Section I Exclusions

Section I Conditions

Section II Liability Coverages

Section II Exclusions

Section II Additional Coverages

Section II Conditions, Sections I and II Conditions

SECTION II – ADDITIONAL COVERAGES

We cover the following in addition to the limits of liability:

A. Claim Expenses We pay:

1. Expenses we incur and costs taxed against an "insured" in any suit we defend; 2. Premiums on bonds required in a suit we defend, but not for bond amounts more than the Coverage E limit of liability. We need not apply for or furnish any bond; 3. Reasonable expenses incurred by an "insured" at our request, including actual loss of earnings (but not loss of other income) up to $250 per day, for assisting us in the investigation or defense of a claim or suit; and 4. 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.

B. 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 an "insured".

C. Damage To Property Of Others

1. We will pay, at replacement cost, up to $5,000 per "occurrence" for "property damage" to property of others caused by an "insured". 2. We will not pay for "property damage":

a. To the extent of any amount recoverable under Section I; 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, occupancy, operation, use, loading or unloading of aircraft, hovercraft, watercraft or "motor vehicles".

This Exclusion e.(3) does not apply to a "motor vehicle" that:

(a) Is designed for recreational use off public roads; (b) Is not owned by an "insured"; and (c) At the time of the "occurrence", is not required by law, or regulation issued by a government agency, to have been registered for it to be used on public roads or property.

D. Loss Assessment

1. We will pay up to $2,000 for your share of loss assessment charged against you, as owner or tenant of the "residence premises", during the policy period 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 from coverage under Section II – Exclusions; or b. Liability for an act of a director, officer or trustee in the capacity as a director, officer or trustee, provided such person:

(1) Is elected by the members of a corporation or association of property owners; and (2) Serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property owners.

2. Paragraph I. Policy Period under Section II – Conditions does not apply to this Loss Assessment Coverage. 3. Regardless of the number of assessments, the limit of $2,000 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.

4. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body.

Analysis

Other than some minor editorial changes, there have been no changes to the additional coverages. The first additional coverage is claim expenses, and these expenses are related to suits the insurer defends the insured against. Any expenses incurred by the insurer and costs taxed against an "insured" for any suit defended by the insurer are covered. Likewise, an "insureds'" loss of earnings of up to $250 a day for assisting in the defense of a claim or suit is paid, as are reasonable expenses incurred by the insured at the insurer's expense. Interest on any judgments that accrue after the judgment has been entered and before the insurer makes payment is covered as well as long as the limit of liability is not exceeded. The policy will not pay more than policy limits.

First aid expenses are covered, but it must be noted that coverage applies to others and not "insureds". If an insured cuts himself while cooking and needs first aid, that would not be covered. If a guest is helping the insured with a project and is injured while on the "insured's" premises and needs first aid, that would be covered. First aid would be considered emergency care or treatment before regular medical aid could be obtained.

The next coverage is Damage to Property of Others, which is often referred to as "good neighbor" coverage. It pays for "property damage" to property of others without regard for the insured's legal liability. It's for things that just happen, like a tree branch falling onto the neighbor's property. Coverage is for up to $5,000 per "occurrence"; this is an increase over the previous amount of $1,000 in the earlier form. Not covered is property that would be covered under Section I, damage intentionally caused by an "insured" who is 13 years of age or older, damage to property owned by an "insured" or owned by a tenant or resident of an "insured'. Property of an "insured" would be covered under Coverage C in Section I. Also excluded is damage to property that arises out of a "business" engaged in by an "insured", acts or omissions in connection with a premises owned, rented, or controlled by an "insured" other than an "insured location" or the ownership, maintenance, operation, use, loading, unloading, or occupancy of any aircraft, hovercraft, watercraft, or "motor vehicles". An exception exists for "motor vehicles" that are designed for recreational use off of public roads, are not owned by an "insured" and at the time of the incident is not required to be registered for use on public roads or property. If an insured borrows a neighbor's ATV and has an accident that damages the ATV, there would be coverage.

The limits for loss assessment have also been increased, from $1,000 to $2,000. Coverage is for an assessment charged against the insured by a corporation or association of property owners when the assessment is made because of injury or damage not excluded under Section II – Exclusions, or for liability for any director, officer or trustee in their capacity as such, as long as the person is elected by the members of a corporation or association of property owners and serves without receiving any income for serving on the board. Assessments charged against the insured or a corporation of property owners by any governmental body is not covered.

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