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Stephen Hadhazi, Pubic Insurance Adjuster, Proudly presents:


T.W.I.A. DWELLING POLICY
WINDSTORM AND HAIL

A list of all companies participating in the Association is on file in the office of the Texas Department of Insurance and a copy may be
obtained on request.
THIS POLICY JACKET WITH THE COMMON DECLARATIONS PAGE, COVERAGE
PARTS, AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF,
COMPLETES THIS POLICY.
THIS POLICY DOES NOT PROVIDE FLOOD OR WAVE WASH COVERAGE. CONSULT YOUR AGENT FOR AVAILABILITY OF FLOOD COVERAGE

TEXAS WINDSTORM INSURANCE ASSOCIATION
IMPORTANT NOTICE
To obtain information or make a complaint:
You may call the company’s toll-free telephone number for
information or to make a complaint at
1-800-788-8247
You may contact the Texas Department of Insurance to obtain
information on companies, coverages, rights or complaints at
1-800-252-3439
You may write the Texas Department of Insurance
P.O. Box 149104
Austin, TX 78714-9104
FAX # (512) 475-1771
Web: http://www.tdi.state.tx.us
E-mail: ConsumerProtection@tdi.state.tx.us
To obtain price and policy form comparisons and other
information relating to residential property insurance and
personal automobile insurance, you may visit the Texas
Department of Insurance/Office of Public Insurance Counsel
website:
www.helpinsure.com
PREMIUM OR CLAIM DISPUTES: Should you
have a dispute concerning your premium or about a claim
you should contact the agent or the company first. If the dispute
is not resolved, you may contact the Texas Department of
Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not become a part
or condition of the attached document.


AVISO IMPORTANTE
Para obtener informacion o para someter una queja:
Usted pueda llamar al numero de telefono gratis de la compania
para information o para someter una queja al
1-800-788-8247
Pueda comunicarse con el Departamento de Seguros de Texas
para obtener informacion acerca de companias, coberturas,
derechos o quejas al
1-800-252-3439
Pueda escribir al Departamento de Seguros de Texas
P.O. Box 149104
Austin, TX 78714-9104
FAX # (512) 475-1771
Web: http://www.tdi.state.tx.us
E-mail: ConsumerProtection@tdi.state.tx.us
Para obtener formas de comparacion de precios y poliza y otra
informacion acerca del seguro de propiedad residencial y del
seguro de automóvil, visite el sitio web del Departmento de
Seguros de Texas y la Oficina del Asesor Publico de Seguros:
www.helpinsure.com
DISPUTAS SOBRE PRIMAS O RECLAMOS:
Si tiene una disputa concerniente a su prima o a un reclamo,
debe comunicarse con el agente o la compania primero. Si no
se resuelve la disputa, pueda entonces comunicarse con el
departamento (TDI).
UNA ESTE AVISO A SU POLIZA: Este aviso es
solo para proposito de informacion y no se convierte en parte
o condicion del documento adjunto.

Texas Windstorm Insurance Association - Dwelling Policy
Windstorm and Hail
Various provisions in this policy restrict coverage.
Read the entire policy carefully to determine rights,
duties and what is and is not covered.
Throughout this policy, the words “we”, “us”, and
“our” refer to the Texas Windstorm Insurance
Association. “You” and “your” refer to the named
insured shown in the Declarations.
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AGREEMENT
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We will provide the insurance described in this policy
in return for the premium and compliance with all
applicable provisions of this policy.
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DEFINITIONS
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In this policy:
“Business day" means a day other than a
Saturday, Sunday or holiday recognized by the
state of Texas.
“Business” includes trade, profession or
occupation.
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COVERAGES
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COVERED PROPERTY
This insurance applies to the described location and
coverages for which a limit of liability is shown in the
Declarations.
COVERAGE A (Dwelling)
We cover:
1. The dwelling on the described location shown in
the Declarations, used principally for dwelling
purposes, including structures attached to the
dwelling.
2. Materials and supplies located on or next to the
described location used to construct, alter or
repair the dwelling or other structures on the
described location. The total limit of liability for
this item is 10% of the Coverage A (Dwelling)
limit of liability. This is not additional insurance
and does not increase the Coverage A (Dwelling)
limit of liability.
3. If not otherwise covered in this policy, building
equipment and outdoor equipment used for the
service of and located on the described location.
