Product Disclosure Statement and Insurance Policy. Reference:

Transcription

1 Product Disclosure Statement and Insurance Policy Reference:

2 Table of Contents SECTION PAGE Important Information 2 General Definitions 9 General Exclusions 16 General Conditions 18 Section 1 - Building & Common Contents 21 Section 2 - Property Owners Legal Liability 36 Section 3 - Voluntary Workers Personal Accident 42 Section 4 - Fidelity Guarantee 46 Section 5 - Office Bearers Liability 48 Section 6 - Machinery Breakdown 52 Section 7 - Catastrophe Cover 59 Section 8 - Legal Expenses 60 Section 9 - Government Audit Expenses 62 Claims Conditions (All Sections) 65 1/65

3 Important Information Product Disclosure Statement This document is a Product Disclosure Statement (PDS) for the Brooklyn Underwriting Strata Solution Insurance Policy. This PDS has been prepared to assist You in understanding Strata insurance and making an informed choice about Your insurance requirements. This PDS includes a number of different Policy sections as set out below and includes information about its features, benefits, risks and costs. Please read the document carefully. This document was prepared on 1 June About Brooklyn Underwriting Brooklyn Underwriting Pty Ltd, ABN (Brooklyn Underwriting) is a leading Underwriting Agency in Australia. The company arranges this insurance for and on behalf of Certain Underwriters at Lloyd s under a Binding Authority Agreement which permits Brooklyn Underwriting to administer and issue policies, alterations and renewals on their behalf. In all respects Brooklyn Underwriting acts as an agent of the Insurer and not for You. Contact details for Brooklyn Underwriting are:- Lower Ground, 156 Gloucester Street Sydney, NSW, 2000 t: (02) w: Brooklyn Underwriting currently operates as an Authorised Representative of GSA Insurance Brokers Pty Limited (ABN ) AFSL About the Insurer This insurance is underwritten by Brooklyn Underwriting for and on behalf of by Certain Underwriters at Lloyd s (the Insurer) in accordance with the Binding Authority Agreement between the two parties. Special provisions in the Insurance Act 1973 allow Lloyd s Underwriters to underwrite insurance business in Australia as an authorised Australian insurer, regulated by the Australia Prudential Regulation Authority (APRA). Lloyd's is the world's leading insurance market providing specialist insurance services to businesses in over 200 countries and territories. Lloyd s hold a financial strength rating of A+ (Standard and Poor s). Summary of the Features of This Policy This Policy document contains seven (7) different types of cover, set out in Sections, from which You can choose one or more of those sections which You believe will best suit Your needs. 2/65

4 Important Information (Cont.) Subject to the payment of Your premium, We will provide the cover You have selected subject to the exclusions, conditions and limitations stated in the Policy. The following is a summary only of the types of cover available and does not form part of the terms of Your insurance: Section Name Cover provided Limit & Sub-Limits 1 Building & Common contents Sum insured Additional benefits (within sum insured): Government Authority Fees Costs and expenses reasonably incurred Claims Preparation costs Up to $25,000 Fire Extinguishment Costs Costs and expenses reasonably incurred Minimisation of imminent damage Up to $25,000 Mortgage Discharge Up to $10,000 Professional Fees Costs and expenses reasonably incurred Removal of Debris Costs and expenses reasonably incurred Temporary Protection Up to $ 5,000 limit Additional benefits (above to sum insured): Failure of Public Utility to Supply Catastrophe Cover Loss of Rent Prevention of Access Up to 30 days Up to 15% of Sum Insured Storage Unit Holders Contents Up to $10,000 Temporary Accommodation Costs 12 months maximum per Lot Costs and expenses reasonably incurred Up to 15% of Sum Insured Arson Reward Up to $5,000 In the event of a valid claim under Section 1 the sum insured will increase by the amount CPI Adjustment the CPI has increased since the policy was last renewed Domestic Electric Motors (Fusion) Costs and expenses reasonably incurred Domestic Pets Up to $2,000 Landscaping Up to $25,000 Detecting Leaks Maintenance Fees Up to $2,500 Money Up to $5,000 Personal Property in Care Up to $5,000 Removal of Fallen Trees Up to $5,000 Replacement of Keys & Locks Up to $5,000 Rewriting Records Up to $5,000 Storage of Common Area Contents Up to $10,000 Unit Owners' Improvements Up to $250,000 Costs and expenses reasonably incurred Section Name Cover provided Limit & Sub-Limits Cover for compensation the insured becomes legally liable to pay for Personal 2 Property Owners Legal Liability Injury and Property Damage Up to $20,000,000 Additional benefits (in addition to sum insured): Legal Costs As agreed by insurers 3/65

