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With respect to Covered Property at the "scheduled premises" identified in the Declarations, no other deductible applies to Windstorm or Hail. D. Specific Insurance In determining the amount, if any, that we will pay for loss or damage, we will deduct an amount equal to Windstorm or Hail Percentage (%) deductible, as shown in the Declarations, multiplied by the Limit(s) of Insurance applicable to the property that has sustained physical loss or physical damage. E. Blanket Insurance In determining the amount, if any, that we will pay for physical loss or physical damage to Covered Property that is subject to 'Blanket Insurance", we will deduct an amount equal to the Windstorm or Hail Deductible as shown in the Declarations multiplied by the value of the property that has sustained physical loss or physical damage up to the Blanket Limit of Insurance as shown in the Declarations. The values to be used are those shown in the most recent statement of values on file with us. If the statement of values does not provide the value of each Building and the value of Business Personal at each building or "scheduled premises" we will determine individual values as a part of the total reported values prior to application of Windstorm or Hail Percentage Deductible. F. Newly Acquired or Constructed Property In determining the amount, if any, that we will pay for physical loss or physical damage to covered property under the Coverage Extension for Newly Acquired or Constructed Property, we will deduct an amount equal to the highest Windstorm or Hail percentage deductible shown in the Declarations for any described premises multiplied by the value of the newly acquired property up to the applicable limit(s) for Newly Acquired or Constructed Property. G. Examples- Application of Deductibles Example #1-Specific Insurance The amount of loss to the damaged building is $60,000. The actual Limit of Insurance on the damaged building is $90,OOO.The Deductible is 1 %. Step (1): $90,000 X 1 % _ $900 Step (2): $60,000 - $900 = $59,100 The most we will pay is $59,100. That portion of the total loss not covered due to application of the Deductible is $900. Page 2 of 2 Example #2-Specific Insurance The amounts of loss to the damaged property are $60,000 (building) and $40,000 (business personal property in building). The actual Limits of Insurance on the damaged property are $100,000 on the building and $64,000 on the business personal property. The Deductible is 2%. Building Step (1): $100,000 X 2% _ $2,000 Step (2): $60,000 - $2,000 = $58,000 Business Personal Property Step (1): $64,000 X 2% _ $1,280 Step (2): $40,000 - $1,280 = $38,720. The most we will pay is $96,720 ($58,000 + $38,720). The portion of the total loss that is not covered due to the application of the Deductible is $3,280 ($2,000 + $1,280). Example # 3- Blanket Insurance Percentage Deductible Buildings one, two and three are shown in the Declarations as included under the Blanket Insurance for Buildings with a Limit of Insurance of $2,000,000. The statements of values of buildings at the time of loss are: Building #1 is $500,000; Building #2 is $500,000; and, Building #3 is $1,000,000. Buildings #1 and #2 have sustained damage. The amounts of loss to these buildings are $40,000 for Building #1 and $20,000 for Building #2. The Deductible is 2%. Building #1 Step (1): $500,000 X 2% _ $10,000 Step (2): $40,000 - $10,000 = $30,000 Building #2 Step (1): $500,000 X 2% _ $10,000 Step (2): $20,000 - $10,000 = $10,000 The most we will pay is $40,000 ($30,000 + $10,000). That portion of the total loss not covered due to application of the Deductible is $20,000 ($10,000 + $10,000). ew cF RAMwagementDMsian Jy/\'x REVIEWED & APPROVED BY.- V"° --� Risk janagement Analyst