, intended for use in the construction, alteration or repair of such structures.

This coverage excludes:

1. Structures used in whole or in part for business purposes; or

2. Structures rented or leased in whole or in part or held for such rental or lease (except structures used exclusively for private garage purposes) to other than a tenant of the described dwelling.

COVERAGE C - UNSCHEDULED PERSONAL PROPERTY

This policy covers unscheduled personal property owned or used by an insured while it is anywhere in the world and, at the option of the named insured, owned by others while on the portion of the premises occupied exclusively by the insured.

This coverage also includes such unscheduled personal property while elsewhere than on the described premises, anywhere in the world:

1. At the option of the named insured.

a. Owned by a guest while in a residence occupied by an insured; or

b. Owned by a residence employee while actually engaged in the service of an insured and while such property is in the physical custody of such residence employee or in a residence occupied by an insured;

2. But the limit of this Company's liability for the unscheduled personal property away from the premises shall be an amount of insurance equal to 10% of the amount specified for Coverage C, but in no event less than $1,000.

3. If, during the term of this policy, the named insured removes unscheduled personal property covered under Coverage C from the premises to another location within the continental United States or the State of Hawaii, to be occupied as his principal residence, the limit of liability 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 unscheduled personal property away from the premises.

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

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 money, bullion, numismatic property, bank notes, gold, platinum and silver; provided, however, for the purpose of this limitation, goldware and gold-plated ware shall not be deemed to be gold and silverware and silver-plated ware shall not be deemed to be silver.

2. $500 in the aggregate on securities, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,500 in the aggregate for loss by theft of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and furs including articles containing fur which represents its principal value;

4. $1,000 in the aggregate on watercraft, including their trailers (whether licensed or not), furnishings, equipment and outboard motors;

5. $500 on trailers and campers, not otherwise provided for, whether licensed or not;

6. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns;

7. $500 in the aggregate for loss by theft of guns and related accessories.

This coverage excludes:

1. Animals, birds or fish;

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

3. Aircraft and parts;

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

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

6. 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 or boarders;

7. Business property while away from the described premises;

8. 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

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

COVERAGE D - ADDITIONAL LIVING EXPENSE

If a property loss covered under this policy renders the premises untenantable, this policy covers the necessary increase in living expense incurred by the named insured to continue as nearly as practicable the normal standard of living of the named insured's household for not exceeding the period of time required:

1. To repair or replace such damaged or destroyed property as soon as possible; or

2. For the named insured's household to become settled in permanent quarters; whichever is less.

This coverage also includes:

1. The fair rental value of any portion of the described dwelling or appurtenant structures covered under this policy, as furnished or equipped by the named insured, which is rented or held for rental by the named insured. The fair rental value shall not include charges and expenses that do not continue during the period of untenantability. Coverage shall be limited to the period of the time required to restore, as soon as possible, the rented portion to the same tenantable condition;

2. The period of time, not exceeding two weeks, while access to the premises is prohibited by order of civil authority, as a direct result of damage to neighboring premises by a peril insured against.

The periods described above shall not be limited by the expiration of this policy.

This coverage excludes expense due to cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This policy covers expenses incurred in the removal of all debris of the property covered hereunder occasioned by loss thereto for which coverage is afforded. Coverage will also be provided for the removal of fallen trees which cause damage to covered property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an additional 5.0% of that limit of liability will be available to cover debris removal expense.

2. 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, and in particular the requirements that in case loss occurs the insured shall protect the property from further damage.

3. Trees, Shrubs and Other Plants. This Company shall be liable for loss to trees, shrubs, plants and lawns (except those grown for business purposes) only when the loss is caused by fire, lightning, explosion, riot, civil commotion, vandalism, malicious mischief, theft, aircraft, or vehicles not owned or operated by an occupant of the premises. This Company's liability for loss in any one occurrence under this provision shall not exceed in the aggregate for all such property 5.0% of the limit of liability of Coverage A nor more than $500 on any one tree, shrub or plant.

4. Fire Department Service Charge. This policy covers for an amount not exceeding $250 the named insured's liability, assumed by contract or agreement for fire department charges where the fire department is called because of fire in, on or exposing property insured hereunder, while located on the premises described. This coverage does not cover the named insured's liability, by contract or otherwise, to indemnify either a city, municipality or fire protection district, or any other person, firm or corporation against loss, claim or any other person, firm or corporation against loss, claim or liability arising by reasons of the movement or functioning of fire apparatus or members of a fire department; or by reason of any accident arising out of the performance of services by any fire department. Coverage afforded under this clause applies only if the property is not located within the limits of the city, municipality or fire protection district furnishing such fire department response. This coverage shall not increase the applicable limit of liability under this policy.

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. This loss deductible clause shall not apply to Coverage D - Additional Living Expense or Fire Department Service Charge.

SECTION I - PERILS INSURED AGAINST

This policy insures against direct loss to the property covered by the following perils as defined and limited herein:

1. Fire or lightning.

2. Removal, meaning direct loss by removal of the property covered hereunder from premises endangered 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.

3. Windstorm 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;

b. To watercraft (except rowboats and canoes on premises) including their trailers, furnishings, equipment and outboard motors while such property is not inside fully enclosed buildings; or

c. To the following property unless liability therefor is assumed by endorsement hereon: (i) 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; (ii) fences; (iii) seawall, property line and similar walls; (iv) greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises; (v) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon.

4. Explosion.

5. Riot or civil commotion.

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

7. Vehicles, but excluding loss to fences, driveways and walks caused by any vehicle owned or operated by any occupant of the premises.

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

9. Vandalism or malicious mischief, meaning only the wilful and malicious damage to or destruction of the property covered, but excluding loss if the described dwelling had been vacant beyond a period of 30 consecutive days immediately preceding the loss.

10. Breakage of glass constituting a part of the building covered hereunder, including glass in storm doors and storm windows, but excluding loss if the building covered had been vacant beyond a period of 30 consecutive days, immediately preceding the loss.

11. Theft, meaning any act of stealing or attempt thereat, including loss of property from a known place under circumstances when a probability of theft exists. Unscheduled personal property contained in any bank, trust or safe deposit company, public warehouse or occupied dwelling not owned or occupied by or rented to an insured in which the property covered has been placed for safekeeping shall be considered as being on the described premises.

Upon knowledge of loss under this peril or of an occurrence which may give rise to a claim for such loss, the insured shall give immediate notice to this Company or any of its authorized agents and also to the police.

a. General Theft Exclusions. This policy does not apply to loss:

(1) If committed by an insured;

(2) In or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

(3) Arising out of or resulting from the theft of any credit card or automatic teller card or loss by forgery or alterations of any check, draft, promissory note, bill of exchange, or similar written promise, order or direction to pay a sum certain in money; or

(4) Of a precious or semi-precious stone from its setting.

b. Theft exclusions applicable while the described dwelling is rented to others.

This policy does not apply to loss from the described dwelling while the portion of the described dwelling customarily occupied exclusively by an insured is rented to others:

(1) Of money, bullion, silver, gold, platinum, numismatic property or bank notes;

(2) Of securities, accounts, manuscripts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, passports, railroad and other tickets or stamps, including philatelic property;

(3) Of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, silverware, goldware, pewterware, silver-plated ware and gold-plated ware; or any article of fur or article containing fur which represents its principal value; or

(4) Caused by a tenant, his employees or members of his household while renting the portion of the described dwelling customarily occupied exclusively by an insured.

c. Theft exclusions applicable to property away from the described premises. This policy does not apply to loss away from the described premises of:

(1) Property while in any dwelling or premises thereof, owned, rented or occupied by an insured except while an insured is temporarily residing therein; however, property of a student who is an insured is covered while at a residence away from home if the student has been at that residence at any time during the 45 days immediately before the loss;

(2) Property while unattended in or on any motor vehicle or trailer, other than a public conveyance, unless the loss is the result of forcible entry into such vehicle while all doors, windows or other openings thereof are closed and locked, provided there are visible marks of forcible entry upon the exterior of such vehicle or the loss is the result of the theft of such vehicle which is not recovered within 30 days, but property shall not be considered unattended when the insured is required to surrender the keys of such vehicle to a bailee;

(3) Property while unattended in or on private watercraft unless the loss is the direct result of forcible entry into a securely locked compartment and provided there are visible marks of forcible entry upon the exterior of such compartment;

(4) Watercraft, their furnishings, equipment and outboard motors; or

(5) Trailers and campers whether licensed or not.

12. Falling objects, but excluding loss to:

a. The interior of the building or the property covered therein, caused by falling objects unless the building covered or containing the property covered shall first sustain an actual damage to the exterior of the roof or walls by the falling object; and

b. Outdoor equipment, awnings including their supports and fences; and

c. Damage to the falling object itself.

13. Weight of ice, snow or sleet which results in physical damage to the building covered or to property contained in a building and then only if the weight of ice, snow or sleet results in physical damage to such building, but excluding loss to:

a. Outdoor equipment, awnings including their supports and fences; and

b. 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 or water whether driven by wind or not.

14. Collapse of buildings or any part thereof but excluding loss to outdoor equipment, awnings, fences, pavements, patios, swimming pools, underground pipes, flues, drains, cesspools and septic tanks, foundations, retaining walls, bulkheads, piers, wharves, or docks, all except as the direct result of the collapse of a building. Collapse does not include settling, cracking, shrinkage, bulging or expansion.

15. Sudden and accidental tearing asunder, cracking, burning or bulging of a steam or hot water heating system or of appliances for heating water, but not including loss caused by or resulting from freezing.

16. Accidental discharge or overflow of water or steam from within a plumbing, heating or air conditioning system or from within a domestic appliance, including the cost of tearing out and replacing any part of the building covered necessary to effect repairs to the system or appliance from which the water or steam escapes, but excluding loss:

a. To the building caused by continuous or repeated seepage or leakage over a period of weeks, months or years;

b. If the building covered had been vacant beyond a period of 30 consecutive days immediately preceding the loss;

c. To the system or appliance from which the water or steam escapes; or

d. Caused by or resulting from freezing.

17. Freezing of plumbing, heating and air conditioning systems and domestic appliances, but excluding loss caused by and resulting from freezing while the building covered is vacant, unoccupied, or under construction, unless the insured shall have exercised due diligence with respect to maintaining heat in the building, or unless the plumbing and heating systems and domestic appliances had been drained and the water supply shut off during such vacancy or unoccupancy.

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

SECTION I - EXCLUSIONS

This policy does not insure against loss:

1. Occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) unless such liability is otherwise specifically assumed by endorsement hereon. However, this policy does cover the replacement of damaged glass, constituting a part of the building covered herein, with safety glazing material where required by any ordinance or law;

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, but this exclusion does not apply to loss by theft;

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

a. Flood, surface water, waves, tidal water or tidal wave, 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 ensues, and this Company shall then be liable only for such ensuing loss, but these exclusions do not apply to loss by theft;

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, this Company will pay only for loss caused by the ensuing peril;

5. 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;

6. 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; or

7. 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, 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." 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 contained below in Section I - Conditions.

SECTION I - 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 - Coverages A and B. This condition shall be applicable to Coverages A and 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 condition 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 named insured may elect to disregard this condition in making claim hereunder, but such election shall not prejudice the named 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, damaged or stolen 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 - Coverages A and B only. (This entire clause is void unless the name of the mortgagee [or trustee] is inserted in the Declarations):

Loss, if any, under this policy, shall be payable to the mortgagee (or trustee), named on the first page of this policy, 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 accrued 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 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, 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, 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.

SECTION II - LIABILITY AND MEDICAL PAYMENTS COVERAGES

COVERAGE E - PERSONAL LIABILITY

This Company agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This Company shall have the right and duty, at its own expense, to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient. This Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of this Company's liability has been exhausted by payment of judgments or settlements.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

This Company agrees to pay all reasonable medical expenses, incurred within one year from the date of the accident, to or for each person who sustains bodily injury to which this insurance applies caused by an accident, while such person is:

1. On an insured premises with the permission of any insured; or

2. Elsewhere, if such bodily injury

a. Arises out of a condition in the insured premises or the ways immediately adjoining,

b. Is caused by the activities of any insured, or by a residence employee in the course of his employment by any insured,

c. Is caused by an animal owned by or in the care of any insured, or

d. Is sustained by any residence employee and arises out of and in the course of his employment by any insured.

SECTION II - EXCLUSIONS

This policy does not apply:

1. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) Any aircraft; or

(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the residence premises if the motor vehicle is kept in dead storage on the residence premises; or

(3) Any recreational motor vehicle owned by any insured, if the bodily injury or property damage occurs away from the residence premises; but this subdivision (3) does not apply to golf carts while used for golfing purposes.

This exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured except while such employee is engaged in the operation or maintenance of aircraft;

b. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft:

(1) Owned by or rented to any insured if the watercraft has inboard or inboard-outboard motor power of more than 50 horsepower or is a sailing vessel (with or without auxiliary power) 26 feet or more in overall length; or

(2) Powered by any outboard motor(s), singly or in combination of more than 25 total horsepower, if such outboard motor(s) is owned by any insured at the inception of this policy and not endorsed hereon, unless the insured reports in writing to this Company within 45 days after acquisition his intention to insure the outboard motor or combination of outboard motors, ownership of which was acquired prior to the policy term.

This exclusion does not apply to (i) bodily injury or property damage occurring on the residence premises or (ii) bodily injury to any residence employee arising out of and in the course of his employment by any insured;

c. To bodily injury or property damage arising out of the rendering of or failing to render professional services;

d. To bodily injury or property damage arising out of business pursuits of any insured except activities therein which are ordinarily incident to nonbusiness pursuits. Coverage is provided for incidental business activities of any insured for babysitting, caddying, lawn care, newspaper delivery and other similar activities.

e. To bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by any insured; but this exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured;

f. To bodily injury or property damage which is either expected or intended from the standpoint of the insured;

g. To bodily injury or property damage caused directly or indirectly by:

1. 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 (de jure or de facto), 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;

2. Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; 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.

2. Under Coverage E - Personal Liability:

a. To liability assumed by the insured under any contract or agreement not in writing or under any contract or agreement in connection with the insured's business;

b. To bodily injury to any person, including a residence employee, if the insured has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided by the insured under any workmen's compensation or occupational disease law;

c. To property damage to property owned by the insured;

d. To property damage to property occupied or used by the insured or rented to or in the care, custody or control of the insured or as to which the insured is for any purpose exercising physical control;

e. To sickness, disease or death resulting therefrom of any residence employee unless written claim is made or suit is brought therefor against the insured within 36 months after the end of the policy term;

f. To bodily injury or property damage with respect to which any insured under this policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.

3. Under Coverage F - Medical Payments to Others:

a. To bodily injury to any person, including a residence employee, if any person or organization has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided under any workmen's compensation or occupational disease law;

b. To bodily injury to:

(1) Any insured under subdivision 3 of the definition of "insured,"

(2) Any person, other than a residence employee, regularly residing on any part of the insured premises, or

(3) Any person while on the insured premises because a business is conducted or professional services are rendered thereon;

c. To bodily injury from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of the foregoing.

SECTION II - ADDITIONAL COVERAGES

1. Damage to Property of Others: This Company will, at its option, either pay for the actual cash value of property damaged or destroyed during the policy period by any insured, or repair or replace such property with other property of like quality and kind, but in no event shall this Company's limit of liability exceed $250 in any one occurrence.

This coverage does not apply to damage to or destruction of property:

a. Caused intentionally by any insured who has attained the age of 13;

b. Owned by or rented to any insured, any tenant of any insured or any resident of named insured's household;

c. Arising out of (i) any act or omission in connection with premises (other than the insured premises) owned, rented or controlled by any insured, (ii) business pursuits or professional services or (iii) the ownership, maintenance, operation, use, loading or unloading of any land motor vehicle, trailer or semi-trailer, farm machinery or equipment, aircraft or watercraft;

d. If insurance therefor is provided under Section I of this policy.

