Planned Unit Development Property Coverage Form

Transcription

1 Planned Unit Development Property Coverage Form Please read the entire policy. Words in bold print, other than titles and headings, have the meaning given to them in the Definitions section. For the applicable limits of insurance refer to the Declarations Pages and the What We Cover section of this coverage form. Representations By accepting this policy you agree that: A. the statements on the Declarations Pages are accurate and complete; B. those statements are based upon representations you made to us; and C. we have issued this policy in reliance upon your representations. Concealment, Misrepresentation or Fraud We will not pay for any loss or damage if you have, or any other insured shown on the Declarations Pages has, whether before or after a loss, intentionally concealed or misrepresented any material fact or circumstance or made false statements or engaged in fraudulent conduct relating to this insurance. Agreement We will provide the insurance described in this policy in return for the premium and your compliance with all provisions of this policy, including endorsements. DH (08-15) Page 1 of 15

2 Limit of Insurance Regardless of the number of people or entities insured under this policy, the most we will pay for any one accident is the applicable limit of insurance shown herein or on the Declarations Pages in the Limit of Insurance section. What We Cover Subject to the terms, conditions, limitations, and exclusions of the policy, we provide the following coverage: Covered Property A. We cover the following property owned by you while at the insured location: 1. Subject to the Property Limit of Insurance shown on the Declarations Pages, a. structures, b. personal property used to maintain or service structures; and c. business personal property, except as provided in A.2. below. 2. Subject to the applicable Limit of Insurance shown on the Declarations Pages: a. Accounts Receivable Accounts receivable. b. Lawns, Trees, Shrubs, and other Plants Lawns, trees, shrubs, and other plants; not to exceed $2,500 for any lawn, tree, shrub or other plants. c. Lost Master Key Keys and locks that must be replaced or adjusted because a master key is lost or damaged. d. Money Money, checks, money orders, gift cards, and stamps. e. Newly Acquired Structures Structures, other than structures in the course of construction, you acquire ownership of during the policy period, and which are not covered by other insurance. This coverage ceases 90 days after the date you acquire the structures or at the expiration or cancellation date of this policy, whichever is first. An additional premium, computed by using the rates in effect for such structures at the date of acquisition, will be charged for the period of time we provide coverage. f. Retaining Walls Retaining walls and walls with retaining properties, which are not part of any building. g. Unscheduled Fine Arts, Unscheduled fine arts, including paintings, etchings, pictures, sculptures, statuary and other similar property of rarity, historical value, or artistic merit. h. Unscheduled Equipment, Unscheduled equipment, not including office equipment. i. Valuable Papers and Records Valuable Papers and Records, including the cost to research, replace, or restore the lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. B. We cover the following property while at an insured location, subject to the applicable Limit of Insurance shown on the Declarations Pages: 1. Employee Personal Property Personal property of your employee, not to exceed $1,000 for any one employee. 2. Personal Property of Others Personal Property of others in your care, custody, or control. This does not apply to personal property of your employees. DH (08-15) Page 2 of 15

3 C. We cover the following property owned by you at any location in the continental United States of America or Canada, subject to the applicable Limit of Insurance shown on the Declarations Pages: 1. Property Off-Premises Business Personal Property that is temporarily at a location that you do not own, lease, or operate. This does not apply to business personal property in or on a vehicle or in transit. 2. Property in Transit Business Personal Property, while it is in transit. Covered Property Losses We insure you against direct physical loss of or damage to Covered Property caused by an accident that occurs during the policy period. Additional Losses Covered A. We insure you against the following financial loss resulting from direct physical loss of or damage to Covered Property caused by an accident that occurs during the policy period, subject to the Property Limit of Insurance shown on the Declarations Pages: Ordinance Undamaged Portion of Structures Loss of value to the undamaged portion of a damaged structure when the undamaged portion must be demolished as a result of the enforcement of any ordinance, law or code regulating the use, repair, or construction of such structure. This coverage does not increase the Property Limit of Insurance shown on the Declarations Pages for the damaged structure. B. We insure you against the following financial losses resulting from direct physical loss of or damage to Covered Property caused by an accident that occurs during the policy period, subject to the applicable Limit of Insurance shown on the Declarations Pages and as shown below. 1. Business Income The actual loss of business income you sustain due to the necessary suspension of your business operations during the period of restoration. 2. Extra Expense The following extra expenses you incurred during the period of restoration, and which reduce the amount of loss that would otherwise be payable for a covered accident, to: a. avoid or minimize the suspension of the business and to continue business operations, including relocation expenses and costs to equip and operate a replacement or temporary location, and b. repair or replace Covered Property. 3. Debris Removal and Demolition The expenses necessarily incurred to remove debris of structures that is not a result of the enforcement of any law, ordinance, or code. This includes the expenses incurred to demolish and remove the debris of any undamaged portion of the damaged structure. where such expenses are incurred because it is not economical to repair the damaged structure. 4. Ordinance - Increased Costs DH (08-15) Page 3 of 15

