Builders Risk Policy
tlU1LU~~ Kl~K PUL1LT U~LLAKAIIUN~
ThiS Pol icy i sSlIed by:
X Fidelity and Deposit Company of Maryland
P.O. Box 1~~27
Baltimore, Maryland 21203
o Colonial American Casualty and
Surety Company, P.O. Box 1227
Baltimore, Maryland 21203
'olicy No. CMP 0016102 00
Rewrite of No. CMP 0013513 00
Named Insured and Mail ing Address
(No., Street, Town or City, County, State, Zip Codel*
D. L. PORTER CONSTRUCTION, INC.
1100 GILLESPIE
SARASOTA, FLORIDA 34236
Agency Name and Number
Policy Period*:
From 5-6-96 to 11-6-96 at 12:01 A.M. Standard Time at your mailing address shown above.
IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE
AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
CONSTRUCTION PROJECT
ISLAMARADA LIBRARY, 1,600 TOTAL SQUARE FEET, ADDITION AND RENOVATION, MASONRY NON-
COMBUSTIBLE CONSTRUCTION.
MARATHON LIBRARY, INTERIOR RENOVATION,
ADDRESS ISLAMARADA LIBRARY
MM 81.5 BAYSIDE
ISLAMARADA, MONROE COUNTY, FLORIDA 33036
ROGER BOUCHARD INSURANCE, INC.
P. O. BOX 6090
CLEARWATER, FLORIDA 34618
031-4128
LIMITS OF INSURANCE
CONSTRUCTION PR~JECT
TRANSIT
fEMPORARY STORAGE
ANY ONE LOSS
DEDUCTIBLE
POLICY PREMIUM
$310,189.
$ 10,000.
$ 10,000.
$310,189.
DATE
~(l'" 'IIFR'
N' ~ "..--/ v~ ~
$ 1,000.EXCEPT WIND *Subject to a $750. minimum &
(FULLY EARNED) $ 750.* retained policywriting premium
o MORTGAGE HOLDER X LOSS PAYEE
Name and Address:
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
5100 COLLEGE ROAD
KEY WEST, FLORIDA 33040
FORMS AND ENDORSEMENTS
Forms and Endorsements applying to this policy at time of issue:SCHEDULE OF LOCATION/VALUES;
CIM 7500 (l-92);CIM 75000 (3-90);CIM 6770 (3-91);ENDT.A-EARTH MOVEMENT, WATER, WIND &
COLLAPSE COVERAGE ENDORSEMENT;ENDT.B- A.C.V. ENDORSEMENT;ENDT.C-LOSS PAYABLE CLAUSE.
Countersigned:
BOA/PIL/4-17-96
CAR/5-30-96 (SR)
By .~~~~ <c. ~,~~~
Authorized Representative
THESE DECLARATIONS AND THE SUPPLEMENTAL DECLARATION, TOGETHER HITH THE COVERAGE FORM( S I AND FORMS AND
ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY.
Includes copyrighted Material of Insurance Services Office~J Inc. ~ith it~ permi~sion. Copyright, Insurance
Servica~ Office, Inc., 1983, 1984
rTM7~nn~ rF~ ~-qnl
CMP 0016102 00
EFFECTIVE: 5-6-96
SCHEDULE OF LOCATIONS AND VALUES
MARATHON LIBRARY
3251 OVERSEAS HIGHWAY
MM 48 OCEAN
MARATHON, FLORIDA 33050
ISLAMORADA LIBRARY
MM 81. 5 BAYS IDE
ISLAMORADA, FLORIDA 33036
BOA/PIL/4-17-96
CAR / 5 - 3 I) - 9 6 ( S R )
VALUE $ 30,000.
VALUE $280,189.
