COMMERCIAL PROPERTY

CP 00 17 10 12

CONDOMINIUM ASSOCIATION COVERAGE FORM

Various provisions in this policy restrict coverage. Read the entire policy 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 meaning. Refer to Section H. Definitions.

A. Coverage (b) Materials, equipment, supplies, and

We will pay for direct physical loss of or damage to temporary structures, on or within
Covered Property at the premises described in the 100 feet of the described premises,
Declarations caused by or resulting from any used for making additions,
Covered Cause of Loss. alterations or repairs to the building
or structure; and
1. Covered Property
(6) Any of the following types of property
Covered Property, as used in this Coverage contained within a unit, regardless of
Part, means the type of property described in ownership, if your Condominium
this section, A.1., and limited in A.2. Property Association Agreement requires you to
Not Covered, if a Limit Of Insurance is shown insure it:
in the Declarations for that type of property.
(a) Fixtures, improvements and
a. Building, meaning the building or structure alterations that are a part of the
described in the Declarations, including: building or structure; and
(1) Completed additions; (b) Appliances, such as those used for
(2) Fixtures, outside of individual units, refrigerating, ventilating, cooking,
including outdoor fixtures; dishwashing, laundering, security or
housekeeping.
(3) Permanently installed:
(a) Machinery; and But Building does not include personal
property owned by, used by or in the care,
(b) Equipment; custody or control of a unit-owner except for
(4) Personal property owned by you that is personal property listed in Paragraph
used to maintain or service the building A.1.a.(6) above.
or structure or its premises, including: b. Your Business Personal Property located
(a) Fire-extinguishing equipment; in or on the building or structure described
in the Declarations or in the open (or in a
(b) Outdoor furniture; vehicle) within 100 feet of the described
(c) Floor coverings; and premises, consisting of the following:
(d) Appliances used for refrigerating, (1) Personal property owned by you or
ventilating, cooking, dishwashing or owned indivisibly by all unit-owners;
laundering that are not contained
(2) Your interest in the labor, materials or
within individual units;
services furnished or arranged by you
(5) If not covered by other insurance: on personal property of others; and
(a) Additions under construction, (3) Leased personal property for which you
alterations and repairs to the building have a contractual responsibility to
or structure; insure, unless otherwise provided for
under Personal Property Of Others.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 1 of 15

 But Your Business Personal Property does n. Electronic data, except as provided under
not include personal property owned only the Additional Coverage, Electronic Data.
by a unit-owner. Electronic data means information, facts or
c. Personal Property Of Others that is: computer programs stored as or on,
created or used on, or transmitted to or
(1) In your care, custody or control; and from computer software (including systems
(2) Located in or on the building or structure and applications software), on hard or
described in the Declarations or in the floppy disks, CD-ROMs, tapes, drives, cells,
open (or in a vehicle) within 100 feet of data processing devices or any other
the described premises. repositories of computer software which are
However, our payment for loss of or used with electronically controlled
damage to personal property of others will equipment. The term computer programs,
referred to in the foregoing description of
only be for the account of the owner of the
property. electronic data, means a set of related
electronic instructions which direct the
2. Property Not Covered operations and functions of a computer or
Covered Property does not include: device connected to it, which enable the
computer or device to receive, process,
a. Accounts, bills, currency, food stamps or store, retrieve or send data. This
other evidences of debt, money, notes or
paragraph, n., does not apply to electronic
securities. Lottery tickets held for sale are data which is integrated in and operates or
not securities; controls the building's elevator, lighting,
b. Animals, unless owned by others and heating, ventilation, air conditioning or
boarded by you; security system;
c. Automobiles held for sale; o. The cost to replace or restore the
d. Bridges, roadways, walks, patios or other information on valuable papers and
paved surfaces; records, including those which exist as
electronic data. Valuable papers and
e. Contraband, or property in the course of records include but are not limited to
illegal transportation or trade; proprietary information, books of account,
f. The cost of excavations, grading, backfilling deeds, manuscripts, abstracts, drawings
or filling; and card index systems. Refer to the
g. Foundations of buildings, structures, Coverage Extension for Valuable Papers
machinery or boilers if their foundations are And Records (Other Than Electronic Data)
below: for limited coverage for valuable papers and
records other than those which exist as
(1) The lowest basement floor; or electronic data;
(2) The surface of the ground if there is no p. Vehicles or self-propelled machines
basement; (including aircraft or watercraft) that:
h. Land (including land on which the property (1) Are licensed for use on public roads; or
is located), water, growing crops or lawns
(other than lawns which are part of a (2) Are operated principally away from the
vegetated roof); described premises.
i. Personal property while airborne or This paragraph does not apply to:
waterborne; (a) Vehicles or self-propelled machines
j. Bulkheads, pilings, piers, wharves or docks; or autos you manufacture or
warehouse;
k. Property that is covered under this or any
other policy in which it is more specifically (b) Vehicles or self-propelled machines,
described, except for the excess of the other than autos, you hold for sale;
amount due (whether you can collect on it (c) Rowboats or canoes out of water at
or not) from that other insurance; the described premises; or
l. Retaining walls that are not part of a (d) Trailers, but only to the extent
building; provided for in the Coverage
m. Underground pipes, flues or drains; Extension for Non-owned Detached
Trailers; or

