This Insurance This Certificate The Assured · SLC-3 (USA) NMA 2868 (24/08/2000 . Form approved by Lloyd’s Underwriters’ Non-Marine Association Limited . 11405 North Community

Lloyd’s Certificate

This Insurance is effected with certain Underwriters at Lloyd's, London.

This Certificate is issued in accordance with the limited authorization granted to the Correspondent by certain Underwriters at Lloyd's, London whose syndicate numbers and the proportions underwritten by them can be ascertained from the office of the said Correspondent (such Underwriters being hereinafter called "Underwriters") and in consideration of the premium specified herein, Underwriters hereby bind themselves severally and not jointly, each for his own part and not one for another, their Executors and Administrators.

The Assured is requested to read this Certificate, and if it is not correct, return it immediately to the Correspondent for appropriate alteration.

All inquiries regarding this Certificate should be addressed to the following Correspondent:

SLC-3 (USA) NMA 2868 (24/08/2000 Form approved by Lloyd’s Underwriters’ Non-Marine Association Limited

11405 North Community House Rd, Suite 100

Hull & Company, LLC

Charlotte, NC 28277

CERTIFICATE PROVISIONS

1. Signature Required. This Certificate shall not be valid unless signed by the Correspondent on the attached Declaration Page.

2. Correspondent Not Insurer. The Correspondent is not an Insurer hereunder and neither is nor shall be liable for any loss or claim whatsoever. The Insurers hereunder are those Underwriters at Lloyd's, London whose syndicate numbers can be ascertained as hereinbefore set forth. As used in this Certificate "Underwriters" shall be deemed to include incorporated as well as unincorporated persons or entities that are Underwriters at Lloyd's, London.

3. Cancellation. If this Certificate provides for cancellation and this Certificate is cancelled after the inception date, earned premium must be paid for the time the insurance has been in force.

4. Service of Suit. It is agreed that in the event of the failure of Underwriters to pay any amount claimed to be due hereunder, Underwriters, at the request of the Assured, will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States. It is further agreed that service of process in such suit may be made upon the firm or person named in item 10 of the attached Declaration Page, and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon request of the Assured to give a written undertaking to the Assured that they will enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Assured or any beneficiary hereunder arising out of this contract of insurance, and hereby designate the above-mentioned as the person to whom the said officer is authorized to mail such process or a true copy thereof.

5. Assignment. This Certificate shall not be assigned either in whole or in part without the written consent of the Correspondent endorsed hereon.

6. Attached Conditions Incorporated. This Certificate is made and accepted subject to all the provisions, conditions and warranties set forth herein, attached or endorsed, all of which are to be considered as incorporated herein.

7. Short Rate Cancellation. If the attached provisions provide for cancellation, the table below will be used to calculate the short rate proportion of the premium when applicable under the terms of cancellation.

Short Rate Cancellation Table For Term of One Year. Days Insurance in Force

Per Cent of one year Premium

Days Insurance in Force






1 ........................ 5% 2 ........................ 6 3 - 4 ........................ 7 5 - 6 ........................ 8 7 - 8 ........................ 9 9 - 10 ........................ 10 11 - 12 ......................... 11 13 - 14 ......................... 12 15 - 16 ......................... 13 17 - 18 ......................... 14 19 - 20 ......................... 15 21 - 22 ......................... 16 23 - 25 ......................... 17 26 - 29 ......................... 18 30 - 32 ( 1 mos )............ 19 33 - 36 ......................... 20 37 - 40 ......................... 21 41 - 43 ......................... 22 44 - 47 ......................... 23 48 - 51 ......................... 24 52 - 54 ......................... 25 55 - 58 ......................... 26 59 - 62 ( 2 mos )............ 27 63 - 65 ......................... 28

66 - 69 .........................29% 70 - 73 .........................30 74 - 76 .........................31 77 - 80 .........................32 81 - 83 .........................33 84 - 87 .........................34 88 - 91 ( 3 mos ) ............35 92 - 94 .........................36 95 - 98 .........................37 99 - 102 .........................38 103 - 105 .........................39 106 - 109 .........................40 110 - 113 .........................41 114 - 116 .........................42 117 - 120 .........................43 121 - 124 ( 4 mos ) ............44 125 - 127 .........................45 128 - 131 .........................46 132 - 135 .........................47 136 - 138 .........................48 139 - 142 .........................49 143 - 146 .........................50 147 - 149 .........................51 150 - 153 ( 5 mos ) ............52

154 - 156 ......................... 53% 157 - 160 ......................... 54 161 - 164 ......................... 55 165 - 167 ......................... 56 168 - 171 ......................... 57 172 - 175 ......................... 58 176 - 178 ......................... 59 179 - 182 ( 6 mos ) ............ 60 183 - 187 ......................... 61 188 - 191 ......................... 62 192 - 196 ......................... 63 197 - 200 ......................... 64 201 - 205 ......................... 65 206 - 209 ......................... 66 210 - 214 ( 7 mos ) ............ 67 215 - 218 ......................... 68 219 - 223 ......................... 69 224 - 228 ......................... 70 229 - 232 ......................... 71 233 - 237 ......................... 72 238 - 241 ......................... 73 242 - 246 ( 8 mos ) ............ 74 247 - 250 ......................... 75 251 - 255 ......................... 76

256 - 260 ......................... 77% 261 - 264 ......................... 78 265 - 269 ......................... 79 270 - 273 ( 9 mos ) ............ 80 274 - 278 ......................... 81 279 - 282 ......................... 82 283 - 287 ......................... 83 288 - 291 ......................... 84 292 - 296 ......................... 85 297 - 301 ......................... 86 302 - 305 ( 10 mos ) ........... 87 306 - 310 ......................... 88 311 - 314 ......................... 89 315 - 319 ......................... 90 320 - 323 ......................... 91 324 - 328 ......................... 92 329 - 332 ......................... 93 333 - 337 ( 11 mos ) ........... 94 338 - 342 ......................... 95 343 - 346 ......................... 96 347 - 351 ......................... 97 352 - 355 ......................... 98 356 - 360 ......................... 99 361 - 365 ( 12 mos ) ........... 100

Rules applicable to insurance with terms less than or more than one year: A. If insurance has been in force for one year or less, apply the short rate table for annual insurance to the full annual premium determined as for insurance written for a term of one

year. B. If insurance has been in force for more than one year:

1. Determine full annual premium as for insurance written for a term of one year. 2. Deduct such premium from the full insurance premium, and on the remainder calculate the pro rata earned premium on the basis of the ratio of the length of time beyond

one year the insurance has been in force to the length of time beyond one year for which the policy was originally written. 3. Add premium produced in accordance with items (1) and (2) to obtain earned premium during full period insurance has been in force.

THIS DECLARATION PAGE IS ATTACHED TO AND FORMS PART OF THE CERTIFICATE PROVISIONS FORM SLC-3 U.S.A.

Previous No. Authority Ref No. Certificate No.

Name and Address of the Assured

Effective from both days at 12:01 a.m. standard timeto

Insurance is effective with certain UNDERWRITERS AT LLOYD'S, LONDON. Percentage 100%

Coverage Premium$

$$$$$

$

Special Conditions

30 day Cancellation Clause or 10 day for Non-Payment

Subject to Mandatory Forms & Attached Forms Schedule DEF-0000

Service of Suit

Dated

By

Total Premiium

1

2

3

4

5

6

$$$

Commercial PropertyGeneral Liability $

$

Attached Service of Suit Endorsement

Insured Producer Name and Address

% minimum Earned Premium

Arlington Commons HPR

Not Included

Hull & Company, LLC

11405 North Community House Rd

Policy Fee

Charlotte, NC, 28277

126.10

D160896NC0198

200.00135.00

6,683.30

252.20

Inspection Fee

Surplus Line Tax

11/13/2017

NEW

501 Folly Road

Municipal Tax

Charleston, SC, 29412

B1180D170896

11/13/2018

01/14/2018

25

5,970.00

[insert] | Page 1 of 1

ENDORSEMENT No. endorsementNumber

Notwithstanding anything to the contrary contained herein it is understood and agreed that this Policy is subject to the following exclusion:-

PRE EXISTING CONDITION EXCLUSION

Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes all loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any pre-existing condition of property at the inception date of this insurance.

BUSINESS DESCRIPTION*

DESCRIPTION OF PREMISES

Prem # Bldg # LOCATION, CONSTRUCTION AND OCCUPANCY

COVERAGES PROVIDED - Insurance at the Described Premises applies only for Coverages for which a Limit of Insurance is shown.

LIMIT OF COVERED CAUSE Prem # Bldg # COVERAGE INSURANCE OF LOSS COINSURANCE† RATES

OPTIONAL COVERAGES - Applicable only when entries are made in the Schedule below †If Extra Expense Coverage, Limits on Loss Payment

AGREED VALUE REPLACEMENT COST Prem # Bldg # EXPIRATION DATE COVERAGE AMOUNT BUILDING PERSONAL PROPERTY INCLUDING "STOCK"

INFLATION GUARD (Percentage) ††MONTHLY LIMIT OF ††MAXIMUM PERIOD ††EXTENDED PERIOD Prem # Bldg # BUILDING PERSONAL PROPERTY INDEMNITY (Fraction) OF INDEMNITY (X) OF INDEMNITY (Days)

MORTGAGE HOLDER(S) ††Applies to Business Income Only

Prem # Bldg # MORTGAGE HOLDER NAME AND MAILING ADDRESS

DEDUCTIBLE

FORMS AND ENDORSEMENTS (other than applicable Forms and Endorsements shown elsewhere in this policy)

Forms and Endorsements applying to this Coverage Part and made part of this policy at time of issue: Please refer to declarations page PREMIUM

Premium for this Coverage Part

COMMERCIAL PROPERTY COVERAGE PART DECLARATIONS

CERTIFICATE NO: Effective Date: 12:01 A.M., Standard Time

Supplemental Declaration is attached

*Information omitted if shown elsewhere in the policy **Inclusion of date optional THESE DECLARATIONS ARE PART OF THE POLICY DECLARATIONS CONTAINING THE NAME OF THE INSURED AND THE POLICY PERIOD.

CF 150 (11-85)

✘

1

D160896NC0198

Flat

11/13/2017

1

Building

1

Condo Association

11

Special

2107 Rondo Street , Charleston, SC 29414

1,100,000

2,500

Condos

1

Special

5,970

1 USD

Frame

0.52

Property Extension1

$2500

80%

, ,

any one occurrence except Windstorm and Hail which will be of Total Insured Values

AnnualUSD

USDWind Deductible : Included in AOP Deductible.Named Storm: 1.00% subject to a minimum of $2,500.00 per occurrenceEarthquake: 2% subject to a minimum of $2,500.00 per occurrence

LLOYD'S PRIVACY POLICY STATEMENT

UNDERWRITERS AT LLOYD'S, LONDON

The Certain Underwriters at Lloyd's, London want you to know how we protect the confidentiality of your non-public personal information. We want you to know how and why we use and disclose the information that we have about you. The following describes our policies and practices for securing the privacy of our current and former customers.

INFORMATION WE COLLECT

The non-public personal information that we collect about you includes, but is not limited to:

• Information contained in applications or other forms that you submit to us, such as name, address, and social security number

• Information about your transactions with our affiliates or other third-parties, such as balances and payment history

• Information we receive from a consumer-reporting agency, such as credit-worthiness or credit history

INFORMATION WE DISCLOSE

We disclose the information that we have when it is necessary to provide our products and services. We may also disclose information when the law requires or permits us to do so.

CONFIDENTIALITY AND SECURITY

Only our employees and others who need the information to service your account have access to your personal information. We have measures in place to secure our paper files and computer systems.

RIGHT TO ACCESS OR CORRECT YOUR PERSONAL INFORMATION

You have a right to request access to or correction of your personal information that is in our possession.

CONTACTING US If you have any questions about this privacy notice or would like to learn more about how we protect your privacy, please contact the agent or broker who handled this insurance. We can provide a more detailed statement of our privacy practices upon request. 06/03 LSW1135B

Certificate No. Effective Date: 12:01 A.M., Standard Time

Named Insured Authority Ref.No.

SCHEDULE OF FORMS AND ENDORSEMENTS

ADDITIONAL FORMS


NMA2918 (08/01) War & Terrorism

NMA1998 [04-86] Service of Suit

IL0249 (09/07) South Carolina Changes - Cancellation and

CPDEC (00/00) Common Policy Declarations

LSW1135B (06/03) Lloyd's Privacy Policy Statement

LMA5019 [01-00] Asbestos Endorsement

D160896NC0198

CP0325 (10/12) Named Storm Percentage Deductible

IL0021 (09/08) Nuclear Energy Liability Exclusion Endorsement

(Special Form - Deluxe)

MINPREM (00/00) Minimum Earned Premium Definition Endorsement

11/13/2017

PREEXTEXCL (00/00) Pre Existing Condition Exclusion

LMA5018 [09-05] Microorganism Exclusion Absolute

LMA5062 [06-06] Fraudulent Claims Cause

NMA2962 (02/03) Biological or Chemical Materials

NMA2340 [11-88] Land Water & Air Exclusion

CP0405 (10/12) Ordinance or Law Coverage

LMA3100 (09/10) Sanction Limitation and Exclusion Clause

NMA1331(Amended) (11/13) Cancellation Clause

amended Not Purchased Clause

NMA1191 [07-59] Radioactive Contamination

Declarations

COMMERCIAL PROPERTY

CP0017 (10/12) Condominium Association Coverage Form

LMA5020 (09/05) Service of Suit

COMMON POLICY

LSW1001 (01/00) Several Liability Notice

Conformity [01-00] Conformity Clause

IL0003 (09/08) Calculation of Premium

CF150 (11/85) Commercial Property Coverage Part

LMA9076 (09/13) South Carolina Surplus Lines Notice

SyndicatePage 12-16 Syndicate Page for Certificate

B1180D170896

LSW677 [12-97] Occurrence Definition

HULLPROPEXTDELUXE 02-17 Property Coverage Extension Endorsement

LMA5219 (01/15) U.S. Terrorism Risk Insurance Act of 2002 as

CP0299 (06/07) Cancellation Changes

LSW757 [02-94] Minimum Earned Premium

IL0017 (11/98) Common Policy Conditions

NMA2915 (01/01) Electronic Data Endorsement – B

LMA5021 (09/05) Applicable Law (U.S.A.)

Nonrenewal

CP1045 (08/99) Earthquake and Volcanic Eruption

Certificate No. Effective Date: 12:01 A.M., Standard Time

Named Insured Authority Ref.No.

SCHEDULE OF FORMS AND ENDORSEMENTS

ADDITIONAL FORMS


IL0935 (07/02) Exclusion of Certain Computer Related Losses

D160896NC0198 11/13/2017

IL0415 (04/98) Protective Safeguards

CP0090 (07/88) Commercial Property Conditions

Endorsement

CP0010 (10/12) Building & Personal Property Coverage Form

USAHurricaneMin (01/00) USA Hurricane Minimum Earned Premium

CP1030 (10/12) Causes of Loss - Special Form

$%,&/)-, #)+)/%/)-, %,' "1&*0.)-, !*%0.(

/? !A6";>BDA6A B92<< 36 566=65 C? @A?E;56 4?E6A 2>5 >? !A6";>BDA6A B92<< 36 <;23<6 C? @2H 2>H 4<2;= ?A@A?E;56 2>H 36>67;C 96A6D>56A C? C96 6GC6>C C92C C96 @A?E;B;?> ?7 BD49 4?E6A# @2H=6>C ?7 BD49 4<2;= ?A@A?E;B;?> ?7 BD49 36>67;C F?D<5 6G@?B6 C92C !A6";>BDA6A C? 2>H B2>4C;?># @A?9;3;C;?> ?A A6BCA;4C;?> D>56A1>;C65 /2C;?>B A6B?<DC;?>B ?A C96 CA256 ?A 64?>?=;4 B2>4C;?>B# <2FB ?A A68D<2C;?>B ?7 C96 +DA?@62> 1>;?>#1>;C65 ,;>85?= ?A 1>;C65 0C2C6B ?7 *=6A;42$

-.*(&%%&) 06@C6=36A '%&%

Notwithstanding anything to the contrary contained herein, It is hereby noted and agreed the following Proviso’s areapplicable hereto:Wherever the term “Company” appears herein the same shall be deemed to mean "Underwriters".Wherever the term “Policy” appears herein the same shall be deemed to mean "Certificate".

Wherever the term “Named Insured” or “Assured” appear, these shall be deemed to mean and read the same.

Wherever “US$”, “$” or “USD “appear herein the same shall be deemed to mean United States Dollars.

All other terms and conditions remain unaltered.

COMMERCIAL PROPERTY CP 02 99 06 07

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CP 02 99 06 07 © ISO Properties, Inc., 2007 Page 1 of 1

CANCELLATION CHANGES This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PART STANDARD PROPERTY POLICY

The following is added to the Cancellation Common Policy Condition: If any one of the following conditions exists at any building that is Covered Property in this policy, we may cancel this Coverage Part by mailing or deliver-ing to the first Named Insured written notice of cancel-lation at least five days before the effective date of cancellation. A. The building has been vacant or unoccupied 60 or

more consecutive days. This does not apply to: 1. Seasonal unoccupancy; 2. Buildings in the course of construction, renova-

tion or addition; or 3. Buildings to which the Vacancy Permit en-

dorsement applies. Buildings with 65% or more of the rental units or floor area vacant or unoccupied are considered unoccupied under this provision.

B. After damage by a covered cause of loss, perma-nent repairs to the building:

1. Have not started; and 2. Have not been contracted for,

within 30 days of initial payment of loss.

C. The building has: 1. An outstanding order to vacate; 2. An outstanding demolition order; 3. Been declared unsafe by governmental author-

ity. D. Fixed and salvageable items have been or are

being removed from the building and are not being replaced. This does not apply to such removal that is necessary or incidental to any renovation or re-modeling.

E. Failure to: 1. Furnish necessary heat, water, sewer service

or electricity for 30 consecutive days or more, except during a period of seasonal unoccu-pancy; or

2. Pay property taxes that are owing and have been outstanding for more than one year fol-lowing the date due, except that this provision will not apply where you are in a bona fide dis-pute with the taxing authority regarding pay-ment of such taxes.

MICROORGANISM EXCLUSION (MAP)(Absolute)

This policy does not insure any loss, damage, claim, cost, expense or other sum, including liability, directly orindirectly arising out of or relating to:

mold, mildew, fungus, spores or other microorganism of any type, nature, or description, including butnot limited to any substance whose presence poses an actual or potential threat to human health

This exclusion applies regardless whether there is (i) any physical loss or damage to insured property; (ii) anyinsured peril or cause, whether or not contributing concurrently or in any sequence; (iii) any loss or use,occupancy, or functionality; or (iv) any action required, including but not limited to repair, replacement, removal,cleanup, abatement, disposal, relocation, or steps taken to address medical or legal concerns; or (v) any failureto procure or maintain valid insurance for the above.

This exclusion replaces and supersedes any provision in the policy that provides insurance, in whole or in part,for these matters.

LMA 5018

IL 00 03 09 08


IL 00 03 09 08 © ISO Properties, Inc., 2007 Page 1 of 1

CALCULATION OF PREMIUM This endorsement modifies insurance provided under the following:

CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART COMMERCIAL AUTOMOBILE COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART COMMERCIAL PROPERTY COVERAGE PART CRIME AND FIDELITY COVERAGE PART EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART EQUIPMENT BREAKDOWN COVERAGE PART FARM COVERAGE PART LIQUOR LIABILITY COVERAGE PART MEDICAL PROFESSIONAL LIABILITY COVERAGE PART OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART POLLUTION LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART RAILROAD PROTECTIVE LIABILITY COVERAGE PART

The following is added: The premium shown in the Declarations was com-puted based on rates in effect at the time the policy was issued. On each renewal, continuation, or anni-versary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect.

BIOLOGICAL OR CHEMICAL MATERIALS EXCLUSION

It is agreed that this Insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with the actual or threatened malicious use of pathogenic or poisonous biological or chemical materials regardless of any other cause or event contributing concurrently or in any other sequence thereto. 06/02/03 NMA2962 Form Approved by Lloyd’s Market Association (Non-Marine)

RADIOACTIVE CONTAMINATION EXCLUSION CLAUSE - PHYSICAL DAMAGE - DIRECT (U.S.A.)

This Policy does not cover any loss or damage arising directly or indirectly from nuclear reaction nuclear radiation or radioactive contamination however such nuclear reaction nuclear radiation or radioactive contamination may have been caused * NEVERTHELESS if Fire is an insured peril and a Fire arises directly or indirectly from nuclear reaction nuclear radiation or radioactive contamination any loss or damage arising directly from that Fire shall (subject to the provisions of this Policy) be covered EXCLUDING however all loss or damage caused by nuclear reaction nuclear radiation or radioactive contamination arising directly or indirectly from that Fire.

* NOTE. - If Fire is not an insured peril under this Policy the words "NEVERTHELESS" to the end of the clause do not apply and should be disregarded.

7/5/59 NMA1191

U.S.A. & CANADA LAND, WATER AND AIR EXCLUSION

Notwithstanding any provision to the contrary within the Policy of which this Endorsement forms part (or within any other Endorsement which forms part of this Policy), this Policy does not insure land (including but not limited to land on which the insured property is located), water or air, howsoever and wherever occurring, or any interest or right therein. SEEPAGE AND/OR POLLUTION AND/OR CONTAMINATION EXCLUSION Notwithstanding any provision to the contrary within the Policy of which this Endorsement forms part (or within any other Endorsement which forms part of this Policy), this Policy does not insure: (a) any loss, damage, cost or expense, or (b) any increase in insured loss, damage, cost or expense, or (c) any loss, damage, cost, expense, fine or penalty, which is incurred, sustained or imposed by order, direction, instruction or

request of, or by any agreement with, any court, government agency or any public, civil or military authority, or threat thereof, (and whether or not as a result of public or private litigation),

which arises from any kind of seepage or any kind of pollution and/or contamination, or threat thereof, whether or not caused by or resulting from a peril insured, or from steps or measures taken in connection with the avoidance, prevention, abatement, mitigation, remediation, clean-up or removal of such seepage or pollution and/or contamination or threat thereof. The term "any kind of seepage or any kind of pollution and/or contamination" as used in this Endorsement includes (but is not limited to): (a) seepage of, or pollution and/or contamination by, anything, including but not limited to, any material designated as a

"hazardous substance" by the United States Environmental Protection Agency or as a "hazardous material" by the United States Department of Transportation, or defined as a "toxic substance" by the Canadian Environmental Protection Act for the purposes of Part II of that Act, or any substance designated or defined as toxic, dangerous, hazardous or deleterious to persons or the environment under any other Federal, State, Provincial, Municipal or other law, ordinance or regulation; and

(b) the presence, existence, or release of anything which endangers or threatens to endanger the health, safety or welfare of

persons or the environment. DEBRIS REMOVAL ENDORSEMENT THIS ENDORSEMENT CONTAINS PROVISIONS WHICH MAY LIMIT OR PREVENT RECOVERY UNDER THIS POLICY FOR LOSS WHERE COSTS OR EXPENSES FOR DEBRIS REMOVAL ARE INCURRED. Nothing contained in this Endorsement shall override any Seepage and/or Pollution and/or Contamination Exclusion or any Radioactive Contamination Exclusion or any other Exclusion applicable to this Policy. Any provision within this Policy (or within any other Endorsement which forms part of this Policy) which insures debris removal is cancelled and replaced by the following: 1. In the event of direct physical damage to or destruction of property, for which Underwriters hereon agree to pay, or which but

for the application of a deductible or underlying amount they would agree to pay (hereinafter referred to as "Damage or Destruction"), this Policy also insures, within the Sum Insured, subject to the limitations and method of calculation below, and to all the other terms and conditions of the Policy, costs or expenses; (a) which are reasonably and necessarily incurred by the Assured in the removal, from the premises of the Assured at which

the Damage or Destruction occurred, of debris which results from the Damage or Destruction; and (b) of which the Assured becomes aware and advises the amount thereof to Underwriters hereon within one year of the

commencement of such Damage or Destruction. 2. In calculating the amount, if any, payable under this Policy for loss where costs or expenses for removal of debris are incurred

by the Assured (subject to the limitations in paragraph 1 above): (a) the maximum amount of such costs or expenses that can be included in the method of calculation set out in (b) below

shall be the greater of US$25,000 (twenty-five thousand dollars) or 10% (ten percent) of the amount of the Damage or Destruction from which such costs or expenses result; and

(b) the amount of such costs or expenses as limited in (a) above shall be added to:

(i) the amount of the Damage or Destruction; and (ii) all other amounts of loss, which arise as a result of the same occurrence, and for which Underwriters hereon also

agree to pay, or which but for the application of a deductible or underlying amount they would agree to pay; and the resulting sum shall be the amount to which any deductible or underlying amount to which this Policy is subject and the limit (or applicable sub-limit) of this Policy, shall be applied.

11/24/88 NMA2340

CP 10 45 08 99 © Insurance Services Office, Inc., 1998

COMMERCIAL PROPERTYCP 10 45 08 99


EARTHQUAKE AND VOLCANIC ERUPTION

ENDORSEMENT

(SUB-LIMIT FORM)

This endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PARTSTANDARD PROPERTY POLICY

A. When this endorsement is attached to the Standard Property Policy, the terms Coverage Part andCoverage Form in this endorsement are replaced by the term Policy.B. This endorsement applies to the Covered Property and Coverages for which an Earthquake – VolcanicEruption Limit of Insurance is shown in the Earthquake – Volcanic Eruption Coverage Schedule or in theDeclarations.C. Additional Covered Causes Of Loss

1. The following are added to the Covered Causes of Loss:a. Earthquake.b. Volcanic Eruption, meaning the eruption, explosion or effusion of a volcano.All Earthquake shocks or Volcanic Eruptions that occur within any 168-hour period will constitute asingle Earthquake or Volcanic Eruption. The expiration of this policy will not reduce the 168-hourperiod.

2. If the Earthquake – Volcanic Eruption Coverage Schedule or the Declarations indicate that thisendorsement covers Earthquake-Sprinkler Leakage Only, then the Covered Causes of Loss inParagraph C.1. of this endorsement do not apply, and the following apply instead:

a. Sprinkler Leakage resulting from Earthquake.b. Sprinkler Leakage resulting from Volcanic Eruption. Volcanic Eruption means the eruption,explosion or effusion of a volcano.All Earthquake shocks or Volcanic Eruptions that occur within any 168-hour period will constitute asingle Earthquake or Volcanic Eruption. The expiration of this policy will not reduce the 168-hourperiod.

D. Exclusions, Limitations And Related Provisions1. The Exclusions and Limitation(s) sections of the Causes of Loss Form (and the Exclusions section ofthe Mortgageholders Errors and Omissions Coverage Form and the Standard Property Policy) apply tocoverage provided under this endorsement, except as provided in D.2. and D.3. below.2. To the extent that the Earth Movement Exclusion might conflict with coverage provided under thisendorsement, the Earth Movement Exclusion does not apply.3. The exclusion of collapse, in the Causes of Loss-Special Form and Mortgageholders Errors AndOmissions Coverage Form, does not apply to collapse caused by Earthquake or Volcanic Eruption.4. The Additional Coverage – Collapse, in the Causes of Loss – Broad Form, Causes of Loss – SpecialForm and Mortgageholders Errors And Omissions Coverage Form, does not apply to the coverageprovided under this endorsement. This endorsement includes coverage for collapse caused byEarthquake or Volcanic Eruption.5. We will not pay for loss or damage caused directly or indirectly by tidal wave or tsunami, even ifattributable to an Earthquake or Volcanic Eruption.


6. We will not pay for loss or damage caused by or resulting from any Earthquake or Volcanic Eruptionthat begins before the inception of this insurance.7. The Ordinance Or Law Exclusion in this Coverage Part continues to apply with respect to any lossunder this Coverage Part including any loss under this endorsement, unless Ordinance Or LawCoverage is added by endorsement.8. We will not pay for loss of or damage to exterior masonry veneer (except stucco) on wood framewalls caused by or resulting from Earthquake or Volcanic Eruption. The value of such veneer will not beincluded in the value of Covered Property or the amount of loss when applying the Property DamageDeductible applicable to this endorsement.

This limitation, D.8., does not apply if:a. The Earthquake – Volcanic Eruption Coverage Schedule or the Declarations indicate that the“Including Masonry Veneer” option applies; orb. Less than 10% of the total outside wall area is faced with masonry veneer (excluding stucco).

9. Under this Coverage Part, as set forth under Property Not Covered in the Coverage Form to whichthis endorsement is attached, land is not covered property, nor is the cost of excavations, grading,backfilling or filling. Therefore, coverage under this endorsement does not include the cost of restoringor remediating land.

E. No CoinsuranceThe Coinsurance Condition in this policy, if any, does not apply to the coverage provided under thisendorsement.Various Coverage Extensions, in the Coverage Form to which this endorsement is attached, requirecoinsurance. The coinsurance requirement for such Coverage Extensions is eliminated with respect tocoverage provided under this endorsement.