4. Maintenance equipment and supplies, floor
coverings, window shades, refrigerators and
stoves that you own as a landlord, located on the
described location.
5. Other structures on the described location, set
apart from the dwelling by clear space. This
includes structures connected to the dwelling by
only a fence, utility line or similar connection.
The total limit of liability for other structures is
10% of the Coverage A (Dwelling) limit of
liability. This is not additional insurance and
does not increase the Coverage A (Dwelling)
limit of liability. We do not cover other
structures used for business purposes.
6. Other structures specifically described in the
Declarations. We do not cover other structures
used for business purposes.
COVERAGE B (Personal Property)
We cover:
Personal property and business personal property
owned or used by you or members of your family
residing with you while it is on the described location.
At your request, we will cover personal property
owned by a guest or residence employee while the
property is on the described location.
You may use up to 10% of the Coverage B (Personal
Property) limit of liability for loss by windstorm or
hail to personal property covered under Coverage B
(Personal Property) while anywhere in the world.
This coverage does not apply to business personal
property or property of guests or residence
employees. This is not additional insurance and does
not increase the Coverage B (Personal Property) limit
of liability.
At your request, you may use up to 10% of the
Coverage B (Personal Property) limit of liability for
loss by windstorm or hail to property of others while
in your custody and located on the described location.
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This is not additional insurance and does not increase
the Coverage B (Personal Property) limit of liability.
PROPERTY NOT COVERED
We do not cover:
1. Animals.
2. Money, currency or bullion.
3. Securities, deeds, or evidences of debt.
4. Records, books of records or manuscripts.
5. Motor or engine propelled vehicles or machines
designed for movement on land, including
attached machinery or equipment. However, we
do cover such vehicles, while located in a fully
enclosed building, which are not subject to motor
vehicle registration and are:
a. Devices and equipment for assisting the
handicapped.
b. Power mowers and other lawn and garden
equipment not exceeding 18 horsepower.
c. Golf carts.
d. Vehicles or machines used for recreational
purposes while located on the described
location.
6. Aircraft, meaning any device used or designed
for flight except model or hobby aircraft not used
or designed to carry people or cargo.
7. Watercraft, including outboard motors and
furnishings or equipment. However, we do cover
watercraft, including outboard motors and
furnishings or equipment, while located on land
in a fully enclosed building on the described
location.
8. Unless specifically described in the Declarations:
a. Cloth awnings.
b. Greenhouses and their contents.
c. Buildings or structures located wholly or
partially over water and their contents.
d. Radio and television towers.
e. Outside satellite dishes, masts and antennas,
including lead-in wiring.
f. Wind chargers and windmills.
9. Breakaway walls, or personal property contained
within a breakaway wall enclosure. Breakaway
wall means a wall that is not a part of the
structural support of the building and is intended
through its design and construction to collapse
under specific lateral loading forces, without
causing damage to the elevated portion of the
building or supporting foundation systems.
10. Property that is covered under another coverage
form of this or any other policy in which it is
more specifically described, except for the excess
of the amount due from the other insurance.
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EXTENSIONS OF COVERAGE
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1. Debris Removal.
We will pay your expense for the removal from
the described location of:
a. Debris of covered property if windstorm or
hail causes the loss.
b. A tree that has damaged covered property if
windstorm or hail causes the tree to fall.
This does not increase the limit of liability that
applies to the damaged property.
When insurance under another policy applies to
the damaged property, we will pay only a
proportion of debris removal expense,
determined by dividing the limit of liability that
applies to the damaged property on this policy by
the total limit of liability that applies to the
damaged property under both policies, and
applying the resulting percentage to the debris
removal expense.
2. Reasonable Repairs.
If windstorm or hail causes the loss, we will pay
the reasonable cost you incur for necessary
repairs made solely to protect covered property
from further damage. This coverage does not
increase the limit of liability that applies to the
property being repaired.
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3. Improvements, Alterations and Additions.
a. If you are a tenant of the described location,
the Coverage B (Personal Property) limit of
liability applies to a loss caused by
windstorm or hail to improvements,
alterations and additions, made or acquired
at your expense, to that part of the described
location used only by you.
b. If you are a condominium owner at the
described location, the Coverage B
(Personal Property) limit of liability applies
to a loss caused by windstorm or hail to
alterations, fixtures, installations and
additions which are part of the building and
contained within the unfinished interior
surfaces of the perimeter walls, floors and
ceilings of the condominium unit, and the
exterior surfaces of balconies and terraces of
the condominium unit. Coverage B
(Personal Property) does not include
property in or on the condominium unit
which is defined in the condominium’s
declarations or by-laws as a common
element.
