State Farm Homeowners Basic Policy - State Farm Lloyds, Inc. Home Office, Richardson, TX
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State Farm® Homeowners Basic Policy State Farm Lloyds, Inc. Home Office, Richardson, TX FP-7963
TABLE OF CONTENTS
Begins on Page
AGREEMENT ............................................................................................................................................................1
DEFINITIONS ............................................................................................................................................................1
SECTION I – YOUR PROPERTY
COVERAGES ....................................................................................................................................................3
Coverage A – Dwelling ...............................................................................................................................3
Coverage B – Personal Property ...............................................................................................................3
Coverage C – Loss of Use .........................................................................................................................5
Additional Coverages .................................................................................................................................6
Inflation Coverage ......................................................................................................................................8
LOSSES INSURED............................................................................................................................................8
LOSSES NOT INSURED .................................................................................................................................10
LOSS SETTLEMENT .......................................................................................................................................12
CONDITIONS...................................................................................................................................................13
SECTION II – YOUR LIABILITY
COVERAGES ..................................................................................................................................................18
Coverage L – Personal Liability ...............................................................................................................18
Coverage M – Medical Payments to Others ............................................................................................18
Additional Coverages ...............................................................................................................................18
EXCLUSIONS ..................................................................................................................................................19
CONDITIONS...................................................................................................................................................22
SECTION I AND SECTION II – CONDITIONS ........................................................................................................23
OPTIONAL POLICY PROVISIONS .........................................................................................................................26
©, Copyright, State Farm Mutual Automobile Insurance Company, 2015
FP-7963 Printed in U.S.A.HOMEOWNERS BASIC POLICY
AGREEMENT
We agree to provide the insurance described in this 2. the statements in this agreement are your statements
policy: and are true;
1. based on your payment of premium for the coverages 3. we insure you on the basis your statements are true;
you chose; and
2. based on your compliance with all applicable provi- 4. this policy contains all of the agreements between you
and us. No other agreements apply to this insurance.
sions of this policy; and
When you request changes to this policy, or the infor-
3. in reliance on your statements in this agreement. mation or factors used to calculate the premium for this
You agree, by acceptance of this policy, that: policy changes during the policy period, we may adjust the
premium in accordance with the change during the policy
1. you will pay premiums when due and comply with the period and you must pay any additional premium due
provisions of the policy; within the time we specify.
DEFINITIONS
“You” and “your” mean the “named insured” shown in the 4. “communicable disease” means bacteria, parasite,
Declarations. Your spouse is included if a resident of your virus or other organism transmissible from person to
household. “We”, “us” and “our” mean the Company person due to sexual contact with an affected person
shown in the Declarations. or that person’s discharges.
Certain words and phrases are defined as follows: 5. “Declarations” means the policy Declarations, any
amended Declarations, the most recent renewal no-
1. “bodily injury” means physical harm to a person, in-
tice or certificate, an Evidence of Insurance form or
cluding any resulting sickness or disease. This in- any endorsement changing any of these.
cludes the required care, loss of services and death
resulting therefrom. 6. “fungus” means any type or form of fungus, includ-
Bodily injury does not include: ing mold, mildew, mycotoxins, spores, scents or by-
products produced or released by fungi.
a. the transmission of a communicable disease
7. “insured” means you and, if residents of your house-
by any insured to any other person;
hold:
b. the exposure to any communicable disease by a. your relatives; and
any insured to any other person; or
b. any other person under the age of 21 who is in
c. emotional distress, mental anguish, humiliation,
the care of a person described above.
mental injury, or similar injury unless it arises out
of actual physical injury to some person. Under Section II, “insured” also means:
2. “business” means a trade, profession or occupation. c. with respect to animals or watercraft to which
This includes farming. this policy applies, the person or organization le-
gally responsible for them. However, the animal
3. “business day” means a day other than a Saturday, or watercraft must be owned by you or a person
Sunday or holiday recognized by the state of Texas. included in 7.a. or 7.b. A person or organization
1 FP-7963using or having custody of these animals or wa- trailbike, minibike and personal assistive mo-
tercraft in the course of a business, or without bility device. “Leased” does not include tempo-
permission of the owner, is not an insured; and rary rental;
d. with respect to any vehicle to which this policy d. a “locomotive” while off an insured location.
applies, any person while engaged in your em- “Locomotive” means a self-propelled vehicle for
ployment or the employment of a person in- pulling or pushing freight or passenger cars on
cluded in 7.a. or 7.b. tracks that is large enough to carry a person and
8. “insured location” means: is owned or leased by an insured. “Leased”
does not include temporary rental;
a. the residence premises;
e. a bulldozer, track loader, backhoe, high-hoe,
b. the part of any other premises, other structures trencher, grader, crane, self-propelled scraper,
and grounds used by you as a residence. This excavator, pipe-layer, cherry picker, telehandler,
includes premises, structures and grounds you logging vehicle, mining vehicle or road building
acquire while this policy is in effect for your use vehicle that is owned or leased by an insured
as a residence; while off an insured location. “Leased” does not
c. any premises used by you in connection with the include temporary rental; and
premises included in 8.a. or 8.b.;
f. any vehicle while being towed or pushed by or
d. any part of a premises not owned by an insured carried on a vehicle included in a., b., c., d. or e.
but where an insured is temporarily residing;
The following are not motor vehicles:
e. land owned by or rented to an insured on which
a one or two family dwelling is being constructed a. a boat, camp, home or utility trailer not being
as a residence for an insured; towed or pushed by or carried on a vehicle in-
cluded in a., b., c., d. or e. above;
f. individual or family cemetery plots or burial
vaults owned by an insured; b. a motorized land vehicle in dead storage on an
insured location;
g. any part of a premises occasionally rented to an
insured for other than business purposes; c. a motorized golf cart while used for golfing pur-
poses;
h. vacant land owned by or rented to an insured.