5 Important Information (Cont.) Section Name Cover provided Limit & Sub-Limits 3 Voluntary Workers Personal Accident Up to $200,000 Capital + $2,000 weekly Additional benefits (within sum insured): Death or total and permanent loss of both hands, or the use of both feet, or the use of 100% of the capital benefit selected one hand & one foot Total loss of sight in both eyes 100% of the capital benefit selected Total and permanent loss of the use of one hand of the use of one foot or sight in one 50% of the capital benefit selected eye Total disablement 100% of the weekly benefit selected Partial disablement 50% of the weekly benefit Section Name Cover provided Limit & Sub-Limits Cover for fraudulent embezzlement or fraudulent misappropriation of funds set aside for the purpose of management of the 4 Fidelity Guarantee body corporate/ company affairs Up to $100,000 Section Name Cover provided Limit & Sub-Limits Covers legal liability of office bearers for 5 Office Bearers Liability any wrongful act they commit Up to $10,000,000 Additional benefits (within sum insured): Claims investigation, defence and settlement costs Included Continuous cover benefit Extended reporting period benefit Included 30 Days Section Name Cover provided Limit & Sub-Limits 6 Machinery Breakdown Up to $10,000 per machine Additional benefits: Available for machinery driven by motors Breakdown cover for unspecified machinery not exceeding 5hp (4kw), limit on any one incident as specified in the schedule Breakdown cover for specified machinery Available on request Cover for additional unspecified machinery 90 days cover Section Name Cover provided Limit & Sub-Limits Section 1 Sum Insured increased as a result of a Government Declared Catastrophe / 7 Additional Catastrophe Cover Emergency Up to 15% Sum Insured (Section 1) Section Name Cover provided Limit & Sub-Limits Covers legal expenses in defence of WHS 8 Legal Expenses and other specific disputes Up to $100,000 Section Name Cover provided Limit & Sub-Limits Covers fees of a professional advisor in relation to an audit of the Insured by the Australian Taxation Office or any other 9 Government Audit Expenses Government agency up to $50,000 Your Duty of Disclosure Before You enter into a contract of insurance with Us, You have a duty under the Insurance Contracts Act 1984 (Cth) to disclose to Us anything that You could reasonably be expected to know is relevant to Our decision whether to accept the risk of insurance and if so, on what terms. You have the same duty to disclose those matters to Us before You renew, extend, vary or reinstate a contract of general insurance. Your duty however does not require disclosure of a matter: that diminishes the risk to be undertaken by Us; that is of common knowledge; 4/65

6 Important Information (Cont.) that We know or, in the ordinary course of business, ought to know; or as to which compliance with Your duty is waived by Us. The duty of disclosure applies to You and everyone insured under the contract of insurance. If You, or they, fail to comply with the duty of disclosure, We may reduce Our liability under the contract in respect of a claim. If the non-disclosure is fraudulent, We may treat the Policy as if it never existed and pay nothing. It is important that all information provided in support of Your application for insurance is understood by You and is correct, as You will be bound by Your answers and by the information provided by You. If You do not understand any part of this notice, You should obtain independent advice. Your duty of disclosure continues after Your application for insurance has been completed up until the contract of insurance is entered into. Non-Disclosure If You: (i) failed to disclose any matter which You were under a duty to disclose to the Us, or (ii) made a misrepresentation to the Us before this Policy was entered into and if We would not have entered into this Policy for the same premium and on the same terms and Conditions expressed in this Policy but for the failure to disclose or the misrepresentation then - (a) Our liability in respect of any claim will be reduced to an amount to place Us in the same position in which We would have been placed if such non-disclosure had not occurred or such misrepresentation had not been made; or (b) if the non-disclosure or misrepresentation was fraudulent, We may avoid this Policy. Cooling-Off Period If this Policy does not meet Your requirements, You may return the Policy to Us within twenty-one (21) days from the date the Policy commenced with a written notice that the Policy is not required. You will receive a full refund of the Premium providing nothing has occurred for which a claim is payable under the Policy. Adequate Sums Insured In the event of a major loss, the Sums Insured Limits applying to each Section of the Policy should be sufficient to cover such loss. It is Your responsibility to ensure the adequacy of the Sums Insured and You should review these both during the currency of the Policy and prior to renewal each year. Our Agreement with You Our agreement with You is set out in the Policy which combined consists of Your Proposal, this document, the Policy Certificate, Policy Schedule and any Endorsements affixed thereto. All of these should be read as if they were the one document. Subject to Your payment of or agreement to pay Us the Premium set out in the Policy Certificate of Insurance and Policy Schedule, We agree to provide the insurance cover set out in each of the Policy 5/65

7 Important Information (Cont.) Sections selected by You and which are so specified in the Policy Schedule subject to the terms, Exclusions and Conditions of the Policy. The insurance cover is in force during the Period of Insurance specified in the Certificate of Insurance and Policy Schedule. We will cover You for covered loss or damage under those Policy Sections selected by You for insurance which occurs during the Period of Insurance. We will not pay more than the Sums Insured or Limits of Liability or Sub-Limits of Liability shown in the Policy Schedule or Policy Section unless We have stated otherwise that such is an additional benefit applying to a particular Policy Section. We will not pay the applicable Excess shown in the Policy Schedule. Calculating your Premium We take a number of factors into account when calculating Your Premium. The Premium payable by You will be shown in Your Policy Schedule. Premiums are subject to applicable Commonwealth and State taxes and charges. There are a number of significant factors which impact generally when calculating Your Premium. These can include: The Sums Insured under each chosen Section The location of the subject Property The Property s size (lots), age and construction type Fire detection and protection Security details Management Additional property features (e.g. pools or gymnasiums) Excesses The Excess is the amount You must contribute towards the cost of any Claim You make. If the Insurers agree to pay Your Claim, the Excess will be deducted from the amount of the Claim that is paid to You, or You may be asked to pay the Excess to a supplier, repairer or to Us. The amount of each applicable Excess including any Special Excess to each Policy Section is shown on Your Schedule. General Insurance Code of Practice Brooklyn Underwriting is a signatory to the General Insurance Code of Practice. The purpose of the Code is to raise standards of practice and service in the general insurance industry. The Code promotes better communication between insurers and customers which will lead to better public understanding of insurance to allow customers to make informed choices, and outlines good standards of practice and service to be met by insurers to enhance their regulation for responding efficiently to their customers needs. You can access the Code at 6/65