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 q. The following property while outside of (3) Subject to the exceptions in Paragraph
buildings: (4), the following provisions apply:
(1) Grain, hay, straw or other crops; or (a) The most we will pay for the total of
(2) Fences, radio or television antennas direct physical loss or damage plus
(including satellite dishes) and their debris removal expense is the Limit
lead-in wiring, masts or towers, trees, of Insurance applicable to the
shrubs or plants (other than trees, Covered Property that has sustained
shrubs or plants which are "stock" or are loss or damage.
part of a vegetated roof), all except as (b) Subject to (a) above, the amount we
provided in the Coverage Extensions. will pay for debris removal expense
3. Covered Causes Of Loss is limited to 25% of the sum of the
deductible plus the amount that we
See applicable Causes Of Loss form as shown pay for direct physical loss or
in the Declarations. damage to the Covered Property that
4. Additional Coverages has sustained loss or damage.
a. Debris Removal However, if no Covered Property has
sustained direct physical loss or
(1) Subject to Paragraphs (2), (3) and (4), damage, the most we will pay for
we will pay your expense to remove removal of debris of other property (if
debris of Covered Property and other such removal is covered under this
debris that is on the described premises, Additional Coverage) is $5,000 at
when such debris is caused by or each location.
results from a Covered Cause of Loss
that occurs during the policy period. The (4) We will pay up to an additional $25,000
expenses will be paid only if they are for debris removal expense, for each
location, in any one occurrence of
reported to us in writing within 180 days
of the date of direct physical loss or physical loss or damage to Covered
damage. Property, if one or both of the following
circumstances apply:
(2) Debris Removal does not apply to costs
to: (a) The total of the actual debris removal
expense plus the amount we pay for
(a) Remove debris of property of yours direct physical loss or damage
that is not insured under this policy, exceeds the Limit of Insurance on
or property in your possession that is the Covered Property that has
not Covered Property; sustained loss or damage.
(b) Remove any property that is (b) The actual debris removal expense
Property Not Covered, including exceeds 25% of the sum of the
property addressed under the deductible plus the amount that we
Outdoor Property Coverage pay for direct physical loss or
Extension; damage to the Covered Property that
(c) Remove property of others of a type has sustained loss or damage.
that would not be Covered Property Therefore, if (4)(a) and/or (4)(b) applies,
under this Coverage Form; our total payment for direct physical loss
(d) Remove deposits of mud or earth or damage and debris removal expense
from the grounds of the described may reach but will never exceed the
premises; Limit of Insurance on the Covered
Property that has sustained loss or
(e) Extract "pollutants" from land or damage, plus $25,000.
water; or
(5) Examples
(f) Remove, restore or replace polluted
land or water. The following examples assume that
there is no Coinsurance penalty.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 3 of 15

Example 1 b. Preservation Of Property
Limit of Insurance: $ 90,000 If it is necessary for you to move Covered
Property from the described premises to
Amount of Deductible: $ 500 preserve it from loss or damage by a
Amount of Loss: $ 50,000 Covered Cause of Loss, we will pay for any
Amount of Loss Payable: $ 49,500 direct physical loss or damage to that
property:
($50,000 – $500)
Debris Removal Expense: $ 10,000 (1) While it is being moved or while
temporarily stored at another location;
Debris Removal Expense Payable: $ 10,000 and
($10,000 is 20% of $50,000.) (2) Only if the loss or damage occurs within
The debris removal expense is less than 25% of the 30 days after the property is first moved.
sum of the loss payable plus the deductible. The sum c. Fire Department Service Charge
of the loss payable and the debris removal expense
($49,500 + $10,000 = $59,500) is less than the Limit When the fire department is called to save
of Insurance. Therefore, the full amount of debris or protect Covered Property from a
removal expense is payable in accordance with the Covered Cause of Loss, we will pay up to
terms of Paragraph (3). $1,000 for service at each premises
described in the Declarations unless a
Example 2 higher limit is shown in the Declarations.
Limit of Insurance: $ 90,000 Such limit is the most we will pay
regardless of the number of responding fire
Amount of Deductible: $ 500 departments or fire units, and regardless of
Amount of Loss: $ 80,000 the number or type of services performed.
Amount of Loss Payable: $ 79,500 This Additional Coverage applies to your
($80,000 – $500) liability for fire department service charges:
Debris Removal Expense: $ 40,000 (1) Assumed by contract or agreement prior
Debris Removal Expense Payable to loss; or
Basic Amount: $ 10,500 (2) Required by local ordinance.
Additional Amount: $ 25,000 No Deductible applies to this Additional
Coverage.
The basic amount payable for debris removal
expense under the terms of Paragraph (3) is d. Pollutant Clean-up And Removal
calculated as follows: $80,000 ($79,500 + $500) x .25 We will pay your expense to extract
= $20,000, capped at $10,500. The cap applies "pollutants" from land or water at the
because the sum of the loss payable ($79,500) and described premises if the discharge,
the basic amount payable for debris removal expense dispersal, seepage, migration, release or
($10,500) cannot exceed the Limit of Insurance escape of the "pollutants" is caused by or
($90,000). results from a Covered Cause of Loss that
The additional amount payable for debris removal occurs during the policy period. The
expense is provided in accordance with the terms of expenses will be paid only if they are
Paragraph (4), because the debris removal expense reported to us in writing within 180 days of
($40,000) exceeds 25% of the loss payable plus the the date on which the Covered Cause of
deductible ($40,000 = 50% of $80,000), and because Loss occurs.
the sum of the loss payable and debris removal This Additional Coverage does not apply to
expense ($79,500 + $40,000 = $119,500) would costs to test for, monitor or assess the
exceed the Limit of Insurance ($90,000). The existence, concentration or effects of
additional amount of covered debris removal expense "pollutants". But we will pay for testing
is $25,000, the maximum payable under Paragraph which is performed in the course of
(4). Thus, the total payable for debris removal extracting the "pollutants" from the land or
expense in this example is $35,500; $4,500 of the water.
debris removal expense is not covered.