This does not include farm land; and d. a motorized vehicle or trailer designed to assist
the handicapped that is not designed for travel
i. farm land (without buildings), rented or held for on public roads or subject to motor vehicle reg-
rental to others, but not to exceed a total of 500 istration; or
acres, regardless of the number of locations.
e. a commercially manufactured 2, 3 or 4 wheeled
9. “motor vehicle”, when used in Section II of this pol- personal conveyance powered only by or as-
icy, means: sisted by an unmodified motor or engine with a
a. a land motor vehicle designed for travel on pub- manufacturer’s power rating of no more than 1
lic roads or subject to motor vehicle registration; horsepower and capable of a top speed of no
b. a trailer or semi-trailer designed for travel on more than 20 miles per hour.
public roads and subject to motor vehicle regis- 10. “occurrence”, when used in Section II of this policy,
tration; means an accident, including exposure to conditions,
which first results in:
c. a “recreational vehicle” while off an insured lo-
cation. “Recreational vehicle” means a motor- a. bodily injury; or
ized vehicle designed for recreation principally b. property damage;
off public roads that is owned or leased by an
insured. This includes, but is not limited to, a mo- during the policy period. All bodily injury and prop-
torized all terrain vehicle, amphibious vehicle, erty damage resulting from one accident, series of
dune buggy, go-cart, golf cart, snowmobile, related accidents or from continuous and repeated
2 FP-7963exposure to the same general conditions is consid- 13. “residence premises” means:
ered to be one occurrence. a. the one, two, three or four-family dwelling, other
11. “property damage” means physical damage to or structures, and grounds; or
destruction of tangible property, including loss of use b. that part of any other building;
of this property. Theft or conversion of property by
any insured is not property damage. where you reside and which is shown in the Declara-
tions.
12. “residence employee” means an employee of an in-
sured who performs duties, including household or 14. “State Farm Companies” means one or more of the
domestic services, in connection with the mainte- following:
nance or use of the residence premises. This in- a. State Farm Mutual Automobile Insurance Com-
cludes employees who perform similar duties pany;
elsewhere for you. This does not include employees
b. State Farm Fire and Casualty Company; and
while performing duties in connection with the busi-
ness of an insured. c. subsidiaries or affiliates of either a. or b. above.
SECTION I — COVERAGES
COVERAGE A – DWELLING space for paperwork, computer work or use of a
1. Dwelling. We cover the dwelling used principally as telephone, and consists solely of activities that
are:
a private residence on the residence premises
shown in the Declarations. (1) duties of the insured’s employment by an-
other; and
Dwelling includes:
a. structures attached to the dwelling; (2) performed solely by the insured; or
c. rented or held for rental to a person not a tenant
b. materials and supplies located on or adjacent to
of the dwelling, unless used solely as a private
the residence premises for use in the construc- garage.
tion, alteration or repair of the dwelling or other
structures on the residence premises; 3. Property Not Covered. We do not cover:
c. foundation, floor slab and footings supporting a. land, including the land necessary to support
any Coverage A property;
the dwelling; and
b. any costs required to replace, rebuild, stabilize,
d. wall-to-wall carpeting attached to the dwelling. or otherwise restore the land;
2. Dwelling Extension. We cover other structures on c. the costs of repair techniques designed to com-
the residence premises, separated from the dwell- pensate for or prevent land instability to any
ing by clear space. Structures connected to the dwell- property, whether or not insured under Cover-
ing by only a fence, utility line, or similar connection age A; or
are considered to be other structures.
d. trees, shrubs, plants, lawns, artificial grass or
We do not cover other structures: hardscape property.
a. not permanently attached to or otherwise form- COVERAGE B – PERSONAL PROPERTY
ing a part of the realty;
1. Property Covered. We cover personal property
b. used in whole or in part for business purposes; owned or used by an insured while it is anywhere in
unless such use consists solely of use of office the world. This includes structures not permanently
3 FP-7963attached to or otherwise forming a part of the realty. d. $1,500 on securities, checks, cashier’s checks,
At your request, we will cover personal property traveler’s checks, money orders, gift certificates,
owned by others while the property is on the part of gift cards, rechargeable debit cards, phone
the residence premises occupied exclusively by an cards and other negotiable instruments, ac-
insured. At your request, we will also cover per- counts, deeds, evidences of debt, letters of
sonal property owned by a guest or a residence
credit, notes other than bank notes, manu-
employee, while the property is in any other resi-
dence occupied by an insured. scripts, passports and tickets;
We cover personal property usually situated at an in- e. $1,500 on watercraft of all types and outboard
sured’s residence, other than the residence prem- motors, including their trailers, furnishings and
ises, for up to $1,000 or 10% of the Coverage B limit, equipment;
whichever is greater. This limitation does not apply to f. $1,500 on trailers not used with watercraft;
personal property in a newly acquired principal resi-
g. $250 on any one item and $2,500 in the aggre-
dence for the first 30 days after you start moving the
property there. If the residence premises is a newly gate on stamps, trading cards and comic books,
acquired principal residence, personal property in including any of these items that are a part of a
collection;
your immediate past principal residence is not subject
to this limitation for the first 30 days after the inception h. $2,500 for loss by theft of firearms;
of this policy.
i. $2,500 for loss by theft of silverware and
Special Limits of Liability. These limits do not in- goldware;
crease the Coverage B limit. The special limit for
j. $5,000 on any one article and $10,000 in the ag-
each of the following categories is the total limit for gregate for loss by theft of any rug, carpet (ex-
each loss for all property in that category: cept wall-to-wall carpet), tapestry, wall-hanging
a. $200 on money, coins and medals, including or other similar article;
any of these that are a part of a collection, bank k. $1,000 for loss by theft of jewelry, watches, fur
notes, bullion, gold other than goldware, silver
garments and garments trimmed with fur, pre-
other than silverware, and platinum; cious and semi-precious stones; and
b. $10,000 on electronic data processing system l. $5,000 for loss by theft of tools.
