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Therefore, if (4)(a) and/or (4)(b) applies, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $25,000 . (5) Examples The following examples assume that there is no Coinsurance penalty. Example 1 Limit of Insurance: $ 90,000 Amountof Deductible: $ 500 Amountof Loss: $ 50,000 Amountof Loss Payable: $ 49,500 ($50,000— $500) Debris Removal Expense: $ 10,000 Debris Removal Expense Payable: $ 10,000 ($10,000 is 20% of $50,000.) The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($49,500 +$10,000=$59,500) is less than the Limit of Insurance. Therefore, the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3). Example 2 Limit of Insurance: $ 90,000 Amountof Deductible: $ 500 Amount of Loss: $ 80,000 Amount of Loss Payable: $ 79,500 ($80,000— $500) Debris Removal Expense: $ 40,000 Debris Removal Expense Payable Basic Amount: $ 10,500 Additional Amount: $ 25,000 The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80,000 ($79,500 + $500) x .25=$20,000, capped at $10,500. The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of Insurance ($90,000). The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4), because the debris removal expense ($40,000) exceeds 25% of the loss payable plus the deductible ($40,000 is 50%of $80,000), and because the sum of the loss payable and debris removal expense ($79,500 +$40,000 =$119,500) would exceed the Limit of Insurance ($90,000). The additional amount of covered debris removal expense is $25,000, the maximum payable under Paragraph (4). Thus, the total payable for debris removal expense in this example is $35 ,500; $4,500 of the debris removal expense is not covered. b. Preservation Of Property If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss or damage to that property: (1) While it is being moved or while temporarily stored at another location; and (2) Only if the loss or damage occurs within 30 days after the property is first moved. c. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, w e will pay up to $1,000 for service at each premises described in the Declarations, unless a higher limit is shown in the Declarations. Such limit is the most we will pay regardless of the number of responding fire departments or fire units, and regardless of the number or type of services performed. This Additional Coverage applies to your liabilityfor fire department service charges: (1) Assumed by contractor agreement prior to loss; or (2) Required by local ordinance. No Deductible applies to this Additional Coverage. Page 4 of 16 © Insurance Services Office,lnc., 2011 �oRaN } z RiskMmVmedDMsfan REVIEWED & APPROVED BY.- f R. V;&'Vd Risk Management Analyst