This is not additional insurance and does not
increase the Coverage B (Personal Property)
limit of liability.
4. Property Removed.
We will pay for expense and damage incurred in
the removal of covered property from the
described location endangered by windstorm or
hail. This coverage exists on a pro-rata basis for
30 days at each location to which such property
is removed for preservation. This is not
additional insurance and does not increase the
Coverage B (Personal Property) limit of liability.
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PERILS INSURED AGAINST
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We cover direct physical loss to the covered property
caused by windstorm or hail unless the loss is
excluded in the Exclusions.
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EXCLUSIONS
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The following exclusions apply to loss to covered
property:
1. Flood.
We do not cover under any and all circumstances
loss or damage caused by or resulting from flood,
surface water, waves, storm surge, tides, tidal
water, tidal waves, tsunami, seiche, overflow of
streams or other bodies of water, or spray from
any of these, all whether driven by wind or not.
2. Governmental Action.
We do not cover loss caused by the destruction
of property by order of governmental authority.
3. War.
We do not cover loss resulting directly or
indirectly from war. This includes undeclared
war, civil war, insurrection, rebellion, revolution,
warlike act by military personnel, destruction or
seizure or use for military purpose, and any
consequence of these. Discharge of a nuclear
weapon will be deemed a warlike act even if
accidental.
4. Nuclear Hazard.
We do not cover loss resulting directly or
indirectly from nuclear reaction, radiation or
radioactive contamination, all whether controlled
or uncontrolled or however caused.
5. Power Failure.
We do not cover loss resulting directly or
indirectly from power failure, unless such failure
results from direct physical damage to power,
heating or cooling equipment located on the
described location caused by windstorm or hail.
6. Rain.
We do not cover loss or damage caused by or
resulting from rain, whether driven by wind or
not, unless direct force of wind or hail makes an
opening in a roof or wall and rain enters through
this opening and causes the damage.
7. Electricity.
We do not cover loss to electrical devices or
wiring caused by electricity resulting from
artificial causes.
8. Ordinance or Law.
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We do not cover loss or damage caused directly
or indirectly by the enforcement of any ordinance
or law:
a. Regulating the construction or repair of any
property; or
b. Requiring the demolition of any property,
including the cost of removing its debris.
9. Mold, Fungi, or Other Microorganisms.
We do not cover loss or damage caused by or
resulting from fungi or mold and other
microorganisms, except as provided in 9.b.
a. “Fungi or mold and other microorganisms”
when used in the policy or in this exclusion
means the presence, growth, proliferation,
spread or any activity of fungi or mold and
other microorganisms.
This exclusion also applies to the cost:
(1) To remove fungi or mold and other
microorganisms from covered property
covered under this Texas Windstorm
Insurance Association policy.
(2) To tear out and replace any part of the
building or other covered property as
needed to gain access to the fungi or
mold and other microorganisms; and
(3) Of testing of air or property to confirm
the absence, presence or level of fungi
or mold and other microorganisms;
b. This exclusion applies unless the fungi or
mold and other microorganisms are located
upon the portion of covered property which
must be repaired or replaced because of
sudden and accidental direct physical
damage resulting from wind or hail which
would otherwise be covered under this
policy. For purposes of this exclusion,
sudden and accidental shall include a loss
event that is hidden or concealed for a
period of time until it is detectable. A
hidden loss must be reported to us no later
than 30 days after the date it was detected or
should have been detected.
c. However, the exception to the exclusion
described in “b.” above does not include:
(1) the cost to treat, contain, remove or
dispose of the fungi or mold and
other microorganisms beyond that
which is required to repair or
replace the covered property
physically damaged by water;
(2) the cost of any testing of air or
property to confirm the absence,
presence or level of fungi, mold
and other microorganisms whether
performed prior to, during or after
the removal, repair, restoration or
replacement;
(3) the cost of any decontamination of
the covered property covered under
this Texas Windstorm Insurance
Association policy;
(4) any increase in loss under this
Texas Windstorm Insurance
Association policy related to loss of
use, debris removal, additional
living expense, or diminution in
value resulting from c. (1), (2), and
(3).
