Property Owners Protector. Policy

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3 CONTENTS Welcome to Argus 4 Our promse of servce and complants procedure 5 Defntons of common terms to save lengthy repetton 5 SECTION 1 - Property Damage 7 SECTION 2 - Loss of Rent 19 SECTION 3 - Property Owners Lablty 25 SECTION 4 - Employers Lablty 34 SECTION 5 - Personal Accdent 38 SECTION 6 - Machnery Breakdown 47 SECTION 7 - Drectors and Offcers Lablty for Resdents Assocatons 54 SECTION 8 - Terrorsm 58 Condtons 62 Exclusons 66 3

4 We welcome you as a holder of Argus Insurance Company (Europe) Lmted a locally ncorporated Company assocated wth the Argus Insurance Group offerng you an extensve nsurance servce. Please read ths Booklet together wth your Schedule. These set out the cover you have chosen, plus any lmts that apply. If you are not satsfed wth the detals or the polcy does not cover your needs, please return the Schedule to your nsurance advser. THE CONTRACT OF INSURANCE Ths polcy s a contract between you and Argus Insurance Company (Europe) Lmted and s based on the nformaton you gave us when you appled for ths nsurance.in return for your premum, we wll provde the cover shown n the Schedule durng the perod of nsurance. THE LEGAL DEFINITION In return for payment by you, we wll provde nsurance n accordance wth the polcy cover shown n the polcy schedule n respect of accdent, njury, loss or damage occurrng wthn the terrtoral lmts (or n the course of transt between any ports theren ncludng the processes of loadng and unloadng) durng the perod of nsurance. LAW APPLICABLE TO CONTRACT You and the nsurer are free to choose the law to ths contract but n the absence of agreement to the contrary, the law of the country n whch you resde at the date of the contract (or, n case of a busness, the law of the country n whch the regstered offce or prncple place of busness s stuated) wll apply. If you are not resdent (or, n the case of a busness, the regstered offce or prncple place of busness s not stuated) n Gbraltar, the law whch wll apply s the law of Gbraltar. USE OF LANGUAGE Unless otherwse agreed, the contractual terms and condtons and other nformaton relatng to ths contract wll be n Englsh. CHANGES WE NEED TO KNOW ABOUT Please tell your nsurance advser mmedately f there are any changes whch may affect ths nsurance for example: The people to be nsured; The sums nsured are not adequate; Change of vehcle; Crmnal convctons or cautons of the people nsured. Any change n crcumstances may result n revsed terms and condtons of ths polcy from the date of the change. If you do not tell us about any change, t may affect any clam you make. Sgned on behalf of the Insurer Tyrone Montovo Drector 4

5 OUR SERVICE TO YOU, COMPLAINTS PROCEDURE AND OUR PROMISE OF SERVICE We are commtted to delverng a frst class qualty servce to all our customers, we do however realse that occasonally thngs can go wrong. We take any complant serously and am to resolve any problems as soon as possble. To ensure that we provde the knd of servce you expect, we always welcome your feedback to make sure that we contnually mprove our servce to you. What wll happen f you make a complant? We wll acknowledge your complant wthn 5 workng days of recevng t. We wll am to resolve complants, followng assessment and nvestgaton as soon as possble. Most concerns can be resolved quckly, but sometmes we wll need to go nto more detal. If ths looks lkely we wll keep you updated about the stuaton and let you know when you can expect to hear from us. If you are unhappy wth any aspect of the handlng of your nsurance, your frst pont of contact should be your nsurance advsor or your usual Argus Insurance pont of contact. You can wrte to us or telephone us, whatever suts you best, and ask your contact to revew your problem. If you are unhappy wth the decson you receve from us, you should wrte to, The General Manager, Argus Insurance Company (Europe) Lmted, PO Box 45, Regal House, 3 Queensway, Gbraltar. If you are dssatsfed wth our fnal decson, you can refer the matter to the Department of Consumer Affars, 10 Governor s Lane, Gbraltar. POLICY DEFINITIONS The followng defntons apply to ths (unless amended by Secton Defntons) and are denoted by a captal frst letter throughout ths. ALL OTHER CONTENTS Any contents that are not Contents of Common Parts, ncludng: deeds, documents, manuscrpts and busness books, but only for the cost of the materals and clercal labour expended n reproducng such records computer systems records, but only for the cost of the materals and of clercal labour and computer tme expended n reproducng such records, for an amount not exceedng 10,000 n total and so far as they are not otherwse nsured partners, drectors and employees personal effects of every descrpton (other than motor vehcles) whlst at the Premses, for an amount not exceedng 500 for any one person. BUILDING/BUILDINGS The buldngs at the Premses beng, unless more specfcally descrbed, bult manly of brck, stone, concrete or other noncombustble materals, ncludng: landlord s fxtures and fttngs (ncludng communal televson and rado recevng aerals, satellte dshes and related fttngs on or n resdental Premses), fxed glass, fxed santaryware and walls, gates and fences n, on or pertanng to the buldngs telephone, gas, water and electrc nstruments, meters, ppng, cablng and the lke and ther accessores n, on or pertanng to the buldngs ncludng such property n adjonng yards or roadways or underground at the Premses extendng to the publc mans 5

