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If a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage. caused by an occurrence to which this coverage applies we will 1. pay up to our limit of liability for the damages for which the in.ured is legally liable; and 2. provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when the amount we pay for damages resulting from the occurrence equals our limit of liability. 7. The policy defines the term "property damage" as follows: 6. .property damage" means physical injury to destruction of, or loss of use of tangible property. 8. The policy defines the term "occurrence" as follows: 5. .occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, whi~h results, during the policy period, in: a. bodily injury; or b. property damage. 9. The policy does not provide coverage, for reasons including but not limited to as follows: (a) The allegations in the Boyles' Complaint do not constitute an "occurrence" and do not constitute and "accident" pursuant to the definitions of the policy; (b) The Boyles' Complaint does not allege damages to tangible property; (c) Damages recovered by this action do not constitute "property damage" as defined by the policy; 2 ExNblt A Homeowners 2 Broad Form Ed. 4-84 @ AGREEMENT We will provide the ,nsurance described ,n this pOlicy ,n return for the premium and compliance With all applicable provIsions of thiS policy DEFINITIONS In this pOlicy. "you' and "your" reler to the'named 'nsured" shown in the Oeclarat:ons and the spouse il a resident of the same household "We." "us' and "our" refer to the Company providing this ,nsurance. In addition. certain words and phrases are delined as lollows: 1. "bodily Injury" means bodily harm. Sickness or disease. including required care. loss of serVices and death that results. 2. "buslneu" includes trade. profeSSion or oc- cupation 3. "Insured" means you and residents 01 your household who are: a your relatives: or b. other persons under the age of 2 t and in the care 0 f any person named above. Under Section II. "Insured" also means: c. with respect to animals or watercraft to which thiS policy applies. any person or organization legally responsible lor these animals or watercraft which are owned by you or any person included in 33 or 3b above. A person or organization using or having custody 01 these animals or watercraft in the course 01 any business or without consent of the owner is not an Insured; d with respect to any vehicle to which thiS policy applies: (1) persons while engaged in your em- ploy or that of any person included in 3a or 3b above: or (2) other persons using the vehicle on an Insured location with your consent 4. "Insured location" means: a the r.sid.nc. premises; b. the part of other premises. other struc- tures and grounds used by ycu as a resl- denc e and: (1) which is shown ,n the Declarations: or (2) which is acquired by you dUring the policy period for your use as a reSI- dence: c. any premises used by YOl:. in connection With a premises in 4a or 4b above: d. any part 0 I a premises: (1) not owned by an insured; and (2) where an Insur.d is temporarlly re- siding; e. vacant land. other than farm land. owned by or rented to an Insur.d; f. land owned by or rented to an Insured on which a one or two family dwelling is be- ing bullt as a residence for an Insured; 9- individual or family cemetery plots or burial vaults 0 f an insured; or h. any part 01 a premises occasionally rented to an insured for other than bual- ness use. 5. .. occurrenc." means an accident. including exposure to conditions. which results, during the policy period. in: a bodily Injury; or b. prop.rty damag.. 6. "property damage"means physical injury to, destruction of, or loss of use of tangible property. 7. "resid.ne. employ.... means: a. an employee of an ir.sur.d whose duti.s are related to the maintenance or use of the residence premises, including household or domestic services; or Page 1 of 16 COPYright. Insurance ServIces 01 fice. Inc.. 1984 HO-2 Ed 4-64 b. one who perlorms slm,lar dut,eS tIS.- where not related to the business 01 in insured. 8: "residence premises" means: a the one famoly dwelling. other StTUCllJrts. and groundS; or b. that part of any other bUilding; whera ~ou res,de .Ind which '5 shown .IS the "reSlde"ce prem,ses" ,n the Declarations. "ReSidence premises" also means a two family dwelling where you reside ,n at least one of the lamlly unots M1d which '5 shown as the "residence premises" ,n the Decl.ln- tlons. SECTION I - PROPERTY COVERAGES COVERAGE A - Dwelling We cover 1. the dwelling on the residence premises shown ,n the Declarations. ,nciuoing struc- tures attached to the dwelling; and 2. matertals and supplies located on or next to the residence premises used to construct. alter or repair the dwelling or other structurss on the residence premises. ThiS coverage does not apply to land. including land on which the dwelling is located COVERAGE B - Other StrUctures We cover other structures on the residence premises set apart Irom the dwelling by clear space. ThiS includes structures connected to the dwelling by only a fence. utllit', line. or Similar connection. ThiS coverage does not apply to land. including land on which the other structures are located We do not cover other structures: 1. used in whole or ,n part lor business; or 2. rented or held for rental to any person not a tenant of the dwelling, unless used solely as a prtvate garage. The limit of liability for thiS coverage will not be more than 10'-. 01 the limit of liability that applies to Coverage A. Use of thiS coverage does not re- duce the Coverage A limit of liability. COVERAGE C - Personal Property We cover personal property owned or used by an insured while It '5 anywhere in the world At your request. we will cover personal property owned by' 1. others whole the property is on the part of the residence premises occupied by an insured; 2. a guest or a residence employee, while the property is in any reSidence occupied by .In insured. Our limit 01 liability lor personal property usually iocated at an insured's res,dence. other than th... residence premises. '5 1 O'!'o of the limit of liab,lity for Cover.lge C or s 1 000. wh,chever 's greater. Personal property ,n .I newly acqUired prinCipal res,dence '5 not subject to thiS limltat,on for the 30 days from the time you beg,n to move the property there. Special Limits of Liability. These limits do not ,ncrease the Coverage C limit of liability. The spe" Clallim't for each numbered category below IS the total limit for each loss for all property ,n that category. 1. 5200 0" money. bank notes. bullion. gold oth- er than goldware. s,lver other than solverware. plat,num. co,ns and medals. 2. s 1000 on securtt,es. accounts. deeds. evi- dences 01 debt. letters of credit. notes other than bank notes. manuscrtpts. passports. tickets and stamps. 3. 51000 on watercraft. incJuding their tr:'lers, furnlsh'ngs. equ,pment and outboard motor.. 4. 51000 on trailers not used with watercraft 5. 51000 on grave markers. e. s 1 000 for loss by theft 01 jewelry. watches. lurs. precIous and semi-preCIOUS stones. 7. s2000 lor loss by thelt of firearms. 8. 52500 lor loss by thelt of silverware. ,ilv.- plated ware. goldware. gold-plated 'III". and pewterware. ThiS includes f1atw.... hollowware. tea sets. trays and trophies mil"" of or including sliver. gold or pewl!)r. 9. 52500 on property. on the residenco ~fI'''''' Ises, used at any bme or in any manncr foe ill.y business purpose. "-'~.::,/.~ 10. S250 on property. away from the resi~i.;~ premises, used at any bme or in any m""""':i'it for any business purpose. ,c", HO-2 Ed 4-84 Copyright. Insurance Serv'ces Office. Inc.. 1984 Page 2 of 16 Property Not Covered. We do not cover' 1. Mt,cles separately described ~d specifically ,nsured ,n th,s or other 'nsurance. 2. M1,m.ls. bords. or lish: 3. motor veh'clu or all other motorized land conveyances. This Includes: a. equipment and accessories; or b. any dev'ce or ,nstrument lor the trans- mitting. recording, receiving or repro- duction of sound or pictures wh,Ch IS op- erated by power Irom the electrical system of motor vehicles or all other motOrized land conveyances. ,ncluding: (11 accessories or antennas; or (2) tapes. wores. records. discs or other media for use With any such deVice or instrument; while ,n or upon the veh,cle or convey- M1ce. We do cover vehicles or conveyances not subJect to motor vehicle registration which are; a used to service an insured's residence; or b. deSigned lor aSSlst'ng the handicapped; 4. aircraft and parts. Aorcraft means any contri- vance used or des'gned for flight. except model or hobby aorcraft not used or des'gned to carry people or cargo; !S. property 01 roomers. boarders and other tenants. except property of roomers and boarders related to an Insured; 6. property in an apartment regularly rented or held for rental to others by an Insured; 7. property rented or held lor rental to others off the residence premises; 8. a books 01 account. drawings or other pa- per records; or b. electronic data processing tapes. wires. records. discs or other software media; containing business data But. we do cover the cost 01 blank or unexposed records and media; 9. credit cards or fund transfer cards except as provided in Addit,onal Coverages 6. COVERAGE D . Loss Of Use The limit of liability lor Coverage D is the totallimil for all the coverages that follow. 1. If a lOSS covered under thiS Section makes that part of the residence premises where you res, de not f,t to live ,n. we cover. at your cho,ce. either of the follow'ng. However. If the residence premises '5 not your prinCipal place of residence. we w,ll not prov'de the option under paragraph b. below a. Additional Living Expense, meaning any necessary Increase ,n hv,ng expenses ,no' curred by you so that your household can ma,ntaln ItS normal standard of Iiv,ng; or b. Fair Rental Value. meaning the fair rental value of that part 01 the residence prem- ises where you reSide less any expenses that do not cont,nue whole the prem,ses is not fit to live ,n: Payment under a or b. will be for the shortest time reqUired to repair or replace the damage or. II you permanently relocate. the shortest time reqUired for your household to settle elsewhere. 2. If a loss covered under thiS Section makes that part of the residence premises rented to others or held lor rental by you not fit to live in. we cover the, Fair Rental Value. meaning the fa,r rental value 01 that part of the residence prem- Ises rented to others or held for rental by you less any expenses do not cont,nue while the prem,ses is not fit to live in: Payment will be for the shortest time required to repair or replace that part of the premises rented or held for rental. 3. If a civol authority proh,bits you Irom use of thf.'residence premises as a result of direct damage to neighbOring premises by a Perolln- sured Against in this policy. we cover the Ad- dit,onal Living Expense or Fair Rental Value 1055 as provided under 1 and 2 above lor no more than two weeks. The periods of time under 1. 2. and 3 above are not limited by expiration of this policy. We do not cover loss or expense due to cancella- tion of a lease or agreement ADDITIONAL COVERAGES 1. Debris Removal. We will pay your rea"!)'," able expense for the removal of; a debris of covered property if a Peril In- sured Aga,nst causes the loss; or b. ash. dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a build- ing. <. Page 3 of 16 Copyright. Insurance Serv,ces Office. Inc.. 1984 HO-2 Ed 4-84 This expense IS Included ,n the limit of liability that applies to the damaged property II thll amount to be paid for the actual damage to the prop"rty plus the debriS removal expen1e 's more than the limit 01 liab,lIty for the damaged property. an additional 5r. of that IIm,t of liability's available for debns removal expense. We WIll also pay your reasonable expense for the removal of lallen trees Irom the rui- dence premises ,f: a. coverage IS not aflordeo:l under Addition- al Coverages 3. Trees. Shrubs and Other Plants for the peril caus,ng the loss; or b. the tree 's not covered by thiS policy; provided the tree damages covered property and a Penl Insured Aga,nst under Coverage C causes the tree to lall. Our limit of liability lor this coverage Will not be more than s500 in the aggregate lor anyone loss. 2. Reasonable Repairs. We w,lI pay the reason- able cost ,ncurred by you lor necessary re- paors made solely to protect covered prop- erty Irom luther damage If a Pen' Insured Against causes the 1055. ThIS coverage does not increase the limit of liability that applies to the property being repaored. 3. Trees, Shrubs and Other Plants. We cover trees. shrubs. plants or lawns. on the resi- dence premises. lor loss caused by the fol- lowing Perils Insured Against Fire or lightning. Explosion. Riot or civil commotion. Aircraft. Vehicles not owned or operated by a resident 01 the residence premises, Vandalism or malicious mischief or Theft The limit of liability lor this coverage WIll not be more than 5r. of the limit of liability that applies to the dwelling. or more than 9500 for anyone tree. shrub or plant We do not cover property grown for business purposes. This coverage is additional insurance. 4. Fire Department Service Charge. We woll pay up to 5500 for your Iiab,lity assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered proporty from a Peril Insured Against We do not cover fire department service charged il the prop- eny is located w,lhin the lim,ts of the city. municipality or protection distr'ct lurnishing the fire department response. This coverage is additional insurance. No de- ductible applies to this coverage. 5. Property Removed. We ,nsure covered property against dorect loss Irom any cause wh,le be,ng removed Irom a prem,ses endan- gered by a Penl Insured Aga,nst and lor no more than 30 days while removed. ThiS cov- era\le does not change the limit of liability that applies to the property be,ng removed. 6. Credit Card, Fund Transfer Card, Forgery and Counterfeit Money. We w,lI pay up to 5500 for; a. the legal obligation 0 I an Insured to pay because of the theft or unauthorized use of credit cards issued to or registered ,n an insured's name; b. loss resulting from thelt or unauthonzed use of a fund transfer card used for de- posit. Withdrawal or transfer of lunds. issued to or registered in an Insured's name; c. loss to an insured caused by lorgery or alteration 01 any check or negotiable in- strument; and d. loss to an insured through acceptance in good faith of counterfeit United States or Canadian paper currency. We do not cover use of a credit card or fund transfer card: a by a reSident of your household: b. by a person who has been entrusted With e,ther type of card; or c. if an Insured has not completed with all and conditions under which the cards are issued All loss resulting from a series 0 f acts com- mitted by anyone person or in which anyone person is concerned or implicated is consid- ered to be one loss. We do not cover loss arising out of business use or dishonesty of an Insured. This coverage is additional insurance. No de- ductible applies to this coverage. Defense: a We may investigate and settle any claim or suit that we decide is appropriato. 0t II' duty to defend a claim or suit ends v,1 ,,-,; the amount we pay for the loss equals ('\II limit of liability. b. If a suit is brought against an Insured for liability under the Credit Card or Fund Transfer Card coverage. we will provide a defense at our expense by counsel of our choice. HO-2 Ed. 4-84 Copyright. Insurance Services Office. Inc.. 1984 Page 4 of 16 c. We have the option to delend at our ex- pense an Insured or an Insured's bank against any SUit lor the enforcement of payment under the Forgery coverage. 7. Loss Assessment. We wlll pay up to s 1 000 lor your share of any loss assessment charged dUring the policy period aga'nst you by a corporation or aSSOCiation 01 property owners. Th,s only applies when the assess- ment IS made as a result of each direct loss to the property. owned by all members collectively. caused by a Peril Insured Aga'nst under Coverage A - Dwelling. other than earthquake or land shock waves or tremors before. during or after a volcanoc eruption. ThiS coverage applies only to loss assess- ments charged aga'nst you as owner or tenant of the residence premises. We do not cover loss assessments charged against you or a corporation or assoclat'on of property owners by any government body. 8. Collapse. We insure lor direct physical loss to covered property involving collapse 01 a building or any part 0 I a building caused only by one or more of the lollowinq. a. Perils Insured Against in Coverage C - Personal Property. These perils apply to covered bu"ding and personal property for loss insured by thiS additional cov- erage; b. hidden decay; c. hidden 'nsect or verm,n damage; d. weight of contents. equ'pment. animals or people; e. weight of ra,n wh,ch collects on a roo I; or f. use of delectlve material or methods ,n construction. remodeling or renovation ,I the collapse occurs dUring the course of the construction. remodeling or renova- tiOn. Loss to an awning, lence. patio. pavement. sw,mmlng pool. underground p'pe. Ilue. dra,n. cesspc.ol. sept'c tank. loundatlon. retainong wall. bulkhead. p,er. wharf or dock is not ,n- cluded under items b. c. d. e. and f unless the loss is a direct result of the collapse of a bUilding. Collapse does not include settling. cracking. shrinking, bulg'ng or expansion. This coverage does not increase the limit 0 f liability applying to the damaged covered property. SECTION I - PERILS INSURED AGAINST We insure lor direct physical loss to the property described in Coverages A. B. and C caused by a peril listed below unless the 1055 is excluded in Section I - Exclusions. 1. Fire or lightning. 2. Windstorm or hail. This peril does not include 1055 to the inside of a building or the property cor,ta,ned in building caused by rain. snow. sleet. sand or dust unless the direct force of wind or hail damages the building causing an openong in a roof or wall and the rain, snow. sleet. sand or dust enters through this openong. This peril includes loss to watercraft and their trailers, furnishings. equipment. and outboard motors. only while inside a fully enclosed building. 3. Explosion. 4. Riot or civil commotion. 5. Aircraft, ,ncluding self-propelled missiles and spacecraft 6. Vehicles. This peril does not include loss to a fen"... driveway or walk caused by a vehicle own, . or operated by a resident of the residence premises. 7. Smoke. meaning sudden and accidental dam- age Irom smoke. This peril does not include loss caused by smoke from agricultural smudging or indus- trial operations. 8. Vandalism or malicious mischief. This peril does not include loss to property on the residence premises if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant <.. Page 5 of 16 Copyright. Insurance Services Office. Inc.. 1984 HO-2 Ed 4-84 9. Theft. 'ncluding attempted theft and loss of property from a known place when ,t IS likely that the proper!'1 has been stolen. ThiS peril does not Include loss caused bv thelt a committed by an insured: b. ,n or to a dwell'ng under construct,on. or of materials and supplies lor use In the construction um,l the dwelling 's linoshed and occup18d: or c. Irom that part 01 a residence premises rented by an Insured to other than an In- sured. ThiS peril does not Include loss caused by theft that occurs off the residence premises 01: a property while at any other reSidence owned by. rented to. or occup,ed by an Insured, except while an Insured is tem- porar,ly liVing there. Property of a student who is an Insured is covered whole at a reSidence away from home ,I the student has been there at any time dUring the 45 days Immediately belore the loss; b. watercraft, and their furnlSh,ngs. equ,p- ment and outboard motors; or C. tra,lers and campers. 10. Breakage of glass or safety glazing mate- rial which is part of a building, storm door or storm w,ndow. ThIS peril does not include loss on the resi- dence premises if the dwelling has been va- cant for more than 30 consecutive days im- mediately before the loss. A dwelling being constructed IS not considered vacant 11. Failing objects. This perol does not include loss to the ,nslde of a building or property contained in the buolding unless the roof or an outside wall of the buolding is first damaged by a falling ob- Ject Damage to the falling ob lect Itsel f '5 not included 12. Weight of Ice, snow or sleet which causes damage to a building or property contained ,n the bUilding. This peril does not include loss to an awn,ng. fence. patio. pavement. SWlmm,ng pool. loundation. retaining wall. bulkhead. pier. wharf. or dock. 13. Accidental discharge or overflow of water or steam from w,thln a plumbing. heat'ng. ,lOr conditioning or automatic lire protective sprinkler system or from wlth,n a household appliance. We also pay for tearing out and re- plac'ng any part of the bUilding on the resi- dence premises necusary to repair the sys- tem or appliance from which the water or steam escaped ThiS perl' does not Include loss: a to a bUilding caused by constant or re- peated seepage or leakage o'Jer a period of weeks. months or years. b. on the residence premises, ,f the dwell- Ing has has been vacant for more than 30 consecutive days ,mmediately belore the loss. A dwelling be,ng constructed is not conSidered vacant c. to the system or appliance Irom which the water or steam escaped d caused by or resulting from freez,ng ex- cept as prOVided ,n the p.rol 01 Ireezlng below; or e. on the residence premises caused by aCCidental discharge or overflow which occurs off the residence premises. 14. Sudden and accidental tearing apart, crack- lng, burning or bulging of a steam or hot water heating system. an air conditioning or automatic fire protect,ve sprinkler system, or an appliance lor heating water. This perol does not include loss caused L y or result,ng Irom freeZing except as pro'/icv,j in perol of freez,ng below. 15. Freezing 01 a plumb,ng, heating. air condi- tioning or automatic lire protective sprinkler system or 01 a household appliance. ThiS peril does not include loss on 11.:- ros'- dence premises while the dwelling is va~31 unoccupied or being constructed. urlr.' have used reasonable care to: a ma,nta.n heat in the buolding; or b. shut off the water supply and drain the system and appliances of water. 16. Sudden and accidental damage II om alii I j. cially generated electrical current. This peril does not include loss tv w .. :..' transistor or similar electronic componel1' 17. Volcanic eruption other than loss caused by earthquake. land shock waves or tremors. HO-2 Ed. 4-84 Copyright, Insurance Services Office. Inc., 1984 Pago 6 of 16 SECTION I - EXCLUSIONS w. do not ,nsure lor loss caused directly or ,n- dlr.ctly by iI1Y 01 the following. Such loss IS ex- cluded r.gardless of iI1Y other cause or event contr'but,ng concurrently or ,n any sequence to the loss. 1. Ordinance or Law, meaning enforcement of any ordinanc. or law regulating the construc- ton. repair. or demoht,on of a bUlld,ng or oth- er structure. unless spec I fically provided un- der thiS policy. 