Landlord Insurance - Policy wording September 2014

 
Landlord Insurance - Policy wording September 2014
Landlord Insurance

                     Policy wording
                     September 2014
Contents

Welcome to AXA                                                      3
Your policy                                                         3
Important phone numbers                                             4
Meanings of defined terms                                           6
Policy conditions                                                   7

Sections of cover
Buildings section                                                  12
Rental income section                                              28
Property owners liability section                                  34
Employers’ liability section                                       42
Terrorism insurance section                                        47
Landlord’s contents section                                        50

Making a complaint                                                 57

    Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
    for their meanings
2
Welcome to AXA

Thank you for choosing AXA                   Headings have been used for your
                                             guidance and to help you understand
Please read carefully all documents
                                             the cover provided. The headings do not
that we have provided and keep them in
                                             form part of the contract.
a safe place.
                                             To help you understand the cover
If you have any questions, need anything
                                             provided we have added ‘What is
explaining or believe this contract does
                                             covered’ and ‘What is not covered’.
not meet your needs, please contact us.
                                             Under the heading ‘What is covered’
                                             we give information on the insurance
Your policy                                  provided. This must be read with ‘What
This policy is a contract of insurance       is not covered’, the policy conditions
between you and us.                          and the section conditions at all times.
The information, or any declaration,         Under the heading ‘What is not covered’
which you or anyone on your behalf           we draw your attention to what is
has provided to us in applying for the       excluded from your policy.
insurance together with your policy,
forms the basis of the contract.
The policy describes the insurance
cover for which we have accepted
your premium.
This insurance is renewable provided
that we agree to accept your premium
for any subsequent period of insurance.
A new schedule will be issued for
each period of insurance showing any
changes to your cover.
Your policy is divided into a number of
sections. The policy wording, schedule
and any endorsement must be read
together. Where a section does not
apply, your schedule will state that it is
‘not covered’.
Throughout this policy, we use defined
terms. Defined terms are used to
explain what a word means and are
highlighted in bold blue print. Details of
the policy definitions can be found on
page 6.

                                                                                    3
Important phone numbers

         Glass replacement service*                                 0870 870 7171
         A quick and efficient service available 365 days a year.

         Legal and tax advice**                                     0870 241 8178
         Our confidential legal and tax advice line. Please quote AXA Commercial
         when you call.

         Emergency helpline***                                      0870 241 8178
         Our 24 hour emergency helpline. Please quote AXA Commercial when
         you call. We will provide details of reputable contractors who will be
         able to help.
         If connected to a potential claim please follow the Claims notification
         condition and Claims procedures condition first.

* The Glass replacement service is provided by Glassolutions, Waterlands,
Meadows Road, Brookfields Park, Manvers, Rotherham, S63 5DJ.
** The telephone legal and tax advice is provided on behalf of Arc Legal Assistance Ltd
by Irwin Mitchell Solicitors and can advise on general UK law and taxation.
** Tax telephone advice provided by Irwin Mitchell Solicitors may involve the use of
external accountants to provide tax telephone advice.
** Arc Legal Assistance Ltd make no additional charge for providing these services.
*** The emergency assistance helpline is provided on behalf of Arc Legal Assistance Ltd
by AXA Assistance UK. Arc Legal Assistance Ltd make no additional charge for providing
these services.
Arc Legal Assistance Ltd is authorised and regulated by the Financial Conduct Authority.
Their Firm Reference Number is 305958.
Irwin Mitchell LLP is a limited liability partnership registered in England and Wales, with
number OC343987, and is authorised and regulated by the Solicitors Regulation Authority.
Telephone calls may be monitored and recorded.

    Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
    for their meanings
4
Making a claim                            Making a complaint
If you need to make a claim please        If you are not happy with the way in
first check your policy to make sure      which a claim or any other matter has
you are covered. You must then follow     been dealt with, please read ‘Making a
the instructions provided on page 8       complaint’ on page 57 of the policy.
under the Claims notification condition
and Claims procedure condition under
Policy conditions.

                                                                               5
Meanings of defined terms

These meanings apply throughout your                    d a
                                                           voluntary helper or taking part
policy. If a word or phrase has a defined                 in a work experience or training
meaning, it will be highlighted in bold blue              scheme
print and will have the same meaning                    and under your control or supervision.
wherever it is used. There are additional
defined terms under each section.
                                                     Excess
Business                                             The first amount of any claim or claims
                                                     for which you are responsible.
The business described in your
schedule including
1	the management and upkeep of
                                                     Period of insurance
   your property and land at the same                The period from the start date to the
   address                                           expiry date shown in your schedule.
2	providing and managing facilities
   primarily used for fire prevention,               Policy
   safety or security at your property
                                                     The policy and schedule and any
3	private work completed with your                  endorsements attached or issued.
   prior consent by an employed
   person for your directors, partners or
   officers                                          Policy territories
4	the sale or disposal of business                  Great Britain, Northern Ireland, the
   assets.                                           Channel Islands and the Isle of Man.

Employed person(s)                                   Property
1	Anyone under a contract of service or             The buildings at the address(es) shown
   apprenticeship with you                           in your schedule.

2 Anyone who is
                                                     We/us/our/ourselves
    a	employed by you or for you on a
       labour only basis                             AXA Insurance UK plc.
    b self employed
    c	hired to you or borrowed by you               You/your/yourself
       from another employer                         The person(s), firm, company or
                                                     organisation shown in your schedule as
                                                     the insured.

     Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
     for their meanings
6
Policy conditions