F. Limit Of Insurance1. General Information

The term Limit of Insurance means the Limit of Insurance applicable to Earthquake – VolcanicEruption for the Covered Property or Coverage under which loss or damage is sustained.The Earthquake – Volcanic Eruption Coverage Schedule or the Declarations provide information onthe Limit of Insurance applicable to Covered Property and Coverages for Earthquake – VolcanicEruption.

2. Annual Aggregate LimitThe Limit of Insurance for Earthquake – Volcanic Eruption is an annual aggregate limit and as suchis the most we will pay for the total of all loss or damage that is caused by Earthquake or VolcanicEruption in a 12-month period (starting with the beginning of the present annual policy period), evenif there is more than one Earthquake or Volcanic Eruption during that period of time. Thus, if the firstEarthquake or Volcanic Eruption does not exhaust the Limit of Insurance, then the balance of thatLimit is available for a subsequent Earthquake(s) or Volcanic Eruption(s).If a single Earthquake or Volcanic Eruption (as defined in Section C. of this endorsement) beginsduring one annual policy period and ends during the following annual policy period, any Limit ofInsurance applicable to the following annual policy period will not apply to such Earthquake orVolcanic Eruption.

3. Increased Annual Aggregate Limit OptionIf the Earthquake – Volcanic Eruption Coverage Schedule or the Declarations indicate that theIncreased Annual Aggregate Limit Option applies, then the following applies instead of ParagraphF.2. above:The Limit of Insurance for Earthquake – Volcanic Eruption is the most we will pay in a singleEarthquake or Volcanic Eruption (as defined in Section C. of this endorsement) for loss or damagecaused by the Earthquake or Volcanic Eruption. If there is more than one Earthquake or VolcanicEruption in a 12-month period (starting with the beginning of the present annual policy period), themost we will pay for the total of all loss or damage sustained during that period of time and causedby Earthquake or Volcanic Eruption is two times the Limit of Insurance.If a single Earthquake or Volcanic Eruption (as defined in Section C. of this endorsement) beginsduring one annual policy period and ends during the following annual policy period, any Limit of


Insurance applicable to the following annual policy period will not apply to such Earthquake orVolcanic Eruption.

4. Additional Coverages And Coverage ExtensionsAmounts payable under an Additional Coverage or Coverage Extension, as set forth in theapplicable Coverage Form, do not increase the Limit of Insurance for Earthquake – VolcanicEruption.

5. LimitationFor property or coverage that is subject to a Blanket Limit on Earthquake – Volcanic Eruption (asshown in the Earthquake – Volcanic Eruption Coverage Schedule or in the Declarations), we will notpay more than we would pay in the absence of such Blanket Limit. Therefore, the maximum amountpayable for any such item of property or coverage is the Limit of Insurance or stated value (asshown in a Statement of Values on file with us) specific to that item of property or coverage forCovered Causes of Loss other than Earthquake – Volcanic Eruption.

6. Ensuing LossIf a Cause of Loss (such as fire) is covered by means of an exception to the Earth MovementExclusion, in the Causes of Loss Form, we will also pay for the loss or damage caused by that otherCovered Cause of Loss. But the most we will pay, for the total of all loss or damage caused by theEarthquake, Volcanic Eruption and other Covered Cause of Loss, is the Limit of Insuranceapplicable to such other Covered Cause of Loss. We will not pay the sum of the two Limits.

EXAMPLES – ENSUING LOSSTwo examples follow, using these facts: The Commercial Property Coverage Part, in these examples,includes the Causes of Loss – Basic Form (which covers fire) and this Earthquake – Volcanic EruptionEndorsement. A building is damaged by Earthquake, and by Fire which is caused by the Earthquake. Thevalue of the damaged building is $1,000,000. The Limit of Insurance applicable to the building, for the BasicCauses of Loss, is $800,000. The Limit of Insurance for Earthquake – Volcanic Eruption is $400,000. TheEarthquake Deductible amount is $50,000.

Example #1The damage due to Earthquake is $500,000.The damage due to Fire is $500,000.Payment for Earthquake damage is $400,000 ($500,000 damage minus $50,000 Earthquake deductible =$450,000; Limit is $400,000)Payment for Fire damage is $400,000 ($500,000 damage capped at the difference between the Basic Limitand the Earthquake Limit)Total Loss Payment is $800,000.

Example #2The damage due to Earthquake is $800,000.The damage due to Fire is $100,000.Payment for Earthquake damage is $400,000 ($800,000 damage minus $50,000 Earthquake deductible =$750,000; Limit is $400,000)Payment for Fire damage is $100,000 (amount of damage)Total Loss Payment is $500,000.G. Property Damage Deductible

1. The provisions of Section G.2. of this endorsement are applicable to all Coverage Forms except:a. Business Income (And Extra Expense) Coverage Form;b. Business Income (Without Extra Expense) Coverage Form;c. Extra Expense Coverage Form.

2. The Deductible, if any, in this Coverage Part is replaced by the following with respect to Earthquakeand Volcanic Eruption:

a. All Policies(1) The Deductible provisions apply to each Earthquake or Volcanic Eruption.


(2) Separate Deductibles are calculated for, and apply to, each building, personal property ateach building and personal property in the open. Deductibles are separately calculated andapplied even if:

(a) Two or more buildings sustain loss or damage;(b) Personal property at two or more buildings sustains loss or damage; and/or(c) A building and the personal property in that building sustain loss or damage.

(3) We will not pay for loss or damage until the amount of loss or damage exceeds theapplicable Deductible. We will then pay the amount of loss or damage in excess of thatDeductible, up to the applicable Limit of Insurance.(4) When property is covered under the Coverage Extension for Newly Acquired or ConstructedProperty: In determining the amount, if any, that we will pay for loss or damage, we will deductan amount equal to a percentage of the value of the property at time of loss. The applicablepercentage for Newly Acquired or Constructed Property is the highest percentage shown in theEarthquake – Volcanic Eruption Coverage Schedule or in the Declarations for any describedpremises.(5) If there is loss or damage caused by Earthquake or Volcanic Eruption, and loss or damagecaused by a Cause of Loss (e.g., fire) that is covered by means of an exception to the EarthMovement Exclusion, then the only applicable Deductible provisions are those stated in thisendorsement.

b. Calculation Of The Deductible – Specific Insurance Other Than Builders Risk(1) Property Not Subject To Value Reporting Forms

In determining the amount, if any, that we will pay for loss or damage, we will deduct anamount equal to a percentage (as shown in the Earthquake – Volcanic Eruption CoverageSchedule or in the Declarations, concerning the Earthquake – Volcanic Eruption Deductible)of the value of the property that has sustained loss or damage. The value to be used is thatshown in the most recent Statement of Values on file with us.

(2) Property Subject To Value Reporting FormsIn determining the amount, if any, that we will pay for loss or damage, we will deduct anamount equal to a percentage (as shown in the Earthquake – Volcanic Eruption CoverageSchedule or in the Declarations, concerning the Earthquake – Volcanic Eruption Deductible)of the value of the property that has sustained loss or damage. The value to be used is thelatest value shown in the most recent Report of Values on file with us.

However:(a) If the most recent Report of Values shows less than the full value of the property on thereport dates, we will determine the deductible amount as a percentage of the full value as of thereport dates.(b) If the first Report of Values is not filed with us prior to loss or damage, we will determine thedeductible amount as a percentage of the value shown in the most recent Statement of Valueson file with us.

c. Calculation Of The Deductible – Blanket Insurance Other Than Builders Risk(1) Property Not Subject To Value Reporting Forms

In determining the amount, if any, that we will pay for loss or damage, we will deduct anamount equal to a percentage (as shown in the Earthquake – Volcanic Eruption CoverageSchedule or in the Declarations, concerning the Earthquake – Volcanic Eruption Deductible)of the value of the property that has sustained loss or damage. The value to be used is thatshown in the most recent Statement of Values on file with us.

(2) Property Subject To Value Reporting FormsIn determining the amount, if any, that we will pay for property that has sustained loss ordamage, we will deduct an amount equal to a percentage (as shown in the Earthquake –Volcanic Eruption Coverage Schedule or in the Declarations, concerning the Earthquake –Volcanic Eruption Deductible) of the value of that property as of the time of loss or damage.

d. Calculation Of The Deductible – Builders Risk Insurance(1) Builders Risk Other Than Reporting Form


In determining the amount, if any, that we will pay for property that has sustained loss ordamage, we will deduct an amount equal to a percentage (as shown in the Earthquake –Volcanic Eruption Coverage Schedule or in the Declarations, concerning the Earthquake –Volcanic Eruption Deductible) of the actual cash value of that property as of the time of lossor damage.

(2) Builders Risk Reporting FormIn determining the amount, if any, that we will pay for loss or damage, we will deduct anamount equal to a percentage (as shown in the Earthquake – Volcanic Eruption CoverageSchedule or in the Declarations, concerning the Earthquake – Volcanic Eruption Deductible)of the value of the property that has sustained loss or damage. The value to be used is theactual cash value shown in the most recent Report of Values on file with us.However:(a) If the most recent Report of Values shows less than the actual cash value of the propertyon the report date, we will determine the deductible amount as a percentage of the actualcash value as of the report date.(b) If the first Report of Values is not filed with us prior to loss or damage, we will determinethe deductible amount as a percentage of the actual cash value of the property as of the timeof loss or damage.

H. Example – Application Of Deductible In G.2.b.(1) And G.2.c.(1) – For Specific Or BlanketInsurance Other Than Builders Risk (Not Subject To Value Reporting Forms)

The values, as shown in the most recent Statement of Values on file with us, are:Building #1 $500,000Building #2 $500,000Business Personal Property at Building #1 $250,000Business Personal Property at Building #2 $250,000For this example, assume that the amounts of loss do not exceed the applicable Limits of Insurance (forspecific insurance). Also assume that the total amount of loss does not exceed the applicable blanketLimit of Insurance (for blanket insurance).Building #1 and Business Personal Property at Building #1 have sustained damage; the amounts ofloss are $95,000 (Building) and $5,000 (Business Personal Property).The Deductible is 10%.BuildingStep (1): $500,000 x 10% = $50,000Step (2): $95,000 - $50,000 = $45,000Business Personal PropertyStep (1): $250,000 x 10% = $25,000The loss, $5,000, does not exceed the deductible.The most we will pay is $45,000. The remainder of the building loss, $50,000, is not covered due toapplication of the Deductible. There is no loss payment for the business personal property.

I. Business Income And Extra Expense Period Of RestorationThis Section, I., is applicable only to the Coverage Forms specified below:1. Business Income (And Extra Expense) Coverage Form;2. Business Income (Without Extra Expense) Coverage Form;3. Extra Expense Coverage Form.The "period of restoration" definition stated in the Coverage Form, or in any endorsement amending thebeginning of the "period of restoration", applies to each Earthquake or Volcanic Eruption. A singleEarthquake or Volcanic Eruption is defined in Section C. of this endorsement.

SOUTH CAROLINA SURPLUS LINES NOTICE

This company has been approved by the director or his designee of the South Carolina Department ofInsurance to write business in this State as an eligible surplus lines insurer, but it is not affordedguaranty fund protection.

LMA9076

01 September 2013

POLICY NUMBER: COMMERCIAL PROPERTYCP 03 25 10 12


CP 03 25 10 12 © Insurance Services Office, Inc., 2011 Page 1 of 4

NAMED STORM PERCENTAGE DEDUCTIBLE


BUILDERS' RISK COVERAGE FORMBUILDING AND PERSONAL PROPERTY COVERAGE FORMCONDOMINIUM ASSOCIATION COVERAGE FORMCONDOMINIUM COMMERCIAL UNIT-OWNERS COVERAGE FORMSTANDARD PROPERTY POLICYTOBACCO SALES WAREHOUSES COVERAGE FORM

SCHEDULE

Premises Number Building Number Named Storm Deductible Percentage – Enter 1%, 2% Or 5%%

%

%

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A Named Storm is a storm system that has beenidentified as a tropical storm or hurricane and as-signed a name by the National Hurricane Center orthe Central Pacific Hurricane Center of the NationalWeather Service (hereafter referred to as NHC andCPHC). Under the terms of this endorsement, aNamed Storm begins at the time a Watch or Warningis issued by the NHC or CPHC for the area in whichthe affected premises are located, and ends 72 hoursafter the termination of the last Watch or Warningissued for that area by the NHC or CPHC.The Named Storm Deductible, as shown in theSchedule and set forth in this endorsement, applies tocovered loss or damage caused directly or indirectlyby each Named Storm. If there is covered loss ordamage from a windstorm that is not a Named Storm,the applicable deductible is the same deductible thatapplies to Fire, unless a different deductible is statedelsewhere in this policy for such loss or damage.

Nothing in this endorsement implies or affords cover-age for any loss or damage that is excluded under theterms of the Water Exclusion or any other exclusion inthis policy. If this policy is endorsed to cover Floodunder the Flood Coverage Endorsement (or if youhave a flood insurance policy), a separate Flood De-ductible applies to loss or damage attributable toFlood, in accordance with the terms of that endorse-ment or policy.As used in this endorsement, the terms "specific in-surance" and "blanket insurance" have the followingmeanings: Specific insurance covers each item ofinsurance (for example, each building or personalproperty in a building) under a separate Limit of In-surance. Blanket insurance covers two or more itemsof insurance (for example, a building and personalproperty in that building, or two buildings) under asingle Limit of Insurance. Items of insurance andcorresponding Limit(s) of Insurance are shown in theDeclarations.

1% subject to a minimum of $2500 per occurrence

D160896NC0198

11

Page 2 of 4 © Insurance Services Office, Inc., 2011 CP 03 25 10 12

NAMED STORM DEDUCTIBLE CALCULATIONSA. Calculation Of The Deductible – All Policies

1. A Deductible is calculated separately for, andapplies separately to:a. Each building that sustains loss or damage;b. The personal property at each building at

which there is loss or damage to personalproperty; and

c. Personal property in the open.If there is damage to both a building and per-sonal property in that building, separate de-ductibles apply to the building and to the per-sonal property.

2. We will not pay for loss or damage until theamount of loss or damage exceeds the appli-cable Deductible. We will then pay the amountof loss or damage in excess of that Deductible,up to the applicable Limit of Insurance, afterany reduction required by any of the following:Coinsurance Condition; Agreed Value OptionalCoverage; or any provision in a Value Report-ing Form relating to full reporting or failure tosubmit reports.

3. When property is covered under the CoverageExtension for Newly Acquired or ConstructedProperty: In determining the amount, if any,that we will pay for loss or damage, we will de-duct an amount equal to a percentage of thevalue(s) of the property at time of loss. The ap-plicable percentage for Newly Acquired orConstructed Property is the highest percentageshown in the Schedule for any described prem-ises.

B. Calculation Of The Deductible – SpecificInsurance Other Than Builders' Risk1. Property Not Subject To Value Reporting

FormsIn determining the amount, if any, that we willpay for loss or damage, we will deduct anamount equal to 1%, 2% or 5% (as shown inthe Schedule) of the Limit(s) of Insurance ap-plicable to the property that has sustained lossor damage.

2. Property Subject To Value Reporting FormsIn determining the amount, if any, that we willpay for loss or damage, we will deduct anamount equal to 1%, 2% or 5% (as shown inthe Schedule) of the value(s) of the propertythat has sustained loss or damage. The val-ue(s) to be used is the latest value(s) shown inthe most recent Report of Values on file withus.

However:a. If the most recent Report of Values shows

less than the full value(s) of the property onthe report dates, we will determine the de-ductible amount as a percentage of the fullvalue(s) as of the report dates.

b. If the first Report of Values is not filed withus prior to loss or damage, we will deter-mine the deductible amount as a percent-age of the applicable Limit(s) of Insurance.

C. Calculation Of The Deductible – BlanketInsurance Other Than Builders' Risk1. Property Not Subject To Value Reporting

FormsIn determining the amount, if any, that we willpay for loss or damage, we will deduct anamount equal to 1%, 2% or 5% (as shown inthe Schedule) of the value(s) of the propertythat has sustained loss or damage. The val-ue(s) to be used is that shown in the most re-cent Statement of Values on file with us.

2. Property Subject To Value Reporting FormsIn determining the amount, if any, that we willpay for property that has sustained loss ordamage, we will deduct an amount equal to1%, 2% or 5% (as shown in the Schedule) ofthe value(s) of that property as of the time ofloss or damage.

D. Calculation Of The Deductible – Builders' RiskInsurance1. Builders' Risk Other Than Reporting Form

In determining the amount, if any, that we willpay for property that has sustained loss ordamage, we will deduct an amount equal to1%, 2% or 5% (as shown in the Schedule) ofthe actual cash value(s) of that property as ofthe time of loss or damage.

2. Builders' Risk Reporting FormIn determining the amount, if any, that we willpay for loss or damage, we will deduct anamount equal to 1%, 2% or 5% (as shown inthe Schedule) of the value(s) of the propertythat has sustained loss or damage. The val-ue(s) to be used is the actual cash value(s)shown in the most recent Report of Values onfile with us.However:a. If the most recent Report of Values shows

less than the actual cash value(s) of theproperty on the report date, we will deter-mine the deductible amount as a percent-age of the actual cash value(s) as of the re-port date.


b. If the first Report of Values is not filed withus prior to loss or damage, we will deter-mine the deductible amount as a percent-age of the actual cash value(s) of the prop-erty as of the time of loss or damage.

Examples – Application Of DeductibleExample 1 – Specific Insurance (B.1.)The amount of loss to the damaged building is$60,000.The value of the damaged building at time of loss is$100,000. The Coinsurance percentage shown in theDeclarations is 80%; the minimum Limit of Insuranceneeded to meet the coinsurance requirement is$80,000 (80% of $100,000).The actual Limit of Insurance on the damaged build-ing is $70,000.The Deductible is 1%.Step (1): $70,000 $80,000 = .875Step (2): $60,000 x .875 = $52,500Step (3): $70,000 x 1% = $700Step (4): $52,500 – $700 = $51,800The most we will pay is $51,800. The remainder ofthe loss, $8,200, is not covered due to the Coinsur-ance penalty for inadequate insurance (Steps (1) and(2)) and the application of the Deductible (Steps (3)and (4)).Example 2 – Specific Insurance (B.1.)The amounts of loss to the damaged property are$60,000 (building) and $40,000 (personal property inbuilding).The value of the damaged building at time of loss is$100,000. The value of the personal property in thatbuilding is $80,000. The Coinsurance percentageshown in the Declarations is 80%; the minimum Limitsof Insurance needed to meet the coinsurance re-quirement are $80,000 (80% of $100,000) for thebuilding and $64,000 (80% of $80,000) for the per-sonal property.The actual Limits of Insurance on the damaged prop-erty are $80,000 on the building and $64,000 on thepersonal property (therefore, no Coinsurance penal-ty).The Deductible is 2%.BuildingStep (1): $80,000 x 2% = $1,600Step (2): $60,000 – $1,600 = $58,400

Personal PropertyStep (1): $64,000 x 2% = $1,280Step (2): $40,000 – $1,280 = $38,720The most we will pay is $97,120. The portion of thetotal loss not covered due to application of the De-ductible is $2,880.Example 3 – Blanket Insurance (C.1.)The sum of the values of Building 1 ($500,000), Build-ing 2 ($500,000) and Building 3 ($1,000,000), asshown in the most recent Statement of Values on filewith us, is $2,000,000.The Coinsurance percentage shown in the Declara-tions is 90%; the minimum Blanket Limit of Insuranceneeded to meet the coinsurance requirement is$1,800,000 (90% of $2,000,000).The actual Blanket Limit Of Insurance covering Build-ings 1, 2, and 3, shown in the Declarations, is$1,800,000 (therefore no Coinsurance penalty).Buildings 1 and 2 have sustained damage; theamounts of loss to these buildings are $40,000 (Build-ing 1) and $20,000 (Building 2).The Deductible is 2%.Building 1Step (1): $500,000 x 2% = $10,000Step (2): $40,000 – $10,000 = $30,000Building 2Step (1): $500,000 x 2% = $10,000Step (2): $20,000 – $10,000 = $10,000The most we will pay is $40,000. The portion of thetotal loss that is not covered due to application of theDeductible is $20,000.Example 4 – Blanket Insurance (C.1.)The sum of the values of Building 1 ($500,000), Build-ing 2 ($500,000), Personal Property at Building 1($250,000) and Personal Property at Building 2($250,000), as shown in the most recent Statement ofValues on file with us, is $1,500,000.The Coinsurance percentage shown in the Declara-tions is 90%; the minimum Blanket Limit of Insuranceneeded to meet the coinsurance requirement is$1,350,000 (90% of $1,500,000).The actual Blanket Limit Of Insurance covering Build-ings 1 and 2 and Personal Property at Buildings 1 and2, shown in the Declarations, is $1,350,000. There-fore there is no Coinsurance penalty.


Building 1 and Personal Property at Building 1 havesustained damage; the amounts of loss are $95,000(Building) and $5,000 (Personal Property).The Deductible is 5%.BuildingStep (1): $500,000 x 5% = $25,000Step (2): $95,000 – $25,000 = $70,000

Personal PropertyStep (1): $250,000 x 5% = $12,500The loss, $5,000, does not exceed the Deductible.The most we will pay is $70,000. The remainder ofthe building loss, $25,000, is not covered due to ap-plication of the Deductible. There is no loss paymentfor the personal property.

ELECTRONIC DATA ENDORSEMENT B

1. Electronic Data Exclusion

Notwithstanding any provision to the contrary within the Policy or any endorsement thereto, it isunderstood and agreed as follows:-

a) This Policy does not insure Loss, damage, destruction, distortion, erasure, corruption oralteration of ELECTRONIC DATA from any cause whatsoever (including but not Limitedto COMPUTER VIRUS) or Loss of use, reduction in functionality, cost, expense ofwhatsoever nature resulting therefrom, regardless of any other cause or eventcontributing concurrently or in any other sequence to the Loss.

ELECTRONIC DATA means facts, concepts and information converted to a form useablefor communications, interpretation or processing by electronic and electromechanicallydata processing or electronically controlled equipment and includes programs, softwareand other coded instructions for the processing and manipulation of data or the directionand manipulation of such equipment.

COMPUTER VIRUS means a set of corrupting, harmful or otherwise unauthorizedinstructions or code including a set of maliciously introduced unauthorizedinstructions or code, programmatic or otherwise, that propagate themselves througha computer system or network of whatsoever nature. COMPUTER VIRUS includesbut is not limited to 'Trojan Horses', 'worms' and 'time or Logic bombs'.

b) However, in the event that a peril Listed below results from any of the matters described inparagraph a) above, this Policy, subject to all its terms, conditions and exclusions, will coverphysical damage occurring during the Policy period to property insured by this Policy directlycaused by such Listed peril.

Listed Perils

Fire

Explosion

2. Electronic Data Processing Media Valuation

Notwithstanding any provision to the contrary within the Policy or any endorsement thereto, it isunderstood and agreed as follows:-

Should electronic data processing media insured by this Policy suffer physical Loss ordamage insured by this Policy, then the basis of valuation shall be the cost of the blank mediaplus the costs of copying the ELECTRONIC DATA from back-up or from originals of aprevious generation. These costs will not include research and engineering nor any costs ofrecreating, gathering or assembling such ELECTRONIC DATA. If the media is not repaired,replaced or restored the basis of valuation shall be the cost of the blank media. However thisPolicy does not insure any amount pertaining to the value of such ELECTRONIC DATA to theAssured or any other party, even if such ELECTRONIC DATA cannot be recreated, gatheredor assembled.

NMA 2915

25/01/2001

WAR AND TERRORISM EXCLUSION ENDORSEMENT

Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss;

1. war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; or

2. any act of terrorism.

For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear.

This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to 1 and/or 2 above.

If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Assured.

In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 08/10/01 NMA2918

MINIMUM EARNED PREMIUM CLAUSE

In the event of cancellation of this Policy by the Assured, a Minimum Premium of as of inception shall become earned; any conditions of the Policy to the contrary notwithstanding.

Failure of the Assured to make timely payment of Premium shall be considered as a request by the Assured for the Underwriters to cancel this Policy. In the event of such cancellation by the Underwriters for non-payment of Premium the Minimum Premium shall be due and payable; provided however, such non-payment cancellation shall be rescinded if the Assured remits the full Premium within 10 days of receiving notice of it.

In the event of any other cancellation by the Underwriters, the Earned Premium shall be computed pro-rata, not subject to the Minimum Premium.

02/94 LSW757

1,492.50

Policy Number:

Insured:

Page 1 of 1

ENDORSEMENT No.

Notwithstanding anything to the contrary contained herein it is understood and agreed that this Policy is subject to the following endorsement:-

MINIMUM EARNED PREMIUM DEFINITION ENDORSEMENT

Notwithstanding anything to the contrary contained herein, in the event that this Policy is cancelled by the Assured the Policy premium is subject to a minimum earned premium calculated in accordance with the USA Hurricane Minimum Earned Premium Endorsement, or a USA Flood Minimum Earned Premium Endorsement, or a minimum earned premium of ______ of the total premium, or the earned premium calculated in accordance with the Short Rate Cancellation Clause as set forth in the certificate provisions, whichever the greater.


25%

D160896NC0198

Property Coverage Extension Endorsement (Special Form) HULLpropext (Deluxe) (02/17) [insert] | Page 1 of 15

Property Coverage Extension Endorsement (Special Form) HULLpropext (Deluxe) (02/17)

*Entry is optional if shown in the Common Policy Declarations. If no entry is shown, the effective date of the endorsement is the same as the effective date of the policy.

ATTACHED TO AND FORMING PART OF POLICY NO:

EFFECTIVE DATE OF ENDORSEMENT

ISSUED TO


COMMERCIAL PROPERTY COVERAGE PART

The following is a summary of the Limits of Insurance for each Additional Coverage, Coverage Extension and Optional Coverage provided by this endorsement. Unless otherwise noted these Limits of Insurance apply per occurrence.

COVERAGE Limit of Insurance 1. Accounts Receivable USD 20,000 2. Employee Dishonesty USD 20,000 aggregate 3. Monies & Securities USD 20,000 aggregate 4. Outdoor Property (Fence, Radio, TV, Antennas, Sign Only) USD 50,000 5. Outdoor Property (Trees, Shrubs or Plants) USD 2,000 aggregate 6. Personal Property of Others USD 20,000 aggregate 7. Property in Transit USD 20,000 8. Property Off-Premises USD 30,000 9. Spoilage USD 40,000 10. Valuable Papers and Records (Other than Electronic Data) USD 20,000 11. Electronic Data Property Extension USD 20,000 12. Backup of Sewers and Drains USD 10,000 13. Building Glass – Tenant’s Policy USD 20,000

The coverage provided by this endorsement:

1. Applies to the described premises listed on the Commercial Property Coverage Part Declarations;

2. Is not subject to coinsurance; and 3. Is subject to the deductible listed on the Commercial Property Coverage Part Declarations.

DEDUCTIBLE: USD 1,000 each and every occurrence PREMIUM: USD 250 per policy

I. The following amendments apply to the Building and Personal Property Coverage Form:

A. The following Coverage Extensions, listed under item 5. Coverage Extension of A. Coverage, are amended as follows:

1. Paragraph b. Personal Effects and Property of Others is deleted and replaced by the following:

b. Personal Effects and Property of Others you may extend the insurance that applies to Your Business Personal Property to apply to:

(1) Personal effects owned by you, your officers, your partners or “members”, your “managers” or your “employees”. This extension does not apply to loss or damage by theft.

Arlington Commons HPRD160896NC0198 11/13/2017


(2) Personal property of others in your care, custody or control.

The most we will pay for loss or damage under this Extension is $5,000 at each described Premises listed in the SCHEDULE of the Property Coverage Extension Endorsement, but not more than $1,000 for any one item of property and not more than $10,000 in the aggregate for all losses during this policy period.

Our payment for loss of or damage to personal property of others will only be for the account of the owner of the property.

2. Paragraph c. Valuable Papers and Records (Other Than Electronic Data), item (4) is deleted and Replaced by the following:

(4) Under this Extension, the most we will pay to replace or restore the lost information is $10,000 at each described premises. Such amount is additional insurance. We will also pay for the cost of blank material for reproducing the records (whether or not duplicates exist), and (when there is a duplicate) for the cost of labor to transcribe or copy the records. The costs of blank material and labor are subject to the applicable Limit of Insurance on Your Business Personal Property and therefore coverage of such costs is not additional insurance.

3. Item (3) of Paragraph d. Property Off-Premises is deleted and replaced by the following:

(3) The most we will pay for loss or damage under this Extension is $15,000.

