INSUREDCopy

FMHO 943 (ED. 11-96)

To serve you best...

THIS POLICY IS NON ASSESSABLE

Liberty Mutual Group

Liberty Mutual has over 350 service offices throughout the United States

and Canada. Please contact your service office shown on your Declarations

Page to report losses, or for any changes or questions about your insurance.

Payments should be sent to the office indicated on your bill.

LIBERTYGUARD DELUXE HOMEOWNERS POLICY

HO 00 03 EDITION 04 91

TABLE OF CONTENTS Page

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3-4

9-10

8-9

10-11

11-13

14-15

15-16

Page

4-5

7-8

Agreement

Definitions

SECTION I - PROPERTY COVERAGES

Coverage A Dwelling...........................

Coverage B Other Structures

Coverage C Personal Property

Additional Coverages...........................

Debris Removal................................

Reasonable Repairs...........................

Trees, Shrubs and Other Plants

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

Property Removed

Credit Card, Fund Transfer Card, Forgery

Loss Assessment

Collapse

Glass or Safety Glazing Material

SECTION I - PERILS INSURED AGAINST

SECTION I - EXCLUSIONS

Ordinance or Law................................

Earth Movement .................................

Water Damage

Power Failure .....................................

Neglect

War

Nuclear Hazard

Intentional Loss ..................................

SECTION I - CONDITIONS

Insurable Interest and Limit of Liability

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

Loss Settlement..................................

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

Glass Replacement

Appraisal

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and Counterfeit Money

Our Option ........................................

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

Mortgage Clause.................................

No Benefit To Bailee............................

Nuclear Hazard Clause.........................

Recovered Property.............................

Volcanic Eruption Period ......................

SECTION II - LIABILITY COVERAGES

Coverage E Personal Liability ................

Coverage F Medical Payments to Others.

SECTION II - EXCLUSIONS

Coverage E Personal Liability and Coverage F

Medical Payments to Others ............

Coverage E Personal Liability ................

Coverage F Medical Payments to Others

SECTION II - ADDITIONAL COVERAGES

Claim Expenses ..................................

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

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

Loss Assessment................................

SECTION II - CONDITIONS

Limit of Liability

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

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

Duties of an Injured Person ..................

Payment of Claim ...............................

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

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

Other Insurance ..................................

SECTIONS I AND II - CONDITIONS

Policy Period ......................................

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

Liberalization Clause ..........................

Waiver or Change of Policy Provisions ...

Cancellation .......................................

Non-Renewal

Assignment .......................................

Subrogation .......................................

Death................................................

*MUTUAL POLICY CONDITIONS

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3Coverage D Loss of Use.......................

Coverage A Dwelling and Coverage B

Other Structures.............................

6-7

Coverage C Personal Property...............

5-6Landlord's Furnishings ......................

Other Insurance

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

Loss Payment.....................................

.................................

8Weather Conditions

Acts or Decisions

Faulty, Inadequate or Defective.............

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*These conditions apply only if Liberty Mutual Fire Insurance Company is shown in the Declarations as the

insurer.

HOMEOWNERS 00 03 04 91

AGREEMENT

DEFINITIONS

SECTION I - PROPERTY COVERAGES

Page 1 of 16

We will provide the insurance described in this policy in return for the premium and compliance with all

applicable provisions of this policy.

In this policy, "you" and "your" refer to the

"named insured" shown in the Declarations and

the spouse if a resident of the same household.

"We," "us" and "our" refer to the Company

providing this insurance. In addition, certain words

and phrases are defined as follows:

1. "Bodily injury" means bodily harm, sickness or

disease, including required care, loss of

services and death that results.

2. "Business" includes trade, profession or

occupation.

3. "Insured" means you and residents of your

household who are:

a. Your relatives; or

b. Other persons under the age of 21 and in

the care of any person named above.

Under Section II, "insured" also means:

c. With respect to animals or watercraft to

which this policy applies, any person or

organization legally responsible for these

animals or watercraft which are owned by

you or any person included in 3.a. or 3.b.

above. A person or organization using or

having custody of these animals or

watercraft in the course of any "business"

or without consent of the owner is not an

"insured";

d. With respect to any vehicle to which this

policy applies:

(1) Persons while engaged in your employ

or that of any person included in 3.a.

or 3.b. above; or

(2) Other persons using the vehicle on an

"insured location" with your consent.

4. "Insured location" means:

a. The "residence premises";

b. The part of other premises, other

structures and grounds used by you as a

residence and:

(1) Which is shown in the Declarations; or

(2) Which is acquired by you during the

policy period for your use as a

residence;

c. Any premises used by you in connection

with a premises in 4.a. and 4.b. above;

d. Any part of a premises:

(1) Not owned by an "insured"; and

(2) Where an "insured" is temporarily

residing;

e. Vacant land, other than farm land, owned

by or rented to an "insured";

f. Land owned by or rented to an "insured"

on which a one or two family dwelling is

being built as a residence for an "insured";

g. Individual or family cemetery plots or burial

vaults of an "insured"; or

h. Any part of a premises occasionally rented

to an "insured" for other than "business"

use.

5. "Occurrence" means an accident, including

continuous or repeated exposure to

substantially the same general harmful

conditions, which results, during the policy

period, in:

a. "Bodily injury"; or

b. "Property damage."

6. "Property damage" means physical injury to,

destruction of, or loss of use of tangible

property.

7. "Residence employee" means:

a. An employee of an "insured" whose duties

are related to the maintenance or use of

the "residence premises," including

household or domestic services; or

b. One who performs similar duties elsewhere

not related to the "business" of an

"insured."

8. "Residence premises" means:

a. The one family dwelling, other structures,

and grounds; or

b. That part of any other building;

where you reside and which is shown as the

"residence premises" in the Declarations.

"Residence premises" also means a two family

dwelling where you reside in at least one of the

family units and which is shown as the

"residence premises" in the Declarations.

COVERAGE A - Dwelling

We cover:

1. The dwelling on the "residence premises"

shown in the Declarations,

including structures attached to the dwelling;

and

2. Materials and supplies located on or next to

the "residence premises" used to construct,

alter or repair the dwelling or other structures

on the "residence premises."

This coverage does not apply to land, including

land on which the dwelling is located.

Page 2 of 16

COVERAGE B - Other Structures

We cover other structures on the "residence

premises" set apart from the dwelling by clear

space. This includes structures connected to the

dwelling by only a fence, utility line, or similar

connection.

This coverage does not apply to land, including

land on which the other structures are located.

We do not cover other structures:

1. Used in whole or in part for "business"; or

2. Rented or held for rental to any person not a

tenant of the dwelling, unless used solely as a

private garage.

The limit of liability for this coverage will not be

more than 10% of the limit of liability that applies

to Coverage A. Use of this coverage does not

reduce the Coverage A limit of liability.

COVERAGE C - Personal Property

We cover personal property owned or used by an

"insured" while it is anywhere in the world. At

your request, we will cover personal property

owned by:

1. Others while the property is on the part of the

"residence premises" occupied by an

"insured";

2. A guest or a "residence employee," while the

property is in any residence occupied by an

"insured."

Our limit of liability for personal property usually

located at an "insured's" residence, other than the

"residence premises," is 10% of the limit of

liability for Coverage C, or $1000, whichever is

greater. Personal property in a newly acquired

principal residence is not subject to this limitation

for the 30 days from the time you begin to move

the property there.

