COMMONWEALTH OF AUSTRALIA
Defence Service Homes Act 1918
VARIATION TO THE STATEMENT OF CONDITIONS UNDER SUBSECTION 38A(3)
Instrument 2007 No.3
1. I, Bruce Billson, Minister for Veterans’ Affairs, by this notice to the Secretary of the Department of Veterans’ Affairs, vary the Statement of Conditions dated 23 January 1996 by omitting every part of the Statement of Conditions except Part 5 (Strata title homes) and substituting, in chronological order, the contents of the attached document entitled: Defence Service Homes Insurance Scheme Home Buildings Statement of Conditions.
2. When this Instrument is registered on the Federal Register of Legislative Instruments it is taken to have commenced on
9 September 2002.
Dated 29th May 2007
[signed]
BRUCE BILLSON
Minister for Veterans’ Affairs
Defence Service Homes
Insurance Scheme
Home Buildings
Statement of Conditions
Australian Government DEFENCE
Department of Veterans’ Affairs SERVICE HOMES
INSURANCE SCHEME
Cover plus the Care
Contact any of the Defence Service Homes Insurance Scheme
offices on 1300 552 662
New South Wales South Australia
GPO Box 1504, GPO Box 319,
Sydney NSW 2001 Adelaide SA 5000
Victoria Western Australia
GPO Box 1987R, GPO Box L885,
Melbourne VIC 3001 Perth WA 6001
Queensland/Northern Tasmania
Territory GPO Box 481E,
GPO Box 498, Hobart TAS 7000
Brisbane QLD 4001
To make a credit card payment on your policy simply call
1300 304 989 or visit the Defence Service Homes Insurance
Scheme website at www.dsh.gov.au and follow the prompts.
For emergency after hours assistance call 1300 552 662
P136 April 2005
CONTENTS
Customer Information
About this insurance 4
General Insurance Code of Practice 4
About your policy 4
Understanding your policy 5
“You” and “us” and other defined words 5
The insurance contract 5
Your premium 5
When your insurance starts 6
Terms of the contract 6
14 day money back guarantee 6
Others you want this insurance to protect 7
Your sum insured 7
How claims affect your sum insured 8
The protection we offer 8
Claims 8
Making a claim 8
If we agree you have a claim 9
When we may refuse a claim 10
Cancelling your insurance 11
If the home is especially exposed to risk 12
Duty of disclosure 12
Your duty 12
If you fail in your duty 12
Information you do not have to give us 13
Disputes 13
Safeguarding policy holders personal information 13
Policy Wording
Part 1 Loss or damage to your home 14
The events we insure you for 14
1 Fire 14
2 Explosion 14
3 Lightning or thunderbolt 14
4 Earthquake 14
5 Flood or action of the sea 15
6 Storm, snow or hail 15
7 Rain 15
8 Act intended to cause loss or damage 16
9 Theft or attempted theft 16
10 Escape of liquid 16
11 Riot or violent civil disorder 17
12 Impact 17
13 Falling tree or branch 18
What we pay 18
A Repairing or rebuilding your home 18
B Additional expenses we pay for 20
Limits on what we pay 23
Part 2 Accidental loss or damage 24
What we insure you for 24
What we do not insure you for 24
What we pay 24
Limits on what we pay 25
Part 3 Fusion of electric motors 26
What we insure you for 26
What we do not insure you for 26
What we pay 27
Limits on what we pay 27
Part 4 Owner’s or occupier’s legal liability 28
What we insure you for 28
What we do not insure you for 28
What we pay 30
Limits on what we pay 30
Part 5 Strata title homes 31
What we insure you for 31
What we pay 31
What we do not pay 31
Limits on what we pay 31
Part 6 Death of you or your family 32
What we insure you for 32
Events causing death 32
What we do not insure you for 33
What we pay 33
Limits on what we pay 33
Part 7 General exclusions 34
Part 8 Definitions 35
CUSTOMER INFORMATION
About this insurance
Thank you for insuring your home with the Defence Service Homes
Insurance Scheme. Your home is probably worth more than any of
your other possessions, so it is important that you insure it effectively.
We have designed this policy to provide you with exactly that kind of
security. Not only do we offer to effectively protect you against loss
and damage to your home, we also offer to protect you against related
expenses, accidental loss or damage, broken glass, fusion of electric
motors, owner’s or occupier’s legal liability, and death.
This insurance is available as a benefit for people who qualify under the
Defence Service Homes Act 1918, the Veterans’ Entitlement Act 1986 or
the Defence Force (Home Loans Assistance) Act 1990.
General Insurance Code of Practice
The Defence Service Homes Insurance Scheme has voluntarily adopted
the General Insurance Code of Practice.
The Code sets out standards of good practice and service. It provides
guidelines for claims handling, dispute resolution, agent and employee
training, and for writing policies and other insurance documents.
In doing this, the aim of the Code is to promote both an improved
standard of insurance, and good relations between insurers, insurance
agents, and consumers.