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 The most we will pay under this Additional (6) The most we will pay under this
Coverage for each described premises is Additional Coverage, for each described
$10,000 for the sum of all covered building insured under this Coverage
expenses arising out of Covered Causes of Form, is $10,000 or 5% of the Limit of
Loss occurring during each separate 12- Insurance applicable to that building,
month period of this policy. whichever is less. If a damaged building
e. Increased Cost Of Construction is covered under a blanket Limit of
Insurance which applies to more than
(1) This Additional Coverage applies only to one building or item of property, then the
buildings to which the Replacement most we will pay under this Additional
Cost Optional Coverage applies. Coverage, for that damaged building, is
(2) In the event of damage by a Covered the lesser of $10,000 or 5% times the
Cause of Loss to a building that is value of the damaged building as of the
Covered Property, we will pay the time of loss times the applicable
increased costs incurred to comply with Coinsurance percentage.
the minimum standards of an ordinance The amount payable under this
or law in the course of repair, rebuilding Additional Coverage is additional
or replacement of damaged parts of that insurance.
property, subject to the limitations stated
in e.(3) through e.(9) of this Additional (7) With respect to this Additional
Coverage. Coverage:
(3) The ordinance or law referred to in e.(2) (a) We will not pay for the Increased
of this Additional Coverage is an Cost of Construction:
ordinance or law that regulates the (i) Until the property is actually
construction or repair of buildings or repaired or replaced, at the same
establishes zoning or land use or another premises; and
requirements at the described premises (ii) Unless the repair or replacement
and is in force at the time of loss. is made as soon as reasonably
(4) Under this Additional Coverage, we will possible after the loss or
not pay any costs due to an ordinance damage, not to exceed two
or law that: years. We may extend this period
(a) You were required to comply with in writing during the two years.
before the loss, even when the (b) If the building is repaired or replaced
building was undamaged; and at the same premises, or if you elect
(b) You failed to comply with. to rebuild at another premises, the
most we will pay for the Increased
(5) Under this Additional Coverage, we will Cost of Construction, subject to the
not pay for: provisions of e.(6) of this Additional
(a) The enforcement of or compliance Coverage, is the increased cost of
with any ordinance or law which construction at the same premises.
requires demolition, repair, (c) If the ordinance or law requires
replacement, reconstruction, relocation to another premises, the
remodeling or remediation of most we will pay for the Increased
property due to contamination by Cost of Construction, subject to the
"pollutants" or due to the presence, provisions of e.(6) of this Additional
growth, proliferation, spread or any Coverage, is the increased cost of
activity of "fungus", wet or dry rot or construction at the new premises.
bacteria; or
(8) This Additional Coverage is not subject
(b) Any costs associated with the to the terms of the Ordinance Or Law
enforcement of or compliance with Exclusion to the extent that such
an ordinance or law which requires Exclusion would conflict with the
any insured or others to test for, provisions of this Additional Coverage.
monitor, clean up, remove, contain,
treat, detoxify or neutralize, or in any
way respond to, or assess the
effects of "pollutants", "fungus", wet
or dry rot or bacteria.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 5 of 15

 (9) The costs addressed in the Loss (d) The Covered Causes of Loss include
Payment and Valuation Conditions and a virus, harmful code or similar
the Replacement Cost Optional instruction introduced into or enacted
Coverage, in this Coverage Form, do on a computer system (including
not include the increased cost electronic data) or a network to
attributable to enforcement of or which it is connected, designed to
compliance with an ordinance or law. damage or destroy any part of the
The amount payable under this system or disrupt its normal
Additional Coverage, as stated in e.(6) operation. But there is no coverage
of this Additional Coverage, is not for loss or damage caused by or
subject to such limitation. resulting from manipulation of a
f. Electronic Data computer system (including
electronic data) by any employee,
(1) Under this Additional Coverage, including a temporary or leased
electronic data has the meaning employee, or by an entity retained by
described under Property Not Covered, you or for you to inspect, design,
Electronic Data. This Additional install, modify, maintain, repair or
Coverage does not apply to electronic replace that system.
data which is integrated in and operates
or controls the building's elevator, (4) The most we will pay under this
lighting, heating, ventilation, air Additional Coverage, Electronic Data, is
conditioning or security system. $2,500 (unless a higher limit is shown in
the Declarations) for all loss or damage
(2) Subject to the provisions of this sustained in any one policy year,
Additional Coverage, we will pay for the regardless of the number of occurrences
cost to replace or restore electronic data of loss or damage or the number of
which has been destroyed or corrupted premises, locations or computer
by a Covered Cause of Loss. To the systems involved. If loss payment on the
extent that electronic data is not first occurrence does not exhaust this
replaced or restored, the loss will be amount, then the balance is available for
valued at the cost of replacement of the subsequent loss or damage sustained in
media on which the electronic data was but not after that policy year. With
stored, with blank media of substantially respect to an occurrence which begins
identical type. in one policy year and continues or
(3) The Covered Causes of Loss applicable results in additional loss or damage in a
to Your Business Personal Property subsequent policy year(s), all loss or
apply to this Additional Coverage, damage is deemed to be sustained in
Electronic Data, subject to the following: the policy year in which the occurrence
began.
(a) If the Causes Of Loss – Special
Form applies, coverage under this 5. Coverage Extensions
Additional Coverage, Electronic Except as otherwise provided, the following
Data, is limited to the "specified Extensions apply to property located in or on
causes of loss" as defined in that the building described in the Declarations or in
form and Collapse as set forth in that the open (or in a vehicle) within 100 feet of the
form. described premises.
(b) If the Causes Of Loss – Broad Form If a Coinsurance percentage of 80% or more is
applies, coverage under this shown in the Declarations, you may extend the
Additional Coverage, Electronic insurance provided by this Coverage Part as
Data, includes Collapse as set forth follows:
in that form.
a. Newly Acquired Or Constructed
(c) If the Causes Of Loss form is Property
endorsed to add a Covered Cause of
Loss, the additional Covered Cause (1) Buildings
of Loss does not apply to the You may extend the insurance that
coverage provided under this applies to Building to apply to:
Additional Coverage, Electronic (a) Your new buildings while being built
Data. on the described premises; and