TOTAL VALUE $310.189.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
FLORIDA CHANGES
This endorsement modifies insurance provided under the following:
BUILDERS RISK POLICY
A. Paragraph 2. of the CANCELLATION
General Condition is replaced by
the following:
2. a. Cancellation For Policies
In Effect 90 Days Or Less
If this policy has been in
effect for 90 days or less,
we may cancel this policy
by mailing or delivering
to the first Named Insured
wrltten notice of cancel-
lation, accompanied by the
reasons for cancellation,
at least:
(1) 10 days before the
effective date of can-
cellation if we cancel
for nonpayment of
premium.
(2) 20 days before the
effective date of can-
cellation if we cancel
for any other reason,
except we may cancel
immediately if there
has been:
(a) A material misstate-
ment or mis-
representation; or
(b) A failure to comply
with underwriting
requirements
established by the
insurer.
b. Cancellation For Policies In
Effect For More Than 90 Days
If this policy has been in
effect for more than 90 days,
we may cancel this policy
only for one or more of the
following reasons:
(1) Nonpayment of premium;
(2) The policy was obtained
by a material misstate-
ment;
Page 1 of 2
ClM 6770 (Ed. 3-91) - FLORIDA
(3) There has been a failure to
comply with underwriting
requirements within 90
days of the effective date
of coverage;
(4) There has been a substantial
change in the risk covered
by the policy; or
(5) The cancellation is for all
insureds under such policies
for a given class of
insureds.
If we cancel this policy for any
of these reasons, we will mail
or deliver to the first Named
Insured written notice of
cancellation, accompanied by
the reasons for cancellation,
at least:
(a) 10 days before the effective
date of cancellation if
cancellation is for the
reason stated in b.(l)
above; or
(b) 45 days before the effective
date of cancellation if
cancellation is for the
reasons stated in b.(2),
( 3 ), (4) or (5) above.
B. The following is added:
NONRENEWAL
1. If we decide not to renew this
policy we will mail or deliver to
the first Named Insured written
notice of nonrenewal, accompanied
by the reason for nonrenewal, at
least 45 days prior to the
expiration of this policy.
2. Any notice of non renewal will be
mailed or delivered to the first
Named Insured's last mailing address
known to us. If notice is mailed,
proof of mailing will be sufficient
proof of notice.
C. The following replaces the second
paragraph of the Legal Action
Against Us condition:
Legal Action Against Us
Legal action against us involving
direct physical loss or damage
to property must be brought within
5 years from the date the loss occurs.
D. The following replaces Loss Condition
F. Loss Payment:
We '"Jill payor make good any "loss"
covered under this policy:
1. Within 20 days after we reach
written agreement with you; or
2. Within 30 days after:
a. The entry of final judgment;
or
b. The filing of an appraisal
award.
We will not be liable for any part of
"loss" that has been paid or made
good by others.
E. WARRANTIES
Wherever the words "warrants",
"warranties", "warranted" or "warrantyll
appear in this policy, you and we agree
they are representations.
F. The following replaces General Conditions D.
Need for Adequate Insurance:
COINSURANCE CLAUSE
The IIconstruction projectll must be insured for
100% of its "projected completed value II as of
the time of "loss" or you will incur a penalty
in the event of "lossll. The penalty is that
we will pay only the proportion of any "loss"
that the Limit of Insurance at any "construction
project" bears to the "projected completed value"
of all covered property at that "construction
project" at the date of completion.
Coinsurance Contract: The rate charged in this
policy is based upon the use of the coinsurance
clause attached to this policy, with the consent of
the insured.
Page 2 of 2
CIM 6770 (Ed. 3-91) - FLORIDA
FIDELITY AND DEPOSIT COMPANY OF MARYLAND
THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY
POLICY CHANGES
This endorsement modifies insurance provided under the following:
BUILDERS RISK POLICY
Policy Number
Effective Date of Change
Change Number
CMF 0016102 00
Named Insured
5-6-96
A
D. L. PORTER CONSTRUCTION, INC.
EARTH MOVEMENT, WATER, AND COLLAPSE
COVERAGE MODIFICATION ENDORSEMENT
It is agreed that Exclusions 5. and 6. under G. Exclusions are deleted
in their entirety and replaced by the following:
5. Any earth movement (other than "sinkhole collapse"), such as an
earthquake, landslide, volcanic action, mine subsidence or earth
sinking, rising or shifting. But if "loss" by fire or explosion
results, we will pay for that resulting "loss".