4 The expenses necessarily expended due to increases in the cost to repair or replace damaged or destroyed structures due to the enforcement of any law, ordinance, or code. This is limited to the increased costs for: a. Repair or reconstruction of the structures; b. Demolition and debris removal of the structures, including the expenses to demolish and remove the debris of any undamaged portion of the structures where the expenses are incurred because of the enforcement of any ordinance, law or code which requires that the undamaged portion of the structures be demolished. However, $2,500 is the most we will pay because of the enforcement of any ordinance, law, or code in effect at the time of the loss or damage, which requires compliance even in the absence of damage to the structure. 5. Extraction of Pollutants The expenses actually and necessarily incurred by you to extract pollutants from land or water at an insured location. We will pay these expenses only if reported to us in writing within 180 days of the date of the accident. This limit of insurance is the most we will pay for all such expense incurred in any one 12 month policy period. 6. Fire Department Service Charges Fire department service charges incurred by you due to the fire department responding to save or protect Covered Property. 7. Refill and Recharge of Fire Protection Devices The costs incurred by you to refill and recharge fire protection devices, which are discharged as a result of an accident at an insured location. This does not apply to periodic recharge or refilling. 8. Arson and Crime Reward A reasonable reward you paid to anyone, other than you or your officers, partners, directors, or employees, for information leading to: a. the arrest and conviction of any person(s) responsible for arson, theft, or vandalism loss at an insured location; or b. the recovery of Covered Property stolen from an insured location. What We Do Not Cover Property Not Covered Except as provided for in Covered Property A.2, we do not cover any of the following property: A. accounts receivable; B. animals; C. contractor s equipment, machinery, and tools; D. dwellings; E. fine arts, including paintings, etchings, pictures, sculptures, statuary and other similar property of rarity, historical value, or artistic merit; F. fur, fur garments, watches, jewelry, bullions, precious and semi-precious stones, alloys, and metals; G. lawns, trees, shrubs, and other plants; H. land and land values; I. landscaping equipment, other than hand push lawn mowers, rakes, and other non-powered gardening or landscaping tools; J. keys and locks; K. money, money orders, checks, gift cards, and stamps; L. motor vehicles or trailers licensed for road use including their equipment; M. newly acquired structures; N. personal property of others, including employees personal property; DH (08-15) Page 4 of 15