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 (b) Buildings you acquire at locations, (b) 30 days expire after you acquire the
other than the described premises, property or begin construction of that
intended for: part of the building that would qualify
(i) Similar use as the building as covered property; or
described in the Declarations; or (c) You report values to us.
(ii) Use as a warehouse. We will charge you additional premium
The most we will pay for loss or damage for values reported from the date you
under this Extension is $250,000 at acquire the property or begin
each building. construction of that part of the building
that would qualify as covered property.
(2) Your Business Personal Property
b. Personal Effects And Property Of Others
(a) If this policy covers Your Business
Personal Property, you may extend You may extend the insurance that applies
that insurance to apply to: to Your Business Personal Property to
apply to:
(i) Business personal property,
including such property that you (1) Personal effects owned by you, your
newly acquire, at any location officers, your partners or members, your
you acquire other than at fairs, managers or your employees. This
trade shows or exhibitions; or Extension does not apply to loss or
damage by theft.
(ii) Business personal property,
including such property that you (2) Personal property of others in your care,
newly acquire, located at your custody or control.
newly constructed or acquired The most we will pay for loss or damage
buildings at the location under this Extension is $2,500 at each
described in the Declarations. described premises. Our payment for loss
The most we will pay for loss or damage of or damage to personal property of others
under this Extension is $100,000 at will only be for the account of the owner of
each building. the property.
(b) This Extension does not apply to: c. Valuable Papers And Records (Other
Than Electronic Data)
(i) Personal property of others that
is temporarily in your possession (1) You may extend the insurance that
in the course of installing or applies to Your Business Personal
performing work on such Property to apply to the cost to replace
property; or or restore the lost information on
valuable papers and records for which
(ii) Personal property of others that duplicates do not exist. But this
is temporarily in your possession Extension does not apply to valuable
in the course of your papers and records which exist as
manufacturing or wholesaling electronic data. Electronic data has the
activities. meaning described under Property Not
(3) Period Of Coverage Covered, Electronic Data.
With respect to insurance provided (2) If the Causes Of Loss – Special Form
under this Coverage Extension for applies, coverage under this Extension
Newly Acquired Or Constructed is limited to the "specified causes of
Property, coverage will end when any of loss" as defined in that form and
the following first occurs: Collapse as set forth in that form.
(a) This policy expires; (3) If the Causes Of Loss – Broad Form
applies, coverage under this Extension
includes Collapse as set forth in that
form.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 7 of 15

 (4) Under this Extension, the most we will (3) Explosion;
pay to replace or restore the lost (4) Riot or Civil Commotion; or
information is $2,500 at each described
premises, unless a higher limit is shown (5) Aircraft.
in the Declarations. Such amount is The most we will pay for loss or damage
additional insurance. We will also pay under this Extension is $1,000, but not
for the cost of blank material for more than $250 for any one tree, shrub or
reproducing the records (whether or not plant. These limits apply to any one
duplicates exist) and (when there is a occurrence, regardless of the types or
duplicate) for the cost of labor to number of items lost or damaged in that
transcribe or copy the records. The occurrence.
costs of blank material and labor are
Subject to all aforementioned terms and
subject to the applicable Limit of
limitations of coverage, this Coverage
Insurance on Your Business Personal Extension includes the expense of
Property and, therefore, coverage of removing from the described premises the
such costs is not additional insurance.
debris of trees, shrubs and plants which are
d. Property Off-premises the property of others.
(1) You may extend the insurance provided f. Non-owned Detached Trailers
by this Coverage Form to apply to your (1) You may extend the insurance that
Covered Property while it is away from applies to Your Business Personal
the described premises, if it is:
Property to apply to loss or damage to
(a) Temporarily at a location you do not trailers that you do not own, provided
own, lease or operate; that:
(b) In storage at a location you lease, (a) The trailer is used in your business;
provided the lease was executed
(b) The trailer is in your care, custody or
after the beginning of the current
control at the premises described in
policy term; or the Declarations; and
(c) At any fair, trade show or exhibition. (c) You have a contractual responsibility
(2) This Extension does not apply to to pay for loss or damage to the
property: trailer.
(a) In or on a vehicle; or (2) We will not pay for any loss or damage
(b) In the care, custody or control of that occurs:
your salespersons, unless the (a) While the trailer is attached to any
property is in such care, custody or motor vehicle or motorized
control at a fair, trade show or conveyance, whether or not the
exhibition. motor vehicle or motorized
(3) The most we will pay for loss or damage conveyance is in motion;
under this Extension is $10,000. (b) During hitching or unhitching
e. Outdoor Property operations, or when a trailer
becomes accidentally unhitched from
You may extend the insurance provided by a motor vehicle or motorized
this Coverage Form to apply to your conveyance.
outdoor fences, radio and television
antennas (including satellite dishes), trees, (3) The most we will pay for loss or damage
shrubs and plants (other than trees, shrubs under this Extension is $5,000, unless a
or plants which are "stock" or are part of a higher limit is shown in the Declarations.
vegetated roof), including debris removal (4) This insurance is excess over the
expense, caused by or resulting from any of amount due (whether you can collect on
the following causes of loss if they are it or not) from any other insurance
Covered Causes of Loss: covering such property.
(1) Fire;
(2) Lightning;

