TRAVELERS CALIFORNIA HOMEOWNERS-TENANT POLICY SUMMARY OF MAJOR COVERAGE CHANGES

Transcription

1 TRAVELERS CALIFORNIA HOMEOWNERS-TENANT POLICY SUMMARY OF MAJOR COVERAGE CHANGES We are pleased to introduce our new Travelers Homeowners-Tenant Policy, which replaces your current Homeowners-Tenant Policy on the effective date shown on the Declarations page. Important changes in your new Homeowners-Tenant Policy {HO-4 (10-06) + HO-300 CA (06-09) + HO-90 CA (05-07)} that broaden or reduce coverage from your current Homeowners-Tenant Policy {HO-4 CA (10-92) + HA-300 CA (06-09) + HO-827CA (09-05) (03-00)} are highlighted below. The changes are listed in the same order that they appear in your new policy. Please note that your policy may or may not include each of the optional endorsements listed herein. Furthermore, no coverage is provided by this summary and if there is any conflict between the policy and this summary, the provisions of the policy will prevail. You should read your new policy and review your Declarations page for complete information on your coverage. If you have any questions concerning coverages please contact your Travelers agent to discuss. DEFINITIONS Aircraft, hovercraft, motor vehicle and watercraft liability The policy adds a new definition of aircraft, hovercraft, motor vehicle and watercraft liability. Business -The definition has been expanded to include full, part time or occasional trade, profession or occupation or any activity engaged in for money or other compensation. It broadens coverage by excepting unpaid volunteer activities and certain home daycare services from the definition. Employee - A definition has been added to clarify that an employee is mutually exclusive from a residence employee. Fungi - The policy adds a definition of fungi, which means any form of fungus or by-products produced by fungi except those contained in product intended for consumption. Fungi coverage previously contained within endorsement HO-827 CA is now included within the policy. Insured - The policy amends the definition of an insured to include full time students away at school, provided the student is under the age of 24. An when used with insured means one or more insureds. And the definition of insured includes any additional insured named in the Declarations with respect to Coverages A, B, E and F and only for the residence premises. Motor vehicle - The policy adds a definition of motor vehicle, which means a self-propelled land or amphibious vehicle or any trailer or semi-trailer which is being carried on, towed by or hitched for towing by a self propelled land or amphibious vehicle. Residence employee - The definition has been revised to include a leased employee. Does not include temporary employee(s) who is a substitute for a residence employee or short term employee(s). Residence premises The policy broadens the definition of residence premises to include three and four family dwelling. SECTION I PROPERTY COVERAGES (Coverage C) Section I - Coverage C Personal Property revised as follows: The limit for property at other residences remains at 10% of the Coverage C limit or $1,000, whichever is greater. However, this limit does not apply when the property is removed from the residence premises because the residence premises is uninhabitable due to repairs, remodeling or renovation. Language added to clarify that you no longer need to request coverage in advance in order for the personal property of others to be covered while on the residence premises. Special Limits of Liability revised as follows: Securities, accounts, deeds, evidence of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps increased from $1,000 to $1,500. Watercraft, including related equipment, outboard engines and motors increased from $1,000 to $1,500. Trailers not used with watercraft increased from $1,000 to $1,500. Theft of jewelry, watches, furs, precious and semi-precious stones increased from $1,000 to $1,500. Theft of firearms and related equipment increased from $2,000 to $2,500. 1