2. Personal Liability Claim Expenses. This Company will pay:

a. All expenses incurred by this Company and all costs taxed against the insured in any suit defended by this Company;

b. All premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of an accident arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but this Company shall have no obligation to apply for or furnish any such bonds;

c. All interest on the entire amount of any judgment which accrues after entry of the judgment and before this Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of this Company's liability thereon;

d. Reasonable expenses incurred by the insured at this Company's request, including actual loss of earnings (but not loss of other income) and vacation time or other benefit loss not to exceed $50 per day because of the insured's attendance at hearings or trials at such request.

Any expenses incurred by this Company under this provision shall not reduce the applicable limit of liability.

3. First Aid Expenses: In addition to this Company's limit of liability, this Company will pay expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this insurance applies.

4. Property in Control of the insured: Such insurance as is afforded under Coverage E - Personal Liability, applies to property damage to any insured premises and to house furnishings therein if such property damage arises out of fire, explosion, or smoke or smudge caused by sudden, unusual and faulty operation of any heating or cooking unit. Exclusion 2 d does not apply to this Additional Coverage.

5. Construction of New Residence: Such insurance as is afforded under Coverage E - Personal Liability, applies to bodily injury and property damage arising out of any vacant land owned by or rented to any insured on which a one or two family dwelling is being constructed for use by any insured as a residence. Such insurance as is afforded under Coverage F - Medical Payments to Others, applies to bodily injury sustained by any person while on such vacant land with the permission of any insured. This coverage does not apply to bodily injury to any employee, other than a residence employee, of any insured arising out of and in the course of his employment by any insured. Exclusion 1 e does not apply to this Additional Coverage.

SECTION II - CONDITIONS

1. Limits of Liability. Regardless of the number of:

a. Insureds under this insurance;

b. Persons or organizations who sustain bodily injury or property damage;

c. Claims made or suits brought on account of bodily injury or property damage;

This Company's liability is limited as follows:

(1) Coverage E - Personal Liability. The limit of liability stated in the Declarations as applicable to "each occurrence" is the total limit of the Company's liability under Coverage E - Personal Liability for all damages as the result of any one occurrence.

(2) Coverage F - Medical Payments to Others. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability under Coverage F - Medical Payments to Others for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person," the total liability of the Company under Coverage F - Medical Payments to Others for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of liability stated in the Declarations as applicable to "each accident."

2. Severability of Insurance: The insurance afforded under Section II applies separately to each insured against whom claim is made or suit is brought except with respect to this Company's limit of liability.

3. Insured's Duties in the Event of Accident, Occurrence, Claim or Suit:

a. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

(1) In the event of an accident or occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to this Company or any of its authorized agents as soon as practicable.

(2) If claim is made or suit is brought against the insured, the insured shall immediately forward to this Company every demand, notice, summons or other process received by him or his representative.

(3) The insured shall cooperate with this Company and upon this Company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of bodily injury or property damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident.

b. Under Additional Coverages - Damage to Property of Others: When loss occurs, the insured shall give written notice as soon as practicable to this Company or any of its authorized agents and file sworn proof of loss with this Company within 60 days after the occurrence of loss. The insured shall exhibit the damaged property, if within his control, and cooperate with this Company in all matters pertaining to the loss or claims with respect thereto.

4. Injured Party's Duty in Case of Accident. Under Coverage F - Medical Payments to Others. The injured party or someone on his behalf shall:

a. Give this Company written proof of claim, under oath if required, as soon as practicable;

b. Execute authorizations enabling this Company to obtain copies of medical reports and records, and the injured party shall submit to physical examination by a physician selected by this Company at such times and as often as this Company may reasonably require.

5. Payment of Claim. Coverage F - Medical Payments to Others: This Company may pay the injured person or any person or organization rendering medical services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of any liability by any insured or this Company.

6. Suit Against This Company:

a. No suit or action shall lie against this Company, unless:

(1) As a condition precedent thereto there has been full compliance with all of the provisions and stipulations of this policy, and

(2) The amount of the insured's obligation to pay has been finally determined:

(a) By judgment against the insured after actual trial; or

(b) By written agreement of the insured, the claimant and this Company.

b. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded under this policy.

c. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability. This Company shall not be impleaded.

d. Bankruptcy or insolvency of the insured or his estate shall not relieve this Company of its obligations under this policy.

SECTION I AND SECTION II - CONDITIONS

1. Policy Term. This policy applies only to loss under Section I or bodily injury or property damage under Section II, which occurs during the policy term.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 10 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 and 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 of 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.

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

8. Subrogation. This insurance shall not be invalidated should the named insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property covered 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. Subrogation is not applicable to Coverage F - Medical Payments to Others and Additional Coverages - Damage to Property of Others.

9. Death of Named Insured. In the event of death of the named insured, the definition of "insured" is modified as follows:

a. The named insured shall mean:

(1) The spouse, if a resident of the household at the time of such death; and

(2) 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.

b. Insured shall also include:

(1) Any member of the deceased's household who was covered under this policy at the time of such death, but only while a resident of the insured premises; and

(2) 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.

10. Continuous Renewal. Subject to the consent of this Company, and subject to the premiums, rules and forms then in effect for this Company, this policy may be continued in force by payment of the required continuation premium for each successive policy term. Such continuation premium must be paid to the Company prior to the expiration of the then current policy term and if not so paid the policy shall terminate.

With respect to a mortgagee (or trustee) declared under this policy, this insurance will continue in force as to only the interest of the mortgagee (or trustee) for 10 days after written notice of termination to the mortgagee (or trustee), and shall then terminate.

11. Other Insurance. Except as provided in 11a and 11b below, if a loss covered by the policy is also covered by other insurance, 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.

a. With respect to Section II - Medical Payments to Others, this Other Insurance condition does not apply.

b. With respect to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any motor vehicle, recreational motor vehicle or watercraft to which this policy applies, this insurance under Coverage E - Personal Liability, shall be excess insurance over any other valid and collectible insurance available to the insured.

12. 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.

DEFINITIONS

When used in this policy the following definitions apply:

"Insured" means:

1. The named insured, stated in the Declarations of this policy;

2. If residents of the named insured's household, the spouse, the relatives of either, and any other person under the age of 21 in the care of any insured; and

3. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. With respect to animals or watercraft to which this insurance applies owned by any insured, any person or organization legally responsible therefor, except a person or organization using or having custody or possession of any such animal or watercraft in the course of his business or without the permission of the owner; and

b. With respect to any vehicle to which this insurance applies, any employee of any insured while engaged in the employment of the insured.

"Insured premises" means:

1. The residence premises described in the Declarations of this policy, and

2. Under Section II only:

a. Any other residence premises specifically named in this policy;

b. All other premises and private approaches thereto for use of the named insured or spouse in connection with the residence premises;

c. Any residence premises acquired by the named insured or spouse during the term of this policy;

d. Any premises which are not owned by any insured but where an insured may be temporarily residing;

e. Vacant land, other than farm land, owned by or rented to any insured; and

f. Individual or family cemetery plots or burial vaults.

"Residence premises" means:

1. A one or two family dwelling building, appurtenant structures, grounds and private approaches thereto; or

2. That portion of any other building occupied as a residence; provided that such premises are used as a private residence by the named insured or his spouse but excluding any portion of the premises used for business purposes.

"Business" means:

1. A trade, profession or occupation, including farming, and the use of any premises or portion of the residence premises for any such purposes; and

2. The rental or holding for rental of the whole or any portion of the premises by any insured;

But business shall not include:

a. The occasional rental or holding for rental of the residence premises for dwelling purposes;

b. The rental or holding for rental of a portion of the residence premises for dwelling purposes unless for the accommodation of three or more roomers or boarders;

c. The rental or holding for rental of a portion of the residence premises for private garage purposes; or

d. The rental or holding for rental of a portion of the residence premises as an office, school or studio.

"Aircraft" means any machine or device capable of atmospheric flight except model airplanes.

The following definitions apply only to coverage afforded under Section II of this policy:

"Bodily injury" means bodily injury, sickness or disease, including care, loss of services and death resulting therefrom.

"Medical expenses" means expenses for necessary medical, surgical, x-ray, dental services, including prosthetic devices, ambulance, hospital, professional nursing and funeral services.

"Motor vehicle" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached thereto) but does not include, except while being towed by or carried on a motor vehicle, any of the following: utility, boat, camp or home trailer, recreational motor vehicle, crawler or farm type tractor, farm implement or, if not subject to motor vehicle registration, any equipment which is designed for use principally off public roads.

"Property damage" means injury to or destruction of tangible property, including loss of use thereof.

"Occurrence" means an accident, including injurious exposure to conditions, which results, during the policy term, in bodily injury or property damage.

"Recreational motor vehicle" means (i) a golf cart or snowmobile or (ii) if not subject to motor vehicle registration, any other land motor vehicle designed for recreational use off public roads.

"Residence employee" means an employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured's business.

EXHIBIT 6. MINIMUM STANDARDS OF CONTENT FOR A HOMEOWNERS POLICY - SPECIAL FORM.

SECTION I - COVERAGES.

DESCRIPTION OF PROPERTY AND INTERESTS COVERED.

COVERAGE A - DWELLING

This policy covers the described dwelling building, including additions in contact therewith, occupied principally as a private residence.

This coverage also includes:

1. If the property of the insured and when not otherwise covered, fixtures of the building pertaining to the service of the premises and while located thereon or temporarily elsewhere; (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.)

2. Material and supplies located on the premises or adjacent thereto, intended for use in construction, alteration or repair of such dwelling.

COVERAGE B - APPURTENANT STRUCTURES

This policy covers structures (other than the described dwelling building, including additions in contact therewith) appertaining to the premises and located thereon.

This coverage also includes materials and supplies located on the premises or adjacent thereto, intended for use in the construction, alteration or repair of such structures.

This coverage excludes:

1. Structures used in whole or in part for business purposes; or

2. Structures rented or leased in whole or in part or held for such rental or lease (except structures used exclusively for private garage purposes) to other than a tenant of the described dwelling.

COVERAGE C - UNSCHEDULED PERSONAL PROPERTY

This policy covers unscheduled personal property owned or used by an insured while it is anywhere in the world and, at the option of the named insured, owned by others while on the portion of the premises occupied exclusively by the insured.

This coverage also includes such unscheduled personal property while elsewhere than on the described premises, anywhere in the world:

1. At the option of the named insured,

a. Owned by a guest while in a residence occupied by an insured; or

b. Owned by a residence employee while actually engaged in the service of an insured and while such property is in the physical custody of such residence employee or in a residence occupied by an insured;

2. But the limit of this Company's liability for the unscheduled personal property away from the premises shall be an amount of insurance equal to 10% of the amount specified for Coverage C, but in no event less than $1,000.

3. If, during the term of this policy, the named insured removes unscheduled personal property covered under Coverage C from the premises to another location within the continental United States or the State of Hawaii, to be occupied as his principal residence, the limit of liability 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 unscheduled personal property away from the premises.

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

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 money, bullion, numismatic property, bank notes, gold, platinum and silver; provided, however, for the purpose of this limitation, goldware and gold-plated ware shall not be deemed to be gold and silverware and silver-plated ware shall not be deemed to be silver.

2. $500 in the aggregate on securities, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,500 in the aggregate for loss by theft of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and furs including articles containing fur which represents its principal value;

4. $1,000 in the aggregate on watercraft, including their trailers (whether licensed or not), furnishings, equipment and outboard motors;

5. $500 on trailers and campers, not otherwise provided for, whether licensed or not;

6. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns;

7. $500 in the aggregate for loss by theft of guns and related accessories.

This coverage excludes:

1. Animals, birds or fish;

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

3. Aircraft and parts;

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

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

6. 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 or boarders;

7. Business property while away from the described premises;

8. 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

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

COVERAGE D - ADDITIONAL LIVING EXPENSE

If a property loss covered under this policy renders the premises untenantable, this policy covers the necessary increase in living expense incurred by the named insured to continue as nearly as practicable the normal standard of living of the named insured's household for not exceeding the period of time required:

1. To repair or replace such damage or destroyed property as soon as possible; or

2. For the named insured's household to become settled in permanent quarters; whichever is less.

This coverage also includes:

1. The fair rental value of any portion of the described dwelling or appurtenant structures covered under this policy, as furnished or equipped by the named insured, which is rented or held for rental by the named insured. The fair rental value shall not include charges and expenses that do not continue during the period of untenantability. Coverage shall be limited to the period of time required to restore, as soon as possible, the rented portion to the same tenantable condition;

2. The period of time, not exceeding two weeks, while access to the premises is prohibited by order of civil authority, as a direct result of damage to neighboring premises by a peril not otherwise excluded.

The periods described above shall not be limited by the expiration of this policy.

This coverage excludes expense due to cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This policy covers expenses incurred in the removal of all debris of the property covered hereunder occasioned by loss thereto for which coverage is afforded. Coverage will also be provided for the removal of fallen trees which cause damage to covered property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an additional 5.0% of that limit of liability will be available to cover debris removal expense.

2. 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 not otherwise excluded 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, and in particular the requirements that in case loss occurs the insured shall protect the property from further damage.

3. Trees, Shrubs and Other Plants. This Company shall be liable for loss to trees, shrubs, plants and lawns (except those grown for business purposes) only when the loss is caused by fire, lightning, explosion, riot, civil commotion, vandalism, malicious mischief, theft, aircraft, or vehicles not owned or operated by an occupant of the premises. This Company's liability for loss in any one occurrence under this provision shall not exceed in the aggregate for all such property 5.0% of the limit of liability of Coverage A nor more than $500 on any one tree, shrub or plant.

4. Fire Department Service Charge. This policy covers for an amount not exceeding $250 the named insured's liability, assumed by contract or agreement for fire department charges where the fire department is called because of fire in, on or exposing property insured hereunder, while located on the premises described. This coverage does not cover the named insured's liability, by contract or otherwise, to indemnify either a city, municipality or fire protection district, or any other person, firm or corporation against loss, claim or liability arising by reasons of the movement or functioning of fire apparatus or members of a fire department; or by reason of any accident arising out of the performance of services by any fire department. Coverage afforded under this clause applies only if the property is not located within the limits of the city, municipality or fire protection district furnishing such fire department response. This coverage shall not increase the applicable limit of liability under this policy.

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. This loss deductible clause shall not apply to Coverage D - Additional Living Expense or Fire Department Service Charge.

SECTION I - PERILS INSURED AGAINST

This policy insures under:

Coverage A - Dwelling and Coverage B - Appurtenant Structures against all risks of physical loss to the property covered (and under Coverage D - Additional Living Expense resulting from such loss), except as otherwise excluded or limited.

Coverage C - Unscheduled Personal Property against direct loss to the property covered by the following perils as defined and limited except as otherwise excluded.

1. Fire or lightning.

2. Removal, meaning direct loss by removal of the property covered hereunder from premises endangered 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.

3. Windstorm or hail, excluding loss:

a. Caused by rain, snow, sand or dust, all whether driven by wind or not, unless the building 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 property covered therein 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 watercraft (except rowboats and canoes on premises) including their trailers, furnishings, equipment and outboard motors while such property is not inside fully enclosed buildings.

4. Explosion.

5. Riot or civil commotion.

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

7. Vehicles.

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

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

10. Theft, meaning any act of stealing or attempt thereat, including loss of property from a known place under circumstances when a probability of theft exists. Unscheduled personal property contained in any bank, trust or safe deposit company, public warehouse or occupied dwelling not owned or occupied by or rented to an insured in which the property covered has been placed for safekeeping shall be considered as being on the described premises.