6 fuel tanks and ther ancllary equpment, ppework and the lke at the Premses small outsde buldngs, annexes, gangways, convenences and other small structures at the Premses roads, car parks, yards, paved areas, hard-surfaced areas, pavements and footpaths at the Premses. BUSINESS The busness descrpton stated n the Schedule. CONTENTS Contents of Common Parts and All Other Contents CONTENTS OF COMMON PARTS Ftted carpets, furnshngs and other contents n recepton and storage areas and other communal parts of the Buldngs ncludng: the contents of fuel tanks at the Premses portable communal property n the open grounds of and used n connecton wth the buldngs. EXCESS The frst part of each and every clam, for whch the Insured s responsble FLAT/FLATS A self contaned unt of resdental accommodaton formng part of the Buldng. INSURED The nsured named and shown n the Schedule INSURER Argus Insurance Company (Europe) Lmted. PERIOD OF INSURANCE The perod from the Effectve Date to the Renewal Date as shown n the Schedule POLICY The document descrbed n the Introducton PROPERTY/PROPERTY INSURED Buldngs, Contents of Common Parts, All Other Contents and other Property belongng to the Insured or for whch the Insured s responsble, as shown and/or descrbed n the Schedule. The Insurer agrees to accept the headng under whch any Property or other tem has been entered n the books of the Insured. RESIDENT The owner, lessee or tenant of any Flat and/or members of ther household. SCHEDULE The part of ths that detals nformaton formng the bass of ths contract and that shows the Sectons of ths selected SECTION/SECTIONS The Parts of ths that detal the nsurance cover provded for each ndvdual secton of ths SUM INSURED The maxmum amount the Insurer wll pay for each tem nsured under any Secton. TOTAL SUM INSURED The total amount payable by the Insurer under any Secton UNOCCUPIED Any Buldng, part of any Buldng or Flat that s unfurnshed, untenanted or no longer n actve use. 6

7 SECTION 1 - PROPERTY DAMAGE The followng defntons apply to ths Secton n addton to the Defntons DEFINITIONS PREMISES The Buldngs at the address or addresses shown n the Schedule, ncludng ther grounds, all wthn the boundares for whch the Insured are responsble and beng, unless more specfcally descrbed n the Schedule, occuped solely by the Insured for the purpose of the Busness. COVER The Insurer wll pay the Insured for Damage to Property Insured at the Premses caused by any of the Events operatve under ths and not otherwse excluded occurrng durng the Perod of Insurance. EVENTS 1. Fre, excludng Damage caused a. by exploson resultng from fre b. by earthquake or subterranean fre c. by ts own spontaneous fermentaton or heatng, or ts undergong any heatng process or any process nvolvng the applcaton of heat d. to any partcular pece of electrcal apparatus or fttng whch has caused a fre due to self-gnton, over runnng, excessve pressure, short crcutng, self-heatng or leakage of electrcty Lghtnng Exploson a. of bolers b. of gas used for domestc purposes only, but excludng any Damage caused by earthquake or subterranean fre. 2. Exploson, excludng Damage a. caused by or consstng of the burstng by steam pressure of a boler (not beng a boler used for domestc purposes only), economser or other vessel, machne or apparatus belongng to the Insured or under the control of the Insured, n whch nternal pressure s due to steam only b. n respect of and orgnatng n any vessel, machnery or apparatus or ts contents, belongng to the Insured or under the control of the Insured, whch requres to be examned to comply wth any statutory regulatons, unless there s n force a polcy of nsurance or other contract provdng the requred nspecton servce. 3. Arcraft or other aeral devces or artcles dropped from them 4. Rot, Cvl Commoton, Strkers, Locked Out Workers, Persons Takng Part n Labour Dsturbances or Malcous Persons excludng a. Damage arsng from natonalsaton, confscaton, requston, sezure or destructon by the Government or any publc authorty 7

8 b. Damage arsng from cessaton of work c. Damage by theft or attempted theft n respect of any buldng whch s Unoccuped drectly caused by malcous persons not actng on behalf of or n connecton wth any poltcal organsaton, but the Insurer wll pay for such Damage caused by fre or exploson 5. Earthquake 6. Subterranean Fre 7. Storm, Tempest or Flood, excludng a. Damage attrbutable solely to change n the water table level b. Damage by frost, subsdence, ground heave or landslp c. Damage n respect of fences, gates or moveable property n the open d. Damage to open-fronted or open-sded Buldngs or to Property contaned theren. 8. Escape of Water from any Tank, Apparatus or Ppe, excludng a. Damage by water dscharged or leakng from any automatc sprnkler nstallaton b. Damage n respect of any Buldng whch s Unoccuped. 9. Impact by any road vehcle or anmal 10. Sprnkler Leakage Accdental escape of water from any automatc sprnkler nstallaton n the Premses not caused by a. freezng whlst the Buldng n so far as t s n the Insured s ownershp or tenancy s Unoccuped b. exploson, earthquake, subterranean fre or heat caused by fre 11. Theft or Attempted Theft nvolvng forcble and volent entry to or ext from the Buldngs or hold-up by volence or threat of volence to the Insured or any partner, drector, employee of the Insured or members of ther famles or any other person who has a legal rght to be on the Premses excludng Damage a. expedted or n any way brought about by the Insured or any partner, drector or employee of the Insured or any other person who has a legal rght to be on the Premses b. to Money, deeds, securtes, jewellery, precous stones or precous metals, bullon, furs, curostes, works of art or rare books unless such property s specfcally descrbed n the Schedule c. to Property n the open or n open sded or fronted buldngs or n buldngs not on permanent foundatons unless such buldngs are specfcally descrbed n the Schedule. 8

