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					Landlords Insurance
Product Disclosure Statement and Policy
ING General Insurance Pty Limited ABN 56 072 892 365, AFS Licence
No. 288160 trading as ING Insurance acts under its own Australian
Financial Services Licence Number 288160 and under an agreement
with the insurer, CGU Insurance Limited ABN 27 004 478 371,
AFS Licence No. 238291. An IAG Company.
landlords
residential
property insurance
product disclosure
statement
and policy




                               landlords residential



Preparation date: 01/08/2006




Insurer
CGU Insurance Limited
ABN 27 004 478 371
AFS Licence No. 238291
An IAG Company
This Product Disclosure Statement (pds) has
been designed to help you get the most out
of your policy.
Use the contents pages and topic index to
help find what you are looking for. Important
tasks such as taking out insurance or making
a claim are explained in easy to follow steps.
And we have included a glossary of words
with a special meaning.
When you take out an insurance policy with
us, the cover we agree to provide you is set
out in your current schedule, and described in
this pds, as well as any Supplementary pds we
may issue. Together, they make up the terms
and conditions of your insurance contract
with us. Read them carefully and store them
together in a safe place.
If you need more information about this pds,
please contact us or your insurance adviser.
contents
About this insurance                  3

What this policy covers            6-7

Exclusions to your cover            25

Your responsibilities to us          31

Our commitment to you               35

How to take out insurance           39

How to make a claim                 43

How to resolve a
complaint or dispute                54

Glossary of words with
a special meaning                   55

Index                               59

Contact us                    back cover
Landlords Residential          about this insurance
Property Insurance         4

Excesses that may apply
when you make a claim      5

Bond money we may deduct
when you make a claim      5




                               3
                       Landlords Residential                                          Excesses that may apply
                       Property Insurance                                             when you make a claim
                       Landlords Residential Property Insurance                       An ‘excess‘ is your contribution towards the cost of
                                                                                      a claim. We will tell you if you need to pay an excess
                       provides cover for any accidental loss                         when you make a claim.
                       or damage to the buildings or contents                         The type of excess that applies to your policy and the
                       that make up your rental property.                             amount of that excess will be listed on your schedule.
                                                                                      You may need to pay more than one type of excess when
                       We also provide cover under specific                            you make a claim. You will only need to pay this amount
                       conditions for a range of incidents                            once when you make a claim.
                       and additional covers.                                         Your excess will be increased by $250 for any loss or
                                                                                      damage that occurs as a result of an earthquake or
                       You can choose to take out a buildings                         tsunami.
                       policy, a contents policy, or a combined                       Your excess will be increased by $400 for any loss or
                       buildings and contents policy.                                 damage that occurs as a result of:
                                                                                      • deliberate or intentional acts, or vandalism or malicious
                       You can also add options to your                                 acts by your your tenants or their visitors,
                       policy for loss of rent, rent default                          • your tenant leaving your building,
                       and theft by a tenant, liability, strata title                 • your tenant ceases to pay rent,
                       mortgagee protection and workers’                              • your tenant being evicted from your buildings, or
                                                                                      • the theft of any part of your buildings or contents by
                       compensation.                                                    your tenants or their visitors.
                       Your buildings or contents and the                             When a claim is made for what we identify as one or
                       options you have chosen will be covered                        more separate incidents, you will need to pay any
                                                                                      excesses that apply for each separate incident we have
                       up to the sum insured, as listed on your                       identified.
                       current schedule.
                                                  To find out what this policy
                                                  covers, see next page 

                                                  For exclusions to this cover, see
                                                                                      Bond money we may
                                                  page 25 
                                                                                      deduct when you make
                                                                                      a claim
                                                                                      We will reduce the amount we will pay for loss or
                                                                                      damage to your building or contents, rent default
about this insurance




                                                                                                                                                    about this insurance
                                                                                      or legal expenses by any bond money that you are
                                                                                      entitled to use to pay for or reduce the cost of any
                                                                                      loss or damage.




   4                                                                                                                                                5
    Buildings
                                                            Contents
       Buildings we will cover                         8
                                                              Contents we will cover                            9
       What we will pay for buildings                  8
                                                              What we will pay for contents                    10




                                                                                                                     what this policy covers
       Accidental Damage cover                        11
                                                              Where your contents are covered                  10
       Incident cover provided under
       specific conditions                              11     Accidental Damage cover                           11
       Burning out of an electric motor                11     Incident cover provided under
       Fire or explosion                              12      specific conditions                                11
       Landslide or subsidence                        12      Burning out of an electric motor                  11
       Loss or damage by a tenant or their visitors   13      Fire or explosion                                12
       Storm, rainwater or wind                       14      Landslide or subsidence                          12
       Theft or attempted theft                       15      Loss or damage by a tenant or their visitors     13
       Water or liquid damage                         15      Storm, rainwater or wind                         14
                                                              Theft or attempted theft                         15
       Additional cover included in this insurance    16
                                                              Water or liquid damage                           15
       Debris removal and demolishing                 16
       Mortgagee discharge costs                      16      Additional cover included in this insurance      16
                                                              Debris removal and demolishing                   16
       Rebuilding fees                                17
                                                              Sum insured                                      18
       Sale of your rental property                   17
       Sum insured                                    18      Optional cover you can add to your policy         19
                                                              Liability cover                               19-20
       Optional cover you can add to your policy    19
                                                              Loss of rent                                  20-21
       Liability cover                           19-20
                                                              Rent default and theft by a tenant             21-23
       Loss of rent                              20-21
                                                              Strata title mortgagee protection             23-24
       Rent default and theft by a tenant        21-23
                                                              Workers’ Compensation                             24
       Workers’ Compensation                        24




6                                                                                                                    7
                          Buildings we will cover                                           Contents we will cover
                          We will cover residential buildings, their                        We will cover household goods you own or
                          fixtures and fittings and any structural                            are legally responsible for that are not fixed
                          improvements at your rental property.                             or fitted to your buildings at your rental
                          Your buildings include                                            property.
                          • residential buildings, including                                Your contents include
                            – any professional offices or surgeries in those buildings       • items thinly covered with gold or silver that are not
                          • domestic outbuildings                                             jewellery or watches
                          • fixed coverings to walls, floors and ceilings                     • carpets, curtains or internal blinds
                            – these do not include fixed carpets, curtains or                • fixtures and fittings that you have installed if you are the
                              internal blinds                                                 owner of a strata title unit, unless
                                                                                              – the body corporate or similar body has insured them
                          • infrastructure for services, including infrastructure for the
                            supply of electricity, gas, water, internet and telephone       • household goods
                                                                                            • furniture and furnishings that are not built in
                          • items built in, fixed to, or on the buildings
                                                                                            • portable domestic appliances that are not built in
                          • blinds or awnings on the outside of the buildings
                                                                                            • swimming pools, saunas and spas that are not built-in
                          • anything permanently built, constructed or installed              and their accessories
                            on your rental property for domestic purposes.                  • ‘special contents’, as listed on your schedule.
                          Your buildings do not include                                     Your contents do not include
                          • buildings that a tenant is liable for under the terms           • unset precious/semi-precious stones
                            of a written, rental agreement, unless                          • plants and trees growing outdoors, unless
                            – the building is listed under ‘Your buildings include’ as        – they are growing in pots or tubs
                              above                                                         • animals, including birds and fish
                          • building materials                                              • jewellery and watches
                          • plants, shrubs, trees or grass.                                 • items that contain gold or silvers, unless
                                                                                              – they are items thinly covered with gold or silver
                                                                                            • furs
                          What we will pay                                                  • collections of stamps, money or medals
                                                                                            • sporting equipment
                          for buildings                                                     • clothing and personal effects
                                                                                            • money and negotiable documents
                          We will cover your buildings up to the                            • battery-powered items as listed below
                                                                                              – audio visual equipment
                          sum insured, as listed on your schedule.                            – camera equipment, including accessories and
what this policy covers




                                                                                                                                                           what this policy covers
                                                                                                unprocessed film
                                                                                              – electronic diaries
                                                                                              – gps
                                                                                              – mobile or portable phones
                                                                                              – portable computers
                                                                                            • pedal cycles, motorcycles, mini-bikes, caravans,
                                                                                              trailers, aircraft, watercraft or motor vehicles, unless
                                                                                              – they are ride-on mowers
                                                                                            • building materials.
   8                                                                                                                                                       9
                          What we will pay                                                     Accidental Damage cover
                          for contents                                                         We will cover your buildings or contents
                          There are set maximum amounts that                                   for any accidental loss or damage.
                          we will pay when you make a claim.                                   There are also a number of incidents
                          These amounts are listed below and are                               we will cover under specific conditions –
                          included in your contents sum insured.                               these are listed on the following pages.
                                                                the most we will pay
                                                                                               If you make a claim, you will need to pay
                          contents                              up to the contents sum         any excesses that apply – you will only
                                                                insured as listed on
                                                                your schedule (inclusive       need to pay this amount once.
                                                                of gst) in total
                          any content item, pair, set, collection $20,000 (inclusive of gst)   Any cover we provide is subject to exclusions.
                          or system of contents items             per item, pair, set,                                       For exclusions to this cover,
                                                                collection or system                                         see page 25 


                          Nominating the amount we will pay for contents
                          When you take out a contents policy, you must
                          nominate the replacement value of your contents at
                                                                                               Incident cover provided
                          today’s prices. This is called your ‘sum insured’ and
                          is listed on your schedule.
                                                                                               under specific conditions
                          Increasing the amount we will pay for contents
                                                                                               Burning       We will cover the cost to repair
                          You can increase the maximum amount we will pay
                          for any content item, pair, set, collection or system
                                                                                               out of an     or replace your electric motor if it
                          by nominating an amount that is higher than $20,000.                 electric      burns out or fuses.
                          Your contents will be listed on your schedule as                     motor         We will only do this if your electric
                          ‘special contents’.                                                  buildings     motor is
                                                                                               contents      • 15 years old or less, and
                                                                                                             • no bigger than 3.7 kilowatts (5 hp).
                          Where your contents
                          are covered
                          We will cover your contents at your rental
                          property for loss or damage as a result of
what this policy covers




                                                                                                                                                             what this policy covers
                          an incident we have agreed to cover.