5 O. retaining walls, including walls with retaining properties, which are not part of a building; P. valuable papers and records; Q. watercraft or aircraft. Losses Not Covered A. We do not insure you against loss of or damage to Covered Property resulting from or caused, directly or indirectly, by any of the following. Such loss or damage is not covered regardless of any accident that contributes concurrently or in any sequence to such loss or damage: 1. Earth movement, which includes all of the following: a. Earthquake, including tremors and aftershocks and any earth sinking, rising, or shifting related to such event; b. Landslide, including any earth sinking, rising, or shifting related to such event; c. Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased; d. Earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause settling, cracking, or other disarrangement of foundations or other parts of realty. Soil conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil, and the action of water under the ground surface. e. Volcanic eruption, explosion or effusion. This exclusion applies whether it is caused by an act of nature or otherwise. However, if earth movement described in items a. through d. above result in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. If earth movement described in item e. above results in fire, building glass breakage, or volcanic action, we will pay for the loss or damage caused by that fire, building glass breakage, or volcanic action except for the cost to remove ash, dust, or particulate matter that does not cause direct physical loss or damage to Covered Property. This exclusion does not apply to Covered Property while in transit. 2. The following losses: a. flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, storm surge or spray from any of these, all whether or not driven by wind; b. water that backs up through or overflows from a sewer, drain or sump if such backup or overflow is caused by any of the causes stated in section A.2.a., above; c. underground water, including water that presses on, flows or seeps through foundations, walls, floors, or paved surfaces, or into unpaved basements; or d. waterborne material carried or otherwise moved by any of the water referred to in section A.2.a., b., and c. above. These losses are not covered regardless of the cause, including but not limited to an act of nature, escape, overflow, or discharge of water or waterborne material from a dam, levee, seawall or any other boundary or containment system. However, direct loss by fire or explosion resulting from any of the above is covered. This exclusion does not apply to Covered Property while in transit. 3. Freezing of a plumbing, heating, air conditioning, automatic fire protective sprinkler system, or household appliance. However, we will pay for ensuing direct loss or damage caused by freezing of a plumbing, heating, air conditioning, automatic fire protective sprinkler system, or household appliance, including resulting damage from water not otherwise excluded, if you have shut off the water supply and drained the systems and appliances or if you have made a reasonable effort to maintain heat in the building. DH (08-15) Page 5 of 15

6 4. Insects, vermin or rodents. If fire or explosion ensues, we will be liable only for the ensuing direct damage from the fire or explosion. 5. Theft by you, your employee(s) or, with the exception of carriers for hire, by others to whom Covered Property is entrusted. If loss by fire or explosion resulting from theft by your employee(s) or by anyone to whom Covered Property is entrusted ensues, we will be liable only for the ensuing direct loss or damage from the fire or explosion. 6. Shortage disclosed on taking inventory or unexplained or mysterious disappearance of Covered Property. This exclusion does not apply to Covered Property in the custody of a carrier for hire. 7. Error in design, plans or specifications; faulty or defective workmanship or materials; inherent vice, latent or patent defect. If loss from fire, explosion, sprinkler leakage, falling objects, weight of snow, sleet or ice, or sudden discharge of water not otherwise excluded from a plumbing, heating or air conditioning system which has cracked or broken apart ensues, we will pay for the ensuing loss. We will not pay for the cost to correct the condition which causes such ensuing loss. 8. Mechanical breakdown, including rupture or bursting caused by centrifugal force. If loss from fire or explosion ensues, we will pay for the ensuing loss. We will not pay for the cost to correct the condition which causes such ensuing loss. 9. Pollution caused by or resulting from the presence of or the release, discharge, escape, dispersal, seepage or migration of pollutants. If the presence, release, discharge, escape, dispersal, seepage,or migration is caused by or results from fire; lightning; explosion; windstorm; hail; aircraft; vehicles; riot or civil commotion; vandalism or malicious mischief; sprinkler leakage; falling objects; volcanic action; or weight of snow, sleet or ice, we will pay for the resulting loss. 10. Seizure or destruction of property by order of governmental authority. But we will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread, if that fire would be covered by this policy. 11. War, including undeclared or civil war; warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; insurrection; rebellion; revolution; usurped power; or action taken by governmental authority in hindering or defending against any of these. 12. Nuclear reaction or radiation, or radioactive contamination, however caused. If nuclear reaction or radiation, or radioactive contamination results in fire, we will pay for the loss or damage caused by that fire. 13. Theft or mysterious disappearance of money, checks, money orders, gift cards, and stamps. DH (08-15) Page 6 of 15