10. Asbestos.
We do not cover any loss or damage caused by
or resulting from asbestos. We do cover direct
physical loss caused by windstorm or hail to
covered property containing asbestos materials;
however, we do not cover the additional cost or
expense to test for, monitor, clean up, remove,
contain, treat, abate or assess the effects of
asbestos or asbestos-containing materials.
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DEDUCTIBLE
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We will not pay for loss or damage to any item in
any one occurrence until the amount of loss or
damage exceeds the Deductible amount shown in
the Declarations for that item. We will then pay
the amount of loss or damage for that item in
excess of the Deductible amount, up to the
applicable limit of liability, after any deduction
required by the Coinsurance Condition.
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CONDITIONS
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1. Policy Period. This policy applies only to loss
which occurs during the policy period shown in
the Declarations.
2. Insurable Interest and Limit of Liability. Even if
more than one person has an insurable interest in
the property covered, we will not be liable in any
loss:
a. For an amount greater than the interest of a
person insured under this policy; or
Page 5
b. For more than the applicable limit of
liability.
3. Concealment, Misrepresentation, and Fraud. This
policy is void as to you, if you have
intentionally concealed or misrepresented
any material fact or circumstance, made
false statements or committed fraud relating
to this insurance, whether before or after a
loss.
4. Duties After Loss
a. Your Duties After Loss. In case of a loss to
covered property caused by windstorm or
hail, you must:
(1) Give prompt written notice to us of the
facts relating to the claim.
(2) Protect the property from further
damage.
(3) Make reasonable, necessary and
temporary repairs to protect the
property.
(4) Keep an accurate record of repair
expenses.
(5) Furnish a complete inventory of
damaged personal property showing the
quantity, description and amount of
loss. Attach all bills, receipts and related
documents which you have that justify
the figures in the inventory.
(6) As often as we reasonably require:
(a) Provide us access to the damaged
property;
(b) Provide us with pertinent records
and documents we request and
permit us to make copies;
(c) Submit to examination under oath
and sign and swear to it.
(7) Send to us, if we request, your signed
sworn proof of loss within 91 days of
our request on a standard form supplied
by us. We must request a signed sworn
proof of loss not later than the 15th day
after we receive your written notice, or
we waive our right to require a proof of
loss. Such waiver will not waive our
other rights under this policy.
(a) This proof of loss shall state, to the
best of your knowledge and belief:
(i) The time and cause of loss;
(ii) The interest of the insured and
all others in the property
involved including all liens on
the property;
(iii) Other insurance which may
cover the loss;
(iv) The actual cash value of each
item of property and the
amount of loss to each item;
and
(v) The name of the occupant and
the occupancy of the property
at the time of the loss.
(b) If this policy provides replacement
cost coverage and you elect to
make claim under the replacement
cost coverage, this proof of loss
shall also state, to the best of your
knowledge and belief:
(i) The replacement cost of the
property; and
(ii) The full cost of repair or
replacement of loss without
deduction for depreciation.
b. Our Duties After Loss.
(1) Not later than the 15th day after we
receive your written notice of claim, we
must:
(a) Acknowledge receipt of the claim.
If our acknowledgment of the claim
is not in writing, we will keep a
record of the date, method and
content of our acknowledgment.
(b) Begin any investigation of the
claim.
(c) Specify the information you must
provide in accordance with item (7)
above.
We may request additional information,
if during the investigation of the claim
Page 6
such additional information is
necessary.
(2) After we receive the information we
request, we must notify you in writing
within 15 business days of whether the
claim will be paid, or has been denied
or whether more information is needed.
(3) If we do not approve payment of your
claim, we must:
(a) Give the reason for denying your
claim, or
(b) Give the reasons we require
additional time to process your
claim. But, we must either approve
or deny your claim within 45 days
after our request for additional
time.
5. Loss Payment.
a. If we notify you that we will pay your claim,
or part of your claim, we must make
payment not later than the 5th business day
after we notify you.
b. If payment of your claim or part of your claim
requires the performance of an act by you,
we must make payment not later than the 5th
business day after the date you perform the
act.
6. Catastrophe Claims. If a claim results from a
weather related catastrophe or a major natural
disaster, each claim handling deadline shown
under the Duties After Loss and Loss Payment
provisions is extended for an additional 15 days.
Catastrophe or major natural disaster means a
weather related event which:
a. Is declared a disaster under the Texas
Government Code Chapter 418; or
b. Is determined to be a catastrophe by the
Texas Department of Insurance.
