Additional coverages are just that; extra coverages outside of the main coverages provided by the form. The first is claim expenses, and here the insurer pays the costs incurred by the insurer for defending an "insured" in a suit against him. Included are premiums on bonds for a suit the carrier is defending as long as the bond amount is no more than the coverage E limit of liability. The insurer will pay the premiums for the bond but it does not have to supply the bond or even apply for it; that is up to the insured.

Reasonable expenses an insured may incur are also covered, and this includes loss of earnings up to $250 a day for assisting in the investigation and defense of the claim or suit, and interest on a judgment that accrues after the judgment has been entered and before the insurer actually makes the payment for the judgment. Again, this is only up to the limit of liability.

First aid

If someone is injured and that injury would be covered under this policy, then the cost of first aid expenses will also be covered. For example, an insured has a party and the deck collapses, injuring a number of party-goers. The insured provides first aid to all those injured. The expenses for that first aid would be paid.

Damage to property of others

Damage to property of others is often referred to as "good neighbor" coverage because it is designed to provide coverage for accidental damage without any legal liability. It provides up to $5,000 per "occurrence" for "property damage" to property of others caused by an "insured". The $5,000 limit is newly increased from the previous $1,000. For example, an insured's friend comes over to visit and brings his new VR headset. While the insured and his friend are having lunch, the puppy chews and destroys the headset. The damage to property of others coverage will pay for the friend's destroyed headset.

Exclusions

There are some exclusions. Not covered is damage intentionally caused by an "insured" 13 years old or older, damage to property the insured owns, or property owned by or rented to a tenant of the "insured" or a resident of the household. Likewise, damage arising out of a "business" of an "insured"; or acts or omissions in connection with property owned, rented or controlled by the "insured" that is other than an "insured location"; or the ownership, maintenance, occupancy, operation, use, loading or unloading of aircraft, hovercraft, watercraft or "motor vehicles" is excluded.

Individuals over the age of 13 are expected to know right from wrong and thus can be held responsible for their actions. Property owned by the "insured" will be covered under Section I unless otherwise excluded. A "business" of an "insured" needs to be covered separately, and acts occurring outside of an "insured location" are not covered. As has been previously discussed, boats, planes, hovercraft and "motor vehicles" as defined are not covered. Those need to be covered by policies designed for that equipment and its particular exposures. An exception exists for the vehicle exclusion, and that is for "motor vehicles" that are designed for use off public roads, are not owned by an "insured", and at the time of the "occurrence" are not required by laws or regulations to be registered for use on public roads or property. For example, the insured's next-door neighbor comes over with his new ATV. While the insured is trying out the vehicle he runs over a stump, overturning and damaging the vehicle. This would be covered.

Loss assessment

The last additional coverage is loss assessment, which provides up to $2,000 for the insured's share of a loss assessment charged against her as the owner or tenant of the "resident premises" by a corporation or association of property owners. The assessment must occur during the policy period. The limit has been newly increased to $2,000. Assessments are covered in two ways. The first is if the assessment is made because of "bodily injury" or "property damage" not excluded under the Section II exclusions. The second is when the assessment is for the liability because of an act of a director, officer or trustee of the association in his capacity as such, as long as the person is elected to the position and serves without receiving any income for serving in the association.

The $2,000 limit applies regardless of the number of assessments made against an insured if the assessments arise out of one accident, including continuous and repeated exposures to the same harmful conditions, or a covered act of a director, officer or trustee. Assessments levied against the insured by any governmental body are not covered, whether they are charged against the insured or the association of property owners. For example, an insured lives in a community that has a clubhouse and pool for use by the residents. A tornado damages both the clubhouse and pool. The damages are extensive and residents are assessed $1,500 for damages to the clubhouse and pool. When the property is being repaired it is discovered that there is even more damage than realized, so the residents are assessed another $1,500. The loss assessment limit is $2,000, and since the assessment is related to one incident, only $2,000 of the $3,000 assessment total is paid out, leaving $1,000 to be assumed by the insured.

SECTION II – CONDITIONS

A. Limit Of Liability Our total liability under Coverage E for all damages resulting from any one "occurrence" will not be more than the Coverage E Limit Of Liability 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 Coverage F Limit Of Liability shown in the Declarations.

B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one "occurrence".

C. Duties After Occurrence In case of an "occurrence", you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this Policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed:

1. Give written notice to us or our agent as soon as is practical, which sets forth:

a. The identity of the Policy and the "named insured" shown in the Declarations; b. Reasonably available information on the time, place and circumstances of the "occurrence"; and c. Names and addresses of any claimants and witnesses;

2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the "occurrence"; 4. At our request, help us:

a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses;

5. With respect to C. Damage To Property Of Others under Section II – Additional Coverages, submit to us within 60 days after the loss a sworn statement of loss and show the damaged property, if in an "insured's" control; 6. No "insured" shall, except at such "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".