7 B. We do not insure you against any of the following losses, however caused: 1. Wear and tear, deterioration, rust, organic pathogens, mold, wet or dry rot. If fire, explosion, or damage from water not otherwise excluded ensues, we will be liable only for the ensuing loss or damage from the fire, explosion, or water not otherwise excluded. 2. Settling, cracking, shrinking, bulging or expanding of Covered Property. If fire, explosion, or breakage of glass constituting an integral part of a structure ensues, we will be liable only for the ensuing loss or damage from the fire, explosion, or breakage of such glass. C. Except as provided for in section W hat We Cover, Additional Losses Covered A. and B. of this policy, we will not pay for: 1. Delay, loss of market, reduction in market value, loss of business income, extra expense, debris removal and demolition, extraction of pollutants, fire department service charges, refill and recharge of fire protection devices, arson and crime reward, and all other consequential losses. 2. Any loss due to the enforcement of any ordinance, law or code. Deductible Subject to the applicable Limit of Insurance, when you sustain a covered loss due to an accident, we will pay no more than the amount by which any covered loss exceeds the applicable deductible amount shown on the Declarations Pages. If more than one deductible applies to covered loss arising from a single accident, then each applicable deductible applies to all covered loss arising from the accident. Basis Of Loss Payment Subject to the provisions contained in the Limit of Insurance section and subject to all other terms, conditions, and limitations of this policy, the amount we will pay is calculated as follows: A. Structures 1. If the damaged or destroyed structure is not repaired or replaced, then we will pay the lesser of the following: a. the loss of actual cash value of the structure at the time and place of the accident with due consideration for depreciation from all sources however caused; or b. the cost to repair the damaged structure or replace the totally destroyed structure with new property of like kind, quality, and use at the same location within a reasonable time after the loss. 2. If the damaged structure is repaired or the totally destroyed structure is replaced, then we will pay: a. The amount you have actually and necessarily expended to repair or replace with new property of like kind, quality, and use at the same location within a reasonable time after the loss; or b. if you replace a totally destroyed structure by building a new structure elsewhere, we will pay the amount actually and necessarily expended to replace elsewhere within a reasonable time after the loss with a new structure of like kind, quality and use. In no DH (08-15) Page 7 of 15

8 event, however, shall payment under this option exceed what would have been payable had option a. above been elected; or c. if you replace a totally destroyed structure by purchasing an existing structure elsewhere, we will pay the amount reasonably required and actually expended to purchase within a reasonable time after the loss a structure of like kind, quality and use as the structure totally destroyed. In no event, however, shall payment under this option exceed what would have been payable had option a. above been elected. 3. If increases in covered loss are made necessary by reason of the enforcement of any ordinance or law regulating the use, construction, repair, or demolition of structures, the amount we will pay is limited to the amount you actually and necessarily expended in the repair of the structure or the replacement of the totally destroyed structure. However, the amount we will pay for increases in covered loss due to any ordinance or law in effect prior to the covered loss that required your compliance, even if the structures were undamaged, or any costs associated with any ordinance that applies to repair of structures that exist at the time construction commences, is limited to $2, If the damaged or totally destroyed structure was registered to be certified as a Green Building prior to the date of loss, by the U.S. Green Building Council under their LEED Green Building Rating System, the Green Building Initiative s Green Globes rating system, or the U.S. Environmental Protection Agency s Energy Star Partner registry system, we will pay the amount you actually and necessarily expended to repair the damaged structure or replace the totally destroyed structure with property that meets current standards for continued certification at the highest level of certification awarded to the structure prior to the loss. 5. You may first make a claim for the loss under paragraph A. Structures item 1. above. Then you have 1 year from the date of that payment to make a claim for any additional amount payable under paragraph A. Structures items 2., 3., and 4. above. Nothing in this paragraph modifies or extends the Time Limitation for Action provision in this policy. B. Personal Property 1. Your Business Personal Property, Employee Personal Property, and Unscheduled Equipment a. If the damaged or destroyed property is not repaired or replaced, then we will pay the lesser of the following: (1) the loss of actual cash value of the property at the time and place of the accident with due consideration for depreciation from all sources however caused; or (2) the cost to repair the damaged property or replace the totally destroyed property with new property of like kind, quality and use within a reasonable time after the loss. b. If the damaged property is repaired or the totally destroyed property is replaced, then we will pay the amount actually and necessarily expended to repair or replace with new property of like kind, quality and use within a reasonable time after the loss. You may first make a claim for the loss under paragraph B.1a. above. Then you have one year from the date of that payment to make a claim for any additional amount payable under paragraph B.1.b above. Nothing in this paragraph modifies or extends the Time Limitation for Action provision in this policy. 2. Personal Property of Others We will pay the owner of the personal property the amount for which you are legally liable. DH (08-15) Page 8 of 15

