HOME INSURANCE TERMS AND CONDITIONS KK1012012 (valid from 1 February 2012) Unofficial translation

The home insurance terms and conditions are applied to the insurance contracts concluded with AAS Gjensidige Baltic Estonian Branch, the insured object of which is the property or legal civil liability used for personal and domestic needs. The parties of the insurance contract proceed from the Law of Obligations Act and other legal acts of the Republic of Estonia in the questions not handled in the home insurance terms and conditions. TABLE OF CONTENTS Insured object Insured risk Insured event 3.1 Fire 3.2 Leakage of pipeline 3.3 Theft and vandalism 3.4 Storm and flood 3.5 All Risk insurance Additional cover - lease expenses of temporary residence Liability insurance General exclusions Insurance place Insurance period Insurable value, sum insured and limit of indemnity Multiple insurance, overinsurance and underinsurance Termination, cancellation of the insurance contract and withdrawal from the insurance contract Obligations of the parties of the insurance contract Damage compensation Release of the insurer from the obligation of fulfilment of the insurance contract Processing of personal data Notices and settlement of disputes 1. INSURED OBJECT 1.1. Insured object is the building, part of the building, facility or household property indicated in the insurance contract. The insured object could be also the legal civil liability of the insurer or the lease expenses of temporary residence. 1.2. Building is a legal structure which is permanently attached to the ground and which has a roof, exterior enclosures and internal rooms (dwelling, summerhouse, sauna, outbuilding etc.) including its material parts. The material parts of the building are the bearing construction elements (foundation, walls, partitions, inserted ceilings, roof etc.); doors and windows with glasses; exterior and interior finishing of the building (e.g. covering materials of walls, floors and ceilings); suspended ceilings; bath tubs, shower baths, sanitary equipment; built-in furniture and kitchen furniture (excl. kitchen appliances); balcony or lodge; stationary furnaces, fireplaces and stoves; water and gas pipelines; hot water boilers; stationary electrical wiring, weak-current wiring of communication, TV, sound and alarm equipment from the connection or input which are outlined with wall, floor or inserted ceiling; non-bearing partitions etc. The objects installed to the outer side of the insured building (antennas, marquises, electrical wiring, communication, TV, sound and alarm equipment etc) and the communication networks (heating, water, sewerage pipelines etc.) servicing the building located within the property outside the building have been insured together with the building. The box of the building the building can be insured as a box of the building, i.e. the bearing construction elements of the building without interior finishing and objects installed to the outer side of the building, if not agreed otherwise. 1.3. A part of the building is the interior finishing of the apartment, apartment ownership, row house box or the part of semi-detached house. 1.3.1. Interior finishing of the apartment is the physical share of the object of apartment ownership, i.e. residential rooms and the attached parts of the building which can be used separately and which can be changed, eliminated or added without damaging the co-ownership or the rights of the other apartment owner or without changing the outer look of the building (e.g. partitions, suspended ceilings, stairs, covering materials of walls, floors and ceilings, shower baths, built-in furniture and kitchen furniture, excl kitchen appliances). The storeroom or cellar box has been insured together with the interior finishing of the apartment. 1.3.2. Apartment ownership is a physical share of the object of the apartment ownership (i.e. interior finishing of the apartment) including the share corresponding to the size of the ownership of the rooms and construction elements in the co-ownership. 1.3.3. The row house box and part of the semi-detached house are insured as a whole so as if this is a separate building and all parts of the building are insured without which its integrity were materially disturbed or the building were unusable. The common technological equipment of the building, not located in the part of the building being the insured object (e.g. part of the heating system etc.) have been insured in the part which corresponds to the size of the ownership of the building. The insured object is not a part of the building which is not at the disposal of the policyholder and which existence and status is not having a direct impact on the insurable part of the building. 1.4. Facility is a building permanently attached to the ground which is not a building (perimeter fence, gate, awning, greenhouse, pool, settling well, access road, childrens playground, sports facility etc.). 1.5. Household property is movables used for personal and domestic needs located in the insurance place (e.g. furniture, clothes, household appliances, electronics etc.). If not agreed otherwise, the insured objects are not motor vehicles, their trailers, production equipment used in business, agricultural machinery, air and water crafts, information and software included in the information processing systems and equipment, cash, bank cards, securities (bonds, cheques, lottery tickets etc.), documents, manuscripts, antiquarian and unique objects, jewellery products, art works, paintings, collections, drawings and projects, archival materials, photos and slides, weapons, ammunition and explosives, agricultural and gardening products, incl food products, alcoholic drinks, domestic animals and birds, plants.

