CAUSES OF LOSS – SPECIAL FORM

COMMERCIAL PROPERTY

CP 10 30 09 17

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Words and phrases that appear in quotation marks have special meaning. Refer to Section G. Definitions.

A. Covered Causes Of Loss

When Special is shown in the Declarations,

Covered Causes of Loss means direct physical

loss unless the loss is excluded or limited in this

policy.

B. Exclusions

1. We will not pay for loss or damage caused

directly or indirectly by any of the following.

Such loss or damage is excluded regardless of

any other cause or event that contributes

concurrently or in any sequence to the loss.

a. Ordinance Or Law

The enforcement of or compliance with any

ordinance or law:

(1) Regulating the construction, use or

repair of any property; or

(2) Requiring the tearing down of any

property, including the cost of removing

its debris.

This exclusion, Ordinance Or Law, applies

whether the loss results from:

(a) An ordinance or law that is enforced

even if the property has not been

damaged; or

(b) The increased costs incurred to

comply with an ordinance or law in

the course of construction, repair,

renovation, remodeling or demolition

of property, or removal of its debris,

following a physical loss to that

property.

b. Earth Movement

(1) Earthquake, including tremors and

aftershocks and any earth sinking, rising

or shifting related to such event;

(2) Landslide, including any earth sinking,

rising or shifting related to such event;

(3) Mine subsidence, meaning subsidence

of a man-made mine, whether or not

mining activity has ceased;

(4) Earth sinking (other than sinkhole

collapse), rising or shifting including soil

conditions which cause settling,

cracking or other disarrangement of

foundations or other parts of realty. Soil

conditions include contraction,

expansion, freezing, thawing, erosion,

improperly compacted soil and the

action of water under the ground

surface.

But if Earth Movement, as described in

b.(1) through (4) above, results in fire or

explosion, we will pay for the loss or

damage caused by that fire or explosion.

(5) Volcanic eruption, explosion or effusion.

But if volcanic eruption, explosion or

effusion results in fire, building glass

breakage or Volcanic Action, we will pay

for the loss or damage caused by that

fire, building glass breakage or Volcanic

Action.

Volcanic Action means direct loss or

damage resulting from the eruption of a

volcano when the loss or damage is

caused by:

(a) Airborne volcanic blast or airborne

shock waves;

(b) Ash, dust or particulate matter; or

(c) Lava flow.

With respect to coverage for Volcanic

Action as set forth in (5)(a), (5)(b) and

(5)(c), all volcanic eruptions that occur

within any 168-hour period will constitute

a single occurrence.

Volcanic Action does not include the

cost to remove ash, dust or particulate

matter that does not cause direct

physical loss or damage to the

described property.

This exclusion applies regardless of

whether any of the above, in Paragraphs

(1) through (5), is caused by an act of

nature or is otherwise caused.

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CP 10 30 09 17

c. Governmental Action

Seizure or destruction of property by order

of governmental authority.

But we will pay for loss or damage caused

by or resulting from 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 Part.

d. Nuclear Hazard

Nuclear reaction or radiation, or radioactive

contamination, however caused.

But if nuclear reaction or radiation, or

radioactive contamination, results in fire, we

will pay for the loss or damage caused by

that fire.

e. Utility Services

The failure of power, communication, water

or other utility service supplied to the

described premises, however caused, if the

failure:

(1) Originates away from the described

premises; or

(2) Originates at the described premises,

but only if such failure involves

equipment used to supply the utility

service to the described premises from

a source away from the described

premises.

Failure of any utility service includes lack of

sufficient capacity and reduction in supply.

Loss or damage caused by a surge of

power is also excluded, if the surge would

not have occurred but for an event causing

a failure of power.

But if the failure or surge of power, or the

failure of communication, water or other

utility service, results in a Covered Cause of

Loss, we will pay for the loss or damage

caused by that Covered Cause of Loss.