Special Limits of Liability. These limits do not

increase the Coverage C limit of liability. The

special limit for each numbered category below is

the total limit for each loss for all property in that

category.

1. $200 on money, bank notes, bullion, gold

other than goldware, silver other than

silverware, platinum, coins and medals.

2. $1000 on securities, accounts, deeds,

evidences of debt, letters of credit, notes other

than bank notes, manuscripts, personal

records, passports, tickets and stamps. This

dollar limit applies to these categories

regardless of the medium (such as paper or

computer software) on which the material

exists.

This limit includes the cost to research, replace

or restore the information from the lost or

damaged material.

3. $1000 on watercraft, including their trailers,

furnishings, equipment and outboard engines

or motors.

4. $1000 on trailers not used with watercraft.

5. $1000 for loss by theft of jewelry, watches,

furs, precious and semi-precious stones.

6. $2000 for loss by theft of firearms.

7. $2500 for loss by theft of silverware,

silver-plated ware, goldware, gold-plated ware

and pewterware. This includes flatware,

hollowware, tea sets, trays and trophies made

of or including silver, gold or pewter.

8. $2500 on property, on the "residence

premises," used at any time or in any manner

for any "business" purpose.

9. $250 on property, away from the "residence

premises," used at any time or in any manner

for any "business" purpose. However, this

limit does not apply to loss to adaptable

electronic apparatus as described in Special

Limits 10. and 11. below.

10. $1000 for loss to electronic apparatus, while in

or upon a motor vehicle or other motorized

land conveyance, if the electronic apparatus is

equipped to be operated by power from the

electrical system of the vehicle or conveyance

while retaining its capability of being operated

by other sources of power. Electronic

apparatus includes:

a. Accessories or antennas; or

b. Tapes, wires, records, discs or other media;

for use with any electronic apparatus.

11. $1000 for loss to electronic apparatus, while

not in or upon a motor vehicle or other

motorized land conveyance, if the electronic

apparatus:

a. Is equipped to be operated by power from

the electrical system of the vehicle or

conveyance while retaining its capability of

being operated by other sources of power;

b. Is away from the "residence premises";

and

c. Is used at any time or in any manner for

any "business" purpose.

Electronic apparatus includes:

a. Accessories or antennas; or

b. Tapes, wires, records, discs or other

media;

for use with any electronic apparatus.

Property Not Covered. We do not cover:

1. Articles separately described and specifically

insured in this or other insurance;

2. Animals, birds or fish;

3. Motor vehicles or all other motorized land

conveyances.

This includes:

a. Their equipment and accessories; or

b. Electronic apparatus that is designed to be

operated solely by use of the power from

the electrical system of motor vehicles or

all other motorized land conveyances.

Electronic apparatus includes:

(1) Accessories or antennas; or

Page 3 of 16

(2) Tapes, wires, records, discs or other

media;

for use with any electronic apparatus.

The exclusion of property described in 3.a.

and 3.b. above applies only while the

property is in or upon the vehicle or

conveyance.

We do cover vehicles or conveyances not

subject to motor vehicle registration which are:

a. Used to service an "insured's" residence;

b. Designed for assisting the handicapped;

4. Aircraft and parts. Aircraft means any

contrivance used or designed for flight, except

model or hobby aircraft not used or designed

to carry people or cargo;

5. Property of roomers, boarders and other

tenants, except property of roomers and

boarders related to an "insured";

6. Property in an apartment regularly rented or

held for rental to others by an "insured,"

except as provided in Additional Coverages

10.;

7. Property rented or held for rental to others off

the "residence premises";

8. "Business" data, including such data stored in:

a. Books of account, drawings or other paper

records; or

b. Electronic data processing tapes, wires,

records, discs or other software media;

However, we do cover the cost of blank

recording or storage media, and of

pre-recorded computer programs available on

the retail market; or

9. Credit cards or fund transfer cards except as

provided in Additional Coverages 6.

COVERAGE D - Loss Of Use

The limit of liability for Coverage D is the total limit

for all the coverages that follow.

1. If a loss covered under this Section makes that

part of the "residence premises" where you

reside not fit to live in, we cover, at your

choice, either of the following. However, if the

"residence premises" is not your principal place

of residence, we will not provide the option

under paragraph b. below.

a. Additional Living Expense, meaning any

necessary increase in living expenses

incurred by you so that your household

can maintain its normal standard of living;

b. Fair Rental Value, meaning the fair rental

value of that part of the "residence

premises" where you reside less any

expenses that do not continue while the

premises is not fit to live in.

Payment under a. or b. will be for the shortest

time required to repair or replace the damage

or, if you permanently relocate, the shortest

time required for your household to settle

elsewhere.

2. If a loss covered under this Section makes that

part of the "residence premises" rented to

others or held for rental by you not fit to live

in, we cover the:

Fair Rental Value, meaning the fair rental

value of that part of the "residence

premises" rented to others or held for rental

by you less any expenses that do not

continue while the premises is not fit to live

in.

Payment will be for the shortest time required

to repair or replace that part of the premises

rented or held for rental.

3. If a civil authority prohibits you from use of the

"residence premises" as a result of direct

damage to neighboring premises by a Peril

Insured Against in this policy, we cover the

Additional Living Expense and Fair Rental Value

loss as provided under 1. and 2. above for no

more than two weeks.

The periods of time under 1., 2. and 3. above are

not limited by expiration of this policy.

We do not cover loss or expense due to

cancellation of a lease or agreement.

ADDITIONAL COVERAGES

1. Debris Removal. We will pay your reasonable

expense for the removal of:

a. Debris of covered property if a Peril Insured

Against that applies to the damaged

property causes the loss; or

b. Ash, dust or particles from a volcanic

eruption that has caused direct loss to a

building or property contained in a building.

This expense is included in the limit of liability

that applies to the damaged property. If the

amount to be paid for the actual damage to the

property plus the debris removal expense is

more than the limit of liability for the damaged

property, an additional 5% of that limit of

liability is available for debris removal expense.

We will also pay your reasonable expense, up

to $500, for the removal from the "residence

premises" of:

a. Your tree(s) felled by the peril of

Windstorm or Hail;

b. Your tree(s) felled by the peril of Weight of

Ice, Snow or Sleet; or

c. A neighbor's tree(s) felled by a Peril

Insured Against under Coverage C;

provided the tree(s) damages a covered

structure. The $500 limit is the most we will

pay in any one loss regardless of the number

of fallen trees.

2. Reasonable Repairs. In the event that covered

property is damaged by an applicable Peril

Insured Against, we will pay the reasonable

cost incurred by you for necessary measures

taken solely to protect against further damage.

Page 4 of 16

If the measures taken involve repair to other

damaged property, we will pay for those

measures only if that property is covered under

this policy and the damage to that property is

caused by an applicable Peril Insured Against.

This coverage:

a. Does not increase the limit of liability that

applies to the covered property;

b. Does not relieve you of your duties, in case

of a loss to covered property, as set forth

in SECTION I - CONDITION 2.d.

3. Trees, Shrubs and Other Plants. We cover

trees, shrubs, plants or lawns, on the

"residence premises," for loss caused by the

following Perils Insured Against: Fire or

lightning, Explosion, Riot or civil commotion,

Aircraft, Vehicles not owned or operated by a

resident of the "residence premises,"

Vandalism or malicious mischief or Theft.