9 12. Subsdence, Ground Heave or Landslp of any part of the Premses on whch the Property Insured stands excludng Damage caused by a. collapse, crackng, shrnkage, expanson or settlement of Buldngs or any part thereof b. coastal or rver eroson c. defectve desgn or workmanshp or the use of defectve materals ncludng nadequate constructon of foundatons d. settlement or movement of made up ground e. the normal settlement or beddng down of new structures f. Damage to sold floor slabs or resultng from ther movement unless the foundatons beneath the external walls of the Buldngs are Damaged at the same tme and from the same cause g. Damage to yards, car parks, roads, pavements, landlords fxtures and fttngs, securty lghtng and cameras, walls, gates, fences, fxed fuel ol tanks and fxed desel tanks, ppng, ductng, cables, wres and assocated control gears and accessores, paved areas or footpaths unless a Buldng nsured by ths Secton s Damaged by the same cause at the same tme h. whch orgnates pror to the ncepton of ths cover. demolton, constructon, structural alteraton or repar to any Buldngs or groundworks or excavaton at the same Premses j. Events 1, 2, 5, 6 or 8. Specal Condton The Insured shall notfy the Insurer mmedately they become aware of any demolton, groundworks, excavaton or constructon beng carred out on the same or any adjonng ste. The Insurer shall then have the rght to vary the terms or cancel cover n respect of subsdence, ground heave or landslp. 13. Accdental Damage, (f specfed n the schedule) excludng a. Damage caused by or consstng of or arsng from or attrbutable to any of the Events any of the exclusons to the Events specfed n Events 1-12 and 14, whether Events 1-12 and 14 are nsured or not b. Damage caused by or consstng of nherent vce, latent defect, gradual deteroraton, wear and tear, frost, ts own faulty or defectve desgn or materals but ths shall not exclude Damage whch tself results from a cause not otherwse excluded c. Damage caused by or consstng of faulty or defectve workmanshp, operatonal error or omsson by the Insured or any employee of the Insured but ths shall not exclude such Damage not otherwse excluded whch tself results from an nsured Event subsequent Damage whch tself results from a cause not otherwse excluded d. Acts of fraud or dshonesty by any partner, drector or employee of the Insured but ths shall not exclude such Damage not otherwse excluded whch tself results from Events 1-12 and 14 9

10 e. Damage caused by or consstng of corroson, rust, wet or dry rot, shrnkage, evaporaton, loss of weght, dampness, dryness, marrng, scratchng, vermn or nsects, change n temperature, colour, flavour, texture or fnsh but ths shall not exclude such Damage not otherwse excluded whch tself results from Events 1 to 12 and 14 subsequent Damage whch tself results from a cause not otherwse excluded f. Damage consstng of jont leakage, falure of welds, crackng, fracturng, collapse or overheatng of bolers, economsers, super heaters, pressure vessels or any range of steam and feed ppng connected to them mechancal or electrcal breakdown or derangement n respect of the partcular machne, apparatus or equpment n whch such breakdown or derangement orgnates but ths shall not exclude such Damage whch tself results from other Damage and s not otherwse excluded, or subsequent Damage whch tself results from a cause not otherwse excluded g. Damage caused by dsappearance, unexplaned or nventory shortage or the msflng or msplacng of nformaton h. Damage caused by normal settlement or beddng down of new structures. Damage to any Buldng or structure caused by ts own collapse or crackng, but ths shall not exclude such Damage resultng from other Damage n so far as t s not otherwse excluded j. Damage n respect of fences, gates and moveable Property n the open caused by wnd, ran, hal, sleet, snow or dust k. Damage to any Property resultng from ts undergong any process of producton, packng, treatment, testng, commssonng, servce or repar l. Damage n respect of jewellery, precous stones or precous metals, bullon, furs, curostes, works of art or rare book property n transt glass (other than fxed glass), santaryware (other than fxed santaryware), chna, earthenware, marble or other fragle or brttle objects v Money, bonds or securtes of any descrpton but ths shall not exclude other Damage n so far as t s not otherwse excluded m. Damage to vehcles lcensed for road use (ncludng accessores on them), caravans, tralers, ralway locomotves, rollng stock, watercraft or arcraft property or structures n course of constructon or erecton and materals or supples n connecton wth all such property or structures land, roads, pavements, pers, jettes, brdges, culverts or excavatons v lvestock, growng crops or trees but ths shall not exclude such Property specfcally descrbed n the Schedule 10

11 n. theft or attempted theft 14. Escape of Ol from any fxed heatng nstallaton excludng a. Damage n respect of any Buldng or Property Insured n any Buldng whch s Unoccuped b. Damage unless caused by a sudden dentfable unntended and unexpected ncdent whch has taken place n ts entrety at a specfc tme and place durng the Perod of Insurance c. the value of the ol lost BASIS OF SETTLEMENT 1. The Insurer wll pay the Insured the value of the Property Insured at the tme of ts Damage, or at the Insurer s opton wll renstate or replace such Property or any part of such Property. 2. The most the Insurer wll pay for any one clam s the Total Sum Insured, or for each tem ts ndvdual Sum Insured, or any other lmt of lablty n ths Secton whchever s the less at the tme of Damage. 3. Any Excess wll be deducted from the amount payable after the applcaton of all terms and condtons of ths Secton and the ncludng any Average (Undernsurance) Bass of Settlement Adjustment. The Excess apples to each separate Premses. AUTOMATIC REINSTATEMENT In the absence of wrtten notce by the Insured or the Insurer to the contrary, n consderaton of Sums Insured or lmts of lablty not beng reduced by the amount of any clam from the date of the Damage, the Insured wll pay the approprate addtonal premum due for the perod from the date of Damage to expry of the Perod of Insurance, but ths shall not apply n respect of theft or attempted theft. BASIS OF SETTLEMENT ADJUSTMENTS Subject to the terms, condtons, exclusons and lmts of ths Secton, n calculatng the most the Insurer wll pay for any one clam, adjustments shall be made n accordance wth the followng clauses. 1. Renstatement (Day One Bass) a. Subject to the Specal Condtons set out below, the bass on whch the amount payable for Buldngs and Contents s to be calculated wll be the renstatement of the Property Damaged. For ths purpose renstatement means the rebuldng or replacement of Property Damaged whch, provded the Insurer s lablty s not ncreased, may be carred out 1. n any manner sutable to the requrements of the Insured 2. on another ste the repar or restoraton of Property Damage n ether case to a condton equvalent to, or substantally the same as, but no better or more extensve than ts condton when new. b. The Declared Value havng been stated n wrtng by the Insured, has been used to calculate the premum. 11

