Special Districts Insurance Services Property Coverage Document. Effective: January 1, 2016

Transcription

1 Special Districts Insurance Services Property Coverage Document Effective: January 1, 2016

2 Page i Property Coverage Document Index I. INTRODUCTION... 1 II. PROPERTY COVERAGE DOCUMENT... 1 III. PROPERTY COVERAGE PERIOD... 1 IV. NAMED PARTICIPANT... 2 V. LIMITS OF INDEMNIFICATION AND PER-OCCURRENCE AGGREGATE LOSS LIMIT... 2 VI. DEDUCTIBLES... 3 VII. COVERED CAUSES OF LOSS OR DAMAGE... 3 VIII. COVERED PROPERTY... 3 IX. PROPERTY THAT IS NOT COVERED PROPERTY... 5 X. ADDITIONAL COVERAGES... 6 A. Debris Removal Expenses... 6 B. Pollution Clean-Up and Removal Expenses... 8 C. Fungus Resulting from Covered Loss... 9 D. Preservation of Undamaged Covered Property... 9 E. Professional Services F. Fire Department Service Charge G. Recharging of Fire Extinguishing Equipment H. Arson Reward I. Increased Costs of Construction Enforcement of Ordinance or Law J. Increased Costs of Construction Costs Resulting from Unforeseen Delay XI. ADDITIONAL COVERAGES BUSINESS INCOME AND EXTRA EXPENSE A. Business Income Loss B. Extra Expense Incurred C. Business Income Loss Sustained and Extra Expense Incurred as the Result of Damage or Destruction of Property Not At or Upon Premises Listed on the Schedule of Property Values on File with the Trust XII. COVERAGE EXTENSIONS A. Newly Acquired or Constructed Property B. Outdoor Property and Scheduled Outdoor Property C. Property in Transit D. Accounts Receivable... 30

3 Page ii E. Extension of Coverage for Property Damaged by Overflow of Sewers or Drains F. Extension of Coverage for Property Damaged by Collapse G. Covered Leasehold Interests H. Valuable Papers and Records I. Extension of Coverage for Property Damaged by Computer Virus J. Extension of Coverage for Miscellaneous Property Damaged by Specific Causes of Loss or Theft XIII. EXCLUSIONS FROM COVERAGE A. Anticipated or Foreseeable Losses B. Earth Movement C. Water Movement D. Volcanic Activity E. Radioactivity F. Pollution G. Fungus H. War I. Acts of Terrorism J. Government Seizure or Condemnation K. Government Fees, Fines, and Penalties L. Enforcement or Ordinance or Law M. Interruption of Utility Services N. Animal Activity O. Criminal, Dishonest, or Fraudulent Acts P. Defective, Faulty, or Inadequate Materials or Workmanship Q. Breakdown or Malfunction of Machinery or Equipment R. Computer Virus S. Inherent Vice or Latent Defect T. Collapse U. Miscellaneous Damage or Loss V. Miscellaneous Damage or Loss Personal Property Only W. Failure to Mitigate X. Vacant Buildings... 44

4 Page iii Y. Electronic Date Recognition XIV. CONDITIONS A. General Conditions B. Conditions Applicable in Event of Loss or Damage XV. DEFINITIONS... 64

