AIG Property Casualty Company v. William H Cosby et al

Filing 1

COMPLAINT Receipt No: 0973-15982178 - Fee: $400, filed by Plaintiff AIG Property Casulaty Company. (Attachments: #1 Exhibit A to Complaint, #2 Exhibit B to Complaint, #3 Exhibit C to Complaint) (Attorney James P Wagoner added to party AIG Property Casulaty Company(pty:pla))(Wagoner, James)

Exhibit B Page 000145

Exhibit B Page 000146

Renewal Declarations Page

AIG Property Casualty Company
(Name of issuing company)

California Homeowners Declarations Page

Your Declarations Page shows at a glance the coverage you have and your premium. Your Declarations Page is part of
your policy. Please read your policy carefully, including your Declarations Page and any attached Endorsements, for a
description of your coverage.
Policy Number:
PCG 0006004359

Policy Period: 01/01/2014 - 01/01/2015

Name of Insured and Mailing Address:
1500
, LLC
c/o Momentous Insurance
5990 Sepulveda Blvd. #550
Van Nuys, CA 91411

Agency Name, Address, Phone # & Code:
Momentous Insurance Brokerage
5990 Sepulveda Blvd.
Suite #550
Van Nuys, CA 91411

At 12:01 A.M. standard time at your mailing address shown below

[phone]

0051601

YOU WILL BE BILLED SEPARATELY FOR ANY PREMIUM DUE.
The kind of losses that are covered and any special limits or deductibles that apply are explained in detail in your policy.
The limit of liability for this structure (Coverage A) is based on an estimate of the cost to rebuild your home, including
an approximate cost for labor and materials in your area, and specific information that you have provided about your
home.
Summary of Coverage by Location:

COVERAGE

Dwelling
Other Permanent Structures
Contents
Loss of Use
Liability
Medical Payments
A deductible of

PAYMENT BASIS

COVERAGE LIMIT

Extended Rebuilding Cost
Extended Rebuilding Cost
Replacement Cost

$50,000 applies to this location unless a special deductible applies.

$4,299,946
$859,989
$1,074,986
Unlimited
$1,000,000
$10,000
Location Premium:

Forms and Endorsements Attached for Location: PCHO-CA (09/06), PCHO-BOR-CA (07/11), 78052 (01/11),
PCG-CAU-CA (01/10), PCHO-EB (9/06), PCHO-FLD (09/06), PCHO-FUNGINOT (06/06), PCHO-IEF (12/05),
PCHO-WCSC (7/01), PCHO-CALP (11/00), PCHO-DPNOT-CA (10/05), PCHO-RESDISC-CA (07/11), AEQ1 (05/99)

Mortgagee # 001

PCHO-DEC-CA (10/05)

Exhibit B Page 000147
Total Premium:

Protect your home from water damage
Leaks are one of the most common causes of property damage, but with
proper guidance you can virtually eliminate your home’s vulnerability.
Through our relationship with Water Security Systems, LLC, Private Client
Group policyholders can access complimentary consultations and
exclusive savings on additional services.
.....................
Services at
your disposal

.........................................................................................................................
Allow Water Security Systems to advise you on how best to protect your home from water damage by:
•

Providing you with pre-approved system
options and information on the total cost
of a water security device

•

•

Assisting with the pre-installation process
by ensuring that the plumbing is
configured correctly

•

Recommending a qualified plumber or
working closely with your plumber to
educate them on proper installation that
is customized to your property.
Providing ongoing customer support postinstallation

AIG Private Client Group policyholders can enjoy savings of $300 – $1,000 on
a water security system.
.....................
Additional
Benefits

.........................................................................................................................
Installing a water security system can provide value beyond simply reducing damage to your home
from leaks. The following are among the added benefits you may receive:
•
•

Discounts on your homeowners policy,
which may lead to significant savings
Reduced water bills

•
•

Lower payouts toward your deductible
due to less costly damage
Enhanced protection for valuables inside
your home

“Our hot water heater blew in spectacular fashion and Private Client Group recommended I promptly call Water Security Systems
to prevent an incident like this from happening again. They helped me sort through the various device options, explained what
was best for my home and were very patient throughout the process. They even worked directly with my plumber to ensure
proper installation and automatically contacted Private Client Group so I could receive a discount on my homeowners policy for
having a device installed.”
— Jennifer Baldwin, Policyholder

For more information, please visit www.WSSUS.com or contact Water
Security Systems directly at 888 356 5644. Be sure to mention you’re
insured with AIG.
AIG is the marketing name for the worldwide property-casualty and general insurance operations of American International Group, Inc. AIG Private Client Group is
a division of American Interantional Group, Inc. Insurance and services are provided by a member company of AIG Inc. Coverage and supplemental services may
not be available in all jurisdictions and are subject to underwriting review and approval. Services provided by third parties are not part of the insurance policy, are
not guaranteed by AIG Private Client Group and may be discontinued at any time.
_______________________________________________________________________________________________________________________________________________________________________________________________

Exhibit B Page 000148

Copyright © 2011 American International Group, Inc. All rights reserved. www.aigpcg.com

NOTICE

To report a claim, please contact:
1-888-760-9195

PCG-CL NO (06/06)

Exhibit B Page 000149

POLICYHOLDER NOTICE
Thank you for purchasing insurance from a member company of American
International Group, Inc. (AIG) . The AIG member companies generally pay
compensation to brokers and independent agents, and may have paid
compensation in connection with your policy. You can review and obtain
information about the nature and range of compensation paid by AIG member
companies to brokers and independent agents in the United States by visiting
our website at www.aigproducercompensation.com or by calling AIG at
1-800-706-3102.

91222 (07/06)

Exhibit B Page 000150

HOMEOWNERS COVERAGE
QUICK REFERENCE
Declarations Page
Your Name and Address
Transaction
Policy Period
Coverage Limits
Premium
Forms
Coverage is provided by the American International Group, Inc. member company named on the
Declarations Page.
Each is a stock company.

Policy Provisions

Beginning on Page

PART I - Definitions

1

PART II - Property

2

A. Insuring Agreement
B. Payment of a Loss
C. Additional Coverages
D. Exclusions
PART III - Liability
A. Insuring Agreement
B. Payment of a Loss
C. Defense Coverage and Claim Expense
D. Additional Coverages
E. Exclusions

10

PART IV - Conditions

14

The Contract together with the Declarations Page and Endorsements, if any, complete the policy.

Exhibit B Page 000151

Exhibit B Page 000152

THIS POLICY IS NOT COMPLETED WITHOUT A DECLARATIONS PAGE
HOMEOWNERS COVERAGE - POLICY PROVISIONS
The insurance company named on your Declarations Page will provide the insurance described in this
policy. You agree to pay the premium and comply with your responsibilities described in this policy.
Various provisions in this policy restrict or exclude coverage. Read the entire policy carefully to determine
your rights and duties, and what is and is not covered. We have no duty to provide coverage unless there
has been full compliance with policy PART IV - CONDITIONS.
PART I - DEFINITIONS

any mycotoxins, spores, scents, vapors, gas or
substance, including any by-products, produced or
released by fungi.

Words with special meanings are defined here or in
the part of the policy where they are used.
Throughout the policy, defined terms will be
bolded when used.

House means the owned one, two, three or four
family dwelling at which you reside, intend to
reside, or any location named on the Declarations
Page that is not a condominium or a cooperative.

In this policy, the words "you", "your" and
"yours" refer to the person or persons named on
the Declarations Page and his or her spouse who
lives in the same household. The words "we",
"us", "our" and "ours" mean the insurance company named on the Declarations Page.
As used herein, a Declarations Page includes any
schedule that supplements it.
Also, in this policy the words:
Aircraft means any contrivance used or designed
for flight, except model or hobby craft not used or
designed to carry people or cargo.
Bodily Injury means bodily harm, including resulting sickness or disease, required care, loss of services or death.
Business means a part-time or full-time trade, occupation or profession, including farming or ranching, other than incidental business.
Contents means personal property owned by, or in
the possession of, you or a family member.
For any residence listed on the Declarations Page
that is a condominium or cooperative, or rental
unit, contents includes additions, alterations, items
of real property, installations or fixtures that you
paid for or acquired at your expense along with the
residence. The property must be your insurance
responsibility under the governing rules of the
Condominium or Cooperative Association.
Damages means the sum required to satisfy any
claim covered by this policy, whether settled and
agreed to in writing by us or resolved by judicial
review.
Family Member means a person related to you by
blood, marriage or adoption that lives in your
household including a ward or foster child.
Fungi means any type or form of fungus, including
but not limited to all forms of mold or mildew, and

PCHO-CA (09/06)

Incidental Business means a business activity that
does not produce gross revenues in excess of
$10,000 in any year, has no employees subject to
workers' compensation or other similar disability
laws, and conforms to federal, state and local
laws. Incidental business includes the business of
farming provided that it does not involve
employment of others for more than 1,250 hours
of farm work during the Policy Period, and does
not produce more than $25,000 in gross annual
revenues from the raising or care of animals or
agriculture. Incidental business includes residences
listed on the Declarations Page that you own and
rent to others.
Insured person means:
a. You or a family member;
b. An Additional Insured named in the policy;
c. Any person given permission by you or a family
member to use a vehicle or watercraft covered
under this policy with respect to their legal
responsibility arising out of its use; or
d. A spouse. A spouse is a marriage partner. The
term spouse also includes an individual registered under state law as a domestic partner of
the insured person shown on the Declarations
Page.
Landscaping means your trees, lawn, shrubs, and
other plants, not including forestry or brush, on the
grounds of your residence.
Medical Expenses means reasonable charges for
medical, dental, hospital, surgical, X-ray, prosthetic
devices, professional nursing, ambulance, and funeral services.
Occurrence means:
a. A loss or an accident, to which this insurance
applies, including continuous or repeated expos-

Exhibit B Page1000153

ure to substantially the same general harmful
conditions, which occurs during the Policy
Period and results in personal injury or property
damage; or
b. An offense, to which this insurance applies, including a series of related offenses, committed
during the Policy Period that results in personal
injury or property damage.
Other Permanent Structures means outdoor
structures you own that are situated on the
grounds of your residence.
Personal Injury means injury, including bodily or
mental harm or resulting death rising out of any of
the following acts:
a. Bodily injury;
b. Wrongful detention, false imprisonment or false
arrest;
c. Shock, emotional distress, mental injury;
d. Invasion of privacy;

c. Any other type of home you rent to live in.
Residence Employee means:
a. Your employee whose duties are related to the
maintenance or use of the residence premises,
including household or domestic services; or
b. One who performs similar duties elsewhere not
related to your business.
Watercraft means a boat or craft designed for use
on, over or under water.
PART II - PROPERTY
A. Insuring Agreement
This policy covers you against all risks of direct
physical loss or damage to your house,
contents and other permanent structures unless an exclusion applies.
B. Payment of a Loss
1. Amount of Coverage for Your House and
Other Permanent Structures

e. Defamation, libel or slander;
f. Malicious prosecution;
g. Wrongful entry or eviction; or
h. Assault and battery when committed with the
intent of protecting persons.
Property Damage means physical injury to, destruction of, or loss of use of tangible property and
the resulting loss of its use.

