SAFECO HOMEOWNERS POLICY Table of Contents

1 HOM-7030/EP 1/09G1 SAFECOHOMEOWNERSPOLICYT ableofContentsBeginningOnPageINSURINGAGR EEMENT1 SECTIONI PROPERTY COVERAGESCOVERAGEA DWELLING1 COVERAGEB OTHERSTRUCTURESB uilding Property WeCoverBuilding Property WeDoNot CoverBuilding Property LossesWeCoverBuilding Property LossesWeDoNotCover11111 COVERAGEC PERSONALPROPERTYP ersonal Property WeCoverPersonal Property WeDoNotCoverPersonal Property Losses We CoverPersonal Property Losses We DoNotCover44567 COVERAGED ADDITIONALLIVINGEXPENSEANDLOSSOFRENT7 ADDITIONALPROPERTY COVERAGES8 PROPERTYCONDITIONSD eductibleYourDutiesLossSettlement111112 SECTIONII LIABILITYCOVERAGESCOVERAGEE PERSONALLIABILITY ANDCOVERAGEF MEDICALPAYMENTS TO OTHERSL iabilityLosses We CoverLiabilityLosses We DoNot CoverADDITIONALLIABILITY COVERAGESLIABILITYCONDITIONS14141820 SECTIONSI ANDII PROPERTY ANDLIABILITYCONDITIONSP olicy Period andChangesConcealment orFraudLiberalizationClauseCancellationN on-RenewalAssignmentOur Right to RecoverPaymentDeath2121222222222222 POLICYDEFINITIONS23**REPRINTEDFROMTHEFOR MSLIBRARY**REPRINTEDFROMTHEFORMSLIBRARY* * 1 HOM-7030/EP 1/09 INSURINGAGREEMENTIn relianceon theinformationyou havegivenus, wewill pay claims andprovide coverageas describedinthis POLICY if you pay the premiums when due andcomplywith all the applicableprovisions outlined in this policyappliesonly to lossesoccurringduring the PROPERTYCOVERAGESBUILDINGPROPERTYWECOVER COVERAGEA dwellingon theresidence premisesshownin your POLICY Declarations used principally as a privateresidence, includingstructuresattachedto thedwelling other thanfences, drivewaysorwalkways; carpeting, built-in appliances, fixtures; and supplies located on or next to theresidence premisesused to construct,alter or repairthe dwellingorotherstructureson theresidence ,drivewaysand walkways; structures on theresidence premises,separatedfrom the dwellingby clearspace.

2 This includesretainingwalls,decorativeor privacywalls and other structures connected to the dwellingby only a fence,utility line, plumbing, or similar , no matter whereit is located, includingland on which the dwellingis located, except as noted inAdditional PropertyCoverages, Land in wholeor in partforbusiness; or held for rental to any personnot a tenant of the dwelling, unlessused solelyas a COVERW ecover accidental direct physical lossto propertydescribed inBuildingProperty WeCoverexcept as limitedor DONOTCOVERWedo not cover loss caused directly or indirectly by any of the followingexcluded perils . Suchloss is excludedregardlessof any other causeor event contributing concurrentlyor in any sequence to the loss. These exclusionsapplywhether or not the lossevent results in widespread damage or affectsa substantial area; a plumbing, heating, air conditioning orautomatic fireprotectivesprinkler system,or of ahouseholdappliance, or by discharge, leakageor overflowfrom withinthe systemor appliancecausedby freezing, while the dwellingis vacant, unoccupied or under construction, includingbeing newly built,remodeled, reconstructed, renovated or repaired.

3 This provision does not apply if you have used heat in thebuilding; off the watersupply anddrain the systemand appliances of water;**REPRINTEDFROMTHEFORMSLIBRARY** 2 HOM-7030/EP 1 , thawing, pressureor weight of water,iceor snow whether driven by windor not, to a swimmingpool,hot tub or spa, includingtheirfiltration and circulationsystems, fence, landscapesprinklersystem,pavement, patio,foundation, retaining wall, decorativeor privacywall, bulkhead, pier, wharfordock; in, to or from a dwelling under construction, including materials and supplies for use in the construction,until or unlessthe dwelling is occupied. A dwelling under construction includes being newly built, remodeled,reconstructed, renovatedor exclusion doesnot applyif youareoccupying the dwellingas yourprimary residence at the time of the loss; malicious mischief,includingfire caused by arson, or breakageof glassand safety glazingmaterials if the dwellinghas beenvacant for morethan60 consecutivedaysimmediatelybefore the dwelling under construction, including being newly built, remodeled, reconstructed, renovated or repairedis not or repeated seepage or leakage of water or steam, or the presence or condensation of humidity,moistureorvapor which occurs over a period of weeks,months andtear, marring, scratching, deterioration; defect,mechanical breakdown; , rustor other corrosion, orelectrolysis; smudging or industrialoperations; , cracking, shrinking, bulging, or expansionof pavements,patios, foundations, walls,floors,roofs,ceilings,swimmingpool s, hot tubs, spas orchimneys.

