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(iii) The unavailability of contractors to perform the necessary work. The foregoing provisions do not constitute a waiver of our right to deny the claim for any valid reason or to restrict payment in cases of suspected fraud. 2. The following provision is added: Provision Applicable to California Actual cash value is determined as follows: In the event of a partial or total loss to a building or structure, actual cash value is calculated as shown below, whichever is less: (1) The amount it would cost to repair, rebuild or replace the property less a fair and reasonable deduction for physical depreciation of the components of the building or structure that are normally subject to repair or replacement during its useful life. Physical depreciation is based upon the condition of the property at the time of the loss; or (2) The limit of Insurance applicable to the property. b. In the event of a partial or total loss to Covered Property other than a building or structure, actual cash value is calculated as the lesser of the following: (1) The amount it would cost to repair or replace the property less a fair and reasonable deduction for physical depreciation, based on the condition of the property at the time of loss; or (2) The Limit of Insurance applicable to the property. I. With respect to this endorsement, the following definition is added to Section G. PROPERTY DEFINITIONS: "Open Policy" means a policy under which the value of Covered Property is not fixed at policy inception, but is determined at the time of loss in accordance with policy provisions on valuation. The term 'open policy" does not apply to Covered Property that is subject to an Agreed Value clause or similar clause that establishes an agreed value prior to loss, unless such clause has expired. oR,N F Risk Me agement DMsian a� REVIEWED & APPROVED BY. t� �ceve�Co — J Risk Management Specialist Form SS 01 21 02 20 Page 5 of 5