2. Earth Movement. mean,ng earthquake ,n- cluding land shock waves or tremors belore. dUring or after a volcanic erupt,on: landslide: mudflow; .arth Sinking. rls,ng or Shifting; un- less direct loss by: a. lire; b. explOSion; or C. breakage 01 glass or safety glaz,ng ma- terial which IS part of a building. storm door or sto.lrm 'N,ndow; ensues and then we w,ll pay only lor the en- suing loss. ThiS exclUSion does not apply to loss by theft 3. Water Damag., meaning: a Ilood. surfice water. waves. t,dal water. overflow 01 a body of water. or spray from any 01 these. whether or not driven by wind. b. water which backs up through sewers or dra,ns; or c. water below the surface of the ground Includ,ng water wnlcn exerts pressure on or seeps or leak s mrough the bUilding. Sidewalk. dnveway. foundat,on. SWim.' m,ng pool or other structure. Direct loss by 'ore. explOSion or theft result- ,ng from water damage '5 covered 4. Power Failure. meaning the lallure of pow.r or other utility service " the la,lure takes place olf the residence premises. But. ,f a Penllnsured Against ensues on the residence premises. we w,lI pay only lor that ensuing loss. 5. Neglect. meanmg neglect of the Insured to use all reasonable means to save and preserve property at and after the lime of loss. 6. War. ,ncluding undeclared war. clv,l war. in- surrection. rebellion. revolution. warlike act by a military lorce or military personnel. de- struction or seizure or use lor military pur- pose. and including any consequence 01 any o I these. Discharge 0 f a nuclear weapon Will be deemed a warlike act even ,f aCCidental. 7. Nuclear Hazard. to the extent set forth in the Nuclear Hazard Clause of Section I - Condi- t'ons. 8. Int.ntional Loss, mean,ng any loss arising out 01 any act committed: a by or at the direction 0 f an insured: and b. With the intent to cause a loss. SECTION I - CONDITIONS 1. Insunble Interest and Limit of Liability. Even il more than one person has an insurable interest ,n the property covered. we will not be liable in anyone loss: a to the Insured lor more than the amount of The Insured's interest at the time 01 loss; or b. for more than the applicable limit 01 li- ability. 2, Your Duties After Loss. In case of a loss to covered property. you must see that the fOI- low,ng are done; a give prompt notice 10 us or our agent; b. not,fy the police In case of loss by theft; c. notlly the credit card or fund !raMler card company ,n case of loss under Credit Card or Fund Transfer Card cov- erage; d 11) protect the property from further damage: 121 make reasonable and necessary re- pairs to protect the property; and 13) keep an accurate record of repair expenses; e. prepare an inventory of damaged per- sonal property show,ng the quantity, de- scnpllon. actual cash value and amount of loss. A !tach all b,lls. rece'pts and related documents that Justlly the figures in the ,nventory; ( Serv,ces Office. Inc.. 19B4 HO-2 Ed. 4 -84 as often as we reasonably requore; 11) show the damaged property; 12) provide us With records and docu- ments we request and permit us to make copies; and 131 subm,t to quest,ons under oath and s'gn and swear to them; 9- send to us. Within 60 days after our re- quest. your s'gned. sworn proo f 0 I loss which ~ets forth. to the best 0 f your knowledge and belie I: 11 I the time and cause 01 loss; 121 the ,nternt 01 the Insured and all others ,n the property ,nvolved and all hens on the property; 13) other insurance wh,ch may cover the loss; 141 changes ,n t,tle or occupancy 01 the property during the term of the poli- cy; 151 spec,licat,ons 01 damaged bUlld,ngs and deta,led repaor estimates: \61 the inventory of damaged personal property deSCribed ,n 2e above; 17) receipts for additional liv,ng ex- penses incurred and records that support the lair rental value loss; and 18) ev,dence or attidav't that supports a claim under the Credit Card. Fund Transler Card. Forgery and Counter- leit Money coverage. stating the amount and cause of loss. 3. Loss Settlement. Covered property losses are settled as follows: a ( 1 I Personal property; 121 Awn'ngs. carpet'ng. household appli- ances. outdoor antennas and outdoor equipment. whether or not attached to bUildings; and 13) Structures that are not buildings; at actual cash value at the lime of loss but not more tnan the amount required to re- paor or replace. b. Buildings under Coverage A or B at re- placsment cost without deduction for depreciation. subject to the following: (1) If. at the lime of loss. the amount of insur~nce in this policy on the damaged bu,lding is 80r. or more 0 f the lull replacement cost of the building immediately before the 1055. we will pay the cost to repair or re- place. after applicat,on of deductible and w,thout deduction lor depreCI- ation. but not more than the least 0 I the fOllow,ng amounts: lal the limit of liab,lity under thiS policy that applies to the budding; Ibl the replacement cost of that part of the bu,lding damaged lor like constructIon and use on the same prem,ses; or ICI the necessary amount actually spent to repaor or replace thf damaged budding. 12) If. at the time of loss. the amount 01 Insurance ,n thiS policy on the damaged bu,lding is less than Bar. of the lull replacement cost of the bUilding immediately belore the loss. we wtll pay the greater of the 101- low;ng amounts. but not more than the limit 01 Iiabdity under this policy that applies to the bUilding: lal the actual cash value of that part of the bUilding damaged; or Ibl that proportion 0 f the cost to repaor or replace. after applica- tion 0 f deductible and without deduct,on for depreciation. that part of the building damaged. which the total amount of insur- ance in this policy on the damaged building bears to eor. of the replacement cost of thtl building. 131 To determine the amount of insur- ance required to equal ear. of the full replacement cost of the building im- mediately before Ion. do not Include the value of: (al excavations, foundations, pieru or any supports which are below the undersurface of the lowest basement Iloor; Ibl those supports in lal above which are below the surface of the ground inside the foundation walls. if there is no basemant; and (el underground flues. pipes, wlrll\ll and drains. (4) We will pay no more than the aclUlll cash value of the damage unless: la) actual repair or replacement Is complete; or HO-2 Ed. 4-84 Copyright. Insurance Services Office. Ine.. 1984 Page 8 <,f 16 Ibl the cost to repaor or repla.:e the damage '5 both: Ii) less than is~. 0 f the amount of ,nsurance In thiS policy on the bUilding; and Iii) less than S 1 000. 15) You may disregard the replacement cost loss settlement provls,ons and make claim under thiS pol,cy lor los.s or damage to bUildings on an actual cash value baSIS. You may then make cla,m w,thln 180 days after loss lor any additional liability on a replace- ment cost baSIS. 4. Loss to a Pair or Set. In case 011055 to a paor or set we may elect to: a. repaor or replace any part to restore the paor or set to its value before the loss: or b. pay the difference between actual cash value 01 the property belore and after the loss. 5. Glass Replacement. Loss lor damage to glass caused by a peril Insured Aga,nst will be settled on the basis 0 I replacement With safety glazing materials when reqUired by or- dinance or law. 6. Appraisal. If you and we fall to agree on the amount of loss. either may demand an ap- praisal of the loss. In this event. each party w,lI choose a compl9tent appraiser within 20 days after receiving a Written request from the other. The two appraisers w,lI choose an 'Jm- pore. If they cannot agree upon an umpire within 1 5 days. you or we may request that the choice be made by a judge of a court of record in the state where the residence premises is located The appraisers w,ll sep- arately set the amount of loss. If the apprais- ers 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 de- cision 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 0 f the appraisal and umpire equally. 7. Other Insurance. If a loss covered by this policy is also covered by other insurance, we Will pay only the proportion of the 1055 that the limit 01 liability that applies under this poli- cy bears to the total amount of ,nsurance covering the loss. 8. Suit Against Us. No action can be brought unless the policy prOVISions have been com- phed With and the ~ct'on 's started Within one year alter the date of loss. g. Our Option. If we give you written notice w,th,n 30 days ~Iter we receive your SIgned. sworn proo I 0 I loss. we may repa,r or re- place any part 0 f the damaged property With hke property 10. Loss Payment. We w,lI ~dlust ~II loss With you We Will pay you unless some other per- son IS named ,n the policy or is legally entitled to rer.:e,ve payment Loss will be payable 60 days alter we rece,ve your proof of loss and: a reach an agreement With you; b. there,s an entry of a linal Judgment; or c. t~ere '5 a filing of an appraisal award With us. 11. Abandonment 01 Property. We need not ac- cept any property abandoned by an Insured. 12. Mortgage Clause. The word "mortgagee' includes trustee. If a mortgagee is named ,n this policy. any loss payable under Coverage A or El will be paid to the mortgagee and you. as interests appear. It more than one mortgagee is named. the order 01 payment w,ll be the same as the order of precedence 0 f the mortgages. If we deny your claim. that denial will not apply to a valid claim of the mortgagee. if the mort- gagee: a notifies us of any change in ownership. occupancy or substantial change in risk of which the mortgagee is aware; b. pays any premium due under this policy on demand if you have neglected to pay the prem,um; and c. submits a signed. sworn statement of loss with,n 60 days after receiving notice' from us of your failure to do 50. Policy conditions relating to Appraisal. Suit Against Us and Loss Payment apply to the mortgagee. If the policy is cancelled or not renewed by us. the mortgagee will be noti fied at least 10 days belore the date cancellation or non-,,". newal takes effect r II we pay the mortgagee for any loss and deny payment to you: a we are subrogated to all the rights of the mortgagee granted under the mortgage on the property; ora l Page 9 of 16 Copyright. Insurance Services Office. Inc., 1984 HO-2 Ed 4-84 b. at our option. we may pay to thor mortgagee the whole principal on the mortgage plus any accrued ,nterest In th,s event we Will receive a full ass'gnment and transler of the mortgage and all se- cuntles held as collateral to the mortgage debt Subrogation w,ll not ,mpaor the right 01 the mortgagee to recover the full amount 0 f the mortgagees claim 13. No Ben.flt to Bailee. We w,ll not recognize any assignment or grant any coverage that benefits a person or organlzat'on hold,ng. storing or moving property lor a fee regard- less 01 any other prOVISion of thiS policy. 14. Nuclear Hazard Claus.. a "Nuclear Hazard" means any nuclear reaction. radiation. or radioactive con- tamination. all whether controlled or uncontrolled or however caused, or any consequence 0 I any 0 f these. b. Loss caused by the nuclear hazard w,ll not be cons,dered loss caused by fire. e.pIOSlon. or smoke. whether these per- Ils are spec,lically named ,n or otherw,se Included wlth,n the Perils Insured Aga,nst ,n Section I. c. ThiS policy does not apply under Section I to loss caused directly or ,ndirectly by nuclear hazard. e.cept that direct loss by lire resulllng from the nuclear hazard IS covered. 15. R.covered Property. If you or we recover any property lor which we have made pay- ment under th,s policy. you or we Will notofy the other of the recovery. At your option. the property Will be returned to or reta,ned by you or ,t Will become our property. If the re- covered property IS returned to or ~eta'ned by you. the loss payment will be adjusted based on the amount you received for the re- covered property. 16. Volcanic Eruption Period. One or more vol- canic eruptions that occur within a 72 -hour period will be cons,dered as one volcanic erupt'on. SECTION II - LIABILITY COVERAGES \ . COVERAGE E . Personal Liability If a cla,m '5 made or a suit is brought against an Insured for damages because of bodily Injury or propertY damage caused by an occurrence to which thiS coverage applies, we will: 1. pay up to our limit of liability lor the damages for which the Insured is legally liable; and 2. provide a defense at our e.pense by counsel of our choice. even if the SUit is groundless. false or Iraudulenl We may investigate and settle any claim or suit that we decide is ap- propriate. Our duty to settle or defend ends when the amount we pay for damages result- ing from the occurrence equals our lim,t 0 f liability. COVERAGE F - Medical Payments to Others We will pay the necessary medical e.penses that are incurred or medically ascertained with,n three years from the date of an accident causing bodily Injury. Medical e.penses means reasonable charges for medical. surgical. .-ray. dental. am- bulance. hospital. profess,onal nurs,ng. prosthetic devices and luneral services. This coverage does not apply to you or regular residents of your household except resldenc. employees. As to others. this coverage applies only; 1. to a person on the Insured location with the permiSSion of an Insured; or 2. to a person off the Insured location. if the bodily injury; a. arises out of a condition on the Insur.d location or the ways immediately adjoin- ing; b. is caused by the activities of an Insured; c. is caused by a residence .mploy..ln the course of the residence employ..'. employment by an Insured; or d. is caused by an animal owned by 0:' ;, 1 tho care of an Insured. HO-2 Ed. 4-84 Copyright. Insurance Services Office. Inc.. 1984 Pay. 10 of 16 SECTION II - EXCLUSIONS t. Coverage E - Personal Llabiliry and Cov- erag. F - Medical Payments 10 Others do not apply to bodily Injury or property dam- age: a. whiCh,s expected or Intended by the in- sured; b. ariSing out of business purSUitS of an in- sured or .the rental or holding lor rent~J of any part 01 any premIses by an in- sured. ThiS exclUSion does not apply to: III actlvlt'es which are usual to non- business pursuits; or (2) the rental or holding for rental 01 an Insured location; lal on an occas,onal baSIS if used only as a reSidence; Ibl ,n part lor use only as reSidence. unless a Single family unit 's ,n- tended lor use by the occuPYing lam.ly to lodge more than two roomers or boarders; or Icl ,n part. as an office. school. stu- dio or private garage; c. drls'ng out 01 the rendering 01 or failure to render profeSSional services; d arising out of a premises: ( 1 ) owned by an Insured; 12) rented to an Insured; or (31 rented to others by an insured; that is not an insured location; e. arising out 0 f: 1 1) the ownership. maintenance. use. loading or unloading of motor vehi- cles or all other motorized land Co:ln- veyances. including tra,lers. owned or operated by or rented or loaned to an insured; 12) the entrustment by an Insured 0 f a motor vehicle or any other motorized land conveyance to any person. or (3) statutorily imposed Vicarious parental liability for the actions of a child or minor uSing a conveyance excluded in paragraph I 11 or 12) above. This exclusion does not apply to: (ll a trailer not towed by or carried on a motorized land conveyance. 121 a motorized land conveyance de- Signed for recrear,onal uJe off public (- roads. nor subject to motor vehicle registration and; lal not owned by an insured; or lei owned by an insured and on an insured location. 131 a motorized golf cart when used to play golf on a gOlf course. (41 a vehicle or conveyance not sub lect to motor vehicle registration which is: lal used to service an insured's reSidence; Ibl designed lor assisting the handi- capped; or Icl ,n dead storage on an insured. location. f. arising out of: (11 the ownersh,p. maintenance. use, loading or unloading of a watercralt deSCribed below: 121 the entrustment by an insured of a watercraft deSCribed below to any person; or (3) statutorily imposed vicarious parental liability lor the actions of a child or minor us,ng a watercraft described below. Watercraft (11 with inboard or inboard-outdrive motor power owned by an insured; 121 With inboard or inboard-outdrive motor power of more than !,O horsepower rented to an insured; (3) that is a sailing vessel. with or withOut aux,liary power. 26 feet or more in length owned by or rented to an II' . sured; or (4) powered by one or more outboard molors with ITtore than 25 total horsepower if the outboard motor is owned by an Insured. But. outboard motors of more than 25 total horse- power are covered for the policy period if: la) you acquire them prior to the I policy period and: "- {i) you declare them at policy inception; or Page 11 of 16 Copyright. Insurance Services Office. Inc.. 1984 HO-2 Ed 4-84 li,l your 'ntentlon to ,nsurs 's "ported to uS ,n wrl ling wltllln 45 days alter you ac- qUire the outbooil'd motors. Ibl you acqUIre them dunng the POlI- cy period. ThiS eXClUSion does not acply wh,le the watercralt 's stored 9- oiI'lslng out of: 111 the ownel ship. ma'ntenance. use. loading or unloading of an aircraft 121 the entrust..,ent by an insured 01 an alrcralt to any person; or 131 statutorily 'mposed v'carlous pareNal Iiab,lity lor the aCllons 01 a child or minor using an a,rcraft An aircraft means any contrivance used or designed lor flight. except model or hobby aircraft not used or des'gned to carry people or cargo. h. caused directly or indirectly by war. ,n- cludlng undeclared war. clv,l war. insur- rection. rebellion. revolution. warlike act by a military force or military personnel. destruction or se,zure or use for a mlii- tary purpose. and including any conse- quence 01 any 01 these. Discharge 01 a nuclear weapon w,lI be deemed a warlike act even ,f aCCidental. Exclus,ons d. ... f. and g.. do not apply to bodily injury to a resld.nc. employee aris- Ing out of and in the course of the residence employe.'s employment by an Insured. 2. Coverage E . Person.' liability does not apply to: iI. liab,lity: 11) for your share of any loss assess- ment charged against all members of an association. corporation or com- munoty 01 property owners; 12) under any contract or agre Jment However. thiS exclusion does not apply to written contracts; (al that directly relate to the owner- ship, maontenar,ce or use 0 f an Insured location; or Ibl where the liability 01 others is assumed by the insured prior to \ an occurrence; unless e.cluded in I 1) above or elsewhere in thiS policy; b property damage to property owned by the insured; c. property damage to property rented to. occupied or used by or ,n the care of the insured. ThiS uclus,on does not apply to property damage caused by fire. smoke or e.ploSlon. d bodily injury to any person elig'ble to receive any benel,ts: 11 J voluntarily prov,ded; or 121 requ,red to be prov,ded; by the Insured under any: 111 worker's compensation law; 121 non-occupat,onal disab,lity law; or 13) occupational disease law; e. bodily injury or property damage lor wh,ch an Insured under thiS policy: 111 IS also an ,nsured under a nuclear en- ergy liab,lity policy; or 12) would be an Insured under that policy but lor the e.haustlon of its lim,t of liability A nuclear energy Iiab,lity policy is one is" sued by: 11) American Nuclear Insurers; 12) Mutual Atom,c Energy liability Un- derWriters; 131 Nuclear Insurance Associali':l1 "f Canada; or any of their successors; or f. bodily Injury to you or an Insured wiulin the meaning of part a or b. of "Insured" as de lined 3. Coverage F - Medical Payments to Others, does not apply to bodily Injury: a to a residence employee if the bodily Injury; (1) occurs oft the Insured location' ""~ 12) does not arise out of or in the '..' J of the residence employee's "m- ployment by an Insured; b. to any person eligible to receive bar,eflts: (11 voluntarily provided: or (2) required to be provided; under any: 111 workers' compensation law; 121 non-occupational disability law; or (3) occupational disease law; HO-2 Ed 4-84 Copyright. Insurance Services Office. Inc., 1984 Page 12 of Hi c. Irom any: 11) nuclear reactl"n: (2) nuclear radiat,on; or 131 radioactIve contamination: all whether controlled or uncontrolled or however caused; or 141 any consequence of any of these. d. to any person. other than a residence employee of an Insured. regularly res,d- ,ng on any part of the insured location. t SECTION II - ADDITIONAL COVERAGES We cover the following in addition to the iimits 01 liability: 1. Claim expenses. We pay: a expenses we incur and costs taxed against an Insured in any suit we defend; b. premiums on bonds required in a su,t we defend. but not for bond amounts more than the limit of liability for Coverage e. We need not apply for or furn,sh any bond; c. reasonable expenses ,ncurred by an In- sured at our request. including actual loss of earnings Ibut not loss of other Incomel up to 550 per day. for assisting us ,n the investigation or defense of a cla,m or su,t; d ,nterest on the entire judgment which ac- crues after entry of the Judgment and before we payor tender. or deposit ,n court that part of the judgment wh,ch does not exceed the limit of liability that applies; e. prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the ap- plicable limit 01 liability. we will not pay pre judgment Interest based on that pe- riod of time after the offer. 2. First Aid Expenses. We will pay expenses for first aid to others incurred by an Insured for bodily Injury covered under thiS policy We will not pay for first aid to you or any other Insured. 3. Damage to Property of Others. We will pay. at replacement cost, up to 5500 per occur- rence for property damage to property of others caused by an Insured. We will not pay for property damage: a to the extent 0 f any amount recoverable under Section I of this policy; b. caused intentionally by an insured who is 13 years of age or older; c. to property owned by an Insured; d. to property owned by or rented to a ten- ant of an Insured or a res,dent in your household; or e. ariSing out 01: 111 business pursuits; 121 any act or omission in connection With a premises owned. rented or controlled by an Insured, other than the Insured location; or 131 the ownersh,p. maintenance. or use o I aircraft, watercraft or motor ve- hicles or all other motOrized land conveyances. This exclusion does not apply to a motOrized land conveyance designed for recreational use off public roads. not subject to motor vehicle reg's- trat'lon and not owned by an Insured. 4. Loss Assessment. We will pay up to 51000 for your share 01 any loss assessment charged dUring the policy period against you by a corporation or assoc,ation of property owners. when the assessment is made as a result of: a each occurrence to which Section II of this policy would apply; b. liability for each act of a director. officer or trustee in the capacity as a direct"".. officer or trustee. provided: (1) the director. officer or trustee is elected by the members of a corpo- ration or association of property owners; and (2) the director. officer or trust. rc, serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property owners. This coverage applies only to loss assessmants charged aga'nst you as owner or tenant of the residence premises. ( Page 13 of 16 Copyright. Insurance Services Office. Inc.. 1984 HO-2 Ed 4-84 We do not cover lo~s assessments charged aga'nst you or a corporation or aSSociation of property owners by any governmental body. Section II - Coverage E - Personal Llab,'ity Exclu- sion 2.a11l does not apply to thIS coverage. SECTION II - CONDITIONS 1. Limit of Liability. Our total Iiab,lity under Coverage E lor all damages resulllng from any one occurrence wIll not be more than the Iim,t of liability for Coverage E as shown ,n the Declarations. ThiS limit IS the same regardless of the number of insureds: claims made or ,nlured Our total liabIlity under Coverage F for all medical expense payable for bodily Injury to one person as the result 0 f one accident Will not be more than the limit of liab,lity for Cov- erage F as shown ,n the Declarations. 