12 Declared Value means the assessment by the Insured of the cost of renstatement of Property Insured arrved at n accordance wth paragraph 1a of the Bass of Settlement Adjustments at the level of costs applyng at ncepton of the Perod of Insurance (gnorng nflatonary factors whch may subsequently operate), together wth, to the extent that cover provdes, due allowance for any addtonal cost of renstatement to comply wth Publc Authortes regulatons, bye-laws or stpulatons professonal fees removal of debrs costs. Renstatement (Day One Bass) Specal Condtons 1. At the ncepton of each Perod of Insurance, the Insured shall notfy the Insurer of the Declared Value of Property Insured. In the absence of such declaraton the last amount declared by the Insured wll be taken as the Declared Value for the new Perod of Insurance, approprately adjusted for Index Lnkng where applcable. For the purposes of ths Condton, Index Lnkng shall be calculated n the followng manner. Sums Insured and/or Declared Values wll be adjusted n accordance wth current ndexaton percentages n the approprate ndex and renewal premums wll be based on the adjusted Sums Insured and/or Declared Values. The percentage changes wll contnue to be appled between the date of any Damage and the date when replacement or repar has been completed. 2. If at the tme of Damage the Declared Value of the Property s less than the cost of renstatement (as defned n paragraph 1a of the Bass of Settlement Adjustments) at ncepton of the Perod of Insurance, the amount payable by the Insurer wll be proportonately reduced. 3. The Insurer s lablty for the repar or restoraton of Property Damaged n part only, shall not exceed the amount whch would have been payable f such Property had been wholly destroyed. 4. No payment beyond the amount the Insurer would have pad n the absence of ths clause wll be made a. unless renstatement commences and proceeds wthout unreasonable delay b. untl the cost of renstatement has actually been ncurred c. where Property Insured at the tme of Damage s covered by any other nsurance effected by the Insured, or on behalf of the Insured, whch s not on the same bass of renstatement. 5. All the terms and condtons of ths Secton and the shall apply a. to any clam payable under the provsons of ths clause, other than where they are expressly vared by the terms of ths clause b. where clams are payable as f ths clause had not been ncorporated, except that Sums Insured wll be lmted to Declared Values. 2. Average (Undernsurance) The Sums Insured by a. any tems for Buldngs or Contents subject to the Renstatement (Day One Bass) clause are declared to be separately subject to Average as descrbed n Specal Condton 2 of such clause b. any other tems of Property Insured (other than any Sum Insured applyng solely to rent, fees, removal of debrs or prvate dwellngs) are declared to be separately subject to Average. Ths means f at the tme of Damage the Sum Insured for any tem s less than the value of the tem covered by such Sum Insured, the amount payable by the Insurer wll be proportonately reduced. 12

13 3. Contrbuton and Average If at the tme of Damage any other nsurance has been effected by or on behalf of the Insured coverng any of the Property Damaged, the Insurer s lablty under ths Secton shall be lmted to the Insurer s rateable proporton of such Damage. If such other nsurance s subject to Average (Undernsurance), ths Secton f not already subject to Average shall be subject to Average n lke manner. If such other nsurance s subject to any provson whch excludes t from rankng concurrently wth ths Secton, ether n whole or n part, or from contrbutng rateably, the lablty of the Insurer under ths Secton shall be lmted to that proporton of the Damage whch the Sum Insured for ths Secton bears to the value of the Property. 4. Publc Authortes Subject to the Publc Authortes Specal Condtons set out below, cover for Buldngs and Contents ncludes an amount n respect of any addtonal cost of renstatement whch s ncurred solely by reason of the necessty to comply wth buldng or other regulatons under or framed n pursuance of any Act of Parlament, wth bye-laws of any publc authorty or to comply wth the stpulatons of European Unon legslaton, n consequence of Damage, excludng 1. the cost ncurred n complyng wth such regulatons, bye -laws or stpulatons a. n respect of Damage occurrng pror to the grantng of ths cover b. n respect of Damage not nsured by ths Secton c. under whch notce has been served upon the Insured before the date of the Damage d. n respect of undamaged Property or undamaged portons of Property, other than foundatons (unless specfcally excluded) of that porton of the Property Damaged 2. the addtonal cost that would have been requred to make good the Property Damaged to a condton equal to ts condton when new, had the necessty to comply wth such regulatons, bye-laws or stpulatons not arsen 3. the amount of any charge or assessment arsng out of captal apprecaton, whch may be payable n respect of the Property, by reason of complance wth any such regulatons, bye-laws or stpulatons. Publc Authortes Specal Condtons 1. The work of renstatement must be commenced and carred out wthout unreasonable delay and n any case must be completed wthn twelve (12) months after the Damage, or wthn such further tme as the Insurer may allow, and may be carred out upon another ste (f such regulatons, bye-laws or stpulatons so necesstate), subject to there beng no resultng ncrease n the lablty of the Insurer. 2. If the lablty of the Insurer s reduced by the applcaton of any of the terms and condtons of ths Secton or the (other than as a result of ths clause), the lablty of the Insurer under ths clause wll be reduced n proporton. 3. All the terms and condtons of ths Secton and the shall apply to any clam payable under the provsons of ths clause, other than where they are expressly vared by the terms of ths clause. 5. Servces Cover ncludes telephone, gas, water and electrc nstruments, meters, ppng, cablng and the lke and ther accessores, ncludng smlar property n adjonng yards or roadways or underground, all pertanng to Buldngs or Contents nsured by ths Secton, beng the property of the Insured or for whch the Insured are responsble. 6. Alteratons and Addtons To the extent that they are not otherwse nsured, Buldngs and Contents tems nclude a. alteratons, addtons and mprovements (but not apprecaton n value n excess of Sums Insured) to Buldngs, machnery and plant 13