Upon knowledge of loss under this peril or of an occurrence which may give rise to a claim for such loss, the insured shall give immediate notice to this Company or any of its authorized agents and also to the police.

a. General Theft Exclusions. This policy does not apply to loss:

(1) If committed by an insured;

(2) In or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

(3) Arising out of or resulting from the theft of any credit card or automatic teller card or loss of forgery or alterations of any check, draft, promissory note, bill of exchange, or similar written promise, order or direction to pay a sum certain in money; or

(4) Of a precious or semi-precious stone from its setting.

b. Theft Exclusions applicable while the described dwelling is rented to others. This policy does not apply to loss from the described dwelling while the portion of the described dwelling customarily occupied exclusively by an insured is rented to others:

(1) Of money, bullion, silver, gold, platinum, numismatic property or bank notes;

(2) Of securities, accounts, manuscripts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, passports, railroad and other tickets or stamps, including philatelic property;

(3) Of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, silverware, goldware, pewterware, silver-plated ware and gold-plated ware; or any article of fur or article containing fur which represents its principal value; or

(4) Caused by a tenant, his employees or members of his household while renting the portion of the described dwelling customarily occupied exclusively by an insured.

c. Theft exclusions applicable to property away from the described premises. This policy does not apply to loss away from the described premises of:

(1) Property while in any dwelling or premises thereof, owned, rented or occupied by an insured except while an insured is temporarily residing therein; however, property of a student who is an insured is covered while at a residence away from home if the student has been at that residence at any time during the 45 days immediately before the loss;

(2) Property while unattended in or on any motor vehicle or trailer, other than a public conveyance, unless the loss is the result of forcible entry into such vehicle while all doors, windows or other openings thereof are closed and locked, provided there are visible marks of forcible entry upon the exterior of such vehicle or the loss is the result of the theft of such vehicle which is not recovered within 30 days, but property shall not be considered unattended when the insured is required to surrender the keys of such vehicle to a bailee;

(3) Property while unattended in or on private watercraft unless the loss is the direct result of forcible entry into a securely locked compartment and provided there are visible marks of forcible entry upon the exterior of such compartment;

(4) Watercraft, their furnishings, equipment and outboard motors; or

(5) Trailers and campers whether licensed or not.

11. 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 walls by the falling object.

b. Damage to the falling object itself.

12. 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.

13. Collapse of building or any part thereof, but collapse does not include settling, cracking, shrinkage, bulging or expansion.

14. Sudden and accidental tearing asunder, cracking, burning or bulging of a steam or hot water heating system or of appliances for heating water, but not including loss caused by or resulting from freezing.

15. Accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system or from within a domestic appliance but excluding loss:

a. To the appliance from which water or steam escapes; or

b. Caused by or resulting from freezing.

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

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

SECTION I - EXCLUSIONS

This policy does not insure against loss. Under Coverages A, B and C (and under Coverage D - Additional Living Expense resulting from such loss):

1. 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 ensues, and this Company shall then be liable only for such ensuing loss, but these exclusions do not apply to loss by theft;

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, but this exclusion does not apply to loss by theft;

3. To plumbing, heating or air conditioning systems or domestic appliances, or by discharge, leakage or overflow from such systems or appliances, caused by or resulting from freezing while the building covered is vacant, unoccupied, or under construction unless the insured shall have exercised due diligence with respect to maintaining heat in the building or unless such systems and appliances had been drained and the water supply shut off during such vacancy or unoccupancy;

4. Occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) unless such liability is otherwise specifically assumed by endorsement hereon. However, this policy does cover the replacement of damaged glass, constituting a part of the building covered herein, with safety glazing material where required by any ordinance or law;

5. 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 or water whether driven by wind or not;

6. 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, this Company will pay only for loss caused by the ensuing peril;

7. By windstorm or hail to the following property, unless liability therefor is assumed by endorsement hereon: (i) 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; (ii) fences; (iii) seawall, property line and similar walls; (iv) greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises; (v) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon;

8. 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;

9. 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; or

10. 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, 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." 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 contained below in Section I - Conditions.

Under Coverages A and B (and under Coverage D - Additional Living Expense resulting from such loss):

1. By wear and tear; marring or scratching; deterioration; inherent vice; latent defect; mechanical breakdown; rust; mold; wet or dry rot; contamination; smog; smoke from agricultural smudging or industrial operations; settling, cracking, shrinkage, bulging or expansion of pavements, patios, foundations, walls, floors, roofs or ceilings; birds, vermin, rodents, insects or domestic animals; unless loss by fire, smoke (other than smoke from agricultural smudging or industrial operations), explosion, collapse of a building, glass breakage or water not otherwise excluded ensues then this policy shall cover only such ensuing loss. If loss by water not otherwise excluded ensues, this policy shall also cover the cost of tearing out the replacing of any part of the building covered required to effect repairs to the plumbing, heating or air conditioning system or domestic appliance but excluding loss to the system or appliance from which the water escapes;

2. By theft in or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

3. By vandalism and malicious mischief or glass breakage, if the property covered hereunder had been vacant beyond a period of 30 consecutive days immediately preceding the loss;

4. Loss caused by continuous or repeated seepage or leakage of water or steam from within a plumbing, heating or air conditioning system or from within a domestic appliance which occurs over a period of weeks, months or years.

SECTION I - 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 to 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 - Coverages A and B. This condition shall be applicable to Coverages A and 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 structures;

(2) The replacement cost of the building or any part thereof identical with such 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 condition 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 named insured may elect to disregard this condition in making claim hereunder, but such election shall not prejudice the named 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, damaged or stolen 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 another 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 - Coverages A and B only. (This entire clause is void unless the name of the mortgagee [or trustee] is inserted in the Declarations):

Loss, if any, under this policy, shall be payable to the mortgagee (or trustee), named on the first page of this policy, 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 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 accrued 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 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, 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, 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.

SECTION II - LIABILITY AND MEDICAL

PAYMENTS COVERAGE.

COVERAGE E - PERSONAL LIABILITY

This Company agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This Company shall have the right and duty, at its own expense, to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient. This Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of this Company's liability has been exhausted by payment of judgments or settlements.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

This Company agrees to pay all reasonable medical expenses, incurred within one year from the date of the accident, to or for each person who sustains bodily injury to which this insurance applies caused by an accident, while such person is:

1. On an insured premises with the permission of any insured; or

2. Elsewhere, if such bodily injury

a. Arises out of a condition in the insured premises or the ways immediately adjoining,

b. Is caused by the activities of any insured, or by a residence employee in the course of his employment by any insured,

c. Is caused by an animal owned by or in the care of any insured, or

d. Is sustained by any residence employee and arises out of and in the course of his employment by any insured.

SECTION II - EXCLUSIONS

This policy does not apply to:

1. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) Any aircraft; or

(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the residence premises if the motor vehicle is kept in dead storage on the residence premises; or

(3) Any recreational motor vehicle owned by any insured, if the bodily injury or property damage occurs away from the residence premises; but this subdivision (3) does not apply to golf carts while used for golfing purposes.

This exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured except while such employee is engaged in the operation or maintenance of aircraft;

b. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft:

(1) Owned by or rented to any insured if the watercraft has inboard or inboard-outboard motor power of more than 50 horsepower or is a sailing vessel (with or without auxiliary power) 26 feet or more in overall length; or

(2) Powered by any outboard motors, singly or in combination of more than 25 total horsepower, if such outboard motors are owned by any insured at the inception of this policy and not endorsed hereon, unless the insured reports in writing to this Company within 45 days after acquisition his intention to insure the outboard motor or combination of outboard motors, ownership of which was acquired prior to the policy term.

This exclusion does not apply to (i) bodily injury or property damage occurring on the residence premises or (ii) bodily injury to any residence employee arising out of and in the course of his employment by any insured;

c. To bodily injury or property damage arising out of the rendering of or failing to render professional services;

d. To bodily injury or property damage arising out of business pursuits of any insured except activities therein which are ordinarily incident to nonbusiness pursuits. Coverage is provided for incidental business activities of any insured for babysitting, caddying, lawn care, newspaper delivery and other similar activities.

e. To bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by any insured; but this exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured;

f. To bodily injury or property damage which is either expected or intended from the standpoint of the insured;

g. To bodily injury or property damage caused directly or indirectly by:

(1) 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 (de jure or de facto), 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;

(2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; 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.

2. Under Coverage E - Personal Liability.

a. To liability assumed by the insured under any contract or agreement not in writing or under any contract or agreement in connection with the insured's business;

b. To bodily injury to any person, including a residence employee, if the insured has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided by the insured under any workmen's compensation or occupational disease law;

c. To property damage to property owned by the insured;

d. To property damage to property occupied or used by the insured or rented to or in the care, custody or control of the insured or as to which the insured is for any purpose exercising physical control;

e. To sickness, disease or death resulting therefrom of any residence employee unless written claim is made or suit is brought therefor against the insured within 36 months after the end of the policy term;

f. To bodily injury or property damage with respect to which any insured under this policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.

3. Under Coverage F - Medical Payments to Others

a. To bodily injury to any person, including a residence employee, if any person or organization has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided under any workmen's compensation or occupational disease law;

b. To bodily injury to:

(1) Any insured under subdivision 3 of the definition of "insured,"

(2) Any person, other than a residence employee, regularly residing on any part of the insured premises, or

(3) Any person while on the insured premises because a business is conducted or professional services are rendered thereon;

c. To bodily injury from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of the foregoing.

SECTION II - ADDITIONAL COVERAGES

1. Damage to Property of Others: This Company will, at its option, either pay for the actual cash value of property damaged or destroyed during the policy period by any insured, or repair or replace such property with other property of like quality and kind, but in no event shall this Company's limit of liability exceed $250 in any one occurrence.

This coverage does not apply to damage to or destruction of property:

a. Caused intentionally by any insured who has attained the age of 13;

b. Owned by or rented to any insured, any tenant of any insured or any resident of named insured's household;

c. Arising out of (i) any act or omission in connection with premises (other than the insured premises) owned, rented or controlled by any insured, (ii) business pursuits or professional services or (iii) the ownership, maintenance, operation, use, loading or unloading of any land motor vehicle, trailer or semi-trailer, farm machinery or equipment, aircraft or watercraft;

d. If insurance therefor is provided under Section I of this policy.

2. Personal Liability Claim Expenses: This Company will pay:

a. All expenses incurred by this Company and all costs taxed against the insured in any suit defended by this Company;

b. All premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but this Company shall have no obligation to apply for or furnish any such bonds;

c. All interest on the entire amount of any judgment which accrues after entry of the judgment and before this Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of this Company's liability thereon;

d. Reasonable expenses incurred by the insured at this Company's request, including actual loss of earnings (but not loss of other income) and vacation time or other benefit loss not to exceed $50 per day because of the insured's attendance at hearings or trials at such request.

Any expenses incurred by this Company under this provision shall not reduce the applicable limit of liability.

3. First Aid Expenses: In addition to this Company's limit of liability, this Company will pay expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this insurance applies.

4. Property in Control of the insured: Such insurance as is afforded under Coverage E - Personal Liability, applies to property damage to any insured premises and to house furnishings therein if such property damage arises out of fire, explosion, or smoke or smudge caused by sudden, unusual and faulty operation of any heating or cooking unit. Exclusion 2 d does not apply to this Additional Coverage.

5. Construction of New Residence: Such insurance as is afforded under Coverage E - Personal Liability, applies to bodily injury and property damage arising out of any vacant land owned by or rented to any insured on which a one or two family dwelling is being constructed for use by any insured as a residence. Such insurance as is afforded under Coverage F - Medical Payments to Others, applies to bodily injury sustained by any person while on such vacant land with the permission of any insured. This coverage does not apply to bodily injury to any employee, other than a residence employee, of any insured arising out of and in the course of his employment by any insured. Exclusion 1 e does not apply to this additional coverage.

SECTION II - CONDITIONS

1. Limits of Liability. Regardless of the number of:

a. Insureds under this insurance;

b. Persons or organizations who sustain bodily property damage;

c. Claims made or suits brought on account of bodily injury or property damage;

This Company's liability is limited as follows:

(1) Coverage E - Personal Liability. The limit of liability stated in the Declarations as applicable to "each occurrence" is the total limit of the Company's liability under Coverage E - Personal Liability for all damages as the result of any one occurrence.

(2) Coverage F - Medical Payments to Others. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability under Coverage F - Medical Payments to Others for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person," the total liability of the Company under Coverage F - Medical Payments to Others for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of liability stated in the Declarations as applicable to "each accident."

2. Severability of Insurance: The insurance afforded under Section II applies separately to each insured against whom claim is made or suit is brought except with respect to this Company's limit of liability.

3. Insured's Duties in the Event of Accident, Occurrence, Claim or Suit:

a. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

(1) In the event of an accident or occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to this Company or any of its authorized agents as soon as practicable.

(2) If claim is made or suit is brought against the insured, the insured shall immediately forward to this Company every demand, notice, summons or other process received by him or his representative.

(3) The insured shall cooperate with this Company and upon this Company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of bodily injury or property damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident.

b. Under Additional Coverages - Damage to Property of Others: When loss occurs, the insured shall give written notice as soon as practicable to this Company or any of its authorized agents and file sworn proof of loss with this Company within 60 days after the occurrence of loss. The insured shall exhibit the damaged property, if within his control, and cooperate with this Company in all matters pertaining to the loss or claims with respect thereto.

4. Injured Party's Duty in Case of Accident - Under Coverage F - Medical Payments to Others: The injured party or someone on his behalf shall:

a. Give this Company written proof of claim, under oath if required, as soon as practicable;

b. Execute authorizations enabling this Company to obtain copies of medical reports and records, and the injured party shall submit to physical examination by a physician selected by this Company at such times and as often as this Company may reasonably require.

5. Payment of Claim - Coverage F - Medical Payments to Others: This Company may pay the injured person or any person or organization rendering medical services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of any liability by any insured or this Company.

6. Suit Against This Company:

a. No suit or action shall lie against this Company, unless:

(1) As a condition precedent thereto there has been full compliance with all of the provisions and stipulations of this policy, and

(2) The amount of the insured's obligation to pay has been finally determined:

(a) By judgment against the insured after actual trial; or

(b) By written agreement of the insured, the claimant and this Company.

b. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded under this policy.

c. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability. This Company shall not be impleaded.

d. Bankruptcy or insolvency of the insured or his estate shall not relieve this Company of its obligations under this policy.

SECTION I AND SECTION II - CONDITIONS

1. Policy Term. This policy applies only to loss under Section I or bodily injury or property damage under Section II, which occurs during the policy term.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 10 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 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.

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

8. Subrogation. This insurance shall not be invalidated should the named insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property covered 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. Subrogation is not applicable to Coverage F - Medical Payments to Others and Additional Coverages - Damage to Property of Others.

9. Death of Named Insured. In the event of death of the named insured, the definition of "insured" is modified as follows:

a. The named insured shall mean:

(1) The spouse, if a resident of the household at the time of such death; and

(2) 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.

b. Insured shall also include:

(1) Any member of the deceased's household who was covered under this policy at the time of such death, but only while a resident of the insured premises; and

(2) 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.

10. Continuous Renewal. Subject to the consent of this Company, and subject to the premiums, rules and forms then in effect for this Company, this policy may be continued in force by payment of the required continuation premium for each successive policy term. Such continuation premium must be paid to the Company prior to the expiration of the then current policy term and if not so paid the policy shall terminate.

With respect to a mortgagee (or trustee) declared under this policy, this insurance will continue in force as to only the interest of the mortgagee (or trustee) for 10 days after written notice of termination to the mortgagee (or trustee), and shall then terminate.

11. Other Insurance. Except as provided in 11a and 11b below, if a loss covered by the policy is also covered by other insurance, 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.

a. With respect to Section II - Medical Payments to Others, this Other Insurance condition does not apply.

b. With respect to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any motor vehicle, recreational motor vehicle or watercraft to which this policy applies, this insurance under Coverage E - Personal Liability, shall be excess insurance over any other valid and collectible insurance available to the insured.

12. 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 pursuant thereto of the state wherein this policy is issued are hereby amended to conform to such statutes, rules and/or regulations.