10                                                                                                                                                           11
                          continued… Incident cover                                      Loss or     We will cover your buildings or
                                                                                         damage by   contents for loss or damage
                          Fire or           We will cover your buildings or              a tenant    caused by a tenant or their visitors,
                          explosion         contents for loss or damage as a             or their    or their visitors pets.
                          buildings         result of a fire or an explosion.             visitors    We will only do this if the loss or
                                                                                         buildings   damage occurs as a result of
                          contents          We will not cover loss or damage
                                            caused by a bushfire or grassfire within       contents    • accidental breakage of any
                                            48 hours of the start date of your                         – fixed glass in your buildings, including
                                            policy, unless                                               any window tinting or shatter proofing
                                            • you took out your insurance with us                        material attached to the glass
                                              immediately after another insurance                      – fixed shower bases, basins, sinks,
                                              policy covering the same buildings                         spas, baths and toilets
                                              or contents expired, without a break                   • fire or explosion, as described on the
                                              in cover                                                 previous page
                                            • you took out your insurance with us                    • impact by a vehicle
                                              immediately after the risk passed to                   • water or liquid that escapes from
                                              you as purchaser of your buildings                       – a fixed pipe or an object attached
                                            • you took out your insurance with us                        to a pipe, fixed gutter, fixed tank or
                                              immediately after you signed a lease                       a drain
                                              contract for your buildings.                             – a bath, basin, sauna, spa, shower
                                                                                                         base or shower wall, sink, toilet or
                                                                                                         tiled floor that has drainage holes
                          Landslide  We will cover your buildings or                                   – a washing machine or dishwasher
                          or         contents for loss or damage as a                                  – an aquarium
                          subsidence result of a landslide or subsidence.                              – a waterbed
                          buildings         We will only do this if the loss or                      • a deliberate or intentional act,
                                            damage occurs within 72 hours of                           vandalism or a malicious act, unless
                          contents
                                            • an earthquake or explosion                               it is a result of
                                            • a storm, including rainwater or wind, or                 – theft
                                            • liquid escaping from a fixed pipe, or                     – tenant neglect, carelessness, poor
                                              an object attached to a pipe, fixed                         housekeeping or unhygienic living
                                              gutter, fixed tank or a drain.                              habits
                                                                                                       – damage occurring during
                                                                                                         maintenance or repair operations
                                                                                                         carried out by the tenants or anyone
                                                                                                         acting on their behalf
                                                                                                       – damage caused by pets belonging
what this policy covers




                                                                                                                                                   what this policy covers
                                                                                                         to tenants or their visitors.




12                                                                                                                                                 13
                          continued… Incident cover
                                                                                        Theft or    We will cover your buildings or
                          Storm,                                                        attempted   contents for loss or damage as a
                                           We will cover your buildings or
                          rainwater        contents for loss or damage as a
                                                                                        theft       result of theft or attempted theft.
                          or wind          result of storm, rainwater or wind.          buildings   We will not cover your buildings or
                                                                                        contents    contents for loss or damage as a result
                          buildings        We will not cover loss or damage caused
                                                                                                    of theft by a tenant or their visitors.
                                           by a named cyclone within 48 hours of
                          contents                                                                  The theft or attempted theft must
                                           the start date of your policy, unless
                                           • you took out your insurance with us                    be reported to the Police.
                                             immediately after another insurance
                                             policy covering the same buildings
                                             or contents expired, without a break       Water       We will cover your buildings or
                                             in cover                                   or liquid   contents for loss or damage caused
                                           • you took out your insurance with us        damage      by water or liquid. We will also
                                             immediately after the risk passed to       buildings   cover the cost of finding where
                                             you as purchaser of your buildings                     the water or liquid escaped from,
                                                                                        contents
                                           • you took out your insurance with us                    including the cost of repairing any
                                             immediately after you signed a lease
                                             contract for your buildings.                           damage that occurs while looking
                                                                                                    for the cause.
                                           We will not cover
                                           • swimming pool covers, including                        We will not cover your buildings or
                                             – solar covers and plastic liners                      contents for loss or damage caused by
                                           • water entering your buildings                          • flood
                                             – through an opening made for any                      • landslide or subsidence, unless
                                               building, renovation or repair work                    – we agree to cover the incident
                                             – because of a structural defect, faulty                   as described under ‘Landslide
                                               design or faulty workmanship when                        or subsidence’
                                               your buildings were constructed                      • water entering your buildings
                                           • free-standing fences made of                             – through an opening made for any
                                             corrugated fibrous material that do                         building, renovation or repair work
                                             not have a supporting frame, unless                      – because of a structural defect, faulty
                                             – they have been installed and                             design or faulty workmanship when
                                               constructed according to the                             your buildings were constructed.
                                               manufacturer’s specifications
                                                                                                    We will cover the cost of repairing the
                                           • free-standing gates, fences or walls                   item that caused the escape of water
                                             that are made of timber and are more                   or liquid.
                                             than 15 years old.
                                                                                                                    For Landslide or subsidence,
                                                                                                                    see page 12 
what this policy covers




                                                                                                                                                   what this policy covers



14                                                                                                                                                 15
                          Additional cover included                                    Rebuilding
                                                                                       fees
                                                                                                     If your buildings suffer loss or
                                                                                                     damage, and need to be rebuilt as
                          in this insurance                                            buildings     a result, we will cover the costs of
                                                                                                     employing an architect or surveyor,
                          Your insurance includes a range of covers                                  and also pay any legal fees that
                          we refer to as ‘additional cover’. These                                   arise from the rebuilding, up to
                          covers are listed on the following pages.                                  10 per cent of your buildings sum
                                                                                                     insured.
                          The additional cover we provide depends
                                                                                                     The rebuilding must occur as a result
                          on whether you have a buildings policy,                                    of an incident we have agreed to cover.
                          contents policy or a combined buildings
                          and contents policy.                                         Sale of       If you have entered into a contract
                          The amount we will pay for these covers                      your rental   to sell your rental property, we will
                          is in addition to the sum insured, as listed                 property      extend your buildings cover to the
                          on your schedule.                                            buildings     purchaser until
                                                                                                     • the contract settlement date
                          If you make a claim for an additional                                      • the purchaser insures the rental
                          cover, you will not need to pay an excess.                                    property, or
                          Any cover we provide is subject to exclusions.                             • the purchaser becomes liable
                                                       For exclusions to this cover,                    for damage to the rental property
                                                       see page 25 
                                                                                                     whichever happens first.
                                                                                                     This cover will stop immediately if
                          Debris        We will cover the reasonable costs                           • the sale contract is terminated, or
                          removal       to demolish and remove any debris                            • your buildings insurance comes
                          and           that results from loss or damage to                            to an end.
                          demolishing   your buildings or contents, up to
                          buildings     10 per cent of your buildings or
                          contents      contents sum insured.
                                        The debris must occur as a result of
                                        an incident we have agreed to cover.


                          Mortgagee     If you make a claim for the total
                          discharge     loss of your buildings, we will cover
what this policy covers




                                                                                                                                               what this policy covers
                          costs         any legal costs associated with the
                          buildings     discharge of any mortgage you
                                        have left owing.
                                        The total loss must occur as a result of
                                        an incident we have agreed to cover.



