EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC. V. MT. HAWLEY INSURANCE COMPANY Et Al Complaint

Case 0:09-cv-60723-AJ Document 1 Entered on FLSD Docket 05/15/2009
I TVDNI?
May 15, 2009
UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA
FT. LAUDERDALE DIVISION
CASE NO.
09-60723-C iv-J ORDAN/MCALI LEY

EL-AD RESIDENCES AT MIRAMAR
CONDOMINIUM ASSOCIATION, INC., a
Florida not-for-profit corporation,
Plaintiff,
V.
MT. HAWLEY INSURANCE COMPANY,

a foreign corporation, WESTCHESTER
SURPLUS LINES INSURANCE
COMPANY, a foreign corporation,
Defendants.
COMPLAINT
ASSOCIATION,
Plaintiff, EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM
and pursuant to the
INC. ("RESIDENCES"), by and through its undersigned counsel
Federal Rules of Civil Procedure, sues the Defendants, MT. HAWLEY INSURANCE
INSURANCE
COMPANY ("MT. HAWLEY") and WESTCHESTER SURPLUS LINES
COMPANY ("WESTCHESTER") and states:
GENERAL ALLEGATIONS
1. This is an action for declaratory judgment, including supplemental relief,
and breach of contract (actual cash value), breach of contract (replacement cost value),
and breach of the implied warranty of good faith and fair dealing, seeking judgment for
of $75, 000.00 exclusive of interest, costs and attorneys' fees.

damages in excess
KATZMAN GARFINKEL ROSENBAUM LLP

"
250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
Telephone (561) 653-2900
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Facsimile (561) 820-2542
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Case 0:09-cv-60723-AJ Document 1 Entered on FLSD Docket 05/15/2009 Page 2 of 59
El-Ad Residences v. Mt. Hawley and Westchester

Complaint
Page 2
2. Pursuant to 28 U.S.C. §1332, this Court has subject matter jurisdiction
because the amount in controversy exceeds $75, 000.00, exclusive of interest, costs
and attorneys' fees, and there is complete diversity of citizenship between the parties.
3. At all material times, RESIDENCES was a condominium association and
not-for-profit corporation organized and existing under the laws of the State of Florida,
and was authorized to do, and continues to do business in Broward County, Florida.
RESIDENCES has its principal place of business in Broward County, Florida.
4. At all material times, MT. HAWLEY was a foreign corporation and surplus
lines insurance carrier authorized by the State of Florida pursuant to a letter of eligibility
to transact insurance in Florida.
5. At all material times, MT. HAWLEY transacted business in Broward
County, Florida.
6. At all material times, WESTCHESTER was a foreign corporation and
surplus lines insurance carrier authorized by the State of Florida pursuant to a letter of
eligibility to transact insurance in Florida.
7. At all material times, WESTCHESTER transacted business in Broward
County, Florida.
8. MT. HAWLEY issued Policy No. MCP0140064, which provided property
coverage to RESIDENCES of $2 million per occurrence for the twelve month period
beginning September 07, 2005 and ending September 07, 2006. True and correct
copies of the declaration page and insurance policy (the "Mt. Hawley Insurance
Contract") are attached as Composite Exhibit "A".
"
"
250 Australian Avenue South, Suite 500 West Palm Beach, FL 33401
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Telephone (561) 653-2900 Facsimile (561) 820-2542
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Complaint
Page 3
9. WESTCHESTER issued Policy No. D35910177 001, which provided
property coverage to RESIDENCES of $8 million per occurrence in excess of $2 million
per occurrence for the twelve month period beginning September 07, 2005 and ending
September 07, 2006. A true and correct copy of the declaration page (the "Westchester
Insurance Contract") is attached as Exhibit "B"1.
10. The intent and purpose of both the Mt. Hawley Insurance Contract and the
Westchester Insurance Contract (collectively the "Insurance Contracts") are to provide
commercial residential property coverage to the named insured, RESIDENCES, for
direct physical loss to the insured property from September 07, 2005 through
September 07, 2006, with MT. HAWLEY providing the first layer of coverage in the
amount of $2 million per occurrence and WESTCHESTER providing the second layer of
in of the first layer.

coverage in the amount of $8 million per occurrence excess
WESTCHESTER is liable for any covered loss, damages and/or judgment in excess of
the first layer of coverage.
11. The Westchester Insurance Contract adopts and incorporates by
reference, all terms and conditions of the Mt. Hawley Insurance Contract to the extent
that its terms do not conflict with the express terms and conditions contained in the
Westchester Insurance Contract. With respect to the material provisions contained
within the Insurance Contracts that are relevant to this action, there are no conflicting
terms or conditions. WESTCHESTER has also, through the Westchester Insurance
Contract, expressly adopted and incorporated by reference, the separate "windstorm"
deductible contained within the Westchester Insurance Contract.
1
RESIDENCES has requested a copy of the Westchester policy from WESTCHESTER but has not
received it yet. WESTCHESTER has a copy of the policy.
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
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Complaint
Page 4
12. On or about October 24, 2005, Hurricane Wilma struck Broward County,
Florida, including RESIDENCES.
13. On or about October 24, 2005, RESIDENCES sustained significant
hurricane damages to its residential condominium property as a result of Hurricane
Wilma.
14. RESIDENCES timely reported the damages to the Defendants.
15. Following Hurricane Wilma, MT. HAWLEY and WESTCHESTER had an
opportunity to inspect the damages to the insured property.
16. To date, over three years after Hurricane Wilma, the Defendants have
failed to provide RESIDENCES with any estimate of the damages, and have failed to
adjust, pay, and/or settle RESIDENCES' claim for hurricane damage, despite their
obligations to do so under Section 627.70131, Florida Statutes, and the Insurance
Contracts.
17. Venue lies in the Southern District of Florida because, among other things,
the Insurance Contracts were entered into and provided insurance coverage for
residential property located in Broward County, Florida.
18. All conditions precedent to the filing of this action have occurred and/or
have been waived.
COUNT I
DECLARATORY JUDGMENT
19. This is an action by RESIDENCES against MT. HAWLEY and
WESTCHESTER for declaratory judgment and supplemental relief, the subject matter of
which exceeds $75, 000.00 exclusive of interest, costs and attorneys' fees, pursuant to
Chapter 86, Florida Statutes.

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Complaint
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20. RESIDENCES realleges and reavers the allegations contained in
paragraphs 1 through 18 above, as if fully set forth herein.
21. RESIDENCES seeks a declaratory judgment: (a) that the Mt. Hawley
Insurance Contract is valid and enforceable; (b) that pursuant to the terms and
conditions of the Insurance Contracts, RESIDENCES has a valid and enforceable right
to coverage, and to a determination of the total amount of all damages sustained from
Hurricane Wilma notwithstanding MT. HAWLEY's and/or WESTCHESTER's failure to
timely adjust, pay and/or settle RESIDENCES' claim; (c) that the Mt. Hawley Insurance
Contract fails to comply with Section 627.701(a-b), Florida Statutes, and 627.701(4)(a),
Florida Statutes, and therefore, the provisions concerning co-insurance and a separate
hurricane deductible are void and unenforceable; (d) determining the total amount of the
losses and damages caused by Hurricane Wilma to RESIDENCES; and (e) awarding
RESIDENCES supplemental relief to fully compensate RESIDENCES for all of its
hurricane related damages under Chapter 86, Florida Statutes.
22. RESIDENCES also seeks a declaratory judgment that the provision
concerning a separate deductible of "3% of total values at risk Per Building (including
time element if applicable) at the time of loss for Windstorm or Hail" is vague and
ambiguous. The term "Windstorm" is not defined. The amount of the separate
deductible for Windstorm or Hail is not stated as a sum certain. RESIDENCES seeks a
declaratory judgment that the failure to define the term "Windstorm" renders the
of the separate deductible vague, ambiguous. Moreover, the failure to state

applicability
the deductible as a sum certain renders the amount of the deductible vague and
ambiguous. Because the separate deductible is vague, ambiguous, and otherwise
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Complaint
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violates Section 627.701, Florida Statutes, it is unenforceable and/or should be
construed against MT. HAWLEY and WESTCHESTER. Plaintiff further and
alternatively seeks a declaratory judgment that, to the extent the amount of the separate
deductible can be ascertained, it must be construed to indicate that the maximum
separate deductible for Windstorm or Hail loss is 3% of the $2 million limit of coverage
offered under the Mt. Hawley Insurance Contract because $2 million is all that is "at risk"
under the Mt. Hawley Insurance Contract.
23. MT. HAWLEY's and WESTCHESTER's actions have raised doubt and
insecurity for RESIDENCES regarding: the validity, enforceability and scope of the
Insurance Contracts; the total amount of the covered damages RESIDENCES
sustained from Hurricane Wilma; MT. HAWLEY's and WESTCHESTER's duties to
timely adjust, pay and/or settle RESIDENCES' claim for all damages sustained from
Hurricane Wilma; the validity and enforceability of the co-insurance and separate
hurricane deductible provision of the Mt. Hawley Insurance Contract; and, if determined
to be enforceable, the amount of the separate hurricane deductible to be applied in this
case.
24. Paragraphs E.4 and 0.3 (form CP 00 17 04 02) as well as paragraph D
(form CP 01 25 06 95) of the Mt. Hawley Insurance Contract, and the Westchester
Insurance Contract, together with Section 627.70131, Florida Statutes, require MT.
HAWLEY and WESTCHESTER to timely adjust, pay and/or settle RESIDENCES'
claims for the damages it sustained from Hurricane Wilma. MT. HAWLEY and
WESTCHESTER have failed to adjust, pay and/or settle RESIDENCES' claims.
RESIDENCES is entitled to a declaratory judgment that the Insurance Contracts and
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Complaint
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Florida law require MT. HAWLEY and WESTCHESTER to timely adjust, pay and/or
settle RESIDENCES' hurricane damage claims.
25. RESIDENCES suffered extensive losses and damages from Hurricane
those losses and

Wilma and timely notified MT. HAWLEY and WESTCHESTER of
damages. MT. HAWLEY and WESTCHESTER have failed to adjust the claim and
determine the total amount of damages that RESIDENCES sustained from Hurricane
Wilma. RESIDENCES is entitled to declaratory judgment to determine the total amount
of its Hurricane Wilma damages and for supplemental relief to fully compensate
RESIDENCES for its Hurricane Wilma losses and damages.
26. The Insurance Contracts fail to comply with Section 627.701, Florida
co-insurance
Statutes, because the faces of the Insurance Contracts do not contain a
notice as is required. Further, the faces of the Insurance Contracts fail to contain a
separate hurricane deductible notice as required and/or fail to comply with the wording
and bold faced type size requirements set forth in Section 627.701, Florida Statutes.
27. RESIDENCES is entitled to a declaratory judgment that the co-insurance
Contract
separate hurricane deductible provisions of the Mt. Hawley Insurance
are
and
void and unenforceable because the Mt. Hawley Insurance Contract does not comply
with the set forth in Section 627.701(1)(a-b), Florida Statutes, and Section
requirements
627.701(4)(a), Florida Statutes.
to the extent that the separate hurricane deductible is

28. Alternatively,
determined to be enforceable, RESIDENCES is entitled to declaratory judgment that the

element if applicable) at
language "3% of total values at risk Per Building (including time
the time of loss for Windstorm or Hail" must be construed so that the maximum

"
Telephone (561) 653-2900
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Complaint
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deductible to be applied for all buildings combined is 3% of the $2 million limit of
coverage under the Mt. Hawley Insurance Contract.
29. RESIDENCES, MT. HAWLEY and WESTCHESTER have present, actual,
adverse and antagonistic interests in the validity and enforceability of the Insurance
Contracts; the full amount of RESIDENCES' losses and damages from Hurricane
Wilma; the coverage provided by the Insurance Contracts; the validity and enforceability
of the co-insurance and separate hurricane deductible provision of the Mt. Hawley
Insurance Contract; and, the amount of the hurricane deductible to be applied in this
case.
30. RESIDENCES' adverse and antagonistic interests are before this Court by
proper process. The relief RESIDENCES seeks is not the mere rendering of legal
advice.
31. RESIDENCES has a bona fide, present and practical need for a
declaration of its rights under the Insurance Contracts.
32. RESIDENCES has retained the undersigned attorneys to represent it in
this action and is required to pay them a reasonable fee for their services.
33. RESIDENCES is entitled to recover its reasonable attorneys' fees
pursuant to Section 627.428, Florida Statutes, which provides in pertinent part:
Upon the rendition judgment or decree by any of the

of a
courts of this state against an insurer and in favor of any
named or omnibus insured or the named beneficiary under a
policy or contract executed by the insurer, the trial court or,
in the event of an appeal in which the insured or beneficiary
prevails, the appellate court shall adjudge or decree against
the insurer and in favor of the insured or beneficiary a
reasonable sum as fees or compensation for the insured's or
beneficiary's attorney prosecuting the suit in which the
recovery is had.

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34. Alternatively, Section 626.911, Florida Statutes, provides in pertinent part:
In any action against an unauthorized foreign insurer, alien

insurer, or person representing or aiding such an insurer,
upon a contract of insurance issued or delivered in this state
to a resident thereof or to a corporation authorized to do
business therein, if the insurer or person representing or
aiding such insurer has failed for 30 days after demand prior
to the commencement of the action to make payment in
accordance with the terms of the contract, the trial judge
shall allow to the plaintiff a reasonable attorney's fee or
compensation and include such fee or compensation in any
judgment that may be rendered in such action.
35. RESIDENCES is further entitled to recover prejudgment interest pursuant
to Section 627.70131, Florida Statutes.
WHEREFORE, RESIDENCES requests the Court enter a declaratory judgment
MT. HAWLEY and WESTCHESTER (a) that the Insurance Contracts are valid
against
and enforceable; (b) that pursuant to the terms and conditions of the Insurance
Contracts, RESIDENCES has a valid and enforceable right to coverage, and a
determination of the total amount of all damages RESIDENCES sustained from
Hurricane Wilma; (c) determining the total amount of the losses and damages caused
Hurricane Wilma to RESIDENCES; (d) that the Mt. Hawley Insurance Contract fails
by
to comply with Section 627.701, Florida Statutes, and therefore, the co-insurance and
separate hurricane deductible provisions are void and unenforceable; (e) that because
the provision concerning a separate "3% of total values at risk Per Building (including
time element if applicable) at the time of loss for Windstorm or Hail" is ambiguous, it is
and/or should be construed against MT.

unenforceable against RESIDENCES
HAWLEY and WESTCHESTER; (f) if determined enforceable, the separate hurricane
deductible is 3% of the $2 million limit of coverage under the Mt. Hawley Insurance
Facsimile (561) 820-2542
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Telephone (561) 653-2900

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Complaint
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Contract; (g) awarding supplemental relief to fully compensate RESIDENCES for all of
its hurricane related damages under Chapter 86, Florida Statutes; and, (h) awarding
RESIDENCES its reasonable attorneys' fees under Section 627.428, Florida Statutes,
or in the alternative, under Section 626.911, Florida Statutes, together with taxable
costs, prejudgment interest under Section 627.70131, Florida Statutes, and any other
and further relief the Court deems just, equitable and proper.
COUNT II
BREACH OF CONTRACT AGAINST MT. HAWLEY
(Actual Cash Value)
36. This is an action against MT. HAWLEY for breach of the Mt. Hawley
Insurance Contract seeking damages in excess of $75, 000.00, exclusive of interest,
costs, and attorneys' fees.
37. RESIDENCES realleges the allegations contained in paragraphs 1
through 18 above, as if fully set forth herein.
38. In or about September, 2005, MT. HAWLEY offered to provide property
coverage to RESIDENCES for the twelve (12) month period commencing September 7,
2005 in consideration for a premium. In or about September, 2005, RESIDENCES
accepted MT. HAWLEY's offer of property coverage and paid the premium.
39. The Mt. Hawley Insurance Contract set forth the rights and obligations of
MT. HAWLEY to RESIDENCES with respect to its claim, including among other things,
the following pertinent terms and conditions:
We will determine the value of lost or damaged property, or

the cost of its repair or replacement, in accordance with the
applicable terms of the Valuation condition in this Coverage
Form or any applicable provision which amends or
supersedes the Valuation Condition.
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See Composite Exhibit "A", Paragraph E.4.a.
* * *
You may make a claim for loss or damage covered by this

insurance on an actual cash value basis instead of on a
replacement cost basis. In the event you elect to have loss
or damage settled on an actual cash value basis, you may
still make a claim for the additional coverage this Optional
Coverage provides...
See Composite Exhibit "A", Paragraph G.3.c.
40. Pursuant to the terms of the Mt. Hawley Insurance Contract,
RESIDENCES has a right to coverage for property losses or damages caused by
Hurricane Wilma.
41. In or about October, 2005 through October, 2008, and continuing to the
present time, MT. HAWLEY has materially breached the Mt. Hawley Insurance Contract
by failing to pay the actual cash value of the losses or damages to the insured property
caused by Hurricane Wilma.
42. In or about November, 2005, and at other times following Hurricane
Wilma, RESIDENCES made a claim for the losses and damages caused from
Hurricane Wilma and requested to be paid the actual cash value due under the Mt.
Hawley Insurance Contract.
43. Notwithstanding RESIDENCES' claim, MT. HAWLEY has not determined
the value of the lost or damaged property and has not paid RESIDENCES the full actual
cash value due under the Mt. Hawley Insurance Contract. Instead, MT. HAWLEY
contends that the majority of the loss is under deductible and, otherwise, has denied the
claim.
Facsimile (561) 820-2542
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Telephone (561) 653-2900

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44. MT. HAWLEY breached the Mt. Hawley Insurance Contract by failing to
accurately adjust RESIDENCES' claim and properly determine the value of its lost or
damaged property and by failing to fully pay RESIDENCES the actual cash value of the
lost or damaged property.

