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					Prime Home and Contents Insurance




                                    Prime Home and
                                    Contents Insurance
                                    Product Disclosure Statement (PDS)
                                    Preparation Date: 3 February 2004
Important Information
This information is provided by CommInsure, a registered business name of Commonwealth
Insurance Limited ABN 96 067 524 216, AFSL 235030 (CIL), which is a wholly owned subsidiary
of Commonwealth Bank of Australia ABN 48 123 123 124 and is the insurer for Prime Home and
Contents Insurance.
In NSW, the insurer for Domestic Workers Compensation is CIL, fully re-insured by Allianz Australia
Workers Compensation (NSW) Limited ABN 17 003 087 545. In the ACT, NT, TAS and WA, CIL
offers Domestic Workers Compensation insurance as an agent for Allianz Australia Insurance Limited
ABN 15 000 122 850 (Allianz).
Commonwealth Bank of Australia and its subsidiaries do not guarantee the obligations or perform-
ance of CIL or Allianz or the products they offer.
In this PDS where we refer to “CommInsure”, “us”, “we” and “our” we mean CIL.
The offer made in this PDS is available only to persons receiving this PDS in Australia. Applications
outside Australia will not be accepted. All references to monetary amounts in the PDS are references
to Australian dollars.
The information in this PDS does not take into account your individual objectives, financial situation
or needs. You should, before acting on this information, consider its appropriateness to your circum-
stances and consider the Product Disclosure Statement before making any decision about
the product.


   You can contact us by
   ■ calling our Customer Service Centre on 13 24 23
   ■ visiting comminsure.com.au
   ■ writing to us at PO Box 315, Silverwater, NSW 2128
   ■ emailing us at contactus@comminsure.com.au


This document will be a Product Disclosure Statement under the Corporations Act 2001 (Cth) from
11 March 2004.
Contents

About your Prime Home and Contents Insurance                   3
Cover highlights                                               6
Insurance Practice                                            10
Complaint and dispute resolution processes                    12
Your policy                                                   14
■   Part 1: Your Prime insurance policy                       15
■   Part 2: Important: Your duty of disclosure and general
            policy conditions                                 16
    Section 1 Your duty of disclosure                         16
    Section 2 General policy conditions                       17
■   Part 3: Meanings of words and phrases we use frequently   21
■   Part 4: What you are insured for                          29
■   Part 5: Prime Home cover                                  40
    Section 1 What your home is covered for                   40
    Section 2 Additional Prime Home cover benefits            41
    Section 3 Prime Plus Home cover                           43
    Section 4 Strata Title Owner’s cover                      46
■   Part 6: Prime Contents cover                              48
    Section 1 What your contents are covered for              48
    Section 2 Specified Contents                              49
    Section 3 Additional Prime Contents cover benefits        50
    Section 4 Prime Plus Contents cover                       54
    Section 5 Limits on payment for some contents items       58



                                                                   1
    ■   Part 7: Prime Personal Valuables cover                             61

        Section 1 What you are covered for                                 61

        Section 2 What personal valuable items are covered                 62

    ■   Part 8: Domestic Workers Compensation Insurance                    64

        Section 1 New South Wales                                          64

        Section 2 Australian Capital Territory, Northern Territory,
                   Tasmania and Western Australia                          65

        Section 3 Claims procedure for Domestic Workers
                   Compensation Insurance                                  65

    ■   Part 9: Prime Legal Liability cover                                66

        Section 1 What you are covered for                                 66

        Section 2 How much you are covered for                             67

        Section 3 What you are not covered for                             67

    ■   Part 10: What the policy doesn’t cover                             69

        Section 1 General exclusions                                       69

        Section 2 What is not insured by the policy                        71

    ■   Part 11: How we will handle your claim                             74

        Section 1 If you need to make a claim                              74

        Section 2 Proof of ownership, purchase or acquisition              76

        Section 3 How we will settle your Prime Home cover claim           77

        Section 4 How we will settle your Prime Contents cover claim       81

        Section 5 How we will settle your Prime Personal Valuables claim   84

        Section 6 How we will apply the excess                             86




2
About your Prime Home
and Contents Insurance
Our goal at CommInsure is to provide you with the peace of mind and financial
protection which is so important if you are unfortunate enough to suffer loss or
damage to your home and/or its contents.

Your home is probably your biggest investment and your most valuable asset.
It’s also your security for the future. That’s why you can’t afford to put it at risk.
Prime Home and Contents Insurance can protect your valuable asset by providing
cover against a range of events such as fire, lightning and earthquakes, storms,
theft, fusion, the breakage of fixed glass and much more.

This document is a Product Disclosure Statement (PDS). It is an important legal
document. It provides details of the cover provided under this policy along with any
costs, fees, discounts and charges that may apply. Before deciding to buy
insurance from us you should read the PDS (including the policy contained in it)
carefully, in conjunction with your Certificate of Insurance and any special conditions
sent to you. If we issue cover then this will be your policy (refer to pages 14 to 87).

Cooling off period
If for any reason you are not completely satisfied with this policy, you can cancel it
within the 14 day “Cooling off” period. See page 19 for full details.

Costs, fees, discounts and charges
The cost of a policy, paid to us, is in the form of insurance premiums, together with
other mandatory government charges. This is your total premium.

The insurance premiums you pay us will depend on the type of cover and optional
covers you choose to take out (refer to pages 6, 7 and 8 for further information).

We will tell you the total premium amount you owe at the time of taking out the
policy and this will be confirmed on receipt of your Certificate of Insurance.

The mandatory government charges include “stamp duty” and “GST”. It will also
include a Fire Service Levy (FSL) if applicable. These will be included in the “Total
Premium” on your Certificate of Insurance.



                                                                                          3
    Your insurance premium may change if you advise us of changes to your cover.
    For example if you have made substantial changes to your premises. Please see
    page 18 “Are you planning any changes?” for further details.

    Insurance premium calculation
    We have listed below some of the factors that are taken into consideration when
    determining what your insurance premium will cost:
    ■   location of the home;
    ■   construction type e.g. wall type;
    ■   home usage e.g. shop front; holiday weekender;
    ■   occupancy type e.g. owner occupied, renter;
    ■   sum to be insured;
    ■   the excess chosen; and
    ■   cover taken out, including any optional covers.
    Please also refer to the section headed “Discount and special benefits” found below.

    Discounts and special benefits
    The following discounts and special benefits may apply to you:
    ■   Combined policy discount if you combine both your Prime Home and Contents
        cover on the one policy;
    ■   Security system discount off your Prime Contents Premium if you have installed a
        monitored back-to-base security system or local burglar alarm in your home; and
    ■   Special discount or benefits that we offer. They can be withdrawn at any time and
        may have a start and finish date applicable.
    If you choose an excess higher than Basic on your Prime Home and Contents
    Insurance, you’ll receive an additional discount off your annual premium.
    Discounts apply to the base premium for home and contents insurance before
    government taxes and other charges are applied. Any discounts that apply will
    be included in the price shown on your Certificate of Insurance.

    Payment method
    You can choose to pay your total premium by one of the following methods
    of payment:



4
■    Direct debit from a nominated financial institution account – monthly or annually;
■    Credit card direct debit – monthly or annually;
■    Cash or cheque – in person at any Commonwealth Bank branch; and
■    BPAY® – by telephone and internet banking.

We do not charge you a fee for paying your total premium by direct debit
(however your bank may impose charges).
®
    Registered to BPAY® Pty Ltd ABN 69 079 137 518


Cancellation Fee
If you decide to cancel your policy during a period of insurance we will charge
you a fee of $20. See page 19, section 2.8 “Cancellation of your policy” for further
information.

Excess
An excess is the amount you must contribute toward any one event when a claim
is accepted under your policy. The agreed amount and type of excess will be shown
on your Certificate of Insurance. For certain Insured events or where you have chosen
an optional cover, a higher excess may apply. Please refer to pages 14 to 87 for
details on the excesses that may apply (including pages 86 and 87 for information
on how an excess will be applied).

Efficient claims settlement
The real test of an insurance policy comes when you make a claim. That’s why our
Claims Service Line is available 24 hours every day of the week. You can advise us
of your claim by calling 13 24 20 or online at comminsure.com.au When you call,
you’ll speak with people who know how important it is to assess your claim quickly
and efficiently so you’re not kept waiting and worrying. Wherever possible, when we
have all the necessary information, we’ll settle your claim within 5 working days.
Please see Part 11 “How we will handle your claim” on pages 74 to 87.

If you need to contact us
You can contact our Customer Service Centre between 8am and 8pm
(Sydney time), 7 days a week on 13 24 23.



                                                                                          5
    Cover highlights

    We have summarised in the tables below, the cover highlights of Prime Home and
    Contents Insurance. These tables have been prepared as a quick reference guide
    only. Full details about policy coverage and options, see pages 14 to 87 of this PDS
    or simply call 13 24 23 from 8am to 8pm (Sydney time) 7 days a week.
     Insured Events                                           Home   Contents    Page

     Fire                                                      ✓        ✓         29

     Explosion                                                 ✓        ✓         29

     Lightning                                                 ✓        ✓         30

     Earthquake                                                ✓        ✓         30

     Storm                                                     ✓        ✓         31

     Rainwater                                                 ✓        ✓         31

     Flash Flooding (Limited to 15% of the home sum insured    ✓        ✓         32
     and 25% of the contents sum insured)

     Bursting, Leaking, Discharging or Overflowing             ✓        ✓         32

     Vandalism, Malicious damage, Riots                        ✓        ✓         33
     or Civil disturbances

     Theft or attempted theft                                  ✓        ✓         34

     Impact                                                    ✓        ✓         35

     Accidental Breakage of Glass                              ✓        ✓         36

     Burning out of domestic electric motors                   ✓        ✓         38

     Legal Liability cover                                     ✓        ✓         66
     ■ Up to $15 million
     ■ Anywhere in Australia and New Zealand




6
Cover Benefits and features                                    Home   Contents      Page

New for Old                                                     ✓        ✓        77 (Home)
(if you have new for old replacement cover)                                      81 (Contents)

Special Limit Items                                             ✗        ✓           26
■ $1,000 maximum per item
■ Overall limit 20% of the Contents Sum Insured
  or $10,000 (whichever is the lower amount
■ Items which exceed the individual item limit
  may be listed separately

Professional fees, Mortgage discharge costs,                    ✓        ✓        41 (Home)
Fire extinguishment costs etc.                                                   50 (Contents)

Alternative accommodation costs                                 ✓        ✗           41
■ Maximum period 12 months
■ Limited to 10% of the home sum insured

Landscaping rectification costs                                 ✓        ✗           42
■ $200 per tree, shrub or plant
■ $2,000 in any one period of insurance

Temporary removal of Contents                                   ✗        ✓           51

Replacement of Locks and Keys up to $250                        ✗        ✓           52

Spoilage of frozen food up to $500                              ✗        ✓           52

Loss or theft of credit card up to $500                         ✗        ✓           53

Cash up to $500                                                 ✗        ✓           22

Tools of trade $1,000                                           ✗        ✓           22

Accessories and/or spare parts not fitted to motor vehicles,    ✗        ✓           22
caravans, trailers and boats up to $1,000




                                                                                                 7
     Optional Covers available at an extra cost                     Home      Contents    Page

     Prime Plus Home                                                  ✓          ✗       43 to 45
     ■ Accidental Damage up to 10% of the
       home sum insured or $30,000 (whichever
       is the lower amount)
     ■ Essential Modifications up to $10,000
     ■ Preparation of new title deeds up to $2,000
     ■ Storm damage to fences up to $1,000

     Prime Plus Contents                                              ✗          ✓       54 to 57
     ■ Accidental Damage up to 10% of the contents sum
       insured or $30,000 (whichever is the lower amount)
     ■ Visitor’s property up to $500 per event and $2,000
       in any one period of insurance
     ■ Fatal injury compensation up to $10,000
       in any one period of insurance
     ■ Stolen Keys up to $250

     Strata Title Owner’s cover                                       ✓          ✗         46

     Domestic Workers Compensation – NSW,                             ✗          ✓         64
     ACT, NT, TAS and WA

     Personal Valuables cover                                         ✗          ✓         61
     ■ Customised cover and/or Packaged cover
     ■ Australia and New Zealand coverage
     ■ Worldwide option available at extra cost

    ✓ Means covered for the relevant insured event benefit or feature.
    ✗ Means not covered for the relevant insured event, benefit or feature.
    Please note: these insured events, benefits and features have special meanings and are also
    subject to exclusions. Please see pages 14 to 87 (including “Meanings of words and phrases
    we use frequently” pages 21 to 28 and “What the policy doesn’t cover” pages 69 to 73).


    Extra protection with Prime Personal Valuables cover
    Many personal contents items are not covered outside your home or if you
    accidentally lose them in your home. You can protect your valuable items of a
    personal nature, which you take with you when you are away from home, with our
    Prime Personal Valuables cover. It is a separate cover at an additional premium and
    is available as an option if you have Prime Contents cover.



8
Our Prime Personal Valuables cover includes:
■   Automatic cover for accidental loss or damage to listed valuable items
    at or away from your home;
■   Cover anywhere within Australia and New Zealand; and
■   Optional world wide cover, at additional cost.

For full details, see pages 61 to 63 or simply call us on 13 24 23.

Automatic adjustment for inflation
Over the years inflation can significantly increase the cost of replacing your home and
contents, potentially leaving you under insured should you need to make a claim.
With Prime Home and Contents cover from CommInsure, the sum insured on your
home and contents is automatically adjusted on renewal each year to keep pace with
inflation, and so, help maintain the value of your cover. Of course, you should regularly
review the value of your home and contents to ensure you are adequately insured.

Portability cover
If your home is currently insured with us and you are selling it and purchasing
a new one, we have a facility called ‘Portability Cover’. Portability Cover allows
you to transfer your existing Home and Contents insurance to your new property.

Also, if it is necessary for you to take out home insurance on the new property
before the purchase is completed (you should seek independent legal advice,
but, for example, in some States or Territories, insurance is necessary from when
contracts are exchanged, or from when you commence to occupy the property,
each of which could occur before the purchase is completed) or if you simply feel
it is prudent to take out insurance on your new property in order to protect your
valuable new asset, Portability Cover allows you to expand your existing home cover
to include the new property as well as the existing property*.

The premium for the cover over both properties will be calculated according to the
new property, not the old property. The big benefit for you is that you pay only one
premium; calculated according to the location and Sum Insured for the new property.
* Both properties will be covered until the date you complete the sale of your existing property,
  subject to a maximum period of three months.




                                                                                                    9
     Insurance Practice

     General Insurance Code of Practice
     CommInsure supports the self regulatory General Insurance Code of Practice
     developed by the Insurance Council of Australia.

     Collection of personal information
     We collect personal information (including customers’ full name, address and
     contact details) so that we may administer our customer relationships and provide
     customers with the products and services they request as well as information on the
     Commonwealth Bank Group’s products and services.
     Where it is necessary to do so, we also collect information on individuals such as
     company directors and officers (where the company is our customer) as well as
     customers’ agents and persons dealing with us on a “one-off” basis. We may take
     steps to verify the information we collect.
     The law can also require the Bank to collect personal information.

     You need to provide us with accurate and relevant information
     If you provide us with incomplete or inaccurate information, we may not be able
     to provide you with the products or services you are seeking.

     Other members of the Commonwealth Bank Group
     We are permitted by the Privacy Act to disclose personal information to other members
     of the Commonwealth Bank Group. This enables the Group to have an integrated
     view of its customers.