1. 2. 3.

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

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2. INSURED RISK 2.1. Insured risk is a risk against which one should be insured. Insurance policy indicates the types of insured risks as to which the insurance cover is valid. 2.2. The circumstance which increases the probability of arrival of the insured event or has an impact on the size of the incurring damage is handled as the increase of probability of insured risk. The circumstance on which the insurer asks information from the policyholder prior to the conclusion of the insurance contract is foremost considered the important fact influencing the insured risk. Also, the non-fulfilment of special terms, safety requirements or agreements regarding the risk stipulated in the insurance contract or its appendices is also considered the material circumstance increasing the probability of insured risk. 2.3. The policyholder is obliged to immediately notify the insurer of the increase in probability of the insured risk, excluding in case the increase in insured risk has been caused by the generally known fact which has no impact on the insured risk of only this policyholder. If the policyholder has increased the probability of insured risk without the agreement of the insurer or has violated the notification obligation, the insurer has the right to refuse from its fulfilment obligation. In case of increase in probability of insured risk the insurer has the right to cancel the insurance contract. 2.4. The insurer has the right to review the insured object within the insurance period and require the application of the additional safety measures to decrease the increased insured risk from the policyholder and/or increase the insurance payment. 3. INSURED EVENT Insured event is the damaging, destruction or loss of the insured object within the insurance period, being caused by the sudden and unforeseen event or events stipulated in the insurance terms and conditions. The sudden and unforeseen event is an event the occurrence of which or the damage caused by it could not be influenced by the policyholder or insured person and the incurrence of damage in the insurance period is not known beforehand. 3.1. Fire The damage incurred to the insured object caused by the following is compensated: 3.1.1. fire, the related soot and smoke and the extinguishing water. The open fire ignited outside the hearth set for that purpose or has emerged from there and is able to spread with its own force is considered the fire. 3.1.2. lightning bolt immediate contact of the lightning with the insured object, by creating visible damages or fire; 3.1.3. explosion, incl explosion of the explosive; 3.1.4. plane crash which means the falling down of aircraft, its parts or load creating breakdowns or spread of fire. 3.1.5. The damage incurred to the electrical system, technological systems and household property upon the impact of electric current (excess and under-voltage, incl excess voltage caused by thunderbolt; overload; short circuit; isolation faults), excl in case this involves fire. 3.2. Leakage of pipeline The damage incurred to the insured object caused by the following is compensated: 3.2.1. liquid having flown out of the internal water network and its parts; 3.2.2. liquid flown out in case of breakdown of the domestic equipment permanently connected to the internal water network and their connection details;

3.2.3. liquid flown out as a result of the blockage of internal sewerage, breakdown of equipment or pipeline; 3.2.4. water, other liquid or steam flown out of the in-building stormwater pipeline, heating or cooling system and its parts. 3.2.5. The following is not compensated: 3.2.5.1. expenses of the repairs or reacquisition of the equipment or pipeline having caused the damage; 3.2.5.2. damage incurred from the water steam and excess humidity, excl the cases caused by the events described in clauses 3.2.1-3.2.4; 3.2.5.3. damage incurred from the water or other liquid flowing to the building from outside (through the unclosed openings, sewerage system, walls, floor or other constructions); 3.2.5.4. damage caused by the freezing of the liquid; 3.2.5.5. damage caused by the accident or non-functioning of the water or sewerage pipeline located outside the property border or connection place. 3.3. Theft and vandalism The damage caused by theft, robbery or vandalism incurred to the insured object is compensated. 3.3.1. Theft stealing of insured object when the thief had to eliminate the barrier (locked door, closed window, wall etc.) to reach it. The opening of the lock with the original key or its duplicate is not considered theft. The theft of the objects installed to the outer sides of the building is considered the insured event without eliminating the barrier. 3.3.2. Robbery seizure of property by using the physical violence or immediate threat of its use. 3.3.3. Vandalism destruction or damaging of the property due to the third person, incl damage incurred from the collision of the mainland vehicle, if this is not subject to compensation on the basis of the obligatory liability insurance. 3.3.4. The expenses of restoration of the peripheral structures or their parts of the building or part of the building damaged or broken in the course of theft or robbery are covered. If the key has gone beyond the possession of the policyholder in the course of theft or robbery and thus the replacement of the relevant lock is required in the place of insurance, the resulting expenses of up to 1000 euros are covered. 3.3.5. The damage to the household property located on the not built-in balcony or lodge is not compensated. 3.4. Storm and flood The damage incurred to the insured object caused by the following is compensated: 3.4.1. storm (strong wind) the wind with the speed of at least 20 m/s in the meaning of these terms. Also, the damage from the falling of trees, posts, building constructions etc on the insured object, if it occurred as a result of the storm; 3.4.2. natural flood extraordinary natural rise of water level (incl due to storm, rainfall or other natural phenomenon), the unusual quantity of water created due to the latter cannot be received by the ground and/or drainage system established and maintained according to the project (incl drainage and sewerage system of stormwater); 3.4.3. hail; 3.4.4. hummock. 3.4.5. The following is not compensated: 3.4.5.1. the damage incurred due to the liquid, rain, snow and hail or their melting water having flown in from the sewerage system or open/carelessly closed doors, windows or other openings, excluding in case the openings incurred to the constructions of the building as a result of storm, hail or hummock;