45. MT. HAWLEY further breached the Mt. Hawley Insurance Contract by
failing to correctly adjust, fully pay or settle RESIDENCES' actual cash value claim and
in so doing, frustrated RESIDENCES' ability to make the repairs necessitated by
Hurricane Wilma.
46. As a direct result of MT. HAWLEY's material breaches of the Mt. Hawley
Insurance Contract, RESIDENCES has suffered millions of dollars in damages.
Upon the rendition of a judgment or decree by any of the

recovery is had.

business there, if the insurer or person representing or
KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite 500
"
West Palm Beach, FL 33401
Telephone (561) 653-2900
*
Facsimile (561) 820-2542
12 of 109

Complaint
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WHEREFORE, RESIDENCES demands judgment against MT. HAWLEY for
compensatory damages, together with interest, costs and attorneys' fees under Section
627.428, Florida Statutes, or in the alternative, under Section 626.911, Florida Statutes,
together with taxable costs, prejudgment interest under Section 627.70131, Florida
Statutes, and other such relief as this Court deems just, equitable and proper.
COUNT III
BREACH OF CONTRACT AGAINST MT. HAWLEY
(Replacement Cost Value)
51. This is an action by RESIDENCES against MT. HAWLEY for breach of the
Mt. Hawley Insurance Contract (replacement cost value) seeking damages in excess of
$75, 000.00, exclusive of interest, costs, and attorneys' fees.
52. RESIDENCES reavers and realleges the allegations contained in
53. The Mt. Hawley Insurance Contract sets forth the rights and obligations of
MT. HAWLEY to RESIDENCES with respect to its claim, including among other things,
the following pertinent terms and conditions:
* * *


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Pursuant to the terms and conditions of the Mt. Hawley Insurance

54.
Contract, RESIDENCES has a right to coverage for property losses or damages caused
by Hurricane Wilma.
55. In or about October, 2005, and at other times following Hurricane Wilma,
RESIDENCES made a claim to MT. HAWLEY for the losses and damages caused from
Hurricane Wilma and has requested that MT. HAWLEY pay RESIDENCES the actual
cost values for its losses and damages, as provided by the Mt.
cash and replacement
Hawley Insurance Contract.

has not determined
56. Notwithstanding RESIDENCES' claim, MT. HAWLEY
and has not paid to RESIDENCES the actual
the value of the lost or damaged property
cash value and the replacement cost value due under the Mt. Hawley Insurance
under
Contract. Instead, MT. HAWLEY contends that the majority of the loss is
deductible and has otherwise denied the claim.
57. MT. HAWLEY materially breached the Mt. Hawley Insurance Contract by
to determine the value of the

failing to adjust RESIDENCES' claim, failing
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RESIDENCES' lost or destroyed property, and by failing to pay RESIDENCES the
actual cash value and the replacement cost value of the lost or damaged property.
58. MT. HAWLEY further breached the Mt. Hawley Insurance Contract, and is
continuing to do so by failing to adjust, pay and/or settle RESIDENCES' actual cash
value claim and, in doing so, frustrated RESIDENCES' ability to make the repairs
necessary for RESIDENCES to receive the reimbursements for its claim on a
replacement cost basis, which constitutes yet another breach of the Mt. Hawley
Insurance Contract.
59. As a direct and proximate result of MT. HAWLEY's breaches of the Mt.
Hawley Insurance Contract, RESIDENCES has suffered millions of dollars in damages.
RESIDENCES is entitled to recover its reasonable attorneys' fees

61.

the
Upon the rendition of a judgment or decree by any of
recovery is had.

upon contract of insurance issued or delivered in this state
a
500 *West Palm Beach, FL 33401

KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South, Suite
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Section
compensatory damages, together with interest, costs and attorneys' fees under
together with taxable costs, prejudgment interest under Section 627.70131, Florida
COUNT IV
BREACH OF IMPLIED WARRANTY OF GOOD FAITH
AND FAIR DEALING AGAINST MT. HAWLEY
64. This is an action by RESIDENCES against MT. HAWLEY for breach of
the subject matter of which exceeds

implied warranty of good faith and fair dealing,
$75, 000, exclusive of interest, costs and attorneys' fees.

the allegations contained in
65. RESIDENCES realleges and reavers
is material term in
66. An implied warranty of good faith and fair dealing a
every Florida contract, including the Mt. Hawley Insurance Contract.
67. The Mt. Hawley Insurance Contract does not specify the permissibility or
the express terms of the Mt. Hawley

scope of MT. HAWLEY's conduct in relation to
Insurance Contract and is unclear.
68. The Mt. Hawley Insurance Contract states:
KATZMAN GARFINKEL ROSENBAUM LLP 250 Australian Avenue South, Suite 500 *West Palm Beach, FL 33401
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We will determine the value of lost or damaged property or

applicable terms of the Valuation Condition in this Coverage
See Composite Exhibit "A", Paragraph E.4.g.

69. The Mt. Hawley Insurance Contract neither defines the standards
governing MT. HAWLEY's exercise of its discretion nor provides standards governing
the time-frame within which MT. HAWLEY must adjust or value a claim.
70. Although the Mt. Hawley Insurance Contract does not specify the time-
frame within which MT. HAWLEY must determine the value of RESIDENCES' claim,
RESIDENCES reasonably expected MT. HAWLEY to exercise its discretion within a
reasonable amount of time given the nature of the loss and the attendant
circumstances.
71. Some three years later, through its delay and failure to adjust
RESIDENCES' claim, MT. HAWLEY continues to deprive RESIDENCES of the benefits
of the Mt. Hawley Insurance Contract. Following Hurricane Wilma on October 24, 2005
and continuing to the present, MT. HAWLEY has breached the implied covenant of
good faith and fair dealing by delaying and failing to reasonably value the losses or
damage RESIDENCES sustained during Hurricane Wilma; delaying and failing to
reasonably determine the cost to repair or replace RESIDENCES' property that was
damaged or lost during Hurricane Wilma; delaying and failing to make reasonable
efforts to agree with RESIDENCES as to the value of the lost or damaged property or
the cost of its repair or replacement and failing to value and/or adjust the loss with
RESIDENCES promptly and reasonably given the attendant circumstances.
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72. MT. HAWLEY's delay and failure to timely adjust RESIDENCES' claim
has frustrated the purpose of the Mt. Hawley Insurance Contract and had disappointed
RESIDENCES' reasonable commercial expectations under the Mt. Hawley Insurance
Contract.
73. As a direct result of MT. HAWLEY's breaches of the implied warranty of
good faith and fair dealing in the Mt. Hawley Insurance Contract, RESIDENCES has
suffered general compensatory damages in the millions of dollars. RESIDENCES has
also suffered special damages, including, but not limited to, the expenses of defending
liens resulting from hurricane related roof repairs for which MT. HAWLEY unreasonably
failed to adjust, pay or settle.
74. RESIDENCES has retained the undersigned attorneys and is obligated to
pay them a reasonable fee for their services.
Upon rendition of a judgment of decree by any of the courts

of this state against an insurer and in favor of any named or
omnibus insured or the named beneficiary under a policy or
contract executed by the insurer, the trial court or, in the
event of an appeal in which the insured or beneficiary
the insurer and in favor of the inured beneficiary a
reasonable sum as fees or compensation for the insured's of
recovery is had.

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to Section 627.70131, Florida Statutes
compensatory damages and special damages, together with interest, costs and
attorneys' fees under 627.428, Florida Statutes, and such other relief as this Court
deems just, equitable and proper.
COUNT V
BREACH OF CONTRACT AGAINST WESTCHESTER
(Actual Cash Value)
78. This is an action by RESIDENCES against WESTCHESTER for breach of
the Westchester Insurance Contract seeking damages in excess of $75, 000.00,
exclusive of interest, costs, and attorneys' fees.
79. RESIDENCES realleges the allegations contained in paragraphs 1
through 18 above, as if fully set forth herein.
80. In or about September, 2005, WESTCHESTER offered to provide property
coverage to RESIDENCES for the twelve month period commencing September 7,
2005 in consideration for a premium. In or about September, 2005, RESIDENCES
accepted WESTCHESTER's offer of property coverage and paid the premium.
81. The Westchester Insurance Contract adopted and incorporated by
reference, the terms and conditions of the Mt. Hawley Insurance Contract. Accordingly,
the following terms and conditions of the Mt. Hawley Insurance Contract set forth the
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of WESTCHESTER to RESIDENCES with respect to its claim,

rights and obligations
including among other things, the following pertinent terms and conditions:

You may make claim for loss or damage covered by this

a

82. Pursuant to the terms of the Mt. Hawley Insurance Contract, as adopted
by the Westchester Insurance Contract, RESIDENCES has a right to property coverage
for loss or damages caused by Hurricane Wilma.

to the
83. In or about October, 2005 through October, 2008, and continuing
has materially breached the Westchester Insurance

present time, WESTCHESTER
to pay the actual cash value of the losses or damages to the insured
Contract by failing
property caused by Hurricane Wilma.

84. In or about November, 2005, and/or at other times following Hurricane
Wilma, RESIDENCES made a claim for the losses and damages caused from
Hurricane Wilma and requested to be paid the actual cash value due under the
Westchester Insurance Contract.

"

"
250 Australian Avenue South, Suite 500
(561) 820-2542
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Telephone (561) 653-2900 Facsimile
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85. Notwithstanding RESIDENCES' claim, WESTCHESTER has not
determined the value of the lost or damaged property and has not paid RESIDENCES
the actual cash value due under the Westchester Insurance Contract. Instead,
WESTCHESTER, through its delay and failure to pay, has effectively denied the claim.
86. WESTCHESTER breached the Westchester Insurance Contract by failing
to adjust RESIDENCES' claim and determine the value of its lost or damaged property
and by failing to pay RESIDENCES the actual cash value of the lost or damaged
property.
87. WESTCHESTER further breached the Westchester Insurance Contract by
failing to adjust, pay and/or settle RESIDENCES' actual cash value claim and in so
doing, frustrated RESIDENCES' ability to make the repairs necessitated by Hurricane
Wilma.
88. As a direct and proximate result of WESTCHESTER's material breaches
of the Westchester Insurance Contract, RESIDENCES has suffered millions of dollars in
damages.

*
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Complaint
Page 22

recovery is had.

in this state
upon a contract of insurance issued or delivered
for
WHEREFORE, RESIDENCES demands judgment against WESTCHESTER
fees under Section
compensatory damages, together with interest, costs and attorneys'
with taxable costs, prejudgment interest under Section 627.70131, Florida

together
COUNT VI
BREACH OF CONTRACT AGAINST WESTCHESTER
(Replacement Cost Value)
93. This is an action by RESIDENCES against WESTCHESTER for breach of

cost value) seeking damages in
the Westchester Insurance Contract (replacement
excess of $75, 000.00, exclusive of interest, costs, and attorneys' fees.

94. RESIDENCES reavers and realleges
1 through 18 above, as if fully set forth herein.

paragraphs

*
Telephone (561) 653-2900
*
Facsimile (561) 820-2542
22 of 109

Complaint
Page 23
95. The Westchester Insurance Contract adopted and incorporated the terms
and conditions of the Mt. Hawley Insurance Contract. Accordingly, the terms and
conditions contained in the Mt. Hawley Insurance Contract set forth the rights and
obligations of WESTCHESTER to RESIDENCES with respect to its claim, including
among other things, the following pertinent terms and conditions:


96. Pursuant to the terms and conditions of the Mt. Hawley Insurance
Contract, as adopted by the Westchester Insurance Contract, RESIDENCES has a right
to property coverage for loss or damages caused by Hurricane Wilma.
97. In or about October, 2005, and/or at other times following Hurricane
Wilma, RESIDENCES made a claim to WESTCHESTER for the losses and damages
caused from Hurricane Wilma and has requested that WESTCHESTER pay
RESIDENCES the actual cash and replacement cost values for its losses and damages,
as provided by the Westchester Insurance Contract.

"
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*
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23 of 109

Complaint
Page 24
98. Notwithstanding RESIDENCES' claim, WESTCHESTER has not
determined the value of the lost or damaged property and has not paid RESIDENCES
the actual cash value and the replacement cost value due under the Westchester
Insurance Contract. Instead, WESTCHESTER, through its delay and failure to pay, has
effectively denied the claim.
99. WESTCHESTER materially breached the Westchester Insurance Contract
by failing to adjust RESIDENCES' claim, failing to determine the value of the
RESIDENCES' lost or destroyed property, and by failing to pay RESIDENCES the
actual cash value and the replacement cost value of the lost or damaged property.
100. WESTCHESTER further breached the Westchester Insurance Contract,
and is continuing to do so by failing to adjust, pay and/or settle RESIDENCES' actual
cash value claim and, in doing so, frustrated RESIDENCES' ability to make the repairs
necessary for RESIDENCES to receive the reimbursements for its claim on a
replacement cost basis, which constitutes yet another breach of the Westchester
Insurance Contract.
101. As a direct and proximate result of WESTCHESTER's breaches of the
Westchester Insurance Contract, RESIDENCES has suffered millions of dollars in
damages.

*
24 of 109

Complaint
Page 25
named omnibus insured or the named beneficiary under a

or

recovery is had.

upon acontract of insurance issued or delivered in this state

for
WHEREFORE, RESIDENCES demands judgment against WESTCHESTER
costs and attorneys' fees under Section

compensatory damages, together with interest,
with taxable costs, prejudgment interest under Section 627.70131, Florida

together
COUNT VII
BREACH OF IMPLIED WARRANTY OF GOOD FAITH
AND FAIR DEALING AGAINST WESTCHESTER
of
106. This is an action by RESIDENCES against WESTCHESTER for breach
matter of which exceeds
implied warranty of good faith and fair dealing, the subject
$75, 000, exclusive of interest, costs and attorneys' fees.
Suite 500 *West Palm Beach, FL 33401

KATZMAN GARFINKEL ROSENBAUM LLP *250 Australian Avenue South,
653-2900
*
Facsimile (561) 820-2542
Telephone (561)
25 of 109

Complaint
Page 26

107. RESIDENCES realleges and reavers
of good faith and fair dealing is a material term in

108. An implied warranty
every Florida contract, including the Westchester Insurance Contract.
109. Neither the Westchester Insurance Contract nor the Mt. Hawley Insurance
Contract as adopted by the Westchester Insurance Contract specify the permissibility or
regarding to the express terms of the Westchester

scope of WESTCHESTER's conduct
together this
Insurance Contract; therefore the contracts individual and construed on
issue are unclear.
110. The Mt. Hawley Insurance Contract states:
We will determine the value of lost or damaged property or

applicable terms of the Valuation Condition in this Coverage
See Composite Exhibit "A", Paragraph E.4.g.
111. Neither the Westchester Insurance Contract nor the Mt. Hawley Insurance
Contract as adopted by the Westchester Insurance Contract defines the standards
exercise of its discretion the standards governing the

governing WESTCHESTER's or
time-frame within which WESTCHESTER must adjust or value a claim.
the Westchester Insurance Contract does not specify the time-

112. Although
frame within which WESTCHESTER must determine the value of RESIDENCES' claim,
RESIDENCES reasonably expected WESTCHESTER to exercise its discretion within a
nature of the loss and the attendant

reasonable amount of time given the
circumstances.