6 . Water, including but not limited to:
(a) Flood, surface water, waves, tides, tidal waves, overflow of
any body of water or their spray, all whether wind driven
or not;
(b) Mudslide or mudflow;
(c) Water that backs up from a sewer or drain; or
(d) Water under the ground surface pressing on, flowing or
seeping through:
(1) foundations, walls, floors or paved surfaces;
(2) basements, whether paved or not; or
( 3) doors, windows or other openings;
(e) Water that leaks of flows from plumbing, heating, air
conditioning or other equipment, caused by or resulting from
freezing.
But if "loss" by fire or explosion results, we will pay for that
resulting "loss".
It is agreed that Exclusions 12. and 14. are added under G.
Exclusions:
13. Collapse, except as provided for in the Additional Coverage for
Collapse included in this endorsement.
Additional Coverag-e for Collapse
We will pay for "loss" caused by or resulting from risks of direct
physical loss involving collapse of a building or any part of a building
caused only by one or more of the following:
( 1 ) The" specified causes of loss" or breakage of building glass, all
only as insured against in this Builders Risk Policy;
(2) Hidden decay;
( 3) Hidden insect or vermin damage;
(4) Weight of people or personal property;
(5) Weight of rain that collects on a roof;
(6) Use of defective material or methods in construction. remodeling
or renovation if the collapse occurs during the course of
construction, remodeling or renovation.
Collapse does not include settling, cracking, shrinkage, bulging or
expansion.
This Additional Coverage will not increase the Limits of Insurance
shown in the Declarations.
It is agreed that E. and F. below are added under PAR T TWO:
DEFINITIONS:
E. "Specified caused of loss" means the following: Fire; lightning;
explosion; smoke; aircraft or vehicles; riot or civil 20mmotion;
vandalism; "sinkhole collapse"; falling objects; weight of snow,
lee or sleet.
Falling objects does not include "loss" to:
1 . Covered Property in the open; or
2. The interior of a building or structure, or property inside a
building or structure, unless the roof or an outside wall of
the building or structure is first damaged by a fa11.ing object.
F. "Sinkhole collapse" means the sudden sinking or collapse of land
into underground empty spaces created by the action of water on
limestone or dolomite. This cause of loss does not include:
1. The cost of filling sinkholes; or
2 . Sinking or collapse of land into man -made underground
cavities.
BOA/PIL/4-17-96
CAR/5-30-96 (SR)
Accepted by:
Title:
Date:
ALL OTHER POLICY TERMS AND CONDITIONS REMAIN THE SAME.
Authorized Representative Signature
ENDORSEMENT No. B
To be attached to and made part of Policy No. CMP 0016102 00 of the
FIDELITY AND DEPOSIT COMPANY OF MARYLAND.
Issued to: D. L. PORTER CONSTRUCTION, INC.
Effective: 5-6-96
A.C.V. ENDORSEMENT
It is understood and agreed that for Section VI: Valuation and Limits of
Liability on Form S-8804, the words replacement cost are deleted in their
entirety and replaced by "actual cash value" as respects coverage for the
existing structure.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BOA/PIL/4-17 -96
CAR/5-30-96 (SR)
ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.
