Various classes of property may be covered on a blanket basis as follows: coin collections, cameras, fine arts, golfer's equipment, musical instruments, silverware, stamp collections, motorized golf carts, motorized ground maintenance vehicles, motorized snowmobiles, motorized vehicles for handicapped persons and outboard motors and boats.

A. Agreement
We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy.
B. Definitions
1. In this policy:
a. "You" and "your" refer to the "named insured" shown in the Declarations and the spouse if a resident of the same household; and
b. "We", "us" and "our" refer to the Company providing this insurance.
2. In addition, the word "insured" is defined to mean you, your spouse and relatives of either who are residents of your household.
When the word an immediately precedes the word "insured", the words an "insured" together mean one or more"insureds".

Analysis
The form begins with the standard agreement that in exchange for the premium and compliance with provisions certain coverages will be provided. "You" and "your" are given the standard definitions of the insured and resident spouse, and "we","us" and "our" refer to the company. The term "insured" is further defined to include you, your spouse and any relatives who are residents of the household. Therefore, an insured's children, siblings, or other relatives who live with the insured would be provided coverage. When the word 'an' immediately appears before the word "insured", it should be understood that it means one or more "insureds". Therefore, when the phrase an "insured" appears in the policy, it includes a single or multiple individuals.

C. Exclusions
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. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area.
1. War
War includes the following and any consequence of any of the following:
a. Undeclared war, civil war, insurrection,rebellion or revolution;
b. Warlike act by a military force or military personnel; or
c. Destruction, seizure or use fora military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental.
2. Nuclear Hazard
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.
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.
c. This policy does not apply to loss caused directly or indirectly by nuclear hazard, except that direct loss by fire resulting from the nuclear hazard is covered.
3. Governmental Action
Governmental action means the destruction,confiscation or seizure of covered property by order of any governmental or public authority. This exclusion does not apply to such acts ordered by any governmental or public authority that are taken at the time of a fire to prevent its spread, if the loss caused by fire would be covered under this policy.
4. Intentional Loss
Intentional Loss means any loss arising out of any act an "insured" commits or conspires to commit with the intent to cause a loss.In the event of such loss, no "insured" is entitled to coverage, even "insureds" who did not commit or conspire to commit the act causing the loss.
5. Neglect
Neglect means neglect of an "insured" to use all reasonable means to save and preserve property at and after the time of a loss.

Analysis
Because the form applies to scheduled personal property, exclusions are fewer than in many standard policies. The exclusions are preceded by the standard anticoncurrent causation language.The exclusions will apply even if the excluded peril occurs in conjunction with a covered peril.

As always, war is excluded, and war includes undeclared war, civil war, insurrection, rebellion, revolution, warlike acts by a military force or personnel, or destruction, seizure or use of property for a military purpose. Any discharge of a nuclear weapon is considered an act of war even if the discharge is accidental. The damage from such a weapon is such that it is always considered a warlike act.

Nuclear hazard is then also excluded, and it involves any sort of nuclear reaction, radiation, or radioactive contamination, controlled or uncontrolled, and regardless of any consequence of such discharges or reactions. Loss caused by a nuclear hazard will not be classified as a loss caused by fire, explosion or smoke, whether the perils are specifically named or otherwise listed in the Perils Insured Against of an endorsement. The only exception is for direct loss by fire resulting from a nuclear hazard. For example, there is an accident at a nearby nuclear power plant that sets the insured's dwelling on fire and scheduled property is destroyed in the fire. Since fire is the direct cause of loss, there would be coverage
.
Acts committed at the direction of governmental or public authorities to destroy, confiscate, or seize property are not covered. An exception exists if the authority directed destruction of property at the time of a fire to prevent the spread of the fire. For example, a wildfire is spreading through a neighborhood, and in order to stop the fire from continuing to spread the department damages the insured's property. As long as fire is a covered cause of loss, that loss would be covered, overriding this exclusion.

Intentional loss committed by an "insured" or that the "insured" conspires with others to damage property is excluded. Also excluded is coverage for any other "insured" on the policy, even if they were not involved in the intentional act to damage property.

An "insured" is expected to take steps to protect damaged property from further loss whenever property is damaged. If an "insured" fails to do so, the coverage is excluded due to neglect.