9 3. Unscheduled Fine Arts We will pay the lesser of the following for direct loss of or damage to Unscheduled Fine Arts: a. the loss of actual cash value of the property at the time and place of the accident with due consideration for depreciation from all sources however caused; or b. the cost of reasonably restoring that property to its condition immediately before loss. If there is a loss or damage to a pair or set, we will repair or replace any part to restore the pair or set to its value before the loss, or pay the difference between the value of the pair or set before and after loss. C. Valuable Papers and Records We will pay the amount you have actually and necessarily spent to repair or replace valuable papers and records with identical property. The amount we will pay is limited to the amount required to repair or replace within a reasonable time. The repair or replacement must be completed within 1 year from the date of the loss. If the repair or replacement is not completed within 1 year from the date of the loss, then we will not make any payment. D. Accounts Receivable We will pay for: 1. all sums due you which become uncollectible because of loss of or damage to records of accounts receivable; and 2. interest paid on any loan necessary to offset impaired collections until repayment of such uncollectible sums; and 3. necessary additional collection expenses. E. Money We will pay for the actual loss of value up to and including the face value of the money, money orders, checks, gift cards and stamps. F. Lost Master Key We will pay for the cost: 1. to replace keys; and 2. to adjust locks to accept new keys; or 3. for new locks, including the installation costs, if required. G. Lawns, Trees, Shrubs and Plants We will pay the amount you actually and necessarily expended to replace lost or damaged lawns, trees, shrubs and plants, including the cost for removal of such property. However, if not replaced, then we will pay the amount you actually and necessarily expended for removal of debris of such property. H. Retaining Walls 1. If the damaged or destroyed retaining wall is not repaired or replaced, then we will pay your reasonably incurred demolition and debris removal costs and the lesser of the following: a. the loss of actual cash value of the retaining wall at the time and place of the accident with due consideration for depreciation from all sources however caused; or b. the cost to repair the damaged retaining wall or replace the totally destroyed retaining wall with new property of like kind, quality and use at the same location within a reasonable time after the loss. DH (08-15) Page 9 of 15

10 2. If the damaged retaining wall is repaired or the totally destroyed retaining wall is replaced, then we will pay the amount you have actually and necessarily expended to repair or replace with new property of like kind, quality and use at the same location within a reasonable time after the loss. 3. You may first make a claim for the loss under paragraph H. Retaining Walls, item 1. above. Then you have one year from the date of that payment to make a claim for any additional amount payable under paragraph H. Retaining Walls, item 2. above. Nothing in this paragraph modifies or extends the Time Limitation for Action provision in this policy. I. Additional Losses Covered We will pay as follows: 1. Business Income We will pay for your actual loss of business income limited to the period of restoration. However, in no event will we pay more than 24 months of actual business income loss. 2. Extra Expense We will pay the amount of extra expenses you actually and necessarily incur limited to the period of restoration. 3. Debris Removal and Demolition, Extraction of Pollutants, Fire Department Service Charges, Refill and Recharge Fire Protection Devices, Arson and Crime Reward We will pay the amount you actually and necessarily incur in costs and expenses. Conditions Your Duties Following A Loss You or your representative must, at your expense: A. Give prompt notice of any loss to us or our agent. B. Protect the property from further damage. If repairs to the property are required, you must: 1. Make reasonable and necessary repairs to protect the property; and 2. Keep an accurate record of repair expenses. C. Prepare an inventory of damaged property, showing the quantity, description, actual cash value, and amount of loss and attach bills, receipts and related documents that justify the figures in the inventory. D. Cooperate with us in the investigation of your claim. E. As often as we reasonably require: 1. show us the damaged property; 2. provide us with records and documents we request and permit us to make copies; and 3. submit to examination(s) under oath, while not in the presence of any other insured, and sign the transcripts. F. Send to us, within 90 days after our request, your signed sworn proof of loss that sets forth the following to the best of your knowledge and belief: 1. The time and cause of loss. 2. Your interest and that of all others in the property involved and all liens on the property. 3. Other insurance that may cover the loss. DH (08-15) Page 10 of 15

