FLORIDA SINKHOLE LOSS COVERAGE TEN PERCENT (10%) DEDUCTIBLE

Transcription

1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. FLORIDA SINKHOLE LOSS COVERAGE TEN PERCENT (10%) DEDUCTIBLE Part A DEFINITIONS 3. Coverage applies to direct physical loss caused The following definitions are added: by "sinkhole activity" to: 1. "Sinkhole" means a landform created by subsib. a. Structures covered under Coverage B; and dence of soil, sediment, or rock as underlying Personal property covered under Coverage strata are dissolved by ground water. A "sinkhole" C, but only if there is damage to the "principal forms by collapse into subterranean voids created building" or other structures. by dissolution of limestone or dolostone or by subsidence as these strata are dissolved. However: c. We will not pay for land stabilization or foun- 2. "Sinkhole loss" means "structural damage" to the covered building, including the foundation, dation repair for Coverage B other structures; arising out of or caused by "sinkhole activity". and Contents coverage and additional living expenses d. The additional living expenses provided in apply only if there is structural damage to the Coverage D applies only if there is "structural covered building caused by "sinkhole activity". damage" to the "principal building" caused by a "sinkhole loss". 3. "Sinkhole activity" means settlement or systematic weakening of the earth supporting the Part C Amount of Your Sinkhole Deductible covered building only if the settlement or system- atic weakening results from contemporaneous 1. Subject to number three of this section, Forms movement or raveling of soils, sediments, or rock 633 and 635: materials into subterranean voids created by the The dollar amount of your Sinkhole Deductible is effect of water on limestone or similar rock forma- calculated by multiplying the Coverage A amount tions. shown on the Declarations by Ten percent (.10). Part B Coverage 2. Subject to number three of this section, Forms 1. In the event of a "sinkhole loss," coverage applies 634 and 636: up to the Limits of Liability displayed on the Dec- The dollar amount of your Sinkhole Deductible is larations. calculated by multiplying the Coverage C amount shown on the Declarations by Ten percent (.10). This coverage does not increase the limit of liability applying to the damaged covered property. 3. A minimum Sinkhole Deductible of $500 applies. 2. Coverage applies to direct physical loss to the Part D Changes to the Amount of Your Sinkhole "principal building" covered under Section I Deductible caused by a "sinkhole loss", including the costs incurred to: 1. For Forms 633 and 635: a. Stabilize the land supporting the "principal building"; b. Stabilize the "principal building"; and c. Repair the foundation of the "principal building"; If your coverage limit is increased through appli- cation of your policy s Inflation Coverage, the amount of your Sinkhole Deductible will automatically be increased based on the coverage limit at the time of the "sinkhole loss". in accordance with the recommendations of the professional engineer who verifies the loss was caused by a "sinkhole" in compliance with Florida "sinkhole" testing standards and with notice to you, subject to the coverage and terms of the policy. If we or you change the amount of Coverage A, it will result in a change to the actual dollar amount of your Sinkhole Deductible. For Forms 634 and 636: If we or you change the amount of Coverage C, it will result in a change to the actual dollar amount of your Sinkhole Deductible. 2. For Forms 633, 635 and 636: PL Page 1 of

2 Part E Application of Sinkhole Deductible hole loss" must be provided to us in accordance with the terms of this policy 1. Your Sinkhole Deductible applies separately to within two years after you knew or reaeach covered "sinkhole loss" to an "insured locasonably should have known about the tion". "sinkhole loss". 2. In the event of more than one "sinkhole loss", 2. Paragraph 3. Loss Settlement with respect to a your Sinkhole Deductible will apply separately to loss to the "principal building" caused by a "sinkeach loss. hole loss" for Forms 633 and 635 Paragraph b. Part F Coverages to which Sinkhole Deductible (2) is deleted and replaced by the following (this applies; Other Deductibles; Concurrent Causation also applies for Coverage A in Form 636): 1. Your Sinkhole Deductible applies to all "sinkhole 3.b.(2) we will pay for the loss as follows: losses" under Section I Property Coverages. It (a) We will pay no more than the actual applies to any other coverage or endorsement cash value of the damaged property, shown on your policy Declarations that insures not including underpinning or grouting property and does not contain it s own separate or any other repair technique perdeductible. formed below the existing foundation 2. The Sinkhole Deductible does not apply to the of the "principal building", until you portion of a "sinkhole loss" insured by a coverage enter into a contract for the performor endorsement that has its own specified dollar ance of building stabilization or foun- amount or percentage deductible including, but dation repairs, in accordance with the not limited to: recommendations of the professional engineer's report and within 90 days a. Refrigerated Food Spoilage, under Coverage after we notify you with confirmation J, in Forms 633, 634, 635, and 636. of coverage. If either you or we invoke the neutral evaluation process, b. Golf Cart Coverage endorsement. the 90-day period begins anew 10 c. Coverage L Loss Assessment, or the Loss days after that process concludes. Assessment endorsement if applicable to Once you enter into such contract, we your policy. will settle the loss as described in this Part G SECTION I - EXCLUSIONS condition and pay the amount necessary to begin and perform such re- 1. We do not insure a "sinkhole loss" which occurred pairs as work progresses and as prior to the inception of this policy. expenses are incurred. The stabilization and all other repairs to the "prin- 2. We do not insure a "sinkhole loss" which occurred cipal building" must be completed prior to the inclusion of this coverage on your polwithin 12 months after entering into icy. such contract for repairs, unless: 3. In ADDITIONAL COVERAGES, 11. Collapse, d. 1) There is a mutual agreement beexclusion for loss caused by "sinkhole" is deleted. tween you and us; or All other exclusions in the policy and Amendatory Endorsement also apply to the coverage in this 2) The claim is: involved in neutral endorsement with the exception of Earth Move- evaluation; in litigation; or under ment. appraisal or mediation. 4. Any loss resulting from "catastrophic ground However, if the cost to repair or replace cover collapse" is not insured by this endorsement. the damage is both: 1) Less than 5% of the amount of Part H SECTION I CONDITIONS insurance in this policy on the building; and 1. Paragraph 2. Your Duties After Loss, item a. is deleted and replaced by the following: 2) Less than $2,500; 2. a. give prompt notice to us which includes but is not limited to phoning our Instant Claim Service or contacting your agent except that, notice of any initial, supplemental claim or reopened claim for "sink- we will settle the loss as noted in this condition whether or not you have entered into a contract to perform the building stabilization or foundation repairs. PL Page 2 of