7. Loss Settlement. Covered property losses are
settled as follows:
a. Our limit of liability and payment for
covered losses to personal property,
carpeting, outdoor antennas, awnings, fences
and structures other than buildings will not
exceed the smallest of the following:
(1) The actual cash value at the time of loss
determined with proper deduction for
depreciation;
(2) The cost to repair or replace the
damaged property with material of like
kind and quality, with proper deduction
for depreciation; or
(3) The specified limit of liability of the
policy.
b. Our limit of liability for covered losses to
dwelling and other building(s) under
Coverage A (Dwelling) will be subject to the
following:
(1) If, at the time of loss, the Coverage A
(Dwelling) limit of liability is:
(a) 80% or more of the full
replacement cost of the dwelling, or
(b) Equal to the maximum amount of
insurance otherwise available
through us.
We will pay the repair or replacement
cost of the damaged building(s), without
deduction for depreciation.
(2) If, at the time of loss, the Coverage A
(Dwelling) limit of liability is:
(a) Less than 80% of the full
replacement cost of the dwelling,
and
(b) Less than the maximum amount
of insurance available through
us,
We will pay no more than the
replacement cost of the damaged
building(s) at the time of loss, less
depreciation.
(3) In determining the amount of insurance
required to equal 80% of the full
replacement cost of the dwelling, we do
not include the value of excavations,
underground pipes, underground wiring
and foundations which are below the
surface of the ground.
(4) We will pay only the actual cash value
of the damaged building(s) until repair or
Page 7
replacement is completed. Repair or
replacement must be completed within 365
days after loss unless you request in writing
that this time limit be extended for an
additional 180 days. Upon completion of
repairs or replacement, we will pay the
additional amount claimed under
replacement cost coverage, but our payment
will not exceed the smallest of the following:
(a) The limit of liability under this
policy applicable to the damaged or
destroyed building(s);
(b) The cost to repair or replace that
part of the building(s) damaged,
with material of like kind and
quality and for the same use and
occupancy on the same premises; or
(c) The amount actually and
necessarily spent to repair or
replace the damaged building(s).
8. Coinsurance.
a. If a coinsurance percentage is shown in the
Declarations, we will not pay the full amount
of any loss if the value of covered property
at the time of loss times the coinsurance
percentage shown for it in the Declarations
is greater than the limit of insurance for the
property.
Instead, we will determine the most we will
pay using the following steps:
(1) Multiply the value of covered property
at the time of loss by the coinsurance
percentage;
(2) Divide the limit of insurance of the
property by the figure determined in
step (1);
(3) Multiply the total amount of loss, before
the application of any deductible, by the
figure determined in step (2); and
(4) Subtract the deductible from the figure
determined in step (3).
We will pay the amount determined in step (4) or
the limit of insurance, whichever is less. For the
remainder, you will either have to rely on other
insurance or absorb the loss yourself.
In applying this coinsurance clause we will
disregard the value of foundations of buildings
which are below the surface of the lowest
basement floor or, where there is no basement,
which are below the surface of the ground. We
will not consider the cost of removal of debris in
the determination of actual cash value when
applying the coinsurance clause.
We will not require a special inventory or
appraisal of undamaged property if your total
claim for loss is:
(1) Less than $10,000 and
(2) Less than 5% of the limit of insurance
on the described property.
This provision does not waive any of the
requirements of the coinsurance clause.
b. This coinsurance clause does not apply to
the dwelling or personal property if the limit
of liability is equal to or greater than the
total amount of fire insurance in effect at the
time of the loss.
Coinsurance Examples
Example No. 1 (Underinsurance):
When:
The value of the property is $125,000
The coinsurance percentage for it is 80%
The limit of liability is $80,000
The deductible is $800
The amount of loss is $25,000
Step (1) $125,000 x 80% = $100,000
(the minimum amount of insurance to meet your
coinsurance requirement)
Step (2) $80,000 ÷ $100,000 = .80
Step (3) $25,000 x .80 = $20,000
Step (4) $20,000 - $800 = $19,200
We will pay no more than $19,200. The
remaining $5,800 is not covered.