8 Important Information (Cont.) How to make a Claim To make a Claim, contact Brooklyn Underwriting. Please read the Policy Wording for full details on claims procedures. Tax Implications If You: are registered for GST; and would be entitled to an input tax credit if You were to incur the cost to which a claim under this Policy relates, The Insurers will reduce any amount it pays under any such claim by an amount equal to Your input tax credit entitlement. This tax information is a general statement only. See Your tax adviser for information about Your specific circumstances. Financial Claims Scheme In the unlikely event that the Insurer were to become insolvent and unable to meet its obligations under this Policy, the You and any other related claimants may be entitled to receive payment for any valid claims under the Federal Governments Financial Claims Scheme (FCS) which is administered by the Australian Prudential Regulation Authority (APRA). For further information on the scheme, please refer to the APRA website at or telephone Complaints and Dispute Resolution Process If You have a complaint, the first thing You or Your insurance adviser should do is speak to the staff at Brooklyn Underwriting. If Your complaint relates specifically to a Claim, speak with the Claims Consultant handling Your claim. If the matter is still not resolved, please contact the internal Disputes Resolution Officer at Brooklyn Underwriting by the contact details given above. The matter will be and resolved in accordance with the General Insurance Code of Practice and Our Dispute Resolution Procedures. If Your complaint remains unresolved or You are not happy with Our response to Your claim, You may wish to contact the Financial Ombudsman Service (FOS). This is a national scheme for consumers and is aimed at resolving disputes between insureds and their insurance companies. For more information on FOS visit or call Privacy Statement Brooklyn Underwriting Pty Ltd collects personal information in order to provide its various services which include insurance broking, claims management, risk management consultancy, underwriting management, and reinsurance. If the personal information Brooklyn Underwriting Pty Ltd requests from You is not provided, Brooklyn Underwriting Pty Ltd or any involved third party may not be able to provide the appropriate services. 7/65

9 Important Information (Cont.) Brooklyn Underwriting Pty Ltd discloses personal information to third parties who are involved in the provision of Our services. For example, in arranging and managing Your insurance needs Brooklyn Underwriting Pty Ltd may provide information (including sensitive information such as health information) to insurers, reinsurers, other insurance intermediaries, it s advisors such as loss adjustors, lawyers and accountants, and other parties involved in the claims handling process. By submitting Your Proposal and continuing to deal with Us, You confirm on Your behalf and/or on behalf of those You represent consent to Brooklyn Underwriting Pty Ltd and these parties collecting, using and disclosing personal and sensitive information about You. Brooklyn Underwriting Pty Ltd has a duty to maintain the confidentiality of its client s affairs which includes their personal information. Our duty of confidentiality applies except where disclosure of Your personal information is with Your consent or required by law. Brooklyn Underwriting Pty Ltd may make use of Your personal information to provide You with information about its products and services. Simply contact the Brooklyn Underwriting Pty Ltd Privacy Officer on the details below if You would like to: Access the personal information Brooklyn Underwriting Pty Ltd holds about You Update or correct the information Brooklyn Underwriting Pty Ltd holds about You Discuss Your privacy concerns Be removed from the mailing list to receive information about Brooklyn Underwriting Pty Ltd products and services Privacy Officer - Brooklyn Underwriting - PO Box 101 Grosvenor Place - SYDNEY NSW 1220 Telephone: , Fax: Data Protection You should understand that any information you have provided will be processed by the Insurer, in compliance with the provisions of the United Kingdom Data Protection Act 1998, for the purpose of providing insurance and handling claims or complaints, if any, which may necessitate providing such information to other parties. 8/65

10 General Definitions In this Policy there are words that have a special meaning. These words begin with a capital letter. For those words that apply to only one Section of the Policy, their special meaning is described in that Section of the Policy. Those words that have a special meaning that apply to all Sections of the Policy are set out and defined below: Act of Terrorism means any act, including but not limited to the use of force or violence and/or threat thereof, of any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, which from its nature or context is done for, or in connection with any political, religious, ideological or similar purpose or reason, including the intention to influence any government and/or to put the public, or any section of the public, in fear. Aircraft means any vessel, craft or thing made or intended to fly or move in or through the atmosphere or space. Body Corporate means the owners corporation, body corporate, strata corporation, strata company, or company named in the Schedule. Body Corporate Manager means anyone with whom the Body Corporate has engaged to provide strata or company title management services in relation to the Situation. Building(s) means the building(s) contained in the registered strata scheme or company title specified in the Schedule, including at the Situation: outbuildings elevators, escalators and inclinators walls, gates and fences ducted air conditioners, intercom systems, stoves, ovens, hotplates, and hot water systems built-in cupboards and bathroom fittings awnings and blinds that are external of the Building satellite dishes and antennas used for receiving radio and/or television signals swimming pools marinas, wharves, pontoons or similar structures which are used for non-commercial purposes and at which fuel is neither stored nor distributed services, such as, electricity and water, owned by the Body Corporate or for which the Body Corporate is responsible 9/65