If you want further information about the Code, please contact your
local state office on 1300 552 662.
About your policy
This booklet is your insurance policy. It tells you the types of claims we
will and will not pay for. It also tells you your rights and obligations
and what may happen if you fail in your obligations.
Understanding your policy
We have written your policy in Plain English to make it easier for you
to understand.
If you have any questions about the policy or if you need us to explain any
part of it to you, please contact your local state office on 1300 552 662.
Make sure you read all of it carefully, and keep it in a safe place with
your certificate.
“You” and “us” and other defined words
In your policy and certificate:
“you” or “your” means any person named as “the insured” on your
certificate, and
“we” or “our” or “us” means the Defence Service Homes Insurance
Scheme.
Some other words used in your policy and certificate have special
defined meanings. We either explain the word’s meaning in the place
it appears, or, if the word is in bold, we explain its meaning in the
Definitions section on pages 35 – 37.
The insurance contract
When you buy this policy, you are making a contract of insurance with
us.
In this contract:
• you agree to pay us a premium, and in return
• we agree to provide you with the insurance described in this
policy and which is shown on your certificate.
Your premium
Your premium is the amount you must pay us for the insurance we
provide. You must pay a premium when you first buy the policy and
each year that you renew the policy. When you renew your policy,
we adjust your premium so that it takes account of any changes in
building costs we insure you for.
The premium you must pay is shown on your certificate. You must
pay this amount by the date shown on your certificate as the starting
date for the policy. (The starting date is the first date that appears after
“Period:” in the certificate.)
If you do not pay your premium by the starting date for the policy,
then:
• if a financial institution is named under “Other interested parties”
on your certificate, we may ask it to pay your premium, or
• if you have not mortgaged the home or used it to get a loan, we
may cancel your insurance.
When your insurance starts
Your insurance only starts when you pay us the “Total Premium Due”
shown on your certificate. This is the amount of your premium and
government charges. If you are renewing your policy, the amount due
also includes money you still owe us, or credits we owe you. Remember,
if you do not pay us, you have no insurance.
Terms of the contract
Your policy and certificate are the terms of the contract. These are the
terms that apply if you make a claim, so it is important that you:
• read both of these documents fully and carefully, and
• make sure that all information on your certificate is accurate and
up to date.
14 day money back guarantee
If you are not totally satisfied, you may cancel the insurance contract
up to 14 days after you receive it by:
• telling us in writing that you want to cancel it, and
• returning the policy and certificate to your local state office
(you will find the address on the back of this policy).
If you cancel the contract in this time, we will:
• return to you all of the premium you have paid us, and
• treat your contract with us as though it never existed.
To cancel at other times, please see “Cancelling your insurance” on page 11.
Others you want this insurance to protect
If someone other than you has an interest in the home (for example,
a bank that is mortgagee of the home), and if you want this policy to
protect their interest, then:
• you must tell us in writing who they are and what interest they
have in the home, and
• we must consent to insuring them with this policy, and
• their names must be shown under “Other interested parties” on
your certificate.
Unless all of these things happen, this policy does not protect them.
Your sum insured
Your sum insured is the total amount that you insure the home for,
using this policy. We work out this amount and show it on your
certificate.
Your sum insured is made up of:
• the amount we estimate that it would cost to totally rebuild the
home, plus
• an amount to cover these additional expenses (see pages 20 – 23):
– temporary accommodation
– lost rent
– landlord’s fixtures and fittings
– extra costs related to building
– legal costs for discharge of mortgage
– matching decor
– trees, shrubs and plants.
When it is time to renew your policy, we adjust your sum insured so
that it takes account of any changes in building costs.
If you think that the sum insured shown on your certificate is not
enough to properly insure your home, please contact your local state
office as soon as possible on 1300 552 662.
How claims affect your sum insured
If we pay you a claim that is less than the sum insured, the amount
of the sum insured automatically returns to what it was just before
you made the claim. This means that the next claim you make will be
against the restored amount of the sum insured.
You do not have to pay us any extra premium for restoring your sum
insured in this way.
If we pay you any claim that is equal to or greater than the sum
insured, your insurance contract with us ends.
The protection we offer
This policy tells you the types of claims we will and will not pay for. It
is important that you read all of the policy to make sure you understand
the protection we offer.
It is also important that you are aware of the limits on the amounts we
pay you in this policy. You can find these limits in the policy in the
“Limits on what we pay” sections.
Claims
Making a claim
Please note, if more than one person is insured with this policy, we
will treat a claim by any one of those people as a claim by all of those
people.
As soon as possible after the event that gives rise to a claim, you must:
• report the event to the Police if it involves loss or damage to your
property caused by:
– acts intended to cause loss or damage
– theft or attempted theft
– a vehicle (other than a vehicle you own) colliding with the
home
(You must cooperate with the Police in their investigations.)