equipment used or intended for use in a busi-
ness, including but not limited to computers, 2. Property Not Covered. We do not cover:
tablets, mobile personal communication equip- a. articles separately described and specifically in-
ment, global positioning systems, mobile per- sured in this or any other insurance;
sonal electronic devices used for the b. animals, birds or fish;
reproduction of sound, and standard media or
non-media equipment for use with the above c. any engine or motor-propelled vehicle or ma-
chine, including the parts, designed for move-
devices;
ment on land. We do cover those not licensed
c. $1,500 on property used or intended for use in a for use on public highways which are:
business, including merchandise held as sam-
(1) used solely to service the insured loca-
ples or for sale or for delivery after sale, while on
the residence premises. This coverage is lim- tion; or
ited to $500 on such property away from the res- (2) designed for assisting the handicapped;
idence premises.
d. devices or instruments for the recording or re-
Electronic data processing system equipment or production of video or sound that are:
the recording or storage media used with that
(1) primarily designed for use in; and
equipment is not included under this coverage,
and is addressed in item b. above; (2) while attached to or in;
4 FP-7963an engine or motor-propelled vehicle. COVERAGE C – LOSS OF USE
We do not cover tapes, discs, wires, videos or The most we will pay for the sum of all losses combined
other media that may be used with these de- under Additional Living Expense, Fair Rental Value,
vices or instruments while in the vehicle; and Prohibited Use is the limit of liability shown in the
e. aircraft and parts, except model or hobby aircraft Declarations for Coverage C – Loss of Use.
not used or designed to carry people or cargo; 1. Additional Living Expense. When a Loss Insured
f. property of roomers, boarders, tenants and causes the residence premises to become uninhab-
other residents not related to an insured. We do itable, we will cover the necessary increase in cost
you incur to maintain your standard of living for up to
cover property of roomers, boarders and other
residents related to an insured; 12 months. Our payment is limited to incurred costs
for the shortest of:
g. property regularly rented or held for rental to oth-
ers by an insured. This exclusion does not ap- a. the time required to repair or replace the prem-
ply to property of an insured in a sleeping room ises;
rented to others by an insured; b. the time required for your household to settle
h. property rented or held for rental to others away elsewhere; or
from the residence premises; c. 12 months.
i. any radio devices or transmitters, global posi- This period of time is not limited by the expiration of
tioning systems, radar or laser detectors, anten- this policy. At no time will we pay more than the limit
nas and all other similar equipment permanently of liability shown in the Declarations for Coverage C
attached to an engine or motor-propelled vehi- – Loss of Use. Any normal expenses that are re-
cle; duced or discontinued due to a Loss Insured will be
j. books or records of accounts receivable, ab- subtracted from any amount owed.
stracts or other journals, architectural or tech-
nical drawings, card index systems or other 2. Fair Rental Value. When a Loss Insured causes that
records. This exclusion does not apply to any re- part of the residence premises rented to others or
held for rental by you to become uninhabitable, we
cording or storage media for electronic data pro-
cessing. We will cover the cost of blank books, will cover its fair rental value. Payment shall be for the
cards or other blank material plus the cost of la- shortest time required to repair or replace the part of
the premises rented or held for rental, but not to ex-
bor you incur for transcribing or copying such
records; ceed 6 months. This period of time is not limited by
expiration of this policy. Fair rental value shall not in-
k. recording or storage media for electronic data clude any expense that does not continue while that
processing that cannot be replaced with other of part of the residence premises rented or held for
like kind and quality on the current retail market; rental is uninhabitable.
l. purchased or created data, sound or video that 3. Prohibited Use. We cover Additional Living Expense
cannot be replaced with like kind and quality on and Fair Rental Value, for a continuous period not to
the current retail market which is transferred or exceed two weeks, beginning when a civil authority
downloaded onto mobile communication issues an order of evacuation or prohibits your use of
equipment, global positioning systems or
the residence premises, provided that:
electronic devices used for the reproduction of
video or sound; a. direct physical damage occurs to any property,
m. contraband, or any property used in the course other than covered property located on the res-
of illegal consumption, possession, import, ex- idence premises, arising from a cause of loss
port or trade; or that would be a Loss Insured under this policy if
the damage had occurred to property on the res-
n. hardscape property. idence premises;
5 FP-7963b. the residence premises is within one mile of and prevents access to or from the
property damaged by a cause of loss identified dwelling.
in 3.a. above; and 2. Temporary Repairs. If damage is caused by a Loss
c. the action of the civil authority is taken in re- Insured, we will pay the reasonable and necessary
sponse to: cost you incur for temporary repairs to covered prop-
(1) dangerous physical conditions resulting erty to protect the property from further immediate
damage or loss. This coverage does not increase the
from the continuation of the cause of loss
identified in 3.a. above; limit applying to the property being repaired.
(2) dangerous physical conditions resulting 3. Property Removed. Covered property, while being
from the damage caused by the cause of removed from a premises endangered by a Loss In-
loss identified in 3.a. above; or sured, is covered for any accidental direct physical
loss. This coverage also applies to the property for up
(3) the need to gain free access to property
to 30 days while removed. We will also pay for rea-
damaged by the cause of loss identified in
3.a. above. sonable expenses incurred by you for the removal
and return of the covered property. This coverage
We do not cover loss or expense due to cancellation does not increase the limit applying to the property
of a lease or agreement. being removed.
SECTION I – ADDITIONAL COVERAGES
4. Credit Card, Bank Fund Transfer Card, Forgery
The following Additional Coverages are subject to all the and Counterfeit Money.
terms, provisions, exclusions and conditions of this policy:
a. We will pay up to $1,000 for:
1. Debris Removal. We will pay the reasonable ex- (1) the legal obligation of an insured to pay
penses you incur in the removal of debris of covered
because of the theft or unauthorized use of
property damaged by a Loss Insured. This expense credit cards and bank fund transfer cards
is included in the limit applying to the damaged prop- issued to or registered in an insured’s
erty. The following coverages and limits also apply:
name. If an insured has not complied with
a. When the amount payable for the property dam- all terms and conditions under which the
age plus the debris removal exceeds the limit for cards are issued, we do not cover use by
damaged property, an additional 5% of that limit an insured or anyone else;
is available for debris removal expense. (2) loss to an insured caused by forgery or al-
b. We will also pay up to $1,000 in the aggregate teration of any check or negotiable instru-
for each loss to cover the reasonable expenses ment; and
you incur in the removal of tree debris from the (3) loss to an insured through acceptance in
residence premises, unless otherwise excluded. good faith of counterfeit United States or
This coverage applies when: Canadian paper currency.