     Other disclosures
     Personal information may be disclosed to:
     ■   any person acting on your behalf, including your financial adviser, solicitor or
         accountant, executor, administrator, trustee, guardian or attorney;
     ■   brokers and agents who refer your business to us;
     ■   insurance reference agencies, other insurers, a lender if your insurance policy
         relates to credit provided by that lender, claims assessors and investigators and



10
    reinsurers (so that any claim you make can be assessed and managed), builders,
    architects and engineers, external insurance providers for whom we act as agent,
    tradespersons and suppliers from whom we order goods on your behalf; and
■   organisations, including overseas organisations, to whom we outsource certain
    functions.

In all circumstances where our contractors and agents and outsourced service
providers become aware of personal information, confidentiality arrangements apply.
Personal information may only be used by our agents contractors and outsourced
service providers for our purposes.

We may be allowed or obliged to disclose information by law, e.g. under Court
Orders or Statutory Notices pursuant to taxation or social security laws.

Access
You may (subject to permitted exceptions) access your personal information
by contacting:
Customer Relations Department
Commonwealth Bank Group
GPO Box 41
SYDNEY NSW 2001

Customer Relations telephone number: 1800 805 605
Facsimile 1800 028 542

We may charge you for providing access.

Further information
For further information on our privacy and information handling practices, please
refer to out Privacy Policy Statement, which is available at commbank.com.au
or upon request from any Commonwealth Bank branch.




                                                                                       11
     Complaint and dispute
     resolution processes
     CommInsure staff are committed to providing you with the right service. That includes
     doing all we can to promptly resolve any problems you may have in doing business
     with us.

     If we fail to satisfy you:
     Step 1 Please call our Customer Service Line on 13 24 23 8am to 8pm (Sydney
            time), 7 days a week, about general or policy matters, or the Claims
            Service line on 13 24 20 if you have a problem with a claim. If preferred,
            you could write or fax us.
              If we are not able to satisfy you, our internal procedures will ensure that
              it is referred to an appropriate person and receives prompt attention.
     Step 2 If you remain dissatisfied, CommInsure has its own internal dispute
            resolution process. You can access it either by calling the Customer
            Relations number, 1800 805 605, or by writing to:
              Customer Relations Department
              Commonwealth Bank Group
              GPO BOX 41
              SYDNEY NSW 2001
              Customer Relations has the authority to act independently in dealing
              with your problem and to respond to your request for resolution. Normally,
              investigations are completed within 15 working days. If, after investigation,
              we are unable to resolve your problem, we will write to you and provide
              you with the reasons for our decision.




12
If our internal process has not worked for you:
Step 3 If you are dissatisfied with the decision from our internal dispute resolution
       process please let us know. Alternatively you can contact Insurance
       Ombudsman Service Limited (IOS) and will need to make contact
       with them within three months of receiving our final decision.
         You can contact the IOS by calling 1300 780 808 for the cost of a local
         call or by writing to:
         Insurance Ombudsman Service Limited (IOS)
         PO Box 561 Collins Street West
         Melbourne Vic 8007
         You can also fax the IOS on (03) 9621 2060 or visit their website
         at www.iecltd.com.au

If you believe we have failed in our commitment to protect your privacy:

Please give us the opportunity to respond to your concerns by either calling our
Customer Relations number, 1800 805 605 or by writing to:
Customer Relations Department
Commonwealth Bank Group
GPO Box 41
SYDNEY NSW 2001

Customer Relations has the authority to investigate on your behalf and has a
commitment to respond to you within 15 working days. If, after investigation,
we are unable to meet your expectations, we will write to you and provide you
with the reasons for our decision.

If you remain dissatisfied with our handling of your privacy complaint:

We will provide you with information on the further action you can take to have
the matter referred to an external, independent body for determination.




                                                                                        13
     Your policy

                        In this policy we have provided information to help you
                        understand what we mean, and where appropriate to provide
                        some examples of loss or damage which would be covered.
                        Examples of those which would not be covered by the policy
                        are also included for your information.

                        It’s important to remember that the policy doesn’t cover
                        everything that can go wrong in and around your home. Home
                        and contents insurance should not be regarded as a substitute
                        for maintenance of the home or breakdown or wearing out of
                        its contents.

                        Explanatory information is shown in shaded boxes, at the
                        beginning of a new section. We refer to these as “information
                        boxes”. Examples are shown in panels on the left hand side
                        of the main policy text.
     This is where we    This is an example of an “information box” at the beginning
     show examples.      of a new section, showing how it will look.

                        They do not form part of the legal contract between you and us.
                        Their purpose is to provide you with assistance in understanding
                        the cover provided by the policy.

                        Some of the words we use frequently have special meanings.
                        We have shown these words in bold type and their meaning
                        is explained in Part 3.




14
Part 1: Your Prime Insurance policy

The words in           Your Prime Home and Contents insurance policy is a legal
bold type have a
                       contract between you and us, which takes effect when you
special meaning,
and are defined        have paid, or agreed to pay, the premium to us.
in Part 3 of this
policy.                You must pay the premium, or any part of it, when it is due.

                       The information you provide to us forms the basis on which
                       the policy is made.

As your certificate    We agree to insure your property on the terms and conditions
shows your level
                       of the policy during the period of insurance and for the sum
of cover, you
should check it        insured shown on the certificate which applies at the time loss
carefully to ensure
                       or damage occurs.
that it reflects the
choices you have
made.                  The policy is made up of
                       ■   certificate of insurance (which we will call “the certificate”
At different times
you will receive           when we refer to it later in the policy);
certificates of
insurance. These       ■   any special conditions we send to you; and
will be sent to you
                       ■   Pages 14 to 87 of this PDS.
• at commence-
  ment of the
  policy
• during the
  period of the
  policy (if any
  changes are
  made to the
  level of cover)
• prior to expiry
  of the policy
  (when we invite
  you to renew
  your policy).




                                                                                            15
     Part 2: Important: Your duty of disclosure
     and general policy conditions
                             For your information: Part 2 is in two sections. Section 1 contains an
                             important notice about your duty of disclosure, in the form
                             prescribed by the Insurance Contracts Act 1984 (as amended from
                             time to time). Section 2 states general policy conditions.

                             Read both sections of Part 2 carefully before you enter into, renew
                             or vary your policy.


     For example, the       Section 1 – Your duty of disclosure
     age and condition
     of the property are
     important to us in     1.1 What you must tell us
     reaching our
     decision whether       When answering our questions, you must be honest and you
     or not to accept       have a duty under law to tell us anything known to you, and
     your proposed
     insurance, as is       which a reasonable person in the circumstances, would include
     your previous          in answer to the question. We will use the answers in deciding
     history of
     insurance claims.      whether to insure you and anyone else to be insured under the
                            policy, and on what terms.
     You should notify
     us of any changes
     that affect your       1.2 Who needs to tell us
     duty of disclosure
     during the period      It is important that you understand you are answering our
     of insurance or at
     renewal.               questions in this way for yourself and anyone else whom you
                            want to be covered by the policy.
     If you are not sure
     if something is
     relevant, it is best   1.3 If you do not tell us
     to disclose it.
                            If you do not answer our questions in this way, we may reduce
                            or refuse to pay a claim, or cancel the policy. If you answer our
                            questions fraudulently, we may refuse to pay a claim and treat
                            the policy as never having worked.




16
Part 2

The process for        Section 2 – General policy conditions
making a claim is
set out in greater
detail in Part 11      2.1 Refer all claims to us
of this policy.        If you admit liability for, or settle, or abandon any claim without
                       our prior consent or agreement, your insurance claim may not
                       be paid under this policy.

The requirements       2.2 Proof of ownership
in relation to proof
of ownership           Whenever you claim for any item which is insured under this
are more fully         policy, we may ask you to provide us with proof that you
explained in           actually owned the item you are claiming for, and that the item
Part 11, Section 2
of this policy.        is worth the value you are claiming for it, before we will consider
Refer to page 76.      a claim for that item.

                       2.3 If the home is unoccupied
                       Special conditions and possible restrictions in cover apply when
                       the property is unoccupied for 60 or more days.
If you are away
from your home         When we use the term unoccupied, we mean that either
for less than 60
days (for example,     ■    no-one is living in the home; or
while shopping,
at work, or on         ■    someone is living in the home but without your consent.
holidays), we do
not treat that         If the home has been or is likely to be unoccupied
period of absence      ■    for 60 or more consecutive days; and
as the home
being unoccupied,      ■    you have not advised us prior to the home being
provided the home           unoccupied, all cover under the policy is suspended
is sufficiently
furnished for
                            and we will not pay for any claim which occurs while
normal living               it is unoccupied.
purposes at all
times while you        If
are away from it.      ■    you tell us prior to the home being unoccupied, and
                       ■    we agree to continue the cover;
                       ■    we will confirm our agreement to continue the cover in writing.
                       If the home is unoccupied for less than 60 days, and it
                       ■    is not sufficiently furnished for normal living purposes; or
                       ■    does not have any person living in it with your consent,
                            there is no cover for theft during the period it is unoccupied.



                                                                                              17
     Part 2

                            When we use the term “sufficiently furnished for normal living
                            purposes”, we mean that the home is complete with usual
                            cooking, eating and sleeping facilities.

     For major              2.4 Are you planning any changes?
     construction
     works or               You should write and tell us as soon as possible of any
     alterations over       substantial improvements, alterations or additions which you
     $25,000 in value,
     a special              propose to make to the home, or at the insured address.
     construction
     policy is more         We will then confirm to you, in writing, our response in relation
     appropriate to         to the changes, and any special conditions which may be
     provide specific
     cover for the work     applied to your policy as a result of the changes.
     in progress.
                            We also require you to let us know as soon as possible of any
     You should
     consult your           other change to the home or at the insured address which has
     builder to ensure      been made, or which you intend to make, which affects the use,
     the works are
     properly covered.      structure, state or condition of the home or the insured address.

     Failure to tell us     2.5 What if you don't advise us of changes?
     may adversely
     affect your cover,     We may be entitled to
     particularly for
     storm and legal        ■   reduce the amount we pay in the event of a claim;
     liability claims.
                            ■   cancel the policy; or
                            ■   avoid any liability under the policy in accordance with
                                the provisions of the Insurance Contracts Act 1984.
     For example, if
     you pay your
     annual premium         2.6 Do you pay your annual premium by monthly
     by monthly             instalments?
     instalments and
     we are unable to       If any instalment remains unpaid for one calendar month or more
     access payment
     from your              ■   you will not be able to claim under the policy (if the loss
     nominated
     account, then,
                                or damage occurs one calendar month or more after non-
     after advising             payment); and
     you of this fact the
     next payment           ■   we may cancel the policy, effective one calendar month after
     attempt is also            the date the last payment was due, once we have given you
     unsuccessful,
     we may cancel the          notice of your failure to pay the premium.
     policy.



18
Part 2

         2.7 Cooling off period
         You are entitled to a 14 day “cooling off” period. This means
         that you have 14 days to check that the policy meets your
         needs. The 14 day period will start on whichever is the earlier
         of the following dates:
         ■   when you receive confirmation of your insurance policy; or
         ■   the end of the fifth day after the day on which your
             insurance policy is issued to you.

         Within this cooling off period you may cancel your policy and
         have your premium refunded. Your request for cancellation
         must be in writing or by email to us at comminsure@cba.com.au

         You are not entitled to exercise your cooling off right, if you
         have exercised a right under the policy, e.g. you have made
         a claim under your insurance policy, before the end of the
         cooling off period.

         2.8 Cancellation of your policy – by you
         In addition to being able to cancel the policy under the “Cooling
         off period”, you may cancel your policy at any time by writing
         to us and telling us to cancel the policy. If you have paid your
         full annual premium in advance, we will refund any unused
         portion of the premium to you, less a cancellation fee (see
         page 5 in the PDS), if you cancel your policy during a period
         of insurance.

         If you pay your premium by monthly instalments, we will
         refund any unused portion of the monthly instalment to you,
         less a cancellation fee (see page 5 in the PDS) if you cancel
         your policy during a period of insurance.

         2.9 Cancellation of your policy – by us
         We may cancel your policy, or decline to offer renewal of your
         policy at any time in accordance with the provisions of the
         Insurance Contracts Act 1984.



                                                                             19
     Part 2

              These circumstances include:
              ■   You fail to comply with your duty of good faith;
              ■   You fail to comply with your duty of disclosure or
                  misrepresented to us when this policy was entered into;
              ■   You fail to comply with a provision under the policy
                  (including payment of premiums);
              ■   You make a fraudulent claim under any insurance contract
                  during the period of insurance cover; or
              ■   Other circumstances permitted by law.
              If we decide to take this course of action, we will give you
              written notice, either delivered personally, or mailed, to the last
              address you provided to us.
              Cancellation will take effect on a date that is the later of
              ■   the date specified in the notice; or
              ■   the date that is 14 days after you would be expected
                  to receive the notice in the ordinary course of delivery.
              Where the policy is cancelled by us, the premium will be
              refunded on the following basis:
              ■   If you have paid your full annual premium in advance, we
                  will refund any unused portion of the premium to you; or
              ■   If you pay your premium by instalments, you will not
                  receive a refund.

              2.10 Reasonable care
              At all times, and at your expense, you must
              ■   take all reasonable precautions to maintain and protect the
                  property insured to minimise or avoid damage, destruction
                  or theft;
              ■   comply with all statutory obligations, by-laws or regulations
                  imposed by any government or public authority relating to
                  the safety of people or property; and
              ■   take all reasonable care to prevent injuries to other persons
                  or damage to another person’s property.



20
Part 3: Meanings of words and phrases
we use frequently
                       For your information: Some words or phrases are often referred to
                       throughout this policy, and when used these words or phrases have
                       particular meanings in relation to the interpretation of the extent of
                       cover which is provided and limitations which may apply.

                       Where used in the policy, these words or phrases appear in bold
                       type. These words and their meanings appear below, but this does
                       not state the full extent of cover, for which you may need to refer to
                       the specific part of the policy in relation to that cover.

      Accident     is a happening that was not intended, planned or expected.

Act of terrorism   means an act, including but not limited to the use of force
                   or violence and/or threat thereof, of any
                   ■    person; or
                   ■    group or groups of persons.
                   whether acting alone, or on behalf of, or in connection with
                   any organisation(s) or government(s) which from its nature
                   or context is done for, or in connection with
                   ■    political;
                   ■    religious;
                   ■    ideological; and
                   ■    ethnic.
                   or similar purposes or reasons, including the intention to
                   influence any government and/or to put the public, or any
                   section of the public, in fear.

     Collection    is any pair, set or other accumulation of objects that belong
                   or are displayed together.

                   We will not treat an accumulation of recorded media (for
                   example, music or films stored on compact discs, DVDs,
                   records or tapes) as a collection but we do treat them as
                   special limit items if their combined value is $1,500 or more.



                                                                                                21
     Part 3

          Computer       is any software used or designed to be used by a computer,
           Software      and includes discs, computer or video games or game
                         controllers and their accessories.