Example No. 2 (adequate insurance)
When:
The value of the property is $125,000
Page 8
The coinsurance percentage for it is 80%
The limit of liability is $100,000
The deductible is $1,000
The amount of loss is $25,000
Step (1) $125,000 x 80% = $100,000
(the minimum amount of insurance to meet your
coinsurance requirement)
Step (2) $100,000 ÷ $100,000 = 1.00
Step (3) $25,000 x 1.00 = $25,000
Step (4) $25,000 - $1,000 = $24,000
We will pay $24,000 of the loss. No penalty
applies.
9. Our Option. If we give you written notice within
30 days after we receive your signed, sworn
proof of loss we may repair or replace any part of
the damaged property with property of like kind
and quality, within a reasonable time, rather than
make payment for the loss or we may take all or
any part of the property at the appraised or
agreed value.
10. Appraisal. If you and we fail to agree on the
actual cash value, amount of loss, or cost of
repair or replacement, either can make a written
demand for appraisal. Each will then select a
competent and independent appraiser and notify
the other of the appraiser's identity within 20
days of receipt of the written demand. The two
appraisers will choose a competent and
independent umpire. If they cannot agree upon an
umpire within 15 days, you or we may request
that the choice be made by a judge of a district
court of a judicial district where the loss
occurred. The two appraisers will then determine
the amount of loss, stating separately the actual
cash value and loss to each item. If you or we
request that they do so, the appraisers will also
set:
a. the full replacement cost of the dwelling.
b. The full replacement cost of any other
building upon which loss is claimed.
c. The full cost of repair or replacement of loss
to such building, without deduction for
depreciation.
If the appraisers fail to agree, they will submit
their differences to the umpire. An itemized
decision agreed to by any two of these three and
filed with us will determine the amount of the
loss.
Each party will pay its own appraiser and bear
the other expenses of the appraisal and umpire
equally.
11. Other Insurance.
a. If property covered by this policy is also
covered by other insurance, we will pay only
the proportion of a loss caused by windstorm
or hail under this policy that the limit of
liability applying under this policy bears to
the total amount of insurance covering the
property.
b. If glass or an item of personal property is
insured specifically under any other policy,
then this policy applies as excess insurance
over the specific insurance.
c. If a loss covered by this policy is also
covered by other insurance in the name of a
condominium association, the insurance
provided in this policy will be excess over
the amount collectible under the other
insurance.
12. Dispute Resolution. Your legal action against us
under this policy may not be sustainable unless
you have complied with all the terms of the
policy.
You may appeal any act, ruling or decision made
by us, or bring a legal action against us, in
accordance with Section 2210.551 and Section
2210.552 of the Texas Insurance Code. Your
options under each section are as follows:
Section 2210.551. APPEALS.
This section applies to a person insured under
this chapter or an authorized representative of the
person.
If you are aggrieved by an act, ruling, or decision
of the association, you may appeal to the
commissioner of insurance not later that the 30th
day after the date of that act, ruling or decision.
A hearing on an act, ruling, or decision of the
association relating to the payment of, the
amount of, or the denial of a particular claim
shall be held, at the request of the claimant, in the
county in which the insured property is located or
in Travis County. A decision or order of the
commissioner of insurance may be appealed to a
district court in the county in which the covered
property is located or a district court in Travis
County.
Page 9
Section 2210.552 CLAIM DISPUTES; VENUE.
A person insured under this chapter who is
aggrieved by an act, ruling, or decision of the
association relating to the payment of, the
amount of, or the denial of a claim, may:
(1) bring an action against the association,
including an action under Chapter 541: or
(2) appeal the act, ruling, or decision under
Section 2210.551.
A person may not proceed under both Section
2210.551 and this section for the same act,
ruling, or decision. Venue in an action brought
under this section, including an action under
Chapter 541, against the association is in the
county in which the insured property is located or
in a district court in Travis County.
Venue in an action, including an action under
Chapter 541, brought under this section in which
the claimant joins the department of insurance as
a party to the action is only in a district court in
Travis County.
13. Subrogation (Transfer of Rights of Recovery
Against Others to Us). If any person or
organization to or for whom we make payment
under this policy has rights to recover damages
from another, those rights are transferred to us to
the extent of our payment. That person or
organization must do everything necessary to
secure our rights and must do nothing after loss
to impair them. But you may waive your rights
against another party in writing, prior to a loss to
your covered property.
14. Abandonment of Property. There can be no
abandonment of property to us.
15. Liberalization. If the Commissioner of Insurance
adopts a revision which would broaden or extend
the coverage under this policy without additional
premium within 45 days prior to or during the
policy period, the broadened or extended
coverage will immediately apply to this policy.