14 b. any newly acqured or newly erected Buldngs, machnery or plant each tem covered, or 250,000 n total, whchever s the less, at any one Premses or at any one newly acqured address elsewhere than at the Premses, provded that the Insured shall gve detals of such alteratons and addtons to the Insurer wthn nnety (90) days of the commencement date of the Insured s responsblty, effect specfc cover retrospectve to such date and pay the approprate addtonal premum. 7. Professonal Fees Sums nsured and/or Declared Values for Buldngs and Contents nclude an amount n respect of archtects, surveyors, legal and consultng engneers fees, other than where an tem coverng such fees s specfcally descrbed n the Schedule. Cover apples only to those fees necessarly and reasonably ncurred n consequence of Damage, n the renstatement or repar of Property Insured. 8. Removal of Debrs Costs Sums nsured and/or Declared Values for Buldngs, Contents and Stock nclude an amount n respect of removal of debrs costs, other than where an tem coverng such costs s specfcally descrbed n the Schedule. Cover apples only to those costs necessarly and reasonably ncurred n consequence of Damage, n a. removng debrs b. dsmantlng and demolshng c. shorng up or proppng d. clearng, cleanng and/or reparng drans, gutters, sewers and the lke for whch the Insured are responsble. The Insurer wll not pay for any costs or expenses a. ncurred n removng debrs other than from the ste of such Property Damage and the area mmedately adjacent to such ste b. arsng from polluton or contamnaton of Property not nsured by ths Secton. 9. Temporary Removal Property Insured (other than Stock) s covered whlst temporarly removed for cleanng, renovaton, repar or smlar purposes to any address elsewhere than at the Premses, ncludng whlst n transt, wthn Gbraltar. The Insurer wll not pay for a. such property more specfcally nsured b. Damage to vehcles lcensed for road use, n so far as they are nsured by ths Secton, occurrng elsewhere than at the Premses from whch such vehcles are removed c. more than 10% of the sum nsured for each tem covered, for Damage occurrng elsewhere than at the Premses. 10. Temporary Removal - Documents If deeds and other documents (ncludng stamps on them), manuscrpts, plans and wrtngs of every descrpton, books and other busness records are ncluded n the Property Insured, such tems are covered whlst temporarly removed to any address elsewhere than at the Premses, ncludng whlst n transt wthn Gbraltar. The Insurer wll not pay for a. such tems more specfcally nsured b. more than 10% of the fgure stated wthn the defnton of contents for computer systems records 14

15 c. more than 10% of the total value of such tems. 11. Contract Prce In respect only of goods sold but not delvered, for whch the Insured reman responsble under the terms of a contract of sale, where such contract of sale s cancelled followng Damage by reason of ts condtons, ether wholly or to the extent of the Damage, cover wll be based on the contract prce. For the purpose of ths clause the value of all goods to whch ths bass of settlement could apply n the event of Damage wll also be ascertaned on ths bass. 12. Rent Where an tem coverng rent s specfcally descrbed n the Schedule, cover apples only f a Buldng n respect of whch rent s payable by or to the Insured, or any part of t, s unft for occupaton n consequence of Damage. The Insurer wll not pay for more than the proporton of the Sum Insured on rent that the perod necessary for renstatement bears to the term of rent covered. 13. Dsmantlng and Re-erecton Costs Cover ncludes the cost of dsmantlng, re-erecton, fttng and fxng of Contents followng Damage. 14. Fxed Glass and Neon/Illumnated Sgns Cover extends to nclude Damage to fxed glass, glass shelves, showcases and counter cases, mrrors and neon/llumnated sgns. Followng Damage to fxed glass or neon/llumnated sgns the Insurer wll pay the cost of a. any necessary boardng up or temporary glazng pendng full replacement b. replacng alarm fol, letterng, pantng, embossng, slverng or other ornamental work on glass c. Damage to Contents or Stock caused by broken glass d. Removng and re-fxng wndow fttngs and other obstacles to replacng broken glass The Insurer wll not pay for Damage 1. n respect of neon and llumnated sgns l v arsng from adjustment, repar, dsmantlng or erecton of any part of the sgn, or whlst such sgn s removed from ts normal workng poston arsng from mechancal breakdown of the sgn or any part of the sgn to any part of the sgn by ts own gnton electrcal breakdown or burn out to tubes unless the glass s fractured 2. exstng pror to the ncepton of ths Secton 15. Fre Extngushers, Sprnklers and Securty Equpment The Insurer wll pay the reasonable costs ncurred by the Insured n a. re-fllng, rechargng or replacng any fre extngushers, local or fxed fre suppresson or gas floodng systems, sprnkler nstallatons and sprnkler heads b. havng any fre and/or ntruder alarms and closed crcut televson equpment re-set n consequence of Damage, provded that 15

16 the Insured mantan all such equpment under contract and n accordance wth the manufacturer s nstructons wth a mantenance company acceptable to the Insurer the Insurer shall not be lable n respect of any costs and expenses recoverable from the mantenance company or from the fre servce the lablty of the Insurer n respect of any one clam shall not exceed 10, Metered Utltes Cover ncludes addtonal water, gas, electrcty, ol or other metered supply charges ncurred by the Insured up to an amount of 5,000 any one Perod of Insurance, n consequence of Damage, but the Insurer wll not pay for such charges ncurred n respect of any Buldng whch s Unoccuped. The bass on whch the amount payable s to be calculated wll be the amount of the supplers charges for the perod durng whch Damage occurs, less the charge pad by the Insured for the correspondng perod n the precedng year, adjusted for charges n the supplers charges and for varatons affectng consumpton of the Insured durng the ntervenng perod. 17. Exhbtons Property Insured s covered whlst at any exhbton wthn Gbraltar ncludng whlst n transt to and from such exhbton for a perod not exceedng ffteen (15) days. The most the Insurer wll pay n respect of any one exhbton s 15, Trace and Access In the event of Damage n consequence of escape of water or fuel ol from any tank, apparatus or ppe, the Insurer wll pay costs necessarly and reasonably ncurred by the Insured n locatng the source of such Damage, and n the subsequent makng good of Damage caused as a consequence of locatng such source, up to an amount of 5,000 any one Perod of Insurance. 19. Seventy Two Hours (72) Clause Damage occurrng wthn seventy two (72) consecutve hours of and arsng from Event 7 (Storm, tempest or flood) s deemed to be one clam. The Insured have the rght to select the moment from whch the seventy two (72) hour perod shall be deemed to have commenced wthn the terms of ths Secton, provded that such Damage occurred pror to expry of the Perod of Insurance. 20. Interested Partes The Insurer agrees a. that wthout prejudce to rghts and labltes of the Insured or the Insurer, f at the tme of Damage the Insured have contracted to sell ther nterest n any Buldng covered, and the purchase has not been but shall afterwards be completed, the purchasers on completon of the purchase shall be enttled to beneft under ths Secton untl completon, except n so far as such Buldng s more specfcally nsured by or on behalf of the purchaser b. to note the nterest of any party notfyng ther nterest n any of the Property Insured n wrtng, the nature and extent of such nterest to be dsclosed n the event of Damage. 21. Landscaped Grounds Cover ncludes costs ncurred by the Insured n consequence of Damage to Property Insured at the Premses, up to an amount of 2,500 any one Perod of Insurance, n restorng landscape grounds to ther orgnal appearance when frst lad out and planted, but the Insurer wll not pay for costs arsng due to the falure of trees, shrubs, plants, turf and the lke to germnate or become establshed. 22. Locks and Keys The Insurer wll pay the cost of replacng locks and keys necessary to keep the Premses secure f keys are stolen usng force and volence up to an amount of 1,000 any one clam. 16