4 , vermin, rodents,insectsordomesticanimals; or presenceof plant ,wedo insurefor any resulting loss from resulting loss is itselfexcludedunderBuildingPropertyLosse sWeDoNotCoverin this Section. If loss to coveredproperty is caused bywater or steam not otherwise excluded, we will cover the cost of tearing out and replacing anypartof the buildingnecessaryto repair the systemor appliance. Wedo not cover loss to the systemor appliancefrom which wateror steam ,meaning the existenceof or the actual,alleged, or threateneddischarge,dispersal,seepage, migration, release, escape, emission, transmission or absorption ofpollutantsorcontaminantsat any time except as provided byAdditional Property Coverages HouseholdProductsCoverageunderSection I Law,meaningany construction, remodeling,renovation,repair, or demolitionof buildingproperty,including removalof resultingdebris,unlessspecifically providedunderthispolicy; requirementsof whichresult in a lossin value to property; otherstotest for, monitor, cleanup, remove, contain,treat,detoxify orneutralize, orin any wayrespond to, or assessthe effectsof, exclusionapplies whether ornot the building property hasbeenphysically , sinking, rising, shifting, expanding or contracting of earth, allwhether combined withwater ornot.

5 Earthmovement includes but is not limited toearthquake,landslide, mudflow, mudslide, sinkhole,subsidence, movement resulting from improper compaction, site selection or any other external forces,erosion includingcollapseor subsidenceof land along a bodyofwaterasa resultof erosionorundermining resulting fromthe action of water. Thisincludes thechannelingof a riveror stream; , shifting or displacement of materialssupporting the foundation; blast,volcanic explosion, shockwave, lava flow,lahars and fallout of volcanic exclusion applies whether the earth movement is caused by or resulting from human or animal forcesor any act of cover direct lossbyfire, explosionortheft.**REPRINTEDFROMTHEFORMS LIBRARY** 3 HOM-7030/EP 1/0910. Water Damage,meaning:a.(1)flood, surface water,waves, tidal water,tsunami, seiche, overflowof a body of water,stormsurge or spray from any of these, whether or not driven by wind, includinghurricane or similarstorm;or(2)release of waterheld by a dam,levee, dike or by a wateror flood control deviceor structure; the surfaceof theground, includingthat which exerts pressureon, or seepsor leaksthrougha building, wall, bulkhead, sidewalk, driveway, foundation, swimming pool,hot tub or spa,includingtheir filtrationand circulationsystems,orother structure; overflowsfrom sewersor drainslocated off theresidence premises; escapesor overflowsfromdrainsor relatedplumbing appliances on the residencepremises.

6 However,this exclusion does not applyto overflowand escape caused by malfunctionon the residencepremises, or obstruction on the residencepremises, of a drainor plumbing applianceon the residencepremises; escapesor overflowsor discharges, for any reason, from withina sump pump, sumppumpwell or any other systemdesigned to removewaterwhich is drained from the foundation includes any water exclusion applies whether the waterdamageis caused by or resulting from human or animal forcesor any act of fire,explosion or theftresulting from water damageis PowerInterruption,meaning the failureof poweror other utility serviceif the failuretakes placeoff theresidence anyBuildingPropertyLossesWeCoverensues on theresidence premises,wewill pay onlyfor the Neglect,meaning yourfailureto useall reasonable means to saveand preserveproperty at and afterthe time of a loss,orwhenproperty is orindirectly by war, including the followingandanyconsequence of ,civil war, insurrection, rebellion, or revolution; bya military forceor militarypersonnel.

