This endorsement changes the policy Page 1 of 7 -- PLEASE READ THIS CAREFULLY -- LIMITED COVERAGE FOR LOSS BY WET ROT, DRY ROT, BACTERIA, FUNGI, OR PROTISTS 1. The following exclusion is added under item 1. of Exclusions That Apply To Property Coverages: or Protists -- "We" do not pay for loss that results from or consists of: 1) wet rot; dry rot; a bacterium; a fungus, including but not limited to mildew and mold; or a protist, including but not limited to algae and slime mold; or 2) a chemical, matter, or a compound produced or released by wet rot, dry rot, a bacterium, a fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds; except as provided under Limited Wet Rot, Dry Property Coverage. This exclusion applies even if the wet rot, dry rot, bacterium, fungus, or protist results from or is aggravated by a loss that may be covered by this policy, including but not limited to loss caused by the accidental discharge of liquids or steam from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system; water heater; or domestic appliance. However, this exclusion does not apply to wet rot, dry rot, a bacterium, a fungus, or a protist that results from fire or lightning. 2. Under Exclusions That Apply To Property Coverages, Wear and Tear is deleted and replaced by the following: Wear and Tear -- "We" do not pay for loss that results from wear and tear, marring, deterioration, inherent vice, latent defect, mechanical breakdown, rust, corrosion, contamination, or smog. 3. The following provisions are added under Exclusions That Apply To Coverages L and M: a. This policy does not apply to: 1) actual or alleged "bodily injury" or "property damage" that results directly or indirectly from ingestion of, inhalation of, physical contact with, or exposure to: dry rot; a bacterium; a fungus, including but not limited to mildew and mold; or a protist, including but not limited to algae and slime mold; or fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds; except as provided under Limited and Protists Liability Coverage; 2) any loss, cost, or expense arising out of any request, demand, or order that any "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of: dry rot; a bacterium; a fungus, including but not limited to mildew and mold; or a protist, including but not limited to algae and slime mold; or
Page 2 of 7 fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds; or 3) any loss, cost, or expense arising out of any claim or suit by or on behalf of any governmental authority relating to testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, or in any way responding to or assessing the effects of: dry rot; a bacterium; a fungus, including but not limited to mildew and mold; or a protist, including but not limited to algae and slime mold; or fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds. b. However, exclusion 3.a.1) above does not apply to: 1) "bodily injury" that results from a fungus cultivated or harvested for human consumption or a food-borne or beverage-borne bacterium that causes illness commonly known as food poisoning (Food-borne or beverage-borne bacteria that cause illness commonly known as food poisoning include but are not limited to Staphylococcus aureus, Salmonella, Clostridium perfringens, Campylobacter, Listeria monocytogenes, Vibro parahaemolyticus, Bacillus cereus, and Escherichia coli.); or 2) "bodily injury" to a "farm employee" to the extent that coverage for "bodily injury" to "farm employees" is provided by this policy. 4. (Applies only when Coverage L has been extended to pay for damages for which an "insured" is liable by law because of "personal injury".) The following is added to the definition of "personal injury": "Personal injury" does not mean false arrest, false imprisonment, wrongful eviction, wrongful entry, wrongful detention, malicious prosecution, misrepresentation, libel, slander, defamation of character, or invasion of privacy that results directly or indirectly from ingestion of, inhalation of, physical contact with, or exposure to: 1) wet rot; dry rot; a bacterium; a fungus, including but not limited to mildew and mold; or a protist, including but not limited to algae and slime mold; or 2) a chemical, matter, or a compound produced or released by wet rot, dry rot, a bacterium, a fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds. 5. Limited and Protists Coverages This policy is extended to provide the following coverages. These coverages are subject to all of the "terms" of the policy, except as amended by this endorsement. a. Limited Wet Rot, Dry Rot, Bacteria, Fungi, and Protists Property Coverage -- The coverage set forth under item 5.a.1) below and the limitations set forth under items 5.a.4) and 5.a.5) below do not apply to wet rot, dry rot, a bacterium, a fungus, or a protist that results from fire or lightning.