5 Page 1 I. INTRODUCTION This is a Property Coverage Document, and is intended to set forth a contract of indemnification between the Named Participant and the Special Districts Insurance Services Trust ( the Trust ). This Property Coverage Document and the accompanying Property Coverage Declarations ( Declarations ) set forth the terms, conditions, limitations, and exclusions of coverage afforded the Named Participant by the Trust, pursuant and subject to its Trust Agreement, Bylaws, and Rules, and in accordance with ORS and ORS Chapter 190. The Special Districts Association of Oregon formed the Trust, a jointly established self-insurance program, so its members could avoid the vagaries of an ever changing insurance market. As a Trust member, the Named Participant and its fellow Trust members contribute to a common fund, from which the Trust indemnifies covered losses sustained by Trust members. All Trust members share in the cost of indemnifying losses sustained by other Trust members, including the Named Participant. The Named Participant must agree, therefore, to make every reasonable effort to mitigate the amount of damage or loss sustained in the event of a covered loss. Examples of mitigation commonly include initiating emergency repairs immediately following a loss, cooperating with all involved parties in a timely and efficient manner, and using internal resources to handle the extra work created by a loss. Mitigation also requires working with the Trust to limit the cost of replacement, including accepting functional alternatives that may be less expensive, working closely with adjusters and contractors to limit the scope of necessary repairs, and working with the Trust to resolve claims in a manner consistent with the best interests of the Trust. II. PROPERTY COVERAGE DOCUMENT This Property Coverage Document sets forth the contractual agreement between the Trust and the Named Participant. This Property Coverage Document includes, by reference herein, the Declarations, all endorsements and forms listed in the Declarations, and the Schedule of Property Values on file with the Trust, all whether physically attached or not physically attached to this Property Coverage Document at the time it is issued. Except as expressly set forth in this Property Coverage Document, this Property Coverage Document does not apply to any loss or damage sustained by anyone other than the Named Participant. This Property Coverage Document does not apply to any loss or damage that originates or occurs before or after the Property Coverage Period. Words and phrases that appear in bold-faced type throughout this Property Coverage Document have specific meaning and are expressly defined in this Property Coverage Document. Throughout this Property Coverage Document, the words "you" and "your" refer to the Named Participant. The words "we", "us" and "our" refer to the Trust. III. PROPERTY COVERAGE PERIOD The Property Coverage Period begins at precisely 12:00:00 a.m. (Pacific) on the inception date stated in the Declarations, and ends at precisely 11:59:59 p.m. (Pacific) on the expiration date stated in the Declarations.

6 Page 2 In the absence of cancellation or rescission of this Property Coverage Document, breach of any part of this Property Coverage Document, or termination or resignation of membership of the Named Participant in the Special Districts Association of Oregon, this Property Coverage Document is in full force and effect during the Property Coverage Period. This Property Coverage Document does not apply to or provide any coverage for any loss or damage that originates or occurs before or after the Property Coverage Period. IV. NAMED PARTICIPANT The Named Participant is the member or associate member of the Special Districts Association of Oregon, in good standing, with all dues paid, and expressly identified as the Named Participant in the Declarations. In entering into this contract, the Named Participant expressly agrees and represents that the Named Participant is qualified for and entering into membership in a jointly established self-insurance program pursuant to ORS , ORS (5), and ORS Chapter 190. In entering into this contract, the Named Participant expressly agrees and represents that the Named Participant understands that this Property Coverage Document is not an insurance policy, and that the Trust, pursuant to ORS (5), is exempt from application of the Oregon Insurance Code. See ORS In entering into this contract, the Named Participant expressly agrees and represents that the Named Participant, its employees, contractors, vendors, and any person or organization authorized by the Named Participant to act on the Named Participant s behalf, will make every reasonable effort to mitigate the amount of damage or loss sustained in the event of any covered loss, including the costs of repairing or replacing any covered damage or loss. Except as expressly set forth in this Property Coverage Document, this Property Coverage Document does not apply to any loss or damage sustained by anyone other than the Named Participant. V. LIMITS OF INDEMNIFICATION AND PER-OCCURRENCE AGGREGATE LOSS LIMIT We shall not pay, nor be liable for, in indemnification or otherwise, any amount in excess of the Total Limit of Indemnification stated in the Declarations for any single occurrence during the Property Coverage Period, inclusive of any and all costs and expenses involved in ascertaining the nature and scope of loss or damage, mitigation and remediation of loss or damage, and investigation, adjustment and payment of claims arising out of any occurrence. Any other limit or sub-limit set forth in this Property Coverage Document is included in and subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. In addition, coverage under this Property Coverage Document is subject to the SDIS Per-Occurrence Aggregate Loss Limit shown in the Declarations. The SDIS Per-Occurrence Aggregate Loss Limit is the maximum amount that the Trust will pay in the aggregate for all covered losses sustained by all Trust participants combined, including and in addition to the Named Participant, arising out of or resulting from a single occurrence. The SDIS Per-Occurrence Aggregate Loss Limit applies to all Trust participants and coverage documents issued by the Trust, including and in addition to the Named Participant and this Property Coverage Document, regardless of the magnitude of, or the number of Trust participants impacted by, any occurrence.