7 Or seizure orusefor a military of a nuclear weapon shall be deemed a warlikeactevenif Nuclear Hazard,meaning nuclear reaction, nuclear radiation, or radioactive contamination, all whethercontrolledor uncontrolled, and whether or not one of the forcesinitiatingor contributing to these nuclearhazards is coveredwithinthe losseswecover in Section I except direct loss by fire resulting fromthenuclearhazardis IntentionalLoss,meaningany lossarisingout of any act or at the direction of anyinsured; to causea exclusion doesnot applyto an otherwisecoveredproperty loss if the property loss is caused by anact of domesticabuse by anotherinsuredunder the property loss files a police report and cooperates withany lawenforcementinvestigation relatingto theactof domestic abuse; property loss did not cooperatein or contribute to the creationof the pursuant to this provisionshall be limitedto the insurableinterestin the property of theinsuredclaiminga property loss, less paymentsmade pursuant toSection I PropertyConditions, purposesof this provision, domesticabuse means:(1)physical harm, bodily injury,assault, or the infliction of fearof imminent physical harm, bodilyinjury,or assaultbetween family orhousehold members;**REPRINTEDFROMTHEFORMSLIBRARY** 4 HOM-7030/EP 1/09(2)sexual assault of onefamily or householdmember by another;(3)stalking of onefamily or householdmember by another family or household member.

8 Or(4)intentionally, knowingly,or recklessly causing damage to property so as to intimidate or attemptto controlthe behavior of anotherfamily orhousehold Acts orDecisions,including the failure to act or decide, of any person, group, organization or , any ensuing lossnot excludedis Weatherthat contributesin any way witha causeor event not coveredin this sectionto producea ,any ensuing loss caused by a coveredperil andnot otherwise excludedis Planning,Construction or Maintenance,meaningfaulty, , zoning, development,surveying, siting; , specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; usedin repair, construction, renovationorremodeling; ;of property whether on or off theinsured locationby any personor organization. However,any ensuingloss not excluded is ,WetorDry Rot,orBacteriameaning the presence, growth, proliferation or spreadoffungi,wetor dry rot, or bacteria. This exclusion does not apply to the extent coverage is providedfor underAdditionalPropertyCoverages Fungi,WetorDryRot,orBacteriainSection I Collapse,except as provided underAdditional Property Coverages CollapseinSectionI ,any ensuingloss caused by a coveredperil and not otherwiseexcluded is property ownedor used by anyinsuredis coveredwhile it is anywhere in property is usually locatedat aninsured sresidence, other thantheresidence premises,coverage is limited to 10% of the Coverage C limit.

9 Personal property in a newly acquired principal residenceis not subject to thislimitation forthe30daysimmediately afteryou begin to movethe the timetheresidence premisesis under constructionby or for theinsured,our limit of liabilityfor personal property other thanon theresidence premisesshall be equal to the amount specifiedforCoverage limitshall not exceedthe POLICY limit forCoverageC in anyone request property ownedby otherswhile the property is onthatpart oftheresidence premisesoccupied exclusivelybyanyinsured; property owned by a guestor aresidence employee,while the property is at any residenceoccupied by followinggroups of personal property arecoveredonly up to the special limit shownon your PolicyDeclarations page. The special limit is the totalamount available for eachgroup for any one loss and doesnot increasethe Coverage C limit. The loss of, or damageto, morethanone itemin a group arisingfromthe samecauseorevent is considered , pre-paid cards or passes, monetaryvalue carried on electronic chip or magnetic cards,banknotes, bullion, goldother thangoldware, silverotherthan silverware and currency,medals, stamps, tradingcards and comic books, includingany of thesethat are part of a , debit cards, checks, cashier s checks, traveler s checks, money orders and other negotiableinstruments,accounts,deeds, evidencesof debt,letters of credit, notes other thanbank notes,manuscripts,passports,tickets,pers onal documents,and records or dollar limit applies to these categories regardlessof the medium (suchas paper or computersoftware) on which thematerial exists.

10 **REPRINTEDFROMTHEFORMSLIBRARY** 5 HOM-7030/EP 1/09 The limit includesthe cost toresearch, replaceor restorethe materialfromthe lost or ,includingtheir trailers,furnishings, equipment andoutboard not used with jewelry,watches,furs,precious and semiprecious silverware,silver-platedware, goldware, gold-platedwareand ,goldwareandpewterware include:(1)plateware,flatware, hollowware, tea sets,trays,trophiesandthelike;(2)other utilitarianitemsmade of or includingsilveror gold;and(3)all items of ,not excluded elsewhere, while located on theresidence to $1,000of the limit on your POLICY Declarations maybe used for business property,not excluded elsewhere,while locatedofftheresidence , records, discsor other media in a motor vehicleor other motorized land conveyanceon oraway from theresidence any rug, carpet (except wall-to-wallcarpet),tapestry,wall-hangin g or other similar specifically insured,regardlessof insuredlimit, in thisorany , birds land vehiclesincluding theirequipment, partsand accessories while in or ,wedo land vehiclesused solely to servicetheresidence premisesand not subject to motorvehicleregistration or licensedforroad use; for the handicapped andnot licensedforroad use; to$500for disassembledpartsof a motorized landvehiclewhilelocatedon theresidencepremises.