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*
Facsimile (561) 820-2542
26 of 109

Complaint
Page 27
113. Some three years later, through its delay and failure to adjust
RESIDENCES' claim, WESTCHESTER continues to deprive RESIDENCES of the
benefits of the Westchester Insurance Contract. Following Hurricane Wilma on October
24, 2005 and continuing to the present, WESTCHESTER has breached the implied
to reasonably value the
covenant of good faith and fair dealing by delaying and failing
losses or damage RESIDENCES sustained during Hurricane Wilma; delaying and

cost to repair or replace RESIDENCES' property that
failing to reasonably determine the
lost during Hurricane Wilma; delaying and failing to make reasonable

was damaged or
efforts to agree with RESIDENCES as to the value of the lost or damaged property or
to value and/or adjust the loss with

the cost of its repair or replacement; and, failing
RESIDENCES promptly and reasonably given the attendant circumstances.
114. WESTCHESTER's delay and failure to timely adjust RESIDENCES' claim
has frustrated the purpose of the Westchester Insurance Contract and had disappointed
RESIDENCES' reasonable commercial expectations under the Westchester Insurance
Contract.
115. As a direct result of WESTCHESTER's breaches of the implied warranty
of good faith and fair dealing in the Westchester Insurance Contract, RESIDENCES has
in the millions of dollars. RESIDENCES has

suffered general compensatory damages
also suffered special damages, including, but not limited to, the expenses of defending
liens resulting from hurricane related roof repairs for which MT. HAWLEY unreasonably
failed to adjust, pay or settle.
*

Telephone (561) 653-2900
"
Facsimile (561) 820-2542
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Complaint
Page 28
Upon rendition of a judgment of decree by any of the courts

of this state against an insurer and in favor of any named or
omnibus insured or the named beneficiary under a policy or
contract executed by the insurer, the trial court or, in the
event of an appeal in which the insured or beneficiary
the insurer and in favor of the inured beneficiary a
reasonable sum as fees or compensation for the insured's of
recovery is had.

this state
upon a contract of insurance issued or delivered in
to Section 627.70131, Florida Statutes
WHEREFORE, RESIDENCES demands judgment against WESTCHESTER for

costs and
compensatory damages and special damages, together with interest,
this Court
attorneys' fees under 627.428, Florida Statutes, and such other relief as
deems just, equitable and proper.
JURY DEMAND
RESIDENCES demands a trial by jury on all claims, defenses and issues so
triable in the entire case.
(Signature follows)
"
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Complaint
Page 29
DATED this/ 4(day of May, 2009.
Respectfully submitted,
Attorneys for Plaintiff
West Palm Beach, Florida 33401
(561) 653-2900; Fax (561) 820-2542
Email: drosenbaum(kgrlawfirm.com
Email: isiracusakqrlawfirm.com
Email: jlawrencekqrlawfirm.com
Email: mkeegankgrlawfirm.com
Email: rvaluntaskqrlawfirm.com
BY:
ANI R:WtM
rid Bar No. 306(71
JOS PH M. SIRACUSA
Florida Bar No. 159670
JENNILYNN E. LAWRENCE
MARK G. KEEGAN
RICHARD VALUNTAS
723288

"
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Telephone (561) 653-2900
*
Facsimile (561) 820-2542
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COMPOSITE
EXHIBIT
"A”
30 of 109
mi
MT. HAWLEY
Mt. Hawley Insurance Company

Peoria, Illinois 61615
Commercial Property Policy Declarations Page

Policy No. MCP0140064
Named Insured and Mailing Address: Agent/Broker and Mailing Address:
El Ad Residences At Miramar Lakes Swett & Crawford-New York
Condominium Association, Inc. Two Wall Street
7975 NW 154th Street Suite #200 New York, NY 10005
.
Miami Lakes, FL 33016
Policy Period: From 09/07/2005 to 09/07/2006 at 12:01 A.M. Standard Time at your mailing address shown above.
DESCRIPTION OF PREMISES
Covered Locations Listed Below:
2480 West Preserve Way, Miramar, FL 33025
CAUSES OF LOSS: Special including Earthquake excluding Flood

LIMITS OF INSURANCE
Total coverage (limit) applicable Limit$2, 000, 000, part of $2, 000, 000
The above limit applies to the following and is subject to any sublimits stated elsewhere in the policy:
*
Building
Business Personal Property*
Business Income (without Extra Expense)
*
Replacement Cost Applies
Per Occurrence Loss Limit
At no time will we pay more than $2, 000, 000 for a loss due to a single occurrence or event.
Deductible(s): Refer to CPR 2218, Declarations -

Deductible Addendum
Forms Made A Part Of This Policy At Time Of Issue: See CPR 2150, Applicable Forms & Endorsements
PCA Fees
Inspection Fees $•
Total Premium
PREMIUM INFURMATION REDACTED
Amount Payable At Inception $
/0 101
U
Authorized Signature
PB 9/28/2005
FRPR 100 (02/02) COIAPOWE Page 1 of 1
31 of 109 EXHIBIT "A"

Policy Number: MCP0140064 Mt. Hawley Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ

IT CAREFULLY.
DECLARATIONS -
DEDUCTIBLE ADDENDUM
The following deductible

wording is in addition to all other deductible wording found elsewhere in this policy. All other
deductible wording found in and made a part of this
policy also applies. Each claim for loss or damage will be adjusted
separately.
PERIL DEDUCTIBLE(S)
$10, 000 Per Occurrence for All Covered Perils, except:
3.00% of total values at risk Per
Building (including time element if applicable) at the time of loss for Windstorm or Hall
$50, 000 Per Occurrence for Earthquake
ALL OTHER TERMS AND CONDITIONS OF THIS

POLICY REMAIN UNCHANGED.
CPR 2218 (11/04)

Page 1 of 1
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32 of 109

9025 North Lindbergh Drive, Peoria, IL 61615
SUPPLEMENTAL DECLARATIONS
Policy No: MCP0140064

Named Insured and Mailing Address
El Ad Residences At Miramar Lakes
Condominium Association, Inc.
7975 NW 154th Street Suite #200
Miami Lakes, FL 33016
If coverage for Certified Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, is provided under the
terms of your insurance policy, losses caused by acts of terrorism is partially reimbursed by the United States under a
formula whereby the United States pays 90% of covered terrorism losses exceeding a prescribed deductible to the
insurance company providing for the coverage.
Portion of premium attributable to coverage for Certified Acts of Terrorism $ 19.689
Portion of premium attributable to coverage for Certified Acts of Terrorism

(fire only), as required by law $ Not Applicable
With respect to any one or more "certified acts of terrorism" under the federal Terrorism Risk Insurance Act of 2002, we
will not pay any amounts for which we are not responsible under the terms of that Act (including subsequent action of
Congress pursuant to the Act) due to the application of any clause which results in a cap on our liability for payments
for terrorism losses.
CPR 110A (02/03)

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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
SCHEDULED LOCATIONS ENDORSEMENT
Location Coverage Declared* Description and Location

Number Type Values Valuation** of Property Covered
00001 - 001 Building $48, 200, 000 RCV Built: 2002, Masonry Joisted
-
2480 West Preserve Way

Miramar, FL 33025
00001 -
001 Business $250, 000 RCV Built: 2002, Masonry Joisted

-
Personal 2480 West Preserve Way

Property Miramar, FL 33025
00001 - 001 Business Income $1, 000, 000 ALS Built: 2002, Masonry Joisted
-
(withoutExtra 2480 West Preserve Way

Expense) Miramar, FL 33025
Total Insured Value $49, 450, 000
*
For Limit of Insurance please see Declarations page of this policy.
**
Indicate: ACV (Actual Cash Value), ALS (Actual Loss Sustained), FRC (Functional Replacement Cost), RCV
(Replacement Cost Value), SP (Selling Price) or SV (Stated Value).
ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED.
CPR 2194 (10101) 1 of 1

Page
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34 of 109
'. PolicylNumber: MCP0140064 Mt. Hawley Insurance Company
APPLICABLE FORMS & ENDORSEMENTS
FORMS AND ENDORSEMENTS LISTED BELOW APPLY TO AND ARE MADE PART OF THIS POLICY AT TIME OF
ISSUE.
CPR-2218(11104) Declarations -Deductible Addendum

CPR-110A(02/03) Supplemental Declarations
CPR-2194(10101) Scheduled Locations Endorsement
CP-0010(04/02) Building and Personal Property Coverage Form
CP-0017(04/02) Condominium Association Coverage Form
CP-0032(04/02) Business Income (Without Extra Expense) Coverage Form
CP-1030(04/02) Causes Of Loss Special Form
-
CP-0090(07188) Commercial Property Conditions

IL-0017(11/98) Common Policy Conditions
CPR-2129(03/03) Minimum Premium Endorsement Percent of Premium
-
CPR-2155(01/04) Earthquake Extension

CPR-2212(03/02) Additional Named Insureds
1L-0415(04/98) Protective Safeguards
CP-0125(06/95) Florida Changes
CPR-2126(10/01) Limitation of Liability Endorsement Form B
CPR-2187(10/01) Exclusion of Certain Computer Related Losses-A
CPR-2221(02/03) Certified Terrorism Loss
CPR-2230(05/03) Terrorism Exclusion
CPR-2257(09/04) Conditional Terrorism Exclusion
IL-0255(07/02) Florida Changes Cancellation And Nonrenewal
-
RIL-099(01/01) Service of Suit Endorsement
CPR 2150 Page 1 of 1

(10/01)
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35 of 109
'
BUILDING AND PERSONAL

PROPERTY 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 (a) Additions under construction, altera-

tions and repairs to the building or
We will pay for direct physical loss of or damage to structure;
Covered Property at the premises described in the
Declarations caused by or resulting from any Covered
(b) Materials, equipment, supplies and
Cause of Loss. within 100
temporary structures, on or
feet of the described premises, used
1. Covered Property for making additions, alterations or
Covered Property, as used in this Coverage Part, repairs to the building or structure.
means the type of property described in this
b. Your Buslness Personal Property located in
section, A.1., and limited in A.2., Property Not or on the building described in the Declare-
Covered, if a Limit of Insurance is shown in the
Declarations for that type of property. tions or in the open (or in a vehicle) within 100
feet of the described premises, consisting of
the following unless otherwise specified in the
a. Building, meaning the building or structure
described in the Declarations, including: Declarations or on the Your Business Person-
al Property Separation of Coverage form:
—
(1) Completed additions;

(1) Furniture and fixtures;
(2) Fixtures, including outdoor fixtures;
(2) Machinery and equipment;
(3) Permanently installed:
(3) "Stock";
(a) Machinery and
(4) All other personal property owned by you
(b) Equipment; and used in your business;
(4) Personal property owned by you that is materials services furnished

used to maintain or service the building or
(5) Labor, or or
arranged by you on personal property of
structure or its premises, including:
others;
(a) Fire extinguishing equipment;
(6) Your interest as tenant in improve-
use
ments and betterments. Improvements
(b) Outdoor furniture;
and betterments are fixtures, alterations,
and installations or additions:
(c) Floor coverings;
(a) Made a part of the building or struc-
(d) Appliances used for refrigerating,
ventilating, cooking, dishwashing or ture you occupy but do not own; and
laundering;
(b) You acquired or made at your ex-
(5) If not covered by other insurance: pense but cannot legally

remove;
CP 00 10 04 02 @ ISO Properties, Inc., 2001 Page 1 of 15

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(7) Leased personal property for which you k. Property that is covered under another cover-
have a contractual responsibility to in- age form of this or any other policy in which it
sure, unless otherwise provided for under is more specifically described, except for the
Personal Property of Others. excess of the amount due (whether you can
collect on it or not) from that other insurance;
C. Personal Property Of Others that is:
I, Retaining walls that are not part of a building;
(1) In your care, custody or control; and
m. Underground pipes, flues or drains;
(2) Located in or on the building described in
the Declarations or in the open (or in a n. Electronic data, except as provided under
Additional Coverages Electronic Data.
vehicle) within 100 feet of the described
—
Electronic data means information, facts or

premises.
computer programs stored as or on, created
or used on, or transmitted to or from computer
However, our payment for loss of or damage
software (including systems and applications
to personal property of others will only be for
the account of the owner of the property. software), on hard or floppy disks, CD-ROMs,
tapes, drives, cells, data processing devices
or any other repositories of computer software
2. Property Not Covered
which are used with electronically controlled
Covered Property does not include: equipment. The term computer programs, re-
ferred to in the foregoing description of elec-
tronic data, means a set of related electronic
a. Accounts, bills, currency, food stamps or other instructions which direct the operations and
evidences of debt, money, notes or securities,
functions of a computer or device connected
Lottery tickets held for sale are not securities;
to it, which enable the computer or device to
receive, process, store, retrieve or send data.
b. Animals, unless owned by others and board- This Paragraph n., does not apply to your
ed by you, or if owned by you, only as "stock"
"stock" of prepackaged software.
while inside of buildings;
o. The cost to replace or restore the information
c. Automobiles held for sale; on valuable papers and records, including
those which exist as electronic data. Valuable
d. Bridges, roadways, walks, patios or other
papers and records include but are not Hmited
paved surfaces; to proprietary information, books of account,
deeds, manuscripts, abstracts, drawings and
e. Contraband, or property in the course of il-
card index systems. Refer to the Coverage
legal transportation or trade; Extension for Valuable Papers And Records
(Other Than Electronic Data) for limited cov-
f. The cost of excavations, grading, backfilling or
erage for valuable papers and records other
filling; than those which exist as electronic data.
g. Foundations of buildings, structures, machin- Vehicles or self-propelled machines

p. (including
ery or boilers if their foundations are below: aircraft or watercraft) that:
(1) The lowest basement floor; or Are licensed for public roads; or
(1) use on
(2) The surface of the ground, if there is no

(2) Are operated principally away from the
basement; described premises.
h. Land (including land on which the property is This paragraph does not apply to:
located), water, growing crops or lawns;
(a) Vehicles or self-propelled machines,
I. Personal property while airborne or or autos you manufacture, process or
waterborne; warehouse;
j. Bulkheads, pilings, piers, wharves or docks; (b) Vehicles or self-propelled machines,

other than autos, you hold for sale;
CP 00 10 04 02 © ISO Properties, Inc., 2001 Page 2 of 15

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(c) Rowboats or canoes out of water at will pay for debris removal expense is
the described premises; or limited to 25% of the sum of the
deductible plus the amount that we
(d) Trailers, but only to the extent provid- pay for direct physical loss or damage
ed for in the Coverage Extension for to the Covered Property that has sus-
Non-Owned Detached Trailers. tained loss or damage.
q. The following property while outside of (4) We will pay up to an additional $10, 000
buildings: for debris removal expense, for each lo-
cation, in any one occurrence of physical
(1) Grain, hay, straw or other crops; loss or damage to Covered Property, if
one or both of the following circumstances
(2) Fences, radio or television antennas (in- appiy:
cluding satellite dishes) and their lead-in
wiring, masts or towers, signs (other than (a) The total of the actual debris removal
signs attached to buildings), trees, shrubs expense plus the amount we pay for
or plants (other than "stock" of trees, direct physical loss or damage ex-
shrubs or plants), all except as provided in ceeds the Limit of Insurance on the
the Coverage Extensions. Covered Property that has sustained
loss or damage.
3. Covered Causes Of Loss
(b) The actual debris removal expense
See applicable Causes of Loss Form as shown exceeds 25% of the sum of the
in the Declarations, deductible plus the amount that we
pay for direct physical loss or damage
4. Additional Coverages to the Covered Property that has sus-
tained loss or damage.
a. Debris Removal
Therefore, if (4)(a) and/or (4)(b) apply, our
(1) Subject to Paragraphs (3) and (4), we will totalpayment for direct physical loss or
pay your expense to remove debris of damage and debris removal expense may
Covered Property caused by or resulting reach but will never exceed the Limit of
from a Covered Cause of Loss that Insurance on the Covered Property that
occurs during the policy period. The has sustained loss or damage, plus
expenses will be paid only if they are $10, 000.
reported to us in writing within 180 days of
the date of direct physical foss or damage. (5) Examples
(2) Debris Removal does not apply to costs The following examples assume that there
to: is no coinsurance penalty.
(a) Extract "pollutants" from land or Example #1

water; or
Limit of Insurance $ 90, 000
(b) Remove, restore or replace polluted
land or water. Amount of Deductible $ 500
(3) Subject to the exceptions in Paragraph Amount of Loss $ 50, 000

(4), the following provisions apply:
Amount of Loss Payable $ 49, 500
(a) The most we will pay for the total of ($50, 000 $500)
-
direct physical loss or damage plus

debris removal expense is the Limit of Debris Removal Expense $ 10, 000
Insurance applicable to the Covered
Property that has sustained loss or Debris Removal Expense Payable $ 10, 000
damage. ($10, 000 is 20% of $50, 000)
(b) Subject to (a) above, the amount we The debris removal expense is less than
25% of the sum of the loss payable plus
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the deductible. The sum of the loss pay- from loss or damage by a Covered Cause of
able and the debris removal expense Loss, we will pay for any direct physical loss
($49, 500 + $10, 000 = $59, 500) is less or damage to that property:
than the Limit of Insurance. Therefore the
full amount of debris removal expense is (1) While it is being moved or while tempo-
payable in accordance with the terms of rarily stored at another location; and
Paragraph (3).
(2) Only if the loss or damage occurs within
Example #2 30 days after the property is first moved.
Limit of Insurance $ 90, 000 c. Fire Department Service Charge

Amount of Deductible $ 600
When the fire department is called to save or
Amount of Loss $ 80, 000 protect Covered Property from a Covered
Cause of Loss, we will pay up to $1, 000 for
Amount of Loss $ 79, 500 your liability for fire department service
Payable
($80, 000 $500)
-
charges:
Debris Removal Expense $ 30, 000 (1) Assumed by contract or agreement prior
to loss; or
Debris Removal Expense Payable

(2) Required by local ordinance.
Basic Amount $ 10, 500
No Deductible applies to this Additional
Additional Amount $ 10, 000 Coverage.
The basic amount payable for debris d. Pollutant Clean Up And Removal
removal expense under the terms of
Paragraph (3) is calculated as follows: We will pay your expense to extract "pol-
$80, 000 ($79, 500 + $500) x .25 = lutants" from land or water at the described
$20, 000; capped at $10, 600. The cap premises if the discharge, dispersal, seepage,
applies because the sum of the loss migration, release or escape of the
payable ($79, 500) and the basic amount "pollutants" is caused by or results from a
payable for debris removal expense Covered Cause of Loss that occurs during the
($10, 600) cannot exceed the Limit of policy period. The expenses will be paid only if
Insurance ($90, 000).
they are reported to us in writing within 180
The additional amount payable for debris days .of the date on which the Covered Cause
of Loss occurs.
removal expense is provided in accor-
dance with the terms of Paragraph (4),
This Additional Coverage does not apply to
because the debris removal expense
costs to test for, monitor or assess the exis-
($30, 000) exceeds 25% of the loss
tence, concentration or effects of "pollutants."
payable plus the deductible ($30, 000 is But we will pay for testing which is performed
37.5% of $80, 000), and because the sum
of the loss payable and debris removal in the course of extracting the "pollutants"
from the land or water.
expense ($79, 500 + $30, 000 = $109, 500)
would exceed the Limit of Insurance
The most we will pay under this Additional
($90, 000). The additional amount of coy-
ered debris removal expense is $10, 000, Coverage for each described premises is
the maximum payable under Paragraph $10, 000 for the sum of all covered expenses
(4). Thus the total payable for debris re- arising out of Covered Causes of Loss occur-
moval expense in this example is ring during each separate 12 month period of
$20, 500; $9, 500 of the debris removal ex- this policy.
pense is not covered.
e. Increased Cost Of Construction
b. Preservation Of Property
(1) This Additional Coverage applies only to
If it is necessary to move Covered Property buildings to which the Replacement Cost
from the described premises to preserve it Optional Coverage applies.

