Commercial Property Owners Insurance

About This Policy

This policy insures the owner of a commercial investment property. It covers the owner's building and the owner's interest in it as a landlord. It does not insure the tenants' own property or the tenants' businesses, which the tenants insure themselves.

It has six sections. The sections that apply are shown in the schedule.

The flood cover in the E01 Flood Cover endorsement applies only if the schedule shows it.

This policy, together with your schedule, your proposal and any endorsements shown in the schedule, forms your contract of insurance with us. Please read them together and tell us if anything is incorrect. Where the schedule and this wording differ, the schedule applies. Words with special meanings are listed in the Definitions section.

Version and Document History

This document is version-controlled. The version and date shown on the cover page and in the footer of each page govern this text. The version stated in your schedule as current at the start of the policy period applies for the whole policy period, unless your schedule or an endorsement states otherwise.

Important Information

Who issues this policy. The insurer, its Australian Financial Services Licence and its contact details are shown in the schedule. Where the insurer subscribes to the General Insurance Code of Practice, the schedule says so.

Who this policy is for. This wording is written for owners of commercial investment property who buy it as a business. Most will be wholesale clients under the Corporations Act 2001 (Cth). Where a building includes a home or residential tenancy, the buyer may be a retail client. Where a buyer is a retail client, the issuer must give a Product Disclosure Statement and make a Target Market Determination available. This wording is not itself a Product Disclosure Statement.

[WP REVIEW: confirm whether a policy over a mixed-use building with residential tenancies is a home building contract under reg 7.1.12 of the Corporations Regulations 2001 (Cth), and so a retail product for an individual owner.]

Who is insured. You are the owner named in the schedule. Tenants are not insured under this policy.

Your duty when you apply. Before the policy is entered into, renewed, extended, varied or reinstated, you have the duty of disclosure in s.21 of the Insurance Contracts Act 1984 (Cth). You must tell us every matter you know, or that a reasonable person in your circumstances could be expected to know, that is relevant to our decision whether to insure you and on what terms. You do not need to tell us anything that reduces the risk, that is common knowledge, that we know or should know as an insurer, or that we waive. If you do not comply, we may reduce or refuse a claim, or cancel the policy, as that Act allows.

If this policy is a consumer insurance contract under that Act, you instead have a duty to take reasonable care not to make a misrepresentation to us, and the Act sets out what we may do if you do not.

Your tenants matter. The use each tenant makes of the building is central to our decision. Tell us each tenancy's occupation and its share of the floor area, every vacant area, and any tenant who cooks with deep fryers, spray paints, does hot work, stores flammable goods or trades late with a liquor licence. Tell us during the policy period when a tenancy changes, as the Tell Us About Changes obligation requires.

Defects and building works. Tell us about any defect you know of in the building, any order or notice about the building from a council, a building regulator or a fire authority, any combustible cladding, and any building works under way or planned. We consider these matters individually; telling us does not by itself mean we will refuse cover.

Under-insurance. The Under-insurance provision reduces a property claim if the building sum insured is less than 80% of the building's full reinstatement value. Keep the sum insured up to date.

Cooling-off period. You may cancel this policy within 21 days of the date it starts, and within 21 days of each renewal, by telling us in writing. If you have not made a claim, we will refund the full premium paid for that period, less any non-refundable government charges we cannot recover. After that, you may still cancel under the Cancellation condition.

Commission and fees. The schedule or the quote shows any commission or fee paid to your broker in connection with this policy.

Financial Claims Scheme. If the schedule shows the insurer is an APRA-authorised general insurer, you may be entitled to a payment under the Financial Claims Scheme if the insurer becomes insolvent. Information is available at www.fcs.gov.au.

Schedule

(Completed separately for each policy. It contains your specific details.)