We will pay up to 5% of the limit of liability

that applies to the dwelling for all trees,

shrubs, plants or lawns. No more than $500

of this limit will be available for any one tree,

shrub or plant. We do not cover property

grown for "business" purposes.

This coverage is additional insurance.

4. Fire Department Service Charge. We will pay

up to $500 for your liability assumed by

contract or agreement for fire department

charges incurred when the fire department is

called to save or protect covered property from

a Peril Insured Against. We do not cover fire

department service charges if the property is

located within the limits of the city,

municipality or protection district furnishing the

fire department response.

This coverage is additional insurance. No

deductible applies to this coverage.

5. Property Removed. We insure covered

property against direct loss from any cause

while being removed from a premises

endangered by a Peril Insured Against and for

no more than 30 days while removed. This

coverage does not change the limit of liability

that applies to the property being removed.

6. Credit Card, Fund Transfer Card, Forgery and

Counterfeit Money.

We will pay up to $500 for:

a. The legal obligation of an "insured" to

pay because of the theft or unauthorized

use of credit cards issued to

or registered in an "insured's" name;

b. Loss resulting from theft or unauthorized

use of a fund transfer card used for

deposit, withdrawal or transfer of funds,

issued to or registered in an "insured's"

name;

c. Loss to an "insured" caused by forgery or

alteration of any check or negotiable

instrument; and

d. Loss to an "insured" through acceptance in

good faith of counterfeit United States or

Canadian paper currency.

We do not cover use of a credit card or fund

transfer card:

a. By a resident of your household;

b. By a person who has been entrusted with

either type of card; or

c. If an "insured" has not complied with all

terms and conditions under which the

cards are issued.

All loss resulting from a series of acts

committed by any one person or in which any

one person is concerned or implicated is

considered to be one loss.

We do not cover loss arising out of "business"

use or dishonesty of an "insured."

This coverage is additional insurance. No

deductible applies to this coverage.

Defense:

a. We may investigate and settle any claim or

suit that we decide is appropriate. Our

duty to defend a claim or suit ends when

the amount we pay for the loss equals our

limit of liability.

b. If a suit is brought against an "insured" for

liability under the Credit Card or Fund

Transfer Card coverage, we will provide a

defense at our expense by counsel of our

choice.

c. We have the option to defend at our

expense an "insured" or an "insured's"

bank against any suit for the enforcement

of payment under the Forgery coverage.

7. Loss Assessment. We will pay up to $1000

for your share of loss assessment charged

during the policy period against you by a

corporation or association of property owners,

when the assessment is made as a result of

direct loss to the property, owned by all

members collectively, caused by a Peril Insured

Against under COVERAGE A - DWELLING,

other than earthquake or land shock waves or

tremors before, during or after a volcanic

eruption.

This coverage applies only to loss

assessments charged against you as owner or

tenant of the "residence premises."

We do not cover loss assessments charged

against you or a corporation or association of

property owners by any governmental body.

The limit of $1000 is the most we will pay

with respect to any one loss, regardless of the

number of assessments.

Page 5 of 16

Condition 1. Policy Period, under SECTIONS I

AND II CONDITIONS, does not apply to this

coverage.

8. Collapse. We insure for direct physical loss to

covered property involving collapse of a

building or any part of a building caused only

by one or more of the following:

a. Perils Insured Against in COVERAGE C -

PERSONAL PROPERTY. These perils apply

to covered buildings and personal property

for loss insured by this additional coverage;

b. Hidden decay;

c. Hidden insect or vermin damage;

d. Weight of contents, equipment, animals or

people;

e. Weight of rain which collects on a roof; or

f. Use of defective material or methods in

construction, remodeling or renovation if

the collapse occurs during the course of

the construction, remodeling or renovation.

Loss to an awning, fence, patio, pavement,

swimming pool, underground pipe, flue, drain,

cesspool, septic tank, foundation, retaining

wall, bulkhead, pier, wharf or dock is not

included under items b., c., d., e., and f.

unless the loss is a direct result of the collapse

of a building.

Collapse does not include settling, cracking,

shrinking, bulging or expansion.

This coverage does not increase the limit of

liability applying to the damaged covered

property.

9. Glass or Safety Glazing Material.

We cover:

a. The breakage of glass or safety glazing

material which is part of a covered

building, storm door or storm window; and

b. Damage to covered property by glass or

safety glazing material which is part of a

building, storm door or storm window.

This coverage does not include loss on the

"residence premises" if the dwelling has been

vacant for more than 30 consecutive days

immediately before the loss. A dwelling being

constructed is not considered vacant.

Loss for damage to glass will be settled on the

basis of replacement with safety glazing

materials when required by ordinance or law.

This coverage does not increase the limit of

liability that applies to the damaged property.

10. Landlord's Furnishings. We will pay up to

$2500 for your appliances, carpeting and other

household furnishings, in an apartment on the

"residence premises" regularly rented or held

for rental to others by an "insured," for loss

caused only by the following Perils Insured

Against:

a. Fire or lightning.

b. Windstorm or hail.

This peril does not include loss to the

property contained in a building caused by

rain, snow, sleet, sand or dust unless the

direct force of wind or hail damages the

building causing an opening in a roof or wall

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

through this opening.

This peril includes loss to watercraft and

their trailers, furnishings, equipment, and

outboard engines or motors, only while inside

a fully enclosed building.

c. Explosion.

d. Riot or civil commotion.

e. Aircraft, including self-propelled missiles and

spacecraft.

f. Vehicles.

g. Smoke, meaning sudden and accidental

damage from smoke.

This peril does not include loss caused by

smoke from agricultural smudging or

industrial operations.

h. Vandalism or malicious mischief.

i. Falling objects.

This peril does not include loss to property

contained in a building unless the roof or an

outside wall of the building is first damaged

by a failing object. Damage to the falling

object itself is not included.

j. Weight of ice, snow or sleet which causes

damage to property contained in a building.

k. Accidental discharge or overflow of water or

steam from within a plumbing, heating, air

conditioning or automatic fire protective

sprinkler system or from within a household

appliance.

This peril does not include loss:

(1) To the system or appliance from which

the water or steam escaped;

(2) Caused by or resulting from freezing

except as provided in the peril of freezing

below; or

(3) On the "residence premises" caused by

accidental discharge or overflow which

occurs off the "residence premises."

In this peril, a plumbing system does not

include a sump, sump pump or related

equipment.

l. Sudden and accidental tearing apart,

cracking, burning or bulging of a steam or

hot water heating system, an air conditioning

or automatic fire protective sprinkler system,

or an appliance for heating water.

We do not cover loss caused by or resulting

from freezing under this peril.

SECTION I - PERILS INSURED AGAINST

Page 6 of 16

m. Freezing of a plumbing, heating, air

conditioning or automatic fire protective

sprinkler system or of a household appliance.

This peril does not include loss on the

"residence premises" while the dwelling is

unoccupied, unless you have used reasonable

care to:

(1) Maintain heat in the building; or

(2) Shut off the water supply and drain the

system and appliances of water.

n. Sudden and accidental damage from

artificially generated electrical current.

This peril does not include loss to a tube,

transistor or similar electronic component.

o. Volcanic eruption other than loss caused by

earthquake, land shock waves or tremors.