11 General Definitions (cont.) Building(s) do not include: carpets or carpet underlay however fixed vinyl and cork or other flooring material which is not fixed with an adhesive temporary wall, ceiling or floor coverings internal window coverings including curtains and blinds light fittings which are not built or wired into the electrical wiring air conditioners that are not permanently mounted, clothes dryers, washing machines, microwave ovens and any other appliances or devices that are not wired into the electrical wiring or permanently mounted fixtures removable by a lessee at the expiration of a tenancy anything described in any Act or Regulation governing strata title or company title property where the Building is situated, as not forming part of a Building. Where this definition of Building is contrary to any Act or Regulation governing strata title or company title property or similar scheme pertaining to the Situation, then the requirements of that Act or Regulation will apply. Common Area Contents means the domestic appliances, equipment, carpet, furnishings and furniture in any common area of the Situation surrounded by walls, gates or fences that are owned by You or for which You are legally responsible. Common Area Contents does not include: Vehicles, caravans, trailers, Watercraft, Aircraft, or any accessories in or on any of them any appliance, equipment, furnishings, or furniture which is in open air and is designed to be neither used nor kept in open air livestock; or the personal property of any Unit Owners. Where this definition of Common Area Contents is contrary to any Act or Regulation governing strata title or company title property or similar scheme pertaining to the Situation, then the requirements of that Act or Regulation will apply. Computer Equipment means computer hardware, operating system, computer network and other equipment containing or comprising any computer technology. Damage or Damaged means any accidental physical loss, destruction or damage to Insured Property that has the result of lessening its value. 10/65

12 General Definitions (cont.) Electronic Data means facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programs, software and other coded instructions for such equipment. Excess / Excesses means the amount that You are required to contribute towards each and every event that causes loss or damage insured by this Policy. The Excesses that are applicable to each Section of the Policy are specified in the Schedule. The applicable Excess means either or both of the Standard Excess and any Special Excess set out in the Schedule or in the Policy wording. The Standard Excess is the amount shown in the Schedule or Policy wording payable by You on each and every claim arising out of one event or occurrence that causes loss or Damage insured by this Policy, and The Special Excess is the amount shown in the Schedule and attaching endorsements specific to each and every claim not otherwise excluded Flood means the inundation of normally dry land by water, which escapes or is released from the normal confines of any lake, or any river, creek or other natural watercourse, whether or not altered or modified, or any reservoir, canal, or dam. Insurer means Certain Underwriters at Lloyd s of London. All Lloyd s underwriters are authorised in the United Kingdom by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority In Transit means Common Area Contents in Your personal custody or in the personal custody of any person authorised by You while in carriage to or from the Situation. In Transit does not mean Common Area Contents being carried by any professional carrier or common carrier that holds valid insurance against the risk of loss or damage to such property while in their custody. Insured Property means the Building and/or Common Area Contents at the Situation insured under Sections 1 and 7. Landscaping means trees, shrubs, plants, lawns or rockwork. 11/65

13 General Definitions (cont.) Land Value means the value of the land at the Situation ascertained by reference to the sum certified by the Valuer General as the value of that land and after due allowance has been made for any circumstances that affects the certified value of that land had the damage to the Insured Property not occurred. Limit of Liability means the limit of the Insurers total liability for any one loss or series of losses arising out of one event that is applicable to a Section of the Policy as specified in the Schedule. Loss of Rent means as regards a Tenanted Unit, an amount of money calculated on the basis of annual rent received by the Unit Owner (including outgoings paid by the tenant) that applied immediately before the happening of Damage to the Building. Unit Owners Fixtures and Improvements Any item or structure for the exclusive use of an Owner Occupied Unit and which is permanently attached to or fixed to the Building so as to become legally part of it including any improvement made to an existing part of the Building by a Unit Owner for their exclusive use. Money means current and valid coins, bank notes, cheques, other negotiable instruments, currency notes, postal orders, money orders and unused postage and revenue stamps. Officer means a member or former member of the Body Corporate whilst engaged in or serving on the committee or governing body of the Body Corporate. Officer does not include a Body Corporate Manager or a director or representative of such a manager. Owner Occupied Unit means as regards a claim for Temporary Accommodation Costs, a Unit occupied by a Unit Owner for residential purposes at the time of Damage to Insured Property. Policy means the contract of insurance between You and The Insurer which comprises this Policy, the Proposal, this wording, the Schedule and any document issued by The Insurer varying the Policy coverage. Policy Period means the period stated in the Schedule during which the insurance cover provided by this Policy is in place. 12/65