7 Page 3 In the event that an occurrence results in covered losses among multiple Trust participants in excess of the SDIS Per-Occurrence Aggregate Loss Limit, indemnification for the covered losses of each individual Trust participant, including the Named Participant, will be based upon the ratio of each individual participant s covered damage to the total amount of damage sustained by all Trust participants combined. VI. DEDUCTIBLES We will not indemnify anyone for loss or damage otherwise covered under this Property Coverage Document unless and until the amount of covered loss or damage to Covered Property arising out of any single occurrence exceeds any and all deductibles applicable to that Covered Property and Covered Cause of Loss. We will only indemnify the Named Participant for the amount of covered loss or damage in excess of the Deductible stated in the Declarations, subject to the limit of indemnification stated in the Declarations, or other applicable deductibles and limits expressly set forth in this Property Coverage Document. In the event that more than one deductible applies to covered damage arising out of any single occurrence only the largest deductible will apply. VII. COVERED CAUSES OF LOSS OR DAMAGE This Property Coverage Document covers direct physical loss or damage to Covered Property, unless the loss or damage is expressly excluded from coverage or otherwise limited by the terms and conditions set forth in this Property Coverage Document. VIII. COVERED PROPERTY Except as otherwise limited or excluded from coverage under this Property Coverage Document, Covered Property includes the following: A. Your buildings and other structures listed and specifically described on the Schedule of Property Values on file with the Trust. Buildings and other structures that are not specifically listed and described on the Schedule of Property Values on file with the Trust are not covered under this Property Coverage Document. B. Your interest as tenant in improvements and betterments to buildings and other structures rented or leased to you and listed and specifically described on the Schedule of Property Values on file with the Trust. Your interest as tenant in improvements and betterments in any building or other structure that is not listed and specifically described on the Schedule of Property Values on file with the Trust is not covered under this Property Coverage Document. C. Your personal property located within buildings and other structures listed and specifically described on the Schedule of Property Values on file with the Trust, but only if a value greater than zero is shown on the Schedule of Property Values for personal property located at the building or other structure in which loss or damage occurs. Except as expressly set forth elsewhere in this Property Coverage Document, personal

8 Page 4 property that is not located within buildings and other structures listed and specifically described on the Schedule of Property Values on file with the Trust, or for which a value greater than zero is not shown for personal property on the Schedule of Property Values, is not covered under this Property Coverage Document. D. Your scheduled personal property listed and specifically described on the Schedule of Personal Property Values on file with the Trust. The most we will pay in indemnification of covered damage or loss to any item of scheduled personal property is the limit shown for that specific item of damaged or lost scheduled personal property on the Schedule of Property Values on file with the Trust. E. Personal property of others that is within in your care, custody, or control, but only to the extent of your legal liability or contractual responsibility for such property. Covered damage or loss to personal property of others that is within your care, custody, or control will be indemnified at actual cash value only. The most we will pay in indemnification of covered damage or loss to personal property of others that is within your care, custody, or control is the limit for Personal Property of Others stated in the Declarations. F. At the option of the Named Participant, personal property of employees on premises listed on the Schedule of Property Values on file with the Trust. Covered damage or loss to personal property of employees will be indemnified at actual cash value only. The most we will pay in indemnification of covered damage or loss to personal property of employees is the limit for Personal Property of Employees stated in the Declarations. G. Your scheduled mobile equipment listed and specifically described on the Schedule of Property Values on file with the Trust. The most we will pay in indemnification of covered damage or loss to any item of scheduled mobile equipment is the limit shown for that specific item of damaged or lost scheduled mobile equipment shown on the Schedule of Property Values on file with the Trust. H. Mobile equipment of others that is within your care, custody, or control, but only to the extent of your legal liability or contractual responsibility for such property. Covered damage or loss to mobile equipment of others that is within your care, custody, or control will be indemnified at actual cash value only. The most we will pay in indemnification of covered damage or loss to personal property of others that is within your care, custody, or control is the limit for Mobile Equipment of Others stated in the Declarations. I. At the option of the Named Participant, mobile equipment that is loaned to the Named Participant free of any charge, for the purpose of completing construction, demolition, remodeling, or repairs performed solely by the Named Participant in the absence of any contract or construction agreement. Covered damage or loss to mobile equipment that is loaned to the Named Participant will be indemnified at actual cash value only. The most we will pay in indemnification of covered damage or loss to mobile equipment that is loaned to the Named Participant is the limit for Mobile Equipment of Others stated in the Declarations. J. Fine art located within buildings and other structures listed and specifically described on the Schedule of Property Values on file with the Trust. The most we will pay in indemnification of covered damage or loss to fine arts is the limit for Fine Arts stated in