The$2500 limit is the most we will pay in any

one loss regardless of the number of appliances,

carpeting or other household furnishings involved

in the loss.

COVERAGE A - DWELLING and COVERAGE B -

OTHER STRUCTURES

We insure against risk of direct loss to property

described in Coverages A and B only if that loss is

a physical loss to property. We do not insure,

however, for loss:

1. Involving collapse, other than as provided in

Additional Coverage 8.;

2. Caused by:

a. Freezing of a plumbing, heating, air

conditioning or automatic fire protective

sprinkler system or of a household

appliance, or by discharge, leakage or

overflow from within the system or

appliance caused by freezing. This

exclusion applies only while the dwelling is

vacant, unoccupied or being constructed,

unless you have used reasonable care to:

(1) Maintain heat in the building; or

(2) Shut off the water supply and drain the

system and appliances of water;

b. Freezing, thawing, pressure or weight of

water or ice, whether driven by wind or

not, to a:

(1) Fence, pavement, patio or swimming

pool;

(2) Foundation, retaining wall, or bulkhead;

(3) Pier, wharf or dock;

c. Theft in or to a dwelling under

construction, or of materials and supplies

for use in the construction until the

dwelling is finished and occupied;

d. Vandalism and malicious mischief if the

dwelling has been vacant for more than 30

consecutive days immediately before the

loss. A dwelling being constructed is not

considered vacant;

e. Any of the following:

(1) Wear and tear, marring, deterioration;

(2) Inherent vice, latent defect, mechanical

breakdown;

(3) Smog, rust or other corrosion, mold,

wet or dry rot;

(4) Smoke from agricultural smudging or

industrial operations;

(5) Discharge, dispersal, seepage,

migration, release or escape of

pollutants unless the discharge,

dispersal, seepage, migration, release

or escape is itself caused by a Peril

Insured Against under Coverage C of

this policy.

Pollutants means any solid, liquid,

gaseous or thermal irritant or

contaminant, including smoke, vapor,

soot, fumes, acids, alkalis, chemicals

and waste. Waste includes materials

to be recycled, reconditioned or

reclaimed;

(6) Settling, shrinking, bulging or

expansion, including resultant cracking,

of pavements, patios, foundations,

walls, floors, roofs or ceilings;

(7) Birds, vermin, rodents, or insects; or

(8) Animals owned or kept by an

"insured."

If any of these cause water damage not

otherwise excluded, from a plumbing,

heating, air conditioning or automatic fire

protective sprinkler system or household

appliance, we cover loss caused by the

water including the cost of tearing out and

replacing any part of a building necessary

to repair the system or appliance. We do

not cover loss to the system or appliance

from which this water escaped.

3. Excluded under Section I - Exclusions.

Under items 1. and 2., any ensuing loss to

property described in Coverages A and B not

excluded or excepted in this policy is covered.

COVERAGE C - PERSONAL PROPERTY

We insure for direct physical loss to the property

described in Coverage C caused by a peril listed

below unless the loss is excluded in SECTION I -

EXCLUSIONS.

1. Fire or lightning.

2. Windstorm or hail.

This peril does not include loss to the property

contained in a building caused by rain, snow,

sleet, sand or dust unless the direct force of

wind or hail damages the building causing an

opening in a roof or wall and the rain, snow,

Page 7 of 16

SECTION I - EXCLUSIONS

sleet, sand or dust enters through this opening.

This peril includes loss to watercraft and their

trailers, furnishings, equipment, and outboard

engines or motors, only while inside a fully

enclosed building.

3. Explosion.

4. Riot or civil commotion.

5. Aircraft, including self-propelled missiles and

spacecraft.

6. Vehicles.

7. Smoke, meaning sudden and accidental

damage from smoke.

This peril does not include loss caused by

smoke from agricultural smudging or industrial

operations.

8. Vandalism or malicious mischief.

9. Theft, including attempted theft and loss of

property from a known place when it is likely

that the property has been stolen.

This peril does not include loss caused by

theft:

a. Committed by an "insured";

b. In or to a dwelling under construction, or

of materials and supplies for use in the

construction until the dwelling is finished

and occupied; or

c. From that part of a "residence premises"

rented by an "insured" to other than an

"insured."

This peril does not include loss caused by

theft that occurs off the "residence

premises" of:

a. Property while at any other residence

owned by, rented to, or occupied by an

"insured" except while an "insured" is

temporarily living there. Property of a

student who is an "insured" is covered

while at a residence away from home if the

student has been there at any time during

the 45 days immediately before the loss;

b. Watercraft, and their furnishings,

equipment and outboard engines or

motors; or

c. Trailers and campers.

10. Falling objects.

This peril does not include loss to property

contained in a building unless the roof or an

outside wall of the building is first damaged by

a falling object. Damage to the falling object

itself is not included.

11. Weight of ice, snow or sleet which causes

damage to property contained in a building.

12. Accidental discharge or overflow of water or

steam from within a plumbing, heating, air

conditioning or automatic fire protective

sprinkler system or from within a household

appliance.

This peril does not include loss:

a. To the system or appliance from which the

water or steam escaped;

b. Caused by or resulting from freezing except

as provided in the peril of freezing below;

c. On the "residence premises" caused by

accidental discharge or overflow which

occurs off the "residence premises."

In this peril, a plumbing system does not

include a sump, sump pump or related

equipment.

13. Sudden and accidental tearing apart, cracking,

burning or bulging of a steam or hot water

heating system, an air conditioning or

automatic fire protective sprinkler system, or

an appliance for heating water.

We do not cover loss caused by or resulting

from freezing under this peril.

14. Freezing of a plumbing, heating, air

conditioning or automatic fire protective

sprinkler system or of a household appliance.

This peril does not include loss on the

"residence premises" while the dwelling is

unoccupied, unless you have used reasonable

care to:

a. Maintain heat in the building; or

b. Shut off the water supply and drain the

system and appliances of water.

15. Sudden and accidental damage from artificially

generated electrical current.

This peril does not include loss to a tube,

transistor or similar electronic component.

16. Volcanic eruption other than loss caused by

earthquake, land shock waves or tremors.

1. We do not insure for loss caused directly or

indirectly by any of the following. Such loss is

excluded regardless of any other cause or

event contributing concurrently or in any

sequence to the loss.

a. Ordinance or Law, meaning enforcement of

any ordinance or law regulating the

construction, repair, or demolition of a

building or other structure, unless

specifically provided under this policy.

b. Earth Movement, meaning earthquake

including land shock waves or tremors

before, during or after a volcanic

eruption; landslide; mine subsidence;

mudflow; earth sinking, rising or shifting;

unless direct loss by:

(1) Fire;

(2) Explosion; or

(3) Breakage of glass or safety glazing

material which is part of a building,

storm door or storm window;

Page 8 of 16

SECTION I - CONDITIONS

ensues and then we will pay only for the

ensuing loss.

This exclusion does not apply to loss by

theft.

c. Water Damage, meaning:

(1) Flood, surface water, waves, tidal

water, overflow of a body of water, or

spray from any of these, whether or

not driven by wind;

(2) Water which backs up through sewers

or drains or which overflows from a

sump; or

(3) Water below the surface of the ground,

including water which exerts pressure

on or seeps or leaks through a building,

sidewalk, driveway, foundation,

swimming pool or other structure.