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(2) In the event of damage by a Covered property, then the most we will pay under this
Cause of Loss to a building that is Coy- Additional Coverage, for that damaged build-
erect Property, we will pay the increased ing, is the lesser of: $10, 000 or 5% times the
costs incurred to comply with enforce- value of the damaged building as of the time
ment of an ordinance or law in the course of loss times the applicable coinsurance
of repair, rebuilding or replacement of percentage.
damaged parts of that property, subject to
the limitations stated in e.(3) through e.(9) The amount payable under this Additional
of this Additional Coverage. Coverage is additional insurance.
(3) The ordinance or law referred to in e.(2)

(7) With respect to this Additional Coverage:
of this Additional Coverage is an ordi-
nance or law that regulates the construc- We will not pay for the Increased Cost of
(a)
tion or repair of buildings or establishes Construction:
zoning or land use requirements at the
described premises, and is in force at the
time of loss,
(1) Until the property is actually repaired
or replaced, at the same or another
Under this Additional Coverage, we will premises; and

(4)
not pay any costs due to an ordinance or
law that: (II) Unless the repairs or replacement are
made as soon as reasonably possible
after the loss or damage, not to ex-
(a) You were required to comply with
ceed two years. We may extend this
before the loss, even when the build-
ing was undamaged; and period in writing during the two years.
(b) If the building is repaired or replaced at

(b) You failed to comply with.
the same premises, or if you elect to re-
Under this Additional Coverage, will build at another premises, the most we
(5) we
not pay for: will pay for the Increased Cost of Con-
struction, subject to the provisions of e.(6)
(a) The enforcement of any ordinance or of this Additional Coverage, is the in-
law which requires demolition, repair, creased cost of construction at the same
replacement, reconstruction, remod- premises.
eling or remediation of property due to
contamination by "pollutants" or due (c) If the ordinance or law requires relocation
to the presence, growth, prolifer- to another premises, the most we will pay
ation, spread or any activity of "fun- for the Increased Cost of Construction,
"
gus, wet or dry rot or bacteria; or subject to the provisions of e.(6) of this
Additional Coverage, is the increased cost
(b) Any costs associated with the en- of construction at the new premises.
forcement of an ordinance or law
which requires any insured or others not subject to the
(8) This Additional Coverage is
to test for, monitor, clean up, remove, terms of the Ordinance Law Exclusion,
or
contain, treat, detoxify or neutralize, to the extent that such Exclusion would don-
or in any way respond to, or assess flict with the provisions of this Additional
" "
the effects of "pollutants, "fungus,
Coverage.
wet or dry rot or bacteria.
The most will pay under this Additional (9) The costs addressed in the Loss Payment and
(6) we
Valuation Conditions, and the Replacement
Coverage, for each described building Cost Optional Coverage, in this Coverage
insured under this Coverage Form, is
Form, do not include the increased cost
$10, 000 or 5% of the Limit of Insurance attributable to enforcement of an ordinance or
applicable to that building, whichever is law. The amount payable under this Additional
less. If a damaged building is covered un-
der a blanket Limit of Insurance which ap- Coverage, as stated in e.(6) of this Additional
plies to more than one building or item of Coverage, is not subject to such limitation.

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f. Electronic Data (4) The most will pay under this Additional
we
Coverage Electronic Data is $2, 500 for

—
all loss or damage sustained in any one

(1) Under this Additional Coverage, electron-
lc data has the meaning described under policy year, regardless of the number of
occurrences of loss or damage or the
Property Not Covered Electronic Data.
—
number of premises, locations or comput-

of this Additional er systems involved. If loss payment on
(2) Subject to the provisions
the first occurrence does not exhaust this
Coverage, we will pay for the cost to re-
place or restore electronic data which has amount, then the balance is available for
been destroyed or corrupted by a Coy- subsequent loss or damage sustained In
ered Cause of Loss. To the extent that but not after that policy year. With respect
electronic data is not replaced or re- to an occurrence which begins in one
stored, the loss will be valued at the cost policy year and continues or results in
of replacement of the media on which the additional loss or damage in a subse-
electronic data was stored, with blank quent policy year(s), all loss or damage is
media of substantially identical type. deemed to be sustained in the policy year
in which the occurrence began.
(3) The Covered Causes of Loss applicable
to Your Business Personal Property apply 5. Coverage Extensions
to this Additional Coverage Electronic —
Except as otherwise provided, the following Ex-

Data, subject to the following:
tensions apply to property located in or on the
(a) If the Causes Of Loss Special Form

—
building described in the Declarations or in the
open (or in a vehicle) within 100 feet of the
applies, coverage under this Addition-
al Coverage Electronic Data is limit-
— described premises.
ed to the "specified causes of loss" as
defined in that form, and Collapse as if a Coinsurance percentage of 80% or more or, a
set forth in that form. Value Reporting period symbol, is shown in the
Declarations, you may extend the insurance pro-
(b) If the Causes Of Loss — Broad Form vided by this Coverage Part as follows:
applies, coverage under this Addi-
tional Coverage Electronic Data in-
—
a. Newly Acquired Or Constructed Property
cludes Collapse as set forth in that
form. (1) Buildings
If the Causes Of Loss Form is en- If this policy covers Building, you may
(c)
dorsed to add a Covered Cause of extend that insurance to apply to:
Loss, the additional Covered Cause
of Loss does not apply to the cov- (a) Your new buildings while being built
on the described premises; and
erage provided under this Additional
Coverage Electronic Data.
—
(b) Buildings you acquire at locations,

The Covered Causes of Loss include other than the described premises,
(d)
a virus, harmful code or similar in- intended for:
struction introduced into or enacted
(i) Similar use as the building de-
on a computer system (including
electronic data) or a network to which scribed in the Declarations; or
it is connected, designed to damage
(H) Use as a warehouse.
or destroy any part of the system or
disrupt its normal operation. But there
is no coverage for loss or damage The most we will pay for loss or damage
caused by or resulting from manipula- under this Extension is $250, 000 at each
tion of computer system (including
a building.
electronic data) by any employee, In-
(2) Your Business Personal Property
cluding a temporary or leased em-
ployee, or by an entity retained by you
or for you to inspect, design, install, (a) If this policy covers Your Business
Personal Property, you may extend
modify, maintain, repair or replace
that that insurance to apply to:
system.

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in- b. Personal Effects And Property Of Others

(I) Business personal property,
cluding such property that you
You may extend the insurance that applies to
newly acquire, at any location you
Your Business Personal Property to apply to:
acquire other than at fairs, trade
shows or exhibitions;
(1) Personal effects owned by you, your offi-
Business personal property, in- cers, your partners or members, your
(ii)
managers or your employees. This exten-
cluding such property that you sion does not apply to loss or damage by
newly acquire, located at your theft.
newly constructed or acquired
buildings at the location de- of others in your care,
scribed in the Declarations; or (2) Personal property
custody or control.
(Ill) Business personal property that The most we will pay for loss or damage
you newly acquire, located at the
under this Extension is $2, 500 at each de-
described premises.
scribed premises. Our payment for loss of or
The most we will pay for loss or damage to personal property of others will
only be for the account of the owner of the
damage under this Extension is
property.
$100, 000 at each building.
does not
c. Valuable Papers And Records (Other Than
(b) This Extension apply to: Electronic Data)
(I) Personal property of others that is (1) You may extend the insurance that ap-
temporarily in your possession in plies to Your Business Personal Property
the course of installing or per-
to apply to the cost to replace or restore
forming work on such property; or the lost information on valuable papers
and records for which duplicates do not
(11) Personal property of others that is exist. But this Extension does not apply to
temporarily in your possession in valuable papers and records which exist
the course of your manufacturing as electronic data. Electronic data has the
or wholesaling activities,
meaning described under Property Not
Covered Electronic Data.
—
(3) Period Of Coverage

(2) If the Causes Of Loss Special Form
—
With respect to insurance on or at each applies, coverage under this Extension is

newly acquired or constructed property, limited to the "specified causes of loss" as
coverage will end when any of the defined in that form, and Collapse as set
following first occurs: forth in that form.
(a) This policy expires; (3) If the Causes Of Loss Broad Form ap-
—
plies, coverage under this Extension in-

(b) 30 days expire after you acquire the cludes Collapse as set forth in that form.
property or begin construction of that
part of the building that would qualify (4) Under this Extension, the most we will pay
as covered property; or to replace or restore the lost information is
$2, 500 at each described premises,
(c) You report values to us. unless a higher limit is shown in the
Declarations. Such amount Is additional
We will charge you additional premium for insurance. We will also pay for the cost of
values reported from the date you acquire blank material for reproducing the records
the property or begin construction of that (whether or not duplicates exist), and
part of the building that would qualify as (when there is a duplicate) for the cost of
covered property. labor to transcribe or copy the records.
The costs of blank material and labor are
subject to the applicable Limit of

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Insurance on Your Business Personal The most we will pay for loss or damage
Property and therefore coverage of such under this Extension Is $1, 000, but not more
costs is not additional insurance. than $250 for any one tree, shrub or plant.
These limits apply to any one occurrence,
d. Property Off-Premises regardless of the types or number of items lost
or damaged in that occurrence.
(1) You may extend the insurance provided

by this Coverage Form to apply to your f. Non-Owned Detached Trailers
Covered Property while it is away from the
described premises, If it is: (1) You may extend the insurance that ap-
plies to Your Business Personal Property
(a) Temporarily at a location you do not to apply to loss or damage to trailers that
own, lease or operate; you do not own, provided that:
(b) In storage at a location you lease, (a) The trailer is used in your business;
provided the lease was executed after
the beginning of the current policy The trailer is in your care, custody or
(b)
term; or control at the premises described in
the Declarations; and
(c) At any fair, trade show or exhibition.
(c) You have a contractual responsibility
(2) This Extension does not apply to property: to pay for loss or damage to the
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 your that occurs:
salespersons, unless the property is
in such care, custody or control at a
(a) While the trailer is attached to any
fair, trade show or exhibition,
motor vehicle or motorized convey-
ance, whether or not the motor ve-
(3) The most we will pay for loss or damage hide or motorized conveyance is in
under this Extension is $10, 000.
motion;
e. Outdoor Property
(b) During hitching or unhitching opera-
tions, when a trailer becomes acci-

or
You may extend the insurance provided by
this Coverage Form to apply to your outdoor dentally unhitched from a motor vehi-
or motorized conveyance.
fences, radio and television antennas (includ-cle
ing satellite dishes), signs (other than signs The most we will pay for loss or damage
attached to buildings), trees, shrubs and (3)
under this Extension is $5, 000, unless a
plants (other than "stock" of trees, shrubs or h igher limit is shown in the Declarations.
plants), including debris removal expense,
caused by or resulting from any of the
( 4) This insurance is excess over the amount
following causes of loss if they are Covered due (whether you can collect on it or not)
Causes of Loss:
from any other insurance covering such
(1) Fire; property.
Each of these Extensions is additional insurance un-

(2) Lightning;
less otherwise indicated. The Additional Condition,
(3) Explosion; Coinsurance, does not apply to these Extensions.
Riot Civil Commotion; B. Exclusions And Limitations

(4) or or
Aircraft. See applicable Causes of Loss Form as shown in the

(5)
Declarations.

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C. Limits Of Insurance $ 60, 100

—
250
will pay for loss or damage in any one $ 59, 850 Loss Payable Bldg. 1
The most we
—
occurrence is the applicable Limit of Insurance shown

The Deductible applies once per occurrence and
in the Declarations.
therefore is not subtracted in determining the amount
The most we will pay for loss or damage to outdoor
of loss payable for Bldg. 2. Loss payable for Bldg. 2 is
attached to buildings is $1, 000 per sign in any the Limit of Insurance of $80, 000.
signs
one occurrence.
Total amount of loss payable: $59, 850 + 80, 000 =
The limits applicable to the Fire Department Service $139,850.

Charge and Pollutant Clean Up and Removal Addi- No. 2:
tional Coverages are in addition to the Limits of Example
Insurance.
(This example, too, assumes there is no coinsurance
Payments under the Preservation of Property Addi- penalty.)

tional Coverage will not increase the applicable Limit
The Deductible and Limits of Insurance are the same as
of Insurance.
those in Example No. 1.
D. Deductible
Loss to Bldg. 1: $ 70, 000
In any one occurrence of loss or damage (hereinafter (exceeds Limit of Insurance plus Deductible)
referred to loss), we will first reduce the amount of
as
Loss to Bldg. 2: $ 90, 000
loss if required by the Coinsurance Condition or the
(exceeds Limit of Insurance plus Deductible)
Agreed Value Optional Coverage. If the adjusted
amount of loss is less than or equal to the Deductible, Loss 1: $ 60, 000
we will not pay for that loss. If the adjusted amount of
Payable Bldg. —
loss exceeds the Deductible, we will then subtract the

(Limit of Insurance)
Deductible from the adjusted amount of loss, and will Loss 2: $ 80, 000
Payable Bldg. —
pay the resulting amount or the Limit of Insurance, (Limit of Insurance)

whichever is less.
Total amount of loss payable: $140, 000
When the occurrence involves loss to more than one
item of Covered Property and separate Limits of Insur- E. Loss Conditions
ance apply, the losses will not be combined in deter-
mining application of the Deductible. But the Deducti- The following conditions apply in addition to the Com-
ble will be applied only once per occurrence. mon Policy Conditions and the Commercial Property
Conditions.
Example No. 1:
1• Abandonment
(This example assumes there is no coinsurance penalty.)
There can be no abandonment of any property to
Deductible: $ 250 US.
Limit of Insurance —
Bldg. 1: $ 60, 000 2. Appraisal
Bldg. 2: $ 80, 000 If weand you disagree on the value of the prop-
erty the amount of loss, either may make writ-
or
Loss to Bldg. 1: $ 60, 100 ten demand for an appraisal of the loss. In this
event, each party will select a competent and im-
Loss to Bldg. 2: $ 90, 000 partial appraiser. The two appraisers will select an
umpire. If they cannot agree, either may request
The amount of loss to Bldg. 1 ($60, 100) Is less than that selection be made by a judge of a court
the sum ($60, 250) of the Limit of Insurance applicable having jurisdiction. The appraisers will state sep-
to Bldg. 1 plus the Deductible. arately the value of the property and amount of
loss. If they fail to agree, they will submit their
The Deductible will be subtracted from the amount of differences to the umpire. A decision agreed to by
calculating the loss payable for Bldg. 1:
loss in any two will be binding. Each party will:
CP 00 10 04 02 O ISO Properties, Inc., 2001 Page 9 of 15