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 g. Business Personal Property Temporarily C. Limits Of Insurance
In Portable Storage Units The most we will pay for loss or damage in any
(1) You may extend the insurance that one occurrence is the applicable Limit Of
applies to Your Business Personal Insurance shown in the Declarations.
Property to apply to such property while The most we will pay for loss or damage to
temporarily stored in a portable storage outdoor signs, whether or not the sign is attached
unit (including a detached trailer) to a building, is $2,500 per sign in any one
located within 100 feet of the described occurrence.
premises.
The amounts of insurance stated in the following
(2) If the applicable Covered Causes of Additional Coverages apply in accordance with the
Loss form or endorsement contains a terms of such coverages and are separate from
limitation or exclusion concerning loss or the Limit(s) Of Insurance shown in the
damage from sand, dust, sleet, snow, Declarations for any other coverage:
ice or rain to property in a structure,
such limitation or exclusion also applies 1. Fire Department Service Charge;
to property in a portable storage unit. 2. Pollutant Clean-up And Removal;
(3) Coverage under this Extension: 3. Increased Cost Of Construction; and
(a) Will end 90 days after the business 4. Electronic Data.
personal property has been placed in
Payments under the Preservation Of Property
the storage unit;
Additional Coverage will not increase the
(b) Does not apply if the storage unit applicable Limit of Insurance.
itself has been in use at the D. Deductible
described premises for more than 90
consecutive days, even if the In any one occurrence of loss or damage
business personal property has been (hereinafter referred to as loss), we will first reduce
stored there for 90 or fewer days as the amount of loss if required by the Coinsurance
of the time of loss or damage. Condition or the Agreed Value Optional Coverage.
If the adjusted amount of loss is less than or equal
(4) Under this Extension, the most we will to the Deductible, we will not pay for that loss. If
pay for the total of all loss or damage to the adjusted amount of loss exceeds the
business personal property is $10,000 Deductible, we will then subtract the Deductible
(unless a higher limit is indicated in the
from the adjusted amount of loss and will pay the
Declarations for such Extension) resulting amount or the Limit of Insurance,
regardless of the number of storage whichever is less.
units. Such limit is part of, not in addition
to, the applicable Limit of Insurance on When the occurrence involves loss to more than
Your Business Personal Property. one item of Covered Property and separate Limits
Therefore, payment under this of Insurance apply, the losses will not be
Extension will not increase the combined in determining application of the
applicable Limit of Insurance on Your Deductible. But the Deductible will be applied only
Business Personal Property. once per occurrence.
(5) This Extension does not apply to loss or Example 1
damage otherwise covered under this (This example assumes there is no Coinsurance
Coverage Form or any endorsement to penalty.)
this Coverage Form or policy, and does
not apply to loss or damage to the Deductible: $ 250
storage unit itself. Limit of Insurance – Building 1: $ 60,000
Each of these Extensions is additional insurance Limit of Insurance – Building 2: $ 80,000
unless otherwise indicated. The Additional
Loss to Building 1: $ 60,100
Condition, Coinsurance, does not apply to these
Extensions. Loss to Building 2: $ 90,000
B. Exclusions And Limitations The amount of loss to Building 1 ($60,100) is less
See applicable Causes Of Loss form as shown in than the sum ($60,250) of the Limit of Insurance
the Declarations. applicable to Building 1 plus the Deductible.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 9 of 15