9 Page 5 the Declarations. Except as expressly set forth elsewhere in this Property Coverage Document, fine art that is not located within buildings and other structures listed and specifically described on the Schedule of Property Values on file with the Trust is not covered under this Property Coverage Document. K. Scheduled fine art listed and specifically described on the Schedule of Property Values on file with the Trust, but only while located within buildings and other structures listed and specifically described on the Schedule of Property Values on file with the Trust. The most we will pay in indemnification of covered damage or loss to any item of scheduled fine art is the limit shown for that specific item of damaged or lost scheduled fine art shown on the Schedule of Property Values on file with the Trust. IX. PROPERTY THAT IS NOT COVERED PROPERTY Except as expressly set forth elsewhere in this Property Coverage Document, the following property is not Covered Property under any circumstances: A. Land; B. Buildings and other structures that are not specifically listed and described on the Schedule of Property Values on file with the Trust; C. Personal property while it is not located within a building or other structure; D. Mobile equipment that is not specifically listed and described on the Schedule of Property Values on file with the Trust; E. Fine art and scheduled fine art while it is not located within a building or other structure specifically listed and described on the Schedule of Property Values on file with the Trust; F. Money and Securities; G. Outdoor property and scheduled outdoor property; H. Property in Transit; I. Valuable Papers and Records; J. Trees, lawns, shrubs, plants, standing timber, and growing crops; K. Casts, dies, forms, frames, jigs, models, molds, and patterns; L. Glass, glassware, crystal, china, porcelain and similar articles of a fragile nature, including lenses of photographic or scientific instruments; M. Contraband, or property used, sold, or purchased in the course of illegal transportation or trade;

10 Page 6 N. Aircraft, watercraft, automobiles, and any other vehicle subject to registration, including their motors, equipment, and accessories; O. Fur, fur garments, jewelry and watches, watch movements, jewels, pearls, precious and semi-precious stones, gold, silver, platinum and other precious metals or alloys; P. Railroad rolling stock; Q. Any property while waterborne, except or while located in or upon a transporting land conveyance while that conveyance is itself being transported on a regularly scheduled ferry on an inland waterway; R. Any property that is being or has been moved on the basis of unauthorized instructions; S. Any property that has disappeared or is missing, where the only evidence of any loss or damage is a shortage disclosed upon auditing or taking inventory, or under any other circumstance in which there is no physical evidence to show what happened to the missing property; and T. Any property which is more specifically insured in whole or in part under any other contract of insurance. X. ADDITIONAL COVERAGES Subject to all of the terms, conditions, limitations, and exclusions set forth in this Property Coverage Document, Additional Coverage is provided for the following loss or damage: A. Debris Removal Expenses Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you incur to remove debris of Covered Property resulting from a Covered Cause of Loss that occurs during the Coverage Period. 1. We will only reimburse debris removal expenses that are incurred and reported to us in writing within 180 days of the inception of a Covered Cause of Loss. 2. The most we will pay under this Additional Coverage is the lesser of a. the limit for Debris Removal Expenses stated in the Declarations; or b. 25% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring expenses for debris removal; plus (2) the Deductible applicable to the covered loss or damage.

11 Page 7 3. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 4. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, incurred for: a. any extraction of pollution from land or water, regardless of whether or not required by any law, ordinance, regulation, or order of any government agency or authority; b. any removal, restoration, repair, remediation, or replacement of any land or water contaminated by pollution, regardless of whether or not required by any law, ordinance, regulation, or order of any government agency or authority; c. any extraction of pollution from any debris resulting from a Covered Cause of Loss, regardless of whether or not required by any law, ordinance, regulation, or order of any government agency or authority; d. any removal or transportation of any land, water, debris, or property contaminated by pollution to any site for decontamination or storage, regardless of whether or not required by any law, ordinance, regulation, or order of any government agency or authority; e. any containment, remediation, treatment or removal of fungus, or debris containing fungus, regardless of whether or not required by any law, ordinance, regulation, or order of any government agency or authority; or f. any evaluation, testing for, monitoring, or assessing the existence, concentration or effect of pollution or fungus. Paragraphs X.A.4.c. and X.A.4.d. above do not apply when covered loss or damage is caused directly by explosion, fire, hail, impact of aircraft in flight, impact of motor vehicle while in operation and under power, lightning, malicious mischief, riot, smoke, vandalism, or windstorm. Paragraphs X.A.4.a. through X.A.4.d. above do not apply to covered loss or damage caused directly by leakage or accidental discharge from automatic fire protective systems, plumbing, or sewers on premises listed on the Schedule of Property Values on file with the Trust. 5. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations.