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a. Pay its chosen appraiser; and (8) Cooperate with us in the investigation or
settlement of the claim.
b. Bear the other expenses of the appraisal and
umpire equally. b. We may examine any insured under oath,
while not in the presence of any other insured
If there is an appraisal, we will still retain our and at such times as may be reasonably re-
right to deny the claim. quired, about any matter relating to this in-
surance or the claim, including an insured's
3. Duties In The Event Of Loss Or Damage books and records. In the event of an exam-
ination, an insured's answers must be signed.
a. You must see that the following aredone in
the event of loss or damage to Covered 4. Loss Payment
Property:
a. In the event of loss or damage covered by this
(1) Notify the police if a law may have been
Coverage Form, at our option, we will either:
broken.
(1) Pay the value of lost or damaged prop-

(2) Give us prompt notice of the loss or dam- erty;
age. Include a description of the property
involved.
(2) Pay the cost ofrepairing or replacing the
As soon as possible, give us a description
lost or damaged property, subject to b.
(3) below;
of how, when and where the loss or dam-
age occurred.
(3) Take all or any part of the property at an
(4) Take all reasonable steps to protect the agreed or appraised value; or
Covered Property from further damage,
and keep a record of your expenses nec- (4) Repair, rebuild or replace the property
with other property of like kind and quai-
essary to protect the Covered Property,
for consideration in the settlement of the ity, subject to b. below.
claim. This will not increase the Limit of
Insurance. However, we will not pay for We will determine the value of lost or
any subsequent loss or damage resulting damaged property, or the cost of its repair
from a cause of loss that is not a Covered or replacement, in accordance with the
Cause of Loss. Also, if feasible, set the applicable terms of the Valuation Con-
damaged property aside and in the best dition in this Coverage Form or any appli-
possible order for examination, cable provision which amends or super-
sedes the Valuation Condition.
(5) At our request, give us complete inven-
tories of the damaged and undamaged b. The cost torepair, rebuild or replace does not
property. Include quantities, costs, values include the increased cost attributable to
and amount of loss claimed, enforcement of any ordinance or law regulat-
ing the construction, use or repair of any
(6) As often as may be reasonably required, property.
permit us to inspect the property proving
the loss or damage and examine your c. We will give notice of our intentions within 30
books and records.
days after we receive the sworn proof of loss.
Also permit us to take samples of dam- d. We will not pay you more than your financial
aged and undamaged property for in- interest in the Covered Property.
spection, testing and analysis, and permit
us to make copies from your books and
records.
e. We may adjust losses with the owners of lost
or damaged property if other than you. If we
pay the owners, such payments will satisfy
(7) Send us a signed, sworn proof of loss your claims against us for the owners'
containing the information we request to
investigate the claim. You must do this property. We will not pay the owners more
than their financial interest in the Covered
within 60 days after our request. We will
supply you with the necessary forms. Property.

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We may elect to defend you against suits (2) Buildings under construction or renovation
arising from claims of owners of property. We are not considered vacant.
will do this at our expense.
b. Vacancy Provisions
g. We will pay for covered loss or damage within
30 days after we receive the sworn proof of If the building where loss or damage occurs
loss, if you have complied with all of the terms has been vacant for more than 60 consecu-
of this Coverage Part and: tive days before that loss or damage occurs:
(1) We have reached agreement with you on

the amount of loss; or caused by any of the following even if they
are Covered Causes of Loss:
(2) An appraisal award has been made.
(a) Vandalism;
5. Recovered Property
(b) Sprinkler leakage, unless you have
If either you any property after loss
or we recover
protected the system against freezing;
settlement, that party must give the other prompt
notice. At your option, the property will be re-
(c) Building glass breakage;
turned to you. You must then return to us the
amount we paid to you for the property. We will
(d) Water damage;
pay recovery expenses and the expenses to re-
pair the recovered property, subject to the Limit of (e) Theft; or
Insurance.
6.
(f) Attempted theft.
Vacancy
(2) With respect to Covered Causes of Loss
a. Description Of Terms other than those listed in b.(1)(a) through
As used in this Vacancy Condition, the b.(1)(f) above, we will reduce the amount
(1) we would otherwise pay for the loss or
term building and the term vacant have
the meanings set forth in (1)(a) and (1)(b) damage by 15%.
below:
7. Valuation
(a) When this policy is issued to a tenant,

We will determine the value of Covered Property
and with respect to that tenant's
in the event of loss or damage as follows:
interest in Covered Property, building
means the unit or suite rented or
a. At actual cash value as of the time of loss or
leased to the tenant. Such building is
vacant when it does not contain damage, except as provided in b., c., d. and
e. below.
enough business personal property to
conduct customary operations.
b. If the Limit of Insurance for Building satisfies
When this the Additional Condition, Coinsurance, and
(b) policy is issued to the
the cost to repair or replace the damaged
owner or general lessee of a building,
building means the entire building. building property is $2, 500 or less, we will pay
Such building is vacant unless at least the cost of building repairs or replacement.
31% of its total square footage is:
The cost of building repairs or replacement
Rented to a lessee or sub-lessee does not include the increased cost attributa-
(I)
and used by the lessee or sub- ble to enforcement of any ordinance or law
lessee to conduct its customary regulating the construction, use or repair of
operations; and/or any property. However, the following property
will be valued at the actual cash value even
(ii) Used by the building owner to when attached to the building:
(1) Awnings or floor coverings;

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(2) Appliances for refrigerating, ventilating, (1) Multiply the value of Covered Property
cooking, dishwashing or laundering; or at the time of loss by the Coinsurance
percentage;
(3) Outdoor equipment or furniture.
(2) Divide the Limit of Insurance of the prop-
c. "Stock" you have sold but not delivered at the erty by the figure determined in Step (1);
selling price less discounts and expenses you
otherwise would have had.
(3) Multiply the total amount of loss, before
the application of any deductible, by the
d. Glass at the cost of replacement with safety
figure determined in Step (2); and
glazing material if required by law.
(4) Subtract the deductible from the figure
e. Tenant's Improvements and Betterments at: determined in Step (3).
(1) Actual cash value of the lost or damaged We will pay the amount determined in Step (4)
property if you make repairs promptly. or the limit of insurance, whichever is less. For
the remainder, you will either have to rely on
(2) A proportion of your original cost if you do other insurance or absorb the loss yourself.
not make repairs promptly. We will deter-
mine the proportionate value as follows:
Example No. 1 (Underinsurance):
(a) Multiply the original cost by the num- When: The value of the property is $ 250, 000
ber of days from the loss or damage
to the expiration of the lease; and
The Coinsurance percentage
for it is 80%
(b) Divide the amount determined in (a)
above by the number of days from the
The Limit of Insurance
Installation of improvements to the
for it is $ 100, 000
expiration of the lease.
The Deductible is $ 250
if your lease contains a renewal option,
the expiration of the renewal option period
The amount of loss is $ 40, 000
will replace the expiration of the lease in
this procedure.
Step (1): $250, 000 x 80% $200, 000=
(3) Nothing if others pay for repairs or (the minimum amount of insurance to
meet your Coinsurance requirements)
replacement.
F. Additional Conditions Step (2): $100, 000: $200, 000 =
.50
The following conditions apply in addition to the Corn- Step (3): $40, 000 x .50 =
$20, 000
mon Policy Conditions and the Commercial Property
Conditions. Step (4): $20, 000 —
$250 =
$19, 750
1. Coinsurance We will pay no more than $19, 750. The remaining $20, 250
is not covered.
'
If a Coinsurance percentage is shown in the Dec-
larations, the following condition applies. Example No. 2 (Adequate Insurance):
a. We will not pay the full amount of any loss if When: The value of the property is $250, 000
the value of Covered Property at the time of
loss times the Coinsurance percentage shown The Coinsurance percentage
for it in the Declarations is greater than the for it is 80%
Limit of Insurance for the property.
Instead, we will determine the most we will for it is $200, 000
pay using the following steps:

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The Deductible is $ 260 2. Mortgageholders
The amount of loss is $ 40, 000 a. The term mortgageholder includes trustee.
The minimum amount of insurance to meet b. We will pay for covered loss of or damage to
your Coinsurance requirement is $200, 000 buildings or structures to each mortgage-
($250, 000 x 80%). Therefore, the Limit of holder shown in the Declarations in their order
Insurance in this Example is adequate and no of precedence, as interests may appear.
penalty applies. We will pay no more than
$39, 750 ($40, 000 amount of loss minus the c. The mortgageholder has the right to receive
deductible of $250). loss payment even if the mortgageholder has
started foreclosure or similar action on the
b. If oneLimit of Insurance applies to two or building or structure.
more separate items, this condition will apply
to the total of all property to which the limit d. If we deny your claim because of your acts or
applies, because you have failed to comply with the
terms of this Coverage Part, the mortgage-
Example No. 3: holder will still have the right to receive loss
payment if the mortgageholder:
When: The value of property is:
(1) Pays any premium due under this Cover-
Bldg. at Location No. 1 $ 75, 000 age Part at our request if you have failed
to do so;
Bldg. at Location No. 2 $100, 000
(2) Submits a signed, sworn proof of loss
Personal Property at within 60 days after receiving notice from
Location No. 2 $ 75, 000 us of your failure to do so; and
$250, 000
(3) Has notified of any change in owner-
us
The Coinsurance percentage ship, occupancy or substantial change in
for it is 90% risk known to the mortgageholder.
The Limit of Insurance for Buildings All of the terms of this Coverage Part will then
and Personal Property at
apply directly to the mortgageholder.
Location Nos. 1 and 2 is $180, 000
e. If we pay the mortgageholder for any loss or
The Deductible is $ 1, 000
damage and deny payment to you because of
your acts or because you have failed to corn-
The amount of loss is:
at Location No. 2 $ 30, 000 ply with the terms of this Coverage Part:
Bldg.
(1) The mortgageholder's rights under the
Personal Property at will be transferred to us to the
Location No. 2 $ 20, 000 mortgage
extent of the amount we pay; and
$ 60, 000
(2) The mortgageholder's right to recover the
Step (1): $250, 000 x 90% =
$225, 000 full amount of the mortgageholder's claim
(the minimum amount of insurance to
will not be impaired.
meet your Coinsurance requirements and
to avoid the penalty shown below)
At our option, we may pay to the mortgage-
.80 holder the whole principal on the mortgage
Step (2): $180, 000 4- $225, 000 =
plus any accrued interest. In this event, your

$50, 000 x .80 $40, 000 mortgage and note will be transferred to us
Step (3):
=
and you will pay your remaining mortgage

debt to us.
Step (4): $40, 000 —
$1, 000 =
$39, 000
f. If wecancel this policy, we will give written
We will pay no more than $39, 000. The remaining $11, 000
is not covered,
notice to the mortgageholder at least:
CP 00 10 04 02 ISO Properties, Inc., 2001 Page 13 of 15

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(1) 10 days before the effective date of can- the policy anniversary date, or any other
cellation if we cancel for your nonpayment policy change amending the Limit of In-
of premium; or surance, times
(2) 30 days before the effective date of can- (2) The percentage of annual increase shown
cellation if we cancel for any other reason. in the Declarations, expressed as a deci-
mal (example: 8% is .08), times
g. If we elect not to renew this policy, we will give
written notice to the mortgageholder at least (3) The number of days since the beginning
10 days before the expiration date of this of the current policy year or the effective
policy, date of the most recent policy change
amending the Limit of Insurance, divided
G. Optional Coverages by 365.
If shown as applicable in the Declarations, the fol-
Example:
lowing Optional Coverages apply separately to each
item. If: The applicable Limit of
Insurance is $100, 000
1. Agreed Value
The annual percentage
a. The Additional Condition, Coinsurance, does increase is 8%
not apply to Covered Property to which this
Optional Coverage applies. We will pay no The number of days
more for loss of or damage to that property since the beginning of
than the proportion that the Limit of Insurance the policy year (or last
under this Coverage Part for the property
policy change) is 146
bears to the Agreed Value shown for it in the
Declarations. The amount of increase
is $100, 000 x .08 x 146
b. If the expiration date for this Optional Cover-
÷. 365 = $ 3, 200
age shown in the Declarations is not extend-
ed, the Additional Condition, Coinsurance, is 3.
reinstated and this Optional Coverage Replacement Cost
expires. a. Replacement Cost (without deduction for de-
c. The terms of this Optional Coverage apply preciation) replaces Actual Cash Value in the
Loss Condition, Valuation, of this Coverage
only to loss or damage that occurs: Form.
(1) On or after the effective date of this Op- b. This Optional Coverage does not apply to:
tionai Coverage; and
(1) Personal property of others;

(2) Before the Agreed Value expiration date
shown in the Declarations or the policy
(2) Contents of a residence;
expiration date, whichever occurs first.
2. Inflation Guard (3) Works of art, antiques or rare articles, in-
cluding etchings, pictures, statuary, mar-
e. The Limit of Insurance for property to which bles, bronzes, porcelains and bric-a-brac;
or
this Optional Coverage applied will automati-
cally increase by the annual percentage "
shown in the Declarations. (4) "Stock, unless the Including "Stock"

option is shown in the Declarations.
b. The amount of increase will be:
Under the terms of this Replacement Cost
The Limit of Insurance that applied on the Optional Coverage, tenants' improvements
(1)
most recent of the policy inception date, and betterments are not considered to be the
personal property of others.

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c. You may make a claim for loss or damage cost which would have been incurred if the
covered by this insurance on an actual cash building had been rebuilt at the original
value basis instead of on a replacement cost premises.
basis. In the event you elect to have loss or
damage settled on an actual cash value basis, f. The cost of repair or replacement does not
you may still make a claim for the additional include the increased cost attributable to en-
coverage this Optional Coverage provides if forcement of any ordinance or law regulating
you notify us of your intent to do so within 180 the construction, use or repair of any property.
days after the loss or damage.
4. Extension Of Replacement Cost To Personal
d. We will not pay on a replacement cost basis
for any loss or damage:
Property Of Others
a. If the Replacement Cost Optional Coverage is

(1) Until the lost or damaged property is shown as applicable in the Declarations, then
actually repaired or replaced; and this Extension may also be shown as ap-
plicable. If the Declarations show this Ex-
(2) Unless the repairs or replacement are tension as applicable, then Paragraph 3.b.(1)
made as soon as reasonably possible of the Replacement Cost Optional Coverage
after the loss or damage.
is deleted and all other provisions of the
With respect to tenants' improvements and Replacement Cost Optional Coverage apply
to replacement cost on personal property of
betterments, the following also apply:
others.
(3) If the conditions in d.(1) and d.(2) above
are not met, the value of tenants' im- b. With respect to replacement cost on the per-
sonal property of others, the following lirn-
provements and betterments will be de-
termined as a proportion of your original Ration applies:
cost, as set forth in the Valuation Con-
dition of this Coverage Form; and If item(s) of personal property of others is
an
subject to a written contract which governs

(4) We will not pay for loss or damage to your liability for loss or damage to that item(s),
tenants' improvements and betterments if then valuation of that item(s) will be based on
others pay for repairs or replacement. the amount for which you are liable under
such contract, but not to exceed the lesser of
e. We will not pay more for loss or damage on a the replacement cost of the property or the
replacement cost basis than the least of (1), applicable Limit of Insurance.
(2) or (3), subject to f. below:
H. Definitions
(1) The Limit of Insurance applicable to the
lost or damaged property; 1. "Fungus" means any type or form of fungus,
including mold or mildew, and any mycotoxins,
(2) The cost to replace the lost or damaged spores, scents or by-products produced or re-
property with other property: leased by fungi.
(a) Of comparable material and quality; 2. "Pollutants" means any solid, liquid, gaseous or
and
thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalis, chemicals and
(b) Used for the same purpose; or
waste. Waste includes materials to be recycled,
reconditioned or reclaimed.
(3) The amount actually spent that is nec-
essary to repair or replace the lost or
3. "Stock" means merchandise held in storage or for
damaged property.
sale, raw materials and in-process or finished
If is rebuilt at a new premises, the goods, including supplies used in their packing or
a building
cost described in e.(2) above is limited to the shipping.