(1) the tree has caused a Loss Insured to Cov- No deductible applies to this coverage.
erage A property; or
We will not pay more than the limit stated above
(2) the tree debris felled by windstorm, hail, or for forgery or alteration committed by any one
weight of snow or ice blocks: person. This limit applies when the forgery or al-
(a) the driveway, on the residence prem- teration involves one or more instruments in the
ises, and prevents land motor vehicle same loss.
access to or from the dwelling; or b. We do not cover loss arising out of business
(b) a ramp designed to assist the handi- pursuits or dishonesty of an insured.
capped, on the residence premises, c. Defense:
6 FP-7963(1) We may make any investigation and settle We will also pay for the removal of that ash, dust or
any claim or suit that we decide is appropri- particulate matter which has caused direct physical
ate. Our obligation to defend claims or suits loss to a covered building or covered property con-
ends when the amount we pay for the loss tained in a building.
equals our limit of liability.
One or more volcanic eruptions that occur within a
(2) If claim is made or a suit is brought against 72-hour period shall be considered one volcanic
an insured for liability under the Credit eruption.
Card or Bank Fund Transfer Card cover- This coverage does not increase the limit applying to
age, we will provide a defense. This de- the damaged property.
fense is at our expense by counsel of our
choice. 8. Collapse. We insure only for direct physical loss to
covered property involving the sudden, entire col-
(3) We have the option to defend at our ex-
lapse of a building or any part of a building.
pense an insured or an insured’s bank
against any suit for the enforcement of pay- Collapse means actually fallen down or fallen into
ment under the Forgery coverage. pieces. It does not include settling, cracking, shrink-
ing, bulging, expansion, sagging or bowing.
5. Refrigerated Products. We will pay up to $1,000 un-
der Coverage B to cover the contents of deep freeze The collapse must be directly and immediately
or refrigerated units on the residence premises for caused only by one or more of the following:
loss due to power failure or mechanical failure. If me- a. perils described in SECTION I – LOSSES IN-
chanical failure or power failure is known to you, all SURED, COVERAGE A – DWELLING AND
reasonable means must be used to protect the prop- COVERAGE B – PERSONAL PROPERTY.
erty insured from further damage or this coverage is These perils apply to covered building and per-
void. Power failure or mechanical failure shall not in- sonal property for loss insured by this Addi-
clude: tional Coverage;
a. removal of a plug from an electrical outlet; or b. weight of contents, equipment, animals or peo-
ple;
b. turning off an electrical switch unless caused by
c. weight of ice, snow, sleet or rain which collects
a Loss Insured. on a roof, porch or deck; or
This coverage does not increase the limit applying to d. use of defective material or methods in the con-
the damaged property. struction (includes remodeling or renovation)
6. Arson Reward. We will pay $1,000 for information of the building, if the collapse occurs during
which leads to an arson conviction in connection with the course of the construction of the building.
a fire loss to property covered by this policy. This cov- Loss to an awning, fence, patio, pavement, swimming
erage may increase the limit otherwise applicable. pool, underground pipe, flue, drain, cesspool, septic
However, the $1,000 limit shall not be increased re- tank, foundation, retaining wall, bulkhead, pier, wharf,
gardless of the number of persons providing infor- dock, trellis or antenna or its supporting structure is
mation. not included under items b., c., and d. unless the loss
7. Volcanic Action. We cover direct physical loss to a is the direct and immediate cause of the collapse of
covered building or covered property contained in a the building.
building resulting from the eruption of a volcano when This coverage does not increase the limit applying to
the loss is directly and immediately caused by: the damaged property.
a. volcanic blast or airborne shock waves; 9. Locks. We will pay up to $1,000 to re-key locks on
b. ash, dust or particulate matter; or exterior doors of the dwelling located on the resi-
dence premises, when the keys to those locks are a
c. lava flow. part of a covered theft loss.
7 FP-7963No deductible applies to this coverage. This coverage does not increase the limit applying to
10. Tear Out. If a Loss Insured to Coverage A property the damaged property.
is caused by water or steam escaping from a system INFLATION COVERAGE
or appliance, we will also pay the reasonable cost
you incur to tear out and replace only that particular The limits of liability shown in the Declarations for Cover-
part of the building owned by you necessary to gain age A and Coverage B will be increased at the same rate
access to the specific point of that system or appli- as the increase in the Inflation Coverage Index shown in
ance from which the water or steam escaped. We the Declarations.
will not cover the cost of repairing or replacing the
system or appliance itself. This coverage does not To find the limits on a given date:
increase the limit applying to Coverage A property. 1. divide the Index on that date by the Index as of the
11. Subsurface Water. We will pay for accidental direct effective date of this Inflation Coverage provision;
physical loss to Coverage A property as a result of then
abrupt and accidental breakage or rupture of a water 2. multiply the resulting factor by the limits of liability for
supply line or domestic pipe. Coverage applies only
Coverage A and Coverage B separately.
if the water supply line or domestic pipe is located in
or just beneath the concrete slab, and if below the The limits of liability will not be reduced to less than the
slab, must be located in fill, stone, or sand substrate. amounts shown in the Declarations.
We will not pay for:
If during the term of this policy the Coverage A limit of lia-
a. the cost of repairing or replacing the water sup- bility is changed at your request, the effective date of this
ply line or domestic pipe; or Inflation Coverage provision is changed to coincide with
b. the cost of repairing or replacing the slab. the effective date of such change.