These are the conditions of the cover               been notified, paid or is outstanding
and apply throughout your policy. There             in the current period of insurance, we
are additional conditions under each                will refund part of the premium paid,
section of cover. If you do not comply              proportionate to the unexpired period
with these conditions you may lose all              of insurance following cancellation
right to cover under your policy or to              minus an administration fee of up to
receive payment for a claim.                        £35. Where a claim has been notified,
If you are unsure about any of these                paid or is outstanding the annual
conditions or whether you need to notify            premium remains due in full.
us about any matter, please contact us.          3 We can cancel the policy
                                                    a	by giving you 30 days written
Arbitration condition                                  notice if
If we agree to pay your claim and you            		i	there is a material change in
disagree with the amount to be paid it                your business
may be referred to an arbitrator who is          		ii t he information that forms the
jointly appointed. Alternatively, depending            basis of this contract changes
on the size of your business, you may be
                                                 		iii	following a survey at any of
able to refer your case to the Financial
                                                        your properties or sites we
Ombudsman Service (FOS). In either case
                                                        have required you to make risk
this will not affect your right to take action
                                                        improvements and you have
against us over this disagreement.
                                                        not completed these within
                                                        a reasonable period of time
Cancellation condition                                  advised by us
1 Y
   ou may cancel your policy within                b immediately, if the premium has
  14 days of receiving your policy                     not been paid.
  for the first period of insurance if           Where the policy is cancelled in
  for any reason you are dissatisfied            accordance with any of the above
  or the policy does not meet your               provisions, we will refund part of the
  requirements. If you cancel this               premium paid, proportionate to the
  way, provided no claim has been                unexpired period of insurance following
  notified, paid or is outstanding, we           cancellation, provided that no claim
  will return the premium paid minus an          has been paid or is outstanding in the
  administration fee. Where a claim has          current period of insurance.
  been notified, paid or is outstanding
  the annual premium remains due                 Cancellation of this policy will not affect
  in full.                                       any claims or rights you or we may have
                                                 before the date of cancellation.
2 Y
   ou may also cancel this policy at any
  time if you sell the business or sell all      We do not have to offer renewal of
  the property insured shown in your             your policy and cover will cease on the
  schedule, or you cease trading. If you         expiry date.
  cancel this way, provided no claim has
                                                                                          7
Policy conditions continued

Change in risk condition                             2 immediately
You must tell us as soon as possible of                 a	on receipt send us every letter,
any change in circumstances or alteration                  court order, summons or other
to the risk during the period of insurance                 legal documents served upon you
which may affect this insurance. If you do              b	tell us about any prosecution,
not comply with this condition we have                     inquest or fatal accident inquiry or
the right to refuse to pay your claim.                     dispute for referral to adjudication or
We do not have to accept any request                       court proceedings in connection with
to change your cover. If we accept any                     any potential claim under this policy
change to the cover, an increase in the                 c	notify the police of any loss or
premium or different terms or conditions                   damage that has been caused
of cover may be required by us.                            by malicious persons, thieves,
                                                           rioters, strikers or vandals.
Changes in your policy                               If you do not comply with this condition we
condition                                            have the right to refuse to pay your claim.
By accepting this policy you understand
that we provide an online service.                   Claims procedures condition
We agree to provide you with all your                1 You must take, or allow others to
documents electronically for you to                     take, practical steps to prevent
print yourself.                                         further loss or damage, recover
It is your responsibility to make any                   property lost and otherwise
changes to your policy online. We                       minimise the claim.
reserve the right to charge up to £35. If            2	At your expense you must provide
you request us to send your insurance                   us with
documentation by post and reserve the
right to charge up to £35 for any change                a	full details in writing of any injury,
or correction to your policy that we                       loss or damage and any further
make on your behalf.                                       information or declaration we may
                                                           reasonably require
                                                        b	any assistance to enable us to
Claims notification condition                              settle or defend a claim
You or your legal representative must
                                                        c d
                                                           etails of any other relevant
1 as soon as practical                                    insurances.
    a	give us notice of any                         3 You, or anyone else who is claiming
       circumstances which might lead                   under this policy, must not make
       to a claim under this policy                     any admission, offer, payment or
    b	give us all the information we                   promise or reject a claim without our
       request                                          written permission.

     Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
     for their meanings
8
Policy conditions continued

4	Following a claim you must allow us      Law applicable to this policy
   or anyone authorised by us
                                            You and we can choose the law which
   a access to premises                    applies to this policy. We propose that
   b	to take possession of, or request     the Law of England and Wales apply.
      delivery to us of any property        Unless we and you agree otherwise, the
      insured.                              Law of England and Wales will apply to
                                            this policy.
5 You must not abandon any property
   to us.
6	
  We will be allowed complete control
                                            Misrepresentation and non-
  of any proceedings and settlement
                                            disclosure condition
  of the claim.                             The contract of insurance is formed on
                                            the reliance of information which you
If you do not comply with this condition
                                            provide to us. You must
we have the right to refuse to pay your
claim.                                      1	disclose all information relevant to
                                               this insurance
Fraud condition                             2	not make any statement which is
If you or anyone acting for you:               incorrect.

1	knowingly makes a fraudulent or          If you fail to disclose information
   exaggerated claim under your policy;     relevant to this insurance or make any
                                            statement which is incorrect we will, at
2	
  knowingly makes a false statement         our option, either
  in support of a claim (whether or not
                                            1	make the policy void from the date
  the claim itself is genuine); or
                                               the contract was formed
3	
  knowingly submit a false or forged
                                            2 refuse to pay your claim.
  document in support of a claim
  (whether or not the claim itself is
  genuine),                                 Payment of premium
We will:                                    condition
a refuse to pay the claim;                  You can choose to pay your premium
                                            either in full or by instalments.
b	declare the policy void, treating it
   as if it had never existed without any
   refund of premium; and                   Payment in full
c	recover any sums that we have            If you choose to pay in full your payment
   already paid under the policy            will be debited from your payment
   in respect of the claim and any          card immediately and will appear on
   previous claims.                         your statement within 3 working days.
                                            We will also debit your payment card
We may also inform the police of the
                                            for any additional premium including
circumstances.
                                            administration fees that may arise from
                                            any alterations made to your policy.
                                                                                   9
Policy conditions continued

Any refund of premium due as a result                   debt. We reserve the right to add an
of changes made to your policy will be                  administration fee to the value of
credited to your payment card within                    your debt to cover costs incurred.
3 working days.
                                                     Policy administration fees
Payment by instalments
                                                     condition
If you choose to pay by instalments you
will enter into a credit agreement with AXA          We may charge you an administration
Insurance. Further details will be available         fee if we
if you select this payment option. Your              1	make any changes to your policy on
deposit will be debited from your payment               your behalf
card immediately and will appear on your             2	agree to cancel your policy, or
statement within 3 working days.
                                                     3	are requested to print and re-send
If you make any change to your policy
                                                        your policy documents to you.
that affects your premium, you will
receive written notice of the changes to             We will not make a charge without
your payments.                                       informing you.
Any related administration fees that
may arise from these changes will                    Reasonable care condition
be debited from your payment card
immediately and will show on your                    You must take reasonable steps to
statement within 3 working days.                     1	prevent or protect against injury, loss
You may change your payment method                       or damage
from instalments to payment in full                  2	keep your premises, machinery,
at any point during the period of                        plant and equipment in good
insurance.                                               condition and in full working order
If you fail to make your monthly                     3	remedy any defect or any danger
payment(s) in full by the due date, we                   that becomes apparent, as soon
will seek to recover all monies and may                  as possible.
1	charge an administration fee for                  If required by us, you must allow access
    instalments rejected by your bank                to your premises and/or activities of
2	terminate your instalment                         your business to carry out inspection or
    agreement with immediate effect                  survey. You must comply with any risk
                                                     improvements that we ask for, within a
3	cancel your policy                                reasonable period of time, advised by us.
4	apply an administration fee of                    If you do not comply with this condition
    up to £35                                        you may not receive payment in respect
5	refer details of your policy to our debt          of a claim.
    collection agencies that will seek
    to recover all monies on our behalf
    and may record the outstanding
     Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
     for their meanings
10
Policy conditions continued

