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Section 3 – The Cover

In the event of Damage occurring during the period of insurance we will pay you the value of the
property at the time of its Damage or the cost of repair of the Damage or at our option reinstate or
replace such property or any portion of it.
Provided always that our liability under this part will not exceed:

a) in the whole the total sum insured or in respect of any item its sum insured or any other limit of
indemnity stated in the schedule at the time of the Damage

b) the sum insured (or limit) remaining after deduction for any other Damage occurring during the
same period of insurance unless we have agreed to reinstate any such sum insured (or limit).

3.1 European Union and Public Authority Requirements (including Undamaged Property)
Subject to the following supplementary conditions this part in respect of buildings and contents
includes the additional cost of reinstatement incurred solely by reason of the necessity to comply with
the stipulations of:
a) European Union legislation

b) Building or other regulations under or framed in pursuance of any Act of Parliament or bye-law of
any public authority

hereinafter referred to as ‘the Stipulations’ in respect of Damage to the property insured and
undamaged portions thereof.
We will not pay for:

i) the cost incurred in complying with the Stipulations:
1) in respect of damage not insured under this part
2) under which notice has been served upon you prior to the happening of the Damage

3) for which there is an existing requirement which has to be implemented within a given period
ii) the additional cost that would have been required to make good the property suffering Damage
to a condition equal to its condition when new had the necessity to comply with the Stipulations
not arisen
iii) the amount of any charge or assessment arising out of capital appreciation which may be payable
in respect of the property or by its owner by reason of compliance with the Stipulations.
Supplementary Conditions
1. The work of reinstatement must be commenced and carried out without delay and in any case
must be completed within 12 months of the Damage or within such further time as we may allow
during the said 12 months and may be carried out upon another site if the Stipulations so
necessitate subject to our liability under this clause not being increased.
2. If our liability in respect of any item under this part apart from this clause is reduced by the
application of any of the terms and conditions of this part then our liability under this clause will
be reduced in like proportion.

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