              Contents   are items of property which are not fixtures, and which belong to
                         you or your family who reside with you at the insured address.
                         ✓ It includes
                         ■   furniture and household goods;
                         ■   carpets (fixed or loose), or loose floor coverings;
                         ■   Internal blinds, curtains and soft furnishings;
                         ■   clothing and personal effects;
                         ■   computer software and hardware;
                         ■   indoor plants;
                         ■   cash and negotiable instruments (limited to a maximum
                             amount of $500);
                         ■   motorised golf carts or buggies, motorised wheelchairs,
                             or lawn mowing equipment;
                         ■   special limit items;
                         ■   property which you use in a professional capacity in
                             conjunction with a profession you carry on in a surgery
                             or office contained in the home;
                         ■   unregistered motor cycles with an engine capacity of 125cc
                             or less which are not registered or do not require statutory
                             bodily injury cover to be taken out (but only for the insured
                             events of fire and theft, and limited to a maximum amount
                             of $1,000);
                         ■   accessories and/or spare parts of motor vehicles, caravans,
                             trailers and boats which are not fitted to or being used with
                             any motor vehicle, caravan, trailer or boat (limited to a
                             maximum amount of $1,000);
                         ■   watercraft, consisting of canoes, sailboards, surfboards, surf
                             skis or other non-motorised watercraft less than 3 metres in
                             length (limited to a maximum amount of $1,000);
                         ■   tools of trade (limited to a maximum amount of $1,000);



22
Part 3

                  ■   swimming pools which are pre-fabricated or above-ground
                      or which are freestanding; and
                  ■   swimming pool accessories which are not permanently fixed,
                      pool liners and removable covers.
                  ✗ It does not include
                  ■   stock or plant (other than tools of trade) used for business
                      purposes;
                  ■   motor vehicles, or motor cycles with engine capacity greater
                      than 125cc, or their installed accessories, components or
                      spare parts, regardless of whether or not they are registered
                      for use on public roads, or whether they are intended for
                      ‘off-road’ use only;
                  ■   any other motorised self-propelled vehicle, and its installed
                      accessories, components or spare parts (other than
                      motorised golf carts or buggies, motorised wheelchairs,
                      or lawn mowing equipment);
                  ■   caravans or trailers, or their equipment or installed accessories;
                  ■   watercraft which exceed 3 metres in length, motorised
                      watercraft or their installed accessories, components or
                      spare parts;
                  ■   birds, animals or fish; and
                  ■   trees, shrubs and outdoor plants.
                  ✓ Where the home is a strata title property, fixtures and fittings
                  (including built-in furniture) which are owned by you and are not
                  otherwise insured by the Body Corporate, are also considered
                  to be contents.

          Event   is any single occurrence resulting in a claim under the policy.

         Excess   is the amount you pay for any one event when a claim
                  is accepted under this policy.

Flash Flooding    is the overflow of any lake, river, creek, stormwater channel,
                  canal or any other watercourse (whether natural, altered or
                  modified), caused by a storm, where the flooding occurs
                  within 24 consecutive hours of the storm having commenced.



                                                                                           23
     Part 3

              Flood   is the inundation of normally dry land by water which
                      ■   overflows, or is released from; or
                      ■   escapes the normal confines of; or
                      ■   because of water that has already overflowed, escaped
                          or been released, is unable to enter any lake, reservoir,
                          dam, river, creek, stormwater channel, canal or any other
                          watercourse whether natural, altered or modified.
                      Unless the damage is caused by flash flooding, this policy
                      does not cover flood.

              Home    is the private residence at the insured address.
                      ✓ It includes structural improvements of a domestic nature,
                      being
                      ■   garages or domestic outbuildings;
                      ■   carports, verandahs and pergolas;
                      ■   walls, paths, driveways and paved terraces;
                      ■   gates, masts, aerials and clothes lines;
                      ■   fences (but in the case of a dividing or shared fence only
                          the amount the law would require you to pay for the fence);
                      ■   fixtures providing services, either above or below ground,
                          which have been connected to the home;
                      ■   fixed apparatus and equipment connected to the gas,
                          plumbing, drainage, sewerage or electrical systems;
                      ■   permanently fixed swimming pools, saunas and spas,
                          including their fixed accessories; and
                      ■   exterior blinds and awnings
                      provided the home or improvement complies with local
                      government regulations, or the requirements of any other
                      statutory authority at the time it was built, renovated, or installed.
                      ✓ It also includes fixtures and fittings attached to the residence,
                      being
                      ■   stoves, dishwashers, room heaters, air conditioners,
                          fans, light fittings or hot water services;



24
Part 3

                   ■   built-in furniture; and
                   ■   fixed floor, wall and ceiling coverings other than carpets.
                   ✗ It does not include
                   ■   a strata titled unit;
                   ■   a building which comprises flats;
                   ■   a building in the course of construction;
                   ■   contents within the home which are not fixed;
                   ■   landscaping, trees, shrubs, hedges, or other plant life
                       (unless they would be covered under Part 5, Section 2.3
                       Landscaping rectification costs page 42);
                   ■   swimming pools that are freestanding, or which can be
                       moved from the insured address;
                   ■   temporary or mobile structures, including caravans;
                   ■   loose floor, wall or ceiling coverings which are not fixed; and
                   ■   fixed carpets.
Insured Address    is the location of the property which is shown on the
                   certificate.
 Insured Events    are the listed events in Part 4 against which you are covered
                   for damage, destruction or theft.
    In the Open    means not contained within a fully enclosed and locked
                   building. This expression includes anything contained beneath
                   a carport or verandah which has one or more open sides.
      Period of    is the period between the dates (normally in 12 monthly cycles)
     Insurance     indicated on your certificate, for which your policy is current.
     Pollutants    means any solids, liquids, gaseous or thermal irritants or
                   contaminants including but not limited to smoke, vapour, soot,
                   fumes, acid, alkalis, chemicals and waste (which includes any
                   material to be recycled, reconditioned or reclaimed).
         Premium   is the amount you pay annually for your insurance policy
                   (which includes any mandatory government charges which are
                   payable). We may offer you the option of paying the premium
                   by regular instalments.



                                                                                         25
     Part 3

          Rainwater    means
                       ■   rain falling naturally from the sky; and
                       ■   rainwater runoff over the surface of the land (but not after it
                           has disappeared beneath the surface of the land).
                       It does not mean flood.
           Security    are security devices (such as, but not limited to, deadlocks,
          Measures     keyed window locks, window grilles) or security systems (such
                       as local or monitored burglar alarm systems) that have been
                       fitted to the building at the insured address.
       Special Limit   are
              Items    ■   pictures, portraits or artworks;
                       ■   watches, items of jewellery, or gold or silver objects;
                       ■   furs;
                       ■   individual components of photographic equipment,
                           binoculars or portable video equipment;
                       ■   registered or licensed firearms, or firearms where the owner
                           needs to be licensed; and
                       ■   documents or collections of any kind.
                       When you make a claim for these items we apply a limit
                       of $1,000 to each item unless the item appears on your
                       certificate as specified contents.
                       Special limit items are also
                       ■   accumulated computer software; and
                       ■   an accumulation of recorded media (for example, music or
                           films stored on compact discs, DVDs, records or tapes).
                       When you make a claim for these accumulations we apply a
                       limit of $1,500 to each accumulation unless the accumulation
                       appears on your certificate as specified contents.
                       An overall limit applies for special limit items of 20% of the
                       contents sum insured, or $10,000 (whichever is the lower
                       amount), unless the item claimed appears on your certificate as
                       specified contents.



26
Part 3

         Specified   are
         Contents    ■    special limit items which exceed the limits for these items
                          as defined in this Part of this policy; and
                     ■    individual contents items of specific value
                     which you have nominated and which are individually itemised
                     on the certificate.

            Storm    is
                     ■    a violent wind (which includes cyclones), sometimes
                          combined with thunder, heavy falls of rain, hail or snow; and
                     ■    thunderstorms or hailstorms, sometimes accompanied by
                          heavy falls of rain or snow.

                     It is not persistent bad weather or heavy or persistent rain
                     by itself.
  Sum Insured        is the amount for which you have insured
                     ■    your home;
                     ■    your contents; and
                     ■    personal valuables items
                     as stated on the certificate.
   Unoccupied        means that either
                     ■    no-one is living in the home; or
                     ■    someone is living in the home but without your consent.

    You or Your      means
                     ■    the policyholder or policyholders named on the certificate;

                     ■    the policyholder’s spouse (legal or de facto); and

                     ■    a   person living at the insured address who lives with, and is
                          a   family member of
                          –    the policyholder; or
                          –    the policyholder’s spouse.

                     If more than one person is named as the policyholder, any one
                     of the named policyholders is understood to be authorised to



                                                                                            27
     Part 3

                      act on behalf of all named policyholders in respect of any
                      actions relating to this contract of insurance.

      We, Us or Our   means Commonwealth Insurance Limited ABN 96 067 524 216.




28
Part 4: What you are insured for


                         For your information: This part tells you what insured events you are
                         covered for.


                     1.1 Fire
For example, in      ✓ You are covered for damage or destruction caused by fire
the process of
fighting the fire,
                     and heat, smoke, or soot from the fire, and by the actions of
fire officers        persons seeking to put out the fire.
sometimes cause
damage to gain       When we use the term fire we mean that something has ignited
better access, and
you are covered
                     (that is, burst into flames) which was not intended to.
for this damage.
                     ✗ You are not covered for
The following
examples of          ■    heat or smoke damage that is not the result of a fire;
damage would not
                     ■    heat or smoke damage from a fire which has not
be covered by this
insured event:            escaped the normal bounds of a heater, fireplace,
• paintwork               oven, stove or similar item; and
  discoloured by
  heat from an       ■    fire caused by the ignition of any mineral spirit or
  oven
• vinyl flooring          dangerously flammable substance brought on to or kept at
  which has               the insured address in quantities which are in breach of any
  melted because
  a hot iron was
                          statutory regulations.
  dropped on it
• melting or         1.2 Explosion
  charring if they
  happen without     ✓ You are covered for damage or destruction caused by
  flames being
  involved
                     explosion.
• smoke stains to
  curtains or the    ✗ You are not covered for
  walls or ceiling   ■    damage or destruction caused by the explosion of any
  of a room from
  an open                 mineral spirit or dangerously flammable substance brought
  fireplace.              on to or kept at the insured address in quantities which are
                          in breach of any statutory regulations; and
                     ■    the cost of repairing or replacing the item which exploded
                          and caused the damage or destruction.



                                                                                                 29
     Part 4

     Your local            1.3 Lightning
     electricity supply
     authority can         ✓ You are covered for loss or damage caused by
     provide you with
                           ■   direct lightning strike; or
     information about
     lightning strikes     ■   lightning which strikes in the immediate vicinity of the insured
     and possible
     power surges.             address provided you obtain verification from your electricity
                               supply authority that lightning activity has occurred in the
                               immediate vicinity.

                           You are also covered if a power surge directly results from
                           lightning and
                           ■   a licensed and qualified electrical repairer certifies that the
                               damage to the property was caused by a power surge as
                               a result of lightning activity; and
                           ■   your electricity supply authority has confirmed lightning
                               activity in the immediate vicinity of the insured address.

                           ✗ You are not covered for damage or destruction caused by
                           lightning or power surge when the item damaged or destroyed is
                           ■   a lighting or heating element;
                           ■   a protective device, or a fuse;
                           ■   a switch, or an electrical contact at which sparking or arcing
                               occurs in its ordinary working application; and
                           ■   covered by any form of warranty.

     We will treat any     1.4 Earthquake
     damage or
     destruction which     ✓ You are covered for damage or destruction caused by
     occurs within 48      an earthquake.
     consecutive hours
     of the initial        If further damage or destruction occurs within 48 consecutive
     earthquake as one
     claim, and apply      hours of the initial earthquake, we will treat the subsequent
     the excess only       damage or destruction as the same event as the initial
     once.
                           earthquake.
     A tidal wave which
     results from          ✗ You are not covered for
     seismic activity is
     commonly              ■   damage or destruction caused by tsunami, or tidal waves
     referred to as a
     “tsunami”.
                               which result from earthquakes; and



30
Part 4

                      ■   the first $500 of any earthquake claim.
Our definition of
storm includes        1.5 Storm
cyclones.
                      ✓ You are covered for damage or destruction caused by storm.
Limited cover of
up to $500 applies    ✗ You are not covered for storm damage to, or destruction of
for storm cover
to contents in the    ■   contents (other than contents in the open) or the interior
open.                     of the home if the damage or destruction has not occurred
                          as a result of an opening made by the storm in the home;
                      ■   gates, fences, retaining walls, paths or driveways;
                      ■   swimming pool covers, or plastic or vinyl liners of
                          swimming pools; and
                      ■   shade cloth, solar covers or textile awnings and blinds.

                      ✗ Nor are you covered for storm damage or destruction caused
                      by water entering the home through an opening made for the
For example, if you   purpose of alterations, extensions, renovations or repairs.
leave a window
open which allows
rain to enter and     1.6 Rainwater
damage the walls,
you are not           ✓ You are covered for
covered because       ■   damage or destruction to the home; or
there was no
“storm-created        ■   damage to or destruction of contents or the interior of
opening”.
                          the home caused by rainwater, provided that it first enters
For example,
                          through an opening made by a storm.
if water enters
through cracks
in brickwork or
                      ✗ You are not covered for damage or destruction caused
a skylight with       by rainwater
inadequate
weather proofing      ■   entering the home through an opening made for the
and subsequently          purpose of alterations, extensions, renovations or repairs;
causes damage,
this would not        ■   to any external walls or doors;
be covered.
                      ■   to paintwork or any other exterior coatings of the home;
                      ■   which has seeped or percolated into the home;
                      ■   after it has disappeared beneath the surface of the land;
                      ■   to loose gravel or other surface material (including concrete)



                                                                                           31
     Part 4

     If soil behind a           on any driveway, path, paved area or sporting area (such as
     retaining wall             a tennis court); and
     expands as a
     result of water        ■   as a result of lack of maintenance or neglecting to keep
     saturation and             the home in good order and repair.
     causes collapse
     of the wall, this      ✗ Nor are you covered under this insured event for damage
     would not be
     covered.               or destruction caused by flood.
     Refer to Part 3 of
     this policy for the    1.7 Flash flooding
     definition of flood.   ✓ You are covered for damage or destruction caused by flash
                            flooding, but only where
                            ■   the flash flooding has been caused by a storm; and
                            ■   the flash flooding has occurred within 24 consecutive hours
                                of the storm having commenced.
                            ✗ You are not covered for
                            ■   flash flooding which occurs more than 24 consecutive
                                hours after the storm has commenced; and
                            ■   the first $1,000 of any claim.
                            The maximum amount we will pay is limited to:
                            ■   15% of the home sum insured, where the home is insured
                                by this policy; and
                            ■   25% of the contents sum insured, where contents are
                                insured by this policy.

     For example,           1.8 Bursting, Leaking, Discharging or Overflowing
     if the water inlet
     hose on your           ✓ You are covered for damage or destruction caused by the
     washing machine        sudden bursting, leaking, discharging or overflowing of a
     suddenly broke
                            ■   water main or water pipe;
     and damage
     resulted, you          ■   roof gutter, downpipe or road gutter;
     would be covered
     for the resulting      ■   fixed water tank, oil tank, hot water system or
     damage.                    air-conditioning system;
                            ■   fish tank or aquarium which is attached to the home or
                                incorporated into an item of furniture contained in the home;
                            ■   washing machine or dishwasher; and
                            ■   bath, basin, sink, tub or toilet system.



32
Part 4

                      ✓ If we accept a claim for this type of damage or destruction
                      we will also pay
                      ■   the reasonable exploratory costs associated with locating
                          the source of the damage and destruction if it is at the
                          insured address; and
                      ■   reasonable costs for restoring damage which occurs during
                          the exploratory work.
                      ✗ You are not covered for
                      ■   the cost of repairing or replacing the apparatus or pipe from
                          which liquid escaped and caused the damage or destruction; and
                      ■   exploratory or restoration costs if we have not accepted a
                          claim under this insured event.
For example,          ✗ Nor are you covered for destruction or damage caused by
overflowing of        or as a result of
a gutter which
is blocked by         ■   leaking or faulty shower recesses;
debris which has
accumulated over      ■   lack of maintenance or neglecting to keep an apparatus,
a period of time          tank or pipe in good order and repair;
would be an
example of lack       ■   water escaping from a water bed, a freestanding fish tank or
of maintenance,           aquarium, or garden hose;
and the resulting
damage would          ■   liquid escaping from the water catchment tray or other
not be covered.
                          component of a refrigerator or freezer;
We define what
                      ■   the gradual escape of liquid over a period of time; and
we mean by
“flood” in Part 3     ■   flood.
of this policy.