Countersigned by:
Authorized Representative
S7371a (7/75)
FIDELITY AND DEPOSIT COMPANY OF MARYLAND
THIS ENDORSEMENT CHANGES YOUR POLICY. PLEASE READ IT CAREFULLY
LOSS PAYABLE CLAUSE
This endorsement modifies insurance provided under the following:
BUILDERS RISK POLICY
Policy Number
Effective Date of Change
Change Number
CMP 0016102 00
Named Insured
5-6-96
C
D. L. PORTER CONSTRUCTION, INC.
ADDITIONAL CONDITION
The following also applies:
LOSS PAYABLE
For Covered Property in which both you and a Loss Payee shown in
the Declarations have an insurable interest, we will:
1. Adjust loss with you; and
2. Pay any claim for loss or damage jointly to you and the Loss
Payee, as interests may appear.
BOA/PIL/4-17-96
CAR/5-30-96 (SR)
ALL OTHER CONDITIONS REMAIN THE SAME.
Authorized Representative Signature
nie
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Companies
BUILDERS RISK POLICY
DECLARATIONS PAGE
Beginning on Page
Named Insured and Mailing Address
Policy Period
Description of Construction Project
Address
Limits of Insurance
Deductible
Rate and Policy Premium
Mortgage Holders/loss Payee and Mailing Address
Forms and Endorsements Applicable
PART ONE: THE INSURING AGREEMENT
Covered Property
Property Not Covered
Covered Cause of loss
Coverage Extensions
When Coverage Begins and Ends
Limits of Insurance
Exclusions
1
1
1
1
2
2
2
PART TWO: DEFINITIONS
3
PART THREE: GENERAL CONDITIONS
3
Coverage Territory
Policy Period
Cancellation
Need for Adequate Insurance
Valuation
Concealment, Misrepresentation, or Fraud
legal Action Against Us
No Benefit to Bailee
Changes
Examination of Your Books and Records
Inspections and Surveys
Transfer of Your Rights and Duties Under This Policy
3
3
3
4
4
4
4
4
4
4
4
5
CIM7500 (Ed. 1-92)
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Copyright, Insurance Services Office, 1983
PART FOUR: LOSS CONDITIONS
Beginning on Page
Abandonment
Appraisals
Duties in the Event of Loss
Deductible
Insurance Under Two or More Coverages
Loss Payment
Other Insurance
Pair, Set, or Parts
Privilege to Adjust with Owner
Recoveries
Reinstatement of Limit After Loss
Transfer of Rights of Recovery Against Others to Us
5
5
5
5
5
6
6
6
6
6
6
6
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Companies
BUILDERS RISK POLICY
Note: Various provisions in the Policy and this Form restrict Coverage. Read the entire Policy and Form carefully
to determine rights, duties, and what is and is not covered.
Throughout this Policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The words
"we," "us," and "our" refer to the Company providing this insurance.
Other words and phrases that appear in quotation marks have special meanings. Refer to PART TWO: DEFINITIONS.
PART ONE: THE INSURING AGREEMENT
We will pay for direct physical "loss" to Covered Property C. COVERED CAUSE OF LOSS
caused by or resulting from any Covered Cause of Loss.
A. COVERED PROPERTY, as used in this Policy, means
the "construction project" designated in the Declara-
tions. "Construction Project" includes:
1. Machinery, equipment, and materials and supplies
that you own or are legally liable for and that will
become a permanent part of the "construction
project" ;
2. Foundations, underground pipes, drains, and pil-
ings; and
3. If included in the limit of liability, sidewalks, curbs,
driveways, parking lots, signs, and lights.
B. PROPERTY NOT COVERED
Covered Property does not include:
1. Money, currency, gold or silver bullion, or platinum;
2. Property of others, unless you are legally liable for
it;
3. Contractors' equipment, machinery, tools, or
similar property which will not become part of the
"construction project";
4. Aircraft or watercraft, motor vehicles;
5. Buildings or structures that exist prior to the start
of the "construction project";
6. Bridges, tunnels, piers, and dams;
7. Land and excavations; and
8. Landscaping including trees, shrubs, plants, or
lawn, except as provided in the Coverage Ex-
tensions.