2. Severability of Insurance. ThiS Insurance applies separately to each insured. Ths con- dition will not ,ncrease our limit of liability lor anyone occurrence. 3. Outles After LollS. In case of an acc,dent or occurrence. the insured will perform the follow,ng duties that apply. You WIll help US by seeIng that these duties are performed: a g,ve written notice to us or our agent as soon as is practical. which sets forth: 11! the identity of the policy and insured; (21 reasonably available information on the time. place and circumstances 0 f the aCCident or occurrenc.e; and (31 names and addresses of any claim- ants and witnesses; b. promptly forward to US every notice. de- mand. summons or other process relat,ng to the accident or occurrence; C. at our request. help us; III to make settlement; (2) to enforce any right of contribution or indemnity against any person or organozat,on who may be liable to an Insured; (3) with the conduct 0 f SUitS and attend hear'ngs and trials; (4) to secure and give evidence and ob- tain the attendance 0 f witnesses; ci under the coverage - Damage to Prop- erty of Others - submit to us within 60 days after the 1055. a sworn statement of lOSS and show the damaged property. if :n the Insured's control; e. the insured w,ll not. exept at the In- sund's own cost. voluntarily make ~ ment. assume obligation or ,ncur expense other thantor lirst aid to others at the t,me 01 the bodily injury. 4. Duties of an Injured Person. Coverage F - Medical Payments to Others. The ,nlured person or someone acting lor the ,n Jured person wlll: a g,ve US written proof of claim. under 0;.1\11 if required. as soon as is practical; and b. authOrize us to obta,n copies of medical reports and records. The inlured person will submit to a physical exam by a doctor of our chOice when and ll~ o Iten as we reasonably require. 5. Payment of Claim - Coverage F - Medical Payments to Others, Payment under thiS coverage is not an admission of liability by al. Insured or us. 6. Suit Against Us. No action can be brought against uS unless there has been compliance With the policy prOVisions. No one will have 'he right to join us as a party to any action again~t an Insured. Also, no ac tion with respect to Coverage E can be brought against us until the obligation of the Insured has been determined by final judg- ment or agreement signed by us. 7. Bankruptcy of an Insured. Bankruptcy or in- solvency of an insured will not relieve us of our obligations under this policy. 6. Other Insurance - Coverage E - Personal Liability. ThiS insurance is excess over valid and collectible insurance except insurance written specifically to cover as excess over the limits of liability that apply in this policy. HO-2 Ed. 4-84 COPYright. Insurance Services Office. Inc.. 1984 Page 14 of 16 SECTIONS I AND II - CONDITIONS 1. Policy Period. This policy applies only to loss ,n Section I or bodily Injury or property damage ,n Section II. which occurs dUring tfle policy period 2. ConGealment or Fraud.We do not prov,de cover age lor an insured whO has: a. ,ntentlonally concealed or m,srepresent- ed any material I act or Circumstance. or b. made. false statements or engaged In fraudulent conduct relating to this insurance. 3. Liberalization Clause. II we adopt a rev'slon which would broaJen the coverage under thiS policy without addit,onal premium Within 60 days prior to or during the policy period. the broadened coverage Will immediatel', apply to thiS policy. 4. Waiver or Change of Policy Provisions. A waiver or change of a prOVISion of thiS pOlicy must be ,n writing by us to be valid Our request lor an appraisal or examination w,lI not waive any of our rights. 5. Canc.llatlon. a You may cancel thiS policy at any time by return,ng it to US or by letting US know ,n writing of the date cancellation is to take effect b. We may cancel this policy only for the reasons stated below by letting you know ,n Writing of the date cancellation lakes effect ThiS cancellation notice may be delivered to you. or maoled to you at your mailing addrllss shown in the Declara- tions. Proof of mailing will be suffiCient prool of notice. ( 1) When you have not paid the prem,um. we may cancel at any time by letting you know at least 10 days belore the date cancellation takes effect (21 When thiS policy has been ,n effect for less than 60 days ar.d is not a re- newal with us. we may cancel lor any reason by letting you know at least 10 days before the date cancellation takes effect (31 When this policy has been in effect for 60 days or more. or at any t,me if it 15 a renewal with us. we may cancel: la) ,f there has been a material mls- ( representation of fact wh,Ch ,I known to uS would have caused us not to ,ssue the policy; or lbl ,f the risk has changed substan- t'ally s,nce t"e policy was 'ssued ThiS can be done by letting you know at least 30 days belore the date can- cellation takes effect (4) When thIS policy's written lor a pe- riod of more than one year. we may cancel lor any reason at anniversary by letting you know at least 30 days before the date cancellation takes effect c. When thiS policy is cancelled. the premi- um for the period from the date 01 can- cellation to the exp,ratlon date wtll be re- lunded pre rata d If the return premium IS not relunded With the not,ce of cancellation or when this pOlicy,s returned to us. we Will refund it within a reasonable time after the date cancellation takes effect 6. Non-renewal. We may elect not to renew this policy We may do so by delivering to you. or mailing to you at your maoling address shown in the Declarations. witten notice at least 30 days before the expiration date of this policy Proof 01 mailing wtll be sufficient proof of notice. 7. Assignment. Assignment 01 this policy will not be valid unless we g,ve our written con- sent 8. Subrogation. An Insured may waive in Writing before a loss all rights of recovery against any person If not waived. we may require an assignment 01 rights of recovery for a loss to the extent that payment is made by us. If an assignment is sought. an Insur.d must sign and deliver all related papers and coop- erate with us. Subrogation does not apply under Section II to Medical Payments to Others or Damage to Property 01 Others. l Page 15 of 16 Copyright. Insurance SlIrvices Office. Inc.. 1984 HO-2 Ed 4-84 9. Ouch. If any person named In the Declara~ tions or the spouse. II a res,dent of the same household. dies: a we Insure the legal representat,vG of the deceased but only w,th respect to the premises and property of the deceased covered under the policy at the tIme of death; b. ineured Includes: 111 any member 01 your household who '5 in Insured at the time 0 f your death. but only while a resldtlnt 01 the residence premises; and 12) With respect to your property. the person havIng proper temporary custody of the property unt,l ap- po,ntrnent and qualilicat,on of a legal representat,ve. - /- #'~~--- -r ~r-- ~,/f~ Howard L Sloneker III Vice-Presldentl Secr etary Lauren N. Pacch President ,i. HO-2 Ed. 4-84 Copyright. Insurance Services Office. Inc.. 1984 Page 16 of 16 @ HO-JOO lEd. 4-891 PENNSYL VANIA SPECIAL PROVISIONS SECTION I - PROPERTY COVERAGES In all Forms and In Endorsement HO-J50. under ADDITIONAL COVERAGES, item 1. Debris Removal is deleted and the following substituted: 1. Debris Removal A. We will pay your reasonable expense for the removal of: (1) debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or (2) ash. dust or particles Irom a volcanic eruption that has caused direct loss to a building or property contained in a building. This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability lor the damaged property. an additional 5% of that limit of liability is available for debris removal expense. B. (1) If the circumstances of a 1055 meet those specified in (2) below, we will pay your reasonable expense. up to 5500 in the aggregate, for the removal from the residence premises 01: a. your treels) felled by the peril of Windstorm or Hail; b. your treels) lelled by the peril of Weight of Ice. Snow or Sleet lForms HO-2. HO-3, HO-4 and HO-6 only); c. a neighbor's treels) felled by a Peril Insured Against under Coverage C. (21 Tree removal coverage as described in B. ( 11 a!:love applies only It a. the tree damages a structure covered under this policy; or b. Windstorm or Hail or Weight of Ice. Snow or Sleet causes damage to a structure covered under this policy and the Pennsylvan,a Governor declares the drea ,n which the residence premises is located to be a disaster area as a result of such weather conditions. SECTION I - CONDITIONS Under Condition J. Loss Settlement. item b. III is deleted and replaced by the following: b. Buildings under Coverage A or B at replacement cost without deduction for depreciation. subject to the following: i1) If. at the time of loss. the amount of insurance in thiS policy on the damaged building is 80r. or more 0 f the full replacement cost 01 the building immediately before the loss. we will pay the cost to repair or replace. after application of deductible and without oeduction for depreciation. b~t not more than the least of the following amounts: (althe limit of liability under this policy that applies to the building: Iblthe replacement cost of that part of the building damaged; or (clthe necessary amount actually spent to repair or replace the damaged building. The replacement cost will not exceed that necessary for like construction and use on the same premises; regardless of whether the replacement building or repaired building is located on the same or a different premises. SECTION II - LIABILITY COVERAGES In Endorsement HO-J50, item 1. under Coverage E - Personal Liability is deleted. Under Coverage F - Medical Payments to Oth~rs: Medical expenses do not include expenses for funeral servicr.s. HO-300 lEd 4-891 PENNSYLVANIA pago 1 r.t ~. Copyright. Insurance Services Office. Inc., 1988 ~ SECTION I AND II CONDITIONS S. Caneellallon. Paragraph b. is deleted and the following subst,tuted: b. We may cancel thIS policy only for the reasons stated below by notifying the Insured in writing of the date cancellation takes effect This cancellal,on notice may be delivered to or mailed to the Insured named in the Declarations at the mailing addreSS shown in the policy or at a forwarding address. Prool of mailing will be sufficient proof 01 notice. 111 When thiS policy has been In effect for less than 60 days and is not a renewal with us. we may cancel for any reason by notifying the Insured named in the Declarations at least 30 days before the cancellation takes effect (2! When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us. we may cancel only for one or more of the lollowing reasons by noti fying the Insured named in the Declaration at least 30 days prior to the proposed cancellation date: (al this policy was cbtained through material misrepresentation. fraudulent state- ments. omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by us; (bl there has been a subslanial change or increase in hazard in the risk assumed by us subsequent to the date the policy was Issued; lei there is a substantial increase in hazards insured against by reason of willful or negligent acts or omissions by the insured; HO-300 lEd 4-89) PENNSYLVANIA Idlthe Insured has I ailed to pay the premium by the due date. whether payable to us or to our agent or under any finance or credit plan; or (el for any other reason approved by the Pennsylvania Insurance Commissioner. This provision shall not apply If the named Insured has demonstrated by some overt action to us or to our agent that the Insured WIshes the policy to be cancelled Delivery of such written notice by us to the Insured named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. 6. Non-Renewal is deleted and the following sub- stituted: 6. Non-Renewal. We will not fail to renew this policy except for one of the reasons referred to in the Cancellation Provision of this en- dorsement We may refuse to renew for one of the listed reasons by mailing to the Insured named in the Declarations at the mailing ad- dress shown in the policy or at a forwarding ( address, written notice at least 30 days prior to the expiration date of this policy. This provision does not apply If: a. we have indicated our willingness to renew and the Insured has failed to pay the premium by tile due date: or b. the named Insured has indicated to us or our agent that the Insured does not wish the policy to be renewed . Delivery of such written notice by us to #Ie Insured named in the Declarations at the ,... 'IIlnll address shown in the policy or at a forwardlng' address shall be equivalent to mailng. All other provisions of this policy apply. HO-300 lEd 4-891 PENNSYLVANIA Page 2 of 2 Copyright. Insuranco Services Office. Inc.. 1988 @ SUPPLEMENTAL PROVISIONS DEFINITIONS Definition 5. is deleted and replaced by the fOl- lowing: 5. "occurrence" means an acc,dent. i,lC1uding cont,nuous or repeated exposure to substan- t,ally the same general harmful condit'ons. which results. dUring the policy period. ,rt a. bodily Injury; or b. property damage. SECTION I . PROPERTY COVERAGES Under COVERAGE C - Personal Property, Spe- cial Limits of Liability, item 2. is deleted and re- placed by the follOWing: 2. 91.000 on securities. accounts. deeds. ev,- dences of debt. lelters of credit. notes other than bank notes. manuscripts. personal records. passports. tickets and stamps. ThiS dollar limit applies to these categories re- gardless of the medium Isuch as paper or computer software) on which the material exists. This'limit includes the cost to research. re- place or restore the ,nformation from the lost or damaged material. Under COVERAGE C - Personal Property, Prop- erty Not Covered, item 8. is deleted and replaced by the following: 8. business data. including such data stored in: a books of account, drawings or other pa- per records; or b. electronic data processing tapes. wires. records. discs or other soltware media However, we do cover the cost 01 blank re- cording or storage meciia. and 0 f prerecorded computer programs available on the retail market Under ADDITIONAL COVERAGES: Item 1. Debris Removal is deleted and replaced by the lollowing: 1. Debris Removal. We will pay your reason- able expense for the removal of: a debris 01 covered property If a Peril In- sured Against that applies to the damaged property causes the loss; or HO-3S0 lEd 9-87) b. ash. dust or part,cles Irom a volcanIC eruption that has caused direct loss to a bu,lding or property conta,ned ,n a bu,ld- ,ng. Th,s expense IS InCluded ,n the limit olliab,lity that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debriS removal expense '5 more than the limit of liab,lIty for the damaged property. an additional 5r. of that limit of liab,lIty IS a'/a,lable lor debris removal expense. We WIll also pay your reasonable expense. up to 9500 ,n the aggregate for the removal from the residence premises of: a your treelsl felled by the peril 01 Windstorm or Ha,l; b. your treelsl felled by the peril of Weight of Ice. Snow or Sleet (Forms HO-2. HO- 3. HO-4. and HO-6 only); or c. a ne'ghbors treelsl felled by a Peril In- sured Aga,nst under Coverage C; provided the treels) damages a covered structure. Item 2. Reasonable Repairs Is deleted and rp- placed by the follow,ng: 2. Reasonable Repairs. In the event that cu~- ered property is damaged by an applicable Peril Insured Against. we will pay the reason- able cost incurred by you for necessary mea- sures taken solely to protect against further damage. If the measures taken involve repair to other damaged property. we will pay lor. those measures only if that property I~ " . ered under this policy and the damage to Uk" property Is caused by an applicaL! sured Against This coverage: a does not increase the limit of Ii"hili!', I: ,c. applies to the covered property; b. does not relieve you of your ';'.,',('5. ill case of a loss to covered propwI'i. ,,:. 'lilt forth in Section I Condition 2.d Copyright. Insurance Services Office. Inc.. 1984 HO-350 lEd. 9-87) Page 1 of 4 Item 7. Loss Assessment,s deleted and replaced by the lollowlng: 7. Loss Assessment. We w,lI pay up to 3 1.000 for your share 01 loss assessment charged dUring thll policy period against you by a cor- poration or assoc,atlon of property owners. when the assessment is made as a result of direct loss to the property. owned by all members collectively. caused by a Peril In- sured Aga,nst under Coverage A - Dwelling. other than earthquake or land shock waves or tremors belore. dur,ng or alter a volcan,c eruption. ThiS coverage applies only to loss assess- ments charged aga,nst you as owner or tenant of the residence premises. We do not cover loss assessments charged aga,n st you or a corporat'on or associat,on of property owners by any governmental body. The lim,t of 31.000 ,s the most we w,lI pay with respect to anyone loss. regardless of the number of asseS3ments. Condition 1. Policy Period. under Sections I and II Conditions. does not apply to the cov- erage prOVIded by th,s endorsement SECTION I . PERILS INSURED AGAINST The follOWIng perils are deleted from Form HO-6: 2. Windstorm or Hail; 6. vehicles; 11. Falling Ob- jects; 12. Weight 01 ice. snow or sleet; 13. Ac- cidental discharge or overflow 0 f water or steam; and replaced by the following: 2. Windstorm or Hall. This peril does not include loss to the ins,de of a building or the property conta,ned in a building caused by rain. snow. sleet. sand or dust unless the direct force 0 f wind or ha,l damages the building causing an opening in a roof or wall and the rain. snow. sleet. sand or dust enters through th,s open,ng. This peril includes loss to watercraft and their trailers. furnishings. equipment. and outboard motors. only while inside a fully enclosed building. 6. Vehicles This peril does not include 1055 to a fence. driveway or walk caused by a vehicle owned or operated by a res,dent of the residence premises. 11. Failing Objects. ThiS peril does not ,nclude loss to the ,ns,de of a bu,lding or property conta,ned. In the bUilding unless the roof or an outs, de wall 01 the bu,lding 's first damaged by a lalling ob- Ject Damage to the lalling object Itself '5 not ,ncluded i 12. Weight of ice. snow or sleet wh,ch causes damage to a bu,lding or property conta,ned in the building. ThiS peril does not ,nclude loss to an awn,ng. lence. pat'o. pavement. sw,mm,ng pool. loundatlon. reta,n,ng wall. bulkhead. pier. wharf. or dock. 13. Accidental discharge or overflow of water or steam Irom within a plumbing, heating. air condition,ng or automat,c fire protective spr'nkler system or from wlth,n a household appliance. We also pay for tearing out and re- plac'ng any part 0 f the building wh,ch is cov- erftd under Coverage A and on the residence premises ,f necessary to repair the system or appliance Irom which the water or steam es- caped. Th,s peril does not include loss: a to a building caused by constant or re- peated seepage or leakage over a period of weeks. months or years; b. on the residence premises. if the unot has been vacant for more than 30 con- secutive days immediately before the 1055. A unot being constructed is not con- sidered vacant; c. to the system or appliance from which the water or steam escaped; d caused by or resulting Irom freezing 1Il<- cept as provided in the peril of freezing below; or e. on the residence premises caused by accidental discharge or overflow which occurs away from the building wher e the residence premises is located The follow1Mg sentence is added to the peril. Ac. cidental Discharge or Overflow of Water or Steam in all Forms except HO-l and HO-8: In this peril. a plumbing system does not include a sump. sump pump or related equipment ( COPYright. Insurance Services Office. Inc.. 1984 HO-3!lO lEd. 9-87) Page 2 of 4 SECTION I - EXCLUSIONS Under ExcluSion 3. Water Damage. paragraph b. 's deleted znd replaced by the fOllow,ng: b. water which backs up through sewers or drains or whIch overflows from a sump; or IIn Form HO-3. thiS IS ,tem l.c.12).) SECTION I . CONDITIONS Under 2. Your Dulin After Loss. paragraph fl31 is deleted and replaced by the follOWing: 131 submIt to examInation unde, oath. whole not ,n the presence. 0 I any other Insured and s'gn the same; Under 3. Loss Settlement ,n Forms HO-l. HO-2 and HO-3. paragraph b.