11 4. Changes in title or occupancy of the property during the term of the policy. 5. Specifications of damaged buildings and detailed repair estimates. 6. The amounts you claim for loss under each coverage provided by the policy and all documents necessary to support the claimed amounts. G. In the event of a theft or vandalism loss, you must file a police report. H. You must do all things and produce all documents reasonably required to establish values and coverage for the loss. Company s Option It shall be our option to take all, or any part, of the property at the agreed or appraised value or to repair, rebuild or replace the property with other property of like kind, quality and use within a reasonable time, provided that we give notice of our intention to do so within 30 days after receipt of the required sworn statement in proof of loss. Mandatory Arbitration In case we fail to agree with you as to the meaning or effect of any provision of this policy or as to the amount payable in accordance with the express terms of this policy for any covered loss, the disagreement shall be resolved by binding arbitration presided over by a single arbitrator selected and agreed upon by you and us. The binding arbitration shall be in accordance with the statutory rules and procedures of the state in which the property is located. The exchange of information and discovery necessary for the arbitration shall be governed by the rules of discovery set forth in the statutes or codes of the state in which the property is located or as otherwise agreed to by you and us and the arbitrator. In no event shall the discovery and exchange of information be less than what is already provided for under the express terms of this policy. We will reimburse you for reasonable expenses actually incurred by you with respect to the arbitration, including reasonable attorney s fees, in a sum to be determined by the arbitrator, but only if the finding by the arbitrator under A or B below is based on information that is provided to us at least 45 days prior to the commencement of the arbitration and any of the following occur: A. A finding of coverage for claimed loss or damage for which coverage is denied by us; B. A finding that you are entitled to a loss payment in accordance with the express terms of this policy and exclusive of costs or attorney s fees in an amount that exceeds the amount of any offer made by us in writing to settle your claim at any time up to 30 days prior to the commencement of the arbitration. The provisions of this clause are mandatory and may be enforced either by you or by us. Legal Action Against Us You may not bring any legal action, including a claim, suit, demand for arbitration, or any other action on the policy, against us involving loss: A. Unless you have complied with all the terms of the policy; B. Until 90 days after you have filed signed sworn proof of loss with us; and C. Unless brought within 12 months after the inception of the loss. DH (08-15) Page 11 of 15

12 Examination of Your Books and Records We may examine and audit your books and records as they relate to the policy at any time during the policy period and up to 3 years after the cancellation or expiration of the policy. When Loss is Payable The amount of loss for which we may be liable will be payable 30 days after either the required sworn statement in proof of loss is received and agreed to in writing by us, or an arbitration award is received by us. Losses To Be Payable To And Adjusted With We will adjust losses with you. If a person or business entity is listed separately on the Declarations Pages as the Designated Representative For Loss Adjustment, then you authorize us to adjust losses with and make payments under the policy to the Designated Representative For Loss Adjustment. We will pay you unless some other person or entity is listed on the Declarations Pages or is legally entitled to receive payment, and then we will pay as interests appear. Mortgagee or Lender Interest and Obligations Loss will be payable to a mortgagee or lender named on the Declarations Pages subject to its mortgage interest in the Covered Property. As to that financial interest, this insurance will not be affected by any: A. Act or neglect of the mortgagor or owner of the Covered Property. B. Foreclosure or other proceeding or notice of sale relating to the Covered Property. C. Change in title or ownership of the Covered Property. In case the mortgagor or owner neglects to pay any premium due under this policy, the mortgagee or lender must pay that premium on demand in order to keep coverage in force. If you fail to render a sworn statement in proof of loss, a named mortgagee or lender, upon notice, may do so within 60 days thereafter. In that event, the mortgagee or lender must comply with all provisions of this policy. If we cancel this policy, any named mortgagee or lender will be notified in accordance with the cancellation provisions of this policy. To the extent of any payment for loss under this policy that we make to any mortgagee or lender and for which we claim we are not liable to the mortgagor or owner, we will be subrogated to all of the rights of the mortgagee or lender under the mortgage. In the alternative we may pay the whole mortgage debt including accrued interest in return for a full assignment and transfer of the mortgage and all other securities for that debt. Time of Loss The policy applies only to losses that occur during the policy period shown on the Declarations Pages. Other Insurance We will not pay a greater portion of any loss than the limit of insurance for the loss under this policy bears to the total of the limits of insurance for the loss under all policies which cover the loss or which would DH (08-15) Page 12 of 15