4. Paragraph e. Outdoor Property is deleted and replaced by the following:

e. Outdoor Property

You may extend the insurance provided by this Coverage Form to apply to your outdoor fences, radio and television antennas (including satellite dishes), signs, trees, shrubs and plants (other than “stock” of trees, shrubs or plants, or trees, shrubs or plants which are part of a vegetated roof), including debris removal expense, caused by or resulting from any of the following causes of loss if they are Covered Causes of Loss:

(1) For trees, shrubs, or plants: (a) Fire; (b) Lightning; (c) Explosion; (d) Riot or Civil Commotion; or (e) Aircraft;

The most we will pay for loss or damage for the property listed above under this Extension is $1,000 but not more than $250 for any one tree, shrub or plant; and

(2) For outdoor fences; radio and television antennas (including satellite dishes), and signs:

(a) Fire; (b) Lightning; (c) Explosion; (d) Riot or Civil Commotion; (e) Aircraft; (f) Windstorm; (g) Hail;


(h) Smoke; (i) Vehicles; (j) Vandalism; (k) Breakage of glass; (l) Falling objects;

(m) Weight of snow, ice or sleet; (n) Water damage; or

(o) Collapse resulting from use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of construction, remodeling or renovation.

The most we will pay for loss or damage for the property listed above under this Extension is $10,000.

These limits apply to any one occurrence, regardless of the types or number of items lost or damaged in that occurrence.

B. The following Coverage Extensions are added to paragraph 5. Coverage Extension of A. Coverage:

1. Accounts Receivable

a. If this policy covers Your Business Personal Property, this coverage extension extends that insurance to apply to accounts receivable. We will pay:

(1) All amounts due from your customers that you are unable to collect;

(2) Interest charges on any loan required to offset amounts you are unable to collect pending our payment of these amounts;

(3) Collection expenses in excess of your normal collection expenses that are made necessary by loss or damage; and

(4) Other reasonable expenses that you incur to reestablish your records of accounts receivable; that result from direct physical loss or damage by any Covered Causes of Loss to your records of accounts receivable.

b. Coverage does not apply to:

(1) Records of accounts receivable in storage away from the described premises; or

(2) Contraband, or property in the course of illegal transportation or trade.

c. If you give us written notice within 10 days of removal of your records of accounts receivable because of imminent danger of loss or damage, we will pay for loss or damage while they are: (1) At a safe place away from the described premises; (2) Being taken to and returned from that place.

d. The most we will pay under this Coverage Extension for loss or damage in any one occurrence is $10,000.

e. Section B. Exclusions of the CAUSES OF LOSS – SPECIAL FORM does not apply to this Accounts Receivable Extension, except for: (1) Paragraph B.1.c., Governmental Action (2) Paragraph B.1.d., Nuclear Hazard; (3) Paragraph B.1.f., War and Military Action; (4) Paragraph B.2.h. which is deleted and replaced by the

following:


h. Dishonest or criminal act by you, anyone else with an interest in the property, any of your or their partners, “members”, officers, “managers”, “employees” (including leased or temporary “employees”), directors, trustees, authorized representatives or anyone to whom you entrust the property for any purpose:

(1) Acting alone or in collusion with others; or (2) Whether or not occurring during the hours of employment.

This exclusion does not apply to acts of destruction by your employees” (including leased or temporary “employees”); but theft by “employees” (including leased or temporary “employees”) or authorized representatives is not covered;

(5) Paragraph B.2.i; (6) Paragraph B.3; and (7) The following additional exclusions are added and apply to

this Accounts Receivable Extension:

We will not pay for any:

(a) Loss or damage caused by or resulting from alteration, falsification, concealment or destruction of records of accounts receivable done to conceal the wrongful giving, taking or withholding of “money”, securities” or other property. This exclusion applies only to the extent of the wrongful giving, taking or withholding.

(b) Loss or damage caused by or resulting from bookkeeping, accounting or billing errors or omissions.

(c) Loss or damage that requires any audit of records or any inventory computation to prove its factual existence.

(d) Loss or damage caused by or resulting from electrical or magnetic injury, disturbance or erasure of electronic recordings that is caused by or results from:

i. Programming errors or faulty machine instructions; ii. Faulty installation or maintenance of data processing equipment or component parts; iii. An occurrence that took place more than 100 feet from the described premises; or iv. Interruption of electrical power supply, power surge, blackout or

brownout if the cause of such occurrence took place more than 100 feet from the described premises.

But we will pay for direct loss or damage caused by lightning.

(e) Loss or damage caused by or resulting from voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense.

(f) Loss or damage caused by or resulting from unauthorized instructions to transfer property to any person or to any place.

(g) Delay, loss of use, loss of market or any other consequential loss.


2. Spoilage

a. If this policy covers Your Business Personal Property, this coverage extension extends that insurance to apply to “perishable stock” at the described premises owned by you or by others that is in your care, custody and control but only for the following Covered Causes of loss:

(1) Breakdown or Contamination, meaning: (a) Change in temperature or humidity resulting from mechanical breakdown or failure of refrigerating, cooling or humidity control apparatus or equipment, only while such equipment or apparatus is at the described premises; and (b) Contamination by the refrigerant.

(2) Power Outage, meaning change in temperature or humidity resulting from complete or partial interruption of electrical power, either on or off the described premises, due to conditions beyond your control.

The above Causes of Loss listed under (1) and (2) above apply only to this Spoilage Coverage Extension.

b. Section B. Exclusions of the CAUSES OF LOSS - SPECIAL FORM does not apply to this Spoilage Coverage Extension, except for: (1) Paragraph B.1.b. Earth Movement; (2) Paragraph B.1.c. Governmental Action; (3) Paragraph B.1.d. Nuclear Hazard; (4) Paragraph B.1.f. War and Military Action; and (5) Paragraph B.1.g. Water

c. The following additional exclusions are added and apply to this Spoilage Coverage Extension:

We will not pay for loss or damage caused by or resulting from:

(1) The disconnection of any refrigerating, cooling or humidity control system from the source of power.

(2) The deactivation of electrical power caused by the manipulation of any switch or other device used to control the flow of electrical power or current.

(3) The inability of an Electrical Utility Company or other power source to provide sufficient power due to: (a) Lack of fuel; or (b) Governmental order.

(4) The inability of a power source at the described premises to provide sufficient power due to lack of generating capacity to meet demand.

(5) Breaking of any glass that is a permanent part of any refrigerating cooling or humidity control unit.

(6) Property located: (1) On buildings; (2) In the open; or (3) In vehicles.

d. The most we will pay under this Coverage Extension for loss or damage in any one occurrence at the described premises is $10,000.

e. Refrigeration Maintenance Agreements

You must maintain a refrigeration maintenance or service agreement. If you terminate this agreement and do not notify us, the insurance provided by this Coverage Extension will be automatically suspended at the involved location.


E. The following coverages are added to paragraph G. Optional Coverages:

1. Employee Dishonesty

(a) We will pay for direct loss of or damage to Business Personal Property and “money” and “securities resulting from dishonest acts committed by any of your “employees” acting alone or in collusion with other persons (except you or your partner) with the manifest intent to:

(1) Cause you to sustain loss or damage: and also (2) Obtain financial benefit (other than salaries, commissions, fees

bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in the normal course of employment) for: i. Any “employee”, or ii. Any other person or organization

(b) We will not pay for loss or damage:

(1) Resulting from any dishonest or criminal act that you, any of your partners, or any of your “members” or trustees commit whether acting alone or in collusion with other persons.

(2) Resulting from any dishonest act committed by any of your “employees” except as provided in Paragraph (a). “managers”, authorized representatives, officers or directors: (a) Whether acting alone or in collusion with other persons; or (b) While performing services for you or otherwise

(3) The only proof of which as to its existence or amount is:

(a) An inventory computation; or (b) A profit and loss computation.

However, where you establish wholly apart from such computations that you have sustained a loss, then you may offer your inventory records and actual physical count of inventory in support of loss claimed.

(4) Caused by an “employee” if the “employee” had also committed theft or any other dishonest act prior to the effective date of this policy and you or any of your partners, “members”, “managers”, officers, directors or trustees, not in collusion with the “employee”, learned of that theft or dishonest act prior to the policy period shown in the Declarations.

(5) Resulting from an “employee” of yours or predecessor in interest of yours, for whom similar prior insurance has been canceled and not reinstated since the last such cancellation.

(6) Resulting from trading, whether in your name or in a genuine or fictitious account.

(7) Resulting from fraudulent or dishonest signing, issuing, canceling or failing to cancel, a warehouse receipt or any papers connected with it.

(c) All loss or damage: (1) Caused by one or more persons; or (2) Involving a single act or series of related acts;

is considered one occurrence.


(d) The most we will pay, under this Employee Dishonesty Optional Coverage, for loss or damage regardless of the number of claims or occurrences is $10,000 in the aggregate during this policy period.

(e) We will pay only for loss or damage you sustain through acts committed or events occurring during the policy period shown in the Declarations regardless of the number of years this policy remains in force or the number of premiums paid, no Limit of Insurance cumulates from year to year or period to period.

(f) This Employee Dishonesty Optional Coverage does not apply to any “employee” immediately upon discovery by:

(1) You; or (2) Any of your partners, “members”, “managers”, officers or directors

not in collusion with the “employee”; of any dishonest act committed by that “employee” before or after being hired by you.

(g) We will pay only for covered loss or damage sustained during the policy period shown in the Declarations and discovered no later than one year from the end of the policy period shown in the Declarations.

(h) If you (or any predecessor in interest) sustained loss or damage during the period of any prior insurance that you could have recovered under that insurance except that the time within which to discover loss or damage had expired, we will pay for it under this Optional Coverage, provided:

(1) This Employee Dishonesty Optional Coverage became effective at the time of cancellation or termination of the prior insurance; and

(2) The loss or damage would have been covered by this Employee Dishonesty Optional Coverage had it been in effect when the acts or events causing the loss or damage were committed or occurred.

(i) The insurance under Paragraph (h) above is part of, not in addition to, the Limit of Insurance applying to this Employee Dishonesty Optional Coverage and is limited to the lesser of the amount recoverable under:

(1) This Employee Dishonesty Optional Coverage as of its effective date; or

(2) The prior insurance had it remained in effect.

2. Money and Securities

(a) We will pay for loss of “money” and “securities” used in your business while at a bank or savings institution, at the described premises or in transit between any of these places, resulting directly from:

(1) “Theft”; (2) Disappearance; or (3) Destruction.

(b) In addition to the Limitations and Exclusions applicable to property coverage, we will not pay for loss:

(1) Resulting from accounting or arithmetical errors or omissions;

(2) Due to the giving or surrendering of property in any exchange or purchase; or


(3) Of property contained in any money-operated device unless the amount of “money” deposited in it is recorded by a continuous recording instrument in the device.

(4) Caused by or resulting from voluntary parting with any property by you or anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device or false pretense; or

(5) Caused by or resulting from unauthorized instructions to transfer property to any person or to any place.

(c) All loss:

(1) Caused by one or more persons; or (2) Involving a single act or series of related acts;

is considered one occurrence.

(d) The most we will pay under this Money and Securities Optional Coverage for loss or damage regardless of the number of claims or occurrences is $10,000 in the aggregate during the policy period.

(e) You must keep records of all “money” and “securities” so we can verify the amount of any loss or damage.


II. Property in Transit

Paragraph c. of 1. Property in Transit of Section F. Additional Coverage Extensions of the CAUSES OF LOSS – SPECIAL FORM are deleted and replaced with the following:

c. The most we will pay for loss or damage under this Extension is $10,000

III. Commercial Property Conditions:

1. The following Conditions are added:

a. JOINT INSURED (1) If more than one insured is named in the Declarations, the first named

insured will act for itself and for every other insured for all purposes of this insurance. If the first named insured ceases to be covered, then the next named insured will become the first named insured.

(2) If any insured or partner or officer of that insured has knowledge of any information relevant to this insurance, that knowledge is considered knowledge of every insured.

(3) An “employee” of any insured is considered to be an “employee” of every insured.

(4) If this insurance or any of its coverages is canceled or terminated as to any insured, loss sustained by that insured is covered only if discovered no later than one year from the date of that cancellation or termination.

(5) We will not pay more for loss sustained by more than one insured than the amount we would pay if all the loss had been sustained by one insured.

b. OWNERSHIP OF PROPERTY; INTEREST COVERED

The property covered under this insurance is limited to property: (1) That you own or hold; or

(2) For which you are legally liable.

2. The following Conditions are amended as follows:

a. Condition C. INSURANCE UNDER TWO OR MORE COVERAGES is deleted and replaced by the following:

C. INSURANCE UNDER TWO OR MORE COVERAGES

If two or more coverages of this insurance apply to the same loss, we will pay the lesser of:

(1) The actual amount of the loss; or (2) The sum of the limits of insurance applicable to those coverages.

b. Condition D. LEGAL ACTION AGAINST US is deleted and replaced by the following:

D. LEGAL ACTION AGAINST US

You may not bring any legal action against us involving loss: (1) Unless you have complied with all the terms of this insurance; (2) Until 90 days after you have filed proof of loss with us; and (3) Unless brought within 2 years from the date you discover the loss.


c. Condition G. OTHER INSURANCE is deleted and replaced by the following:

G. OTHER INSURANCE

This insurance does not apply to loss recoverable or recovered under other insurance or indemnity. However, if the limit of the other insurance or indemnity is insufficient to cover the entire amount of the loss, this insurance will apply to that part of the loss, other than that falling within any deductible amount, not recoverable or recovered under the insurance or indemnity. However, this insurance will not apply to the amount of loss that is more than the applicable Limit of Insurance shown in this endorsement.

d. Condition I. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US is deleted and replaced by the following:

I. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US

1. If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But;

2. You may waive your rights against another party in writing:

a. Prior to a loss to your Covered Property or Covered Income.

b. After a loss to your Covered Property or Covered Income only if, at time of loss, that party is one of the following:

(a) Someone insured by this insurance: (b) A business firm:

(1) Owned or controlled by you; or (2) That owns or controls you; or (3) Your tenant.

This will not restrict your insurance. However, Item 2. above does not apply to the Employee Dishonesty and Money and Securities Optional coverages.

IV. The following is added to 4. Loss Payment under E. Loss Conditions of the Building and Personal Property Coverage Form and applies only to the Employee Dishonesty and Money and Securities Optional Coverage Provisions.

1. Subject to the applicable Optional Coverage we will pay for:

a. Loss of “money” but only up to and including its face value. We may, at our option, pay for loss of “money” issued by any country other than the United States of America;

(1) At face value in the “money” issued by the country; or (2) In the United States of America dollar equivalent determined by the rate of

exchange on the day the loss was discovered.

b. Loss of “securities” but only up to and including their value at the close of business on the day the loss was discovered. We may, at our option:

(1) Pay the value of such “securities” or replace them in kind, in which event you must assign to us all your rights, title and interest in and to those “securities”.


(2) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates of those “securities”. However, we will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the lesser of the: (a) Value of the “securities” at the close of business on the day the loss

was discovered; or (b) Limit of Insurance

2. We may at our option pay for loss of, or loss from damage to, property other than “money”: a. In the “money” of the country in which the loss occurred; or b. In the United States of America dollar equivalent of the “money” of the

country in which the loss occurred determined by the rate of exchange on the day the loss was discovered.

3. Any property that we pay for or replace becomes our property.

V. The following is added to 4. Loss Payment under E. Loss Conditions of the Building and Personal Property Coverage Form and applies only to the Accounts Receivable Coverage Extension:

1. If you cannot accurately establish the amount of accounts receivable outstanding as of the time of loss or damage: a. We will determine the total of the average monthly amounts of accounts receivable

for the 12 months immediately preceding the month in which the loss or damage occurs; and

b. We will adjust that total for any normal fluctuations in the amount of accounts receivable for the month in which the loss or damage occurred or for any demonstrated variance from the average for that month.

2. The following will be deducted from the total amount of accounts receivable, however that amount is established:

a. The amount of the accounts for which there is no loss or damage; b. The amount of the accounts that you are able to re-establish or collect; c. An amount to allow for probable bad debts that you are normally unable to collect;

and d. All unearned interest and service charges.

3. You will pay us the amount of all recoveries you receive for loss or damage paid by us. But any recoveries in excess of the amount we have paid belong to you.

VI. Electronic Data Property (EDP) Extension

A) The following are included as additional Covered Property: (1) Computer hardware, including microprocessors; (2) Computer application software; (3) Computer operating systems and related software; (4) Computer networks; (5) Microprocessors (computer chips) not part of any computer system; (6) Any other computerized or electronic equipment or components; or (7) “Electronic data” which is owned by you or licensed or leased to you, originating

and residing in computers located in the Coverage Territory.

We will pay for the cost to replace or restore “electronic data” that has suffered loss or damage by a Covered Cause of Loss or as described in Section B of this extension, subject to the valuation provisions below.


“Electronic Data” means information, facts or computer programs stored as or on, created or used on, or transmitted to or from computer software (including systems and applications software), on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software which are used with electronically controlled equipment. The term computer programs, referred to in the foregoing description of “electronic data,” means a set of related electronic instructions which direct the operations and functions of a computer or device connected to it, which enable the computer or device to receive, process, store, retrieve or send data.

As used in this extension, loss or damage to “electronic data” means destruction or corruption of “electronic data.”

Loss or damage to “electronic data” will be valued at the cost of restoration or replacement of the “electronic data,” including the cost of data entry, re-programming and computer consultation services. But we will not pay the cost to duplicate research that led to the development of your “electronic data” or any proprietary or confidential information or intellectual property in any form. To the extent that “electronic data” is not replaced or restored, the loss will be valued at the cost of replacement of the media on which the “electronic data” was stored, with blank media of substantially identical type.

If you recover, from a licenser or lessor, for loss or damage to “electronic data,” our loss payment to you will be reduced to the extent of such recovery.

B) The following are included as additional Covered Causes of Loss:

(1) Mechanical Breakdown; and (2) Power Surge

C) The following items are Exclusion and not Covered Causes of Loss:

We will not for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

(1) Virus – A virus, harmful code or similar instruction introduced into or enacted on a computer system (including “electronic data”) or a network to which it is connected; and

(2) Computer Manipulation – Manipulation of a computer system (including “electronic data”) by any employee, including a temporary or leased employee, or by any entity retained by you or for you to inspect, design, install, modify, maintain, repair or replace that system.

D) The following is added to the Business Income (and Extra Expense) Coverage Form, if it applies:

ADDITIONAL LIMITATION – Interruption of Computer Operations Coverage for Business Income does not apply when a “suspension” of “operations” is caused by destruction or corruption of “electronic data,” or any loss or damage to “electronic data” or any of the Covered Property in section A of this endorsement.

Coverage of Extra Expense does not apply when action is taken to avoid or minimize a “suspension” of “operations” caused by destruction or corruption of “electronic data,” or any loss or damage to “electronic data” or any of the Covered Property in section A of this endorsement.

E) The most we will pay for loss or damage to “electronic data” under this Extension is $10,000 for any one occurrence during this policy period.


VII. Backup of Sewers and Drains Extension

This extension modifies insurance provided under the following: Causes of Loss – Special Form

Causes of Loss – Special Form is amended to delete Paragraph B. EXCLUSIONS, g. Water, (3) Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment.

We will pay for direct physical loss or damage to Covered Property, caused by or resulting from discharge of water or waterborne material from a sewer, drain or sump located on the described premises, provided such discharge is not induced by flood or flood related conditions.

The aforementioned references to flood include surface water, waves (including tidal wave and tsunami), tides, tidal water, and overflow or any body of water, including storm surge.

For the purpose of this extension, the term drain includes a roof drain and related fixtures.

There is no coverage under this extension if:

1. The discharge results from your failure to perform routine maintenance or repair necessary to keep a sewer or drain or a sump, sump pump or related equipment free from obstruction and in proper working condition. This limitation does not apply to sudden mechanical breakdown of a sump pump or its related equipment, provided the breakdown is not the result of your negligence; or

2. Sump pump failure is caused by or results from failure of power.

To the extent that the Water Exclusion might conflict with the coverage provided under this extension, the Water Exclusion does not apply to such coverage.

We will not pay the cost of repairing or replacing a sewer, drain, sump, sump pump or any related parts or equipment.

The most we will pay under this extension, for the total of all covered loss and expense is $5,000 for any one occurrence during this policy period.


VIII. Building Glass – Tenant’s Policy Extension

A. Under this extension, building glass means the building glass means any glass used in the building construction, including windows, doors, structural glazing, canopies or roof, masonry glass, glass blocks or hardened laminated glass

B. We will pay for direct physical loss of or damage to building glass in or on the building(s) at the described premises caused by or resulting from breakage of glass, or chemicals accidentally or maliciously applied to glass, provided that:

1. You are a tenant of the building; and 2. You have a contractual responsibility to insure the building glass, or a contractual

responsibility to pay for the loss or damage to that property.

C. The value of property covered under this extension will be determined in accordance with the Valuation Condition applicable under this Coverage Form or Policy; or at the amount for which you are liable under contract, whichever is less. If required by law, glass is covered at the cost of replacement with safety glazing material. However, the most we will pay for the coverage provided under this extension is $10,000 for any one occurrence during this policy period.

IX. The following definitions are added and applicable to the coverage provided by this endorsement:

1. “Employee(s)” means: a. Any natural person:

(1) While in your service (and for 30 days after termination of service); (2) Who you compensate directly by salary, wages or commissions; and (3) Who you have the right to direct and control while performing

services for you; or b. Any natural person employed by an employment contractor while that person

is subject to your direction and control and performing services for you excluding, however, any such person while having care and custody of property outside any building you occupy in conducting your business. But “employee” does not mean any: (a) Agent, broker, factor, commission, merchant, consignee,

independent contractor or representative of the same general character; or

(b) “Manager” or director or trustee except while performing acts coming within the scope of the usual duties of any “employee”.

2. “Manager(s)” means a person serving in a directorial capacity.

3. “Member(s)” means an owner of a limited liability company represented by its membership interest, who also may serve as a “manager”.

4. “Money” means: a. Currency, coins and bank notes in current use and having a face value; and b. Traveler’s checks, register checks and money orders held for sale to the

public.

5. “Perishable stock” means personal property: a. Maintained under controlled conditions for its preservation; and b. Susceptible to loss or damage if the controlled conditions change.

6. “Securities” means negotiable and non-negotiable instruments or contracts representing either “money” or other property and includes:

a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused value in a meter) in current use; and


b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued by you;

but does not include “money”.

7. “Theft” means any act of stealing except by you, anyone else with an interest in the property, any of your or their partners, “member”, officers, “managers”, “employees” (including leased or temporary “employees”), directors, trustees, authorized representatives or anyone to whom you entrust the property..

Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Policy,, other than as above stated.

FRAUDULENT CLAIM CLAUSE

If the (re)insured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this contract shall become void and all claim hereunder shall be forfeited. LMA5062 04/06/2006 Form approved by Lloyd's Market Association

OCCURRENCE DEFINITION AMENDMENT

It is hereby understood and agreed that the Policy is amended as follows:

1. Item 6 DEFINITIONS (a) of the Policy is deemed to be deleted and replaced by the following;

Occurrence: The words "per occurrence" shall mean a loss or series of losses arising out of one event.

2. The words "ultimate net loss each and every loss" in Item 9, Primary and Underlying Excess Limits, and Item 10, Excess Limits, in the Schedule, shall be deleted and replaced by the words "ultimate net loss per occurrence".

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED

12/97 LSW677

IL 02 49 10 07


IL 02 49 10 07 ISO Properties, Inc., 2007 Page 1 of 2

SOUTH CAROLINA CHANGES – CANCELLATIONAND NONRENEWAL


CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PARTCOMMERCIAL GENERAL LIABILITY COVERAGE PARTCOMMERCIAL INLAND MARINE COVERAGE PARTCOMMERCIAL PROPERTY COVERAGE PARTCRIME AND FIDELITY COVERAGE PARTEMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PARTEQUIPMENT BREAKDOWN COVERAGE PARTFARM COVERAGE PARTLIQUOR LIABILITY COVERAGE PARTPOLLUTION LIABILITY COVERAGE PARTPRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PARTPROFESSIONAL LIABILITY COVERAGE PART

A. Paragraphs 2. and 3. of Cancellation CommonPolicy Condition are replaced by the following:2. We may cancel this policy by mailing or deliv-

ering to the first Named Insured and the agent,if any, written notice of cancellation at least:a. 10 days before the effective date of cancel-

lation if we cancel for nonpayment of pre-mium; or

b. 30 days before the effective date of cancel-lation if we cancel for any other reason.

3. We will mail or deliver our notice to the firstNamed Insured's and agent's last known ad-dresses.

B. The following is added to the Cancellation Com-mon Policy Condition:7. Cancellation Of Policies In Effect For 120

Days Or MoreIf this policy has been in effect for 120 days ormore, or is a renewal or continuation of a policywe issued, we may cancel this policy only forone or more of the following reasons:a. Nonpayment of premium;

b. Material misrepresentation of fact which, ifknown to us, would have caused us not toissue the policy;

c. Substantial change in the risk assumed,except to the extent that we should reason-ably have foreseen the change or contem-plated the risk in writing the policy;

d. Substantial breaches of contractual duties,conditions or warranties; or

e. Loss of our reinsurance covering all or asignificant portion of the particular policy in-sured, or where continuation of the policywould imperil our solvency or place us inviolation of the insurance laws of SouthCarolina.Prior to cancellation for reasons permittedin this Item e., we will notify the Commis-sioner, in writing, at least 60 days prior tosuch cancellation and the Commissionerwill, within 30 days of such notification, ap-prove or disapprove such action.

Any notice of cancellation will state the precisereason for cancellation.

Page 2 of 2 ISO Properties, Inc., 2007 IL 02 49 10 07

C. The following is added and supersedes any provi-sions to the contrary:

Nonrenewal1. We will not refuse to renew a policy issued for

a term of more than one year, until expirationof its full term, if anniversary renewal has beenguaranteed by additional premium considera-tion.

2. If we decide not to renew this policy, we will:

a. Mail or deliver written notice of nonrenewalto the first Named Insured and agent, if any,before:

(1) The expiration date of this policy, if thepolicy is written for a term of one year orless; or

(2) An anniversary date of this policy, if thepolicy is written for a term of more thanone year or for an indefinite term; and

b. Provide at least:

(1) 60 days' notice of nonrenewal, whennonrenewal is to become effective be-tween November 1 and May 31; or

(2) 90 days' notice of nonrenewal, whennonrenewal is to become effective be-tween June 1 and October 31.

3. Any notice of nonrenewal will be mailed ordelivered to the first Named Insured's andagent's last known addresses. If notice ismailed, proof of mailing will be sufficient proofof notice.

4. Any notice of nonrenewal will state the precisereason for nonrenewal.

Policy: Page: 1 of 1

Named Insured: Effective Date:

CANCELLATION CLAUSE

Notwithstanding anything contained in this policy to the contrary this policy may be cancelled by the(re)insured at anytime by written notice or by surrender of this contract of (re)insurance. This policy may also becancelled by or on behalf of the company by delivering to the (re)insured or by mailing to the (re)insured, byregistered, certified or other first class mail, at the (re)insured’s address as shown in this policy, written noticestating when, not less than (10) ten days for non-payment of premium. hereafter, the cancellation shall beeffective.

If this policy is cancelled by the (re)insured, the company shall retain the customary short rate proportion ofthe premium hereon, if the company cancels, earned premium shall be computed pro-rata. Premiumadjustment may be made at the time cancellation is effected, and, if not then made, shall be made as soon aspracticable after cancellation becomes effective. Any excess premium due the (re)insured will be refunded upondemand, subject always to the retention by the company of any minimum premium stipulated in the policy (orproportion thereof previously agreed upon) in the event of cancellation either by the company or the (re)insured.

NMA 1331 (amended)


D160896NC0198

11/13/2017



CONDOMINIUM ASSOCIATION COVERAGE FORMVarious provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties andwhat is and is not covered.Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. Thewords "we", "us" and "our" refer to the company providing this insurance.Other words and phrases that appear in quotation marks have special meaning. Refer to Section H. Definitions.

A. CoverageWe will pay for direct physical loss of or damage toCovered Property at the premises described in theDeclarations caused by or resulting from anyCovered Cause of Loss.1. Covered Property

Covered Property, as used in this CoveragePart, means the type of property described inthis section, A.1., and limited in A.2. PropertyNot Covered, if a Limit Of Insurance is shownin the Declarations for that type of property.a. Building, meaning the building or structure

described in the Declarations, including:(1) Completed additions;(2) Fixtures, outside of individual units,

including outdoor fixtures;(3) Permanently installed:

(a) Machinery; and(b) Equipment;

(4) Personal property owned by you that isused to maintain or service the buildingor structure or its premises, including:

(a) Fire-extinguishing equipment;(b) Outdoor furniture;(c) Floor coverings; and(d) Appliances used for refrigerating,

ventilating, cooking, dishwashing orlaundering that are not containedwithin individual units;

(5) If not covered by other insurance:(a) Additions under construction,

alterations and repairs to the buildingor structure;

(b) Materials, equipment, supplies, andtemporary structures, on or within100 feet of the described premises,used for making additions,alterations or repairs to the buildingor structure; and

(6) Any of the following types of propertycontained within a unit, regardless ofownership, if your CondominiumAssociation Agreement requires you toinsure it:

(a) Fixtures, improvements andalterations that are a part of thebuilding or structure; and

(b) Appliances, such as those used forrefrigerating, ventilating, cooking,dishwashing, laundering, security orhousekeeping.