(4) is deleted and replaced by the lollowing. (4) We will pay no more than the actual cash value of the damage unless: lal actual repaor or replacement is complete; or Ibl the cost to repaor or replace the damage is both: (j) less than 5r. of the amount of insur- ance in this policy on the building; and Iii) less than 52500. SECTION II . LIABILITY COVERAGES Under Coverage E, Personal Liability, item 1. is deleted and replaced by the following in all Forms and Endorsement HO-73: 1. pay up to our limit of liability fcr the damages for which the Insured is legally liable. Dam- ages include prejudgment interest awarded against the Insured. ( SECTION II . EXCLUSIONS Under item 1. Coverage E - Personal Liability and Coverage F . Medical Payments to Others item b. is deleted and replaced by the lollowing in all Forms and Endorsement HO-73: b. (1) arising out 01 or in connection with a business engaged in by an Insured. This exclusion applies but is not limited to an act or omission. regardless of its nature or circumstance. involVIng a service or duty rendered. promised. owed. or im- plied to be provided because 0 f the na- ture of the business. b. (2) arising out of the rental or holding for rental 0 f any part 0 f any premises by an Insured. This exclusion does not apply to the rental or holding for rental of an In- sured location: Iii on an occasIonal bas,s if used only as res,dence; liil ,n part for use only as a residence. unless a single family unot is ,ntended for use by the occupy,ng ~ am,ly to lodge more than two roomers or boarders; or liIiI 111 part. as an o/fice. school. studio or private garage; Under ,tem 1. Coverage E . Ptrsonal Liability and Coverage F . Medical Payments to Others, the follow,ng exclUSion is added to all Forms and Endorsement HO-73: I. wh,ch arises out 01 the transmission of a communocable disease by ~n Insured. (ThiS is exclUSion J. ,n HO-73.) Under ,tem 2. CoveraglJ e - Personal Liability item al1) is deleted and replaced by the following ,n all Forms and Endor sement HO-73: (1) for any loss assessment charged against you as a member 0 f an assoc'ation. corporation or communoty of property owners; SECTION II . ADDITIONAL COVERAGES Under item 1. Claim Expenses, paragraph e. is deleted Under 3. Damage to Property of Others, item e.l1) is deleted and replaced by the following: (1) a business engaged in by an Insured; Item 4. Loss Assessment is deleted and replaced by the lollowing: 4. Loss Assessment. We will pay up to S 1 i ,0 lor your share 0 f loss assessment charged dUring the policy periOd against you by a cor- poration or association of property owners. when the assessment is made as a result of: a bodily injury or property damage not excluded under Section II of this policy. or b. liability for an act of a director. officer or trustee in the capacity as a director. ,,: . licer or trustee. provided: I II the director. officer or trustee is elected by the members of a corpo- ration or association of prop<>rty owners; and 121 the director. officer or trustua serves without deriVIng any incomo from the exercise of duties which are solely on behalf of a corporatk'" or association of property owners. COPYright. Insurance Services Office. Inc.. 1984 HO-350 lEd 9-8'/) Page 3 of <\ This coverage applills only to loss assessment 5 charged aga,nst you as owner or tenant 0 I the residence premises. We do not cover loss assessments charged against you or a corporation or association 0 I property owners by any governmental body Regardless 01 the number of assessments. the limit 01 S 1.000 IS the most we Will pay for loss ans,ng out 01: a. one aCCident. ,ncluding continuous or repeat- ed exposure to substantially .the same general harmful condition; or b. a covered act 01 a director. officer or trustee. An act involVing more than one director of- ficer or trustee IS cons,dered to be a Single act The following do not apply to thiS coverage: 1. Sect' on II - Coverage E - Personal Liability ExclUSion 2.alll; 2. Condit' on 1. Policy Penod. Under Sections I and II Conditions. SECTION II . CONDITIONS Item 1. Limit of Liability, is deleted and replaced by the fOllow,ng: 1. Limit of Liability. Our total liability under Coverage E tor all damages resulting from any one occurrence will not be more than the limit 01 liability lor Coverage E as shown ,n the Declarations. This limit is the same regardless of the number of Insureds. claims made or persons injured All bodily Injury and prop- erty damage resulting from anyone acc,dent or Irom continuous or repeated exposure to substantially the same general harmful condi- tions shall be conSidered to be the result 0 f one occurrence. Our total liabIlity under Coverage F for all medical expense payable for bodily Injury to one person as the result 01 one aCCident WIll not be more than the limit 01 liabIlity for Coverage F as shown ,n the Declarations. ( SECTIONS I AND II - CONDITIONS Item 2. Concealment or Fraud. is deleted and re- placed by the lollow,ng: 2. Concealment or Fraud. The entire policy w,lI be VOid If. whether before or after a loss. an insured has: a. ,ntentlonally concealed or misrepresent- ed any matenallact or circumstance; b. engaged ,n Iraudulent conduct: or c. made lalse statements; relating to thiS 'nsurance. Item 3. Liberalization Clause is deleted and re- placed by the lollowlng: 3. Liberalization Clause II we make a change which broadens coverage under thiS edition 01 our policy w,thout additional premium charge. that change w,lI automatically apply to your ,nsurance as of the date we implement the change in your state. provided that this ,mplementation date lalls within 60 days prior to or durtng the policy pertod stated in the Declarations. Th,s L,beralizat:lJn Clause does not apply to changes implemented through introduction of a subsequent edition of our policy. All other provISions of thiS policy apply. l Cop'fright. Insurance Serv,ces Office. Inc.. 1984 HO-350 lEd 9-871 Page 4 c..r 4 @ GOLF CART LIABILITY OC -183 lEd. 10-8S) SECTION II eXCLUSIONS 1. Coverage e - Personal Liability and Coverage F - Medical Payments To Others. Subparagraph e. 131 A motorized golf cart when "sed to play golf on a golt course -IS changed to read: 131 A motOrized golf cart when used to play golf on a golf course. and travel between the Residence premise. and ,IS communlly golf course lor golfing purposes or lor other spon- sored acliv'tles. MORTGAGE EXPENSE COVERAGE The lollowlng coverages apply m to the lorst mortoaaee named in thl:l policy. If a covered perl' causes a total loss to your dwelling. covered by thiS policy. we will reimburse you the follOWing costs and expenses to replace the damaged property. if incurred by you w,thln 120 days afler the date 0 floss. A. W. Will pay up to s 1.000 for the follOWing direct monetJ/'y costs Incurred by you if the first mortgagee named in the pOlicy has the right to renegotiate the first mortgage and exercises this right 1. title search fees; 2. appraisal fees; and 3. application hes. B. Additional Monthly Mortgage Expense: We will pay that part 0 f the additional monthly mortgage expense on the replacement dwelling which is due to .. higher rate of interest of more than 2".. annual percentage rate for the same principal amount. based on the balance owed on the original mortgage 01 the first mortgagee at the time 0' loss and for a like item. W. do not cover any Iddltlonallnterest expense Incurred In any other mortgage. whether listed on this policy or not. Our limit of liability under thiS endorsement shall not exceed s250 per month and will expire one year from the date 01 the lirst payment Payment under this coverage will be made semi-annually when you provide satis factory evidence that the mortgage for which payment is being mad. remains in full force and affect C. This coverage does not apply to Forms HO-4 and HO-6. The term "lotalloss" means loss for which we have paid or agreed to pay an amount equal to the: k' i. . of thll dwelling coverage under your policy. _ C~ . ..\ v "'~\ ... . .... f.. 't. '.J ~O';fJ \' ~~ . c::J~~ ~.~. '".:1-\. 'i:;;~ ~$.\~~ OC-163 lEd 10-09\ h' ,.- II- ..t ;.~ .- 1-- C' Ul- .... ~i -. '-'- ~. :: , ,n , ., l~- >- ,<'] a.~,- ~: .,- i-.- ~ ~i ~ r- :') 0" "... h; -, 1-- Ul~l ~(- fL -. ~r I. e: -Lo o:~~ !:} t.O ", C.: '-- , ',,, ~. ':- ~ ; .' - . }...] : '~I ,),.. --, . j i ~] ", "... _".2' c""' w "'- r- 0- -. .:'i o r.. ~ ~ ~~ .. ~ ~ ~ ~ j ..~ ~ Q ~ , I . t; .. ill 0 ~ e ~ : i z .. ~ a g .. .. " ~ 0 = ~ G: i z ~ .. % o .. \ 7. Michael J. Boyle and Tonya Boyle filed a Complaint against Defendants Jay A. Shuler, Helen D. Shuler, Jack Gaughe~ Realtor, Ellen Johnston and Kellog Environmental Services, Inc., a copy of said Complaint is attached hereto and made a part hereof as Exhibit A without adopting or admitting the facts herein. 8. Boyles allege that they purchased a house from Shulers with Ellen Johnston and Jack Gaughen Realtor acting as the realtor on behalf of the sellers at time of closing. 9. Boyles further allege that prior to the purchase of the home they received a report from Kellog Environmental Services as to the presence or absence of termite infestation in the premises. 10. Count I of the Complaint seeks damages from Shulers alleging fraud based upon false representation of material fact to the transaction between the parties. 11. The Complaint alleges the transaction involved a sales agreement entered on or about June 4, 1991 (Complaint, paragraph 6) . 12. The Complaint further alleges that the closing of the sale of the residential property occurred on July 31, 1991 (Complaint, paragraph 7) . 13. Plaintiffs allege that at the time of closing, Shulera told Plaintiffs there had been previous insect damage to the garage door, the premises and northwest basement window sill, but that the 2 a. bodily injury; or b. property damage, 18. The policy does not provide coverage, as the allegations in Plaintiffs Complaint do not constitute an "occurrence" and do not constitute an "accident" pursuant to the definitions of the policy. 19. The Boyles' Complaint does not allege damage to tangible property. 20. The damages recoverable by this action do not constitute "property damage" as defined by the policy. 21. The policy also excludes coverage as follows: 1. Coverage B-personal Liability and Coverage r- Medical Payments to Others do not apply to bodily injury and property damages a, which is expected or intended by the in.ured, The policy further excludes coverage as follows: 2, Coverage B-Per.onal Liability, does not apply to: b. property damage to property owned by the in~uredl 22. Coverage for the allegations in the Boyles' Complaint ie excluded by the policy as the gravamen of the Complaint ie intentional conduct on behalf of the Shulers. 23. To the extent the Boyles' Complaint alleges property damages to the property while it was owned by the insured, coverage is excluded by the policy. 4 Exhibit A ( MICHAEL 3. BOYL! and TANYA BOYL! , IN T!lE COURT 0.. COMMON "LEAS : YORK COUNTY, i'ENNSYLVANIA "laintuta v, NO, 95 SO 2304 01 JAY A. SHULER and HELEN D. SHULER, JACK GAOGBEN REALTOR, !LUN JOIDISTON, ULLOGG ENVIRONMEN'l'AL SERVICES, INC" Defendants CIVIL ACTION - LAW JURY TRIAL DEMANDED COMPLAINT The Plaintiffs, Michael 3. Boyle and Tanya Boyle, by and through counsel, Mirin , 3acobson, tile th~s Complaint against the detendants and state as follows: 1. The Pla~ntitfs, Michael 3. Boyle and Tanya Boyle, are adult individuals residing at 125 Conley Lane, Etters, York County, Pennsylvania 17319. 2. The Defendants, Jay A. Shuler and Belen D. Shuler, are adult individuals residing at 407 Allendale Way, Camp Bill, Cumberland County, Pennsylvania 17011. 3. The Defendant, Jack Gaughen Realtor, is the registered fictitious name of Jack Gaughen, Inc., a Pennsylvania corporation, with offices located at 1513 Cedar Cliff Drive, Cpmp Bill, . ~ Cumberland County, Pennsylvania 17011. 4. The Defendant, Ellen Johnston, is an adult individual residing at 1028 Drexel Hills Blvd., New Cumberland, Cumberland County, Pennsylvania 17070. At all times relevant to this Complaint, Ellen Johnston acted as a licensed real estate agent under the employ of Defendant, Jack Gaughen Realtor. ( r 5. The Oefendant, Kellogg Environmental Services, Inc. is ennsylvania Corporation with its principal place of business Iteo:i at allS Anthony Orive, Kechanics.burq, Cumberhnd County, ,eylvania 17055. d. On or about June " ,1 -' J.'~' I 4, 1991, the Plaintiffs entered a sale tement to purchase residential real property located at 125 ley tane, Etters, York County, Pennsylvania from the Cetendants, . A. Shuler and Belen O. Shuler. The .ale agreement contained a i infestation addendum. A copy of the sale agreem~nt with the I infestation addendum is attached hereto as Exhibit "A." 7. The closing on the sale of the residential real property ,ted at 125 Conley Orive, Etters, York County, Pennsylvania from Defendants, Jay A. Shuler and aelen o. Shuler, to the .ntiffs, by Oe.d of the same date, a copy of which is attached ;to as Exhibit "B", took place on July 31, 1991. -pO ____ a. Oefendant Ellen Johnston of Jack Gaughen Realtor acted as tor on behalf of the sellers at the closing. 9. At the time of closing, the sellers and Ellen Johnston ed to the Plaintiffs that there had been previous inse7t damage t. :he garage door of the premises and the northwest "basement. owsill, but that the damage had been repaired and that there no other insect infestation or damage to the premises. 10. At the time of closing, the sellers and their real estate t, Ellen Johnston, Dresented to the Plaintiffs a report from Jefendant, Kellogg Environmental Se=vices, Inc. dated July 11, 2 c {" 1991, in which it wa. .tated that the botto~, right side ot the garage door had been in.pected due to previou. termite inte.tation. The report indicated that the damaged area had been treated and th~ area repaired. The report stated turther that "no structural t~eat wa. identUied to the property." A copy ot the report trom Ke~10g9 Environmental Service., Inc. i. attached hereto as Exhibit .c. . 11. Both the verbal .tatem.nt. of CetendantsJay A. Shuler, Selen D. Shuler and IUlen John.ton, and the written report. ~t Kellogg Environmental Services, Inc. , to the etfect that the premises were tree ot any insect intestation or damage at the time ot the .ale, induced the Plaintitts to believe that these repre.entations wer~in t ~o t. l2. On or abo April 16, 1995 the door sill to the tron entrance of the Plaintitfs in replacing the premises discovered that there was exten.ive termite damage to the door frame and the floor in the foyer. . 13. Upon further inspection of the premises, extensive termite damage was discovered to the living room, master bedroom, kitchen and foyer areas of the premises. . t .~ . .. 14. A subsequent termite inspection of the premises revealed extensive evidence of prior termite activity throughout the residence, but no present termite activity, 15. The Plaint! ",..--. the premises up~~pril 16, knowledge of termite activity in ad not engaged the services ---- J " .'~ . )~\:~' . ___......... .........___~_ ....H~__~:-.._ c ( ot a pest control tirm at any time during their possession ot the premises. Accordingly, the Defendant's, Jay A. Shuler and Belen D. Shuler, Ellsn Johnston and Jack Gaughen Roaltor, knew or sho~ld have known ot the extensive termite damage to the premises at the time ot closing on the sale to the Plaintitts. l6. Detendants Jay A. Shuler, Belen D. Shuler, Ellen Johnston and Jack Gaughsn Realtor tailed to'disclose to Plaintitfs the tact of previous tsrmite intestation throughout the residence or the damage cau.sd by that infestation to the premises. 17. The termite damage to the premises is in excess ot.... $30,000.00. - -- COUNT 1 - FRAUD JAY A. SaUUR, BELEN D. S~ 18. The averments of paragraphs 1 through 17 are incorporated herein by reference as though set forth fully and at length. 19. Defendants Jay A. Shuler, Belen D. Shuler, Jack Gaughen Realtor and Ellen Johnston knew or should have known of the extensive termite infestation and damage to the premises before the date of closing on the sale agreement with the Plaintiff~. , 20.. _.. The --Detendants 'representations to - Plaintiffs.i>that the . . only insect damage to the premises was to the right side of the garage door and the northwest basement windowsill, and that there was no other insect damage to the premises was a false representation of a fact material to the transaction between the. parties. 4 c ( 21. The Plaintiffs relied upon the Defendants' tals. representations with respect to the extent ot the termite intestation and damage to the premises. 22. A. a result of the Oetendants' mi.representations and the Plaintitt's reliance thereon, the Plainti!t's suttered damages in axces. ot $30,000.00. WHEREFORe, the Plaintifts, Michael J. Boyle and Tanya Boyle reque.t this Honorable Court to find in their favor against the Oefendants, Jay A. Shuler, Helen D. Shuler, Jack Gaughen Realtor and Ellen Johnston, and to award them damages fn excess of $30,000.00. COUNT II - NEGLIGENCE AGAINST KELLOGG ENVIRONMENTAL SERVICES, INC. 23. The averments of paragraphs l-17 are incorporated herein by reference as though set forth fully and at length. 24. On or about July 11, 1991, Defendant Kellogg Environmental Services, Inc. issued its report that the premises had been inspected and that the only insect damage to the premises was to the right side of the garage door which had been previously treated for termites. The report stated that the dOo, had been ;," repaired. The report stated further that "no structural =threat was identified to the property." 25, The Defendant, Kellogg Environmental Services, Inc., negligently performed its inspection of the prelllises for wood infestation and insect damage by failing to discover the extensive termite damage throughout the premises. 5 c 26. As a direct and proximate result of Defendant Kellogg Environmental Services, Inc.'s negligence, Plaintiffs suffered damages in excess of $30,000.00. WHEREFORE, the Plaintiffs, Michael J. Boyle and ~anya Boyle, requ.st this Honorable Court to find in their favor and against Ke1logg Environmental Services, Inc. and to award them damages in exce.. of $30,000.00. Respectfully submitted, KIRIN , JACOBSON DATED I 7- 2(:,-95 By:4.a~ Leslie David Jacobson Attorney 1.0. No. 52673 M. Peter Harer Attorney 1.0. No. 65604 Attorneys for Plaintiffs 8150 Derry Street Harrisburg, PA 17l1l-5260 (717) 561-l5l5 boyle,cpl . I .~. . 6 . ...._......~.......____ ~..___4..__....____-__,..._.. c ( WOOD INFESTATION _ ADDENDUM TO AGREEI"IEl'lT OF SALE Ii. f. j..' ~ I I "fj,. .." ,,,"~' ,,-:-:[; , h I I \9/; I RE: PROPERTY i1- SEu.E1lS: ~ iI. 'I. - BU'YEJIS: 'J;-' - 'f DATE or AGREEMENl' !..ofd-19 MENT DATE _19_ SALE PRICE S J .../ \-:.~ \, Wbhill1lAetn days 0(11I. uccudon o(lhis ~,""m.nl. S.ller shall. al S.ller's "'peQSl, order Cram a rcputabl. Pal Conaol O~r cmUied by thl Pennsyl.enJa Oc;>UlIIIInl o( ApicUIN'" a wrill.n .Wocd DcsuoyinllaSlCllatatalion and Raultanl DlII1Ia.. a.pon- and mall plalnl Jaid RJlCIn 10 the 8uY'r on or blfon scalemenl. Sucb rcpon ill 10 provide lilac III Uupcclion of III. ....diIy viJibll and _1Ile &IUJ o( all SQ'lM:lWa wichili 11I1 pl'll\lCRY lImilJ Iw been mad.e sadJflClDry III IIId in ccmpllanccwhb: appllc:lblc laws, _rcp.. Ind.!cndlalwlilllclollJ. and/or Fed.nlll1JUtil1lllld Ciuaraarccinl "&lacy ...quimnlnlJ, it Iny. 2. U III. lnJpcccion .........u evidollCl o( accIw intatalion(J). previoUJ intcslalion(s) and/or taUltaJU dallll", wbicb bOJ nOI ban comcced. Soller lpes. II S.ller', ..,pi.... 10 bl.. thl suu s) anced for sucb intcscadon ucepliq: ;1 I S.Uer JIc.tII upon receipl o( said RJlCIn. prompdy advise Buyer in wrililll o( sucb condilion(s) IIld maD .vailable 10 Buyer all documenlJ and dr:lwlnlS received Iiom the Pal Conuol OpcnlOr. ,hOwinlllllloc:llion a{Visibll cvidenc. aflnlcstation(J} Ind/or d&Jllap. . J. A1 thl lim. of nodClIO tho Buyer u specified abo.e in p.r. .2.. S.Il.r shall alJo advis. wb.cher or nOI the <<sullanl dama.. will be ..palled. al S.Il.r's UpllU'" prior 10 Slalemenl. If S.llor .lcc:J nOllO '.;lalr th.said dllllaje. if .ny. Buy.r sban ha.. thl oplion of a"opdnl chI propeny willi chI d.fcc:J re..al.d by tho inspcclion. wlthoulabat.menl ofprice.or blins <<paid .lImonics plid by chI Buyer on accounl oreh. purchau price. lOlllbor wlch Buy.r's Up'lU.S. ilany. a.s may be iacumd or providld ror undor thlrcrmJ of ch. AlRCmenl o( Sal... illCludins bUI nOllimircd 10 Ihe following: A. CanClllation fel ror lide insur:lnce or absen" fe. far sc:llChin. tid.. 8. Cancell.lion re. or bind.. cha,.,. ror lire i",unnc. wlch urcnd.d caV."'I. and/or naad ilUunnc: if any. C. Appr:lual r.... credll rc;>0" charps. and/or su,.,.y casu. In ,hI lalllr ...nl. th... shall b. no iu"horliabUiry or obligation an .ilh.. of ,h. pani., hC'IO. aad th~ a..um.nl or sal. shall becoml NULL AND VOID. Buy.r sh.lI notify SeU.r in writing ofhu .!ccuan "';Ihin fivCl S} days afrcr 8uy., recei.., Sell.r's nodet of refUJal 10 <amC! thl canditian,s~ All olber !emu .nd conditiolU of the s.ill a!JR:m.nlsh.U r.main unch.ng.d and in full fa... .nd .tT.... c -:-: ..""'.," , .., . i d /:1'/' I . '-'.,:- - -" .; ". ,..;'-- ....._...::.,.--,..~..'..... .._::s';' /~ ~~_..~--:-. ... ~y/;/ "'!UOw: "CUlT, "HI(; ""'I", ILUI....Ollllrc..c:u. ./ Bt.."YER Bl:"YER SEllER. SEllER.' , '/~f '. '. ; '/: ..' / t/ ~;"". :' /.. ~y.. ....- "',--'/ . ... . I WlT.'/ESS WlT.'/ESS WlT.'/ESS .~GENT r- '1' ,'!.:.,'. . , : IS) (5) (5) (S) ~.-' :",::- , .' , .,. .... ....:-.r - I CC"IIS. WMlfl; SILU" CCI.O C~"H: .-uyt..'s ...r md ell 'Iem"'G "". -------- -------.... -" . ., , c 02lG 0251, ( ::J .., ~. .... ... .- I Ctrtlty This Docwn.nt To Be n-n1od In York County, PI. ,......... ...~.'....~,~.~~.. .t.,,).,' 't:.J........... I." (" 't;~..,: 'I;.~' r'~_ ,!!: 1~...'.. -. :.a: \ ;..~~'.~~.... ; '..1 .1:.._ '{.... ..Pr~,1.~. ............. I!f! .. ~ a iii :i "2 ~ ~ ~ 1 .. f1a . == ~ c a iii .. .. .. ., >- !-o Z < ~ c::: i ~ ., ~ IOl .. is ~ '" , .,' . . C'-'MMCNWfALTII OF ..tl'III":'ilW,1 Ul. .", 1i11~-.KIMt...1 ,-., 1C~"t':llIt ~:;:;...;'~~ "U- (~lt~~f' 1;-8 .~- ~ ~11111' I,., ~~...., to "":I~~. ~ __ I . COUJlONIVJ;,lLTH 01' PSNNSYLVAN1,l }u. C4'UftCV 01 RECORDED Oft jAil _.____ dav 0/ ---.---- A. D. U__. i" tA, R,cord,r'. tJdl" 01 tA. ..altl Coune". in Duel BOOM , Vo~ __.__, Pogo GivaI under mv Alina and tAt no' 01 tA. .aiel odic.. tA, dAlI above ","U,", __..__._..._._.____. R,c.o,utr. ,.' , u.__ '" ......,..' .._."'.__.__,' Exhibit B - --' O$S88-o0.4~ 5 791 99 SVSTEI\ HAR 11/16/90 HC)I/IlEGI elN West American 1nS&lf.anc~ COmpanY.. ,. - ....... .... . '--' <-' lie ",,"" '!\4IlD ~IItA1'. IWiIlTCIl QIlIO 4101' .. POLICY PERIOD llDMlO'oVtP 1811iWAl. CI81lflCAtI DHW 1o"519\-C ST. faM "'41N' ;- ...;.;".' .-.;,; ~'m~~ '.. - .. _. -.-.'- -. _..~ ...... TO -.. l'OLlC"t MQ. 01-07-91 01-07-92 elME VIAll. A~T TiL.EPHOIlE I (711) 766-0241 II $84.500 C.PERSONAL PRDPERTl $59.150 a.LOSS OF USE . S 16.900 I f. "'1lSO#ll~ LI.AaILITY ~ OCOllllIC& 5l00,OOO lulAl. f . MSOtCAI. 'A'tUINT TO 0_ .- -.. $1.000 A.llWELLING PREl'l Ul\ $175.00 I 11&.1. PRGPIJI!' CO'lPACI. 'h c.sa OJ ",oss ~ covP QHL.V TriAT,ART Q' n<< .. OWJllHl ClUlUc:111t.1 ST"TtD. PREI\11lII $9.00 5184,00 ~T tD~Tla'" 0 .alUMS WlI..I. II' jUa$T'1'\ITID AT IA'M ~AI. DAn 'OA 11'&1'" IiDlfle., If MVISID QUllttHG 114 .....,,'OUS ,QLIC"f' ,..... I dO-2 04- 10 ~g:~~~~ g~:t 1 flO- 11 Og- .e- 1 06- * pc;- 6l 10- $150 FL.AT A':L PER I L5. ..... ..... "OT ..,,01 TOWN VIM ~ '......IS .0_ 33 7 09 11 :QldTIll.C1,.... FRA)\! . NEW )lOI\E DISCOUNT: - Olt COVERAGE A HAS BEEN INCREASED FROX 581.;00 TO RlFL.EtT TKE INCREASED COST OF CONSTRUCTION IN YOUR AREA. Q:WUWIO POll WII6IClIf .. Llllllt QII uAIlU" . ....- SI.l&lifc;T TO .... CQMItnolll 01 MIl ..n ~~..___ ~..:,;t SCM"l'NIl'I' -- Homeowners 2 Broad Form Ed. 4-84 @ AGREEMENT We will prov,de the ,nsurance described ,n thiS poliCY In return for the prem,um and compliance w'th all applicable prov'Slons of th,S pOlicy DEFINITIONS In thiS pOliCY. 'you' a~d 'your' refer to the 'named Insured" shown ,n the Declarat,ons and the spouse ,f a res,dent of th. same household "We.' 'us' and 'our' refer to the Company prov,ding thiS insurance. In addition. certain words and phrases are defined as followS: 1. "bodily injury" means bodily harm. Sickness or dls.ase. 'ncludlng required care. loss of s.rVlces and d.ath that results. 2. "bu.iness" includes trade. profeSSion or oc- cupation 3. "In.ured" means you and reSidents of your household who are: a your relatives; or b, other persons under the age 01 21 and ,n the care of any person named above. Under Section II. "In.ur.d" also means: c. w,th respect to animals or watercraft to which thIS policy applies. any person or organization legally responSible for these animals or watercraft wh,ch are owned by you or any person Included ,n 3a or 3b above. A person or organlzat'on us'ng or hav:ng custody of these animals or watercraft ,n the cours. of any bu.iness or Without consent of the owner IS not an in.ur.d; d With respect to any vehicle to which thiS policy applies; 11) persons whll. engaged In your em- ploy or that of any person ,ncluded ,n 3a or 3b above; or 12) other persons uSing the vehicle on an insured location With your consent 4. "Insured location" means: a the r..idenc. premises; b. the part 01 other premise,. other struc- tures and grounds used by you as a resI- dence and: 11) which 15 shown ,n the Declarat,ons: or (2) which IS acqUired by you dUring the pOliCY period for your use as a resI- dence; c. any premises used by you ,n connection With a premises in 4a or 4b above; d. any part of a premises; (1) not owned by an Insured; and (2) where an insured is temporarily re- Siding; e. vacant land. other than farm land. own.d by or rented to an Insured; f. land owned by or rented to an Insured on which a one or two family dwelling is be- ing built as a residence for an In.ured; 9- ,ndlvldual or family cemetery plots or burial vaults of an In.ured; or h. any part of a premises occasionally rented to an Insured for other than busi- nes. use. 5. "occurr.nce" means an accident, including exposure to conditions. which results. during the policy period. in: a bodily Injury; or b. prop.rty damage. 