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3.4.5.2. the damage caused to the insured object on the territory where the natural floods occur at least once within five years; 3.4.5.3. the damage incurred due to the heaviness of snow or ice; 3.4.5.4. the damage caused by destruction of dam or other fortification. 3.5. All Risk insurance The damage incurred to the insured object due to the sudden and unforeseen event is compensated, excluding the damage not subject to compensation described in clauses 3.5.1 and 6. 3.5.1. The following is not compensated: 3.5.1.1. the damage caused by poor quality designing or construction activities (installation, inappropriate construction methods etc.) or construction materials of poor quality; 3.5.1.2. the damage to the equipment caused by the inner fault of the equipment; 3.5.1.3. the damage subject to compensation on the basis of obligatory liability insurance or for which the third person is responsible on the basis of the contract (maintenance contract, guarantee etc.); 3.5.1.4. the damage caused by water or snow having pushed through the peripheral structures (walls, roof, floor, windows and other openings), excluding in case this will be possible as a result of the storm having damaged the building; 3.5.1.5. the damage caused by the pests, insects, birds and domestic animals; 3.5.1.6. the damage to the household property due to the forgetfulness, loss, fraud and seizure; 3.5.1.7. the damage to the sports equipment in the course of regular use; 3.5.1.8. expenses to the maintenance and maintenance repairs; 3.5.1.9. the damage incurred due to the non-purposeful use of the insured object; 3.5.1.10. the damage incurred to the insured object outside the place of insurance; 3.5.1.11. the damage incurred from the open fire or working with equipment with high temperature, excluding in case the fire starts; 3.5.1.12. the cost of liquid flown out of the pipeline. ADDITIONAL COVER - LEASE EXPENSES OF TEMPORARY RESIDENCE 4.1. The expenses of justified and documentally proven moving to the temporary residence and moving back from there caused by temporary or permanent unhabitableness incurred as a result of the insured event of the building or part of the building being the permanent residence of the policyholder and the lease expenses of the equivalent temporary residence are compensated. The building or the part of the building is considered unhabitable provided this has been destructed or damaged as much as the regular life there is impossible or considerably complicated. The insurance cover of the lease expenses of the temporary residence is not expanding to the persons who use the insured object on the basis of the lease contract. 4.2. The lease expenses of the temporary residence are compensated maximum 6 months from the moment the insured event took place, but no more than up to the restoration or replacement of the habitableness of the insured permanent residence. 4.3. The public utility payments of the temporary residence, fines for delay, contractual penalties and the expenses of finding the temporary residence are not compensated.
4. 5.