Subrogation (our rights)
condition
We will be entitled to undertake in your
name or on your behalf
1	the defence or settlement of any
   claim
2	steps to enforce rights against any
   other party before or after payment is
   made by us.

Third party rights condition
A person who is not a party to this
policy has no rights under the Contracts
(Right of Third Parties) Act 1999 to
enforce any term of this policy.

                                            11
Buildings section

                                                     Meanings of defined terms
 Contents of this section                            You can find the meanings for words in
 Meanings of defined terms           12              bold blue on page 6. There are some
                                                     words that may only appear in this
 What is covered                     13
                                                     section or are defined differently and
 Optional cover                      16              their meanings are shown here.
 Limit of cover                      17
 Extensions of cover                 17              Buildings
 What is not covered                 23              The buildings at the property shown in
                                                     your schedule including:
 Section conditions                  25
                                                     1	landlords fixtures and fittings
                                                     2	outbuildings, annexes, private
                                                        garages, gangways, foundations or
                                                        footings, swimming pools, tennis
                                                        courts, squash courts
                                                     3	walls, gates, fences and hedges
                                                     4	yards, car parks, roads, pavements,
                                                        paved terraces, patios, paths, drives
                                                     5	underground pipes and cables
                                                        belonging to you or which you are
                                                        responsible for
                                                     6	tenants improvements which you are
                                                        responsible for
                                                     7	
                                                       fixed glass in windows, doors,
                                                       fanlights, skylights, partitions and
                                                       fixed sanitaryware.

                                                     Consequential loss
                                                     Loss, resulting from interruption of or
                                                     interference with the business as a
                                                     result of damage to property used by
                                                     you, at the property, for the purpose of
                                                     the business.

     Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
     for their meanings
12
Buildings section continued

Damage/damaged                                connection with any organisation(s) or
                                              government(s) committed for political,
Accidental loss or destruction or
                                              religious, ideological or similar purposes
damage.
                                              including the intention to influence any
                                              government and or put the public or any
Empty                                         section of the public in fear.
Wholly unoccupied, mainly unoccupied or
                                              For the Channel Islands and the Isle
not in use by you or any of your tenants
                                              of Man: an act of any person(s) acting
for more than 30 consecutive days.
                                              on behalf of or in connection with any
Flood                                         organisation which carries out activities
                                              directed towards the overthrowing or
The escape of water from the normal           influencing by force or violence of any
confines of any natural or artificial water   government de jure or de facto.
course, lake, reservoir, canal, drain
or dam. Inundation from the sea. Rain         Vermin
induced run off. Whether resulting from
                                              Rats, mice, grey squirrels, owls,
storm or not.
                                              pigeons, foxes, bees, wasps, or
Hacking                                       hornets.

Unauthorised access to any computer,          Virus or similar mechanism
other equipment, component, system
                                              Program code, programming instruction
or item which processes, stores,
                                              or any set of instructions intentionally
transmits or retrieves data.
                                              constructed with the ability to damage,
Terrorism                                     interfere with or otherwise adversely
                                              affect computer programs, data, files
For England, Scotland and Wales: an           or operations whether involving self
act of any person(s) acting on behalf of      replication or not. The definition of virus
or in connection with any organisation        or similar mechanism includes but is
which carries out activities directed         not limited to trojan horses, worms and
towards the overthrowing or influencing       logic bombs.
by force or violence of any government
de jure or de facto as certified by Her
Majesty’s Government or H M Treasury          What is covered
or any successor relevant authority.          If any property is damaged by any of the
For Northern Ireland: an act including,       following causes, we will pay you for the
but not limited to the use of force or        value of the property at the time it is
violence and or threat thereof of any         damaged or the amount of the damage,
person or group(s) of persons whether         or at our option reinstate or replace the
acting alone or on behalf of or in            property or any part of it.

                                                                                      13
Buildings section continued

Causes                                                   c	
                                                           damage to moveable property in
1	Fire, lightning or earthquake.                          the open, walls, fences, posts,
                                                           hedges and gates
2	Explosion excluding
                                                         d	the excess detailed in your
 damage caused by or consisting of the
	                                                          schedule.
 bursting by steam pressure of a boiler
 economiser or other vessel, machine                  5 E
                                                         scape of water from any tank,
 or apparatus where internal pressure                   apparatus, pipe, or sprinkler
 is due to steam only, that belongs to                  installation excluding
 you or is under your control, unless it                 a	
                                                           damage to property caused by
 is used for domestic purposes only.                       frost other than internal plumbing
3	Riot, civil commotion, strikers,                        installations not in any outbuildings
   locked out workers, labour or                         b	
                                                           damage to any building which is
   political disturbances, vandals or                      empty
   malicious persons excluding                           c	
                                                           the excess detailed in your
     a	
       damage caused by confiscation,                      schedule.
       destruction or requisition by order            6	Impact by any aircraft or other aerial
       of the Government or any Public                   devices, vehicle or any article falling
       Authority                                         from them or by animals excluding the
     b	
       damage arising from stoppage of                   excess detailed in your schedule.
       work                                           7	Leakage of fuel oil, used solely
     c	
       damage caused by your                             for domestic purposes, used in
       employees, tenants or any other                   connection with the buildings excluding
       person lawfully on your property                  a	damage to any portion of the
     d 	damage to any portion of the                       building which is empty
         building which is empty                         b	
                                                           the excess detailed in your
     e	
       damage caused by theft or                           schedule.
       attempted theft                                8	Theft or attempted theft but
     f	the excess detailed in your                      excluding
        schedule.                                        a 	damage to any building which is
4 Storm or flood but excluding                               empty
     a	
       damage due to a change in the                     b 	damage caused by your
       water table level                                     employees, tenants or any other
     b	
       damage resulting from frost,                          person lawfully on your property
       subsidence, ground heave or                       c	the excess detailed in your
       landslip                                             schedule.