13 cover the loss but for the existence of this policy, except insurance written specifically to cover as excess over the limits of insurance that apply in this policy. Transfer of Your Rights of Recovery Against Other to Us A. You may waive your rights of recovery against any party in writing before an accident. B. Within 90 days after an accident, you may waive your rights of recovery against any party who at the time of the accident is: 1. shown on the Declarations Pages, or 2. owned or controlled by you or owns or controls you. C. Subject to the above, we may require an assignment of your rights of recovery against any party for loss to the extent that payment for that loss is made by us. Salvage and Recovery At our option, we may elect to pursue salvage or recovery. If we do, then you are entitled to complete reimbursement for covered loss before we are entitled to any proceeds from any recovery from third parties or salvage recovery. If a recovery is realized, you must share recovery expenses we incur to the extent of each party s proportionate interest in the recovery. No Benefit to Bailee We will not recognize any assignment or grant any coverage that benefits a person or organization holding, storing or moving property for a fee regardless of any other provision of the policy or any attached endorsement. In Case of Death A. If you die, we insure your legal representative but only with respect to the property covered under the policy at the time of your death. B. If you die, we insure the person having proper temporary custody of Covered Property but only with respect to the property covered under the policy until appointment and qualification of a legal representative. Definitions Accident means an undesigned, unexpected and rapidly occurring event that is neither expected nor intended from the standpoint of the insured. Business Income means: A. The net profit or loss before income taxes that would have been earned or incurred; and B. Continuing normal operating expenses incurred, including payroll. Extra Expense means necessary expenses you incur that would not have been incurred if there had been no direct physical loss or damage to Covered Property caused by an accident. DH (08-15) Page 13 of 15

14 Insured Location means the combined parcels, tracts, and lots that are included within the planned unit development boundary identified in a site plan and commonly referred to by the address listed under Location shown on the Declarations Pages. Organic Pathogens means any bacteria, virus, fungus, mold, mushroom, yeast, mildew or mycotoxin or other metabolic products or their spores, scent, vapor or gas or byproducts, or any reproductive body that they produce. Our means the company providing this insurance. Period of restoration means: A. For Business Income: the period of time that begins 72 hours after the time of the direct physical loss or damage to Covered Property caused by an accident and ends on the earlier of: (1) the date the Covered Property at the insured location could be repaired, rebuilt or replaced with reasonable speed and due diligence; or (2) the date when business operations are resumed at a new permanent location. B. For Extra Expense: the period of time that begins immediately after the time of direct physical loss or damage to Covered Property caused by an accident and ends on the earlier of: (1) the date the Covered Property at the insured location could be repaired, rebuilt or replaced with reasonable speed and due diligence; or (2) the date when business operations are resumed at a new permanent location. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned or reclaimed. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or similar rock formations. It does not include sinking or collapse of land into man-made underground cavities nor the cost of filling sinkholes. Structures means: A. buildings and foundations, not including dwellings; B. underground construction including sewers, drains, and piping that is intended to connect to, and for the purpose of servicing, buildings at an insured location; C. gates and fences; D. walks, roadways and other paved surfaces; E. signs, lighting, utilities, awnings and similar constructions; F. pools, man-made ponds, playgrounds, docks, and other similar constructions; and G. permanently installed machinery and equipment, including but not limited to permanently installed security equipment and electronic access equipment. Suspension means the slowdown or cessation of your business operation. Us means the company providing this insurance. Valuable papers and records means written, printed, or otherwise inscribed documents and records, tapes, discs, electronic or magnetic media, or films, including books, maps, drawings, abstracts, deeds, mortgagees and manuscripts. This does not include money, checks, money orders, gift cards, or stamps. Volcanic action means direct loss or damage resulting from the eruption of a volcano when the loss or damage is caused by: (1) Airborne volcanic blast or airborne shock waves; (2) Ash, dust, or particulate matter; or (3) Lava flow. DH (08-15) Page 14 of 15

15 We means the company providing this insurance. You and Your means the insured shown on the Declarations Pages. DH (08-15) Page 15 of 15