12 Page 8 B. Pollution Clean-Up and Removal Expenses Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you incur to extract and remove pollution from land or water at premises listed on the Schedule of Property Values on file with the Trust. 1. We will only reimburse you for the cost of extracting or removing pollution present as the result of discharge, dispersal, seepage, migration, release or escape of the pollution caused by or resulting from a Covered Cause of Loss to Covered Property that occurs during the Coverage Period; 2. We will only reimburse you for pollutant clean-up and removal expenses that are incurred and reported to us in writing within 180 days of the inception of a Covered Cause of Loss. 3. The most we will pay under this Additional Coverage is the lesser of a. the limit for Pollution Clean-Up and Removal Expenses stated in the Declarations; or b. 20% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring expenses for pollution clean-up and removal; plus (2) the Deductible applicable to the covered loss or damage. 4. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 5. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, incurred for evaluating, testing for, monitoring, or assessing the existence, concentration or effect of pollution whether on or off premises listed on the Schedule of Property Values on file with the Trust. 6. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, incurred for the assessment, testing, containment, remediation, treatment, or removal of fungus. 7. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations.

13 Page 9 C. Fungus Resulting from Covered Loss Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you incur for the assessment, testing, containment, remediation, treatment, or removal of fungus growing at premises listed on the Schedule of Property Values on file with the Trust as a direct result of a Covered Cause of Loss to Covered Property. 1. We will only reimburse assessment, testing, containment, remediation, treatment, or removal expenses that are incurred and reported to us in writing within 180 days of the inception of a Covered Cause of Loss. 2. The most we will pay under this Additional Coverage is the lesser of a. the limit for Fungus Resulting from Covered Loss stated in the Declarations; or b. 10% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring expenses for fungus remediation and removal; plus (2) the Deductible applicable to the covered loss or damage. 3. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 4. This Additional Coverage does not apply to expenses incurred by you or anyone else for the assessment, testing, containment, remediation, treatment, or removal of fungus growing or otherwise existing at premises listed on the Schedule of Property Values on file with the Trust prior to a Covered Cause of Loss to Covered Property. 5. This Additional Coverage does not apply to expenses incurred by you or anyone else for the assessment, testing, containment, remediation, treatment, or removal of fungus discovered at premises listed on the Schedule of Property Values on file with the Trust after the Property Coverage Period. 6. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. D. Preservation of Undamaged Covered Property Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you incur to remove and preserve

14 Page 10 undamaged Covered Property following a Covered Cause of Loss at premises listed on the Schedule of Property Values on file with the Trust. 1. We will only reimburse removal and preservation expenses that are incurred and reported to us in writing within 60 days of the inception of a Covered Cause of Loss. 2. The most we will pay under this Additional Coverage is the lesser of a. the limit for Preservation of Undamaged Covered Property stated in the Declarations; or b. 10% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring expenses for the preservation of undamaged covered property; plus (2) the Deductible applicable to the covered loss or damage. 3. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 4. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. E. Professional Services Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you incur for the services of accountants, architects, engineers, or other professionals whom you employ to assist you in the investigation of the cause of damage to, evaluation of the scope of damage to, or the remediation, repair, or restoration of, Covered Property at premises listed on the Schedule of Property Values on file with the Trust following a Covered Cause of Loss. 1. We will not reimburse any expenses that you incur for the services of accountants, architects, engineers, or other professionals unless you and the Trust have agreed in writing, which shall state the goal, scope and estimated cost of the services to be provided, prior to you incurring any such expenses. 2. We will only reimburse expenses that you incur for the services of accountants, architects, engineers, or other professionals that are incurred and reported to us in writing within 365 days of the inception of a Covered Cause of Loss. 3. The most we will pay under this Additional Coverage is the lesser of a. the limit for Professional Services stated in the Declarations; or