Limited cover of      1.9 Vandalism, Malicious damage, Riots or Civil
up to $500 applies    disturbances
for vandalism or
malicious damage      ✓ You are covered for damage or destruction caused by
to contents in        vandalism or malicious acts, provided you report all such
the open.
                      incidents to police.
For example,          ✓ You are also covered for damage or destruction caused
if an invited guest
                      during riots or acts of civil disturbance.
deliberately
vandalises the
property, this
would not be
covered by the
policy.


                                                                                           33
     Part 4

     Damage caused        ✗ You are not covered if the damage or destruction is caused by
     by tenants is
     available as an      ■   you;
     extension to our     ■   tenants or boarders; and
     Investment Home
     Insurance policy.    ■   anybody who is at the insured address with the express or
                              implied consent of
                              – you
                              – tenants or boarders
                              – any other person who lives at the insured address.

                          1.10 Theft
     Limited cover        ✓ You are covered for theft.
     of up to $500
     applies for theft    ✓ You are also covered for any damage or destruction which
     of contents in
     the open.
                          happens as a result of theft or any attempted theft.
     Theft by tenants     ✗ You are not covered for theft or attempted theft
     is available as an
     extension to our     ■   from any part of the home which is lent, let or sub-let by
     Investment Home          you to any other person;
     Insurance policy.
                          ■   from a residential home which is unoccupied;
     We advise you in
     Parts 2 and 3 of     ■   from the insured address when the main residential home
     this policy about        at that address is not sufficiently furnished for normal living
     what we mean by
     “unoccupancy”            purposes;
     and what
                          ■   by any person who is at the insured address with the
     restrictions
     in cover apply.          express or implied consent of you or a person who lives at
                              the insured address; and
                          ■   which has not been reported to the police.
                          ✗ Nor are you covered for theft of
                          ■   cash, treasury notes, bank notes, savings or gift certificates,
                              stamps, money orders, postal notes and bonds unless there
                              has been obvious forcible and violent entry to the home;
                          ■   tools of trade from a vehicle; and
                          ■   any other contents from your motor vehicle unless the
                              vehicle was:
                              – within the boundaries of the insured address and was
                                securely locked, and there was obvious forcible and



34
Part 4

                           violent entry to the vehicle, or
                         – in a securely locked garage at the insured address and
                           there was obvious forcible and violent entry to the garage.

                     An additional excess of $100 (in addition to the amount shown
                     on your certificate as the excess) will apply to any claim for
                     theft or attempted theft.

                     If you have advised us that the home or contents are
                     protected by security measures, and as we have accepted
                     your insurance and calculated your premium on this basis,
                     you must
                     ■   maintain the security measures in efficient working order;
                         and
                     ■   activate all security measures and remove keys from all
                         locks at your home before leaving it without an occupant for
                         any period.

                     If you
                     ■   have installed security measures and theft occurs where
                         entry or exit is made through an unsecured or unlocked door
                         or window; or
                     ■   have installed a security system and theft occurs when the
                         security system has not been activated an additional
                         Unsecured Theft Excess of $300 will apply instead of the
                         additional $100 excess.

                     1.11 Impact
A road vehicle can   ✓ You are covered for damage or destruction as a result of
be described as a    sudden and violent impact at the insured address by any
vehicle capable of
carrying one or      ■   road vehicle, aircraft or waterborne craft or arising out of
more passengers
and designed to          their use;
be registered on     ■   space debris or debris from an aircraft, rocket or satellite;
public roads.
                     ■   animals and birds, through forcible bodily contact other than
It may be as small
as a motor cycle         pecking, clawing, chewing or eating;
or as large as a
                     ■   falling trees or any parts of them which fall; and
prime mover.



                                                                                         35
     Part 4

                           ■   television or radio masts, aerials or antennae that have
                               broken or collapsed.

                           ✓ If the damage or destruction at the insured address
                           is caused by a vehicle, and you provide us with
                           ■   the registration number of the vehicle; and
                           ■   the driver’s name and current address, we will not apply
                               an excess to any claim which results from the damage
                               or destruction.

                           ✓ If we accept a claim for impact damage by a falling tree or
                           any part of it, we will also pay for removal and disposal of the
                           fallen tree or part which is on your property, and any other part
                           of the tree which we decide should be removed to prevent
                           further impact damage at the insured address.

     If you arrange to     ✗ You are not covered for
     have any trees
     lopped or             ■   removal of a tree stump which is still embedded
     removed, you              in the ground;
     should make sure
     that the person       ■   removal or disposal of any tree or part of it (fallen or
     doing the tree            otherwise) unless we accept a claim for impact damage
     lopping or removal
     has legal liability       by that tree or the part of it which fell;
     cover in case their
                           ■   damage arising from tree lopping or felling of trees that you
     actions damage
     your property.            do yourself or is done with your consent;
                           ■   damage to driveways or paths caused by the weight
                               of a vehicle; and
                           ■   the cost of repairing or replacing television or radio masts,
                               aerials or antennae which have broken or collapsed if the
                               mast did not break or collapse due to an insured event for
                               which cover is provided in this part of this policy.

                           1.12 Accidental Breakage of Glass or Sanitary Fittings
                           ✓ You are covered for the reasonable costs of repair or
                           replacement of:
                           ■   glass in a window, skylight, door or solar hot water system
                               which forms part of your home;



36
Part 4

                      ■   mirrors, other than hand-held mirrors;
                      ■   glass fish tanks or aquariums which are enclosed and
                          form part of an item of furniture, or which are attached
                          to your home;
                      ■   fixed glass in contents items insured under this policy,
                          including glass table tops whether fixed or unfixed;
                      ■   glass in a fixed light fitting (but not globes or tubes);
                      ■   porcelain, ceramic or vitreous china basin, sink, bath,
                          toilet bowl or toilet cistern; and
                      ■   fibreglass or acrylic (or similar synthetic material)
                          shower base
                      caused by accidental breakage.
                      ✓ Where it is necessary to remove tiles to enable replacement of
                      a fibreglass or acrylic (or similar) moulded shower base following
                      damage for which a claim has been accepted under this policy,
                      we will also pay the cost of removal and replacement of up to
                      2 rows of tiles.
                      ✓ If we accept a claim for accidental breakage of any item, we
                      will also accept the cost of repairing or replacing any other item
                      which is cut, torn, scratched or stained as a direct consequence
                      of the accidental breakage provided such other item is insured
                      under this policy.
For example, if the   ✗ You are not covered for accidental breakage of:
glass door of your
microwave oven        ■   any item when the breakage does not extend through the
breaks while the          entire thickness of the item;
oven is being
used, this would      ■   cooktops or cooking utensils, either ceramic, glass or pottery;
not be covered.
                      ■   ceramic tiles;
                      ■   glass in clocks or pictures;
                      ■   glass in items normally carried by hand;
                      ■   glass in electrical appliances including the picture tube
                          or screen of a television or computer monitor;
                      ■   fish tanks not attached to the home or not incorporated into
                          an item of furniture;



                                                                                            37
     Part 4

                         ■   vases, ornaments, figurines, crockery, china, glassware or
                             crystalware unless your policy is extended to include Prime
                             Plus cover for your contents (Part 6, Section 4);
                         ■   glass in a glass house or conservatory, or in a swimming
                             pool fence;
                         ■   any item which was already damaged or in defective
                             condition prior to the breakage; and
                         ■   heat resistant glass in ovens, stoves or heaters which breaks
                             whilst the oven, stove or heater is being used.

     The cover           1.13 Burning out of domestic electric motors
     only applies to
     domestic electric   ✓ You are covered, to a maximum of $1,000, and subject
     motors. This        to a contribution by you as set out below, for
     means that if any
     motor is used in    ■   the cost of repairing the wiring of any household domestic
     conjunction with        appliance motor which forms part of your
     any business,
     trade or                – home, when the home is insured by this policy
     profession,             – contents, when contents are insured by this policy; and
     no cover would
     apply under this    ■   costs which may be involved in removing and reinstalling
     insured event.          the motor
                         caused by the actual burning out of the wiring of the motor
                         by electrical current.

                         Where a licensed repairer certifies that the motor requires
                         replacement, the most we will pay is what we would have paid
                         if the motor was repaired.

                         As electrical motors have a limited useful working life, you will
                         be required to contribute to the total cost (including labour) of
                         repair or replacement of the motor if it is 3 or more years of
                         age. Your contribution will be calculated as a percentage of the
                         claimable repairs, according to the age of the motor, as follows:
                         ■   Up to 3 years old                No contribution;
                         ■   3 years old                      20% contribution; and
                         ■   Each additional year             7.5% additional
                             after 3 years                    contribution.



38
Part 4

For example,         Your maximum contribution will not exceed 75% unless
if a motor is 5
years old your       the motor is a sealed or semi-sealed refrigeration unit in
contribution would   an airconditioner, refrigerator or freezer and is more than
be 20%
+ 7.5% + 7.5%        15 years old.
= 35% of the total
allowable cost.      If the sealed or semi-sealed refrigeration unit is more than
The way your
                     15 years old (from the original date of manufacture), no claim
claim would be       will be payable under this component of this policy.
settled would be
shown as:            An excess will apply in addition to your contribution.
Cost of repairs
less:                ✗ You are not covered for damage or destruction of any part
parts not covered    or component of
= Sub Total
less: your           ■   television sets, television games, video recorders or players,
contribution             computers or computer games, or facsimile machines;
less: excess
= Amount Payable     ■   radios, compact disc players, sound recording and playing
by us.
                         equipment, amplifying or transmitting devices or any other
                         electronic machine, device or instrument; and
                     ■   microwave ovens.

                     ✗ Nor are you covered for damage or destruction of
                     ■   any machine or appliance which is used in conjunction with
                         a business, trade or profession;
                     ■   lighting filaments or heating elements;
                     ■   fuses or protective devices;
                     ■   electrical contacts or switches;
                     ■   non-electrical components such as bearings, seals,
                         solenoids and re-gassing;
                     ■   any additional costs arising from loss of use of the machine
                         or appliance, other than spoilage of frozen food; and
                     ■   motors under any form of warranty.




                                                                                          39
     Part 5: Prime Home Cover

                  For your information: There are four sections in this part of the
                  policy. Each section should be read in conjunction with the others.
                  The sections are:
                  Section 1 What your home is covered for
                  Section 2 Additional Prime Home cover benefits
                  Section 3 Prime Plus Home cover
                  Section 4 Strata Title Owner’s cover

                  For further details on “What the policy doesn’t cover” see pages 69
                  to 73 and “How we will handle your claim” see pages 74 to 87.


              Section 1 – What your home is covered for
              ✓ Your policy covers the cost of repairing or replacing the
              home when your certificate shows that the home is insured
              by this policy and
              ■    it is damaged or destroyed, or any part of it is stolen; and
              ■    the cause and circumstances of the damage, destruction or
                   theft are included in one or more of the insured events set
                   out in Part 4 of this policy; and
              ■    the damage, destruction or theft occurs at the insured
                   address.

              If the cause and circumstances of the damage, destruction
              or theft
              ■    are not referred to in the insured events in Part 4 of this
                   policy; or
              ■    are specifically excluded under either this part, Part 4 or
                   Part 10 of this policy,
              you may not be able to claim.




40
Part 5

         Section 2 – Additional Prime Home cover
         benefits
         2.1 Professional fees, Mortgage discharge costs,
         Fire extinguishment costs, Demolition expenses and
         Debris removal
         ✓ Where damage to or destruction of the home has occurred
         as a result of an insured event, you are also covered for
         ■   architectural, engineering and surveying fees in respect
             of the rebuilding or repair;
         ■   legal costs associated with discharging any mortgage on
             the home following settlement of a claim for its total loss;
         ■   fire extinguishment costs; and
         ■   cost to demolish any part of the home, if necessary, and
             removal of the debris, but only where these costs relate
             directly to the damaged property.
         We will only pay these costs if the sum insured shown on the
         certificate which was current at the time of the destruction or
         damage has not been totally exhausted in the settlement of
         the claim.

         2.2 Alternative accommodation expenses
         ✓ If damage or destruction means your home is unable to
         be lived in, you are covered for the reasonable rental costs
         of a temporary residence of similar rentable value for you,
         your family, and your pets.
         This is provided
         ■   you own and occupy the home at the time the damage
             or destruction occurs; and
         ■   the damage or destruction is due to an insured event
             for which a claim has been accepted under this policy.

         ✓ To assist you with initial accommodation needs, we will make
         an extra payment equal to one week’s reasonable rental cost,
         provided



                                                                            41
     Part 5

                          ■   the time taken to repair the damage or destruction is greater
                              than 7 days; and
     For example,         ■   you provide written evidence that the costs have been
     if you are unable        incurred by you.
     to live in your
     home for three       ✓ We will pay for the temporary accommodation of your pet
     weeks following
     a fire in the
                          for the costs you actually incur, up to a maximum amount of
     kitchen while the    $250.
     repairs are being
     carried out, we      ✓ We will pay these costs where the cover you have is
     will pay the         “New for Old” Replacement cover (for more details see Part 11,
     equivalent of four   page 77), and they will be paid in addition to any other amounts
     weeks rent if you    which are paid or agreed in relation to damage to or destruction
     have had to pay to
     live in temporary    of the home.
     rented premises
     during that time.    Where your certificate shows that the cover which applies is
                          “Indemnity” cover (for more details see Part 11, page 79), we will
                          only pay these costs if the sum insured shown on the certificate
                          which was current at the time of the damage has not been
                          totally used.
                          ✓ The amount we will pay is the amount the home could have
                          been rented for, and we will pay this amount for the period from
                          the time the home is unable to be lived in as a result of the
                          damage and while it is being replaced, rebuilt or repaired,
                          up to a maximum period of 12 months.
                          The most we will pay for alternative accommodation expenses
                          is an amount equal to 10% of the home sum insured.

                          2.3 Landscaping rectification costs
                          ✓ Where fixed trees, plants or shrubs have been damaged as a
                          result of an insured event, we will pay landscaping rectification
                          costs including replacement of fixed trees, plants or shrubs
                          which cannot be saved, up to a maximum of
                          ■   $200 for any individual tree, shrub or plant; and
                          ■   $2,000 in any one period of insurance.
                          ✗ We will not pay for
                          ■   loss or damage caused by storm, rainwater or flash flooding;
                              and
                          ■   theft of portable or potted trees, plants and shrubs.



42
Part 5

                      Section 3 – Prime Plus Home cover
                          For your information: Prime Plus cover is an additional cover option
                          to your Prime Home cover. It involves payment of extra premium,
                          and your certificate will show whether or not your policy includes
                          this option.

                          Prime Plus Home cover has four cover components:
                          3.1 Accidental Damage to the Home
                          3.2 Essential modifications
                          3.3 Preparation of new Title Deeds
                          3.4 Storm damage to gates, fences or walls
                      This section of this policy only applies if you have requested
                      Prime Plus cover and it is shown on your certificate.