D. Duties Of An Injured Person – Coverage F – Medical Payments To Others

1. 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.

2. The injured person will submit to a physical exam by a doctor of our choice when and as often as we reasonably require.

E. Payment Of Claim – Coverage F – Medical Payments To Others Payment under this coverage is not an admission of liability by an "insured" or us.

F. Suit Against Us

1. No action can be brought against us unless there has been full compliance with all of the terms under this Section II. 2. No one will have the right to join us as a party to any action against an "insured". 3. Also, no action with respect to Coverage E can be brought against us until the obligation of such "insured" has been determined by final judgment or agreement signed by us.

G. Bankruptcy Of An Insured Bankruptcy or insolvency of an "insured" will not relieve us of our obligations under this Policy.

H. Other Insurance 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.

I. Policy Period This Policy applies only to "bodily injury" or "property damage" which occurs during the policy period.

J. Concealment Or Fraud We do not provide coverage to an "insured" who, whether before or after a loss, has:

1. Intentionally concealed or misrepresented any material fact or circumstance; 2. Engaged in fraudulent conduct; or 3. Made false statements; relating to this insurance.

Analysis

As with Section I, there are particular conditions that apply to the insured and the insurer in order for coverage to be applied. These conditions include the limit of liability, severability, duties after a loss, duties of an injured person, payment of a claim, suit against us, bankruptcy, other insurance, policy period, and concealment or fraud. There have been no changes from the previous policy.

Limit of liability

As always, there is a maximum limit of liability that will be provided. The total available limit for all damages from one "occurrence" that applies to Coverage E is the limit shown in the declarations, regardless of the number of "insureds", claims made, or persons injured. The insured and his family may have challenged the neighbors to a softball game, and while playing the "insureds" may have injured a number of neighbors. That would be one "occurrence", and all injury or damage from one accident or continuous or repeated exposure to the same general harmful conditions is considered to be one "occurrence".

Likewise, under Coverage F, the total liability will be the limit as shown in the declarations. The limit applies to one person as the result of one accident.

Severability of insurance

The severability of insurance condition states that the insurance applies separately to each "insured". This does not increase the limits of liability for any one "occurrence". Let's go back to the softball game. The insured's twin sons accidentally run into a player from the other team injuring him, and he sues the insured and his sons. Because of the severability clause, each son is afforded his own defense for the suit levied against him.

Duties after an occurrence

As with Section I, there are certain duties the insured must perform in even of an "occurrence" that are critical to the investigation and settlement of a claim. If the insured does not comply with these duties, the insurer has no duty to provide coverage if the insured's actions are prejudicial to the insurer.

Give notice

The first duty is to give written notice to the insurer or the agent as soon as practical. The written notice must provide the policy number, name of the "named insured" shown in the declarations, reasonably available information on the details of the incident such as time, place, circumstances, and names of claimants and witnesses.

Cooperate

The insured is required to cooperate fully with the insurer in the investigation, settlement or defense of any claim or suit, and promptly forward any notice, demand, summons or other process relating to the incident. A delay in providing such documentation could prejudice the insurer's ability to defend the insured.

Help make settlement

The insured must also, at the insurer's request, help it make settlement, enforce any right of contribution or indemnity against those liable to an insured, help with the conduct of suits and attend hearings and trials, help secure and give evidence, and obtain the attendance of witnesses. While the insured may be limited in his abilities to do some of these things, such as compel witnesses to attend a trial, he should do everything in his power to help the insurer in the handling of the claim.

Regarding damage to property of others

Regarding Damage to Property of Others, the insured is required to submit a sworn statement within 60 days after the date of the loss. If the damaged property is in the "insured's" control, he must also show the damaged property to the insurer as requested. "Insureds" are not to make any payments other than for first aid except at their own cost. Making payments can be taken as an admission of guilt, so the insured should not make payments to the claimant other than for first aid at the time of the incident.

Duties of an injured person

There are also duties that apply to any injured parties who are filing for Medical Payments to Others. The injured party, or someone acting for that injured party, is required to provide written proof of the claim as soon as practical and under oath if the insurer requires it, and must authorize the insurer to access any medical records or reports related to the incident. An injured party must also submit to a medical exam by a physician of the insurer's choosing as often as the insurer reasonably requires.

Payment of claim

Because payment can often be construed as an admission of guilt, the policy clearly states that payment under Coverage F Medical Payments to Others is not an admission of liability by an "insured" or the insurer. Medical payments coverage is not based on any fault of an "insured", but provides coverage for accidents that occur on the premises or because of actions of an "insured".

Suit

As in Section I, a suit cannot be filed against the insurer until all terms of the conditions have been complied with. No one has the right to join the insurer as a party to any action against an "insured", and no action with respect to Coverage E can be brought against the insurer until the obligation of the "insured" has been determined by a final judgment and signed by the insurer.