The amount of coverage for each house and
for other permanent structures
at each
location shown on the Declarations Page is
determined by the payment basis shown on
the Declarations Page:
a. Extended Rebuilding Cost Coverage

Reconstruction Cost means the lesser of the amount at the time of the loss required to:
a. Restore or repair a structure; or
b. Replace or rebuild a structure at the same location;
with materials of like kind and quality. Reconstruction cost does not include any amount required for the excavation, replacement or stabilization of land under or around a structure.
Recreational Motor Vehicle means:
a. A motorized land vehicle designed for use off
public roads and not subject to motor vehicle
registration or operator licensing;
b. A motorized land vehicle in dead storage at
your residence; or
c. A motorized land vehicle used solely on and to
service a location shown on the Declarations
Page.
Residence means any of the following which is
listed on the Declarations Page:
a. Any house, other permanent structures and
grounds that you own;
b. Any condominium unit, cooperative, or apartment that you own or reside in; or

PCHO-CA (09/06)

Exhibit B Page2000154

We will pay Extended Rebuilding Cost
when shown on the Declarations Page of
this policy. Extended Rebuilding Cost
Coverage means that for a covered loss
we will pay the reconstruction cost of
your house or other permanent structures, for each occurrence. If the reconstruction cost of your house exceeds
the coverage limit for your house as
shown on the Declarations Page, we will
pay up to 100% more than this amount
of coverage for the reconstruction cost.
If the reconstruction cost of your other
permanent structures exceeds the coverage limit for your other permanent structures as shown on the Declarations Page,
we will pay up to 100% more than this
amount of coverage for the reconstruction cost. However, you must begin to
repair or rebuild your house or other permanent structures within two years from
the date of loss at the same location. If
not,the maximum payable is the coverage
limit shown for that location on the Declarations Page.
b. Replacement Cost Coverage
We will pay Replacement Cost when
shown on the Declarations Page of this
policy. Replacement Cost Coverage
means that for a covered loss we will pay

the reconstruction cost of your house or
other permanent structures, up to the
coverage limit shown for that location on
your Declarations Page, for each occurrence. For a covered total loss we will
pay the reconstruction cost up to the
coverage limit shown for that location on
your Declarations Page, for each occurrence, whether or not you actually rebuild your house or other permanent
structures. The amount of coverage will
be increased daily to reflect the current
effect of inflation. At the time of a covered loss, your house and other permanent structures coverage will include any
increase in the United States Consumer
Price Index from the beginning of the
Policy Period.

tents coverage or at a house, condominium, cooperative or rental unit
owned or rented by the insured person not listed on the Declarations
Page of this policy or any other policy
issued by us or one of our affiliated
companies:
We will pay up to 10% of the highest
coverage limit for contents of any
single location listed in this policy, for
each occurrence. Payment will be
made based on the single location and
will not be made under more than one
policy issued by us or one of our
affiliated companies.
However, contents at a newly acquired residence are not subject to
this limitation for sixty (60) days after
you begin to move property there.

Your payment basis is subject to the following
restriction. If at any time during the Policy
Period, you are newly constructing your house
or other permanent structures; constructing
additions; or undergoing renovations equal to or
in excess of the lesser of 10% of the house
coverage limit or $500,000, and/or it results in
your moving out of the house for any period of
time, the payment basis for your house or
other permanent structures is the reconstruction cost less depreciation. This limitation
will not apply if we otherwise give our prior
written consent.
We may change the amount of coverage shown
on the Declarations Page when the policy renews or when appraisals are conducted to reflect current costs and values.
2. Amount of Coverage For Your Contents
The coverage amount for your contents for
each covered residence is listed on your
Declarations Page. The amount we will pay
for a covered loss will depend on where the
covered loss occurs:
At a Residence;
a. If a loss occurs to contents located at
a residence with contents coverage:
i. Listed on the Declarations Page of
this policy:
We will pay up to the coverage
limit for contents for that location,
for each occurrence; or
ii. Under another Homeowners policy
in force with us:
We will not pay any amount under
this policy.
b. If a loss occurs to contents located at
a residence that does not have con-

PCHO-CA (09/06)

Away From a Residence;
c. If a loss occurs to contents located
away from any residence or location
you own or live at:
We will pay up to the highest coverage limit for contents for any single
location listed in this policy, for each
occurrence. Payment will be made
based on the single location and will
not be made under more than one
policy issued by us or one of our
affiliated companies.
The most we will pay for a covered loss is the
lesser of the amount required to repair the
damage or the full cost to replace the contents
without deduction for depreciation, up to the
coverage limit.
However, the most we will pay for a covered
loss is the cost to repair or replace the contents less depreciation, up to the coverage limit,
if the contents are obsolete or unusable for the
purpose for which they were originally intended
because of their age or condition.
If, after a covered loss to both house and
contents, we pay more than the coverage limit
for house coverage because of Extended Rebuilding Cost, we will automatically increase the
amount of contents coverage for that loss by
the same percentage that we increased the
amount of house coverage.
The amount of coverage for your contents will
be increased daily to reflect the current effect
of inflation. At the time of a covered loss, your
contents coverage will include any increase in
the United States Consumer Price Index from
the beginning of the Policy Period.

Exhibit B Page3000155

3. Deductible
The deductible shown on the Declarations
Page is the amount of a covered loss you
will pay for each occurrence.

d. If we deny payment to you but pay the
mortgagee:
i. We are subrogated to all the rights of
the mortgagee granted under the
mortgage on the property; or

Your deductible shown on the Declarations
Page will be reduced by any other deductible in this policy unless the deductible is a
special deductible such as hurricane, wind
and hail, or named storm.
Construction deductible. If at any time during the Policy Period, you are newly constructing your house or other permanent
structures; constructing additions; or undergoing renovations equal to or in excess of
the lesser of 10% of the house coverage
limit or $500,000, and/or it results in your
moving out of the house for any period of
time, a 5% construction special deductible
will apply to each occurrence in lieu of a
base deductible. This deductible applies to
your house, other permanent structures,
contents, and additional coverages. The
dollar amount of this deductible is based on
the house coverage limit shown on the Declarations Page for that location at the time
of the loss. This deductible does not
eliminate any other special deductibles that
may apply. If the deductible waiver for large
losses endorsement was selected, that endorsement will not apply. The construction
deductible will not apply to the loss if we
otherwise give our prior written consent.
4. Mortgage Clause
The word mortgagee includes trustee. If a
mortgagee is named in this policy, any
covered loss will be paid to you and the
mortgagee as interests appear. If there is
more than one mortgagee named in this
policy, the order of payment will be identical
to the order of precedence.
If your claim is denied, the denial will not
apply to a valid claim submitted by the
mortgagee if they:

ii. At our option, we may pay the
mortgagee the entire principal on the
mortgage plus any accrued interest.
In this event we will receive a full
assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.
Subrogation will not impair the right of the
mortgagee to recover the full amount under
the mortgagee's claim.
5. Pairs, Sets and Parts
For a covered loss to a pair or set, we will
pay whichever is less:
a. The cost to replace any part to restore
the pair or set to its value before the
loss;
b. The cost to repair any part to restore the
pair or set to its value before the loss;
c. The difference between the market value
of the property before and after the loss;
or
d. The amount of coverage.
However, we will pay you the full replacement cost of the entire pair or set if you
agree to surrender to us the undamaged
items(s) of the pair or set.
6. Special Limits of Liability
a. The limit shown for each of the following
categories is the maximum we will pay
for a covered loss to that type of
contents. These special limits do not increase the amount of coverage of your
contents.

a. Notify us of any change in ownership or
substantial change in risk of which they
are aware;
b. Pay any premium due on this policy or
on demand if you have neglected to pay
the premium; and
c. Submit a sworn statement of loss within
sixty (60) days after receiving notice
from us of your failure to do so.
If your policy is cancelled or not renewed by
us, the mortgagee will be notified in writing
at least ten (10) days before the cancellation or nonrenewal takes effect.

PCHO-CA (09/06)

Exhibit B Page4000156

Money, bank notes, money orders, drafts, checks
or gold, silver or platinum
bullion or ingots

$2,500

ii. Watercraft , including their

$5,000

iii. Trailers

$5,000

i.

outboard motors, equipment and furnishings

iv. Grave markers and Maus-

oleums

$50,000

b. The limit shown for each of the following
categories is the maximum we will pay for a
covered loss to that type of contents unless
they are stored in a bank vault or bank safe
deposit box, in which case we will pay up to
the total amount for contents coverage listed
in the policy for each occurrence. These special limits do not increase the amount of
coverage of your contents.
Stamps, Coins & Medals

$5,000

ii. Negotiable papers, securi-

$5,000

i.

ties, accounts, evidences
of debt, letters of credit,
notes (other than bank
notes), manuscripts, passports, tickets

c. We will pay up to the coverage limit for
contents coverage listed in the policy for
each occurrence for contents in the following categories unless they are lost, misplaced or stolen, in which case we will only
pay up to the limit shown below. These
special limits do not increase the amount of
coverage of your contents.
i.

Jewelry, watches, precious stones or semi-precious stones, whether set or
unset

$5,000

ii. Furs

$5,000

iii. Guns

$5,000
$10,000

iv. Silverware, goldware,

pewterware or trophies

d. We will pay up to the total amount of
contents coverage listed in the policy for
each occurrence for contents in the following categories unless the loss is caused by
breakage, in which case we will only pay up
to the limit shown below. These special
limits do not increase the amount of coverage of your contents.
i.

Crystal, china, porcelains,
figurines, statues, sculptures, mirrors, wine bottles, glassware and similar
items.

$50,000

C. Additional Coverages
These coverages are offered in addition to the
amount of coverage shown on the Declarations
Page unless stated otherwise. Your deductible
applies to these coverages unless stated otherwise. Exclusions are described in section D.
Exclusions and limits of liability are described in
section B., 6. Special Limits of Liability apply to
these coverages.
1. Additional Living Expense

habitable, we cover any reasonable increase in living expenses incurred by you to
maintain your household's usual standard of
living. Payment will continue for the shortest reasonable amount of time necessary to
restore your residence to a habitable condition or for your household to permanently
locate elsewhere. If your residence is under
construction and you are living in the resiidence at the time of loss, additional living
expenses will cease once you are restored to
the condition you were just prior to the loss.
We will not pay any interests for loans or
increased policy premiums associated with
the rebuilding of your home. However, if
prior to the loss you are not living in the
residence or have moved out because of
construction or renovations, then additional
living expenses for this location will not apply.
We will also pay reasonable expenses associated with the kenneling of your domestic
animals only.
2. Assessments
We will pay up to $100,000 per occurrence
for your share of an assessment charged
during the Policy Period against all the
members of a Homeowners, Condominium
or Cooperative Association. The assessment
must be as a result of a covered loss to
property or as a result of liability that would
be covered under this policy. We will not
pay assessments charged for loss resulting
from earthquake; however, we will pay your
share of an assessment charged as a result
of an ensuing covered loss due to theft,
explosion, fire or glass breakage unless
another exclusion applies. We will not pay
more than $10,000 for any assessment that
results from a deductible in your Association's insurance. The resultant assessment
must be a result of a covered loss to
property or as a result of liability that would
be covered under this policy. We will not
pay assessments charged for loss resulting
from earthquake; however, we will pay your
share of an assessment charged as a result
of an ensuing covered loss due to theft,
explosion, fire or glass breakage unless
another exclusion applies. Your deductible
does not apply to this coverage.
3. Fair Rental Value
If you are not able to rent out your residence, or a part of your residence, that you
usually rent to others because of a loss
covered by this policy, we will pay the fair
rental value for the reasonable amount of
time necessary to restore your residence, or
that part of your residence, to a habitable
condition.