For example,          3.1 Accidental Damage to the home
• children
                      ✓ In addition to the cover provided by the insured events,
  bouncing on a
  bed and falling     we will also cover the cost of repairing or replacing that part
  into the wall       of the home which suffers physical loss, damage or destruction
  which results in
  a large hole in     caused by an accident which occurs at the insured address.
  the gyprock wall
  lining              ✗ If the cause and circumstances of the loss, damage or
• a child’s bicycle   destruction are
  crashing into a
  garage door and     ■    noted as not being covered under any of the insured events
  severely denting         in Part 4 (What you are insured for); or
  it would be
  considered to be    ■    already excluded in Part 10 (What the policy doesn’t cover),
  damage caused
  by an accident.     you are not covered under this Section 3.1 of this policy.

                      ✗ Nor is there cover for accidental damage caused by
                      or attributable to
                      ■    rust, corrosion, gradual deterioration, depreciation
                           or wear and tear;
                      ■    atmospheric conditions, mould, mildew or rot;
                      ■    structural or inherent defects in the home, faulty design,
                           or faulty workmanship in its construction, or lack of
                           maintenance;



                                                                                                 43
     Part 5

              ■   incorrect siting of the home, or demolition ordered by
                  Government or Public or Local Authorities due to a failure to
                  obtain the necessary permit in connection with your home;
              ■   water entering the home through an opening made for any
                  building, renovation or repair work;
              ■   water entering the home because of a structural defect,
                  faulty design or faulty workmanship when the home was
                  constructed, altered or renovated;
              ■   rats, mice and vermin, termites, insects or birds;
              ■   roots from trees, plants, shrubs or grass;
              ■   scratching, chipping or denting; and
              ■   any process of cleaning involving the use of chemicals other
                  than domestic household chemicals.

              The most we will pay for any claim for accidental damage
              to the home is an amount equivalent to
              ■   10% of the sum insured for the home at the time
                  of the damage; or
              ■   $30,000
              (whichever is the lower amount).

              You must pay the first $500 of any destruction, loss or damage
              which is incurred as a result of any accidental damage and for
              which a claim has been accepted under this section of this policy.

              3.2 Essential modifications
              ✓ We will pay for the additional cost of modifying your home
              due to your permanent paraplegia or quadriplegia provided that:
              ■   a registered medical practitioner confirms your paraplegia
                  or quadriplegia is permanent; and
              ■   your paraplegia or quadriplegia has occurred as a direct
                  result of loss or damage to your home by an insured event
                  for which a claim under this policy has been accepted; and
              ■   the home is your principal place of residence.



44
Part 5

         When we use the terms “paraplegia” or “quadriplegia” we mean
         paraplegia or quadriplegia which continues for a period of 12
         months and is then diagnosed to continue for an indefinite period.
         We will pay these costs up to a maximum amount of $10,000.

         3.3 Preparation of new Title Deeds
         ✓ We will pay for the cost of preparing new title deeds for your
         home if your title deeds are accidentally lost or damaged due
         to an insured event while they are
         ■   at the insured address; or
         ■   held in a secure envelope or a safe deposit box at a bank,
         up to a maximum amount of $2,000.

         3.4 Storm damage to gates, fences or walls
         ✓ We will pay for damage or destruction caused by storm to:
         ■   gates, fences or walls that are attached directly to, and are
             part of, the structure of the home;
         ■   gates, fences or walls that are not attached directly to, and
             are not part of, the structure of the home, but only for any
             section of a gate, fence or wall made of brick, stone, metal
             or frame supported corrugated fibrous material. The frame
             supporting the corrugated fibrous material must be made of
             brick, stone or metal;
         ■   gates, fences or walls that are not attached directly to, and
             are not part of the structure of, the home, which are made
             of timber. We will only pay for timber gates, walls or fences
             which are 15 years old or less; and
         ■   freestanding fences that do not have a supporting frame
             but only if these fences are made from corrugated fibrous
             materials and have been constructed and installed according
             to the manufacturer’s specifications.
         The most we will pay for gates, fences or walls damaged by
         storm is your legal proportion of the costs of the gate, fence or
         wall, limited to a maximum amount of $1,000.



                                                                              45
     Part 5

              Section 4 – Strata Title Owner’s Cover
                  For your information: Strata Title Owner’s Cover is applicable for a
                  property that is part of a legislative scheme which provides for the
                  subdivision, management and occupation of buildings and land with
                  shared property, for example home units, town houses, strata titles
                  (a “shared scheme”).

                  If your property is part of a legislative scheme (such as a Strata Title)
                  and is mortgaged, the finance provider may require you to take out
                  cover to protect the amount owing to them by you.

                  It is also available as a supplement to your proportion of the shared
                  scheme cover if you feel the level of cover may be insufficient.

              When your certificate states under the heading Home that
              “Strata Title Owners’ Cover applies”, the lot that is subject to
              the Strata Title Owners’ Cover is covered in accordance with
              this policy for loss or damage caused by the insured events.

              4.1 Specific definitions for Strata Title Owner’s Cover
              This clause sets out the meaning of words and phrases we use
              for Strata Title Owners’ Cover and variations or additions to the
              meanings of words we frequently use in this section of this policy.

              ■    Home is varied to mean the residential structure containing
                   the lot and your owners’ fixtures;
              ■    Owners’ fixtures means a fixture that
                   – is built on or attached to your lot after registration
                     of the plan for the shared scheme, and
                   – forms part of your lot,
                   but not the common property;
              ■    Lot means
                   – the space inside the walls, floor and ceiling of your unit
                     and garage or storage unit that is part of your unit
                     entitlement under the shared scheme, and
                   – owner’s fixtures,
                   but not common property;
              ■    Mortgage means the mortgage affecting the lot; and



46
Part 5

         ■   Shared scheme means a legislative scheme which provides
             for the subdivision, management and occupation of buildings
             and land with shared property (for example, home units,
             town houses and strata titles).

         4.2 What you are covered for
         ✓ We will cover you if your lot is
         ■   Damaged or destroyed by an insured event; and
         ■   the Body Corporate which administers the shared scheme
             has not insured or has not sufficiently insured the loss or
             damage; and
         ■   the loss or damage is not excluded in either Part 4 or
             Part 10 of this policy.

         4.3 Limits on what we will pay
         ✓ The amount we will pay is the lesser of
         ■   the sum insured shown on your certificate;
         ■   the difference between the repair or rebuilding cost and the
             amount covered by this policy which applies for the shared
             scheme; or
         ■   the amount owing under your mortgage at the time of the
             loss or damage.

         When we make a payment to a mortgagee, the rights of the
         mortgagee under the mortgage will be assigned to us.




                                                                            47
     Part 6: Prime Contents cover

                  For your information: There are five sections in this part of the policy.
                  Each section should be read in conjunction with the others. The
                  sections are:
                  Section 1          What your contents are covered for
                  Section 2          Specified Contents
                  Section 3          Additional Prime Contents cover benefits
                  Section 4          Prime Plus Contents cover
                  Section 5          Limits on payment for some contents items

                  For further details on “What the policy doesn’t cover” see pages 69
                  to 73 and “How we will handle your claim” see pages 74 to 87.


              Section 1 – What your contents are covered for
              ✓ Your policy covers the cost of repairing or replacing your
              contents when your certificate shows that contents are
              insured by this policy and
              ■    they are damaged, destroyed, or stolen; and
              ■    the cause and circumstances of the damage, destruction
                   or theft are included in one or more of the insured events
                   set out in Part 4 of this policy; and
              ■    the damage, destruction or theft occurs at the insured
                   address.

              ✗ If the cause and circumstances of the damage, destruction
              or theft
              ■    are not referred to in the insured events in Part 4 of this
                   policy; or
              ■    are specifically excluded under either this part, Part 4 or
                   Part 10 of this policy,
              you may not be able to claim.




48
Part 6

                      Section 2 – Specified Contents
                       For your information: When you make a claim for contents, we may
                       apply certain limits and restrictions to the amount we pay (for
                       example, collections, or contents in the open). If the contents you
                       claim for are special limit items, we apply additional limits and
                       restrictions to the amount we pay.

                       If you would like a special limit item to be more fully covered than
                       they would normally be under the limits which apply, then you
                       should ask that it be covered as a Specified Contents item. If we
                       agree, the item will be listed on your certificate and shown
                       separately as a Specified Contents item.

                       In this section of the Contents cover part of the policy we describe:
                       2.1 Why you should consider specifying some of your contents
                       2.2 What your Specified Contents are covered for


The type of items     2.1 Why you should consider specifying some
which comprise        of your contents
“special limit
items” are shown      For general contents, coverage for special limit items is
in Part 3 of the
policy.               limited to the value of each item stolen, damaged or destroyed
For example,
                      up to an amount equal to the individual limit defined in Part 3 of
if your contents      this policy for that particular item or collection.
are insured for
$40,000 and           An overall limit applies for special limit items of 20% of the
special limit items
worth $12,000         contents sum insured, or $10,000 (whichever is the lower
are stolen, the       amount), unless the item claimed appears on your certificate
most we will pay
is $8,000 (being      as a specified contents or a Personal Valuables Customised
20% of $40,000,       cover item.
and lower than
$10,000).             If you have any special limit items which have individual or
In addition to the    overall values greater than the limits set out, and you wish to
items mentioned,
you may consider
                      be covered for their full replacement value, you can request
listing other         those items to be specified on your policy.
unusual, unique
or expensive
items.




                                                                                               49
     Part 6

     If you want any      2.2 What your Specified Contents are covered for
     items covered for
     while they are       ✓ When you have requested specified contents cover and
     outside the          the details appear on your certificate, you are covered for loss
     boundaries of your
     home, the item       or damage to those specified items caused by insured events
     may be able to be    which occur at the insured address, up to the amounts
     covered under
     Personal             specified on your certificate for the respective items.
     Valuables cover,
     for an additional    Specified contents items are not included in the payment
     premium.             limits set out for special limit items defined in Part 3 of this
     Personal             policy. This means that for special limit items the maximum
     Valuables cover is
     detailed in Part 7   amount you are covered for will be the greater of
     of this policy.
                          ■   the nominated value or values detailed on your certificate if
                              the item has been listed as a specified contents item; and
                          ■   the limits set out for special limit items defined in Part 3
                              of this policy.

                          Section 3 – Additional Prime Contents cover
                          benefits
                          3.1 Fire extinguishment costs and Debris removal
                          ✓ Where damage or destruction has occurred to contents
                          contained in the home at the insured address as a result of
                          an insured event, you are also covered for
                          ■   fire extinguishment costs; and
                          ■   cost to remove the debris, but only that proportion which
                              relates directly to the contents which are damaged or
                              destroyed.

                          We will only pay these costs if the sum insured shown on the
                          certificate which was current at the time of the destruction or
                          damage has not been totally exhausted in the settlement of
                          the claim.




50
Part 6

                     3.2 Contents in Transit
                     ✓ When contents insured by us are being carried by you while
                     you are away from the insured address and in transit
                     to another location within Australia, you are covered,
                     ■   for up to 20% of the contents sum insured, for loss, damage
                         or destruction arising from
                         – fire, explosion or lightning
                         – earthquake
                         – storm; and
An example           ■   for up to 5% of the contents sum insured, for loss, damage
of forced entry          or destruction arising from
would be the
damage which             – theft from a building following forced and violent entry
may have been
done to the                to the building
building or to the       – theft from a locked vehicle within a building following
vehicle when the
thief or thieves           forced and violent entry to the vehicle.
forced their way
into it.             ✗ You are not covered under this additional benefit for theft,
                     damage or destruction
You should
consider Prime       ■   which occurs outside Australia;
Personal
Valuables cover      ■   of contents in a building used for furniture storage;
for individual
items that you       ■   while the contents are being transported in any
often take with          removalist vehicle;
you away from
your home.           ■   of cash or other negotiable instruments;
                     ■   of tools of trade or other equipment you use
                         to earn income;
                     ■   of video or photographic equipment of any kind; and
                     ■   of mobile phones and lap top or portable computers.

                     3.3 Temporary Removal of Contents
                     ✓ When contents are
                     ■   deposited in any bank or recognised safe deposit facility;
                     ■   contained in any boarding house, hotel, motel, club, nursing
                         home or hospital where you are temporarily residing; and



                                                                                        51
     Part 6

                           ■   temporarily contained in any residential building (but not
                               whilst contained in any tent, vehicle, trailer, caravan,
                               watercraft or aircraft).
     Details of the        you are covered,
     extent of cover
     for these insured     ■   for up to 20% of your contents sum insured, for damage
     events can be             or destruction within Australia arising from all or any of
     found in Section 1
     of this part of the
                               the insured events listed in Part 4 of this policy other than
     policy.                   insured event 1.10 (Theft);
                           ■   for up to 5% of your contents sum insured, for loss,
                               damage or destruction within Australia arising from theft from
                               the building in which they are temporarily contained following
                               forced and violent entry to it.
                           ✗ You are not covered under this additional benefit for
                           ■   theft, damage or destruction which occurs outside Australia;
                           ■   contents in a building used for furniture storage;
                           ■   cash or other negotiable instruments; and
                           ■   tools of trade or other equipment you use to earn income.

                           3.4 Replacement of Locks
                           ✓ If a key or keys to an external door of the home are stolen
                           from the insured address and we agree to pay a claim for
                           theft under this policy, you are covered for the reasonable cost
                           of replacing the lock or locks operated by the key or keys, up
                           to a maximum amount of $250.
                           ✗ You are not covered for the cost of replacing a key or lock
                           when a key is lost, or if the key is stolen from somewhere other
                           than the insured address.

                           3.5 Spoilage of Frozen Food
                           ✓ When your contents are insured by us, you are covered
                           for up to $500 for spoilage of frozen foods contained in a
                           domestic deep freezer or the freezer compartment of a
                           domestic refrigerator at the insured address arising from
                           or as a result of



52
Part 6

         ■   mechanical or electrical breakdown of the refrigeration unit
             or its temperature control device;
         ■   accidental damage to the refrigeration unit or its temperature
             control device;
         ■   failure of the electricity supply to the refrigeration unit; and
         ■   the actions of a thief or burglar.

         ✗ You are not covered for any loss, damage or deterioration
         caused by or arising from or as a result of
         ■   flood;
         ■   strikes;
         ■   defrosting, or leaving the freezer door open or ajar;
         ■   the deliberate, accidental or inadvertent switching off of the
             power supply to the home or to the refrigeration unit; and
         ■   failure of a freezer or refrigeration unit which is more than
             15 years old.

         3.6 Loss or Theft of Credit Card
         ✓ If your credit card or automatic teller machine card is lost
         or stolen during the period of insurance, you are covered for
         up to $500 for any one occurrence of loss or theft of one or
         more of your cards for amounts you are legally liable to pay as
         the result of fraudulent use of your card.

         In order to obtain reimbursement under this additional benefit, it
         is necessary that you have complied with the terms and
         conditions under which the card was issued.

         ✗ You are not covered under this additional benefit when the
         person fraudulently using the credit card is
         ■   you;
         ■   a tenant or a boarder; and
         ■   your domestic employee.




                                                                                53
     Part 6

                          Section 4 – Prime Plus Contents cover
                              For your information: Prime Plus cover is an additional cover option
                              to your Prime Contents cover. It involves payment of extra premium,
                              and your certificate will show whether or not your policy includes
                              this option.
                              Prime Plus cover for your contents has four cover components:
                              4.1 Accidental damage to contents
                              4.2 Visitors’ property
                              4.3 Fatal injury compensation
                              4.4 Stolen keys

                          This section of this policy only applies if you have requested
                          Prime Plus cover and it is shown on your certificate.