Communication services include but are not

limited to service relating to Internet access

or access to any electronic, cellular or

satellite network.

f. War And Military Action

(1) War, including undeclared or civil war;

(2) Warlike action by a military force,

including action in hindering or

defending against an actual or expected

attack, by any government, sovereign or

other authority using military personnel

or other agents; or

(3) Insurrection, rebellion, revolution,

usurped power, or action taken by

governmental authority in hindering or

defending against any of these.

g. Water

(1) Flood, surface water, waves (including

tidal wave and tsunami), tides, tidal

water, overflow of any body of water, or

spray from any of these, all whether or

not driven by wind (including storm

surge);

(2) Mudslide or mudflow;

(3) Water that backs up or overflows or is

otherwise discharged from a sewer,

drain, sump, sump pump or related

equipment;

(4) Water under the ground surface

pressing on, or flowing or seeping

through:

(a) Foundations, walls, floors or paved

surfaces;

(b) Basements, whether paved or not; or

(c) Doors, windows or other openings;

or

(5) Waterborne material carried or

otherwise moved by any of the water

referred to in Paragraph (1), (3) or (4),

or material carried or otherwise moved

by mudslide or mudflow.

This exclusion applies regardless of

whether any of the above, in Paragraphs

(1) through (5), is caused by an act of

nature or is otherwise caused. An example

of a situation to which this exclusion applies

is the situation where a dam, levee, seawall

or other boundary or containment system

fails in whole or in part, for any reason, to

contain the water.

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But if any of the above, in Paragraphs (1)

through (5), results in fire, explosion or

sprinkler leakage, we will pay for the loss or

damage caused by that fire, explosion or

sprinkler leakage (if sprinkler leakage is a

Covered Cause of Loss).

h. "Fungus", Wet Rot, Dry Rot And

Bacteria

Presence, growth, proliferation, spread or

any activity of "fungus", wet or dry rot or

bacteria.

But if "fungus", wet or dry rot or bacteria

result in a "specified cause of loss", we will

pay for the loss or damage caused by that

"specified cause of loss".

This exclusion does not apply:

(1) When "fungus", wet or dry rot or bacteria

result from fire or lightning; or

(2) To the extent that coverage is provided

in the Additional Coverage, Limited

Coverage For "Fungus", Wet Rot, Dry

Rot And Bacteria, with respect to loss or

damage by a cause of loss other than

fire or lightning.

Exclusions B.1.a. through B.1.h. apply whether

or not the loss event results in widespread

damage or affects a substantial area.

2. We will not pay for loss or damage caused by

or resulting from any of the following:

a. Artificially generated electrical, magnetic or

electromagnetic energy that damages,

disturbs, disrupts or otherwise interferes

with any:

(1) Electrical or electronic wire, device,

appliance, system or network; or

(2) Device, appliance, system or network

utilizing cellular or satellite technology.

For the purpose of this exclusion, electrical,

magnetic or electromagnetic energy

includes but is not limited to:

(a) Electrical current, including arcing;

(b) Electrical charge produced or

conducted by a magnetic or

electromagnetic field;

(c) Pulse of electromagnetic energy; or

(d) Electromagnetic waves or

microwaves.

But if fire results, we will pay for the loss or

damage caused by that fire.

b. Delay, loss of use or loss of market.

c. Smoke, vapor or gas from agricultural

smudging or industrial operations.

d.(1) Wear and tear;

(2) Rust or other corrosion, decay,

deterioration, hidden or latent defect or

any quality in property that causes it to

damage or destroy itself;

(3) Smog;

(4) Settling, cracking, shrinking or

expansion;

(5) Nesting or infestation, or discharge or

release of waste products or secretions,

by insects, birds, rodents or other

animals.

(6) Mechanical breakdown, including

rupture or bursting caused by centrifugal

force. But if mechanical breakdown

results in elevator collision, we will pay

for the loss or damage caused by that

elevator collision.

(7) The following causes of loss to personal

property:

(a) Dampness or dryness of

atmosphere;

(b) Changes in or extremes of

temperature; or

(c) Marring or scratching.

But if an excluded cause of loss that is

listed in 2.d.(1) through (7) results in a

"specified cause of loss" or building glass

breakage, we will pay for the loss or

damage caused by that "specified cause of

loss" or building glass breakage.

e. Explosion of steam boilers, steam pipes,

steam engines or steam turbines owned or

leased by you, or operated under your

control. But if explosion of steam boilers,

steam pipes, steam engines or steam

turbines results in fire or combustion

explosion, we will pay for the loss or

damage caused by that fire or combustion

explosion. We will also pay for loss or

damage caused by or resulting from the

explosion of gases or fuel within the furnace

of any fired vessel or within the flues or

passages through which the gases of

combustion pass.

f. Continuous or repeated seepage or

leakage of water, or the presence or

condensation of humidity, moisture or

vapor, that occurs over a period of 14 days

or more.