The schedule shows:

• Your name and the address of the building
• The policy period, with its start and end dates
• The sections that apply, with the sum insured or limit and the excess for each
• The building sum insured and the date of the latest valuation, and the landlord's contents sum insured
• The tenancy schedule: each tenancy, its occupation and its share of the floor area, and each vacant area
• The loss of rent sum insured and the indemnity period
• Whether the flood cover applies
• The limits of the extensions, where they differ from the defaults stated in them
• Any interested party, such as a financier
• The premium, including stamp duty, any emergency services or fire services levy, and GST
• Any commission or fee paid to your broker
• The insurer and its licence, and the state or territory whose law governs this policy (see the Governing Law condition)
• The endorsements that apply, by code, with their variables

Definitions

In this policy, the words below have these meanings wherever they appear, whatever their capitalisation. The singular includes the plural.

Property

This section always applies. The schedule shows the building sum insured, the landlord's contents sum insured and the excess.

Damage to the Building and Landlord's Contents

If the building or the landlord's contents suffer damage during the policy period, we will pay to repair, rebuild or replace the damaged property, as set out in the Basis of Settlement provision, subject to the Under-insurance provision.

The most we will pay for any one event is the building sum insured for the building and the landlord's contents sum insured for the landlord's contents, plus the amounts the extensions to this section say are payable in addition.

Landlord's contents up to $100,000, or the amount shown in the schedule, are covered within the building sum insured.

Basis of Settlement

Reinstatement and replacement. We pay the cost of repairing or rebuilding damaged property to a condition substantially the same as, but not better or more extensive than, its condition when new, using current materials and methods. Where an item of landlord's contents cannot be repaired, we pay the cost of replacing it with a new item of the same kind and quality. We do not deduct for wear, tear or depreciation.

Costs included. The cost of repairing or rebuilding includes the reasonable cost of demolishing and removing debris, and the fees of architects, engineers, surveyors and other professionals needed to repair or rebuild, within the sum insured.

Building law. The cost of repairing or rebuilding includes the extra cost of complying with the building laws in force at the time of repair, for the damaged part of the building. It does not include the cost of bringing any part of the building that is not damaged into compliance, or of complying with an order or notice served on you before the damage happened.

When you repair. We pay the reasonable cost as it is incurred. You may rebuild on another site, or in a different way, if the cost to us is no greater. Until the work is done, we pay no more than the cost of repairing or rebuilding to the condition the property was in immediately before the damage, allowing for wear, tear and depreciation.

When you do not repair. If you decide not to repair or rebuild, or the law does not allow it, we pay the value of the damaged property immediately before the damage, allowing for wear, tear and depreciation, up to the sum insured.

Sum insured not reduced. The sum insured is not reduced by a claim we pay under this section.

Under-insurance

This clause applies to the building only.

If, at the time of the damage, the building sum insured is less than 80% of the full cost of rebuilding the building at that time, we pay only the proportion of the claim that the building sum insured bears to 80% of that cost.

We do not apply this clause if the amount of the claim is less than 10% of the building sum insured, or where the E11 Under-insurance Waiver endorsement applies.

Capital Additions

Alterations, additions and improvements to the building made during the policy period, other than building works, are covered on the same terms as the building. The most we pay under this extension for any one event is 20% of the building sum insured or $500,000, whichever is less, or the amount shown in the schedule. This amount is in addition to the building sum insured. Tell us about the alterations, additions or improvements at the next renewal.

Emergency Repairs and Temporary Protection

We pay the reasonable cost of emergency repairs, shoring, temporary fencing and other temporary protection needed to prevent further damage or injury after damage covered by this section, within the building sum insured.

Fire Brigade and Emergency Services Charges

We pay the charges a fire brigade or other emergency service lawfully makes for attending damage covered by this section, in addition to the building sum insured.

Keys and Locks

If a key, card or access device for the building that you hold is stolen, we pay the reasonable cost of replacing it and of changing or recoding the locks or access system it opens, up to $5,000 for any one event, or the amount shown in the schedule. This amount is in addition to the building sum insured.

Interested Parties

The interest of each financier or other party noted in the schedule is covered, as the E08 Interested Party endorsement provides. An act or omission of a tenant, without your knowledge or consent, does not reduce your cover.