D. Loss Conditions
1. Loss Settlement
a. Standard Loss Settlement
(1) Scheduled Property The value of each scheduled article or item without a double asterisk (**) designation noted in the Schedule is not agreed upon but will bedeterminedat the time of loss.
We will not pay more than the least of the following amounts:
(a) The actual cash value of the article or item at the time of loss;
(b) The amount for which the article or item could reasonably be expected to be repaired to its condition immediately prior to loss;
(c) The amount for which the article or item could reasonably be expected to be replaced with one substantially identical to it; or
(d) The amount of insurance.
(2) Newly Acquired Property
If newly acquired property is covered, we will not pay more than the least of the following amounts:
(a) The actual cash value of the article or item at the time of loss;
(b) The amount for which the article or item could reasonably be expected to be repaired to its condition immediately prior to loss;
(c) The amount for which the article or item could reasonably be expected to be replaced with one substantially identical to it; or
(d) The limit of coverage.
(3) Loss To A Pair, Set Or Parts
If the article or item is a pair or set or consists of several parts when complete, we may elect to:
(a) Repair or replace any part to restore the pair or set to its value before the loss;
(b) Pay the difference between the actual cash value of the property before and after the loss; or
(c) Pay for the value of the part lost or damaged. In the case of an article of fine art, we will pay the actual cash value of the article before the loss and take the remaining parts.
(4) Recovered Property
If you or we recover any property for which we have made payment 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, we will adjust the loss payment based on the amount you received for the recovered property.

Analysis

There are a large number of loss conditions because the form is used with so many different types of property.Remember to look at the specific endorsements as well, because some modify sections of these loss provisions.

If an item in a schedule is marked without a double asterisk (**), the amount on the schedule is not an agreed amount and the amount will be determined at the time of loss. The amount paid will be no more than the least of the actual cash value at the time of loss, the amount for which the item could be reasonably repaired to its preloss condition, the amount for which the article could be replaced with one substantially identical to the damaged item,or the limit of insurance.

Newly acquired property is handled separately. If an insured has recently acquired new property similar to what is on the schedule, then the amount paid will be the least of the actual cash value at the time of loss, the amount for which it could be repaired to its preloss condition, the amount for which it could be replaced with one substantially identical, or the limit of insurance.

Loss to a pair, set,or parts allows for the repair or replacement of any part to restore the item to its preloss condition, payment of the difference between the actual cash value before and after the loss, or payment for the value of the part lost or damaged. It's possible that if one half of a pair of valuable items is damaged that the remaining item no longer has any value without its' partner. If the article is a fine art, payment of the actual cash value before the loss will be paid, and the insurer will take the remaining parts.

If covered property is stolen and later recovered after payment has been made, the insured will be notified of the recovery and the insured has a few options. The insured can have the property returned to him or let the insurer take custody since the insured has been paid for the loss. If the insured opts to take the property back, the payment amount will be adjusted based on the amount received for the covered property. The insured may have already replaced the property and may not want the original back. Or, the property could hold sentimental value for the insured, in which case the insured may want it back to have it repaired and restored. The insurer and insured will work out adjustment of payment for the loss.

b. Agreed Value Loss Settlement - Scheduled Property Only
(1) We will pay the full amount shown in the Schedule for each article or item designated with a double asterisk (**). That amount is agreed to be the value of the article or item.
At our request you will surrender the article or item to us if not lost or stolen.
(2) If the article or item is a pair or set, or consists of several parts when complete:
(a) We will pay the full amount shown in the Schedule for that pair, set or complete article or item; and
(b) At our request, you will surrender it to us if it is not lost or stolen.
(3) In the event a lost or stolen article or item is recovered, you will surrender it to us.
(4) We will, at your request, sell back to you, at a price you and we agree upon, any article or item you surrender to us to comply with the above terms.
c. Unscheduled Property-Blanket Insurance
(1) Postage Stamp Or Rare And Current Coin Collections
We will pay only that proportion of any loss on an unscheduled stamp or coin collection that the amount of blanket insurance bears to the actual cash value of such property at the time of loss, but not more than:
(a) $1,000 on any unscheduled coin collection; or
(b) $250 for any one stamp, coin or individual article or any one pair, strip, block, series sheet, cover, frame or card.
(2) Cameras, Fine Arts, Golfer's Equipment, Musical Instruments And Silverware
We will pay only that proportion of any loss on unscheduled cameras, fine arts, golfer's equipment, musical instruments or silverware that the amount of blanket insurance bears to the actual cash value of such property at the time of loss but not more than $500 for any one item.
2. Loss Clause
We will not reduce the amount of insurance under this policy except for a total loss of scheduled property. We will refund the unearned premium for that property after the loss or you may apply the refund to the premium due for its replacement.
3. Loss Payment
a. We will adjust all losses with you. We will pay you unless:
(1) A claim has been paid by others; or
(2) Some other person is named in the policy or is legally entitled to receive payment.
b. Loss will be payable 60 days after we receive your proof of loss and:
(1) Reach an agreement with you;
(2) There is an entry of a final judgment; or
(3) There is a filing of an appraisal award with us.

