Tenant/Condominium Unit Owner's policy - SGI Canada

Policy BookletYour Easy ReadTenant/CondominiumUnit Owner’s BookletManitobaSGI CANADA Insurance Services Ltd.ETC-21

ParT 2 — Personal lIaBIlITYdefInITIons aPPlICaBle To ParT 2......................................... 19Personal lIaBIlITY..................................................................... 20amounT of ProTeCTIon............................................................. 20BodIlY InjurY and ProPerTY damage................................. 20TenanTs and renTers ............................................................... 21added feaTures of Your ParT 2........................................... 21volunTarY medICal PaYmenTs .............................................. 21volunTarY ProPerTY damage PaYmenTs.......................... 21loss assessmenT for lIaBIlITYCondomInIum unIT oWners................................................... 22jeT ProPulsIon Personal WaTerCrafT lIaBIlITY .......... 22ClaIms We WIll noT Cover ...................................................... 22If You have a ClaIm .................................................................... 24WhaT You musT do.......................................................................24WhaT We WIll do ..........................................................................25defense seTTlemenT – suPPlemenTarY PaYmenTs.........25hoW We seTTle a ClaIm............................................................. 25general CondITIons for ParT 2............................................ 25sTaTuTorY CondITIons.............................................................. 27

Tenant & Condominium unitowner’sYour Tenant or Condominium Unit Owner’s Pak policy is made up of aCover Page and this booklet. This booklet explains a number ofcoverages. Your Cover Page shows which Pak you have, what we agreeto insure, the coverage we provide, and the amount of protection. It alsoshows the premium you have agreed to pay. All amounts of protectionare shown and all losses are payable in Canadian dollars.This policy booklet is in two parts:— Part 1 Your Belongings explains coverage for property you ownor use.— Part 2 Personal liability explains coverage for your liability dueto your personal actions that involve bodily injury or propertydamage to someone else.When we say “you” or “your” in explaining this policy, we mean theperson(s) named on your Cover Page and the following unnamedpersons living in the same household:— the spouse of the person(s) named on the Cover Page.Spouse also means either of two persons of the same or oppositesex who have been continuously living together for two years in aconjugal relationship outside marriage, or one year if they are thenatural or adoptive parents of a child.— the relatives of any of the above.any spouse, mother, father, grandmother, grandfather or child ofthe person(s) named on the Cover Page, while residing awayfrom your home in an approved nursing or care home.— anyone in the care of any of the above.— unmarried students while attending school and residing awayfrom your home.All claims will be settled directly with the person(s) named on your CoverPage. Only the person(s) named on your Cover Page may make a claimagainst this policy and may take action against us.Claims presented for loss or damage by any person(s) as defined above,shall be considered to be made by all named or unnamed insuredperson(s) jointly. Action(s) of any person either individually or jointly shallbe considered action(s) by all for the purpose of investigation andsettlement of losses.When we say “we”, “us”, or “our”, we mean SGI CANADA InsuranceServices Ltd.When we say “premises” in this policy we mean the following:— for Condominium unit owners — Your dwelling unit at thelocation shown on your Cover Page including garages, parkingstalls, outbuildings, storage room or locker, and privateapproaches reserved for your exclusive use and occupancy as aprivate residence.— for Tenants — The dwelling building or portion of the dwellingbuilding at the location shown on your Cover Page and its privateapproaches rented by you for your use and occupancy as aprivate residence, including garages, parking stalls, storagerooms or locker, and outbuildings.The key to your policy is its Cover Page. It shows the type and amount ofyour coverage. It gives the location of property you are insuring, and it1

describes certain types of property you are insuring. Your coverage startsat the time and date shown on the Cover Page as the effective date. Itends at 12:01 A.M. standard time on the expiry date. The Cover Pageshows both of these dates. This is your policy term.This policy contains various exclusions and limitations which eliminate orrestrict coverage, please read it carefully.Insurance cannot be a source of profit. It is only designed to indemnifyyou against actual losses or expenses incurred by you or for which youare liable.Part 1 — Your BelongingsMeans personal property that you own or use, kept at your premises.Coverage is extended to include the following:— belongings that are away from your premises temporarily, other thanbelongings in storage. Belongings in storage shall mean belongingsnot in current use and kept at a location away from your premises.— belongings in storage in an occupied private dwelling.— belongings in storage in a commercial storage facility designed forthat purpose— belongings in storage away from your premises for up to 30consecutive days, if stored other than in an occupied private dwellingor commercial storage facility designed for that purpose. We willextend this 30 day coverage if you tell us of placing your belongingsinto storage and this is shown on the Cover Page. This will involve anextra premium charge.— golf carts kept year round at a golf course.— furs, boats, their equipment, accessories and outboard motors, andjet propulsion personal watercraft, including unlicensed boat trailers,during seasonal storage away from your premises.— belongings while you move them to a new principal residence inCanada. This coverage lasts for 30 days from the day you start themove and covers:— at your premises shown on your Cover Page.— in transit.— at your new premises.There are some limits on the kinds of belongings and property we willcover and the amounts blanket coverage will pay. These are shown in“Property with specific amounts of Protection” and “Property andCauses of loss We do not Cover.”any belongings we cover as special belongings or which arespecifically insured elsewhere are not covered here.Perils Insured — Cover Code a — Pak aWe cover belongings under Pak A for direct physical loss or damagecaused by the following 10 Perils:11) fire or lightning.12) explosion or Implosion.13) smoke. By this we mean damage due to sudden and unusual failureof a heating or cooking unit in or on the premises. This could include,such things as a furnace, stove or fireplace.14) falling objects that hit the outside of an insured building orstructure.15) Impact by aircraft, spacecraft or land vehicles.2

16) riot.17) vandalism or malicious acts. We do not cover loss or damage:— directly or indirectly caused by theft or attempted theft.— while your dwelling is under construction or vacant.— caused by you or anyone living in your household.— caused by any tenant, tenant’s guests, tenant’s employees, ormember of their households.18) Water escape and rupture. If you are away from your premises formore than ten consecutive days during the normal heating season,you must do one of three things. You must shut off the water supplyand drain all pipes, attached fixtures, and appliances, or have areliable person come in daily to check the heating, or you must haveyour dwelling electronically monitored 24 hours per day by acompany that monitors and responds to a low temperature signal. Ifyou do not, we will not cover loss or damage caused by freezing, orresulting water damage.We do not cover loss or damage caused by freezing to any part of aplumbing, heating, fire sprinkler, air conditioning system or householdappliance not in a heated building, or any resulting water damage.We do not cover loss or damage to your premises or belongings, ifyour premises have been vacant for more than 30 consecutive daysor while your premises are under construction.Water escape. Means accidental discharge or overflow of water orsteam from your plumbing, heating, fire sprinkler, air conditioningsystems, household appliances, aquariums, waterbeds, a swimmingpool or hot tub or their attached equipment, or a public watermain.We do not cover damage caused:— by seepage, or continuous or repeated leakage.— by backup, discharge or escape or overflow of water or sewagefrom a sewer, sump, septic tank, or eaves trough or downspoutconnected to your sewer.rupture. Means damage to plumbing, heating, fire sprinkler or airconditioning systems within your dwelling caused by sudden andaccidental bursting, tearing apart, cracking, burning, or bulging of thesystem, due to the pressure of or lack of water or steam. We do notcover damage caused by rust, corrosion, or deterioration.19) Windstorm or hail. The interior of a building and belongings insideare also covered but only if the damage happens immediately afterwind or hail first makes an opening in the building. This peril does notcover loss or damage caused by waves, flood, high water, ice, snowor sleet, whether driven by wind or not.10) electricity. Means sudden and accidental loss or damage caused byartificially generated electrical current.There are other causes of loss we will not cover under this policy.These are shown under “Property and Causes of loss We do notCover.”Perils Insured — Cover Code B — Pak IWe cover belongings under a Pak I for direct physical loss or damagecaused by the Perils as defined and limited in Cover Code A plus thefollowing named perils:11) glass Breakage (Applicable to Condominium Unit Owners Paksonly). We will pay for accidental breakage of glass or safety glazingmaterial which is part of your condominium unit including stormwindows or doors. But we only cover if you are held responsible forthe damage by the condominium corporation by-laws or it is part ofyour improvements and betterments. You must pay the deductibleshown on the Cover Page.12) Theft, including damage caused by attempted Theft. We do notcover the following:3