DEFINITIONS

When used in this policy the following definitions apply:

"Insured" means:

1. The named insured stated in the Declarations of this policy;

2. If residents of the named insured's household, the spouse, the relatives of either, and any other person under the age of 21 in the care of any insured; and

3. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. With respect to animals or watercraft to which this insurance applies owned by any insured, any person or organization legally responsible therefor, except a person or organization using or having custody or possession of any such animal or watercraft in the course of his business or without the permission of the owner; and

b. With respect to any vehicle to which this insurance applies, any employee of any insured while engaged in the employment of the insured.

"Insured premises" means:

1. The residence premises described in the Declarations of this policy, and

2. Under Section II only:

a. Any other residence premises specifically named in this policy;

b. All other premises and private approaches thereto for use of the named insured or spouse in connection with the residence premises;

c. Any residence premises acquired by the named insured or spouse during the term of this policy;

d. Any premises which are not owned by any insured but where an insured may be temporarily residing;

e. Vacant land, other than farm land, owned by or rented to any insured; and

f. Individual or family cemetery plots or burial vaults.

"Residence premises" means:

1. A one or two family dwelling building, appurtenant structures, grounds and private approaches thereto; or

2. That portion of any other building occupied as a residence; provided that such premises are used as a private residence by the named insured or his spouse but excluding any portion of the premises used for business purposes.

"Business" means

1. A trade, profession or occupation, including farming, and the use of any premises or portion of the residence premises for any such purposes; and

2. The rental or holding for rental of the whole or any portion of the premises by any insured;

But business shall not include:

a. The occasional rental or holding for rental of the residence premises for dwelling purposes;

b. The rental or holding for rental of a portion of the residence premises for dwelling purposes unless for the accommodation of three or more roomers or boarders;

c. The rental or holding for rental of a portion of the residence premises for private garage purposes; or

d. The rental or holding for rental of a portion of the residence premises as an office, school or studio.

"Aircraft" means any machine or device capable of atmospheric flight except model airplanes.

The following definitions apply only to coverage afforded under Section II of this policy:

"Bodily injury" means bodily injury, sickness or disease, including care, loss of services and death resulting therefrom.

"Medical expenses" means expenses for necessary medical, surgical, x-ray, dental services, including prosthetic devices, ambulance, hospital, professional nursing and funeral services.

"Motor vehicle" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached thereto) but does not include, except while being towed by or carried on a motor vehicle, any of the following: utility, boat, camp or home trailer, recreational motor vehicle, crawler or farm type tractor, farm implement or, if not subject to motor vehicle registration, any equipment which is designed for use principally off public roads.

"Property damage" means injury to or destruction of tangible property, including loss of use thereof.

"Occurrence" means an accident, including injurious exposure to conditions, which results, during the policy term, in bodily injury or property damage.

"Recreational motor vehicle" means (i) a golf cart or snowmobile or (ii) if not subject to motor vehicle registration, any other land motor vehicle designed for recreational use off public roads.

"Residence employee" means an employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured's business.

EXHIBIT 7. MINIMUM STANDARDS OF CONTENT FOR A HOMEOWNERS POLICY - COMPREHENSIVE FORM.

SECTION I - COVERAGES

DESCRIPTION OF PROPERTY AND INTERESTS COVERED

COVERAGE A - DWELLING

This policy covers the described dwelling building, including additions in contact therewith, occupied principally as a private residence.

This coverage also includes:

1. If the property of the insured and when not otherwise covered, fixtures of the building pertaining to the service of the premises and while located thereon or temporarily elsewhere; (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.)

2. Materials and supplies located on the premises or adjacent thereto, intended for use in construction, alteration or repair of such dwelling.

COVERAGE B - APPURTENANT STRUCTURES

This policy covers structures (other than the described dwelling building, including additions in contact therewith) appertaining to the premises and located thereon.

This coverage also includes materials and supplies located on the premises or adjacent thereto, intended for use in the construction, alteration or repair of such structures.

This coverage excludes:

1. Structures used in whole or in part for business purposes; or

2. Structures rented or leased in whole or in part or held for such rental or lease (except structures used exclusively for private garage purposes) to other than a tenant of the described dwelling.

COVERAGE C - UNSCHEDULED PERSONAL PROPERTY

This policy covers unscheduled personal property owned or used by an insured, while anywhere in the world.

This coverage also includes, at the option of the named insured, personal property owned by others, while on the portion of any residential premises occupied by the insured, or owned by a residence employee while actually engaged in the service of an insured and while such property is in the physical custody of such residence employee away from the premises.

This Company shall not be liable for more than 10% of the limit of liability for Coverage C for unscheduled personal property ordinarily situated throughout the year at residences other than the described dwelling.

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 money, bullion, numismatic property, bank notes, gold, platinum and silver; provided, however, for the purpose of this limitation, goldware and gold-plated ware shall not be deemed to be gold and silverware and silver-plated ware shall not be deemed to be silver.

2. $500 in the aggregate on securities, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,500 in the aggregate for loss of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and furs including articles containing fur which represents its principal value; except this special limit of liability shall not apply to direct loss by fire, lightning, windstorm, hail, smoke, explosion, riot, civil commotion, falling aircraft or other falling objects, vehicle collision, vandalism and malicious mischief, and collapse of a building;

4. $1,000 in the aggregate on watercraft, including their trailers (whether licensed or not), furnishings, equipment and outboard motors; but this Company shall be liable only for direct loss by fire, lightning, explosion, smoke, riot, civil commotion, falling aircraft and other falling objects, vandalism or malicious mischief, collapse of a building, theft, and collision, upset or overturning of land vehicles. This coverage also applies to direct loss by windstorm or hail to rowboats and canoes on premises and to any property described in this subdivision while inside of a fully enclosed building;

5. $500 on trailers and campers, not otherwise provided for, whether licensed or not;

6. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns;

7. $500 in the aggregate for loss by theft of guns and related accessories.

This coverage excludes:

1. Animals, birds or fish;

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

3. Aircraft and parts;

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

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

6. 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 or boarders;

7. Business property while away from the described premises;

8. 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

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

COVERAGE D - ADDITIONAL LIVING EXPENSE

If a property loss covered under this policy renders the premises untenantable, this policy covers the necessary increase in living expense incurred by the named insured to continue as nearly as practicable the normal standard of living of the named insured's household for not exceeding the period of time required:

1. To repair or replace such damaged or destroyed property as soon as possible; or

2. For the named insured's household to become settled in permanent quarters; whichever is less.

This coverage also includes:

1. The fair rental value of any portion of the described dwelling or appurtenant structures covered under this policy, as furnished or equipped by the named insured, which is rented or held for rental by the named insured. The fair rental value shall not include charges and expenses that do not continue during the period of untenantability. Coverage shall be limited to the period of time required to restore, as soon as possible, the rented portion to the same tenantable condition;

2. The period of time, not exceeding two weeks, while access to the premises is prohibited by order of civil authority, as a direct result of damage to neighboring premises by a peril not otherwise excluded.

The periods described above shall not be limited by the expiration of this policy.

This coverage excludes expense due to cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This policy covers expenses incurred in the removal of all debris of the property covered hereunder occasioned by loss thereto for which coverage is afforded. Coverage will also be provided for the removal of fallen trees which cause damage to covered property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an additional 5.0% of that limit of liability will be available to cover debris removal expense.

2. 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 not otherwise excluded 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, and in particular the requirements that in case loss occurs the insured shall protect the property from further damage.

3. Trees, Shrubs and Other Plants. This Company shall be liable for loss to trees, shrubs, plants and lawns (except those grown for business purposes) only when the loss is caused by fire, lightning, explosion, riot, civil commotion, vandalism, malicious mischief, theft, aircraft, or vehicles not owned or operated by an occupant of the premises. This Company's liability for loss in any one occurrence under this provision shall not exceed in the aggregate for all such property 5.0% of the limit of liability of Coverage A nor more than $500 on any one tree, shrub or plant.

4. Fire Department Service Charge. This policy covers for an amount not exceeding $250 the named insured's liability, assumed by contract or agreement for fire department charges where the fire department is called because of fire in, on or exposing property insured hereunder, while located on the premises described. This coverage does not cover the named insured's liability, by contract or otherwise, to indemnify either a city, municipality or fire protection district, or any other person, firm or corporation against loss, claim or liability arising by reasons of the movement or functioning of fire apparatus or members of a fire department; or by reason of any accident arising out of the performance of services by any fire department. Coverage afforded under this clause applies only if the property is not located within the limits of the city, municipality or fire protection district furnishing such fire department response. This coverage shall not increase the applicable limit of liability under this policy.

5. Building Additions and Alterations. This policy covers under Coverage C building additions and alterations made by an insured to residences occupied by but not owned by the insured, for an amount not exceeding 10% of the limit of Coverage C. This coverage shall not increase the applicable limit of liability under this policy.

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. This loss deductible clause shall not apply to Coverage D - Additional Living Expense or Fire Department Service Charge.

SECTION I - PERILS INSURED AGAINST

This policy insures against all risks of physical loss to the property covered except as excluded or limited herein.

SECTION I - EXCLUSIONS

This policy does not insure against: Under Coverages A, B, and C (and under Coverage D - Additional Living Expense resulting from such loss):

1. Loss by wear and tear; marring or scratching; deterioration; inherent vice; latent defect; mechanical breakdown; rust; mold; wet or dry rot; contamination; smog; smoke from agricultural smudging or industrial operations; settling, cracking, shrinkage, bulging or expansion of pavements, patios, foundations, walls, floors, roofs or ceilings; birds, vermin, rodents, insects or domestic animals; unless loss by fire, smoke (other than smoke from agricultural smudging or industrial operations), explosion, collapse of a building, glass breakage or water not otherwise excluded ensues, then this policy shall cover only such ensuing loss. If loss by water not otherwise excluded ensues, this policy shall also cover the cost of tearing out and replacing of any part of the building covered required to effect repairs to the plumbing, heating or air conditioning system or domestic appliance but excluding loss to the system or appliance from which the water escapes;

2. Loss to the property covered at the premises or any other location, owned, rented, occupied or controlled by an insured, caused by, resulting from, contributed to or aggravated by any of the following:

a. Flood, surface water, waves, tidal water or tidal wave, 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 ensues, and this Company shall then be liable only for such ensuing loss, but these exclusions do not apply to loss by theft;

3. Loss by theft in or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

4. Loss to plumbing, heating or air conditioning systems or domestic appliances, or by discharge, leakage or overflow from such systems or appliances, caused by or resulting from freezing while the building covered is vacant, unoccupied, or under construction unless the insured shall have exercised due diligence with respect to maintaining heat in the building or unless such systems and appliances had been drained and the water supply shut off during such vacancy or unoccupancy;

5. Loss to fences, pavement, 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 or water whether driven by wind or not;

6. Loss occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) unless such liability is otherwise specifically assumed by endorsement hereon. However, this policy does cover the replacement of damaged glass, constituting a part of the building covered herein, with safety glazing material where required by any ordinance or law;

7. Loss 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, this Company will pay only for loss caused by the ensuing peril;

8. Loss by wind storm or hail to the following property unless liability therefor is assumed by endorsement hereon: (i) 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; (ii) fences; (iii) seawall, property line and similar walls; (iv) greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises; (v) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon;

9. 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;

10. 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; or

11. 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, 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." 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 contained below in Section I - Conditions.

Under Coverages A and B (and under Coverage D - Additional Living Expense resulting from such loss):

1. Loss 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;

2. Loss by vandalism and malicious mischief or glass breakage, if the property covered hereunder had been vacant beyond a period of 30 consecutive days immediately preceding the loss; or

3. Loss caused by continuous or repeated seepage or leakage of water or steam from within a plumbing, heating or air conditioning system or from within a domestic appliance which occurs over a period of weeks, months or years.

Under Coverage C:

1. Breakage of eyeglasses, glassware, statuary, marbles, bric-a-brac, porcelains and similar fragile articles, except jewelry, watches, bronzes, cameras and photographic lenses; but the foregoing exclusion shall not apply to loss caused by or resulting from fire, lightning, windstorm, hail, smoke (other than smoke from agricultural smudging or industrial operations), explosion, riot, civil commotion, falling aircraft, vehicle collision, vandalism and malicious mischief, collapse of a building or any part thereof, earthquake, water not otherwise excluded, theft or attempted theft, or sudden and accidental tearing asunder, cracking, burning or bulging of a steam or hot water heating system;

2. Loss caused by dampness of atmosphere or extremes of temperature unless such loss is directly caused by rain, snow, sleet or hail;

3. Damage to property (watches, jewelry and furs excepted) occasioned by or actually resulting from any work thereon in the course of any refinishing, renovating or repairing process; or

4. Arising out of or resulting from the theft of any credit card or automatic teller card or loss by forgery or alterations of any check, draft, promissory note, bill of exchange, or similar written promise, order or direction to pay a sum certain in money.

SECTION I - 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 or 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, and 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 - Coverages A and B. This condition shall be applicable to Coverages A and 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 condition 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 named insured may elect to disregard this condition in making claim hereunder, but such election shall not prejudice the named 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, damaged or stolen 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 - Coverages A and B only. (This entire clause is void unless the name of the mortgagee [or trustee] is inserted in the Declarations):

Loss, if any, under this policy, shall be payable to the mortgagee (or trustee), named on the first page of this policy, 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 purpose 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 accrued 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 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, 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, 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. Theft. Upon knowledge of loss by theft or of an occurrence which may give rise to such loss, the insured shall give immediate notice to this Company or any of its authorized agents and to the police.

SECTION II - LIABILITY AND MEDICAL PAYMENTS COVERAGES.

COVERAGE E - PERSONAL LIABILITY

This Company agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This Company shall have the right and duty, at its own expense, to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient. This Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of this Company's liability has been exhausted by payment of judgments or settlements.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

This Company agrees to pay all reasonable medical expenses, incurred within one year from the date of the accident, to or for each person who sustains bodily injury to which this insurance applies caused by an accident, while such person is:

1. On an insured premises with the permission of any insured; or

2. Elsewhere, if such bodily injury:

a. Arises out of a condition in the insured premises or the ways immediately adjoining,

b. Is caused by the activities of any insured, or by a residence employee in the course of his employment by any insured,

c. Is caused by an animal owned by or in the care of any insured, or

d. Is sustained by any residence employee and arises out of and in the course of his employment by any insured.

SECTION II - EXCLUSIONS

This policy does not apply:

1. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) Any aircraft; or

(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the residence premises if the motor vehicle is kept in dead storage on the residence premises; or

(3) Any recreational motor vehicle owned by any insured, if the bodily injury or property damage occurs away from the residence premises; but this subdivision (3) does not apply to golf carts while used for golfing purposes.

This exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured except while such employee is engaged in the operation or maintenance of aircraft;

b. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft:

(1) Owned by or rented to any insured if the watercraft has inboard-outboard motor power of more than 50 horsepower or is a sailing vessel with or without auxiliary power) 26 feet or more in overall length; or

(2) Powered by any outboard motor(s), singly or in combination of more than 25 total horsepower, if such outboard motor(s) is owned by any insured at the inception of this policy and not endorsed hereon, unless the insured reports in writing to this Company within 45 days after acquisition his intention to insure the outboard motor or combination of outboard motors, ownership of which was acquired prior to the policy term.

This exclusion does not apply to (i) bodily injury or property damage occurring on the residence premises or (ii) bodily injury to any residence employee arising out of and in the course of his employment by any insured;

c. To bodily injury or property damage arising out of the rendering of or failing to render professional services;

d. To bodily injury or property damage arising out of business pursuits of any insured except activities therein which are ordinarily incident to nonbusiness pursuits. Coverage is provided for incidental business activities of any insured for babysitting, caddying, lawn care, newspaper delivery and other similar activities.

e. To bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by any insured; but this exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured;

f. To bodily injury or property damage which is either expected or intended from the standpoint of the insured;

g. To bodily injury or property damage caused directly or indirectly by:

(1) 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 (de jure or de facto), 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 shall be conclusively presumed to be such a hostile or warlike action by such government, power, authority or forces;

(2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; 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.