Page 1
We cover against risks of direct physical "loss" unless
the Cause of Loss is excluded in Section G., Exclu-
sions, or is limited by other sections of this Policy.
D. COVERAGE EXTENSIONS
The following Coverage Extensions are in addition to
the Limits of Insurance shown in the Declarations.
1 . Debris Removal
We will pay your expense to remove debris of
Covered Property caused by or resulting from a
Covered Cause of Loss. When the amount of
"loss" and debris removal expense exceeds the
Limit of Insurance, we will pay up to an additional
$25,000 in anyone "loss." This Debris Removal
Coverage does not apply to the cost of removing
"pollutants" from Covered Property.
2. Pollutants Cleanup and Removal
We will pay your expense to remove "pollutants"
from Covered Property if the release, discharge,
or dispersal of the "pollutant" is caused by or
results from a Covered Cause of Loss that occurs
during the Policy period. The most we will pay is
$25,000 for the sum of all such expenses arising
out of Covered Causes of Loss occurring during the
Policy period.
3. Valuable Papers and Records
When a "loss" from a Covered Cause of Loss oc-
curs at your "construction project" to any of your
valuable papers or records such as blueprints,
plans, drawings, or data processing media, we will
pay up to $25,000 to reproduce, replace, or restore
these valuable records.
4. Trees, Shrubs, or Plants, Including Lawn
We will pay up to $2,500 for "loss" to trees, shrubs,
or plants, including lawn, if the "loss" is caused
by a Covered Cause of Loss. Our limit on anyone
tree, shrub, or plant, including removal, is $500.
5. Fire Department Service Charge
When the fire department is called to save or pro-
tect Covered Property from a Covered Cause of
Loss, we will pay up to $5,000 for your liability for
fire department service charges:
a. Assumed by contract or agreement prior to
"loss"; or
b. Required by local ordinance.
6. Transit and Temporary Storage
If a limit is designated in the Declarations, coverage
is extended by this Policy to apply to Covered Pro-
perty while that property is:
a. In transit to the "construction project"; or
b. Temporarily stored at any location other than
the construction site.
7. Other Extensions
We will pay for "loss" caused by or resulting from
any Covered Cause of Loss to:
a. Temporary structures such as office trailers;
b. Scaffolding, falsework, construction forms, and
cribbing;
only while they are at the construction site.
E. WHEN COVERAGE BEGINS AND ENDS
The Insurance provided by this Policy will begin when
you acquire an interest in the property insured, but not
before the effective date shown on the Declarations
Page. Insurance for each "construction project"
covered under this Policy will cease when one of the
following first occurs:
1. This Policy expires or is cancelled;
2. The property is accepted by the purchaser;
3. Your interest in the property ceases; or
4. When any part of the "construction project" de-
scribed in the Declarations is put to its intended use
without our written consent.
F. LIMITS OF INSURANCE
The most we will pay for any "loss" is the applicable
Limit of Insurance shown in the Declarations. If
coverage for Property in Transit is provided by this
Policy, the Limit of Insurance shown in the Declarations
applies per vehicle. If coverage for temporary storage
is provided by this Policy, the Limit of Insurance shown
in the Declarations applies per location.
Page 2
G. EXCLUSIONS
We will not pay for a "loss" caused directly or indirectly
by any of the following. Such "loss" is excluded
regardless of any other cause or event that contributes
concurrently or in any sequence to the "loss."
1 . The enforcement of any building ordinance or law:
a. Regulating the construction, use, or repair of
any property; or
b. Requiring the tearing down of any property, in-
cluding the cost of removing its debris.
2. Seizure or destruction of property by order of
governmental authority. But we will pay for acts of
destruction ordered by governmental authority and
taken at the time of a fire to prevent its spread, if
the fire would be covered under this Coverage.
3. Nuclear reaction or radiation, or radioactive con-
tamination, however caused. But if "loss" by fire
results, we will pay for that resulting "loss."