The Deductible will be subtracted from the amount of b. Bear the other expenses of the appraisal
loss in calculating the loss payable for Building 1: and umpire equally.
$ 60,100 If there is an appraisal, we will still retain our
– 250 right to deny the claim.
$ 59,850 Loss Payable – Building 1 3. Duties In The Event Of Loss Or Damage
The Deductible applies once per occurrence and a. You must see that the following are done in
therefore is not subtracted in determining the amount the event of loss or damage to Covered
of loss payable for Building 2. Loss payable for Property:
Building 2 is the Limit of Insurance of $80,000. (1) Notify the police if a law may have been
Total amount of loss payable: broken.
$59,850 + $80,000 = $139,850 (2) Give us prompt notice of the loss or
damage. Include a description of the
Example 2 property involved.
(This example, too, assumes there is no Coinsurance (3) As soon as possible, give us a
penalty.) description of how, when and where the
The Deductible and Limits of Insurance are the same loss or damage occurred.
as those in Example 1. (4) Take all reasonable steps to protect the
Covered Property from further damage,
Loss to Building 1: $ 70,000 and keep a record of your expenses
(Exceeds Limit of Insurance plus Deductible) necessary to protect the Covered
Loss to Building 2: $ 90,000 Property, for consideration in the
settlement of the claim. This will not
(Exceeds Limit of Insurance plus Deductible)
increase the Limit of Insurance.
Loss Payable – Building 1: $ 60,000 However, we will not pay for any
(Limit of Insurance) subsequent loss or damage resulting
Loss Payable – Building 2: $ 80,000 from a cause of loss that is not a
Covered Cause of Loss. Also, if
(Limit of Insurance) feasible, set the damaged property
Total amount of loss payable: $ 140,000 aside and in the best possible order for
E. Loss Conditions examination.
The following conditions apply in addition to the (5) At our request, give us complete
Common Policy Conditions and the Commercial inventories of the damaged and
Property Conditions: undamaged property. Include quantities,
costs, values and amount of loss
1. Abandonment claimed.
There can be no abandonment of any property (6) As often as may be reasonably required,
to us. permit us to inspect the property proving
2. Appraisal the loss or damage and examine your
books and records.
If we and you disagree on the value of the
property or the amount of loss, either may Also, permit us to take samples of
make written demand for an appraisal of the damaged and undamaged property for
loss. In this event, each party will select a inspection, testing and analysis, and
competent and impartial appraiser. The two permit us to make copies from your
appraisers will select an umpire. If they cannot books and records.
agree, either may request that selection be (7) Send us a signed, sworn proof of loss
made by a judge of a court having jurisdiction. containing the information we request to
The appraisers will state separately the value investigate the claim. You must do this
of the property and amount of loss. If they fail within 60 days after our request. We will
to agree, they will submit their differences to supply you with the necessary forms.
the umpire. A decision agreed to by any two
will be binding. Each party will: (8) Cooperate with us in the investigation or
settlement of the claim.
a. Pay its chosen appraiser; and

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 b. We may examine any insured under oath, g. We will pay for covered loss or damage to
while not in the presence of any other Covered Property within 30 days after we
insured and at such times as may be receive the sworn proof of loss, if you have
reasonably required, about any matter complied with all of the terms of this
relating to this insurance or the claim, Coverage Part, and:
including an insured's books and records. In (1) We have reached agreement with you
the event of an examination, an insured's on the amount of loss; or
answers must be signed.
(2) An appraisal award has been made.
4. Loss Payment
If you name an insurance trustee, we will
a. In the event of loss or damage covered by adjust losses with you, but we will pay the
this Coverage Form, at our option, we will insurance trustee. If we pay the trustee, the
either: payments will satisfy your claims against
(1) Pay the value of lost or damaged us.
property; h. A party wall is a wall that separates and is
(2) Pay the cost of repairing or replacing the common to adjoining buildings that are
lost or damaged property, subject to b. owned by different parties. In settling
below; covered losses involving a party wall, we
(3) Take all or any part of the property at an will pay a proportion of the loss to the party
agreed or appraised value; or wall based on your interest in the wall in
proportion to the interest of the owner of the
(4) Repair, rebuild or replace the property adjoining building. However, if you elect to
with other property of like kind and repair or replace your building and the
quality, subject to b. below. owner of the adjoining building elects not to
We will determine the value of lost or repair or replace that building, we will pay
damaged property, or the cost of its repair you the full value of the loss to the party
or replacement, in accordance with the wall, subject to all applicable policy
applicable terms of the Valuation Condition provisions including Limits of Insurance, the
in this Coverage Form or any applicable Valuation and Coinsurance Conditions and
provision which amends or supersedes the all other provisions of this Loss Payment
Valuation Condition. Condition. Our payment under the
provisions of this paragraph does not alter
b. The cost to repair, rebuild or replace does
any right of subrogation we may have
not include the increased cost attributable
to enforcement of or compliance with any against any entity, including the owner or
ordinance or law regulating the insurer of the adjoining building, and does
not alter the terms of the Transfer Of Rights
construction, use or repair of any property.
Of Recovery Against Others To Us
c. We will give notice of our intentions within Condition in this policy.
30 days after we receive the sworn proof of
loss. 5. Recovered Property
If either you or we recover any property after
d. We will not pay you more than your
loss settlement, that party must give the other
financial interest in the Covered Property.
prompt notice. At your option, the property will
e. We may adjust losses with the owners of be returned to you. You must then return to us
lost or damaged property if other than you. the amount we paid to you for the property. We
If we pay the owners, such payments will will pay recovery expenses and the expenses
satisfy your claims against us for the to repair the recovered property, subject to the
owners' property. We will not pay the Limit of Insurance.
owners more than their financial interest in
the Covered Property. 6. Unit-owner's Insurance
f. We may elect to defend you against suits A unit-owner may have other insurance
arising from claims of owners of property. covering the same property as this insurance.
We will do this at our expense. This insurance is intended to be primary and
not to contribute with such other insurance.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 11 of 15