If a covered loss makes your residence unin-

PCHO-CA (09/06)

Exhibit B Page5000157

4. Forced Evacuation
If you are forced by civil authority to
evacuate your residence as a direct result of
a loss or a reasonable threat of a loss covered by this policy, we will reimburse you
for the reasonable increase in your living expenses necessary to maintain your household's normal standard of living for up to
thirty (30) days. We also cover any loss in
fair rental value for up to thirty (30) days if
your residence is rented to others.
5. Landscaping
We will pay up to the greater of 5% of the
coverage limit for the house or 5% of the
coverage limit for the contents (if house
coverage is not available) at the residence
at which the covered loss occurs, but no
more than $5,000 for any one tree, shrub or
plant. Landscaping does not include forestry
or brush.
We will pay only for losses caused by:
a. Aircraft;
b. Fire, lightning or explosion;
c. Riot or civil commotion;
d. A vehicle not owned or operated by
someone who lives at the residence; or
e. Theft, attempted theft, vandalism or malicious mischief.
This additional coverage applies only if you
repair or replace the damaged landscaping
within 180 days of the date of loss.
6. Land
In the event of a covered loss to your house
or other permanent structures we will pay
for required stabilization, excavation, or
replacement of land under or around your
house or other permanent structures. We
will pay up to 10% of the amount of a covered loss to your house or other permanent
structures for this coverage.
7. Construction Materials
We cover materials, supplies, machinery,
equipment and fixtures owned by you at
each location shown on the Declarations
Page to be used in the construction, repair,
alteration, installation, erection or completion of your residence unless stated otherwise or an exclusion applies. These payments do not increase the amount of your
coverage.
8. Precautionary Repairs
After a loss covered by this policy, we will
pay the reasonable expenses you incur for
necessary repairs to protect your residence

PCHO-CA (09/06)

against further loss. These payments do not
increase the amount of your coverage.
9. Debris Removal
We will pay the reasonable expenses to
remove debris of a covered loss and the
property that caused that covered loss. We
will also pay up to a total of $1000 to
remove trees from the residence if felled by
the peril of windstorm, hail, weight of ice or
snow or sleet when there is no damage to
covered property.
10. Lock Replacement
We will pay for the cost of replacing the
locks in a residence listed on the Declarations Page if the keys to that residence are
lost or stolen. Your deductible does not
apply to this coverage.
11. Rebuilding to Code
We will pay the extra expenses to obey any
law or ordinance that regulates the repair,
rebuilding or demolition of damaged property
by a covered loss subject to the following:
a. If the loss is to a house, we will pay up
to 100% of the coverage limit shown on
the Declarations Page for that house; this
limit will be included in the 100% of additional coverage provided by Extended
Rebuilding Cost, if that payment basis
applies.
b. If the loss is to an other permanent
structure, we will pay up to 100% of the
amount of the coverage shown on the
Declarations Page for other permanent
structures at that location; this limit will
be included in the 100% of additional
coverage provided in the Extended Rebuilding Cost, if that payment basis applies.
c. If the loss is to the additions and alterations of your Condominium, Cooperative or apartment unit, we will pay up
to 100% of the coverage limit for contents for that unit shown on the Declarations Page.
12. Property Removal for Safekeeping
We will pay for any reasonable expenses
incurred for the moving and storing of contents from a residence because the concontents are in danger as a result of a covered loss.
13. Data Replacement
We will reimburse you up to $5,000 for expenses you incur as a result of a covered
loss to replace lost personal data stored on a
personal computer or portable computing
device that you own or lease.

Exhibit B Page6000158

14. Business Property
We will pay up to $25,000 for a covered
loss to business property you own or lease.
15. Fire Department Charges
We will pay for the charges imposed by law
or assumed by written agreement when a
fire department answers a call to save or
protect a residence listed on the Declarations
Page. Your deductible does not apply to this
coverage.
16. Back Up of Sewers and Drains
We will pay up to the coverage limits shown
on the Declarations Page for physical loss or
damage to property caused by:
a. Water which backs up through sewers or
drains on the residence premises. A sewer or drain is a pipe mechanically connected to the residence plumbing system, gutters or downspouts, or other
drainage pipe located on the residence
premises used to drain water and waste
away from the residence. A backup is
not due to the inability of a sewer or
drain to handle the amount of rainwater,
surface water or groundwater trying to
enter the sewer or drain.
b. Water which overflows from a sump
pump pit if such overflow results from
the mechanical breakdown of the sump
pump. This additional coverage is intended to cover damage caused by water that
overflows the sump pit due to mechanical breakdown of the sump pump, but
not damage caused by surface or groundwater before it enters the sump pit. This
coverage does not apply to direct physical loss or damage of the sump pump or
related equipment, which is caused by
mechanical breakdown.
These payments do not increase the amount
of your coverage.
17. Property of Domestic Staff and Guests
We cover the personal property of your
domestic staff and guests while it is on the
premises of any residence listed on the Declarations Page. These payments do not increase the amount of your coverage.
18. Loss by Animals
We cover loss to your house, other permanent structures, and contents caused by
domestic animals.
19. Arson Reward
We will pay up to $5,000 for information
leading to an arson conviction in connection

PCHO-CA (09/06)

with a fire loss to property covered by this
policy. The $5,000 limit is the most we will
pay, regardless of the number of persons
providing information. This coverage is additional insurance.
20. Ensuing Fungi or Bacteria
We will pay up to $10,000 in total for a loss
caused by fungi or bacteria resulting from a
covered loss, including:
a. The cost to remove, clean-up, remediate,
contain, treat, detoxify, neutralize, fungi
or bacteria;
b. The cost to tear out and replace any part
of the building or other covered property
as needed to gain access to the fungi or
bacteria;
c. The cost of testing or monitoring of air or
property to confirm the absence, presence or level of fungi or bacteria
whether performed prior to, during or
after removal, repair, restoration or replacement. The cost of such testing will
be provided only to the extent that there
is a reason to believe that there is the
presence of fungi or bacteria; and
d. Up to $5,000 for the reasonable increase
in living expenses incurred by you to
maintain your household's usual standard
of living if your residence is uninhabitable. Payment will continue for the shortest period of time necessary to restore
your residence to a habitable condition.
This is the most we will pay regardless of
the number of occurrences, the number of
locations insured, or the number of claimsmade. We will not make any additional payments for Ensuing Fungi or Bacteria under
any other Additional Coverage.
These payments do not increase the amount
of coverage.
21. Mine Subsidence
We cover direct loss to your house and
other permanent structures caused by lateral or vertical movement of a man-made underground mine or mine-related excavations.
22. Food Spoilage
We cover food spoilage due to a temperature change in a refrigerator or freezer
caused by an interruption of the power supply, originating either on or off-premises, or
due to the mechanical breakdown of refrigeration equipment at any residence you live
at or own. Wine or spirits are not considered
food. These payments do not increase your
amount of coverage. This coverage is subject to a $250 deductible.

Exhibit B Page7000159

ERTY. Additional Coverage. Ensuing Fungi or Bacteria; or

23. Loss Prevention Device
After a loss is covered by this policy, we will
pay for the reasonable costs you incur up to
$2,500 for the installation of an approved
loss prevention device to protect your
residence against the same loss in the future. Approved loss prevention devices ininclude fire alarms systems, fire suppression
systems, security systems, sump pumps,
automatic water shut-off devices, lightning
suppression systems, back-up power systems and hail resistant roofing materials.
These payments do not increase the amount
of coverage.
This additional coverage only applies if the
loss exceeds the location deductible.
D. Exclusions
The following exclusions apply to PART II PROPERTY section of your policy:

4. Loss by Rodents, Insects, Birds or Vermin
Rodents, insects, birds or vermin except loss
to glass that is part of a building, storm door
or window. However, we do insure ensuing
covered loss unless another exclusion applies.
5. Structural Movement
We do not cover any loss caused by settling, shrinking, bulging or expansion including resultant cracking, of pavements,
patios, foundations, walls, floors, roofs or
ceilings. However, we do insure ensuing
covered loss unless another exclusion applies.
6. Surface and Ground Water Damage

1. Pollution or Contamination
We do not cover any loss, directly or
indirectly, and regardless of any cause or
event contributing concurrently or in any
sequence to the loss, caused by the discharge, dispersal, seepage, migration or
release or escape of pollutants. Nor do we
cover the cost to extract pollutants from
land or water, or the cost to remove, restore
or replace polluted or contaminated land or
water. A "pollutant" means any solid, liquid,
gaseous or thermal irritant or contaminant,
including smoke, vapor, soot, fumes, acids,
alkalis, chemicals and "waste". A "contaminant" means an impurity resulting from the
mixture of or contact with a foreign substance. "Waste" includes materials to be disposed of, recycled, reconditioned or reclaimclaimed.
2. Gradual or Sudden Loss
We do not cover any loss caused by gradual
deterioration, wet or dry rot, warping, smog,
rust, or other corrosion. In addition, we do
not cover any loss caused by inherent vice,
wear and tear, mechanical breakdown or
latent defect. However, we do insure ensuing covered loss unless another exclusion
applies.
3. Fungi or Bacteria
We do not cover any loss caused by the
presence, growth, proliferation, spread or
any activity of fungi or bacteria, including
the cost to test for, monitor, clean up,
move, remediate, contain, treat, detoxify,
neutralize or in any way respond to, or assess the effects of fungi or bacteria.
This exclusion does not apply to:
a. Coverage provided under PART II - PROP-

PCHO-CA (09/06)

b. Ensuing covered loss unless another exclusion applies.

We do not cover any loss caused by:
a. Flood, surface water, waves, tidal water,
overflow of a body of water, or spray
from any of these, whether or not driven
by wind; or
b. Water below the surface of the ground,
including water which exerts pressure
on, or seeps or leaks through a building,
sidewalk, driveway, foundation, swimming pool or other structure.
This exclusion does not apply to:
a. Contents away from any residence or location you own or live at; or
b. Ensuing covered loss unless another exclusion applies.
7. Water or Ice Damage to Certain Other
Permanent Structures
We do not cover loss to certain other
permanent structures caused by freezing,
thawing, or the pressure or weight of water
or ice, whether driven by wind or not.
However, we do insure ensuing covered loss
unless another exclusion applies. The other
permanent structures to which this exclusion applies are swimming pools, fences,
patios, pavements, foundations, retaining
walls, wharves, docks, piers, bridges or
bulkheads.
8. Faulty, Inadequate or Defective Planning
We do not cover any loss caused by faulty,
inadequate or defective:
a. Planning, zoning, development, surveying, siting;
b. Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction.

Exhibit B Page8000160

c. Materials used in repair, construction,
renovation or remodeling; or
d. Maintenance;

15. Tenant Property

of part or all of any property whether on or
off the residence.
However, we do insure ensuing covered loss
unless another exclusion applies.
9. Earthquake
We do not cover any loss caused by
earthquake. However, we do insure ensuing
covered loss due to theft, fire, glass
breakage, explosion or water damage from a
ruptured sprinkler system within a structure
unless another exclusion applies.
10. Earth Movement
We do not cover any loss caused by earth
movement including volcanic eruptions,
landslides, mudflows, and the sinking, rising, or shifting of land. We do insure enensuing covered loss due to theft, fire, glass
breakage, explosion or water damage from a
ruptured sprinkler system within a structure
unless another exclusion applies.
11. Business Property
We do not cover any loss to business
property. This exclusion does not apply to
coverage provided under PART II - PROPERTY, Additional Coverage, Business Property.
12. Motorized Land Vehicles

We do not cover any loss to property of
roomers, boarders, or other tenants.
16. Temperature or Dampness
We do not cover any loss caused by
extremes of temperature or dampness,
dryness of atmosphere or water vapor to
your house, other permanent structures or
contents.
This exclusion does not apply to:
a. Loss caused directly by rain, sleet, snow
or hail; or
b. Coverage provided under PART II PROPERTY, Additional Coverage, Food
Spoilage.
17. Aircraft
We do not cover any loss to aircraft or aircraft parts.
18. Governmental Action
We do not cover any loss caused governmental action. Governmental action means
the destruction, confiscation or seizure by
any government or public authority. This exclusion does not apply to governmental
action at the time of a fire involving covered
property, to prevent its spread.
19. Acts of War

We do not cover any loss to motorized land
vehicles including their equipment and
accessories or any electronic devices designed to be operated solely by power from
the electrical system of that vehicle. However, we do cover vehicles not subject to
motor vehicle registration which are:
a. Used to service any residence you own
or live at;
b. Designed to assist the handicapped; or
c. Designed for recreational use off public
roads.
13. Reparation and Restoration
We do not cover any loss to contents
caused by or resulting from reparation or
restoration. This exclusion does not apply to
jewelry, watches, and furs.
14. Watercraft Accidents
We do not cover any loss caused by the
stranding, swamping or sinking of a watercraft or its trailer, or outboard motor. We also do not cover any loss caused by collision
of a watercraft other than collision with a

PCHO-CA (09/06)

land vehicle unless another exclusion applies.

We do not cover any direct loss or ensuing
loss to property caused by any kind of
warlike action. War includes undeclared war,
civil war, insurrection, rebellion, revolution,
warlike act by a military force or military
personnel, destruction or seizure or use for a
military purpose, and including any consequence of any of these. Discharge of a nuclear weapon shall be deemed a warlike act
even if accidental.
20. Loss to Fish, Birds or Animals
We do not cover any loss to fish, birds or
animals.
21. Intentional Acts
We do not cover any loss caused by any
act, whose consequences could have been
foreseen by a reasonable person, committed:
a. By or at the direction of you, your spouse
or a family member; and
b. With the intent to cause loss or damage.