SECTION I — LOSSES INSURED
COVERAGE A – DWELLING AND COVERAGE B – This peril includes loss to watercraft of all types and
PERSONAL PROPERTY their trailers, furnishings, equipment, and outboard
motors, only while inside a fully enclosed building.
We insure for accidental direct physical loss to property
described in Coverage A and Coverage B caused by the 3. Explosion.
following perils, except as provided in SECTION I – 4. Riot or civil commotion.
LOSSES NOT INSURED: 5. Aircraft, including self-propelled missiles and space-
1. Fire or lightning. craft.
2. Windstorm or hail. This peril does not include loss 6. Vehicles, meaning impact by a vehicle. This peril
to the interior of a building or the property contained does not include loss caused by a vehicle owned or
in a building caused by rain, snow, sleet, sand or operated by a resident of the residence premises.
dust. This limitation does not apply when the direct
7. Smoke, meaning sudden and accidental damage
force of wind or hail damages the building causing an
opening in a roof or wall and the rain, snow, sleet, from smoke.
sand or dust enters through this opening. This peril does not include loss caused by smoke
This peril does not include loss to outdoor antennas from agricultural smudging or industrial operations.
caused directly or indirectly by ice (other than hail), 8. Vandalism or malicious mischief, meaning only
snow or sleet, all whether driven by wind or not. willful and malicious damage to or destruction of
8 FP-7963property. This peril does not include loss if the dwell- (1) property while at any other residence
ing has been vacant for more than 30 consecutive owned, rented to, or occupied by an in-
days immediately before the loss. A dwelling being sured, except while an insured is tempo-
constructed is not considered vacant. rarily residing there. Property of a student
who is an insured is covered while at a res-
9. Theft, including attempted theft and loss of property
from a known location when it is probable that the idence away from home;
property has been stolen. (2) watercraft of all types, including their fur-
This peril does not include: nishings, equipment and outboard motors;
or
a. loss of a precious or semi-precious stone from
its setting; (3) trailers and campers designed to be pulled
by or carried on a vehicle.
b. loss caused by theft:
If the residence premises is a newly acquired
(1) committed by an insured or by any other principal residence, property in the immediate
person regularly residing on the insured past principal residence shall not be considered
location. Property of a student who is an property away from the residence premises for
insured is covered while located at a resi- the first 30 days after the inception of this policy.
dence away from home, if the theft is com- 10. Falling objects. This peril does not include loss to
mitted by a person who is not an insured; the interior of a building or the property contained in
(2) in or to a dwelling under construction or of a building unless the roof or an exterior wall of the
materials and supplies for use in the con- building is first damaged by a falling object. Damage
struction until the dwelling is completed and to the falling object itself is not included.
occupied; or 11. Weight of ice, snow or sleet which causes damage
to a building or the property contained in a building.
(3) from the part of a residence premises
rented to others: This peril does not include loss to a swimming pool,
hot tub or spa, including their filtration and circulation
(a) caused by a tenant, members of the systems, fence, pavement, patio, foundation, retain-
tenant’s household, or the tenant’s ing wall, bulkhead, pier, wharf, outdoor antenna or
employees; dock.
(b) of money, bank notes, bullion, gold, 12. Sudden and accidental discharge or overflow of
goldware, silver, silverware, pewter- water or steam from within a plumbing, heating, air
ware, platinum, coins and medals; conditioning or automatic fire protective sprinkler sys-
tem, or from within a household appliance.
(c) of securities, checks, cashier’s checks,
This peril does not include loss:
traveler’s checks, money orders, gift cer-
tificates, gift cards, rechargeable debit a. to the system or appliance from which the water
cards, phone cards and other negotiable or steam escaped;
instruments, accounts, deeds, evi- b. caused by or resulting from freezing, except as
dences of debt, letters of credit, notes specifically provided in SECTION I – LOSSES
other than bank notes, manuscripts, INSURED, Freezing;
passports and tickets; or c. caused by or resulting from water or sewage from
(d) of jewelry, watches, fur garments and outside the residence premises plumbing sys-
garments trimmed with fur, precious tem that enters through sewers or drains, or wa-
ter which enters into and overflows from within a
and semi-precious stones;
sump pump, sump pump well or any other sys-
c. loss caused by theft that occurs away from the tem designed to remove subsurface water
residence premises of: which is drained from the foundation area;
9 FP-7963d. caused by or resulting from continuous or re- This peril does not include loss to a swimming pool,
peated seepage or leakage of water or steam hot tub or spa, including their filtration and circulation
which occurs over a period of time and results systems.
in deterioration, corrosion, rust, or wet or dry This peril does not include loss on the residence
rot; or
premises while the dwelling is vacant, unoccupied or
e. if the dwelling has been vacant for more than 30 being constructed, unless you have used reasonable
consecutive days immediately before the loss. A care to:
dwelling being constructed is not considered va- a. maintain heat in the building; or
cant.
b. shut off the water supply and drain the system
13. Sudden and accidental tearing asunder, cracking,
and appliances of water.
burning or bulging of a steam or hot water heating
system, an air conditioning or automatic fire protec- 15. Breakage of glass, meaning damage to property
tive sprinkler system, or an appliance for heating wa- caused by breakage of glass which is a part of a
ter. building on the residence premises. There is no
coverage for loss or damage to the glass.
This peril does not include loss:
This peril does not include loss if the dwelling has
a. caused by or resulting from freezing, except as been vacant for more than 30 consecutive days im-
specifically provided in SECTION I – LOSSES mediately before the loss. A dwelling being con-
INSURED, Freezing; or structed is not considered vacant.
b. caused by or resulting from continuous or re- 16. Wild Bear or Deer, meaning damage to the interior
peated seepage or leakage of water or steam of the dwelling on the residence premises and prop-
which occurs over a period of time and results in erty contained in that dwelling caused by the actions
deterioration, corrosion, rust, or wet or dry rot. of a wild bear or deer.
14. Freezing of a plumbing, heating, air conditioning or This includes damage to the entryway or window the
automatic fire protective sprinkler system, or of a wild bear or deer used to gain access to the interior
household appliance. of the dwelling.