 7. Vacancy 8. Valuation
a. Description Of Terms We will determine the value of Covered
(1) As used in this Vacancy Condition, the Property in the event of loss or damage as
term building and the term vacant have follows:
the meanings set forth in (1)(a) and a. At actual cash value as of the time of loss
(1)(b) below: or damage, except as provided in b. and c.
(a) When this policy is issued to a below.
tenant, and with respect to that b. If the Limit of Insurance for Building
tenant's interest in Covered Property, satisfies the Additional Condition,
building means the unit or suite Coinsurance, and the cost to repair or
rented or leased to the tenant. Such replace the damaged building property is
building is vacant when it does not $2,500 or less, we will pay the cost of
contain enough business personal building repairs or replacement.
property to conduct customary The cost of building repairs or replacement
operations. does not include the increased cost
(b) When this policy is issued to the attributable to enforcement of or
owner or general lessee of a compliance with any ordinance or law
building, building means the entire regulating the construction, use or repair of
building. Such building is vacant any property. However, the following
unless at least 31% of its total property will be valued at the actual cash
square footage is: value, even when attached to the building:
(i) Rented to a lessee or sublessee (1) Awnings or floor coverings;
and used by the lessee or (2) Appliances for refrigerating, ventilating,
sublessee to conduct its cooking, dishwashing or laundering; or
customary operations; and/or
(3) Outdoor equipment or furniture.
(ii) Used by the building owner to
conduct customary operations. c. Glass at the cost of replacement with
safety-glazing material if required by law.
(2) Buildings under construction or
renovation are not considered vacant. 9. Waiver Of Rights Of Recovery
b. Vacancy Provisions We waive our rights to recover payment from
any unit-owner of the condominium that is
If the building where loss or damage occurs shown in the Declarations.
has been vacant for more than 60
consecutive days before that loss or F. Additional Conditions
damage occurs: The following conditions apply in addition to the
(1) We will not pay for any loss or damage Common Policy Conditions and the Commercial
caused by any of the following even if Property Conditions:
they are Covered Causes of Loss: 1. Coinsurance
(a) Vandalism; If a Coinsurance percentage is shown in the
(b) Sprinkler leakage, unless you have Declarations, the following condition applies:
protected the system against a. We will not pay the full amount of any loss if
freezing; the value of Covered Property at the time of
(c) Building glass breakage; loss times the Coinsurance percentage
shown for it in the Declarations is greater
(d) Water damage; than the Limit of Insurance for the property.
(e) Theft; or Instead, we will determine the most we will
(f) Attempted theft. pay using the following steps:
(2) With respect to Covered Causes of Loss (1) Multiply the value of Covered Property
other than those listed in b.(1)(a) at the time of loss by the Coinsurance
through b.(1)(f) above, we will reduce percentage;
the amount we would otherwise pay for (2) Divide the Limit of Insurance of the
the loss or damage by 15%. property by the figure determined in
Step (1);

Page 12 of 15 © Insurance Services Office, Inc., 2011 CP 00 17 10 12

 (3) Multiply the total amount of loss, before Example 3
the application of any deductible, by the
figure determined in Step (2); and When: The value of the property is:
(4) Subtract the deductible from the figure Building at Location 1: $ 75,000
determined in Step (3). Building at Location 2: $ 100,000
We will pay the amount determined in Step (4) or Personal Property
the Limit of Insurance, whichever is less. For the at Location 2: $ 75,000
remainder, you will either have to rely on other $ 250,000
insurance or absorb the loss yourself. The Coinsurance percentage
Example 1 (Underinsurance) for it is: 90%
The Limit of Insurance for
When: The value of the property is: $ 250,000 Buildings and Personal Property
The Coinsurance percentage at Locations 1 and 2 is: $ 180,000
for it is: 80% The Deductible is: $ 1,000
The Limit of Insurance for it is: $ 100,000 The amount of loss is:
The Deductible is: $ 250 Building at Location 2: $ 30,000
The amount of loss is: $ 40,000 Personal Property
Step (1): $250,000 x 80% = $200,000 at Location 2: $ 20,000
(the minimum amount of insurance to $ 50,000
meet your Coinsurance requirements)
Step (1): $250,000 x 90% = $225,000
Step (2): $100,000 ÷ $200,000 = .50
(the minimum amount of insurance to
Step (3): $40,000 x .50 = $20,000 meet your Coinsurance requirements
Step (4): $20,000 – $250 = $19,750 and to avoid the penalty shown below)
We will pay no more than $19,750. The remaining Step (2): $180,000 ÷ $225,000 = .80
$20,250 is not covered. Step (3): $50,000 x .80 = $40,000
Example 2 (Adequate Insurance) Step (4): $40,000 – $1,000 = $39,000

When: The value of the property is: $ 250,000 We will pay no more than $39,000. The remaining
$11,000 is not covered.
The Coinsurance percentage
for it is: 80% 2. Mortgageholders
The Limit of Insurance for it is: $ 200,000 a. The term mortgageholder includes trustee.
The Deductible is: $ 250 b. We will pay for covered loss of or damage
The amount of loss is: $ 40,000 to buildings or structures to each
mortgageholder shown in the Declarations
The minimum amount of insurance to meet your in their order of precedence, as interests
Coinsurance requirement is $200,000 ($250,000 x may appear.
80%). Therefore, the Limit of Insurance in this c. The mortgageholder has the right to receive
example is adequate and no penalty applies. We will loss payment even if the mortgageholder
pay no more than $39,750 ($40,000 amount of loss has started foreclosure or similar action on
minus the deductible of $250). the building or structure.
b. If one Limit of Insurance applies to two or d. If we deny your claim because of your acts
more separate items, this condition will or because you have failed to comply with
apply to the total of all property to which the the terms of this Coverage Part, the
limit applies. mortgageholder will still have the right to
receive loss payment if the mortgageholder:
(1) Pays any premium due under this
Coverage Part at our request if you
have failed to do so;

