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applicable to the Covered Property
<br />that has sustained loss or damage.
<br />(b) Subject to Paragraph (a) above, the
<br />amount we will pay for debris
<br />removal expense is limited to 25%
<br />of the sum of the deductible plus Example ##2
<br />the amount that we pay for direct
<br />physical loss or damage to the
<br />Covered Property that has
<br />sustained loss or damage.
<br />(3) We will pay up to an additional $25,000
<br />for debris removal expense, for each
<br />location, in any one occurrence of
<br />physical loss or damage to Covered
<br />Property, if one or both of the following
<br />circumstances apply:
<br />(a) 'The total of the actual debris
<br />removal expense plus the amount
<br />we pay for direct physical loss or
<br />damage exceeds the Limit of
<br />Insurance on the Covered Property
<br />that has sustained loss or damage.
<br />(b) The.actual debris removal expense
<br />exceeds 25% of the sum of the
<br />deductible plus the amount that we
<br />pay for direct physical loss or
<br />damage to the Covered Property
<br />that has sustained loss or damage.
<br />Therefore, if Paragraphs (3)(a) and /or
<br />(3)(b) apply, our total payment for
<br />direct physical loss or damage and
<br />debris removal expense may reach but
<br />will never exceed the Limit of
<br />Insurance on the Covered Property that
<br />has sustained loss or damage, plus
<br />$25,000.
<br />(4) Examples
<br />Example ##1
<br />Limitoflnsurance $ 150,000
<br />Amount of Deductible $ 1,000
<br />Amount of Loss $ 125,000
<br />Amount of Loss Payable $ 124,000
<br />($125,000 - $1,000)
<br />Debris Removal Expense $ 10,000
<br />Debris Removal Expense
<br />Payable $ 10,000
<br />($10,000 is 8% of
<br />$125,000)
<br />The debris removal expense is less
<br />than 25% of the sum of the loss
<br />payable plus the deductible. The sum
<br />of the loss payable and the debris
<br />removal expense ($124,000 + $10,000
<br />rm�
<br />Hanover
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<br />0839898815 1001051
<br />_ $134,000) is less than the Limit of
<br />Insurance. Therefore the full amount of
<br />debris removal expense is payable in
<br />accordance with the terms of
<br />Paragraph (3).
<br />Limit of Insurance
<br />$
<br />150,000
<br />Amount of Deductible
<br />$
<br />1,000
<br />Amount of Loss
<br />$
<br />125,000
<br />Amount of Loss Payable
<br />$
<br />124,000
<br />($125,000 - $1,000)
<br />Debris Removal Expense $ 60,000
<br />Debris Removal Expense
<br />Payable
<br />Basic Amount $ 26,000
<br />Additional Amount $ 25,000
<br />The basic amount payable for debris
<br />removal expense under the terms of
<br />Paragraph (2) Is calculated as follows:
<br />$125,000 ($124,000 + $1,000) x .25 =
<br />$31,250 (capped at $26,000). The cap
<br />applies because the sum of the loss
<br />payable ($124,000) and the basic
<br />amount payable for debris removal
<br />expense ($31,250) cannot exceed the
<br />Limit of Insurance ($150,000).
<br />The additional amount payable for
<br />debris removal expense is provided in
<br />accordance with the terms of
<br />Paragraph (3), because (from (3)(b)) the
<br />debris removal expense ($60,000)
<br />exceeds 25% of the loss payable plus
<br />the deductible ($60,000 is 48.0% of
<br />$125,000), and because (from (3)(a)) the
<br />sum of the loss payable and debris
<br />removal expense ($124,000 + $60,000
<br />= $184,000) would exceed the Limit of
<br />Insurance ($150,000). The additional
<br />amount of covered debris removal
<br />expense is $25,000, the maximum
<br />payable under Paragraph (3). Thus the
<br />total payable for debris removal
<br />expense in this example is $51,000;
<br />$9,000 of the debris removal expense Is
<br />not covered.
<br />b. Preservation Of Property
<br />If it is necessary to move Covered
<br />Property from the described premises to
<br />preserve It from loss or damage by a
<br />Covered Cause of Loss, we will pay for
<br />any direct physical loss of or damage to
<br />that property:
<br />(1) While it is being moved or while
<br />temporarily stored at another location;
<br />391 -1003 06 09 Includes copyrighted material of Insurance Services Page 7 of 66
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