4. a. War, including undeclared or civil war;
b. Warlike action by a military force, including ac-
tion in hindering or defending against an ac-
tual or expected attack by any government,
sovereign, or other authority using military per-
sonnel or other agents; or
c. Insurrection, rebellion, revolution, usurped
power, or action taken by governmental
authority in hindering or defending against any
of these.
5. Earthquake, landslide, mudslide, or volcanic activi-
ty. But if "loss" by fire or explosion results, we will
pay for that resulting "loss."
6. Flood, surface water, waves, tides, tidal waves,
overflow of any body of water, or their spray, all
whether driven by wind or not.
7. The release, discharge, or dispersal of toxic or
hazardous substances, contaminants, or
"pollutants. "
8. Delay, loss of use, or loss of market, or any other
consequential "loss";
9. Dishonest or criminal act by you, any of your part-
ners, employees, authorized representatives, or
anyone to whom you entrust the property;
a. Acting alone or in collusion with others; and
b. Whether or not occurring during the hours of
employment.
10. Unaccountable "loss" or shortage disclosed upon
taking inventory.
11. Rain or snow or freezing of building materials or
other Covered Property if not within a building.
12. We will not pay for a "loss" which is covered by
or under any guarantee, warranty either expressed
or implied, or similar assumed obligation.
We will not pay for "loss" to Covered Property
caused by the following:
1. Wear and tear, rust, corrosion, and deterioration;
2. Mechanical breakdown;
3. Artificially generated electric current, including
electrical arcing, that disturbs electrical devices,
appliances, or wires;
4. Defective materials, or faulty workmanship;
5. Error, omission, or deficiency in designs, plans, or
specifications; or
6. Settling, shrinking, or expanding of foundations,
walls, floors, roofs, or ceilings.
But if "loss" by a Covered Cause of Loss results from
any of the above, we will cover the resulting damage
to other Covered Property, but only if the resulting
damage occurs during the policy period.
PART TWO: DEFINITIONS
A. "Loss" means accidental loss or damage.
B. "Construction project" means buildings or structures
in the course of construction at the construction site
designated in the Declarations. The "construction pro-
ject" includes:
1. Renovations;
2. Installations; and
3. Additions.
C. "Projected completed value" means the estimated cost
to complete the "construction project," but does not
include the cost of property not covered, as specified
in the Insuring Agreement.
D. "Pollutants" means any solid, liquid, gaseous, or ther-
mal irritants or contaminants, including vapor, fumes,
acids, alkalis, chemicals, and waste. Waste includes
material to be recycled, reconditioned, or re-claimed.
PART THREE: GENERAL CONDITIONS
All Coverages included in this Policy are subject to the following conditions.
A. COVERAGE TERRITORY
We cover property wherever located within:
1. Any state of the United States of America;
2. And the District of Columbia; and
3. While the property is in transit between these
places.
B. POLICY PERIOD
We cover "loss" commencing during the policy period
shown in the Declarations.
Page 3
C. CANCELLATION
1. The first Named Insured shown in the Declarations
may cancel this Policy by mailing or delivering to
us advance written notice of cancellation.
2. We may cancel this Policy by mailing or delivering
to the first Named Insured written notice of
cancellation at least:
a. 10 days before the effective date of cancella-
tion if we cancel for nonpayment of premium; or
b. 30 days before the effective date of cancella-
tion if we cancel for any other reason.
3. We will mail or deliver our notice to the first
Named Insured's last mailing address known to us.
4. Notice of cancellation will state the effective date
of cancellation. The policy period will end on that
date.
5. If this Policy is cancelled, we will send the first
Named Insured any premium refund due. If we
cancel, the refund will be pro rata. If the first
Named Insured cancels, the refund may be less
than pro rata. The cancellation will be effective
even if we have not made or offered a refund.
6. If notice is mailed, proof of mailing will be sufficient
proof of notice.