SECTION I — LOSSES NOT INSURED
1. We do not insure under any coverage for any loss b. Earth Movement, meaning the sinking, rising,
which would not have occurred in the absence of one shifting, expanding, or contracting of earth, all
or more of the following excluded events. We do not regardless of whether combined with water.
insure for such loss regardless of: (a) the cause of the Earth movement includes but is not limited to:
excluded event; or (b) other causes of the loss; or (c)
whether other causes acted concurrently or in any se- (1) earthquake;
quence with the excluded event to produce the loss; or
(2) landslide, mudslide, or mudflow;
(d) whether the event occurs suddenly or gradually, in-
volves isolated or widespread damage, arises from (3) sinkhole or subsidence;
natural or external forces, or occurs as a result of any
combination of these: (4) erosion;
a. Ordinance or Law, meaning enforcement of (5) movement resulting from:
any ordinance or law regulating the construc- (a) improper compaction;
tion, repair or demolition of a building or other
structure. (b) site selection;
10 FP-7963(c) natural resource extraction activities specifically provided in SECTION I – ADDI-
occurring on or off the residence TIONAL COVERAGES, Subsurface Wa-
premises; or ter; or
(d) any other external forces; (4) material carried or otherwise moved by any
(6) pressure by surface or subsurface earth or of the water, as described in paragraphs (1)
fill; through (3) above.
(7) excavation collapse occurring on or off the However, we do insure for any direct loss by fire,
residence premises; explosion or theft resulting from water, provided
the resulting loss is itself a Loss Insured.
(8) any volcanic activity, except as specifically
provided in SECTION I – ADDITIONAL d. Neglect, meaning neglect of the insured to use
all reasonable means to save and preserve
COVERAGES, Volcanic Action.
property at and after the time of a loss, or when
However, we do insure for any direct loss by fire property is endangered.
resulting from earth movement, provided the re-
sulting fire loss is itself a Loss Insured. e. War, including any undeclared war, civil war, in-
surrection, rebellion, revolution, warlike act by a
c. Water, meaning: military force or military personnel, destruction
(1) flood, surface water, waves (including tidal or seizure or use for a military purpose, and in-
wave, tsunami, and seiche), tides, tidal wa- cluding any consequence of any of these. Dis-
ter, overflow of any body of water, or spray charge of a nuclear weapon shall be deemed a
or surge from any of these, all whether warlike act even if accidental.
driven by wind or not.
f. Nuclear Hazard, meaning any nuclear reaction,
This includes any release, overflow, es- radiation, or radioactive contamination, all
cape, or rising of any body of water, or any
whether controlled or uncontrolled or however
water held, contained, controlled, or di-
verted by a dam, levee, dike, or any type of caused, or any consequence of any of these.
water containment, diversion, or flood con- Loss caused by the nuclear hazard shall not be
trol device. considered loss caused by fire, explosion or
smoke.
Surface water does not include water solely
caused by the release of water from a However, we do insure for any direct loss by fire
swimming pool, spigot, sprinkler system, resulting from the nuclear hazard, provided the
hose, or hydrant; resulting fire loss is itself a Loss Insured.
(2) water or sewage from outside the resi- g. Fungus. We also do not cover:
dence premises plumbing system that en- (1) any loss of use or delay in rebuilding, re-
ters through sewers or drains, or water that pairing or replacing covered property, in-
enters into and overflows from within a cluding any associated cost or expense,
sump pump, sump pump well, or any other due to interference at the residence prem-
system designed to remove subsurface ises or location of the rebuilding, repair or
water that is drained from the foundation replacement, by fungus;
area;
(2) any remediation of fungus, including the
(3) water below the surface of the ground, cost to:
including water that exerts pressure on,
or seeps or leaks through a building, (a) remove the fungus from covered
sidewalk, driveway, foundation, swim- property or to repair, restore, or re-
ming pool, or other structure, except as place that property; or
11 FP-7963(b) tear out and replace any part of the more of the following: (a) directly or indirectly cause,
building or other property as needed contribute to or aggravate the loss; or (b) occur be-
to gain access to the fungus; or fore, at the same time, or after the loss or any other
(3) the cost of any testing or monitoring of air cause of the loss:
or property to confirm the type, absence, a. conduct, act, failure to act, or decision of any
presence or level of fungus, whether per- person, group, organization or governmental
formed prior to, during or after removal, re- body whether intentional, wrongful, negligent, or
pair, restoration or replacement of covered without fault;
property. b. defect, weakness, inadequacy, fault or un-
However, the presence of fungus on covered soundness in:
property does not negate coverage for that part (1) planning, zoning, development, surveying,
of the covered property otherwise damaged by
siting;
a covered loss under Section I of this policy.
(2) design, specifications, workmanship, con-
h. Intentional Losses. If any insured intentionally
struction, grading, compaction;
causes or procures a loss to property covered
under this policy, we will not pay any insured for (3) materials used in construction or repair; or
this loss. This applies regardless of whether the (4) maintenance;
insured is charged with or convicted of a crime.
of any property (including land, structures, or im-
This does not apply to an insured who did not provements of any kind) whether on or off the
participate in, cooperate in, or contribute to caus- residence premises; or
ing or procuring the loss.
c. weather conditions.
2. We do not insure under any coverage for any loss
consisting of one or more of the items below. Further, However, we do insure for any resulting loss from
we do not insure for loss described in paragraph 1. items a., b. and c. provided the resulting loss is itself
immediately above regardless of whether one or a Loss Insured.