6. "prop.rty damage"means phYSical injury- to, destruct,on of. or loss of use of tangible property. 7. "r.sidence .mploye... means: a an employee of an In.ur.d whose duties are related to the malntenanc. or use of , the residence pr.ml..., including ""- household or dom.stic services; or Page 1 of 16 COPYrIght. Insurance Serv'ces Office. Inc.. 1984 HO-2 Ed. 4-84 o. one wl'10 performs s,molar aut,as alse- Amere not related to the business 01 an insured. 8. "residence premises" means: a. the one family dwellil'1g. otl'1er structures. and groundS; or b. that can of any otl'1er bUlld,ng. Nnera ./ou reside and wl'1lCI'1 '5 Sl'1own as the "reSidence premises" In tne Declarat'ons. "ReSidence premises" also means a two 'amol'l :lwe'ling wnere you reSide In at least one 01 1M fam,ly un,to and wl'1,ch '5 shown as tne "residence premISes" ,n the Declara- tIons. SECTION I - PROPERTY COVERAGES - COVERAGE A - Dwelling We cover' 1. the dwelling on the residence premises shown In the Declarations. ,"cludlng struc- tures attacl'1ed to the dwelling; and 2. mater'als and supplies located on or next to the residence premises used to construct. alter or repair the dwelling or other structures on the residence premises. Th,s coverage does not apply to land. Includ,ng land on wn,cl'1the dwelling '5 located. COVERAGE B - Other Structures We cover other structures on the residence premises set apart Irom the dwelling by clear space. ThiS ,ncludes structures connel:ted to the dwelling by only a fence. utility line. or s,mllar connect' on. ThIS coverage does not apply to land, includong land on wh,ch the other structures are located We do not cover other structures: 1. used ,n whole or ,n part for busineSS; or 2. rented or held lor rental to any person not a tenant of the dwelling, unless used solely as a provate garage. The limit of liability for thiS coverage woll not be more than 10% of the limit of liability that applies to Coverage A. Use of thIS coverage does not re- duce the Covsrage A limit of liability. COVERAGE C - Personal Property We cover personal property owned or used by an insured wl'1l1e ,t '5 anywhere in the world At your request. we Will cover personal property owned by 1. others while the property '5 on the part 0 I the residence premi"es occup,ed by an Insured: 2. a guest or a residenclI employee, while the property's In any reSidence occupied by an insured. Our I,mlt 01 liability for personal property usually located at an insured's reSidence. other than th.. residence premises, IS 1 O~. of the limit of liability for Coverage C or 51000. wl'1lcl'1ever '5 greater. Personal property In a newly acqUired pronc'pal res,dence '5 not sub lect to thiS limitation for the 30 days Irom the time you begin to move the property Inere. Special Limits of Liability. These limits do not Increase tne Coverage C lim.t olliab,lity. The spe-' c'alllmlt for eacn numbered category below,s the total limit lor eacl'1 loss for all property ,n that category 1. 5200 on money. bank notes. bullion. gold oth- er than goldware. Silver other than Silverware. platinum. co,ns and medals. 2. 51000 on securot'es. accounts. deeds. eVI- dences 01 debt. letters 01 credit. notes other than bank notes. manuscropts. passports. tickets and stamps. 3. s 1000 on watercraft. Including their tro'!ers. lurnosh,ngs. equipment and outboard motor.. 4. s 1000 on trailers not used With watercraft 5. S 1000 on grave markers. 6. s 1 000 for loss by theft of jewelry. watches. furs. precIous and semi-precIous stones. 7. s2000 for loss by theft of firearms. 8. 52500 for loss by theft of silverware. silver- plated ware. goldware. gold-plated ware pnd pewterware. This Includes flatware. hollowware. tea sets. trays and trophies m~t<... of or ,ncluding sliver. gold or pew\e:r. 9. s2500 on property. on the residenco ~'''':'' ises, used at any time or in any manner fOI "., business purpose. 10. 5250 on property. away from the residence premises, used at any time or in any manner for any business purpose. HO-2 Ed 4-84 Copyroght. Insurance Services Off,ce. Inc.. 1984 Plge 2 of 1\5 Property Not Covered. We do not cover: 1. articles separately desCribed and speclf,cally Insured ,n th,s or other ,nsuranc.e. 2. animals. birdS. or fiSh; 3. motor veh,cles or .111 other motOrized land conveyances. . Th,s Includes: a equ,pment and accessones; or b. any dev,ce or ,nstrument for the trans- m'tt,ng. recording. receiving or repro- duct'on of sound or p,ctures wh,Ch 's op- erated by power Irom the electncal system of motor vehicles or all other motorized land conveyances. onclud,ng: 111 accessories or antennas; or 12) tapes. wires. records. discs or other media for use With any such dev,ce or ,nstrument; while ,n or upon the veh,cle or convey- ance. We do cover veh,cles or conveyances not subject to motor vehicle reglstrat'on wh,ch are: a. used to service an Insured's reSidence: or b. des'gned for assisting the handicapped; 4. aircraft and parts. Aircraft means any contri- vance used or deSigned for flight. except model or hobby aircraft not used or des'gned to carry people or cargo; 5. property of roomers. boarders and other tenants. except property 0 f roomers and boarders related to an Insured; 6. property in an apartment regularly rented or helo for rental to others by an Insured; 7. property rented or held for rental to others off the residence premises; 8. a books of aCCount. drawings or other pa- per records; or b. electronic data processing tapes. wires. records. discs or other 50 ftware media; conta,n,ng business data But. we do cover the cost of blank or unexposed records and media; 9. credit cards or fund transfer cards except as provided in Additional Coverages 6. COVERAGE D - Loss Of Use The Iim,t of liab,lity for Coverage D is the total limit for all the coverages that follow. 1. If a loss covered under" th,s Section makes that part of the residence premises where you reSide not fit to I,ve ,n. we cover. at your cho,ce. 8,ther of the follOWing. However. ,I the residence premises 15 not your prinCipal place of res,dence. we w,lI not prOVide the opt'on under paragraph b. below a. Additional Living Expense. mean,ng any necessary ,ncrease In Itv,ng expenses ,n- curred by you so that your household can malnta,n ,ts normal standard of Iiv,ng; or b. Fair Rental Value, mean,ng the fair rental value of that part of the residence prem- Ises where you res,de less any expenses that do not cont'nue while the premises's not f,t to live In: Payment under a or b. Will be lor the shortest time reqUired to repair or replace the damage or. ,f you permanently relocate. the shortest time reqUired lor your household to senle elsewhere. 2. If a loss covered under th,s Section makes that part of the resldenoe premises rented to others or held for rental by you not fit to live In. we cover the: Fair Rental Value. mean,ng the fair rental value of that part of the resldenoe prem- Ises rented to others or held for rental by you less any expenses do not continue wh,le the prem,ses is not fit to live in: Payment will be for the shortest time reqUired to repair or replace that part of the premises rented or held for rental. 3. If a clv,l authority prohibits you from use of the residence premises as a result of direct damage to nelghbonng premises by a Penlln- sured Against ,n this policy. we cover the Ad- ditional Living Expense or Fair Rental Value loss as prOVided under 1 and 2 above for no more than two weeks. The periods of t,me under 1. 2. and 3 above are not limited by expiration of this policy. . We do not cover loss or expense due to cancella- tion of a lease or agreement ADDITIONAL COVERAGES 1. Debris Removal. We Will pay your rea~on" able expense for the removal of: a debns of covered property if a Peril In- sured Against causes the loss; or b. ash. dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a build- ing. l Page 3 of 16 Copynghl. Insurance Services Off,ce. Inc.. 1984 HO-2 Ed. 4-84 This expense '5 ,ncluded ,n the limit of liability that applies to the damaged property If the amount to be paid for the actual damage to the property plus the debros removal expense 's more than the limit of liability lor the damaged property. an addlt,onal 5r. of that I,m,t of liability's available for debros removal expense. We w,lI also pay your reasonable expense for the removal 01 fallen trees from the resi- dence premises If: a. coverage IS not afforded under Addition- al Coverages 3. Trees. Shrubs and Other Plants for the perol cauSing the loss: or b. the tree '5 not covered by th,s policy; prOVided the tree damages covered property and a Perollnsured Against under Coverage C causes the tree to lal!. Our limit of liability lor thiS coverage w,ll not be more than s500 ,n the aggregate for anyone loss. 2. Reasonable Repairs. We w,ll pay the reason- able cost Incurred by you for necessary re- pairs made solely to protect covered prop- erty Irom luther damage ,I a Perol Insured Aga,nst causes the loss. ThiS coverage does not ,ncrease the limit of liability that applies to the property being repaired. 3, Trees, Shrubs and Other Plants. We cover trees. shrubs. plants or lawns. on the resi- dence premises. lor loss caused by the fol- lOWing Perols Insured Aga,nst Fire or lightning, Explosion. Riot or ciVil commotion. Aircraft. Vehicles not owned or operated by a reSident of the residence premises. Vandalism or malicious mischief or Theft The Iim,t of liability for thiS coverage w,lI not be more than 5% of the limit of Iiab,lity that applies to the dwelling, or more than s500 for anyone tree. shrub or plant We do not cover property grown for business purposes. This coverage is additional insurance. 4. Fire Department Service Charge. We Will pay up to s500 for your liability assumed by contract or agreement for lire department charges incurred when the fire department '5 called to save or protect covered property from a Peril Insured Aga,nst We do not cover fire department service charged if the prop- erty is located Within the lim,ts of the city. mUnicipality or protection district furnishing the fire department response. Th,s coverage is addit,onal insurance. No de- ductible applies to thiS coverage. 5. Property Removed. We ,nsure covered property against direct loss from any cause while being removed from a premises endan- gered by a Perol Insured Against and for no more than 30 days while removed ThiS cov- erage does not change the Iim,t of liability that applies to the property he,ng removed 6. Credit Card. Fund Transfer Card. Forgery and Counterfeit Money. We Will pay up to s500 for: a the legal obligation of an Insured to pay because of the theft or unauthorozed use of cred,t cardS Issued to or registered ,n an Insured's namd; b. lOSS resulting from theft or unauthOrized use of a fund transfer card used for de- pos,l, w,thdrawal or transfer of funds. Issued to or reg,stered in an Insured's name; c. lOSS to an insured caused by forgery or alteration of any check or negotiable in- strument; and d. loss to an insured through acceptance in good faith of counterfeit United States or Canadian paper currency. We do not cover use of a credit card or fund trans fer card: a by a reSident of your household; b. by a person who has been entrusted With either type of card: or c. if an Insured has not completed with all and conditions under which the cards are issued All loss resulting from a series of acts com- mitted by anyone person or in which anyone person is concerned or implicated Is consid- ered to be one loss. We do not cover loss arising out of buslneSll use or dishonesty of an Insured. This coverage is additional insurance. No de- ductible applies to this coverage. Defense: a We may investigate and settle any claim or suit that we decide is approprlato. 0",. duty to defend a claim or suit ends v-. I " ,1 the amount we pay for the loss equals (.,,, Iim,t of liability. b. If a suit is brought against an Insured for liability under the Credit Card or Fund Transfer Card coverage. we will provide a defense at our expense by counsel of our choice. HO-2 Ed 4-84 Copyroght. Insurance Serv,ces Office. Inc.. 1984 Page 4 of 16 c. We have the option to defeno at our ex- pense an In.ured or an Insured's bank against any SUit for the enforcement of payment under the Forgery coverage. 7. Loss Assessment. We Will pav up to s 1 000 lor your share of any 1055 assessment cnarged dUring the policy period against you by a corporation or assoclat'on of property owners. ThiS only applies when the assess- ment '5 made as a result of each direct 1055 to the property. owned by all members collectively. caused by a Perollnsured Aga'nst under Coverage A - Dwelling. other than earthquake or land shock waves or tremors before. dUring or after a volcaniC erupt,on. ThiS coverage applies only to 1055 assess- ments charged against you as owner or tenant of the rssidenc. pr.ml.... We do not cover loss assessments charged aga'nst you or a corporation or assoclat'on of property owners by any government body. 8. Collapse. We ,nsure lor direct phys,cal loss to covered property InvolVing collapse of a building or any part of a buold,ng caused only by one or more of the follOWing: a Perils Insured Against ,n Coverage C - Personal Property. These perils apply to covered bu,lding and personal property for 1055 ,nsured by thiS additional cov- erage; b. h'dden decay. c. hidden ,nsect or verm'" damage; d. we'ght of contents. equipment. animals or people: e. weight of ra,n which collects on a roof. or f use of defective material or methods ,n construction. remodeling or renovat,on ,f the collapse occurs dUring the course of the construction. remodeling or renova- tiOn. Loss to an awn,ng. fence. patio. pavement. sWlmm,ng pool. underground p'pe. flue. dra,n. cesspool. sept'c tank. foundation. reta,n,ng wall. bulkhead. pier. wharf or dock '5 not ,n- cluded under ,tems b. c. d. e. and f unless the 1055 '5 a direct result of the collapse of a bUilding. Collapse does not ,nclude settling. crack'ng. shrlnk'ng. bulging or expans,on. ThiS coverage does not increase the limit of lIab,lity applYing to the damaged covered property. SECTION I - PERILS INSURED AGAINST We insure for direct physical loss to the property deSCribed in Coverages A. 8. and C caused by a peril listed below unless the loss '5 excluded in Section I - ExclUSions. 1. Fir. or lightning. 2. Windstorm or hall. This peril does not include loss to the inside of a building or the property contained in building caused by rain. snow. sleet. sand or dust unless the direct force of Wind or hail damages the building causing an open'ng in a roof or wall and the rain. snow. sleet. sand or dust enters through this opening. This peril includes loss to watercraft and their trailers. furnoshings, equipment. and outboard motors. only while inside a fully enclosed building. 3. Explosion. 4. Riot or civil commotion. 5. Aircraft, including self-propelled missiles and spacecraft 6. Vehicles. This peril does not include loss to a fencE' driveway or walk caused by a vehicle ownl or operated by a resident of the residence premises. 7. Smoke, meaning sudden and accidental dam- age from smoke. This peril does not include loss caused by smoke from agricultural smudging or indus- trial operations. a. Vandalism or mallciou. mischief. This peril does not include loss to property on the residence premises if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant l Pag. !l of 16 COPYright. Insurance Services Office, Inc, 1984 HO-2 Ed 4-84 9. Theft. ,nciudlng attempted theft and loss of property from a Known place when ,t ]5 likely that the property has been stolen. ThIS pen I does not ]nclude 1055 caused bv theft a. committed by an insured: b. ]n or to' a dwelling under construct,on. or of matenals and supplies for use ]n the construction until the dwelling ]5 finished and occup,ed; or c. Irom that part 01 a residence premises rented by an Insured to other than an in- sured. ThiS penl does not ,nclude loss caused by theft that occurs off the residence premises of: a property while at any other reSidence owned by. rented to. or occup,ed by an Insured. except while an Insured is tem- porarily liVing there. Property of a student whO js an Insured is covered while at a res,dence away Irom home ,f the student has been there at any t,me dunng the 45 days Immediately before the loss; b. watercraft. and their furnishings. equIp- ment and outboard motors; or c. trallers and campers. 10. Breakage of glass or safety glazing mate- rial wh,ch is part of a building, storm door or storm Window. This peril does not include loss on the res!- dence premises ,f the dwelling has been va- cant for more than 30 consecutive days im- mediately before the loss. A dwelling being constructed is not considered vacant 11. Failing objects. This peril does not include loss to the inside of a building or property conta,ned in the building unless the roof or an outside wall of the building is first damaged by a falling ob- ject Damage to the falling object 'tself is not included 12. Weight of Ice, snow or sleet which causes damage to a building or property contained in the building. This peril does not include loss to an awnong, fence. patio. pavement. swimming pool. foundat,on. retalnong wall. bulkhead. pier. wharf. or dock. 13. Accidental discharge or overllow of water or steam from w'th,n a plumbing. heating. air condltlonong or automatic fore protective spnnkler system or from Within a household appliance. We also pay for teanng out and re- plac'ng any part of the bUilding on the res!- dence premises necessary to repair the sys- tem or appliance from wh,ch the water or steam escaped. ThIS penl does not ,nclude loss: a to a bull ding caused by constant or re- peated seepage or leakage over a period of week s. months or years. b. on the residence premises. if the dwell- ing has has been vacant for more than 30 consecutive days immediately before the loss. A dwelling be,ng constructed is not cons,dered vacant c. to the system or appliance Irom which the water or steam escaped. d. caused by or resulting from freeZing ex- cept as prov'ded ]n thll peril of freeZing below; or e. on the residence premises caused by aCCidental discharge or overflow which occurs off the residence premises. 14. Sudden and accidental tearing apart. crack- 1ng. burning or bulging of a steam or hot water heating system. an air conditioning or automatic fire protective sprinkler system. or an appliance for heating water. This peril does not include loss caused i.Jy or resulting from freezing except as prov'cJuo ,n peril of freez,ng below. 15. Freezing of a plumbing, heating, air condl- tionong or automatic fjre protective sprinkler system or of a household appliance. This peril does not include loss on till' resi- dence premises while the dwelling is vacanl. unoccupied or being constructed. unto", ." have used reasonable care to: a. ma,ntain heat in the building; or b. shut off the water supply and drain the system and appliances of water. 16. Sudden and accidental damage frol'll 8rH Ii' cially generated electrical current. This peril does not include loss to ~ '" 'C' transistor or similar electronic componer,\ 17. Volcanic eruption other than 1055 caused by earthquake. land shock waves or tremors. HO-2 Ed 4-84 Copyright Insurance Services Office, Inc.. 1984 Page 6 of 16 SECTION I - EXCLUSIONS We do not ,nsure for loss caused directly or ,n- directly by any of the following Such loss '5 ex- cuded regardless of dny other cause or event contributing concurrently or ,n any sequence to the loss. 1. Ordinance or Law, mean,ng enforcement of any ordinance or law regulat,ng the construc- tion. repair. or demolil,on of a bu,ld,ng or oth- er structure. unless specifically provided un- der thiS policy. 2. Earth Movement. mean,ng earthquake ,n- cluding land shoCk waves or tremors before. dUring or after a volcanoc erupt,on; landslide: mud flow; earth s,nklng. rls,ng or shlfllng; un- less direct loss by: a fire; b. explos,on; or c. break~ge of glass or safety glaZing ma- terial which IS part of a bUilding. storm door or storm w,ndow; ensues and then we Will pay only for the en- suing loss. This exclusion does not apply to loss by theft 3. Water Damage, mean,ng: a flood. surface water. waves. tidal water. overflow of a body of water. or spray from any of these. whether or not driven by Wind b. water wh,ch backs up through sewers or dra,ns; or C. water below the surface of the ground ,ncludlng water wh,ch exerts pressure on or seeps or leaks through the bu,lding. Sidewalk. driveway. foundat,on. sw,m- m'ng pool or other structure. Direct lOSS by fire. explos,on or theft result- Ing from water damage 's covered. 4. Power Failure, mean,ng the failure of power or other utility serv,ce ,f the failure takes place off the residence premises. But. if a Perollnsured Aga,nst ensues on the residence premises. we w,ll pay only lor that ensuing loss. 5. Neglect. mean,ng neglect of the insured to use all reasonable means to save and preserve property at and after the time of 1055. 6. War. ,ncludlng undeclared war. Civil war. in- surrection. recell,on. revolution. warlike act by a military force or m,litary personnel. de- struction or se,zure or use lor m,litary pur- pose. and includ,ng any consequence of any of these. D,scnarge of a nuclear weapon Will be deemed a warl,ke act even If accidental. 7. Nuclear Hazard, to the extent set lorth in the Nuclear Hazard Clause 0 f Section I - Condi- t'ons. 8. Intentional Loss. mean,ng any 1055 arising out of any act committed: a. by or at the direct, on of an Insured; and b. With the intent to cause a loss. SECTION I - CONDITIONS 1. Insurable Interest and Limit of Liability. Even if more than one person has an insurable interest in the property covered. we will not be liable ,n anyone loss: a to the Insured for more than the amount of the Insured's interest at the time of loss; or b. for more than the applicable limit of li- ability. 