                          4.1 Accidental damage to contents
                          ✓ In addition to the cover provided by the insured events, we
                          will also cover the cost of repairing or replacing those contents
                          contained in the home which suffer physical loss, damage or
                          destruction caused by an accident which occurs at the
                          insured address.
                          ✗ If the cause and circumstances of the loss, damage or
                          destruction are
                          ■    noted as not being covered under any of the insured events
                               in Part 4 (What you are insured for); or
                          ■    already excluded in Part 10 (What the policy
                               doesn’t cover),
                          you are not covered under this Section 4.1 of this policy.
     You may wish to      ✗ You are not covered for accidental loss of or damage to:
     consider taking
     out Customised       ■    swimming pools and spas or their associated equipment
     or Packaged               or covers;
     cover under Part 7
     (Prime Personal      ■    property used for trade or business purposes;
     Valuables cover)
     for loss or          ■    special limit items, clothing or accessories; and
     damage to            ■    bicycles or sporting or recreation equipment when in use.
     personal property,
     clothing and other
     personal items.



54
Part 6

For Special Limit   ✗ Nor is there cover for accidental damage caused by or
items, you may
                    attributable to
wish to consider
taking out          ■   rust, corrosion, gradual deterioration, depreciation or wear
Customised cover
under Part 7
                        and tear;
(Prime Personal     ■   atmospheric conditions, mould, mildew or rot;
Valuables cover).
                    ■   structural or inherent defects in the contents, faulty design,
                        or faulty workmanship in their construction, or lack of
                        maintenance;
                    ■   water entering the property through an opening made for
                        any building, renovation or repair work;
                    ■   water entering the property because of a structural defect,
                        faulty design or faulty workmanship when the property was
                        constructed, altered or renovated;
                    ■   rats, mice and vermin, termites, insects or birds;
                    ■   roots from trees, plants, shrubs or grass;
                    ■   scratching, chipping or denting; and
                    ■   any process of cleaning involving the use of chemicals other
                        than domestic household chemicals.

                    Limits on what we will pay
                    ✗ For accidental loss or damage to
                    ■   vases, ornaments or figurines; and
                    ■   crockery, china, glassware or crystalware.
                    We will not pay more than $2,000 for each event which gives
                    rise to a claim under this section of this policy.
                    The most we will pay for accidental damage is an amount
                    equivalent to
                    ■   10% of the sum insured for the contents; or
                    ■   $30,000
                    (whichever is the lower amount).
                    You must pay the first $500 of any destruction, loss or damage
                    which is incurred as a result of any accidental damage and for
                    which a claim has been accepted under this section of this policy.



                                                                                         55
     Part 6

              4.2 Visitors’ property
              ✓ If property belonging to your guests, visitors or domestic
              servants is lost or damaged by an insured event when their
              property is temporarily in the building at the insured address,
              we will pay for the replacement of these possessions provided
              that we would have paid the claim if the lost or damaged
              property had belonged to you.

              ✗ We will not pay
              ■   if these possessions are already insured by their owners; or
              ■   for money or other negotiable instruments.

              The most we will pay for loss or damage to guests’ or visitors’
              property is $500 for each event, limited to a maximum of
              $2,000 in total in any one period of insurance.

              4.3 Fatal injury compensation
              ✓ We will pay compensation for death if during the period of
              insurance you suffer death by accident at the insured
              address as a result of visible bodily injury caused by
              ■   burglars or housebreakers; or
              ■   fire
              for which a claim has been accepted under this policy, and
              your death occurs within 90 days of the injury.

              The maximum amount we will pay during any one period of
              insurance is $10,000.




56
Part 6

         4.4 Stolen keys
         ✓ If a key or keys to an external door or external window of the
         home are stolen anywhere in Australia, and
         ■   you have reported the theft to the police; and
         ■   the keys had your address or other identifying information
             on them,
         you are covered for the reasonable cost of replacing the lock or
         locks operated by the key or keys, up to a maximum amount of
         $250.

         ✗ You are not covered for the cost of replacing a key or lock
         when a key is lost or misplaced.




                                                                            57
     Part 6

                          Section 5 – Limits on payment for some
                          contents items
                           For your information: When your contents are insured by us and we
                           accept a claim under the terms of the policy, payment limits apply to
                           some items in certain circumstances as set out below in addition to
                           limits which are detailed in other Parts of the policy.


     An example of        5.1 Cash and/or Negotiable Instruments
     visible forced and
     violent entry        ✓ Cover is limited to a maximum amount of $500 in total
     would be the         for theft of cash and negotiable instruments from the insured
     damage which
     may have been        address, provided that the theft occurs after visible forced and
     done to the          violent entry to the home in which the contents were contained.
     building when the
     thief or thieves     ✗ No payment will be made for theft of cash or negotiable
     forced their way
     into the building.   instruments if there is no visible evidence of forced and violent
                          entry having occurred.

                          5.2 Carpet and curtains
                          ✓ If your carpet or curtains are damaged due to one of the
                          insured events in Part 4 of this policy, you are covered for
                          restoration or replacement of the carpet or curtains but only in
                          the room, passage or hallway where the damage or destruction
                          occurred.

                          ✗ You are not covered for restoration or replacement of
                          undamaged carpet or curtains to achieve a match with the
                          carpet or curtains which have been restored or replaced.

                          5.3 Computer software
                          The most we will pay for accumulated computer software
                          is $1,500 unless the accumulation appears on your certificate
                          as specified contents.




58
Part 6

Individual limits,    5.4 Special Limit Items
and the type of
items which           For special limit items, cover is limited to the value of each
comprise ‘special
                      item stolen, damaged or destroyed up to an amount equal to
limit items” are
shown in Part 3       the individual limit defined in Part 3 of this policy for that
of the policy. For
                      particular item or collection.
example, if your
contents are
insured for           An overall limit applies for special limit items of 20% of
$40,000 and           the contents sum insured, or $10,000 (whichever is the
special limit items
worth $12,000 are
                      lower amount).
stolen, the most
we will pay is        5.5 Contents in the Open
$8,000 (being 20%
of $40,000, and       When your contents are in the open within the boundaries of
lower than
$10,000).             the insured address, cover for
The meaning of        ■   storm;
the phrase “in
the open” is          ■   vandalism or malicious damage; and
given in Part 3
                      ■   theft
of this policy.
If the item is        is limited to $500 in total per claim for loss, damage or
contained beneath     destruction.
a carport or
verandah which
has one or more       5.6 Collections
open sides, we
interpret this as     If part of a collection is stolen, damaged or destroyed, cover is
also being “in        limited to the lesser of
the open”.
                      ■   the cost of replacing the part concerned; or
A “collection” is
defined in Part 3     ■   the value that the part had as a proportion
of the policy and
includes any pair,        of the collection.
set or other
accumulation of       We will not pay the amount by which the value of the
objects that          collection may be reduced because it is incomplete and we
belong or are
displayed             will not pay to replace the entire collection.
together. It does
not include           The most we will pay for any collection is $1,000 unless the
accumulated           collection appears on your certificate as specified contents.
compact discs,
records or tapes.




                                                                                          59
     Part 6

              5.7 Tools of Trade
              When we refer to tools of trade we mean tools or other items
              you use in a trade, business or profession to earn an income.

              Cover is limited to a maximum of $1,000, and only applies
              while the tools of trade are contained in the home at the
              insured address.

              5.8 Unregistered motor cycles
              Cover for unregistered motor cycles with an engine capacity of
              125cc or less which are not registered or do not require
              statutory bodily injury cover to be taken out is limited to
              ■   the insured events of fire and theft only;
              ■   apply only while they are contained in the home at the
                  insured address; and
              ■   a maximum amount of $1,000.

              5.9 Accessories and spare parts
              Cover for accessories and/or spare parts of motor vehicles,
              caravans, trailers and boats which are not fitted to or being used
              with any motor vehicle, caravan, trailer or boat is limited to
              ■   apply only while they are contained in the home at the
                  insured address; and

              ■   a maximum amount of $1,000.

              5.10 Non-motorised watercraft
              Cover for watercraft, consisting of canoes, sailboards,
              surfboards, surf skis or other non-motorised watercraft less
              than 3 metres in length is limited to
              ■   apply only while they are contained in the home at the
                  insured address; and
              ■   a maximum amount of $1,000.




60
Part 7: Prime Personal Valuables cover

                         For your information: Personal valuables cover provides insurance
                         for personal items at or away from your home. It involves
                         payment of additional premium, which is calculated according to
                         the cover options you select and the items you insure.

                         The cover options are

                         ■ Customised cover (for listed individual valuable items)

                         ■ Packaged cover (for miscellaneous items of personal property,
                           with limited individual value)

                         It is a different and separate cover which is available to you as an
                         option if your contents are insured by us. It should not be
                         confused with cover for Specified Contents.

                         There are two sections in this part of the policy. Both sections
                         should be read in conjunction with each other.

                         Section 1 What you are covered for
                         Section 2 What personal valuable items are covered.
                         For further details on “What the policy doesn’t cover” see pages
                         69 to 73 and “How we will handle your claim” see pages 74 to 87.

                     Section 1 – What you are covered for
The nominated        ✓ When you have requested Personal Valuables cover and this
geographic area is   is shown on your certificate, then, subject to the excess and
Australia and New
Zealand. This can    other provisions of this policy, and up to the amounts shown on
be extended to       your certificate, your listed personal valuables items are
“Anywhere in the
World”, by paying
                     covered for accidental loss or damage which occurs, during the
an additional        relevant period of insurance, anywhere within the nominated
premium.             geographic area.
                     ✗ You are not covered for any loss, damage or destruction
                     arising from or as a result of
                     ■    wear, tear, depreciation, deterioration or the action of light;
                     ■    atmospheric conditions, mould, mildew or rot;




                                                                                                61
     Part 7

                            ■   insects or vermin;
                            ■   any process of cleaning, repairing, restoring or alteration;
                            ■   electrical or mechanical breakdown or overwinding;
                            ■   scratching or denting;
                            ■   the use of any item for any business, trade, profession or
                                income earning activity; and
                            ■   the use of sporting equipment.
     To be considered       ✗ Nor are you covered for loss, damage or destruction arising
     “obvious”, we          from or caused by
     would expect
     the forced entry       ■   theft from any motor vehicle left unattended (except in a
     to the vehicle to
     be visible and
                                securely locked garage) unless that theft was as a result of
     have resulted in           obvious forced and violent entry into the vehicle;
     some damage
     to the vehicle.        ■   disappearance when the cause cannot be established; and
                            ■   breakage of any article of a brittle nature (except jewellery).

                            Section 2 – What personal valuable items
                            are covered
                            2.1 Customised cover
     For example,           ✓ Customised cover applies to items which you have
     you may wish to        requested us to list separately, and which are shown
     take out cover for
     an engagement          individually on the certificate.
     ring you or your
     partner own and        These items are covered up to the sum insured specified for
     value highly.          each item in the certificate.
     If you lost the
     ring or one of         The sum insured for the respective item is the most we will
     the stones from        pay for that item, less any excess which may apply to the claim.
     the setting, it
     would be covered       In the event of a claim for a listed item being part or parts of a
     under this part
     of the policy.
                            pair, set or collection, we will only pay the lesser amount of
                            ■   a reasonable proportion of the sum insured for that item; or
     We will not pay to
     replace the entire     ■   the value of that part of the pair, set or collection.
     set or collection if
     only a part of it is
     lost or damaged.




62
Part 7

                      2.2 Packaged cover
For example:          ✓ Packaged cover applies to personal property, clothing and
items such as         other personal items usually carried or worn by you.
watches, writing
implements,
                      The most we will pay for any one item and in total for any one
briefcases,
electronic diaries,   annual period of insurance is limited according to the cover
handbags or           you have selected and which is shown on your certificate on
purses and
wallets could all     the following basis:
be considered as                                    Maximum             Limit per Period
items which could
                          Option                  cover per item          of Insurance
be insured under
packaged cover.           1                           $250                    $1,000

                          2                           $300                    $1,500

                          3                           $400                    $2,000

                          4                           $500                    $3,000

                      ✗ When we use the term “personal property” in this Section of
                      this policy, it does not mean or include
                      ■       cash, negotiable instruments or documents;
                      ■       credit cards or debit cards;
                      ■       contact lenses, hearing aids or dental appliances;
                      ■       portable car phones or mobile phones;
                      ■       bicycles, surfboards or sporting equipment;
                      ■       tents or camping equipment or their accessories;
                      ■       firearms (registered or unregistered), or knives which have
                              any blade longer than five centimetres;
                      ■       hand-held computer games, toys or hobby equipment;
                      ■       portable computers, fax machines or printers;
                      ■       personal items while being used in the course of a business,
                              trade or profession;
                      ■       tools of trade or professional instruments used in a business,
                              trade or profession;
                      ■       musical instruments which are used professionally; and
                      ■       a stamp or coin collection.



                                                                                               63
     Part 8: Domestic Workers
     Compensation Insurance
                           For your information: This cover option applies only for domestic or
                           similar workers employed in certain states and territories. It involves
                           payment of an additional premium, and is a different and separate
                           cover which is available to you as an option if your contents are
                           insured by us. There are three sections which are:

                           Section 1          New South Wales
                           Section 2          Australian Capital Territory, Northern Territory,
                                              Tasmania and Western Australia
                           Section 3          Claims Procedure for Domestic Workers
                                              Compensation Insurance
                          ✓ This cover is incorporated as an additional cover to your
                          Prime Contents insurance policy, and provides cover for
                          domestic or similar workers. If cover applies, and you have paid
                          the additional premium, your certificate will show that cover
                          applies under the heading “Domestic Workers Compensation”.

                          Section 1 – New South Wales
     If you live in       ✓ This section describes persons who are workers or
     Victoria,            deemed workers.
     Queensland or
     South Australia      It is a statutory policy (more particularly prescribed by clause 52
     and you have
     employees, you       of the Workers Compensation (General) Regulation 1995 and
     should check with    Form 4 in Schedule 1 of the Regulation by way of a variation of
     your local Workers
     Compensation         the general form of policy for employers) issued under NSW
     Authority to         Workers Compensation legislation and is only available in NSW.
     establish their
     requirements for     It will be fully reinsured by Allianz Australia Workers Compensation
     the insurance of     (NSW) ABN 17 003 087 545, under the terms of an Agreement
     domestic workers.
                          we have entered into with them.
                          The amount payable is governed by the laws of New South Wales
                          and the terms and conditions that apply to you are those
                          contained in clause 52 referred to above. A copy of the full
                          wording of the statutory policy will be provided to you on request.



64
Part 8

         Section 2 – Australian Capital Territory, Northern
         Territory, Tasmania and Western Australia
         ✓ This section describes persons who are workers or deemed
         workers under the relevant workers compensation legislation
         in the States of Tasmania and Western Australia, and the
         Territories of Australian Capital Territory and Northern Territory.
         The amount payable is governed by the laws and legislation of
         each State or Territory, and the terms and conditions that apply
         to you are those contained in the respective legislation.
         The risk will be issued by Allianz Australia Insurance Limited (‘Allianz’)
         ABN 15 000 122 850, as the approved insurer under the relevant
         Workers’ Compensation legislation in these jurisdictions, under the
         terms and conditions of an Agreement we have with them.

         Section 3 – Claims procedure for Domestic
         Workers Compensation Insurance
         What happens if a domestic worker is injured?
         If someone makes a claim for injury which happened while that
         person was working for you as a domestic worker, you must
         tell us as soon as possible.
         We will advise you how to contact Allianz, who will
         ■   record details of the claim and provide advice for quick
             medical attention for the injured worker;
         ■   arrange for the completion of claim forms and necessary
             supporting documentation;
         ■   advise you of the validity of the claim under the
             relevant legislation; and
         ■   manage the claim to finalisation including medical and lost
             wages costs in accordance with relevant legislation.
         Please note that the terms and conditions contained elsewhere
         in this policy do not apply to this Part 8 of this policy. Relevant
         terms and conditions applying to this section are contained
         within the statutory wordings referred to above.



