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<br />PROPERTY COVERAGE DEFINITIONS <br />FOR A FULL DESCRIPTION OF TERMS, DEFINITIONS AND CONDITIONS PLEASE REFER TO THE <br />POLICY DOCUMENT <br /> <br />SPECIAL CAUSES OF LOSS COVERAGE <br />This coverage will protect covered property against direct loss arising from any cause not specifically excluded. The <br />advantage of this form is that the insurance company must prove that a loss is specifically excluded in order to deny <br />coverage under the policy. <br /> <br />REPLACEMENT COST VALUATION <br />This Joss valuation method pays for the cost to repair or replace damaged items with like kind and quality without <br />deduction for depreciation. This is important since you could face a substantial loss if you must replace property at <br />today's prices but receive only the depreciated value of the property that was destroyed. <br /> <br />ACTUAL CASH VALUE VALUATION <br />This valuation method pays for the cost to repair or replace damaged property with like kind and quality, less <br />reasonable deductions for wear and tear, deterioration and economic obsolescence. <br /> <br />BUSINESS INCOME <br />This coverage is used to insure against loss of income (including any continuing normal operating expenses) that you <br />experience because of a suspension of your business and/or interruption of rental income when insured property has <br />been damaged by a covered peril. <br /> <br />EXTRA EXPENSE COVERAGE <br />This coverage pays for the necessary additional expenses needed to continue business when a covered loss <br />damages or destroys insured property. <br /> <br />( <br /> <br />COINSURANCE <br />Your policy contains a coinsurance clause requiring that the limit of coverage be a minimum percentage of the actual <br />insurable value of your property or actual annual business income. If the amount of insurance carried is less than <br />what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. <br /> <br />PEDUCTIBLE <br />A policy may include a deductible in its provisions. This limit specifies the amount that will be deducted from any <br />payment made to you because of a covered loss. <br /> <br />SERVICE INTERRUPTION COVERAGE <br />This coverage extends your business income and extra expense insurance to protect against loss when due to the <br />interruption of services rendered to you by a specified utility that provides your business with water, power or <br />communications. Loss due to overhead transmission lines is excluded. <br /> <br />DEMOLITION, ORDINANCE, AND INCREASED COST OF CONSTRUCTION <br />This endorsement provides coverage for the costs and effects due to certain building laws. Coverage A applies when <br />laws require that undamaged portions of a building be torn down because the building does not comply with current <br />laws and has sustained more than a certain percentage of insured damage. Coverage B applies to the costs for <br />demolition of the undamaged portion of the building covered under Coverage A. Coverage C covers the increased <br />cost of construction required to bring a damaged building up to current code. <br /> <br />MECHANICAL & ELECTRICAL BREAKPOWN COVERAGE <br />Boiler & Machinery insurance covers direct damage to .covered property" when caused by sudden and accidental <br />BREAKDOWN and includes as a covered peril Electrical Arcing. Covered Property means any mechanical, electrical <br />or boiler equipment on premises, such as (but not limited to): machinery & equipment, air-conditioning units, <br />elevators, phone systems etc. <br /> <br />8 <br />