15 Page 11 b. 10% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring expenses for professional services; plus (2) the Deductible applicable to the covered loss or damage. 4. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, arising out of services provided to you by: a. any public adjuster, independent adjuster, or appraiser; b. any representative or employee of any public adjuster, independent adjuster, or appraiser; c. any person hired by or sub-contracting with any public adjuster, independent adjuster, or appraiser whom you have hired or with whom you have contracted; or d. any attorney, paralegal, legal assistant, or other provider of legal services or legal advice. 5. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 6. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. F. Fire Department Service Charge Subject to the additional conditions and limitations set forth below, we will reimburse you for fire department service charges that you incur as the result of a Covered Cause of Loss at premises listed on the Schedule of Property Values on file with the Trust. 1. We will only reimburse fire department service charges that are incurred and reported to us in writing within 60 days of the inception of a Covered Cause of Loss. 2. We will only reimburse fire department service charges that: a. you assumed by contract or agreement prior to the Covered Cause of Loss; or b. are imposed by statute, regulation, or local ordinance that is codified and in force prior to the Covered Cause of Loss.

16 Page This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 4. The most we will pay under this Additional Coverage is the limit for Fire Department Service Charges stated in the Declarations. 5. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. G. Recharging of Fire Extinguishing Equipment 1. Subject to the additional conditions and limitations set forth below, we will reimburse you for costs that you incur: a. to recharge your hand-held fire extinguishers emptied while fighting fire at premises listed on the Schedule of Property Values on file with the Trust; b. to reset your fire sprinkler systems discharged during a fire at premises listed on the Schedule of Property Values on file with the Trust. 2. We will only reimburse costs for recharging fire extinguishers or resetting fire sprinkler systems that are incurred and reported to us in writing within 60 days of the inception of a Covered Cause of Loss. 3. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 4. The most we will pay under this Additional Coverage during the Property Coverage Period is the limit for Recharging of Fire Extinguishing Equipment stated in the Declarations. 5. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. H. Arson Reward Subject to the additional conditions and limitations set forth below, we will reimburse you for rewards that you pay for information leading to the arrest and conviction of any person who sets fire to Covered Property at premises listed on the Schedule of Property Values on file with the Trust. 1. The most we will pay under this Additional Coverage for any single occurrence is the amount agreed upon, in writing, by the Trust and the Named Participant

17 Page 13 following a determination by law enforcement that damage or loss covered under this Property Coverage Document was the result of arson committed by someone other than the Named Participant. 2. The most we will pay under this Additional Coverage during the Property Coverage Period, regardless of the number of occurrences to which this Additional Coverage may apply, is the aggregate limit for Arson Reward stated in the Declarations. 3. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. I. Increased Costs of Construction Enforcement of Ordinance or Law 1. Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you incur as the result of the actual enforcement of any law, ordinance, or regulation that: a. requires the demolition and removal of undamaged parts of a covered building, other structure, or scheduled outdoor property as a direct result of damage to the same covered building, other structure, or scheduled outdoor property caused by a Covered Cause of Loss; b. regulates the repair, renovation, or construction of a covered building, other structure, or scheduled outdoor property following damage to the same covered building, other structure, or scheduled outdoor property caused by a Covered Cause of Loss; or c. regulates the use or zoning of land at premises listed on the Schedule of Property Values on file with the Trust following damage to a covered building, other structure, or scheduled outdoor property caused by a Covered Cause of Loss. 2. The most we will pay under this Additional Coverage is the lesser of: a. the limit for Increased Costs of Construction Enforcement of Ordinance or Law stated in the Declarations; or b. 25% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring expenses for increased costs of construction; plus (2) the Deductible applicable to the covered loss or damage; or c. the amount necessary to comply with the minimum requirements of each ordinance or law enforced as a direct result of damage to a

18 Page 14 covered building, other structure, or scheduled outdoor property caused by a Covered Cause of Loss. 3. This Additional Coverage only applies to reasonable and necessary expenses that you incur as the result of the actual enforcement of any law, ordinance, or regulation that is codified and in force at the inception of loss or damage to a covered building, other structure, or scheduled outdoor property caused by a Covered Cause of Loss. 4. This Additional Coverage only applies to buildings, other structures, and scheduled outdoor property at premises listed on the Schedule of Property Values on file with the Trust, and for which replacement cost value is expressly indicated in the Declarations. 5. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 6. This Additional Coverage does not apply: a. Unless or until the damaged building, other structure, or scheduled outdoor property is actually repaired; or b. Unless or until the damaged building, other structure, or scheduled outdoor property is actually replaced, on the same or another premises, with a building, other structure, or scheduled outdoor property of similar size designed and intended for the same use and occupancy as the building, other structure, or scheduled outdoor property being replaced. 7. This Additional Coverage does not apply unless repair or replacement of the damaged building, other structure, or scheduled outdoor property is completed within one year of the inception of a Covered Cause of Loss. This period may only be extended: a. in writing; and b. after consultation and agreement with the Trust. 8. This Additional Coverage does not apply unless or until the Named Participant has exhausted its appeals or challenges to the applicability or enforcement of any law, ordinance, or regulation disputed by the Named Participant or the Trust. In the event that the Trust disputes the applicability or enforcement of any law, ordinance, or regulation, the Named Participant shall appeal or challenge the application or enforcement of the law, ordinance, or regulation at the request and expense of the Trust. 9. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from

