|
Payable $ 10,000
<br />debris removal expense is not
<br />($10,000 is 20% of $50,000)
<br />covered.
<br />b. Preservation of Property
<br />The debris removal expense is less
<br />than 25% of the sum of the loss
<br />If it is necessary to move Covered
<br />payable plus the deductible. The sum
<br />Property from the described premises to
<br />of the loss payable and the debris
<br />preserve it from loss or damage by a
<br />removal expense ($49,500 + $10,000
<br />Covered Cause of Loss, we will pay for
<br />= $59,500) is less than the Limit of
<br />any direct physical loss of or damage to
<br />Insurance. Therefore the full amount
<br />that property:
<br />of debris removal expense is payable
<br />(1) While it is being moved or while
<br />in accordance with the terms of
<br />temporarily stored at another location;
<br />paragraph(3)above.
<br />and
<br />Example #2
<br />(2) Only if the loss or damage occurs
<br />Limit of Insurance $ 90,000
<br />within 90 days after the property is
<br />Amount of Deductible $ 500
<br />first moved.
<br />This Additional Coverage does not
<br />Amount of Loss $ 80,000
<br />increase the applicable Limit of Insurance.
<br />Amount of Loss Payable $ 79,500
<br />c. Fire Department Service Charge
<br />($80,000 — $500)
<br />When the fire department is called to save
<br />Debris Removal Expense $ 40,000
<br />or protect Covered Property from a
<br />Debris Removal Expense
<br />Covered Cause of Loss, we will pay up to
<br />Payable
<br />$25,000 for service at each premises
<br />described in the Declarations, unless a
<br />Basic Amount $ 10,500
<br />higher Limit of Insurance is shown in the
<br />Additional Amount $ 25,000
<br />Declarations. Such limit is the most we will
<br />pay regardless of the number of
<br />The basic amount payable for debris
<br />responding fire departments or fire units,
<br />removal expense under the terms of
<br />and regardless of the number or type of
<br />paragraph (3) above is calculated as
<br />services performed.
<br />follows: $80,000 ($79,500 + $500) x
<br />.25 = $20,000 (capped at $10,500).
<br />This Additional Coverage applies to your
<br />The cap applies because the sum of
<br />liability for fire department services
<br />the loss payable ($79,500) and the
<br />charges:
<br />basic amount payable for debris
<br />(1) Assumed by contract or agreement
<br />removal expense ($10,500) cannot
<br />prior to loss; or
<br />exceed the Limit of Insurance
<br />(2) Required by local ordinance.
<br />($90,000).
<br />d. Collapse
<br />The additional amount payable for
<br />debris removal expense is provided in
<br />The coverage provided under this
<br />9 p
<br />accordance with the terms of
<br />Additional Coverage — Collapse applies
<br />paragraph (4) above, because the
<br />only to an abrupt collapse as described
<br />debris removal expense ($40,000)
<br />and limited in paragraphs (1), (2), (3), (4),
<br />exceeds 25% of the loss payable plus
<br />(5), (6) and (7) below.
<br />the deductible ($40,000 is 50% of
<br />(1) For the purpose of this Additional
<br />$80,000), and because (from
<br />Coverage — Collapse, abrupt collapse
<br />paragraph (3) (a)) the sum of the loss
<br />means an abrupt falling down or
<br />payable and debris removal expense
<br />caving in of a building or any part of a
<br />($79,500 + $40,000 = $119,500)
<br />building with the result that the
<br />would exceed the Limit of Insurance
<br />building or part of the building cannot
<br />($90,000). The additional amount of
<br />be occupied for its intended purpose.
<br />covered debris removal expense is
<br />(2) We will pay for direct physical loss of
<br />$25,000, the maximum payable under
<br />or damage to Covered Property,
<br />paragraph (4) above. Thus the total
<br />caused by abrupt collapse of a
<br />payable for debris removal expense in
<br />building or any part of a building that
<br />this example is $35,500; $4,500 of the
<br />is insured under this policy or that
<br />contains Covered Property insured
<br />391.1003 08 16 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 8 of 81
<br />
|