• contact us and tell us the details of what has happened
• give us reasonable time to inspect the loss or damage before you
let anyone fix or interfere with it
• give us any information about the claim that we ask you for
• tell us about any other insurance you have for the type of claim
you are making on this policy
• protect the home and site against further loss or damage
• complete our claim form, if we ask for one, and take or mail it to
your local state office. (You will find the address on the back of
this policy.)
Where possible, you should keep evidence of the value of insured
property and also of the costs of loss or damage (for example valuation
certificates and receipts).
This will help to minimise delay in processing your claim.
If we agree you have a claim
It is important to note these rights we have if we agree you have a
claim:
• We may give information about your insurance to solicitors,
loss adjusters or any other people who act for us in assessing,
investigating, settling or defending the claim.
• Only we have the right to:
– settle or defend the claim, or
– make or accept any offer or payment, or in any other way
admit you are liable.
• If the loss or damage you claim for was caused by someone else,
we can use any of the legal rights you have against that person
to try and recover the amount of your claim. This means that we
can take that person to court and sue them for the loss or damage
using your name. Only we have the right to take the matter to
court. If we go to court, we decide how we will argue or settle
your case.
If we recover money from the person who caused the loss or
damage, we keep an amount equal to the amount we paid you for
the claim.
You must cooperate with us in our attempts to legally recover the
amount of the claim.
• Once we pay your claim, we may take possession of the damaged
property. If we do, we decide what we will do with it.
When we may refuse a claim
1. You must tell us in writing if:
• the home is going to be unoccupied for more than 90 consecutive
days, or
• you, your family, or anyone who lives in the home, is going to
start using the home or part of it, for business purposes, or
• you, or someone with your consent, is going to improve,
modify or add to the home.
If you do not tell us about these things in writing before they happen,
we may refuse your claim.
2. We may refuse a claim if you:
• fail in your duty of disclosure (see pages 12 – 13),
• fail to contact us as soon as possible after the event or incident
that gives rise to the claim,
• fail to send to us as soon as possible after you receive them, any:
– letters, notices, or
– court documents,
relating to any event
or incident that resulted or could result in a claim, or
• unreasonably refuse to give us the information and help we ask
you for.
3. We may refuse a claim or reduce the amount we pay you for your
claim if:
• you make a fraudulent claim, or
• the loss or damage you claim for is intentionally caused by you
or by a person acting with your consent.
4. We may refuse a claim if you fail to take reasonable care to:
• protect and maintain the home and site,
• prevent death, bodily injury, or illness to other people, or loss or
damage to their property, or
• comply with all laws and regulations for protecting people or
their property.
5. We may refuse a claim if you do any of the following without us first
agreeing to it:
• make or accept any offer or payment, or in any other way admit
you are liable for the loss or damage,
• settle or defend a claim, or
• sue a person who causes the loss or damage.
6. We may refuse a claim if you do not cooperate with us in our
attempts to:
• assess a claim,
• settle or defend a claim, or
• recover the amount we pay for a claim from whoever caused the
loss or damage.
We may also refuse a claim if you do not cooperate with our solicitors,
loss adjusters, investigators or any other people who act for us in any
of these matters.
Please note, cooperating with us includes going to court to give
evidence if we need you to.
Cancelling your insurance
You may cancel your insurance contract at any time by telling us in
writing that you want to cancel it.
We
may only cancel your insurance contract when the law says we can. We must either send or give you a written notice telling you that we are
cancelling it.
In either case, we may subtract from any premium you pay us:
• an amount to cover the period that we have already insured you for,
and
• administrative fees for issuing and cancelling the contract,
then return the balance of the premium to you.
If you cancel the insurance contract within 14 days of receiving it, we
will return all the premium you have paid us. Please see “14 day money
back guarantee” on page 6.
If the home is especially exposed to risk
In deciding whether to insure you or renew your insurance (and if so,
on what terms) we reserve the right to:
• increase your premium
• impose excess
• increase excess
• limit or refuse insurance we offer in this policy
• refuse to offer to renew your policy.
We will only exercise this right if we think that the home is especially
exposed to any of the risks we insure against in this policy.
Duty of disclosure
We rely on the information you give us in your application to decide if
we should insure you or not. Because this information is so important
to us, the law says there are certain matters that you must
tell us about when you apply for this insurance. The law calls this your duty of
disclosure.
Your duty
Before you enter into the insurance contract you must tell us everything
that you:
• know, or
• could reasonably be expected to know,
that is relevant to us deciding if and on what terms we will insure you.
You must also do this every time you renew, extend, or make changes
to your policy, but only for matters you have not told us about before.
If you fail in your duty
If you do not tell us about these matters at the proper time, we may do
any of the following:
• decrease the amount we pay you for a claim,
• refuse to pay you a claim,
• treat your contract with us as though it never existed (if you
fraudulently kept information from us), and/or
• cancel your policy.
It is important to note that if more than one person is insured with this
policy, we will treat an act, omission, or a statement or claim by any
one of those people as an act, omission, or a statement or claim by all
of those people.