19 Page 15 the enforcement of any ordinance or law that you were required to comply with prior any loss or damage, but failed to comply with prior to that loss or damage. 10. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from the enforcement of any ordinance or law requiring you or anyone else to assess the existence of, test for, evaluate, monitor, contain, clean up, detoxify, neutralize, remediate, remove, treat, or in any other way respond to the presence or effect of pollution. 11. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. J. Increased Costs of Construction Costs Resulting from Unforeseen Delay Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary expenses that you actually incur as the direct result of any delay in completion of construction beyond an agreed upon completion date caused by a Covered Cause of Loss to a covered building, other structure, or scheduled outdoor property that is in the course of construction at the inception of a Covered Cause of Loss. 1. This Additional Coverage only applies to, and reimbursement under this Additional Coverage is expressly limited to, reimbursement of the following costs and expenses that you actually incur following a Covered Cause of Loss to a covered building, other structure, or scheduled outdoor property that is in the course of construction at the inception of the Covered Cause of Loss: a. additional interest incurred as a direct result of delay in completion of construction beyond the agreed upon completion date; b. additional real estate taxes or other assessments actually incurred as a direct result of delay in completion of construction beyond the agreed upon completion date; c. additional advertising and promotional expenses reasonably and necessarily incurred as a direct result of delay in completion of construction beyond the agreed upon completion date; d. additional commission expenses and legal fees actually incurred in the reasonable and necessary renegotiation of leases and other contracts as a direct result of delay in completion of construction beyond the agreed upon completion date; e. additional licensing and permitting fees actually incurred as a direct result of delay in completion of construction beyond the agreed upon completion date; and

20 Page 16 f. loss of rents or rental value directly attributable to delay in completion of construction beyond the agreed upon completion date; 2. The most we will pay under this Additional Coverage is the lesser of: a. the limit for Increased Costs of Construction Costs Resulting from Unforeseen Delay stated in the Declarations; or b. 25% of: (1) the total amount of indemnification that we pay to you for the covered loss or damage that resulted in you incurring costs or expenses as a direct result of delay in completion of construction beyond an agreed upon completion date; plus (2) the Deductible applicable to the covered loss or damage. 3. This Additional Coverage only applies to buildings, other structures, and scheduled outdoor property in the course of construction at premises listed on the Schedule of Property Values on file with the Trust, and for which replacement cost value is expressly indicated in the Declarations. 4. This Additional Coverage only applies to buildings, other structures, and scheduled outdoor property in the course of construction at the inception of a Covered Cause of Loss. 5. This Additional Coverage only applies to buildings, other structures, and scheduled outdoor property in the course of construction pursuant and subject to a fully executed contract in which an agreed upon completion date is expressly stated. 6. This Additional Coverage does not apply to any cost or expense, and we will not reimburse you or anyone else for any cost or expense, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 7. This Additional Coverage does not apply unless and until delay in completion of construction exceeds the agreed upon completion date by fifteen (15) days. 8. This Additional Coverage does not apply: a. Unless or until the damaged building, other structure, or scheduled outdoor property is actually repaired; or b. Unless or until the damaged building, other structure, or scheduled outdoor property is actually replaced, on the same or another premises, with a building, other structure, or scheduled outdoor property of similar size designed and intended for the same use and occupancy as

21 Page 17 the building, other structure, or scheduled outdoor property being replaced. 9. This Additional Coverage does not apply unless repair or replacement of the damaged building, other structure, or scheduled outdoor property is completed within one year of the inception of a Covered Cause of Loss. This period may only be extended: a. in writing; and b. after consultation and agreement with the Trust. 10. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from interference or interruption by strikers, protestors, or other persons on or off premises listed on the Schedule of Property Values on file with the Trust. 11. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from the enforcement of any ordinance or law that you were required to comply with prior to any Covered Cause of Loss, but failed to comply with prior to that Covered Cause of Loss. 12. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from the enforcement of any ordinance or law that requires the use of equipment, materials, or supplies different from equipment, materials, or supplies expressly provided for in the original construction contract. 13. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from the enforcement of any ordinance or law requiring you or anyone else to assess the existence of, test for, evaluate, monitor, contain, clean up, detoxify, neutralize, remediate, remove, treat, or in any other way respond to the presence or effect of pollution or fungus. 14. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from weather conditions. 15. This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from faulty materials or faulty workmanship.