Analysis

Certain property is settled on an agreed value basis. If an item is scheduled with double asterisk (**) then the amount listed is the agreed amount that will be paid in event of a loss. At the insurer's request, if the property is not lost or stolen, then the damaged property will be surrendered to the insurer.

If the damaged item is part of a pair or set, or consists of several parts when complete, then the full scheduled amount will be paid for the item or items and at the insurer's request the item or items will be surrendered to the insurer. If a lost or stolen item is recovered after payment has been made, the item will be surrendered to the insurer. At the insured's request the insurer will sell any surrendered items back to the insured at a price agreed upon by both parties.

There are different parameters for certain property covered on a blanket basis. Postage stamps and coins that are under blanket coverage are covered only to the proportion of loss to the actual cash value of the property, but no more than $1,000 for any unscheduled coin collection or $250 for any one stamp, coin or individual article, or any one pair, strip, block, series sheet, cover frame or card. For example, an insured has a stamp collection listed under blanket coverage of $10,000. The insured sustained a fire,and a rare series sheet of unscheduled stamps was burned before the fire was extinguished.The series sheet was valued at $300. The maximum amount paid for the destroyed stamps will be $250.

Similar provisions exist for cameras, fine arts, golfer's equipment, and silverware. Only the proportion of loss that the amount of blanket insurance bears to the actual cash value will be paid, with a maximum of $500 for any one item.

The Loss Clause states that the amount of insurance will not be reduced under the policy except for situations of a total loss of scheduled property. The unearned premium will be refunded for the damaged property after a loss, or the insured has the option to apply the refund to the premium for any replacement property. An insured may decide to not replace the property immediately and may wait, or an insured could immediately replace what was destroyed.

Losses are adjusted with an insured unless the claim was paid by others, or another party is named in the policy and is legally entitled to payment.In which case, those people will be paid. Losses are payable 60 days after the insurer receives the proof of loss, reaches an agreement with the insured, there is an entry of a final judgment, or there is a filing of an appraisal award with the insurer.

4. Duties After Loss
In case of a loss to covered property, we have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us. These duties must be performed either by you, or an "insured" seeking coverage, or a representative of either:
a. Give prompt notice to us or our authorized representative;
b. Notify the police in case of loss by theft;
c. 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. Such expenses will be paid by you and us in proportion to our respective interests;
d. Cooperate with us in the investigation of a claim;
e. Prepare an inventory of damaged 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;
(3) Submit to examination under oath, while not in the presence of another "insured", and sign the same; and
(4) Produce, to the extent that it is within your power, your employees, members of your household or others so that they may be examined under oath.
(5) Send to us, within 90 days after discovery of the loss, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief:
(a) The time and cause of loss;
(b) The interests of all "insureds" and all others in the property involved and all liens on the property;
(c) Other insurance or service agreement which may cover the loss; and
(d) The inventory of damaged property described in e. above.
5. Loss Payable Clause
If the Declarations names a loss payee and the property in which the loss payee has an interest, we will adjust any loss with you and make the loss payment to you or an "insured" legally entitled to receive payment and the loss payee as their respective interests may appear.
We will notify the loss payee in writing if we cancel or do not renew the policy.

Analysis

The duties after a loss section is standard and self-explanatory. The insured is required to comply with all duties, as is any "insured" filing for coverage or a representative of any insured.
Prompt notice of the loss must be provided, and police must be notified if the loss is a theft. Any damaged property is to be protected from further damage, including repairs to protect the property. The insured is to cooperate with the insurer's investigation and create an inventory of all damaged property listing a description, the actual cash value, and amount of loss as well as provide receipts and related documents that support the information on the inventory. Damaged property, records, and documents must be shown to the insurer on request, and the insurer must be allowed to make copies of documents and records.