Exhibit B Page9000161

22. Dishonest Acts
We do not cover any loss caused by any
dishonest or criminal act by, or at the
direction of, you or any family member.
23. Nuclear Hazard
We do not cover any loss caused directly or
indirectly by "nuclear hazard". Nuclear hazard means any nuclear reaction, radiation, or
radioactive contamination, all whether controlled or uncontrolled or however caused,
or any consequence of any of these. However, ensuing covered loss due to fire resulting from a nuclear hazard is covered
unless another exclusion applies.
24. Back Up of Sewers or Drains

C. Defense Coverage and Claim Expense
We will pay the costs to defend an insured person against any suit seeking covered damages
for personal injury or property damage, even if
the suit is false, fraudulent or groundless. You
may choose counsel from a panel of firms selected by us. If a panel counsel is not established in the jurisdiction where the suit is
brought, we reserve the right to select counsel.
We may investigate and settle any claim or suit
at our discretion.
Additionally, we will pay:

We do not cover any loss due to a back up
or overflow of a sewer or drain including any
loss that contributes to any event. This exclusion does not apply to coverage provided
under PART II - PROPERY, Additional
Coverage, Back Up of Sewers and Drains.
25. Contents Under Another Policy
We do not cover any loss to contents that
are insured under a private collections
policy, valuable articles or similar policy not
issued by us or one of our affiliated companies.
26. Uninsured Owned Location
We do not cover any loss caused directly or
indirectly by wind to contents located at an
owned house, condominium, or cooperative
that does not have contents coverage listed
on the Declarations Page of this policy or
any other policy issued by us or one of our
affiliated companies.
Contents at a newly acquired location are
not subject to this exclusion for sixty (60)
days after you begin to move contents
there.
PART III - LIABILITY
A. Insuring Agreement
We will pay damages an insured person is
legally obligated to pay for personal injury or
property damage caused by an occurrence
covered by this policy anywhere in the world,
unless stated otherwise or an exclusion applies.
B. Payment of a Loss
The most we will pay for all claims for personal
injury and property damage as a result of any
one occurrence is the Liability coverage limit
shown on the Declarations Page of this policy.
This insurance applies separately to each
insured person against whom a claim is made
or suit is brought, but we will not pay more
than the limit shown on the Declarations Page
for any single occurrence regardless of the
number of insured persons, claims made or
PCHO-CA (09/06)

persons injured. There is no restriction to the
number of occurrences during the Policy Period
for which claims may be made.

1. All court costs and expenses on judgments
assessed against any insured person ;
2. Reasonable expenses incurred by an insured
person at our request up to a total of
$10,000 for assisting us in the investigation
or defense of a claim or suit;
3. The cost of bail bonds required of an insured person because of a covered loss;
4. All premiums on bonds required in a suit we
defend, but not for bond amounts more than
the coverage amount (we need not apply for
or furnish any bond);
5. All expenses incurred by us;
6. Interest on the entire judgment which
accrues after entry of the judgment and
before we pay or tender, or deposit in court,
that part of the judgment which does not
exceed the amount of coverage; and
7. All prejudgment interest awarded against an
insured person on that part of the judgment
we pay or offer to pay. We will not pay any
prejudgment interest based on that period of
time after we make an offer to pay the
amount of coverage.
In jurisdictions where we are prevented from
defending an insured person for a covered loss
because of laws or other reasons, we will pay
any expenses incurred with our prior written
consent for the insured person's defense.
Our duty to defend any claim or suit arising out
of a single occurrence ends when the amount
we have paid in damages for that occurrence
equals the Liability coverage limit shown on the
Declarations Page of this policy.
Payments under this provision C., Defense Coverage and Claim Expense, except a settlement
payment, are in addition to the Liability coverage limit shown on the Declarations Page.
D. Additional Coverages
1. Damaged Property

Exhibit B Page10
000162

If an insured person destroys or damages
other people's property we will pay the replacement cost for that property up to
$10,000 per occurrence.
2. Credit Cards, Forgery, and Counterfeiting
We will pay up to a total of $10,000 for:
a. Any amount an insured person is legally
obligated to pay resulting from:
i. Theft or loss of a bankcard or credit
card issued in the name of you or a
family member; or
ii. Loss caused by forgery or alteration
of any check or negotiable instrument.
A loss will not be covered unless all the
terms for using the card, check or negotiable instrument, are complied with.
b. Loss caused by accepting in good faith
any counterfeit paper currency.
At our option we may defend a claim or suit
against you or a family member for forgery
or counterfeiting. We will defend a claim or
suit against you or a family member for loss
or theft of a bankcard or credit card.
3. Medical Payments to Others
Regardless of liability, we will pay the
necessary medical expenses that are incurred or medically ascertained within three
(3) years from the date of an accident
causing bodily injury up to a total of
$10,000 for each person. This coverage
does not apply to you or a family member
and only applies to an accident that:
a. Occurs to a person, at a residence with
liability
coverage
listed
on
the
Declarations Page, with permission from
you or a family member to be there;
b. Arises from a condition at a residence, or
at the steps, driveways or sidewalks
immediately adjoining a residence, listed
on the Declarations Page with liability
coverage.
c. Is caused by an animal owned by or in
the care of an insured person; or
d. Is caused by an insured person or a residence employee in the course of his or
her employment by an insured person.
4. Limited Residence Premises Business Liability
We cover personal injury or property damage arising out of the physical condition of a
residence shown on the Declarations Page
when business or professional activities are
legally conducted by any insured person at
that residence. The most we will pay for any
covered loss is the Liability coverage limit
shown on the Declarations Page. Coverage

PCHO-CA (09/06)

is subject to the following:
a. You do not have any employees conducting business activities at your residence
who are subject to workers' compensation or other similar disability laws;
b. You are not a home day care provider;
and
c. There is no other valid collectible insurance.
5. Workers Compensation - Residence Employees
Coverage I
We agree, with respect to residence employees, to pay when due all benefits required of an insured person by the California Workers' Compensation Law; and
Coverage II
To pay on behalf of an insured person all
damages for which the insured person is
legally liable because of bodily injury sustained by a residence employee. The bodily
injury must be caused by accident or disease and arise out of and in the course of
employment by the insured person while:
a. In the United States of America, its
territories or possessions, or Canada ; or
b. Temporarily elsewhere if the residence
employee is a citizen or resident of the
United States o r Canada.
This coverage does not apply to any suit
brought in or judgment rendered by any
court outside the United States of America,
its territories and possessions, or Canada or
to any action on such judgment.
Who is Covered
A residence employee is covered if during
the ninety (90) calendar days immediately
before the date of injury the employee has:
a. Actually been engaged in such employment by the insured person for no less
than fifty-two (52) hours; and
b. Earned no less than one hundred dollars
($100) in wages.
Application of Coverage
This insurance applies only to bodily injury
occurring during the Policy Period. If the
bodily injury is a disease, it must be caused
or aggravated by the conditions of the
residence employee's employment by the
insured person .
Additional Provisions Applicable to Coverage
I
a. We shall be directly and primarily liable to
any residence employee of an insured

Exhibit B Page11
000163

person entitled to the benefits of the
California Workers' Compensation Law.
b. As between the residence employee and
us, notice to or knowledge of the occurrence of the injury on the part of an insured person will be deemed notice or
knowledge on our part.
c. The jurisdiction of an insured person
will, for the purpose of the law imposing
liability for compensation, be our jurisdiction.
d. We will be subject to the orders, findings, decisions or awards rendered
against an insured person, under the provisions of the law imposing liability for
compensation, subject to the provisions,
conditions and limitations of this policy.
This policy shall govern as between an
insured person and us as to payments
by either in discharge of an insured person's liability for compensation.
e. The residence employee has a first lien
upon any amount which we owe you on
account of this insurance. In case of your
legal incapacity or inability to receive the
money and pay it to the residence employee, we will pay it directly to the
residence employee. Your obligation to
the residence employee will be discharged to the extent of such payment.
Limits of Liability - Coverage II
Our total limit of liability will not exceed
$100,000 for all damages because of bodily
injury:
a. Sustained by one or more residence
employees in any one accident; or
b. Caused by disease and sustained by a
residence employee.

This policy does not apply:
a. To liability for additional compensation
imposed on an insured person under Sections 4553 and 4557, Division IV, Labor
Code of the State of California, because
of the serious and willful misconduct of
an insured person, or because of bodily
injury to an employee under sixteen (16)
years of age and illegally employed at the
time of injury;
b. To liability for bodily injury arising out of
business pursuits of an insured person;
or
c. Under Coverage II:
1. To liability assumed by the insured
person under any contract or agreement;
2. To bodily injury by disease unless a
written claim is made or suit brought
against the insured person within
thirty-six (36) months after the end of
the Policy Period; or
3. To any obligation under a workers'
compensation, unemployment or disability benefits law or any similar law.
E. Exclusions
This policy does not provide coverage for
liability, defense costs or any other cost or expense for:
1. Motorized Land Vehicles
Personal injury or property damage arising
out of the ownership, maintenance, use,
loading or unloading of any motorized land
vehicle. This exclusion does not apply to
recreational motor vehicles except when
they are used for participation in or practice
for competitive racing.

Our total limit of liability will not exceed
$500,000 for all damages arising out of
bodily injury by disease regardless of the
number of residence employees who sustain bodily injury by disease.

2. Aircraft

Other Insurance

3. Watercraft

Personal injury or property damage arising
out of the ownership, maintenance, use,
loading, unloading, or towing of any aircraft.

This insurance does not apply to any loss to
which other valid and collectible Workers'
Compensation or Employers' Liability Insurance applies.

Personal injury or property damage arising
out of the ownership, maintenance, use,
operation, loading or unloading of any watercraft:

Conformity to Statute

a. That is twenty-six (26) feet or more in
length or fifty (50) or more horsepower
and which is owned by an insured person
or furnished or rented to an insured
person for longer than thirty (30) days;

Terms of this insurance which are in conflict
with the California Workers' Compensation
Law are amended to conform to that law.
Exclusions

PCHO-CA (09/06)

b. Used for any business or commercial purpose; or

Exhibit B Page12
000164

c. Used for participation in or practice for
competitive racing (except sailboats less
than twenty-six (26) feet in length).
4. Workers' Compensation or Disability
Any damages or benefits an insured person
is legally obligated to provide under any
workers' compensation, disability benefits,
Jones Act or General Maritime Law, unemployment compensation, occupational disease or similar law except to the extent as
may be provided under Additional Coverages, Workers' Compensation - Residence
Employees.
5. Directors Errors or Omissions
Personal injury or property damage arising
out of any insured person's acts, errors or
omissions as an officer or member of the
board of directors of any corporation or
organization. This exclusion does not apply
to an insured person's actions for a nonprofit corporation or organization or for a
Condominium or Cooperative Association
unless another exclusion applies.
6. Care, Custody or Control
Property Damage to property owned by,
rented to, occupied or used by, or in the
care, custody or control of an insured
person to the extent that the insured person
is required by contract to provide insurance.
This exclusion does not apply to property
damage caused by fire, smoke, or explosion.
7. Insured Person
Personal injury to an insured person under
this policy.
8. Discrimination
Personal injury arising out of actual, alleged
or threatened discrimination or harassment
due to age, race, national origin, color, sex,
creed, handicapped status, sexual preference or any other discrimination.
9. Sexual Molestation or Corporal Punishment
Personal injury arising out of any actual, alleged or threatened by any person:
a. Sexual molestation, misconduct or harassment;
b. Corporal punishment; or
c. Sexual, physical or mental abuse.
10. Transmitted Diseases

from

that

11. Business Pursuits
Personal injury or property damage arising
out of an insured person's business property or business pursuits, investment activity or any activity intended to realize a profit
for either an insured person or others. However, this exclusion does not apply to:
a. Volunteer work for an organized charitable, religious or community group;
b. Incidental business activity; or
c. Limited Residence Premises Business Liability Coverage.
12. Professional Services
Personal injury or property damage arising
out of an insured person's performing or
failure to perform professional services for
which any insured person is legally respons ible or licensed.
13. War
Bodily injury or property damage caused
directly or indirectly by war, including the
following and any consequence of the following:
a. Undeclared war, civil war, insurrection,
rebellion, or revolution;
b. Warlike acts by a military force or military
personnel; or
c. The destruction, seizure or use of property for a military purpose.
Discharge of a nuclear weapon will be
deemed a warlike act even if accidental.
14. Assessments
Any assessment charged against an insured
person as a member of an association,
corporation or community of property owners.
15. Contractual
Personal injury or property damage arising
from contracts or agreements, whether
written or unwritten:
a. Made in connection with any insured
person's business ; or
b. In which the liability of others is assumed
after a covered loss.
16. Nuclear Hazard

Personal injury resulting directly or indirectly
from any illness, sickness or disease transmitted intentionally or unintentionally by an
insured person to anyone. We do not cover
any damages for any threat of exposure or

PCHO-CA (09/06)

any consequences resulting
illness, sickness, or disease.