But Building does not include personalproperty owned by, used by or in the care,custody or control of a unit-owner except forpersonal property listed in ParagraphA.1.a.(6) above.

b. Your Business Personal Property locatedin or on the building or structure describedin the Declarations or in the open (or in avehicle) within 100 feet of the describedpremises, consisting of the following:

(1) Personal property owned by you orowned indivisibly by all unit-owners;

(2) Your interest in the labor, materials orservices furnished or arranged by youon personal property of others; and

(3) Leased personal property for which youhave a contractual responsibility toinsure, unless otherwise provided forunder Personal Property Of Others.


But Your Business Personal Property doesnot include personal property owned onlyby a unit-owner.

c. Personal Property Of Others that is:

(1) In your care, custody or control; and

(2) Located in or on the building or structuredescribed in the Declarations or in theopen (or in a vehicle) within 100 feet ofthe described premises.

However, our payment for loss of ordamage to personal property of others willonly be for the account of the owner of theproperty.

2. Property Not CoveredCovered Property does not include:

a. Accounts, bills, currency, food stamps orother evidences of debt, money, notes orsecurities. Lottery tickets held for sale arenot securities;

b. Animals, unless owned by others andboarded by you;

c. Automobiles held for sale;

d. Bridges, roadways, walks, patios or otherpaved surfaces;

e. Contraband, or property in the course ofillegal transportation or trade;

f. The cost of excavations, grading, backfillingor filling;

g. Foundations of buildings, structures,machinery or boilers if their foundations arebelow:

(1) The lowest basement floor; or

(2) The surface of the ground if there is nobasement;

h. Land (including land on which the propertyis located), water, growing crops or lawns(other than lawns which are part of avegetated roof);

i. Personal property while airborne orwaterborne;

j. Bulkheads, pilings, piers, wharves or docks;

k. Property that is covered under this or anyother policy in which it is more specificallydescribed, except for the excess of theamount due (whether you can collect on itor not) from that other insurance;

l. Retaining walls that are not part of abuilding;

m. Underground pipes, flues or drains;

n. Electronic data, except as provided underthe Additional Coverage, Electronic Data.Electronic data means information, facts orcomputer programs stored as or on,created or used on, or transmitted to orfrom computer software (including systemsand applications software), on hard orfloppy disks, CD-ROMs, tapes, drives, cells,data processing devices or any otherrepositories of computer software which areused with electronically controlledequipment. The term computer programs,referred to in the foregoing description ofelectronic data, means a set of relatedelectronic instructions which direct theoperations and functions of a computer ordevice connected to it, which enable thecomputer or device to receive, process,store, retrieve or send data. Thisparagraph, n., does not apply to electronicdata which is integrated in and operates orcontrols the building's elevator, lighting,heating, ventilation, air conditioning orsecurity system;

o. The cost to replace or restore theinformation on valuable papers andrecords, including those which exist aselectronic data. Valuable papers andrecords include but are not limited toproprietary information, books of account,deeds, manuscripts, abstracts, drawingsand card index systems. Refer to theCoverage Extension for Valuable PapersAnd Records (Other Than Electronic Data)for limited coverage for valuable papers andrecords other than those which exist aselectronic data;

p. Vehicles or self-propelled machines(including aircraft or watercraft) that:

(1) Are licensed for use on public roads; or

(2) Are operated principally away from thedescribed premises.

This paragraph does not apply to:

(a) Vehicles or self-propelled machinesor autos you manufacture orwarehouse;

(b) Vehicles or self-propelled machines,other than autos, you hold for sale;

(c) Rowboats or canoes out of water atthe described premises; or

(d) Trailers, but only to the extentprovided for in the CoverageExtension for Non-owned DetachedTrailers; or


q. The following property while outside ofbuildings:

(1) Grain, hay, straw or other crops; or

(2) Fences, radio or television antennas(including satellite dishes) and theirlead-in wiring, masts or towers, trees,shrubs or plants (other than trees,shrubs or plants which are "stock" or arepart of a vegetated roof), all except asprovided in the Coverage Extensions.

3. Covered Causes Of LossSee applicable Causes Of Loss form as shownin the Declarations.

4. Additional Coveragesa. Debris Removal

(1) Subject to Paragraphs (2), (3) and (4),we will pay your expense to removedebris of Covered Property and otherdebris that is on the described premises,when such debris is caused by orresults from a Covered Cause of Lossthat occurs during the policy period. Theexpenses will be paid only if they arereported to us in writing within 180 daysof the date of direct physical loss ordamage.

(2) Debris Removal does not apply to coststo:

(a) Remove debris of property of yoursthat is not insured under this policy,or property in your possession that isnot Covered Property;

(b) Remove any property that isProperty Not Covered, includingproperty addressed under theOutdoor Property CoverageExtension;

(c) Remove property of others of a typethat would not be Covered Propertyunder this Coverage Form;

(d) Remove deposits of mud or earthfrom the grounds of the describedpremises;

(e) Extract "pollutants" from land orwater; or

(f) Remove, restore or replace pollutedland or water.

(3) Subject to the exceptions in Paragraph(4), the following provisions apply:

(a) The most we will pay for the total ofdirect physical loss or damage plusdebris removal expense is the Limitof Insurance applicable to theCovered Property that has sustainedloss or damage.

(b) Subject to (a) above, the amount wewill pay for debris removal expenseis limited to 25% of the sum of thedeductible plus the amount that wepay for direct physical loss ordamage to the Covered Property thathas sustained loss or damage.However, if no Covered Property hassustained direct physical loss ordamage, the most we will pay forremoval of debris of other property (ifsuch removal is covered under thisAdditional Coverage) is $5,000 ateach location.

(4) We will pay up to an additional $25,000for debris removal expense, for eachlocation, in any one occurrence ofphysical loss or damage to CoveredProperty, if one or both of the followingcircumstances apply:

(a) The total of the actual debris removalexpense plus the amount we pay fordirect physical loss or damageexceeds the Limit of Insurance onthe Covered Property that hassustained loss or damage.

(b) The actual debris removal expenseexceeds 25% of the sum of thedeductible plus the amount that wepay for direct physical loss ordamage to the Covered Property thathas sustained loss or damage.

Therefore, if (4)(a) and/or (4)(b) applies,our total payment for direct physical lossor damage and debris removal expensemay reach but will never exceed theLimit of Insurance on the CoveredProperty that has sustained loss ordamage, plus $25,000.

(5) ExamplesThe following examples assume thatthere is no Coinsurance penalty.


Example 1

Limit of Insurance: $ 90,000

Amount of Deductible: $ 500

Amount of Loss: $ 50,000

Amount of Loss Payable: $ 49,500

($50,000 – $500)

Debris Removal Expense: $ 10,000

Debris Removal Expense Payable: $ 10,000

($10,000 is 20% of $50,000.)

The debris removal expense is less than 25% of thesum of the loss payable plus the deductible. The sumof the loss payable and the debris removal expense($49,500 + $10,000 = $59,500) is less than the Limitof Insurance. Therefore, the full amount of debrisremoval expense is payable in accordance with theterms of Paragraph (3).Example 2





($80,000 – $500)


Debris Removal Expense Payable

Basic Amount: $ 10,500

Additional Amount: $ 25,000

The basic amount payable for debris removalexpense under the terms of Paragraph (3) iscalculated as follows: $80,000 ($79,500 + $500) x .25= $20,000, capped at $10,500. The cap appliesbecause the sum of the loss payable ($79,500) andthe basic amount payable for debris removal expense($10,500) cannot exceed the Limit of Insurance($90,000).

The additional amount payable for debris removalexpense is provided in accordance with the terms ofParagraph (4), because the debris removal expense($40,000) exceeds 25% of the loss payable plus thedeductible ($40,000 = 50% of $80,000), and becausethe sum of the loss payable and debris removalexpense ($79,500 + $40,000 = $119,500) wouldexceed the Limit of Insurance ($90,000). Theadditional amount of covered debris removal expenseis $25,000, the maximum payable under Paragraph(4). Thus, the total payable for debris removalexpense in this example is $35,500; $4,500 of thedebris removal expense is not covered.

b. Preservation Of PropertyIf it is necessary for you to move CoveredProperty from the described premises topreserve it from loss or damage by aCovered Cause of Loss, we will pay for anydirect physical loss or damage to thatproperty:

(1) While it is being moved or whiletemporarily stored at another location;and

(2) Only if the loss or damage occurs within30 days after the property is first moved.

c. Fire Department Service ChargeWhen the fire department is called to saveor protect Covered Property from aCovered Cause of Loss, we will pay up to$1,000 for service at each premisesdescribed in the Declarations unless ahigher limit is shown in the Declarations.Such limit is the most we will payregardless of the number of responding firedepartments or fire units, and regardless ofthe number or type of services performed.

This Additional Coverage applies to yourliability for fire department service charges:

(1) Assumed by contract or agreement priorto loss; or

(2) Required by local ordinance.

No Deductible applies to this AdditionalCoverage.

d. Pollutant Clean-up And RemovalWe will pay your expense to extract"pollutants" from land or water at thedescribed premises if the discharge,dispersal, seepage, migration, release orescape of the "pollutants" is caused by orresults from a Covered Cause of Loss thatoccurs during the policy period. Theexpenses will be paid only if they arereported to us in writing within 180 days ofthe date on which the Covered Cause ofLoss occurs.

This Additional Coverage does not apply tocosts to test for, monitor or assess theexistence, concentration or effects of"pollutants". But we will pay for testingwhich is performed in the course ofextracting the "pollutants" from the land orwater.


The most we will pay under this AdditionalCoverage for each described premises is$10,000 for the sum of all coveredexpenses arising out of Covered Causes ofLoss occurring during each separate 12-month period of this policy.

e. Increased Cost Of Construction(1) This Additional Coverage applies only to

buildings to which the ReplacementCost Optional Coverage applies.

(2) In the event of damage by a CoveredCause of Loss to a building that isCovered Property, we will pay theincreased costs incurred to comply withthe minimum standards of an ordinanceor law in the course of repair, rebuildingor replacement of damaged parts of thatproperty, subject to the limitations statedin e.(3) through e.(9) of this AdditionalCoverage.

(3) The ordinance or law referred to in e.(2)of this Additional Coverage is anordinance or law that regulates theconstruction or repair of buildings orestablishes zoning or land userequirements at the described premisesand is in force at the time of loss.

(4) Under this Additional Coverage, we willnot pay any costs due to an ordinanceor law that:

(a) You were required to comply withbefore the loss, even when thebuilding was undamaged; and

(b) You failed to comply with.

(5) Under this Additional Coverage, we willnot pay for:

(a) The enforcement of or compliancewith any ordinance or law whichrequires demolition, repair,replacement, reconstruction,remodeling or remediation ofproperty due to contamination by"pollutants" or due to the presence,growth, proliferation, spread or anyactivity of "fungus", wet or dry rot orbacteria; or

(b) Any costs associated with theenforcement of or compliance withan ordinance or law which requiresany insured or others to test for,monitor, clean up, remove, contain,treat, detoxify or neutralize, or in anyway respond to, or assess theeffects of "pollutants", "fungus", wetor dry rot or bacteria.

(6) The most we will pay under thisAdditional Coverage, for each describedbuilding insured under this CoverageForm, is $10,000 or 5% of the Limit ofInsurance applicable to that building,whichever is less. If a damaged buildingis covered under a blanket Limit ofInsurance which applies to more thanone building or item of property, then themost we will pay under this AdditionalCoverage, for that damaged building, isthe lesser of $10,000 or 5% times thevalue of the damaged building as of thetime of loss times the applicableCoinsurance percentage.

The amount payable under thisAdditional Coverage is additionalinsurance.

(7) With respect to this AdditionalCoverage:

(a) We will not pay for the IncreasedCost of Construction:

(i) Until the property is actuallyrepaired or replaced, at the sameor another premises; and

(ii) Unless the repair or replacementis made as soon as reasonablypossible after the loss ordamage, not to exceed twoyears. We may extend this periodin writing during the two years.

(b) If the building is repaired or replacedat the same premises, or if you electto rebuild at another premises, themost we will pay for the IncreasedCost of Construction, subject to theprovisions of e.(6) of this AdditionalCoverage, is the increased cost ofconstruction at the same premises.

(c) If the ordinance or law requiresrelocation to another premises, themost we will pay for the IncreasedCost of Construction, subject to theprovisions of e.(6) of this AdditionalCoverage, is the increased cost ofconstruction at the new premises.

(8) This Additional Coverage is not subjectto the terms of the Ordinance Or LawExclusion to the extent that suchExclusion would conflict with theprovisions of this Additional Coverage.


(9) The costs addressed in the LossPayment and Valuation Conditions andthe Replacement Cost OptionalCoverage, in this Coverage Form, donot include the increased costattributable to enforcement of orcompliance with an ordinance or law.The amount payable under thisAdditional Coverage, as stated in e.(6)of this Additional Coverage, is notsubject to such limitation.

f. Electronic Data(1) Under this Additional Coverage,

electronic data has the meaningdescribed under Property Not Covered,Electronic Data. This AdditionalCoverage does not apply to electronicdata which is integrated in and operatesor controls the building's elevator,lighting, heating, ventilation, airconditioning or security system.

(2) Subject to the provisions of thisAdditional Coverage, we will pay for thecost to replace or restore electronic datawhich has been destroyed or corruptedby a Covered Cause of Loss. To theextent that electronic data is notreplaced or restored, the loss will bevalued at the cost of replacement of themedia on which the electronic data wasstored, with blank media of substantiallyidentical type.

(3) The Covered Causes of Loss applicableto Your Business Personal Propertyapply to this Additional Coverage,Electronic Data, subject to the following:

(a) If the Causes Of Loss – SpecialForm applies, coverage under thisAdditional Coverage, ElectronicData, is limited to the "specifiedcauses of loss" as defined in thatform and Collapse as set forth in thatform.

(b) If the Causes Of Loss – Broad Formapplies, coverage under thisAdditional Coverage, ElectronicData, includes Collapse as set forthin that form.

(c) If the Causes Of Loss form isendorsed to add a Covered Cause ofLoss, the additional Covered Causeof Loss does not apply to thecoverage provided under thisAdditional Coverage, ElectronicData.

(d) The Covered Causes of Loss includea virus, harmful code or similarinstruction introduced into or enactedon a computer system (includingelectronic data) or a network towhich it is connected, designed todamage or destroy any part of thesystem or disrupt its normaloperation. But there is no coveragefor loss or damage caused by orresulting from manipulation of acomputer system (includingelectronic data) by any employee,including a temporary or leasedemployee, or by an entity retained byyou or for you to inspect, design,install, modify, maintain, repair orreplace that system.

(4) The most we will pay under thisAdditional Coverage, Electronic Data, is$2,500 (unless a higher limit is shown inthe Declarations) for all loss or damagesustained in any one policy year,regardless of the number of occurrencesof loss or damage or the number ofpremises, locations or computersystems involved. If loss payment on thefirst occurrence does not exhaust thisamount, then the balance is available forsubsequent loss or damage sustained inbut not after that policy year. Withrespect to an occurrence which beginsin one policy year and continues orresults in additional loss or damage in asubsequent policy year(s), all loss ordamage is deemed to be sustained inthe policy year in which the occurrencebegan.

5. Coverage ExtensionsExcept as otherwise provided, the followingExtensions apply to property located in or onthe building described in the Declarations or inthe open (or in a vehicle) within 100 feet of thedescribed premises.

If a Coinsurance percentage of 80% or more isshown in the Declarations, you may extend theinsurance provided by this Coverage Part asfollows:

a. Newly Acquired Or ConstructedProperty

(1) BuildingsYou may extend the insurance thatapplies to Building to apply to:

(a) Your new buildings while being builton the described premises; and


(b) Buildings you acquire at locations,other than the described premises,intended for:

(i) Similar use as the buildingdescribed in the Declarations; or

(ii) Use as a warehouse.

The most we will pay for loss or damageunder this Extension is $250,000 ateach building.

(2) Your Business Personal Property(a) If this policy covers Your Business

Personal Property, you may extendthat insurance to apply to:

(i) Business personal property,including such property that younewly acquire, at any locationyou acquire other than at fairs,trade shows or exhibitions; or

(ii) Business personal property,including such property that younewly acquire, located at yournewly constructed or acquiredbuildings at the locationdescribed in the Declarations.


(b) This Extension does not apply to:

(i) Personal property of others thatis temporarily in your possessionin the course of installing orperforming work on suchproperty; or

(ii) Personal property of others thatis temporarily in your possessionin the course of yourmanufacturing or wholesalingactivities.

(3) Period Of CoverageWith respect to insurance providedunder this Coverage Extension forNewly Acquired Or ConstructedProperty, coverage will end when any ofthe following first occurs:

(a) This policy expires;

(b) 30 days expire after you acquire theproperty or begin construction of thatpart of the building that would qualifyas covered property; or

(c) You report values to us.

We will charge you additional premiumfor values reported from the date youacquire the property or beginconstruction of that part of the buildingthat would qualify as covered property.

b. Personal Effects And Property Of OthersYou may extend the insurance that appliesto Your Business Personal Property toapply to:

(1) Personal effects owned by you, yourofficers, your partners or members, yourmanagers or your employees. ThisExtension does not apply to loss ordamage by theft.

(2) Personal property of others in your care,custody or control.

The most we will pay for loss or damageunder this Extension is $2,500 at eachdescribed premises. Our payment for lossof or damage to personal property of otherswill only be for the account of the owner ofthe property.

c. Valuable Papers And Records (OtherThan Electronic Data)

(1) You may extend the insurance thatapplies to Your Business PersonalProperty to apply to the cost to replaceor restore the lost information onvaluable papers and records for whichduplicates do not exist. But thisExtension does not apply to valuablepapers and records which exist aselectronic data. Electronic data has themeaning described under Property NotCovered, Electronic Data.

(2) If the Causes Of Loss – Special Formapplies, coverage under this Extensionis limited to the "specified causes ofloss" as defined in that form andCollapse as set forth in that form.

(3) If the Causes Of Loss – Broad Formapplies, coverage under this Extensionincludes Collapse as set forth in thatform.


(4) Under this Extension, the most we willpay to replace or restore the lostinformation is $2,500 at each describedpremises, unless a higher limit is shownin the Declarations. Such amount isadditional insurance. We will also payfor the cost of blank material forreproducing the records (whether or notduplicates exist) and (when there is aduplicate) for the cost of labor totranscribe or copy the records. Thecosts of blank material and labor aresubject to the applicable Limit ofInsurance on Your Business PersonalProperty and, therefore, coverage ofsuch costs is not additional insurance.

d. Property Off-premises(1) You may extend the insurance provided

by this Coverage Form to apply to yourCovered Property while it is away fromthe described premises, if it is:

(a) Temporarily at a location you do notown, lease or operate;

(b) In storage at a location you lease,provided the lease was executedafter the beginning of the currentpolicy term; or

(c) At any fair, trade show or exhibition.

(2) This Extension does not apply toproperty:

(a) In or on a vehicle; or

(b) In the care, custody or control ofyour salespersons, unless theproperty is in such care, custody orcontrol at a fair, trade show orexhibition.

(3) The most we will pay for loss or damageunder this Extension is $10,000.

e. Outdoor PropertyYou may extend the insurance provided bythis Coverage Form to apply to youroutdoor fences, radio and televisionantennas (including satellite dishes), trees,shrubs and plants (other than trees, shrubsor plants which are "stock" or are part of avegetated roof), including debris removalexpense, caused by or resulting from any ofthe following causes of loss if they areCovered Causes of Loss:

(1) Fire;

(2) Lightning;

(3) Explosion;

(4) Riot or Civil Commotion; or

(5) Aircraft.

The most we will pay for loss or damageunder this Extension is $1,000, but notmore than $250 for any one tree, shrub orplant. These limits apply to any oneoccurrence, regardless of the types ornumber of items lost or damaged in thatoccurrence.

Subject to all aforementioned terms andlimitations of coverage, this CoverageExtension includes the expense ofremoving from the described premises thedebris of trees, shrubs and plants which arethe property of others.

f. Non-owned Detached Trailers(1) You may extend the insurance that

applies to Your Business PersonalProperty to apply to loss or damage totrailers that you do not own, providedthat:

(a) The trailer is used in your business;

(b) The trailer is in your care, custody orcontrol at the premises described inthe Declarations; and

(c) You have a contractual responsibilityto pay for loss or damage to thetrailer.

(2) We will not pay for any loss or damagethat occurs:

(a) While the trailer is attached to anymotor vehicle or motorizedconveyance, whether or not themotor vehicle or motorizedconveyance is in motion;

(b) During hitching or unhitchingoperations, or when a trailerbecomes accidentally unhitched froma motor vehicle or motorizedconveyance.

(3) The most we will pay for loss or damageunder this Extension is $5,000, unless ahigher limit is shown in the Declarations.

(4) This insurance is excess over theamount due (whether you can collect onit or not) from any other insurancecovering such property.


g. Business Personal Property TemporarilyIn Portable Storage Units

(1) You may extend the insurance thatapplies to Your Business PersonalProperty to apply to such property whiletemporarily stored in a portable storageunit (including a detached trailer)located within 100 feet of the describedpremises.

(2) If the applicable Covered Causes ofLoss form or endorsement contains alimitation or exclusion concerning loss ordamage from sand, dust, sleet, snow,ice or rain to property in a structure,such limitation or exclusion also appliesto property in a portable storage unit.

(3) Coverage under this Extension:

(a) Will end 90 days after the businesspersonal property has been placed inthe storage unit;

(b) Does not apply if the storage unititself has been in use at thedescribed premises for more than 90consecutive days, even if thebusiness personal property has beenstored there for 90 or fewer days asof the time of loss or damage.

(4) Under this Extension, the most we willpay for the total of all loss or damage tobusiness personal property is $10,000(unless a higher limit is indicated in theDeclarations for such Extension)regardless of the number of storageunits. Such limit is part of, not in additionto, the applicable Limit of Insurance onYour Business Personal Property.Therefore, payment under thisExtension will not increase theapplicable Limit of Insurance on YourBusiness Personal Property.

(5) This Extension does not apply to loss ordamage otherwise covered under thisCoverage Form or any endorsement tothis Coverage Form or policy, and doesnot apply to loss or damage to thestorage unit itself.

Each of these Extensions is additional insuranceunless otherwise indicated. The AdditionalCondition, Coinsurance, does not apply to theseExtensions.

B. Exclusions And LimitationsSee applicable Causes Of Loss form as shown inthe Declarations.

C. Limits Of InsuranceThe most we will pay for loss or damage in anyone occurrence is the applicable Limit OfInsurance shown in the Declarations.

The most we will pay for loss or damage tooutdoor signs, whether or not the sign is attachedto a building, is $2,500 per sign in any oneoccurrence.

The amounts of insurance stated in the followingAdditional Coverages apply in accordance with theterms of such coverages and are separate fromthe Limit(s) Of Insurance shown in theDeclarations for any other coverage:

1. Fire Department Service Charge;

2. Pollutant Clean-up And Removal;

3. Increased Cost Of Construction; and

4. Electronic Data.

Payments under the Preservation Of PropertyAdditional Coverage will not increase theapplicable Limit of Insurance.

D. DeductibleIn any one occurrence of loss or damage(hereinafter referred to as loss), we will first reducethe amount of loss if required by the CoinsuranceCondition or the Agreed Value Optional Coverage.If the adjusted amount of loss is less than or equalto the Deductible, we will not pay for that loss. Ifthe adjusted amount of loss exceeds theDeductible, we will then subtract the Deductiblefrom the adjusted amount of loss and will pay theresulting amount or the Limit of Insurance,whichever is less.

When the occurrence involves loss to more thanone item of Covered Property and separate Limitsof Insurance apply, the losses will not becombined in determining application of theDeductible. But the Deductible will be applied onlyonce per occurrence.

Example 1(This example assumes there is no Coinsurancepenalty.)

Deductible: $ 250

Limit of Insurance – Building 1: $ 60,000


Loss to Building 1: $ 60,100


The amount of loss to Building 1 ($60,100) is lessthan the sum ($60,250) of the Limit of Insuranceapplicable to Building 1 plus the Deductible.


The Deductible will be subtracted from the amount ofloss in calculating the loss payable for Building 1:

$ 60,100

– 250

$ 59,850 Loss Payable – Building 1

The Deductible applies once per occurrence andtherefore is not subtracted in determining the amountof loss payable for Building 2. Loss payable forBuilding 2 is the Limit of Insurance of $80,000.

Total amount of loss payable:

$59,850 + $80,000 = $139,850

Example 2(This example, too, assumes there is no Coinsurancepenalty.)

The Deductible and Limits of Insurance are the sameas those in Example 1.


(Exceeds Limit of Insurance plus Deductible)



Loss Payable – Building 1: $ 60,000

(Limit of Insurance)



Total amount of loss payable: $ 140,000

E. Loss ConditionsThe following conditions apply in addition to theCommon Policy Conditions and the CommercialProperty Conditions:

1. AbandonmentThere can be no abandonment of any propertyto us.

2. AppraisalIf we and you disagree on the value of theproperty or the amount of loss, either maymake written demand for an appraisal of theloss. In this event, each party will select acompetent and impartial appraiser. The twoappraisers will select an umpire. If they cannotagree, either may request that selection bemade by a judge of a court having jurisdiction.The appraisers will state separately the valueof the property and amount of loss. If they failto agree, they will submit their differences tothe umpire. A decision agreed to by any twowill be binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisaland umpire equally.

If there is an appraisal, we will still retain ourright to deny the claim.

3. Duties In The Event Of Loss Or Damagea. You must see that the following are done in

the event of loss or damage to CoveredProperty:

(1) Notify the police if a law may have beenbroken.

(2) Give us prompt notice of the loss ordamage. Include a description of theproperty involved.

(3) As soon as possible, give us adescription of how, when and where theloss or damage occurred.

(4) Take all reasonable steps to protect theCovered Property from further damage,and keep a record of your expensesnecessary to protect the CoveredProperty, for consideration in thesettlement of the claim. This will notincrease the Limit of Insurance.However, we will not pay for anysubsequent loss or damage resultingfrom a cause of loss that is not aCovered Cause of Loss. Also, iffeasible, set the damaged propertyaside and in the best possible order forexamination.

(5) At our request, give us completeinventories of the damaged andundamaged property. Include quantities,costs, values and amount of lossclaimed.

(6) As often as may be reasonably required,permit us to inspect the property provingthe loss or damage and examine yourbooks and records.

Also, permit us to take samples ofdamaged and undamaged property forinspection, testing and analysis, andpermit us to make copies from yourbooks and records.

(7) Send us a signed, sworn proof of losscontaining the information we request toinvestigate the claim. You must do thiswithin 60 days after our request. We willsupply you with the necessary forms.

(8) Cooperate with us in the investigation orsettlement of the claim.


b. We may examine any insured under oath,while not in the presence of any otherinsured and at such times as may bereasonably required, about any matterrelating to this insurance or the claim,including an insured's books and records. Inthe event of an examination, an insured'sanswers must be signed.

4. Loss Paymenta. In the event of loss or damage covered by

this Coverage Form, at our option, we willeither:

(1) Pay the value of lost or damagedproperty;

(2) Pay the cost of repairing or replacing thelost or damaged property, subject to b.below;

(3) Take all or any part of the property at anagreed or appraised value; or

(4) Repair, rebuild or replace the propertywith other property of like kind andquality, subject to b. below.

We will determine the value of lost ordamaged property, or the cost of its repairor replacement, in accordance with theapplicable terms of the Valuation Conditionin this Coverage Form or any applicableprovision which amends or supersedes theValuation Condition.

b. The cost to repair, rebuild or replace doesnot include the increased cost attributableto enforcement of or compliance with anyordinance or law regulating theconstruction, use or repair of any property.

c. We will give notice of our intentions within30 days after we receive the sworn proof ofloss.

d. We will not pay you more than yourfinancial interest in the Covered Property.

e. We may adjust losses with the owners oflost or damaged property if other than you.If we pay the owners, such payments willsatisfy your claims against us for theowners' property. We will not pay theowners more than their financial interest inthe Covered Property.

f. We may elect to defend you against suitsarising from claims of owners of property.We will do this at our expense.

g. We will pay for covered loss or damage toCovered Property within 30 days after wereceive the sworn proof of loss, if you havecomplied with all of the terms of thisCoverage Part, and:

(1) We have reached agreement with youon the amount of loss; or

(2) An appraisal award has been made.

If you name an insurance trustee, we willadjust losses with you, but we will pay theinsurance trustee. If we pay the trustee, thepayments will satisfy your claims againstus.

h. A party wall is a wall that separates and iscommon to adjoining buildings that areowned by different parties. In settlingcovered losses involving a party wall, wewill pay a proportion of the loss to the partywall based on your interest in the wall inproportion to the interest of the owner of theadjoining building. However, if you elect torepair or replace your building and theowner of the adjoining building elects not torepair or replace that building, we will payyou the full value of the loss to the partywall, subject to all applicable policyprovisions including Limits of Insurance, theValuation and Coinsurance Conditions andall other provisions of this Loss PaymentCondition. Our payment under theprovisions of this paragraph does not alterany right of subrogation we may haveagainst any entity, including the owner orinsurer of the adjoining building, and doesnot alter the terms of the Transfer Of RightsOf Recovery Against Others To UsCondition in this policy.