— property in any vehicle or trailer away from your premises, unlessthe loss follows illegal entry into the vehicle or trailer while it waslocked. There must be signs of forced entry into the vehicle ortrailer.— property on your premises while your premises is underconstruction or vacant.— property from that part of your premises rented by you to otherscaused by the tenant, tenant’s guests, tenant’s employees, ormembers of their household.— loss or damage caused by you or anyone living in yourhousehold.13) Transportation. We cover loss or damage to belongings and buildingfixtures and fittings while they are being transported if caused by anaccident to the transporting vehicle.There are other causes of loss we will not cover under this policy.These are shown under “Property and Causes of loss We do notCover.”Perils Insured — Cover Code C — Pak IIWe cover belongings under a Pak II against the risk of direct physicalloss or damage caused by comprehensive perils:14) Comprehensive Perils. Shown below are some perils or causes ofloss that we exclude. If these are the cause of loss or damage, we donot cover such loss. If the peril that causes loss or damage is not oneof the perils shown below, then you are covered.We do not cover loss or damage:a) caused by flood, surface water, waves, tidal waves, overflow ofstreams or other bodies of water, spray, ice, or waterborneobjects, whether any of the former are driven by wind or not. Wewill cover the loss or damage if it was due to a sudden andunexpected escape of water from a swimming pool or its attachedequipment, fire fighting activities, or a public watermain.b) caused by water below ground level including that which exertspressure on or flows, seeps or leaks through any opening in asidewalk, driveway, foundation, wall, window, door or floor. Wewill cover the loss or damage if it was due to a sudden andunexpected escape of water from a swimming pool or its attachedequipment, fire fighting activities, or a public watermain.c) due to theft or attempted theft, vandalism or malicious actscaused by:i) any tenant, tenant’s guests, or tenant’s employees, ormembers of their household.ii) you or anyone living in your household.d) due to theft or attempted theft, vandalism or malicious acts whileyour premises are vacant or under construction.e) caused by escape of water or steam from a plumbing, heating,fire sprinkler or air conditioning system, household appliance,swimming pool or hot tub or their attached equipment, or publicwatermain occurring after your dwelling has been vacant for morethan 30 consecutive days or while your dwelling is underconstruction.f) caused by sudden and accidental bursting, tearing apart,cracking, burning, or bulging due to the pressure of or the lack ofwater or steam in a plumbing, heating, fire sprinkler, airconditioning system, or an appliance for heating water occurringafter your premises have been vacant for more than 30consecutive days or while your premises are under construction.g) caused by freezing or resulting water escape from a plumbing,heating, fire sprinkler, air conditioning system, or householdappliance during the normal heating season and you are awayfrom your premises for more than ten consecutive days.4

arson Conviction rewardWe will pay $1,000 for information that leads to a conviction for arson inconnection with a fire loss to property insured by this policy. The amountwe pay adds to your total amount of protection. The $1,000 limit will notbe increased regardless of the number of persons providing information.This coverage is not subject to a deductible.automatic acquisitionsAny insurable belongings you acquire after the effective date of this policyare automatically covered subject to the terms of this policy. This includesitems you purchase while away on vacation.Belongings of guests and employeesYou may use up to 10% of your belongings protection for belongings ofyour household employees or non-paying guests. These belongings mustbe at your premises or in the care of household employees carrying outduties of their employment away from your premises. Loss must be dueto a peril for which your own belongings are insured. Your guests orhousehold employees must not have any coverage on their belongings.Credit, debit, or electronic funds Transfer Cards, Cheques, andCounterfeit money CoverageThis feature adds to your total amount of protection. There is nodeductible. The loss must take place during the policy term. However,you are covered if you do not discover the loss for up to a year after theterm ends. We will pay up to $1,000 for any one loss and a total amountof $2,500 in all for losses in any one policy term even if losses involvemore than one card, cheque forgery, law suit, or piece of counterfeitmoney, or involved multiple purchases, transactions, or occurrences.We will pay up to the limits provided for the following situations:11) when someone else misuses your lost or stolen credit or debitcard(s), or makes unauthorized cash withdrawals or transactions thatresult in a loss through an automated teller machine or other similardevice. Misuse is covered for up to seven days after you discover thecard(s) missing or stolen. You must immediately contact the companythat issued the card(s) and comply with all the terms of your contractwith them.However, we will not pay for any loss if you allow others to find outyour personal identifications number (P.I.N.), or if you do not keepyour P.I.N. and card completely separate to prevent losing both at thesame time. Keeping these in different compartments of the sameobject, such as your wallet, handbag, dresser, or vehicle shall not beconsidered as being kept separate.12) when someone else alters or forges your cheque, draft, or promissorynote. We will also pay if you write a cheque to a person who does notexist or who pretends that they are someone else, but you must bedeliberately tricked into doing it.13) when you are sued for the payment of a credit card charge or chequethat has been forged or altered. We will pay for your reasonable legalexpenses. You must have our permission to defend yourself againstthe suit.14) when you accept counterfeit Canadian or U.S. money thinking that itis real.debris removalYou may have us pay to remove debris from your premises, if yourinsured property has been damaged or destroyed by an insured peril.We will also pay for removal of property of others, excluding trees, shrubsand plants, blown on to your premises by windstorm, if your insuredproperty is damaged or destroyed by an insured peril.Debris removal expenses shall not be considered for the purpose ofapplying any co-insurance.6

emergency entry Property damageCoverage is automatically provided to repair damage to your premises(permanent or temporary residence) if damaged as a result of forcibleentry by police, ambulance, fire department, or other persons to save andpreserve life. The policy deductible does not apply to this coverage.fraud Conviction rewardWe will pay $1,000 for information that leads to a conviction of fraud inconnection with an insured loss to property covered by this policy. Theamount we pay adds to your total amount of protection. The $1,000 limitwill not be increased regardless of the number of persons providinginformation.No deductible applies to this coverage.Increased living expenses and lost rental IncomeYou may use up to 20% of the amount of protection shown on your CoverPage for belongings if you are a Tenant or 100% of the amount ofprotection shown on your belongings if you are a Condominium UnitOwner to pay for an increase in your living expenses and loss of rentalincome. The costs must be due to a peril for which your belongings areinsured. The length of time we will continue to make payments is notrestricted by the expiry of your policy. The amount we pay adds to yourtotal amount of protection.We will pay for:11. Increased living expenses. If a loss makes your premisesunlivable, we will pay for your moving costs. We will pay for areasonable increase in your cost of living required to maintain yournormal standard of living. We will not pay expenses for things that arenot needed to support you.We will continue to pay only until your premises are fixed or replaced,or you permanently relocate. We will allow a reasonable time foreither of those to be done.12. lost rental Income. We will pay for your actual loss of rental incomefor those parts of your premises or outbuildings that you were rentingout when the loss took place. We will pay for the fair rental value ofthis property even if it was not rented out when the loss took place.You must show us that you were trying and able to rent it out at thetime. We will pay until you have had a reasonable length of time to fixyour premises or outbuildings. We will deduct any saving in expenses,such as electric and water bills, which stop because of the loss.We will not pay for any increased costs due to unnecessary delays onyour part, to fix or replace your premises, relocate, or settle yourhousehold.We will also pay when a public authority denies you access to yourpremises. We will pay these costs for up to two weeks. The denial can bedue to actual or threatened damage to your premises or outbuildings, butit must be due to a peril for which your premises are insured. If you havea Pak II, it must be due to a listed Peril.Inflation Protection factorTo help protect you in the event of a loss, we will raise the total amount ofprotection on your belongings by a portion of the Inflation ProtectionFactor (IPF) percentage (as shown on the cover page) as follows:— 2 months after inception date - 25% of the IPF— 5 months after inception date - 50% of the IPF— 8 months after inception date - 75% of the IPF— 11 months after inception date - 100% of the IPF“Inception” means the effective date of the policy or, if the policy hasbeen in force for more than one year, its last anniversary date. If yourequest a change in the amount of insurance during the policy term, the7