Defects and Gradual Causes

We do not pay for:

• the cost of fixing a defect, including the cost of removing, replacing or making good any cladding, waterproofing or other part of the building that is defective;
• wear and tear, rust, corrosion, rot, mould, mildew or gradual deterioration;
• damage that happens gradually over time, including from water or moisture seeping, leaking or condensing over a period, unless you did not know of it and could not reasonably have known of it;
• damage caused by insects, vermin or tree roots.

We do pay for damage to other parts of the building that results suddenly and accidentally from a defect, or from one of these causes, for example a fire caused by faulty wiring, or a ceiling that collapses because a pipe bursts. Where we have agreed to cover a known defect, the E02 Known Defect endorsement sets out what applies to it.

Flood

We do not pay for damage caused by flood, unless the schedule shows that the E01 Flood Cover endorsement applies.

Action of the Sea

We do not pay for damage caused by action of the sea.

Earth Movement

We do not pay for damage caused by erosion, subsidence, settling, shrinkage, expansion, landslide, landslip, mudslide or other movement of the earth. We do pay for such damage if it happens within 72 hours of, and as a direct result of, an earthquake, a storm, the escape of liquid from a pipe or tank, or an explosion.

Unoccupied Building

We do not pay for damage caused by theft, malicious damage or the escape of liquid if, when the damage happened, the building had been wholly unoccupied for more than 90 consecutive days, unless we agreed in writing to continue cover, for example by the E06 Vacant Tenancies endorsement.

Building Works

While building works are in progress, we do not pay for damage to the part of the building where the works are being done, or to the works themselves, unless we agreed in writing to cover them, for example by the E03 Building Works endorsement. We do pay for damage to the rest of the building.

Property Not Covered and Other Causes

We do not pay for:

• land, or the cost of stabilising or improving land;
• property that belongs to a tenant, including a tenant's fit-out, stock and plant;
• money;
• vehicles requiring registration, aircraft and watercraft;
• electronic data, or its loss, corruption or reconstruction;
• loss of market value, or any loss of rent or extra expense except as the Loss of Rent section provides;
• damage caused by the deliberate act of you, or of a person acting with your authority;
• damage caused by a lawful order or action of a government or public authority, other than to prevent the spread of fire or other damage;
• damage to property while it is being worked on, if the damage results from that work, but we do pay for resulting fire or explosion.

Loss of Rent

This section applies if the schedule shows it. The schedule shows the loss of rent sum insured and the indemnity period.

Loss of Rent

If damage covered by the Property section makes a tenancy unfit to be occupied or used for its purpose, we will pay the rent you lose during the indemnity period because of that damage.

We work out the rent you lose from the rent payable under each lease in force at the time of the damage. For a tenancy that was vacant at the time of the damage, we pay the rent you can show you would have received from a lease that had been agreed in writing, or was being actively negotiated, at that time.

We also pay the reasonable extra costs you incur to reduce the loss of rent during the indemnity period, up to the amount of rent those costs save.

The most we pay for any one event under this section is the loss of rent sum insured.

Prevention of Access

We pay the rent you lose under the Loss of Rent clause where tenants cannot get to the building, or a public authority prevents access to it, because of damage to property within 1 kilometre of the building that would be covered by this policy if it were the building. The most we pay under this extension for any one event is 10% of the loss of rent sum insured, within that sum insured.

Loss of Rent Exclusions

We do not pay for:

• rent a tenant fails to pay for any reason other than damage covered by this policy, including the tenant's insolvency or default;
• rent for any period after a lease ends, unless the lease would have been renewed or a new lease had been agreed in writing before the damage;
• loss caused by a delay in repairing or rebuilding because of a lack of funds, or because you changed or improved the building;
• penalties, fines or damages you must pay under a lease or any other contract.

Theft

This section always applies. The schedule shows the limit and the excess.

Theft and Damage by Thieves

We will pay for theft of the landlord's contents, and of landlord's fixtures and fittings, from the building during the policy period, if the theft follows forcible entry, or is by a person who was hidden in the building. We also pay for damage to the building caused by thieves or attempted thieves.