5. Recovered PropertyIf either you or we recover any property afterloss settlement, that party must give the otherprompt notice. At your option, the property willbe returned to you. You must then return to usthe amount we paid to you for the property. Wewill pay recovery expenses and the expensesto repair the recovered property, subject to theLimit of Insurance.

6. Unit-owner's InsuranceA unit-owner may have other insurancecovering the same property as this insurance.This insurance is intended to be primary andnot to contribute with such other insurance.


7. Vacancya. Description Of Terms

(1) As used in this Vacancy Condition, theterm building and the term vacant havethe meanings set forth in (1)(a) and(1)(b) below:

(a) When this policy is issued to atenant, and with respect to thattenant's interest in Covered Property,building means the unit or suiterented or leased to the tenant. Suchbuilding is vacant when it does notcontain enough business personalproperty to conduct customaryoperations.

(b) When this policy is issued to theowner or general lessee of abuilding, building means the entirebuilding. Such building is vacantunless at least 31% of its totalsquare footage is:

(i) Rented to a lessee or sublesseeand used by the lessee orsublessee to conduct itscustomary operations; and/or

(ii) Used by the building owner toconduct customary operations.

(2) Buildings under construction orrenovation are not considered vacant.

b. Vacancy ProvisionsIf the building where loss or damage occurshas been vacant for more than 60consecutive days before that loss ordamage occurs:

(1) We will not pay for any loss or damagecaused by any of the following even ifthey are Covered Causes of Loss:

(a) Vandalism;

(b) Sprinkler leakage, unless you haveprotected the system againstfreezing;

(c) Building glass breakage;

(d) Water damage;

(e) Theft; or

(f) Attempted theft.

(2) With respect to Covered Causes of Lossother than those listed in b.(1)(a)through b.(1)(f) above, we will reducethe amount we would otherwise pay forthe loss or damage by 15%.

8. ValuationWe will determine the value of CoveredProperty in the event of loss or damage asfollows:

a. At actual cash value as of the time of lossor damage, except as provided in b. and c.below.

b. If the Limit of Insurance for Buildingsatisfies the Additional Condition,Coinsurance, and the cost to repair orreplace the damaged building property is$2,500 or less, we will pay the cost ofbuilding repairs or replacement.

The cost of building repairs or replacementdoes not include the increased costattributable to enforcement of orcompliance with any ordinance or lawregulating the construction, use or repair ofany property. However, the followingproperty will be valued at the actual cashvalue, even when attached to the building:

(1) Awnings or floor coverings;

(2) Appliances for refrigerating, ventilating,cooking, dishwashing or laundering; or

(3) Outdoor equipment or furniture.

c. Glass at the cost of replacement withsafety-glazing material if required by law.

9. Waiver Of Rights Of RecoveryWe waive our rights to recover payment fromany unit-owner of the condominium that isshown in the Declarations.

F. Additional ConditionsThe following conditions apply in addition to theCommon Policy Conditions and the CommercialProperty Conditions:

1. CoinsuranceIf a Coinsurance percentage is shown in theDeclarations, the following condition applies:

a. We will not pay the full amount of any loss ifthe value of Covered Property at the time ofloss times the Coinsurance percentageshown for it in the Declarations is greaterthan the Limit of Insurance for the property.

Instead, we will determine the most we willpay using the following steps:

(1) Multiply the value of Covered Propertyat the time of loss by the Coinsurancepercentage;

(2) Divide the Limit of Insurance of theproperty by the figure determined inStep (1);


(3) Multiply the total amount of loss, beforethe application of any deductible, by thefigure determined in Step (2); and

(4) Subtract the deductible from the figuredetermined in Step (3).

We will pay the amount determined in Step (4) orthe Limit of Insurance, whichever is less. For theremainder, you will either have to rely on otherinsurance or absorb the loss yourself.

Example 1 (Underinsurance)

When: The value of the property is: $ 250,000

The Coinsurance percentagefor it is: 80%

The Limit of Insurance for it is: $ 100,000

The Deductible is: $ 250

The amount of loss is: $ 40,000

Step (1): $250,000 x 80% = $200,000

(the minimum amount of insurance tomeet your Coinsurance requirements)

Step (2): $100,000 $200,000 = .50

Step (3): $40,000 x .50 = $20,000

Step (4): $20,000 – $250 = $19,750

We will pay no more than $19,750. The remaining$20,250 is not covered.

Example 2 (Adequate Insurance)






The minimum amount of insurance to meet yourCoinsurance requirement is $200,000 ($250,000 x80%). Therefore, the Limit of Insurance in thisexample is adequate and no penalty applies. We willpay no more than $39,750 ($40,000 amount of lossminus the deductible of $250).

b. If one Limit of Insurance applies to two ormore separate items, this condition willapply to the total of all property to which thelimit applies.

Example 3

When: The value of the property is:

Building at Location 1: $ 75,000


Personal Propertyat Location 2: $ 75,000

$ 250,000


The Limit of Insurance forBuildings and Personal Propertyat Locations 1 and 2 is: $ 180,000

The Deductible is: $ 1,000

The amount of loss is:



$ 50,000

Step (1): $250,000 x 90% = $225,000

(the minimum amount of insurance tomeet your Coinsurance requirementsand to avoid the penalty shown below)

Step (2): $180,000 $225,000 = .80

Step (3): $50,000 x .80 = $40,000

Step (4): $40,000 – $1,000 = $39,000


2. Mortgageholdersa. The term mortgageholder includes trustee.

b. We will pay for covered loss of or damageto buildings or structures to eachmortgageholder shown in the Declarationsin their order of precedence, as interestsmay appear.

c. The mortgageholder has the right to receiveloss payment even if the mortgageholderhas started foreclosure or similar action onthe building or structure.

d. If we deny your claim because of your actsor because you have failed to comply withthe terms of this Coverage Part, themortgageholder will still have the right toreceive loss payment if the mortgageholder:

(1) Pays any premium due under thisCoverage Part at our request if youhave failed to do so;


(2) Submits a signed, sworn proof of losswithin 60 days after receiving noticefrom us of your failure to do so; and

(3) Has notified us of any change inownership, occupancy or substantialchange in risk known to themortgageholder.

All of the terms of this Coverage Part willthen apply directly to the mortgageholder.

e. If we pay the mortgageholder for any lossor damage and deny payment to youbecause of your acts or because you havefailed to comply with the terms of thisCoverage Part:

(1) The mortgageholder's rights under themortgage will be transferred to us to theextent of the amount we pay; and

(2) The mortgageholder's right to recoverthe full amount of the mortgageholder'sclaim will not be impaired.

At our option, we may pay to themortgageholder the whole principal on themortgage plus any accrued interest. In thisevent, your mortgage and note will betransferred to us and you will pay yourremaining mortgage debt to us.

f. If we cancel this policy, we will give writtennotice to the mortgageholder at least:

(1) 10 days before the effective date ofcancellation if we cancel for yournonpayment of premium; or

(2) 30 days before the effective date ofcancellation if we cancel for any otherreason.

g. If we elect not to renew this policy, we willgive written notice to the mortgageholder atleast 10 days before the expiration date ofthis policy.

G. Optional CoveragesIf shown as applicable in the Declarations, thefollowing Optional Coverages apply separately toeach item:

1. Agreed Valuea. The Additional Condition, Coinsurance,

does not apply to Covered Property towhich this Optional Coverage applies. Wewill pay no more for loss of or damage tothat property than the proportion that theLimit of Insurance under this Coverage Partfor the property bears to the Agreed Valueshown for it in the Declarations.

b. If the expiration date for this OptionalCoverage shown in the Declarations is notextended, the Additional Condition,Coinsurance, is reinstated and this OptionalCoverage expires.

c. The terms of this Optional Coverage applyonly to loss or damage that occurs:

(1) On or after the effective date of thisOptional Coverage; and

(2) Before the Agreed Value expiration dateshown in the Declarations or the policyexpiration date, whichever occurs first.

2. Inflation Guarda. The Limit of Insurance for property to which

this Optional Coverage applies willautomatically increase by the annualpercentage shown in the Declarations.

b. The amount of increase will be:

(1) The Limit of Insurance that applied onthe most recent of the policy inceptiondate, the policy anniversary date, or anyother policy change amending the Limitof Insurance, times

(2) The percentage of annual increaseshown in the Declarations, expressed asa decimal (example: 8% is .08), times

(3) The number of days since the beginningof the current policy year or the effectivedate of the most recent policy changeamending the Limit of Insurance, dividedby 365.

Example

If: The applicable Limit of Insurance is: $ 100,000

The annual percentage increase is: 8%

The number of days since thebeginning of the policy year(or last policy change) is: 146

The amount of increase is:$100,000 x .08 x 146 365 = $ 3,200

3. Replacement Costa. Replacement Cost (without deduction for

depreciation) replaces Actual Cash Value inthe Loss Condition, Valuation, of thisCoverage Form.

b. This Optional Coverage does not apply to:

(1) Personal property of others;

(2) Contents of a residence; or

(3) Works of art, antiques or rare articles,including etchings, pictures, statuary,marbles, bronzes, porcelains and bric-a-brac.


Under the terms of this Replacement CostOptional Coverage, personal propertyowned indivisibly by all unit-owners, and theproperty covered under Paragraph A.1.a.(6)of this Coverage Form, are not consideredto be the personal property of others.

c. You may make a claim for loss or damagecovered by this insurance on an actual cashvalue basis instead of on a replacementcost basis. In the event you elect to haveloss or damage settled on an actual cashvalue basis, you may still make a claim forthe additional coverage this OptionalCoverage provides if you notify us of yourintent to do so within 180 days after the lossor damage.

d. We will not pay on a replacement cost basisfor any loss or damage:

(1) Until the lost or damaged property isactually repaired or replaced; and

(2) Unless the repair or replacement ismade as soon as reasonably possibleafter the loss or damage.

e. We will not pay more for loss or damage ona replacement cost basis than the least of(1), (2) or (3), subject to f. below:

(1) The Limit of Insurance applicable to thelost or damaged property;

(2) The cost to replace the lost or damagedproperty with other property:

(a) Of comparable material and quality;and

(b) Used for the same purpose; or

(3) The amount actually spent that isnecessary to repair or replace the lost ordamaged property.

If a building is rebuilt at a new premises, thecost described in e.(2) above is limited tothe cost which would have been incurred ifthe building had been rebuilt at the originalpremises.

f. The cost of repair or replacement does notinclude the increased cost attributable toenforcement of or compliance with anyordinance or law regulating theconstruction, use or repair of any property.

4. Extension Of Replacement Cost ToPersonal Property Of Othersa. If the Replacement Cost Optional Coverage

is shown as applicable in the Declarations,then this Extension may also be shown asapplicable. If the Declarations show thisExtension as applicable, then Paragraph3.b.(1) of the Replacement Cost OptionalCoverage is deleted and all other provisionsof the Replacement Cost OptionalCoverage apply to replacement cost onpersonal property of others.

b. With respect to replacement cost on thepersonal property of others, the followinglimitation applies:

If an item(s) of personal property of othersis subject to a written contract whichgoverns your liability for loss or damage tothat item(s), then valuation of that item(s)will be based on the amount for which youare liable under such contract, but not toexceed the lesser of the replacement costof the property or the applicable Limit ofInsurance.

H. Definitions1. "Fungus" means any type or form of fungus,

including mold or mildew, and any mycotoxins,spores, scents or by-products produced orreleased by fungi.

2. "Pollutants" means any solid, liquid, gaseous orthermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes materialsto be recycled, reconditioned or reclaimed.

3. "Stock" means merchandise held in storage orfor sale, raw materials and in-process orfinished goods, including supplies used in theirpacking or shipping.

POLICY NUMBER: COMMERCIAL PROPERTYCP 04 05 10 12



ORDINANCE OR LAW COVERAGEThis endorsement modifies insurance provided under the following:

BUILDING AND PERSONAL PROPERTY COVERAGE FORMCONDOMINIUM ASSOCIATION COVERAGE FORMSTANDARD PROPERTY POLICY

SCHEDULE

Building Number/Premises Number Coverage A

Coverage BLimit

Of Insurance

Coverage CLimit

Of Insurance

Coverage B And CCombined Limit

Of Insurance

/ $ $ $ *

/ $ $ $ *

/ $ $ $ *

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.*Do not enter a Blanket Limit of Insurance if individual Limits of Insurance are selected for Coverages B and C,or if one of these Coverages is not applicable.

A. Each Coverage – Coverage A, Coverage B andCoverage C – is provided under this endorsementonly if that Coverage(s) is chosen by entry in theabove Schedule and then only with respect to thebuilding identified for that Coverage(s) in theSchedule.

B. Application Of Coverage(s)The Coverage(s) provided by this endorsementapplies only if both B.1. and B.2. are satisfied andare then subject to the qualifications set forth inB.3.1. The ordinance or law:

a. Regulates the demolition, construction orrepair of buildings, or establishes zoning orland use requirements at the describedpremises; and

b. Is in force at the time of loss.But coverage under this endorsement applies onlyin response to the minimum requirements of theordinance or law. Losses and costs incurred incomplying with recommended actions orstandards that exceed actual requirements are notcovered under this endorsement.

2.a. The building sustains direct physicaldamage that is covered under this policyand as a result of such damage, you arerequired to comply with the ordinance orlaw; or

b. The building sustains both direct physicaldamage that is covered under this policyand direct physical damage that is notcovered under this policy, and as a result ofthe building damage in its entirety, you arerequired to comply with the ordinance orlaw.

c. But if the building sustains direct physicaldamage that is not covered under thispolicy, and such damage is the subject ofthe ordinance or law, then there is nocoverage under this endorsement even ifthe building has also sustained covereddirect physical damage.

110,000.001 1

D160896NC0198

✘


3. In the situation described in B.2.b. above, wewill not pay the full amount of loss otherwisepayable under the terms of Coverages A, B,and/or C of this endorsement. Instead, we willpay a proportion of such loss, meaning theproportion that the covered direct physicaldamage bears to the total direct physicaldamage.

(Section H. of this endorsement provides anexample of this procedure.)

However, if the covered direct physicaldamage, alone, would have resulted in arequirement to comply with the ordinance orlaw, then we will pay the full amount of lossotherwise payable under the terms ofCoverages A, B and/or C of this endorsement.

C. We will not pay under Coverage A, B or C of thisendorsement for:

1. Enforcement of or compliance with anyordinance or law which requires the demolition,repair, replacement, reconstruction, remodelingor remediation of property due tocontamination by "pollutants" or due to thepresence, growth, proliferation, spread or anyactivity of "fungus", wet or dry rot or bacteria; or

2. The costs associated with the enforcement ofor compliance with any ordinance or law whichrequires any insured or others to test for,monitor, clean up, remove, contain, treat,detoxify or neutralize, or in any way respond to,or assess the effects of "pollutants", "fungus",wet or dry rot or bacteria.

D. Coverage1. Coverage A – Coverage For Loss To The

Undamaged Portion Of The BuildingWith respect to the building that has sustainedcovered direct physical damage, we will payunder Coverage A for the loss in value of theundamaged portion of the building as aconsequence of a requirement to comply withan ordinance or law that requires demolition ofundamaged parts of the same building.

Coverage A is included within the Limit OfInsurance shown in the Declarations asapplicable to the covered building. Coverage Adoes not increase the Limit of Insurance.

2. Coverage B – Demolition Cost CoverageWith respect to the building that has sustainedcovered direct physical damage, we will paythe cost to demolish and clear the site ofundamaged parts of the same building as aconsequence of a requirement to comply withan ordinance or law that requires demolition ofsuch undamaged property.

The Coinsurance Additional Condition does notapply to Demolition Cost Coverage.

3. Coverage C – Increased Cost OfConstruction Coveragea. With respect to the building that has

sustained covered direct physical damage,we will pay the increased cost to:

(1) Repair or reconstruct damaged portionsof that building; and/or

(2) Reconstruct or remodel undamagedportions of that building, whether or notdemolition is required;

when the increased cost is a consequenceof a requirement to comply with theminimum standards of the ordinance or law.

However:

(1) This coverage applies only if therestored or remodeled property isintended for similar occupancy as thecurrent property, unless such occupancyis not permitted by zoning or land useordinance or law.

(2) We will not pay for the increased cost ofconstruction if the building is notrepaired, reconstructed or remodeled.

The Coinsurance Additional Condition doesnot apply to Increased Cost of ConstructionCoverage.

b. When a building is damaged or destroyedand Coverage C applies to that building inaccordance with 3.a. above, coverage forthe increased cost of construction alsoapplies to repair or reconstruction of thefollowing, subject to the same conditionsstated in 3.a.:

(1) The cost of excavations, grading,backfilling and filling;


(2) Foundation of the building;

(3) Pilings; and

(4) Underground pipes, flues and drains.

The items listed in b.(1) through b.(4)above are deleted from Property NotCovered, but only with respect to thecoverage described in this provision, 3.b.

E. Loss Payment1. All following loss payment provisions, E.2.

through E.5., are subject to the apportionmentprocedures set forth in Section B.3. of thisendorsement.

2. When there is a loss in value of an undamagedportion of a building to which Coverage Aapplies, the loss payment for that building,including damaged and undamaged portions,will be determined as follows:

a. If the Replacement Cost Coverage Optionapplies and the property is being repairedor replaced, on the same or anotherpremises, we will not pay more than thelesser of:

(1) The amount you would actually spend torepair, rebuild or reconstruct thebuilding, but not for more than theamount it would cost to restore thebuilding on the same premises and tothe same height, floor area, style andcomparable quality of the originalproperty insured; or

(2) The Limit Of Insurance shown in theDeclarations as applicable to thecovered building.

b. If the Replacement Cost Coverage Optionapplies and the property is not repaired orreplaced, or if the Replacement CostCoverage Option does not apply, we willnot pay more than the lesser of:

(1) The actual cash value of the building atthe time of loss; or

(2) The Limit Of Insurance shown in theDeclarations as applicable to thecovered building.

3. Unless Paragraph E.5. applies, loss paymentunder Coverage B – Demolition Cost Coveragewill be determined as follows:

We will not pay more than the lesser of thefollowing:

a. The amount you actually spend to demolishand clear the site of the describedpremises; or

b. The applicable Limit Of Insurance shownfor Coverage B in the Schedule above.

4. Unless Paragraph E.5. applies, loss paymentunder Coverage C – Increased Cost OfConstruction Coverage will be determined asfollows:

a. We will not pay under Coverage C:(1) Until the property is actually repaired or

replaced, at the same or anotherpremises; and

(2) Unless the repair or replacement ismade as soon as reasonably possibleafter the loss or damage, not to exceedtwo years. We may extend this period inwriting during the two years.

b. If the building is repaired or replaced at thesame premises, or if you elect to rebuild atanother premises, the most we will payunder Coverage C is the lesser of:

(1) The increased cost of construction atthe same premises; or

(2) The applicable Limit Of Insuranceshown for Coverage C in the Scheduleabove.

c. If the ordinance or law requires relocation toanother premises, the most we will payunder Coverage C is the lesser of:

(1) The increased cost of construction atthe new premises; or

(2) The applicable Limit Of Insuranceshown for Coverage C in the Scheduleabove.

5. If a Combined Limit Of Insurance is shown forCoverages B and C in the Schedule above,Paragraphs E.3. and E.4. of this endorsementdo not apply with respect to the building that issubject to the Combined Limit, and thefollowing loss payment provisions applyinstead:

The most we will pay, for the total of allcovered losses for Demolition Cost andIncreased Cost of Construction, is theCombined Limit Of Insurance shown forCoverages B and C in the Schedule above.Subject to this Combined Limit of Insurance,the following loss payment provisions apply:

a. For Demolition Cost, we will not pay morethan the amount you actually spend todemolish and clear the site of the describedpremises.


b. With respect to the Increased Cost ofConstruction:

(1) We will not pay for the increased cost ofconstruction:

(a) Until the property is actually repairedor replaced, at the same or anotherpremises; and

(b) Unless the repair or replacement ismade as soon as reasonablypossible after the loss or damage,not to exceed two years. We mayextend this period in writing duringthe two years.

(2) If the building is repaired or replaced atthe same premises, or if you elect torebuild at another premises, the mostwe will pay for the increased cost ofconstruction is the increased cost ofconstruction at the same premises.

(3) If the ordinance or law requiresrelocation to another premises, the mostwe will pay for the increased cost ofconstruction is the increased cost ofconstruction at the new premises.

F. The terms of this endorsement apply separately toeach building to which this endorsement applies.

G. Under this endorsement we will not pay for lossdue to any ordinance or law that:

1. You were required to comply with before theloss, even if the building was undamaged; and

2. You failed to comply with.

H. Example of proportionate loss payment forOrdinance Or Law Coverage Losses (procedureas set forth in Section B.3. of this endorsement).

Assume:

Wind is a Covered Cause of Loss; Flood is anexcluded Cause of Loss

The building has a value of $200,000

Total direct physical damage to building:$100,000

The ordinance or law in this jurisdiction isenforced when building damage equals orexceeds 50% of the building's value

Portion of direct physical damage that iscovered (caused by wind): $30,000

Portion of direct physical damage that is notcovered (caused by flood): $70,000

Loss under Ordinance Or Law Coverage C ofthis endorsement: $60,000

Step 1: Determine the proportion that the covereddirect physical damage bears to the totaldirect physical damage.

$30,000 $100,000 = .30

Step 2: Apply that proportion to the Ordinance orLaw loss.

$60,000 x .30 = $18,000

In this example, the most we will pay under thisendorsement for the Coverage C loss is $18,000,subject to the applicable Limit of Insurance andany other applicable provisions.

Note: The same procedure applies to lossesunder Coverages A and B of this endorsement.

I. The following definition is added:

"Fungus" means any type or form of fungus,including mold or mildew, and any mycotoxins,spores, scents or by-products produced orreleased by fungi.

APPLICABLE LAW (U.S.A.)

This Insurance shall be subject to the applicable state law to be determined by the court of competent jurisdiction as determined by the provisions of the Service of Suit Clause (U.S.A.)

14/09/2005 LMA5021 Form approved by Lloyd’s Market Association

SEVERAL LIABILITY NOTICE

The subscribing insurers' obligations under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing insurers are not responsible for the subscription of any co-subscribing insurer who for any reason does not satisfy all or part of its obligations. LSW1001 (Insurance)

ASBESTOS ENDORSEMENT

A. This Policy only insures asbestos physically incorporated in an insured building or structure, and then only that part of the asbestos which has been physically damaged during the period of insurance by one of these Listed Perils:

fire; explosion; lightning; windstorm; hail; direct impact of vehicle, aircraft or vessel; riot or civil commotion, vandalism or malicious mischief; or accidental discharge of fire protective equipment.

This coverage is subject to each of the following specific limitations:

1. The said building or structure must be insured under this Policy for damage by that Listed Peril.

2. The Listed Peril must be the immediate, sole cause of the damage of the asbestos.

3. The Assured must report to Underwriters the existence and cost of the damage as soon as practicable after the Listed Peril first damaged the asbestos. However, this Policy does not insure any such damage first reported to the Underwriters more than 12 (twelve) months after the expiration, or termination, of the period of insurance.

4. Insurance under this Policy in respect of asbestos shall not include any sum relating to:

(i) any faults in the design, manufacture or installation of the asbestos;

(ii) asbestos not physically damaged by the Listed Peril including any governmental or regulatory authority direction or request of whatsoever nature relating to undamaged asbestos.

B. Except as set forth in the foregoing Section A, this Policy does not insure asbestos or any sum relating thereto.


U.S. Terrorism Risk Insurance Act of 2002 as amendedNot Purchased Clause

This Clause is issued in accordance with the terms and conditions of the "U.S. TerrorismRisk Insurance Act of 2002" as amended as summarized in the disclosure notice.

It is hereby noted that the Underwriters have made available coverage for “insured losses”directly resulting from an "act of terrorism" as defined in the "U.S. Terrorism Risk InsuranceAct of 2002", as amended (“TRIA”) and the Insured has declined or not confirmed topurchase this coverage.

This Insurance therefore affords no coverage for losses directly resulting from any "act ofterrorism" as defined in TRIA except to the extent, if any, otherwise provided by thispolicy.

All other terms, conditions, insured coverage and exclusions of this Insurance includingapplicable limits and deductibles remain unchanged and apply in full force and effect tothe coverage provided by this Insurance.

LMA5219

12 January 2015

SERVICE OF SUIT CLAUSE (U.S.A.)

This Service of Suit Clause will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in any Arbitration provision within this Policy. This Clause is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to such Arbitration provision for resolving disputes arising out of this contract of insurance (or reinsurance).

It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, the Underwriters hereon, at the request of the Insured (or Reinsured), will submit to the jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of Underwriters' rights to commence an action in any Court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of the United States or of any State in the United States.

It is further agreed that service of process in such suit may be made upon

U.S.A.

and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suit and/or upon the request of the Insured (or Reinsured) to give a written undertaking to the Insured (or Reinsured) that they will enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured (or Reinsured) or any beneficiary hereunder arising out of this contract of insurance (or reinsurance), and hereby designate the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.


750 Seventh AvenueNew York, NY 10019-6829

Mendes & Mount

SERVICE OF SUIT CLAUSE (U.S.A.)

It is agreed that in the event of the failure of the Underwriters hereon to pay any amount claimed to be due hereunder, theUnderwriters hereon, at the request of the Insured (or Reinsured), will submit to the jurisdiction of a Court of competentjurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver ofUnderwriters' rights to commence an acton in any Court of competent jurisdiction in the United States, to remove anaction to a United States District Court, or to seek a transfer of a case to another Court as permitted by the laws of theunited States or of any State in the United States.

USA

and that in any suit instituted against any one of them upon this contract, Underwriters will abide by the final decision ofsuch Court or of any Appellate Court in the event of any appeal.

The above-named are authorized and directed to accept service of process on behalf of Underwriters in any such suitand/or upon the request of the Insured (or Reinsured) to give a written undertaking to the Insured (or Reinsured) that theywill enter a general appearance upon Underwriters' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor,Underwriters hereon hereby designate the Superintendent, Commissioner or Director of Insurance or other officerspecified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney uponwhom may be served any lawful process in any action, suit or preceeding instituted by or on behalf of the Insured (orReinsured) or any beneficiary hereunder arising out of this contract of insurance (or reinsurance), and hereby designate theabove-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.

(24/4/86NMA 1998)Form approved by Lloyd's Underwriters' Non-Marine Association

750 Seventh AvenueNew York, NY 10019-6829

Mendes & Mount

IL 00 21 09 08



NUCLEAR ENERGY LIABILITY EXCLUSIONENDORSEMENT

(Broad Form)


COMMERCIAL AUTOMOBILE COVERAGE PARTCOMMERCIAL GENERAL LIABILITY COVERAGE PARTFARM COVERAGE PARTLIQUOR LIABILITY COVERAGE PARTMEDICAL PROFESSIONAL LIABILITY COVERAGE PARTOWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PARTPOLLUTION LIABILITY COVERAGE PARTPRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PARTRAILROAD PROTECTIVE LIABILITY COVERAGE PARTUNDERGROUND STORAGE TANK POLICY

1. The insurance does not apply:A. Under any Liability Coverage, to "bodily injury"

or "property damage":(1) With respect to which an "insured" under

the policy is also an insured under a nucle-ar energy liability policy issued by NuclearEnergy Liability Insurance Association, Mu-tual Atomic Energy Liability Underwriters,Nuclear Insurance Association of Canadaor any of their successors, or would be aninsured under any such policy but for itstermination upon exhaustion of its limit of li-ability; or

(2) Resulting from the "hazardous properties"of "nuclear material" and with respect towhich (a) any person or organization is re-quired to maintain financial protection pur-suant to the Atomic Energy Act of 1954, orany law amendatory thereof, or (b) the "in-sured" is, or had this policy not been issuedwould be, entitled to indemnity from theUnited States of America, or any agencythereof, under any agreement entered intoby the United States of America, or anyagency thereof, with any person or organi-zation.

B. Under any Medical Payments coverage, toexpenses incurred with respect to "bodily inju-ry" resulting from the "hazardous properties" of"nuclear material" and arising out of the opera-tion of a "nuclear facility" by any person or or-ganization.

C. Under any Liability Coverage, to "bodily injury"or "property damage" resulting from "hazard-ous properties" of "nuclear material", if:

(1) The "nuclear material" (a) is at any "nuclearfacility" owned by, or operated by or on be-half of, an "insured" or (b) has been dis-charged or dispersed therefrom;

(2) The "nuclear material" is contained in"spent fuel" or "waste" at any time pos-sessed, handled, used, processed, stored,transported or disposed of, by or on behalfof an "insured"; or

(3) The "bodily injury" or "property damage"arises out of the furnishing by an "insured"of services, materials, parts or equipment inconnection with the planning, construction,maintenance, operation or use of any "nu-clear facility", but if such facility is locatedwithin the United States of America, its terri-tories or possessions or Canada, this ex-clusion (3) applies only to "property dam-age" to such "nuclear facility" and anyproperty thereat.