effective date of that change will be considered the “inception”, until thenext policy anniversary date.This added feature does not apply to condominium units.mass evacuationYou may use up to 20% of the amount of protection shown in your coverpage for your belongings to pay for increased living expenses when apublic authority denies you access to your premises because of a massevacuation order due to a sudden or unexpected event. We will pay thesecosts for up to two weeks. The amount we pay adds to your total amountof protection.We will not pay costs due to:a) flood meaning waves, tides, tidal waves and the rising of, thebreaking out or the overflow of, any body of water, whethernatural or man-made;b) earthquake;c) war, invasion, act of foreign enemy, hostilities (whether war bedeclared or not), civil war, rebellion, revolution, insurrection ormilitary power;d) any nuclear incident as defined in the Nuclear Liability Act,nuclear explosion or contamination by radioactive materialoutdoor Trees, shrubs, and PlantsYou may use up to 5% of the amount of protection on your belongings topay for loss or damage to trees, shrubs, plants, and lawns. The loss mustbe due to one of these seven causes: 1) Fire. 2) Lightning. 3) Explosionor Implosion. 4) Riot. 5) Impact by an aircraft, spacecraft, or land vehicle.6) Vandalism. 7) Malicious Acts.We will pay up to $1,000 for your lawn or any one tree. We will not payfor a loss to anything you grow for sale or that is located more than 65metres (200 feet) from your premises.Property Protection CoverageWe will pay for property that is damaged or used trying to protect yourpremises, or belongings from a loss. For example, we will pay torecharge a neighbour’s fire extinguisher if it was used to fight your fire.We will not pay for property owned by a fire department. The amount wepay adds to your total amount of protection.frozen food CoverageWe will pay up to $1,000 for loss or damage to frozen food contained inthe freezer unit(s) located within your dwelling when caused by accidentalinterruption of electrical power, off the premises or mechanicalbreakdown of the said refrigeration unit(s).We do not insure:1) loss or damage to inherent vice and/or natural spoilage.2) loss resulting from any process or refinishing, renovating or repairingthe freezer unit.3) loss resulting from your failure to use all reasonable means to saveand preserve the insured property.4) spoilage as a result of manual disconnection of the power supplywithin your dwelling or unit whether accidental or deliberate.5) expenses incurred in the acquisition of the food.There is no deductible for this coverage.Temperature ChangeIf there is a failure of any system in your premises that maintains anartificial temperature, such as your furnace or freezer, we will pay for theloss or damage to your belongings that is caused by the resulting changein temperature. The belongings must be in a building. The failure of thesystem must be the result of a peril for which you are insured.8

Theft damage to PremisesYou may apply $1,000 of your belongings protection to pay for damage toyour premises caused by theft or attempted theft. Your policy must covertheft for this coverage to apply.additional Coverage for Condominium unit ownersYour Condominium Unit Owners Pak includes the additional coverageshown below. Your Cover Page shows the perils insured and theamounts of protection.automatic residence CoverageWhen you purchase a new condominium unit in Manitoba to replace yourcondominium unit shown on the Cover Page and notify us within 30 daysof the title registration to you, we will cover both units for a period of 30days before or after the registration. This coverage no longer applies afterthe policy expiry date. The amount we pay adds to your total amount ofprotection. We will not pay more than the amount shown on the CoverPage for each unit.Contingent CoverageWe will pay up to the amount of protection shown on your Cover Page tocover your interest in your unit, excluding any improvements orbetterments to it, if the Condominium Corporation has no insurance, itsinsurance is inadequate, or it is not effective. The loss must be caused bya peril insured by this policy. We do not cover improvements orbetterments made by you or purchased by you under any sale agreement.We will pay as follows:— the replacement cost if the property is repaired or replaced withina reasonable length of time using similar materials; or— if repairs or replacement are not made within a reasonable lengthof time, we will pay only the actual cash value of the property.unit Improvements and BettermentsWe will pay up to the amount of protection shown on your Cover Page tocover unit improvements and bettermentsWe cover direct physical loss or damage to the following::— improvements and betterments of your unit made by you oracquired under any sales agreement.— your materials intended to be used in alteration, renovation, orrepair to your condominium unit located at your premises orwhich you acquire and transport to your premises.— permanently installed flooring in your unit that is part of thebuilding but not insured by the Condominium Corporation.We will pay as follows:— the replacement cost if the property is repaired or replaced withina reasonable length of time using similar materials; or— the actual cash value if repair or replacement is not made within areasonable length of time.The loss or damage must be caused by a peril for which your are insured.estate CoverageCoverage restrictions due to vacancy will not apply within the first 90days (or expiry date of the policy, whichever comes first) from the dateyour premises becomes vacant or unoccupied due to the death of anInsured.Upon expiration of this coverage, Part 1 general conditions for vacancywill apply.lock replacement CoverageWe will pay up to $1,000 for the cost of changing the key combination inyour lockset or, if necessary, replacing the lockset(s) on your dwelling oroutbuildings if their keys are stolen. The policy deductible does not applyto this feature. Your policy must cover theft for this coverage to apply.9

optional Coverages:Your Cover Page will show which of the following optionalCoverages apply to your policy.voluntary fire fighting CoverageIf your Cover Page shows that you have this coverage, we will pay up tothe amount of protection shown to a fire department for its services. Theservices must deal with a fire loss for which your premises, or belongingsare covered or they must be needed to protect your property or propertyof others adjacent to your premises, from such a loss.This coverage will apply to all property and locations shown on the CoverPage.We will not pay for property owned by a fire department.There is no deductible for this coverage.Bear damage CoverageCoverage automatically applies to your belongings if Cover Code Capplies. Coverage must be shown on the Cover Page if other than CoverCode C. We will pay for damage to your belongings caused by bears.You must pay the deductible shown on the Cover Page.sewer Backup CoverageIf this coverage is shown on your Cover Page, we will pay for loss ordamage caused by backup, accidental discharge or escape or overflow ofwater or sewage from a sewer, sump, septic tank, or eaves trough ordownspout connected to your sewer.We do not cover loss or damage caused by:a) backup, discharge or escape or overflow of water or sewage frompublic sewers or drains outside your dwelling:b) seepage or continuous or repeated leakage.We do not cover sewer backup to your premises while your dwelling isvacant, even if we have given permission for vacancy.Identity Theft CoverageWe will pay for identity theft expenses up to the Amount of Protectionshown on your Cover Page for each occurrence. These expenses aredefined as the costs associated with the restoration of your identity. Thepolicy deductible will apply.The identity theft occurrence must take place during the policy term. Youare covered even if you do not discover the occurrence for up to a yearafter the policy term ends or after cancellation of the policy.“Identity theft” means the act of knowingly acquiring, transferring or usingkey pieces of a persons identity, without lawful authority, whichrepresents a violation of any federal, provincial, territorial or local law.“Identity theft occurrence” means any act or series of acts of identity theftby a person or group of persons.We will pay:a) the costs for obtaining up to two (2) credit reports or profiles,notarizing affidavits and/or similar documents for law enforcementagencies, credit agencies and financial institutions or similar creditgrantors;b) the cost to replace Canadian government issued identificationdocuments, passports, drivers license, and birth certificatesc) the reasonable cost of certified mail, telephone expenses, andfacsimile transmissions to businesses, law enforcement agencies,credit agencies and financial institutions or similar credit grantors;d) the fees associated with re-applying for loans due to the rejection ofyour original application as the lender(s) received incorrectinformation;11