Information you do not have to give us
You do not
have to tell us anything: • that we say or indicate we do not want to know,
• that we know or, as insurers, we should know,
• that decreases the risk we are insuring you for, or
• that is common knowledge.
Disputes
If you are unhappy with any aspect of our service or disagree with a
decision we have made, please discuss it with us. If you aren’t happy
with the result, you can ask for the dispute to be referred to the Internal
Dispute Resolution Committee. If you still disagree with our final
decision, you can use external procedures to try to resolve the dispute.
These external procedures include:
• having the matter reviewed by the the Insurance Ombudsman
Service (this is a free service aimed at resolving disputes between
consumers and insurers),
• taking the matter to court,
• having the matter mediated or arbitrated, or
• having the matter reviewed by the Commonwealth Ombudsman.
If you want further information about disputes, please contact your
local state office on 1300 552 662.
Safeguarding policy holders personal information
Keeping client information secure is a top priority for Defence Service
Homes Insurance. If you would like to know more on how:
• we handle the information we collect about you; and
• what information we disclose about you.
You can obtain a privacy brochure by:
• calling us on 1300 552 662; or
• visiting any State office during business hours.
POLICY WORDING
PART 1 LOSS OR DAMAGE TO YOUR HOME
The events we insure you for
We only insure you if the loss or damage to the home:
• is caused by one or more of the 13 events we list below,
• happens in the period of insurance, and
• is not excluded either by the specific exclusions we list in this
section under “What we do not insure you for”, or the General
Exclusions we list on page 34 or any exclusions listed on your
certificate.
1 Fire
What we insure you for
We insure you for loss or damage to the home caused by fire.
What we do not insure you for
We do not insure you for loss or damage to the home that is caused by
burning or heat, if that happens without flames.
2 Explosion
What we insure you for
We insure you for loss or damage to the home caused by explosion.
3 Lightning or thunderbolt
What we insure you for
We insure you for loss or damage to the home caused by lightning or
thunderbolt.
4 Earthquake
What we insure you for
We insure you for loss or damage to the home caused by earthquake.
You must pay the first $200 of each claim we agree to pay for loss
or damage caused in an earthquake event. An earthquake event
begins with the first earthquake and ends 48 hours after that. If there
is another earthquake outside this 48 hour period, it begins a new
earthquake event. You must pay another $200 if we agree to pay your
claim for loss or damage that happens in a new earthquake event.
5 Flood or action of the sea
What we insure you for
We insure you for loss or damage to the home caused by flood, or a
tidal wave, or the action of the sea.
By “action of the sea” we mean the rise or fall of the sea over a short
period of time.
6 Storm, snow or hail
What we insure you for
We insure you for loss or damage to the home caused by storm, snow
or hail.
By “storm” we mean a violent wind that may occur with thunder or
heavy rain.
What we do not insure you for
We do not insure you for loss or damage caused by wind, rain, snow or
hail entering the home unless it enters because of structural damage to
the home that is directly caused by the storm, snow or hail.
7 Rain
What we insure you for
We insure you for loss or damage to the home caused by rain. Rain
includes that part of the rainfall that is not absorbed by the soil but
runs off as surface water.
What we do not insure you for
We do not insure you for loss or damage caused by rain seeping into or
entering the home because of:
• defects in the structure or design of the home
• defects in building work done on the home
• an opening made in the home so that it could be added to,
renovated, repaired or modified
• failing to properly maintain the home.
We also do not insure you for loss or damage to the external paint work
or other external coatings on the home.
8 Act intended to cause loss or damage
What we insure you for
We insure you for loss or damage to the home caused by any act that is
intended to cause loss or damage.
What we do not insure you for
We do not insure you if the act that causes the loss or damage is by
someone who:
• lives in the home, or
• is at the home or site with your consent or the consent of the
person who lives in the home.
9 Theft or attempted theft
What we insure you for
We insure you for loss or damage to the home caused by theft or
attempted theft.
What we do not insure you for
We do not insure you if the theft or attempted theft was by someone
who:
• lives in the home, or
• is at the site or home with your consent or the consent of the
person who lives in the home.
10 Escape of liquid
What we insure you for
We insure you for loss or damage to the home caused by the sudden
bursting, leaking, discharging or overflowing of liquid from any:
• shower base or shower walls
• fixed tank or fixed pipe
• gutters or drain
• other equipment that is fixed to the home and used mainly to
hold or carry liquid.
If we agree to pay your claim for loss or damage caused by this event,
we will also pay the reasonable cost of locating the source of the
escaped liquid.
What we do not insure you for
We do not insure you for loss or damage that is caused by liquid
splashing or gradually escaping because of something other than a
sudden burst, leak, discharge or overflow.
We do not insure you for the costs of repairing or replacing:
• the defective item, or a defective part of the item, that causes the
loss or damage, or
• any leaking shower base or shower walls.
11 Riot or violent civil disorder
What we insure you for
We insure you for loss or damage to the home caused by riot or violent
civil disorder.
12 Impact
What we insure you for
By “impact” we mean sudden and violent collision.