2. Under Coverage E - Personal Liability:

a. To liability assumed by the insured under any contract or agreement not in writing or under any contract or agreement in connection with the insured's business;

b. To bodily injury to any person, including a residence employee, if the insured has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided by the insured under any workmen's compensation or occupational disease law;

c. To property damage to property owned by the insured;

d. To property damage to property occupied or used by the insured or rented to or in the care, custody or control of the insured or as to which the insured is for any purpose exercising physical control;

e. To sickness, disease or death resulting therefrom of any residence employee unless written claim is made or suit is brought therefor against the insured within 36 months after the end of the policy term;

f. To bodily injury or property damage with respect to which any insured under this policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.

3. Under Coverage F - Medical Payments to Others:

a. To bodily injury to any person, including a residence employee, if any person or organization has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided under any workmen's compensation or occupational disease law;

b. To bodily injury to:

(1) Any insured under subdivision 3 of the definition of "insured,"

(2) Any person, other than a residence employee, regularly residing on any part of the insured premises, or

(3) Any person while on the insured premises because a business is conducted or professional services are rendered thereon;

c. To bodily injury from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of the foregoing.

SECTION II - ADDITIONAL COVERAGES

1. Damage to Property of Others: This Company will, at its option, either pay for the actual cash value of property damaged or destroyed during the policy period by any insured, or repair or replace such property with other property of like quality and kind, but in no event shall this Company's limit of liability exceed $250 in any one occurrence. This coverage does not apply to damage or to destruction of property:

a. Caused intentionally by any insured who has attained the age of 13;

b. Owned by or rented to any insured, any tenant of any insured or any resident of named insured's household;

c. Arising out of (i) any act or omission in connection with premises (other than the insured premises) owned, rented or controlled by any insured, (ii) business pursuits or professional services or (iii) the ownership, maintenance, operation, use, loading or unloading of any land motor vehicle, trailer or semi-trailer, farm machinery or equipment, aircraft or watercraft;

d. If insurance therefor is provided under Section I of this policy.

2. Personal Liability Claim Expenses: This Company will pay:

a. All expenses incurred by this Company and all costs taxed against the insured in any suit defended by this Company;

b. All premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but this Company shall have no obligation to apply for or furnish any such bonds;

c. All interest on the entire amount of any judgment which accrues after entry of the judgment and before this Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of this Company's liability thereon;

d. Reasonable expenses incurred by the insured at this Company's request, including actual loss of earnings (but not loss of other income) and vacation time or other benefit loss not to exceed $50 per day because of the insured's attendance at hearings or trials at such request.

Any expenses incurred by this Company under this provision shall not reduce the applicable limit of liability.

3. First Aid Expenses: In addition to this Company's limit of liability, this Company will pay expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this insurance applies.

4. Property in Control of the insured: Such insurance as is afforded under Coverage E - Personal Liability, applies to property damage to any insured premises and to house furnishings therein if such property damage arises out of fire, explosion, or smoke or smudge caused by sudden, unusual and faulty operation of any heating or cooking unit. Exclusion 2 d does not apply to this additional coverage.

5. Construction of New Residence: Such insurance as is afforded under Coverage E - Personal Liability, applies to bodily injury and property damage arising out of any vacant land owned by or rented to any insured on which a one or two family dwelling is being constructed for use by any insured as a residence. Such insurance as is afforded under Coverage F - Medical Payments to Others, applies to bodily injury sustained by any person while on such vacant land with the permission of any insured. This coverage does not apply to bodily injury to any employee, other than a residence employee, of any insured arising out of and in the course of his employment by any insured. Exclusion 1 e does not apply to this additional coverage.

SECTION II - CONDITIONS

1. Limits of Liability. Regardless of the number of:

a. Insureds under this insurance;

b. Persons or organizations who sustain bodily injury or property damage;

c. Claims made or suits brought on account of bodily injury or property damage;

This Company's liability is limited as follows:

(1) Coverage E - Personal Liability. The limit of liability stated in the Declarations as applicable to "each occurrence" is the total limit of the Company's liability under Coverage E - Personal Liability for all damages as the result of any one occurrence.

(2) Coverage F - Medical Payments to Others. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability under Coverage F - Medical Payments to Others for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person," the total liability of the Company under Coverage F - Medical Payments to Others for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of liability stated in the Declarations as applicable to "each accident."

2. Severability of Insurance. The insurance afforded under Section II applies separately to each Insured against whom claim is made or suit is brought except with respect to this Company's limit of liability.

3. Insured's Duties in the Event of Accident, Occurrence, Claim or Suit:

a. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

(1) In the event of an accident or occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to this Company or any of its authorized agents as soon as practicable.

(2) If claim is made or suit is brought against the insured, the insured shall immediately forward to this Company every demand, notice, summons or other process received by him or his representative.

(3) The insured shall cooperate with this Company and upon this Company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of bodily injury or property damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident.

b. Under Additional Coverages - Damage to Property of Others: When loss occurs, the insured shall give written notice as soon as practicable to this Company or any of its authorized agents and file sworn proof of loss with this Company within 60 days after the occurrence of loss. The insured shall exhibit the damaged property, if within his control, and cooperate with this Company in all matters pertaining to the loss or claims with respect thereto.

4. Injured Party's Duty in Case of Accident - Under Coverage F - Medical Payments to Others: The injured party or someone on his behalf shall:

a. Give this Company written proof of claim, under oath if required, as soon as practicable;

b. Execute authorizations enabling this Company to obtain copies of medical reports and records, and the injured party shall submit to physical examination by a physician selected by this Company at such times and as often as this Company may reasonably require.

5. Payment of Claim - Coverage F - Medical Payments to Others: This Company may pay the injured person or any person or organization rendering medical services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of any liability by any insured or this Company.

6. Suit Against This Company:

a. No suit or action shall lie against this Company, unless:

(1) As a condition precedent thereto there has been full compliance with all of the provisions and stipulations of this policy, and

(2) The amount of the insured's obligation to pay has been finally determined:

(a) By judgment against the insured after actual trial; or

(b) By written agreement of the insured, the claimant and this Company.

b. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded under this policy.

c. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability. This Company shall not be impleaded.

d. Bankruptcy or insolvency of the insured or his estate shall not relieve this Company of its obligations under this policy.

SECTION I AND SECTION II - CONDITIONS

1. Policy Term. This policy applies only to loss under Section I or bodily injury or property damage under Section II, which occurs during the policy term.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 10 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.

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

8. Subrogation. This insurance shall not be invalidated should the named insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property covered 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. Subrogation is not applicable to Coverage F - Medical Payments to Others and Additional Coverages - Damage to Property of Others.

9. Death of Named Insured. In the event of death of the named insured, the definition of "insured" is modified as follows:

a. The named insured shall mean:

(1) The spouse, if a resident of the household at the time of such death; and

(2) 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.

b. Insured shall also include:

(1) Any member of the deceased's household who was covered under this policy at the time of such death, but only while a resident of the insured premises; and

(2) 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.

10. Continuous Renewal. Subject to the consent of this Company, and subject to the premiums, rules and forms then in effect for this Company, this policy may be continued in force by payment of the required continuation premium for each successive policy term. Such continuation premium must be paid to the Company prior to the expiration of the then current policy term and if not so paid the policy shall terminate.

With respect to a mortgagee (or trustee) declared under this policy, this insurance will continue in force as to only the interest of the mortgagee (or trustee) for 10 days after written notice of termination to the mortgagee (or trustee), and shall then terminate.

11. Other Insurance. Except as provided in 11a and 11b below, if a loss covered by the policy is also covered by other insurance, 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.

a. With respect to Section II - Medical Payments to Others, this Other Insurance condition does not apply.

b. With respect to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any motor vehicle, recreational motor vehicle or watercraft to which this policy applies, this insurance under Coverage E - Personal Liability, shall be excess insurance over any other valid and collectible insurance available to the insured.

12. 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.

DEFINITIONS

When used in this policy the following definitions apply:

"Insured" means:

1. The named insured stated in the Declarations of this policy;

2. If residents of the named insured's household, the spouse, the relatives of either, and any other person under the age of 21 in the care of any insured; and

3. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. With respect to animals or watercraft to which this insurance applies owned by any insured, any person or organization legally responsible therefor, except a person or organization using or having custody or possession of any such animal or watercraft in the course of his business or without the permission of the owner; and

b. With respect to any vehicle to which this insurance applies, any employee of any insured while engaged in the employment of the insured.

"Insured premises" means:

1. The residence premises described in the Declarations of this policy, and

2. Under Section II only:

a. Any other residence premises specifically named in this policy;

b. All other premises and private approaches thereto for use of the named insured or spouse in connection with the residence premises;

c. Any residence premises acquired by the named insured or spouse during the term of this policy;

d. Any premises which are not owned by any insured but where an insured may be temporarily residing;

e. Vacant land, other than farm land, owned by or rented to any insured; and

f. Individual or family cemetery plots or burial vaults.

"Residence premises" means:

1. A one or two family dwelling building, appurtenant structures, grounds and private approaches thereto; or

2. That portion of any other building occupied as a residence; provided that such premises are used as a private residence by the named insured or his spouse but excluding any portion of the premises used for business purposes.

"Business" means:

1. A trade, profession or occupation, including farming, and the use of any premises or portion of the residence premises for any such purposes; and

2. The rental or holding for rental of the whole or any portion of the premises by any insured;

But business shall not include:

a. The occasional rental or holding for rental of the residence premises for dwelling purposes;

b. The rental or holding for rental of a portion of the residence premises for dwelling purposes unless for the accommodation of three or more roomers or boarders;

c. The rental or holding for rental of a portion of the residence premises for private garage purposes; or

d. The rental or holding for rental of a portion of the residence premises as an office, school or studio.

"Aircraft" means any machine or device capable of atmospheric flight except model airplanes.

The following definitions apply only to coverage afforded under Section II of this policy:

"Bodily injury" means bodily injury, sickness or disease, including care, loss of services and death resulting therefrom.

"Medical expenses" means expenses for necessary medical, surgical, x-ray, dental services, including prosthetic devices, ambulance, hospital, professional nursing and funeral services.

"Motor vehicle" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached thereto) but does not include, except while being towed by or carried on a motor vehicle, any of the following: utility, boat, camp or home trailer, recreational motor vehicle, crawler or farm type tractor, farm implement or, if not subject to motor vehicle registration, any equipment which is designed for use principally off public roads.

"Property damage" means injury to or destruction of tangible property, including loss of use thereof.

"Occurrence" means an accident, including injurious exposure to conditions, which results, during the policy term, in bodily injury or property damage.

"Recreational motor vehicle" means (i) a golf cart or snowmobile or (ii) if not subject to motor vehicle registration, any other land motor vehicle designed for recreational use off public roads.

"Residence employee" means an employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured's business.

EXHIBIT 8. MINIMUM STANDARDS OF CONTENT FOR A HOMEOWNERS POLICY - CONDOMINIUM UNIT-OWNERS FORM.

SECTION I - COVERAGES

DESCRIPTION OF PROPERTY AND INTERESTS COVERED

COVERAGE C - UNSCHEDULED PERSONAL PROPERTY

This policy covers unscheduled personal property owned or used by an insured while it is anywhere in the world and, at the option of the named insured, owned by others while on the portion of the premises occupied exclusively by the insured.

This coverage also includes such unscheduled personal property while elsewhere than on the described premises, anywhere in the world:

1. At the option of the named insured,

a. Owned by a guest while in a residence occupied by an insured; or

b. Owned by a residence employee while actually engaged in the service of an insured and while such property is in the physical custody of such residence employee or in a residence occupied by an insured;

2. But the limit of this Company's liability for the unscheduled personal property away from the premises shall be an amount of insurance equal to 10% of the amount specified for Coverage C, but in no event less than $1,000.

3. If, during the term of this policy, the named insured removes unscheduled personal property covered under Coverage C from the premises to another location within the continental United States or the State of Hawaii, to be occupied as his principal residence, the limit of liability 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 unscheduled personal property away from the premises.

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

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 money, bullion, numismatic property, bank notes, gold, platinum and silver; provided, however, for the purpose of this limitation, goldware and gold plated ware shall not be deemed to be gold and silverware and silver-plated ware shall not be deemed to be silver.

2. $500 in the aggregate on securities, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,500 in the aggregate for loss by theft of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and furs including articles containing fur which represents its principal value;

4. $1,000 in the aggregate on watercraft, including their trailers (whether licensed or not), furnishings, equipment and outboard motors;

5. $500 on trailers and campers, not otherwise provided for, whether licensed or not;

6. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns;

7. $500 in the aggregate for loss by theft of guns and related accessories.

This coverage excludes:

1. Animals, birds or fish;

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

3. Aircraft and parts;

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

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

6. 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 or boarders;

7. Business property while away from the described premises;

8. 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

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

COVERAGE D - ADDITIONAL LIVING EXPENSE

If loss or damage by a peril insured against under this policy to property covered hereunder or to the building containing such property renders the premises untenantable, this policy covers the necessary increase in living expense incurred by the named insured to continue as nearly as practicable the normal standard of living of the named insured's household for not exceeding the period of time required:

1. To repair or replace such damaged or destroyed property as soon as possible; or

2. For the named insured's household to become settled in permanent quarters; whichever is less.

This coverage also includes the period of time, not exceeding two weeks, while access to the premises is prohibited by order of civil authority, as a direct result of damage to neighboring premises by a peril insured against.

The periods described above shall not be limited by the expiration of this policy.

This coverage excludes expense due to cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This policy covers expenses incurred in the removal of all debris of the property covered hereunder occasioned by loss thereto for which coverage is afforded. Coverage will also be provided for the removal of fallen trees which cause damage to covered property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an additional 5.0% of that limit of liability will be available to cover debris removal expense.

2. 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, and in particular the requirements that in case loss occurs the insured shall protect the property from further damage.

3. Trees, Shrubs and Other Plants. This Company shall be liable for loss to trees, shrubs, plants and lawns (except those grown for business purposes) only when the loss is caused by fire, lightning, explosion, riot, civil commotion, vandalism, malicious mischief, theft, aircraft, or vehicles not owned or operated by an occupant of the premises. This Company's liability for loss in any one occurrence under this provision shall not exceed in the aggregate for all such property 10% of the limit of liability of Coverage C nor more than $500 on any one tree, shrub or plant.

4. Fire Department Service Charge. This policy covers for an amount not exceeding $250 the named insured's liability, assumed by contract or agreement for fire department charges where the fire department is called because of fire in, on or exposing property insured hereunder, while located on the premises described. This coverage does not cover the named insured's liability, by contract or otherwise, to indemnify either a city, municipality or fire protection district, or any other person, firm or corporation against loss, claim or liability arising by reasons of the movement or functioning of fire apparatus or members of a fire department; or by reason of any accident arising out of the performance of services by any fire department. Coverage afforded under this clause applies only if the property is not located within the limits of the city, municipality or fire protection district furnishing such fire department response. This coverage shall not increase the applicable limit of liability under this policy.

5. Unit-owners Additions and Alterations. This policy covers, for an amount not exceeding $1,000, unit-owners additions and alterations, meaning: fixtures, installations or additions comprising the part of the building within the unfinished interior surfaces of the perimeter walls, floors and ceilings of individual condominium units as initially installed or replacements thereof in accordance with the original condominium plans and specifications or installed by or at the expense of the unit owner.

