Statement of Conditions

Instrument 1996 No. 3 as varied

made under the

Defence Service Homes Act 1918

Compilation start date: 1 July 2011

Includes variations up to: LI No. Min.12, 2012

About this compilation

This compilation

This is a compilation of the Statement of Conditions as in force on 1 July 2011.  It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 7 January 2015.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of any uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

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        5

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    6

Your sum insured        6

How claims affect your sum insured      7

The protection we offer       7

Claims         7

Making a claim        7

If we agree you have a claim       7

When we may refuse a claim      8

Cancelling your insurance       9

If the home is especially exposed to risk     9

Duty of disclosure        9

Your duty         10

If you fail in your duty        10

Information you do not have to give us     10

Disputes         10

Safeguarding policy holders personal information   10

Policy Wording

Part 1 Loss or damage to your home    11

The events we insure you for      11

1 Fire          11

2 Explosion         11

3 Lightning or thunderbolt       11

4 Earthquake         11

5 Flood or action of the sea       11

6 Storm, snow or hail        11

7 Rain          12

8 Act intended to cause loss or damage     12

9 Theft or attempted theft       12

10 Escape of liquid        12

11 Riot or violent civil disorder      13

12 Impact        13

13 Falling tree or branch       13

What we pay         13

A Repairing or rebuilding your home      13

B Additional expenses we pay for      14

Limits on what we pay       16

Part 2 Accidental loss or damage     17

What we insure you for       17

What we do not insure you for      17

What we pay         17

Limits on what we pay       17

Part 3 Fusion of electric motors     18

What we insure you for       18

What we do not insure you for      18

What we pay         18

Limits on what we pay       18

Part 4 Owner’s or occupier’s legal liability   19

What we insure you for       19

What we do not insure you for      19

What we pay         20

Limits on what we pay       20

Part 5 Strata title homes      21

What we insure you for       21

What we pay         21

What we do not pay        21

Limits on what we pay       21

Part 6 Death of you or your family     22

What we insure you for       22

Events causing death       22

What we do not insure you for      23

What we pay         23

Limits on what we pay       23

Part 7 General exclusions      24

Part 8 Definitions       25

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’ Entitlements 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. The total premium will be shown on your certificate. It is the amount we charge you for this Insurance Policy and it includes the amount, which we have calculated will cover the risk plus any taxes, and government charges. If you pay by monthly instalments, the premium means the total of the instalments you must pay for the full policy period.

How you can pay your premium

You can pay your premium

•      in one annual payment
• in monthly instalments by direct debit from your credit card or from your account with your financial provider (if we offer this option to you).

Paying your annual premium

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.

Paying your instalment premium

If you are paying your premium by instalments, we will deduct the instalments each month on the day of the month that you nominate as the payment date.

If you are renewing your policy and you paid your previous policy by instalments then we will continue to deduct the instalments for the renewed policy on the day you previously nominated as the payment date, unless you tell us otherwise.

Details of your instalments are shown on your Certificate of Insurance.

What happens if your instalment is unpaid?

Your policy will be cancelled after three consecutive unpaid instalments. We will send you an advice that the policy is cancelled and the effective date.

We may refuse a claim on your policy that occurs more than 30 days after the due date of an unpaid instalment.

Changing your instalment payments

If you wish to change or cancel your direct debit arrangements you need to advise us at least seven days before the next instalment is due.

If you want the policy to remain in force but wish to cancel your direct debit arrangements we will immediately deduct all remaining unpaid instalments from the account or credit card you previously nominated for monthly instalment deductions.

The Cost of this Insurance policy

When calculating your premium we take a range of rating factors into account. These factors and the degree, to which they affect your premium, will depend upon the information you provide us.

The following factors may have a significant impact on the calculation of your premium:

•                  the location of your home
•                  the sum insured
•                  your past claims experience
•                  the construction of your home
•                   whether your home is strata title and subject to Body Corporate Insurance.

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 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 are currently paying your premium by monthly instalments then you must pay us any monthly instalments that are due but unpaid. You authorise us to deduct these amounts by direct debit from the account or credit card you previously nominated for monthly instalment deductions.

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 5 STRATA TITLE HOMES

What we insure you for

If the home is strata title, this Part of the policy provides you and your mortgagee (if the home is mortgaged) with limited protection against loss or damage to the home.

We will only pay for loss or damage to the home if:

• we say we insure that loss or damage in Part 1, 2 or 3 of this policy, and

• this policy does not exclude that loss or damage, and

• the Body Corporate has not, or has not sufficiently, insured the loss or damage, and

• you try to recover the amount of your claim from any other insurer who may have insured the loss or damage, before you claim from us.

What we pay 

We will pay the lower of:

• the sum insured, or

• the amount we say we will pay for that loss or damage in Part 1,  2 or 3 of this policy minus any amount you can recover from the Body Corporate’s insurer or any other insurer.

What we do not pay

We do not pay any excess that applies to the Body Corporate’s insurance policy or to claims you may make using any other insurance policy.

Limits on what we pay

The most we will pay for a claim using this section is the amount of the sum insured.

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.

Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key—Endnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]