The most we pay for any one event under this section is $25,000, or the limit shown in the schedule.

Theft Exclusions

We do not pay for:

• theft by you, a tenant, or a person employed by or acting for either of you;
• theft from a tenancy, or from a common area open to the public at the time;
• property that belongs to a tenant;
• loss discovered only by taking an inventory.

Glass

This section always applies. The schedule shows the excess.

Glass Breakage

We will pay for the breakage during the policy period of fixed glass in the building, including mirrors, glass shower screens and glass in doors, windows, skylights and display cases that form part of the building. We also pay the reasonable cost of boarding up, of replacing signwriting, film or alarm tape on the glass, and of repairing the frames, up to $5,000 for any one event.

The most we pay for any one event under this section is the cost of replacing the glass.

Glass Exclusions

We do not pay for:

• glass that a tenant must insure or replace under its lease, unless the tenant's insurance does not respond, in which case we pay as if this exclusion did not apply;
• glass that was cracked, chipped or scratched before the breakage;
• breakage during building works, or while the glass is being installed, removed or worked on;
• glass in a part of the building that has been unoccupied for more than 90 consecutive days.

Property Owners' Liability

This section applies if the schedule shows it. The schedule shows the limit of liability for any one occurrence and the excess.

Liability as Owner of the Building

We will pay the amount you become legally liable to pay as compensation for personal injury or property damage that happens during the policy period in Australia, caused by an occurrence in connection with your ownership of the building, including:

• the condition, maintenance or repair of the building and the site;
• the common areas, car parks, lifts and escalators; and
• your activities as landlord, including inspecting and letting tenancies.

Who is insured under this section. You, and each of your employees and property managers while acting for you in connection with the building, are insured as if each were named in the schedule.

Limit. The most we pay for all compensation arising from one occurrence is the limit of liability shown in the schedule. All personal injury and property damage arising from one source or original cause is one occurrence.

Defence costs. In addition to the limit, we pay the reasonable legal costs we incur or approve in defending or settling a claim covered by this section, and interest on a judgment up to the date we pay or offer to pay it.

Settlement. We may take over and conduct the defence or settlement of any claim in your name. We may at any time pay you the limit, less any amount already paid, and then we have no further obligation for that occurrence except for defence costs already incurred.

More than one insured. This section applies to each insured as if a separate policy had been issued to each, but the limit is not increased.

Tenants' Businesses

We do not pay for liability arising from a business, trade or activity carried on by a tenant, or from goods a tenant sells or supplies. This exclusion does not apply to your liability as owner of the building for its condition, or for the common areas.

Injury to Workers

We do not pay for personal injury to a person employed by you that arises out of their employment, where you are required by law to insure that liability under a workers compensation scheme, or would be but for an exemption.

Liability under Contracts

We do not pay for liability you have taken on under a contract or agreement, unless you would have had it without the contract or agreement, or it arises under an incidental contract.

Your Own Property

We do not pay for property damage to property you own, or to the building, which the Property section covers. This exclusion does not apply to a tenant's property in your custody or control in a common area.

Vehicles, Aircraft and Watercraft

We do not pay for liability arising from the use of a vehicle that is registered or required to be registered, or of an aircraft or a watercraft longer than 8 metres. This exclusion does not apply to injury for which no compulsory third party insurance responds, or to the use of a vehicle as a tool of trade on the site.

Professional Advice

We do not pay for liability arising from advice, design or a specification you give for a fee, other than advice to a tenant about the building.

Pollution

We do not pay for liability arising from the discharge, dispersal or escape of pollutants, unless it is sudden, identifiable, unintended and unexpected, and happens at a specific time and place during the policy period.

Asbestos

We do not pay for liability arising from asbestos, or from any material containing asbestos.

Fines and Penalties

We do not pay fines, penalties, or punitive, aggravated or exemplary damages.

Tax Audit

This section always applies. The schedule shows the limit and the excess.