building to the third person, as a result of which the insured person has an obligation of damage compensation. The insured person is the owner or legal possessor of the building or the part of the building. The damage is compensated if the insured person is guilty of causing damage and/or is responsible for causing the damage pursuant to law. The event having incurred the damage should have been taken place within the insurance period. Also, the legal assistance expenses previously agreed with the insurer (legal assistance, expertise or court procedure expenses) within up to 3000 euros are compensated, if this is necessary to protect the rights of the insured person. 5.2. All requirements resulting from one and the same event are considered one insured event. 5.3. The following is not compensated: 5.3.1. damage claims resulting from the contractual liability of the insured person, obligations assumed with the contract, incl written and other bails, guarantees etc. given; 5.3.2. damage claims resulting from the negotiorum gestio; 5.3.3. damage claims based on the events having caused the damage of which the insured person was aware prior to the conclusion of the insurance contract; 5.3.4. The mutual claims of the insured persons with one and the same insurance contract, mutual claims of the insured person and its family members or close persons; 5.3.5. damage claims as to the damages incurred to the property at the deposit by the insured person, under processing or repairs etc, documents or any other information carriers; 5.3.6. damage claims resulting from the legal fines, interests, fines for delay and other punishments added to the damage imposed on the insured person or the submitter of the damage claim; 5.3.7. the damage subject to compensation on the basis of the obligatory liability insurance or which is the responsibility of the third person on the basis of the contract. 6. GENERAL EXCLUSIONS The following is not compensated in any way: 6.1. the damage incurred due to the long-term process (corrosion, wear, rotting, mould, dry rot, mushroom damage, gathering of snow and ice etc.); 6.2. financial claims not handled as the direct property damage (loss of income, non-material damage, damage of losing the material rights etc); 6.3. expenses of liquidation of environmental waste; 6.4. the damage caused by the sinking, crackling, contraction and expansion of the building, regardless of the event or reason; 6.5. the damage caused by landslide or earthquake; 6.6. the damage caused by war, civil war, invasion, turmoil, coup, streak, stoppage (lockout), state of emergency, terrorism, expropriation, confiscation etc; 6.7. the damage incurred from the production of nuclear power or radioactive waste or going beyond the control of nuclear power; 6.8. the damage caused by blasting and excavation works. 7. INSURANCE PLACE Insurance place is a building or a part of the building located at the address provided in the insurance contract. The household property has been insured in the insurance place or territory indicated in the insurance contract. The household property located in the storeroom located outside the apartment of the apartment building and in the facility or outbuilding belonging to the building or the part of the building is insured only when this has been indicated on the policy and provided the storeroom, facility or outbuilding is at the sole use of the policyholder.

6. LIABILITY INSURANCE 5.1. The insured event of the liability insurance is the illegal incurrence of damage by the insured person in holding the insured building and the attached property or the part of the
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8. INSURANCE PERIOD Insurance period is the period within which the insurance contract is valid. Insurance period is indicated on the insurance policy.

9. INSURABLE VALUE, SUM INSURED AND LIMIT OF INDEMNITY 9.1. Insurable value is the value of the property during the insured event. The policyholder is obliged to notify the insurer of the correct insurable value. 9.1.1. The insurable value of the household property is the reacquisition value (expenses of the acquisition of the equivalent new object) or market value (local average sales price). The insurable value of the art objects, collections and antiquarian objects is the market value. If required, the expert opinion is used for finding the market value. 9.1.2. The insurable value of the building is its common local construction value less the reasonable sum indicating the depreciation (insurance at residual value). If the depreciation of the building is lower than 40%, the depreciation is not deducted from the construction value (insuring at the reinstatement value). 9.2. The sum insured is a maximum sum of the insurance indemnity paid per one insured event. 9.3. The limit of indemnity is the agreed maximum limit of indemnity as to the insured object or insured risk, in case of which underinsurance is not taken into account, i.e. in case of insured event the insurable value of the insured object in finding the size of damage is proceeded from and the damage is compensated up to the limit of indemnity. The insuring of the insured objects with the limit of indemnity is possible only upon the agreement of the parties. 10. MULTIPLE INSURANCE, OVERINSURANCE AND UNDERINSURANCE 10.1. Multiple insurance is the situation where the property is either partly or fully insured against the same insured risk by multiple insurers and the total sum of indemnities subject to be paid by the insurers or the total insured sums would exceed the insurable value. In case of multiple insurance the insurers are responsible as the solidary obligors. 10.2. Overinsurance is the situation where the insured sum exceeds the insurable value. In case of overinsurance the insurer is not compensating more than the actual damage amount or insurable value. 10.3. Underinsurance if the insured sum is lower than the insurable value during the insured event, the insurer is liable for the damage equally with the relation of the insured sum to the insurable value during the insured event. 11. TERMINATION, CANCELLATION OF THE INSURANCE CONTRACT AND WITHDRAWAL RFOM THE INSURANCE CONTRACT 11.1. Insurance contract terminates in passing of the insurance period, cancellation or withdrawal from the insurance contract or on other bases set by law. 11.2. The parties of the insurance contract have the right to cancel the insurance contract pursuant to the procedure and on the bases set by law. 11.3. The insurer has the right to cancel the insurance contract: 11.3.1. if the policyholder has violated the terms and conditions of the insurance contract. The insurer has no right to cancel the contract, if the violation of the terms of the insurance contract has no impact on the increase of probability of the insured risk or the obligation of the insurer to fulfil the insurance contract (excl nonpayment of insurance payment);
HOME INSURANCE TERMS AND CONDITIONS KK1012012 (valid from 1 February 2012)