We insure you for loss or damage to the home caused by the impact of
any:
• animal that is not kept at the home or site
• vehicle, watercraft, aircraft, sonic boom from an aircraft
• space debris, debris from any aircraft, rocket or satellite
• television aerial or radio aerial or its mast.
What we do not insure you for
We do not insure you for loss or damage to the home caused by:
• any animal kept at the home or site
• any animal or bird biting, chewing, pecking or scratching
• insects or vermin.
We also do not insure you for loss or damage to a television aerial or a
radio aerial or its mast unless that loss or damage is caused by an event
we insure in this policy.
13 Falling tree or branch
What we insure you for
We insure you for loss or damage to the home caused by a falling tree
or branch.
If we agree to pay your claim, we also pay the reasonable costs of
removing the fallen tree or branch to the nearest dumping ground.
What we do not insure you for
We do not insure you for loss or damage to the home caused by
lopping or felling a tree if that is done by you or with your consent.
What we pay
A. Repairing or rebuilding your home
If we agree to pay a claim for loss or damage to the home, we may
choose to:
• pay you a cash amount for what we think are the reasonable
costs of repairing or rebuilding the home, or
• pay the reasonable costs you actually incur in repairing the home
if it is damaged (but if it costs less to rebuild the damaged part
of the home than to repair it, we will pay the reasonable costs of
rebuilding it instead), or
• pay the reasonable costs you actually incur in rebuilding the
home if it is destroyed.
Please note, if we agree with you that it would be inappropriate to
rebuild the home, we will pay you the market value of the home before
it was destroyed less the amount it costs us to pay off any mortgage on
the home.
We will pay the reasonable costs of repairing or rebuilding the home
so that, as far as possible, it is in the same condition as it was in
immediately before the loss or damage occurred.
Where possible, we will pay the reasonable costs of matching materials
used in repairing or rebuilding with those originally used. But we do
not promise to repair or rebuild the home to exactly
as it was before the loss or damage occurred.
We only pay the costs of repairing or rebuilding those parts of the
home that are directly destroyed or damaged by an event.
If you have to rebuild the home, you may build it on another site – but
if changing the site increases the costs of rebuilding the home, you
must pay the amount of this increase.
Please note, we will only pay the reasonable costs of repairing or
rebuilding the home if:
• the home has been kept in good repair and condition. This means
it must be structurally sound, secure, and well maintained. If it
is not, we have to reassess the value of the home before we work
out the costs we will pay you. We do this by decreasing the value
of the home, taking into account its age and the extent it has
deteriorated.
• you start repairing or rebuilding the home within 6 months from
when the loss or damage happens. If you do not, and the delay
increases the costs of repair or rebuilding, you must pay the
amount of that increase.
Please also note, we will only pay your costs in getting quotes or
inspection reports if we agree to do so before
you get them.
B. Additional expenses we pay for
As part of your sum insured, we insure you for these additional
expenses:
• temporary accommodation (page 20)
• lost rent (page 20 – 21)
• landlord’s fixtures and fittings (page 21)
• extra costs related to building (page 21)
• legal costs for discharge of mortgage (page 22)
• matching decor (page 22)
• trees, shrubs and plants (page 22 – 23).
Please note, the most we will pay for each claim for all of these
additional expenses is 20% of the sum insured.
. Temporary accommodation
We will pay you the reasonable costs of temporary accommodation
(including temporary accommodation for your household pets) if:
• we agree to pay your claim for loss or damage to the home, and
• the loss or damage makes the home unfit to live in.
We will only pay you the reasonable costs of temporary accommodation
that you are actually responsible for paying.
We will pay these costs:
• for the reasonable time it takes to repair or rebuild the home, or
• for up to 12 months from the date of the loss or damage,
whichever is less.
. Lost rent
We will pay you for lost rent if:
• we agree to pay your claim for loss or damage to the home, and
• the loss or damage makes the home unfit to live in, and
• at the time of the loss or damage you are leasing out the home.
We will pay you lost rent:
• for the reasonable time it takes to repair or rebuild the home, or
• for up to 12 months from the date of the loss or damage,
whichever is less.
. Landlord’s fixtures and fittings
We will pay you for loss or damage to landlord’s fixtures and fittings if:
• the loss or damage is caused by one of the events we insure, and
• you are not living in the home at the time of the loss or damage,
but someone else is living there with your consent.
By “landlord’s fixtures and fittings” we mean any of these items that
are in the home for the person living there to use:
• items that are permanently fixed to the home
• internal blinds and curtains
• carpets.
In each period of insurance, the most we will pay for landlord’s
fixtures and fittings is:
• $10,000, or
• 10 % of the sum insured,
whichever is less.
. Extra costs related to building
If we agree to pay your claim for loss or damage to the home, we will
also pay the reasonable costs of:
• employing an architect, engineer or surveyor
• demolishing
• removing debris from the site
• complying with the requirements of any Statutory Authority that
are served on you after
the loss or damage happens. We will pay these costs only if we agree they are necessary to repair or
rebuild the home. If you have to rebuild the home, you may build it on
another site – but if changing the site increases your building costs,
you must pay the amount of this increase.