Professional Fees for a Tax Audit

If, during the policy period, the Australian Taxation Office or a state revenue office first notifies you of an audit, review or investigation of your tax affairs relating to the income from the building, we will pay the reasonable fees of an accountant, tax agent or lawyer you appoint, with our consent, to deal with it.

The most we pay for all audits first notified during the policy period is $10,000, or the limit shown in the schedule.

Tax Audit Exclusions

We do not pay for:

• tax, interest, penalties or fines;
• fees for preparing a return or other work you would have needed in any case;
• an audit that results from fraud, a false statement or a deliberate failure to lodge by you or someone acting for you;
• an audit of which you were notified before the policy period, or which you knew was likely when this policy was entered into.

How Claims Are Paid

Excess

You pay the excess shown in the schedule for each claim. If one event gives rise to claims under more than one section, only the highest excess that applies is deducted.

The schedule may show a separate, higher excess for damage caused by escape of liquid, or by earthquake. That excess replaces the basic excess for that damage.

For the Loss of Rent section, the excess is the rent for the first 72 hours of the indemnity period, unless the schedule shows otherwise.

GST on Claims

Where you are entitled to an input tax credit for the GST on the cost of a repair or replacement, we pay the claim net of that credit. Each sum insured and limit in this policy includes GST to the extent you are not entitled to an input tax credit for it.

Other Insurance

If a loss covered by this policy is also covered by another insurance policy, we will not refuse or reduce our payment because of that other insurance. We may seek contribution from the other insurer as the law allows. This does not apply where the schedule or an endorsement states that this policy is excess of a specified underlying policy, in which case this policy pays only after the limit of that specified policy is exhausted.

Where a tenant must insure property or liability under its lease, this policy pays first for your own loss, and we may recover from the tenant's insurer what the lease requires it to bear.

Who We Pay

We pay you, or as you direct. Where an interested party is shown in the schedule, we pay as the schedule and the E08 Interested Party endorsement require.

General Exclusions

These exclusions apply to every section.

War

We do not pay for any loss, damage, liability or cost arising from war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, or confiscation by a government or public authority.

Nuclear

We do not pay for any loss, damage, liability or cost arising from ionising radiation, contamination by radioactivity from nuclear fuel or waste, or nuclear weapons material.

Terrorism

We do not pay for any loss, damage, liability or cost arising from an act of terrorism, meaning an act, including the use of force or violence or the threat of it, by any person or group, committed for political, religious, ideological or similar purposes, including the intention to influence a government or to put the public in fear. This exclusion does not apply to the extent the Terrorism Insurance Act 2003 (Cth) requires cover to be provided, including for the building, landlord's contents and loss of rent where they are eligible property and eligible losses under that Act.

Cyber Events

We do not pay for loss of, damage to or corruption of electronic data, or for loss arising from unauthorised use of a computer system, other than physical damage to the building by a resulting fire or explosion. Unauthorised use means use of a computer system by a person not permitted by its owner to use it.

Your Obligations

Tell Us About Claims

Tell us as soon as reasonably practicable after damage, an occurrence, a breakdown or a loss that may lead to a claim, and tell the police promptly about any theft, malicious damage or dishonest act.

Give us the information and documents we reasonably ask for to assess the claim, at your own cost, and allow us to inspect the damaged property before it is repaired, unless emergency repairs are needed under the Emergency Repairs and Temporary Protection extension.

Prevent Further Loss

Take reasonable steps to prevent further damage or loss, and keep damaged property and evidence until we have had a reasonable opportunity to inspect it.

Admissions and Settlements

Do not admit liability for, or agree to settle, a claim under the Property Owners' Liability section without our written agreement, which we will not unreasonably withhold. Co-operate with us in the defence of the claim.

Tell Us About Changes

Tell us during the policy period, as soon as reasonably practicable, if:

• a tenancy changes its occupation, or a new tenant moves in, in a way that increases the risk, such as a tenant that cooks with deep fryers, spray paints, does hot work, stores flammable goods or trades late with a liquor licence;
• more than half of the building's floor area becomes unoccupied, or the whole building is unoccupied for more than 90 consecutive days;
• building works are planned or start;
• you receive an order or notice about the building from a council, a building regulator or a fire authority, or you become aware of a defect that could cause damage or injury.