D. NEED FOR ADEQUATE INSURANCE
The "construction project" must be insured for 100 %
of its "projected completed value" as of the time of
"loss" or you will incur a penalty in the event of a I.
"loss." The penalty is that we will pay only the propor-
tion of any "loss" that the Limit of Insurance at any
"construction project" bears to the "projected com-
pleted value" of all property at that "construction pro-
ject" at the date of completion.
E. VALUATION
1. Your Property
The value of your property will be the actual cost
of repairing, replacing, or rebuilding the property
with materials of similar kind and quality, including
profit, overhead, and architect and engineering
fees, if they have been included in the "projected
completed value."
2. Property of Others, the value of property of others
will be the lesser of:
a. The amount for which you are liable, plus the
value of labor and materials you have added; or
b. Its replacement cost value, including labor and
materials you have added.
F. CONCEALMENT, MISREPRESENTATION, OR
FRAUD
This Policy is void in any case of fraud by you relating
to it.
It is also void if you intentionally conceal or misrepre-
sent a material fact concerning:
1. This Policy;
Page 4
2. The Covered Property; or
3. Your interest in the Covered Property.
G. LEGAL ACTION AGAINST US
No one may bring a legal action against us under this
Policy unless:
1. There has been full compliance with all the terms
of the Policy; and
2. The action is brought within 2 years after you first
have knowledge of the "loss."
H. NO BENEFIT TO BAILEE
No person or organization, other than you, having
custody of Covered Property, will benefit from this
insurance.
CHANGES
This Policy contains all the agreements between you
and us concerning the insurance afforded. The first
Named Insured shown in the Declarations is authorized
to make changes in the terms of this Policy with our
consent. This Policy's terms can be amended only by
means of a written endorsement issued by us and made
a part of this Policy.
J. EXAMINATION OF YOUR BOOKS AND RECORDS
We may examine and audit your books and records as
they relate to this Policy at any time during the Policy
period and up to three years afterward.
K. INSPECTION AND SURVEYS
We have the right but are not obligated to:
1. Make inspections and surveys at any time;
2. Give you reports on the conditions we find; and
3. Recommend changes.
4. Any inspections, surveys, reports, or recommen-
dations relate only to insurability and the premiums
to be charged. We do not undertake to perform the
duty of any person or organization to provide for
health or safety of workers or the public. And we
do not warrant that those conditions:
a. Are safe and healthful; or
b. Comply with laws, regulations, codes, or
standards.
This condition applies not only to us, but also to any
rating, advisory, rate service, or similar organization
which makes insurance inspections, surveys, reports,
or recommendations.
L. TRANSFER OF YOUR RIGHTS AND DUTIES UNDER
THIS POLICY
Your rights and duties under this Policy may not be
transferred without our written consent except in the
case of death of an individual named insured. If you
die, your rights and duties will be transferred to your
legal representative but only while acting within the
scope of duties as your legal representative. Until your
legal representative is appointed, anyone having pro-
per temporary custody of your property will have your
rights and duties but only with respect to that property.
PART FOUR: LOSS CONDITIONS
A. ABANDONMENT
The following conditions apply in addition to the General Conditions.
There can be no abandonment of any property to us.
B. APPRAISALS
If we and you disagree on the value of the property or
the amount of "loss," either of us may make written
demand for an appraisal of the "loss." In this event,
each party will select a competent and impartial ap-
praiser. The two appraisers will select an umpire. If they
cannot agree, either appraiser or party may request that
selection of an umpire be made by a judge of a court
having jurisdiction. The appraisers will state separate-
ly the value of the property and amount of "loss." If
they fail to agree, they will submit their difference to
the umpire. A decision agreed to by any two will be bin-
ding. Each party will:
1 . Pay its chosen appraiser; and
2. Bear the other expenses of the appraisal and um-
pire equally.
If we submit to an appraisal, we will retain our right to
deny the claim.