      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
14
Buildings section continued

Optional cover                                    b	faulty or defective workmanship,
                                                     operational error or omission by
9	Accidental damage
                                                     you or any of your employees
Your schedule will show if you have this
                                               but we will cover subsequent damage
cover.
                                               which results from a cause not
The Buildings section is extended to           excluded elsewhere in the policy
include the following cause
                                               4 	the collapse or cracking of buildings
Any other damage excluding
                                               5 	the cost of normal maintenance,
1	
  damage which is excluded under                   redecoration or repair
  causes 1 to 8 or under ‘What is not
                                               6 	losses directly or indirectly caused
  covered’ of the Buildings section
                                                   by or resulting from damage to
2 damage caused by or resulting from:             any computer or other equipment,
  a	wear and tear, the action of light            component, system or item which
     or atmosphere, moths, vermin or               processes, stores, transmits or
     insects                                       retrieves data or any part of it, whether
                                                   tangible or intangible (including any
  b	any process of cleaning, dyeing,              information, programs or software)
     restoring, adjusting, repairing,              and whether your property or not,
     cutting, preparation or fitting               where damage is caused by virus or
  c	corrosion, rust, dampness,                    similar mechanism or hacking
     dryness, wet or dry rot, shrinkage,       But we will pay you for damage not
     marring, or scratching                    excluded elsewhere in the policy,
  d	wind, rain, hail, sleet, snow, dust       which itself results from a cause
     or theft to boundary walls, gates,        1 to 8, except for damage by malicious
     fences or moveable property in            persons other than thieves
     the open                                  7	
                                                 damage caused by or consisting of
  e	subsidence, ground heave or                  a	mechanical or electrical
     landslip of any part of the site on             breakdown or derangement of the
     which the property stands                       particular machine, apparatus or
  f	the normal settlement or bedding                equipment where the breakdown
     down of new structures                          or derangement originates
3 	damage to property caused by or               b	joint leakage, failure of welds,
    consisting of                                    cracking, fracturing, collapse or
                                                     overheating of boilers, economisers,
  a	inherent fault or defect,
                                                     super heaters, pressure vessels or
     undiscovered defect, gradual
                                                     any range of steam and feed piping
     deterioration, frost, change in water
                                                     in connection with them
     table level, faulty or defective design
     or materials

                                                                                        15
Buildings section continued

But we will pay you for subsequent                    4	
                                                        damage which originated prior to the
damage which results from a cause not                   start of this cover
excluded elsewhere in the policy.                     5	
                                                        damage to solid floor slabs or
8	the excess detailed in your schedule.                damage resulting from their
                                                        movement, unless the foundations
                                                        beneath the outside walls of the
Optional cover                                          main building of the property are
9 S
   ubsidence ground heave and                          damaged at the same time by the
  landslip cover                                        same cause
Your schedule will show if you have                   6	
                                                        damage resulting from demolition,
this cover.                                             construction, structural alteration or
Subject to the following special                        repair of any property or groundwork
condition we will pay you for damage                    or excavation at the property.
caused by subsidence or ground heave
                                                      Special conditions applicable to
of any part of the site on which the
                                                      subsidence, ground heave and
property stands or landslip excluding
                                                      landslip cover
1 the excess detailed in your schedule
                                                      a D
                                                         emolition, groundworks, excavation
2	
  damage to yards, outdoor swimming                     or construction condition
  pools, tennis courts, paved terraces,
                                                      You must tell us as soon as
  patios, drives, car parks, roads,
                                                      possible if you become aware of any
  pavements, walls, gates and fences
                                                      demolition, groundworks, excavation or
  unless the building structure is also
                                                      construction being carried out on any
  damaged at the same time by the
                                                      adjoining site to the property. We will
  same cause
                                                      then have the right to vary the terms or
3 damage caused by or consisting of                   cancel this cover.
     a t he normal settlement or bedding             b T ree inspection and pruning
        down of new structures                           condition
     b t he settlement or movement of                In accordance with the Reasonable
        made-up ground                                care policy condition, you must arrange
     c coastal or river erosion                      annually, at your own expense, for a
     d d
        efective design or workmanship               tree surgeon or similar professional to
       or use of defective materials                     i	inspect trees within 10 metres of
     e f ire, subterranean fire, explosion,                the property and over 5 metres
        earthquake or the escape of                         in height to ensure that they do
        water from any tank, apparatus or                   not affect the structure, drains or
        pipe                                                sewers at the property

      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
16
Buildings section continued

   ii p
       rune or pollard trees as           tenants furniture while the residential
      recommended by the tree              portion of the property cannot be lived in
      surgeon.                             or access is denied as a result of damage.
If you do not comply with these            This cover will only apply where we have
conditions we have the right to refuse     made a payment or accepted liability
                                           under the Buildings section of this policy.
to pay your claim.
                                           The most we will pay under this cover
Limit of cover                             is 20% of the sum insured on the
                                           building that has been damaged for a
The most we will pay for any property      maximum period of 24 months from the
covered by this section is the sum         date of damage.
insured shown in your schedule for
each item plus index linking.              Provided that this cover is not insured
                                           elsewhere.
Extensions                                 Architects, surveyors, legal and
                                           consulting engineers fees cover
Additional metered water cover
We will pay you for the additional         We will pay you for architects,
metered water charges incurred by you      surveyors, legal and consulting
as a result of damage. Provided that       engineers fees necessarily incurred
repairs are completed within 30 days of    with our written consent in the
the damage being discovered. We will       reinstatement or repair of the property
not cover for the charges incurred for     as a result of its damage, but not for
any property that is empty.                preparing any claim.