SECTION I — LOSS SETTLEMENT
We will settle covered property losses according to the fol- used by the building trades in standard new con-
lowing. struction. We will not pay the cost to repair or
replace obsolete, antique or custom construc-
COVERAGE A – DWELLING
tion with like kind and quality;
Replacement Cost Loss Settlement – Common
b. until actual repair or replacement is completed,
Construction.
we will pay only the actual cash value at the time
1. We will pay the cost to repair or replace with common of the loss of the damaged part of the property,
construction and for the same use on the premises up to the applicable limit of liability shown in the
shown in the Declarations, the damaged part of the Declarations, not to exceed the cost to repair or
property covered under SECTION I – COVERAGES, replace the damaged part of the property as de-
COVERAGE A – DWELLING, except for wood scribed in 1.a. above;
fences, or damage to roof surfaces caused by wind-
storm or hail, subject to the following: c. when the repair or replacement is actually com-
pleted as described in 1.a. above, we will pay
a. we will pay only for repair or replacement of the the covered additional amount you actually and
damaged part of the property with common con- necessarily spend to repair or replace the dam-
struction techniques and materials commonly aged part of the property, or an amount up to the
12 FP-7963applicable limit of liability shown in the Declara- COVERAGE B – PERSONAL PROPERTY
tions, whichever is less;
Depreciated Loss Settlement.
d. to receive any additional payments on a replace-
1. We will pay the actual cash value of the damaged part
ment cost basis, you must complete the actual of the property at the time of loss for property covered
repair or replacement of the damaged part of the under SECTION I – COVERAGES, COVERAGE B –
property within two years after the date of loss, PERSONAL PROPERTY, except for property listed
and give prompt notice to us after the work has in item 2. below.
been completed; and
2. We will pay market value at the time of loss for:
e. we will not pay for increased costs resulting from a. antiques, fine arts, paintings, statuary and simi-
enforcement of any ordinance or law regulating lar articles which by their inherent nature cannot
the construction, repair or demolition of a build- be replaced with new articles;
ing or other structure.
b. articles whose age or history contribute substan-
2. Wood Fences: We will pay the actual cash value at tially to their value including, but not limited to,
the time of loss for loss or damage to wood fences, memorabilia, souvenirs and collectors items;
not to exceed the limit of liability shown in the Decla- and
rations for COVERAGE A – DWELLING EXTEN- c. property not useful for its intended purpose.
SION. However, we will not pay an amount exceeding the
3. Damage to Roof Surfaces caused by Windstorm or smallest of the following for items 1. and 2. above:
Hail: We will pay the actual cash value at the time of a. our cost to replace at the time of loss;
loss for loss or damage to roof surfaces caused by
b. the full cost of repair;
windstorm or hail, up to the applicable limit of liability
shown in the Declarations, not to exceed the cost to c. any special limit of liability described in the policy; or
repair or replace the damaged roof. d. any applicable Coverage B limit of liability.
SECTION I — CONDITIONS
1. Insurable Interest and Limit of Liability. Even if a. give prompt notice to us or our agent. Also notify
more than one person has an insurable interest in the the police if the loss is caused by theft. Also no-
property covered, we shall not be liable: tify the credit card company or bank if the loss
a. to the insured for an amount greater than the involves a credit card or bank fund transfer card;
insured’s interest; or b. protect the property from further damage or loss,
b. for more than the applicable limit of liability. make reasonable and necessary temporary re-
pairs required to protect the property, keep an
Fire Insurance: Total Loss Of Real Property. A fire accurate record of repair expenditures;
insurance policy, in case of a total loss by fire of prop-
erty insured, shall be held and considered to be a liq- c. prepare an inventory of damaged or stolen per-
uidated demand against the company for the full sonal property. Show in detail the quantity, de-
amount of such policy. This subsection does not ap- scription, age, replacement cost and amount of
ply to personal property. loss. Attach to the inventory all bills, receipts and
related documents that substantiate the figures
2. Your Duties After Loss. After a loss to which this in the inventory;
insurance may apply, you shall see that the following
duties are performed: d. as often as we reasonably require:
13 FP-7963(1) exhibit the damaged property; filing the claim within this time period, subject to
(2) provide us with records and documents we the following conditions:
request and permit us to make copies;
(1) For the purpose of this provision, good
(3) submit to and subscribe, while not in the cause means: objective facts beyond your
presence of any other insured:
control that reasonably caused you to fail
(a) statements; and to file a claim under the policy within the
(b) examinations under oath. A parent or one-year claim-filing deadline;
legal guardian may be present when
(2) If good cause is shown, we may extend the
the insured being examined under
oath is a minor; and one-year claim-filing period. The extension
is limited to the claim for which it is granted;
(4) produce employees, members of the in-
and
sured’s household or others for examination
under oath to the extent it is within the in- (3) A request for an extension must:
sured’s power to do so; and
(a) be submitted to us in writing;
e. submit to us, within 91 days after our request,
your signed, sworn proof of loss which sets forth, (b) describe the good cause that caused
you to miss the one-year claim-filing
to the best of your knowledge and belief:
deadline; and
(1) the time and cause of loss;
(c) be signed by you or your legal repre-
(2) interest of the insured and all others in the sentative.
property involved and all encumbrances
3. Loss to a Pair or Set. In case of loss to a pair or set,
on the property;
we may elect to:
(3) other insurance which may cover the loss;
a. repair or replace any part to restore the pair or
(4) changes in title or occupancy of the prop- set to its value before the loss; or
erty during the term of this policy;
b. pay the difference between the depreciated
(5) specifications of any damaged building and value of the property before and after the loss.
detailed estimates for repair of the damage;
4. Appraisal. If you and we fail to agree on the amount
(6) an inventory of damaged or stolen personal of loss, either party can demand that the amount of
property described in 2.c.; the loss be set by appraisal. Only you or we may de-
(7) receipts for additional living expenses in- mand appraisal. A demand for appraisal must be in
curred and records supporting the fair writing. You must comply with Your Duties After
rental value loss; and Loss before making a demand for appraisal. At least
10 days before demanding appraisal, the party seek-
(8) evidence or affidavit supporting a claim un-
ing appraisal must provide the other party with writ-
der the Credit Card, Bank Fund Transfer ten, itemized documentation of a specific dispute as
Card, Forgery and Counterfeit Money cov- to the amount of the loss, identifying separately each
erage, stating the amount and cause of
item being disputed.
loss.
a. Each party will select a competent, disinter-
f. you must file a claim with us not later than one ested appraiser and notify the other party of the
year after the date of the loss that is the subject appraiser’s identity within 20 days of receipt of
of the claim unless you show good cause for not the written demand for appraisal.