e) up to 50% of the Amount of Protection shown on your Cover Page forthis coverage for wages or salary lost by you. This includes time offwork to complete fraud affidavits, or to meet with merchants, legalcounsel, law enforcement agencies, credit agencies, and financialinstitutions or similar credit grantors;f) the reasonable legal fees incurred for:(i) your defense for any claim(s) or any suit(s) made against you byany business or their collection agencies;(ii) the removal of any criminal or civil judgements wrongly enteredagainst you;(iii) any challenge to the accuracy of information in your credit report.(iv) recovering assets acquired by a third partyThis coverage does not apply to losses covered under the Credit, Debit,or Electronic Funds Transfer Cards, Cheques, and Counterfeit MoneyCoverage.Increased limits CoverageRefer to Property with Specific Amounts of Protectionsettling a ClaimYour Cover Page will show the amounts of protection on property insuredin Part 1.These amounts, along with the features we have said add to your amountof protection, are the most we will pay for your loss.We will only pay up to your financial interest in the property. Our paymentwill also depend on your share of the loss and other rules used to settleclaims. These are explained below.deductibleA deductible is used for losses covered in Part 1.A deductible means that you will have to bear the first part of your lossyourself. We will subtract this amount from your total loss, then we willpay for the rest of your loss. We will pay up to your total amount ofprotection. We will not pay if your loss is less than the deductible. Thedeductible is shown on your Cover Page.You may have different deductibles, depending on the type of propertyand the type of loss that we cover. When two or more items are lost ordamaged in one loss or several insured perils occur at the same timecontributing to the loss, we will use only one deductible. We will use thelargest single deductible of all that apply.replacement Cost and actual Cash valueWe will use one of two methods to find the amount of your loss:11) replacement Cost: is the cost to replace or repair property withmaterial of similar kind and quality at today’s prices.12) actual Cash value: This is the cost to replace or repair your propertyconsidering depreciation which includes such things as its age,condition, resale value, obsolescence, and normal life expectancy atthe time of loss. The value of property usually falls as it ages. Thus,actual cash value is normally lower than the cost to replace yourproperty at today’s prices.BelongingsWe will pay the cost of repair or the cost of new belongings (which ever isless) of similar kind, quality, and usefulness up to your total amount ofprotection for belongings. If you replace a belongings with one of lesserquality, we will pay only the amount you paid for the replacement. Youmust give us written proof of replacement or repair in order to getreplacement cost coverage. You may choose payment on an Actual CashValue basis initially. You may make a subsequent claim on aReplacement Cost basis but not later than 180 days after the date of loss12

or damage. We will not pay for increased costs due to unnecessarydelays on your part. We will keep any salvage or proceeds from salvage.We will only pay for the actual cash value for loss or damage to theseseven types of belongings:11) A belonging that is not in good, useable condition at the time of loss.12) A belonging not in current use by you at the time of loss that youstored away and for which you had no specific future use.13) A belonging of an age or condition that makes it out of date or nolonger useable for its original purpose.14) Art works, antiques, rare objects, and other items that cannot bereplaced.15) A belonging that has not been fixed or replaced after a loss.6) Boats, their equipment, accessories, outboard motors, and jetpropulsion personal watercraft, including unlicensed boat trailers, thatare more than ten years of age from the date they were originallypurchased as new.7) Spare automobile parts and accessories.sewer Backup (Actual Cash Value)In some locations, we will pay only the actual cash value of yourbelongings and all types of flooring in your basement, if the cause of lossis Sewer Backup. This will apply when shown on your Cover Page.Pairs and sets(Applies to Personal Property & Special Belongings)Pair: If there is a loss to half of a pair, we will pay for the complete pair.The undamaged piece becomes our property.set: For items that are part of a set of two or more pieces, we will onlypay for those parts that had the loss. For example, if your chair weredestroyed, we would pay for that damage. We would not pay for thematching sofa, unless it was damaged as well.obsolescenceWe will not pay for increased costs that result when you cannot fix orreplace your property because material or parts are unavailable,obsolete, or outmoded. We will pay only the cost that would have beenneeded if materials or parts were available. We will pay the last knowncost of materials or parts.Property with specific amounts of ProtectionFor certain types of property the amount we will pay is explained below.The deductible on your Cover Page applies.(1) unless otherwise specified for losses due to any insured perilwe will pay up to these amounts:a) $5,000 in all for books, tools, and instruments pertaining to abusiness, profession, trade, or occupation. We will pay up to$5,000 in all for computer hardware used in a business,profession, trade, or occupation. They are covered only at yourpremises. We do not cover other business or farm property, suchas samples, supplies, or goods held for sale.b) $5,000 in all for securities.c) $300 for bullion and $300 for money. Money includes gift cards,cash cards and gift certificates. We will pay for loss only whilethese items are in your dwelling, a place you are living for a shorttime (like a hotel room), a bank or trust company; but we willcover loss due to the peril of theft, where covered, at any locationexcept where such property is on exhibit or display, or any timesuch property is being held for sale by others.13

d) $2,500 in all for boats, their equipment, accessories, outboardmotors, and jet propulsion personal watercraft, includingunlicensed boat trailers that are not required to be licensed.Coverage applies anywhere in Canada or the continental U.S.A.for fire or lightning. Other perils you are insured for apply only atyour premises. We do not cover loss or damage causedby freezing.e) $5,000 in all for computer software. We will not pay the cost ofgathering or assembling information or data.f) $1,500 in all for household animals, birds, or fish. We will pay fortheir death, or destruction made necessary, within 30 days ofinjury caused by fire, lightning, or smoke.g) $7,500 in all for belongings of each unmarried student whileattending school and while residing away from your premises.h) $5,000 in all for any one lawnmower, garden tractor, snowblowerand their attachments and accessories.i) $7,500 in all for belongings of an unnamed person as definedunder “you” and “your” while residing away from your premises inan approved nursing or care home.j) $200 on any one item and a total amount of $2,500 in all forlosses, in any one policy term, for trading cards, comic books andsports memorabilia.k) $1,000 in all for spare automobile parts and accessories.l) $5,000 in all for cemetery property anywhere in Canada.(2) for losses due to Peril 12 — Theft and 14— ComprehensivePerils (excluding the listed Perils) we will pay up to these amounts:a) $10,000 in all for jewellery, watches and gems.b) $10,000 in all for furs, fur garments and garments trimmed with fur.c) $2,500 in all for manuscripts, stamps, and philatelic property(such as stamp collections).d) $500 in all for numismatic property (such as coin collections).e) $5,000 in all for silverware, silver-plated ware, goldware, goldplatedware, and pewter ware.f) $1,000 for each bicycle, tricycle, unicycle or electric assistedbicycle (up to 500 watts and not exceeding 32 km/h), includingaccessories and attached equipment.g) $500 in all for audio cassettes, compact discs and digital videodiscs while in or on motor vehicles, watercraft or aircraft.Increased limits CoverageIf your Cover Page shows that you have this coverage, we will pay thefollowing Increased Limits under “Property with specific amounts ofProtection”.Property – BelongingsBasic Limits Increased Limits1) for losses due to any insured peril:Books, tools, and instruments $5,000 $7,500pertaining to a business, profession,trade or occupationComputer hardware used in $5,000 $10,000a business, profession, tradeor occupationSecurities $5,000 $10,000Bullion and money $300 each $500 eachMoney also includes gift cards,cash cards and gift certificates14

Boats, their equipment, accessories, $2,500 $5,000outboard motors and jet propulsionpersonal watercraft, includingunlicensed boat trailersAnimals, Birds or fish $1,500 $2,500Belongings of unmarried students $7,500 $15,000Lawnmowers, garden tractors, $5,000 $10,000snowblowers and their accessoriesBelongings of any unnamed person $7,500 $15,000as defined under “you” and “your”in a care homeCemetery property $5,000 $10,0002) for losses due to Peril 12 - Theft and Comprehensive Perils(excluding the listed Perils):Jewellery, watches and gems $10,000 $15,000Furs, fur garments and garments $10,000 $15,000trimmed with furmanuscripts, stamps and $2,500 $5,000philatelic propertyCoin collections, numismatic property $500 $1,000Silverware, goldware and pewterware $5,000 NO LIMITBicycles, tricycles, unicycles, $1,000 $1,500electric assisted bicyclesand accessoriesAudio cassettes, compact discs $500 $1,000and digital video discs while in oron motor vehicles, watercraft or aircraftadded features of Your Part 1 CoverageArson conviction reward $1,000 $2,500Credit, debit or electronic funds, $1,000/loss $2,000/losstransfer cards, cheques and $2,500/term $5,000/termcounterfeit moneyFraud conviction reward $1,000 $2,500Lock replacement coverage $1,000 $2,000Outdoor trees, shrubs and plants $1,000 $1,500- a lawn or any one treeliabilityadded features of Your Part 2 coverageVoluntary Medical Payments $5,000 $7,500Voluntary Property Damage Payments $5,000 $7,500Property and Causes of loss We do not Coverunder any Pak we do not cover the following property or causes ofloss:a) buildings, outbuildings, structures, belongings and any other propertywhen designed, used, or intended for use in whole or in part for:(i) business or farming purposes, but we do give permission to usepersonal computers and related office equipment for farmingpurposes; or(ii) storage, housing, or upkeep of agricultural products, supplies,livestock, or animals other than household pets;except as provided under Property with specific amounts ofProtection. Incidental office use is permitted.b) property illegally acquired, used, kept, or imported.c) books of account, evidence of debt or title, and documents or otherevidence to establish ownership or the right or claim to a benefit orthing.15