                                                                                      65
     Part 9: Prime
     Legal Liability cover
                    For your information: The legal liability part of your policy helps
                    protect you against the possibility of considerable expense being
                    involved where you may be held to be legally responsible to pay
                    compensation for death or injury to other people, or damage to their
                    property, caused by your actions.
                    There are three sections in this part of the policy. Each section
                    should be read in conjunction with the others.
                    Section 1          What you are covered for
                    Section 2          How much you are covered for
                    Section 3          What you are not covered for

                Section 1 – What you are covered for
                ✓ You are covered for all damages, legal fees and disbursements,
                costs or expenses for which you become legally liable
                ■    as owner of the home (where the home is insured
                     by this policy); and
                ■    as occupier of the home (where the home is insured
                     by this policy)
                caused by an accident which occurs in the home or at the
                insured address, or
                ■    for claims arising from an accident which occurs anywhere
                     in Australia or New Zealand other than legal liabilities
                     incurred as owner or occupier of the home or at the insured
                     address (where contents are insured by this policy)
                which causes
                ■    death or bodily injury (including illness) to any person other
                     than you; or
                ■    physical loss of or physical damage to any property which is
                     not yours or which is not in your physical or legal control
                and which occurs during the period of insurance shown
                in the certificate.



66
Part 9

                    ✓ Where contents are insured by this policy, you are also
                    covered if the accident that gives rise to your legal liability is one
                    ■   that happens in the home or at the insured address, and
                    ■   you are held to be legally liable because you occupy the
                        home at the insured address as
                        – tenants or lessees, or
                        – owner and occupier of a strata title property.

                    Section 2 – How much you are covered for
                    ✓ Your cover is limited to the amount shown on your
                    certificate under the heading “Legal Liability” for each accident
                    that gives rise to a claim under this section of this policy.
                    ✗ We will not pay more than this amount on all claims arising
                    out of the same accident. However, we will pay reasonable
                    legal costs and expenses incurred with our consent in addition
                    to this amount.

                    Section 3 – What you are not covered for
                    ✗ You are not covered for legal liabilities
                    ■   for death or injury to you or your employees (other than a
                        person employed for part-time baby-sitting);
                    ■   for damage to your property, or to any property in your
                        physical or legal control;
                    ■   arising out of or as a result of any worker's compensation
                        legislation, industrial award or agreement, or statutory
                        accident compensation scheme; and
                    ■   for any fine or penalty, or punitive or exemplary damages.
If you conduct a    ✗ Nor are you covered for any legal liabilities arising from or as
business from the   a result of
insured address
which generates     ■   the transmission, directly or indirectly, of any illness, disease
an income, you          or medical condition including, but not limited to, Acquired
should take out
a separate legal        Immune Deficiency Syndrome (AIDS), AIDS Related Complex
liability cover         (ARC) or Human Immunodeficiency Virus (HIV);
for the business
operation.



                                                                                             67
     Part 9

                           ■   any business, trade or profession carried on by you, other
                               than part-time temporary care of children as a baby sitter;
                           ■   the ownership or occupation of any land or buildings
                               other than your legal liability as occupier of the home
                               at the insured address;
     If the alterations    ■   alterations to the home where the alteration cost exceeds
     to the home are
                               $25,000, during the time the alterations are in progress;
     likely to exceed
     $25,000, you          ■   the use, removal of or exposure to any asbestos product or
     should discuss
     with your builder         products containing asbestos;
     the insurance
                           ■   vibration or the weakening of or removal of or interference
     arrangements he
     has effected in           with support to land, buildings or other property;
     relation to the
     building works,       ■   erosion, subsidence or landslide;
     or consider
                           ■   your legal liability under a contract, or under the provisions
     taking out special
     contract works            of any agreement you have entered into, unless liability would
     insurance yourself,       have attached to you in the absence of such agreement;
     if required.
                           ■   the use of mechanically propelled vehicles (other than
                               garden implements, golf buggies and motorised
                               wheelchairs), or aircraft or aerial device; and
                           ■   the use of power driven watercraft or any watercraft which
                               exceeds 3 metres in length.

                           ✗ Nor are you covered for legal liabilities arising from or as a
                           result of
                           ■   the discharge, dispersal, release or escape of pollutants
                               from your premises into or upon land, the atmosphere or
                               any watercourse or body of water; or
                           ■   any costs and expenses incurred in the prevention, removal
                               or clean-up of such pollutants.

                           These pollutant exclusions shall not however apply if such
                           discharge, dispersal, release or escape is caused by a sudden,
                           identifiable, unexpected or unintended happening and takes
                           place in its entirety at a specific time and place during the
                           period of insurance.



68
Part 10: What the policy doesn’t cover

                       For your information: In addition to the specific exclusions which
                       apply in relevant parts of the policy, there are also exclusions which
                       apply to the policy overall.

                       There are two sections in this part of the policy. Both sections
                       should be read in conjunction with each other.

                       Section 1          General exclusions
                       Section 2          What is not insured by the policy.

                      Section 1 – General exclusions
                      ✗ “Exclusions” are those events and happenings for which
                      cover is not included in this policy. This means that you are not
                      covered for loss, damage or legal liabilities which arise from or
                      are as a result of

A tidal wave which
results from          1.1 Actions of the sea
seismic activity in
                      including tsunami, tidal waves, and high tide.
the ocean is
commonly
referred to as a      1.2 Application of heat
“tsunami”.
                      as a result of any property undergoing any process necessarily
Welding and
soldering, or the     involving the application of heat.
breakage of an
oven door while
the oven is in use,
                      1.3 Confiscation
are typical           or lawful seizure, nationalisation or requisition of the insured
examples of a
process involving     property or any part thereof, including the destruction of or
the application of    damage to property by or under the order of any government
heat.
                      or public local authority.

                      1.4 Erosion and earth movement
                      including subsidence, landslide (unless the subsidence or
                      landslide arises immediately from an earthquake or explosion),
                      mudslide, shrinkage, expansion or any other earth movement.



                                                                                                69
     Part 10

                       1.5 Flood
                       which is defined in Part 3 of this policy as the inundation of
                       normally dry land by water which
                       ■   overflows, or is released from; or
                       ■   escapes the normal confines of; or
                       ■   because of water that has already overflowed, escaped or
                           been released, is unable to enter
                       any lake, reservoir, dam, river, creek, stormwater channel, canal
                       or any other watercourse whether natural, altered or modified.

                       1.6 Hydrostatic pressure
                       being damage to swimming pools, swimming pool surrounds or
                       any other structure as a result of a change in the water table
                       below the ground or from emptying the pool or any other
                       cause.

     For example, if   1.7 Intentional damage, loss or injury
     you ask someone
     to specifically   caused by you, or a person acting with your consent, or
     damage your       caused by a tenant of your home or at the insured address.
     property, this
     would not be
     covered by        1.8 Nuclear activities
     the policy.
                       including the use, existence or escape of nuclear weapons,
                       material, or ionising radiation from, or contamination by
                       radioactivity from, any nuclear fuel or nuclear waste from the
                       combustion of nuclear fuel.

                       1.9 Structural defects
                       in the home, or faulty workmanship in its construction, or lack
                       of maintenance to the home or contents.

                       1.10 Tree lopping or felling
                       by you or a person acting with your consent (whether or not
                       your consent has been given in an express or implied manner).

                       1.11 Vermin, termites, insects or birds


70
Part 10

                     1.12 War
                     including invasion, acts of foreign enemies, hostilities or warlike
                     operations (whether war be declared or not), civil war, rebellion,
                     revolution, insurrection, civil commotion assuming the
                     proportions of or amounting to an uprising, military or usurped
                     power, any act of terrorism, or looting, sacking or pillaging
                     following any of these warlike, terrorist or rebellious acts.
                     Nor are you covered for any loss, damage, costs, expenses or
                     legal liabilities of whatsoever nature directly or indirectly caused
                     by, resulting from or in connection with any action taken in
                     controlling, preventing, suppressing or in any way relating to
                     this General Exclusion.

For example, an      1.13 Wear and tear, and lack of maintenance
overflowing gutter
which has been       including rust, corrosion and other signs of failure to keep the
blocked by           property in good repair, and normal wear and tear.
debris which has
accumulated over
a long period of     1.14 Computer software date-related problems
time would be an     being the inability of any electronic equipment, microchip,
example of a lack
of maintenance,      integrated circuit or similar device, or any computer software,
and the damage       which you own or for which you may be legally liable, to
which results
would not
                     satisfactorily deal with any information related to any computer
be covered.          date used otherwise than as representing that actual date.

                     Section 2 – What is not insured by the policy
                         For your information: In addition to the exclusions mentioned in
                         Section 1 of this part of the policy, it is important to note that the
                         policy does not provide cover for certain items or events.

                     ✗ This policy does not cover

                     2.1 Accidental loss or damage
                     unless the property is insured under
                     ■    Part 5, Section 3 (Prime Plus Home cover); or
                     ■    Part 6, Section 4 (Prime Plus Contents cover); or
                     ■    Part 7 (Prime Personal Valuables cover) of this policy.



                                                                                                  71
     Part 10

               2.2 Consequential losses
               or loss of profit except where it has been expressly included in
               this policy.

               2.3 Firearms
               which are unlicensed, unregistered, or which are not stored in
               accordance with current regulations.

               2.4 Gemstones
               unset precious and semi-precious stones, or gold or silver bullion.

               2.5 Matching décor
               being the cost of replacement of any undamaged part of your
               property to achieve a finish or appearance which matches the
               part which has been damaged and repaired or replaced.

               2.6 Motor vehicles or watercraft
               more specifically being
               ■   motor vehicles, caravans, trailers, aircraft or powered
                   watercraft;
               ■   motorcycles, other than unregistered motorcycles with an
                   engine capacity of 125cc or less which are included as
                   contents in Part 3 of this policy;
               ■   motorised self-propelled vehicles (other than motorised
                   wheel chairs, motorised golf carts or buggies, or lawn
                   mowing implements); and
               ■   accessories, components or parts fitted to or being used
                   with motor vehicles or motorised self-propelled vehicles,
                   motor cycles, caravans, trailers, aircraft or powered
                   watercraft.

               2.7 Pets
               or other livestock.



72
Part 10

For example,          2.8 Property which is not yours
rented televisions
or sound systems,     being items which are the property of
or Pay TV
equipment would       ■   tenants or boarders;
be covered by
the policy if there   ■   guests, friends or relatives, (unless you have Prime Plus
was a legal               cover for your contents); or
hire agreement
in place.             ■   any other person or organisation.

                      unless the items are the subject of a legal hiring or rental
                      agreement and would have been covered under this policy if
                      they were the property of you or your family.

                      2.9 Re-recording costs
                      being the cost of re-recording or re-storing or re-installing data
                      or other material on a computer, computer disk, tape or other
                      storage device.

                      2.10 Trade goods
                      being merchandise samples and stock in trade.

“Excess” is           ✗ Nor is there any cover under this policy
defined in Part 3
of the policy.        ■   for the amount shown on your certificate as excess on
                          claims made under this policy;
                      ■   for exclusions as set out in this policy, whether under Parts
                          4, 5, 6, 7, 8 or 9 of this policy;
                      ■   for any damage, destruction or theft which occurs before
                          your policy commences or after it is cancelled;
                      ■   where your property is simply mislaid or lost and the cause
                          is either unknown or is not specifically included
                          in this policy; and
                      ■   for any damage, destruction, theft or legal liability not
                          provided for in this policy.




                                                                                           73
     Part 11: How we will handle your claim

                               For your information: There are six sections in this Part of the policy.
                               Each section should be read in conjunction with the others.
                               Section 1          If you need to make a claim
                               Section 2          Proof of ownership, purchase or acquisition
                               Section 3          How we will settle your Prime Home cover claim
                               Section 4          How we will settle your Prime Contents cover claim
                               Section 5          How we will settle your Prime Personal
                                                  Valuables claim
                               Section 6          How we will apply the excess

                           Section 1 – If you need to make a claim
                           1.1 What you need to do
                           You must
                           ■    tell us as soon as possible of any claim under this policy
                                and, if we request it, complete a claim form or give us
                                written details of any loss, damage or injury within 30 days
                                of it happening;
                           ■    forward to us any letter or claim on you either directly from
                                or on behalf of a third party, relating to the incident;
                           ■    provide us with all reasonable proof that we require,
                                in respect of items of expense that are claimable
                                under this policy;
                           ■    keep items that have been damaged and make them
                                available for inspection or assessment of repair costs, if
                                necessary, wherever possible; and
     For information       ■    provide all information we may reasonably request, and
     on what we mean            provide assistance necessary for us to:
     by “reasonable
     proof”, refer to           – recover from a third party in respect of a claim paid to
     Section 2 in this            you or a claim paid by us on your behalf; or
     part of the policy.
                                – defend a claim against you in your name or on your
                                  behalf. This could include your attendance in court.



74
Part 11

                     You must also
                     ■   tell us of any other insurance that applies to the claim;
                     ■   make an immediate report to the police if the loss, damage
                         or destruction is attributable to
                         – impact by any vehicle (other than a vehicle driven by you
                           or a member of your family), or
                         – theft (whether actual or suspected) or
                         – malicious damage or vandalism; and
                     ■   allow us to take possession of damaged property which is
                         the subject of a claim, if we choose to do so.
                     If loss or damage occurs to any insured property, you must
                     take all reasonable precautions to prevent further loss, damage
                     or deterioration.
                     You must also agree that we may, on your behalf and in
                     your name
                     ■   make any claim or take any proceedings against any person;
                     ■   take over the conduct and proceedings of any claim or
                         proceedings against you; and
                     ■   settle any such claims or proceedings
                     in respect of any indemnity which has been or which may be
                     granted under this policy.

                     1.2 What you must not do
                     You must not
                     ■   authorise repairs or arrange replacements without
                         our agreement; and
                     ■   make any admissions, settle or attempt to settle or defend
Our use of the           any claims made against you.
term “settle”
means that we will
have authorised
                     1.3 What we will do
repairs to, or       We will
arranged
replacement of,      ■   work towards settling your claim, wherever possible, within
property for which       5 working days after we have received all the necessary
a claim has been
accepted.                information we require; and



                                                                                       75
     Part 11

                             ■   keep you informed of progress with your claim if settlement
                                 of the claim is not possible within 5 working days.
     If you have
     receipts,               Section 2 – Proof of ownership, purchase
     warranties
     or valuation            or acquisition
     certificates, we
     recommend that          Whenever an item included in a claim is not available for
     they be kept in         inspection, you must provide reasonable proof to us that
     a safe place
     at all times.           you actually owned the item, and that the item is worth the
     Photographs             value you are claiming for it, before a claim for that item can
     and video tapes         be considered.
     can be used to
     support proof           Reasonable proof of ownership includes a
     of ownership,
     and you should          ■   receipt for original purchase;
     consider the
     following aspects:      ■   warranty certificate; and
     • For                   ■   valuation certificate
       photographs,
       try and use a         and may be supported by
       camera with a
       date function,        ■   prior inventory; or
       and get as close
       as possible to        ■   instruction manual; or
       the object as
                             ■   spare parts; or
       the camera
       will allow. Try       ■   original packaging material; or
       and show the
       brand and             ■   photographs; or
       model number
                             ■   receipts for previous repairs.
     • Videotapes
       could be              If the replacement value of any item is $250 or less, we may at
       enhanced by
       a commentary          our option accept a properly executed and witnessed statutory
       giving all relevant   declaration as reasonable proof of ownership.
       purchase details
     • We suggest            We will not consider a statutory declaration to be reasonable
       you keep              proof of ownership for any item of jewellery or for any item
       documentation,
       including             which is unusual or unique or which has a replacement value of
       photographs           more than $250.
       and video tapes,
       away from
       your home (for
       example, at your
       work place or
       with a relative).



