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391-1003 0816 Payable $ 10,000 ($10,000 is 20% of $50,000) The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance. Therefore the full amount of debris removal expense is payable in accordance with the terms of paragraph (3) above. Example #2 Limit of Insurance $ 90,000 Amount of Deductible $ 500 Amount of Loss $80,000 Amount of Loss Payable $ 79,500 ($80,000 - $500) Debris Removal Expense $ 40,000 Debris Removal Expense Payable Basic Amount $10,500 Additional Amount $ 25,000 The basic amount payable for debris removal expense under the terms of paragraph (3) above is calculated as follows: $80,000 ($79,500 + $500) x .25 = $20,000 (capped at $10,500). The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of Insurance ($90,000). The additional amount payable for debris removal expense is provided in accordance with the terms of paragraph (4) above, because the debris removal expense ($40,000) exceeds 25% of the loss payable plus the deductible ($40,000 is 50% of $80,000), and because (from paragraph (3) (a)) the sum of the loss payable and debris removal expense ($79,500 + $40,000 = $119,500) would exceed the Limit of I $90 000 Th dd;It' 1 debris removal expense is not covered. b. Preservation of Property If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss of or damage to that property: (1) While it is being moved or while temporarily stored at another location; and (2) Only if the loss or damage occurs within 90 days after the property is first moved. This Additional Coverage does not increase the applicable Limit of Insurance. c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $25,000 for service at each premises described in the Declarations, unless a higher Limit of Insurance is shown in the Declarations. Such limit is the most we will pay regardless of the number of responding fire departments or fire units, and regardless of the number or type of services performed. This Additional Coverage applies to your liability for fire department services charges: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. d. Collapse The coverage provided under this Additional Coverage - Collapse applies only to an abrupt collapse as described and limited in paragraphs (1), (2), (3), (4), (5), (6) and (7) below. (1) For the purpose of this Additional Coverage - Collapse, abrupt collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. nsurance ( , ). e a Iona (2) We will pay for direct physical loss amount of covered debris removal of or damage to Covered Property, expense is $25,000, the maximum caused by abrupt collapse of a payable under paragraph (4) building or any part of a building above. Thus the total payable for that is insured under this policy or debris removal expense In this that contains Covered Property example is $35,500; $4,500 of the RiskMmaganadDiAsian J�NIncludes copyrighted material of Insurance Services Office, Inc., with its permission. } REVIEWED&APPROVEDSY: .. . v `� --� Rusk Pjanagement Analyst