14 General Definitions (cont.) Policy Territory means Australia. Pollutants means any solid liquid, gaseous or thermal irritant or contaminant, including but not limited to smoke, vapours, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed. Premium means the premium specified in the Schedule or in any endorsement to the Policy. Pressure Equipment means boilers, pressure vessels and pressure piping defined in any applicable Australian Standard. Proposal means the written application completed by You or on Your behalf (together with all accompanying information) relied upon by The Insurer to enter into this Policy. Schedule means the Schedule issued with this Policy wording. Sea means any ocean, sea, bays, harbour or tidal water. Situation means the location stated in the Schedule where the Insured Property is situated. Sub Limit of Liability means the limit of The Insurer s total liability applicable to a particular benefit, item, loss or claim within a Section of the Policy, as specified in that Section of the Policy or in the Schedule. Temporary Accommodation Costs means as regards an Owner Occupied Unit, an amount of money calculated by reference to the annual rentable value of the Unit (including any outgoings payable by a tenant) that would have applied to such Unit immediately before the happening of Damage to Insured Property. Tenanted Unit means as regards a claim for Loss of Rent, a Unit that is occupied for residential purposes by a rent-paying tenant at the time of Damage to Insured Property. 13/65

15 General Definitions (cont.) Unit means an area shown on a plan of the Situation as a lot or unit in terms of any applicable Act or Regulation governing strata title property or an area to which a shareholder is entitled to exclusive possession in terms of any applicable Act or Regulation governing company title property. Unit Owner means an owner, member, or proprietor registered as owner of an estate in a Unit in terms of any applicable Act or Regulation governing strata title property or a shareholder entitling that person to exclusive possession of a Unit in terms of any applicable Act or Regulation governing company title property. Unit Owners Contents means a Unit Owner s personal effects, furniture, furnishings, Computer Equipment, electrical and electronic equipment at the Situation immediately before the happening of Damage to Insured Property. Unit Owners Contents does not include livestock, vehicles, caravans, trailers, Watercraft, Aircraft or accessories in or on any of them. Vehicle means any type of machine on wheels or on caterpillar tracks made or intended to be self-propelled by mechanical power. Voluntary Worker means any person between the age of 15 and 65 that is undertaking work at the Situation under Your direct control, without fee or reward or any expectation of fee or reward. Voluntary Worker does not include: an Officer; or an employee; or a Body Corporate Manager or a director or representative of such a manager. Watercraft means any vessel, craft or thing made or intended to float on or in or travel on, through or under water. We, Our, Us means Brooklyn Underwriting Pty Ltd, ABN and/or the Insurer. You, Your and Yours means In respect of Sections 1, 4, 6 and 7 o the Body Corporate. o In respect of Section 2: the Body Corporate 14/65

16 General Definitions (cont.) o any past, present or future Officer or employee of the Body Corporate but only whilst acting within the scope of their duties in such capacity. In respect of Section 3: o any Voluntary Worker but only whilst engaged solely in work or duties on behalf of the Body Corporate. In respect of Section 5: o any past, present or future Officer of the Body Corporate. Interpretation In this Policy, unless the context otherwise requires: 1. the singular includes the plural and the plural includes the singular 2. if a word or expression is given a definite meaning, any part of speech or other grammatical form of that word or phrase has a corresponding meaning 3. references to an amount of money are references to that amount in Australian dollars; and 4. headings are included for reference purposes only and do not form part of the Policy for interpretation 15/65

17 General Exclusions The Policy does not cover any, claim, loss, damage, destruction, compensation, liability, cost or expense of any nature arising out of or in any way connected with the following, regardless of any other cause or event contributing concurrently or in any sequence to such, claim, loss, damage, destruction, compensation, liability, cost or expense: Act of Terrorism any Act of Terrorism or any action taken in controlling, preventing, suppressing or in any way relating to any Act of Terrorism. This general exclusion operates to the extent permitted by the Terrorism Insurance Act 2003 (Cth). Asbestos asbestos or asbestos products or any materials containing asbestos in whatever form or quantity. Computer Equipment any Computer Equipment that fails to perform or function in the manner for which it was designed. Dishonest or Intentional Conduct Any actual or alleged:- dishonest, fraudulent, criminal or malicious act; wilful or reckless breach of any statute, contract or duty; conduct intended to cause loss, damage, destruction, liability, cost or expense or such conduct engaged in with reckless disregard for the consequences committed by You or any person acting with Your knowledge, consent or participation. Electronic Data loss or unplanned alteration of Electronic Data. Known Faults and Defects faults and defects in Insured Property which are known to You, or which ought reasonably to have been known to You, and not disclosed to The Insurer at the time this Policy was entered to. Lawful Seizure lawful seizure, detention, confiscation, nationalisation or requisition of any Insured Property. Outside Territory occurring outside the Policy Territory. Pollution the discharge, disposal, release, seepage, migration or escape of Pollutants or the cost of preventing the escape of Pollutants. 16/65