Direct loss by fire, explosion or theft

resulting from water damage is covered.

d. Power Failure, meaning the failure of power

or other utility service if the failure takes

place off the "residence premises." But, if

a Peril Insured Against ensues on the

"residence premises," we will pay only for

that ensuing loss.

e. Neglect, meaning neglect of the "insured"

to use all reasonable means to save and

preserve property at and after the time of a

loss.

f. War, including the following and any

consequence of any of the following:

(1) Undeclared war, civil war, insurrection,

rebellion or revolution;

(2) Warlike act by a military force or

military personnel; or

(3) Destruction, seizure or use for a military

purpose.

Discharge of a nuclear weapon will be

deemed a warlike act even if accidental.

g. Nuclear Hazard, to the extent set forth in the

Nuclear Hazard Clause of SECTION I -

CONDITIONS.

h. Intentional Loss, meaning any loss arising out

of any act committed:

(1) By or at the direction of an "insured";

and

(2) With the intent to cause a loss.

2. We do not insure for loss to property described

in Coverages A and B caused by any of the

following. However, any ensuing loss to

property described in Coverages A and B not

excluded or excepted in this policy is covered.

a. Weather conditions. However, this

exclusion only applies if weather conditions

contribute in any way with a cause or

event excluded in paragraph 1. above to

produce the loss;

b. Acts or decisions, including the failure to

act or decide, of any person, group,

organization or governmental body;

c. Faulty, inadequate or defective:

(1) Planning, zoning, development,

surveying, siting;

(2) Design, specifications, workmanship,

repair, construction, renovation,

remodeling, grading, compaction;

(3) Materials used in repair, construction,

renovation or remodeling; or

(4) Maintenance;

of part or all of any property whether on or

off the "residence premises."

1. Insurable Interest and Limit of Liability.

Even if more than one person has an insurable

interest in the property covered, we will not be

liable in any one loss:

a. To the "insured" for more than the amount

of the "insured's" interest at the time of

loss; or

b. For more than the applicable limit of

liability.

2. Your Duties After Loss. In case of a loss to

covered property, you must see that the

following are done:

a. Give prompt notice to us or our agent;

b. Notify the police in case of loss by theft;

c. Notify the credit card or fund transfer card

company in case of loss under Credit Card

or Fund Transfer Card coverage;

d. Protect the property from further damage.

If repairs to the property are required, you

must:

(1) Make reasonable and necessary repairs

to protect the property; and

(2) Keep an accurate record of repair

expenses;

e. Prepare an inventory of damaged personal

property showing the quantity, description,

actual cash value and amount of loss.

Attach all bills, receipts and related

documents that justify the figures in the

inventory;

f. As often as we reasonably require:

(1) Show the damaged property;

(2) Provide us with records and documents

we request and permit us to make

copies; and

(3) Submit to examination under oath,

while not in the presence of any other

"insured," and sign the same;

g. Send to us, within 60 days after our

request, your signed, sworn proof of loss

Page 9 of 16

which sets forth, to the best of your

knowledge and belief:

(1) The time and cause of loss;

(2) The interest of the "insured" and all

others in the property involved and all

liens on the property;

(3) Other insurance which may cover the

loss;

(4) Changes in title or occupancy of the

property during the term of the policy;

(5) Specifications of damaged buildings

and detailed repair estimates;

(6) The inventory of damaged personal

property described in 2.e. above;

(7) Receipts for additional living expenses

incurred and records that support the

fair rental value loss; and

(8) Evidence or affidavit that supports a

claim under the Credit Card, Fund

Transfer Card, Forgery and Counterfeit

Money coverage, stating the amount

and cause of loss.

3. Loss Settlement. Covered property losses are

settled as follows:

a. Property of the following types:

(1) Personal property;

(2) Awnings, carpeting, household

appliances, outdoor antennas and

outdoor equipment, whether or not

attached to buildings; and

(3) Structures that are not buildings;

at actual cash value at the time of loss but

not more than the amount required to

repair or replace.

b. Buildings under Coverage A or B at

replacement cost without deduction for

depreciation, subject to the following:

(1) If, at the time of loss, the amount of

insurance in this policy on the damaged

building is 80% or more of the full

replacement cost of the building

immediately before the loss, we will

pay the cost to repair or replace, after

application of deductible and without

deduction for depreciation, but not

more than the least of the following

amounts:

(a) The limit of liability under this

policy that applies to the building;

(b) The replacement cost of that part

of the building damaged for like

construction and use on the same

premises; or

spent to repair or replace the

damaged building.

(2) If, at the time of loss, the amount of

insurance in this policy on the damaged

building is less than 80% of the full

replacement cost of the building

immediately before the loss, we will

pay the greater of the following

amounts, but not more than the limit of

liability under this policy that applies to

the building:

(a) The actual cash value of that part

of the building damaged; or

(b) That proportion of the cost to

repair or replace, after application

of deductible and without

deduction for depreciation, that

part of the building damaged,

which the total amount of

insurance in this policy on the

damaged building bears to 80% of

the replacement cost of the

building.

(3) To determine the amount of insurance

required to equal 80% of the full

replacement cost of the building

immediately before the loss, do not

include the value of:

(a) Excavations, foundations, piers or

any supports which are below the

undersurface of the lowest

basement floor;

(b) Those supports in (a) above which

are below the surface of the ground

inside the foundation walls, if there

is no basement; and

and drains.

(4) We will pay no more than the actual

cash value of the damage until actual

repair or replacement is complete.

Once actual repair or replacement is

complete, we will settle the loss

according to the provisions of b.(1) and

b.(2) above.

However, if the cost to repair or

replace the damage is both:

(a) Less than 5% of the amount of

insurance in this policy on the

building; and

(b) Less than $2500;

we will settle the loss according to the

provisions of b.(1) and b.(2) above

whether or not actual repair or

replacement is complete.

(5) You may disregard the replacement

cost loss settlement provisions and

make claim under this policy for loss or

damage to buildings on an actual cash

value basis. You may then make claim

Page 10 of 16

within 180 days after loss for any additional

liability according to the provisions of this

Condition 3. Loss Settlement.

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

or set we may elect to:

a. Repair or replace any part to restore the

pair or set to its value before the loss; or

b. Pay the difference between actual cash

value of the property before and after the

loss.

5. Glass Replacement. Loss for damage to glass

caused by a Peril Insured Against will be

settled on the basis of replacement with safety

glazing materials when required by ordinance

or law.

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

amount of loss, either may demand an

appraisal of the loss. In this event, each party

will choose a competent appraiser within 20

days after receiving a written request from the

other. The two appraisers will choose an

umpire. If they cannot agree upon an umpire

within 15 days, you or we may request that

the choice be made by a judge of a court of

record in the state where the "residence

premises" is located. The appraisers will

separately set the amount of loss. If the

appraisers submit a written report of an

agreement to us, the amount agreed upon will

be the amount of loss. If they fail to agree,

they will submit their differences to the umpire.

A decision agreed to by any two will set the

amount of loss.

Each party will:

a. Pay its own appraiser; and

b. Bear the other expenses of the appraisal

and umpire equally.

7. Other Insurance. If a loss covered by this

policy is also covered by other insurance, we

will pay only the proportion of the loss that the

limit of liability that applies under this policy

bears to the total amount of insurance covering

the loss.

8. Suit Against Us. No action can be brought

unless the policy provisions have been

complied with and the action is started within

one year after the date of loss.