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Policy Number: MCP0140064
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 (a) Additions under construction, altera-

tions and repairs to the building or
We will pay for direct physical loss of or damage to structure;
Covered Property at the premises described in the
Declarations caused by or resulting from any Covered (b) Materials, equipment, supplies, and
Cause of Loss. temporary structures, on or within 100
feet of the described premises, used
1, Covered Property for making additions, alterations or re-
Covered Property, as used in this Coverage Part, pairs to the building or structure; and
means the type of property described in this Sec-
(6) Any of the following types of property
tion, A.1., and limited in A.2., Property Not Cov-
contained within a unit, regardless of
ered, if a Limit of Insurance is shown in the Dec-
larations for that type of property. ownership, if your Condominium Associa-
tion Agreement requires you to insure it:
a. Building, meaning the building or structure
described in the Declarations, including: (a) Fixtures, improvements and altera-
tions that are a part of the building or
(1) Completed additions; structure; and
(2) Fixtures, outside of indMdual units, in-

(b) Appliances, such as those used for
eluding outdoor fixtures; refrigerating, ventilating, cooking,
dishwashing, laundering, security or
(3) Permanently installed: housekeeping.
(a) Machinery and But Buildingdoes not include personal prop-
erty owned by, used by or in the care, cus-
(b) Equipment;
tody or control of a unit-owner except for per-
sonal property listed in Paragraph A.1.a.(6)
(4) Personal property owned by you that is above.
used to maintain or service the building or
structure or its premises, including:
b. Your Business Personal Property located in
Fire extinguishing equipment; or on the building described in the Declara-
(a)
tions or in the open (or in a vehicle) within 100
(b) Outdoor furniture; feet of the described premises, consisting of
the following:
(c) Floor coverings; and
(1) Personal property owned by you or
(d) Appliances used for refrigerating, owned indivisibly by all unit-owners;
ventilating, cooking, dishwashing or
laundering that are not contained Your interest in the labor, materials or
within individual units; (2)
services furnished or arranged by you on
(5) If not covered by other insurance: personal property of others;

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(3) Leased personal property for which you j. Bulkheads, pilings, piers, wharves or docks;
have a contractual responsibility to in-
sure, unless otherwise provided for under k. Property that Is covered under this or any
Personal Property of Others. other policy in which it is more specifically de-
scribed, except for the excess of the amount
But Your Business Personal Property does due (whether you can collect on it or not) from
not include personal property owned only by a that other insurance;
unitowner.
I. Retaining walls that are not part of a building;
c. Personal Property Of Others that is:
m. Underground pipes, flues or drains;
(1) In your care, custody or control; and
n. Electronic data, except as provided under Ad-
(2) Located in or on the building described in ditional Coverages Electronic Data. Elec-
—
the Declarations or in the open (or in a tronic data means information, facts or corn-
vehicle) within 100 feet of the described puter programs stored as or on, created or
premises. used on, or transmitted to orfrom computer
However, payment for loss of or damage
our software), on hard or floppy disks, CD-ROMs,
to personal property of others will only be for tapes, drives, cells, data processing devices
the account of the owner of the property. or any other repositories of computer soft-
ware which are used with electronically con-
2. Property Not Covered trolled equipment. The term computer pro-
grams, referred to in the foregoing description
Covered Property does not include: of electronic data, means a set of related
electronic instructions which direct the opera-
a. Accounts, bills, currency, food stamps or other tions and functions of a computer or device
evidences of debt, money, notes or securities, connected to it, which enable the computer or
Lottery tickets held for sale are not securities; device to receive, process, store, retrieve or
send data.
b. Animals, unless owned by others and boarded
by you; o. The cost to replace or restore the information
on valuable papers and records, including
c. Automobiles held for sale; those which exist as electronic data. Valuable
papers and records include but are not limited
d. Bridges, roadways, walks, patios or other to proprietary information, books of account,
paved surfaces; deeds, manuscripts, abstracts, drawings and
card index systems. Refer to the Coverage
e. Contraband, or property in the course of il- Extension for Valuable Papers And Records
legal transportation or trade; (Other Than Electronic Data) for limited cov-
erage for valuable papers and records other
f. The cost of excavations, grading, back filling than those which exist as electronic data.
or filling;
p. Vehicles or self-propelled machines (including
g. Foundations of buildings, structures, ma- aircraft or watercraft) that:
chinery or boilers if their foundations are
below: (1) Are licensed for use on public roads; or
(1) The lowest basement floor; or (2) Are operated principally away from the
described premises.
(2) The surface of the ground if there is no
basement. This paragraph does not apply to:
h. Land (including land on which the property Is (a) Vehicles or self-propelled machines
located), water, growing crops or lawns; or autos you manufacture or
warehouse;
I. Personal property while airborne or
waterborne; (b) Vehicles or self-propelled machines,
other than autos, you hold for sale;

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out of water at (b) Subject to (a) above, the amount we

(c) Rowboats or canoes
will pay for debris removal expense is
the described premises; or
limited to 25% of the sum of the de-
but only to the extent provid- ductible plus the amount that we pay
(d) Trailers, for direct physical loss or damage to
ed for in the Coverage Extension for
the Covered Property that has sus-
Non-Owned Detached Trailers.
q. The following property while outside of We will pay up to an additional $10, 000
buildings: (4)
for debris removal expense, for each lo-
in any one occurrence of physical
(cation,
1) Grain, hay, straw other crops;
or or
loss or damage to Covered Property, if
one or both of the following circum-
(2) Fences, radio or television antennas (in- stances apply:
cluding satellite dishes) and their lead-in
wiring, masts or towers, signs (other than (a) The total of the actual debris removal
signs attached to buildings), trees, shrubs, expense plus the amount we pay for
or plants (other than "stock" of trees, direct physical loss or damage ex-
shrubs or plants), all except as provided in ceeds the Limit of Insurance on the
the Coverage Extensions. Covered Property that has sustained
loss or damage.
3. Covered Causes Of Loss
(b) The actual debris removal expense
See applicableCauses of Loss Form as shown in exceeds 25% of the sum of the de-
the Declarations. ductible plus the amount that we pay
for direct physical loss or damage to
4. Additional Coverages the Covered Property that has sus-
a. Debris Removal
Therefore, if (4)(a) and/or (4)(b) apply, our
(1) Subject to Paragraphs (3) and (4), will

we payment for direct physical loss or
total
pay your expense to remove debris of damage and debris removal expense may
Covered Property caused by or resulting reach but willnever exceed the Limit of
from a Covered Cause of Loss that oc- insurance on the Covered Property that
curs during the policy period. The ex- has sustained loss or damage, plus
penses will be paid only if they are re- $10, 000.
ported to us in writing within 180 days of
the date of direct physical loss or damage. (5) Examples
(2) Debris Removal does not apply to costs The following examples assume that
there is no coinsurance penalty.
to:
from land Example #1

(a) Extract "pollutants" or wa-
ter; or
Limit of Insurance $ 90, 000
(b) Remove, restore or replace polluted Amount of Deductible $ 500
land or water.
Amount of Loss $ 50, 000
(3) Subject to the exceptions in Paragraph
(4), the following provisions apply: Amount of Loss Payable $ 49, 500
($50, 000 $500)
-
(a) The most we will pay for the total of

direct physical loss or damage plus Debris Removal Expense $ 10, 000
debris removal expense is the Limit of
Insurance applicable to the Covered Debris Removal Expense
Property that has sustained loss or Payable $ 10, 000
damage.
($10, 000 is 20% of $50, 000)

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The debris removal expense is less than b. Preservation Of Property

25% of the sum of the loss payable plus
the deductible. The sum of the loss If it is necessary for you to move Covered
payable and the debris removal expense Property from the described premises to pre-
($49, 500 + $10, 000 = $59,500) is less serve it from loss or damage by a Covered
than the Limit of Insurance. Therefore, the Cause of Loss, we will pay for any direct
full amount of debris removal expense is physical loss or damage to that property:
payable in accordance with the terms of
Paragraph (3). (1) While it is being moved or while tem-
porarily stored at another location; and
Example #2
(2) Only if the loss or damage occurs within
Limit of Insurance $ 90, 000 30 days after the property Is first moved.
Amount of Deductible $ 500 Fire

c. Department Service Charge
Amount of Loss $ 80, 000 When the fire department is called to save or
protect Covered Property from a Covered
Amount of Loss Payable $ 79, 500 Cause of Loss, we will pay up to $1, 000 for
($80, 000 —
$500) your liability for fire department service
Debris Removal $ 30, 000
charges:
Expense
Debris Removal (1) Assumed by contract or agreement prior
Expense to loss; or
Payable
Basic Amount $ 10, 500 (2) Required by local ordinance.
Additional Amount $ 10, 000
No Deductible applies to this Additional
The basic amount payable for debris re- Coverage.
moval expense under the terms of Para-
d. Pollutant Clean Up And Removal
graph (3) is calculated as follows: $80, 000
($79, 500 + $500) x .25 = $20, 000; capped We will pay your expense to extract "pol-
at $10, 500. The cap applies because the
sum of the loss payable ($79,500) and the lutants" from land or water at the described
basic amount payable for debris removal premises if the discharge, dispersal, seepage,
expense ($10, 500) cannot exceed the migration, release or escape of the "pot-
Limit of Insurance ($90, 000). lutants" is caused by or results from a Cov-
ered Cause of Loss that occurs during the
The additional amount payable for debris policy period. The expenses will be paid only
removal expense is provided in accor- if they are reported to us in writing within 180
dance with the terms of Paragraph (4), days of the date on which the Covered Cause
because the debris removal expense of Loss occurs.
($30, 000) exceeds 25% of the loss
payable plus the deductible ($30, 000 is This Additional Coverage does not apply to
37.5% of $80, 000), and because the sum costs to test for, monitor or assess the axis-
of the loss payable and debris removal tence, concentration or effects of "pollutants."
expense ($79, 500 + $30, 000 = $109, 500) But we will pay for testing which is performed
would exceed the Limit of Insurance in the course of extracting the "pollutants"
($90, 000). The additional amount of coy- from the land or water.
ered debris removal expense is $10, 000,
the maximum payable under Paragraph The most we will pay under this Additional
(4). Thus the total payable for debris re- Coverage for each described premises is
moval expense in this example is $10, 000 for the sum of all covered expenses
$20, 500; $9, 500 of the debris removal ex- arising out of Covered Causes of Loss occur-
pense is not covered, ring during each separate 12 month period of
this policy.

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e. Increased Cost Of Construction (6) The most we will pay under this Addi-
tional Coverage, for each described build-
(1) This Additional Coverage applies only to ing insured under this Coverage Form, Is
buildings to which the Replacement Cost $10, 000 or 5% of the Limit of Insurance
Optional Coverage applies, applicable to that building, whichever is
less. If a damaged building is covered un-
der a blanket Limit of Insurance which ap-
(2) In the event of damage by a Covered
Cause of Loss to a building that is Cov- plies to more than one building or item of
ered Property, we will pay the increased property, then the most we will pay under
this Additional Coverage, for that dam-
costs incurred to comply with enforce-
an ordinance or law in the course
aged building, is the lesser of: $10, 000 or
ment of 5% times the value of the damaged build-
of repair, rebuilding or replacement of
ng as of the time of loss times the appl
ii-
damaged parts of that property, subject to cable coinsurance percentage.
the limitations stated in e.(3) through e.(9)
of this Additional Coverage. The amount payable under this Additional
Coverage is additional insurance.
(3) The ordinance or law referred to In e.(2)
of this Additional Coverage is an ordi- (7) With respect to this Additional Coverage:
nance or law that regulates the construc-
tion or repair of buildings or establishes (a) We will not pay for the increased Cost
zoning or land use requirements at the of Construction:
described premises, and is in force at the
time of loss. (I) Until the property is actually re-
paired orreplaced, at the same or
Under this Additional Coverage, we will another premises; and
(4)
not pay any costs due toan ordinance or
law that: (ii) Unless the repairs or replace-
ment are made as soon as rea-
(a) You were required comply with

to sonably possible after the loss or
before the loss, even when the build- damage, not to exceed two years.
We may extend this period in
ing was undamaged; and
writing during the two years.
(b) You failed to comply with. If the building is repaired or replaced
(b)
at the same premises, or if you elect
(5) Under this Additional Coverage, we will
to rebuild at another premises, the
not pay for: most we will pay for the Increased
Cost of Construction, subject to the
(a) The enforcement of any ordinance or
provisions of e.(6) of this Additional
law which requires demolition, repair, Coverage, is the increased cost of
replacement, reconstruction, remod- construction at the same premises.
eling or remediation of property due to
contamination by "pollutants" or due (c) If the ordinance or law requires relo-
to the presence, growth, prolifer- cation to another premises, the most
ation, spread or any activity of "fun- we will pay for the Increased Cost of
Construction, subject to the provi-
"
gus, wet or dry rot or bacteria; or

sions of e.(6) of this Additional Cover-
(b) Any costs associated with the en- age, is the increased cost of con-
forcement of an ordinance or law struction at the new premises.
which requires any insured or others
to test for, monitor, clean up, remove, (8) This additional Coverage is not subject to
contain, treat, detoxify or neutralize, the terms of the Ordinance or Law Ex-
or in any way respond to, or assess clusion, to the extent that such Exclusion
" " would conflict with the provisions of this
the effects of "pollutants, "fungus,
Additional Coverage.
wet or dry rot or bacteria.
Page 5 of 15
CP 00 17 04 02 © ISO Properties, Inc., 2001
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55 of 109
(9) The costs addressed in the Loss Pay- on a computer system (including
ment and Valuation Conditions, and the electronic data) or a network to which
Replacement Cost Optional Coverage, in
this Coverage Form, do not include the or destroy any part of the system or
increased cost attributable to enforce- disrupt its normal operation. But there
ment of an ordinance or law. The amount is no coverage for loss or damage
payable under this Additional Coverage, caused by or resulting from manipula-
as stated in e.(6) of this Additional Coy- tibn of a computer system (including
erage, is not subject to such limitation, electronic data) by any employee, in-
cluding a temporary or leased em-
f. Electronic Data ployee, or by an entity retained by you
or for you to inspect, design, install,
(1) Under this Additional Coverage, elec- modify, maintain, repair or replace
tronic data has the meaning described that system.
under Property Not Covered Electronic —
Data. (4) The most we will pay under this Additional

Coverage Electronic Data Is $2, 500 for
—
(2) Subject to the provisions of this Additional all loss or damage sustained in any one
we will pay for the cost to re-
Coverage, policy year, regardless of the number of
place or restore electronic data which has occurrences of loss or damage or the
been destroyed or corrupted by a Cov- number of premises, locations or corn-
ered Cause of Loss. To the extent that puter systems involved. if loss payment
electronic data is not replaced or re- on the first occurrence does not exhaust
stored, the loss will be valued at the cost this amount, then the balance is available
of replacement of the media on which the for subsequent loss or damage sustained
electronic data was stored, with blank in but not after that policy year. With
media of substantially identical type.
respect to an occurrence which begins in
one policy year and continues or results in
(3) The Covered Causes of Loss applicable additional loss or damage in a sub-
to Your Business Personal Property apply
Electronic
sequent policy year(s), all loss or damage
to this Additional Coverage —
is deemed to be sustained in the policy

Data, subject to the following: year in which the occurrence began.

—
5. Coverage Extensions
applies, coverage under this
Addi-tional
Coverage Electronic Data is
—
Except as otherwise provided, the following Ex -
limited to the "specified causes of

loss" as defined in that form, and Col-
tensions apply to property located in or on the
building described in the Declarations or in the
lapse as set forth in that form. open (or in a vehicle) within 100 feet of the de-
scribed premises.
(b) If the Causes Of Loss Broad Form
—
applies, coverage under this Addi- If a Coinsurance percentage of 80% or more is

tional Coverage Electronic Data in-
—
shown in the Declarations, you may extend the in-

cludes Collapse as set forth in that
surance provided by this Coverage Part as
form.
follows:
(c) If the Causes Of Loss Form is en-

a. Newly Acquired Or Constructed Property
dorsed to add a Covered Cause of
Loss, the additional Covered Cause
of Loss does not apply to the cover- (1) Buildings
age provided under this Additional
You may extend the insurance that ap-
Coverage Electronic Data.
—
plies to Building to apply to:

(d) The Covered Causes of Loss include
a virus, harmful code or similar in- (a) Your new buildings while being built
on the described premises; and

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at locations, (a) This policy expires;

(b) Buildings you acquire
other than the described premises,
intended for: (b) 30 days expire after you acquire the
property or begin construction of that
Similar use as the building de- part of the building that would qualify
(i) as covered property; or
scribed in the Declarations; or
Use as a warehouse. (c) You report values to us.