11.3.2. if the policyholder or the beneficiary have cheated or pursued to cheat the insurer as to the circumstances of the insurance contract or insured event; 11.3.3. when the insured risk increases; 11.3.4. after the insured event has taken place; 11.3.5. if the policyholder has left the second or the following insurance payment unpaid; 11.4. Pursuant to the insured event the both parties of the insurance contract can cancel the insurance contract by notifying the other party of it one week in advance. In cancellation of the insurance contract on other bases the insurer is obliged to follow the requirements and dates provided in the Law of Obligations Act in cancellation of the insurance contract. 11.5. In cancellation of the insurance contract the policyholder has the right to get back the insurance payment paid for the time remained up to the end of the insurance period. 11.6. The insurer has the right to withdraw from the insurance contract, if the policyholder has not notified the insurer of the important circumstances having an impact on the insured risk in concluding the insurance contract or has deliberately submitted false data. The insurer has the right to withdraw from the contract within one month from the time when it learned about the violation of notification obligation or had to learn about it. 11.7. If the policyholder has not paid the first insurance payment within 14 days from the payment date set in the insurance contract and if the insurer has not set the new date for making the payment within this period to the policyholder, it is presumed that the insurer has withdrawn from the contract. 12. OBLIGATIONS OF THE PARTIES OF THE INSURANCE CONTRACT 12.1. Obligations of the policyholder The insurance contractual obligations of the policyholder are also valid to the persons equalized with the policyholder. The persons who have the common household with the policyholder (incl parents, spouse, co-habitee), also the persons using the insured object upon the agreement of the policyholder or owner or who are legal possessors of the insured object are equalized with the policyholder. The policyholder is obliged: 12.1.1. to notify the insurer of all circumstances known to it in concluding the insurance contract which have an impact on the decision of the insurer to conclude the insurance contract or carry this out according to agreed terms (material circumstances) and submit the correct information in the questions regarding the insurance contract to the insurer; 12.1.2. to enable the insurer to examine the status of the insured object and documents needed for the conclusion of the insurance contract; 12.1.3. to fulfil the special and additional terms and safety requirements provided in the insurance contract and follow the legal acts valid in the Republic of Estonia and usage instructions of equipment; 12.1.4. to review the parts of the insurance contract before the conclusion of the insurance contract (request application, offer, insurance terms and conditions, additional terms etc.); 12.1.5. to pay the insurance payment or the part of the insurance payment by the date set in the insurance contract; 12.1.6. to carry out all possible to avoid the insured event and decrease the potential damage, not to increase the insured risk and not to enable this to be increased by the persons it is responsible for; 12.1.7. to immediately notify the insurer of the incurrence of multiple insurance and increase in probability of insured risk (incl changes compared to the stipulations provided in the insurance contract);