The most we will pay under this cover      Cables and underground pipes cover
during any one period of insurance is
                                           We will pay you for the costs incurred
£5,000.
                                           following damage (which you are
The amount we pay will be based on         responsible for) to fuel or oil pipes,
the amount of the water charges for the    cables (including overhead electricity
period when the damage occurs, less the    and telephone cables), septic tanks
charge paid by you for the corresponding   and associated pipes, underground
period in the preceding year. This will    pipes and drains (including inspection
then be adjusted for changes in the        covers) on the property or connecting
suppliers’ charges and for variations      the property to the public mains.
affecting your water consumption during
                                           The most we will pay for any one claim
the intervening period.
                                           under this cover is £5,000.
Alternative residential
                                           Capital additions cover
accommodation cover
                                           We will pay you for
We will pay you for costs of reasonable
alternative accommodation for your         1	any newly acquired or newly erected
tenants and temporary storage of your         property or property under construction
                                              (excluding any property which a
                                                                                  17
Buildings section continued

     building contractor is responsible for)             b	on a different site
     which is not insured elsewhere                   2	the repair or restoration of damaged
and                                                      property
2	alterations, additions and                         in either case, to a condition equivalent
   improvements to property but not for               to or the same as but not better or more
   any appreciation in value                          extensive than its condition when new.
anywhere within the policy territories.               You have stated the declared value,
Provided that                                         shown in your schedule for each
     a	
       you give us details of the                     property, and the premium has been
       additions as soon as possible                  calculated accordingly.
       and you will ensure specific                   Declared value means your
       insurance is arranged with                     assessment of the cost of
       us from the date you became                    reinstatement of each property at
       responsible                                    the level of costs applying at the start
     b t he provisions of this cover will be         of the period of insurance (ignoring
        fully maintained in addition to any           inflationary factors which may operate
        specific insurance effected under             subsequently) together with an
        a above.                                      allowance for

The most we will pay under this cover                 1	the additional cost of reinstatement
for any one location is 10% of the total                 to comply with public authority
sum insured under this section or                        requirements
£500,000 whichever is lower.                          2 professional fees

Day one average cover                                 3 debris removal costs.

Subject to the following special                      Special conditions applicable to day
conditions, the amount payable for                    one average cover
property under sums shown as the
                                                      1	At the start of each period of
‘declared value’ in your policy schedule
                                                         insurance you must tell us the
will be calculated as reinstatement of
                                                         declared value of each property.
the damaged property.
                                                         Without this declaration the current
For this purpose, reinstatement means                    declared value will be taken as the
1	the rebuilding or replacement of                      declared value for the next period of
   damaged property, which provided                      insurance.
   our liability is not increased may be              2 	If at the time of damage the declared
   completed                                              value of the property you are
     a	in any manner suitable to your                    claiming for is less than the cost
        requirements                                      of reinstatement at the start of the
                                                          period of insurance, our liability for
      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
18
Buildings section continued

   any damage will be proportionately       Drains clearance cover
   reduced and will be limited to the       We will pay you for the costs and
   proportion that the declared value       expenses necessarily and reasonably
   bears to the cost of reinstatement.      incurred by you in clearing, cleaning
3	
  Our liability for the repair or           and/or repairing drains, gutters and/
  restoration of property damaged in        or sewers to your property or for which
  part only, will not exceed the amount     you are responsible, following damage
  which would have been paid had the        to your property.
  property been completely destroyed.       The most we will pay for any one claim
4 	No payment will be made beyond          under this cover is £5,000.
    the amount that would have been
    payable in the absence of this Day      European Community and public
    one average cover extension             authorities cover
   a	unless reinstatement starts and       Subject to the following special
      proceeds without unreasonable         conditions, the cover on your property
      delay                                 also includes the additional cost of
                                            reinstatement that may be incurred
   b	until the cost of reinstatement       solely due to the necessity to comply
      has been incurred                     with the stipulations of
   c	if the property at the time of the    1	European Community Legislation or
      damage is insured by any other
      insurance which is not on the         2	Building or other regulations under
      same basis of reinstatement.             or there to support, any Act of
                                               Parliament or Bye-laws of any Public
If you do not comply with Special              Authority
condition 4 or you decide not to rebuild
the property in a condition equal to but    referred to as the stipulations, for
not better or more extensive than its          a the damage to the property
condition when new then this cover is
                                               b	undamaged portions of the
cancelled and our and your rights and
                                                  property.
liabilities in respect of the damage will
be subject to the following condition of    Excluding
average (under insurance).                  1	the cost incurred in complying with
The cover for each property is deemed          the stipulations
to be subject to average i.e. if the           a	for damage occurring prior to the
property at the time of damage is valued          granting of this cover
at more than 115% of the declared value
stated in your schedule, then you will         b	for damage not insured by this
be considered as self insured for the             section
difference and will be responsible for a       c	where you have been served
proportionate share of the loss.                  notice prior to the damage
                                                  happening

                                                                                   19
Buildings section continued

     d w
        here there is an existing                    4	The total amount recoverable for
       requirement which has to be                       any property will not exceed its
       implemented within a given period                 sum insured.
     e	for property entirely undamaged
                                                      Extinguishment and alarm resetting
        by any insured event
                                                      expenses cover
2	the additional cost that would have
                                                      We will pay you for the cost of replacing
   been required to make good the
                                                      and/or replenishing extinguishment
   damaged property to a condition the
                                                      materials when you, your employees or
   same as when new, had the need
                                                      the fire brigade attempt to extinguish
   to comply with the stipulations not
                                                      or minimise loss by fire. Provided that
   arisen
                                                      the costs and expenses cannot be
3	the amount of any charge or                        recovered from the public authority
   assessment arising out of capital                  responsible.
   appreciation which may be payable
                                                      The most we will pay for any one claim
   for the property or by the owner to
                                                      under this cover is £5,000.
   comply with the stipulations.
                                                      Glass breakage cover
Special conditions applicable to
European Community and public                         We will, at our option, pay for or make
authorities cover                                     good any breakage or malicious
                                                      scratching of all internal or external
1	Reinstatement work must be
                                                      fixed glass, belonging to you or for
   started and carried out without
                                                      which you are responsible at the
   unreasonable delay and must be
                                                      property. Provided that the glass is in
   completed within 12 months after
                                                      good condition and free from damage at
   the damage or any further time that
                                                      the start of this policy.
   we agree (during those 12 months).
                                                      We will also pay for the cost of
2	Reinstatement may be carried out
   on another site (if the stipulations               1	boarding up and repair to associated
   require) subject to our liability under               framework, reasonably incurred as
   this extension not being increased.                   a result of an insured breakage. You
                                                         may instruct builders or glaziers to
3	If our liability under this section
                                                         board up where necessary without
   is reduced by the application of
                                                         our prior consent
   any of the terms and conditions
   of the policy, then our liability for              2	removal or replacement of fixtures
   European Community and public                         and fittings which may be necessary
   authorities cover will be reduced                     in connection with the replacement
   proportionately.                                      of the glass.