2. Your Duties After Lon. In case of a 1055 to covered property. you must see that the fol- low,ng are done: a give prompt notice to us or our agent b. not,fy the police in case of loss by theft C. notify the credit card or fund transfE'r card company in case of loss under Credit Card or Fund Transfer Card cov- erage; d (1) protect the property from further damage; (2) make reasonable and necessary re- pairs to protect the property; and 131 keep an accurate record of repair expenses; e. prepare an Inventory of damaged per- sonal property showing the quantity. de- scriplion. actual cash value and amount of loss. Attach all b,lls. rece'pts and related documents that Justify the figures in the inventory; l Plge 7 of 16 Copyright. Insurance Services Office. Inc.. 19B4 HO-2 Ed 4-84 I as often as we reasonably require: ill ShOW the damaged property; ,2) prov,de US With records and docu- ments we request and permit us to make cop,es; and 13) submit to questions under oath and sign ~nd swear to them; g. send to us. w,th,n 60 days after our re- quest. your Signed. sworn proof of loss which sets lorth. to the best 0 f your knowledge and belief: 111 the time and cause of loss; \2) the ,nterest of the Insured and all others ,n the property ,nvolved and all liens on the property; 13) other insurance which may cover the loss; 141 changes ,n t,tle or occupancy 0 f the property dUring the term of the poli- cy; 151 speCifications 01 damaged build,ngs and detailed repair estimates; 16) the ,nventory of damaged personal p,'operty desCribed ,n 211 above; (7) rece'pts for additional liVing ex- penses incurred and records that support the fair rental value loss; and 18) evidence or affidaVit that supports a claim under the Credit Card. Fund Transfer Card. Forgery and Counter- feit Money coverage. stating the amount and cause of loss. place. after appllcatlor1 of deduct,ble and w,thout deduction for deprec,- allon. but not more than the least 01 the follOWing amounts: 'at the I,m,t of t,abllity under th,s policy that applies to the bUilding. .bl the replacement cost of that part of the bUilding damaged for like construct,on and use on the same premises; or Icl the necessary amount actually spent to repair or replace th~ damaged bUilding. 12) tf. at the time of loss. the amount of ,nsurance In thiS policy on the damaged build,ng '5 less than 80.,., of the full replacement cost of the bUilding ,mmediately before the loss. we w,lI pay the greater of the fol- tow,ng amounts. but not more than the limit 0 f liability under thiS policy that applies to the bu,ld,ng. lat the actual cash value of that part of the bu,ldlng damaged; or 'bl that proport,on of the cost to repair or replace. after applica- t,on 0 f deductible and without deduction for depreciation. that part of the bUilding dll/Tlllged. which the totalllT1ount of insur- ance In thiS policy on the damaged building bell'S to 80"- of the replacement cost of thp building. (3) To determ,ne the amount of insur- ance required to equal 80% of the full replacement cost of the building Im- mediately before loss. do not include the value of: lal excavations, foundations. pie,. or any supports which are below the undersurface of the lowest basement floor; ib) those supports in lal above which are below the surface of the ground inside the foundation walls. if there is no basemonl; and Icl underground flues. pipes. wirlll\' and drains. (4) We will pay no more than the aclUllI cash value of the damage unless: lal actual repair or replacement is compllote; or 3. Loes Settlement. Covered property losses are settled as follows: a (,) Personal property; (2) Awnings. carpeting, household appli- ances. outdoor antennas and outdoor equipment. whether or not attached to bUildings; and (3) Structurec that are not buildings; at actual cash value at the time of loss but not more than the amount required to re- pair or replace. b. Buildings under Coverage A or B at re- placement cost without deduction for depreciation. subject to the follow,ng. III If. at the time of 1055. the amount of insurance in this policy on the damaged building is 80.,., or more of the full replacement cost of the bUilding immediately before the loss. we will pay the cost to repair or re- HO-2 Ed 4-84 Copyright. Insurance Services Olfice. Inc.. 1984 Plge 8 (,f 18 !bl the cost to repaor or replace the damage IS both: II) less than 5~. of the amount of insurance ,n thIS policy on the bUilding; and Iii) less than 51000. 15) You may disregard the replacement cost loss settlement prov,s,ons and make claim under this pOilCI' for loss or damage to bUlld,ngs on an actual cash value baSIS. You may then make claim within 180 days after loss for any additional liability on a replace- ment cost baSIS. 4. Loss to a Pair or Set. In case of loss to a pair or set we may elect to; a. repaor or replace any part to restore the paor or set to ,ts value berore the 1055: or b. pay the r;lifference between actual cash value of the property before and after the loss. 5. Glass Replacement. Loss for damage to glass caused by a peril Insured Aga'nst will be settled on the basis of replacement With safety glazing materials when reqUired by or- dinance or law. 6. Appraisal. If you and we fall to agree on the amount of loss. either may demand an ap- pra'sal of the loss. In this event. each party Will choose a competent appraiser w,thln 20 days after receiving a written request from the other. The two appraisers will choose an um- pore. If they cannot agree upon an umpore Within 15 days. you or we may request that the choice be made by a judge of a court of record in the state where the residence premIses is located The appraisers Will sep- arately set the amount of loss. If the appraIs- ers submit a written report 0 f 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 umpore. A de- cision agreed to by any two w,ll set the amount of loss. each party will: a pay its own appraiser: and b. bear the other expenses of the appraisal and umpire equally. 7. Other Insurance. If a loss covered by this policy is also covered by other Insurance. we WIll pay only the proportion of the 1055 that the limit of liability that applies under this poli- cy bears to the total amount of Insurance covering the loss. 8. Suit Against Us. No action car1 be brought unless the policy prOVISions have been com- piled 'N,th and the action IS started w'th,n one year after the date of loss. g. Our Option. !f we give you written not,ce WIthin 30 days alter we receive your s'gned. sworn proof 01 loss. we may repa,r or re- place any part of the damaged property With like property 10. Loss Payment. We Will adjust all loss WIth you. We Will pay you unless some other per- son '5 named ,n the policy or '5 legally entitled to rece,ve payment Loss w,lI be payable 60 days after we receive your proof of loss and: a reach an agreement With you; b. there IS an entry of a final judgment; or c. there '5 a filing 01 an appraisal award with us. - j 11. Abandonment of Property. We need not ac- cept any property abandoned by an Insured. 12. Mortgage Clause. The word "mortgagee' includes trustee. If a mortgagee is named in thiS policy. any loss payable under Coverage A or 8 will be paid tCl the mortgagee and you. as interests appear. If more than one mortgagee is named. the order of payment w,lI be the same as the order of precedence of the mortgages. If we deny your claim, that denial will not apply to a valid cla,m of the mortgagee, if the mort- gagee: a notifies us of any change in ownership, occupancy or substantial change in risk of whIch the mortg3gee is awa,"e; b. pays any premium due under this policy on demand if you have neglected to p.., the prem,um: and c. submits a signed. sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Polley conditions relating to Appraisal. Suit Against Us and Loss Payment apply to the mortgagee. If the policy is cancelled or not renewed by us. the mortgagee will be notified at least 10 days before the date cancellation or non-n'.' newal takes effect If we pay the mortgagee for any loss and deny payment to you: a we are subrogated to all the rights of the mortgagee granted under the mortgage on the property; or <.. Page 9 of 16 Copyright. Insurance Services Office. Inc.. 1984 HO-2 Ed 4-84 b. at our option. we may pay to the' mortgagee the who:e pronc'pal on the mortgage plus any accrued ,nterest In th'S event we will receive a full assignment and trans1er of the mortgage olnd all se- curotles held as collateral to the mortgage debt Subrogation -w,1I not ,mpaor the right of the mortgagee to recover the full amount of the mortgagee 5 cla,m. 13. No Benefit to Bailee. We w,ll not recognize any assignment or grant any coverage that benefits a person or organ,zatlon holding. storong or moving property for a fee regard- less of any other ;lrovlslon 01 thiS policy 14. Nuclear Hazard Clause. a 'Nuclear Hazard" means any nuclear reaction. radiat'on. or radioactive con- tam'natlon. all whether controlled or uncontrolled or however caused. or anv consequence 0 f any 0 f these. b. Loss caused by the nuclear hazard Will not be conSidered loss caused by lire. eXOloSlon. or smoke. whether these per- lis are speclf,cally named ,n or otherw,se ,ncluded wlth,n the Perols Insured Against ,n Sect,cn i. c. Th,s policy does not apply under Sect,on I to loss caused dorectly or ,ndirectly by nUClear hazard. except that direct loss by fire resulting from the nuclear hazard 15 covered. 15. Recovered Property. If you or we recover any prooerty for wnlch we have made pay- ment under thiS policy. you or we Will notify the other of the recovery At your option. the property w,ll be returned to or retained by you or It Will become our property If the re- covered property's returnad to or retained by you. the 1055 payment w,lI be adjusted based on the amount you received for the re- covered property 16. Volcanic Eruplion Period. One or more VOl- canic eruptions that occur w,thln a 72 -hour perood Will be conSidered as one volcaniC erupt,on. SECTION II - LIABILITY COVERAGES COVERAGE E . Personal liability If a claim IS made or a SUit is brought against an insured for darr.ages because of bodily injury or propertY damage caused by an occurrence to wh,ch th,s coverage applies. we will: 1. pay up to our limit of liability for the damages for which the Insured is legally liable; and 2. provide a defense at our expense by counsel of our chOice. even if the SUit is groundless. false or fraudulent We may investigate and settle any claim or suit that we deCide '5 ap- propriate. Our duty to settle or defend ends when the amount we pay for damages result- ing from the occurr.nc. equals our limit of liability. \. COVERAGE F . Medical Payments to Others We will pay the necessary medical expenses that are incurred or mecically ascertained within three years from tne date of an acc,dent cauSing bodily injury. Medical expenses means reasonable charges for medical. surg,cal. x-ray. dental. am- bulance. hospital. profess,onal nurs,ng. prosthet'c deVices and funeral services. ThiS coverage does not apply to you or regular reSidents of your household except residence employees. As to others. this coverage applies oniy; 1. to a person on the Insur.d location With tht: permisSion of an Ins\lred; or 2. to a person off the insured locetlon. ,f the bodily injury; a arises out of a condition on the In.ur.d location or the ways Immediately adjoin' ing; b. is caused by the activities of an In.ur.d; c. is caused by a re.ldenc. employ.e ,n the course of the re.ld.nc. .mploye.'. employment by an Insur.d; or d '5 caused by an animal owned by " , tho care of an In.ured. HO-2 Ed 4-84 Copyright. Insurance Serv,ces Office. Inc.. 1984 P.ge 10 of liS SECTION II - EXCLUSIONS 1. Coverage e - Personal Liability and Cov- erage F - Medical Payments 10 Others do not apply to bodily injury or property dam- age: a which's expected or ,ntended by the in- sured; b. arising out of business pursuits of an in- sured or .the rental or hold;ng for rental of any part of any premises by an in- sured. This exclus,on does not apply to: II} act,vltles which are usual to non- business pursuits; or 121 the rental or holding for rental of an insured location; lal on an occasional bas,s ,f used only as a residence; Ibl ,n part for use only as residence. unless a slngl'3 fam,ly unit '5 in- tended for use by the Occupy,ng family to lodge more than ~NO roomers or boarders; or Icl in part. as an office. school. stu- dio or private garage; c. ar'Slng out of the rendering of or failure to render profeSSional services; d. arising out 0 f a premises: 11) owned by an insured; 121 rented to an Insured; or 13) rented to others by an insured; that is not an Insured location; e. arising out of: 11) the ownership. maintenance. use. loading or unloading of motor vehi- cles or all other motorized land con- veyances, including tra,lers. owned or operated by or rented or loaned to an Insured; (2) the entrustment by an Insured of a motor vehIcle or any other motOrized land conveyance to any person. or 13) statutorily imposed '/,carlous parental liability for the actions 0 f a child or minor uSing a conveyance excluded ,n paragraph 11) or 12) above. This exclusion does not apply to: 111 a trailer not towed by or carried on a motOrized land conveyance. 121 a motOrized land co~veyance de- - Signed for recreational use off public ( roads. not subject to motor vehicle reg,stratlon and: lal not owned by an insured; or '.bl owned by an insured and on an Insured location. 13) a motOrized golf cart when used to play golf on a golf course. (4) a veh,c1e or conveyance not subject to motor veh,cle registration which is: Jal used to service an insured's reSidence; Ibl deSigned lor aSSIsting the handi- capped; or (cl ,n dead storage on an insured location. f. arising out of: I 1) the ownersh'p. ma'ntenance. use. loading or unloading 01 a watercraft deSCribed below; 12) the entrustment by an insured of a watercraft descr,bed below to any person; or (3) statutorily imposed vicarious parental liability for the actions of a child or minor using a watercraft described below. Watercraft I 1) with inboard or inboard-outdrlve motor power owned by an insured; 12) With inboard or inboard-outdrive motor power of more than 50 horsepower rented to an Insured; 131 that is a sailing vessel. with or without auxiliary power. 26 feet or more in length owned by or rented to an 1,,- sured; or (4) powered by one or more oulboar'd motors with more than 25 total horsepower if the outboard motor is owned by an Ineured. But. outboard motors of more than 25 total horse- power are covered for the policy period if: la) you acquire them prior to the L policy period and: ~ Ii) you declare them at policy inception; or Page 11 of 18 Copyright. Insurance Services Office. Ino., 1984 HO-:Z Ed. 4-84 , \ (1,1 your Intention to ,nsure IS reported to uS ,n wrI t,ng wlth,n 45 days after 'IOU ac- qUire the outboard motors. Ibl you acquire them dUring the POli- cy period This excl!Jslon does not apply wh,le the watercraft IS stored g. arls,ng out of: 111 the ownersh'p. ma,ntenance. use. loading or unloading of an aircraft 121 the entrustment by an insured of an aircraft to any person; or 13) statutoroly ,mposed v,carlous parental liability for the act,ons of a child c,r minor using an aircraft An aircraft means any contrivance used or designed for flight. except model or hobby aircraft not used or deSigned to carry people or cargo. h. caused directty or ,ndirectly by war. ,n- cluding undeclared war. CIVil war. 'nsur- rection. rebellion. revolution, warlike act by a military force or military personnel. destruction or seizure or use for a mili- tary purpose, and including any conse- quence of any of these. Discharge of a nuclear weapon will be deemed a warlike act even if accidental. Exclusions d, 8.. f.. and g., do not apply to bodily Injury to a residence employee aris- ing out of and in the course of the residence employee'S employment by an Insured. 2. Coverage E . Personal Liability does not apply to: a Iiabolity: (11 for your share of any loss assess- ment chargsd against all members of an association, corporation or com- munity of property owners; 121 under any contract or agreement However, this exclusion does not apply to written contracts: lal that directly relate to the owner- ship. maintenance or use of an Insured location; or ib) where the liability 0 f others is assumed by the Insured prior to an occurrence; unless excluded in (1) above or elsewhere in this policy; b. property damage to property owned by thll insured; c. property damage to property rented to. occupied or used by or ,n the care of the Insured. ThiS exclUSion does not apply to property damage caused by lire. smoke or explOSion; d. bodily Injury to any person elig,ble to receive any benefits: 111 voluntarily prOVided; or 121 reqUired to be prOVided; by the Insured under any: 111 worker 5 compensat'on law; 12) non-occupational d,sab,lity law; or (3) occupational disease law; e. bodily injury or property damage for wh,ch an Insured under thiS policy; III '5 also an ,nsured under a nuclear en- ergy liability policy; or 12) would be an ,nsured under that pOlocy but for the exhaust,on of ItS limit 01 liability. A nuclear energy Iiablloty policy's one 15' sued by: 11) American Nuclear Insurers; 12) Mutual AtomiC Energy Liability Un- derwriters; (3) Nuclear Insurance Associall(" vi Canada; or any of their successors; or f. bodily Injury to you or an Insured ",II,," the meaning of part a or b. of "Insured" as defined '3. Coverage F - Medical Peyments to Others, does not apply to bodily Injury: a to a residence employee if the bodily Injury; 11) occurs off the Insured location' ~nrl (2) does not arose out of or in the . . of the residence employee's "m- ployment by an Insured; b. to any person eligible to receive benErit,: 111 voluntarily provided; or 12) required to be provided; under any: 11) workers' compensation law; 12) non-occupational disability law; ('1r (3) occupational disease law; HO-2 Ed 4-84 Copyright. Insurance Services Office. Inc.. 1984 Page 12 of 1ti c. from any: 111 nuclear reaction: 12) nucleir radiation; or 13) radloact,ve contam,nat,on: all whether controlled 00' uncontrolled or however caused; or 141 any consequence 0 f any 0 i these. d. to any person. other than a residence employee of an insured. regularly res,d- ,ng on any part of the insured location. - . SECTION II - ADDITIONAL COVERAGES We cover the 101l0w,ng ,n addit,on to the limits 01 liab,lity: 1. Claim expenses. We pay: a expenses we ,ncur and costs taxed against an Insured in any SUit we defend: b. premiums on bonds required In a SUIt we defend. but not for bond amounts more than the limit of liability for Coverage E. We need not apply lor or furnish any bond; c. reasonable expenses ,ncurred by an In- sured at our request. including actual loss of earnings Ibut not loss of other Incomel up to s50 per day. for assisting us In the investigation or defense of a cla,m or su,t; d. ,nterest on the entire judgment wh,ch ac- crues after entry of the judgment and before we payor tender. or deposit ,n court that part of the judgment wh,ch does not exceed the limit of liability that applies; e. pre judgment interest awarded against the Insured on that part of the judgment we pay. If we make an offer to pay the ap- plicable limit of liability. we will not pay prejudgment interest based on that pe- riod of time after the offer. 2. First Aid Expenses. We will pay expenses for first aid to others incurred by an Insured for bodily Injury covered under this policy. We will not pay for first aid to you or any other Insured. 3. Oemage 10 Property of Others. We will pay. at replacement cost. up to s500 per occur- rence for property damage to property of others caused by an Insured, We w,lI not pay for property damage: a to the extent of any amount recoverable under Section I 0 f this policy; b. caused Intentionally by an Insured who is 13 years of age or older; c. 111 property owned by an insured; d. to property owned by or rented to a ten- ant 01 an Insured or a reSident ,n your household; or e. aros,ng out of: III business pursuits; 12) any act or om,ss,on In connection With a premises owned. rented or controlled by an Insured, other than the insured locallon; or 13) the ownership. ma'ntenance. or use of aircraft. watercraft or motor ve- h,cles or all other mOlorozed land conveyances. ThiS exclusion does not apply to a motorized land conveyance designed for recreational use off public roads. not subject to motor vehicle reg's- trat,on and not owned by an Insured. 4. Loss Assessment. We will pay up to s 1 000 for your share of any loss assessment charged during the policy period against you by a corporation or association of property owners. when the assessment is made as a result of: a each occurrence to which Section II of this policy would apply; b. liability for each act of a director. officer or trustee in the capacity as a director. officer or trustee, provided: (1) the director. officer or trustee is elected by the members of a corpo- ration or association of property owners; and (2) the director, officer or trust. r:. serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property owners. ih,s coverage applies only to 1095 assessments charged against you as owner or tenant of the residence premises. ( Page 13 of 16 Copyright. Insurance Services Office, Inc.. 1984 HO-2 Ed. 4-84 We do not cover loss assessments charged aga'nst you or a corporat,on or aSSOciation of oroperty owners by any governmental bOdy Section !I - Coverage E - Personal liability Exclu- "on 2.a11l does not apply to lh,s coverage. SECTION II - CONDITIONS 1. Limit of Liability. Our total liability under Coverage E for all damages result,ng from any one occurrence w,ll not be more than the limit of liab,lity for Coverage E as shown In the Declarat'ons. Th,s limit 's the same regardless of the number of insureds, cla,ms made or ,nlured. Our total liability under Coverage F for all medical expense payable for bodily Injury to one person as the result of one acc,dent w,ll not be more than the Iim,t of liab,lity for Cov- erage F as shown ,n the Declarations. 2. Severability of Insurance. ThiS Insurance applies separately to each insured. Th,s con- dition w,lI not,ncrease our Iim,t of liability for anyone occurrence, 3. Duties After Loss. In case of an acc,dent or occurrence, the Insured Will perform the fOllow,ng duties that apply. You will help us by see,ng that these duties are performed: a g,ve written notice to us or our agent as soon as is practical. which sets forth: (1) the identity 0 I the policy and Insured; 12) reasonably available information on the time. place and Circumstances .::If thfi' aCCident or occurrence; and 13) names and addresses of any claim- ants and witnesses: b. promptly forward to us every notice. de- mand. summons or other process relating to the accident or occurrence; c. at our request. help us: 111 to make settlement; (2) to enforce any right of contribution or indemnity against any person or organlzat'on who may be liable to an Insured; 131 With the conduct of SUitS and attend hearings and trials; 141 to secure and give eVidence and ob- tain the attendance of witnesses; ;;:1. under the coverage - Damage to Prop- erty of Others - submit to uS wlth,n 60 days after the loss. a sworn statement 01 loss and show the damaged property. ,f ;., the Insured's control; e. the Insured w,ll not. exept at the In' sur ed' s own cost. voluntarily make f.; men!. assume obligation or ,ncur expense other thanfor lirst a,d to others at. the time of the bodily injury. 4. Duties of an Injured Person - Coverage F . Medical Payments to Others. The ,nlured person or someone acting for the ,n Jured person w,ll: a give us wrotten proof of claim. under ou\h if reqUired. as soon as is practical; and b. authOrize us to obtain copies of medical reports and records. The ,n Jured person will submit to a physical exam by a doctor of our chOice when and .s often as we reasonably require. 5. Payment of Claim. Coverage F - Medical Payments to Others, Payment under this coverage is not an admission of liability by ill. Insured or us. 6. Suit Against Us. No. action can be brought against us unless there has been compliance with the policy provisions. No one will have the right to join us as a party to any action against an Insured. Also, no ac" tion with respect to Coverage e can be brought against us until the obligation of the Insured has been determined by final judg- ment or agreement signed by us. 7. Bankruptcy of an Insured. Bankruptcy or In- solvency of an Insured will not relieve us Cif our obligations under this policy. 