17 23. Seasonal Increase The Sum Insured n respect of Stock shall be ncreased by 25% durng: a. the months of November and December b. a perod of 14 days precedng and succeedng any Bank Holday other than a Bank Holday occurrng durng November and December 24. Damage to the Premses In the event that Buldngs at the Premses are not covered by ths Secton of the, the Insurer wll pay costs for whch the Insured are responsble, necessarly and reasonably ncurred by the Insured to repar Damage to the Premses n consequence of theft or attempted theft (as nsured by ths Secton). The Insurer wll also pay the cost of any temporary boardng-up or makng good necessary to keep the Premses secure. 25. Moulds, Tools and Des Cover ncludes moulds, tools, and des belongng to the Insured or for whch the Insured are responsble whlst at the Premses and whlst elsewhere than at the Premses at any premses wthn the Gbraltar not occuped by the Insured, ncludng whlst n transt thereto and therefrom by road, ral or nland waterway, provded that the lablty of the Insurer n respect of any one clam shall not exceed 5, Unauthorsed Use of Supples Cover ncludes water, gas, electrcty, ol or other metered supply charges ncurred by the Insured and for whch the Insured are legally responsble, due to unauthorsed use by persons takng possesson of, keepng possesson of or occupyng any Premses wthout the wrtten consent of the Insured, provdng that a. the Insured shall take all practcable steps to termnate such unauthorsed use as soon as t s dscovered b. the Insured has advsed the Insurer of such unauthorsed use mmedately on becomng aware of t c. Condton 17 Unoccuped Buldngs has been compled wth by the Insured d. the lablty of the Insurer shall not exceed 5,000 n respect of any one clam and any one Perod of Insurance 27. Renstatement to Match - Computer Equpment Where computer equpment has suffered Damage to the extent that repar s mpractcal and replacement by smlar property n a condton equal to but not better or more extensve than when new s mpossble, then the Insured may replace, repar or restore the Property wth equvalent property whch employs current technology and replacement, repar or restoraton wth such property for the purposes of ths Secton shall not be regarded as beng better or more extensve than when new Cover also extends to nclude the cost of replacement or modfcaton of undamaged computer equpment nsofar as t s necessary to adapt t to operate n conjuncton wth Damaged Property whch has been replaced, repared or restored the cost of replacement, repar or modfcaton of undamaged parts of computer equpment that form part of a matchng set of artcles, or sute of common desgn or functon where the Damage s restrcted to a clearly dentfable area or to a specfc part. Provded that a. the total lablty of the Insurer s not ncreased beyond the amount that would otherwse have been payable for the replacement, repar or restoraton of the Property Damaged n ts orgnal form that would have been payable for replacement, repar or modfcaton of the whole Property formng a set of artcles, or sute of common desgn or functon f such Property had been wholly destroyed 17

18 b. the Insurer shall be lable only for the amount suffcent to enable the Insured to resume operatons n substantally the same manner as before the Damage c. where Property s damaged n part only, the Insurer wll not pay more than the amount representng the cost whch the Insurer would have pad for repar, restoraton or replacement f such property had been wholly destroyed d. f Damage to computer equpment results n undamaged computer records beng ncompatble wth replacement computer equpment the Insurer wll pay the costs of modfyng the computer equpment or replacng computer records wth renstatement of programmes and/or nformaton (but not for the value of the nformaton to the Insured) whchever s the less 28. Theft Damage to Buldngs Cover ncludes Damage to Buldng(s) nsured under ths Secton caused by theft or attempted theft excludng a. Damage to any Unoccuped Buldng expedted or n any way brought about by the Insured or any partner, drector or employee of the Insured or any other person who has a legal rght to be on the Premses, unless such theft or attempted theft nvolved the threat of or assault or volence to the Insured or any partner, drector or employee of the Insured or any other person who has a legal rght to be on the Premses to Property whch s more specfcally or otherwse nsured b. the frst 250 of each and every clam c. any amount exceedng 25,000 Cover also ncludes the cost of any temporary boardng-up and makng good n consequence of such Damage necessary to keep the Premses secure. Excluson n of event 13 of ths Secton does not apply to ths Bass of Settlement Adjustment. 29. Alternatve Accommodaton If you are nsurng a block of flats on behalf of ndvdual owners or lessees and any flat s damaged and made unnhabtable due a vald clam for an nsured perl, we wll pay the reasonable addtonal expenses necessarly ncurred by such owner or lessee for alternatve accommodaton subject to a maxmum of 15% of the Buldngs Sum Insured. EXCLUSIONS The Exclusons apply to ths Secton and n addton the Insurer wll not pay for 1. Property whch at the tme of the happenng of Damage s nsured by or would but for the exstence of ths Secton be nsured by any marne polcy or polces, but the Insurer wll pay for any excess beyond the amount whch would have been payable under such marne polcy or polces had ths Secton not been effected. 2. any Property more specfcally nsured by or on behalf of the Insured. 18