d) property lawfully seized or confiscated. We will cover such property ifit is destroyed to prevent the spread of fire.e) motorized vehicles, trailers and aircraft. This includes such things ascars, trucks, skid steers, motorcycles, snowmobile, all terrainvehicles, dirt bikes, go-carts, dune buggies, hang gliders, ultralightsor other similar aircraft of any name. Nor do we cover any parts,furnishings or equipment of those things. For example, CD’s, stereoequipment, tires or antennae. However, we will cover motorizedwheel chairs, lawnmowers, snowblowers, garden equipment, golfcarts and electric assisted bicycles (up to 500 watts and notexceeding 32 km/h).An unlicensed boat trailer kept at your premises and spareautomobile parts and accessories are special cases. These areshown in “Property with Specific Amounts of Protection”.f) losses or increased costs of repair due to the operation of any by-law,ordinance or law regulating the zoning, demolition, repair, orconstruction of buildings and their related services.g) the cost of making good any faulty design, material, or workmanship.h) loss or damage caused by settling, expansion, contraction, moving,shifting, bulging, buckling, or cracking unless fire or explosion follows,then we will pay for the resulting damage.i) belongings, undergoing any process, including cleaning or beingworked on, where the damage results from such process. Resultingdamage to other property caused by an insured peril is covered.j) loss or damage caused by snowslide, earthquake, landslide, or anyearth movement. If any of those results in fire or explosion, we willpay for the resulting loss or damage.k) loss or damage to property on exhibit or display, or any time yourproperty is being held for sale by others.l) loss or damage not due to a sudden, unexpected event.m) loss or damage caused by a nuclear incident as defined in theNuclear Liability Act. Nor do we cover nuclear explosion orcontamination by radioactive material.n) loss or damage caused by war, invasion, act of a foreign enemy,declared or undeclared hostilities, civil war, rebellion, revolution,insurrection, or military power.o) loss or damage caused by criminal or wilful acts done by you or anyperson whose property is insured under this policy, including actsdone for you by someone else.p) loss or damage caused by acts you deliberately did or you failed todo.q) loss or damage resulting from a change in ownership of property thatis agreed to, even if that change was brought about by trickery orfraud.r) loss or damage resulting from contamination or pollution, or therelease, discharge or dispersal of contaminants or pollutants.s) loss or damage caused directly or indirectly, in whole or in part, byterrorism or by any activity or decision of a government agency orother entity to prevent, respond to or terminate terrorism regardless ofany other cause or event that contributes concurrently or in anysequence to the loss or damage, but you are still insured for ensuingloss or damage which results directly from fire or explosion.t) i) loss or damage to data; orii) loss or damage caused directly or indirectly by a data problem.However, if loss or damage caused by a data problem results inthe occurrence of further loss of or damage to property insuredthat is directly caused by fire, explosion, smoke or water damage,all as described under “Fire and Extended Coverage”, thisexclusion shall not apply to such resulting loss or damage.u) i) loss or damage caused directly or indirectly, in whole or in part,by any fungi or spores.16

ii)the cost or expense for any testing, monitoring, evaluating orassessing of fungi or spores.fungi means, but is not limited to, any form or type of mould, yeast,mushroom or mildew whether or not allergenic, pathogenic or toxigenic,and any substance, vapour or gas produced by, emitted from or arising outof any fungi or spore(s) or resultant mycotoxins, allergens or pathogens.spore(s) means, but is not limited to, any reproductive particle ormicroscopic fragment produced by, emitted from or arising out ofany fungi.v) loss or damage caused directly or indirectly by any illegal or unauthorizedactivity related to and including the growing, harvesting, manufacturing,processing, storing, sale or distribution of any drug or narcotic or thepossession of any substances or item of any kind which constitutes acriminal offense, to any dwellings, outbuildings or belongings containedtherein, whether or not you have knowledge of or are able or unable tocontrol such illegal activity. this includes any alteration of the premises tofacilitate such illegal activity.w) wind turbine systems including all related equipment and structuresmanufactured for a power generation exceeding 1 kw.general Conditions for Part 1The following general conditions apply to Part 1 of this policy:11) We will not cover people who were holding, storing, or transportingyour property for a fee at the time of loss.12) After we pay for your claim, we may find that someone else is legallyresponsible for your loss. We have the right to get our payment backfrom that person. If we ask, you must co-operate with us in any legalaction we take at our expense and through our lawyers. You mayrelease another person from their legal responsibility to you for lossor damage to your property. But you must tell us, the agreement mustbe in writing, and you must make the agreement before any loss ordamage takes place. These conditions do not apply to an agreementwith your condominium corporation.13) Any payment for a loss will not lower your total amount of protectionfor the rest of the policy term.14) The Statutory Conditions apply to Part 1 of this policy.15) When you have other insurance on property covered by Part 1 of thispolicy, we will pay only our share of the loss. We will do this even ifyour other insurance covers different perils than this policy. Our sharewill be in the same proportion that the amount of our protection bearsto the total of all your fire protection.16) You must tell us when your premises become vacant. Vacant refersto the circumstance where, regardless of the presence of belongings:— all occupants have moved out with no intentions of returning andno new occupant has taken up residence; or— no occupant has yet taken up residence; however, a newlyacquired condominium unit which is to be your principalresidence, will not be deemed vacant for the first 30 days fromthe date of title registration to you.— for a Condominium Unit, the premises will not be deemed to bevacant or subject to vacancy restrictions up to the first 90consecutive days following the death of the Insured or until theexpiry date of the policy, whichever comes first.You must also tell us when no one has been living in your premisesfor a full year. We feel that these premises are vacant too — even ifbelongings are still in place.We do not cover any loss or damage that happens after 30consecutive days of vacancy, when:17

— you do not tell us within 30 days of your premises becomingvacant.— the premises were tenant occupied.When you tell us within 30 days of your condominium unit becomingvacant, coverage will remain in effect until the end of the policy term.Any permission for vacancy that we allow in this condition does notchange any coverage restriction, due to vacancy, mentioned in otherparts of this policy.17) If your loss was due to a crime, you must report the loss to the policeor other authorities at once. This includes such crimes as theft,burglary, and vandalism.18) You must take all reasonable steps to protect your property.19) Condominium Unit Owners:i) We agree to waive our rights of claim against the CondominiumCorporation, its directors, property managers, agents, andemployees, except for arson, fraud, and vehicle impact.ii) Your right to recover from us is not affected by any release fromliability entered into by you prior to loss.10) If Cover Code C applies to a loss and it is more restrictive than CoverCode A or Cover Code B shown in this booklet, we will adjust yourclaim using the Cover Code most beneficial to you.11) If we adopt any revision which would broaden coverage under yourpolicy without any additional premium, during the policy period, thebroadened coverage will immediately apply to your policy.18