C. DUTIES IN THE EVENT OF LOSS
You must see that the following are done in the event
of "loss" to Covered Property:
1. Notify the police if a law may have been broken.
2. Give us prompt notice of the "loss." Include a
description of the property involved.
3. As soon as possible, give us a description of how,
when, and where the "loss" occurred.
4. Take all reasonable steps to protect the Covered
Property from further damage. If feasible, set the
damaged property aside and in the best possible
order for examination. Also keep a record of your
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expenses, for consideration in the settlement of the
claim.
5. Make no statement that will assume any obligation
or admit any liability, for any "loss" for which we
may be liable, without our consent.
6. Permit us to inspect the property and records prov-
ing "loss."
7. If requested, permit us to question you under oath,
at such times as may be reasonably required, about
any matter relating to this insurance or your claim,
including your books and records. In such event,
your answers must be signed.
8. Send us a signed, sworn statement of "loss" con-
taining the information we request to settle the
claim. You must do this within 60 days after our
request. We will supply you with the necessary
forms.
9. Promptly send us any legal papers or notices
received concerning the "loss."
10. Cooperate with us in the investigation or settlement
of the claim.
D. DEDUCTIBLE
We will not pay for "loss" in anyone occurrence until
the amount of "loss" exceeds the Deductible shown
in the Declarations. We will then pay the amount of
"loss" in excess of the Deductible, up to the applicable
Limit of Insurance.
E. INSURANCE UNDER TWO OR MORE COVERAGES
If two or more of this Policy's coverages apply to the
same "loss," we will not pay more than the actual
amount of the "loss."
F. LOSS PAYMENT
We will payor make good any "loss" covered under
this Policy within 30 days after:
1. We reach agreement with you;
2. The entry of final judgement; or
3. The filing of an appraisal award.
We will not be liable for any part of a "loss" that has
been paid or made good by others.
G.OTHERINSURANCE
If you have other insurance covering the same "loss"
as the insurance under this Policy, we will pay only the
excess over what you should have received from the
other insurance. We will pay only the excess whether
you can collect on the other insurance or not.
H. PAIR, SET, OR PARTS
1. Pair or Set. In case of "loss" to any part of a pair
or set, we may:
a. Repair or replace any part to restore the pair
or set to its value before the "loss"; or
b. Pay the difference between the value of the
pair or set before and after the "loss."
2. Parts. In case of "loss" to any part of Covered Pro-
perty consisting of several parts when complete,
we will only pay for the value of the lost or damaged
part.
I. PRIVILEGE TO ADJUST WITH OWNER
In the event of "loss" involving property of others in
your care, custody, or control, we have the right to:
1. Settle the "loss" with the owners of the property.
A receipt for payment from the owners of that pro-
perty will satisfy any claim of yours.
2. Provide a defense for legal proceedings brought
against you. If provided, the expense of this
defense will be at our cost and will not reduce the
applicable Limit of Insurance under this Policy.
J. RECOVERIES
Any recovery or salvage on a "loss" will accrue entirely
to our benefit until the sum paid by us has been made
up.
K. REINSTATEMENT OF LIMIT AFTER LOSS
The Limit of Insurance will not be reduced by the pay-
ment of any claim, except for total "loss" of a sche-
duled item, in which event we will refund the unearned
premium on that item.
L. TRANSFER OF RIGHTS OF RECOVERY AGAINST
OTHERS TO US
If after a "loss," you have the right to recover from
another party, those rights are transferred to us to the
extent of our payment. You must do everything
necessary to secure our rights and must do nothing
after a "loss" to impair them. Prior to a "loss" you may
waive in writing your rights of recovery against another
party, but you may not waive your rights against any
architect or engineer without our written consent.
IN WITNESS WHEREOF, the Company has caused this Policy to be signed by its President and Secretary,
and to be countersigned on the Declarations page by a duly authorized representative of the Company.
ATTEST:
~ ,,),K.p~~~,
() Secretary
By
~
President
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