8. Other Insurance - Coverage E . Personal Liability. This insurance is excess over valid and collectible insurance except insurance written specifically to cover as excess over the limits of liability that apply in this policy. HO-2 Ed 4-84 COPYright. Insurance Services Office. Ino., 1984 Page 14 of 18 ., SECTIONS I AND II 1. Policy Period. This policy applies only to loss ,n Sllct'on I or bodily Injury or property damage in Section II. which occurs dunng the policy penod. 2. Concealment or Fraud.We do not prov,de coverage lor an Insured whO has: a ,ntent,onally concealed or misrepresent- ed any material fact or circumstance; or b. made false statements or engaged ,n fraudulent conduct: relating to th,S ,nsurance. 3, Liberalization Clause. If we adopt a revls,on which would broaden the coverage under this policy Without additional premium wlth,n 60 days prior to or during the policy period. the broadened coverage Will immediately apply to this policy. 4. Waiver or Change of Policy Provisions. A waiver or change of a prOVISion 01 this policy must be In wrlt,ng by us to be valid. Our request for an appraisal or exam,nat,on w,lI not waive any of our rights. 5. Cancellation. a You may cancel this policy at any time by return,ng it to us or by letting us know ,n writing of the date cancellation is to take effect b. We may cancel this policy only for the reasons stated below by lercing you know in wnting 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 Declara- tions. Proof of mailing will be suffiCient proof 01 notice. ( 1) When you have not paid the premium. we may cancel at any t,me by lett,ng you know at least 10 days before the date cancellation takes effect 121 When this policy has been In effect for less than 60 days and is not a re- newal with us. we may cancel for any reason by letting you know at least 10 days before the date cancellat,on takes effect (3) When this policy has been in effect for 60 days or more. or at any time if it is a renewal with us. we may cancel: CONDITIONS 'at ,f there has been a matenal m,s- representation 0 f f act which If known to uS would have caused US not to ,ssue the policy; or Ibi If the risk has changed substan- t,ally since the policy was Issued. ThiS can be done by letting you know at least 30 days before the date can- cellation takes effect 14} When thiS policy IS wntten lor a pe- riod of more than one year. we may cancel for any reason at anniversary by lett'ng you know at least 30 days before the date cancellation takes effect c. When thiS policy is cancelled. the premi- um for the period Irom the date of can- cellation to the expiration date will be re- funded pro rata d. If the return premium '5 not relunded With the notice of cancellation or when thiS policy,s returned to us. we will refund it within a reasonable t,me after the date cancellation takes effect 6. Non-renewal. 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 ,n the Declarations. witten notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice. 7. Assignment. Assignment 01 this poliCY will not be valid unless we give our written con- sent ( 8. Subrogation. An Insured may waive in writing before a loss all rights of recovery against any person. If not waived. we may require an assignment of rights of recovery for a loss to the extent that payment is made by us. If an assignment is sought, an Insured must sign and deliver all related papers and coop- erate With us. Subrogation does not apply under Section II to Medical Payments to Others or Damage to Property 0 f Others. <.. Page 15 of 16 COPYright. Insurance Services Office. Inc.. 1984 HO-2 Ed 4-84 ~ HO-JOO .Ed. .1-89\ PENNSYLVANIA SPECIAL PROVISIONS SECTION I - PROPERTY COVERAGiS In all Forms and in Indorsement HO-J50. unoer ADDITIONAL COVERAGES. ,tem 1. Debris Removal IS deleted and the lollowlng subst,tuted: 1. Debris Remov.1 A. We w,ll pay your reasonable expense tor the removal 01: (11 debriS 01 covered property ,f a Pe,,1 Insured Against that applies to thu damaged property causes the less; or (21 ash. dust or particles from a volcanic eruption that has caused direct 1053 to a budding or property contained in a bUildIng. ThIS .xcense IS included in U,. limit of liability that acplies to the damaged property. If the amount to be paid for the actual damage to the property plus the debriS removal exp.nse '5 more than the limit of liability for the damaged property. an additional 5r. 01 that limit of liability is available for debriS removal expense. B. (111f the circumstances of a loss meet those specified in 121 below. we will pay your reasonable expense. up to 5500 in the aggregate. for the removal from the residence premises 01: a. your tre.lsl felled by the peril 01 Windstorm or Hall; b. your tree!s) felled by the perl' 01 Weight of Ice. Snow or Sleet IForms HO-2. HO-J. HO-4 and HO-6 only); c. a neighbor's treelsl felled by a Peril Insured Against under Coverage C. (21 Tree removal coverage as described in 8. 111 a!:love applies only if: a. the tree damages a structure covered under this policy; or b. Windstorm or Had or Weight of Ice. Snow or Sleet causes damage to a structure covered under thiS policy and :he Pennsylvania Governor declares the area ,n whIch the residence premises '5 located to be a d'sast.r area as a result of suCh weather conditions. SECTION I - CONDITIONS Under Condition J. Loss SetUement. item b. (1) is deleted and replaced by the following: b. 8u,Id,ngs under Coverage A or a at replacement cost WIthout deduction for depreCiation. sublect to the follOWIng: (11 II. at the t,me of loss. the amoum of ,nsurance In th,s policy on the damaged building is 80r. or more of the full replacement cost 0 I the building Immediately before the 1055. we Will pay the cost to repair or replace. alter application 01 deduct,ble and Without oeductlon lor depreclat'on. but not more than the least of the follOWing amounts: lal the limit of liability under this policy that applies to the bUilding. lblthe replacement cost of that part of the bUilding damaged; or Ic) the necessary amount actually spent to repair or replace the damaged building. The replacement cost will not exceed that necessary for like construction and use on the same premises; regardless of whether the replacement building or repaired building is located on the same or a different premises. SECTION II - LIABILITY CDVERAGES In Endorsement HO-J50. item 1. under Coverage E - Personal Liability is deleted Under Coverage F - Medical Payments to Olhl1rs: Medical expenses do not include expense. for funeral services. HO-JOO lEd. 4-89) PENNSYLVANIA Page 1 ,,' ~. Copyright. Insurance Services Office. Inc.. 1988 SECTION I AND II CONDITIONS 5. Cancellallan. Parigraph b 's deleted and the iollow,ng substituted: b. We may cancel thiS policy only for the reasons stated below by nOlify,ng the Insured in wrotlng of the date cancellation takes effect This cancellation notice may be delivered to or mailed to the Insured named In the Declarat,ons at the ma,ling address shown In the policy or at l forwarding address. Proof of mailing will be sufficient proof of not'ce 111 When thiS policy has been In effect for less than 60 days and is not a renewal with us. we may cancel for any reason by notlfy,ng the Insured named in the Declarations at least 30 days before the cancellation takes effect. 12l When this policy has been in effect for 60 days or more, or at any time if it is a renewal w,th us. we may cancel only for one or mor~ of the following reasons by notifying the insured named in the Declaration at least 30 days prior to the proposed cancellation date: lal this policy was obtained through material misrepresentation. fraudulent state- ments. omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by us; Ibl there has been a substanlal change or increase in hazard in the risk assumed by us sl.:bsequent to the date the policy was issued; (clthere is a substantial increase in hazards insured against by reason of willful or negligent acts or omissions by the Insured; HO-300 lEd 4-89) PENNSYLVANIA Idlthe insured has fa,led to pay the premIum by the due date. whether payable to US or to our agent or under any fi~ance or credit plan; or (el for any other reason approved by the Pennsylvania Insurance Commissioner. This prov,sion shall not apply if the named Insured has demonstrated by some overt action to us or to our agent that the Insured Wishes the policy to be cancelled Delivery of such written notice by US to the Insured named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. 6. Nan-Renewal is deleted and the following sub- stituted: 6. Nan-Renewal. We will not fail to renew this policy except for one of the reasons referred to In the Cancellation Provision of this en- dorsement We may refuse to renew for one of the listed reasons by mailing to the Insured named in the Declarations at tho mailing ad- dress shown in the policy or at a forwarding ( address, written notice at least 30 days prior to the expiration date of this policy. This provision does not apply if: a. we have indicated our willingness to renew and the insured has failed to pay the premium by the due date; or b. the named Insured has indicated to us or our agent that the Insured does not wish the policy to be renewed . Delivery of such written notice bV UI to the Insured named in the Declarations at the m~l1Ing address shown in the policy or at a forwal'ding address shall be equivalent 10 mailng. All other provisions of this policy apply. HO-300 lEd. 4-89) PENNSYLVANIA Page 2 of :2 Copyright, Insurance Services Office. Inc.. 1988 @ SUPPLEMENTAL PROVISIONS DEFINITIONS Definition 5. 's deleted and re~laced by the fol- lowIng: 5. "occurrence" means an accident. ,nclud,ng contInuous or repeated exposure to subs lan- t,ally the same general harmful condlt'ons. whICh results. dUring the pOl,cy period. ,n: a. bodily Injury; or b. property damage. SECTION I - f'ROPERTY COVERAGES Under COVERAGE C - Personal Property, Spe- cial Limits of Liability. item 2. '5 deleteo and re- placed by the following: 2. s 1.000 on securIties. accounts. deeds. ev,- dences of debt. letters of credit. notes olher than bank notes. manuscripts. personal records. passportS. tickets and stamps. ThiS dollar limit applies to these categories re- gardless of the medium (such as paper or computer softwarel on which the material ex,sts. This limit includes the cost to research. re- place or restore the ,nformation from the lost or damaged material. Under COVERAGE C - Personal Property, Prop- ertY Not Covered, item 8. is deleted and replaced by the following: 8. business data, including such dala stored in: a. books of account. drawings or other pa- per records; or b. electronic data process'ng tapes. wires. records. discs or other software media. However. we do cover the cost of blank re- cording or storage media. and of prerecorded computer programs available on 'the retail market Under ADDITIONAl COVERAGES: Item 1. Oebrls Removal is deleted and replaced by lhe following: 1. Oebrls Removal. We will pay your reason- able expense for the removal of: a. debris of covered property if a Peril In- sured Against that applies to the damaged property causes the loss; or HO-350 'Ed. 9-871 b. ash. dust or part'cles from a volcaniC erupt,on that has caused direct loss to a bu,lding or prooerty contained ,n a bu,ld- lng, ThiS expense '5 Included ,n the Iim,t 01 liabIlity that appl,es to the damaged property. If the amounl to be paid for the actual damage to the properly plus the debriS remo'Jal expense IS more than the limit of liability lor the damaged property. an additional 5". of that Iim,t of liabIlity 15 available for debriS removal expense. We Will also pay your reasonable expense. up to s500 ,n the aggregate for the removal from the residence premises of: a. your treels, felled by the peril of Windstorm or Had; b your treets' felled by the peril of Weight 01 Ice. Snow or Sleet (FormR HO-2. HO- 3. HO-4. and HO-6 only); or c. a ne'ghbor's treetsl hilled by a Peril In- sured Aga,nst under Coverage C; prOVIded the treetsl damages a covered structure. Item 2. Reasonable Repelrs Is deleted and rp- placed by the follow,ng: 2. Reasonable Repelrs. In the event that CuJ - ered property is damaged by an applicable Peril Insured Against. we will pay the reason- able cost incurred by you for necessary mea- sures taken solely to protect against further damage. If the measures taken involve repair to other damaged property. we will pay tor. those measures only if that property iG r '. . ered under this policy and the damage to \l1o)1 property is caused by an applicabl' I 'r'," " . sured Against This coverage: a does not increase the limit of Iiahilllv I! .:.. applies to the covered property; b. does not relieve you of your Ii', ;,ltS, ill case of a loss 10 covered propLO I,. ;." s"t forth In Section I Condition 2.d Copyright. Insurance Services Office. Inc.. 1984 HO-350 lEd 9-871 Page 1 of 4 Item 7. Loss Assessment 's deleted and replaced by the follow,ng: 7. Loss Assessment. We Will pay up to S 1.000 for 'lour snare of loss assessment cnarged dUring the policy period aga,nst you by a cor- porat,on or assoclat'on of property owners. when the assessment '5 made as a result of direct loss to the property. owned by all members collect,vely. caused by a Perol In- sured Aga,nst under Cover age A - Dwelling. other than earthquake or land snock waves or tremors before. dUring or after a volcan,c eruption. ThiS coverage applies only to loss assess- ments charged against you as owner or tenant of the residence premises. We do not cover loss assessments charged aga'n st you or a corporation or associat,on of property owners by any governmental body. The limit of S 1.000 15 the most we Will pay With respect to anyone loss. regardless of the number of assessments. Condition 1. Policy Period. under Sections I and II Conditions. does not apply to the cov- erage provided by this endorsement SECTION I - PERILS INSURED AGAINST The follOWing perils are deleted from Form HO-6: 2. Windstorm or Hail; 6. vehicles; 11. Falling Ob- jects; 12. Weight of ice, snow or sleet: 13. Ac- Cidental discharge or overflow of water or steam; and replaced by the following: 2. Windstorm or Hall. This peril does not include loss to the inside of a building or the property contained in a building caused by rain. snow, sleet. sand or dust unless the direct force of wind or hall damages the building caus,ng an opening in a roof or wall and the rain. snow. sleet. sand or dust enters through thiS opening. This peril includes loss to watercraft and their trailers. furnishings. equipment. and outboard motors. only while ins, de a fully enclosed building. 6. Vehicles This peril does not include 1055 to a fence. driveway or walk caused by a vehicle owned or operated by a resident of the residence premises. 11. Falling Objects. Th,s peril does not ,nclude lOSS to the ,ns,de of a building or property conta,ned. In the bUilding unless the roof or an outs,de wall of the bUilding '5 first damaged by a falling 00- Ject Damage to the falling object Itself IS not ,ncluded. 12. Weight of ice, snow or sleet whiCh causes damage to a bu,ldlng or property conta,ned ,n the bUilding. ThiS peril does not 'nclude 1055 to an awning. fence. patio. pavemont. sWimming pool. loundatlon. reta,n,ng wall. bulkhead. pier. wharf. or dock. 13. Accidental discharge or overflow of water or steam from Within a plumbing. heating. air condit,on,ng or automatic fire protective sprinkler system or from within a household appliance. We also pay for tearing out and re- plaCing any part of the building which is cov- ered under Coverage A and on the residence premises ,f necessary to repair the system or appliance from which the water or steam es- caped. Th,s perol does not include loss: a to a building caused by constant or re- peated seepage or leakage over a period of weeks. months or years; b. on the ruldence premises. if the unit has been vacant for more than 30 con- secutive days immediately before the loss. A unit being constructed Is not con- Sidered vacant; c. to the system or appliance from which the water or steam escaped; d caused by or resulting from freezing ex- cept as provided in the peril of freezing below; or e. on the residence premises caused by accidental discharge or overflow which occurs away from the building where the residence premises is located The following sentence is added to the peril, Ao- cldental Discharge or Overflow of Water or Steam ,n all Forms except HO- 1 and HO-8: In this peril. a plumbing system does not include a sump. sump pump or related equipment ( COPYright. Insurance ServIces Office. Inc.. 1984 HO-350 lEd 9-87) Page 2 of 4 SECTION I . EXCLUSIONS Under ExclUSion 3. Water Damage. paragraph 0 IS deleted lnd replaced by the fOllow,nq b. water wnlcn bacKs up through sewers or drains or w",ch overflows from a sump: or oIn Form HO-3. thiS '5 'tem IC.1211 SECTION I . CONDITIONS Under 2. Your Duties A'ter Loss, paragraph t 13) IS deleted and replaced by the follow,ng: 13) submit to examination unde, oath. while not ,n the presencll of any other insured and s'gn the same: Under 3. Loss Senlement In Forms HO- 1. HO-2 and HO-3. paragrapn b.141's deleted and replaced by the follow,ng: 14) We Will pay no more than the actual cash value 0' the damage unless: lal actual repair or replacement's complete; or Ibl the cost to repair or replace the damage IS both: Ii) less than 5~. of the amount of 'nsur- ance In thiS policy on the bUilding; and (oil less than s2500. SECTION II - LIABILITY COVERAGES Under Coverage E, Personal Liability, ,tem liS deleted and replaced by the 'ollowlng ,n all Forms and Endorsement HO-73: 1. pay up to our limit of liab,lity lor the damages lor which the Insured is legally liable. Dam- ages 'nclude pre Judgment ,nterest awarded against the Insured. t. SECTION II . EXCLUSIONS Under item 1. Coverage E - Personal Liability and Coverage F - Medical Payments to Others item b. is deleted and replaced by the following in all Forms and Endorsement HO-73; b. III arising out of or in connection With a business engaged In by an Insurad. This exclusion applies but '5 not limited to an act or omiSSion. regardless of its nature or Circumstance. involVing a service or duty rendered. promised. owed. or im- plied to be prOVided because 01 the na- ture of the bus Inns. b. 12) ar'slng out of the rental or holding for rental of any part ot any premises by an insured. Th,s exclUSion does not apply to the rental or holding tor rental of an In- sured location: "I 'In an o.:caslonal baSIS II used only as res,dence. ,,,I ,n part for use only as a res,dence. unless a Single tamily unit,s Intended for use by the occupy,ng I amlly to lodge more than two roomers or boarders; or 11111 In part. as an office. school. studio or private garage; Unde.. Item I. Coverage E - Personal LiabilitY and Coverage F . Medical Payments to Others, the toilow,ng exclus,on ,s added to all Forms and Endorsement HO-73: whiCh arises out of thIS a'ansmlSSlon of a commun,cable disease by an Insured. IThls 15 exclUSion I. ,n HO-73.1 Under ,tem 2. Coverage E - Personal Llllblllty ,tem alll,s deleted and replaced by the follOWing ,n ail Forms and Endorsement HO-73: III tor any loss assessment charged aga'nst you as a member of an association. corporation or community of property owners; SECTION II . ADDITIONAL COVERAGES Under item 1. Claim Expenses, paragraph e. is deleted Under 3. Damage to Property of Others, item e.1 1)'5 deleted and replaced by the following: 11) a business engaged In by an insured; Item 4. Loss Assessment is deleted and replaced by the fOllow,ng: 4. Loss Assessment. We will pay up to S 1.1 ,.) lor your share 0' loss assessment charged during the policy period against you by a cor- poration or association of property owners, when the assessment is made as a result of: 1 bodily Injury or property damage not excluded under Section II of this policy, or b. liability for an act of a director, officer or trustee in the capacity as a director, c. ~ . ticer or trustee. provided: 111 the director. officer or trusts. is elected by the members of a corpo- ration or aSSOCiation of proporty owners; and 12) the director. officer or trUStU8 serves WithOUt deriVing any Incomu Irom the exerCise of duties which are solely on behalf 0' a corpon!i'.'1l or aSSOCiation of property owners. COPYright. Insurance Services Office. Inc.. 1984 HO-350 lEd 9-871 Page 3 of 4 This coverage applies only to loss assessment s cnarged against you as owner or tenant 01 the r..id.nc. pr.mis... We do not cover loss assessments cnarged against you or a corporation or assocI at, on of property owners by any governmental bOdy. Regardless of the number of assessments. the Iim,t of s 1.000 ,s'the most 'Ne w,ll pay lor loss ariSing out of a one aCCident. Including continuous or repeat- ed exposure to substantially the same general harmful condition; or b. a covered act 01 a director officer or trustee. An act ,nvolv,ng more than one director 01- licer or trustee '5 conSidered to be a Single act The follcl/Vlng do not apply to this coverage: 1. Section II - Coverage E - Personal Llab,lity E:xcluslon 2.aI1l; 2. Condition 1. Policy Period. Under Sections I and II Conditions. SECTION II . CONDITIONS Ite:T1 t. Limit of Liability, '5 deleted and replaced by the lollowlng: 1. Limit of Liability. Our total liability under Coverage E lor all damages result,ng from any one occurr.nc. wliI not be more than the limit of liability lor Coverage E as shown In the Declarations. This limit is the same regardless of the number of Insur.ds, claims made or pernons ,nJured All bodily Injury and prop. erty damage resulting from anyone aCCident or Irom continuous or repeated exposure to substantially the same general harmful condi- tions shall be cons,dered to be the result of one occurr.nce. Our totalliae,loty under Coverage F lor all medical 9xpense payaele lor bodily injury to one person as the result of one acc,dent will not be more than the limit 01 Ilaelloty for Coverage F as shown In the Declarations. SECTIONS I AND II . CONDITIONS Item 2. Concealm.nt or Fraud. IS deleted and re- placed by the follOWing: 2. Concealm.nt or Fraud. The entire poliCY Will be VOid ,I. whether before or after a loss. an insur.d has; a. 