. Legal costs for discharge of mortgage
If the home is destroyed and either:
• you choose to rebuild it on another site, or
• we agree to pay you the market value of the home,
then we will also pay the legal costs to discharge any mortgage on the
home.
In each period of insurance, the most we will pay for legal costs to
discharge mortgages is $1,000.
. Matching decor
We will pay the reasonable costs of replacing or modifying an
undamaged part of the home if:
• we agree to repair or replace a part of the home, and
• you reasonably need to replace or modify an undamaged part of
the home to match the part that is repaired or replaced.
The most we will pay for each claim for matching decor is $500.
Please note: you must actually incur the costs of replacing or modifying
the undamaged part of the home before you qualify to claim for those
costs.
. Trees, shrubs, plants
We will pay you the reasonable costs of replacing any tree, shrub or
plant at the home or site if:
• we agree to pay your claim for loss or damage to the home
caused by one of these events:
– fire
– explosion
– lightning or thunderbolt
– earthquake
– impact, and
• the tree, shrub or plant is damaged or destroyed in the same
event.
The most we will pay for each claim:
• for any one tree, shrub or plant – is $200
• for all trees, shrubs and plants – is $2,000.
Please note: you must actually incur the costs of replacing a tree, shrub
or plant before you qualify to claim for those costs.
Limits on what we pay
For any claim you make using Part 1 of this policy (including any part
of that claim that is for additional expenses), the most
we will pay is the sum insured.
The most we will pay for each claim for all
of these additional expenses is 20% of the sum insured:
• temporary accommodation
• lost rent
• landlord’s fixtures and fittings
Please note: the most we will pay for landlord’s fixtures and
fittings is 10% of the sum insured or $10,000 – whichever is less.
• extra costs related to building
• legal costs for discharge of mortgage
Please note: the most we will pay for legal costs to discharge
mortgages on the home is $1,000.
• matching decor
Please note: the most we will pay for matching decor is $500.
• trees, shrubs and plants.
Please note: the most we will pay is $200 for each tree, shrub or
plant, up to a maximum of $2,000 for all trees, shrubs and plants.
PART 2 ACCIDENTAL LOSS OR DAMAGE
In addition to insuring you for loss or damage to the home that is
caused by an event (see Part 1), we also insure you for other accidental
loss or damage to the home. We automatically provide you with this
insurance when you buy this policy. It is part of your sum insured.
What we insure you for
We only insure you if the loss or damage to the home:
• happens during the period of insurance, and
• is accidentally and directly caused by a sudden and unexpected
event (other than by an event we insure in Part 1), and
• your claim is not excluded by the specific exclusions listed
below in the “What we do not insure you for” section, any of the
General exclusions on page 34, or any exclusions listed on your
certificate.
What we do not insure you for
We do not insure you for loss or damage:
• to glass forming part of a glasshouse
• to awnings or shade cloths
• to swimming pool linings or covers
• to electrical motors that form part of the home
• caused by tree lopping or tree removal at the site
• caused by any intentional act.
What we pay
If we agree you have a claim, we may choose to either:
• repair or rebuild the home, or
• pay the reasonable cost of repairing or rebuilding the home.
Where it is not possible to repair or rebuild with material originally
used, we will pay for the closest matching material available.
If we agree to pay your claim for accidental loss or damage, we will
also pay the reasonable costs of replacing or modifying an undamaged
part of the home. We will only do this if:
• you reasonably need to replace or modify the undamaged part of
the home to match the part that is repaired or rebuilt, and
• you actually incur the costs of replacing or modifying the
undamaged part of the home.
Please note, we will only pay your costs in getting quotes or inspection
reports if we agree to do so before
you get them.
Limits on what we pay
The most
we will pay for each claim for accidental loss or damage is $5,000.
The most
we will pay for each claim for matching decor is $500. No excess applies to a claim for accidental loss or damage to any of
these items that are fixed to or form part of the home:
• glass, mirrors, glass cooking tops
• baths or wash basins or sinks
• toilets or toilet cisterns.
But you must pay the first $100 of each claim we agree to pay for any
other type of accidental loss or damage to the home.
PART 3 FUSION OF ELECTRICAL MOTORS
This policy insures domestic electrical motors that form part of the
home (for example, a built-in air conditioner, or the fan motor of
a built-in heater). In addition to insuring you for loss or damage to
electrical motors that is caused by an event, we also insure you for
loss or damage to electrical motors caused by fusion. We automatically
provide you with this insurance when you buy this policy. It is part of
your sum insured.
What we insure you for
We insure you for loss or damage to any domestic electric motor that
forms part of the home.
We only insure you if the loss or damage to the motor:
• is directly caused by an electric current,
• happens during the period of insurance, and
• is not excluded by the specific exclusions listed below in the
“What we do not insure you for” section, any of the General
exclusions on page 34, or any exclusions listed on your
certificate.