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12.1.8. to explain the obligations resulting from the insurance contract to the persons to whose possession or use the insured object belongs to or is given; 12.1.9. to immediately notify the insurer of the transfer of the insured object; 12.1.10. when leaving home to close and lock all entrances and exits in the insurance place (doors, windows, shutters etc) so that the insurance place cannot be entered to without breaking or removal of the barrier or lock hindering the location of the property; 12.1.11. at the existence of the alarm system to guarantee its working order and maintain the alarm equipment regularly according to its instruction, when leaving home to switch in the security alarm system and not to limit the working zone of the sensors or decrease their sensitivity, keep the codes of security alarm system so that these would not be disclosed to the third persons; 12.1.12. at the existence of fire alarm system to use and maintain the alarm equipment regularly according to its instruction and keep it switched in around the clock; 12.1.13. to close and empty the water supply and heating systems located in the unheated building or its part. When the insured event takes place, the policyholder is obliged: 12.1.14. to immediately apply the measures to save the insured object, to avoid the increase of damage and decrease of potential damage; 12.1.15. to immediately notify the following persons of the event: a) the police if the malicious activity of the third person is suspected; b) the alarm centre (on emergency number 112), if this is fire or explosion of the explosive; c) relevant competent institutions or persons in other cases; 12.1.16. to notify the insurer of the insured event at first chance personally or through its representative from the moment of learning about the insured event, by submitting the data on the event, estimated size of damage, witnesses, parties and guilty party and hereinafter fulfil the instructions of the representative of the insurer. 12.1.17. in case of liability insurance notify the insurer at first chance of all circumstances which might be the basis for submitting the claim against it; 12.1.18. if possible, keep the place of insured event intact up to the order of the insurer; 12.1.19. to submit the list of the lost, damaged or destroyed property as a result of the insured event within two weeks from the moment of learning about the insured event; 12.1.20. to submit all information at its disposal which is necessary for the specification of the fulfilment of the contractual obligations of the insurer, incl reasons and size of the damage, to the insurer, allow the insurer to obtain necessary information in the course of loss adjustment; 12.1.21. to submit the damaged property in the status pursuant to the insured event or its remains to the insurer for review. The policyholder should not start to restore the damaged property or utilize the destroyed property without the agreement of the insurer. 12.1.22. to immediately notify the insurer of learning about the location of the lost property as a result of the insured event. 12.2. Obligations of the insurer The insurer is obliged: 12.2.1. to introduce the documents of the insurance contract, incl insurance terms and conditions, to the insurer before the conclusion of the insurance contract. If the insurer has not given the insurance terms and conditions over to the person requiring to conclude the insurance contract or has not made these publicly available, the contract is not considered concluded, if the policyholder disputes the contract in the format which can be
HOME INSURANCE TERMS AND CONDITIONS KK1012012 (valid from 1 February 2012)