18 General Exclusions (cont.) Radioactivity ionising radiation or contamination by radioactivity from any nuclear fuel, weapon, waste or other material whether occurring naturally or otherwise; the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof; or the storage, transport, assembly, disassembly, maintenance or operation of any nuclear weapon or nuclear component thereof. Unoccupied Insured Property any Insured Property left unoccupied for a period of 60 consecutive days in circumstances where You have not informed The Insurer of this fact and obtained The Insurer s written agreement for the cover of this Policy to continue beyond that period. War war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power, or any act of any person or persons acting on behalf of or in connection with any organisation the objects of which are to include the overthrowing or influencing of any de jure or de facto government by terrorism or by any violent means. 17/65

19 General Conditions Alteration to Risk Any alteration to the risk after commencement of the Policy must be notified by You to The Insurer in writing immediately after such change in risk comes to the notice of You or Your officer responsible for insurance. Alterations that You must notify The Insurer of include: removal of any Common Area Contents or alteration of any Building; any Building or Common Area of the Situation being left unoccupied for a period of more than 60 consecutive days; Your interest in any Insured Property ceasing; any instance where the nature of the occupation of or other circumstances affecting the Insured Property are changed in such a way to increase any risk insured under this Policy; or You being placed into bankruptcy, receivership, administration or liquidation. If The Insurer accepts the altered risk, You must pay The Insurer any additional premium it requires. Applicable Law Should any dispute arise concerning this Policy, the dispute will be determined in accordance with the law of Australia and its States and Territories. In relation to any such dispute the parties agree to submit to the jurisdiction of any competent court in a State or Territory of Australia. Assignment You must not assign this Policy or any of Your rights under this Policy, without the prior written consent of The Insurer. Cancellation You may cancel this Policy by giving notice in writing to Us. If such notice is given, the cancellation will take effect on the day the notice is received by Us. We may cancel this Policy in any of the circumstances set out in the Insurance Contracts Act 1984 (Cth). Such cancellation is to take effect 30 days from the time notification is received by You. After cancellation by You a refund of Premium will be returned to You pro rata for the unexpired period of insurance. When the Premium is subject to adjustment, cancellation will not affect Your obligation to supply to Us such information as is necessary to permit the Premium adjustment to be calculated and to pay the amount of the adjustment applicable up to the date of cancellation. In the event of a claim or claims having been notified to Us prior to the effective date of cancellation there will be no refund of premium of the unexpired part of the Period of Insurance. Changes in Policy No changes in this Policy will be valid unless agreed to in writing by The Insurer. The requirements of any Section of the Policy may not be deemed to be waived unless The Insurer agrees to waive them in writing. 18/65

20 General Conditions (cont.) Excess You must pay the amount of any applicable Excess shown in the Schedule or in this wording in respect of each claim You make under the Policy. The Excess is payable by You at such time required by the Insurer. We will either ask You to pay the Excess to Us directly or another person or We may deduct the Excess from the amount that we pay You. Except for any imposed Special Excess, if more than one Standard Excess is payable under this Policy for any claim of series of claims arising from one event or occurrence, the Excesses will not be aggregated and the highest single Standard Excess will apply. A Special Excess may apply under this Policy to a defined or nominated event or occurrence as outlined in the attaching endorsements to the Schedule. Each Special Excess applies in the aggregate to all Unit Owners unless otherwise agreed. Inspection and Audit The Insurer may inspect any Insured Property with reasonable notice. Neither The Insurer's right to make inspections nor the making of any inspection nor any report thereon will constitute an undertaking by The Insurer on behalf of or for Your benefit or warrant that such Insured Property or operations are safe or healthful, or are in compliance with any applicable law, rule or regulation. The Insurer may examine and audit Your books and records at any time during the Policy Period and extensions thereof and within three (3) years after the final termination of this Policy, as far as they relate to the subject matter of this Policy. Insurance Contracts Act Nothing contained in this Policy is to be construed to reduce or waive either Your or The Insurer's privileges, rights or remedies available under the Insurance Contracts Act 1984 (Cth). Interests of Other Parties The insurable interest of only those lessors, financiers, trustees, mortgagees and owners specifically noted on the Schedule are covered by the Policy. Where the insurance covers the interest of more than one party, any act or neglect of an individual party (other than those described in general exclusion 4 dishonest or intentional conduct) will not prejudice the rights of any remaining party; provided that the remaining party shall, immediately on becoming aware of any act or neglect whereby the risk of damage has increased, give notice in writing to The Insurer and on demand pay such reasonable additional premium as The Insurer may require. Other Insurances You shall give written notice as soon as possible to The Insurer of any other insurance or insurances effected covering any of the risks that are the subject of this Policy. Possession of Damaged Property On the happening of any loss, destruction or damage in respect of which a claim is or may be made under this Policy, The Insurer and every person authorised by The Insurer may, without incurring any liability, and without diminishing the right of The Insurer to rely upon any terms or conditions of the 19/65