What we do not insure you for
We do not insure you for:
• the cost of hiring a replacement motor,
• the cost of replacing worn or broken bearings or switches,
• lighting elements (for example light bulbs or fluorescent tubes)
or heating elements, solenoids, fuses or protective devices (for
example a fuse, or circuit breaker),
• electrical contact points where sparking or arcing occurs during
their ordinary use, and
• the cost of removing or replacing motors forming part of a submersible
pump.
What we pay
If we agree you have a claim, we may choose to pay the reasonable cost
of either repairing or replacing the motor.
Please note: we will only pay your costs in getting quotes or inspection
reports if we agree to do so before
you get them.
Limits on what we pay
The most
we will pay for loss or damage to a motor is the reasonable cost of replacing it, as described in the “What we pay” section.
PART 4 OWNER’S OR OCCUPIER’S LEGAL LIABILITY
We automatically provide you with this insurance when you buy this
policy
What we insure you for
We insure you for the costs of your or your family’s legal liability as
owner or occupier of the home. By “legal liability” we mean your or
your family’s legal responsibility to pay compensation for causing:
• bodily injury or death to someone other than you or your family,
or
• loss or damage to property owned or controlled by someone other
than you or your family.
We only insure you if:
• the accident happens at the home or site during the period of
insurance, and
• you or your family
are legally liable as owners or occupiers of the home or site, and
• your claim for the costs of legal liability is not excluded by the
specific exclusions listed below in the “What we do not insure
you for” section, any of the General Exclusions on page 34, or
any exclusions listed on your certificate.
What we do not insure you for
We do not insure you or your family
for legal liability where the liability is or should have been covered by compulsory workers’
compensation insurance.
We do not insure you for legal liability that arises from:
• bodily injury to, or the illness or death of:
– you or your employee, or
– your family or their employee.
• you or your family
having agreed that you are liable
• from acts or omissions by you or your family
or by someone with your or your family’s consent, if:
– the results of those acts or omissions were intended, or could
reasonably be expected, or
– the acts or omissions by you or your family
were done with reckless disregard for their consequences
• from the transmission of any disease by you or your family
• from you or your family
owning or occupying any land or building, other than the site or home
• from any registered or registrable vehicle you or your family
own or control (other than a motorised wheelchair)
• from any watercraft or aircraft you or your family
own (other than a remote model aircraft, or an unmotorised watercraft less
than 3 metres long)
• from any business, profession or occupation carried on by you,
your family
or any person who normally lives with you in the home
• from lopping or felling of trees by you or with your consent
• from asbestos that is, or has been, in the home or on the site
• from any equipment containing liquid petroleum gas that is used
on, or is in the home or on the site, and that does not comply
with relevant safety laws
• because building work is being carried out on the home or site
that costs $30,000 or more
• from vibrating, or removing or weakening the support of any
land, building or property
• because a swimming pool at the home or site:
– is not fenced in to legal standards, or
– has fencing that is not properly repaired or maintained.
What we pay
We will pay:
• the amount of compensation you or your family are legally
responsible for paying, and
• your or your family’s reasonable fees and expenses for legal
services, but only if we agree in writing to you using those
services before
you use them, and • the legal fees and expenses of the person claiming against you or
your family, if a court orders you or your family
to pay them. Please note: we will only pay your costs in getting quotes or inspection
reports if we agree to do so before
you get them.
Limits on what we pay
The most we will pay for all claims that arise directly or indirectly from
one accident, is the amount of the “Owner’s or Occupier’s legal liability”
shown on your certificate.
There is no limit on the amount we may pay for the legal fees and
expenses of:
• you or your family, or
• the person claiming against you or your family, if a court orders
you or your family
to pay them.
PART 6 DEATH OF YOU OR YOUR FAMILY
This policy insures you for the death of you or your family
that is a direct result of a physical injury caused by one of the “Events causing
death” listed below. We automatically provide you with this insurance
when you buy this policy. It is additional to the sum insured which
means that the sum insured is not affected by any death claim we
agree to pay.
What we insure you for
We insure you for the death of you or your family.
We only insure you if:
• the death is the direct result of a physical injury caused by one of
the “Events causing death” listed below, and
• that event happens at the home or site during the period of
insurance, and
• the death happens within 90 days of that event, and
• we are shown a death certificate given by a registered medical
practitioner as proof of the cause of death, and
• the claim is not excluded by the specific exclusions we list in this
section under “What we do not insure you for”.
Events causing death
We insure you for the death of you or your family
caused by: 1 fire
2 explosion
3 lightning or thunderbolt
4 earthquake
5 flood or tidal wave
6 riot or violent civil disorder
7 impact (that is, sudden and violent collision) with any:
– vehicle, aircraft, tree or branch
– space debris, debris from any aircraft, rocket, or satellite
– television aerial or radio or its mast.