2 Theft of silverware, gold-ware, platinum-ware limit reduced from $5,000 to $2,500 however, the per item limit has been deleted. Business property used away from the residence premises increased from $1,000 to $1,500. Electronic apparatus in a motor vehicle which operates from a dual power source increased from $1,000 to $1,500. Electronic apparatus used for business not in a vehicle has been deleted. These items will now be subject to the business property limits. Tapes, records, discs, or other media that can be used with any electronic apparatus, while in or upon a motor vehicle, has been added, up to $250. Property Not Covered The $500 limit on accessories or equipment detached from a motor vehicle is removed. The Coverage C limit will now apply. The policy does not cover model or hobby aircraft or hovercraft or hovercraft parts. The policy does not cover business data. Language added to specify that water and steam are not covered. Section I - Coverage D Loss of Use revised as follows: Coverage D limit is increased from 20% of Coverage C to 30% of Coverage C. Written proof required showing that part of the residence is rented and was held for rental at the time of a loss or rented within 24 months prior to the loss is required for reimbursement of Fair Rental Value. Definition of neighboring premises added under Civil Authority Prohibits Use. Section I - Additional Coverages revised as follows: Debris removal - Language added to cover removal of ash, dust or particles from a volcanic eruption. Tree removal - Language added to clarify that tree must damage a property covered as Building Additions and Alterations, block a driveway or block handicap access. The limit of liability set to $1,000. No more than $500 is available for the removal of any one tree. Fire department service charge - Does not cover service charge if the property is located within the limits of the municipality furnishing the fire department response. Credit card, Electronic Fund Transfer Card, or Access Device, Forgery and Counterfeit Money Expands coverage to include other devices such as PINS, passwords and debit cards that provide access to an insured s account. Glass or safety glazing material - Coverage added for loss caused by earth movement. Broken glass coverage will not be provided if the property has been vacant for 60 days (increased from 30 days). A definition of vacant has been added. Ordinance or Law - Coverage is added for increased costs due to the enforcement of any ordinance or law regulating the repair of covered building property, up to 10% of the limit that applies to Building Additions and Alterations. Grave markers Coverage added of up to $5000 for grave markers, for loss caused by a Peril Insured Against in Coverage C. Mudslide - Coverage for damage caused by mudslide removed. Lock Replacement Coverage - Coverage for lock replacement removed. Inflation Coverage Coverage C Personal Property and Coverage D Loss of Use may be adjusted to reflect cost of insured property. Limited Fungi, Other Microbes or Rot Remediation - Coverage for the removal, increased living expenses incurred and for testing for fungi that results from a Peril Insured Against. Fungi coverage previously contained within HO-827 CA is now included within the policy. SECTION I PERILS INSURED AGAINST Coverage C Personal Property 2

3 Smoke - Broadens coverage to include emission or puffback of smoke, soot, fumes or vapors from a boiler, furnace or related equipment. Vandalism and malicious mischief Coverage does not apply to ensuing loss caused by an intentional act committed during vandalism or malicious mischief. The vacancy period has been increased from 30 days to 60 days before the exclusion takes effect. A definition of vacant has been added. Theft Reduces coverage by broadening the exclusion to specify that any theft that occurs from the part of the residence that is rented to others is not covered regardless of who commits the theft. Accidental discharge or overflow of water or steam Language added to clarify that overflow of sump pump, roof drain, gutters, downspouts or similar equipment are not covered. Freezing of plumbing/heating system - In order to be covered, you must maintain heat or shut off water and drain systems; but, if you have a fire protective sprinkler system, you must always maintain heat and the water supply - whether the premises is vacant or not. Volcanic Eruption New coverage added. SECTION I - EXCLUSIONS Ordinance or law - Exclusion applies to loss in value and testing or clean-up of pollutants. Intentional loss - Excludes all insureds from coverage for an intentional loss that an insured commits or conspires to commit. Governmental action - Excludes destruction or seizure by government order except when seizure is done to prevent spreading fire. Fungi, Other Microbes or Rot - Fungi coverage previously contained within HO-827 CA is now included within the policy. SECTION I - CONDITIONS Duties after Loss - Insured has a duty to cooperate with us. We can deny coverage if an insured s failure to cooperate is prejudicial to us. Other insurance - If a loss covered under this policy is also covered by a service agreement or home warranty, the coverage under this policy will be excess over the service agreement. Suit against us - You can bring an action against us within one year from date of loss. Concealment or Fraud - We will not provide coverage to any insured if any other insured engages in fraudulent conduct or concealment, whether before or after a loss. Premises alarm or fire protection system - If you received a credit for an alarm system or sprinkler system, you agree to maintain the systems in working order and promptly notify us of any changes to the system. SECTION II - LIABILITY COVERAGES (Coverages E and F) Personal liability coverage (Coverage E) - Our duty to defend ends when the limit of liability is exhausted by the payment of a judgment or settlement. SECTION II - ADDITIONAL COVERAGES Claim expenses - Increased coverage of insured s expenses (incurred at our request) from $50 to $250 per day. Damage to property of others - Increased coverage for property damage to property of others, caused by an insured, from $500 to $1,000 per occurrence. SECTION II - EXCLUSIONS Intentional Loss - Revised to clarify that the exclusion still applies even if the result is different from what the insured expected or intended. The exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property. Business pursuits - Revised to now provide coverage when bodily injury or property damage results from (1) an insured under 3