In the event such unit-owners additions and alterations are damaged or destroyed during the term of this policy by the peril(s) insured against, the liability of this Company shall be as follows:

a. If repaired or replaced within a reasonable time after such loss, actual expenses incurred (if any) by the named insured, which exceed any recovery for the benefit of the named insured for loss or damage to such additions and alterations from any insurance covering the interests of the unit-owners collectively of the condominium; or

b. If not repaired or replaced within a reasonable time after such loss, the actual cash value of the damaged or destroyed additions and alterations, less any recovery for the benefit of the named insured for loss or damage to such additions and alterations from any insurance covering the interests of the unit-owners collectively of the condominium.

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. This loss deductible clause shall not apply to Coverage D - Additional Living Expense or Fire Department Service Charge.

SECTION I - PERILS INSURED AGAINST

This policy insures against direct loss to the property covered by the following perils as defined and limited herein:

1. Fire or lightning.

2. Removal, meaning direct loss by removal of the property covered hereunder from premises endangered 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.

3. Windstorm or hail, excluding loss:

a. Caused by rain, snow, sand or dust, all whether driven by wind or not, unless the building 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 property covered therein 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;

b. To watercraft (except rowboats and canoes on premises) including their trailers, furnishings, equipment and outboard motors while such property is not inside fully enclosed buildings; or

c. To the following property unless liability therefor is assumed by endorsement hereon: (i) 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; (ii) fences; (iii) seawall, property line and similar walls; (iv) greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises; (v) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon.

4. Explosion.

5. Riot or civil commotion.

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

7. Vehicles.

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

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

10. Theft, meaning any act of stealing or attempt thereat, including loss of property from a known place under circumstances when a probability of theft exists. Unscheduled personal property contained in any bank, trust or safe deposit company, public warehouse or occupied dwelling not owned or occupied by or rented to an insured in which the property covered has been placed for safekeeping shall be considered as being on the described premises.

Upon knowledge of loss under this peril or of an occurrence which may give rise to a claim for such loss, the insured shall give immediate notice to this Company or any of its authorized agents and also to the police.

a. General Theft Exclusions. This policy does not apply to loss:

(1) If committed by an insured;

(2) In or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

(3) Arising out of or resulting from the theft of any credit card or automatic teller card or loss by forgery or alterations of any check, draft, promissory note, bill of exchange, or similar written promise, order or direction to pay a sum certain in money; or

(4) Of a precious or semi-precious stone from its setting.

b. Theft exclusions applicable while the described dwelling is rented to others:

This policy does not apply to loss from the described dwelling while the portion of the described dwelling customarily occupied exclusively by an insured is rented to others:

(1) Of money, bullion, silver, gold, platinum, numismatic property or bank notes;

(2) Of securities, accounts, manuscripts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, passports, railroad and other tickets or stamps, including philatelic property;

(3) Of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, silverware, goldware, pewterware, silver-plated ware and gold-plated ware: or any article of fur or article containing fur which represents its principal value; or

(4) Caused by a tenant, his employees or members of his household while renting the portion of the described dwelling customarily occupied exclusively by an insured.

c. Theft exclusions applicable to property away from the described premises:

This policy does not apply to loss away from the described premises of:

(1) Property while in any dwelling or premises thereof, owned, rented or occupied by an insured except while an insured is temporarily residing therein; however, property of a student who is an insured is covered while at a residence away from home if the student has been at that residence at any time during the 45 days immediately before the loss;

(2) Property while unattended in or on any motor vehicle or trailer, other than a public conveyance, unless the loss is the result of forcible entry into such vehicle while all doors, windows or other openings thereof are closed and locked, provided there are visible marks of forcible entry upon the exterior of such vehicle or the loss is the result of the theft of such vehicle which is not recovered within 30 days, but property shall not be considered unattended when the insured is required to surrender the keys of such vehicle to a bailee;

(3) Property while unattended in or on private watercraft unless the loss is the direct result of forcible entry into a securely locked compartment and provided there are visible marks of forcible entry upon the exterior of such compartment;

(4) Watercraft, their furnishings, equipment and outboard motors; or

(5) Trailers and campers whether licensed or not.

11. Falling objects, but excluding loss to property within a building, unless the building containing the property covered shall first sustain an actual damage to the exterior of the roof or walls by the falling object.

12. 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.

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

14. Sudden and accidental tearing asunder, cracking, burning or bulging of a steam or hot water heating system or of appliances for heating water, but not including loss caused by or resulting from freezing.

15. Accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system or from within a 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. Freezing of plumbing, heating and air conditioning systems and domestic appliances, but excluding loss caused by or resulting from freezing while that portion of the building normally occupied by the insured is vacant, unoccupied, or under construction, unless the insured shall have exercised due diligence with respect to maintaining heat in the building, or unless the plumbing and heating systems and domestic appliances had been drained and the water supply shut off during such vacancy or unoccupancy.

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

SECTION I - EXCLUSIONS

This policy does not insure against loss:

1. Occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) unless such liability is otherwise specifically assumed by endorsement hereon. However, this policy does cover the replacement of damaged glass, constituting a part of the building covered herein, with safety glazing material where required by any ordinance or law;

2. Caused by, resulting from, contributed to or aggravated by any earth movement, including but not limited to earthquake, volcanic eruption, landslide, mud flow, earth sinking, rising or shifting; unless loss by fire or explosion ensues, and this Company shall then be liable only for such ensuing loss, but this exclusion does not apply to loss by theft;

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

a. Flood, surface water, waves, tidal water or tidal wave, 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 ensues, and this Company shall then be liable for such ensuing loss, but these exclusions do not apply to loss by theft;

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, this Company will pay only for loss caused by the ensuing peril;

5. 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;

6. 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; or

7. 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, 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," 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 contained below in Section I - Conditions.

SECTION I - 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 proof 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. 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.

3. 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.

4. 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.

5. 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, damaged or stolen 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.

6. 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.

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

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

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

10. Nuclear Clause. The word "fire" in this policy 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, 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, 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.

SECTION II - LIABILITY AND MEDICAL PAYMENTS COVERAGES

COVERAGE E - PERSONAL LIABILITY

This Company agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This Company shall have the right and duty, at its own expense, to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient. This Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of this Company's liability has been exhausted by payment of judgments or settlements.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

This Company agrees to pay all reasonable medical expenses, incurred within one year from the date of the accident, to or for each person who sustains bodily injury to which this insurance applies caused by an accident, while such person is:

1. On an insured premises with the permission of any insured; or

2. Elsewhere, if such bodily injury

a. Arises out of a condition in the insured premises or the ways immediately adjoining,

b. Is caused by the activities of any insured, or by a residence employee in the course of his employment by any insured,

c. Is caused by an animal owned by or in the care of any insured, or

d. Is sustained by any residence employee and arises out of and in the course of his employment by any insured.

SECTION II - EXCLUSIONS

This policy does not apply:

1. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) Any aircraft; or

(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the residence premises if the motor vehicle is kept in dead storage on the residence premises; or

(3) Any recreational motor vehicle owned by any insured, if the bodily injury or property damage occurs away from the residence premises; but this subdivision (3) does not apply to golf carts while used for golfing purposes.

This exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured except while such employee is engaged in the operation or maintenance of aircraft;

b. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft:

(1) Owned by or rented to any insured if the watercraft has inboard or inboard-outboard motor power of more than 50 horsepower or is a sailing vessel (with or without auxiliary power) 26 feet or more in overall length; or

(2) Powered by any outboard motor(s), singly or in combination of more than 25 total horsepower, if such outboard motor(s) is owned by any insured at the inception of this policy and not endorsed hereon, unless the insured reports in writing to this Company within 45 days after acquisition his intention to insure the outboard motor or combination of outboard motors, ownership of which was acquired prior to the policy term.

This exclusion does not apply to (i) bodily injury or property damage occurring on the residence premises or (ii) bodily injury to any residence employee arising out of and in the course of his employment by any insured;

c. To bodily injury or property damage arising out of the rendering of or failing to render professional services;

d. To bodily injury or property damage arising out of business pursuits of any insured except activities therein which are ordinarily incident to nonbusiness pursuits. Coverage is provided for incidental business activities of any insured for babysitting, caddying, lawn care, newspaper delivery and other similar activities.

e. To bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by any insured; but this exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured;

f. To bodily injury or property damage which is either expected or intended from the standpoint of the insured;

g. To bodily injury or property damage caused directly or indirectly by:

(1) 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 (de jure or de facto), 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;

(2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; 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.

2. Under Coverage E - Personal Liability:

a. To liability assumed by the insured under any contract or agreement not in writing or under any contract or agreement in connection with the insured's business;

b. To bodily injury to any person, including a residence employee, if the insured has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided by the insured under any workmen's compensation or occupational disease law;

c. To property damage to property owned by the insured;

d. To property damage to property occupied by the insured or rented to or in the care, custody or control of the insured or as to which the insured is for any purpose exercising physical control;

e. To sickness, disease or death resulting therefrom of any residence employee unless written claim is made or suit is brought therefor against the insured within 36 months after the end of the policy term;

f. To bodily injury or property damage with respect to which any insured under this policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.

3. Under Coverage F - Medical Payments to Others:

a. To bodily injury to any person, including a residence employee, if any person or organization has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided under any workmen's compensation or occupational disease law;

b. To bodily injury to:

(1) Any insured under subdivision 3 of the definition of "insured,"

(2) Any person, other than a residence employee, regularly residing on any part of the insured premises, or

(3) Any person while on the insured premises because a business is conducted or professional services are rendered thereon;

c. To bodily injury from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequences of any of the foregoing.

SECTION II - ADDITIONAL COVERAGES

1. Damage to Property of Others: This Company will, at its option, either pay for the actual cash value of property damaged or destroyed during the policy period by any insured, or repair or replace such property it other property of like quality and kind, but in no event shall this Company's limit of liability exceed $250 in any one occurrence.

This coverage does not apply to damage to or destruction of property:

a. Caused intentionally by any insured who has attained the age of 13;

b. Owned by or rented to any insured, any tenant of any insured or any resident of named insured's household;

c. Arising out of (i) any act or omission in connection with premises (other than the insured premises) owned, rented or controlled by any insured, (ii) business pursuits or professional services or (iii) the ownership, maintenance, operation, use, loading or unloading of any land motor vehicle, trailer or semi-trailer, farm machinery or equipment, aircraft or watercraft;

d. If insurance therefor is provided under Section I of this policy.

2. Personal Liability Claim Expenses: This Company will pay:

a. All expenses incurred by this Company and all costs taxed against the insured in any suit defended by this Company;

b. All premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but this Company shall have no obligation to apply for or furnish any such bonds;

c. All interest on the entire amount of any judgment which accrues after entry of the judgment and before this Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of this Company's liability thereon;

d. Reasonable expenses incurred by the insured at this Company's request, including actual loss of earnings (but not loss of other income) and vacation time or other benefit loss not to exceed $50 per day because of the insured's attendance at hearings or trials at such request.

Any expenses incurred by this Company under this provision shall not reduce the applicable limit of liability.

3. First Aid Expenses: In addition to this Company's limit of liability, this company will pay expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this insurance applies.

4. Property in Control of the insured: Such insurance as is afforded under Coverage E - Personal Liability, applies to property damage to any insured premises and to house furnishings therein if such property damage arises out of fire, explosion, or smoke or smudge caused by sudden, unusual and faulty operation of any heating or cooking unit. Exclusion 2 d does not apply to this additional coverage.

5. Construction of New Residence: Such insurance as is afforded under Coverage E - Personal Liability, applies to bodily injury and property damage arising out of any vacant land owned by or rented to any insured on which a one or two family dwelling is being constructed for use by any insured as a residence. Such insurance as is afforded under Coverage F - Medical Payments to Others, applies to bodily injury sustained by any person while on such vacant land with the permission of any insured. This coverage does not apply to bodily injury to any employee, other than a residence employee, of any insured arising out of and in the course of his employment by any insured. Exclusion 1 e does not apply to this additional coverage.

SECTION II - CONDITIONS

1. Limits of Liability. Regardless of the number of:

a. Insureds under this insurance;

b. Persons or organizations who sustain bodily injury or property damage;

c. Claims made or suits brought on account of bodily injury or property damage;

This Company's liability is limited as follows:

(1) Coverage E - Personal Liability. The limit of liability stated in the Declarations as applicable to "each occurrence" is the total limit of the Company's liability under Coverage E - Personal Liability for all damages as the result of any one occurrence.

(2) Coverage F - Medical Payments to Others. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability under Coverage F - Medical Payments to Others for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person," the total liability of the Company under Coverage F - Medical Payments to Others for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of liability stated in the Declarations as applicable to "each accident."

2. Severability of Insurance: The insurance afforded under Section II applies separately to each insured against whom claim is made or suit is brought except with respect to this Company's limit of liability.

3. Insured's Duties in the Event of Accident, Occurrence, Claim or Suit:

a. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

(1) In the event of an accident or occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to this Company or any of its authorized agents as soon as practicable.

(2) If claim is made or suit is brought against the insured, the insured shall immediately forward to this Company every demand, notice, summons or other process received by him or his representative.

(3) The insured shall cooperate with this Company and upon this Company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of bodily injury or property damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident.

b. Under Additional Coverages - Damage to Property of Others: When loss occurs, the insured shall give written notice as soon as practicable to this Company or any of its authorized agents and file sworn proof of loss with this Company within 60 days after the occurrence of loss. The insured shall exhibit the damaged property, if within his control, and cooperate with this Company in all matters pertaining to the loss or claims with respect thereto.

4. Injured Party's Duty in Case of Accident - Under Coverage F - Medical Payments to Others: The injured party or someone on his behalf shall:

a. Give this Company written proof of claim, under oath if required, as soon as practicable;

b. Execute authorizations enabling this Company to obtain copies of medical reports and records, and the injured party shall submit to physical examination by a physician selected by this Company at such times and as often as this Company may reasonably require.

5. Payment of Claim - Coverage F - Medical Payments to Others: This Company may pay the injured person or any person or organization rendering medical services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of any liability by any insured or this Company.

6. Suit Against This Company:

a. No suit or action shall lie against this Company, unless:

(1) As a condition precedent thereto there has been full compliance with all of the provisions and stipulations of this policy, and

(2) The amount of the insured's obligation to pay has been finally determined:

(a) By judgment against the insured after actual trial; or

(b) By written agreement of the insured, the claimant and this Company.

b. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded under this policy.

c. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability. This Company shall not be impleaded.

d. Bankruptcy or insolvency of the insured or his estate shall not relieve this Company of its obligations under this policy.

SECTION I AND SECTION II - CONDITIONS

1. Policy Term. This policy applies only to loss under Section I or bodily injury or property damage under Section II, which occurs during the policy term.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 10 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.

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

8. Subrogation. This insurance shall not be invalidated should the named insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property covered 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. Subrogation is not applicable to Coverage F - Medical Payments to Others and Additional Coverages - Damage to Property of Others.

9. Death of Named Insured. In the event of death of the named insured, the definition of "insured" is modified as follows:

a. The named insured shall mean:

(1) The spouse, if a resident of the household at the time of such death; and

(2) 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.

b. Insured shall also include:

(1) Any member of the deceased's household who was covered under this policy at the time of death, but only while a resident of the insured premises; and

(2) 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.

10. Continuous Renewal. Subject to the consent of this Company, and subject to the premiums, rules and forms then in effect for this Company, this policy may be continued in force by payment of the required continuation premium for each successive policy term. Such continuation premium must be paid to the Company prior to the expiration of the then current policy term and if not so paid the policy shall terminate.

With respect to a mortgagee (or trustee) declared under this policy, this insurance will continue in force as to only the interest of the mortgagee (or trustee) for 10 days after written notice of termination to the mortgagee (or trustee), and shall then terminate.

11. Other Insurance. Except as provided in 11a, 11b and 11c below, if a loss covered by the policy is also covered by other insurance, 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.

a. With respect to Section II - Medical Payments to Others, this Other Insurance condition does not apply.

b. With respect to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any motor vehicle, recreational motor vehicle or watercraft to which this policy applies, this insurance under Coverage E - Personal Liability, shall be excess insurance over any other valid and collectible insurance available to the insured.

c. If at the time of loss there is other insurance in the name of the condominium association covering the same property covered by this policy, the insurance afforded by this policy shall be excess over the amount recoverable under such other insurance.