What we do not insure you for
We do not insure you for:
• suicide
• death caused by any kind of illness or disease
• death caused by any kind of war, or war like or terrorist activities.
What we pay
A. Death benefit
If we agree to a claim for death under this Part of the policy, we will
pay you or your legal personal representative a death benefit.
B. Funeral expenses
If we agree to pay a claim for death under this Part of the policy, we
will also pay for funeral expenses.
Limits on what we pay
The most we will pay for death in each period of insurance is $10,000
for each death, up to a maximum of $40,000 for all deaths.
The most we will pay for funeral expenses in each period of insurance
is $2,500 for each funeral, up to a maximum of $10,000 for all funerals.
PART 7 GENERAL EXCLUSIONS
We do not insure you for loss or damage that is not directly
caused by an event that we insure you for, unless we say that we do in this policy.
We do not insure you for loss or damage or legal liability that is
intentionally caused by you or your family
or a person acting with the consent of you or your family.
We do not insure you for loss or damage or legal liability caused by:
• failing to keep the home or site in good repair and condition
• the home or site settling or shrinking or expanding
• hydrostatic pressure, or the earth moving (other than from
earthquake), erosion
• defects in structure, design, work done, or materials used on the
home or at the site
• wear and tear
• rust, corrosion, rot, mildew, seepage, rising damp, any gradual
deterioration or process
• atmospheric or climatic conditions (other than those we say we
will insure in the events section), condensation, evaporation
• any substance at the home or site that is dangerous to health or
property (for example, explosives, or asbestos)
• any process that involves you or someone with your consent
applying heat to any property insured by this policy
• the use, existence, or escape of any nuclear fuel, nuclear material
or nuclear waste
• any war, or war like activities
• any act of terrorism which directly or indirectly causes any loss,
damage, cost or expense of whatsoever nature, resulting from or
in connection with:
– any act of terrorism regardless of any other cause or event
contributing concurrently or in any other sequence to the loss,
– any action taken in controlling, preventing, suppressing or in
any way relating to any act of terrorism.”
• any person or organisation legally destroying, or taking away
your ownership or control of, any property insured by this policy.
PART 8 DEFINITIONS
“act of terrorism”
means:
• a loss that results from the hostile detonation of any device,
whether or not a weapon of war, employing atomic or nuclear
fission and/or other like reaction or radioactive force or matter,
and including but not limited to the use of any device, whether
or not a weapon of war, which disperses or releases radioactive
matter;
• a loss that results from a building being uninhabitable due to the
direct or indirect release of germs, disease or other contagion or
contaminants following the Act of terrorism; or
• a loss resulting from a Nuclear incident.
“certificate”
means your most recent Certificate of Insurance. We give you a
certificate when:
• you first buy your policy,
• we update information on the certificate, or
• you renew your policy.
“employee”
means any person who has a contract of service with you or your family.
“event” or “events”
means events we insure you for and that we list on pages 14 - 18 of
this policy.
“excess”
means the amount you must pay towards a claim. We deduct the
amount of your excess from a claim before we pay it.
If you have to pay excess additional to the earthquake excess we
describe on page 14, or the excess for accidental loss or damage we
describe on page 25, the amount will be shown in the certificate.
“family”
means any of these people who normally live with you at the home:
• spouse, de facto spouse
• parents, grandparents, parents-in-law
• children, grandchildren, sons or daughters-in-law
• brothers, sisters.
“flood”
means the covering of normally dry land by water escaping or released
from the normal boundaries of any:
• watercourse or lake, whether or not modified, or
• reservoir, canal or dam.
“home”
means:
• all residential buildings on the site (including any part of the
building used for residential tenancy, or any part you use for
surgery or office purposes, but excluding any part used for
business, manufacturing or trade purposes), and
• any of these items that are fixed to or form part of those
residential buildings:
– domestic appliances including their motors
– glass, mirrors, baths, wash basins, sinks, glass cooking
tops, toilets, toilet cisterns
– floor coverings (but excluding carpets), and
• any of these items that are fixed to the site:
– in-ground, or above-ground, swimming pools and spas,
– domestic improvements of a structural nature
(for example garages, carports, garden sheds,
underground services, walls, gates and fences), and
• building materials up to a value of $1,000 that are being kept at
the site to use on the home, and that are owned by you.
“market value”
means the value of the home and site immediately before the home was
destroyed minus the value of the home and site immediately after that
event.
“period of insurance”
means the period we insure you for in this policy. The dates next to
“Period:” on the certificate show how long the period of insurance is.
“premium”
means the amount you must pay for the insurance we provide in this
policy, including any government charges.
“site”
means the land at the insured address shown on the certificate that:
• the home is built on, and
• surrounds the home, and
• is used only for domestic purposes (either by you or someone
living at the home with your consent), or for the purposes of your
surgery or office.
“sum insured”
means the total amount you have insured your property for using this
policy. The certificate shows the amount of the sum insured.
“vehicle”
means a motorised machine, and anything attached to it, that is
designed to travel on wheels or on self-laid tracks.