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CP 10 30 09 17

g. Water, other liquids, powder or molten

material that leaks or flows from plumbing,

heating, air conditioning or other equipment

(except fire protective systems) caused by

or resulting from freezing, unless:

(1) You do your best to maintain heat in the

building or structure; or

(2) You drain the equipment and shut off

the supply if the heat is not maintained.

h. Dishonest or criminal act (including theft) by

you, any of your partners, members,

officers, managers, employees (including

temporary employees and leased workers),

directors, trustees or authorized

representatives, whether acting alone or in

collusion with each other or with any other

party; or theft by any person to whom you

entrust the property for any purpose,

whether acting alone or in collusion with

any other party.

This exclusion:

(1) Applies whether or not an act occurs

during your normal hours of operation;

(2) Does not apply to acts of destruction by

your employees (including temporary

employees and leased workers) or

authorized representatives; but theft by

your employees (including temporary

employees and leased workers) or

authorized representatives is not

covered.

i. Voluntary parting with any property by you

or anyone else to whom you have entrusted

the property if induced to do so by any

fraudulent scheme, trick, device or false

pretense.

j. Rain, snow, ice or sleet to personal

property in the open.

k. Collapse, including any of the following

conditions of property or any part of the

property:

(1) An abrupt falling down or caving in;

(2) Loss of structural integrity, including

separation of parts of the property or

property in danger of falling down or

caving in; or

(3) Any cracking, bulging, sagging, bending,

leaning, settling, shrinkage or expansion

as such condition relates to (1) or (2)

above.

But if collapse results in a Covered Cause

of Loss at the described premises, we will

pay for the loss or damage caused by that

Covered Cause of Loss.

This exclusion, k., does not apply:

(a) To the extent that coverage is

provided under the Additional

Coverage, Collapse; or

(b) To collapse caused by one or more

of the following:

(i) The "specified causes of loss";

(ii) Breakage of building glass;

(iii) Weight of rain that collects on a

roof; or

(iv) Weight of people or personal

property.

l. Discharge, dispersal, seepage, migration,

release or escape of "pollutants" unless the

discharge, dispersal, seepage, migration,

release or escape is itself caused by any of

the "specified causes of loss". But if the

discharge, dispersal, seepage, migration,

release or escape of "pollutants" results in a

"specified cause of loss", we will pay for the

loss or damage caused by that "specified

cause of loss".

This exclusion, I., does not apply to

damage to glass caused by chemicals

applied to the glass.

m. Neglect of an insured to use all reasonable

means to save and preserve property from

further damage at and after the time of loss.

3. We will not pay for loss or damage caused by

or resulting from any of the following, 3.a.

through 3.c. But if an excluded cause of loss

that is listed in 3.a. through 3.c. results in a

Covered Cause of Loss, we will pay for the

loss or damage caused by that Covered Cause

of Loss.

a. Weather conditions. But this exclusion only

applies if weather conditions contribute in

any way with a cause or event excluded in

Paragraph 1. above to produce the loss or

damage.

b. Acts or decisions, including the failure to act

or decide, of any person, group,

organization or governmental body.

c. Faulty, inadequate or defective:

(1) Planning, zoning, development,

surveying, siting;

(2) Design, specifications, workmanship,

repair, construction, renovation,

remodeling, grading, compaction;

(3) Materials used in repair, construction,

renovation or remodeling; or

(4) Maintenance;

CP 10 30 09 17

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of part or all of any property on or off the

described premises.

4. Special Exclusions

The following provisions apply only to the

specified Coverage Forms:

a. Business Income (And Extra Expense)

Coverage Form, Business Income

(Without Extra Expense) Coverage Form,

Or Extra Expense Coverage Form

We will not pay for:

(1) Any loss caused by or resulting from:

(a) Damage or destruction of "finished

stock"; or

(b) The time required to reproduce

"finished stock".

This exclusion does not apply to Extra

Expense.

(2) Any loss caused by or resulting from

direct physical loss or damage to radio

or television antennas (including satellite

dishes) and their lead-in wiring, masts or

towers.

(3) Any increase of loss caused by or

resulting from:

(a) Delay in rebuilding, repairing or

replacing the property or resuming

"operations", due to interference at

the location of the rebuilding, repair

or replacement by strikers or other

persons; or

(b) Suspension, lapse or cancellation of

any license, lease or contract. But if

the suspension, lapse or cancellation

is directly caused by the

"suspension" of "operations", we will

cover such loss that affects your

Business Income during the "period

of restoration" and any extension of

the "period of restoration" in

accordance with the terms of the

Extended Business Income

Additional Coverage and the

Extended Period Of Indemnity

Optional Coverage or any variation

of these.