If necessary, an insured is required to submit to an examination under oath and produce employees, members of the household or others to the extent possible for similar examinations if needed. Within 90 days of the discovery of the loss the insured is to submit to the insurer a signed, sworn proof of loss that lists the time and cause of the loss, the interest of the "insureds'" and others in the property, any other insurance that might provide coverage and the inventory.

The Loss Payable Clause states that if a loss payee is listed in the declarations, that any loss will be adjusted with the insured and the listed loss payee as respective interests appear. Loss payees are notified if the policy is canceled or nonrenewed.

E. Other Conditions
1. Policy Period
This policy applies only to loss which occurs during the policy period.
2. 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 an "insured" for more than the amount of such "insured's" interest at the time of loss; or
b. For more than the applicable amount of insurance.
3. Claim Against Others
We will consider any payment we make to you a loan if we believe a loss is collectible from others.
You will repay that loan to us out of any recovery you or we receive from others.
You will assist us in every way possible to recover from others and we shall, at our expense, take over your rights against others to the extent of our payment.
4. 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 and impartial 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 within15 days, you or we may request that the choice be made by a judge of a court of record in the state of your residence.
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.
5. Other Insurance And Service Agreement
If a loss covered by this policy is also covered by other insurance or a service agreement, this insurance is excess over any amounts payable under any such insurance or agreement. Service agreement means a service plan, property restoration plan or other similar service warranty agreement, even if it is characterized as insurance.
6. Suit Against Us
No action can be brought against us unless there has been full compliance with all of the terms of this policy and the action is started within two years after the date of loss.

Analysis

The Other Conditions section is again self-explanatory and familiar. The first half covers policy period, insurable interest, limit of liability, claims against others, appraisal, other insurance and service agreement, and suit against us.

The policy period is unique in that a policy can be written for less than a year, for one year, or for three years. For policies of less than a year or for a year, the policy may be extended for successive periods based on the premiums, forms, and endorsements in effect for the company. Three-year policies may be prepaid or paid in annual installments.

The Claim Against Others clause states that payment to the insured will be considered a loan if the insurer believes the loss is collectible from another party. Once payment is made either to the insured or the insurer, the amount paid to the insured will be repaid to the insurer. The insured is required to assist the insurer in recovering from others, and the insurer will take over the insured's rights against others to the extent of the payment to the insured.

7. Insurance Not To Benefit Others
No person or organization having custody of the property and to be paid for services shall benefitf rom this insurance.
8. Changes In Policy No change in this policy may be made except by us in writing.
9. Concealment Or Fraud
We provide coverage to no "insureds" under this policy 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.
10. 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 within60 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:
a. A subsequent edition of this policy; or
b. An amendatory endorsement.
11. 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 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. The cancellation will be effective as of the date shown on the Cancellation Notice, but not less than ten (10) days after mailing to the address in this policy or last known address. The mailing of notice is sufficient proof of notice of cancellation. Delivery of notice shall be equivalent to mailing.
c. When you request cancellation, the return premium will be based on our short rate procedure. When we cancel, the return premium will be pro rata.
12. 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.
13. Death
If an "insured" dies, the following apply:
a. We insure the legal representative of the deceased but only with respect to property of the deceased covered under the policy at the time of death; and
b. "Insured" includes:
(1) An "insured" who is a member of the deceased "insured's" household at the time of death, but only while a resident of the residence shown in the Declarations; and
(2) With respect to the deceased "insured's" property, the person having proper temporary custody of the property until appointment and qualification of a legal representative.

Analysis

The next section of conditions includes insurance not to benefit others, changes in policy, concealment or fraud, liberalization, cancellation, nonrenewal, and death. Again, most of these clauses are standard and familiar. The Insurance Not to Benefit Others clause states that no person or entity having custody of the property who is being paid for services shall benefit from this coverage.

The Death clause adds a definition of "insured" to include an "insured" who is a member of the household at the time of death but only while they are a resident of the residence shown in the declarations. A relative who lives nearby will not be considered an "insured" for covered property unless that person has proper temporary custody of the property until a legal representative has been appointed. Legal representatives once appointed are covered only with respect to the property of the deceased covered at the time of death.

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