      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
20
Buildings section continued

Inflation protection cover                     unless we or you give written notice to
We will adjust the declared value for          the contrary.
property in line with suitable indices of      Provided that in the event of
cost and the renewal premium for this          reinstatement you will always
section will be based on the adjusted          1	pay the necessary premiums
sums insured.                                     that may be required for the
                                                  reinstatement, from the date of
Landscaped gardens cover
                                                  reinstatement
We will pay you for the cost of restoring
                                               2	apply any additional risk improvements
any damage caused by the emergency
                                                  which we may reasonably require.
services to landscaped gardens, which
you are responsible for, when the              Removal of debris cover
emergency services are attending the
property as a result of damage.                We will pay you for the costs and
                                               expenses necessarily incurred by you
The most we will pay for any one               with our consent in
claim for damage under this cover is
£10,000.                                       1 removing debris from
                                               2 dismantling and/or demolishing
Mortgagees and other interests cover
                                               3 shoring up or propping
The interest of the leaseholder(s),
mortgagee(s) and tenant(s) in the              the portion or portions of the property
individual portions of the property is         insured as a result of damage. We will
noted and should be advised to us in           not pay for costs or expenses
the event of a claim.                             a	incurred in removing debris
In addition, your interest or the interest           except from the site of the
of the mortgagee(s) under this insurance             damaged property and the area
will not be prejudiced by any act or neglect         immediately adjacent to the site
of the occupiers or mortgagors of any             b	arising from pollution or
property where the risk of damage is                 contamination of property not
increased without your or the mortgagees             insured by this section.
authority or knowledge. Provided that once
you or the mortgagees are aware of the         Removal of debris (tenants contents)
increased risk, you must give us written       cover
notice as soon as possible and pay any         We will pay you for the irrecoverable
additional premium that we may require.        costs and expenses (where they are not
                                               insured elsewhere) incurred by you with
Reinstatement of sum insured after             our consent to remove the debris of
loss cover                                     tenants contents following damage.
In the event of loss, the sum insured
by this section will be automatically
reinstated from the date of the loss,
                                                                                     21
Buildings section continued

We will not cover for costs or expenses
1	incurred in removing debris except
                                                      Theft of building fabric cover
   from the site of the damaged
   property and the area immediately                  We will pay you for
   adjacent to the site                               1	
                                                        damage to the external fabric of
2	arising from pollution or                            the property as a result of theft or
   contamination of other property not                  attempted theft
   insured by this section.                           2	
                                                        damage following entry of rainwater
                                                        as a result of theft or attempted theft
Removal of nests cover                                  of the external fabric of the property.
We will pay you for any one claim for                 We will not cover the excess shown in
the cost of removing wasps, bees or                   your schedule for each and every loss
hornets nests from the property.                      after the application of any average
The most we will pay for any one claim                condition.
under this cover is £250.                             This cover does not apply to any
                                                      property which is empty.
Subrogation waiver cover
In the event of a claim under this                    Theft of keys cover
section we agree to waive any rights,                 We will pay you for the cost of replacing
remedies or relief which we might have                external door locks after the loss of
become entitled by subrogation against                keys due to
1	any company standing in relation of                1	theft from the property, registered
   parent to subsidiary (or subsidiary to                office or from your home
   parent) to you
                                                      2	theft following hold-up when the keys
2	any company which is a subsidiary of                  are in the personal custody of you
   a parent company of which you are a                   or any principal, director, partner or
   subsidiary                                            employee authorised to hold such keys
in each case as defined by current law                3	reasonable evidence that the
at the time of the damage                                keys have been duplicated by an
3	any tenant provided that                              unauthorised person.
     a	the damage did not result from a              The most we will pay for any one claim
        criminal, fraudulent or malicious             under this cover is £1,000.
        act of the tenant
                                                      Trace and access cover
     b	the tenant contributes to the cost
        of insuring the property against the          We will pay you for the reasonable
        event which caused the damage.                costs that you incur in finding the
                                                      source of damage and repairing it,
                                                      caused by
      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
22
Buildings section continued

1	the escape of water from any tank,              b	
                                                     we have paid or have agreed to
   apparatus or pipe                                 pay for the damage
2	
  damage to cables, underground                    c	if any payment made by us is
  pipes and drains providing services                 less than the actual cost of the
  to the property and for which you are               reinstatement or repair of the
  legally responsible.                                damage, then any payment under
The most we will pay for any one                      this clause, resulting from that
property in any one period of insurance               damage, will be reduced by the
under this cover is £10,000.                          same proportion
                                                2	
                                                  your liability for VAT does not arise
Transfer of interest cover                        from the replacement property
                                                  having a greater floor area, or being
If at the time of damage you have entered
                                                  better or more extensive than the
into a contract to sell your interest in          damaged property
the property and the sale has not but is
subsequently completed, the purchaser           3	where the property is reinstated on
                                                   another site our liability will not be
will have the full protection of this section
                                                   higher than the amount of VAT that
on exchange of contracts, provided it is           would have been payable had the
not covered by any other insurance.                property been rebuilt on its original site
Unauthorised use of electricity, gas,           4	
                                                  our liability does not include
oil and water cover                               amounts you have paid as penalties
                                                  or interest for non payment or late
We will pay you for the charges that you          payment of VAT
are responsible for if gas, electricity, oil    5	
                                                  you have taken all reasonable
or water is discharged from a metered             precautions to insure adequately for
system, arising from unauthorised use             VAT liability at the start of this policy
by persons taking possession, keeping             and at each subsequent renewal date.
possession or occupying property
                                                For the purpose of any condition of
without your authority. Provided that
                                                average, reinstatement costs will
you take all reasonable steps to
                                                be exclusive of VAT. Our liability may
terminate the unauthorised use as
                                                be more than the sum insured for a
soon as it is discovered.
                                                property where the additional amount is
The most we will pay for any one claim          solely as a result of VAT.
under this cover is £5,000.

Value added tax (VAT) cover                     What is not covered
We will pay you for VAT, paid by you,           Aircraft or aerial devices exclusion
which is not recoverable. Provided that
                                                We will not cover damage caused by or
1 a	
    your liability for the tax arises as a      consisting of pressure waves caused by
    result of the reinstatement or repair       aircraft or other aerial devices travelling
    of the property following damage            at sonic or supersonic speeds.