16                                                                                                                                             17
                          continued… Additional cover included in this insurance
                                                                                          Optional cover you can
                          Sum                If we agree to pay you for a loss to         add to your policy
                          insured            your buildings or contents we will
                          buildings          increase your sum insured for                You can broaden the scope of your cover
                          contents           buildings or contents by the                 by adding any of the following options.
                                             amount the Consumer Price Index              You will need to apply for this cover and
                                             (all groups) has increased since             pay an additional premium. Any options
                                             you took out your policy.                    that we agree to add to your policy will
                                             However, we will not increase your
                                             sum insured for special contents.
                                                                                          be listed on your current schedule.
                                             You will be fully insured again for your     Any cover we provide is subject to exclusions.
                                             buildings or contents for the amounts                                       For exclusions to this cover,
                                             shown on your schedule, unless                                              see page 25 
                                             • your claim is for a total loss and we
                                               pay you the sum insured, then your
                                               policy comes to an end, subject to any
                                                                                          Liability     With this option, we will cover your
                                               continuing liability cover and no refund   cover         legal liability as a result of any
                                               of your premium is due.                                  incident listed below that causes
                                                                                                        loss or damage to someone else’s
                                                                                                        property, or death or bodily injury
                                                                                                        to other people, during your period
                                                                                                        of insurance.
                                                                                                        We will cover liability claims up
                                                                                                        to the sum insured, as listed on
                                                                                                        your schedule, for any incident
                                                                                                        listed below.
                                                                                                        This amount includes any legal
                                                                                                        costs that must be paid to defend
                                                                                                        the claim and any costs awarded
                                                                                                        against you.
                                                                                                        If you choose this option, it will be listed
                                                                                                        on your schedule as ‘Liability cover’.
                                                                                                        If you have insured your buildings,
                                                                                                        including strata title or a similar scheme,
what this policy covers




                                                                                                                                                         what this policy covers
                                                                                                        we will cover you for the amount you
                                                                                                        have to pay as owner or occupier of
                                                                                                        the buildings.
                                                                                                        If your buildings are a total loss, we will
                                                                                                        continue liability cover for any amount
                                                                                                        you have to pay as owner or occupier of
                                                                                                        the buildings for up to six months from
                                                                                                        the date your buildings are destroyed.
                                                                                                                         Continued next page 
18                                                                                                                                                       19
                          continued… Optional cover that can be added to your policy        continued…      We will also provide cover for up to two
                                                                                            Loss of rent    weeks rent, up to $1000 (inclusive of
                                                                                                            GST) after
                          continued…         This cover will stop immediately if                            • a death of a sole tenant that occurs
                          Liability cover    • construction commences at the home                             before the end of the tenancy period
                                             • you sell the land, or                                          of your rental agreement or during
                                             • you take out a new buildings                                   a periodic tenancy agreement.
                                               insurance policy for the home.                                 Cover will start from the date of
                                                                                                              death of the sole tenant.
                                             If you have insured your contents and                            We will not pay if the sole tenant
                                             you own part of the building that has                            had given you or your agent notice in
                                             been subdivided, we will cover you for                           accordance with the rental agreement
                                             the amount you have to pay as owner                              or periodic tenancy agreement prior
                                             of your contents, or occupier of your                            to their death.
                                             part of the building.                                          • your rental agreement or periodic
                                             If you have insured your contents we will                        tenancy agreement is legally
                                             cover you for the amount you have to pay                         terminated by a Residential Tenancies
                                             because of any defect in your contents.                          Tribunal or another relevant authority
                                                                                                              on the grounds of hardship on the
                                             If you provide a car park for your tenant or                     part of the tenant.
                                             their visitors to use, we will cover you for                     Cover will start from when the
                                             the amount you have to pay for damage                            termination order issued by the
                                             to property while it is in the car park.                         Residential Tenancies Tribunal or
                                                                                                              other relevant authority takes effect.

                          Loss of rent With this option, if your buildings                                  This cover will stop immediately if your
                                                                                                            rental property is re-tenanted.
                                             or sections of your buildings
                                             suffer loss or damage and are                                  An excess may apply to this option.
                                             uninhabitable as a result, we will                             This option is available for buildings
                                             cover any loss of rent equal to the                            or contents policies.
                                             weekly amount as stated on your
                                             rental agreement or periodic
                                             tenancy agreement for up to 12                 Rent        With this option, we will cover
                                             months. The most we will pay is up             default and • rent default and theft by a tenant
                                             to the sum insured, as listed on your          theft by    • legal costs you incur as a result
                                             schedule.                                      a tenant      of rent default or theft by a tenant.
                                             If you choose this option it will be listed                    If you choose this option, it will be
                                             on your schedule as ‘Loss of rent’.                            listed on your schedule as ‘Rent default
                                             This cover applies when                                        and theft by a tenant’.
                                             • loss or damage to your buildings                             We will only cover rent default for the
                                               or contents occurs as a result of an                         weekly amount your rental property is
what this policy covers




                                                                                                                                                           what this policy covers
                                                                                                            leased for, up to $5,000 (inclusive of gst),
                                               incident as listed in this PDS
                                                                                                            less any excess or bond money that applies
                                             • access to your rental property is                            • if your tenant leaves your rental
                                               prevented due to loss or damage                                property before the end of the tenancy
                                               to other property located near your                            period of your rental agreement or
                                               rental property.                                               periodic tenancy agreement, without
                                             We will only cover loss of rent while                            giving you or your agent notice
                                             your rental property is uninhabitable.                                          Continued next page 
                                                              Continued next page 
20                                                                                                                                                         21
                          continued… Optional cover that can be added to your policy       continued…     This cover will stop immediately
                                                                                           Rent default   • if your rental property is re-tenanted, or
                          continued…                                                       and theft by
                                             • if your tenant is legally evicted from                     • when the term of your rental
                          Rent default                                                     a tenant
                                                your rental property                                        agreement ends.
                          and theft by       • if your tenant stops paying rent owed                      We will only cover theft by a tenant
                          a tenant              to you or your agent                                      or their visitors of
                                             We will only pay a rent default claim                        • any part of your buildings, up to the
                                             • if the tenant breaches your rental                           buildings sum insured, as listed on
                                                agreement or periodic tenancy                               your schedule, after deducting any
                                                agreement, and                                              excess that applies, if you have insured
                                                                                                            your buildings
                                             • you have taken all reasonable steps
                                                legally available to you under the                        • your contents, up to the contents sum
                                                                                                            insured, as listed on your schedule,
                                                Residential Tenancies Act, or other
                                                                                                            after deducting any excess that applies,
                                                relevant State or Territory Legislation,
                                                                                                            if you have insured your contents.
                                                to remedy non-payment and evict
                                                the tenant.                                               If we have agreed to pay a rent default
                                                                                                          or theft by a tenant claim we will also
                                             Your cover for rent default ceases                           cover legal costs as a result of rent
                                             if the rental agreement could have                           default or theft by a tenant, up to $1,000
                                             been legally terminated by you.                              (inclusive of gst)
                                             Cover for rent default will not apply                        • that you incur to
                                             if the rent is in arrears at the                               – legally evict a tenant
                                             commencement date of this insurance.                           – recover amounts owed to you by
                                             This cover will not commence until all                            a tenant, unless
                                             rent arrears have been paid, and the                              the legal costs are solely to recover
                                             tenant has paid a minimum of four                                 excesses that apply to a claim under
                                             consecutive weeks of the agreed rent                              this policy, or
                                             in accordance with the rental                                  – recover amounts for items stolen
                                             agreement.                                                        from your rental property by a
                                             When a rental agreement defaults to                               tenant or their visitors.
                                             a ‘periodic tenancy agreement’, we will                      We will only pay your legal costs if we
                                             only pay up to two weeks rent after a                        agree to pay them and before they are
                                             tenant vacates the building without                          incurred.
                                             notice.                                                      An excess applies to this option.
                                             When you or your agent issues
                                             a notice to leave to a tenant, we will
                                             only pay up to two weeks rent after the       Strata Title With this option, we will cover the
                                             tenant vacates the building.                  Mortgagee amount you must pay to settle your
                                             We will not pay a claim if your tenant        Protection mortgage following loss or damage
what this policy covers




                                                                                                                                                         what this policy covers
                                             leaves the building with, or without
                                             notice, and you have failed to rectify                       to buildings that you own under a
                                             a ‘Notice of Remedy’ breach issued                           strata title or similar plan.
                                             by the tenant to you.                                        If you choose this option the individual
                                                             Continued next page                         amount you nominate and any
                                                                                                          excesses that apply will be listed on
                                                                                                          your schedule under ‘Strata Title
                                                                                                          Mortgagee Protection’.
22                                                                                                                         Continued next page 
                                                                                                                                                         23
                          continued… Optional cover that can be added to your policy


                          continued…         We will pay up to the amount you owe
                          Strata Title       on your mortgage, but no more than
                          Mortgagee          the sum insured, as listed on your
                          Protection         schedule.
                                             We will pay this amount to your
                                             mortgagee when you are required
                                             to pay your mortgagee in full, however
                                             • the loss or damage must occur as a
                                               result of an incident we have agreed
                                               to cover.




                                                                                                                                       exclusions to your cover
                                             We will only pay this when the
                                             body corporate
                                             • has not insured the buildings, or
                                             • has not insured the buildings for loss
                                               or damage you can claim for under
                                               this policy.
                                             This option is available as a
                                             stand-alone policy.                              Accidental Damage cover, Additional
                                             An excess may apply to this option.              cover and Optional cover exclusions 26

                                                                                              Liability cover exclusions      27-28
                          Workers’           If you employ a person to do work
                          Compen-            around your rental property such as              General exclusions              29-30
                          sation             cleaning or gardening, you can add
                                             cover for the amount you are liable
                                             for if they are injured while working
                                             for you, subject to the relevant
                                             legislation in your State or Territory.
                                             If you choose this option, it will be
                                             listed on your schedule as ‘Workers’
                                             Compensation’.
                                             You will need to check with your local
                                             Workers’ Compensation Authority as
                                             this cover may be compulsory.
what this policy covers




                                             This cover only applies to employees
                                             doing work in connection with you as
                                             owner, operator or manager of the rental
                                             property. We will not cover any person
                                             that is working for you in your business,
                                             profession, trade or occupation.
                                             An excess may apply to this option.