Personal injury or property damage caused
directly or indirectly by nuclear reaction,
radiation, or radioactive contamination.
17. Intentional Acts

Exhibit B Page13
000165

Personal injury or property damage resulting
from any criminal, willful, intentional or
malicious act or omission by any person. We
also will not cover claims for acts or omissions
of any person which are intended to result in,
or would be expected by a reasonable person to
cause, property damage or personal injury.
This exclusion applies even if the injury or
damage is of a different kind or degree, or is
sustained by a different person, than expected
or intended. This exclusion does not apply to
bodily injury if the insured person acted with
reasonable force to protect any person or
property.
18. Wrongful Termination
Personal injury arising out of wrongful termination of employment.
19. Controlled Substance(s)
Personal injury or property damage arising
out of the use, sale, manufacture, delivery
or transfer or possession of a Controlled
Substance(s) as defined by the Federal Food
and Drug Law at 21 U.S.C.A. Sections 811
and 812. This exclusion does not apply to
the legitimate use of prescription drugs of a
person following the orders of a licensed
physician.
PART IV - CONDITIONS
A. Your Duties
1. Your duty is to notify your agent or broker
of a change in occupancy.
2. Your duty is to notify your agent or broker
at the beginning of any renovation or construction work and throughout the work to
maintain an appropriate amount of coverage
and confirm that appropriate protective safeguards are in place as determined by us.

b. Keep an accurate record of all repair expenses.
5. Provide us with bills, receipts and related
documents.
6. As often as we reasonably require:
a. Show the damaged property;
b. Provide us with records and documents
we request; and
c. Submit to separate examination under
oath.
7. Send to us within sixty (60) days of our request, your signed sworn proof of loss
which sets forth, to the best of your knowledge:
a. The time and cause of loss;
b. The interest of all others in the property;
c. Other insurance which may cover the
loss; and
d. The dollar amount being claimed as your
loss.
8. Provide us with the names and addresses of
any known persons injured and any available
witnesses.
9. Provide us with any suit papers and other
documents which will help us defend any
insured person.
10. Assist and cooperate with us in the conduct
of the defense by helping us:
a. To make settlement;
b. To enforce any right of contribution or
indemnity against any person or organization who may be liable to an insured
person;
c. To attend hearings and trials; and

B. Your Duties After a Loss
In the event of an occurrence which is likely to
involve this policy, or if you or any other insured person under this policy is sued in connection with an occurrence which may be covered under this policy, you or an insured person
must:
1. Give prompt notice to us or your agent or
broker.
2. Notify the police in case of loss by theft.
3. Notify the credit card or fund transfer card
company in case of loss under credit card or
fund transfer card coverage.
4. Protect the property from further damage. If
repairs to the property are required, you
must:
a. Make reasonable and necessary repairs to

PCHO-CA (09/06)

protect the property; and

d. To secure and give evidence and obtain
the attendance of witnesses.
C. Policy Period and Territory
The Policy Period is stated on the Declarations
Page. This policy applies to an occurrence
which takes place anywhere in the world unless
otherwise limited by the policy.
D. Recovery
If the insured person has rights to recover all or
part of any payment we have made under this
policy, those rights are transferred to us. The
insured person must do nothing after loss to
impair such rights of recovery. At our request,
the insured person will bring suit or transfer
those rights to us and help us enforce them.
E. Assignment

Exhibit B Page14
000166

No one covered under this policy may assign or
turn over any right or interest in regard to the
policy without our written consent.
F. Changes
This policy may only be changed by written
endorsement issued by us.
G. Concealment or Fraud
The entire policy will be void if, whether before
or after a loss, you or an insured person have:
1. Intentionally concealed or misrepresented
any material fact or circumstance;
2. Engaged in fraudulent conduct; or
3. Made false statements; relating to this insurance.
H. Reasonable Care
You must use reasonable care to maintain heat
in your residence or shut off and drain the
water system or appliances if the home is
vacant, unoccupied or being constructed. We
do not cover any loss caused by water freezing
in a plumbing, heating, or air conditioning system or household appliance if reasonable care
has not been exercised.
I. Conformity to Statutes

M. Appraisals
If you and we fail to agree on the amount of
loss, either party may make a written demand
that each selects an independent appraiser. In
this event, the parties must notify each other of
their selection within twenty (20) days. The
independent appraisers will select an arbitrator
within fifteen (15) days. If an arbitrator is not
agreed upon within that time, either party may
request the arbitrator be selected by a judge.
The independent appraisers will then appraise
the loss and submit any differences to the
arbitrator. A decision in writing agreed to by the
two appraisers or either appraiser and the
arbitrator will be binding. Each appraiser will be
paid by the party that has selected the appraiser. You and we will share the expenses of
the arbitrator equally.
N. Other Insurance
If a loss covered by this policy is also covered
by other insurance, we will pay only the
proportion of the loss that the limit of liability
that applies under this policy bears to the total
amount of insurance covering the loss.
O. Cancellation

Any provision of this policy, which is in conflict
with state or local law, is amended to conform
to the law.
J. Liberalization
If we broaden the coverages provided by your
policy without an additional premium charge,
the changes will automatically apply to your
policy as of the effective date on which the
changes are adopted in your state.
K. Bankruptcy or Death
The insured person's bankruptcy or insolvency
shall not relieve us of any of our obligations.
Further, if the insured person dies or becomes
bankrupt or insolvent during the Policy Period,
this policy, unless cancelled, will cover the insured person's legal representative for the remainder of the Policy Period.
L. Legal Action Against Us
No action shall be brought against us unless the
insured person has complied with this policy's
provisions and for Liability coverage, not until
final judgment or agreement has set the amount
of the insured person's legal obligation with us.
You also agree to bring any action against us
within one year after a loss occurs, but not until
thirty (30) days after proof of loss has been
filed and the amount of loss has been determined.

PCHO-CA (09/06)

For Liability coverage, no one has the right to
join us in any action against any insured person.

You may cancel this policy or any part of it at
any time by notifying us in writing of the future
date that the cancellation is to take effect .
To cancel this policy we must notify you in
writing. This notice will be mailed to you at the
last mailing address shown on the Declarations
Page and we will obtain an U.S. Post Office
certificate of mailing. This notice will include
the date the cancellation is to take effect and
the reason for the cancellation. It shall also
state that any excess premium, if not returned,
shall be refunded on demand. In the event of
cancellation by you or by us, we will refund any
unearned premium on the effective date of
cancellation, or as soon as possible afterwards.
The unearned premium will be computed pro
rata for the unexpired term of the policy.
When you have not paid the premium, we may
cancel at any time by letting you know at least
(10) days before the date cancellation takes
effect.
When this policy has been in effect for less
than sixty (60) days and is not a renewal with
us, we may cancel for any reason, except as
provided below, by letting you know at least
ten (10) days before the date cancellation takes
effect. We may not cancel this policy solely
because:
1. You accepted an offer of earthquake coverage; or

Exhibit B Page15
000167

2. You cancelled or did not renew an
earthquake policy issued by the California
Earthquake Authority (CEA) that included an
earthquake policy premium surcharge.
However, we may cancel this policy if you
have accepted a new or renewal policy
issued by the CEA that included an
earthquake policy premium surcharge, but
you failed to pay the earthquake policy
premium surcharge authorized by the CEA.
When this policy has been in effect for sixty
(60) days or more, or at any time if it is a
renewal with us, we may cancel if there has
been:
1. Conviction of a crime having as one of its
necessary elements an act increasing the
hazard insured against;
2. Discovery of fraud or material misrepresentation by:
a. Any insured person or his or her representative in obtaining this insurance; or
b. You or your representative in pursuing a
claim under this policy; or
3. Discovery of grossly negligent acts or
omissions substantially increasing any of the
hazards insured against; or
4. Discovery of a material increase in, or a
change to, the covered property that increases the hazard insured against; or
5. Acceptance of a new or renewal policy,
issued by the CEA that included an
earthquake policy premium surcharge, but
you failed to pay the earthquake policy premium surcharge authorized by the CEA.
This can be done by notifying you at least thirty
(30) days before the date cancellation takes
effect.
When this policy is written for a period longer
than one (1) year, we may cancel for any
reason at anniversary by notifying you at least
forty-five (45) days before the date cancellation
takes effect.
If, when we cancel this policy, the return
premium is not refunded with the notice of
cancellation, we will refund it within twenty-five
(25) days after the date cancellation takes

PCHO-CA (09/06)

effect. If, when you cancel this policy, the return premium is not refunded when this policy
is returned to us, we will refund it within a
reasonable time after the date cancellation takes
effect.
P. Nonrenewal
We may elect not to renew this policy, subject
to the provisions below. We may do so by
delivering to you at your mailing address shown
on the Declarations Page, written notice at least
forty-five (45) days before the expiration date
of this policy.
Proof of mailing will be sufficient proof of notice.
We will not refuse to renew this policy:
1. Solely because you accepted an offer of
earthquake coverage;
2. Solely because you cancelled or did not
renew an earthquake policy, issued by the
California Earthquake Authority, that included an earthquake policy premium surcharge;
3. Solely on the grounds that a claim is
pending under the policy unless such claim
is made under coverage for loss caused by
an earthquake; or
4. Solely on the basis of an insured person's
age.
If this policy is written for a period of less than
one (1) year, we agree not to refuse to renew
except at the end of an annual period commencing with the original or renewal effective
date.
Q. Renewal Clause
We or our agent may offer to continue this
policy for a renewal period, at the current or
revised premium, under the policy provisions in
effect at the expiration date of this policy.
We can do this by mailing you a bill for the
premium to the address shown on the Declarations Page, along with any changes in the
policy provisions or amounts of coverage.
You may accept our offer by paying the required premium on or prior to the effective date
of each renewal period.

Exhibit B Page16
000168

In witness whereof, we have caused this policy to be executed and attested, and if required by state law
this policy shall not be valid unless countersigned by our authorized representative.

AIG Property Casualty Company

President

Secretary

Includes copyrighted material from Insurance Services Office, Inc. with its permission.

PCHO-CA (09/06)

Exhibit B Page17
000169

CALIFORNIA RESIDENTIAL PROPERTY INSURANCE BILL OF RIGHTS
A consumer is entitled to receive information regarding homeowner's insurance. The following is a
limited overview of information that your insurance company can provide:

.
.
.
.
.
.
.
.

The insurance company's customer service telephone number for underwriting, rating, and
claims inquiries.
A written explanation for any cancellation or nonrenewal of your policy.
A copy of the insurance policy.
An explanation of how your policy limits were established.
In the event of a claim, an itemized, written scope of loss report prepared by the insurer or
its adjuster within a reasonable time period.
In the event of a claim, a copy of the Unfair Practices Act and, if requested, a copy of the
Fair Claims Settlement Practices Regulations.
In the event of a claim, notification of a consumer's rights with respect to the appraisal
process for resolving claims disputes.
An offer of coverage and premium quote for earthquake coverage, if eligible.

A consumer is also entitled to select a licensed contractor or vendor to repair, replace, or rebuild
damaged property covered by the insurance policy.
The information provided herein is not all inclusive and does not negate or preempt existing
California law. If you have any concerns or questions, contact your agent, broker, insurance
company, or the California Department of Insurance consumer information line at (800) 927-HELP
(4357) or at www.insurance.ca.gov for free insurance assistance.