76
Part 11

          Section 3 – How we will settle your Prime
          Home cover claim
              For your information: This section advises how we will settle your
              home claim. The procedure and steps to be taken in making a claim
              under the policy are explained in detail in Section 1 of this Part of
              the policy.


          3.1 Basis of claims settlement – “New for Old”
          Replacement cover
          Unless otherwise specified on your certificate, you have “New
          for Old” Replacement cover.

          ✓ If the home or any part of it is damaged or destroyed by
          an insured event, you are covered on a “New for old” basis,
          for the costs to repair or rebuild the damaged part of the
          home to the same condition and extent as when it was new
          or last renovated.

          Upon acceptance of your claim, we will, at our option either:
          ■    repair or rebuild the damaged part of your home; or
          ■    pay to you the reasonable cost of repairing or rebuilding the
               damaged part of your home; or
          ■    pay to you the home sum insured shown on the certificate
               which was current at the time the loss, damage or
               destruction occurred, if the home sum insured was not
               sufficient to cover the cost to repair or rebuild your home.

          The amount we pay will be calculated on the basis that new
          materials will be used when repairing or rebuilding the home.

          If the original materials are no longer available, we will pay for
          the nearest equivalent to the original item, available to suppliers
          in your region at the time. Where materials are not available in
          your region, we will pay the reasonable cost of sourcing the
          materials from elsewhere in Australia. We will not pay to replace
          undamaged parts of the home to achieve a match
          (see Part 10, Section 2.5, page 72 of this policy).



                                                                                      77
     Part 11

               Where we decide to pay to you the reasonable cost of
               repairing or rebuilding your home, payment will based on the
               amount we would have expected to pay if the work was
               authorised and completed by us, and after deducting any
               excess which applies to the claim.

               ✗ New for old does not apply if:
               ■   your certificate shows the basis of claims settlement for
                   your policy coverage is “Indemnity”;
               ■   your claim relates to a domestic electrical motor which has
                   burnt out. The burning out of a domestic electrical motor will
                   be settled on the basis detailed in Part 4, Section 1.13, of
                   the policy;
               ■   we determine that the home or part of the home has not
                   been maintained in good condition and repair. An allowance
                   will be deducted from the claim settlement based on the
                   condition, of the home or that particular part of the home
                   that has not been maintained in good condition and repair.

               ✓ You are also covered for any additional costs which are
               necessary to comply with government or local authority by-laws
               and regulations. This extra benefit will be paid in addition to any
               other amounts which are paid or agreed to be paid in relation
               to the home.

               ✗ Where replacement or reinstatement is unable to be effected
               because of the physical condition of the land or because any
               laws or requirements of any authority would be breached, this
               additional benefit will not apply and the basis of claims
               settlement that will be applied will be “Indemnity” cover.




78
Part 11

          3.2 Basis of claims settlement: “Indemnity” cover
          Your certificate may show that the home is insured on an
          “Indemnity” basis of settlement. Where your home is insured on
          an “Indemnity” basis, “New for Old” Replacement cover
          conditions do not apply.

          ✓ In the event of a claim which involves this basis of
          settlement, we will, at our option
          ■   reinstate or repair the home (after making allowance for
              wear, tear, depreciation and betterment); or
          ■   pay you the cost of such adjusted reinstatement or repair; or
          ■   pay you the market value of the home at the time the
              damage or destruction occurred.

          ✗ You are not covered for
          ■   any consequential loss or damage;
          ■   any additional costs to rebuild the home (or the damaged
              portion of it) to the same condition as when it was new; and
          ■    any additional costs which are necessary to comply with
              government or local authority by-laws and regulations.

          3.3 Rebuilding your home at a different location
          ✓ You are entitled to rebuild at a different location if you
          choose to do so, but we will only pay the amount which it
          would have cost us to rebuild at the same location as the
          destruction or damage occurred.

          The maximum amount we will pay in the reinstatement of the
          home is limited to the home sum insured shown on the
          certificate which was current at the time the loss, damage or
          destruction occurred.




                                                                              79
     Part 11

                         3.4 Cash settlement of your building claim
                         If you choose not to repair or rebuild the home (or the portion
                         of it which has been damaged), and decide to take a cash
                         settlement instead, we will only pay you an amount which
                         represents the actual value of the damaged property at the time
                         the loss, damage or destruction occurred – that is, its indemnity
                         value (which takes into account deduction of a reasonable
                         amount for wear and tear or depreciation of the home).

                         The maximum amount we will pay is limited to the home sum
                         insured shown on the certificate which was current at the time
                         the loss, damage or destruction occurred.

                         3.5 Automatic reinstatement of the sum insured
                         ✓ After we pay a claim for home cover (other than a claim for
                         a total loss of your home), we will automatically reinstate the
                         sum insured to the value shown on your certificate which was
                         current at the date of the loss.

     If we pay you any   3.6 Cancellation of cover following a claim
     claim which is
     equal to or more    If we accept a claim for an amount which will either
     than the sum
     insured, you are    ■   totally exhaust the sum insured; or
     no longer insured   ■   be sufficient to indemnify you for the total loss or destruction
     for home cover.
                             of your home.
     You will need to
     take out new        then, on acceptance of liability and confirmation of the amount
     cover for your
     new house.          to be paid, this part of this policy will be considered to have
                         ended and no refund of the premium component for this part
                         of this policy will be given.




80
Part 11

          Section 4 – How we will settle your Prime
          Contents cover claim
              For your information: This section advises how we will settle your
              contents claim. The procedure and steps to be taken in making a
              claim under the policy are explained in detail in Section 1 of this Part
              of the policy.


          4.1 Basis of claims settlement for general contents
          ✓ If all or any items of your contents are stolen, damaged or
          destroyed, and the cause is an insured event, you are covered
          on a “New for old” basis, for their replacement or repair cost
          equal to their condition when new.

          Upon acceptance of your claim, we will, at our option either:
          ■    repair or if necessary replace the stolen, damaged or
               destroyed contents items; or
          ■    pay to you the reasonable cost of repairing or if necessary
               replacing the damaged or destroyed contents items; or
          ■    pay to you the contents sum insured shown on the
               certificate which was current at the time the theft, damage
               or destruction occurred, if the contents sum insured
               was not sufficient to cover the cost to repair or replace
               your contents.

          The amount we pay will be calculated on the basis that only
          new items and materials will be supplied or used in the repair
          or replacement of contents items.

          If an original item or materials are no longer available, we
          will pay for the nearest equivalent to the original item, available
          to suppliers in your region at the time. Where the item or
          materials are not available in your region, we will pay the
          reasonable cost of sourcing the item or materials from
          elsewhere in Australia. We will not pay to replace undamaged
          contents materials or items to achieve a match (see Part 10,
          Section 2.5, page 72 of this policy).



                                                                                         81
     Part 11

               Unless unusual circumstances exist and we agree to do so,
               we will not pay you the cash equivalent for the repair or
               replacement of contents items. When we do agree to do so,
               the most we will pay as a cash settlement for any contents
               item is the amount it would have cost us to replace the item or
               to have it repaired, after deducting any discount that may be
               available to us, and any excess which applies to the claim.

               ✗ New for old does not apply if:

               ■   your claim relates to a domestic electrical motor which has
                   burnt out. The burning out of a domestic electrical motor will
                   be settled on the basis detailed in Part 4, Section 1.13, of
                   the policy;
               ■   we determine that any item of contents has not been
                   maintained in good condition and repair. An allowance will
                   be deducted from the claim settlement based on the
                   condition, of that particular item of contents that has not
                   been maintained in good condition and repair; and
               ■   we determine that any item of contents has been stored
                   away and is no longer being used. An allowance will be
                   deducted from the claim settlement based on the age and
                   condition, of that particular contents item which was stolen,
                   damaged or destroyed and is stored away.

               In the event of a claim for a contents item being part or parts of
               a pair, set or collection, we will only pay the lesser amount of:
               ■   a reasonable proportion of the sum insured for that item; or
               ■   the value of that part of the pair, set or collection.

               Other contents which may be covered for less than full “New
               for old” Replacement value are listed in Part 6, Section 5 of
               this policy under the heading “Limits on payment for some
               contents items”.




82
Part 11

                    4.2 Basis of claims settlement for specified contents
                    Contents listed in your certificate as specified contents items
                    will be limited to the amounts specified.

                    We may, at our option either,
                    ■   pay you the amount specified for the particular item; or
                    ■   replace the item on a “New for old” basis with a new item,
                        being the nearest equivalent available; or
                    ■   pay you the cost of replacement or repair whichever is the
                        lesser amount.

                    In the event of a claim for a specified contents item being part
                    or parts of a pair, set or collection, we will only pay the lesser
                    amount of:
                    ■   a reasonable proportion of the sum insured for that item; or
                    ■   the value of that part of the pair, set or collection.

Cover does not      4.3 What happens after a claim for specified contents
automatically       is accepted and settled
apply to the
replacement item,   After we accept and settle a claim for the loss or destruction of
until you ask us
to cover it under   a specified contents item, we remove that item as a specified
the policy.         contents item under the policy.
To arrange this,
you need to
                    If the particular item is subsequently replaced and you wish the
provide a full      replacement item to be insured as a specified item, you must
description of
                    tell us, and pay any additional premium we require to include
the item and
nominate the        the replacement item under your policy and on your certificate.
amount you wish
the replacement
item to be          4.4 Reinstatement of the sum insured
insured for.
                    After we pay a claim for general contents (other than a claim
                    for a total loss of your contents), we will automatically reinstate
                    the sum insured to the value shown on your certificate which
                    was current at the date of the loss.

                    Automatic reinstatement of the sum insured does not apply to
                    claims for specified contents.



                                                                                          83
     Part 11

     If we pay you any     4.5 Cancellation of cover following a claim
     claim which is
     equal to or more      If we accept a claim for an amount which will either
     than the sum
     insured, you are      ■   totally exhaust the sum insured; or
     no longer insured     ■   be sufficient to indemnify you for the total loss or destruction
     for contents cover.
                               of your contents.
     You will need
     to take out           then, on acceptance of liability and confirmation of the amount
     new cover
     when you replace      to be paid, this part of this policy will be considered to have
     your contents.        ended and no refund of the premium component for this part
                           of this policy will be given.

                           Section 5 – How we will settle your Prime
                           Personal Valuables claim

     Cover does not        5.1 Customised cover
     automatically
     apply to the          Settlement for any item which appears on your certificate as a
     replacement           customised cover item will be limited to the amount listed for
     item, until you
                           the item.
     ask us to cover it
     under the policy.
                           We may, at our option either,
     To arrange this,
     you need to           ■   pay you the amount listed for the item; or
     provide a full        ■   replace the item on a “new for old” basis with a new item
     description
     of the item and           being the nearest equivalent available; or
     nominate the
                           ■   repair the item to a condition equal to its condition when
     amount you wish
     the replacement           new; or
     item to be
     insured for.          ■   pay you the cost of the replacement or repair (after
                               deducting any discount that may be available to us).

                           whichever is the lesser amount.

                           After we pay a claim for the replacement of a listed item, we
                           remove that item from further cover under the policy.

                           If the item is subsequently replaced and you wish the
                           replacement item to be insured, you must tell us and pay any
                           additional premium we require to include the replacement item
                           under the policy and on your certificate.



84
Part 11

                      5.2 Packaged cover
                      Settlement for items to which packaged cover applies will be
                      limited to the amount shown on your certificate as the
                      “Maximum cover per item” for any individual item.

                      The most we will pay in any one annual period of insurance is
                      the amount shown on your certificate as the “Limit per Period”.

                      We may, at our option, either,
                      ■   replace the item on a “New for Old” basis with a new item
                          being the nearest equivalent available; or
                      ■   repair the item to a condition equal to its condition
                          when new; or
                      ■   pay you the cost of the replacement or repair.

                      whichever is the lesser amount.

If we pay you any     After we pay a claim or claims in any one annual policy
claim or claims
which use up the
                      period which exhaust the “Limit per Period” shown on your
limit in any single   certificate for packaged cover, we remove that cover from
period of
                      the policy.
insurance for
packaged cover,
you will need to      If you wish the cover to be reinstated once it has been
ask us to reinstate   exhausted, you must ask us and pay any additional premium
the cover, and pay
any additional        we require to reinclude the cover under the policy and on
premium required.     the certificate.




                                                                                        85
     Part 11

                         Section 6 – How we will apply the excess
                             For your information: Your policy is subject to an excess, which we
                             defined in Part 3 of the policy. The amount we will apply as the
                             excess will depend on the insured event, as different or additional
                             excesses sometimes apply.


                         6.1 Basic excess
     This means that     The amount we pay in relation to your claim will be reduced by
     every time one
     event causes
                         the amount shown on your certificate as the excess for each
     a claim, the        claim which results from an insured event for which you are
     excess applies.
                         covered under the policy.
     If two or more
     claims for          This amount will be either
     separate events
     were lodged on      ■    deducted from any settlement amount we send directly
     the same claim           to you; or
     form, it does not
     mean that only      ■    deducted from the invoice we receive from the repairer,
     one excess would
     be applied, as
                              which will mean that you will be responsible for payment of
     each event would         the excess directly to the repairer; or
     be considered
     to be a separate    ■    required to be paid direct to us by you prior to the claim
     claim and                being settled.
     an excess
     would apply
     to each claim.      6.2 Theft excess
                         An additional excess of $100 (in addition to the amount shown
                         on your certificate as the excess) will apply to any claim for
                         theft or attempted theft.

                         If you have advised us that the home or contents are protected
                         by security measures, and as we have accepted your insurance
                         and calculated your premium on this basis,
                         you must
                         ■    maintain the security measures in efficient working order; and
                         ■    activate all security measures and remove keys from all
                              locks at your home before leaving it without an occupant for
                              any period.



86
Part 11

                     If you
                     ■   have installed security measures and theft occurs where
                         entry or exit is made through an unsecured or unlocked door
                         or window; or
                     ■   have installed a security system and theft occurs when the
                         security system has not been activated

                     an additional Unsecured Theft Excess of $300 will apply instead
                     of the additional $100 excess.

                     6.3 Earthquake excess
                     Where the destruction or damage is caused by earthquake,
                     you must pay the first $500 of any destruction, loss or damage
                     which is caused by earthquake within a consecutive period of
                     48 hours.

                     If you have selected or we have imposed an excess higher
                     than $500, the higher excess will apply.

                     6.4 Flash flooding excess
                     Where the destruction or damage is caused by flash flooding,
                     you must pay the first $1,000 of any destruction, loss or
                     damage which is incurred as a result of the flash flooding.

For example, if      6.5 Multiple event excess
you select an
excess of $500 for   Where an event gives rise to a claim under more than one part
buildings cover      of this policy, and you have selected or we have imposed
and $250 for
contents cover,      differing levels of excess in any or all of those parts, the
and a storm          excess we apply will be the highest excess only.
causes damage to
the home of
                     We will not apply an excess for each part of the policy in
$2,000 and to the
contents of          this instance.
$1,000, the excess
we apply will be
$500 only, rather
than $750 which is
the sum of the
two excesses.



                                                                                       87
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88
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