                                                                                                                                       25
                                                             To find out who the insurer
24                                                           is for this option, see inside
                                                             back cover 
                           Exclusions to your cover                                   Liability
                                                                                      cover
                                                                                                   We will not cover any
                                                                                                   • personal injury to you, or any
                           Any cover we provide is subject to the                     exclusions     member of your family who normally
                                                                                                     lives with you, or anyone else who
                           following exclusions.                                                     normally lives with you
                                                                                                   • personal injury to any person you
                           Accidental   We will not cover any loss or                                employ where that injury arises from
                           Damage       damage as a result of, or caused by                          their employment with you
                           cover,       • settling, shrinkage or any movement                      • loss or damage to property that
                                                                                                     belongs to you, or is under your control,
                           Additional     of earth
                                                                                                     or any member of your family who
                           cover and    • erosion, rust, corrosion, gradual
                                          deterioration, depreciation, wear or tear                  normally lives, with you, or anyone
                           Optional                                                                  else that normally lives with you
                                        • rats, mice or insects
                           cover        • roots from trees, plants, shrubs or grass                • loss or damage to property that
                           exclusions   • any process of cleaning involving the                      belongs to any person you employ
                                          use of chemicals other than domestic                       where that loss or damage arises
                                          household chemicals                                        from their employment with you
                                        • a defect in an item, structural defects,                 • penalties, fines or awards of
                                          or faulty workmanship or design                            aggravated, exemplary or punitive
                                        • breakage of mirrors, glassware, crystal,                   damages made against you.
                                          crockery or china while they are being                   We will not cover any liability as
                                          used, cleaned or carried by hand
                                        • mechanical or electrical breakdown
                                                                                                   a result of, or arising from
                                          other than an electric motor burning                     • any alterations, repairs, renovations or
                                          out, unless                                                additions to your buildings that cost
                                          – the breakdown results in damage                          more than $75,000 (inclusive of gst)
                                            to your buildings or contents                          • any alterations, servicing, repairing or
                                        • a tenant or their visitors or their                        any additions to lifts, escalators or
                                          visitors pets, unless                                      hoists, including
                                          – we agree to cover the incident                           – anything that is part of a lift,
                                            as described under ‘Loss or damage                         escalator or hoist
                                            by a tenant or their visitors’                         • any disease that is transmitted by
                                        • flood                                                       you, or any member of your family
                                        • landslide or subsidence, unless                            who normally lives with you
                                          – we agree to cover the incident                         • any business, profession, trade or
                                            as described under ‘Landslide                            occupation carried out by you, unless
                                            or subsidence’                                           – the liability is as a result of, or arising
                                        • water entering your buildings                                from, you managing the buildings
exclusions to your cover




                                                                                                                                                     exclusions to your cover
                                          – through an opening made for any                            and their surrounds
                                            building, renovation or repair work                    • any agreement or contract you enter into,
                                          – because of a structural defect, faulty                  however
                                            design or faulty workmanship when                       – if you would have been liable
                                            your buildings were constructed                           without the agreement or contract,
                                        • a tenant or their visitors or their                         we will pay for that liability
                                                                                                                     Continued next page 
                                          visitors pets, scratching, denting,
                                          chipping, rubbing, scuffing or chafing
                                          any surface.
26                                                                                                                                                   27
                           continued… Exclusions to your cover
                                                                                           General      We will not cover any loss or
                                                                                           exclusions   damage, or liability as a result
                           continued…         We will not cover any liability as                        of, or arising from
                           Liability cover                                                              • any incident that does not occur
                                              a result of, or arising from
                           exclusions                                                                     within your period of insurance
                                              • the use, removal of, or exposure to
                                                any asbestos product or products                        • landslide or subsidence, unless
                                                containing asbestos                                       – we agree to cover the incident as
                                              • the use of a motor vehicle,                                 described under ‘Landslide or
                                                motorcycle, mini-bike, caravan, trailer,                    subsidence’
                                                aircraft or watercraft, however                         • war or warlike activity, however
                                                – we will cover liability that arises                     – war does not need to be declared
                                                  from ride-on mowers.                                  • hostilities, rebellion, insurrection
                                              • servicing, repairing or maintaining                       or revolution
                                                any vehicle                                             • contamination by chemical and/or
                                              • the erection or demolition of buildings                   biological agents, which results from
                                              • vibration or interference with the                        an act of terrorism
                                                support of the land, buildings or                       • lawful destruction or confiscation of
                                                other property                                            your property
                                              • the discharge, release or escape of                     • anything nuclear or radioactive
                                                any pollutants                                          • mildew, atmospheric or climatic
                                              • the removal, neutralising or cleaning                     conditions
                                                up of pollutants
                                                                                                        • damage to a heating element,
                                              • any act of libel or slander.                             however
                                                                                                          – we will pay for any loss or
                                                                                                            damage as a result of damage
                                                                                                            to a heating element
                                                                                                        • failure or inability of any item,
                                                                                                          equipment or computer software
                                                                                                          to recognise correctly, to interpret
                                                                                                          correctly or to process correctly any
                                                                                                          date, or to function correctly beyond
                                                                                                          any time when that item, equipment
                                                                                                          or computer software has not
                                                                                                          recognised, interpreted or processed
                                                                                                          correctly any date, unless
                                                                                                          – it results in loss or damage to your
                                                                                                            buildings or contents that is covered
exclusions to your cover




                                                                                                                                                    exclusions to your cover
                                                                                                            under this policy. This does not
                                                                                                            include resultant loss or damage
                                                                                                            to any frozen food, computer
                                                                                                            equipment or computer software.
                                                                                                                       Continued next page 




28                                                                                                                                                  29
                           continued… Exclusions to your cover


                           continued…         We will not cover any loss or
                           General
                                              damage, or liability as a result
                           exclusions
                                              of, or arising from
                                              • deliberate or intentional acts by you,
                                                or anyone acting for you, to cause
                                                loss, damage or injury
                                              • flood or storm surge
                                              • erosion, the action of the sea,
                                                tidal wave or high water, unless




                                                                                                                                  your responsibilities to us
                                                – the loss or damage is the result
                                                  of a tsunami.




                                                                                         Your duty of disclosure          32–33

                                                                                         Your responsibilities when you
                                                                                         are insured with us              33–34

                                                                                         Your responsibilities when you
                                                                                         are making a claim                 34

                                                                                         If you do not meet your
                                                                                         responsibilities                   34
exclusions to your cover




30                                                                                                                                31
                              Your duty of disclosure                                           If you do not comply with your duty of disclosure
                                                                                                If you fail to comply with your duty of disclosure, we may
                                                                                                be entitled to reduce our liability under the policy in
                              When you take out, renew, or change or                            respect of a claim, or we may cancel the policy, or do both.
                              vary a policy, or when you make a claim,                          If your non-disclosure is fraudulent, we may also have
                              you have a duty to answer our questions                           the option of avoiding the contract from its beginning.
                              truthfully and provide us with any
                              information that could affect our decision
                              to insure you, or the terms of your policy.                       Your responsibilities when
                              This is called your ‘duty of disclosure’.                         you are insured with us
                              What you must tell us when you apply to take out this policy
                              When applying to take out insurance we will ask you               In addition to your duty of disclosure,
                              certain questions. When answering these questions, you            there are other responsibilities that you
                              must be honest, and you have a duty under the Insurance
                              Contracts Act 1984 to tell us anything                            must meet when you are insured with us.
                              • known to you, and
                                                                                                You must tell us if
                              • which a reasonable person in the circumstances                  • your buildings will be unoccupied for a continuous
                                would include in answer to any question.                          period of 60 days or more
                              We will use your answers to help us decide whether to insure      • any changes have been made to
                              you and anyone else under this policy, and on what terms.           – the address or location where your buildings
                              Who you are answering the questions for                               or contents are insured
                              It is important that you understand you are answering the           – the use of your buildings
                              questions in this way on behalf of yourself and anyone              – your buildings due to renovation, extensions
                              else that you want to be covered by the policy.                       or demolition
                                                                                                  – the people who are insured under this policy
                              If you do not answer our questions in this way
                              If you do not answer our questions in this way, we may              – the sums insured for your buildings or contents
                              reduce or refuse to pay a claim, or cancel the policy, or do      • any people who are insured under the policy have
                              both. If you answer our questions fraudulently, we may              – been convicted of any criminal offence
                              refuse to pay a claim and treat the policy as never being           – made a claim that is not true under this policy
                              in place.                                                             or another insurance policy
                              Renewal, variation, reinstatement or extension of your policy     • there are any changes in circumstances during the
                              When your policy is renewed, varied, reinstated or                  period of insurance.
                              extended you have a duty, under the Insurance Contracts           If you tell us about any of these things, we may charge
                              Act 1984, to tell us anything that you                            an additional premium, change the cover of your policy,
                              • know, or                                                        impose special conditions, or cancel your policy.
                              • could reasonably be expected to know, and                       In addition, you must also
your responsibilities to us




                                                                                                                                                               your responsibilities to us
                              is relevant to our decision whether to accept the risk            • be truthful and frank in any statement you make in
                              of insurance and, if so, on what terms.                             connection with your policy
                              Your duty does not require disclosure of anything that            • pay your premium, including paying instalments regularly
                              • diminishes the risk to be undertaken by us                      • take reasonable precautions to avoid a claim being made
                              • is of common knowledge                                          • obey all laws and make sure anyone acting on your
                              • we know or, in the ordinary course of business,                   behalf obeys all laws
                                ought to know, or                                               • follow the conditions of this policy
                              • is a matter that we indicate your duty has been waived by us.                                       Continued next page 

32                                                                                                                                                             33
                              continued… Your responsibilities when you are insured
                              • not make a fraudulent claim under this insurance policy
                                or any other policy.