Bankruptcy

Bankruptcy of an insured does not change the insurer's obligation to pay any claims. The insured's financial status does not affect the insurer's duties after a loss.

Other insurance

What if there is other insurance that would provide coverage for an "occurrence"? In that case, this policy is excess over that policy unless that policy is specifically written as excess over this policy. It is important to look at the Other Insurance clause when dealing with multiple policies to determine how payments should be divided amongst the insurers.

Policy period

It is only natural that the policy applies only during the policy period, but in the interest of clarity the policy makes the statement.

Fraud

Fraud is taken very seriously by the insurance industry, and coverage is not provided for an insured who either before or after a loss intentionally conceals or misrepresents any material fact or circumstance related to the policy, engages in fraudulent conduct, or makes false statements to the insurer.

SECTIONS I AND II – CONDITIONS

A. 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 with a general program revision that includes both broadenings and restrictions in coverage, whether that general program revision is implemented through introduction of:

1. A subsequent edition of this Policy; or 2. An amendatory endorsement.

B. 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.

C. Cancellation

1. 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. 2. 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.

a. 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. b. 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. c. 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:

(1) If there has been a material misrepresentation of fact which if known to us would have caused us not to issue the Policy; or (2) 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.

d. 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.

3. When this Policy is canceled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata. 4. 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.

D. 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.

E. Assignment Assignment of this Policy will not be valid unless we give our written consent.

F. Subrogation An "insured" may waive in writing before a loss all rights of recovery against any person or organization. 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 to Coverage F or Paragraph C. Damage To Property Of Others under Section II – Additional Coverages. G. Death If any person named in the Declarations or the spouse, if a resident of the same household, dies, the following apply:

1. 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; and 2. "Insured" includes:

a. An "insured" who is a member of your household at the time of your death, but only while a resident of the "residence premises"; and b. With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative.

Analysis

The last section of the policy is conditions that apply to the policy as a whole, both Sections I and II. No changes have been made in this section. The standard liberalization clause applies; this provides that if the insurer makes a change to the policy that broadens coverage without an increase in premium, that change will automatically apply as long as implementation falls 60 days before or during the policy period. The liberalization clause does not apply when changes have been made that both broaden and restrict coverage, whether that change is implemented by a subsequent edition of the policy or an amendatory endorsement. For example, if an insurer decides to increase the dollar amount of special limits on watercraft without increasing the premium, that would fall under the liberalization clause.

Waiver

Any waiver or change in policy provision must be made in writing by the insurer in order to be valid. The insured cannot simply decide that a certain provision should read differently. An insurer's request for an appraisal or examination does not waive any of the insurer's rights.

Cancellation

Either an insurer or the insured may cancel the policy. If the insured decides to cancel the policy she may do so at any time by returning the policy to the insurer, or by letting the insurer know the date the cancellation is to take effect.

An insurer may cancel a policy but only for certain reasons. Those reasons are nonpayment, misrepresentation, a substantial change in risk, or any reason, depending on the effective date of the policy and when cancellation is desired. Various notification times are required.

When a policy is cancelled, there is often premium to be returned to the insured. Premium from the date of cancellation to the expiration date of the policy is returned to the insured on a pro rata basis. If for some reason the refund is not provided with the notice of cancellation or when the policy is returned to the insurer, it will be provided within a reasonable time after the cancellation is effective. What is considered a reasonable time is not defined.

Nonrenewal

Policies may also be nonrenewed by the insurer. The insurer will deliver notice to the insured at the mailing address listed in the declarations at least 30 days before the policy expires. Proof of mailing of the notice will be considered sufficient proof of notice. Many states have proof of notice requirements, which will supercede the policy requirements.

Assignment

An assignment is when an insured assigns the policy and its benefits to another party. Such action is not valid unless the insurer gives its written consent. An insurer does not want to assume a risk it has not had the chance to review.

Subrogation

Subrogation is the process by which an insurer seeks reimbursement from the responsible party for what was paid out for the loss. An "insured" may waive his rights to subrogation against any party before a loss occurs, but not after. The waiver must be in writing. If the subrogation rights have not been waived, the insurer may require the insured to sign his rights of subrogation over to the insurer. Such assignment must be in writing and the insured is required to provide the carrier with all paperwork and cooperate with the insurer in the claim. Subrogation does not apply to Coverage F, or Damage to Property of Others in Section II Additional Coverages.

Death

The last condition is what happens if the insured named in the declarations, or the resident spouse, dies during the policy period. The premises and property covered under the policy will continue to be covered for the legal representative of the deceased. Who is an "insured" changes upon the death of the named insured and upon his death includes "insureds" who are members of the household at the time of the death as long as they are residents of the "residence premises" and the person having legal custody of the insured property until a legal representative of the estate has been appointed.