3 (b) If we deny your claim for "sinkhole completed within the policy limits, we loss" without performing testing as must either: specified under Florida law, you may 1) Complete the recommended redemand such testing by writing to us pairs; or within 60 days after you receive our denial of the claim. You must pay the 2) Pay the policy limits without a relesser of: duction for the repair expenses 1) 50% of the actual costs of the incurred. analyses and services we provide (f) As a precondition to accepting payunder Florida law; or ment for a "sinkhole loss", you must, 2) $2,500. at your own expense, file with the county clerk of the court a copy of However, if the professional engineer or any "sinkhole" report regarding the professional geologist selected or ap- insured property that was: proved by us provides written certification of a "sinkhole loss" we will reimburse you 1) Prepared on your behalf; or for the costs. 2) Requested by you. (c) If we: After you have filed the "sinkhole" report with the county clerk of the court, you 1) Receive written certification that must provide us in writing proof of filing there is no "sinkhole loss" or that with the county clerk of the court. the cause of damage was not "sinkhole activity" and determine (g) You may not accept a rebate from that you submitted a claim for any person performing the repairs "sinkhole loss" without good faith specified under this coverage. If you grounds; and do receive a rebate, coverage is void and you must refund the amount of 2) You requested the testing, analythe rebate to us. Any person making sis and services we provided as the repairs specified under this covspecified under Florida law after erage who offers a rebate commits we informed you in writing of your insurance fraud punishable as a third potential liability for reimbursedegree felony as provided under Florment and gave you the opportuida Statutes , or nity to withdraw the claim, As used in this paragraph, you must reimburse us for the lesser the term "rebate" means a remuneraof: tion, payment, gift, discount, or transfer of any item of value to you by or 3) 50% of the actual costs of the on behalf of a person performing the analyses and services we prorepairs specified under this coverage vided as specified under Florida as an incentive or inducement to oblaw; or tain repairs performed by that person. 4) $2, Paragraph 6. Appraisal is deleted and replaced (d) If the professional engineer selected with the following: or approved by us verifies a "sinkhole loss" but, before repairs have begun, 6. Neutral Evaluation. determines that the recommended If we deny a "sinkhole loss" claim, either party repairs cannot be completed within may request neutral evaluation of disputed the policy limits, we must either: "sinkhole" claims with the Florida Department of Financial Services (the Department) in ac- 1) Complete the recommended recordance with the rules established by the pairs; or Department. In this event, you and we shall 2) Pay the policy limits. mutually select a neutral evaluator from a list maintained by the Department. If you and we (e) If the repairs have begun and the pro- fail to agree on a neutral evaluator within 14 fessional engineer selected or ap- business days, the Department shall appoint proved by us determines that the a neutral evaluator. The neutral evaluation recommended repairs cannot be conference shall be held within 90 days after PL Page 3 of

4 receipt of the request by the Department. The Part I SECTION I and II CONDITIONS neutral evaluator must be allowed reasonable access to the property being evaluated. Beadded: Paragraph 8. NON-RENEWAL. Paragraph f. is fore the evaluator's physical inspection of the property, he or she must be provided with any 8. NON-RENEWAL. reports confirming a "sinkhole loss" or disputf. We will not nonrenew this policy on the ing another "sinkhole" report. The recommenbasis of filing of claims for loss caused by dation of the neutral evaluator will not be binding on you or us. "sinkhole" damage, unless: We will pay the reasonable costs associated 1. the total of such property insurance with the neutral evaluation. claim payments for this policy equals or exceeds the policy limits of the pol- Paragraph 8. Suit Against Us is amended as fol- icy in effect on the date of the loss for lows: property damage to the covered No action can be brought unless the "insured" has building; or complied with all terms of this policy. Filing a re- 2. you have failed to repair the structure quest for neutral evaluation tolls the applicable in accordance with the professional time requirements for filing suit for a period of 60 engineer recommendations upon days following the conclusion of the neutral which any loss payment or policy proevaluation process or five years from the loss ceeds were based. date, whichever is later. Part J Miscellaneous All other provisions of the policy apply. PL Page 4 of

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