PCHO-BOR-CA (07/11)

Exhibit B Page 000170

Chartis U.S.
Privacy and Data Security Notice
About This Notice
This Privacy and Data Security Notice applies only to your Personal Information (see definition
below) obtained by one of the Chartis U.S. Companies or their affiliates listed at the end of this
notice, in connection with the products or services one of those companies provided primarily for
your personal, family, or household purposes in connection with which you are receiving this notice.
Chartis U.S. has established practices, procedures and system protections that are designed to help
protect the privacy and security of Personal Information that we collect in the course of conducting
our business. This notice outlines how we collect, handle, and disclose Personal Information about
you.
The term "Personal Information," as used in this Privacy and Data Security Notice, means
information that identifies you personally. Examples of Personal Information include a first and last
name, a home or other physical address, an email address, a financial account or credit card
number, a driver's license number, or information on your physical condition or health status.
I.

Information Privacy

We may collect Personal Information from applications, enrollment forms, in claims processing, or in
your other interactions with us and with our Affiliates. We may also collect Personal Information
from credit reporting agencies and other third parties in connection with the sale of our products to
you.
We will collect Personal Information only in accordance with applicable laws or regulations, whether
we collect it in response to your request for a product or service from us or otherwise.
Information Sharing
We may share your Personal Information with Affiliates and Non-Affiliates as described below.
With our Affiliates: Our Affiliates may include other insurance companies, insurance holding
companies, insurance agents and agencies, claims administrators, marketing companies,
e-commerce service providers, and companies providing administrative services.
We may share your Personal Information, including Personal Information of a health nature, with our
Affiliates that assist us in servicing your insurance policies. Examples are administration (billing and
collections), risk management, underwriting, and claims handling. We may also share your Personal
Information with our Affiliates for the purpose of detecting and preventing fraud, as directed or
authorized by you, or as otherwise permitted or required by law.
With Non-Affiliates:
We may share your Personal Information, including Personal Information of a health nature, with
Non-Affiliates that assist us in servicing your insurance policies. Examples are administration (billing
and collections), risk management, underwriting, and claims handling. We may also share your
Personal Information with Non-Affiliates for the purpose of detecting and preventing fraud, as
directed or authorized by you, or as otherwise permitted or required by law.
We may also enter into joint marketing agreements with Non-Affiliates to share your non-health
Personal Information as permitted by law. These Non-Affiliates may include providers of financial
products or services such as insurance companies, financial institutions, and securities firms.
Because we do not share Personal Information with either Affiliates or Non-Affiliates in any other
way, there is no need for an opt-out process in our privacy procedures.
78052 (01/11)

Exhibit B Page 000171

For California and Vermont Residents: If it becomes necessary to share your Personal Information
with Non-Affiliates other than as specifically allowed by law, we will not do so without first
obtaining your permission.
II. Data Security
To help prevent unwarranted disclosure of your Personal Information and secure it from theft, we
utilize secure computer networks. Access is restricted to those persons who have a business need
to use your Personal Information to provide products or services to you. We also maintain physical,
electronic, and procedural safeguards designed to protect your Personal Information in compliance
with federal and state privacy and information security laws. Non-Affiliates that assist us in
servicing insurance policies or who enter into joint marketing agreements with us are required to
take measures to maintain the security of your Personal Information in compliance with federal and
state privacy and information security laws.
III. Maintaining Personal Information
We also maintain procedures to ensure that the Personal Information we collect is accurate,
up-to-date, and as complete as possible. If you believe the information we have about you in our
records or files is incomplete or inaccurate, you may request that we make additions or corrections,
or if it is feasible, that we delete this information from our files. You may make this request in
writing to (include your name, address and policy number):
Chief Privacy Officer
Chartis U.S.
175 Water Street, 17th Floor
New York, NY 10038
Fax: [phone]
E-Mail: [e-mail]

Special Notice: You can obtain access to any non-public Personal Information we have about you if
you properly identify yourself and submit a written request to the address above describing the
information you want to review. We will also tell you the identity, if recorded, of persons to whom
we have disclosed your non-public Personal Information within the preceding two years.
You may request that we correct, amend or delete information about you. If we do so, we will
notify organizations that provided us with that information and, at your request, persons who
received that information from us within the preceding two years. If we cannot grant your request
to correct, amend or delete the information, you may give us a written statement of the reasons you
disagree, which we will place in your file and give to the same parties who would have been
notified of the requested change.
Our Customers Can Depend on Us
We are committed to maintaining our trusted relationship with our Customers. We consider it our
privilege to serve our Customers' insurance and financial needs and we value the trust they have
placed in us. Our Customers' privacy is a top priority. We will continue to monitor our practices in
order to protect that privacy and will comply with state privacy laws that require more restrictive
practices than those set out in this notice.
Important Information Concerning the Applicability and Future Changes to this Privacy and Data
Security Notice
We may change this Privacy and Data Security Notice from time to time, and if particular changes
are required by law to be communicated to you, we will do so.
You may have received this notice in connection with products or services provided to you by one
of the following Companies: American Home Assurance Company; AIG Assurance Company; AIG
Property Casualty Company; Chartis Select Insurance Company; AIG Specialty Insurance Company;
Commerce and Industry Insurance Company; Granite State Insurance Company; Illinois National
Insurance Co.; Landmark Insurance Company; Lexington Insurance Company; National Union Fire
Insurance Company of Pittsburgh, Pa.; National Union Fire Insurance Company of Vermont; New
Hampshire Insurance Company; The Insurance Company of the State of Pennsylvania; other Chartis
U.S. companies, and American International Life Assurance Company of New York and American
General Life Insurance Company of Delaware.
78052 (01/11)

Exhibit B Page 000172

CONSUMER AFFAIRS UNIT NOTIFICATION - CALIFORNIA

IT IS REQUIRED BY THE CALIFORNIA INSURANCE CODE SECTION 510 THAT WE NOTIFY YOU OF
THE FOLLOWING:
IF YOU HAVE A COMPLAINT AGAINST YOUR INSURANCE AGENT OR THE INSURANCE COMPANY WE ASK THAT YOU TRY TO WORK THE PROBLEM OUT WITH THE ABOVE PARTIES; HOWEVER, SHOULD YOU BE UNABLE TO DO SO PLEASE CONTACT:

CALIFORNIA DEPARTMENT OF INSURANCE
CONSUMER SERVICES DIVISION
300 SOUTH SPRING STREET
LOS ANGELES, CA 90013
1-800-927-HELP (4357)

PCG-CAU-CA (01/10)

Includes copyrighted materials of Insurance Services Office,
Exhibit B Page 000173
Inc. with its permission.

Page 1 of 1

EQUIPMENT BREAKDOWN COVERAGE

With respect to coverage provided by this endorsement, all provisions and conditions of the policy
apply unless they are changed by this endorsement.
As respects the following location:

The following additional coverage is added to the AIG Private Client Group Homeowners policy.
AGREEMENT
We will provide the insurance described in this endorsement in compliance with all applicable
provisions of this policy. The most we will pay for loss, damage or expense under this endorsement
arising from any one accident is $250,000 Coverage provided under this endorsement does not
increase any limit of liability under Part II, PROPERTY.
DEFINITIONS
The following definitions are added:
1.
Accident means sudden and accidental:
a
mechanical or electrical breakdown; or
b.
tearing apart, cracking, burning or bulging of a steam or hot water heating system,
or an air conditioning system;
that results in direct physical damage to covered equipment.
2.

Covered equipment
a.
Covered equipment means property, other than contents, covered under Part II -PROPERTY:
(1)
that generates, transmits or utilizes energy; or
(2)
which, during normal usage, operates under vacuum or pressure, other than
the weight of its contents.
b.
None of the following is covered equipment:
(1)
supporting structure, cabinet or compartment;
(2)
insulating material;
(3)
sewer piping, buried vessels or piping, or piping forming a part of a fire
protective sprinkler system;
(4)
water piping other than boiler feedwater piping, boiler condensate return
piping or water piping forming a part of a refrigerating or air conditioning
system;
(5)
kitchen or laundry appliances, other than those permanently installed,
including but not limited to, refrigerator, dishwasher, oven, stove, clothes
washer or clothes dryer; or
(6)
electronic entertainment or computer equipment, including but not limited to:
(a)
television equipment inclusive of plasma television equipment;
(b)
stereo equipment; or
(c)
any electronic component used with such electronic entertainment or
computer equipment.
Covered equipment does, however, include permanently installed wiring
associated with such electronic entertainment or computer equipment.

PCHO-EB (09/06)
Page 1 of 3
Exhibit B Page 000174
Includes copyrighted material of Insurance Services Office, Inc., with its permission.

3.

One accident means: If an initial accident causes other accidents, all will be considered one
accident. All accidents that are the result of the same event will be considered one accident.

PROPERTY COVERAGES
1.

We will pay for direct physical damage to covered equipment that is the result of an
accident .

2.

Additional Living Expense
Coverage for Additional Living Expense, as provided under C. Additional Coverages, is
extended to the coverage provided by this endorsement. We will pay up to
$20,000
per accident under this coverage. We will not pay for any expense incurred by
you beyond 30 days after the accident even if it takes more than 30 days to restore your
residence to a habitable condition or for your household to permanently locate elsewhere.

EXCLUSIONS
The following exclusions are added:
1.
We will not pay under this endorsement for loss, damage or expense caused by or resulting
from electrical power surge or brownout.
2.

We do not cover under this endorsement any property that is not covered equipment.

DEDUCTIBLE
The following deductible provision replaces any other deductible provision in the policy or on the
Declarations Page with respect to loss covered under this endorsement.
In case of a loss under this endorsement, we will pay only for that part of the loss over
. No other deductible applies to this coverage.
$2,500
This deductible applies to the affected equipment regardless of any other deductible in this policy or
any other policy. Your homeowner deductible will apply to any ensuing loss, but will be reduced by
this deductible amount.
CONDITIONS
The following conditions are added:
1.
Environmental, Safety and Efficiency Improvements
If covered equipment requires replacement due to an accident, we will pay your additional
cost to replace with equipment that is better for the environment, safer or more efficient
than the equipment being replaced.
However, we will not pay more than 125% of what the cost would have been to replace
with like kind and quality. This condition does not increase any of the applicable limits.
2.

Payment of a Loss
Losses under this endorsement will be settled as follows:
a.
Our payment for damaged covered equipment will be the smallest of:
(1)
The coverage limit shown for Equipment Breakdown;
(2)
The cost to repair the damaged covered equipment;
(3)
The cost to replace the damaged covered equipment on the same premises;
or
(4)
The necessary amount actually spent to repair or replace the damaged
covered equipment.

PCHO-EB (09/06)
Page 2 of 3
Exhibit B Page 000175
Includes copyrighted material of Insurance Services Office, Inc., with its permission.

b.
c.

Except as described in Environmental, Safety and Efficiency Improvements above,
you are responsible for the extra cost of replacing damaged covered equipment with
property of a better kind or quality or of a different size or capacity.
If you do not repair or replace the damaged covered equipment within 24 months,
after the date of the accident, then we will pay only the smaller of the:
(1)
Cost it would have taken to repair at the time of the accident; or
(2)
Actual cash value at the time of the accident.

PCHO-EB (09/06)
Page 3 of 3
Exhibit B Page 000176
Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Flood Coverage
With respect to coverage provided by this endorsement, all provisions and conditions of the policy
apply unless they are changed by this endorsement.
As respects the following location:

Flood Zone Assignment:
X

Flood zone B, C, or X
Flood zone A or V
Flood zone D

As respects Flood coverage provided by this endorsement, PART I - DEFINITIONS is amended to
include the following:
Flood means:
1. A general and temporary condition of partial or complete inundation of normally dry land
area from:
a. Overflow of inland or tidal waters;
b. Unusual and rapid accumulation or runoff of surface waters from any source; or
c. Mudflow.
2. Collapse or subsidence of land along the shore of a lake or similar body of water as a result
of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined in 1.a. above.
All flooding in a continuous or protracted event will constitute a single

flood.