Part 2 — Personal liability (does not applywhen issued as part of an agro Pak Policy)definitions applicable to Part 2“Bodily Injury” means bodily injury, sickness or disease or resultingdeath.“Business” means a trade, profession, or occupation undertaken for thepurpose of financial gain.“jet Propulsion Personal Watercraft” means any motorized seavehicle, jet ski, or other motorized water device designed as a selfpropelledunit used on water. They can be designed to carry the operatoronly or to carry the operator and one or more passengers. Where we usethe term “personal watercraft unit”, it means a “jet propulsion personalwatercraft” as defined herein.“occurrence” means an accident, including continuous or repeatedexposure to conditions which results in “bodily injury” or “propertydamage” neither expected nor intended.“Premises” in this Part has the same meaning as in Part 1, it alsoincludes the following:— a place you live in for a short time, but that you do not own. Forexample, a hotel or motel room.— your own or your family’s burial site in Canada.— a non-business location in Canada which you become owner of ortake possession of during the policy term. You will be covered for upto 30 days after you take ownership or possession.“Property damage” means physical damage to, or destruction oftangible property, including the loss of use of this property.“residence employee” means a person employed by you to performduties in connection with the maintenance or use of the premises. Thisincludes persons who perform household or domestic services for you, orduties of a similar nature, at or away from your premises. This does notinclude persons while performing duties in connection with your business.Your residence employee will be covered while using farm machinery if itis not a usual part of their job.“We”, “us”, or “our” in this Part has the same meaning as in Part 1.“You” and “your” in this Part has the same meaning as in Part 1.In Part 2, “you” and “your” also means these additional people:— your residence employees;— workers during construction of your dwelling. The workers can bepaid or unpaid. We will not cover any independent contractor oremployees of the contractor;— any person or organization legally liable for damages caused bywatercraft (excluding jet propulsion personal watercraft) or animalsowned by you, and to which this insurance applies. This does notinclude anyone using or having custody of the watercraft (excludingjet propulsion personal watercraft) or animals in the course of anybusiness or without your permission;— any person who is insured by this policy at the time of your death andwho continues residing on the premises. We will cover them until theend of policy term or cancellation of the policy, whichever comes first;— your executors or administrators while they are tending to yourpremises. We will cover them until the end of the policy term orcancellation of the policy, whichever comes first.19

Personal liabilityYou must take reasonable care that you do not, or your property does notharm someone else or their property. If you do not, you may be negligent.People who are hurt or whose property is unintentionally damagedbecause of your negligence may have a legal right to be paid for theirdamages. A liability claim or action brought against you can come from asingle event or it can come from a continuous or repeated condition. Wewill treat this as if all damage was from a single occurrence.We will only pay compensatory damages for “bodily injury” or “propertydamage”. We will pay for claims arising out of your personal actionsanywhere in the world, including claims due to your actions whileengaged in volunteer work for a charitable non-profit organization. We willpay for claims due to the condition or use of your premises. We will onlypay claims where you are legally liable; however, there may be situationswhere we will pay and you are not legally liable. These are explainedunder “Added Features of Your Part 2 — Personal Liability Coverage”:“Voluntary Medical Payments” or “Voluntary Property DamagePayments”.We will not pay for “bodily injury” or “property damage” caused by orarising out of:a) the ownership of a rented dwelling, vacant dwelling, or a seasonaldwelling and its related property within the same resort area;b) the renting of a room or suite to others;c) the use of and ownership of a jet propulsion personal watercraft;d) business use of the premises;unless an additional premium has been paid and coverage extension isshown on your Cover Page.amount of ProtectionWe will pay up to the Amount of Protection shown on your Cover Page.The amount shown is the maximum amount we will pay for allcompensatory damages in respect of any one occurrence, regardless ofthe number of insureds against whom claim is made or action is brought.As explained later under “Defense Settlement — SupplementaryPayments”, we will pay for certain related costs too, which are in additionto the Amount of Protection.Bodily Injury and Property damageWe will pay for “bodily injury” or “property damage” to someone else ifyou are legally liable. This includes:a) claims due to an agreement you sign that accepts the liability ofanother as it relates to premises owned by you;b) claims if your residence employee is hurt while on the job. You willalso be covered if the employee is hurt using a motorized vehicle, allterrain vehicle, watercraft or jet propulsion personal watercraft foryou. We will not cover bodily injury arising out of the use or ownershipof any aircraft or air cushion vehicles;c) claims if other people are hurt while they are working for you duringconstruction on your premises, whether they are paid or unpaid;d) claims made against you by others for loss caused by anindependent contractor or employees of the contractor, but onlyduring construction at a location shown on your Cover Page;e) claims due to motorized wheelchairs, lawnmowers, snowblowers,garden equipment, or golf carts that you own or use. We also coveryou when someone else uses this equipment for you;f) claims due to watercraft you own. However, if they are powered bymore than 25 horsepower, an additional premium must be paid and20

coverage extension must be shown on your Cover Page for coverageto apply;g) claims due to your use of watercraft or jet propulsion personalwatercraft that are owned by someone else;h) claims due to your use of motorized vehicles that are owned bysomeone else. These vehicles must be intended for off-road use andthey must not have a license, nor be required by law to have one. Forexample, a go-cart at an amusement park. We will not cover claimsdue to your use of these vehicles in a race, speed test, or business.Tenants and rentersWe will pay compensatory damage to premises or to property containedwithin such premises that you rent or use but do not own. For example, arented dwelling, suite or a hotel or motel room.We will only pay if Part I coverages are shown on the Cover Page. Wewill not pay if the only reason you are legally liable is that you haveagreed to accept another’s liability. We will only pay if you would belegally liable without that agreement.We will only pay for ‘property damage’ caused by the perils insuredshown on the Cover Page and as described and limited in Part I.A ‘property damage’ deductible of $500 will apply to this coverage exceptfor any loss or damage caused by the perils listed under Cover Code A ofPart I.We may pay a part or all of this ‘property damage’ deductible amount toaffect settlement of a claim or action against you. You shall beresponsible to promptly reimburse us the amount or ‘property damage’deductible paid on your behalf.added features of Your Part 2 — Personal liabilityCoverageWe give you two added features as part of your Personal LiabilityCoverage. The amount we pay add to your total Amount of Protection. Nodeductibles apply.voluntary medical Payments. We will pay up to $5,000 for reasonablemedical and related expenses for each person injured in any oneoccurrence. The injury must be due to your actions, or the condition oruse of your premises. We will pay even if you are not legally liable.Medical expenses include surgical, dental, hospital, nursing, ambulanceservices and funeral expenses. We will only pay for reasonable medicalexpense incurred within one year of the date of the occurrence.We will not pay for expenses covered by any medical, surgical, dental,hospitalization or health plan that the injured person(s) may have, or beeligible for, nor for any costs covered under any other insurance ofworkers’ compensation law.We will pay for “bodily injury” to your residence employees, and to paid orunpaid workers who are injured during construction work on yourpremises. We will not pay for “bodily injury” to you or any other memberof your household.voluntary Property damage Payments. We will pay up to $5,000 fordirect damage to the property of someone else. The damage must bedue to your actions or the condition or use of your premises. We will payeven if you are not legally liable. This feature can cover deliberatedamage, but it must be caused by a person we cover who is 12 years ofage or less.We will not pay for:— claims resulting from the loss of use, disappearance or theft ofproperty;21

— loss or damage to property of your tenant;— loss or damage caused by your business activities.loss assessment for liability — Condominium unitownersWe will pay for your share of any special assessment made against youby the Condominium Corporation for Liability. In any one policy period,we will pay up to the amount of protection shown on your Cover Page.We will pay your share of this special assessment provided that:— the assessment is valid under the Condominium Corporation’sgoverning rules and by-laws; and— the assessment is made necessary by an occurrence which appliesto Part 2 of the policy.We will not pay more than $25,000 for that part of an assessment madeagainst you for the deductible of the Condominium Corporation’sinsurance policy.jet Propulsion Personal Watercraft liabilityCoverageYour Personal Liability will extend to cover “bodily injury” or “propertydamage” arising out of the ownership, maintenance, operation or use of apersonal watercraft unit, if your Cover Page shows that this extension ofcoverage applies. It will also show which option applies to you and towhich personal watercraft unit(s) it applies. We will automatically providecoverage for newly acquired units for a period of 30 days from the date ofacquisition. The Amount of Protection shown on your Cover Page for thisextension of coverage, is the maximum amount we will pay for claimsarising from the newly acquired unit.Passenger hazard option (applies only if shown onyour Cover Page)You may be legally liable for bodily injury to a passenger of a personalwatercraft unit. A passenger is anyone being carried upon, getting on to,or alighting from the unit.We will not pay for claims when the seating capacity as established bythe manufacturer, has been exceeded.Claims We Will not CoverWe will not cover:1) claims due to bodily injury to a passenger unless the Passengerhazard option is shown on your Cover Page;2) claims due to bodily injury or property damage caused by an operatorunder 16 years of age;3) claims due to bodily injury or property damage caused by an operatorunder the influence of intoxicating liquor or drugs;4) claims due to bodily injury or property damage caused by an operatorin any race or speed test;5) claims due to bodily injury or property damage resulting from anyillicit, prohibited trade or transportation;6) claims due to bodily injury or property damage resulting from carryingpassengers for a fee;7) claims due to bodily injury or property damage caused while thepersonal watercraft unit is rented or leased to others;8) claims due to bodily injury or property damage resulting from the22

