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391-1003 08 16
<br />Payable $ 10,000
<br />($10,000 is 20% of $50,000)
<br />The debris removal expense is less
<br />than 25% of the sum of the loss
<br />payable plus the deductible. The
<br />sum of the loss payable and the
<br />debris removal expense ($49,500 +
<br />$10,000 = $59,500) is less than the
<br />Limit of Insurance. Therefore the
<br />full amount of debris removal
<br />expense is payable in accordance
<br />with the terms of paragraph (3)
<br />above.
<br />Example #2
<br />Limit of Insurance
<br />$ 90,000
<br />Amount of Deductible
<br />$ 500
<br />Amount of Loss
<br />$ 80,000
<br />Amount of Loss Payable
<br />$ 79,500
<br />($80,000 - $500)
<br />Debris Removal Expense $ 40,000
<br />Debris Removal Expense
<br />Payable
<br />Basic Amount $10,500
<br />Additional Amount $25,000
<br />The basic amount payable for
<br />debris removal expense under the
<br />terms of paragraph (3) above is
<br />calculated as follows: $80,000
<br />($79,500 + $500) x .25 = $20,000
<br />(capped at $10,500). The cap
<br />applies because the sum of the
<br />loss payable ($79,500) and the
<br />basic amount payable for debris
<br />removal expense ($10,500) cannot
<br />exceed the Limit of Insurance
<br />($90,000).
<br />The additional amount payable for
<br />debris removal expense is
<br />provided in accordance with the
<br />terms of paragraph (4) above,
<br />because the debris removal
<br />expense ($40,000) exceeds 25% of
<br />the loss payable plus the
<br />deductible ($40,000 is 50% of
<br />$80,000), and because (from
<br />paragraph (3) (a)) the sum of the
<br />loss payable and debris removal
<br />expense ($79,500 + $40,000 =
<br />$119,500) would exceed the Limit of
<br />Insurance ($90,000). The additional
<br />amount of covered debris removal
<br />expense is $25,000, the maximum
<br />payable under paragraph (4)
<br />above. Thus the total payable for
<br />debris removal expense in this
<br />example is $35,500; $4,500 of the
<br />debris removal expense is not
<br />covered.
<br />b. Preservation of Property
<br />If it is necessary to move Covered
<br />Property from the described premises
<br />to preserve it from loss or damage by
<br />a Covered Cause of Loss, we will pay
<br />for any direct physical loss of or
<br />damage to that property:
<br />(1) While it is being moved or while
<br />temporarily stored at another
<br />location; and
<br />(2) Only if the loss or damage occurs
<br />within 90 days after the property is
<br />first moved.
<br />This Additional Coverage does not
<br />increase the applicable Limit of
<br />Insurance.
<br />c. Fire Department Service Charge
<br />When the fire department is called to
<br />save or protect Covered Property from
<br />a Covered Cause of Loss, we will pay
<br />up to $25,000 for service at each
<br />premises described in the
<br />Declarations, unless a higher Limit of
<br />Insurance is shown in the Declarations.
<br />Such limit is the most we will pay
<br />regardless of the number of
<br />responding fire departments or fire
<br />units, and regardless of the number or
<br />type of services performed.
<br />This Additional Coverage applies to
<br />your liability for fire department
<br />services charges:
<br />(1) Assumed by contract or agreement
<br />prior to loss; or
<br />(2) Required by local ordinance.
<br />d. Collapse
<br />The coverage provided under this
<br />Additional Coverage - Collapse applies
<br />only to an abrupt collapse as
<br />described and limited in paragraphs
<br />(1), (2), (3), (4), (5), (6) and (7) below.
<br />(1) For the purpose of this Additional
<br />Coverage - Collapse, abrupt
<br />collapse means an abrupt falling
<br />down or caving in of a building or
<br />any part of a building with the
<br />result that the building or part of
<br />the building cannot be occupied for
<br />its intended purpose.
<br />(2) We will pay for direct physical loss
<br />of or damage to Covered Property,
<br />caused by abrupt collapse of a
<br />building or ^-a ^f = 1 ,,iIdi
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<br />Includes copyrighted material of Insurance Services Office, Inc., with its
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