                              Your responsibilities when
                              you are making a claim
                              When you make a claim you must
                              meet a number of responsibilities.




                                                                                                                                    our commitment to you
                              You must
                              • be truthful and frank in any statement you make in
                                connection with a claim
                              • take safe and reasonable steps to prevent any further
                                loss, damage or liability occurring
                              • inform the Police as soon as possible if your buildings or
                                contents suffer loss or damage as a result of theft or
                                                                                               The General Insurance Code
                                attempted theft, vandalism or a malicious act
                              • keep all damaged buildings or contents so we can
                                                                                               of Practice                    36
                                inspect them if required
                              • give us any information or assistance we require to            Our Guarantee                  36
                                investigate and process your claim
                              • not pay or promise to pay for a claim, or admit                How we handle your
                                responsibility for a claim                                     personal information         37-38
                              • not repair or replace any damaged buildings or contents
                                without our consent.
                              In addition, you also give us your rights to claim from
                              anyone else
                              • if you have a right to claim from anyone else for an
                                incident covered by us, you give us your rights to
                                make that claim, to conduct, defend or settle any
                                legal action and to act in your name – you must not
                                do anything which prevents us from doing this and you must
                                give us all the information and cooperation that we require.
your responsibilities to us




                              If you do not meet
                              your responsibilities
                              If you do not meet your responsibilities, we may refuse
                              or reduce a claim, cancel your policy, or do both. If we

                                                                                                                                    35
                              cancel your policy, we will advise you in writing.
34
                        The General Insurance                                          How we handle your
                        Code of Practice                                               personal information
                        The purpose of the Code is to raise the                        We are committed to handling your
                        standards of practice and service in the                       personal information in accordance
                        general insurance industry.                                    with the Privacy Act.
                        The objectives of the Code are                                 We need to collect, use and disclose your personal
                        • to promote better, more informed relations between           information in order to consider your application and
                          insurers and their customers                                 to provide the cover you have chosen.
                        • to improve consumer confidence in the general                 You can choose not to give us some or all of your
                          insurance industry                                           personal information, but this may affect our ability
                        • to provide better mechanisms for the resolution of           to provide you with cover.
                          complaints and disputes between insurers and their
                          customers, and                                               When you provide your personal information to us
                        • to commit insurers and the professionals they rely upon      You acknowledge and consent to us collecting and
                          to higher standards of customer service.                     using your information to
                                                                                       • consider your insurance application and any
                        Our commitment to you                                            subsequent application for insurance
                        We have adopted and support the Code and are                   • underwrite and price any policy issued by us or
                        committed to complying with it.                                  our related entities
                        Please contact us if you would like more information           • calculate and offer discounts
                        about the Code.                                                • issue you with a policy
                                                           See back cover for
                                                           contact details            • administer the policy, and
                                                                                       • investigate, assess and pay any claim made by
                                                                                         or against you.
                        Our Guarantee                                                  For these purposes, you acknowledge and consent to us
                                                                                       collecting your personal information from, and disclosing
                                                                                       it on a confidential basis to your intermediary* or the
                        Our Guarantee assures you of quality                           third party who you have been dealing with in respect to
                        insurance and service at all times.                            this insurance policy and who referred you to us, other
                                                                                       insurers, our related entities, insurance reference bureaus,
                        Fair Dealing Guarantee
                                                                                       law enforcement agencies, investigators and recovery
                        We will meet any claims covered by your policy fairly          agents, lawyers, any credit provider that has security over
                        and promptly.                                                  your property, assessors, repairers, suppliers retained by
                                                                                       us to supply goods and services, advisers, and/or the
our commitment to you




                                                                                                                                                                       our commitment to you
                        Money Back Guarantee
                                                                                       agent of any of these.
                        If you change your mind, we provide a cooling-off period       *The intermediary is a company or individual through which you purchased this
                        which lets you cancel your policy within 21 days with a full    insurance, or the company named on the inside front cover of this booklet.
                        refund of your premium. However, your cooling-off period                                                     Continued next page 
                        no longer applies if you make a claim within this time.
                        Service Guarantee
                        We will provide you with the highest standard of service.

36                                                                                                                                                                     37
                        continued… How we handle your personal information

                        When you provide personal information to us about
                        another person
                        You must be authorised to do so, and you must inform
                        that person, unless informing them would pose a serious
                        threat to the life or health of any individual
                        • who we are
                        • how we use and disclose their information, and
                        • that they can gain access to that information.




                                                                                                                           how to take out insurance
                        Privacy of your personal information – for marketing purposes
                        In order to enhance its relationship with you, your
                        intermediary may use your personal information that you
                        have provided us to offer you other products and
                        services, which may be of benefit to you.

                        When you provide your personal information to us –
                        for marketing purposes
                                                                                        How to apply for insurance    40
                        You acknowledge and consent to your personal
                        information being used on a confidential basis by us or          How to renew your insurance   40
                        your intermediary to contact you by mail, phone, or email
                        to provide you information on offers, products and
                        services or for planning, market research and product           How to cancel your policy     41
                        development.
                        In using your personal information for these marketing          How to change your policy     41
                        purposes, we and your intermediary may use and
                        disclose your personal information to offer you our or          Your premium                  42
                        your intermediary’s products and services directly, or to
                        any other organisation to carry out the above marketing
                        purposes on our or your intermediary’s behalf. However
                        • CGU Insurance Limited (CGU Insurance) and your
                          intermediary will not use your information in this
                          way if you have already told CGU Insurance or your
                          intermediary not to
                        • you must inform CGU Insurance or your intermediary
                          if you do not want your personal information disclosed
                          or used for these marketing purposes.
our commitment to you




38                                                                                                                         39
                            How to apply for insurance                                             How to cancel your policy
                            1 If you are taking out a policy with us for the first                  1 If you want to cancel your policy, contact us
                               time, contact us or your insurance adviser, or apply                   or your insurance adviser
                               on line at www.cgu.com.au. You can also send                           We may need your request in writing. If you cancel
                               correspondence to gpo Box 9902, in your capital city                   your policy before it ends, we will refund an amount
                               If we agree to insure you, we will send you a schedule                 for the unused premium.
                               setting out the details of your policy.

                            2 Pay your premium
                                                              See Your premium, page 42 
                                                                                                   How to change your policy
                                                              See Your responsibilities when you
                                                              are insured with us, page 33        1 Contact us or your insurance adviser to change
                                                                                                      or vary your policy
                                                                                                      You will be sent an endorsement schedule that
                            How to renew your insurance                                               includes any changes or variations you have
                                                                                                      requested and we have agreed to, and any special
                            1 If you already have a policy with us, we may send                       conditions we may have applied to that agreement.
                               you an offer to renew your insurance before your                    2 Check the changes
                               current policy expires
                               We will send you an updated schedule and quote                      3 Pay your premium if it has increased
                               a premium based on the information contained in                        We will tell you if your premium has increased. If you
                               your current policy.                                                   pay your premium by instalments, we will adjust your
                                                              If you have any questions, contact      instalments and continue to deduct the new amount
                                                              us or your insurance adviser            from your nominated account. If you pay your
                                                                                                      premium in one lump sum, we must receive your
                            2 Review the proposed policy and premium we offer                         additional payment within one month.
                               If you paid your last premium by instalments, we will
                               continue to deduct payments from your nominated
                               account. If you paid your last premium in one lump
                               sum, we must receive your payment by the due date,
                               otherwise your buildings or contents will not be insured.

                            3 Pay your premium
                                                              See Your premium, page 42 
how to take out insurance




                                                                                                                                                               how to take out insurance



40                                                                                                                                                             41
                            Your premium
                            1 How we calculate your premium
                               We will base your premium on the type of cover
                               you have chosen, including any options that you
                               have added, your sum insured, the excess, the type,
                               location, construction and age of your buildings or
                               contents, the level of security you have, your previous
                               insurance and claims history, and any special
                               conditions that we have applied.
                               Premiums are also subject to Commonwealth and
                               State taxes and/or charges. These include the
                               Goods and Services Tax and stamp duty.