We will tell you whether the change affects your cover or premium. The Insurance Contracts Act 1984 (Cth) condition applies.

Recovery from Others

After we pay a claim, we may take over your rights to recover the amount from anyone else, and act in your name. Help us do so, at our cost.

Where a lease you signed before the damage releases a tenant from liability for damage to the building, that release does not affect your cover. We will not exercise any right of recovery that the lease has released.

General Conditions

Insurance Contracts Act 1984 (Cth)

Nothing in this policy excludes, restricts or modifies the operation of the Insurance Contracts Act 1984 (Cth). Where this policy is inconsistent with the Act, the Act prevails.

If this policy would otherwise let us refuse to pay a claim, in whole or in part, because of something you did or did not do after this policy was entered into, section 54 of the Act applies. We may not refuse to pay the claim only because of that act or omission. Our liability is reduced by the amount that fairly represents the extent to which our interests were prejudiced. Where the act or omission could reasonably be regarded as capable of causing or contributing to the loss, we may refuse to pay only the part of the claim that the act or omission caused or contributed to. We may not refuse any part that you prove the act or omission did not cause. This applies to every condition, exclusion, limit and obligation in this policy, not only to the claims conditions.

Cancellation

You may cancel this policy at any time by telling us. We refund the premium for the unexpired policy period on a pro-rata basis, less any non-refundable government charges. If we have paid a total loss of the building, no refund applies. If you cancel within the cooling-off period, the Important Information section says what we refund. Your leases or your financier may require you to keep the building insured, so arrange replacement cover before you cancel.

We may cancel this policy only as the Insurance Contracts Act 1984 (Cth) allows, by giving you written notice as that Act requires. We refund the premium for the unexpired period on a pro-rata basis.

Cancellation does not affect a claim for damage, an occurrence or a loss that happened before cancellation.

Renewal

Each renewal is a new contract. Before this policy ends, we will tell you whether we offer to renew it and on what terms, as s.58 of the Insurance Contracts Act 1984 (Cth) requires. We are not obliged to offer renewal.

At each renewal, give us an updated tenancy schedule and, at least every three years, a valuation of the building and its date.

Fraudulent Claims

If a claim is made fraudulently, we may refuse to pay it, as s.56 of the Insurance Contracts Act 1984 (Cth) allows. A fraudulent act of a tenant, without your knowledge or consent, does not affect your cover.

Sanctions

We do not provide cover, pay any claim or provide any benefit under this policy to the extent that doing so would expose us to any sanction, prohibition or restriction under:

• the Autonomous Sanctions Act 2011 (Cth), the Charter of the United Nations Act 1945 (Cth), or regulations made under either Act; or
• the trade or economic sanctions laws of the United Kingdom, the United States of America or the European Union, to the extent they apply to us.

[WP REVIEW: confirm that naming the UK, US and EU regimes is appropriate for Australian capacity; this is a deliberate library-wide scope choice.]

GST

The premium includes GST where it applies, under A New Tax System (Goods and Services Tax) Act 1999 (Cth). Claims are paid as the GST on Claims provision sets out. Tell us your entitlement to input tax credits when you make a claim.

Privacy

We collect, use and disclose personal information about you, your tenants and the people named in a claim to assess the proposal, administer this policy and manage claims, in accordance with the Privacy Act 1988 (Cth) and our privacy policy. Our privacy policy explains how a person can access and correct their information and how to complain about a privacy matter.

Disputes and Complaints

If you are unhappy with our service or a decision, contact us at the details in the schedule. We will acknowledge the complaint within one business day and give our decision within 30 calendar days.

If you are not satisfied with our response, or we have not responded within 30 calendar days, the complaint may be taken to the Australian Financial Complaints Authority (AFCA), a free and independent dispute resolution service, where AFCA's rules allow: www.afca.org.au, 1800 931 678, info@afca.org.au.