Landslide means the rapid movement of a mass of soil downslope along a curved or planar failure
surface, without deformation of the soil structure.
Mudflow means a river of liquid and flowing mud occurring on level or near-level surfaces of normally dry land areas that have not been affected by landslide, as when earth is carried by a current
of water. Other earth movements, such as landslide, slope failure, or a saturated soil mass moving
by liquidity down a slope, are not mudflows.
National Flood Insurance Program (NFIP) means the program of flood insurance coverage and floodplain management administered under the Act and applicable Federal regulations in Title 44 of the
Code of Federal Regulations, Subchapter B.
Special Flood Hazard Area (SFHA) means an area having special flood, or mudflow, and/or floodrelated erosion hazards, and shown on a Flood Hazard Boundary Map or Flood Insurance Rate Map
as Zone A, AO, A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30,
VE, or V.

PCHO-FLD (09/06)

Exhibit B Page 000177

Page 1 of 5

PART II - PROPERTY, C. Additional Coverage is amended as follows:
The following Additional Coverage is added
Flood
We will pay for physical loss or damage to your house, contents or other permanent
structures including debris removal caused directly by flood unless an exclusion applies.
The Flood Insurance Rate Map (FIRM) in place as of the effective date of the policy or renewal term determines the amount we will pay for a covered loss.
Payment of a Loss:
For your listed residence located in a designated B, C or X flood zone eligible for the
Preferred Risk Program of the NFIP:
1. We will pay up to the lesser of the coverage limit shown on your Declarations Page or
$250,000 for property damage to your house and other permanent structures. These
payments do not increase the amount of your coverage.
2. We will pay up to the lesser of the coverage limit shown on your Declarations Page or
$100,000 for property damage to your contents located at the covered residence.
These payments do not increase the amount of your coverage.
3. We will pay up to $250,000 for Additional Living Expenses, which consist of:
a. Extra living expenses - the reasonable increase in living expenses incurred by you to
maintain your household's usual standard of living if your residence is uninhabitable.
Payment will continue for the shortest reasonable amount of time necessary to
restore your residence to a habitable condition or for your household to relocate
elsewhere. Extra living expense payment will be made up to a maximum of one (1)
year from the date of a covered flood loss.
b. Loss of fair rental value - if you are not able to rent out your residence, or part of
your residence, that you usually rent to others, we will pay the fair rental value for
the reasonable amount of time necessary to restore your residence or that part of
your residence to a habitable condition. Fair rental value payments will be made up
to a maximum of one (1) year from the date of a covered flood loss.
c. Forced evacuation - if you are forced to evacuate your residence as a direct result of
loss or a reasonable threat of loss due to flood, we will reimburse you for the
reasonable increase in your living expenses necessary to maintain your household's
normal standard of living for up to thirty (30) days.
These payments do not increase the amount of your coverage.
4. We will pay up to $75,000 for the extra expense to obey any law or ordinance that regulates the repair, rebuilding or demolition of property damaged by flood. These payments do not increase the amount of your coverage.
5. We will pay up to $25,000 for the expense you incur for a structural engineering inspection to determine whether your house or other permanent structure is safe to occupy;
and, if required, the demolition of your house or other permanent structures when an order of structural condemnation is issued by a public entity. These payments do not increase the amount of your coverage.

PCHO-FLD (09/06)

Exhibit B Page 000178

Page 2 of 5

6

We will pay up to $10,000 for the expense you incur to protect your residence from a
flood or imminent danger of flood. These payments do not increase the amount of your
coverage. Your deductible does not apply to this coverage.

For your listed residence located in a designated Special Flood Hazard Area , flood zone D,
or a B, C or X flood zone not eligible for coverage in the Preferred Risk Program of the
NFIP:
The coverage limits specified below will be reduced by any payments available through the
NFIP policy insuring the residence or if the residence is ineligible for an NFIP policy or
eligible to be written under an NFIP policy but there is no such policy in effect, then we will
pay only for the amount of loss in excess of the maximum limit that can be insured under
the NFIP policy. If we provide broader coverage than the NFIP policy, we will pay the
difference in conditions not to exceed the limits defined below whether or not you can
collect on the NFIP policy.
The most we will pay for each occurrence is as follows:
1. We will pay up to the lesser of $250,000; the "Coverage A - Building Property Limit"
listed on the most recent NFIP Declarations Page; or the coverage limit shown on your
Declarations Page for property damage to your house and other permanent structures.
2. We will pay up to the lesser of $100,000; the "Coverage B - Personal Property Limit"
listed on the most recent NFIP Declarations Page; or the coverage limit shown on your
Declarations Page for property damage to your contents located at the covered
residence .
3. We will pay up to $250,000 for Additional Living Expenses, which consist of:
a. Extra living expenses - the reasonable increase in living expenses incurred by you to
maintain your household's usual standard of living if your residence is uninhabitable.
Payment will continue for the shortest reasonable amount of time necessary to
restore your residence to a habitable condition or for your household to relocate
elsewhere. Extra living expense payment will be made up to a maximum of one (1)
year from the date of a covered flood loss.
b. Loss of fair rental value - if you are not able to rent out your residence, or part of
your residence, that you usually rent to others, we will pay the fair rental value for
the reasonable amount of time necessary to restore your residence or that part of
your residence to a habitable condition. Fair rental value payments will be made up
to a maximum of one (1) year from the date of a covered flood loss.
c. Forced evacuation - if you are forced to evacuate your residence as a direct result
of loss or a reasonable threat of loss due to flood, we will reimburse you for the
reasonable increase in your living expenses necessary to maintain your household's
normal standard of living for up to thirty (30) days.
These payments do not increase the amount of your coverage.
4. We will pay up to $75,000 for the extra expense to obey any law or ordinance that regulates the repair, rebuilding or demolition of property damaged by flood. These payments do not increase the amount of your coverage.
5. We will pay up to $25,000 for the expense you incur for a structural engineering inspection to determine whether your house or other permanent structure is safe to occupy; and, if required, the demolition of your house or other permanent structures when
an order of structural condemnation is issued by a public entity. These payments do not
increase the amount of your coverage.
PCHO-FLD (09/06)

Exhibit B Page 000179

Page 3 of 5

6. We will pay up to $10,000 for the expense you incur to protect your residence from a
flood or imminent danger of flood. These payments do not increase the amount of your
coverage. Your deductible does not apply to this coverage.
PART II - PROPERTY, D. Exclusions, is amended as follows:
A. The following exclusion is deleted in its entirety and replaced as follows:
1. Surface and Ground Water Damage
We do not cover any loss caused by:
a. Flood, surface water, waves, tidal water overflow of a body of water, or spray from
any of these, whether or not driven by wind; or
b. Water below the surface of the ground, including water which exerts pressure on,
or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool
or other structure.
This exclusion does not apply to:
a. Contents away from any residence you own or live at;
b. Ensuing covered loss unless another exclusion applies; or
c. Coverage provided under PART II - PROPERTY. Additional Coverage. Flood.
B. With respect to Flood coverage, the following exclusions are added:
1. We do not cover any loss or property damage caused by or resulting from any flood that
is already in progress at the time and date:
a. the policy term begins; or
b. coverage is added at your request
If the flood is due to the overflow of inland or tidal waters, then the flood is considered
to begin when the water first overflows its banks.
2. We will not pay that part of the loss that is attributable to any Deductible(s) in the NFIP
policy.
3. We do not cover any loss or property damage caused by or resulting from earth
movement, such as landslide, slope failure, or a saturated soil mass moving by liquidity
down a slope whether caused directly or indirectly by flood.
PART IV - CONDITIONS, is amended as follows:
The Other Insurance provision is deleted and replaced by the following:
Other Insurance
For your listed residence located in a designated B, C or X flood zone eligible for the
Preferred Risk Program of the NFIP or in flood zone D :
If a loss covered by this policy is also covered by other insurance, we will pay only the
proportion of the loss that the limit of liability that applies under this policy bears to the
total amount of insurance covering the loss.

PCHO-FLD (09/06)

Exhibit B Page 000180

Page 4 of 5

For your listed residence located in a designated Special Flood Hazard Area or a B, C or
X flood zone not eligible for coverage in the Preferred Risk Program of the NFIP:
Payments under this coverage are in excess over the payments made by the NFIP
policy. This provision applies whether or not the maximum NFIP limit was obtained or
maintained, and whether or not you can collect on the NFIP policy.

PCHO-FLD (09/06)

Exhibit B Page 000181

Page 5 of 5

IMPORTANT
LIMITED FUNGI OR BACTERIA COVERAGE NOTICE
Please take notice that your Homeowners Policy includes a provision that limits the ensuing loss
coverage for any loss or damage which results from the presence, growth, spread or activity of Fungi
or Bacteria. This limited coverage applies to PART II - PROPERTY.
•

The amount of property insurance available for ensuing loss to your property caused by fungi or
bacteria is reduced. Coverage is only provided for loss caused by fungi or bacteria if such fungi or
bacteria are the result of a covered peril. Fungi are defined in the policy language and include mold;

•

Coverage is provided for the testing of air or property to confirm the absence, presence or level of
fungi or bacteria.

•

Coverage for wet or dry rot either as a proximate or ensuing loss is excluded.

PART II - PROPERTY
Ensuing Fungi or Bacteria
We will pay up to $10,000 in total for a loss caused by fungi or bacteria resulting from a coverd loss, including:
1. The cost to remove, clean-up, remediate, contain, treat, detoxify, neutralize, fungi or
bacteria;
2. The cost to tear out and replace any part of the building or other covered property as
needed to gain access to the fungi or bacteria;
3. The cost of testing or monitoring of air or property to confirm the absence, presence or
level of fungi or bacteria whether performed prior to, during or after removal, repair, restoration or replacement. The cost of such testing will be provided only to the extent
that there is a reason to believe that there is the presence of fungi or bacteria; and
4. Up to $5,000 for the reasonable increase in living expenses incurred by you to maintain
your household's usual standard of living if your residence is uninhabitable. Payment will
continue for the shortest amount of time necessary to restore your residence to a habitable condition.
This is the most we will pay regardless of the number of occurrences, the number of locations
insured, or the number of claims made.
We will not make any additional payments for
Ensuing Fungi or Bacteria under any other Additional Coverage.
These payments do not increase the amount of coverage.
Additional limits of coverage may be available.
Fungi means any type or form of fungus, including but not limited to all forms of mold or mildew, and
any mycotoxins, spores, scents, vapors, gas or substance, including any by-products, produced or
released by fungi.

PCHO-FUNGINOT (06/06)

Exhibit B Page 000182

INCREASED ENSUING FUNGI OR BACTERIA COVERAGE

With respect to coverage provided by this endorsement, all provisions and conditions of
the policy apply unless they are changed by this endorsement.
As respects the following location(s):

It is agreed and understood that:
PART II - PROPERTY C. Additional Coverages Ensuing Fungi or Bacteria, is deleted and
replaced with the following:
Ensuing Fungi or Bacteria
We will pay up to $1,075,000
in total for loss to your house, contents and
other permanent structures caused by fungi or bacteria resulting from a covered
loss, including:
1. The cost to remove, clean-up, remediate, contain, treat, detoxify, neutralize,
fungi or bacteria;
2. The cost to tear out and replace any part of the building or other covered
property as needed to gain access to the fungi or bacteria;
3. The cost of testing or monitoring of air or property to confirm the absence,
presence or level of fungi or bacteria whether performed prior to, during or
after removal, repair, restoration or replacement. The cost of such testing
will be provided only to the extent that there is a reason to believe that there
is the presence of fungi or bacteria; and
4. Up to $5,000 for the reasonable increase in living expenses incurred by you
to maintain your household's usual standard of living if your residence is uninhabitable. Payment will continue for the shortest period of time necessary
to restore your residence to a habitable condition.
This is the most we will pay regardless of the number of occurrences, the number of locations insured, or the number of claims made. We will not make any
additional payments for ensuing fungi or bacteria under any other Additional
Coverage.
These payments do not increase the amount of coverage.