'ntentlonally concealed or misrepresent- ed any material fact or circumstance; b. engaged ,n Iraudulent conduct; or c. made lalse statements; relating to thiS 'nsurance. Item 3. Liberalization Claus. is deleted .md re- placed by the lollow,ng: 3. Liberalization Clause If we make a change NhlCh broadens coverage under thiS edition of our policy w,thout additional premium charge. that change w,lI automatically apply to your ,nsurance as of the date we 'mplement thll change ,n your state. provided that this ,mplementation date falls Within 60 days prior to or dUring the policy period stated in the Dl/clarat'ons. ThiS liberalization Clause does not apply to changes Implemented through introduction of a subsequent edition of our policy. All other prOVISions of thiS pOlicy apply. <.. Copyright. Insurance Services Office. Inc., 1984 HO-350 lEd. 9-87) Page 4 (Jf 4 @ GOLF CART LIABILITY OC-163 lEd. 10-891 SECTION II EXCLUSIONS 1. Coveraga E - Personal Liability and Coverage F - Medical Payments To Others, Subparagraph e. (3) A motorIZed golf cart wnen used to play golf on a golf course - '5 changed to read: 131 A motOrized golf carl when used to play golf on a golf course. and travel between the Ruidence premisu and ,ts commumty golf course for golfing purposes or lor other spon- sored actiVities. MORTGAGE EXPENSE COVERAGE The follow,ng coverages apply 2!!!!L to the first mortoaoee named ,n thiS policy. If a covered peril causes a total loss to your dwelling. covered by thiS policy. we will reimburse you the fOllow,ng costs and ,xpenses to replace the damaged property. ,f incurred by you within 120 days after the date of loss. A. Wa Will pay up to $1.000 for the fOllow,ng direct monetary costs incurred by you if the first mortgagee named in the policy has the right to renegotiate the first mortgage and exercises thiS right 1. title search fees; 2. appraisal fees; and 3. application fees. 8. Additional Monthly Mortgage Expense: We will pay that part of the additional monthly mortgage expense on the replacement dwelling which is due to a higher rate of interest of more than 2,.. annual percentage rate for the same prinCipal amount. based on the balance owed on the original mortgage of the first mortgagee at the time of loss and for a like item. Wa do not COVer any addltlonallnterut axpensa Incurred In any other mortgaga, wI1ather listed on this policy or not. Our limit of liability under thiS endorsement shall not exceed 5250 per month and will expire one year from the date of the first payment Payment under this coverage will be made semi-annually when you provide satisfactory evidence that the mortgage for which payment Is being made remains in full force and ef fect C. This coverage does not apply to Forms HO-4 and HO-e. The term "total loss" means loss for which we have paid or agreed to pay an amount equal to the tC'hl ! of the dwelling coverage under your policy. . :~ , . 'C'~ \ ~\ y ...('I~\..\ f.l t. '.J ~~'O ~, ~~. . 'VY,,~ ~<~. .::t-~ 'V....' ~~\~t> OC-163 (Ed 10-891 In Tn:) CQurt CT C.::mmo;1 :=1=::3 or C:J~..:::::;:~i=nd C.::t.::-;~YI ?s:1r:syl',=ni:: West American Insurance Company 'is. 'i'any!! Boyle :fo. Q~-1281 f"'1U~ 1 rr~,..m :?- :low. M.:ar,..n " lQa~ :9_ !. S:-:::z:~:: 0: C~G~..!..A.'m COt.-:i-:'Y. ?~ :2 . ' .l_ ' , - '-_I =-=--:11 -.-;=u= ::.:: :~ g,( Ynrlt- CJu.::r :~ =:: =.is "":::, :::s =-~u===:~ _.,..t_ ~ ::.: ~ ::0. :-!!k ~i --- ?,,,:-=:_ -'L' o' r"" 41""........ . ./:,....-~ SJ:ae:-":: :;t C:=ar..1:ci C~U:Q'. ?3. ASdavit or ... . ::e.~= ::-iowl March 20 :9 96 _. 6:20 O".:!Cc:.: P. \,L 1:"'.-= . ,., :, ~-_.... Sunmons ~-"OQ Michael J. Bovle (. Tanva Bovle .~ 125 ('onley Lane, Etters; PA . I .. ;r ::.::c::q :.0 Mlchael J, BoYle & Tanya Do/Ie ~ two true end attested caples D;Il7; ci == o:'~' .1 at 125 ('onley Ln., Etter~A .. md -.,,- i:::awtI :0 them . .' ~ .:::::::s ==--=t. So o=w:::, //7;' /(/~ ~ <.-''l' .1 York c:,,1lArT. h. - .... ,,_--, I. . .:aw::::. ::~ S::ar:""..;;r:""~ ~ == == -lill Q'f:i March !9-22.. COST.S ;:.c...~v'1C:: ~a:r...::.AGZ .~: wA.... "i7 S 18.00 11.78 2.00 . ! 31. 78 /........ PubliC 'j -"'~,rlt 20 ':ii' ,- --4 In Th~ Court r:i C.:mmo:i p!s:s or C:.Jr.::.::""i:.,: c.;;u';;~''I, ?;:'1r:syl'l::r:i:: West American Insurance Company ,,-S. Michael J. Boyle :0;0. 96-1281 Civil Term :;1_ ~OW, March 11. 1996 :9_ !. S~~:: O? C~f3::::..!...A....'rn CO~":'"!, ?..o\,.. =:1 :::=y cL.::u":"" == S"=.:i cl 'iork c.:n':'::"f :;) ==-~:: :is '.V:::, :::s . . :..~u=:.cu . . ..I . ==1 -... - u == :::r.:= :.:d :-=~ of == ;".,:-::. .. r-'-::'~ . #f"";. "'.....'...-1 . ~,...... A ./ .. ",...-"'''' . " " .Slle:"~ =t C:::::i:u'..:a::d C~u::lT. ~ Affida.vit or Se:-ric:= ~OW, 19 -- o' .:!cc:: 'tc. ~.-= :::: ~.~:'!'I .~ :1' by :::u:6i :a I. <::?!' ai =: ::~.;:-.,r ... :z:ld -~":. !caw: :::I ::.:: .::::=:s . . ::..-:;;c. So~ ~'T,;c / r.:J~ l:d= =-Z;Q~ <"-''j' af 19_ CCS"!'3 ;:~~"l:C::: ~C!!2.>.GE .-\:::wAVr7 .3 .- c .r.;iJ:l., GIU'JS, N;;ttry Public ~1' )or",_ yC'~ r;Ot,llfy y c.OJlUnr":;Il"" I 'i)H_'~:, "llpj ?rJ. 1 g~q s .... .~\ .. h. ,..., ., I U ,', (., ~ j~-~! ~ I "" Yt J c'.~ , l...,' I ...1, 1."-' Ci...: I :4: I . r- i '- <T' U PRABCIPI FOR LISTING CASI FOR ARGUMENT {MU.e b. eyp.writt.n and aubmitt.d in dupliaae.) ..... ..D '-, -! "" ,:? , . }. T! -'. f.... " ('; .f) ,r") .. :H -~ ... :("\ ~ 11 i :n .- "oj ,~ ~, TO Tall PROTHONOTARY OJ' CUMElIRLAND COUNTY I .- . ~ I Please list the within matter for the next Argument court~. CAPTION OF CASE: lentire caption must be stated in full) WEST AMERICAN INSURANCE CO" Plaintiff vs, JAY A. SHULER, HELEN D,S. SHULER, MICHAEL J. BOYLE, TONYA SaYLE, JACK GAUGHEN REALTOR, ELLEN JOHNSON, KELLOGG ENVIRONMENTAL SERVICES, INC., Defendants No, 96-1281 Equity Term 1. State matter to be argusd li,e" plaintiff's motion for new trial, detendant's demurrer to complaint, etc.): Plaintiff's Motion for Summary Judgment 2. Identify counsel who will argue case, (a) for plaintiff: Douglas B. Marcelio Address, Post Office Box 999, HarriSburg. PA 17108-0999 Ib) for defennant Shuler, James L. Goldsmith Address: 3631 North Front Street, Harrisburg, PA 17110 (cl for defendant Gaughen and Johnston: C. Roy Weidner, Jr. Address: Post Office Box 109, Lemoyne, PA 17043-0109 (dl for defendant Kellogg: Evan J. Kline, III Address: Post Office Box 1268, Harrisburg, PA 17108-1268 (e) for defendants Boyle: Michael J. and Tanya Boyle Address: 125 Coniey Lane, Etters, PA 17319 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: June 25, 1991. Dated: 5/14/97 .__________ r :-::::::- ...- ,../, ./ ,?'\'~- ~--::: Att~ for Plaintiff / WEST AMERICAN INSURANCE CO, Plaintiff, * IN THE COURT OF COMMON PLEAS * CUMBERLAND COUNTY, PENNSYLVANIA * v. * NO, 96-1281 EQUITY TERM * JAY A. SHULER, HELEN D.S. SHULER, * MICHAEL 1. BOYLE, TONY A BOYLE, * JACK GAUGHEN RELATOR, * ELLEN JOHNSTON, and KELLOGG * JURY TRIAL DEMANDED ENVIRONMENTAL SERVICES, INC" * Defendants * ORDER AND NOW this _ day of , 1997. upon consideration of Defendant Shulers' Cross Motion for Summary Judgment and Supporting Brief, it.is hereby Ordered and Decreed that Defendants' Motion is granted and this court holds that Plaintiff, West American Insurance Company, has a duty to defend and indemnitY the Shulers. 1. 88141-1 95-488 WEST AMERICAN INSURANCE CO" Plaintiff, · IN THE COURT OF COMMON PLEAS · CUMBERLAND COUNTY, PENNSYLVANIA . v, · NO, 96.1281 EQUITY TERM . JAY A. SHULER, HELEN D,S, SHULER, · MICHAEL 1. BOYLE, TONY A BOYLE, · JACK GAUGHEN RELATOR, · ELLEN JOHNSTON, and KELLOGG · JURY TRIAL DEMANDED ENVIRONMENT At SERVICES, INC" · Defendants · DEFENDANT SHULERS' RESPONSE TO MOTION FOR SUMMARY JUDGMENT PURSUANT TO Pa. R.C.P. 1035,3 and CROSS MOTION FOR SUMMARY JUDGMENT SUBMITTED ON BEHALF OF DEFENDANT SHULER.~ I. The Declaratory Judgment Complaint speaks for itself. 2. The Boyles' Complaint speaks for itself. 3. Denied as stated. While it is admitted that Count I of the Boyles' Complaint against Defendant Shulers is entitled "Fraud", the factual averments state that Defendant Shulers "knew or should have known of the extensive termite infestation and damage to the premises before the date of closing", ," ~ Boyles' Complaint paragraph 19, These allegations indicate negligent conduct which is not excluded from coverage, 4, 5, 6. itself. 7, itself Admitted, Admitted, The policy attached as Exhibit "A" to the Motion for Summary Judgment speaks for The policy attached as Exhibit "A" to the Motion for Summary Judgment speaks for DEFENDANT SflULERS' CROSS MOTION FOR SUMMARV JUDGMENT II, Defendant Shulers incorporate their response to Motion for Summary Judgment pursuant to Pa, R,C.P, 1035,3 as ifset out in full, 12, West American has a duty to defend and indemnify based on the allegations in the Boyles' Complaint sounding in negligent misrepresentation, Le" Defendant Shulers "knew or should have known of the extensive tennite infestation and damage to the property before the date of closing [July 31,1991).., ,II 13, All factual averments of conduct on the part of Defendant Shulers arose prior to closing and during the policy period, i, e" on or before July 3 I, 1991. 14, While the only count against Defendant Shulers is entitled "Fraud", the averments that they "knew or should have known" allege negligent conduct which is not excluded from coverage. ~ Boyle v O'Dell, 413 Pa, Super, 562,605 A,2d 1260 (1992), 15, It is well settled that an insurer's duty to defend is triggered where the complaint against the insured alleges facts which would bring the claim within the policy's coverage if the allegations are true, ~ Standard Venetian Blind Co v American Empire Insurance Co, 503 Pa. 300, 469 A 2d 563 (1983), 16, The "occurrence" in this case is the alleged representation(s) made by Defendant Shulers that induced the purchase orthe residence, 17, Any ambiguity in the policy must be resolved against the insurer, West American. ~ DiFabio v Centaur Insurance Co, 366 Pa, Super, 590, 53 I A2d 1141 (1987), WEST AMERICAN lNSURANCE CO" Plaintiff, · IN THE COURT OF COMMON PLEAS · CUMBERLAND COUNTY, PENNSYLVANIA . v, · NO, 96-1281 EQUITY TERM . JAY A. SHULER, HELEN D,S, SHULER, · MICHAEL J, BOYLE, TONY A BOYLE, · JACK GAUGHEN RELATOR, · ELLEN JOHNSTON, and KELLOGG · JURY TRIAL DEMANDED ENVIRONMENTAL SERVICES, mc" · Defendants · DEFENDANT SHULERS' RESPONSE TO MOTION FOR SUMMARY JUDGMENT PURSUANT TO PI. R.C.P. 1035,3 and CROSS MOTION FOR SUMMARY JUDGMENT SIlBMITIED ON BEHALF OF DEFENDANT SHULERS I, The Declaratory Judgment Complaint speaks for itself. 2, The Boyles' Complaint speaks for itself. 3. Denied as stated, While it is admitted that Count I of the Boyles' Complaint against Defendant Shulers is entitled "Fraud", the factual averments state that Defendant Shulers "knew or should have known of the extensive termite infestation and damage to the premises before the date of closing... ,II Si:l: Boyles' Complaint paragraph 19, These allegations indicate negligent conduct which is not excluded from coverage, 4, 5, 6, itself 7, itself Admitted, Admitted, The policy anached as Exhibit" A" to the Motion for Summary Judgment speaks for The policy anachcd as Exhibit" A" to the Motion for Summary Judgment speaks for DEFENDANT SHIIURS' CROSS MOTION FOR SUMMARY JUDGMENT II. Defendant Shulers incorporate their response to Motion for Summary Iudgment pursuant to Pa. R,C,P, 1035.3 as ifset out in full. 12, West American has a duty to defend and indemnifJ based on the allegations in the Boyle!' Complaint sounding in negligent misrepresentation, i.e" Defendant Shulers "knew or should have known of the extensive tennite infestation and damage to the property before the date of closing [July 31,1991]...." 13. All factual averments of conduct on the part of Defendant Shulers arose prior to closing and during the policy period, i.e,. on or before July 31,1991. 14, While the only count against Defendant Shulers is entitled "Fraud", the averments that they "knew or should have known" allege negligent conduct which is not excluded from coverage. S<<~e v O'Dell, 413 Pa. Super, 562,605 A.2d 1260 (1992), 15, It is well sell led that an insurer's duty to defend is triggered where the complaint against the insured alleges facts which would bring the claim within the policy's coverage if the allegations are true, S<< Standard Venetian Blind Co v American Empire Insurance Co . 503 Pa, 300,469 A.2d 563 (1983), 16, The "occurrence" in this case is the alleged representation(s) made by Defendant Shuiers that induced the purchase of the residence, 17. Any ambib'tlity in the policy must be resolved against the insurer, West American. ~ DiFabio v Centaur Insurance Co , 366 Pa Super, 590, 53 I A.2d 1141 (1987), WEST AMERICAN INSURANCE CO., Plaintiff. * IN THE COURT OF COMMON PLEAS * CUMBERLAND COUNTY, PENNSYLVANIA * v, * NO. 96-\28\ EQUITY TERM * JAY A. SHULER, HELEN D,S. SHULER, * MICHAEL J. BOYLE, TONY A BOYLE, * JACK GAUGHEN RELATOR, * ELLEN JOHNSTON, and KELLOGG * JURY TRIAL DEMANDED ENVIRONMENTAL SERVICES, INC" * Defendants * DEFENDANT SHULERS' RESPONSE TO MOTION FOR SUMMARY JUDGMENT PURSUANT TO PR. R.C.P. 1035.3 And CROSS MOTION FOR SUMMARY JUDGMENT SUBMITIED ON BEHALF OF DEFENDANT SHULERS \, The Declaratory Judgment Complaint speaks for itself. 2. The Boyles' Complaint speaks for itself. ), Denied as stated. While it is admitted that Count I of the Boyles' Complaint against Defendant Shulers is entitled "Fraud", the factual averments state that Defendant Shulers "knew or should have known of the extensive tr.rmite infestation and damage to the premises before the date of closing.., ." ~ Boyles' Complaint paragraph \9, These allegations indicate negligent conduct which is not excluded from coverage, 4, 5, 6, itself. 7, itself. Admitted, Admitted, The policy attached as Exhibit" A" to the Motion for Summary Judgment speaks for The policy attached as Exhibit "A" to the Motion for Summary Judgment speaks for 8, The policy attached u Exhibit "A" to the Motion for Summary Judgment speaks for itself. 9, It is denied that the policy issued by West American Insurance Company ("Wllst American") to Defendant Shulers does not provide coverage, (a) Contrary to West American's Motion, the "occurrence" set out in Boyles' Complaint is the representation(s) regarding termite infestation made by Defendant Shulers prior to closing; (b) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of$30,OOO.00; (c) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of $30,000,00; (d) Contrary to West American's Motion, the Boyles' Complaint alleges negligent misrepresentation by Defendant Shulers, i,e" they "knew or should have knownll~ (e) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of $3 0,000,00; (I) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of $30,000,00; (g) Contrary to West American's Motion, the Boyles' Complaint alleges facts within the policy, 10, No response required, WHEREFORE, Defendant Shulers respectfully requestlhis Court to deny West American's Motion for Summary Judgment. DEFENDANT SHIILERS' CROSS MOTION FOR SUMMARY JlJDGMENT 11. Defendant Shulers incorporate their response to Motion fOf Summary Judgment pursuant to Pa. R.C.P, 1035,3 as ifset out in full. 12. West American has a duty to defend and indemnitY based on the allegations in the Boyles' Complaint sounding in negligent misrepresentation, i.e.. Defendant Shulers "knew or should have known of the extensive tennite infestation and damage to the property before the date of closing [July 31,1991]... ," 13, All factual averments of conduct on the part of Defendant Shulers arose prior to closing and during the policy period, i,e" on or before July 31, 1991. 14. While the only count against Defendant Shulers is entitled "Fraud", the averments that they "knew or should have known" allege negligent conduct which is not excluded from coverage. ~ Boyle v O'Dell, 413 Pa, Super, 562, 605 A.2d 1260 (1992). 15. It is well settled that an insurer's duty to defend is triggered where the complaint against the insured alleges facts which would bring the claim within the policy's coverage if the allegations are true. ~ Standard Venetian Blind Co v American Empire Insurance Co , 503 Pa. ' " ]00,469 A.2d 56] (198]) 16, The "occurrence" in this case is the alleged representation(s) made by Defendant Shulers that induced the purchase of the residence, 17, Any ambiguity in the policy must be resolved against the insurer, West American, ~ DiFabio v Centaur Insurance Co . ]66 I'a Super 590, 53 1 A,2d 1141 (19117), WEST AMERJCAN INSURANCE CO, Plaintiff. · IN THE COURT OF COMMON PLEAS · CUMBERLAND COUNTY, PENNSYL VANIA . v, · NO, 96-1281 EQUITY TERM . JAY A SHULER, HELEN D,S, SHULER, · MICHAEL J BOYLE, TONY A BOYLE, · JACK GAUGHEN RELATOR, · ELLEN JOHNSTON, and KELLOGG · JURY TRIAL DEMANDED ENVIRONMENTAL SERVICES, INC" · Defendants · DEFENDANT SHULERS' RESPONSE TO MOTION FOR SUMMARY JUDGMENT PURSUANT TO Pa. R.c.P. I03~,J and CROSS MOTION FOR SUMMARY JUDGMENT SUBMITTED ON BEHALF OF DEFENDANT SHIJLERS I, The Declaratory Judgment Complaint speaks for itself. 2, The Boyles' Complaint speaks for itself ), Denied as stated, While it is admined that Count I of the Boyles' Complaint against Defendant Shulen is entitled "Fraud". the factual averments state that Defendant Shulers "knew or should have known of the extensive termite infestation and damage to the premises before the date of closing", ," ~ Boyles' Complaint paragraph 19, These allegations indicate negligent conduct which is not excluded from coverage, 4, 5, 6, itself 7, itself Admitted. Admitted, The policy attached as Exhibit" A" to the Motion for Summary Judgment speaks for The policy attached as Exhibit "A" to the Motion for Summary Judgment speaks for 8, The policy anached as Exhibit" A" to the Motion lor Summary Judgment speaks for itself 9, It is denied that the policy issued by West American Insurance Company ("West American") to Defendant Shulers does not provide coverage (a) Contrary to West American's Motion, the "occurrence" set out in Boyles' Complaint is the representation(s) regarding termite infestation made by Defendant Shulers prior to closing; (b) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of $30,000,00; (c) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of$30,OOO,OO; (d) Contrary to West American's Motion, the Boyles' Complaint alleges negligent misrepresentation by Defendant Shulers, Le" they "knew or should have knownlt~ (e) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of $30,000,00; (I) Contrary to West American's Motion, the Boyles' Complaint alleges termite damage to the property in excess of $30.000,00; (g) Contrary to West American's Motion, the Boyles' Complaint alleges facts within the policy, 10, No response required, WHEREFORE, Defendant Shulers respectfully request this Court 10 deny West American's Motion for Summary Judgment, _..1, DEFENDANT SHULERS' CROSS MOTION FOR SUMMARY JUDGMENT II, Defendant Shulers incorporate their response to Motion for Summary Judgment pursuant to Pa, R,CP 1035,3 as if set out in full, 12, West American has a duty to defend and indemnitY based 011 the allegations in the Boyles' Complaint sounding in negligent misrepresentation, i,e" Defendant Shulers "knew or should have known of the extensive termite infestation and damage to the property before the date of closing [July 31,1991]...." 13, All factual averments of conduct on the part of Defendant Shulers arose prior to closing and during the policy period, i,e" on or before July 31, 1991. 14, While the only count against Defendant Shulers is entitled "Fraud", the averments that they "knew or should have known" allege negligent conduct which is not excluded from coverage, ~ Boyle v O'Deil, 413 Pa, Super, 562,605 A,2d 1260 (1992), 15, It is well settled that an insurer's duty to defend is triggered where the complaint against the insured alleges facts which woulJ bring the claim within the policy's coverage if the allegations are true, ~ Standard Venetian Blind Co v American Empire Insurance Co, 503 Pa. 300, 469 A,2d 563 (1983), 16, The "occurrence" in this case is the alleged representation(s) made by Defendant Shulers that induced the purchase of the residence, 17, Any ambiguity in the policy must be resolved against the insurer, West American, .s.= DiFabio v Celllaur Insurance Co, 366 Pa, Super, 590, 53 I A,2d 1141 (1987), PRABCIPI rOR LISTING CASI rOR ARGOMINT (Mu.t be typ.WTieeen and auhmitt.d in dupliaaee) TO TBI PROTHONOTARY or CtlMBBRLAND COUNTY I Please list the within matter for the next Argument Court. CAPTION OF CASE: (.ntir. caption must b. stated in full) WEST AMERICAN INSURANCE CO., Plaintiff vs. JAY A. SHULER, HELEN D,S. SHULER, MICHAEL J. BOYLE, TONYA BOYLE, JACK GAUGHEN REALTOR, ELLEN JOHNSON, KELLOGG ENVIRONMENTAL SERVICES, INC" Def.ndante No. 96-1281 Equity T.rm 1, State matter to be argued (i..., plaintiff's motion for new trial. defendant's demurrer to complaint, etc.): Plaintiff's Motion for Summary Judgment ~. Identify counsel who will argue case: (a) for plaintiff: Douglas B. Marcello Address: Post Office Box 999, Harrisburg, PA 17108-0999 (b) for defendant Shuler: James L. Goldsmith Address: 3631 North Front Street, Harrisburg, PA 17110 (c) for defendant Gaughen and Johnston: C. Roy Weidner, Jr, Address: Post Office Box 109, Lemoyne, PA 17043-0109 (d) for defendant Kellogg: Kellogg Environmental Services, Inc. Address: 816 Anthony Drive, Mechanicebllrg, PA 17055 (e) for defendants Boyle: Michael J, and Tanya Boyle Address: 125 Conley Lane, Etters, PA 17319 3. I will notify all parties in writing within two days that this case ha. been listed for argument. 4. Argument Court Date: August 13, 1997. Dated: 6/25/97 ~~-<::S--;<- >~ Atto ey -'r Plaintiff ......... " JJ ~ -.I "" ::,;:t : "ljJl ,- ;',) -'~ G. '>; r!~ -1'1 , " j-..; <..im ---I ~j -< WHEREFORE, Plai~tiff request this Honorable Court enter summary judgment in favor of Plaintiff, Respectfully submitted, THOMAS, THOMAS " KArIR Dated: 7/;yf11 ~ \~~ Doug~~'~r~-::~ire I,D/'No, 36510 305 North Front Street P.O, Box 999 Harrisburg, PA 17108-0999 (717) 255-7238 Attorney for Plaintiff 2 7/'Dmal. 7/'Dmal &> %.fe,. 'J{//OrM'I' ali'aw SIXTH FLOOR . ,,--". -- 1 i""J.\, 'T(\ " \-,. ,;'! .:~:': .105 NORTH FRONT S fREer PO BOlC'Jllq HAARISBIJAG. PA !!IOtt Kellogg Environmental Services. Inc. 816 Anthony Dr Mechanicsburg PA 17055 'J/'Ot1UJ#. 'J/'Ot1UJ# & Jfaj,,. 7111Dt'_'11 al .faw J05 NORTH FRONT STREET SIXTH FLOOR POBOX 999 HARRISBURG. PA 17108 ."'. \,'l.! :::<:. --'-. ~ .._~.~ ,': ( \;\ .' -,; .,;) -' : A, ~ i: (".\ " .. , ,I.. ',1 ........1 . "7 ., ~~ . (. --~ . , . . . DOUGLAS B MARCELLO ESQUIRE THOMAS THOMAS & HAFER 305 NORTH FRONT STREET POST OFFICE BOX 999 HARRISBURG PA 17108-0999 .",.' ,o'" .-.#0 , . 'JltJnJQ,. 'J/,tJma, & :Jfa;',. :JI"o,.~'I' al1'aw :<tt', 'L, ," .'...._.. ..#".... -.:-t-. , ~/ ~ JO:'i NORrH FRONT srAEET SUI Ht flOOR ", , I, :1 "-'-," :, ~ \ G ~ I: o.~2-Jf p 0 BO~ 999 , . , i! " " HARRISBURG, PA 17101J JAMES L GOLDSMITH ESQUIRE CALDWELL & KEARNS 3631 NORTH FRONT STREET HARRISBURG PA 17110 ~~''''''''-',""",'' . , ~~..>, ~ \ j ~., .....; , ' " . ..J> , ! .1 !. ' I'y, 'Jl.omal. 'Jl.omal & :Jfa/e,. 'JIlltJ,.",'1# oll'ow 305 NOATH FRQNT 5 TREET SIll:TH FLOOR P 0 eo. 999 .....- ....".. /-.."-.# 'j.' ( p',,"'i.} ,..,J -', .j.-- . ~\, -.., ,', n ~: i. ","} : .. i. \: \: \: .,,' -..- HARRISBURQ, PA 11108 MICHAEL J BOYLE AND T ANY A BOYLE 125 CONLEY LANE ETTERS PA 17319 ,,~ ' " ( t 'f'~ t r " ;\ , I , ' 'T . " " ...., ,. , 'J!.Onw6. 'J!.Onw6 & :Jfapr 7/IID""''I. al .faw 0' .,,'" , " ~'-' ';.';"~'- "'-""-' .', . . p 0 80X 999 . ) . I~, . ," 'I ~ j I f' ~ ~;i :,' i! ,<',I\i. "I'I :: \? ~. : " _, L , l' -- '1: JO.'S NORTH FRONT STREET SIUH FLOOR HARRISBURG. PA "106 C ROY WEIDNER JR ESQUIRE JOHNSON DUFFIE STEWART & WEIDNER 301 MARKET STREET POST OFFICE BOX 109 LEMOYNE PA 17043-0109 WEST AMERICAN INSURANCE CO" IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY. PA NO, 96-1281 EQUITY TERM Plaintiff, v, JAY A, SHULER, HELEN O. S, SHULER. MICHAEL J. BOYLE. TONYA BOYLE. JACK GAUGHEN REALTOR, ELLEN JOHNSTON, KELLOG ENVIRONMENTAL SERVICES. INC, . JURY TRIAL DEMANDED Defendants, AND NOW. this ORDER day of , 1997, upon withdrawal of Shulers for their claim for coverage and upon the failure of any other parties to respond to the Motion for Summary Judgment pursuant to Pa.R,C.P, Rule 1035,3. Summary Judgment is hereby entered in favor of Plaintiffs, BY THE COURT: J, -j r:':JUL 1 6 1997