21 General Conditions (cont.) Policy, enter, take or keep possession of any building or premises where the loss, damage or destruction has happened and may take possession of or require to be delivered to The Insurer any of the Insured Property and may keep possession of and deal with such Insured Property for all reasonable purposes and in any reasonable manner. This condition shall be evidence of Your permission and licence to do any of the above mentioned acts. If You or any one acting on Your behalf does not comply with the requirements of The Insurer or hinders or obstructs The Insurer in doing any of the above-mentioned acts, then all benefits under the Policy shall be forfeited. You shall not in any case be entitled to abandon any Insured Property to The Insurer whether taken possession of by The Insurer or not. Reasonable Care You must: take all reasonable measures to maintain all Insured Property in sound condition; take all reasonable precautions to prevent or minimise loss, damage, destruction, liability, compensation, cost or expense covered by this Policy; comply with all obligations and regulations imposed by any authority; and take all reasonable measures to ensure that only competent employees and contractors are employed to undertake work on Your behalf. Storage of Hazardous Materials Hazardous goods or materials stored at the Situation must be stored in the quantities and manner required by any relevant law or standard. Subrogation If The Insurer makes a payment under this Policy, The Insurer is subrogated to all Your rights of contribution, indemnity or recovery. You must not surrender any right to or settle any claim for contribution, indemnity or recovery without The Insurer s prior written consent. You must do all things and execute all documents to enable The Insurer to sue in Your name for such contribution, indemnity or recovery. Your Authorised Representative You agree that the person representing You when completing the Proposal is authorised to give and receive information on Your behalf. 20/65

22 Section 1: Building & Common Contents COVER Subject to the terms, conditions, exclusions and limitations applying to Section 1 (including those applying to all Sections of the Policy), The Insurer agrees to indemnify You, up to the Limit of Liability applicable to Section 1, against Damage to: any Building; and Common Area Contents whilst they are at the Situation or whilst temporarily removed and In Transit in the Policy Territory, occurring during the Policy Period in accordance with the Basis of Settlement applicable to Section 1. BASIS OF SETTLEMENT Claims for Damage to a Building 1. In respect of a claim for Damage to a Building, The Insurer will at its option: a. repair, replace or rebuild the Damaged portion of the Building to a condition which is substantially the same as when new, but not better or more extensive than when new; or b. pay the reasonable cost of repairing, replacing or rebuilding the Damaged portion of the Building to a condition which is substantially the same as when new, but not better or more extensive than when new; or c. pay up to the Limit of Liability applicable to Section 1 2. Where a Building is destroyed, or in such a condition to make it uneconomical to repair, replace or rebuild the Building, The Insurer may at its option allow You to purchase an alternative existing building to replace that destroyed. In such an event, The Insurer shall not be liable to make payment beyond the lesser of a. the reasonable cost of repairing, replacing or rebuilding the Building to a condition which is substantially the same as when new, but not better or more extensive than when new; or b. the Limit of Liability applicable to Section 1. Extra Cost of Reinstatement of Buildings Where a Building is destroyed or Damaged, Section 1 extends to cover the additional costs necessarily and reasonably incurred by You in complying with the requirements of any lawful authority that are imposed after the Damage (including demolition or dismantling) subject to the terms, conditions and Limit of Liability applicable to Section 1 and provided that: the work of reinstatement must be commenced and completed within a reasonable period, failing which The Insurer will not be liable to make any payment in respect of the extra cost of reinstatement the work of reinstatement may be carried out wholly or partially at another site, if the requirements of any lawful authority makes that necessary, subject to The Insurer s liability not being increased 21/65

23 Section 1: Building & Common Contents (Cont.) The Insurer will not pay for any extra costs of reinstatement that would have been incurred when complying with any Act, Regulation, By-Law or Statutory Requirement that applied to the Building prior to the Damage where the Building is not destroyed, The Insurer will only pay for the extra costs incurred in reinstating the Damaged portion of the Building The Insurer will not pay for the cost of reinstating illegal installations; and Floor Space Ratio 1. Where a Building is destroyed or Damaged and the relevant statutory authority permits reinstatement only to a reduced floor space ratio index, The Insurer will pay You the difference between: a. the actual cost of reinstatement to comply with the reduced floor space ratio index; and b. the cost of reinstatement had the reduced floor space ratio index not applied. 2. The Insurer will only pay for the floor space ratio benefit described above when the Limit of Liability applicable to Section 1 is not otherwise exhausted. Loss of Land Value 1. Subject to the Limit of Liability applicable to Section 1 not being otherwise exhausted, The Insurer will pay for loss of Land Value caused by a statutory authority: refusing permission to reinstate the Building at the Situation. In this instance, The Insurer will pay the difference between the Land Value before and after the Damage; or allowing only a partial reinstatement of the Building at the Situation. In this instance, The Insurer will pay the difference between the Land Value before the Damage and the Land Value after such reinstatement, provided that The Insurer s payment for loss of Land Value: will be reduced by any amount paid as compensation by such statutory authority; and will be made to You after the ruling of the statutory authority, which results in the loss of Land Value. If the statutory authority changes its ruling or if such ruling is overturned by a court or tribunal resulting in a change in Land Value after The Insurer has made payment to You, then You must refund to The Insurer any amount it has paid to You which exceeds the revised loss of Land Value. 2. All differences relating to Land Value arising out of Section 1 may, by agreement, be referred to the National President of the Australian Property Institute who will appoint a registered 22/65