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 13 of 15

 (2) Submits a signed, sworn proof of loss b. If the expiration date for this Optional
within 60 days after receiving notice Coverage shown in the Declarations is not
from us of your failure to do so; and extended, the Additional Condition,
(3) Has notified us of any change in Coinsurance, is reinstated and this Optional
ownership, occupancy or substantial Coverage expires.
change in risk known to the c. The terms of this Optional Coverage apply
mortgageholder. only to loss or damage that occurs:
All of the terms of this Coverage Part will (1) On or after the effective date of this
then apply directly to the mortgageholder. Optional Coverage; and
e. If we pay the mortgageholder for any loss (2) Before the Agreed Value expiration date
or damage and deny payment to you shown in the Declarations or the policy
because of your acts or because you have expiration date, whichever occurs first.
failed to comply with the terms of this 2. Inflation Guard
Coverage Part:
a. The Limit of Insurance for property to which
(1) The mortgageholder's rights under the this Optional Coverage applies will
mortgage will be transferred to us to the automatically increase by the annual
extent of the amount we pay; and percentage shown in the Declarations.
(2) The mortgageholder's right to recover b. The amount of increase will be:
the full amount of the mortgageholder's
claim will not be impaired. (1) The Limit of Insurance that applied on
the most recent of the policy inception
At our option, we may pay to the date, the policy anniversary date, or any
mortgageholder the whole principal on the other policy change amending the Limit
mortgage plus any accrued interest. In this of Insurance, times
event, your mortgage and note will be
transferred to us and you will pay your (2) The percentage of annual increase
remaining mortgage debt to us. shown in the Declarations, expressed as
a decimal (example: 8% is .08), times
f. If we cancel this policy, we will give written
notice to the mortgageholder at least: (3) The number of days since the beginning
of the current policy year or the effective
(1) 10 days before the effective date of date of the most recent policy change
cancellation if we cancel for your amending the Limit of Insurance, divided
nonpayment of premium; or by 365.
(2) 30 days before the effective date of Example
cancellation if we cancel for any other
reason. If: The applicable Limit of Insurance is: $ 100,000
g. If we elect not to renew this policy, we will The annual percentage increase is: 8%
give written notice to the mortgageholder at The number of days since the
least 10 days before the expiration date of beginning of the policy year
this policy. (or last policy change) is: 146
G. Optional Coverages The amount of increase is:
If shown as applicable in the Declarations, the $100,000 x .08 x 146 ÷ 365 = $ 3,200
following Optional Coverages apply separately to
3. Replacement Cost
each item:
a. Replacement Cost (without deduction for
1. Agreed Value
depreciation) replaces Actual Cash Value in
a. The Additional Condition, Coinsurance, the Loss Condition, Valuation, of this
does not apply to Covered Property to Coverage Form.
which this Optional Coverage applies. We
b. This Optional Coverage does not apply to:
will pay no more for loss of or damage to
that property than the proportion that the (1) Personal property of others;
Limit of Insurance under this Coverage Part (2) Contents of a residence; or
for the property bears to the Agreed Value
shown for it in the Declarations. (3) Works of art, antiques or rare articles,
including etchings, pictures, statuary,
marbles, bronzes, porcelains and bric-a-
brac.

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 Under the terms of this Replacement Cost f. The cost of repair or replacement does not
Optional Coverage, personal property include the increased cost attributable to
owned indivisibly by all unit-owners, and the enforcement of or compliance with any
property covered under Paragraph A.1.a.(6) ordinance or law regulating the
of this Coverage Form, are not considered construction, use or repair of any property.
to be the personal property of others. 4. Extension Of Replacement Cost To
c. You may make a claim for loss or damage Personal Property Of Others
covered by this insurance on an actual cash a. If the Replacement Cost Optional Coverage
value basis instead of on a replacement is shown as applicable in the Declarations,
cost basis. In the event you elect to have then this Extension may also be shown as
loss or damage settled on an actual cash applicable. If the Declarations show this
value basis, you may still make a claim for Extension as applicable, then Paragraph
the additional coverage this Optional 3.b.(1) of the Replacement Cost Optional
Coverage provides if you notify us of your Coverage is deleted and all other provisions
intent to do so within 180 days after the loss of the Replacement Cost Optional
or damage. Coverage apply to replacement cost on
d. We will not pay on a replacement cost basis personal property of others.
for any loss or damage: b. With respect to replacement cost on the
(1) Until the lost or damaged property is personal property of others, the following
actually repaired or replaced; and limitation applies:
(2) Unless the repair or replacement is If an item(s) of personal property of others
made as soon as reasonably possible is subject to a written contract which
after the loss or damage. governs your liability for loss or damage to
e. We will not pay more for loss or damage on that item(s), then valuation of that item(s)
a replacement cost basis than the least of will be based on the amount for which you
(1), (2) or (3), subject to f. below: are liable under such contract, but not to
exceed the lesser of the replacement cost
(1) The Limit of Insurance applicable to the of the property or the applicable Limit of
lost or damaged property; Insurance.
(2) The cost to replace the lost or damaged H. Definitions
property with other property:
1. "Fungus" means any type or form of fungus,
(a) Of comparable material and quality; including mold or mildew, and any mycotoxins,
and spores, scents or by-products produced or
(b) Used for the same purpose; or released by fungi.
(3) The amount actually spent that is 2. "Pollutants" means any solid, liquid, gaseous or
necessary to repair or replace the lost or thermal irritant or contaminant, including
damaged property. smoke, vapor, soot, fumes, acids, alkalis,
chemicals and waste. Waste includes materials
If a building is rebuilt at a new premises, the
cost described in e.(2) above is limited to to be recycled, reconditioned or reclaimed.
the cost which would have been incurred if 3. "Stock" means merchandise held in storage or
the building had been rebuilt at the original for sale, raw materials and in-process or
premises. finished goods, including supplies used in their
packing or shipping.

CP 00 17 10 12 © Insurance Services Office, Inc., 2011 Page 15 of 15