2. As used in this endorsement:"Hazardous properties" includes radioactive, toxicor explosive properties."Nuclear material" means "source material", "spe-cial nuclear material" or "by-product material".

Page 2 of 2 © ISO Properties, Inc., 2007 IL 00 21 09 08

"Source material", "special nuclear material", and"by-product material" have the meanings giventhem in the Atomic Energy Act of 1954 or in anylaw amendatory thereof.

"Spent fuel" means any fuel element or fuel com-ponent, solid or liquid, which has been used or ex-posed to radiation in a "nuclear reactor".

"Waste" means any waste material (a) containing"by-product material" other than the tailings orwastes produced by the extraction or concentra-tion of uranium or thorium from any ore processedprimarily for its "source material" content, and (b)resulting from the operation by any person or or-ganization of any "nuclear facility" included underthe first two paragraphs of the definition of "nucle-ar facility".

"Nuclear facility" means:

(a) Any "nuclear reactor";

(b) Any equipment or device designed or usedfor (1) separating the isotopes of uranium orplutonium, (2) processing or utilizing "spentfuel", or (3) handling, processing or packag-ing "waste";

(c) Any equipment or device used for the pro-cessing, fabricating or alloying of "specialnuclear material" if at any time the totalamount of such material in the custody ofthe "insured" at the premises where suchequipment or device is located consists ofor contains more than 25 grams of plutoni-um or uranium 233 or any combinationthereof, or more than 250 grams of uranium235;

(d) Any structure, basin, excavation, premisesor place prepared or used for the storage ordisposal of "waste";

and includes the site on which any of the foregoingis located, all operations conducted on such siteand all premises used for such operations.

"Nuclear reactor" means any apparatus designedor used to sustain nuclear fission in a self-supporting chain reaction or to contain a criticalmass of fissionable material.

"Property damage" includes all forms of radioac-tive contamination of property.

20 December 2016 @ 15:05:30 | 13137 | Page 1 of 1

Attaching to and forming part of Certificate Number: ___________________________________

Authority Ref. : Hereon 100%

SCHEDULE OF LLOYD’S UNDERWRITERS

100.0000% 4000 PEM

100.0000%

D160896NC0198

B1180D170896



CAUSES OF LOSS – SPECIAL FORM

Words and phrases that appear in quotation marks have special meaning. Refer to Section G. Definitions.

A. Covered Causes Of LossWhen Special is shown in the Declarations,Covered Causes of Loss means direct physicalloss unless the loss is excluded or limited in thispolicy.

B. Exclusions1. We will not pay for loss or damage caused

directly or indirectly by any of the following.Such loss or damage is excluded regardless ofany other cause or event that contributesconcurrently or in any sequence to the loss.a. Ordinance Or Law

The enforcement of or compliance with anyordinance or law:

(1) Regulating the construction, use orrepair of any property; or

(2) Requiring the tearing down of anyproperty, including the cost of removingits debris.

This exclusion, Ordinance Or Law, applieswhether the loss results from:

(a) An ordinance or law that is enforcedeven if the property has not beendamaged; or

(b) The increased costs incurred tocomply with an ordinance or law inthe course of construction, repair,renovation, remodeling or demolitionof property, or removal of its debris,following a physical loss to thatproperty.

b. Earth Movement(1) Earthquake, including tremors and

aftershocks and any earth sinking, risingor shifting related to such event;

(2) Landslide, including any earth sinking,rising or shifting related to such event;

(3) Mine subsidence, meaning subsidenceof a man-made mine, whether or notmining activity has ceased;

(4) Earth sinking (other than sinkholecollapse), rising or shifting including soilconditions which cause settling,cracking or other disarrangement offoundations or other parts of realty. Soilconditions include contraction,expansion, freezing, thawing, erosion,improperly compacted soil and theaction of water under the groundsurface.

But if Earth Movement, as described inb.(1) through (4) above, results in fire orexplosion, we will pay for the loss ordamage caused by that fire or explosion.

(5) Volcanic eruption, explosion or effusion.But if volcanic eruption, explosion oreffusion results in fire, building glassbreakage or Volcanic Action, we will payfor the loss or damage caused by thatfire, building glass breakage or VolcanicAction.Volcanic Action means direct loss ordamage resulting from the eruption of avolcano when the loss or damage iscaused by:

(a) Airborne volcanic blast or airborneshock waves;

(b) Ash, dust or particulate matter; or(c) Lava flow.With respect to coverage for VolcanicAction as set forth in (5)(a), (5)(b) and(5)(c), all volcanic eruptions that occurwithin any 168-hour period will constitutea single occurrence.Volcanic Action does not include thecost to remove ash, dust or particulatematter that does not cause directphysical loss or damage to thedescribed property.

This exclusion applies regardless ofwhether any of the above, in Paragraphs(1) through (5), is caused by an act ofnature or is otherwise caused.


c. Governmental ActionSeizure or destruction of property by orderof governmental authority.

But we will pay for loss or damage causedby or resulting from acts of destructionordered by governmental authority andtaken at the time of a fire to prevent itsspread, if the fire would be covered underthis Coverage Part.

d. Nuclear HazardNuclear reaction or radiation, or radioactivecontamination, however caused.

But if nuclear reaction or radiation, orradioactive contamination, results in fire, wewill pay for the loss or damage caused bythat fire.

e. Utility ServicesThe failure of power, communication, wateror other utility service supplied to thedescribed premises, however caused, if thefailure:

(1) Originates away from the describedpremises; or

(2) Originates at the described premises,but only if such failure involvesequipment used to supply the utilityservice to the described premises froma source away from the describedpremises.

Failure of any utility service includes lack ofsufficient capacity and reduction in supply.

Loss or damage caused by a surge ofpower is also excluded, if the surge wouldnot have occurred but for an event causinga failure of power.

But if the failure or surge of power, or thefailure of communication, water or otherutility service, results in a Covered Cause ofLoss, we will pay for the loss or damagecaused by that Covered Cause of Loss.

Communication services include but are notlimited to service relating to Internet accessor access to any electronic, cellular orsatellite network.

f. War And Military Action(1) War, including undeclared or civil war;

(2) Warlike action by a military force,including action in hindering ordefending against an actual or expectedattack, by any government, sovereign orother authority using military personnelor other agents; or

(3) Insurrection, rebellion, revolution,usurped power, or action taken bygovernmental authority in hindering ordefending against any of these.

g. Water(1) Flood, surface water, waves (including

tidal wave and tsunami), tides, tidalwater, overflow of any body of water, orspray from any of these, all whether ornot driven by wind (including stormsurge);

(2) Mudslide or mudflow;

(3) Water that backs up or overflows or isotherwise discharged from a sewer,drain, sump, sump pump or relatedequipment;

(4) Water under the ground surfacepressing on, or flowing or seepingthrough:

(a) Foundations, walls, floors or pavedsurfaces;

(b) Basements, whether paved or not; or

(c) Doors, windows or other openings;or

(5) Waterborne material carried orotherwise moved by any of the waterreferred to in Paragraph (1), (3) or (4),or material carried or otherwise movedby mudslide or mudflow.

This exclusion applies regardless ofwhether any of the above, in Paragraphs(1) through (5), is caused by an act ofnature or is otherwise caused. An exampleof a situation to which this exclusion appliesis the situation where a dam, levee, seawallor other boundary or containment systemfails in whole or in part, for any reason, tocontain the water.

But if any of the above, in Paragraphs (1)through (5), results in fire, explosion orsprinkler leakage, we will pay for the loss ordamage caused by that fire, explosion orsprinkler leakage (if sprinkler leakage is aCovered Cause of Loss).

h. "Fungus", Wet Rot, Dry Rot AndBacteriaPresence, growth, proliferation, spread orany activity of "fungus", wet or dry rot orbacteria.

But if "fungus", wet or dry rot or bacteriaresult in a "specified cause of loss", we willpay for the loss or damage caused by that"specified cause of loss".


This exclusion does not apply:

(1) When "fungus", wet or dry rot or bacteriaresult from fire or lightning; or

(2) To the extent that coverage is providedin the Additional Coverage, LimitedCoverage For "Fungus", Wet Rot, DryRot And Bacteria, with respect to loss ordamage by a cause of loss other thanfire or lightning.

Exclusions B.1.a. through B.1.h. apply whetheror not the loss event results in widespreaddamage or affects a substantial area.

2. We will not pay for loss or damage caused byor resulting from any of the following:

a. Artificially generated electrical, magnetic orelectromagnetic energy that damages,disturbs, disrupts or otherwise interfereswith any:

(1) Electrical or electronic wire, device,appliance, system or network; or

(2) Device, appliance, system or networkutilizing cellular or satellite technology.

For the purpose of this exclusion, electrical,magnetic or electromagnetic energyincludes but is not limited to:

(a) Electrical current, including arcing;

(b) Electrical charge produced orconducted by a magnetic orelectromagnetic field;

(c) Pulse of electromagnetic energy; or

(d) Electromagnetic waves ormicrowaves.

But if fire results, we will pay for the loss ordamage caused by that fire.

b. Delay, loss of use or loss of market.

c. Smoke, vapor or gas from agriculturalsmudging or industrial operations.

d.(1) Wear and tear;

(2) Rust or other corrosion, decay,deterioration, hidden or latent defect orany quality in property that causes it todamage or destroy itself;

(3) Smog;

(4) Settling, cracking, shrinking orexpansion;

(5) Nesting or infestation, or discharge orrelease of waste products or secretions,by insects, birds, rodents or otheranimals.

(6) Mechanical breakdown, includingrupture or bursting caused by centrifugalforce. But if mechanical breakdownresults in elevator collision, we will payfor the loss or damage caused by thatelevator collision.

(7) The following causes of loss to personalproperty:

(a) Dampness or dryness ofatmosphere;

(b) Changes in or extremes oftemperature; or

(c) Marring or scratching.

But if an excluded cause of loss that islisted in 2.d.(1) through (7) results in a"specified cause of loss" or building glassbreakage, we will pay for the loss ordamage caused by that "specified cause ofloss" or building glass breakage.

e. Explosion of steam boilers, steam pipes,steam engines or steam turbines owned orleased by you, or operated under yourcontrol. But if explosion of steam boilers,steam pipes, steam engines or steamturbines results in fire or combustionexplosion, we will pay for the loss ordamage caused by that fire or combustionexplosion. We will also pay for loss ordamage caused by or resulting from theexplosion of gases or fuel within the furnaceof any fired vessel or within the flues orpassages through which the gases ofcombustion pass.

f. Continuous or repeated seepage orleakage of water, or the presence orcondensation of humidity, moisture orvapor, that occurs over a period of 14 daysor more.

g. Water, other liquids, powder or moltenmaterial that leaks or flows from plumbing,heating, air conditioning or other equipment(except fire protective systems) caused byor resulting from freezing, unless:

(1) You do your best to maintain heat in thebuilding or structure; or


(2) You drain the equipment and shut offthe supply if the heat is not maintained.

h. Dishonest or criminal act (including theft) byyou, any of your partners, members,officers, managers, employees (includingtemporary employees and leased workers),directors, trustees or authorizedrepresentatives, whether acting alone or incollusion with each other or with any otherparty; or theft by any person to whom youentrust the property for any purpose,whether acting alone or in collusion withany other party.

This exclusion:

(1) Applies whether or not an act occursduring your normal hours of operation;

(2) Does not apply to acts of destruction byyour employees (including temporaryemployees and leased workers) orauthorized representatives; but theft byyour employees (including temporaryemployees and leased workers) orauthorized representatives is notcovered.

i. Voluntary parting with any property by youor anyone else to whom you have entrustedthe property if induced to do so by anyfraudulent scheme, trick, device or falsepretense.

j. Rain, snow, ice or sleet to personalproperty in the open.

k. Collapse, including any of the followingconditions of property or any part of theproperty:

(1) An abrupt falling down or caving in;

(2) Loss of structural integrity, includingseparation of parts of the property orproperty in danger of falling down orcaving in; or

(3) Any cracking, bulging, sagging, bending,leaning, settling, shrinkage or expansionas such condition relates to (1) or (2)above.

But if collapse results in a Covered Causeof Loss at the described premises, we willpay for the loss or damage caused by thatCovered Cause of Loss.

This exclusion, k., does not apply:

(a) To the extent that coverage isprovided under the AdditionalCoverage, Collapse; or

(b) To collapse caused by one or moreof the following:

(i) The "specified causes of loss";

(ii) Breakage of building glass;

(iii) Weight of rain that collects on aroof; or

(iv) Weight of people or personalproperty.

l. Discharge, dispersal, seepage, migration,release or escape of "pollutants" unless thedischarge, dispersal, seepage, migration,release or escape is itself caused by any ofthe "specified causes of loss". But if thedischarge, dispersal, seepage, migration,release or escape of "pollutants" results in a"specified cause of loss", we will pay for theloss or damage caused by that "specifiedcause of loss".

This exclusion, I., does not apply todamage to glass caused by chemicalsapplied to the glass.

m. Neglect of an insured to use all reasonablemeans to save and preserve property fromfurther damage at and after the time of loss.

3. We will not pay for loss or damage caused byor resulting from any of the following, 3.a.through 3.c. But if an excluded cause of lossthat is listed in 3.a. through 3.c. results in aCovered Cause of Loss, we will pay for theloss or damage caused by that Covered Causeof Loss.

a. Weather conditions. But this exclusion onlyapplies if weather conditions contribute inany way with a cause or event excluded inParagraph 1. above to produce the loss ordamage.

b. Acts or decisions, including the failure to actor decide, of any person, group,organization or governmental body.

c. Faulty, inadequate or defective:

(1) Planning, zoning, development,surveying, siting;

(2) Design, specifications, workmanship,repair, construction, renovation,remodeling, grading, compaction;

(3) Materials used in repair, construction,renovation or remodeling; or

(4) Maintenance;

of part or all of any property on or off thedescribed premises.


4. Special ExclusionsThe following provisions apply only to thespecified Coverage Forms:

a. Business Income (And Extra Expense)Coverage Form, Business Income(Without Extra Expense) Coverage Form,Or Extra Expense Coverage FormWe will not pay for:

(1) Any loss caused by or resulting from:

(a) Damage or destruction of "finishedstock"; or

(b) The time required to reproduce"finished stock".

This exclusion does not apply to ExtraExpense.

(2) Any loss caused by or resulting fromdirect physical loss or damage to radioor television antennas (including satellitedishes) and their lead-in wiring, masts ortowers.

(3) Any increase of loss caused by orresulting from:

(a) Delay in rebuilding, repairing orreplacing the property or resuming"operations", due to interference atthe location of the rebuilding, repairor replacement by strikers or otherpersons; or

(b) Suspension, lapse or cancellation ofany license, lease or contract. But ifthe suspension, lapse or cancellationis directly caused by the"suspension" of "operations", we willcover such loss that affects yourBusiness Income during the "periodof restoration" and any extension ofthe "period of restoration" inaccordance with the terms of theExtended Business IncomeAdditional Coverage and theExtended Period Of IndemnityOptional Coverage or any variationof these.

(4) Any Extra Expense caused by orresulting from suspension, lapse orcancellation of any license, lease orcontract beyond the "period ofrestoration".

(5) Any other consequential loss.

b. Leasehold Interest Coverage Form(1) Paragraph B.1.a., Ordinance Or Law,

does not apply to insurance under thisCoverage Form.

(2) We will not pay for any loss caused by:

(a) Your cancelling the lease;

(b) The suspension, lapse orcancellation of any license; or

(c) Any other consequential loss.

c. Legal Liability Coverage Form(1) The following exclusions do not apply to

insurance under this Coverage Form:

(a) Paragraph B.1.a. Ordinance Or Law;

(b) Paragraph B.1.c. GovernmentalAction;

(c) Paragraph B.1.d. Nuclear Hazard;

(d) Paragraph B.1.e. Utility Services;and

(e) Paragraph B.1.f. War And MilitaryAction.

(2) The following additional exclusionsapply to insurance under this CoverageForm:

(a) Contractual LiabilityWe will not defend any claim or"suit", or pay damages that you arelegally liable to pay, solely by reasonof your assumption of liability in acontract or agreement. But thisexclusion does not apply to a writtenlease agreement in which you haveassumed liability for building damageresulting from an actual or attemptedburglary or robbery, provided that:

(i) Your assumption of liability wasexecuted prior to the accident;and

(ii) The building is Covered Propertyunder this Coverage Form.

(b) Nuclear HazardWe will not defend any claim or"suit", or pay any damages, loss,expense or obligation, resulting fromnuclear reaction or radiation, orradioactive contamination, howevercaused.


5. Additional ExclusionThe following provisions apply only to thespecified property:

Loss Or Damage To ProductsWe will not pay for loss or damage to anymerchandise, goods or other product causedby or resulting from error or omission by anyperson or entity (including those havingpossession under an arrangement where workor a portion of the work is outsourced) in anystage of the development, production or use ofthe product, including planning, testing,processing, packaging, installation,maintenance or repair. This exclusion appliesto any effect that compromises the form,substance or quality of the product. But if sucherror or omission results in a Covered Cause ofLoss, we will pay for the loss or damagecaused by that Covered Cause of Loss.

C. LimitationsThe following limitations apply to all policy formsand endorsements, unless otherwise stated:

1. We will not pay for loss of or damage toproperty, as described and limited in thissection. In addition, we will not pay for any lossthat is a consequence of loss or damage asdescribed and limited in this section.

a. Steam boilers, steam pipes, steam enginesor steam turbines caused by or resultingfrom any condition or event inside suchequipment. But we will pay for loss of ordamage to such equipment caused by orresulting from an explosion of gases or fuelwithin the furnace of any fired vessel orwithin the flues or passages through whichthe gases of combustion pass.

b. Hot water boilers or other water heatingequipment caused by or resulting from anycondition or event inside such boilers orequipment, other than an explosion.

c. The interior of any building or structure, orto personal property in the building orstructure, caused by or resulting from rain,snow, sleet, ice, sand or dust, whetherdriven by wind or not, unless:

(1) The building or structure first sustainsdamage by a Covered Cause of Loss toits roof or walls through which the rain,snow, sleet, ice, sand or dust enters; or

(2) The loss or damage is caused by orresults from thawing of snow, sleet orice on the building or structure.

d. Building materials and supplies notattached as part of the building or structure,caused by or resulting from theft.

However, this limitation does not apply to:

(1) Building materials and supplies held forsale by you, unless they are insuredunder the Builders Risk Coverage Form;or

(2) Business Income Coverage or ExtraExpense Coverage.

e. Property that is missing, where the onlyevidence of the loss or damage is ashortage disclosed on taking inventory, orother instances where there is no physicalevidence to show what happened to theproperty.

f. Property that has been transferred to aperson or to a place outside the describedpremises on the basis of unauthorizedinstructions.

g. Lawns, trees, shrubs or plants which arepart of a vegetated roof, caused by orresulting from:

(1) Dampness or dryness of atmosphere orof soil supporting the vegetation;

(2) Changes in or extremes of temperature;

(3) Disease;

(4) Frost or hail; or

(5) Rain, snow, ice or sleet.

2. We will not pay for loss of or damage to thefollowing types of property unless caused bythe "specified causes of loss" or building glassbreakage:

a. Animals, and then only if they are killed ortheir destruction is made necessary.

b. Fragile articles such as statuary, marbles,chinaware and porcelains, if broken. Thisrestriction does not apply to:

(1) Glass; or

(2) Containers of property held for sale.

c. Builders' machinery, tools and equipmentowned by you or entrusted to you, providedsuch property is Covered Property.

However, this limitation does not apply:

(1) If the property is located on or within100 feet of the described premises,unless the premises is insured under theBuilders Risk Coverage Form; or

(2) To Business Income Coverage or toExtra Expense Coverage.


3. The special limit shown for each category, a.through d., is the total limit for loss of ordamage to all property in that category. Thespecial limit applies to any one occurrence oftheft, regardless of the types or number ofarticles that are lost or damaged in thatoccurrence. The special limits are (unless ahigher limit is shown in the Declarations):

a. $2,500 for furs, fur garments and garmentstrimmed with fur.

b. $2,500 for jewelry, watches, watchmovements, jewels, pearls, precious andsemiprecious stones, bullion, gold, silver,platinum and other precious alloys ormetals. This limit does not apply to jewelryand watches worth $100 or less per item.

c. $2,500 for patterns, dies, molds and forms.

d. $250 for stamps, tickets, including lotterytickets held for sale, and letters of credit.

These special limits are part of, not in additionto, the Limit of Insurance applicable to theCovered Property.

This limitation, C.3., does not apply toBusiness Income Coverage or to ExtraExpense Coverage.

4. We will not pay the cost to repair any defect toa system or appliance from which water, otherliquid, powder or molten material escapes. Butwe will pay the cost to repair or replacedamaged parts of fire-extinguishing equipmentif the damage:

a. Results in discharge of any substance froman automatic fire protection system; or

b. Is directly caused by freezing.

However, this limitation does not apply toBusiness Income Coverage or to ExtraExpense Coverage.

D. Additional Coverage – CollapseThe coverage provided under this AdditionalCoverage, Collapse, applies only to an abruptcollapse as described and limited in D.1. throughD.7.1. For the purpose of this Additional Coverage,

Collapse, abrupt collapse means an abruptfalling down or caving in of a building or anypart of a building with the result that thebuilding or part of the building cannot beoccupied for its intended purpose.

2. We will pay for direct physical loss or damageto Covered Property, caused by abruptcollapse of a building or any part of a buildingthat is insured under this Coverage Form orthat contains Covered Property insured underthis Coverage Form, if such collapse is causedby one or more of the following:

a. Building decay that is hidden from view,unless the presence of such decay isknown to an insured prior to collapse;

b. Insect or vermin damage that is hiddenfrom view, unless the presence of suchdamage is known to an insured prior tocollapse;

c. Use of defective material or methods inconstruction, remodeling or renovation if theabrupt collapse occurs during the course ofthe construction, remodeling or renovation.

d. Use of defective material or methods inconstruction, remodeling or renovation if theabrupt collapse occurs after theconstruction, remodeling or renovation iscomplete, but only if the collapse is causedin part by:

(1) A cause of loss listed in 2.a. or 2.b.;(2) One or more of the "specified causes of

loss";

(3) Breakage of building glass;

(4) Weight of people or personal property;or

(5) Weight of rain that collects on a roof.

3. This Additional Coverage – Collapse doesnot apply to:

a. A building or any part of a building that is indanger of falling down or caving in;

b. A part of a building that is standing, even ifit has separated from another part of thebuilding; or

c. A building that is standing or any part of abuilding that is standing, even if it showsevidence of cracking, bulging, sagging,bending, leaning, settling, shrinkage orexpansion.

4. With respect to the following property:

a. Outdoor radio or television antennas(including satellite dishes) and their lead-inwiring, masts or towers;


b. Awnings, gutters and downspouts;

c. Yard fixtures;

d. Outdoor swimming pools;

e. Fences;

f. Piers, wharves and docks;

g. Beach or diving platforms orappurtenances;

h. Retaining walls; and

i. Walks, roadways and other paved surfaces;

if an abrupt collapse is caused by a cause ofloss listed in 2.a. through 2.d., we will pay forloss or damage to that property only if:

(1) Such loss or damage is a direct result ofthe abrupt collapse of a building insuredunder this Coverage Form; and

(2) The property is Covered Property underthis Coverage Form.

5. If personal property abruptly falls down orcaves in and such collapse is not the result ofabrupt collapse of a building, we will pay forloss or damage to Covered Property caused bysuch collapse of personal property only if:

a. The collapse of personal property wascaused by a cause of loss listed in 2.a.through 2.d.;

b. The personal property which collapses isinside a building; and

c. The property which collapses is not of akind listed in 4., regardless of whether thatkind of property is considered to bepersonal property or real property.

The coverage stated in this Paragraph 5. doesnot apply to personal property if marring and/orscratching is the only damage to that personalproperty caused by the collapse.

6. This Additional Coverage, Collapse, does notapply to personal property that has not abruptlyfallen down or caved in, even if the personalproperty shows evidence of cracking, bulging,sagging, bending, leaning, settling, shrinkageor expansion.

7. This Additional Coverage, Collapse, will notincrease the Limits of Insurance provided inthis Coverage Part.

8. The term Covered Cause of Loss includes theAdditional Coverage, Collapse, as describedand limited in D.1. through D.7.

E. Additional Coverage – Limited Coverage For"Fungus", Wet Rot, Dry Rot And Bacteria1. The coverage described in E.2. and E.6. only

applies when the "fungus", wet or dry rot orbacteria are the result of one or more of thefollowing causes that occur during the policyperiod and only if all reasonable means wereused to save and preserve the property fromfurther damage at the time of and after thatoccurrence:

a. A "specified cause of loss" other than fire orlightning; or

b. Flood, if the Flood Coverage Endorsementapplies to the affected premises.

This Additional Coverage does not apply tolawns, trees, shrubs or plants which are part ofa vegetated roof.

2. We will pay for loss or damage by "fungus",wet or dry rot or bacteria. As used in thisLimited Coverage, the term loss or damagemeans:

a. Direct physical loss or damage to CoveredProperty caused by "fungus", wet or dry rotor bacteria, including the cost of removal ofthe "fungus", wet or dry rot or bacteria;

b. The cost to tear out and replace any part ofthe building or other property as needed togain access to the "fungus", wet or dry rotor bacteria; and

c. The cost of testing performed after removal,repair, replacement or restoration of thedamaged property is completed, providedthere is a reason to believe that "fungus",wet or dry rot or bacteria are present.

3. The coverage described under E.2. of thisLimited Coverage is limited to $15,000.Regardless of the number of claims, this limit isthe most we will pay for the total of all loss ordamage arising out of all occurrences of"specified causes of loss" (other than fire orlightning) and Flood which take place in a 12-month period (starting with the beginning of thepresent annual policy period). With respect to aparticular occurrence of loss which results in"fungus", wet or dry rot or bacteria, we will notpay more than a total of $15,000 even if the"fungus", wet or dry rot or bacteria continue tobe present or active, or recur, in a later policyperiod.


4. The coverage provided under this LimitedCoverage does not increase the applicableLimit of Insurance on any Covered Property. Ifa particular occurrence results in loss ordamage by "fungus", wet or dry rot or bacteria,and other loss or damage, we will not paymore, for the total of all loss or damage, thanthe applicable Limit of Insurance on theaffected Covered Property.

If there is covered loss or damage to CoveredProperty, not caused by "fungus", wet or dry rotor bacteria, loss payment will not be limited bythe terms of this Limited Coverage, except tothe extent that "fungus", wet or dry rot orbacteria cause an increase in the loss. Anysuch increase in the loss will be subject to theterms of this Limited Coverage.

5. The terms of this Limited Coverage do notincrease or reduce the coverage providedunder Paragraph F.2. (Water Damage, OtherLiquids, Powder Or Molten Material Damage)of this Causes Of Loss form or under theAdditional Coverage, Collapse.

6. The following, 6.a. or 6.b., applies only ifBusiness Income and/or Extra ExpenseCoverage applies to the described premisesand only if the "suspension" of "operations"satisfies all terms and conditions of theapplicable Business Income and/or ExtraExpense Coverage Form:

a. If the loss which resulted in "fungus", wet ordry rot or bacteria does not in itselfnecessitate a "suspension" of "operations",but such "suspension" is necessary due toloss or damage to property caused by"fungus", wet or dry rot or bacteria, then ourpayment under Business Income and/orExtra Expense is limited to the amount ofloss and/or expense sustained in a periodof not more than 30 days. The days neednot be consecutive.

b. If a covered "suspension" of "operations"was caused by loss or damage other than"fungus", wet or dry rot or bacteria butremediation of "fungus", wet or dry rot orbacteria prolongs the "period of restoration",we will pay for loss and/or expensesustained during the delay (regardless ofwhen such a delay occurs during the"period of restoration"), but such coverageis limited to 30 days. The days need not beconsecutive.

F. Additional Coverage Extensions1. Property In Transit

This Extension applies only to your personalproperty to which this form applies.

a. You may extend the insurance provided bythis Coverage Part to apply to yourpersonal property (other than property inthe care, custody or control of yoursalespersons) in transit more than 100 feetfrom the described premises. Property mustbe in or on a motor vehicle you own, leaseor operate while between points in thecoverage territory.

b. Loss or damage must be caused by orresult from one of the following causes ofloss:

(1) Fire, lightning, explosion, windstorm orhail, riot or civil commotion, orvandalism.

(2) Vehicle collision, upset or overturn.Collision means accidental contact ofyour vehicle with another vehicle orobject. It does not mean your vehicle'scontact with the roadbed.

(3) Theft of an entire bale, case or packageby forced entry into a securely lockedbody or compartment of the vehicle.There must be visible marks of theforced entry.

c. The most we will pay for loss or damageunder this Extension is $5,000.

This Coverage Extension is additionalinsurance. The Additional Condition,Coinsurance, does not apply to this Extension.

2. Water Damage, Other Liquids, Powder OrMolten Material DamageIf loss or damage caused by or resulting fromcovered water or other liquid, powder or moltenmaterial damage loss occurs, we will also paythe cost to tear out and replace any part of thebuilding or structure to repair damage to thesystem or appliance from which the water orother substance escapes. This CoverageExtension does not increase the Limit ofInsurance.