operation of personal watercraft units in any area where their use andoperation is restricted or prohibited. This includes designated areaswithin a lake or at any park;9) claims due to bodily injury or property damage when a personalwatercraft unit is not operated in accordance with the CanadaShipping Act regulations governing age and horsepower restrictionsand operator competency requirements.Claims We Will not Cover. This applies to all coveragein Part 2 - Personal LiabilityWe will not cover:a) claims caused by pollution of the land, water or air. However, we willcover bodily injury or property damage caused by heat, smoke, orfumes from a hostile fire. Hostile fire means a fire that becomesuncontrollable or breaks out from where it was intended to be;b) claims caused by radioactive contamination or fallout;c) claims arising from war, invasion, act of a foreign enemy, hostilities,civil war, rebellion, revolution, insurrection or military power;d) claims caused by bodily injury to, or damage to property of personscovered by this policy, except those persons called “additionalpeople” under the definition of “You” and “Your”;e) claims arising out of any business, farming or professional activitiesor operations, however, we will cover claims due to your actions whileengaged in work for someone else in the following jobs: teacher,clerical worker, sales person, bill or money collector, messenger, orlifeguard;f) claims caused by bodily injury to a co-worker while you are on the job;g) claims due to any obligation under a disability benefits plan, workers’compensation, or employment insurance compensation law or anysimilar law;h) claims to property you own or owned, rent or rented or had in yourcare except as shown in Tenants and Renters;i) claims due to aircraft, air cushion vehicles, hang gliders, ultralights orother similar aircraft of any name, or aircraft landing areas that youown or use. We will not cover the use of them for you by others, orclaims caused by their use when you have entrusted them to others.Model aircraft are not part of this exclusion; however, we will onlycover them when kept or used for amusement purposes as part ofyour hobby;j) claims due to a motorized vehicle or a trailer that you own or use.This includes cars, vans, trucks, motorcycles, motorized snowvehicles, dune buggies and the like, and any vehicles required to belicensed. We will not cover the use of them for you by others orclaims due to their use when you have entrusted them to others.However, as an exception to this, we will cover claims which arise outof the use of golf carts, all terrain vehicles, dirt bikes, electric assistedbicycles and motorized vehicles use by your residence employeeswhile they are working for you;k) claims caused by the use and ownership of an all terrain vehicle;l) claims caused by the use and/or ownership of a skid steer away fromyour premises;m) claims caused by the use and ownership of a jet propulsion personalwatercraft, unless coverage extension is shown on your Cover Page;n) claims caused by watercraft:— used in a race or speed test;— used for carrying passengers for a fee;— used for business purposes;— used or operated by anyone under the influence of intoxicatingliquor or drugs;— rented or leased to others.23

o) claims due to bodily injury or property damage when watercraft is notoperated in accordance with the Canada Shipping Act regulationsgoverning age and horsepower restrictions and operator competencyrequirements;p) claims due to bodily injury or property damage deliberately caused byyou or for you by someone else;q) claims caused by any intentional, illegal or criminal act or failure toact by:(i) any person insured by this policy; or(ii) any other person at the direction of any person insured by thispolicy.r) claims due to bodily injury resulting from transmission of anycommunicable disease;s) claims caused by sexual, physical, psychological or emotional abuse,molestation or harassment, including corporal punishment by, at thedirection of, or with the knowledge of any person insured by thispolicy, or failure of any person insured by this policy to take steps toprevent sexual, physical, psychological or emotional abuse,molestation or harassment or corporal punishment;t) claims arising directly or indirectly, in whole or in part, out of terrorismor out of any activity or decision of a government agency or otherentity to prevent, respond to or terminate terrorism. This exclusionapplies regardless of any other contributing or aggravating cause orevent that contributes concurrently or in any sequence to the claim;u) claims due to:(i) the erasure, destruction, corruption, misappropriation,misinterpretation of data; or erroneously creating, amending,entering, deleting or using data; including any loss of use arisingfrom any of these actions or events; or(ii) the distribution or display of data, by means of an InternetWebsite, the Internet, an intranet, extranet, or similar device ofsystem designed or intended for electronic communication ofdata;v) claims due to bodily injury or property damage arising directly orindirectly from any fungi or spores. We will not cover the cost orexpense for any testing, monitoring, evaluating or assessing of fungior spores.fungi means, but is not limited to, any form or type of mould, yeast,mushroom or mildew whether or not allergenic, pathogenic or toxigenicand any substance, vapour or gas produced by, emitted from or arisingout of any fungi or spore(s) or resultant mycotoxins, allergens, orpathogens.spore(s) means, but is not limited to, any reproductive particle ormicroscopic fragment produced by, emitted from or arising out of anyfungi.w) claims due to bodily injury or property damage caused directly orindirectly by an animal you own or for which you are responsible andwhich, prior to the occurrence which gives rise to the claim, has beendeclared under any law, by-law or municipal ordinance to be adangerous animal.If You have a ClaimWhat you must do:a) You must promptly give us notice in writing when an occurrencetakes place.The notice must include:(i) the date, time, place and circumstances of the occurrence;(ii) names and addresses of witnesses and potential claimants.24

) You must not admit that you are legally liable. You may not know allof the facts. This means that you must not pay or offer to pay forbodily injury or property damage. It could be taken as an admissionthat you were legally liable.c) You must follow all conditions of the policy that deal with your claim.d) You must give us any letters or papers you receive from the people orthe representatives of the people making the claim. You must do thisas soon as you get them.e) You must co-operate fully with us while we handle your claim.f) You must co-operate fully in the legal matters we are handling foryou. You must not interfere in any legal action or discussion.What we will do:If a claim is made against you for which you are insured, we will defendyou even if the claim is groundless, false or fraudulent. We reserve theright to select legal counsel, investigate, negotiate and settle any claim ifwe decide this is appropriate. We will only pay for the legal counsel weselect. We will try to settle the claim out of court if we feel that is the bestthing to do.defense settlement — supplementary Payments:We will:a) pay up to $100 a day for your actual loss of wages or salary when weask you to do something for us. For example, if we ask you to appearin court;b) pay other reasonable expenses and court costs charged against you,including expenses which you have incurred for emergency medicalor surgical treatment to others following an occurrence insured by thispolicy;c) buy any appeal bonds;d) buy any bonds needed to release property held by the court becauseof a law suit. However, the total face value of these bonds cannot bemore than your applicable Amount of Protection;e) pay the interest that a court charges on the part of the final judgementthat we are paying.how We settle a ClaimWe will not pay until you have fully complied with all the terms of thiscoverage, nor until the amount of your obligation to pay has been finallydetermined, either by a judgement against you or by an agreement thathas our consent.If we feel that you have done nothing wrong, we may refuse to pay aclaim. This does not mean that you are not covered. It means we feel thatyou are not legally liable. If after we deny a claim on your behalf a courtfinds that you are legally liable, you are covered.general Conditions for Part 21) The “bodily injury” or “property damage” must take place during thepolicy term.2) There are only two ways to cancel you Personal Liability coveragebefore the end of your policy term:a) You must tell us that you wish to cancel and when you wish yourcoverage to end; orb) We must tell you in writing that we wish to cancel. We will do thisby registered mail or in person. If our notice comes to you byregistered mail, your coverage will end 15 days after your postoffice gets the letter. When we give you the notice in person, yourcoverage will end 5 days later.25

We will refund the premium for the time between the cancellationdate and the end of the policy term.3) If you take legal action against us, you must do so within 2 years ofthe date on which you had cause to take such action.4) If you have other liability insurance, we will only pay our share of theclaim. Our share will be in the same proportion that the amount of ourcoverage bears to the total of all your coverages.26