                                                                                         23
Buildings section continued

Date recognition exclusion                           Fraud and dishonesty exclusion
We will not cover damage directly or                 We will not cover damage which results
indirectly caused by, contributed to or              from acts of fraud or dishonesty by you,
arising from the failure of equipment                your employees or any other person
(including hardware and software) to                 who is responsible for the property or
correctly recognise any given date or to             results from voluntarily parting with
process data or to operate properly due              title or possession of any property
to failure to recognise any given date.              as a result of a fraudulent scheme,
But we will cover subsequent damage                  trick, device or false claim. But we will
resulting from one of the insured                    cover subsequent damage which itself
causes 1 to 8, which is not excluded                 results from an insured cause covered
elsewhere in the policy.                             elsewhere in this policy.

Erasure of data exclusion                            Illegal activities exclusion
We will not cover damage arising                     We will not cover damage caused by
directly or indirectly from                          property being used, by you or any
1	erasure, loss, distortion or                      occupants, for illegal activities.
   corruption of information on
                                                     More specific insurance exclusion
   computer systems or other records,
   programs or software deliberately                 We will not cover you for any property
   caused by rioters, strikers, locked-              more specifically insured by you or on
   out workers, persons taking part                  your behalf.
   in labour disturbances or civil
   commotion or malicious persons                    Pollution or contamination exclusion

2	other erasure, loss, distortion                   We will not cover damage caused
   or corruption of information on                   by pollution or contamination except
   computer systems or other records,                (unless excluded elsewhere) damage to
   programs or software unless                       property caused by
   resulting from causes 1 to 8 and it is            a p
                                                        ollution or contamination which
   not excluded elsewhere in the policy.               itself results from causes 1 to 8
                                                     b a
                                                        ny of causes 1 to 8 which
Excess exclusion
                                                       itself results from pollution or
We will not cover the excess detailed                  contamination.
in your schedule.
Where a claim is covered under both                  Radioactive contamination exclusion
the Buildings and Landlords contents                 We will not cover damage, or any other
sections you will only be responsible for            loss or expense resulting or arising
one of the excess amounts detailed in                from damage to any property, or any
your schedule.                                       consequential loss directly or indirectly

     Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
     for their meanings
24
Buildings section continued

caused by or contributed to by or                  workers or persons taking part in
arising from                                       labour disturbances or malicious
                                                   persons.
1	ionising radiations or contamination
   by radioactivity from any nuclear fuel    If any of the points above are found to be
   or from any nuclear waste from the        invalid or unenforceable, the remainder
   combustion of nuclear fuel                shall remain in full force and effect.
2	the radioactive, toxic, explosive         In any action, law suit or other
   or other hazardous properties of          proceedings or where we state that
   any explosive nuclear assembly or         any loss, damage, cost or expense is
   nuclear component of that assembly.       not covered by this section it will be
                                             your responsibility to prove that they
Terrorism and Northern Ireland               are covered.
exclusion
                                             Unexplained loss exclusion
We will not cover you for loss, damage,
cost or expense of any nature directly or    We will not cover for damage caused
indirectly caused by, resulting from or in   by or consisting of disappearance,
connection with                              unexplained or inventory shortage,
                                             misfiling or misplacing of information.
1	For England, Scotland, Wales, the
   Channel Islands and the Isle of Man       War risk exclusion
   a a
      ny act of terrorism, regardless       We will not cover
     of any other cause or event
     contributing concurrently or in any     1	any claims caused by or happening
     other sequence to the loss                 through war, invasion, act of foreign
                                                enemy hostilities (whether war is
   b a
      ny action taken in controlling,          declared or not), civil war, rebellion,
     preventing, suppressing or in any          revolution, insurrection or military or
     way relating to any act of terrorism.      usurped power
2	For Northern Ireland                      2	confiscation, nationalisation,
   a a
      ny act of terrorism, regardless          requisition or damage to property by
     of any other cause or event                or under the order of any government
     contributing concurrently or in any        or public or local authority.
     other sequence to the loss
   b a
      ny action taken in controlling,       Section conditions
     preventing, suppressing or in
                                             These conditions of cover apply only to
     any way relating to any act of
                                             this section. If you do not comply with a
     terrorism
                                             condition you may lose all right to cover
   c	riot, civil commotion and (except      under your policy or to receive payment
      for damage or interruption to          for a claim.
      the business caused by fire or
      explosion) strikers, locked-out

                                                                                       25
Buildings section continued

If you are unsure about any of these                  3	all refuse and waste materials must
conditions or whether you need to                        be removed from the interior of the
notify us about any matter, please                       property and no accumulation of
contact us.                                              refuse and waste is allowed in the
                                                         adjoining yards or space owned by you
Change in tenancy condition
                                                      4	
                                                        you must secure the property and
You must tell us of all changes in tenancy              put all protective, locking devices
or occupation within the property.                      and any alarm protection into
If you do not comply with this condition we             effective operation
have the right to refuse to pay your claim.           5 t he gas, water and electricity
                                                         supplies must be turned off at the
Contribution and average condition                       mains (except electricity needed to
If, at the time of the claim, there is any               maintain any fire or intruder alarm
other policy covering the same property,                 systems)
we will only be responsible for our                   6 d
                                                         uring the period 1st October to 31st
proportionate share.                                    March all water systems must be
If any other policy is subject to any                   drained or the heating system put
average (under insurance) condition                     into effective operation to maintain
this policy, if not already subject to                  the internal temperature at a
average, will be subject to average in                  minimum of 10 degrees centigrade
the same way as the other insurance.                  7	
                                                        you must implement any additional
If any other policy has a condition that                protections that we may require
prevents it from paying its share, our                  within the time scale we specify
share of the claim will be limited to the             8	all damage to the property must be
proportion that the sum insured bears                    rectified immediately
to the value of the property insured.                 9 letterboxes must be sealed
Empty properties condition                            10	the final exit door of the property
                                                         must be secured by an appropriate
1	
  You must tell us immediately you
                                                         mortice deadlock which has five or
  become aware
                                                         more levers and conforms to British
     a that the property is empty                        Standard (BS) 3621 or European
     b	of any damage to the empty                       Norm (EN) 1303 together with a
        property whether the damage is                   matching metal box striking plate,
        insured or not                                   installed in accordance with the
                                                         manufacturers recommendations.
2	the property must be inspected
   internally and externally at least once            If you do not comply with this condition
   a week by you or on your behalf and                you will not be covered and we will not
   a written record of the inspection is              make any payment in respect of a claim.
   maintained by you
      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
26
Buildings section continued

Explosion condition                        Reinstatement condition
You must ensure that any vessel,           If any property is to be reinstated or
machinery or apparatus or its contents     replaced by us, then you will at your
belonging to you or under your control,    own expense provide all the plans,
which need examination to comply           documents, books and information
with any statutory regulations, will       that may be needed. We will not be
have a contract providing the required     required to reinstate the property
inspection.                                exactly but only as circumstances
If you do not comply with this condition   permit and in a reasonable manner.
you will not be covered and we will        We will not pay more than the sum
not make any payment in respect of a       insured for any one property.
claim.
                                           Workmen’s condition
Fire extinguishing appliances              Joiners and other tradesmen are
condition                                  allowed on the property to make repairs
Fire extinguishing equipment must be       or minor structural alterations without
                                           prejudice to this insurance.
1 maintained in efficient working order
2	routinely tested and any defects
   promptly rectified.