(4) Any Extra Expense caused by or

resulting from suspension, lapse or

cancellation of any license, lease or

contract beyond the "period of

restoration".

(5) Any other consequential loss.

b. Leasehold Interest Coverage Form

(1) Paragraph B.1.a., Ordinance Or Law,

does not apply to insurance under this

Coverage Form.

(2) We will not pay for any loss caused by:

(a) Your cancelling the lease;

(b) The suspension, lapse or

cancellation of any license; or

(c) Any other consequential loss.

c. Legal Liability Coverage Form

(1) The following exclusions do not apply to

insurance under this Coverage Form:

(a) Paragraph B.1.a. Ordinance Or Law;

(b) Paragraph B.1.c. Governmental

Action;

(c) Paragraph B.1.d. Nuclear Hazard;

(d) Paragraph B.1.e. Utility Services;

and

(e) Paragraph B.1.f. War And Military

Action.

(2) The following additional exclusions

apply to insurance under this Coverage

Form:

(a) Contractual Liability

We will not defend any claim or

"suit", or pay damages that you are

legally liable to pay, solely by reason

of your assumption of liability in a

contract or agreement. But this

exclusion does not apply to a written

lease agreement in which you have

assumed liability for building damage

resulting from an actual or attempted

burglary or robbery, provided that:

(i) Your assumption of liability was

executed prior to the accident;

and

(ii) The building is Covered Property

under this Coverage Form.

(b) Nuclear Hazard

We will not defend any claim or

"suit", or pay any damages, loss,

expense or obligation, resulting from

nuclear reaction or radiation, or

radioactive contamination, however

caused.

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CP 10 30 09 17

5. Additional Exclusion

The following provisions apply only to the

specified property:

Loss Or Damage To Products

We will not pay for loss or damage to any

merchandise, goods or other product caused

by or resulting from error or omission by any

person or entity (including those having

possession under an arrangement where work

or a portion of the work is outsourced) in any

stage of the development, production or use of

the product, including planning, testing,

processing, packaging, installation,

maintenance or repair. This exclusion applies

to any effect that compromises the form,

substance or quality of the product. But if such

error or omission results in a Covered Cause of

Loss, we will pay for the loss or damage

caused by that Covered Cause of Loss.

C. Limitations

The following limitations apply to all policy forms

and endorsements, unless otherwise stated:

1. We will not pay for loss of or damage to

property, as described and limited in this

section. In addition, we will not pay for any loss

that is a consequence of loss or damage as

described and limited in this section.

a. Steam boilers, steam pipes, steam engines

or steam turbines caused by or resulting

from any condition or event inside such

equipment. But we will pay for loss of or

damage to such equipment caused by or

resulting from an explosion of gases or fuel

within the furnace of any fired vessel or

within the flues or passages through which

the gases of combustion pass.

b. Hot water boilers or other water heating

equipment caused by or resulting from any

condition or event inside such boilers or

equipment, other than an explosion.

c. The interior of any building or structure, or

to personal property in the building or

structure, caused by or resulting from rain,

snow, sleet, ice, sand or dust, whether

driven by wind or not, unless:

(1) The building or structure first sustains

damage by a Covered Cause of Loss to

its roof or walls through which the rain,

snow, sleet, ice, sand or dust enters; or

(2) The loss or damage is caused by or

results from thawing of snow, sleet or

ice on the building or structure.

d. Building materials and supplies not

attached as part of the building or structure,

caused by or resulting from theft.

However, this limitation does not apply to:

(1) Building materials and supplies held for

sale by you, unless they are insured

under the Builders Risk Coverage Form;

or

(2) Business Income Coverage or Extra

Expense Coverage.

e. Property that is missing, where the only

evidence of the loss or damage is a

shortage disclosed on taking inventory, or

other instances where there is no physical

evidence to show what happened to the

property.

f. Property that has been transferred to a

person or to a place outside the described

premises on the basis of unauthorized

instructions.

g. Lawns, trees, shrubs or plants which are

part of a vegetated roof, caused by or

resulting from:

(1) Dampness or dryness of atmosphere or

of soil supporting the vegetation;

(2) Changes in or extremes of temperature;

(3) Disease;

(4) Frost or hail; or

(5) Rain, snow, ice or sleet.

