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<br />Therefore, if (4)(a) and/or (4)(b) applies, The additional amount payable for debris removal
<br />our total payment for direct physical loss expense is provided in accordance with the terms of
<br />or damage and debris removal expense Paragraph (4), because the debris removal expense
<br />may reach but will never exceed the ($40,000) exceeds 25% of the loss payable plus the
<br />Limit of Insurance on the Covered deductible ($40,000 is 50% of $80,000), and because
<br />Property that has sustained loss or the sum of the loss payable and debris removal
<br />damage, plus $25,000. expense ($79,500 + $40,000 = $119,500) would
<br />exceed the Limit of Insurance ($90,000). The
<br /> (5) Examples
<br />additional amount of covered debris removal expense
<br />The following examples assume that
<br />is $25,000, the maximum payable under Paragraph
<br />there is no Coinsurance penalty.
<br />(4). Thus, the total payable for debris removal
<br />expense in this example is $35,500; $4,500 of the
<br />Example 1
<br />debris removal expense is not covered.
<br />Limit of Insurance: $90,000
<br /> b. Preservation Of Property
<br />Amount of Deductible: $500
<br />If it is necessary to move Covered Property
<br />Amount of Loss: $50,000
<br />from the described premises to preserve it
<br />Amount of Loss Payable: $49,500
<br />from loss or damage by a Covered Cause
<br />of Loss, we will pay for any direct physical
<br /> ($50,000 – $500)
<br />loss or damage to that property:
<br />Debris Removal Expense: $10,000
<br /> (1) While it is being moved or while
<br />Debris Removal Expense Payable: $10,000
<br />temporarily stored at another location;
<br />($10,000 is 20% of $50,000.)
<br />and
<br />The debris removal expense is less than 25% of the
<br /> (2) Only if the loss or damage occurs within
<br />sum of the loss payable plus the deductible. The sum
<br />30 days after the property is first moved.
<br />of the loss payable and the debris removal expense
<br /> c. Fire Department Service Charge
<br />($49,500 + $10,000 = $59,500) is less than the Limit
<br />of Insurance. Therefore, the full amount of debris When the fire department is called to save
<br />removal expense is payable in accordance with the or protect Covered Property from a
<br />terms of Paragraph (3). Covered Cause of Loss, we will pay up to
<br />$1,000 for service at each premises
<br />Example 2
<br />described in the Declarations, unless a
<br />higher limit is shown in the Declarations.
<br />Limit of Insurance: $90,000
<br />Such limit is the most we will pay
<br />Amount of Deductible: $500
<br />regardless of the number of responding fire
<br />Amount of Loss: $80,000
<br />departments or fire units, and regardless of
<br />Amount of Loss Payable: $79,500the number or type of services performed.
<br /> ($80,000 – $500)
<br />This Additional Coverage applies to your
<br />liability for fire department service charges:
<br />Debris Removal Expense: $40,000
<br /> (1) Assumed by contract or agreement prior
<br />Debris Removal Expense Payable
<br />to loss; or
<br /> Basic Amount: $10,500
<br /> (2) Required by local ordinance.
<br /> Additional Amount: $25,000
<br />No Deductible applies to this Additional
<br />The basic amount payable for debris removal
<br />Coverage.
<br />expense under the terms of Paragraph (3) is
<br />calculated as follows: $80,000 ($79,500 + $500) x .25
<br />= $20,000, capped at $10,500. The cap applies
<br />because the sum of the loss payable ($79,500) and
<br />the basic amount payable for debris removal expense
<br />($10,500) cannot exceed the Limit of Insurance
<br />($90,000).
<br />Page 4 of 16 © Insurance Services Office, Inc.,2011 CP 00 10 10 12
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