3. Glassa. We will pay for expenses incurred to put up

temporary plates or board up openings ifrepair or replacement of damaged glass isdelayed.


b. We will pay for expenses incurred toremove or replace obstructions whenrepairing or replacing glass that is part of abuilding. This does not include removing orreplacing window displays.

This Coverage Extension F.3. does notincrease the Limit of Insurance.

G. Definitions1. "Fungus" means any type or form of fungus,


2. "Specified causes of loss" means the following:fire; lightning; explosion; windstorm or hail;smoke; aircraft or vehicles; riot or civilcommotion; vandalism; leakage from fire-extinguishing equipment; sinkhole collapse;volcanic action; falling objects; weight of snow,ice or sleet; water damage.

a. Sinkhole collapse means the suddensinking or collapse of land into undergroundempty spaces created by the action ofwater on limestone or dolomite. This causeof loss does not include:

(1) The cost of filling sinkholes; or

(2) Sinking or collapse of land into man-made underground cavities.

b. Falling objects does not include loss ordamage to:

(1) Personal property in the open; or

(2) The interior of a building or structure, orproperty inside a building or structure,unless the roof or an outside wall of thebuilding or structure is first damaged bya falling object.

c. Water damage means:

(1) Accidental discharge or leakage ofwater or steam as the direct result of thebreaking apart or cracking of aplumbing, heating, air conditioning orother system or appliance (other than asump system including its relatedequipment and parts), that is located onthe described premises and containswater or steam; and

(2) Accidental discharge or leakage ofwater or waterborne material as thedirect result of the breaking apart orcracking of a water or sewer pipe that islocated off the described premises andis part of a municipal potable watersupply system or municipal sanitarysewer system, if the breakage orcracking is caused by wear and tear.

But water damage does not include loss ordamage otherwise excluded under theterms of the Water Exclusion. Therefore, forexample, there is no coverage under thispolicy in the situation in which discharge orleakage of water results from the breakingapart or cracking of a pipe which wascaused by or related to weather-inducedflooding, even if wear and tearcontributed to the breakage or cracking. Asanother example, and also in accordancewith the terms of the Water Exclusion, thereis no coverage for loss or damage causedby or related to weather-induced floodingwhich follows or is exacerbated by pipebreakage or cracking attributable to wearand tear.

To the extent that accidental discharge orleakage of water falls within the criteria setforth in c.(1) or c.(2) of this definition of"specified causes of loss," such water is notsubject to the provisions of the WaterExclusion which preclude coverage forsurface water or water under the surface ofthe ground.



BUILDING AND PERSONAL PROPERTYCOVERAGE FORM

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties andwhat is and is not covered.Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. Thewords "we", "us" and "our" refer to the company providing this insurance.Other words and phrases that appear in quotation marks have special meaning. Refer to Section H. Definitions.

A. CoverageWe will pay for direct physical loss of or damage toCovered Property at the premises described in theDeclarations caused by or resulting from anyCovered Cause of Loss.1. Covered Property

Covered Property, as used in this CoveragePart, means the type of property described inthis section, A.1., and limited in A.2. PropertyNot Covered, if a Limit Of Insurance is shownin the Declarations for that type of property.a. Building, meaning the building or structure

described in the Declarations, including:(1) Completed additions;(2) Fixtures, including outdoor fixtures;(3) Permanently installed:

(a) Machinery; and(b) Equipment;

(4) Personal property owned by you that isused to maintain or service the buildingor structure or its premises, including:

(a) Fire-extinguishing equipment;(b) Outdoor furniture;(c) Floor coverings; and(d) Appliances used for refrigerating,

ventilating, cooking, dishwashing orlaundering;

(5) If not covered by other insurance:(a) Additions under construction,

alterations and repairs to the buildingor structure;

(b) Materials, equipment, supplies andtemporary structures, on or within100 feet of the described premises,used for making additions,alterations or repairs to the buildingor structure.

b. Your Business Personal Propertyconsists of the following property located inor on the building or structure described inthe Declarations or in the open (or in avehicle) within 100 feet of the building orstructure or within 100 feet of the premisesdescribed in the Declarations, whicheverdistance is greater:

(1) Furniture and fixtures;(2) Machinery and equipment;(3) "Stock";(4) All other personal property owned by

you and used in your business;(5) Labor, materials or services furnished or

arranged by you on personal property ofothers;

(6) Your use interest as tenant inimprovements and betterments.Improvements and betterments arefixtures, alterations, installations oradditions:

(a) Made a part of the building orstructure you occupy but do not own;and

(b) You acquired or made at yourexpense but cannot legally remove;

(7) Leased personal property for which youhave a contractual responsibility toinsure, unless otherwise provided forunder Personal Property Of Others.

c. Personal Property Of Others that is:(1) In your care, custody or control; and(2) Located in or on the building or structure

described in the Declarations or in theopen (or in a vehicle) within 100 feet ofthe building or structure or within 100feet of the premises described in theDeclarations, whichever distance isgreater.


However, our payment for loss of ordamage to personal property of others willonly be for the account of the owner of theproperty.

2. Property Not CoveredCovered Property does not include:

a. Accounts, bills, currency, food stamps orother evidences of debt, money, notes orsecurities. Lottery tickets held for sale arenot securities;

b. Animals, unless owned by others andboarded by you, or if owned by you, only as"stock" while inside of buildings;

c. Automobiles held for sale;

d. Bridges, roadways, walks, patios or otherpaved surfaces;

e. Contraband, or property in the course ofillegal transportation or trade;

f. The cost of excavations, grading, backfillingor filling;

g. Foundations of buildings, structures,machinery or boilers if their foundations arebelow:

(1) The lowest basement floor; or

(2) The surface of the ground, if there is nobasement;

h. Land (including land on which the propertyis located), water, growing crops or lawns(other than lawns which are part of avegetated roof);

i. Personal property while airborne orwaterborne;

j. Bulkheads, pilings, piers, wharves or docks;

k. Property that is covered under anothercoverage form of this or any other policy inwhich it is more specifically described,except for the excess of the amount due(whether you can collect on it or not) fromthat other insurance;

l. Retaining walls that are not part of abuilding;

m. Underground pipes, flues or drains;

n. Electronic data, except as provided underthe Additional Coverage, Electronic Data.Electronic data means information, facts orcomputer programs stored as or on,created or used on, or transmitted to orfrom computer software (including systemsand applications software), on hard orfloppy disks, CD-ROMs, tapes, drives, cells,data processing devices or any otherrepositories of computer software which areused with electronically controlledequipment. The term computer programs,referred to in the foregoing description ofelectronic data, means a set of relatedelectronic instructions which direct theoperations and functions of a computer ordevice connected to it, which enable thecomputer or device to receive, process,store, retrieve or send data. Thisparagraph, n., does not apply to your"stock" of prepackaged software, or toelectronic data which is integrated in andoperates or controls the building's elevator,lighting, heating, ventilation, air conditioningor security system;

o. The cost to replace or restore theinformation on valuable papers andrecords, including those which exist aselectronic data. Valuable papers andrecords include but are not limited toproprietary information, books of account,deeds, manuscripts, abstracts, drawingsand card index systems. Refer to theCoverage Extension for Valuable PapersAnd Records (Other Than Electronic Data)for limited coverage for valuable papers andrecords other than those which exist aselectronic data;

p. Vehicles or self-propelled machines(including aircraft or watercraft) that:

(1) Are licensed for use on public roads; or

(2) Are operated principally away from thedescribed premises.

This paragraph does not apply to:

(a) Vehicles or self-propelled machinesor autos you manufacture, processor warehouse;


(b) Vehicles or self-propelled machines,other than autos, you hold for sale;

(c) Rowboats or canoes out of water atthe described premises; or

(d) Trailers, but only to the extentprovided for in the CoverageExtension for Non-owned DetachedTrailers; or

q. The following property while outside ofbuildings:

(1) Grain, hay, straw or other crops;

(2) Fences, radio or television antennas(including satellite dishes) and theirlead-in wiring, masts or towers, trees,shrubs or plants (other than trees,shrubs or plants which are "stock" or arepart of a vegetated roof), all except asprovided in the Coverage Extensions.

3. Covered Causes Of LossSee applicable Causes Of Loss form as shownin the Declarations.

4. Additional Coveragesa. Debris Removal

(1) Subject to Paragraphs (2), (3) and (4),we will pay your expense to removedebris of Covered Property and otherdebris that is on the described premises,when such debris is caused by orresults from a Covered Cause of Lossthat occurs during the policy period. Theexpenses will be paid only if they arereported to us in writing within 180 daysof the date of direct physical loss ordamage.

(2) Debris Removal does not apply to coststo:

(a) Remove debris of property of yoursthat is not insured under this policy,or property in your possession that isnot Covered Property;

(b) Remove debris of property owned byor leased to the landlord of thebuilding where your describedpremises are located, unless youhave a contractual responsibility toinsure such property and it is insuredunder this policy;

(c) Remove any property that isProperty Not Covered, includingproperty addressed under theOutdoor Property CoverageExtension;

(d) Remove property of others of a typethat would not be Covered Propertyunder this Coverage Form;

(e) Remove deposits of mud or earthfrom the grounds of the describedpremises;

(f) Extract "pollutants" from land orwater; or

(g) Remove, restore or replace pollutedland or water.

(3) Subject to the exceptions in Paragraph(4), the following provisions apply:

(a) The most we will pay for the total ofdirect physical loss or damage plusdebris removal expense is the Limitof Insurance applicable to theCovered Property that has sustainedloss or damage.

(b) Subject to (a) above, the amount wewill pay for debris removal expenseis limited to 25% of the sum of thedeductible plus the amount that wepay for direct physical loss ordamage to the Covered Property thathas sustained loss or damage.However, if no Covered Property hassustained direct physical loss ordamage, the most we will pay forremoval of debris of other property (ifsuch removal is covered under thisAdditional Coverage) is $5,000 ateach location.

(4) We will pay up to an additional $25,000for debris removal expense, for eachlocation, in any one occurrence ofphysical loss or damage to CoveredProperty, if one or both of the followingcircumstances apply:

(a) The total of the actual debris removalexpense plus the amount we pay fordirect physical loss or damageexceeds the Limit of Insurance onthe Covered Property that hassustained loss or damage.

(b) The actual debris removal expenseexceeds 25% of the sum of thedeductible plus the amount that wepay for direct physical loss ordamage to the Covered Property thathas sustained loss or damage.


Therefore, if (4)(a) and/or (4)(b) applies,our total payment for direct physical lossor damage and debris removal expensemay reach but will never exceed theLimit of Insurance on the CoveredProperty that has sustained loss ordamage, plus $25,000.

(5) ExamplesThe following examples assume thatthere is no Coinsurance penalty.

Example 1





($50,000 – $500)


Debris Removal Expense Payable: $ 10,000

($10,000 is 20% of $50,000.)

The debris removal expense is less than 25% of thesum of the loss payable plus the deductible. The sumof the loss payable and the debris removal expense($49,500 + $10,000 = $59,500) is less than the Limitof Insurance. Therefore, the full amount of debrisremoval expense is payable in accordance with theterms of Paragraph (3).Example 2





($80,000 – $500)


Debris Removal Expense Payable

Basic Amount: $ 10,500

Additional Amount: $ 25,000

The basic amount payable for debris removalexpense under the terms of Paragraph (3) iscalculated as follows: $80,000 ($79,500 + $500) x .25= $20,000, capped at $10,500. The cap appliesbecause the sum of the loss payable ($79,500) andthe basic amount payable for debris removal expense($10,500) cannot exceed the Limit of Insurance($90,000).

The additional amount payable for debris removalexpense is provided in accordance with the terms ofParagraph (4), because the debris removal expense($40,000) exceeds 25% of the loss payable plus thedeductible ($40,000 is 50% of $80,000), and becausethe sum of the loss payable and debris removalexpense ($79,500 + $40,000 = $119,500) wouldexceed the Limit of Insurance ($90,000). Theadditional amount of covered debris removal expenseis $25,000, the maximum payable under Paragraph(4). Thus, the total payable for debris removalexpense in this example is $35,500; $4,500 of thedebris removal expense is not covered.

b. Preservation Of PropertyIf it is necessary to move Covered Propertyfrom the described premises to preserve itfrom loss or damage by a Covered Causeof Loss, we will pay for any direct physicalloss or damage to that property:

(1) While it is being moved or whiletemporarily stored at another location;and

(2) Only if the loss or damage occurs within30 days after the property is first moved.

c. Fire Department Service ChargeWhen the fire department is called to saveor protect Covered Property from aCovered Cause of Loss, we will pay up to$1,000 for service at each premisesdescribed in the Declarations, unless ahigher limit is shown in the Declarations.Such limit is the most we will payregardless of the number of responding firedepartments or fire units, and regardless ofthe number or type of services performed.

This Additional Coverage applies to yourliability for fire department service charges:

(1) Assumed by contract or agreement priorto loss; or

(2) Required by local ordinance.

No Deductible applies to this AdditionalCoverage.


d. Pollutant Clean-up And RemovalWe will pay your expense to extract"pollutants" from land or water at thedescribed premises if the discharge,dispersal, seepage, migration, release orescape of the "pollutants" is caused by orresults from a Covered Cause of Loss thatoccurs during the policy period. Theexpenses will be paid only if they arereported to us in writing within 180 days ofthe date on which the Covered Cause ofLoss occurs.

This Additional Coverage does not apply tocosts to test for, monitor or assess theexistence, concentration or effects of"pollutants". But we will pay for testingwhich is performed in the course ofextracting the "pollutants" from the land orwater.

The most we will pay under this AdditionalCoverage for each described premises is$10,000 for the sum of all coveredexpenses arising out of Covered Causes ofLoss occurring during each separate 12-month period of this policy.

e. Increased Cost Of Construction(1) This Additional Coverage applies only to

buildings to which the ReplacementCost Optional Coverage applies.

(2) In the event of damage by a CoveredCause of Loss to a building that isCovered Property, we will pay theincreased costs incurred to comply withthe minimum standards of an ordinanceor law in the course of repair, rebuildingor replacement of damaged parts of thatproperty, subject to the limitations statedin e.(3) through e.(9) of this AdditionalCoverage.

(3) The ordinance or law referred to in e.(2)of this Additional Coverage is anordinance or law that regulates theconstruction or repair of buildings orestablishes zoning or land userequirements at the described premisesand is in force at the time of loss.

(4) Under this Additional Coverage, we willnot pay any costs due to an ordinanceor law that:

(a) You were required to comply withbefore the loss, even when thebuilding was undamaged; and

(b) You failed to comply with.

(5) Under this Additional Coverage, we willnot pay for:

(a) The enforcement of or compliancewith any ordinance or law whichrequires demolition, repair,replacement, reconstruction,remodeling or remediation ofproperty due to contamination by"pollutants" or due to the presence,growth, proliferation, spread or anyactivity of "fungus", wet or dry rot orbacteria; or

(b) Any costs associated with theenforcement of or compliance withan ordinance or law which requiresany insured or others to test for,monitor, clean up, remove, contain,treat, detoxify or neutralize, or in anyway respond to, or assess theeffects of "pollutants", "fungus", wetor dry rot or bacteria.

(6) The most we will pay under thisAdditional Coverage, for each describedbuilding insured under this CoverageForm, is $10,000 or 5% of the Limit ofInsurance applicable to that building,whichever is less. If a damaged buildingis covered under a blanket Limit ofInsurance which applies to more thanone building or item of property, then themost we will pay under this AdditionalCoverage, for that damaged building, isthe lesser of $10,000 or 5% times thevalue of the damaged building as of thetime of loss times the applicableCoinsurance percentage.

The amount payable under thisAdditional Coverage is additionalinsurance.

(7) With respect to this AdditionalCoverage:

(a) We will not pay for the IncreasedCost of Construction:

(i) Until the property is actuallyrepaired or replaced at the sameor another premises; and

(ii) Unless the repair or replacementis made as soon as reasonablypossible after the loss ordamage, not to exceed twoyears. We may extend this periodin writing during the two years.


(b) If the building is repaired or replacedat the same premises, or if you electto rebuild at another premises, themost we will pay for the IncreasedCost of Construction, subject to theprovisions of e.(6) of this AdditionalCoverage, is the increased cost ofconstruction at the same premises.

(c) If the ordinance or law requiresrelocation to another premises, themost we will pay for the IncreasedCost of Construction, subject to theprovisions of e.(6) of this AdditionalCoverage, is the increased cost ofconstruction at the new premises.

(8) This Additional Coverage is not subjectto the terms of the Ordinance Or LawExclusion to the extent that suchExclusion would conflict with theprovisions of this Additional Coverage.

(9) The costs addressed in the LossPayment and Valuation Conditions andthe Replacement Cost OptionalCoverage, in this Coverage Form, donot include the increased costattributable to enforcement of orcompliance with an ordinance or law.The amount payable under thisAdditional Coverage, as stated in e.(6)of this Additional Coverage, is notsubject to such limitation.

f. Electronic Data(1) Under this Additional Coverage,

electronic data has the meaningdescribed under Property Not Covered,Electronic Data. This AdditionalCoverage does not apply to your "stock"of prepackaged software, or toelectronic data which is integrated inand operates or controls the building'selevator, lighting, heating, ventilation, airconditioning or security system.

(2) Subject to the provisions of thisAdditional Coverage, we will pay for thecost to replace or restore electronic datawhich has been destroyed or corruptedby a Covered Cause of Loss. To theextent that electronic data is notreplaced or restored, the loss will bevalued at the cost of replacement of themedia on which the electronic data wasstored, with blank media of substantiallyidentical type.

(3) The Covered Causes of Loss applicableto Your Business Personal Propertyapply to this Additional Coverage,Electronic Data, subject to the following:

(a) If the Causes Of Loss – SpecialForm applies, coverage under thisAdditional Coverage, ElectronicData, is limited to the "specifiedcauses of loss" as defined in thatform and Collapse as set forth in thatform.

(b) If the Causes Of Loss – Broad Formapplies, coverage under thisAdditional Coverage, ElectronicData, includes Collapse as set forthin that form.

(c) If the Causes Of Loss form isendorsed to add a Covered Cause ofLoss, the additional Covered Causeof Loss does not apply to thecoverage provided under thisAdditional Coverage, ElectronicData.

(d) The Covered Causes of Loss includea virus, harmful code or similarinstruction introduced into or enactedon a computer system (includingelectronic data) or a network towhich it is connected, designed todamage or destroy any part of thesystem or disrupt its normaloperation. But there is no coveragefor loss or damage caused by orresulting from manipulation of acomputer system (includingelectronic data) by any employee,including a temporary or leasedemployee, or by an entity retained byyou or for you to inspect, design,install, modify, maintain, repair orreplace that system.


(4) The most we will pay under thisAdditional Coverage, Electronic Data, is$2,500 (unless a higher limit is shown inthe Declarations) for all loss or damagesustained in any one policy year,regardless of the number of occurrencesof loss or damage or the number ofpremises, locations or computersystems involved. If loss payment on thefirst occurrence does not exhaust thisamount, then the balance is available forsubsequent loss or damage sustained inbut not after that policy year. Withrespect to an occurrence which beginsin one policy year and continues orresults in additional loss or damage in asubsequent policy year(s), all loss ordamage is deemed to be sustained inthe policy year in which the occurrencebegan.

5. Coverage ExtensionsExcept as otherwise provided, the followingExtensions apply to property located in or onthe building described in the Declarations or inthe open (or in a vehicle) within 100 feet of thedescribed premises.

If a Coinsurance percentage of 80% or more,or a Value Reporting period symbol, is shownin the Declarations, you may extend theinsurance provided by this Coverage Part asfollows:

a. Newly Acquired Or ConstructedProperty

(1) BuildingsIf this policy covers Building, you mayextend that insurance to apply to:

(a) Your new buildings while being builton the described premises; and

(b) Buildings you acquire at locations,other than the described premises,intended for:

(i) Similar use as the buildingdescribed in the Declarations; or

(ii) Use as a warehouse.


(2) Your Business Personal Property(a) If this policy covers Your Business

Personal Property, you may extendthat insurance to apply to:

(i) Business personal property,including such property that younewly acquire, at any locationyou acquire other than at fairs,trade shows or exhibitions; or

(ii) Business personal property,including such property that younewly acquire, located at yournewly constructed or acquiredbuildings at the locationdescribed in the Declarations.

The most we will pay for loss ordamage under this Extension is$100,000 at each building.

(b) This Extension does not apply to:

(i) Personal property of others thatis temporarily in your possessionin the course of installing orperforming work on suchproperty; or

(ii) Personal property of others thatis temporarily in your possessionin the course of yourmanufacturing or wholesalingactivities.

(3) Period Of CoverageWith respect to insurance providedunder this Coverage Extension forNewly Acquired Or ConstructedProperty, coverage will end when any ofthe following first occurs:

(a) This policy expires;

(b) 30 days expire after you acquire theproperty or begin construction of thatpart of the building that would qualifyas covered property; or

(c) You report values to us.

We will charge you additional premiumfor values reported from the date youacquire the property or beginconstruction of that part of the buildingthat would qualify as covered property.


b. Personal Effects And Property Of OthersYou may extend the insurance that appliesto Your Business Personal Property toapply to:

(1) Personal effects owned by you, yourofficers, your partners or members, yourmanagers or your employees. ThisExtension does not apply to loss ordamage by theft.

(2) Personal property of others in your care,custody or control.

The most we will pay for loss or damageunder this Extension is $2,500 at eachdescribed premises. Our payment for lossof or damage to personal property of otherswill only be for the account of the owner ofthe property.

c. Valuable Papers And Records (OtherThan Electronic Data)

(1) You may extend the insurance thatapplies to Your Business PersonalProperty to apply to the cost to replaceor restore the lost information onvaluable papers and records for whichduplicates do not exist. But thisExtension does not apply to valuablepapers and records which exist aselectronic data. Electronic data has themeaning described under Property NotCovered, Electronic Data.

(2) If the Causes Of Loss – Special Formapplies, coverage under this Extensionis limited to the "specified causes ofloss" as defined in that form andCollapse as set forth in that form.

(3) If the Causes Of Loss – Broad Formapplies, coverage under this Extensionincludes Collapse as set forth in thatform.

(4) Under this Extension, the most we willpay to replace or restore the lostinformation is $2,500 at each describedpremises, unless a higher limit is shownin the Declarations. Such amount isadditional insurance. We will also payfor the cost of blank material forreproducing the records (whether or notduplicates exist) and (when there is aduplicate) for the cost of labor totranscribe or copy the records. Thecosts of blank material and labor aresubject to the applicable Limit ofInsurance on Your Business PersonalProperty and, therefore, coverage ofsuch costs is not additional insurance.

d. Property Off-premises(1) You may extend the insurance provided

by this Coverage Form to apply to yourCovered Property while it is away fromthe described premises, if it is:

(a) Temporarily at a location you do notown, lease or operate;

(b) In storage at a location you lease,provided the lease was executedafter the beginning of the currentpolicy term; or

(c) At any fair, trade show or exhibition.

(2) This Extension does not apply toproperty:

(a) In or on a vehicle; or

(b) In the care, custody or control ofyour salespersons, unless theproperty is in such care, custody orcontrol at a fair, trade show orexhibition.

(3) The most we will pay for loss or damageunder this Extension is $10,000.

e. Outdoor PropertyYou may extend the insurance provided bythis Coverage Form to apply to youroutdoor fences, radio and televisionantennas (including satellite dishes), trees,shrubs and plants (other than trees, shrubsor plants which are "stock" or are part of avegetated roof), including debris removalexpense, caused by or resulting from any ofthe following causes of loss if they areCovered Causes of Loss:

(1) Fire;

(2) Lightning;

(3) Explosion;

(4) Riot or Civil Commotion; or

(5) Aircraft.

The most we will pay for loss or damageunder this Extension is $1,000, but notmore than $250 for any one tree, shrub orplant. These limits apply to any oneoccurrence, regardless of the types ornumber of items lost or damaged in thatoccurrence.


Subject to all aforementioned terms andlimitations of coverage, this CoverageExtension includes the expense ofremoving from the described premises thedebris of trees, shrubs and plants which arethe property of others, except in thesituation in which you are a tenant and suchproperty is owned by the landlord of thedescribed premises.

f. Non-owned Detached Trailers(1) You may extend the insurance that

applies to Your Business PersonalProperty to apply to loss or damage totrailers that you do not own, providedthat:

(a) The trailer is used in your business;

(b) The trailer is in your care, custody orcontrol at the premises described inthe Declarations; and

(c) You have a contractual responsibilityto pay for loss or damage to thetrailer.

(2) We will not pay for any loss or damagethat occurs:

(a) While the trailer is attached to anymotor vehicle or motorizedconveyance, whether or not themotor vehicle or motorizedconveyance is in motion;

(b) During hitching or unhitchingoperations, or when a trailerbecomes accidentally unhitched froma motor vehicle or motorizedconveyance.

(3) The most we will pay for loss or damageunder this Extension is $5,000, unless ahigher limit is shown in the Declarations.

(4) This insurance is excess over theamount due (whether you can collect onit or not) from any other insurancecovering such property.

g. Business Personal Property TemporarilyIn Portable Storage Units

(1) You may extend the insurance thatapplies to Your Business PersonalProperty to apply to such property whiletemporarily stored in a portable storageunit (including a detached trailer)located within 100 feet of the building orstructure described in the Declarationsor within 100 feet of the premisesdescribed in the Declarations, whicheverdistance is greater.

(2) If the applicable Covered Causes ofLoss form or endorsement contains alimitation or exclusion concerning loss ordamage from sand, dust, sleet, snow,ice or rain to property in a structure,such limitation or exclusion also appliesto property in a portable storage unit.

(3) Coverage under this Extension:

(a) Will end 90 days after the businesspersonal property has been placed inthe storage unit;

(b) Does not apply if the storage unititself has been in use at thedescribed premises for more than 90consecutive days, even if thebusiness personal property has beenstored there for 90 or fewer days asof the time of loss or damage.

(4) Under this Extension, the most we willpay for the total of all loss or damage tobusiness personal property is $10,000(unless a higher limit is indicated in theDeclarations for such Extension)regardless of the number of storageunits. Such limit is part of, not in additionto, the applicable Limit of Insurance onYour Business Personal Property.Therefore, payment under thisExtension will not increase theapplicable Limit of Insurance on YourBusiness Personal Property.

(5) This Extension does not apply to loss ordamage otherwise covered under thisCoverage Form or any endorsement tothis Coverage Form or policy, and doesnot apply to loss or damage to thestorage unit itself.

Each of these Extensions is additionalinsurance unless otherwise indicated. TheAdditional Condition, Coinsurance, does notapply to these Extensions.

B. Exclusions And LimitationsSee applicable Causes Of Loss form as shown inthe Declarations.

C. Limits Of InsuranceThe most we will pay for loss or damage in anyone occurrence is the applicable Limit OfInsurance shown in the Declarations.

The most we will pay for loss or damage tooutdoor signs, whether or not the sign is attachedto a building, is $2,500 per sign in any oneoccurrence.


The amounts of insurance stated in the followingAdditional Coverages apply in accordance with theterms of such coverages and are separate fromthe Limit(s) Of Insurance shown in theDeclarations for any other coverage:

1. Fire Department Service Charge;

2. Pollutant Clean-up And Removal;

3. Increased Cost Of Construction; and

4. Electronic Data.

Payments under the Preservation Of PropertyAdditional Coverage will not increase theapplicable Limit of Insurance.

D. DeductibleIn any one occurrence of loss or damage(hereinafter referred to as loss), we will first reducethe amount of loss if required by the CoinsuranceCondition or the Agreed Value Optional Coverage.If the adjusted amount of loss is less than or equalto the Deductible, we will not pay for that loss. Ifthe adjusted amount of loss exceeds theDeductible, we will then subtract the Deductiblefrom the adjusted amount of loss and will pay theresulting amount or the Limit of Insurance,whichever is less.

When the occurrence involves loss to more thanone item of Covered Property and separate Limitsof Insurance apply, the losses will not becombined in determining application of theDeductible. But the Deductible will be applied onlyonce per occurrence.

Example 1(This example assumes there is no Coinsurancepenalty.)

Deductible: $ 250





The amount of loss to Building 1 ($60,100) is lessthan the sum ($60,250) of the Limit of Insuranceapplicable to Building 1 plus the Deductible.

The Deductible will be subtracted from the amount ofloss in calculating the loss payable for Building 1:

$ 60,100

– 250

$ 59,850 Loss Payable – Building 1

The Deductible applies once per occurrence andtherefore is not subtracted in determining the amountof loss payable for Building 2. Loss payable forBuilding 2 is the Limit of Insurance of $80,000.

Total amount of loss payable:

$59,850 + $80,000 = $139,850

Example 2(This example, too, assumes there is no Coinsurancepenalty.)

The Deductible and Limits of Insurance are the sameas those in Example 1.