Flat roof condition
Any flat portions of the roof of the
buildings are to be inspected once
every 2 years by a competent roofing
contractor and any recommendations
implemented.

Individual Flats condition
Where your property is an individual
flat we will only be responsible for
our proportionate share of any claim
relating to portions of the property for
which you are responsible.

Payments on account condition
In the event of damage we can, at our
option, make monthly payments to you
if required.

                                                                                27
Rental income section

                                                     Your schedule will show if this section
 Contents of this section                            is covered.

 Meanings of defined terms           28
                                                     Meanings of defined terms
 What is covered                     29
                                                     You can find the meanings for words in
 What is not covered                 32
                                                     bold blue on page 6. There are some
 Section conditions                  33              words that may only appear in this
                                                     section or are defined differently and
                                                     their meanings are shown here.

                                                     Notes
                                                     1	For the purpose of these definitions
                                                        any adjustments implemented
                                                        in current cost accounting will be
                                                        disregarded.
                                                     2	To the extent that you are
                                                        accountable to the tax authorities
                                                        for Value Added Tax all terms in this
                                                        section will be exclusive of such tax.
                                                     3	Adjustments will be made as
                                                        necessary for trends of the
                                                        business and for variations and
                                                        other circumstances affecting the
                                                        business, either before or after
                                                        the damage, or which would have
                                                        affected the business had the
                                                        damage not occurred so that the
                                                        adjusted figure represents as closely
                                                        as possible the results which would
                                                        have been obtained during the
                                                        relative period after the damage.

                                                     Annual rental income
                                                     The rental income during the 12
                                                     months immediately before the date of
                                                     the damage.

     Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
     for their meanings
28
Rental income section continued

Damage/damaged                            Vermin
Accidental loss or destruction or         Rats, mice, grey squirrels, owls,
damage to property used by you for the    pigeons, foxes, bees, wasps or hornets.
purpose of the business.
                                          Virus or similar mechanism
Empty                                     Program code, programming instruction
Wholly unoccupied, mainly unoccupied      or any set of instructions intentionally
or not in use by you or any of your       constructed with the ability to damage,
tenants for more than 30 consecutive      interfere with or otherwise adversely
days.                                     affect computer programs, data, files
                                          or operations whether involving self
Hacking                                   replication or not. The definition of virus
                                          or similar mechanism includes but is
Unauthorised access to any computer,
                                          not limited to trojan horses, worms and
other equipment, component, system
                                          logic bombs.
or item which processes, stores,
transmits or retrieves data.
                                          What is covered
Indemnity period
The period during which the business      Loss of rental income cover
is affected beginning when the damage     We will cover you for loss of rental
occurred and ending not later than the    income if the property insured under the
maximum indemnity period shown in         Buildings section is damaged during the
your schedule.                            period of insurance and as a result your
                                          business is interrupted or interfered with.
Rental income                             We will pay you
The money paid or payable to you          1	the difference between your rental
for tenancies and other charges for          income and the standard rental
services provided in the course of your      income during the indemnity period
business at the property.                    due to the damage
Standard rental income                    2	additional expenditure necessarily
                                             and reasonably incurred. This will
The rental income during the period          include the cost of re letting the
in the 12 months (or a proportionately       property and the associated legal
increased multiple, if the indemnity         fees in trying to avoid or limit the loss
period exceeds 12 months)                    of rental income that, without the
immediately before the date of the           expenditure, would have taken place
damage which corresponds with the            during the indemnity period because
indemnity period.                            of the damage. The amount we pay

                                                                                  29
Rental income section continued

     will not exceed the amount of the                Buildings awaiting sale cover
     loss of rental income avoided                    If at the time of the damage you have
less any business expense saved                       contracted to sell your interest in the
because of the damage during the                      property or have accepted a written offer
indemnity period.                                     to purchase your interest in the property
Provided that                                         subject to contract, and the sale is
                                                      cancelled or delayed solely due to the
1	
  we have made a payment or                           damage, we will pay at your option either
  accepted liability under the Buildings
  section of this policy                              1	during the period before the date
                                                         when the property would have
2	if the sum insured detailed in your                   been sold the actual amount of the
   schedule is less than your annual                     reduction in rental income solely as
   rental income, or a multiple of it                    a result of the damage
   where the maximum indemnity
   period shown in your schedule                      2	during the period starting with the
   exceeds 12 months, then the                           date when the property would have
   amount we will pay you will be                        been sold and ending with the actual
   proportionately reduced                               date of sale, or when the indemnity
                                                         period ends if earlier, the loss of
3	
  our liability under this section will not              interest which is
  exceed the sum insured shown in
  your schedule.                                         a t he interest incurred on capital
                                                            borrowed (solely to offset, in
Alternative trading cover                                   whole or part, the loss of use
                                                            of the sale proceeds) for the
If during the indemnity period
                                                            purpose of financing the business
accommodation is provided other than
at the property, for the benefit of the                  b	the investment interest you have
business, either by you or by others on                     lost on any balance of the sale
your behalf, the money paid or payable                      proceeds (after deduction of any
for the accommodation will be taken                         capital borrowed in 2a above)
into account in arriving at the rental                less any amount received in rental
income during the indemnity period.                   income

Boiler explosion cover                                3 the additional expenditure being

We will pay you for loss of rental                       a	the expenditure needed, and
income caused by damage resulting                           reasonably incurred as a result
from the explosion of any boiler or                         of the damage, solely to avoid or
economiser at the property belonging                        minimise the loss payable under
to you or under your control.                               1 or 2 above, but not more than
                                                            the amount of loss avoided by the
                                                            expenditure

      Defined terms are highlighted in bold blue  see page 6 and the start of each section of cover
      for their meanings
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