2. We will not pay for loss of or damage to the

following types of property unless caused by

the "specified causes of loss" or building glass

breakage:

a. Animals, and then only if they are killed or

their destruction is made necessary.

b. Fragile articles such as statuary, marbles,

chinaware and porcelains, if broken. This

restriction does not apply to:

(1) Glass; or

(2) Containers of property held for sale.

c. Builders' machinery, tools and equipment

owned by you or entrusted to you, provided

such property is Covered Property.

However, this limitation does not apply:

(1) If the property is located on or within

100 feet of the described premises,

unless the premises is insured under the

Builders Risk Coverage Form; or

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(2) To Business Income Coverage or to

Extra Expense Coverage.

3. The special limit shown for each category, a.

through d., is the total limit for loss of or

damage to all property in that category. The

special limit applies to any one occurrence of

theft, regardless of the types or number of

articles that are lost or damaged in that

occurrence. The special limits are (unless a

higher limit is shown in the Declarations):

a. $2,500 for furs, fur garments and garments

trimmed with fur.

b. $2,500 for jewelry, watches, watch

movements, jewels, pearls, precious and

semiprecious stones, bullion, gold, silver,

platinum and other precious alloys or

metals. This limit does not apply to jewelry

and watches worth $100 or less per item.

c. $2,500 for patterns, dies, molds and forms.

d. $250 for stamps, tickets, including lottery

tickets held for sale, and letters of credit.

These special limits are part of, not in addition

to, the Limit of Insurance applicable to the

Covered Property.

This limitation, C.3., does not apply to

Business Income Coverage or to Extra

Expense Coverage.

4. We will not pay the cost to repair any defect to

a system or appliance from which water, other

liquid, powder or molten material escapes. But

we will pay the cost to repair or replace

damaged parts of fire-extinguishing equipment

if the damage:

a. Results in discharge of any substance from

an automatic fire protection system; or

b. Is directly caused by freezing.

However, this limitation does not apply to

Business Income Coverage or to Extra

Expense Coverage.

D. Additional Coverage – Collapse

The coverage provided under this Additional

Coverage, Collapse, applies only to an abrupt

collapse as described and limited in D.1. through

D.7.

1. For the purpose of this Additional Coverage,

Collapse, abrupt collapse means an abrupt

falling down or caving in of a building or any

part of a building with the result that the

building or part of the building cannot be

occupied for its intended purpose.

2. We will pay for direct physical loss or damage

to Covered Property, caused by abrupt

collapse of a building or any part of a building

that is insured under this Coverage Form or

that contains Covered Property insured under

this Coverage Form, if such collapse is caused

by one or more of the following:

a. Building decay that is hidden from view,

unless the presence of such decay is

known to an insured prior to collapse;

b. Insect or vermin damage that is hidden

from view, unless the presence of such

damage is known to an insured prior to

collapse;

c. Use of defective material or methods in

construction, remodeling or renovation if the

abrupt collapse occurs during the course of

the construction, remodeling or renovation.

d. Use of defective material or methods in

construction, remodeling or renovation if the

abrupt collapse occurs after the

construction, remodeling or renovation is

complete, but only if the collapse is caused

in part by:

(1) A cause of loss listed in 2.a. or 2.b.;

(2) One or more of the "specified causes of

loss";

(3) Breakage of building glass;

(4) Weight of people or personal property;

or

(5) Weight of rain that collects on a roof.

3. This Additional Coverage – Collapse does

not apply to:

a. A building or any part of a building that is in

danger of falling down or caving in;

b. A part of a building that is standing, even if

it has separated from another part of the

building; or

c. A building that is standing or any part of a

building that is standing, even if it shows

evidence of cracking, bulging, sagging,

bending, leaning, settling, shrinkage or

expansion.

4. With respect to the following property:

a. Outdoor radio or television antennas

(including satellite dishes) and their lead-in

wiring, masts or towers;

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CP 10 30 09 17

b. Awnings, gutters and downspouts;

c. Yard fixtures;

d. Outdoor swimming pools;

e. Fences;

f. Piers, wharves and docks;

g. Beach or diving platforms or

appurtenances;

h. Retaining walls; and

i. Walks, roadways and other paved surfaces;

if an abrupt collapse is caused by a cause of

loss listed in 2.a. through 2.d., we will pay for

loss or damage to that property only if:

(1) Such loss or damage is a direct result of

the abrupt collapse of a building insured

under this Coverage Form; and

(2) The property is Covered Property under

this Coverage Form.