reproduced in writing within 14 days from the forwarding of insurance terms and conditions. 12.2.2. to keep the information disclosed related to the insurance contract confidential; 12.2.3. to register the damage note and introduce the procedure for solving the insured event and damage compensation to the policyholder; 12.2.4. to immediately start the handling of the insured event pursuant to the receipt of the application from the policyholder and specify the amount of damage subject to compensation; 12.2.5. to submit the list of the documents required to specify the reasons and size of the damage incurred as a result of the insured event to the policyholder; 12.2.6. to make the decision on the damage compensation or refusal from it within 10 workdays at the latest from the receipt of all required documents and specification of the size of the damage and circumstances of its incurrence. In case of started criminal procedure the insurer can postpone the adoption of the decision up to the receipt of the decision of termination of the criminal procedure; 12.2.7. to notify the policyholder in writing of the refusal from or decrease of the damage compensation within 5 workdays from making the decision at the latest, by indicating the reason and basis of refusal or decrease of insurance indemnity. 13. DAMAGE COMPENSATION 13.1. The insurance indemnity is the cash amount paid to compensate the damage incurred as a result of the insured event. 13.2. The size of insurance indemnity per one insured event is limited to the size of the property damage and insured sum or limit of indemnity. 13.3. Deductible is the part specified in the insurance contract (e.g. fixed sum, period) not compensated by the insurer. Deductible is applied in case of each insured event. Deductible is applied in calculating the insurance indemnity last after other potential deductions and withholdings. If objects insured with different deductible are damaged in one insured event, only the highest deductible is applied. 13.4. The form of compensation is decided by the insurer. The compensation forms are financial benefit, restoration of the insured object or replacement with the equal one. Financial benefit is paid to the beneficiary(ies) fixed in the insurance contract. 13.5. In case of insured event the damage to be compensated is the direct property damage and the expenses agreed in the insurance contract. The damage is not including the part of the value-added tax refundable to the policyholder on the basis of the Value Added Tax Act. The calculation of the insurance indemnity is based on the insurable value of the insured object damaged, destroyed or lost as a result of the insured event just before the insured event and the insurer assesses the relation of insurable value of the insured object to the insured sum indicated in the insurance contract (over or underinsurance). 13.6. The insurer compensates the insured sum of the object damaged maximum within 10%, but no more than the expenses within 10 000 euros needed to clean and demolish the property damaged and remained as a result of the insured event and to delivery and utilize the garbage. The mentioned expenses are compensated also by the insurer provided these exceed together with other benefit the insured sum. 13.7. The potential underinsurance is considered in compensation of the expenses of damage avoidance and decrease, expenses of cleaning, demolition, garbage delivery and utilization and other expenses. 13.8. If the insurable value of the building is the reinstatement value, the insurer first compensates the part of residual value. The part exceeding the residual value prior to the insured event of
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the building is compensated on the basis of the calculations submitted to restore the building, if the insurance indemnity is used in the same place to restore the building with the same type and purpose within two years from the adoption of the compensation decision. The policyholder should first prove the use of received indemnity. 13.9. If the insurable value of the building is the residual value, the insurer compensates the reinstatement value less depreciation. The cleaning, demolition, garbage delivery and utilization expenses are also decreased by the rate of depreciation of the building. 13.10. If the insurer compensates the incurred damage, the insurer also compensates the expenses required to decrease the damage and avoid the further increase of damage to the policyholder and the expenses born by the policyholder to specify the damage or its size. 13.11. At the destruction of the household property or when its repairing is not expedient, the re-acquisition value of the objects with the age of up to 5 years and the market value of the older objects are compensated. If in case of damaging of household property its repair is expedient, the reasonable costs of repairing the household property are compensated. 13.12. If the size of the damage or its reason incurred as a result of the insured event is fully unproven, only the proven part is compensated. 13.13. The insurer has the right to set off the unpaid insurance payments of the insurance contract with the obligation of fulfilment of the insurance contract up to the end of the insurance period. 13.14. If the policyholder or beneficiary receives the stolen insured object after the payment of insurance benefit back to its possession, the received object should be given to the ownership of the insurer or the insurance indemnity paid for the insured object should be returned. 13.15. The policyholder or beneficiary is obliged to return the insurance indemnity to the insurer, if the circumstances excluding the compensation have occurred after the damage compensation or if the damage has been compensated by the third person pursuant to the procedure set by law. 14. RELEASE OF THE INSURER FROM THE OBLIGATIONS OF FULFILMENT OF THE INSURANCE CONTRACT The insurer releases partly or fully from the obligation of fulfilment of the insurance contract, if: 14.1. the policyholder or the person equalized with it has not fulfilled at least one obligation submitted in clauses 12.1.1-12.1.22 and non-fulfilment of the obligation and the causation occurs between the insured event and/or the size of the damage incurred as a result of it; 14.2. the insured event has taken place due to the gross negligence or will of the policyholder, person equalized with it or beneficiary; 14.3. the insured event has been caused by the activity of the policyholder or the person equalized with it intoxicated with alcohol, drugs or toxic substances or in other state of intoxication; 14.4. the policyholder, the person equalized with it or the beneficiary has misguided or tried to misguide the insurer regarding the circumstances of incurrence of damage and/or size of the damage or tried to cheat the insurer in other way regarding the insurance contract or the circumstances of its fulfilment. 15. PROCESSING OF PERSONAL DATA 15.1. The insurer has the right to process the personal data of the policyholder without the agreement of the policyholder for the fulfilment of the insurance contract concluded for the benefit of the policyholder or guarantee of the fulfilment and assessment of the insured risk.
HOME INSURANCE TERMS AND CONDITIONS KK1012012 (valid from 1 February 2012)

The third person is allowed to forward the personal data to the insurer in case of insured event without the agreement of the policyholder or enable the access to the personal data which are necessary for the insurer for the specification of the obligation of the fulfilment of the insurance contract or the scope of its fulfilment. 15.2. The policyholder agrees that the insurer uses the personal data of the policyholder by providing additional insurance services to it and forward the information of the service of the insurer. 16. NOTICES AND SETTLEMENT OF DISPUTES 16.1. All notices are submitted to the other contract party in the format which can be reproduced in writing. 16.2. The disputes resulting from the insurance contract will be solved upon the agreement of the parties. 16.3. If the settlement of dispute upon the agreement of the parties fails, the dispute resulting fro the insurance contract can be solved with the conciliation procedure in the insurance conciliation body, additional information is provided on the website of the Estonian Insurance Association www.eksl.ee. 16.4. The disputes resulting from the insurance contract which reach no agreement are settled in court. 16.5. The policyholder has the right to submit the complaint on the activities of the insurer to the Financial Supervision Authority performing the insurance supervision (Sakala 4, 15030 Tallinn, www.fi.ee).

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