                                                                                                                                      how to make a claim
                                                                                         How to make a claim                    44
                               Your premium, including any taxes and charges,
                               will be listed on your schedule.
                                                                                         How we settle a buildings claim      45-48
                            2 How to pay your premium
                               You can pay your premium in one lump sum,                 How we settle a contents claim       48-51
                               or by instalments.
                               If you pay your premium in one lump sum, you can
                                                                                         How we settle a loss of rent claim      51
                               pay by cash, cheque or credit card.
                                                                                         How we settle a rent default
                               If you pay your premium by instalments, you can
                               pay by credit card or by direct debit from a              claim                                   52
                               financial institution.
                               We may cancel your policy if                              How we settle a theft by a
                               • you do not pay your premium                             tenant claim                            53
                               • your cheque or credit card is dishonoured by your
                                 financial institution, or                                How to resolve a complaint
                               • you pay your premium by instalments and you             or dispute                             54
                                 are more than one month behind.
                               We may refuse to pay a claim if
                               • you pay by instalments and at least one instalment
                                 of the premium has remained unpaid for a period of
                                 at least 14 days.
how to take out insurance




42                                                                                                                                    43
                      How to make a claim                                          How we settle a
                      1 Make sure you have all the information you
                                                                                   buildings claim
                         need to support your claim
                                                                                   1 We will decide how we will settle your claim
                         We will need
                                                                                      If your buildings suffer loss or damage, we will
                         • contact details of any other people involved               decide whether to
                           in the incident, including their name, current
                                                                                      • repair
                           residential address and who they are insured with
                                                                                      • rebuild, or
                         • any letters, notices or court documents about
                                                                                      • pay you the cost to repair or rebuild that part
                           the incident within 72 hours of receiving them
                                                                                        of your buildings that suffered loss or damage.
                         • the incident report number for any claims in
                           relation to theft or attempted theft, vandalism            If we do, we will
                           or a malicious act                                         • pay you up to the buildings sum insured, as listed
                           – the Police will provide you with this number               on your schedule
                             when you report the incident to them.                    • only repair, rebuild or pay you for the part or parts
                                                                                        of the building that actually sustained loss or
                      2 Contact us or your insurance adviser to                         damage, including damaged portions of fixed
                         make a claim                                                   coverings to walls, floors and ceilings only in the
                                                                                        room, hall or passage where the damage occurred
                         You need to make your claim as soon as possible.             • try to match any material used to repair your
                         Any delays may                                                 buildings with the original materials or nearest
                         • reduce the amount that we pay, or                            equivalent available to the original materials
                         • prevent us from paying a claim.                            • repair or pay you the costs to repair your buildings
                         We will give you immediate advice and assistance               if the damage was caused by water or liquid that
                         with your claim, 24 hours a day, 7 days a week.                escaped from a bath, basin, sauna, spa, shower
                                                                                        base or shower wall, however
                         We will ask you a range of questions to help us                – we will not pay the costs to repair or replace the bath,
                         assess your claim. We may                                         basin, sauna, spa, shower base or shower wall.
                         • ask you to provide us with proof of ownership
                                                                                      When we settle your claim, the law that will apply
                         • need to inspect your buildings or contents                 is the law of the State or Territory where the loss,
                         • need quotations from a repairer.                           damage or liability occurred.

                      3 If you need emergency repairs                              2 You must pay any excess that applies
                         If you need to make emergency repairs, we will               If you make a claim, you will need to pay any excesses
                         arrange assistance through our preferred repairers           that apply.
                         and suppliers.                                               If you are claiming for any loss or damage that
                                                      To find out how we settle a      occurs as a result of
                                                      claim, see next page           • a deliberate or intentional act, or vandalism
how to make a claim




                                                                                                                                                     how to make a claim
                                                                                        or a malicious act by a tenant or their visitors,
                                                                                        you will need to pay an additional excess of $400
                                                                                      • an earthquake or tsunami, you will need to pay an
                                                                                        additional excess of $250.
                                                                                        The loss or damage must occur within 72 hours of
                                                                                        the earthquake occurring.
                                                                                                                       Continued next page 

44                                                                                                                                                   45
                      continued… How we settle a buildings claim                          • pay you what the value of the land was just before
                                                                                            the loss or damage occurred, after deducting the
                          You must pay any excess to us, or to the builder
                                                                                            amount we estimate as the value of your land after
                          – we will tell you who to pay the excess to.
                                                                                            the loss or damage occurred and any amount that
                          If we choose to pay you, we may deduct the amount                 you receive as compensation for the loss, however
                          of excess from the amount we settle your claim for.               – the most we will pay is the unused portion of
                          When a claim is made for what we identify as one                    your sum insured.
                          or more separate incidents, you will need to pay any            You can choose your own repairer or tradesman or we
                          excesses that apply for each separate incident we               can help you find one.
                          have identified.
                                                                                          If we authorise repairs, we will deal directly with the
                                                        For excesses that may apply,      repairer or tradesman about payment.
                                                        see your current schedule 


                      3 If you are entitled to use bond money                          5 If we decide to repair or rebuild your buildings
                                                                                          and your current schedule does not show
                          We will reduce the amount we will pay for loss or               ‘including replacement benefit’
                          damage to your buildings or contents by any bond
                          money that you are entitled to use to pay for or                We will
                          reduce the cost of any loss or damage.                          • repair your buildings to the condition they were in
                                                                                            just before the loss or damage occurred
                      4 If we decide to repair or rebuild your buildings                  • pay you the cost of repairing your buildings to the
                          and your current schedule shows ‘including                        condition they were in just before the loss or
                          replacement benefit’                                               damage occurred, or
                                                                                          • pay you what the value of the land and your
                          We will repair or rebuild the part of your buildings
                                                                                            buildings was just before the loss or damage
                          that suffered the loss or damage to a condition as
                                                                                            occurred, after deducting the amount we estimate
                          close as possible to when new, but not better.
                                                                                            as the value of your land and buildings after the
                          If we rebuild your buildings, we will also pay the                loss or damage occurred.
                          amount that you need to pay to ensure your
                          buildings comply with government legislation and             6 After we agree to settle a claim
                          local authority bylaws, unless
                                                                                          The repair or rebuilding work on your buildings
                          you were required to pay these amounts before the
                                                                                          must start within six months of the loss or damage
                          loss or damage occurred, and you did not do so,
                                                                                          occurring, otherwise you will have to pay any
                          however
                                                                                          increase in costs caused by the delay.
                          • if the cost of repairing the damage is less than 50
                            per cent of the cost of rebuilding your buildings,            If the work does not commence in this period, we
                            we will only pay for the additional costs for the             will do one of the following
                            damaged portions.                                             • repair your buildings to the condition they were
                                                                                            in just before the loss or damage occurred
                          If the rebuilding or repair is limited by government
                          legislation or local authority bylaws that reduce the           • pay you the cost of repairing your buildings to
                          floor area of your buildings, we will                              the condition they were in just before the loss or
how to make a claim




                                                                                                                                                    how to make a claim
                                                                                            damage occurred, or
                          • pay the actual cost of rebuilding or repairing the
                            reduced floor area of your buildings                           • pay you what the value of the land and your
                                                                                            buildings was just before the loss or damage
                          • pay the difference between the actual costs of
                                                                                            occurred, after deducting the amount we estimate
                            rebuilding or repairing the reduced floor area of
                                                                                            as the value of your land and buildings after the
                            your buildings and the estimated costs of rebuilding
                                                                                            loss or damage occurred.
                            or repairing your buildings had the limit not applied
                                                                                                                           Continued next page 
                                                        continued next page 
46                                                                                                                                                  47
                      continued… How we settle a buildings claim                          2 You must pay an excess that applies
                      7 If your building is a total loss                                     If you make a claim, you will need to pay any
                                                                                             excesses that apply.
                          We will pay you the sum insured for your buildings,
                                                                                             If you are claiming for any loss or damage that
                          as listed on your schedule, after deducting
                                                                                             occurs as a result of
                          • any excess,
                                                                                             • a deliberate or intentional act, or vandalism
                          • any unpaid premium, and                                            or a malicious act by a tenant or their visitors,
                          • any input tax credit you would have been entitled                  you will need to pay an additional excess of $400
                            to under A New Tax System (Goods and Services Tax)               • an earthquake or tsunami, you will need to pay an
                            Act 1999 if you had paid to repair or rebuild your                 additional excess of $250.
                            buildings.
                                                                                               The loss or damage must occur within 72 hours of
                          If we pay you the sum insured, then your policy                      the earthquake occurring.
                          comes to an end, subject to any continuing liability
                                                                                             You must pay any excess to us, or to the supplier or
                          cover and no refund of your premium is due.
                                                                                             repairer – we will tell you who to pay the excess to.
                                                                                             If we choose to pay you, we may deduct the amount
                      How we settle a                                                        of excess from the amount we settle your claim for.
                                                                                             When a claim is made for what we identify as one or
                      contents claim                                                         more separate incidents, you will need to pay any
                                                                                             excesses that apply for each separate incident we
                                                                                             have identified.
                      1 We will decide how we will settle your claim                                                         For the type and amount of
                          If your contents suffer loss or damage, we will                                                    excess that may apply, see
                                                                                                                             your current schedule 
                          decide whether to
                          • repair an item                                                3 If you are entitled to use bond money
                          • replace an item, or
                                                                                             We will reduce the amount we will pay for loss or
                          • pay you the cost to repair or replace the item.                  damage to your buildings or contents by any bond
                          If we do we will pay up to                                         money that you are entitled to use to pay for or
                          • the contents sum insured, as listed on your                      reduce the cost of any loss or damage.
                            schedule, and
                                                                                          4 If we decide to repair your contents
                          • the maximum amount per item, set, pair, collection
                            or system.                                                       When damage or loss occurs to
                                                                                             • any item that consists solely of fabric
                          If the item is part of a pair, set, collection or system, we
                          will only cover the value of the item itself, however              • carpet which is 10 years old or more, or
                          • the most we will pay is the value of the item as                 • any other contents item that is 15 years old or more
                            a proportion of the combined pair, set, collection               we will repair the damaged item to a condition it was
                            or system.                                                       in before the loss or damage occurred.
                                                           To find out what we will pay,      If loss or damage occurs to any other contents item,
how to make a claim




                                                                                                                                                          how to make a claim
                                                           see page 10 
                                                                                             we will repair the damaged item to the condition it
                                                                                             was when new.
                                                                                             If the item we are repairing is part of a pair, set,
                                                                                             collection or system, we will only cover the
                                                                                             part of the pair, set, collection or system that
                                                                                             was damaged.