5. If personal property abruptly falls down or

caves in and such collapse is not the result of

abrupt collapse of a building, we will pay for

loss or damage to Covered Property caused by

such collapse of personal property only if:

a. The collapse of personal property was

caused by a cause of loss listed in 2.a.

through 2.d.;

b. The personal property which collapses is

inside a building; and

c. The property which collapses is not of a

kind listed in 4., regardless of whether that

kind of property is considered to be

personal property or real property.

The coverage stated in this Paragraph 5. does

not apply to personal property if marring and/or

scratching is the only damage to that personal

property caused by the collapse.

6. This Additional Coverage, Collapse, does not

apply to personal property that has not abruptly

fallen down or caved in, even if the personal

property shows evidence of cracking, bulging,

sagging, bending, leaning, settling, shrinkage

or expansion.

7. This Additional Coverage, Collapse, will not

increase the Limits of Insurance provided in

this Coverage Part.

8. The term Covered Cause of Loss includes the

Additional Coverage, Collapse, as described

and limited in D.1. through D.7.

E. Additional Coverage – Limited Coverage For

"Fungus", Wet Rot, Dry Rot And Bacteria

1. The coverage described in E.2. and E.6. only

applies when the "fungus", wet or dry rot or

bacteria are the result of one or more of the

following causes that occur during the policy

period and only if all reasonable means were

used to save and preserve the property from

further damage at the time of and after that

occurrence:

a. A "specified cause of loss" other than fire or

lightning; or

b. Flood, if the Flood Coverage Endorsement

applies to the affected premises.

This Additional Coverage does not apply to

lawns, trees, shrubs or plants which are part of

a vegetated roof.

2. We will pay for loss or damage by "fungus",

wet or dry rot or bacteria. As used in this

Limited Coverage, the term loss or damage

means:

a. Direct physical loss or damage to Covered

Property caused by "fungus", wet or dry rot

or bacteria, including the cost of removal of

the "fungus", wet or dry rot or bacteria;

b. The cost to tear out and replace any part of

the building or other property as needed to

gain access to the "fungus", wet or dry rot

or bacteria; and

c. The cost of testing performed after removal,

repair, replacement or restoration of the

damaged property is completed, provided

there is a reason to believe that "fungus",

wet or dry rot or bacteria are present.

3. The coverage described under E.2. of this

Limited Coverage is limited to $15,000.

Regardless of the number of claims, this limit is

the most we will pay for the total of all loss or

damage arising out of all occurrences of

"specified causes of loss" (other than fire or

lightning) and Flood which take place in a 12-

month period (starting with the beginning of the

present annual policy period). With respect to a

particular occurrence of loss which results in

"fungus", wet or dry rot or bacteria, we will not

pay more than a total of $15,000 even if the

"fungus", wet or dry rot or bacteria continue to

be present or active, or recur, in a later policy

period.

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4. The coverage provided under this Limited

Coverage does not increase the applicable

Limit of Insurance on any Covered Property. If

a particular occurrence results in loss or

damage by "fungus", wet or dry rot or bacteria,

and other loss or damage, we will not pay

more, for the total of all loss or damage, than

the applicable Limit of Insurance on the

affected Covered Property.

If there is covered loss or damage to Covered

Property, not caused by "fungus", wet or dry rot

or bacteria, loss payment will not be limited by

the terms of this Limited Coverage, except to

the extent that "fungus", wet or dry rot or

bacteria cause an increase in the loss. Any

such increase in the loss will be subject to the

terms of this Limited Coverage.

5. The terms of this Limited Coverage do not

increase or reduce the coverage provided

under Paragraph F.2. (Water Damage, Other

Liquids, Powder Or Molten Material Damage)

of this Causes Of Loss form or under the

Additional Coverage, Collapse.

