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building(s) is covered under a Blanket Limit of Insurance and the Blanket Limit of Insurance applies to more than one building or item of property, then the most we will under this Additional Coverage, for each building, is $5,000, or the amount shown in the Additional Property Coverage Schedule. (6) Under this coverage, we will not pay for loss due to any ordinance or law that: (a) You were required to comply with before the loss, even if the building was undamaged; and (b) You failed to comply with. (7) Example of Proportionate Loss Payment for Ordinance or Law Coverage losses (procedures as set forth in paragraph (2)(c) of this Additional Coverage). Assume: • Wind is a Covered Cause of Loss; "Flood" is an excluded Cause of Loss • The building has value of $200,000 • The total direct physical damage to the building: $100,000; • The ordinance or law in this jurisdiction is enforced when building damage equals or exceeds 50% of the building's value; • Portion of direct physical damage that is covered (caused by wind): $30,000; • Portion of direct physical damage that is not covered (caused by "flood"): $70,000; and Loss under Increased Cost of Construction: $60,000 Step 1: Determine the proportion that the covered direct physical damage bears to the total direct physical damage. $30,000 divided by $100,000 = .30 Step 2: Apply that portion to the Ordinance or Law loss. $60,000 x .30 = $18,000 In this example, the most we will pay under this Additional Coverage for the Increased Cost of Construction loss is $18,000, subject to the applicable Limit of Insurance and any other applicable provisions. Note: The same procedure applies to losses under Loss to the Undamaged Portion of the Building and Demolition Cost of this Additional Coverage. m. Business Income from Dependent Properties When Business Income Coverage is provided under this Coverage Form: (1) We will pay for the actual loss of Business Income you sustain due to direct physical loss or damage at the premises of a "dependent property" caused by or resulting from any Covered Cause of Loss. However, this Additional Coverage does not apply when the only loss at the premises of a "dependent property' is loss or damage to "electronic data", including destruction or corruption of "electronic data". If the "dependent property" sustains loss or damage to "electronic data' and other property, coverage under this Additional Coverage will not continue once the other property is repaired, rebuilt or replaced. (2) The most we will pay under this Additional Coverage is $5,000 per occurrence, regardless of the number of "dependent properties" affected. (3) We will reduce the amount of your Business Income loss, other than Extra Expense, to the extent you can resume "operations", in whole or in part, by using any other available: (a) Source of materials; or (b) Outlet for your products. (4) If you do not resume "operations", or do not resume "operations" as quickly as possible, we will pay based on the length of time it would have taken to resume "operations" as quickly as possible. (5) The coverage period for Business Income under this Additional Coverage: (a) Begins 72 hours after the time of direct physical loss or damage caused by or resulting from any Covered Cause of Loss at the premises of the "dependent property'; and 391-1003 08 16 Includes copyrighted material of Insurance services Office, Inc., with its permission. Page 17 of 81