Extensions

Optional Coverages

Optional Coverages – Time Element Insurance

Limits of Insurance

Property Insurance Coverage Extensions

1. Debris Removal

a. We will pay your expense to remove debris of Covered Property and other debris that is on the described premises, when such debris is caused by or results from Flood. However, we will not pay to remove deposits of mud or earth from the grounds of the described premises.

b. We will also pay the expense to remove debris of Covered Property that has floated or been hurled off the described premises by Flood.

c. This coverage for Debris Removal, as set forth in a. and b., does not increase the applicable Limit of Insurance. Therefore, the most we will pay for the total of loss or damage to Covered Property and removal of debris of property at the described premises is the Limit of Insurance that applies to such Covered Property.

2. Removal For Preservation Of Property.

If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by Flood or imminent danger of Flood, we will pay for any direct physical loss or damage to that property:

a. While it is being moved or while temporarily stored at another location; and

b. Only if the loss or damage occurs within 45 days after the property is first moved.

This Coverage Extension does not increase the Limit of Insurance applicable to the

Covered Property.

3. Loss Avoidance Expenses

a. We will pay up to $1,000 for reasonable expenses incurred in moving Covered

Property from the described premises in accordance with D.2. above.

b. We will pay up to a total of $1,000 for reasonable expenses you incur to protect the described premises from loss or damage by Flood or imminent danger of Flood. Such expenses are limited to sandbags including the sand for filling them, fill for temporary levees, pumps, and plastic sheeting and lumber used in connection with any of the foregoing, and the related cost of labor.

The amounts payable under this Coverage Extension are part of, not in addition to, the Limit of Insurance that applies to Covered Property at the described premises. No Deductible applies to this Coverage Extension.

4. Electronic Data

a. Under this Coverage Extension, electronic data has the meaning described under Property Not Covered – Electronic Data. This Coverage Extension does not apply to your "stock" of prepackaged software, or to electronic data which is integrated in and operates or controls the building's elevator, lighting, heating, ventilation, air conditioning or security system.

b. You may extend the insurance that applies to Your Business Personal Property to apply to the cost to replace or restore electronic data which has been destroyed or corrupted by Flood. To the extent that electronic data is not replaced or restored, the loss will be valued at the cost of replacement of the media on which the electronic data was stored, with blank media of substantially identical type.

c. The most we will pay under this Coverage Extension for Electronic Data is $2,500 (unless a higher limit is shown in the Declarations), regardless of the number of computers or computer systems at the described premises. Such amount is part of, not in addition to, the Limit of Insurance that applies to Your Business Personal Property at the described premises.

 Analysis

The policy includes seven coverage extensions. The first is debris removal, a standard coverage. Coverage is for the removal of covered property and other debris on the premises when caused by or resulting from flood. However, the removal of mud or earth deposits from the grounds of the described premises is not covered. If the flood damages the structure so that parts of it are strewn about the grounds, the removal of those pieces is covered. Likewise, if debris from a neighboring property is deposited on the grounds by the flood, the removal of that debris is also covered. However, removal of deposits of mud or earth from the grounds of the premises is not covered. If debris of covered property has been floated or hurled off the property by the flood onto other property, the removal of that debris is covered. For example, if the loading dock door was pushed out by the water and it floated onto neighboring property, the removal of the door from the neighboring property is covered. The policy does not provide any limit as to distance of where property will be removed from. If the loading dock doors are found ½ a mile away, the policy will still pay to remove them from where the flood deposited them. There is no increase in limits when debris removal coverage is provided.

 At times, it is necessary to remove covered property from the site in order to preserve it from damage or imminent danger of flood. Any direct damage to such property is covered while it is being moved or stored temporarily at another location, and only if the damage occurs within 45 days after the property is first moved. Note that similar to other standard ISO forms, coverage is for any direct damage, and does not have to be from flood when the property is moved. Again, this does not increase the coverage limits.

 Loss avoidance expense provides coverage for actually moving the property to remove it from danger. Up to $1,000 for reasonable moving expenses is covered. Another $1,000 is available for protecting the premises from damage by or imminent danger of damage by flood. This includes costs for sandbags and sand, fill for temporary levees, pumps, plastic sheeting and lumber used as part of the protection process, and cost of labor. Again, this is not in addition to the limits on the policy. No deductible applies.

 While electronic data is excluded under property not covered, there is an extension for electronic data that provides coverage for such data destroyed by flood. Electronic data is defined under property not covered and includes information, facts or programs stored, created or used on, or transmitted to or from software, discs or other processing devices or repositories. Programs are electronic instructions that direct operations and functions of a computer. Not included in electronic data is stock or prepackaged software, or data that is integrated in and controls elevators, heating, ventilation and air conditioning of the building.

 This coverage allows the insured to extend the business personal property coverage to apply to the cost to replace or restore electronic data destroyed or corrupted by flood. If the data is not replaced, the loss is valued at the cost of replacing the media with blank media of the same type. Unless a higher limit is listed in the declarations, the limit is $2,500 regardless of the number of computers or systems at the premises. This amount is again, part of the limit, and not in addition to the business personal property limit.