14 FP-7963b. The appraisers shall then attempt to set the be licensed or certified as required by the appli-
amount of the loss of each item in dispute as cable jurisdiction:
specified by each party, and jointly submit to (1) an engineer or architect with experience
each party a written report of agreement signed and training in building construction, repair,
by them. In all instances the written report of estimating, or investigation of the type of
agreement shall be itemized and state sepa- property damage in dispute;
rately the actual cash value, replacement cost,
and if applicable, the market value of each item (2) an adjuster or public adjuster with experi-
in dispute. ence and training in estimating the type of
property damage in dispute; or
The written report of agreement shall set the
amount of the loss of each item in dispute and (3) a contractor with experience and training in
shall be binding upon you and us. the construction, repair, and estimating of
the type of property damage in dispute.
c. If the two appraisers fail to agree upon the
amount of the loss within 30 days, unless the e. A person shall not serve as an appraiser or um-
period of time is extended by mutual agreement, pire if that person, any employee of that person,
they shall select a competent, disinterested um- that person’s employer, or any employee of their
pire and shall submit their differences to the um- employer:
pire. If the appraisers are unable to agree upon (1) has performed services for either party with
an umpire within 15 days: respect to the claim at issue in the ap-
(1) you or we may make a written application praisal; or
for a judge of a court of record in the same (2) has a financial interest in the outcome of
state and county (or city if the city is not the claim at issue in the appraisal.
within a county) where the residence
premises is located to select an umpire; f. Each party shall be responsible for the compen-
sation of their selected appraiser. Reasonable
(2) the party requesting the selection described expenses of the appraisal and the reasonable
in item c.(1) must provide the other party: compensation of the umpire shall be paid
(i) written notice of the intent to file, iden- equally by you and us.
tifying the specific location and identity g. You and we do not waive any rights by demand-
of the court, at least 10 days prior to ing or submitting to an appraisal, and retain all
submission of the written application;
contractual rights to determine if coverage ap-
and
plies to each item in dispute.
(ii) a copy of the written application; and
h. Appraisal is only available to determine the
(3) a written report of agreement, as required amount of the loss of each item in dispute. The
in item b., signed by any two (appraisers or appraisers and the umpire have no authority to
appraiser and umpire) shall set the amount
decide:
of the loss of each item in dispute and shall
be binding upon you and us. In all in- (1) any other questions of fact;
stances the written report of agreement shall
(2) questions of law;
be itemized and state separately the actual
cash value, replacement cost, and if appli- (3) questions of coverage;
cable, the market value of each item in dis-
pute. (4) other contractual issues; or
d. To qualify as an appraiser or umpire for a loss to (5) to conduct appraisal on a class-wide basis.
property described in COVERAGE A – DWELL- i. Appraisal is a non-judicial proceeding and does
ING, a person must be one of the following and not provide for or require arbitration. Neither
15 FP-7963party will be awarded attorney fees. The ap- b. We will pay for any covered loss of or damage
praisal award shall not be entered as a judgment to buildings or structures to the mortgagee
in a court. shown in the Declarations as interests appear.
j. A party may not demand appraisal after that c. The mortgagee has the right to receive loss
party brings suit or action against the other party payment even if the mortgagee has started
relating to the amount of loss. foreclosure or similar action on the building or
structure.
5. Other Insurance. If a loss covered by this policy is
also covered by other insurance, we will pay only our d. If we deny your claim because of your acts or
share of the loss. Our share is the proportion of the because you have failed to comply with the
loss that the applicable limit under this policy bears to terms of this policy, the mortgagee has the right
the total amount of insurance covering the loss. to receive loss payment if the mortgagee:
6. Suit Against Us. No suit or action can be brought (1) at our request, pays any premiums due
unless: under this policy, if you have failed to do
so;
a. there has been compliance with the policy pro-
visions; and (2) submits a signed, sworn statement of loss
within 91 days after receiving notice from
b. except as provided in item c. below, suit or ac-
tion brought against us is started within two us of your failure to do so; and
years and one day after the cause of action ac- (3) has notified us of any change in ownership,
crues; occupancy or substantial change in risk
c. with respect to a loss caused by windstorm or known to the mortgagee.
hail in the catastrophe area as defined under All of the terms of this policy will then apply di-
Texas law, suit or action brought against us is rectly to the mortgagee.
started within the earlier of:
Failure of the mortgagee to comply with d.(1),
(1) two years from the date we accept or reject d.(2) or d.(3) above shall void this policy as to
the claim; or the interest of the mortgagee.
(2) three years from the date of the loss that is e. If we pay the mortgagee for any loss or damage
the subject of the claim. and deny payment to you because of your acts
7. Our Option. We may repair or replace any part of the or because you have failed to comply with the
property damaged or stolen with similar property. Any terms of this policy:
property we pay for or replace becomes our property. (1) the mortgagee’s rights under the mortgage
8. Loss Payment. We will adjust all losses with you. We will be transferred to us to the extent of the
will pay you unless some other person is named in amount we pay; and
the policy or is legally entitled to receive payment. (2) the mortgagee’s right to recover the full
If we notify you that we will pay your claim, or part of amount of the mortgagee’s claim will not be
your claim, we must pay within 5 business days after impaired.
we notify you. If payment of your claim or part of your At our option, we may pay to the mortgagee the
claim requires the performance of an act by you, we
whole principal on the mortgage plus any ac-
must pay within 5 business days after the date you
perform the act. crued interest. In this event, your mortgage and
note will be transferred to us and you will pay
9. Abandonment of Property. We need not accept any your remaining mortgage debt to us.
property abandoned by an insured.
f. If this policy is cancelled, we will give the mort-
10. Mortgage Clause (without contribution). gagee specifically named in the Declarations
a. The word “mortgagee” includes trustee. written notice of cancellation.
16 FP-7963You can also read