Total amount of loss payable: $ 140,000

E. Loss ConditionsThe following conditions apply in addition to theCommon Policy Conditions and the CommercialProperty Conditions:

1. AbandonmentThere can be no abandonment of any propertyto us.

2. AppraisalIf we and you disagree on the value of theproperty or the amount of loss, either maymake written demand for an appraisal of theloss. In this event, each party will select acompetent and impartial appraiser. The twoappraisers will select an umpire. If they cannotagree, either may request that selection bemade by a judge of a court having jurisdiction.The appraisers will state separately the valueof the property and amount of loss. If they failto agree, they will submit their differences tothe umpire. A decision agreed to by any twowill be binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisaland umpire equally.

If there is an appraisal, we will still retain ourright to deny the claim.

3. Duties In The Event Of Loss Or Damagea. You must see that the following are done in

the event of loss or damage to CoveredProperty:

(1) Notify the police if a law may have beenbroken.


(2) Give us prompt notice of the loss ordamage. Include a description of theproperty involved.

(3) As soon as possible, give us adescription of how, when and where theloss or damage occurred.

(4) Take all reasonable steps to protect theCovered Property from further damage,and keep a record of your expensesnecessary to protect the CoveredProperty, for consideration in thesettlement of the claim. This will notincrease the Limit of Insurance.However, we will not pay for anysubsequent loss or damage resultingfrom a cause of loss that is not aCovered Cause of Loss. Also, iffeasible, set the damaged propertyaside and in the best possible order forexamination.

(5) At our request, give us completeinventories of the damaged andundamaged property. Include quantities,costs, values and amount of lossclaimed.

(6) As often as may be reasonably required,permit us to inspect the property provingthe loss or damage and examine yourbooks and records.

Also, permit us to take samples ofdamaged and undamaged property forinspection, testing and analysis, andpermit us to make copies from yourbooks and records.

(7) Send us a signed, sworn proof of losscontaining the information we request toinvestigate the claim. You must do thiswithin 60 days after our request. We willsupply you with the necessary forms.

(8) Cooperate with us in the investigation orsettlement of the claim.

b. We may examine any insured under oath,while not in the presence of any otherinsured and at such times as may bereasonably required, about any matterrelating to this insurance or the claim,including an insured's books and records. Inthe event of an examination, an insured'sanswers must be signed.

4. Loss Paymenta. In the event of loss or damage covered by

this Coverage Form, at our option, we willeither:

(1) Pay the value of lost or damagedproperty;

(2) Pay the cost of repairing or replacing thelost or damaged property, subject to b.below;

(3) Take all or any part of the property at anagreed or appraised value; or

(4) Repair, rebuild or replace the propertywith other property of like kind andquality, subject to b. below.

We will determine the value of lost ordamaged property, or the cost of its repairor replacement, in accordance with theapplicable terms of the Valuation Conditionin this Coverage Form or any applicableprovision which amends or supersedes theValuation Condition.

b. The cost to repair, rebuild or replace doesnot include the increased cost attributableto enforcement of or compliance with anyordinance or law regulating theconstruction, use or repair of any property.

c. We will give notice of our intentions within30 days after we receive the sworn proof ofloss.

d. We will not pay you more than yourfinancial interest in the Covered Property.

e. We may adjust losses with the owners oflost or damaged property if other than you.If we pay the owners, such payments willsatisfy your claims against us for theowners' property. We will not pay theowners more than their financial interest inthe Covered Property.

f. We may elect to defend you against suitsarising from claims of owners of property.We will do this at our expense.

g. We will pay for covered loss or damagewithin 30 days after we receive the swornproof of loss, if you have complied with allof the terms of this Coverage Part, and:

(1) We have reached agreement with youon the amount of loss; or

(2) An appraisal award has been made.


h. A party wall is a wall that separates and iscommon to adjoining buildings that areowned by different parties. In settlingcovered losses involving a party wall, wewill pay a proportion of the loss to the partywall based on your interest in the wall inproportion to the interest of the owner of theadjoining building. However, if you elect torepair or replace your building and theowner of the adjoining building elects not torepair or replace that building, we will payyou the full value of the loss to the partywall, subject to all applicable policyprovisions including Limits of Insurance, theValuation and Coinsurance Conditions andall other provisions of this Loss PaymentCondition. Our payment under theprovisions of this paragraph does not alterany right of subrogation we may haveagainst any entity, including the owner orinsurer of the adjoining building, and doesnot alter the terms of the Transfer Of RightsOf Recovery Against Others To UsCondition in this policy.

5. Recovered PropertyIf either you or we recover any property afterloss settlement, that party must give the otherprompt notice. At your option, the property willbe returned to you. You must then return to usthe amount we paid to you for the property. Wewill pay recovery expenses and the expensesto repair the recovered property, subject to theLimit of Insurance.

6. Vacancya. Description Of Terms

(1) As used in this Vacancy Condition, theterm building and the term vacant havethe meanings set forth in (1)(a) and(1)(b) below:

(a) When this policy is issued to atenant, and with respect to thattenant's interest in Covered Property,building means the unit or suiterented or leased to the tenant. Suchbuilding is vacant when it does notcontain enough business personalproperty to conduct customaryoperations.

(b) When this policy is issued to theowner or general lessee of abuilding, building means the entirebuilding. Such building is vacantunless at least 31% of its totalsquare footage is:

(i) Rented to a lessee or sublesseeand used by the lessee orsublessee to conduct itscustomary operations; and/or

(ii) Used by the building owner toconduct customary operations.

(2) Buildings under construction orrenovation are not considered vacant.

b. Vacancy ProvisionsIf the building where loss or damage occurshas been vacant for more than 60consecutive days before that loss ordamage occurs:

(1) We will not pay for any loss or damagecaused by any of the following, even ifthey are Covered Causes of Loss:

(a) Vandalism;

(b) Sprinkler leakage, unless you haveprotected the system againstfreezing;

(c) Building glass breakage;

(d) Water damage;

(e) Theft; or

(f) Attempted theft.

(2) With respect to Covered Causes of Lossother than those listed in b.(1)(a)through b.(1)(f) above, we will reducethe amount we would otherwise pay forthe loss or damage by 15%.

7. ValuationWe will determine the value of CoveredProperty in the event of loss or damage asfollows:

a. At actual cash value as of the time of lossor damage, except as provided in b., c., d.and e. below.

b. If the Limit of Insurance for Buildingsatisfies the Additional Condition,Coinsurance, and the cost to repair orreplace the damaged building property is$2,500 or less, we will pay the cost ofbuilding repairs or replacement.


The cost of building repairs or replacementdoes not include the increased costattributable to enforcement of orcompliance with any ordinance or lawregulating the construction, use or repair ofany property.

However, the following property will bevalued at the actual cash value, even whenattached to the building:

(1) Awnings or floor coverings;

(2) Appliances for refrigerating, ventilating,cooking, dishwashing or laundering; or

(3) Outdoor equipment or furniture.

c. "Stock" you have sold but not delivered atthe selling price less discounts andexpenses you otherwise would have had.

d. Glass at the cost of replacement withsafety-glazing material if required by law.

e. Tenants' Improvements and Betterments at:

(1) Actual cash value of the lost ordamaged property if you make repairspromptly.

(2) A proportion of your original cost if youdo not make repairs promptly. We willdetermine the proportionate value asfollows:

(a) Multiply the original cost by thenumber of days from the loss ordamage to the expiration of thelease; and

(b) Divide the amount determined in (a)above by the number of days fromthe installation of improvements tothe expiration of the lease.

If your lease contains a renewal option,the expiration of the renewal optionperiod will replace the expiration of thelease in this procedure.

(3) Nothing if others pay for repairs orreplacement.

F. Additional ConditionsThe following conditions apply in addition to theCommon Policy Conditions and the CommercialProperty Conditions:

1. CoinsuranceIf a Coinsurance percentage is shown in theDeclarations, the following condition applies:

a. We will not pay the full amount of any loss ifthe value of Covered Property at the time ofloss times the Coinsurance percentageshown for it in the Declarations is greaterthan the Limit of Insurance for the property.

Instead, we will determine the most we willpay using the following steps:

(1) Multiply the value of Covered Propertyat the time of loss by the Coinsurancepercentage;

(2) Divide the Limit of Insurance of theproperty by the figure determined inStep (1);

(3) Multiply the total amount of loss, beforethe application of any deductible, by thefigure determined in Step (2); and

(4) Subtract the deductible from the figuredetermined in Step (3).

We will pay the amount determined in Step(4) or the Limit of Insurance, whichever isless. For the remainder, you will either haveto rely on other insurance or absorb theloss yourself.

Example 1 (Underinsurance)






Step (1): $250,000 x 80% = $200,000

(the minimum amount of insurance tomeet your Coinsurance requirements)

Step (2): $100,000 $200,000 = .50

Step (3): $40,000 x .50 = $20,000

Step (4): $20,000 – $250 = $19,750


Example 2 (Adequate Insurance)






The minimum amount of insurance to meet yourCoinsurance requirement is $200,000 ($250,000 x80%). Therefore, the Limit of Insurance in thisexample is adequate, and no penalty applies. We willpay no more than $39,750 ($40,000 amount of lossminus the deductible of $250).


b. If one Limit of Insurance applies to two ormore separate items, this condition willapply to the total of all property to which thelimit applies.

Example 3

When: The value of the property is:




$ 250,000


The Limit of Insurance forBuildings and Personal Propertyat Locations 1 and 2 is: $ 180,000

The Deductible is: $ 1,000

The amount of loss is:



$ 50,000

Step (1): $250,000 x 90% = $225,000

(the minimum amount of insurance tomeet your Coinsurance requirementsand to avoid the penalty shown below)

Step (2): $180,000 $225,000 = .80

Step (3): $50,000 x .80 = $40,000

Step (4): $40,000 – $1,000 = $39,000


2. Mortgageholdersa. The term mortgageholder includes trustee.

b. We will pay for covered loss of or damageto buildings or structures to eachmortgageholder shown in the Declarationsin their order of precedence, as interestsmay appear.

c. The mortgageholder has the right to receiveloss payment even if the mortgageholderhas started foreclosure or similar action onthe building or structure.

d. If we deny your claim because of your actsor because you have failed to comply withthe terms of this Coverage Part, themortgageholder will still have the right toreceive loss payment if the mortgageholder:

(1) Pays any premium due under thisCoverage Part at our request if youhave failed to do so;

(2) Submits a signed, sworn proof of losswithin 60 days after receiving noticefrom us of your failure to do so; and

(3) Has notified us of any change inownership, occupancy or substantialchange in risk known to themortgageholder.

All of the terms of this Coverage Part willthen apply directly to the mortgageholder.

e. If we pay the mortgageholder for any lossor damage and deny payment to youbecause of your acts or because you havefailed to comply with the terms of thisCoverage Part:

(1) The mortgageholder's rights under themortgage will be transferred to us to theextent of the amount we pay; and

(2) The mortgageholder's right to recoverthe full amount of the mortgageholder'sclaim will not be impaired.

At our option, we may pay to themortgageholder the whole principal on themortgage plus any accrued interest. In thisevent, your mortgage and note will betransferred to us and you will pay yourremaining mortgage debt to us.

f. If we cancel this policy, we will give writtennotice to the mortgageholder at least:

(1) 10 days before the effective date ofcancellation if we cancel for yournonpayment of premium; or

(2) 30 days before the effective date ofcancellation if we cancel for any otherreason.

g. If we elect not to renew this policy, we willgive written notice to the mortgageholder atleast 10 days before the expiration date ofthis policy.

G. Optional CoveragesIf shown as applicable in the Declarations, thefollowing Optional Coverages apply separately toeach item:

1. Agreed Valuea. The Additional Condition, Coinsurance,

does not apply to Covered Property towhich this Optional Coverage applies. Wewill pay no more for loss of or damage tothat property than the proportion that theLimit of Insurance under this Coverage Partfor the property bears to the Agreed Valueshown for it in the Declarations.


b. If the expiration date for this OptionalCoverage shown in the Declarations is notextended, the Additional Condition,Coinsurance, is reinstated and this OptionalCoverage expires.

c. The terms of this Optional Coverage applyonly to loss or damage that occurs:

(1) On or after the effective date of thisOptional Coverage; and

(2) Before the Agreed Value expiration dateshown in the Declarations or the policyexpiration date, whichever occurs first.

2. Inflation Guarda. The Limit of Insurance for property to which

this Optional Coverage applies willautomatically increase by the annualpercentage shown in the Declarations.

b. The amount of increase will be:

(1) The Limit of Insurance that applied onthe most recent of the policy inceptiondate, the policy anniversary date, or anyother policy change amending the Limitof Insurance, times

(2) The percentage of annual increaseshown in the Declarations, expressed asa decimal (example: 8% is .08), times

(3) The number of days since the beginningof the current policy year or the effectivedate of the most recent policy changeamending the Limit of Insurance, dividedby 365.

Example

If: The applicable Limit of Insurance is: $ 100,000

The annual percentage increase is: 8%

The number of days since thebeginning of the policy year(or last policy change) is: 146

The amount of increase is:$100,000 x .08 x 146 365 = $ 3,200

3. Replacement Costa. Replacement Cost (without deduction for

depreciation) replaces Actual Cash Value inthe Valuation Loss Condition of thisCoverage Form.

b. This Optional Coverage does not apply to:

(1) Personal property of others;

(2) Contents of a residence;

(3) Works of art, antiques or rare articles,including etchings, pictures, statuary,marbles, bronzes, porcelains and bric-a-brac; or

(4) "Stock", unless the Including "Stock"option is shown in the Declarations.

Under the terms of this Replacement CostOptional Coverage, tenants' improvementsand betterments are not considered to bethe personal property of others.

c. You may make a claim for loss or damagecovered by this insurance on an actual cashvalue basis instead of on a replacementcost basis. In the event you elect to haveloss or damage settled on an actual cashvalue basis, you may still make a claim forthe additional coverage this OptionalCoverage provides if you notify us of yourintent to do so within 180 days after the lossor damage.

d. We will not pay on a replacement cost basisfor any loss or damage:

(1) Until the lost or damaged property isactually repaired or replaced; and

(2) Unless the repair or replacement ismade as soon as reasonably possibleafter the loss or damage.

With respect to tenants' improvements andbetterments, the following also apply:

(3) If the conditions in d.(1) and d.(2) aboveare not met, the value of tenants'improvements and betterments will bedetermined as a proportion of youroriginal cost, as set forth in theValuation Loss Condition of thisCoverage Form; and

(4) We will not pay for loss or damage totenants' improvements and bettermentsif others pay for repairs or replacement.

e. We will not pay more for loss or damage ona replacement cost basis than the least of(1), (2) or (3), subject to f. below:

(1) The Limit of Insurance applicable to thelost or damaged property;

(2) The cost to replace the lost or damagedproperty with other property:

(a) Of comparable material and quality;and

(b) Used for the same purpose; or

(3) The amount actually spent that isnecessary to repair or replace the lost ordamaged property.

If a building is rebuilt at a new premises, thecost described in e.(2) above is limited tothe cost which would have been incurred ifthe building had been rebuilt at the originalpremises.


f. The cost of repair or replacement does notinclude the increased cost attributable toenforcement of or compliance with anyordinance or law regulating theconstruction, use or repair of any property.

4. Extension Of Replacement Cost ToPersonal Property Of Othersa. If the Replacement Cost Optional Coverage

is shown as applicable in the Declarations,then this Extension may also be shown asapplicable. If the Declarations show thisExtension as applicable, then Paragraph3.b.(1) of the Replacement Cost OptionalCoverage is deleted and all other provisionsof the Replacement Cost OptionalCoverage apply to replacement cost onpersonal property of others.

b. With respect to replacement cost on thepersonal property of others, the followinglimitation applies:

If an item(s) of personal property of othersis subject to a written contract whichgoverns your liability for loss or damage tothat item(s), then valuation of that item(s)will be based on the amount for which youare liable under such contract, but not toexceed the lesser of the replacement costof the property or the applicable Limit ofInsurance.

H. Definitions1. "Fungus" means any type or form of fungus,


2. "Pollutants" means any solid, liquid, gaseous orthermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis,chemicals and waste. Waste includes materialsto be recycled, reconditioned or reclaimed.

3. "Stock" means merchandise held in storage orfor sale, raw materials and in-process orfinished goods, including supplies used in theirpacking or shipping.

COMMERCIAL PROPERTY

CP 00 90 07 88 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 Page 1 of 2

COMMERCIAL PROPERTY CONDITIONSThis Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable LossConditions and Additional Conditions in Commercial Property Coverage Forms.

A. CONCEALMENT, MISREPRESENTATION ORFRAUDThis Coverage Part is void in any case of fraud byyou as it relates to this Coverage Part at any time.It is also void if you or any other insured, at anytime, intentionally conceal or misrepresent a mate-rial fact concerning:1. This Coverage Part;2. The Covered Property;3. Your interest in the Covered Property; or4. A claim under this Coverage Part.

B. CONTROL OF PROPERTYAny act or neglect of any person other than youbeyond your direction or control will not affect thisinsurance.The breach of any condition of this Coverage Partat any one or more locations will not affect cover-age at any location where, at the time of loss ordamage, the breach of condition does not exist.

C. INSURANCE UNDER TWO OR MORE COVER-AGESIf two or more of this policy's coverages apply tothe same loss or damage, we will not pay morethan the actual amount of the loss or damage.

D. LEGAL ACTION AGAINST USNo one may bring a legal action against us underthis Coverage Part unless:1. There has been full compliance with all of the

terms of this Coverage Part; and2. The action is brought within 2 years after the

date on which the direct physical loss or dam-age occurred.

E. LIBERALIZATIONIf we adopt any revision that would broaden thecoverage under this Coverage Part without addi-tional premium within 45 days prior to or during thepolicy period, the broadened coverage will imme-diately apply to this Coverage Part.

F. NO BENEFIT TO BAILEENo person or organization, other than you, havingcustody of Covered Property will benefit from thisinsurance.

G. OTHER INSURANCE1. You may have other insurance subject to the

same plan, terms, conditions and provisions asthe insurance under this Coverage Part. If youdo, we will pay our share of the covered loss ordamage. Our share is the proportion that theapplicable Limit of Insurance under this Cover-age Part bears to the Limits of Insurance of allinsurance covering on the same basis.

2. If there is other insurance covering the sameloss or damage, other than that described in 1.above, we will pay only for the amount of cov-ered loss or damage in excess of the amountdue from that other insurance, whether you cancollect on it or not. But we will not pay morethan the applicable Limit of Insurance.

H. POLICY PERIOD, COVERAGE TERRITORYUnder this Coverage Part:1. We cover loss or damage commencing:

a. During the policy period shown in the Decla-rations; and

b. Within the coverage territory.2. The coverage territory is:

a. The United States of America (including itsterritories and possessions);

b. Puerto Rico; andc. Canada.

Page 2 of 2 Copyright, ISO Commercial Risk Services, Inc., 1983, 1987 CP 00 90 07 88

I. TRANSFER OF RIGHTS OF RECOVERYAGAINST OTHERS TO USIf any person or organization to or for whom wemake payment under this Coverage Part has rightsto recover damages from another, those rights aretransferred to us to the extent of our payment. Thatperson or organization must do everything neces-sary to secure our rights and must do nothing afterloss to impair them. But you may waive your rightsagainst another party in writing:

1. Prior to a loss to your Covered Property orCovered Income.

2. After a loss to your Covered Property or Cov-ered Income only if, at time of loss, that party isone of the following:a. Someone insured by this insurance;b. A business firm:

(1) Owned or controlled by you; or(2) That owns or controls you; or

c. Your tenant.This will not restrict your insurance.

IL 00 17 11 98

IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 1

COMMON POLICY CONDITIONSAll Coverage Parts included in this policy are subject to the following conditions.

A. Cancellation1. The first Named Insured shown in the Declara-

tions may cancel this policy by mailing or deliv-ering to us advance written notice of cancella-tion.

2. We may cancel this policy by mailing or deliver-ing to the first Named Insured written notice ofcancellation at least:a. 10 days before the effective date of cancel-

lation if we cancel for nonpayment of premi-um; or

b. 30 days before the effective date of cancel-lation if we cancel for any other reason.

3. We will mail or deliver our notice to the firstNamed Insured's last mailing address known tous.

4. Notice of cancellation will state the effectivedate of cancellation. The policy period will endon that date.

5. If this policy is cancelled, we will send the firstNamed Insured any premium refund due. If wecancel, the refund will be pro rata. If the firstNamed Insured cancels, the refund may beless than pro rata. The cancellation will be ef-fective even if we have not made or offered arefund.

6. If notice is mailed, proof of mailing will be suffi-cient proof of notice.

B. ChangesThis policy contains all the agreements betweenyou and us concerning the insurance afforded.The first Named Insured shown in the Declarationsis authorized to make changes in the terms of thispolicy with our consent. This policy's terms can beamended or waived only by endorsement issuedby us and made a part of this policy.

C. Examination Of Your Books And RecordsWe may examine and audit your books and rec-ords as they relate to this policy at any time duringthe policy period and up to three years afterward.

D. Inspections And Surveys1. We have the right to:

a. Make inspections and surveys at any time;

b. Give you reports on the conditions we find;and

c. Recommend changes.2. We are not obligated to make any inspections,

surveys, reports or recommendations and anysuch actions we do undertake relate only to in-surability and the premiums to be charged. Wedo not make safety inspections. We do not un-dertake to perform the duty of any person ororganization to provide for the health or safetyof workers or the public. And we do not warrantthat conditions:a. Are safe or healthful; orb. Comply with laws, regulations, codes or

standards.3. Paragraphs 1. and 2. of this condition apply not

only to us, but also to any rating, advisory, rateservice or similar organization which makes in-surance inspections, surveys, reports or rec-ommendations.

4. Paragraph 2. of this condition does not apply toany inspections, surveys, reports or recom-mendations we may make relative to certifica-tion, under state or municipal statutes, ordi-nances or regulations, of boilers, pressure ves-sels or elevators.

E. PremiumsThe first Named Insured shown in the Declara-tions:1. Is responsible for the payment of all premiums;

and2. Will be the payee for any return premiums we

pay.F. Transfer Of Your Rights And Duties Under This

PolicyYour rights and duties under this policy may not betransferred without our written consent except inthe case of death of an individual named insured.If you die, your rights and duties will be transferredto your legal representative but only while actingwithin the scope of duties as your legal representa-tive. Until your legal representative is appointed,anyone having proper temporary custody of yourproperty will have your rights and duties but onlywith respect to that property.

IL 09 35 07 02



EXCLUSION OF CERTAIN COMPUTER-RELATED LOSSES


COMMERCIAL INLAND MARINE COVERAGE PARTCOMMERCIAL PROPERTY COVERAGE PARTCRIME AND FIDELITY COVERAGE PARTSTANDARD PROPERTY POLICY

A. We will not pay for loss ("loss") or damage causeddirectly or indirectly by the following. Such loss("loss") or damage is excluded regardless of anyother cause or event that contributes concurrentlyor in any sequence to the loss ("loss") or damage.1. The failure, malfunction or inadequacy of:

a. Any of the following, whether belonging toany insured or to others:

(1) Computer hardware, including micropro-cessors;

(2) Computer application software;(3) Computer operating systems and related

software;(4) Computer networks;(5) Microprocessors (computer chips) not

part of any computer system; or(6) Any other computerized or electronic

equipment or components; orb. Any other products, and any services, data

or functions that directly or indirectly use orrely upon, in any manner, any of the itemslisted in Paragraph A.1.a. of this endorse-ment;

due to the inability to correctly recognize, pro-cess, distinguish, interpret or accept one ormore dates or times. An example is the inabilityof computer software to recognize the year2000.

2. Any advice, consultation, design, evaluation,inspection, installation, maintenance, repair,replacement or supervision provided or done byyou or for you to determine, rectify or test for,any potential or actual problems described inParagraph A.1. of this endorsement.

B. If an excluded Cause of Loss as described inParagraph A. of this endorsement results:1. In a Covered Cause of Loss under the Crime

and Fidelity Coverage Part, the Commercial In-land Marine Coverage Part or the StandardProperty Policy; or

2. Under the Commercial Property Coverage Part:a. In a "Specified Cause of Loss", or in eleva-

tor collision resulting from mechanicalbreakdown, under the Causes of Loss –Special Form; or

b. In a Covered Cause of Loss under theCauses Of Loss – Basic Form or the Caus-es Of Loss – Broad Form;

we will pay only for the loss ("loss") or damagecaused by such "Specified Cause of Loss", eleva-tor collision, or Covered Cause of Loss.

C. We will not pay for repair, replacement or modifi-cation of any items in Paragraphs A.1.a. andA.1.b. of this endorsement to correct any deficien-cies or change any features.

POLICY NUMBER: INTERLINEIL 04 15 04 98


IL 04 15 04 98 Copyright, Insurance Services Office, Inc., 1997 Page 1 of 2

PROTECTIVE SAFEGUARDSThis endorsement modifies insurance provided under the following:

COMMERCIAL PROPERTY COVERAGE PARTFARM COVERAGE PART

SCHEDULE*

Prem. No. Bldg. No. Protective Safeguards Symbols Applicable

Describe any "P-9":

* Information required to complete this Schedule, if not shown on this endorsement, will be shown in theDeclarations.

A. The following is added to the:Commercial Property ConditionsGeneral Conditions in the

Farm Property – Other FarmProvisions Form – Additional Coverages,Conditions, Definitions

General Conditions in the Mobile AgriculturalMachinery and Equipment Coverage Form

General Conditions in the Livestock CoverageFormPROTECTIVE SAFEGUARDS1. As a condition of this insurance, you are

required to maintain the protective devicesor services listed in the Schedule above.

2. The protective safeguards to which thisendorsement applies are identified by thefollowing symbols:"P-1" Automatic Sprinkler System, in-

cluding related supervisory services.Automatic Sprinkler System means:a. Any automatic fire protective or ex-

tinguishing system, including con-nected:

(1) Sprinklers and discharge nozzles;(2) Ducts, pipes, valves and fittings;

(3) Tanks, their component parts andsupports; and

(4) Pumps and private fire protectionmains.

b. When supplied from an automaticfire protective system:

(1) Non-automatic fire protectivesystems; and

(2) Hydrants, standpipes and outlets."P-2" Automatic Fire Alarm, protecting

the entire building, that is:a. Connected to a central station; orb. Reporting to a public or private fire

alarm station."P-3" Security Service, with a recording

system or watch clock, making hour-ly rounds covering the entire build-ing, when the premises are not in ac-tual operation.

"P-4" Service Contract with a privatelyowned fire department providing fireprotection service to the describedpremises.

"P-9" The protective system described inthe Schedule.

P-911

Operational Smoke Detectors, Operational and Fully Charged Fire Extinguishers

D160896NC0198

Page 2 of 2 Copyright, Insurance Services Office, Inc., 1997 IL 04 15 04 98

B. The following is added to the EXCLUSIONS sec-tion of:CAUSES OF LOSS – BASIC FORMCAUSES OF LOSS – BROAD FORMCAUSES OF LOSS – SPECIAL FORMMORTGAGE HOLDERS ERRORS AND

OMISSIONS COVERAGE FORMSTANDARD PROPERTY POLICYCAUSES OF LOSS FORM – FARM

PROPERTYMOBILE AGRICULTURAL MACHINERY AND

EQUIPMENT COVERAGE FORMLIVESTOCK COVERAGE FORM

We will not pay for loss or damage caused byor resulting from fire if, prior to the fire, you:1. Knew of any suspension or impairment in

any protective safeguard listed in theSchedule above and failed to notify us ofthat fact; or

2. Failed to maintain any protective safeguardlisted in the Schedule above, and overwhich you had control, in complete workingorder.

If part of an Automatic Sprinkler System is shutoff due to breakage, leakage, freezing condi-tions or opening of sprinkler heads, notificationto us will not be necessary if you can restorefull protection within 48 hours.

USA HURRICANE MINIMUM EARNED PREMIUM ENDORSEMENT

The following terms and conditions will apply to this Certificate where the peril of Windstorm is included:

1. If you cancel this policy, remove a location or reduce the amount of Insurance on a location that iswithin 75 miles of the Atlantic Ocean and/or the Gulf of Mexico in the States of North Carolina thruto Texas inclusive, and coverage existed any time during the period of June 1st to November 1st,the amount of premium we will return will be the Unearned Premium for the location. TheUnearned Premium is the annual premium for the policy (or for the location removed or coveragereduced, as applicable) multiplied by the Unearned Factor noted below. The location premium isthe 100% annual rate multiplied by the location value as scheduled in the most current Statementof Values on file with Underwriters.

1 Year Policy

Days Policy Unearned FactorIn Force

001 to 180 25%181 to 210 20%211 to 240 15%241 to 270 10%271 to 300 5.0%301 to 330 2.5%331 to 365 0.0%

2. The provisions of this endorsement replace any short rate provision stipulated in this policy for alllocations that are within 75 miles of the Atlantic Ocean and/or the Gulf of Mexico in the States ofNorth Carolina thru to Texas inclusive, and coverage existed any time during the period ofJune 1st to November 1st.

All other terms and conditions remain unchanged.

Documents

This Insurance This Certificate The Assured · SLC-3 (USA) NMA 2868 (24/08/2000 . Form approved by Lloyd’s Underwriters’ Non-Marine Association Limited . 11405 North Community