Governing Law

This policy is governed by the law of the Australian state or territory in which the building is located.

Jurisdiction

You and we submit to the jurisdiction of the courts of the state or territory whose law governs this policy, and of any court that may hear appeals from them.

Headings and References

Headings are for convenience only. A reference to legislation includes any legislation that amends or replaces it. A reference to a clause by its heading is a reference to that clause as it appears in this wording.

How to Make a Claim

1. Make the property safe and arrange emergency repairs if needed (see the Emergency Repairs and Temporary Protection extension).
2. Contact your broker, or contact us directly at the details shown in the schedule.
3. Tell the police about any theft or malicious damage.
4. Tell us what happened and when, and give us photographs, quotes and invoices.
5. For a loss of rent claim, give us copies of the leases and the rent records for the tenancies concerned.
6. For a claim against you, send us the demand or court documents as soon as you receive them, and do not admit liability.
7. We will acknowledge your claim, keep you informed, and tell you our decision as the General Insurance Code of Practice requires where the insurer subscribes to it.

Endorsement Library

An endorsement applies only if its code is shown in the schedule. Each endorsement changes this policy only as it states, and is read together with the variables shown for it in the schedule. Where an endorsement and the rest of this policy conflict, the endorsement applies to the extent of the conflict. If a variable an endorsement needs is not shown in the schedule, the default stated in the endorsement applies; if it has no default, the endorsement does not apply until we show the variable in the schedule.

E01 Flood Cover

The Flood exclusion does not apply. Damage caused by flood is covered under the Property section and the Loss of Rent section, subject to the flood excess and the flood limit shown in the schedule for this endorsement.

This endorsement does not apply to damage caused by flood that happens within 72 hours of the start of the first policy period in which it is shown, unless this policy replaced another policy that covered flood without a break.

Schedule variables: flood excess (default: $10,000); flood limit (default: the building sum insured).

E02 Known Defect

The defect described in the schedule for this endorsement is known to you and to us. The Defects and Gradual Causes exclusion applies to it as modified here: we pay for sudden and accidental damage that results from the described defect, subject to the special excess shown for this endorsement, but not for the cost of fixing the defect itself. You agree to carry out the remedial work shown in the schedule by the date shown, and to tell us when it is done.

Schedule variables: description of the defect; remedial work and completion date; special excess (default: the basic excess).

E03 Building Works

The Building Works exclusion does not apply to the building works described in the schedule for this endorsement. Damage to the rest of the building during those works is covered. Damage to the works themselves is covered only up to the works limit shown, and only if the works contractor's own contract works insurance does not respond. You must make sure the contractor holds contract works and public liability insurance for the works.

Schedule variables: description and contract value of the works; works period; works limit (default: nil).

E04 Combustible Cladding

The building has the combustible cladding described in the schedule for this endorsement. Damage caused by or spreading through that cladding is covered, subject to the special excess shown. The cost of removing or replacing the cladding, whether or not it is damaged, is not covered. You agree to carry out the remediation plan shown in the schedule, if any, by the date shown.

Schedule variables: description and extent of the cladding; remediation plan and completion date (default: none); special excess (default: the basic excess).

E05 Higher-Hazard Tenancy

The tenancy described in the schedule for this endorsement is used for the higher-hazard activity shown. Cover continues on these conditions, which apply to that tenancy only:

• commercial cooking equipment with deep fryers must have an automatic fire suppression system over the cooking surfaces, and the exhaust hoods, filters and ducts must be cleaned by a professional cleaner at least every 6 months, or as the schedule shows;
• spray painting must be done only in a spray booth that complies with AS/NZS 4114;
• hot work must be done under a written hot work permit system;
• flammable liquids and gases must be stored as the relevant Australian Standard requires.

If you can show that a breach of a condition did not cause or contribute to the damage, we pay the claim as if the condition had been met. Otherwise, the Insurance Contracts Act 1984 (Cth) condition applies. The special excess shown applies to damage that starts in that tenancy.