22 Page This Additional Coverage does not apply to any cost or expense, and we will not reimburse any cost or expense incurred by you or anyone else, resulting from any delay in completion of construction directly or indirectly caused by, exacerbated by, or resulting from the repudiation, rescission, revocation, suspension, lapse, or cancellation of any lease, license, contract or order unless the repudiation, rescission, revocation, suspension, lapse, or cancellation is the direct result of physical damage to Covered Property caused by a Covered Cause of Loss at premises listed on the Schedule of Property Values on file with the Trust. 17. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. XI. ADDITIONAL COVERAGES BUSINESS INCOME AND EXTRA EXPENSE Subject to all of the terms, conditions, limitations, and exclusions set forth in this Property Coverage Document, Additional Coverage is provided for the following loss or damage: A. Business Income Loss Subject to the additional conditions and limitations set forth below, we will reimburse you for the actual loss of business income that you sustain due to the necessary suspension of your operations as a direct result of damage or loss to Covered Property caused by a Covered Cause of Loss at premises listed on the Schedule of Property Values on file with the Trust. 1. We will only reimburse you for the actual loss of business income that you sustain during the period of restoration. 2. The most we will pay under this Additional Coverage is the limit for Business Income Loss stated in the Declarations. 3. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, resulting from or arising out of any damage or loss to Covered Property for which stated value is indicated on the Schedule of Property Values on file with the Trust. 4. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, caused by or resulting from unfavorable environmental conditions, unfavorable business conditions, or loss of market not directly caused by a Covered Cause of Loss to Covered Property at premises listed on the Schedule of Property Values on file with the Trust. 5. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, resulting from any delay in completing repairs or replacement of Covered Property directly or indirectly caused by, exacerbated by, or resulting from

23 Page 19 interference or interruption by strikers, protestors, or other persons on or off premises listed on the Schedule of Property Values on file with the Trust. 6. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, resulting from any delay in completing repairs or replacement of Covered Property directly or indirectly caused by, exacerbated by, or resulting from the enforcement of any ordinance or law that you were required to comply with prior to any Covered Cause of Loss, but failed to comply with prior to that Covered Cause of Loss. 7. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, resulting from any delay in completing repairs or replacement of Covered Property directly or indirectly caused by, exacerbated by, or resulting from enforcement of any ordinance or law requiring you or anyone else to assess the existence of, test for, evaluate, monitor, contain, clean up, detoxify, neutralize, remediate, remove, treat, or in any other way respond to the presence or effect of pollution or fungus. 8. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, resulting from any delay in completing repairs or replacement of Covered Property directly or indirectly caused by, exacerbated by, or resulting from faulty materials or faulty workmanship. 9. This Additional Coverage does not apply to any loss of business income, and we will not reimburse you or anyone else for any loss of business income, resulting from any delay in completing repairs or replacement of Covered Property directly or indirectly caused by, exacerbated by, or resulting from the repudiation, rescission, revocation, suspension, lapse, or cancellation of any lease, license, contract or order unless the repudiation, rescission, revocation, suspension, lapse, or cancellation is the direct result of physical damage to Covered Property caused by a Covered Cause of Loss at premises listed on the Schedule of Property Values on file with the Trust. 10. Any amounts paid under this Additional Coverage are included in, subject to, and not in any event in addition to, the Total Limit of Indemnification stated in the Declarations. B. Extra Expense Incurred Subject to the additional conditions and limitations set forth below, we will reimburse you for reasonable and necessary extra expense that you incur as a direct result of damage or loss to Covered Property caused by a Covered Cause of Loss at premises listed on the Schedule of Property Values on file with the Trust. 1. We will only reimburse you for extra expense to the extent that the extra expense incurred reduces the amount of loss that otherwise would have been payable under this Additional Coverage.