16. Waiver or Change of Policy Provisions. This
policy contains all the agreements between you
and us concerning the insurance afforded. You
are authorized to make changes in the terms of
this policy with our consent; however, this
policy’s terms can be amended or waived only by
endorsement issued by us and made a part of this
policy. Your agent is not our authorized
representative.
17. Mortgage Clause (Without Contribution).
a. The word "mortgagee" includes trustee.
b. We will pay for any covered loss of or
damage to buildings or structures to the
mortgagee shown in the Declarations as
interests appear.
c. The mortgagee has the right to receive loss
payment even if the mortgagee has started
foreclosure or similar action on the building
or structure.
d. If we deny your claim because of your acts
or because you have failed to comply with
the terms of this policy, the mortgagee has
the right to receive loss payment if the
mortgagee:
(1) At our request, pays any premiums due
under this policy, if you have failed to
do so.
(2) Submits a signed, sworn statement of
loss within 91 days after receiving
notice from us of your failure to do so.
(3) Has notified us of any change in
ownership, occupancy or substantial
change in risk known to the mortgagee.
All of the terms of this policy will then apply
directly to the mortgagee. Failure of the
mortgagee to comply with d.(1), d.(2) or
d.(3) above shall void this policy as to the
interest of the mortgagee.
e. If we pay the mortgagee for any loss or
damage and deny payment to you because of
your acts or because you have failed to
comply with the terms of this policy:
(1) The mortgagee's rights under the
mortgage will be transferred to us to the
extent of the amount we pay.
(2) The mortgagee's right to recover the full
amount of the mortgagee's claim will
not be impaired.
At our option, we may pay to the mortgagee
the whole principal on the mortgage plus any
accrued interest. In this event, your
mortgage and note will be transferred to us
and you will pay your remaining mortgage
debt to us.
Page 10
f. If this policy is canceled, we will give the
mortgagee specifically named in the
Declarations written notice of cancellation.
If we cancel the policy, we will give the
mortgagee the same number of days notice
of cancellation we give you.
If you cancel the policy, we will give the
mortgagee notice of cancellation to be
effective on the date stated in the notice.
The effective date of cancellation cannot be
before the 10th day after we mail notice.
We will not give notice of cancellation to
any successor or assignee of the mortgagee
named in this policy.
g. If the property described under Coverage A
(Dwelling) is foreclosed upon under the
deed of trust, the mortgagee may cancel this
policy of insurance and will be entitled to
any unearned premiums from this policy.
The mortgagee must credit any unearned
premium against any deficiency owed by the
borrower and return any unearned premium
not so credited to the borrower.
18. Cancellation.
a. You may cancel this policy at any time by
notifying us in writing of the date
cancellation is to take effect We will send
you any refund due when the policy is
returned to us. The refund will be pro rata,
subject to a policy minimum retained
premium in an amount equal to 180 days or
$100 whichever is applicable. Payment of
the minimum retained premium shall not
create or extend coverage beyond the
cancellation date that you requested. The
minimum retained premium is fully earned
on the effective date of the policy and you
shall owe to us any unpaid balance of the
minimum retained premium.
b. We may cancel this policy by mailing or
delivering to you notice in writing of the
date cancellation takes effect. The effective
date of cancellation cannot be before the
14th day after we mail or deliver the notice.
Our notice of cancellation will state the
reason for cancellation and will state that if
the refund is not included with the notice, it
will be returned on demand. The refund will
be pro rata.
19. Assignment. Your rights and duties under this
policy may not be transferred without our prior
written consent except as follows:
a. If you die, your rights and duties will be
transferred to your legal representative
subject to our right to verify your legal
representative’s authority to act in your
behalf.
b. If you sell the real property insured by this
policy, you may assign your rights and
duties under this policy to the new owner.
However:
(1) The new owner may not change any of
the terms of this policy without our
prior written consent, and
(2) You, the new owner, or your agent
shown in the Declarations must notify
us in writing of the change in ownership
within 30 days after the real estate
closing.
20. Residential Community Property. This policy,
subject to all other terms and conditions, when
covering residential community property, as
defined by state law, shall remain in full force
and effect as to the interest of each spouse
covered, irrespective of divorce or change of
ownership between the spouses until the
expiration of the policy or until canceled in
accordance with the terms and conditions of this
policy.