12. 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.

DEFINITIONS

When used in this policy the following definitions apply:

"Insured" means:

1. The named insured stated in the Declarations of this policy;

2. If residents of the named insured's household, the spouse, the relatives of either, and any other person under the age of 21 in the care of any insured; and

3. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. With respect to animals or watercraft to which this insurance applies owned by any insured, any person or organizations legally responsible therefor, except a person or organization using or having custody or possession of any such animal or watercraft in the course of his business or without the permission of the owner, and

b. With respect to any vehicle to which this insurance applies, any employee of any insured while engaged in the employment of the insured.

"Insured premises" means:

1. The residence premises described in the Declarations of this policy, and

2. Under Section II only:

a. Any other residence premises specifically named in this policy;

b. All other premises and private approaches thereto for use of the Named Insured or spouse in connection with the residence premises;

c. Any residence premises acquired by the named insured or spouse during the term of this policy;

d. Any premises which are not owned by any insured but where an insured may be temporarily residing;

e. Vacant land, other than farm land, owned by or rented to any insured; and

f. Individual or family cemetery plots or burial vaults.

"Residence premises" means:

1. A one or two family dwelling building, appurtenant structures, grounds and private approaches thereto; or

2. That portion of any other building occupied as a residence; provided that such premises are used as a private residence by the Named Insured or his spouse but excluding any portion of the premises used for business purposes.

"Business" means:

1. A trade, profession or occupation, including farming, and the use of any premises or portion of the residence premises for any such purposes; and

2. The rental or holding for rental of the whole or any portion of the premises by any insured;

But business shall not include:

a. The occasional rental or holding for rental of the residence premises for dwelling purposes;

b. The rental or holding for rental of a portion of the residence premises for dwelling purposes unless for the accommodation of three or more roomers or boarders;

c. The rental or holding for rental of a portion of the residence premises for private garage purposes; or

d. The rental or holding for rental of a portion of the residence premises as an office, school or studio.

"Aircraft" means any machine or device capable of atmospheric flight except model airplanes.

The following definitions apply only to coverage afforded under Section II of this policy:

"Bodily injury" means bodily injury, sickness or disease, including care, loss of service and death resulting therefrom.

"Medical expenses" means expenses for necessary medical, surgical, x-ray, dental services, including prosthetic devices, ambulance, hospital, professional nursing and funeral services.

"Motor vehicle" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached thereto) but does not include, except while being towed by or carried on a motor vehicle, any of the following: utility, boat, camp or home trailer, recreational motor vehicle, crawler or farm type tractor, farm implement or, if not subject to motor vehicle registration, any equipment which is designed for use principally off public roads.

"Property damage" means injury to or destruction of tangible property, including loss of use thereof.

"Occurrence" means an accident, including injurious exposure to conditions, which results, during the policy term, in bodily injury or property damage.

"Recreational motor vehicle" means (i) a golf cart or snowmobile or (ii) if not subject to motor vehicle registration, any other land motor vehicle designed for recreational use off public roads.

"Residence employee" means an employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured's business.

EXHIBIT 9. MINIMUM STANDARDS OF CONTENT FOR A MARKET VALUE POLICY.

SECTION I - COVERAGES

DESCRIPTION OF PROPERTY AND INTERESTS COVERED

COVERAGE A - DWELLING

This policy covers the described dwelling building, including additions in contact therewith, occupied principally as a private residence.

This coverage also includes:

1. If the property of the insured and when not otherwise covered, fixtures of the building pertaining to the service of the premises and while located thereon or temporarily elsewhere; (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.)

2. Materials and supplies located on the premises or adjacent thereto, intended for use in construction, alteration or repair of such dwelling.

COVERAGE B - APPURTENANT STRUCTURES

This policy covers structures (other than the described dwelling building, including additions in contact therewith) appertaining to the premises and located thereon.

This coverage also includes materials and supplies located on the premises or adjacent thereto, intended for use in the construction, alteration or repair of such structures.

This coverage excludes:

1. Structures used in whole or in part for business purposes; or

2. Structures rented or leased in whole or in part or held for such rental or lease (except structures used exclusively for private garage purposes) to other than a tenant of the described dwelling.

COVERAGE C - UNSCHEDULED PERSONAL PROPERTY

This policy covers unscheduled personal property owned or used by an insured while it is anywhere in the world and, at the option of the named insured, owned by others while on the portion of the premises occupied exclusively by the insured.

This coverage also includes such unscheduled personal property while elsewhere than on the described premises, anywhere in the world:

1. At the option of the named insured,

a. Owned by a guest while in a residence occupied by an insured; or

b. Owned by a residence employee while actually engaged in the service of an insured and while such property is in the physical custody of such residence employee or in a residence occupied by an insured;

2. But the limit of this Company's liability for the unscheduled personal property away from the premises shall be an amount of insurance equal to 10% of the amount specified for Coverage C, but in no event less than $1,000.

3. If, during the term of this policy, the named insured removes unscheduled personal property covered under Coverage C from the premises to another location within the continental United States or the State of Hawaii, to be occupied as his principal residence, the limit of liability 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 unscheduled personal property away from the premises.

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

Special Limits of Liability:

Under Coverage C, the most this Company will pay for any one loss by theft on the residence premises is $5,000, subject to the special limits of liability shown below.

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 money, bullion, numismatic property, bank notes, gold, platinum and silver; provided, however, for the purpose of this limitation, goldware and gold-plated ware shall not be deemed to be gold and silverware and silver-plated ware shall not be deemed to be silver.

2. $500 in the aggregate on securities, accounts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, railroad and other tickets or stamps, including philatelic property;

3. $1,500 in the aggregate for loss by theft of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and furs including articles containing fur which represents its principal value;

4. $1,000 in the aggregate on watercraft, including their trailers (whether licensed or not), furnishings, equipment and outboard motors;

5. $500 on trailers and campers, not otherwise provided for, whether licensed or not;

6. $500 in the aggregate on cemetery property including monuments, headstones, gravemarkers, and urns;

7. $500 in the aggregate for loss by theft of guns and related accessories.

This coverage excludes:

1. Animals, birds or fish;

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

3. Aircraft and parts;

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

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

6. 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 or boarders;

7. Business property while away from the described premises;

8. 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

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

COVERAGE D - ADDITIONAL LIVING EXPENSE

If a property loss covered under this policy renders the premises untenantable, this policy covers the necessary increase in living expense incurred by the Named Insured to continue as nearly as practicable the normal standard of living of the Named Insured's household for not exceeding the period of time required:

1. To repair or replace such damaged or destroyed property as soon as possible; or

2. For the named insured's household to become settled in permanent quarters; whichever is less.

This coverage also includes:

1. The fair rental value of any portion of the described dwelling or appurtenant structures covered under this policy, as furnished or equipped by the named insured, which is rented or held for rental by the named insured. The fair rental value shall not include charges and expenses that do not continue during the period of untenantability. Coverage shall be limited to the period of time required to restore, as soon as possible, the rented portion to the same tenantable condition;

2. The period of time, not exceeding two weeks, while access to the premises is prohibited by order of civil authority, as a direct result of damage to neighboring premises by a peril insured against.

The periods described above shall not be limited by the expiration of this policy.

This coverage excludes expense due to cancellation of any lease, or any written or oral agreement.

ADDITIONAL COVERAGES

1. Debris Removal. This policy covers expenses incurred in the removal of all debris of the property covered hereunder occasioned by loss thereto for which coverage is afforded. Coverage will also be provided for the removal of fallen trees which cause damage to covered property. When the amount payable for the actual damage to the property plus the expense for debris removal exceeds the limit of liability for the damaged property, an additional 5.0% of that limit of liability will be available to cover debris removal expense.

2. 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, and in particular the requirements that in case loss occurs the insured shall protect the property from further damage.

3. Trees, Shrubs and Other Plants. This Company shall be liable for loss to trees, shrubs, plants and lawns (except those grown for business purposes) only when the loss is caused by fire, lightning, explosion, riot, civil commotion, vandalism, malicious mischief, theft, aircraft, or vehicles not owned or operated by an occupant of the premises. This Company's liability for loss in any one occurrence under this provision shall not exceed in the aggregate for all such property 5.0% of the limit of liability of Coverage A nor more than $500 on any one tree, shrub or plant.

4. Fire Department Service Charge. This policy covers for an amount not exceeding $250 the named insured's liability, assumed by contract or agreement for fire department charges where the fire department is called because of fire in, on or exposing property insured hereunder, while located on the premises described. This coverage does not cover the named insured's liability, by contract or otherwise, to indemnify either a city, municipality or fire protection district, or any other person, firm or corporation against loss, claim or liability arising by reasons of the movement or functioning of fire apparatus or members of a fire department; or by reason of any accident arising out of the performance of services by any fire department. Coverage afforded under this clause applies only if the property is not located within the limits of the city, municipality or fire protection district furnishing such fire department response. This coverage shall not increase the applicable limit of liability under this policy.

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. This loss deductible clause shall not apply to Coverage D - Additional Living Expense or Fire Department Service Charge.

SECTION I - PERILS INSURED AGAINST

This policy insures against direct loss to the property covered by the following perils as defined and limited herein:

1. Fire or lightning, excluding any loss resulting from any electrical injury or disturbance to electrical appliances, devices, fixtures or wiring caused by electrical currents artificially generated, unless fire ensues and then only for the loss caused by such ensuing fire.

2. Removal, meaning direct loss by removal of the property covered hereunder from premises endangered 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.

3. Windstorm 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;

b. To watercraft (except rowboats and canoes on premises) including their trailers, furnishings, equipment and outboard motors while such property is not inside fully enclosed buildings; or

c. To the following property unless liability therefor is assumed by endorsement hereon: (i) 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; (ii) fences; (iii) seawall, property line and similar walls; (iv) greenhouses, hothouses, slathouses, trellises, pergolas, cabanas and outdoor equipment pertaining to the service of the premises; (v) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon.

4. Explosion, including direct loss resulting from the explosion of accumulated gases or unconsumed fuel within the fire box (or combustion chamber) of any fired vessel or within the flues or passages which conduct the gases of combustion therefrom. This Company shall not be liable for loss by explosion of steam boilers, steam pipes, steam turbines or steam engines, if owned by, leased by or operated under the control of the insured.

The following are not explosions within the intent or meaning of this peril:

a. Shock waves caused by aircraft, generally known as "sonic boom,"

b. Electric arcing,

c. Rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown,

d. Water hammer,

e. Rupture or bursting of water pipes, or

f. Rupture, bursting or operation of pressure relief devices.

5. Riot or civil commotion.

6. Vehicles or aircraft, meaning only direct loss resulting from actual physical contact of a land vehicle or aircraft, including self-propelled missiles or spacecraft, with property covered hereunder or with the building containing the property covered, and direct loss by objects falling from aircraft; but excluding loss:

a. By any vehicle owned or operated by an occupant of the premises;

b. By any vehicle to fences, driveways or walks; or

c. To any motor vehicle or trailer.

7. Smoke, meaning only direct loss from smoke due to a sudden, unusual and faulty operation of any heating or cooking unit in or on the described premises but excluding smoke from fireplaces.

8. Vandalism or malicious mischief, meaning only the wilful and malicious damage to or destruction of the property covered, but excluding loss if the described dwelling had been vacant beyond a period of 30 consecutive days immediately preceding the loss.

9. Breakage of glass constituting a part of the building covered hereunder, including glass in storm doors and storm windows, but excluding loss if the building covered had been vacant beyond a period of 30 consecutive days, immediately preceding the loss. This Company shall not be liable for loss to glass for an amount exceeding $50 in any one occurrence.

10. Theft, meaning any act of stealing or attempt thereat. Unscheduled personal property contained in any bank, trust or safe deposit company, public warehouse or occupied dwelling not owned or occupied by or rented to an insured in which the property covered has been placed for safekeeping shall be considered as being on the described premises.

Upon knowledge of loss under this peril or of an occurrence which may give rise to a claim for such loss, the insured shall give immediate notice to this Company or any of its authorized agents and also to the police.

a. General Theft Exclusions. This policy does not apply to loss:

(1) If committed by an insured;

(2) In or to a dwelling under construction or of materials or supplies therefor until completed and occupied;

(3) Arising out of or resulting from the theft of any credit card or automatic teller card or loss by forgery or alterations of any check, draft, promissory note, bill of exchange, or similar written promise, order or direction to pay a sum certain in money; or

(4) Of a precious or semi-precious stone from its setting.

b. Theft exclusions applicable while the described dwelling is rented to others:

This policy does not apply to loss from the described dwelling while the portion of the described dwelling customarily occupied exclusively by an insured is rented to others:

(1) Of money, bullion, silver, gold, platinum, numismatic property or bank notes;

(2) Of securities, accounts, manuscripts, bills, deeds, evidences of debt, letters of credit, notes other than bank notes, passports, railroad and other tickets or stamps, including philatelic property;

(3) Of jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, silverware, goldware, pewterware, silver-plated ware and gold-plated ware; or any article of fur or article containing fur which represents its principal value; or

(4) Caused by a tenant, his employees or members of his household while renting the portion of the described dwelling customarily occupied exclusively by an insured.

c. Theft exclusions applicable to property away from the described premises:

This policy does not apply to loss away from the described premises of:

(1) Property while in any dwelling or premises thereof, owned, rented or occupied by an insured except while an insured is temporarily residing therein; however, property of a student who is an insured is covered while at a residence away from home if the student has been at that residence at any time during the 45 days immediately before the loss;

(2) Property while unattended in or on any motor vehicle or trailer, other than a public conveyance, unless the loss is the result of forcible entry into such vehicle while all doors, windows or other openings thereof are closed and locked, provided there are visible marks of forcible entry upon the exterior of such vehicle, but property shall not be considered unattended when the insured is required to surrender the keys of such vehicle to a bailee;

(3) Property while unattended in or on private watercraft unless the loss is the direct result of forcible entry into securely locked compartment and provided there are visible marks of forcible entry upon the exterior of such compartment;

(4) Watercraft, their furnishings, equipment and outboard motors; or

(5) Trailers and campers whether licensed or not.

SECTION I - EXCLUSIONS

This policy does not insure against loss:

1. Occasioned directly or indirectly by enforcement of any ordinance or law regulating the construction, repair or demolition of building(s) or structure(s) unless such liability is otherwise specifically assumed by endorsement hereon. However, this policy does cover the replacement of damaged glass, constituting a part of the building covered herein, with safety glazing material where required by any ordinance or law;

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 or explosion ensues, and this Company shall then be liable only for such ensuing loss;

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

a. Flood, surface water, waves, tidal water or tidal wave, 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 ensues, and this Company shall then be liable only for such ensuing loss, but these exclusions do not apply to loss by theft;

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, this Company will pay only for loss caused by the ensuing peril;

5. 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;

6. 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 risk of contraband or illegal transportation or trade; or

7. 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, 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." 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 contained below in Section I - Conditions.

SECTION I - 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 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. Loss Settlement - Coverages A and B.

This condition shall be applicable to Coverages A and 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. Repair Cost Settlement. This Company will pay the actual cost of repairing or replacing the damaged property without deduction for depreciation, using generally accepted repair practices and materials currently in common use. The type of materials and repair practices will be agreed upon by the named insured and this Company. If no agreement can be reached, settlement will be on an actual cash value basis.

Payment will not exceed the smaller of the following amounts:

(1) The applicable limit of liability;

(2) The repair cost of that part of the dwelling and appurtenant structures damaged;

(3) The amount actually and necessarily spent to repair the damaged dwelling and appurtenant structures.

b. Actual Cash Value Settlement. This means there may be deduction for depreciation.