6. The following, 6.a. or 6.b., applies only if

Business Income and/or Extra Expense

Coverage applies to the described premises

and only if the "suspension" of "operations"

satisfies all terms and conditions of the

applicable Business Income and/or Extra

Expense Coverage Form:

a. If the loss which resulted in "fungus", wet or

dry rot or bacteria does not in itself

necessitate a "suspension" of "operations",

but such "suspension" is necessary due to

loss or damage to property caused by

"fungus", wet or dry rot or bacteria, then our

payment under Business Income and/or

Extra Expense is limited to the amount of

loss and/or expense sustained in a period

of not more than 30 days. The days need

not be consecutive.

b. If a covered "suspension" of "operations"

was caused by loss or damage other than

"fungus", wet or dry rot or bacteria but

remediation of "fungus", wet or dry rot or

bacteria prolongs the "period of restoration",

we will pay for loss and/or expense

sustained during the delay (regardless of

when such a delay occurs during the

"period of restoration"), but such coverage

is limited to 30 days. The days need not be

consecutive.

F. Additional Coverage Extensions

1. Property In Transit

This Extension applies only to your personal

property to which this form applies.

a. You may extend the insurance provided by

this Coverage Part to apply to your

personal property (other than property in

the care, custody or control of your

salespersons) in transit more than 100 feet

from the described premises. Property must

be in or on a motor vehicle you own, lease

or operate while between points in the

coverage territory.

b. Loss or damage must be caused by or

result from one of the following causes of

loss:

(1) Fire, lightning, explosion, windstorm or

hail, riot or civil commotion, or

vandalism.

(2) Vehicle collision, upset or overturn.

Collision means accidental contact of

your vehicle with another vehicle or

object. It does not mean your vehicle's

contact with the roadbed.

(3) Theft of an entire bale, case or package

by forced entry into a securely locked

body or compartment of the vehicle.

There must be visible marks of the

forced entry.

c. The most we will pay for loss or damage

under this Extension is $5,000.

This Coverage Extension is additional

insurance. The Additional Condition,

Coinsurance, does not apply to this Extension.

2. Water Damage, Other Liquids, Powder Or

Molten Material Damage

If loss or damage caused by or resulting from

covered water or other liquid, powder or molten

material damage loss occurs, we will also pay

the cost to tear out and replace any part of the

building or structure to repair damage to the

system or appliance from which the water or

other substance escapes. This Coverage

Extension does not increase the Limit of

Insurance.

Page 10 of 10

CP 10 30 09 17

3. Glass

a. We will pay for expenses incurred to put up

temporary plates or board up openings if

repair or replacement of damaged glass is

delayed.

b. We will pay for expenses incurred to

remove or replace obstructions when

repairing or replacing glass that is part of a

building. This does not include removing or

replacing window displays.

This Coverage Extension F.3. does not

increase the Limit of Insurance.

G. Definitions

1. "Fungus" means any type or form of fungus,

including mold or mildew, and any mycotoxins,

spores, scents or by-products produced or

released by fungi.

2. "Specified causes of loss" means the following:

fire; lightning; explosion; windstorm or hail;

smoke; aircraft or vehicles; riot or civil

commotion; vandalism; leakage from fire-

extinguishing equipment; sinkhole collapse;

volcanic action; falling objects; weight of snow,

ice or sleet; water damage.

a. 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.

b. Falling objects does not include loss or

damage to:

(1) Personal 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 falling object.

c. Water damage means:

(1) Accidental discharge or leakage of

water or steam as the direct result of the

breaking apart or cracking of a

plumbing, heating, air conditioning or

other system or appliance (other than a

sump system including its related

equipment and parts), that is located on

the described premises and contains

water or steam; and

(2) Accidental discharge or leakage of

water or waterborne material as the

direct result of the breaking apart or

cracking of a water or sewer pipe

caused by wear and tear, when the pipe

is located off the described premises

and is connected to or is part of a

potable water supply system or sanitary

sewer system operated by a public or

private utility service provider pursuant

to authority granted by the state or

governmental subdivision where the

described premises are located.

But water damage does not include loss or

damage otherwise excluded under the

terms of the Water Exclusion. Therefore, for

example, there is no coverage under this

policy in the situation in which discharge or

leakage of water results from the breaking

apart or cracking of a pipe which was

caused by or related to weather-induced

flooding, even if wear and tear

contributed to the breakage or cracking. As

another example, and also in accordance

with the terms of the Water Exclusion, there

is no coverage for loss or damage caused

by or related to weather-induced flooding

which follows or is exacerbated by pipe

breakage or cracking attributable to wear

and tear.

To the extent that accidental discharge or

leakage of water falls within the criteria set

forth in c.(1) or c.(2) of this definition of

"specified causes of loss," such water is not

subject to the provisions of the Water

Exclusion which preclude coverage for

surface water or water under the surface of

the ground.