(ii)
We will charge you additional premium for
The most we will pay for loss or damage values reported from the date you acquire
under this Extension is $250, 000 at each the property or begin construction of that
building, 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 to
that insurance to apply to: Your Business Personal Property to apply to:
(I) Business personal property, in- (1) Personal effects owned by you, your offi-
eluding such property that you cers, your partners or members, your
newly acquire, at any location you managers or your employees. This
exten-
acquire other than at fairs, trade sion does not apply to loss or damage by
shows or exhibitions; theft.
(li) Business personal property, in- (2) Personal property of others in your care,
eluding such property that you custody or control.
newly acquire, located at your
newly constructed or acquired The most we will pay for loss or damage
buildings at the location de- under this Extension is $2, 500 at each de-
scribed in the Declarations; or scribed premises. Our payment for loss of or
damage to personal property of others will
(III) Business personal property that only be for the account of the owner of the
you newly acquire, located at the property.
described premises.
c. Valuable Papers And Records (Other Than
The most we will pay for loss or damage Electronic Data)
under this Extension is $100, 000 at each
building. (1) You may extend the insurance that ap-
plies to Your Business Personal Property
does not apply to: to apply to the cost to replace or restore
(b) This Extension the lost information on valuable papers
Personal property of others that is and records for which duplicates do not
(I) exist. But this Extension does not apply to
temporarily in your possession in valuable papers and records which exist
the course of Installing or per-
as electronic data. Electronic data has the
forming work on such property; or
meaning described under Property Not
Covered Electronic Data.
(ii) Personal property of others that is
—
temporarily in your possession in If the Causes Of Loss Special Form ap-

the course of your manufacturing (2) —
or wholesaling activities,
plies, coverage under this Extension is
limited to the "specified causes of loss" as
defined in that form, and Collapse as set
(3) Period Of Coverage
forth in that form.
With respect to insurance on or at each

(3) If the Causes Of Loss Broad Form ap-
—
newly acquired or constructed property, plies, coverage under this Extension in-
will end when any of the
coverage cludes Collapse as set forth in that form.
following first occurs:
© ISO Properties, Inc., 2001 Page 7 of 15

CP 00 17 04 02
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57 of 109
(4) Under this Extension, the most we will pay (1) Fire;
to replace or restore the lost information is
$2, 500 at each described premises, (2) Lightning;
unless a higher limit Is shown in the
Declarations. Such amount is additional (3) Explosion;
insurance. We will also pay for the cost of
blank material for reproducing the records (4) Riot or Civil Commotion; or
(whether or not duplicates exist), and
(when there is a duplicate) for the cost of (5) Aircraft.
labor to transcribe or copy the records.
The costs of blank material and labor are The most we will pay for loss or damage un-
subject to the applicable Limit of der this Extension is $1, 000, but not more
Insurance on Your Business Personal
than $250 for any one tree, shrub or plant.
Property and therefore coverage of such These limits apply to any one occurrence, re-
costs is not additional insurance.
gardless of the types or number of items lost
or damaged in that occurrence.
d. Property Off-Premises
f. Non-Owned Detached Trailers
(1) You may extend the insurance provided
by this Coverage Form to apply to your You may extend the insurance that ap-
Covered Property while it is away from the (1)
described premises, if it is: plies to Your Business Personal Property
to apply to loss or damage to trailers that
(a) Temporarily at a location you do not you do not own, provided that:
own, lease or operate;
(a) The trailer is used in your business;
(b) In storage at a location you lease,
provided the lease was executed af- (b) The trailer is in your care, custody or
ter the beginning of the current policy control at the premises described in
term; or the Declarations; and
(c) At any fair, trade show or exhibition. (c) You have a contractual responsibility
to pay for loss or damage to the
(2) This Extension does not apply to prop- trailer.
erty:
(a) In or on a vehicle; or that occurs:
(b) In the care,

custody or control of your (a) While the trailer is attached to any
salespersons, unless the property is motor vehicle or motorized convey-
In such care, custody or control at a
ance, whether or not the motor ye-
fair, trade show or exhibition. hide or motorized conveyance is in
motion;
(3) The most we will pay for loss or damage
under this Extension is $10, 000.
(b) During hitching or unhitching opera-
tions, or when a trailer becomes acci-
e. Outdoor Property
dentally unhitched from a motor ve-
hicle or motorized conveyance.
You may extend the insurance provided by
this Coverage Form to apply to your outdoor
(3) The most we will pay for loss or damage
fences, radio and television antennas (includ-
under this Extension is $5, 000, unless a
ing satellite dishes), signs (other than signs
attached to buildings), trees, shrubs and higher limit is shown in the Declarations.
plants, (other than "stock" of trees, shrubs or
(4) This insurance is excess over the amount
plants), including debris removal expense,
caused by or resulting from any of the follow- due (whether you can collect on It or not)
ing causes of loss if they are Covered Causes from any other insurance covering such
of Loss: property.

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The amount of loss to Bldg. 1 ($60, 100) is less than

Each of these Extensions is additional insurance un-
the sum ($60, 250) of the Limit of Insurance applicable
less otherwise indicated. The Additional Condition,
Coinsurance, does not apply to these Extensions. to Bldg. 1 plus the Deductible.
B. Exclusions And Limitations The Deductible will be subtracted from the amount of
loss in calculating the loss payable for Bldg. 1:
See applicable Causes of Loss Form as shown in the
Declarations. $ 60, 100
250
$ 59, 850 Loss Payable Bldg. 1
C. Limits Of insurance —
The most will pay for loss or damage in any one

we The Deductible applies once per occurrence and
occurrence is the applicable Limit of Insurance shown therefore is not subtracted in determining the amount
in the Declarations, of loss payable for Bldg. 2. Loss payable for Bldg. 2 is
the Limit of Insurance of $80, 000.
The most will pay for loss or damage to outdoor
we
signs attached to buildings is $1, 000 per sign in any Total amount of loss payable: $59, 850 + 80, 000 =
one occurrence. $139, 850
The limits applicable to the Fire Department Service Example No. 2:

Charge and Pollutant Clean Up and Removal Addi-
tional Coverages are in addition to the Limits of (This example, too, assumes there is no coinsurance
Insurance. penalty.)
Payments under the Preservation of Property Addi- The Deductible and Limits of Insurance are the same
tional Coverage will not increase the applicable Limit as those in Example No. 1.
of Insurance.
Loss to Bldg. 1: $70, 000
D. Deductible (exceeds Limit of Insurance plus Deductible)
Loss to Bldg. 2: $90, 000
In any one occurrence of toss or damage (hereinafter (exceeds Limit of Insurance plus Deductible)
referred to as loss), we will first reduce the amount of Loss Payable Bldg. 1: —
$60, 000
loss if required by the Coinsurance Condition or the (Limit of insurance)
Agreed Value Optional Coverage. If the adjusted Loss Payable Bldg. 2: —
$80, 000
amount of loss Is less than or equal to the Deductible, (Limit of Insurance)
we will not pay for that loss. If the adjusted amount
of
Total amount of loss payable: $140, 000
loss exceeds the Deductible, we will then subtract the
Deductible from the adjusted amount of loss, and will
E. Loss Conditions
pay the resulting amount or the Limit of Insurance,
whichever is less. Thefollowing conditions apply in addition to the Com-
mon Policy Conditions and the Commercial Property
When the occurrence involves loss to more than one Conditions.
item of Covered Property and separate Limits of In-
surance apply, the losses will not be combined
in de-
the De-
1. Abandonment
termining application of the Deductible. But
ductible will be applied only once per occurrence. There can be no abandonment of any property to
us.
Example No. 1:
there is no coinsurance 2. Appraisal

(This example assumes
penalty.) if and you disagree on the value of the prop-

we
Deductible: $ 250 erty or the amount of loss, either may make writ-
ten demand for an appraisal of the loss. In this
Bldg. 1: $ 60, 000

$ 80, 000 event, each party will select a competent and im-
Bldg. 2:
Loss to Bldg. 1: $ 60, 100 partial appraiser. The two appraisers will select an
Loss to Bldg. 2: $ 90, 000 umpire. If they cannot agree, either may request
©ISO Properties, Inc., 2001 Page 9 of 15

CP 00 17 04 02
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Case 0:09-cv-60723-AJ Document 1-2 Entered on FLSD Docket 05/15/2009 Page 1 of 50
that selection be made by a judge of a court (7) Send us a signed, sworn proof of loss
having jurisdiction. The appraisers will state sep- containing the information we request to
arately the value of the property and amount of investigate the claim. You must do this
loss. If they fail to agree, they will submit their within 60 days after our request. We will
differences to the umpire. A decision agreed to by supply you with the necessary forms.
any two will be binding. Each party will:
(8) Cooperate with us in the investigation or
a. Pay its chosen appraiser; and settlement of the claim.
b. We may examine any insured under oath,
umpire equally.
while not in the presence of any other insured
If there is an appraisal, we will still retain our right and at such times as may be reasonably re-
to deny the claim. quired, about any matter relating to this insur-
ance or the claim, including an insured's
3. Duties In The Event Of Loss Or Damage books and records. In the event of an exam-
done in
ination, an insured's answers must be signed.
a. You must see that the following are
the event of loss or damage to Covered
4. Loss Payment
Property:
law may have been a. In the event of loss or damage covered by this
(1) Notify the police if a
broken. Coverage Form, at our option, we will either:
(2) Give us prompt notice of the loss or dam- (1) Pay the value of lost or damaged prop-
age. Include a description of the property erty;
involved.
(2) Pay the cost of repairing or replacing the
(3) As soon as possible, give us a descrip-
tion of how, when and where the loss or
l ost or damaged property, subject to b.
below;
damage occurred.
(4) Take all reasonable steps to protect the (3) Take all or any part of the property at an
Covered Property from further damage, agreed or appraised value; or
and keep a record of your expenses nec-
essary to protect the Covered Property, (4) Repair, rebuild or replace the property
for consideration in the settlement of the with other property of like kind and qual-
claim. This will not increase the Limit of ity, subject to b. below.
Insurance. However, we will not pay for
any subsequent loss or damage resulting We will determine the value of lost or dam-
from a cause of loss that is not a Covered
Cause of Loss. Also, if feasible, set the aged property, or the cost of its repair or re-
damaged property aside and in the best placement, in accordance with the applicable
terms of the Valuation Condition in this Cover-
possible order for examination,
age Form or any applicable provision which
(5) At our request, give us complete inven- amends or supersedes the Valuation Condi-
tories of the damaged and undamaged tion.
property. Include quantities, costs, values
and amount of loss claimed. b. The cost to repair, rebuild or replace does not
include the increased cost attributable to en-
(6) As often as may be reasonably required, forcement of any ordinance or law regulating
permit us to inspect the property proving the construction, use or repair of any property.
the loss or damage and examine your
books and records.
c. We will give notice of our intentions within 30
Also permit us to take samples of dam- days after we receive the sworn proof of loss.
aged and undamaged property for in-
spection, testing and analysis, and permit d. We will not pay you more than your financial
us to make copies from your books and interest in the Covered Property.
records.
Page 10 of 15
CP 00 17 04 02 ©ISO Properties, Inc., 2001
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60 of 109
e. We may losses with the owners of lost

adjust (a) When this policy is issued to a tenant,
or damaged property if other than you. If we and with respect to that tenant's
interest in Covered Property, building
pay the owners, such payments will satisfy
means the unit or suite rented or
your claims against us for the owners' prop-
leased to the tenant. Such building is
erty. We will not pay the owners more than
their financial interest in the Covered Prop- vacant when it does not contain
erty. enough business personal property to

f. We may elect to defend you against suits
arising from claims of owners of property. We
(b) When this policy is
issued to the own-
er or general lessee of a building,
will do this at our expense.
building means the entire building.
Such building is vacant unless at least
g. We will pay for covered loss or damage to
31% of its total square footage is:
Covered Property within 30 days after we
re-ceive
the sworn proof of loss, if you have
(I) Rented to a iessee or sub-lessee
complied with all of the terms of this Cover- and used by the lessee or sub-
age Part and: lessee to conduct its customary
operations; and/or
(1) We have reached agreement with you on
the amount of loss; or the

(II) Used by building owner to
(2) An appraisal award has been made.
(2) Buildings under construction or renova-
If you name insurance trustee, we will
an tion are not considered vacant.
adjust losses with you, but we will pay the
insurance trustee. If we pay the trustee, the b. Vacancy Provisions
payments will satisfy your claims against us.
If the building where loss or damage occurs
5. Recovered Property has been vacant for more than 60 consecu-
tive days before that loss or damage occurs:
If either youor we recover any property after loss
settlement, that party must give the other prompt (1) We will not pay for any loss or damage
notice. At your option, the property will be re- caused by any of the following even if
turned to you. You must then return to us the they are Covered Causes of Loss:
amount we paid to you for the property. We will
pay recovery expenses and the expenses to re- (a) Vandalism;
pair the recovered property, subject to the Limit of
Insurance. (b) Sprinkler leakage, unless you have
protected the system against freez-
6. Unit-Owner's insurance ing;
A unit-owner may have other insurance covering (c) Building glass breakage;
the same property as this insurance. This insur- Water damage;
ance is intended to be primary, and not to contrib-(d)
ute with such other insurance.
(e) Theft; or
7. Vacancy (f) Attempted theft.

a. Description Of Terms With respect to Covered Causes of Loss
(2)
other than those listed in b.(1)(a) through
(1) As used in this Vacancy Condition, the b.(1)(f) above, we will reduce the amount
term building and the term vacant have we would otherwise pay for the loss or
the meanings set forth in (1)(a) and (1)(b) damage by 15%.
below:

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(1) Multiply the value of Covered Property at

8. Valuation
the time of loss by the Coinsurance
We will determine the value of Covered Property percentage;
in the event of loss or damage as follows:
(2) Divide the Limit of Insurance of the prop-
a. At actual cash value as of the time of loss or erty by the figure determined in Step (1);
damage, except as provided in b. and c. be-
low. (3) Multiply the total amount of loss, before
the application of any deductible, by the
b. If the Limit of Insurance for Building satisfies figure determined in Step (2); and
the Additional Condition, Coinsurance, and
(4) Subtract the deductible from the figure
the cost to repair or replace the damaged
determined in Step (3).
building property is $2, 500 or less, we will pay
the cost of building repairs or replacement.
We will pay the amount determined in Step (4) or
The cost of building repairs or replacement the Limit of Insurance, whichever is less. For the
does not include the increased cost attribut- remainder, you will either have to rely on other
able to enforcement of any ordinance or law insurance or absorb the loss yourself.
regulating the construction, use or repair of
any property. However, the following property Example No. 1 (Underinsurance):
will be valued at the actual cash value even
When: The value of the property is $ 250, 000
when attached to the building:
The Coinsurance
80%
(1) Awnings or fioor coverings; percentage for it is
for it is $ 100, 000
(2) Appliances for refrigerating, ventilating, The Deductible is $ 260
cooking, dishwashing or laundering; or The amount of loss is $ 40, 000
(3) Outdoor equipment or furniture. $200, 000
Step (1): $250, 000 x 80%
=
(the minimum amount of insurance to

c. Glass at the cost of replacement with safety
meet your Coinsurance requirements)
glazing material if required by law.
$200, 000 .50
Step (2): $100, 000
=
9. Waiver Of Rights Of Recovery
We waive our rights to recover payment from any Step (3): $40, 000 x .50 =
$20, 000
unit-owner of the condominium that is shown in
Step (4): $20, 000 $250
- =
$19, 750
the Declarations.
We will pay no more than $19,750. The re-
F. Additional Conditions 250 is not covered.
maining $20,
The following conditions apply in addition to the Com-
mon Policy Conditions and the Commercial Property Example No. 2 (Adequate insurance):
Conditions.
When: The value of the property is $ 250, 000
The Coinsurance
I. Coinsurance 80%
percentage for it is
If Coinsurance percentage is shown in the Dec-
a
for it is $ 200, 000
larations, the following condition applies, $ 250
The Deductible is
The amount of loss is $ 40, 000
a. We will not pay the full amount of any loss if
the value of Covered Property at the time of
The minimum amount of insurance to meet
loss times the Coinsurance percentage shown 000
for it in the Declarations is greater than the your Coinsurance requirement is $200,
000 80%). Therefore, the Limit of
Limit of Insurance for the property. ($250, x
Insurance in this Example is adequate and no
Instead, we will determine the most we wili penalty applies. We will pay no more than
$39, 750 ($40, 000 amount of loss minus the
pay using the following steps: deductible of $260).

CP 00 17 04 02
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b. If oneLimit of Insurance applies to two or d. If we deny your claim because of your acts or
more separate items, this condition will apply because you have failed to comply with the
to the total of all property to which the limit terms of this Coverage Part, the mortgage-
applies, holder will still have the right to receive loss
payment if the mortgageholder:
Example No. 3:
(1) Pays any premium due under this Cover-
When: The value of property is: age Part at our request if you have failed
Bldg. at Location No. 1 $ 75, 000 to do so;
Bldg. at Location No. 2 $ 100, 000
Personal Property at (2) Submits a signed, sworn proof of loss
Location No. 2 $ 75, 000 within 60 days after receiving notice from
$ 250, 000 us of your failure to do so; and
The Coinsurance
percentage for it is 90% (3) Has notified us of any change in owner-
ship, occupancy or substantial change in
The Limit of Insurance risk known to the mortgageholder.
for Buildings and
Personal Property at All of the terms of this Coverage Part will then
Location Nos. 1 and 2 is $ 180, 000 apply directly to the mortgagoholder.
The Deductible is e. If we pay the mortgageholder for any loss or

$ 1, 000
The amount of loss is: damage and deny payment to you because of
Bldg. at Location No. 2 $ 30, 000 your acts or because you have failed to com-
Personal Property at ply with the terms of this Coverage Part:
Location No. 2 $ 20, 000
$ 50, 000 (1) The mortgageholder's rights under the
mortgage will be transferred to us to the
extent of the amount we pay; and
Step (1): $250, 000 x 90% =
$225, 000
(the minimum amount of insurance to The mortgageholder's right to recover the
meet your Coinsurance requirements (2)
full amount of the mortgageholder's claim
and to avoid the penalty shown below)
will not be impaired.
Step (2): $180, 000 -:- $225, 000 = .80

At ouroption, we may pay to the mart-
Step (3): $50, 000 x .80 =
$40, 000 gageholder the whole principal on the
mortgage plus any accrued interest. In
this event, your mortgage and note will be
Step (4): $40, 000 —
$1, 000 =
$39, 000 transferred to us and you will pay your
We will pay no more than $39, 000. The re-
remaining mortgage debt to us.
maining $11, 000 is not covered. f. If we cancel this policy, we will give written
notice to the mortgageholder at least:
2. Mortgageholders
(1) 10 days before the effective date of can-
a. The term mortgageholder includes trustee. cellation if we cancel for your non-
payment of premium; or
b. We will pay for covered loss of or damage to
buildings or structures to each mortgage- (2) 30 days before the effective date of can-
holder shown In the Declarations in their or- collation if we cancel for any other reason.
der of precedence, as interests may appear.
g. If we elect not to renew this policy, we will give
c. The mortgageholder has the right to receive written notice to the mortgageholder at least
loss payment even if the mortgageholder has 10 days before the expiration date of this
started foreclosure or similar action on the
policy.
building or structure.