Page 3 of 7 1) Subject to the Wet Rot, Dry Rot, Aggregate Property Limit, "we" pay for: a) direct physical loss to property covered under Coverages A, B, or C, if provided by this policy, or the Incidental Property Coverage for Tenant's Improvements, if provided by this policy, caused by or consisting of wet rot; dry rot; a bacterium; a fungus, including mildew and mold; or a protist when the presence of the wet rot, dry rot, bacterium, fungus, or protist is the direct result of a peril insured against that applies to the damaged property and all reasonable means were used to save and preserve the property at and after the time of loss; and b) an increased cost, an expense, loss of income, or loss of earnings, if covered by a form, a coverage part, or an endorsement attached to this policy, resulting from wet rot; dry rot; a bacterium; a fungus, including mildew and mold; or a protist when the presence of the wet rot, dry rot, bacterium, fungus, or protist is the direct result of a peril insured against that applies to property for which the coverage for increased cost, expenses, loss of income, or loss of earnings is provided and all reasonable means were used to save and preserve the property at and after the time of loss. This coverage does not increase the "limits" shown for the property, increased cost, expense, loss of income, or loss of earnings covered. 2) The coverage set forth under item 5.a.1) above includes: a) direct physical loss caused by or consisting of a chemical, matter, or a released by such wet rot, dry rot, bacterium, fungus, or protist; and b) the reasonable cost or expense to: (1) clean up, remove, contain, treat, detoxify, neutralize, respond to, monitor, or assess the effects of the wet rot, dry rot, bacterium, fungus, or protist or a chemical, matter, or a released by it; and (2) remove and replace those parts of covered property necessary to repair or replace the damage or to clean up, remove, contain, treat, detoxify, neutralize, respond to, monitor, or assess the effects of the wet rot, dry rot, bacterium, fungus, or protist or a chemical, matter, or a released by it. 3) Subject to the Wet Rot, Dry Rot, Aggregate Property Limit, "we" pay up to $2,500 for the reasonable cost or expense to test for: dry rot; a bacterium; a fungus, including mildew and mold; or a protist that is hidden from view; or by such wet rot, dry rot, bacterium, fungus, or protist;
Page 4 of 7 when property covered under Coverages A, B, or C, if provided by this policy, or the Incidental Property Coverage for Tenant's Improvements, if provided by this policy, suffers direct physical loss caused by a peril that applies to it and there is reason to believe that wet rot, dry rot, a bacterium, a fungus, a protist, or a chemical, matter, or a released by wet rot, dry rot, a bacterium, a fungus, or a protist is present. This coverage provides additional insurance. No deductible applies to this coverage. 4) With respect to Limited Wet Rot, Dry Property Coverage, the following is added to the first paragraph under Incidental Property Coverages: However, except for Emergency Removal and, if provided by this policy, Collapse, any coverage provided under these Incidental Property Coverages for loss caused by or consisting of: fungus, or a protist; 5) With respect to Limited Wet Rot, Dry Property Coverage, the "terms" of each coverage part or endorsement attached to this policy that covers direct physical loss, increased cost, expense, loss of income, or loss of earnings are amended to include the following. Any coverage provided under this coverage part or endorsement for loss caused by or consisting of: fungus, or a protist; is subject to the Wet Rot, Dry Rot, Aggregate Property Limit. 6) With respect to Limited Wet Rot, Dry Property Coverage, the following is added under How Much We Pay For Loss Or Claim, Property Coverages: and Protists Aggregate Property Limit -- The Wet Rot, Dry Rot, Aggregate Property Limit is the most "we" pay for the total of: is subject to the Wet Rot, Dry Rot, Aggregate Property Limit.
Page 5 of 7 a) all loss covered under Principal Property Coverages A, B, C, and D; loss covered under all Incidental Property Coverages except Emergency Removal and, if provided by this policy, Collapse; and all direct physical loss, increased costs, expenses, loss of income, and loss of earnings covered by coverage part or endorsement attached to this policy, including all cost or expense to: (1) clean up, remove, contain, treat, detoxify, neutralize, respond to, monitor, or assess the effects of wet rot, dry rot, a bacterium, a fungus, or a protist or a chemical, matter, or a released by it; and (2) remove and replace parts of covered property necessary to repair or replace damage or to clean up, remove, contain, treat, detoxify, neutralize, respond to, monitor, or assess the effects of the wet rot, dry rot, bacterium, fungus, or protist or a chemical, matter, or a released by it; and b) all cost or expense to test for wet rot, dry rot, a bacterium, a fungus, or a protist or a chemical, matter, or a compound produced or released by it; regardless of the number of occurrences, claims made, assessments made, or locations insured under this policy. This "limit" is the most that "we" pay for each consecutive annual period and for any remaining period of less than 12 months, beginning with the inception date of this policy as shown on the "declarations". If, however, the policy period is extended for an additional period of less than 12 months, this additional period will be considered part of the preceding period for the purpose of determining the "limit". The Wet Rot, Dry Rot, Bacteria, Property Limit is $2,500 unless a higher Wet Rot, Dry Rot, Bacteria, Property Limit is shown on the "declarations". 