48                                                                                                                           Continued next page 
                                                                                                                                                          49
                      continued… How we settle a contents claim                        We will pay you the fair and reasonable costs to
                                                                                       repair or replace your contents as described in Steps
                      5 If we decide to replace your contents                          1, 3 and 4, after deducting
                          When damage or loss occurs to                                • any excess, and
                          • any item that consists solely of fabric                    • any input tax credit you would have been entitled
                                                                                         to under A New Tax System (Goods and Services Tax)
                          • carpet which is 10 years old or more, or
                                                                                         Act 1999 if you had paid to repair or replace your
                          • any other contents item that is 15 years old or more         contents.
                          we will replace the item with an item of the same
                                                                                       We will only pay the cost of replacing an item that is
                          condition. The replacement item will not be better
                                                                                       part of a pair, set, collection or system, even though
                          than the item replaced.
                                                                                       the pair, set, collection or system to which it belongs
                          When loss or damage occurs to any other contents             is less valuable because it is incomplete.
                          item, we will replace the item with the nearest
                                                                                       Any salvage becomes our property.
                          equivalent new item.
                          We will only replace wall, floor and ceiling coverings,
                          including carpets, internal blinds and curtains,
                          in the room, hall or passage where the loss or            How we settle a loss
                          damage occurred.
                          We will not pay to re-carpet adjoining rooms,
                                                                                    of rent claim
                          or your entire rental property.
                          We will only pay the cost of replacing the item even
                                                                                    1 If we decide to pay your loss of rent claim
                          though the pair, set, collection or system to which it       We will pay you loss of rent equal to the weekly
                          belongs is less valuable because it is incomplete.           amount as stated on your rental agreement or
                                                                                       periodic tenancy agreement for up to 12 months.
                          If the item we are replacing is part of a pair, set,
                          collection or system, we will only cover the value           The most we will pay is up to the sum insured as
                          of the item itself, however                                  listed on your schedule.
                          • the most we will pay is the value of the item as
                            a proportion of the combined pair, set, collection
                                                                                    2 If we decide to pay your death of a sole tenant
                                                                                       or tenant hardship claim
                            or system.
                                                                                       We will pay you up to two weeks rent.
                          Any salvage becomes our property.
                                                                                       The most we will pay is $1,000 (inclusive of gst).
                      6 If we decide to pay you the cost to repair
                          or replace your contents                                  3 You must pay any excess that applies.
                                                                                       If you make a claim, you will need to pay any excess
                          When damage or loss occurs to
                                                                                       that applies. The amount of your excess is shown on
                          • any item that consists solely of fabric                    your schedule.
                          • carpet which is 10 years old or more, or
                                                                                       When a claim is made for what we identify as one or
                          • any other contents item that is 15 years old or more       more separate incidents, you will need to pay any
                          our payment will be reduced to allow for wear, tear          excesses that apply for each separate incident we
how to make a claim




                                                                                                                                                 how to make a claim
                          and depreciation.                                            have identified.
                          When loss or damage occurs to any other contents
                          item, we will pay you the cost to repair or replace it.
                                                          Continued next page 



50                                                                                                                                               51
                      How we settle a rent                                        How we settle a theft
                      default claim                                               by a tenant claim
                      1 If we decide to pay your rent default claim               1 If we decide to pay your theft by a tenant claim
                         We will pay you the rent default up to $5,000               Refer to
                         (inclusive of GST). We will calculate the rent default      • How we settle a buildings claim on page 45
                         based on                                                    • How we settle a contents claim on page 48
                         • the weekly amount your rental property is leased
                           for under your rental agreement or periodic tenancy    2 You must pay any excess that applies
                           agreement                                                 If you make a claim, you will need to pay any excess
                         • the number of weeks in rent default                       that applies. The amount of your excess is shown
                                                                                     on your schedule.
                      2 You must pay any excess that applies
                                                                                     Your excess will be increased by $400 for any
                         If you make a claim, you will need to pay any excess        claim arising from the theft of any part of your
                         that applies to your building or contents. The amount       buildings or your contents by your tenant
                         of your excess is shown on your schedule.                   or their visitors.
                         Your excess will be increased by $400 for any claim         When a claim is made for what we identify as one
                         that arises from a tenant                                   or more separate incidents, you will need to pay any
                         • leaving your buildings                                    excesses that apply for each separate incident we
                         • ceasing to pay rent, or                                   have identified.
                         • being evicted from your buildings.

                      3 If you are entitled to use bond money
                         We will pay you the cost of the rent default and any
                         legal expenses. We will reduce this amount by the
                         amount of any bond money remaining after deducting
                         any allowable re-letting expenses and any other costs
                         or expenses you are legally entitled to, however
                         • if a tribunal orders the refund of the bond money
                           to the tenant, on the grounds of hardship, an excess
                           equal to four weeks rent will apply to your claim.
how to make a claim




                                                                                                                                            how to make a claim



52                                                                                                                                          53
                      How to resolve a
                      complaint or dispute




                                                                                  glossary of words with a special meaning
                      1 Talk to us first
                         If you have a complaint, the first thing you or your
                         insurance adviser should do is speak to a staff
                         member in the area concerned. If your complaint
                         relates specifically to a claim, speak with the claims
                         officer managing your claim.
                                                        See back cover for
                                                        contact details 

                         If the staff member or claims officer are unable to
                         resolve the matter for you, you or your insurance
                         adviser may speak to a manager. If you are not
                         satisfied with the decision, you can go to step 2.

                      2 Seek a review
                         If the matter is still not resolved, the manager will
                         refer you or your insurance adviser to the relevant
                         internal dispute resolution area who will conduct a
                         review of your dispute.
                         If you are still not satisfied with the decision, you
                         can go to step 3.

                      3 Seek an external review
                         You are entitled to seek an external review of the
                         decision. The dispute resolution area will provide you
                         or your insurance adviser with information about the
                         options available to you, such as referring you to the
                         external dispute resolution scheme administered by
                         the Insurance Ombudsman Service (ios).
                         Further information about the complaint or dispute
                         resolution procedures is available by contacting us.
                                                        See back cover for
                                                        contact details 
how to make a claim




54                                                                                55
                                           accidental loss or damage          The amount of your excess            The tenant is then treated as     special conditions
                                           damage to, loss or destruction     will be increased if you make        being under a periodic            exclusions, restrictions or
                                           of the buildings that make up      a claim for                          tenancy agreement on the          extensions to cover that are
                                           your rental property, or your      • an earthquake or tsunami           same terms which applied          imposed on specific matters
                                           contents when it is caused by      • vandalism or a malicious act       immediately before the rental     or people.
                                           an unintentional act, or an        • a deliberate or intentional act    agreement ended. This does
                                           unforeseen and uncontrollable      • rent default                       not include any term about        sporting equipment
                                           incident.                          • theft by a tenant.                 the agreement’s term.             equipment designed to be
                                                                              Your excess and any                                                    used in a leisure activity that
                                           allowable re-letting expenses      additional excesses will apply       pet                               involves some element of
                                           re-letting expenses as             for what we identify as each         a domestic animal that you        physical activity or
                                           specified in the current rental     separate identifiable incident.       keep in your rental property or   competition, excluding
                                           agreement for your property.
                                                                                                                   at your rental property.          pedal cycles.
                                                                              fixtures and fittings
                                           bond money                         any household items or               premium                           strata title
                                           money paid by the tenant           household equipment that             the total amount you pay for      title under a strata title or
                                           and held as security against       are permanently attached
                                                                                                                   your insurance that includes      similar community title
                                           damage to the property,            to your buildings.
                                           outstanding rent or other                                               applicable government taxes       scheme where separate parts
                                           costs. Your policy operates on     flood                                such as gst, and any duties       of the scheme building(s)
                                           the basis that your tenant has     the covering of normally dry         or charges payable by you.        have a separate legal title.
                                           paid bond money that equals        land by water escaping or            It is shown on your current       Strata title usually applies
                                           at least four weeks rent.          released from the normal             schedule. You can pay your        to high rise apartments,
                                                                              confines of a watercourse or          premium annually in one lump      townhouses, villas or
                                           claim                              lake, whether or not it is           sum, or by instalments.           duplexes.
                                           a separate identifiable             altered or modified. Flood also
                                           incident for which the policy      includes water escaping from         rent                              sum insured
                                           provides cover.                    the confines of any reservoir,        the amount of money paid, or      your nominated replacement
                                           Where multiple incidents are       channel, canal or dam.               payable, by the tenant to rent    value at today’s prices for your
                                           submitted at the same time or                                           your rental property.             buildings or contents. This will
                                                                              incident
                                           on the same claim form, they                                                                              be listed on your schedule.
                                                                              a single occurrence or a series      rent default
                                           will be treated as separate
                                                                              of occurrences, including an         when a tenant fails to pay the    Supplementary Product
                                           claims for the application of
                                                                              accident or series of accidents,     agreed rent and is in breach      Disclosure Statement (spds)
                                           any policy excess or limitation.
                                                                              arising out of one event.            of a written, rental agreement    a separate document that
                                           deliberate or intentional act      period of insurance                  or periodic tenancy agreement.    updates, corrects or adds
                                           a conscious or reckless act        the length of time between                                             to the information contained
                                           done without the owners                                                 rental agreement
                                                                              the start date and end date of                                         in this pds.
                                           permission.                        your policy, as listed on your       the agreement between you
                                                                              current schedule.                    or your agreement agent and       tenant
glossary of words with a special meaning