9. Our Option. If we give you written notice

within 30 days after we receive your signed,

sworn proof of loss, we may repair or replace

any part of the damaged property with like

property.

10. Loss Payment. We will adjust all losses with

you. We will pay you unless some other

person is named in the policy or is legally

entitled to receive payment. Loss will be

payable 60 days after we receive your proof of

loss and:

a. Reach an agreement with you;

b. There is an entry of a final judgement; or

c. There is a filing of an appraisal award with

us.

11. Abandonment of Property. We need not

accept any property abandoned by an

"insured."

12. Mortgage Clause.

The word "mortgagee" includes trustee.

If a mortgagee is named in this policy, any loss

payable under Coverage A or B will be paid to

the mortgagee and you, as interests appear. If

more than one mortgagee is named, the order

of payment will be the same as the order of

precedence of the mortgages.

If we deny your claim, that denial will not

apply to a valid claim of the mortgagee, if the

mortgagee:

a. Notifies us of any change in ownership,

occupancy or substantial change in risk of

which the mortgagee is aware;

b. Pays any premium due under this policy on

demand if you have neglected to pay the

premium; and

c. Submits a signed, sworn statement of loss

within 60 days after receiving notice from

us of your failure to do so. Policy

conditions relating to Appraisal, Suit

Against Us and Loss Payment apply to the

mortgagee.

If we decide to cancel or not to renew this

policy, the mortgagee will be notified at least

10 days before the date cancellation or

nonrenewal takes effect.

If we pay the mortgagee for any loss and deny

payment to you:

a. We are subrogated to all the rights of the

mortgagee granted under the mortgage on

the property; or

b. At our option, we may pay to the

mortgagee the whole principal on the

mortgage plus any accrued interest. In this

event, we will receive a full assignment

and transfer of the mortgage and all

securities held as collateral to the mortgage

debt.

Subrogation will not impair the right of the

mortgagee to recover the full amount of the

mortgagee's claim.

13. No Benefit to Bailee. We will not recognize

any assignment or grant any coverage that

benefits a person or organization holding,

storing or moving property for a fee regardless

of any other provision of this policy.

14. Nuclear Hazard Clause.

a. "Nuclear Hazard" means any nuclear

reaction, radiation, or radioactive

contamination, all whether controlled or

uncontrolled or however caused, or any

consequence of any of these.

Page 11 of 16

SECTION II - LIABILITY COVERAGES

SECTION II - EXCLUSIONS

under this policy, you or we will notify the

other of the recovery. At your option, the

property will be returned to or retained by you

or it will become our property. If the recovered

property is returned to or retained by you, the

loss payment will be adjusted based on the

amount you received for the recovered

property.

16. Volcanic Eruption Period. One or more

volcanic eruptions that occur within a 72-hour

period will be considered as one volcanic

eruption.

COVERAGE E - Personal Liability

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

"insured" for damages because of "bodily injury"

or "property damage" caused by an "occurrence"

to which this coverage applies, we will:

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

for which the "insured" is legally liable.

Damages include prejudgment interest awarded

against the "insured"; and

2. Provide a defense at our expense by counsel of

our choice, even if the suit is

groundless, false or fraudulent. We may

investigate and settle any claim or suit that we

decide is appropriate. Our duty to settle or

defend ends when the amount we pay for

damages resulting from the "occurrence"

equals our limit of liability.

COVERAGE F - Medical Payments To Others

We will pay the necessary medical expenses that

are incurred or medically ascertained within

three years from the date of an accident

causing "bodily injury." Medical expenses means

reasonable charges for medical, surgical,

x-ray, dental, ambulance, hospital, professional

nursing, prosthetic devices and funeral services.

This coverage does not apply to you or regular

residents of your household except "residence

employees." As to others, this coverage applies

only:

1. To a person on the "insured location" with the

permission of an "insured"; or

2. To a person off the "insured location," if the

"bodily injury":

a. Arises out of a condition on the "insured

location" or the ways immediately

adjoining;

b. Is caused by the activities of an "insured";

c. Is caused by a "residence employee" in the

course of the "residence employee's"

employment by an "insured"; or

d. Is caused by an animal owned by or in the

care of an "insured."

1. Coverage E - Personal Liability and Coverage F

- Medical Payments to Others do not apply to

"bodily injury" or "property damage":

a. Which is expected or intended by the

"insured";

b. Arising out of or in connection with a

"business" engaged in by an "insured."

This exclusion applies but is not limited to

an act or omission, regardless of its nature

or circumstance, involving a service or duty

rendered, promised, owed, or implied to be

provided because of the nature of the

"business";

c. Arising out of the rental or holding for

rental of any part of any premises by an

"insured." This exclusion does not apply

to the rental or holding for rental of an

"insured location":

(1) On an occasional basis if used only as

a residence;

(2) In part for use only as a residence,

unless a single family unit is intended

for use by the occupying family to

lodge more than two roomers or

boarders; or

(3) In part, as an office, school, studio or

private garage;

d. Arising out of the rendering of or failure to

render professional services;

e. Arising out of a premises:

(1) Owned by an "insured";

(2) Rented to an "insured"; or

(3) Rented to others by an "insured";

that is not an "insured location";

f. Arising out of:

(1) The ownership, maintenance, use,

loading or unloading of motor vehicles

or all other motorized land

conveyances, including trailers, owned

or operated by or rented or loaned to

an "insured";

b. Loss caused by the nuclear hazard will not

be considered loss caused by fire,

explosion, or smoke, whether these perils

are specifically named in or otherwise

included within the Perils Insured Against

in Section I.

c. This policy does not apply under Section I

to loss caused directly or indirectly by

nuclear hazard, except that direct loss by

fire resulting from the nuclear hazard is

covered.

15. Recovered Property. If you or we recover any

property for which we have made payment

Page 12 of 16

(2) The entrustment by an "insured" of a

motor vehicle or any other motorized

land conveyance to any person; or

(3) Vicarious liability, whether or not

statutorily imposed, for the actions of a

child or minor using a conveyance

excluded in paragraph (1) or (2) above.

This exclusion does not apply to:

(1) A trailer not towed by or carried on a

motorized land conveyance.

(2) A motorized land conveyance designed

for recreational use off public roads,

not subject to motor vehicle

registration and:

(a) Not owned by an "insured"; or

(b) Owned by an "insured" and on an

"insured location";

(3) A motorized golf cart when used to

play golf on a golf course;

(4) A vehicle or conveyance not subject to

motor vehicle registration which is:

(a) Used to service an "insured's"

residence;

(b) Designed for assisting the

handicapped; or

location";

g. Arising out of:

(1) The ownership, maintenance, use,

loading or unloading of an excluded

watercraft described below;

(2) The entrustment by an "insured" of an

excluded watercraft described below to

any person; or

(3) Vicarious liability, whether or not

statutorily imposed, for the actions of a

child or minor using an excluded

watercraft described below.