4 the age of 21 involved in part-time or occasional self-employed business with no employees or (2) one or more activities for which no insured receives more than $2,000 in total compensation for the consecutive 12 months before the occurrence. Also, extends liability coverage to an additional residence rented to others or another structure that is rented to others, if listed on the Declarations page. Lead liability - Excludes any loss caused by or resulting from lead now applies to the policy. Motor vehicles - Coverage for golf carts broadened to include use on public roads within a golfing facility or a private residential community. Also excludes coverage for vehicles being used for racing, for rental to others, or used for any business purpose other than a golf cart used for business entertaining. Watercraft liability - Excludes coverage for watercraft being used for racing (except a sailing vessel or predicted log cruise), rented to others, used to carry persons or cargo for a charge or any other business purpose. Bodily injury to an insured - Language clarifies that Coverage E- Personal Liability does not apply to any claim brought against an insured to repay or share damages with any other person who may be obligated to pay damages because of bodily injury to an insured. Bodily injury to employee Language clarifies that Coverage E- Personal Liability does not apply to bodily injury to an employee or temporary employee arising out of the employee s employment. SECTION II - CONDITIONS Duties after Occurrence - Insured has a duty to cooperate with us. We can deny coverage if an insured s failure to cooperate is prejudicial to us. Concealment or Fraud - We will not provide coverage to any insured if any other insured engages in fraudulent conduct or concealment, whether before or after a loss. SECTIONS I and II - CONDITIONS Liberalization clause - Does not apply to general program revisions that include both broadenings and restrictions of coverage, whether implemented through a subsequent policy edition or an amendatory endorsement. Waiver or change of policy provisions - You agree to keep us informed of changes in title, use or occupancy, and you agree that we can make changes to the terms or premium during the first 60 days of the policy if any information changes. Cancellation Language updated to list reasons a policy may or may not be cancelled and the time frame required for notice of that cancellation. Nonrenewal Language updated to list reasons a policy may or may not be cancelled and the time frame required for notice of that cancellation. Language also clarifies that this policy automatically terminates without notice of termination at the end of the policy period if our offer to renew has not been accepted. Failure to pay the renewal premium by the due date will be considered your refusal of our offer to renew. MANDATORY ENDORSEMENT REVISIONS HO-90 CA - Workers Compensation Residence Employees (previously endorsement 55769) Mandatory Endorsement included with the policy. No coverage changes. HO-300 CA - Special Provisions California (previously endorsement HA-300 CA) Mandatory Endorsement included with the policy. Any coverage changes are included herein. - Limited Fungi, Other Microbes or Rot Coverage (previously endorsement HO-827 CA) Coverage provided under endorsement HO-827 is now included within the HO-3 and is displayed on the Declarations page. OPTIONAL ENDORSEMENT REVISIONS We have made changes to many optional coverages and endorsements. If you had selected any optional coverages or endorsements in your previous policy, your new policy has been issued with coverages and 4

5 endorsements that match your previous coverages as closely as possible. The optional coverages and endorsements you have selected are shown on the Declarations. The following is a summary of some of the important changes to Homeowners-Tenant policy endorsements. Please refer to your Declarations page to determine which endorsements are relevant to your specific Homeowners-Tenant policy. HO-28 - Motorized Golf Cart Coverage (previously endorsement 19935) Section I Exclusions Clarifies that loss caused by extremes of temperatures is excluded Adds that loss caused by animals, birds, vermin, insects or rodents is excluded; except for collision with an animal or bird. Section I Conditions Loss Settlement - Manufacturer s specifications and accepted repair practices will be utilized in a covered loss settlement. Section II Liability Coverages These coverages are now included within the HO-4 and have been removed from the endorsement. HO-35 - Loss Assessment Coverage (previously endorsement HA-35 CA and 56432) Coverage for each additional location must be added separately. Endorsement is no longer available, endorsement HO-35 has replaced with same coverage limits. HA-41 - Additional Insured is no longer available. Coverage provided under endorsement HA-41 is now included within the HO-4 and the name of any Additional Insured is displayed on the Declarations page, if applicable. HO-42 - Permitted Incidental Occupancies Section I Property Coverages Loss to certain business property on the residence premises increased from $2,500 to $5,000. HO-51 Building Additions and Alterations is no longer available. Coverage provided under endorsement HO-51 is now included within the HO-4 and the increased limits are displayed on the Declarations page, if applicable. HA-53 CA - Credit Card, Funds Transfer Card, Forgery and Counterfeit Money Coverage Increased Limit is no longer available. Coverage provided under endorsement HA-53 is now included within the HO-4 and the special limit of liability is displayed on the Declarations page, if applicable. HO-55 CA - Limited Earthquake California (previously endorsement and 58174) Excludes coverage for construction materials on or next to residence premises. Excludes coverage for personal property of others on the residence premises. Please consult the endorsement for all applicable changes. HO-61-B - Valuable Items Plus (previously endorsement HA-61-B CA) Specifies that the covered classes of property must be owned and used by an insured and normally kept at the residence premises ; or is temporarily away from the residence premises anywhere in the world. Adds $100 special deductible with respect to Fine Arts for the breakage of fragile articles. Removes $500 Special Limit of Liability for data storage media, china/crystal and musical instruments. HO-65 - Coverage C Increased Special Limits of Liability is no longer available. Coverage provided under endorsement HO-65 is now included within the HO-4 and the increased special limits of liability are displayed on the Declarations page, if applicable. HO-70 - Additional Residence Rented to Others - 1 or 2 Families is no longer available. 5