7) With respect to Limited Wet Rot, Dry Property Coverage, Restoration of Limits under How Much We Pay For Loss Or Claim does not apply. b. Limited Wet Rot, Dry Rot, Bacteria, Fungi, and Protists Liability Coverage 1) This coverage does not apply to: a) "bodily injury" that results from a fungus cultivated or harvested for human consumption or a food-borne or beverage-borne bacterium that causes illness commonly known as food poisoning (Food-borne or beverage-borne bacteria that cause illness commonly known as food poisoning include but are not limited to Staphylococcus aureus, Salmonella, Clostridium perfringens, Campylobacter, Listeria monocytogenes, Vibro parahaemolyticus, Bacillus cereus, and Escherichia coli.); or
Page 6 of 7 b) "bodily injury" to a "farm employee" to the extent that coverage for "bodily injury" to "farm employees" is provided by this policy. 2) Subject to the Coverage L Wet Rot, Dry Limit and the Wet Rot, Dry Rot, Aggregate Liability Limit, "we" pay for the "bodily injury" or "property damage" that results from ingestion of, inhalation of, physical contact with, or exposure to: fungus, or a protist. The Coverage L Wet Rot, Dry Rot, Limit is $25,000 unless a higher Coverage L and Protists Limit is shown on the "declarations". Subject to the Wet Rot, Dry Rot, Bacteria, Fungi, and Protists Aggregate Liability Limit, this "limit" is the most "we" pay per "occurrence" under Coverage L for Limited Wet Rot, Dry Rot, Bacteria, Fungi, and Protists Liability Coverage. 3) With respect to Limited Wet Rot, Dry Liability Coverage, the following is added to the first paragraph under Incidental Liability Coverages: Except for Claims and Defense Cost and First Aid Expense, any coverage provided under these Incidental Liability Coverages for "bodily injury", "property damage", damages, or legal fees arising from ingestion of, inhalation of, physical contact with, or exposure to: fungus, or a protist; is subject to the Coverage L Wet Rot, Dry Rot, Bacteria, Fungi, and Protists Limit and the Wet Rot, Dry Rot, Bacteria, Fungi and Protists Aggregate Liability Limit. 4) With respect to Limited Wet Rot, Dry Liability Coverage, under How Much We Pay For Loss Or Claim, Coverage L -- Personal Liability is deleted and replaced by the following: Coverage L -- Personal Liability -- Subject to the Wet Rot, Dry Rot, Aggregate Liability Limit, the Coverage L Wet Rot, Dry Rot, Limit is the most "we" pay for loss for each "occurrence" covered under Limited and Protists Liability Coverage. This applies regardless of the number of: a) persons insured under this policy; b) parties who sustain injury or damage; or c) claims made or suits brought.
Page 7 of 7 5) With respect to Limited Wet Rot, Dry Liability Coverage, under How Much We Pay For Loss Or Claim, Coverage M -- Medical Payments To Others is deleted and replaced by the following: Subject to the Wet Rot, Dry Rot, Aggregate Liability Limit, the "limit" shown on the "declarations" per person for Coverage M is the most "we" pay for all medical expenses payable for "bodily injury" to one person as the result of one accident covered under Limited Wet Rot, Dry Liability Coverage. Any per accident "limit" shown on the "declarations" for Coverage M does not apply with respect to Limited Wet Rot, Dry Rot, Bacteria, Fungi, and Protists Liability Coverage. The payment of a claim under Coverage M does not mean "we" admit "we" are liable under Coverage L. 6) With respect to Limited Wet Rot, Dry Liability Coverage, the following is added under How Much We Pay For Loss Or Claim: and Protists Aggregate Liability Limit -- Regardless of the number of: a) "occurrences"; b) "insureds"; c) claims made or suits brought; d) persons injured; or e) assessments made; "our" total "limit" for Limited Wet Rot, Dry Liability Coverage in any one policy year will not exceed the Wet Rot, Dry Aggregate Liability Limit. However, this "limit" does not apply to coverage provided under Claims and Defense Cost and First Aid Expense under the Incidental Liability Coverages. The Wet Rot, Dry Rot, Bacteria, Liability Limit is the most that "we" pay for each consecutive annual period and for any remaining period of less than 12 months, beginning with the inception date of this policy as shown on the "declarations". If, however, the policy period is extended for an additional period of less than 12 months, this additional period will be considered part of the preceding period for the purpose of determining the "limit". The Wet Rot, Dry Rot, Bacteria, Liability Limit is $25,000 unless a higher Wet Rot, Dry Rot, Bacteria, Liability Limit is shown on the "declarations". 7) With respect to this Limited Wet Rot, Dry Liability Coverage, Restoration of Limits under How Much We Pay For Loss Or Claim does not apply. 6. All other "terms" of the policy apply. Copyright, American Association of Insurance Services, 2002