Excluded watercraft are those that are

principally designed to be propelled by

engine power or electric motor, or are

sailing vessels, whether owned by or

rented to an "insured." This exclusion

does not apply to watercraft:

(1) That are not sailing vessels and are

(a) Inboard or inboard-outdrive engine

or motor power of 50 horsepower

or less not owned by an "insured";

(b) Inboard or inboard-outdrive engine

or motor power of more than 50

horsepower not owned by or

rented to an "insured";

motors with 25 total horsepower or

less;

(d) One or more outboard engines or

motors with more than 25 total

horsepower if the outboard engine

or motor is not owned by an

"insured";

(e) Outboard engines or motors of

more than 25 total horsepower

owned by an "insured" if:

(i) You acquire them prior to the

policy period; and

(a) You declare them at policy

inception; or

(b) Your intention to insure is

reported to us in writing

within 45 days after you

acquire the outboard

engines or motors.

(ii) You acquire them during the

policy period.

This coverage applies for the policy

period.

(2) That are sailing vessels, with or

without auxiliary power:

(a) Less than 26 feet in overall length;

(b) 26 feet or more in overall length,

not owned by or rented to an

"insured."

(3) That are stored;

h. Arising out of:

(1) The ownership, maintenance, use,

loading or unloading of an aircraft;

(2) The entrustment by an "insured" of an

aircraft to any person; or

(3) Vicarious liability, whether or not

statutorily imposed, for the actions of a

child or minor using an aircraft.

An aircraft means any contrivance used or

designed for flight, except model or hobby

aircraft not used or designed to carry people

or cargo;

i. Caused directly or indirectly by war,

including the following and any consequence

of any of the following:

(1) Undeclared war, civil war, insurrection,

rebellion or revolution;

(2) Warlike act by a military force or military

personnel; or

(3) Destruction, seizure or use for a military

purpose.

Discharge of a nuclear weapon will be

deemed a warlike act even if accidental;

j. Which arises out of the transmission of a

communicable disease by an "insured";

k. Arising out of sexual molestation, corporal

punishment or physical or mental abuse; or

l. Arising out of the use, sale, manufacture,

delivery, transfer or possession by any

person of a Controlled Substance(s) as

Page 13 of 16

SECTION II - ADDITIONAL COVERAGES

defined by the Federal Food and Drug Law at

21 U.S.C.A. Sections 811 and 812.

Controlled Substances include but are not

limited to cocaine, LSD, marijuana and all

narcotic drugs. However, this exclusion

does not apply to the legitimate use of

prescription drugs by a person following the

orders of a licensed physician.

Exclusions e., f., g., and h. do not apply to

"bodily injury" to a "residence employee" arising

out of and in the course of the "residence

employees" employment by an "insured."

2. Coverage E - Personal Liability, does not apply

to:

a. Liability:

(1) For any loss assessment charged

against you as a member of an

association, corporation or community

of property owners;

(2) Under any contract or agreement.

However, this exclusion does not apply

to written contracts:

(a) That directly relate to the

ownership, maintenance or use of

an "insured location"; or

(b) Where the liability of others is

assumed by the "insured" prior to

an "occurrence";

unless excluded in (1) above or

elsewhere in this policy;

b. "Property damage" to property owned by

the "insured";

c. "Property damage" to property rented to,

occupied or used by or in the care of the

"insured." This exclusion does not apply

to "property damage" caused by fire,

smoke or explosion;

d. "Bodily injury" to any person eligible to

receive any benefits:

(1) Voluntarily provided; or

(2) Required to be provided;

by the "insured" under any:

(1) Workers' compensation law;

(2) Non-occupational disability law; or

(3) Occupational disease law;

e. "Bodily injury" or "property damage" for

which an "insured" under this policy:

(1) Is also an insured under a nuclear

energy liability policy; or

(2) Would be an insured under that policy

but for the exhaustion of its limit of

liability.

A nuclear energy liability policy is one

issued by:

(1) American Nuclear Insurers;

(2) Mutual Atomic Energy Liability

Under-writers;

(3) Nuclear Insurance Association of

Canada;

or any of their successors; or

f. "Bodily injury" to you or an "insured"

within the meaning of part a. or b. of

"insured" as defined.

3. Coverage F - Medical Payments to Others,

does not apply to "bodily injury":

a. To a "residence employee" if the "bodily

injury":

(1) Occurs off the "insured location"; and

(2) Does not arise out of or in the course

of the "residence employee's"

employment by an "insured";

b. To any person eligible to receive benefits:

(1) Voluntarily provided; or

(2) Required to be provided;

under any:

(1) Workers' compensation law;

(2) Non-occupational disability law; or

(3) Occupational disease law;

c. From any:

(1) Nuclear reaction;

(2) Nuclear radiation; or

(3) Radioactive contamination;

all whether controlled or uncontrolled or

however caused; or

(4) Any consequence of any of these; or

d. To any person, other than a "residence

employee" of an "insured," regularly

residing on any part of the "insured

location."

We cover the following in addition to the limits of

liability:

1. Claim Expenses. We pay:

a. Expenses we incur and costs taxed against

an "insured" in any suit we defend;

b. Premiums on bonds required in a suit we

defend, but not for bond amounts more

than the limit of liability for Coverage E.

We need not apply for or furnish any bond;

c. Reasonable expenses incurred by an

"insured" at our request, including actual

loss of earnings (but not loss of other

income) up to $50 per day, for assisting us

in the investigation or defense of a claim or

suit; and

d. Interest on the entire judgment which

accrues after entry of the judgment and

before we pay or tender, or deposit in

court that part of the judgment which does

not exceed the limit of liability that applies.

Page 14 of 16

SECTION II - CONDITIONS

2. First Aid Expenses. We will pay expenses for

first aid to others incurred by an "insured" for

"bodily injury" covered under this policy. We

will not pay for first aid to you or any other

"insured."

3. Damage to Property of Others. We will pay, at

replacement cost, up to $500 per "occurrence"

for "property damage" to property of others

caused by an "insured."

We will not pay for "property damage":

a. To the extent of any amount recoverable

under Section I of this policy;

b. Caused intentionally by an "insured" who

is 13 years of age or older;

c. To property owned by an "insured";

d. To property owned by or rented to a tenant

of an "insured" or a resident in your

household; or

e. Arising out of:

(1) A "business" engaged in by an "insured";

(2) Any act or omission in connection with a

premises owned, rented or controlled by an

"insured," other than the "insured

location"; or

(3) The ownership, maintenance, or use of

aircraft, watercraft or motor vehicles or all

other motorized land conveyances.

This exclusion does not apply to a

motorized land conveyance designed for

recreational use off public roads, not

subject to motor vehicle registration and

not owned by an "insured."

4. Loss Assessment. We will pay up to $1000

for your share of loss assessment charged

during the policy period against you by a

corporation or association of property owners,

when the assessment is made as a result of:

a. "Bodily injury" or "property damage" not

excluded under Section II of this policy; or

b. Liability for an act of a director, officer or

trustee in the capacity as a director, officer

or trustee, provided:

(1) The director, officer or trustee is elected

by the members of a corporation or

association of property owners; and

(2) The director, officer or trustee serves

without deriving any income from the

exercise of duties which are solely on

behalf of a corporation or association of

property owners.

This coverage applies only to loss assessments

charged against you as owner or tenant of the

"residence premises."

We do not cover loss assessments charged

against you or a corporation or association of

property owners by any governmental body.

Regardless of the number of assessments, the

limit of $1000 is the most we will pay for loss

arising out of:

a. One accident, including continuous or

repeated exposure to substantially the same

general harmful condition; or

b. A covered act of a director, officer or trustee.

An act involving more than one director,

officer or trustee is considered to be a single

act.