6 Coverage provided under endorsement HO-70 is now included within the HO-4 and is displayed on the Declarations page, if applicable. HO Watercraft Liability Section II Exclusions Excludes coverage for watercraft being used for racing (except a sailing vessel or predicted log cruise), rented to others, used to carry persons or cargo for a charge or any other business purpose. HO-76 - Watercraft Hull Coverage (previously endorsement HA-76 CA and HA-576) Section I - Exclusions Deletes exception to Water Damage exclusion so that loss to watercraft caused by Water Damage is no longer covered. Adds exclusion for property used at any time or in any manner for business purposes. Deductible Special Deductible for Watercraft Hull Coverage increased from $100 to $250. HO-82 - Personal Injury Definitions Adds oral, written or electronic publication of material that slanders or libels or that violates a person s right to privacy as sources of personal injury. Section II Exclusions New exclusions relating to personal injury are introduced. Section II Additional Coverages Loss Assessment coverage is extended to cover loss caused by personal injury. HO-84 Enhanced Home Package (previously endorsement CA) Section I Property Coverages Increase Special Limits of Liability under Coverage C. Coverage for electronic apparatus used for business not in a motor vehicle has been removed. These items will now be subject to the $1,500 limit for business property away from the residence premises. Additional $250 is provided for tapes, records, discs or media while in or upon a motor vehicle. Section I Coverage D - Loss of Use Additional Living Expense and Fair Rental Value for loss resulting from power failure has been removed. Additional Living Expense and Fair Rental Value for prohibited use by civil authority due to a loss for any peril has been removed. Reimbursement for association fees when a Peril Insured Against or Power Outage make the residence premises uninhabitable has been removed. Section I Additional Coverages Lock Replacement coverage. Reward coverage. Water back up and sump pump overflow or discharge coverage with optional limits available. The all peril deductible will now apply to water back up and sump pump losses. Increased limits Fire Department service charge. Increased limits credit card, fund transfer card, forgery and counterfeit money from additional $1,000 to additional $1,500. Debris Removal allowance of $3,000 for the removal of fallen trees has been removed. $1,000 tree removal coverage has been included within the new policy. Coverage for personal property away from the residence premises damaged by flood, earthquake, landslide or collision has been removed. 6

7 Section I Perils Insured Against All risk coverage is now provided for Coverage C Personal Property. Section I - Conditions Loss Settlement for Personal Property losses are settled at Replacement Cost. HO-146 Business Property Increased Limits is a new optional endorsement. HO Water Back Up and Sump Discharge or Overflow is a new optional endorsement. HO-216 CA - Premises Alarm or Fire Protection System is no longer available. Coverage provided under endorsement HO-216 is now included within the HO-4 and is displayed on the Declarations page, if applicable. HO Personal Property Replacement Cost (previously endorsement 56494) If costs to repair damages to the property are above the increased limit of $2,500 actual cash value will be paid until the repairs have been completed. Time allowed to make claim for Replacement Cost Value increased from 180 days to 12 months. HO Additional Interests Residence Premises is a new optional endorsement. Coverage provided under endorsement HO-310 is now included within the HO-4 policy. HO Student Property Away from Home (previously endorsement 56464) Requires student to have been an insured resident of the household prior to attending school. HO-404 Special Tenant Form Provisions is no longer available. HO Other Members of Your Household is a new optional endorsement. HO Assisted Living Care Coverage is a new optional endorsement. HO Difference in Condition (previously endorsement 56514) Adds volcanic eruption to excluded events Fire Department Service Charge Increased Limit is no longer available. Coverage provided under endorsement is now included within the HO-4 policy Personal Liability Umbrella Supplement Excludes injury or damage attributable to fungi or other microbes. Adds definition of Fungi. Excludes injury or damage attributable to use or ownership of recreational vehicles. Excludes injury or damage attributable to lead or asbestos. THIS SUMMARY OF COVERAGE CHANGES IS NECESSARILY BRIEF AND CANNOT INCLUDE EVERY DETAIL OF COVERAGE. THE POLICY CONTRACT AND ENDORSEMENTS PROVIDE COMPLETE DESCRIPTIONS OF THE COVERAGES AND THE EXCLUSIONS, LIMITATIONS AND CONDITIONS THAT APPLY TO THEM. IF YOU HAVE ANY QUESTION ABOUT THIS POLICY OR ANY OTHER INSURANCE NEED, PLEASE CONTACT YOUR TRAVELERS AGENT OR REPRESENTATIVE WHO WILL BE HAPPY TO HELP YOU. 7