19 3. Damage to pantngs, prnts and works of art wth a value n excess of 10,000 any one tem unless specfcally descrbed n the Schedule. 4. consequental loss or Damage of any knd or descrpton 5. the Excess. CONDITIONS The Condtons apply to ths Secton and n addton the followng: 1. Alteraton Unless the Insurer agrees n wrtng, cover under ths Secton shall be avoded for any of the Property Insured n regard to whch there s any alteraton after the commencement of ths Secton a. by removal b. by Buldngs or parts of Buldngs descrbed n the Schedule as occuped becomng Unoccuped, or as Unoccuped becomng occuped c. whch ncreases the rsk of Damage d. whch results n the nterest of the Insured ceasng other than by wll or operaton of law. 2. Renstatement If any Property s to be renstated or replaced by the Insurer, the Insured shall at ther own expense provde all plans, documents, books and nformaton as may reasonably be requred. The Insurer shall not be bound to renstate exactly, but only as crcumstances permt and n a reasonably suffcent manner. SECTION 2 LOSS OF RENT The followng defntons apply to ths Secton n addton to the Defntons DEFINITIONS CALCULATED RENT a. For occuped Premses or occuped parts of Premses The amount of the actual annual Rent at commencement of the Perod of Insurance plus ncreases as a result of rent revews known to be due durng such Perod of Insurance, proportonately ncreased when the Maxmum Indemnty Perod exceeds 12 months. b. For Premses or parts of Premses that are Unoccuped for a perod exceedng 30 consecutve days A professonal valuaton, based upon leases expected to be sgned or n course of negotatons and upon rent of smlar premses n the same localty, estmatng at commencement of the Perod of Insurance the amount of Rent to be payable durng such Perod of Insurance and durng related subsequent Perods of Insurance when the Maxmum Indemnty Perod exceeds 12 months. DAMAGE Loss or destructon of or damage to Property Insured at Premses used by the Insured for the purpose of the Busness. INDEMNITY PERIOD a. For occuped Premses or occuped parts of Premses 19

20 The perod begnnng wth the occurrence of the Damage and endng not later than the Maxmum Indemnty Perod thereafter durng whch the results of the Busness shall be affected n consequence of the Damage. b. For Premses or parts of Premses that are Unoccuped for a perod exceedng 30 consecutve days The perod begnnng wth the date upon whch but for the Damage rent would have commenced to be payable and endng not later than the Maxmum Indemnty Perod thereafter durng whch the results of the Busness shall be affected n consequence of the Damage. MAX INDEMNITY PERIOD The perod shown n the Schedule. PREMISES The Buldngs at the address or addresses stated n the Schedule, ncludng ther grounds, all wthn the boundares for whch the Insured are responsble. RENT The money pad or payable to the Insured by Resdents for accommodaton provded and servces rendered at the Premses. COVER The Insurer wll pay the Insured for Loss of Rent n consequence of Damage Provded that, other than n respect of Extensons 1-6 of ths Secton, a. such Damage s covered under Secton 1 Property Damage of ths b. payment shall have been made or lablty admtted under Secton 1 Property Damage or payment would have been made or lablty admtted under Secton 1 Property Damage but for the operaton of an Excess. c. the most the Insurer wll pay for any one clam s n the whole the Total Sum Insured, or any other lmt of lablty stated n ths Secton, whchever s the less. BASIS OF SETTLEMENT The Insurer wll pay the Insured, n respect of each Item covered, the amount of ther clam for Loss of Rent. AUTOMATIC REINSTATEMENT In the absence of wrtten notce by the Insurer to the contrary, n consderaton of Sums Insured or lmts of lablty not beng reduced by the amount of any clam, the Insured wll pay the approprate addtonal premum on the amount of the clam from the date of the Damage to expry of the Perod of Insurance, but ths shall not apply n respect of theft or attempted theft. The Insurer wll pay the Insured as ndemnty n consequence of Damage for a. Loss of Rent ncludng b. Increased n Cost of Workng and c. Re-lettng Costs. 20

21 Loss of Rent means the amount by whch the Rent durng the Indemnty Perod falls short of the Rent whch but for the Damage would have been receved. Increased n Cost of Workng means the addtonal expendture necessarly and reasonably ncurred for the sole purpose of avodng or dmnshng the Loss of Rent whch but for that expendture would have taken place durng the Indemnty Perod. Re-lettng Costs means the expendture necessarly and reasonably ncurred n consequence of Damage n Re-lettng Premses, ncludng legal fees or other charges ncurred solely n consequence of such re-lettng. BASIS OF SETTLEMENT ADJUSTMENTS The Insurer wll not pay the Insured for a. Increase n Cost of Workng exceedng the amount of Loss of Rent thereby avoded b. legal fees or other charges payable by any new tenant acqured n re-lettng Premses n consequence of Damage c. any amounts saved durng the Indemnty Perod n respect of any of the charges and expenses of the Busness payable out of Rent that may cease or be reduced. In calculatng the amounts the Insurer wll pay the Insured as ndemnty, adjustments shall be made n accordance wth the followng clauses. 1. Average If the Sum Insured by any tem on Rent s less than the Calculated Rent for that Item, the amount payable wll be proportonately reduced. 2. Accountants Charges If the professonal accountants of the Insured produce any partculars or detals requred by the Insurer form the Insured s books of account or other busness books or documents, or any other proofs nformaton or evdence under the terms of Condton 2 of ths Secton, the Insurer wll pay the Insured the reasonable charges payable by the Insured to ther professonal accountants, provded that the maxmum amount payable under ths adjustment shall not exceed 5% of the Rent Sum Insured n respect of each Premses. 3. Rent Revew Where Rent s subject to a rent revew durng the Perod of Insurance, the rent amount payable may be automatcally ncreased, subject to a maxmum rent revew ncrease of 20%. Ths does not nclude any ncreases n Rent resultng from alteratons, addtons, extensons or mprovements to the Buldngs nsured or n respect of newly erected buldngs. 4. Alteratons and Addtons Cover ncludes Rent n respect of a. alteratons, addtons and mprovements to Premses b. newly acqured or newly erected Premses wthn Gbraltar, for no more than 20% of the Total Sum Insured or 50,000 whchever s the less, at any one Premses, provded that the Insured shall gve detals to the Insurer wthn nnety days of the commencement date of the Insured s nterest n such Rent effect specfc cover retrospectve to such date, and pay the approprate addtonal premum. 21