Schedule variables: tenancy and activity; cleaning interval (default: 6 months); special excess (default: the basic excess).

E06 Vacant Tenancies

Cover continues for the vacant tenancies shown in the schedule for this endorsement, and the Unoccupied Building exclusion does not apply while you meet these conditions:

• the vacant tenancies are locked and secured, and all services not needed for fire protection or security are turned off;
• you, your property manager or a person acting for you inspects them inside and out at least every 14 days, and keeps a record;
• rubbish and combustible material are removed from them.

If you can show that a breach of a condition did not cause or contribute to the damage, we pay the claim as if the condition had been met. Otherwise, the Insurance Contracts Act 1984 (Cth) condition applies. The special excess shown applies to damage caused by malicious damage or the escape of liquid in a vacant tenancy.

Schedule variables: vacant tenancies and their share of the floor area; special excess (default: $2,500).

E07 Heritage-Listed Building

The building is heritage-listed. Where the heritage listing or a heritage authority requires damaged heritage features to be repaired or rebuilt with original or matching materials or methods, we pay the extra cost of doing so, up to the heritage limit shown in the schedule for this endorsement, in addition to the building sum insured.

Schedule variables: heritage limit (default: 10% of the building sum insured).

E08 Interested Party

The interest of the party named in the schedule for this endorsement in the building is noted. We pay a claim under the Property section to that party, or to you and that party jointly, as their interests appear. We will tell that party if we cancel this policy, at the same time as we tell you. An act or omission of yours does not reduce that party's interest, to the extent the law allows.

Schedule variables: name of the interested party; nature of the interest.

E09 Lloyd's Underwriters

Where the insurer is one or more syndicates at Lloyd's, each syndicate is liable only for its own proportion of any claim, and not for another syndicate's proportion. You may serve proceedings on the Lloyd's General Representative in Australia shown in the schedule, who will accept service for the syndicates. Complaints may also be referred to Lloyd's Australia, and then to the Australian Financial Complaints Authority where its rules allow.

Schedule variables: the syndicates and their proportions; the Lloyd's General Representative in Australia.

E10 Residential Tenancies

Part of the building, shown in the schedule for this endorsement, is let for residential use. Those tenancies are covered as part of the building. Their contents, and the liability of their tenants, are not covered. Where a residential tenancy legislation requires you to repair the tenancy, this policy covers the cost of repair only where the damage is covered by the Property section.

Schedule variables: residential tenancies and their share of the floor area.

E11 Under-insurance Waiver

The Under-insurance provision does not apply, provided the building sum insured is at least the reinstatement value shown in a valuation of the building made by a qualified valuer within 3 years before the start of the policy period, and you have given us that valuation.

Schedule variables: valuation date and valuer.

Licence and Trademark Notice

This wording's text is licensed under Creative Commons Attribution 4.0 International (CC BY 4.0). The licence applies to the wording text only. It does not extend to, and no licence is granted in, the "Meridian" name, the Cuttleflow Systems name, logo, bearing mark, or any other trademark, trade dress, or brand asset, all of which remain the property of their respective owners and may not be used without separate permission.

An adopting insurer's own schedule, proposal, endorsements and other materials prepared for use with this wording are not required to be released under CC BY 4.0 merely because they are used together with this wording; CC BY 4.0 requires only that you attribute the wording text you use.

This wording is provided for general use and adaptation. Adopting insurers and their advisers are responsible for obtaining their own legal, regulatory, and reinsurance advice before use, including on whether a Product Disclosure Statement and Target Market Determination are required. Use of this wording requires the approval of the relevant capacity provider. Any Wording Partner review and sign-off letter issued in respect of this wording runs to Cuttleflow Pty Ltd t/a Cuttleflow Systems only and does not constitute legal advice to any adopting insurer or insured.

Designed for the Australian market. Assumes application of the Insurance Contracts Act 1984 (Cth). Users are responsible for their own legal review, regulatory compliance, and reinsurance alignment.