(1) If the named insured decides not to repair or replace the damaged property, settlement will be on an actual cash value basis;

(2) Payment will never exceed the applicable limit of liability;

(3) The named insured may make a claim for any additional liability under the Repair Cost provision within 180 days after the loss if the actual repair or replacement is completed.

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, damaged or stolen 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 another 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 - Coverages A and B only. (This entire clause is void unless the name of the mortgagee [or trustee] is inserted in the Declarations):

Loss, if any, under this policy, shall be payable to the mortgagee (or trustee), named on the first page of this policy, 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 accrued 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 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, 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, 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.

SECTION II - LIABILITY AND MEDICAL PAYMENTS COVERAGES

COVERAGE E - PERSONAL LIABILITY

This Company agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence. This company shall have the right and duty, at its own expense, to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent, but may make such investigation and settlement of any claim or suit as it deems expedient. This Company shall not be obligated to pay any claim or judgment or to defend any suit after the applicable limit of this Company's liability has been exhausted by payment of judgments or settlements.

COVERAGE F - MEDICAL PAYMENTS TO OTHERS

This Company agrees to pay all reasonable medical expenses, incurred within one year from the date of the accident, to or for each person who sustains bodily injury to which this insurance applies caused by an accident, while such person is:

1. On an insured premises with the permission of any insured; or

2. Elsewhere, if such bodily injury

a. Arises out of a condition in the insured premises or the ways immediately adjoining,

b. Is caused by the activities of any insured, or by a residence employee in the course of his employment by any insured,

c. Is caused by an animal owned by or in the care of any insured, or

d. Is sustained by any residence employee and arises out of and in the course of his employment by any insured.

SECTION II - EXCLUSIONS

This policy does not apply:

1. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of:

(1) Any aircraft; or

(2) Any motor vehicle owned or operated by, or rented or loaned to any insured; but this subdivision (2) does not apply to bodily injury or property damage occurring on the residence premises if the motor vehicle is kept in dead storage on the residence premises; or

(3) Any recreational motor vehicle owned by any insured, if the bodily injury or property damage occurs away from the residence premises; but this subdivision (3) does not apply to golf carts while used for golfing purposes.

This exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured except while such employee is engaged in the operation or maintenance of aircraft;

b. To bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any watercraft:

(1) Owned by or rented to any insured if the watercraft has inboard or inboard-outboard motor power of more than 50 horsepower or is a sailing vessel (with or without auxiliary power) 26 feet or more in overall length; or

(2) Powered by any outboard motor(s), singly or in combination of more than 25 total horsepower, if such outboard motor(s) is owned by any insured at the inception of this policy and not endorsed hereon, unless the insured reports in writing to this Company within 45 days after acquisition his intention to insure the outboard motor or combination of outboard motors, ownership of which was acquired prior to the policy term.

This exclusion does not apply to (i) bodily injury or property damage occurring on the residence premises or (ii) bodily injury to any residence employee arising out of and in the course of his employment by any insured;

c. To bodily injury or property damage arising out of the rendering of or failing to render professional services;

d. To bodily injury or property damage arising out of business pursuits of any insured except activities therein which are ordinarily incident to nonbusiness pursuits. Coverage is provided for incidental business activities of any insured for babysitting, caddying, lawn care, newspaper delivery and other similar activities.

e. To bodily injury or property damage arising out of any premises, other than an insured premises, owned, rented or controlled by any insured; but this exclusion does not apply to bodily injury to any residence employee arising out of and in the course of his employment by any insured;

f. To bodily injury or property damage which is either expected or intended from the standpoint of the insured;

g. To bodily injury or property damage caused directly or indirectly by:

(1) 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 (de jure or de facto), 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;

(2) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence; 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.

2. Under Coverage E - Personal Liability:

a. To liability assumed by the insured under any contract or agreement not in writing or under any contract or agreement in connection with the insured's business;

b. To bodily injury to any person, including a residence employee, if the insured has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided by the insured under any workmen's compensation or occupational disease law;

c. To property damage to property owned by the insured;

d. To property damage to property occupied or used by the insured or rented to or in the care, custody or control of the insured or as to which the insured is for any purpose exercising physical control;

e. To sickness, disease or death resulting therefrom of any residence employee unless written claim is made or suit is brought therefor against the insured within 36 months after the end of the policy term;

f. To bodily injury or property damage with respect to which any insured under this policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability.

3. Under Coverage F - Medical Payments to Others:

a. To bodily injury to any person, including a residence employee, if any person or organization has a policy providing workmen's compensation or occupational disease benefits for such bodily injury or if benefits for such bodily injury are in whole or in part either payable or required to be provided under any workmen's compensation or occupational disease law;

b. To bodily injury to:

(1) Any insured under subdivision 3 of the definition of "insured,"

(2) Any person, other than a residence employee, regularly residing on any part of the insured premises, or

(3) Any person while on the insured premises because a business is conducted or professional services are rendered thereon.

c. To bodily injury from any nuclear reaction, radiation or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of the foregoing.

SECTION II - ADDITIONAL COVERAGES

1. Damage to Property of Others: This Company will, at its option, either pay for the actual cash value of property damaged or destroyed during the policy period by any insured, or repair or replace such property with other property of like quality and kind, but in no event shall this Company's limit of liability exceed $250 in any one occurrence.

This coverage does not apply to damage to or destruction of property:

a. Caused intentionally by any insured who has attained the age of 13;

b. Owned by or rented to any insured, any tenant of any insured or any resident of named insured's household;

c. Arising out of (i) any act or omission in connection with premises (other than the insured premises) owned, rented or controlled by any insured, (ii) business pursuits or professional services or (iii) the ownership, maintenance, operation, use, loading or unloading of any land motor vehicle, trailer or semi-trailer, farm machinery or equipment, aircraft or watercraft;

d. If insurance therefor is provided under Section I of this policy.

2. Personal Liability Claim Expenses: This Company will pay:

a. All expenses incurred by this Company and all costs taxed against the insured in any suit defended by this Company;

b. All premiums on appeal bonds required in any such suit, premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this policy, and the cost of bail bonds required of the insured because of accident arising out of the use of any vehicle to which this policy applies, not to exceed $250 per bail bond, but this Company shall have no obligation to apply for or furnish any such bonds;

c. All interest on the entire amount of any judgment which accrues after entry of the judgment and before this Company has paid or tendered or deposited in court that part of the judgment which does not exceed the limit of this Company's liability thereon;

d. Reasonable expenses incurred by the insured at this Company's request, including actual loss of earnings (but not loss of other income) and vacation time or other benefit loss not to exceed $50 per day because of the insured's attendance at hearings or trials at such request.

Any expenses incurred by this Company under this provision shall not reduce the applicable limit of liability.

3. First Aid Expenses: In addition to this Company's limit of liability, this Company will pay expenses incurred by the insured for first aid to others at the time of an accident, for bodily injury to which this insurance applies.

4. Property in Control of the insured: Such insurance as is afforded under Coverage E - Personal Liability, applies to property damage to any insured premises and to house furnishings therein if such property damage arises out of fire, explosion, or smoke or smudge caused by sudden, unusual and faulty operation of any heating or cooking unit. Exclusion 2 d does not apply to this Additional Coverage.

5. Construction of New Residence: Such insurance as is afforded under Coverage E - Personal Liability, applies to bodily injury and property damage arising out of any vacant land owned by or rented to any insured on which a one or two family dwelling is being constructed for use by any insured as a residence. Such insurance as is afforded under Coverage F - Medical Payments to Others, applies to bodily injury sustained by any person while on such vacant land with the permission of any insured. This coverage does not apply to bodily injury to any employee, other than a residence employee, of any insured arising out of and in the course of his employment by any insured. Exclusion 1 e does not apply to this Additional Coverage.

SECTION II - CONDITIONS

1. Limits of Liability. Regardless of the number of:

a. Insureds under this insurance;

b. Persons or organizations who sustain bodily injury or property damage;

c. Claims made or suits brought on account of bodily injury or property damage;

This Company's liability is limited as follows:

(1) Coverage E - Personal Liability. The limit of liability stated in the Declarations as applicable to "each occurrence" is the total limit of the Company's liability under Coverage E - Personal Liability for all damages as the result of any one occurrence.

(2) Coverage F - Medical Payments to Others. The limit of liability stated in the Declarations as applicable to "each person" is the limit of the Company's liability under Coverage F - Medical Payments to Others for all medical expense for bodily injury to any one person as the result of any one accident; but subject to the above provision respecting "each person," the total liability of the Company under Coverage F - Medical Payments to Others for all medical expense for bodily injury to two or more persons as the result of any one accident shall not exceed the limit of liability stated in the Declarations as applicable to "each accident."

2. Severability of Insurance: The insurance afforded under Section II applies separately to each insured against whom claim is made or suit is brought except with respect to this Company's limit of liability.

3. Insured's Duties in the Event of Accident, Occurrence, Claim or Suit:

a. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

(1) In the event of an accident or occurrence, written notice containing particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the insured to this Company or any of its authorized agents as soon as practicable.

(2) If claim is made or suit is brought against the insured, the insured shall immediately forward to this Company every demand, notice, summons or other process received by him or his representative.

(3) The insured shall cooperate with this Company and upon this Company's request, assist in making settlements, in the conduct of suits and in enforcing any right of contribution or indemnity against any person or organization who may be liable to the insured because of bodily injury or property damage with respect to which insurance is afforded under this policy; and the insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for first aid to others at the time of accident.

b. Under Additional Coverages - Damage to Property of Others: When loss occurs, the insured shall give written notice as soon as practicable to this Company or any of its authorized agents and file sworn proof of loss with this Company within 60 days after the occurrence of loss. The insured shall exhibit the damaged property, if within his control, and cooperate with this Company in all matters pertaining to the loss or claims with respect thereto.

4. Injured Party's Duty in Case of Accident: Under Coverage F - Medical Payments to Others: The injured party or someone on his behalf shall:

a. Give this Company written proof of claim, under oath if required, as soon as practicable;

b. Execute authorizations enabling this Company to obtain copies of medical reports and records, and the injured party shall submit to physical examination by a physician selected by this Company at such times and as often as this Company may reasonably require.

5. Payment of Claim: Coverage F - Medical Payments to Others: This Company may pay the injured person or any person or organization rendering medical services and the payment shall reduce the amount payable hereunder for such injury. Payment hereunder shall not constitute an admission of any liability by any insured or this Company.

6. Suit Against This Company:

a. No suit or action shall lie against this Company, unless:

(1) As a condition precedent thereto there has been full compliance with all of the provisions and stipulations of this policy, and

(2) The amount of the insured's obligation to pay has been finally determined:

(a) By judgment against the insured after actual trial; or

(b) By written agreement of the insured, the claimant and this Company.

b. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded under this policy.

c. No person or organization shall have any right under this policy to join the Company as a party to any action against the insured to determine the insured's liability. This Company shall not be impleaded.

d. Bankruptcy or insolvency of the insured or his estate shall not relieve this Company of its obligations under this policy.

SECTION I AND SECTION II - CONDITIONS

1. Policy Term. This policy applies only to loss under Section I or bodily injury or property damage under Section II, which occurs during the policy term.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 10 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.

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

8. Subrogation. This insurance shall not be invalidated should the named insured waive in writing prior to a loss any or all right of recovery against any party for loss occurring to the property covered 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. Subrogation is not applicable to Coverage F - Medical Payments to Others and Additional Coverages - Damage to Property of Others.

9. Death of Named Insured. In the event of death of the named insured, the definition of "insured" is modified as follows:

a. The named insured shall mean:

(1) The spouse, if a resident of the household at the time of such death; and

(2) 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.

b. Insured shall also include:

(1) Any member of the deceased's household who was covered under this policy at the time of such death, but only while a resident of the insured premises; and

(2) 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.

10. Continuous Renewal. Subject to the consent of this Company, and subject to the premiums, rules and forms then in effect for this Company, this policy may be continued in force by payment of the required continuation premium for each successive policy term. Such continuation premium must be paid to the Company prior to the expiration of the then current policy term and if not so paid the policy shall terminate.

With respect to a mortgagee (or trustee) declared under this policy, this insurance will continue in force as to only the interest of the mortgagee (or trustee) for 10 days after written notice of termination to the mortgagee (or trustee), and shall then terminate.

11. Other Insurance. Except as provided in 11a and 11b below, if a loss covered by the policy is also covered by other insurance, 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.

a. With respect to Section II - Medical Payments to Others, this Other Insurance condition does not apply.

b. With respect to bodily injury or property damage arising out of the ownership, maintenance, operation, use, loading or unloading of any motor vehicle, recreational motor vehicle or watercraft to which this policy applies, this insurance under Coverage E - Personal Liability, shall be excess insurance over any other valid and collectible insurance available to the insured.

12. 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.

DEFINITIONS

When used in this policy the following definitions apply:

"Insured" means:

1. The named insured stated in the Declarations of this policy;

2. If residents of the named insured's household, the spouse, the relatives of either, and any other person under the age of 21 in the care of any insured; and

3. Under Coverage E - Personal Liability and Coverage F - Medical Payments to Others:

a. With respect to animals or watercraft to which this insurance applies owned by any insured, any person or organization legally responsible therefor, except a person or organization using or having custody or possession of any such animal or watercraft in the course of his business or without the permission of the owner; and

b. With respect to any vehicle to which this insurance applies, any employee of any insured while engaged in the employment of the insured.

"Insured premises" means:

1. The residence premises described in the Declarations of this policy, and

2. Under Section II only:

a. Any other residence premises specifically named in this policy;

b. All other premises and private approaches thereto for use of the Named Insured or spouse in connection with the residence premises;

c. Any residence premises acquired by the named insured or spouse during the term of this policy;

d. Any premises which are not owned by any insured but where an insured may be temporarily residing;

e. Vacant land, other than farm land, owned by or rented to any insured; and

f. Individual or family cemetery plots or burial vaults.

"Residence premises" means:

1. A one or two family dwelling building, appurtenant structures, grounds and private approaches thereto; or

2. That portion of any other building occupied as a residence; provided that such premises are used as a private residence by the named insured or his spouse but excluding any portion of the premises used for business purposes.

"Business" means

1. A trade, profession or occupation, including farming, and the use of any premises or portion of the residence premises for any such purposes; and

2. The rental or holding for rental of the whole or any portion of the premises by any insured;

But business shall not include:

a. The occasional rental or holding for rental of the residence premises for dwelling purposes;

b. The rental or holding for rental of a portion of the residence premises for dwelling purposes unless for the accommodation of three or more roomers or boarders;

c. The rental or holding for rental of a portion of the residence premises for private garage purposes; or

d. The rental or holding for rental of a portion of the residence premises as an office, school or studio.

"Aircraft" means any machine or device capable of atmospheric flight except model airplanes.

The following definitions apply only to coverage afforded under Section II of this policy:

"Bodily injury" means bodily injury, sickness or disease, including care, loss of services and death resulting therefrom.

"Medical expenses" means expenses for necessary medical, surgical, x-ray, dental services, including prosthetic devices, ambulance, hospital, professional nursing and funeral services.

"Motor vehicle" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads (including any machinery or apparatus attached thereto) but does not include, except while being towed by or carried on a motor vehicle, any of the following: utility, boat, camp or home trailer, recreational motor vehicle, crawler or farm type tractor, farm implement or, if not subject to motor vehicle registration, any equipment which is designed for use principally off public roads.

"Property damage" means injury to or destruction of tangible property, including loss of use thereof.

"Occurrence" means an accident, including injurious exposure to conditions, which results, during the policy term, in bodily injury or property damage.

"Recreational motor vehicle" means (i) a golf cart or snowmobile or (ii) if not subject to motor vehicle registration, any other land motor vehicle designed for recreational use off public roads.

"Residence employee" means an employee of any insured whose duties are in connection with the maintenance or use of the insured premises, including the performance of household or domestic services, or who performs elsewhere duties of a similar nature not in connection with any insured's business.



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.