PCHO-IEF (12/05)

Exhibit B Page 000183

Endorsement to Policy #: PCG 0006004359
Policy Period: 01/01/2014 - 01/01/2015

Endorsement Effective Date: 01/01/2014

WORKERS' COMPENSATION SCHEDULE OF EMPLOYEES

Class
Code
0912
0913

Description

Number of
Employee

Full time Outside Residence
Employee working 10 or
more hours per week
Full time Inside Residence
Employee working 20 or
more hours per week

Rate Per
Employee
$315

1

$510

TOTAL

PCHO-WCSC (07/01)

Exhibit B Page 000184

Premium

LENDERS LOSS PAYABLE ENDORSEMENT
1. Loss or damage, if any, under this policy shall be paid to the Payee named on the first page of
this policy, its successors and assigns, hereinafter referred to as "the Lender," in whatever form
or capacity its interest may appear and whether said interest be vested in said Lender in its
individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or
vested in a nominee or trustee of said Lender.
2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest
only of the Lender, its successors and assigns, shall not be invalidated nor suspended: (a) by any
error, omission, or change respecting the ownership, description, possession, or location of the
subject of insurance or the interest therein, or the title thereto; (b) by the commencement of
foreclosure proceedings or the giving of notice of sale of any of the property covered by this
policy by virtue of any mortgage or trust deed; (c) by any breach of warranty, act, omission,
neglect or non-compliance with any of the provisions of this policy, including any and all riders
now or hereafter attached thereto, by the named insured, the borrower, mortgagor, trustor,
vendee, owner, tenant, warehouseman, custodian, occupant, or by the agents of either or any of
them or by the happening of any event permitted by them or either of them, or their agents, or
which they failed to prevent, whether occurring before or after the attachment of this
endorsement, or whether before or after a loss, which under the provisions of this policy of
insurance or of any rider or endorsement attached thereto would invalidate or suspend the
insurance or as to the named insured, excluding herefrom, however, any acts of omissions of the
Lender while exercising active control and management of the property.
3. In the event of failure of the insured to pay any premium or additional premium which shall be or
become due under the terms of this policy or on account of any change in occupancy or increase
in hazard not permitted by this policy, this Company agrees to give written notice to the Lender
of such non-payment of premium after sixty (60) days from and within one hundred and twenty
(120) days after due date of such premium and it is a condition of the continuance of the rights
of the Lender hereunder that the Lender when so notified in writing by this Company of the
failure of the insured to pay such premium shall pay or cause to be paid the premium due within
(10) days following receipt of the Company's demand in writing therefor. If the Lender shall
decline to pay said premium or additional premium, the rights of the Lender under this Lender's
Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said
written notice by the Lender.
4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy
and shall claim that as to the insured no liability therefor exists, this Company, at its option, may
pay to the Lender the whole principal sum and interest and other indebtedness due or to become
due from the insured, whether secured or unsecured, (with refund of all interest not accrued),
and this Company, to the extent of such payment, shall thereupon receive a full assignment and
transfer, without recourse, of the debt and all rights and securities held as collateral thereto.
5. If there be any other insurance upon the within described property, this Company shall be liable
under this policy as to the Lender for the proportion of such loss or damage that the sum hereby
insured bears to the entire insurance of similar character on said property under the policies held
by, payable to and expressly consented to by the Lender. Any Contribution Clause included in
any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this
contract of insurance is hereby nullified, and also any Contribution Clause in any other
endorsement or rider attached to this contract of insurance is hereby nullified except Contribution
Clauses for the compliance with which the insured had received a reduction in the rate charged
or has received extension of the coverage to include hazards other than fire and compliance with
such Contribution Clause is made part of the consideration for insuring such other hazards. The
Lender upon the payment to it of the full amount of its claim, will subrogate this Company (pro
rata with all other insurers contributing to said payment) to all Lender's rights of contribution
under said other insurance.
6. This Company reserves the right to cancel this policy at any time, as provided by its terms, but in
such case this policy shall continue in force for the benefit of the Lender for ten (10) days after
written notice of such cancellation is received by the Lender and shall then cease.

PCHO-CALP (11/00)

Exhibit 1 Page 000185
B

7. This policy shall remain in force and effect as to the interest of the Lender for a period of ten (10) days
after its expiration unless an acceptable policy in renewal thereof with loss thereunder payable to the
Lender in accordance with the terms of this Lender's Loss Payable Endorsement, shall have been
issued by some insurance company and accepted by the Lender.
8. Should legal title to and beneficial ownership of any of the property covered under this policy become
vested in the Lender or its agents, insurance under this policy shall continue for the term thereof for
the benefit of the Lender but, in such event, any privileges granted by this Lender's Loss Payable
Endorsement which are not also granted the insured under the terms and conditions of this policy
and/or under other riders or endorsements attached shall not apply to the insurance hereunder as
respects such property.
9. All notices herein provided to be given by the Company to the Lender in connection with this policy
and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its office
or branch described on the first page of the policy.
Approved:
Board of Fire Underwriters of the Pacific,
California Bankers' Association,
Committee on Insurance

Includes copyrighted material from Insurance Services Office, Inc. with its permission.

PCHO-CALP (11/00)

Exhibit 2 Page 000186
B

CALIFORNIA DOMESTIC PARTNER NOTICE

Throughout this policy, the term spouse includes an individual registered under California law as a
domestic partner of the insured person shown on the Declarations Page.

PCHO-DPNOT-CA (10/05)

Exhibit B Page 000187

NOTICE TO CONSUMERS — CALIFORNIA RESIDENTIAL INSURANCE DISCLOSURE
This disclosure is required by Section 10102 of the California Insurance Code. This form provides
general information related to residential property insurance and is not part of your residential
property insurance policy. Only the specific provisions of your policy will determine whether a
particular loss is covered and the amount payable. The information provided does not preempt
existing California law.
PRIMARY FORMS OF RESIDENTIAL DWELLING COVERAGE
As respects the following location:

You have purchased the coverage(s) checked below. NOTE: Actual Cash Value Coverage is the
most limited level of coverage listed. Guaranteed Replacement Cost is the broadest level of
coverage.
____ ACTUAL CASH VALUE COVERAGE pays the costs to repair the damaged dwelling minus a
deduction for physical depreciation. If the dwelling is completely destroyed, this coverage pays the
fair market value of the dwelling at time of loss. In either case, coverage only pays for costs up to
the limits specified in your policy.
____ REPLACEMENT COST COVERAGE is intended to provide for the cost to repair or replace the
damaged or destroyed dwelling, without a deduction for physical depreciation. Many policies pay
only the dwelling's actual cash value until the insured has actually begun or completed repairs or
reconstruction on the dwelling. Coverage only pays for replacement costs up to the limits specified
in your policy.
X
____ EXTENDED REPLACEMENT COST COVERAGE is intended to provide for the cost to repair or
replace the damaged or destroyed dwelling without a deduction for physical depreciation. Many
policies pay only the dwelling's actual cash value until the insured has actually begun or completed
repairs or reconstruction on the dwelling. Extended Replacement Cost provides additional coverage
above the dwelling limits up to a stated percentage or specific dollar amount. See your policy for the
additional coverage that applies.
____ GUARANTEED REPLACEMENT COST COVERAGE covers the full cost to repair or replace the
damaged or destroyed dwelling for a covered peril regardless of the dwelling limits shown on the
policy declarations page.
X BUILDING CODE UPGRADE COVERAGE, also called Ordinance and Law coverage, is an
important option that covers additional costs to repair or replace a dwelling to comply with the
building codes and zoning laws in effect at the time of loss or rebuilding. These costs may
otherwise be excluded by your policy. Meeting current building code requirements can add
significant costs to rebuilding your home. Refer to your policy or endorsement for the specific
coverage provided and coverage limits that apply.
READ YOUR POLICY AND POLICY DECLARATIONS PAGE CAREFULLY: The policy declarations
page shows the specific coverage limits you have purchased for your dwelling, personal property,
separate structures such as detached garages, and additional living expenses. The actual policy and
endorsements provide the details on extensions of coverage, limitations of coverage, and coverage
conditions and exclusions. The amount of any claim payment made to you will be reduced by any
applicable deductibles shown on your policy declarations page. It is important to take the time to
consider whether the limits and limitations of your policy meet your needs. Contact your agent,
broker, or insurance company if you have questions about what is covered or if you want to discuss
your coverage options.

PCHO-RESDISC-CA (07/11)

Exhibit B Page 000188

Page 1 of 2

INFORMATION YOU SHOULD KNOW ABOUT RESIDENTIAL DWELLING INSURANCE
AVOID BEING UNDERINSURED: Insuring your home for less than its replacement cost may result in
your having to pay thousands of dollars out of your own pocket to rebuild your home if it is
completely destroyed. Contact your agent, broker, or insurance company immediately if you believe
your policy limits may be inadequate.
THE RESIDENTIAL DWELLING COVERAGE LIMIT: The coverage limit on the dwelling structure
should be high enough so you can rebuild your home if it is completely destroyed. Please note:

.
.
.
.
.

The cost to rebuild your home is almost always different from the market value.
Dwelling coverage limits do not cover the value of your land.
The estimate to rebuild your home should be based on construction costs in your area and
should be adjusted to account for the features of your home. These features include but are
not limited to the square footage, type of foundation, number of stories, and the quality of
the materials used for items such as flooring, countertops, windows, cabinetry, lighting and
plumbing.
The cost to rebuild your home should be adjusted each year to account for inflation.
Coverage limits for contents, separate structures, additional living expenses and debris
removal are usually based on a percentage of the limit for the dwelling. If your dwelling limit
is too low, these coverage limits may also be too low.

You are encouraged to obtain a current estimate of the cost to rebuild your home from your
insurance agent, broker, or insurance company or an independent appraisal from a local contractor,
architect, or real estate appraiser. If you do obtain an estimate of replacement value, and wish to
change your policy limits, contact your insurance company. While not a guarantee, a current
estimate can help protect you against being underinsured.
DEMAND SURGE: After a widespread disaster, the cost of construction can increase dramatically as
a result of the unusually high demand for contractors, building supplies and construction labor. This
effect is known as demand surge. Demand surge can increase the cost of rebuilding your home.
Consider increasing your coverage limits or purchasing Extended Replacement Cost coverage to
prepare for this possibility.
CHANGES TO PROPERTY: Changes to your property may increase its replacement cost. These
changes may include the building of additions, customizing your kitchen or bathrooms, or otherwise
remodeling your home. Failure to advise your insurance company of any significant changes to your
property may result in your home being underinsured.
EXCLUSIONS: Not all causes of damage are covered by common homeowners or residential fire
policies. You need to read your policy to see what causes of loss or perils are not covered.
Coverage for landslide is typically excluded. Some excluded perils such as earthquake or flood can
be purchased as an endorsement to your policy or as a separate policy. Contact your agent, broker,
or insurance company if you have a concern about any of the exclusions in your policy.
CONTENTS (PERSONAL PROPERTY) COVERAGE DISCLOSURE: This disclosure form does not
explain the types of contents coverage provided by your policy for items such as your furniture or
clothing. Contents may be covered on either an actual cash value or replacement cost basis
depending on the contract. Almost all policies include specific dollar limitations on certain property
that is particularly valuable such as jewelry, art, or silverware. Contact your agent, broker or
insurance company if you have any questions about your contents coverage. You should create a
list of all personal property in and around your home. Pictures and video recordings also help you
document your property. The list, photos, and video should be stored away from your home.
CONSUMER ASSISTANCE: If you have any concerns or questions, contact your agent, broker, or
insurance company. You are also encouraged to contact the California Department of Insurance
consumer information line at (800) 927-HELP (4357) or at www.insurance.ca.gov for free insurance
assistance

PCHO-RESDISC-CA (07/11)

Exhibit B Page 000189

Page 2 of 2

NOTIFICATION REGARDING THIS OFFER
OF HOMEOWNERS COVERAGE
AIG Property Casualty Company will not bind coverage
on any property that has any unrepaired Earthquake
damage.
IF YOU INDICATE ON THE APPLICATION THAT NO UNREPAIRED
EARTHQUAKE DAMAGE IS PRESENT, AND UPON INSPECTION
UNREPAIRED EARTHQUAKE DAMAGE IS DISCOVERED, THE
POLICY WILL BE IMMEDIATELY CANCELLED IN ACCORDANCE
WITH CALIFORNIA REGULATIONS.

AEQ1 (05/99)

Exhibit B Page 000190