22 5. Seventy Two Hours Clause Damage occurrng wthn seventy two (72) consecutve hours of and arsng from Event 7 of Secton 1 Property Damage s deemed to be one clam. The Insured have the rght to select the moment from whch the seventy two (72) hour perod shall be deemed to have commenced wthn the terms of ths Secton, provded that such Damage occurred pror to expry of the Perod of Insurance. 6. Value Added Tax All terms n ths Secton shall be exclusve of value added tax to the extent that the Insured are accountable to the tax authortes for such tax. 7. Payments on Account The Insurer wll make payments on account durng the ndemnty Perod, f the Insured so request, subject to any necessary adjustment at the end of the Indemnty Perod. EXTENSIONS (Subject to the terms, lmts, condtons and exclusons of ths Secton and the ) Any clam resultng from nterrupton of or nterference wth the Busness n consequence of: a. n respect of Extensons 1-4, loss or destructon of or damage to any Property shown below resultng from an Event operatve under Secton 1 Property Damage of ths, or b. In respect of Extenson 5, any Contngency shown wthn Gbraltar, shall be understood to be Damage as covered by ths Secton, provded that after the applcaton of all other terms, condtons and provsons of ths Secton the lablty of the Insurer shall not exceed n the whole the Total Sum Insured, or the amount shown as the maxmum lmt of lablty n respect of any of the Extensons, whchever s the less. 1. Managng Agents Premses Property of the Insured s managng agents at the premses of such managng agents, up to 20% of the Rent Sum Insured or 20,000 whchever s the less. 2. Denal of Access Property of the mmedate vcnty of the Premses whch prevents or hnders the use of or access to the Premses for a perod greater than 24 hours, whether the Premses or property n them s Damaged or not. 3. Supply Undertakngs Property at any a. generatng staton or sub-staton of the electrcty supply undertakng b. land based premses of the gas supply undertakng or of any natural gas producer lnked drectly therewth c. waterworks or pumpng staton of the water supply undertakng d. land based premses of the telecommuncatons undertakng from whch the Premses obtan electrcty, gas, water or telecommuncatons servces. 4. Documents Documents belongng to the Insured or held by the Insured n trust, whlst at premses not beng the Insured s Premses, or n transt by road, ral or nland waterway. 5. Specfed Illnesses Contngences 22

23 a. any occurrence of a Specfed Illness at the Premses, except where the Premses s a Prvate Dwellng b. any dscovery of an organsm at the Premses lkely to result n the occurrence of a Specfed Illness, except where the Premses s a Prvate Dwellng c. any occurrence of Legonelloss at the Premses d. the dscovery of vermn or pests at the Premses e. any accdent causng defects n the drans or other santary arrangements at the Premses whch causes restrctons on the use of the Premses on the order or advce of the competent local authorty. Specal Provsons 1. Specfed Illness shall mean llness sustaned by any person resultng from a. food or drnk posonng, or b. Acute Encephalts, Acute Polomyelts, Anthrax, Chckenpox, Cholera, Dphthera, Dysentery, Leptospross, Malara, Measles, Menngococcal Infecton, Mumps, Opthalma Neonatorum, Paratyhod Fever, Plague, Rabes, Rubella, Scarlet Fever, Smallpox, Tetanus, Tuberculoss, Typhod Fever, Vral Hepatts, Whoopng Cough or Yellow Fever, an outbreak of whch the competent local authorty has stpulated shall be notfed to them. 2. Legonelloss shall mean llness sustaned by any person resultng from any dscharge release or escape of legonella from water tanks, water systems, ar-condtonng plants coolng towers and the lke at the Premses. 3. For the purpose of ths Extenson Indemnty Perod shall mean the perod durng whch the results of the busness shall be affected n consequence of the damage begnnng wth the date from whch the restrctons on the Premses are appled and endng not later than 3 months thereafter. 4. The Insurer shall not be lable under ths clause for any costs ncurred n cleanng, repar, replacement, recall or checkng of Property. 5. The Insurer shall only be lable for loss arsng at the Premses whch are drectly subject to the ncdent. 6. The Insured n so far as t s reasonable practcal shall ensure complance wth the Health and Safety Commssons Approved Code of Practce, The Preventon and Control of Legonelloss (ncludng Legonnares Dsease) or any supplementary replacement or amendng Code of Practce. 7. Notwthstandng Specal Provson 4 the nsurance by ths Extenson extends to nclude costs and expenses necessarly ncurred wth the consent of the Insurer n a. cleanng and decontamnaton of Property used by the Insured for the purpose of the Busness (other than stock n trade) b. removal and dsposal of contamnated stock n trade at or from the Premses, the use of whch has been restrcted on the order or advce of the competent local authorty solely n consequence of the ncdent as defned above, provded that the lablty of the Insurer shall not exceed 25,000 n any one Perod of Insurance, after the applcaton of all other terms and condtons of ths Secton and of the. 6. Loss of Attracton Property n the mmedate vcnty of the Premses causng a fall n the number of tenants attracted to the Premses, provded that for the purpose of ths Extenson Damage shall exclude obstructon of roads, streets and the lke by weather or clmatc condtons a. The Maxmum Indemnty Perod shall not exceed 3 months 23