24 Section 1: Building & Common Contents (Cont.) and qualified valuer whose decision will, if all parties so agree, be final and binding and who will at the same time decide as to payment of any costs of such referral. Undamaged Foundations 1. If a Building is destroyed but its foundations are not and reinstatement of the Building has to be carried out at another site because of the requirements of any lawful authority preventing reinstatement at the Situation, then the abandoned foundations will be deemed to be destroyed. 2. If the presence of the abandoned foundations at the Situation increases the Land Value of that site, then The Insurer will be entitled to deduct from the settlement of a destroyed Building claim an amount equal to the difference between: o the unimproved value of the land at the Situation; and o the value of that land with the foundations. 3. All differences relating to the value of that amount may, by agreement, be referred to the National President of the Australian Property Institute who will appoint a registered and qualified valuer whose decision will, if all parties so agree, be final and binding and who will at the same time decide as to payment of any costs of such referral. Claims For Damaged Common Area Contents 1. In respect of a claim for Damaged Common Area Contents, The Insurer will at its option a. repair or replace the item of Common Area Contents to a condition which is substantially the same as when new, but not better or more extensive than when new; or b. pay the reasonable cost of repairing or replacing the item of Common Area Contents to a condition, which is substantially the same as when new, but not better or more extensive than when new. 2. The maximum that The Insurer will pay in respect of any one loss or series of losses arising out of one event relating to: a. Common Area Contents that are not in open air is 1% of the Limit of Liability applicable to Section 1 b. Common Area Contents that are in open air or In Transit is $5, When Damage occurs to an item of Common Areas Contents which: a. is part of a set, The Insurer will only pay for the reasonable cost of repairing or replacing the item itself as a proportion of the reasonable cost of repairing or 23/65

25 Section 1: Building & Common Contents (Cont.) b. replacing the whole set, notwithstanding that the set is less valuable by reason of it being incomplete; c. is a wall, floor or ceiling covering (including carpets, blinds and curtains), The Insurer will only pay for the cost of repairing or replacing such item in the room, hall or passage in which the Damage occurred. Reinstatement of Cover 1) Following payment of a claim by The Insurer under Section 1 and provided that all Buildings or Common Area Contents are not totally destroyed, the Limits and Sub Limits of Liability applicable to Section 1 will automatically reinstate until expiration of the Policy Period at no extra premium. Excess The amount that The Insurer pays in relation to Your claim will be reduced by the amount of any applicable Excess. You must pay the amount stated in the Schedule as the Excess payable in respect of Building & Common Area Contents Cover for each loss or series of losses arising from one event when a claim is accepted by The Insurer under Section 1. ADDITIONAL BENEFITS WITHIN LIMIT OF LIABILITY The following costs or losses will be paid when they result from Damage to Insured Property. The Insurer will pay the Additional Benefit(s) when the Limit of Liability applicable to Section 1 is not otherwise exhausted. The costs or losses covered by these Additional Benefits will be paid when they result from Damage to Insured Property occurring during the Policy Period caused by an event not excluded under Section 1. Additional Benefit 1 Government Authority Fees Fees, contributions or imposts payable by You to any government or local authority to obtain a building or construction consent to repair, replace or rebuild any Damaged Insured Property, provided that The Insurer will not be liable for any fines or penalties imposed by any such authority. Additional Benefit 2 Claim Preparation Costs Costs necessarily and reasonably incurred by You, with The Insurer s written prior consent, in preparation of a claim under Section 1 of this Policy. 24/65

26 Section 1: Building & Common Contents (Cont.) The maximum that The Insurer will pay in respect of this Additional Benefit 2 during any one Policy Period is $25,000. Additional Benefit 3 - Fire Extinguishment Costs necessarily and reasonably incurred by You in order to extinguish any fire that threatens Insured Property at the Situation, including the cost of replenishing fire fighting equipment and charges for shutting off the supply of water or any other substance following accidental discharge or escape of such substances from fire fighting equipment. Additional Benefit 4 - Minimisation of Imminent Damage Emergency costs necessarily and reasonably incurred by You in order to prevent or minimise imminent Damage to Insured Property occurring during the Policy Period, provided that if You have reasonable grounds for believing that such costs will exceed $1000, You must obtain our prior written consent to incurring such emergency costs. If You fail to obtain that consent, The Insurer shall have no liability in relation to this additional benefit. The maximum that The Insurer will pay in respect of this Additional Benefit 4 during any one Policy period is $25,000. Additional Benefit 5 Mortgage Discharge Fees Legal fees necessarily and reasonably incurred by You to discharge Your mortgage in the event that the Building is totally destroyed, or in such a condition to make it uneconomic to repair, replace or rebuild. The maximum that The Insurer will pay in respect of this Additional Benefit 4 during any one Policy period is $10,000. Additional Benefit 6 - Professional Fees Fees of architects, surveyors, consulting engineers, lawyers and other professionals, including all incidental costs and fees for: estimates plans and specifications applications for building or construction consents quantities tenders, and supervision necessarily and reasonably incurred by You, with The Insurer s prior written consent, in the process of repairing, replacing or rebuilding any Damaged Insured Property. 25/65