Statutory ConditionsIn respect of Part 2 – Personal Liability, onlyStatutory Conditions 1, 3, 4, 5 and 15 apply.Otherwise all of the Statutory Conditions apply withrespect to all perils insured by this policy.In the following “you”, the name shown on the CoverPage, are called the “Insured”. “We” are called the“Insurer”.misrepresentation11. If any person applying for insurance falsely describes the property tothe prejudice of the Insurer, or misrepresents or fraudulently omits tocommunicate any circumstance which is material to be made knownto the Insurer in order to enable it to judge of the risk to beundertaken, the contract shall be void as to any property in relation towhich the misrepresentation or omission is material.Property of others12. Unless otherwise specifically stated in the contract, the Insurer is notliable for loss or damage to property owned by any person other thanthe Insured, unless the interest of the Insured therein is stated in thecontract.Change of Interest13. The Insurer shall be liable for loss or damage occurring after anauthorized assignment under the Bankruptcy act or change of titleby succession, by operation of law, or by death.material Change14. Any change material to the risk and within the control and knowledgeof the Insured shall void the contract as to the part affected thereby,unless the change is promptly notified in writing to the Insurer or itslocal agent; and the Insurer when so notified may return the unearnedportion, if any, of the premium paid and cancel the contract, or maynotify the Insured in writing that, if he desires the contract to continuein force, he must, within fifteen days of the receipt of the notice, payto the Insurer an additional premium; and in default of such paymentthe contract shall no longer be in force and the Insurer shall return theunearned portion, if any, of the premium paid.Termination of Contract15. (1) This contract may be terminated:(a) by the Insurer giving to the Insured fifteen days’ notice oftermination by registered mail, or five days’ written notice oftermination personally delivered;(b) by the Insured at any time on request.(2) Where this contract is terminated by the Insurer:(a) the Insurer shall refund the excess premium actually paid bythe Insured over the pro rata premium for the expired time,but in no event, shall the pro rata premium for the expiredtime be deemed to be less than any minimum retainedpremium specified; and(b) the refund shall accompany the notice unless the premium issubject to adjustment or determination as to amount, in whichcase the refund shall be made as soon as practicable.(3) Where this contract is terminated by the Insured, the Insurer shallrefund, as soon as practicable the excess of premium actually27

paid by the Insured over the short rate premium for the expiredtime, but in no event shall the short rate premium for the expiredtime be deemed to be less than any minimum retained premiumspecified.(4) The refund may be made by money, postal or express companymoney order, or by cheque payable at par.(5) The fifteen days mentioned in clause (1) (a) of this conditioncommences to run on the day following the receipt of theregistered letter at the post office to which it is addressed.requirements after loss16. (1) Upon the occurrence of any loss of or damage to the insuredproperty, the Insured shall, if such loss or damage is covered bythe contract, in addition to observing the requirements ofconditions 9, 10 and 11:(a) forthwith give notice thereof in writing to the Insurer;(b) deliver as soon as practicable to the Insurer a proof of lossverified by a statutory declaration:(i)giving a complete inventory of the destroyed anddamaged property and showing in detail quantities, cost,actual cash value and particulars of amount of lossclaimed;(ii) stating when and how the loss occurred, and if caused byfire or explosion due to ignition, how the fire or explosionoriginated, so far as the Insured knows or believes;(iii) stating that the loss did not occur through any wilful act orneglect or the procurement, means or connivance of theInsured;(iv) showing the amount of other insurances and the namesof other Insurers;(v) showing the interest of the Insured and of all others in theproperty with particulars of all liens, encumbrances andother charges upon the property;(vi) showing any changes in title, use, occupation, location,possession or exposures of the property since the issueof the contract;(vii)showing the place where the property insured was at thetime of loss;(c) if required give a complete inventory of undamaged propertyand showing in detail quantities, cost, actual cash value;(d) if required and if practicable, produce books of account,warehouse receipts and stock lists, and furnish invoices andother vouchers verified by statutory declaration, and furnish acopy of the written portion of any other contract.(2) The evidence furnished under clauses (1) (c) and (d) of thiscondition shall not be considered proofs of loss within themeaning of conditions 12 and 13.fraud17. Any fraud or wilfully false statement in a statutory declaration inrelation to any of the above particulars, shall vitiate the claim of theperson making the declaration.Who may give notice and Proof18. Notice of loss may be given, and proof of loss may be made, by theagent of the Insured named in the contract in case of absence orinability of the Insured to give the notice or make the proof, andabsence or inability being satisfactorily accounted for, or in the likecase, or if the Insured refuses to do so, by a person to whom any partof the insurance money is payable.salvage19. (1) The Insured, in the event of any loss or damage to any propertyinsured under the contract, shall take all reasonable steps toprevent further damage to any such property so damaged and to28

prevent damage to other property insured hereunder including, ifnecessary, its removal to prevent damage or further damagethereto.(2) The Insurer shall contribute pro rata towards any reasonable andproper expenses in connection with steps taken by the Insuredand required under sub-paragraph (1) of this condition accordingto the respective interests of the parties.entry, Control, abandonment10. After any loss or damage to insured property, the Insurer shall havean immediate right of access and entry by accredited agentssufficient to enable them to survey and examine the property, and tomake an estimate of the loss or damage, and, after the Insured hassecured the property, a further right of access and entry sufficient toenable them to make appraisement or particular estimate of the lossor damage, but the Insurer shall not be entitled to the control orpossession of the insured property, and without the consent of theInsurer there can be no abandonment to it of insured property.appraisal11. In the event of disagreement as to the value of the property insured,the property saved or the amount of the loss, those questions shall bedetermined by appraisal as provided under The Insurance Act beforethere can be any recovery under this contract whether the right torecover on the contract is disputed or not, and independently of allother questions. There shall be no right to an appraisal until a specificdemand therefore is made in writing and until after proof of loss hasbeen delivered.When loss Payable12. The loss shall be payable within sixty days after completion of theproof of loss, unless the contract provides for a shorter period.replacement13. (1) The Insurer, instead of making payment, may repair, rebuild, orreplace the property damaged or lost, giving written notice of itsintention so to do within thirty days after receipt of the proofs ofloss.(2) In that event the Insurer shall commence to so repair, rebuild, orreplace the property within forty-five days after receipt of theproofs of loss, and shall thereafter proceed with all due diligenceto the completion thereof.action14. Every action or proceeding against the Insurer for the recovery of anyclaim under or by virtue of this contract shall be absolutely barredunless commenced within two years after the loss or damage occurs.notice15. Any written notice to the Insurer may be delivered at, or sent byregistered mail to, the chief agency or head office of the Insurer in theprovince. Written notice may be given to the Insured named in thiscontract by letter personally delivered to him or by registered mailaddressed to him at his latest post office address as notified to theInsurer. In this condition, the expression “registered” meansregistered in or outside Canada.29

PRIVACY: Our CommitmentThank you for choosing SGI CANADA.At SGI CANADA we value our customers and take your privacyseriously. During the course of business with you, our brokers or wemay ask for personal information so we can serve you better. You canrest assured that we'll protect and respect your personal information andprivacy – from the time we first collect the information until it is disposedof. After all, SGI CANADA's business is built on your trust.Our commitment to you is to collect only the information we need toconduct your business and to adhere to industry best practices inhandling and protecting your personal information.Protecting your privacy is important to us at SGI CANADA.If you want to:• Access your personal information or have your information corrected• Change your consent with respect to how we collect, use or discloseyour personal information• File a complaint about our privacy policies or the manner in whichwe've handled your personal information• Inquire about any other privacy questions or concernsPlease contact:SGI CANADA Chief Privacy Officer2260 – 11th Ave.Regina, Sask. S4P 0J9Telephone: 1-800-667-8015E-mail: privacyofficer@sgi.sk.caIf you're not satisfied with the outcome of an inquiry orcomplaint handled by SGI CANADA's Chief PrivacyOfficer, you may address your concerns to:Office of the Privacy Commissioner of Canada112 Kent St.Place de VilleTower B, Third FloorOttawa, Ontario, K1A 1H3www.privcom.gc.caPrivacy BrochurePlease visit our web site at www.sgicanada.ca/mb

6065 ETC-21 01/2012 www.sgicanada.ca