                                                                                                                                                                                        glossary of words with a special meaning
                                           endorsement schedule                                                    the tenant. This agreement        the person(s) named in the
                                           a document that includes any       periodic tenancy agreement           must be in writing and state      rental agreement or periodic
                                           information from the existing      applies when a tenant                • the term of the rental period   tenancy agreement and
                                           schedule that has not              continues to occupy the rental       • the amount of rent payable      including that person’s
                                           changed or varied, and             property, after a fixed-term            to you                          partner, children, pets,
                                           confirms any alteration to          rental agreement has expired,        • the amount of the bond          and any other person(s)
                                           the coverage, terms and            and the rental agreement
                                           conditions of your policy.                                                money that the tenant is        permanently living at your
                                                                              does not provide for its                                               rental property.
                                                                              continuation, and a                    required to pay.
                                           excess                                                                                                    Any person(s) including that
                                                                              • notice to leave                    schedule
                                           the amount you pay when you                                                                               person’s partner, children,
                                                                              • notice of intention to leave, or   your current schedule is a        pets and any other person(s)
                                           make a claim on your policy.
                                           The amount and type of             • abandonment termination            document outlining the details    living at your rental property
                                           excess that may apply to your        notice                             of your insurance cover.          under a rental arrangement
                                           policy is shown on your current    has not been given by the tenant     Your schedule may be              that is not a rental agreement
                                           schedule and in this PDS.          to you, or your agent, or by you,    called a policy, renewal or       or periodic tenancy
                                                                              or your agent to the tenant.         endorsement schedule.             agreement.
56                                                                                                                                                                                      57
                                           terrorism                           your contents
                                           any act which may involve           contents that you own or
                                           the use of, or threat of, force,    are legally responsible for.
                                           violence or biological or
                                           chemical warfare, or nuclear        your rental property
                                           pollution or contamination or       where your buildings or
                                           explosion where the purpose         contents are located. This
                                           of the act is to further a          includes any land or other
                                           political, religious, ideological   area that touches your rental
                                           aim, or to intimidate or            property and for which any
                                           influence a government or            statutory authority has made
                                           any section of the public.          you responsible, but it does
                                                                               not include the nature strip
                                           total loss                          outside your rental property.
                                           when we decide that it is           Your rental property is located
                                           uneconomical to repair or           at the situation shown on your
                                           rebuild you buildings or            current schedule.
                                           contents.
                                                                               your policy
                                           unoccupied rental property          the contract between you and
                                           a rental property that no-one       us which provides you with
                                           has lived in for 60 consecutive     insurance cover in exchange
                                           days or more.                       for a premium. Your policy is
                                                                               made up of two documents
                                           us, we and our                      • this Product Disclosure
                                           refers to:                            Statement and policy




                                                                                                                 index
                                           CGU Insurance Limited                 booklet (pds) and any
                                           abn 27 004 478 371                    supplementary pds, plus
                                                                               • your current schedule.
                                           vandalism or a malicious act
                                           a wrongful act motivated by
                                           malice, vindictiveness or spite
                                           with the intention of
                                           damaging the property.

                                           you and your
                                           the person or people named
                                           as the insured on your current
                                           schedule.
                                           If more than one person is
glossary of words with a special meaning




                                           named as the insured, we
                                           will treat a statement, act,
                                           omission or claim by any
                                           one of these people as a
                                           statement, act, omission
                                           or claim by them all.
                                           If you are making a claim, ‘you’
                                           also includes your domestic
                                           partner, you or your partner’s
                                           unmarried children, and you or
                                           your partner’s parents who
                                           normally live with you.

                                           your buildings
                                           buildings that you own or
                                           are legally responsible for.

58                                                                                                               59
                                                                                general, 19-20
        A                                  E                                    when building total loss, 19
                                                                                                                  T
        accidental damage cover, 11, 26    electric motors, 11                                                    tenant hardship, 21, 51
                                                                              liquid damage, 14
        accidental loss or damage, 4, 11   excess                                                                 tenants, 5, 13, 21-23, 26
                                                                              loss of rent, 20-21
        additional cover, 16-18, 26          accidental damage cover, 11                                          terrorism, 29, 58
                                             additional cover, 16
        allowable reletting expenses,
                                             buildings, 45-46
                                                                              M                                   theft or attempted theft, 15, 44
        52, 56                                                                malicious act by tenant, 13, 58     total loss of building, 18, 19,
                                             contents, 49                                                         48, 58
        answering questions, 32                                               mortgagee discharge costs, 16
                                             defined, 56
        applying for insurance, 40                                                                                tsunami, 30
                                             loss of rent, 51
                                             rent default, 52                 O
        B                                    theft by a tenant, 53            optional cover, 19-24, 26
                                                                                                                  U
        bond money, 5, 46, 49, 52            when payable, 5                                                      unoccupied buildings, 33, 57
                                                                              our commitment to you, 36-38
        building claims settlement,        exclusions to cover, 26-30
        45–48                              explosion, 12                      P                                   V
                                                                                                                  vandalism by tenant, 13, 58
        buildings cover, 8, 33                                                periodic tenancy agreement,
        bushfire, 12                        F                                  22, 56                              variation of your policy, 41

                                           fees for rebuilding, 17            personal information, 37-38
        C                                                                     police, reporting of incidents,
                                                                                                                  W
                                           fire, 12
                                                                              15, 34, 44                          water damage, 15, 26
        cancelling your policy, 34, 41     flood, 15, 26, 30, 56
                                                                              premiums, 42, 57                    wind loss or damage, 14
        changing your policy, 41
        claim                              G                                  privacy of information, 37-38       workers’ compensation, 24

          how to make, 44                  general exclusions, 29-30
          settling them, 45-53                                                R                                   Y
                                           General Insurance Code
                                           of Practice, 36                    rainwater, 14                       your responsibilities to us, 33-34
        contents cover
         described, 9                      Glossary, 56-58                    rebuilding fees, 17
         maximum amounts payable, 10                                          renewing insurance, 40
                                           grassfire, 12
         claims settlement, 48-53                                             rent default and theft by
                                           Guarantee, 36
        cooling-off period, 36                                                a tenant, 21-23, 52, 53
                                                                              rental agreement, 21, 22, 23, 51,
        complaints procedure, 54           I                                  52, 57
        cover when rental property         incident cover, 11-15, 32
        sold, 17                                                              responsibilities to us, 33-34
                                           instalment premium, 42
        cyclone, 14
                                           Insurance Contracts Act 1984, 32   S
        D                                  Insurance Ombudsman                settling a claim
                                           Service, 53                          buildings, 45-48
        debris removal, 16
                                           intentional act, 13, 56              contents, 48-51
        deliberate act, 13, 56
                                                                              sole tenant death, 21, 51
        demolition costs, 16               L                                  special contents, 10
        dispute resolution, 54             landslide or subsidence, 12,       storm, 14
        duty of disclosure, 32-33          14-15, 26, 29                      Strata Title Mortgagee
                                           liability cover                    Protection, 23-24
index




                                                                                                                                                       index
                                              exclusions, 27-28               sum insured, 4, 8, 10, 18, 20

60                                                                                                                                                     61
        63
notes



        62
notes
        The insurer – Workers’ Compensation
        If your home is in Western Australia, Tasmania or the
        Northern Territory, the insurer providing the Workers’
        Compensation optional cover is Insurance Australia
        Limited trading as CGU Workers Compensation,
        abn 11 000 016 722.




        This booklet contains information about CGU’s insurance
        products and services. The information was current at
        the date of preparation. More information about CGU’s
        products and services, and up-to-date information may be
        available by calling 13 15 32 or visiting cgu.com.au. We will
        also give you a free paper copy of any updates if you
notes




        request them. If it becomes necessary, we will issue a
        supplementary or replacement pds.                     © 2006
64
GPO Box 9902
in your capital city

Enquiries tel: 131 532
Website: www.cgu.com.au




                                        Insurer
                       CGU Insurance Limited
                         ABN 27 004 478 371
                       AFS Licence No. 238291
                            An IAG Company
PID0300                                           REV4 7/06
Intermediary:




ING General Insurance Pty Limited
ABN 56 072 892 365
AFS Licence No. 288160
Trading as ING Insurance



Insurer:




CGU Insurance Limited
ABN 27 004 478 371
AFS Licence No. 238291
An IAG Company
                                    CV218 REV1 9/05

				
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