The following do not apply to this coverage:

1. Section II - Coverage E - Personal Liability

Exclusion 2.a.(1);

2. Condition 1. Policy Period, under SECTIONS I

AND II - CONDITIONS.

1. Limit of Liability. Our total liability under

Coverage E for all damages resulting from any

one "occurrence" will not be more than the

limit of liability for Coverage E as shown in the

Declarations. This limit is the same regardless

of the number of "insureds," claims made or

persons injured. All "bodily injury" and

"property damage" resulting from any one

accident or from continuous or repeated

exposure to substantially the same general

harmful conditions shall be considered to be

the result of one "occurrence."

Our total liability under Coverage F for all

medical expense payable for "bodily injury" to

one person as the result of one accident

will not be more than the limit of liability for

Coverage F as shown in the Declarations.

2. Severability of Insurance. This insurance

applies separately to each "insured." This

condition will not increase our limit of liability

for any one "occurrence."

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

"occurrence," the "insured" will perform the

following duties that apply. You will help us

by seeing that these duties are performed:

a. Give written notice to us or our agent as

soon as is practical, which sets forth:

(1) The identity of the policy and

"insured";

(2) Reasonably available information on the

time, place and circumstances of the

accident or "occurrence"; and

(3) Names and addresses of any claimants

and witnesses;

b. Promptly forward to us every notice,

demand, summons or other process

relating to the accident or "occurrence";

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SECTIONS I AND II - CONDITIONS

c. At our request, help us:

(1) To make settlement;

(2) To enforce any right of contribution or

indemnity against any person or

organization who may be liable to an

"insured";

(3) With the conduct of suits and attend

hearings and trials; and

(4) To secure and give evidence and obtain

the attendance of witnesses;

d. Under the coverage - Damage to Property

of Others - submit to us within 60 days

after the loss, a sworn statement of loss

and show the damaged property, if in the

"insured's" control;

e. The "insured" will not, except at the

"insured's" own cost, voluntarily make

payment, assume obligation or incur

expense other than for first aid to others at

the time of the "bodily injury."

4. Duties of an Injured Person - Coverage F -

Medical Payments to Others.

The injured person or someone acting for the

injured person will:

a. Give us written proof of claim, under oath

if required, as soon as is practical; and

b. Authorize us to obtain copies of medical

reports and records.

The injured person will submit to a physical

exam by a doctor of our choice when and as

often as we reasonably require.

5. Payment of Claim - Coverage F - Medical

Payments to Others. Payment under this

coverage is not an admission of liability by an

"insured" or us.

6. Suit Against Us. No action can be brought

against us unless there has been compliance

with the policy provisions.

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

to any action against an "insured." Also, no

action with respect to Coverage E can be

brought against us until the obligation of the

"insured" has been determined by final

judgment or agreement signed by us.

7. Bankruptcy of an Insured. Bankruptcy or

insolvency of an "insured" will not relieve us of

our obligations under this policy.

8. Other Insurance - Coverage E - Personal

Liability. This insurance is excess over other

valid and collectible insurance except insurance

written specifically to cover as excess over the

limits of liability that apply in this policy.

1. Policy Period. This policy applies only to loss

in Section I or "bodily injury" or "property

damage" in Section II, which occurs during the

policy period.

2. Concealment or Fraud. The entire policy will

be void if, whether before or after a loss, an

"insured" has:

a. Intentionally concealed or misrepresented

any material fact or circumstance;

b. Engaged in fraudulent conduct; or

c. Made false statements;

relating to this insurance.

3. Liberalization Clause. If we make a change

which broadens coverage under this edition

of our policy without additional premium

charge, that change will automatically apply

to your insurance as of the date we implement

the change in your state, provided that this

implementation date falls within 60 days prior

to or during the policy period stated in the

Declarations.

This Liberalization Clause does not apply to

changes implemented through introduction of a

subsequent edition of our policy.

4. Waiver or Change of Policy Provisions.

A waiver or change of a provision of this policy

must be in writing by us to be valid. Our

request for an appraisal or examination will not

waive any of our rights.

5. Cancellation.

a. You may cancel this policy at any time by

returning it to us or by letting us know in

writing of the date cancellation is to take

effect.

b. We may cancel this policy only for the

reasons stated below by letting you know

in writing of the date cancellation takes

effect. This cancellation notice may be

delivered to you, or mailed to you at your

mailing address shown in the Declarations.

Proof of mailing will be sufficient proof of

notice.

(1) When you have not paid the premium,

we may cancel at any time by letting

you know at least 10 days before the

date cancellation takes effect.

(2) When this policy has been in effect for

less than 60 days and is not a renewal

with us, we may cancel for any reason

by letting you know at least 10 days

before the date cancellation takes

effect.

(3) When this policy has been in effect for

60 days or more, or at any time if it is

a renewal with us, we may cancel:

(a) If there has been a material

misrepresentation of fact which if

known to us would have caused us

not to issue the policy; or

Page 16 of 16

*MUTUAL POLICY CONDITIONS

Includes copyrighted material of Insurance Services Office, with its permission.

PRESIDENT

SECRETARY

(b) If the risk has changed substantially

since the policy was issued.

This can be done by letting you know

at least 30 days before the date

cancellation takes effect.

(4) When this policy is written for a period

of more than one year, we may cancel

for any reason at anniversary by letting

you know at least 30 days before the

date cancellation takes effect.

c. When this policy is cancelled, the premium

for the period from the date of cancellation

to the expiration date will be refunded pro

rata.

d. If the return premium is not refunded with

the notice of cancellation or when this

policy is returned to us, we will refund it

within a reasonable time after the date

cancellation takes effect.

6. Nonrenewal. We may elect not to renew this

policy. We may do so by delivering to you, or

mailing to you at your mailing address shown

in the Declarations, written notice at least 30

days before the expiration date of this policy.

Proof of mailing will be sufficient proof of

notice.

7. Assignment. Assignment of this policy will not

be valid unless we give our written consent.

8. Subrogation. An "insured" may waive in

writing before a loss all rights of recovery

against any person. If not waived, we may

require an assignment of rights of recovery for

a loss to the extent that payment is made by

us.

If an assignment is sought, an "insured" must

sign and deliver all related papers and

cooperate with us.

Subrogation does not apply under Section II to

Medical Payments to Others or Damage to

Property of Others.

9. Death. If any person named in the

Declarations or the spouse, if a resident of the

same household, dies:

a. We insure the legal representative of the

deceased but only with respect to the

premises and property of the deceased

covered under the policy at the time of

death;

b. "Insured" includes:

(1) Any member of your household who is

an "insured" at the time of your death,

but only while a resident of the

"residence premises"; and

(2) With respect to your property, the

person having proper temporary

custody of the property until

appointment and qualification of a legal

representative.

You are a member of the Liberty Mutual Fire Insurance Company while this policy is in force. Membership

entitles you to vote in person or by proxy at meetings of the company. The Annual Meeting is in Boston,

Massachusetts, on the second Wednesday in April each year at 11 o'clock in the morning.

Also, as a member, you will receive any dividends declared on this policy by the Directors.

This policy is classified in Dividend Class II.

This policy has been signed by our President and Secretary at Boston, Massachusetts, and countersigned on

the Declarations Page by an authorized representative.

*These conditions apply only if Liberty Mutual Fire Insurance Company is shown in the Declarations as the

insurer.