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G. Optional Coverages Example:

The applicable Limit of
If shown asapplicable in the Declarations, the follow- If:
ing Optional Coverages apply separately to each item. Insurance is $ 100, 000
The annual percentage
increase is 8%
1. Agreed Value
The number of days
a. The Additional Condition, Coinsurance, does since the beginning of
not apply to Covered Property to which this the policy year (or last
policy change) is 146
Optional Coverage applies. We will pay no
more for loss of or damage to that property The amount of increase
than the proportion that the Limit of Insurance is $100, 000 x .08 x 146
under this Coverage Part for the property i- 365 = $ 3, 200
bears to the Agreed Value shown for it in the
Declarations. 3. Replacement Cost
b. If the expiration date for this Optional Cover- a. Replacement Cost (without deduction for de-
age shown in the Declarations is not extend- predation) replaces Actual Cash Value in the
ed, the Additional Condition, Coinsurance, is Loss Condition, Valuation, of this Coverage
reinstated and this Optional Coverage Form.
expires.
b. This Optional Coverage does not apply to:
c. The terms of this Optional Coverage apply
only to loss or damage that occurs: (1) Personal property of others;
(1) On or after the effective date of this Op- (2) Contents of a residence; or
tional Coverage; and

(3) Works of art, antiques or rare articles, In-
(2) Before the Agreed Value expiration date cluding etchings, pictures, statuary, mar-
shown in the Declarations or the policy bIes, bronzes, porcelains and bric-a-brac.
expiration date, whichever occurs first.
Under the terms of this Replacement Cost
2. Inflation Guard Optional Coverage, personal property owned
indivisibly by all unit owners, and the property
a. The Limit of Insurance for property to which covered under Paragraph A.1.a.(6) of this
this Optional Coverage applies will automat- Coverage Form, are not considered to be the
ically increase by the annual percentage personal property of others.
shown in the Declarations.
c. You may make a claim for loss or damage
b. The amount of increase will be: covered by this insurance on an actual cash
value basis instead of on a replacement cost
(1) The Limit of Insurance that applied on the basis. In the event you elect to have loss or
most recent of the policy inception date, damage settled on an actual cash value ba-
the policy anniversary date, or any other sis, you may still make a claim for the addi-
policy change amending the Limit of tional coverage this Optional Coverage pro-
Insurance, times vides if you notify us of your intent to do so
within 180 days after the loss or damage.
(2) The percentage of annual increase shown
in the Declarations, expressed as a d. We will not pay on a replacement cost basis
decimal (example: 8% is .08), times for any loss or damage:
The number of days since the beginning (1) Until the lost or damaged property is ac-
(3)
of the current policy year or the effective tually repaired or replaced; and
date of the most recent policy change
amending the Limit of Insurance, divided (2) Unless the repairs or replacement are
by 365. made as soon as reasonably possible

after the loss or damage.
CP 00 17 04 02 ©ISO Properties, Inc., 2001 Page 14 of 15

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64 of 109
e. We will not pay more for loss or damage on a this Extension may also be shown as applica-
ble. If the Declarations show this Extension as
replacement cost basis than the least of (1),
(2) or (3), subject to f. below: applicable, then Paragraph 3.b.(1) of the
Replacement Cost Optional Coverage is de-
(1) The Limit of Insurance applicable to the leted and all other provisions of the Replace-
lost or damaged property; ment Cost Optional Coverage apply to re-
placement cost on personal property of
(2) The cost to replace the lost or damaged others.
property with other property:
b. With respect to replacement cost on the per-
(a) Of comparable material and quality; sonal property of others, the following limita-
and tion applies:
(b) Used for the same purpose; If an item(s) of personal property of others is
subject to a written contract which governs
(3) The amount actually spent that is neces-
your liability for loss or damage to that item(s),
sary to repair or replace the lost or dam- then valuation of that item(s) will be based on
aged property. the amount for which you are liable under
such contract, but not to exceed the lesser of
If a building is rebuilt at a new premises, the the replacement cost of the property or the
cost described in e.(2) above is limited to the
cost which would have been incurred if the
applicable Limit of Insurance.
building had been rebuilt at the original H. Definitions
premises.
1. "Fungus" means any type or form of fungus, in-
f. The cost of repair or replacement does not in-
clude the increased cost attributable to en- cluding mold or mildew, and any mycotoxins,
forcement of any ordinance or law regulating spores, scents or by-products produced or re-
leased by fungi.
the construction, use or repair of any prop-
erty.
2. "Pollutants" means any solid, liquid, gaseous or
4. Extension Of Replacement Cost To Personal thermal irritant or contaminant, including smoke,
Property Of Others vapor, soot, fumes, acids, alkalis, chemicals and
waste. Waste includes materials to be recycled,
a. If the Replacement Cost Optional Coverage is reconditioned or reclaimed.
shown as applicable in the Declarations, then

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BUSINESS INCOME (WITHOUT EXTRA EXPENSE)

COVERAGE FORM
Read the entire policy carefully to determine rights, duties and what is
Various provisions in this policy restrict coverage.
and is not covered.
"
shown in the Declarations. The words "we,
Throughout this policy the words "you" and "your" refer to the Named Insured
"us" and "our" refer to the Company providing this insurance.
Definitions.
Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. —
A. personal property in a vehicle, the described premises

Coverage
include the area within 100 feet of the site at which the
1. Business Income described premises are located.
Business Income means the: With respect requirements set forth in the pre-
to the
if
ceding paragraph, you occupy only part of the site at
a. Net Income (Net Profit or Loss before income which the described premises are located, your prem-
taxes) that would have been earned or ises means:
incurred; and
a. The portion of the building which you rent,
b. Continuing normal operating expenses lease or occupy; and
incurred, including payroll.
b. Any area within the building or on the site at
For manufacturing risks, Net Income includes the which the described premises are located, If
net sales value of production, that area services, or is used to gain access
to, the described premises.
Coverage is provided as described and limited below
for one or more of the following options for which a 2. Covered Causes Of Loss, Exclusions And
Limit of insurance is shown in the Declarations: Limitations
a. Business Income including "Rental Value." See applicable Causes of Loss Form as shown in
the Declarations.
b. Business Income other than "Rental Value."
3. Additional Limitation —
interruption Of Corn-
c. "Rental Value." puter Operations
If option a. above is selected, the term Business a. Coverage for Business Income does not apply
Income will include "Rental Value." If option c. above when a "suspension" of "operations" is
is selected, the term Business Income will mean caused by destruction or corruption of
"Rental Value" only. electronic data, or any loss or damage to
electronic data, except as provided under the
If Limits of Insurance are shown under more than one Additional Coverage Interruption Of Corn-
—
of the above options, the provisions of this Coverage puter Operations.

Part apply separately to each.
b. Electronic data means information, facts or
We will pay for the actual loss of Business Income you computer programs stored as or on, created
sustain due to the necessary "suspension" of your or used on, or transmitted to or from computer
"operations" during the "period of restoration." The
"suspension" must be caused by direct physical loss software), on hard or floppy disks, CD-ROMs,
of or damage to property at premises which are tapes, drives, cells, data processing devices
described in the Declarations and for which a Bust- or any other repositories of computer soft-
ness Income Limit of Insurance is shown in the Decla- ware which are used with electronically
rations. The loss or damage must be caused by or controlled equipment. The term computer pro-
result from a Covered Cause of Loss. With respect to grams, referred to in the foregoing descrip-
loss of or damage to personal property in the open or lion of electronic data, means a set of related

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electronic instructions which direct the opera- (a) Used in the construction, alterations
tions and functions of a computer or device or additions; or
connected to it, which enable the computer or

device to receive, process, store, retrieve or (b) Incidental to the occupancy of new
send data. buildings.
4. Additional Coverages if such direct physical loss or damage delays

"
the start of "operations, the "period of restor-
e. Expenses To Reduce Loss ation" will begin on the date "operations"
would have begun if the direct physical loss or
In the event of a covered loss of Business In- damage had not occurred.
come, we will pay necessary expenses you
incur, except the cost of extinguishing a fire, d. Extended Business Income
to avoid further loss of Business Income. The
total of our payment for Business Income loss (1) Business Income Other Than "Rental
and Expenses to Reduce Loss will not be Value"
more than the Business Income loss that
would have been payable under this Cover- If the necessary "suspension" of your "op-
age Form (after application of any Coinsur- erations" produces a Business Income
ance penalty) if the Expenses to Reduce Loss loss payable under this policy, we will pay
had not been incurred. This coverage does for the actual loss of Business Income you
not increase the Limit of Insurance. incur during the period that:
The Coinsurance condition does not apply (a) Begins onthe date property (except
specifically to such Expenses to Reduce Loss, "finished stock") is actually repaired,
but it is used as described above to de- rebuilt or replaced and "operations"
termine the total amount payable. are resumed; and
Civil (b) Ends on the earlier of:

b. Authority
We will pay for the actual loss of Business In- (I) The date you could restore your
"
come you sustain caused by action of civil au- "operations, with reasonable
thority that prohibits access to the described speed, to the level which would
premises due to direct physical loss of or generate the business income
damage to property, other than at the de- amount that would have existed if
scribed premises, caused by or resulting from no direct physical loss or damage
any Covered Cause of Loss, This coverage had occurred; or
begins 72 hours after the time of that action, _
and will apply for a period of up to three con- (ii) 30 consecutive days after the
secutive weeks from the date on which the date determined in (1)(a) above.
coverage begins.
However, Extended Business Income
c. Alterations And New Buildings does not apply to loss of Business In-
come incurred as a result of unfavorable
We will pay for the actual loss of Business In- business conditions caused by the impact
come you sustain due to direct physical loss of the Covered Cause of Loss in the
or damage at the described premises caused area where the described premises are
by or resulting from any Covered Cause of located.

Loss to:
Loss of Business Income must be caused
(1) New buildings or structures, whether by direct physical loss or damage at the
complete or under construction; described premises caused by or result-
ing from any Covered Cause of Loss.
(2) Alterations or additions to existing build-
ings or structures; and (2) "Rental Value"
or build- If the necessary "suspension" of your "op-

(3) Machinery, equipment, supplies
ing materials located on or within 100 feet erations" produces a "Rental Value" loss
of the described premises and: payable under this policy, we will pay for

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the actual loss of 'Rental Value" you incur in that form, and Collapse as set forth
in that form.
during the period that:
(b) If the Causes Of Loss Broad Form
(a) Begins on the date property is actual-
—
coverage under this Addition-

applies,
ly repaired, rebuilt or replaced and
tenantability is restored; and al Coverage Interruption Of Com-
—
puter Operations includes Collapse as

Ends the earlier of: set forth in that form.
(b) on
(c) If the Causes Of Loss Form is en-

(I) The date you could restore tenant
with reasonable dorsed to add a Covered Cause of
occupancy,
speed, to the level which would Loss, the additional Covered Cause
the "Rental Value" that of Loss does not apply to the cover-
generate
would have existed if no direct age provided under this Additional
physical loss or damage had Coverage Interruption Of Computer
—
occurred; or Operations.
(d) The Covered Causes of Loss include
(ii) 30 consecutive days after the
date determined in (2)(a) above.
a virus, harmful code or similar in-
Business Income
Extended
on a computer system (including
However,
does not apply to loss of "Rental Value"
electronic data) or a network to which
incurred as a result of unfavorable busi- or destroy any part of the system or
ness conditions caused by the impact of
the Covered Cause of Loss in the area
disrupt its normal operation. But there
is no coverage for an interruption re-
where the described premises are lated to manipulation of a computer
located.
system (including electronic data) by
any employee, including a temporary
Loss of "Rental Value" must be caused by or leased employee, or by an entity
direct physical loss or damage at the de- retained for you to
by you or inspect,
scribed premises caused by or resulting
design, install, maintain, repair or re-
from any Covered Cause of Loss.
place that system.
e. Interruption Of Computer Operations The most will pay under this Additional
(4) we
Coverage Interruption Of Computer Op-

—
(I) Under this Additional Coverage, elec- erations is $2, 500 for all loss sustained in
tronic data has the meaning described
any one policy year, regardless of the
under Additional Limitation Interruption —
number of interruptions or the number of

Of Computer Operations,
premises, locations or computer systems
involved. If loss payment relating to the
(2) Subject to all provisions of this Additional first interruption does not exhaust this
Coverage, you may extend the insurance amount, then the balance is available for
that applies to Business Income to apply loss sustained as a result of subsequent
to a "suspension" of "operations" caused interruptions in that policy year. A balance
by an interruption in computer operations remaining at the end of a policy year does
due to destruction or corruption of elec- not increase the amount of insurance in
tronic data due to a Covered Cause of the next policy year. With respect to any
Loss. Interruption which begins in one policy
year and continues or results in additional
(3) With respect to the coverage provided loss in a subsequent policy year(s), all
under this Additional Coverage, the Cov- loss is deemed to be sustained in the pol-
ered Causes of Loss are subject to the icy year in which the interruption began.
following:
(5) This Additional Coverage Interruption in —

—
Computer Operations does not apply to

applies, coverage under this Addition- loss sustained after the end of the "period
"
al Coverage Interruption Of Corn-
—
of restoration, even if the amount of
puter Operations is limited to the insurance stated in (4) above has not
"specified causes of loss" as defined been exhausted.

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5. Coverage Extension 1. Appraisal
If a Coinsurance percentage of 50% or more is If we and you disagree on the amount of Net
shown in the Declarations, you may extend the Income and operating expense or the amount of
insurance provided by this Coverage Part as loss, either may make written demand for an ap-
follows: praisel of the loss. In this event, each party will
select a competent and impartial appraiser.
NEWLY ACQUIRED LOCATIONS
The two appraisers will select an umpire. If they
a. You may extend your Business Income Coy- cannot agree, either may request that selection be
erage to apply to property at any location you made by a judge of a court having jurisdiction. The
acquire other than fairs or exhibitions, appraisers will state separately the amount of Net
Income and operating expense or amount of loss.
b. The most we will pay for loss under this If they fail to agree, they will submit their
Extension is $100, 000 at each location, differences to the umpire. A decision agreed to by
any two will be binding. Each party will:
c. Insurance under this Extension for each newly
acquired location will end when any of the a. Pay its chosen appraiser; and
following first occurs:
(1) This policy expires; umpire equally.
(2) 30 days expire after you acquire or begin If there is an appraisal, we will still retain our right
to construct the property; or
to deny the claim.
(3) You report values to us. 2. Duties In The Event Of Loss

We will charge you additional premium for done in
a. You must see that the following are
values reported from the date you acquire the
the event of loss:
property.
(1) Notify the police if a iaw may have been
This Extension is additional insurance. The
Additional Condition, Coinsurance, does not broken.
apply to this Extension. Give us prompt notice of the direct phys-
(2)
B. Limits Of Insurance ical loss or damage. Include a description
of the property involved.
The most we will pay for loss in any one occurrence is
the applicable Limit of Insurance shown in the (3) As soon as possible, give us a description
Declarations, of how, when, and where the direct
physical loss or damage occurred.
The limit applicable to the Coverage Extension is in
addition to the Limit of Insurance. (4) Take all reasonable steps to protect the
Covered Property from further damage,
Payments under the following Additional Coverages and keep a record of your expenses nee-
will not increase the applicable Limit of Insurance: essary to protect the Covered Property,
for consideration in the settlement of the
1. Alterations and New Buildings; claim. This will not increase the Limit of
Insurance. However, we will not pay for
2. Civil Authority; any subsequent loss or damage resulting
from a cause of loss that is not a Covered
3. Extended Business Income; Cause of Loss. Also, if feasible, set the
damaged property aside and in the best
4. Expenses to Reduce Loss.
possible order for examination.
C. Loss Conditions
(5) As often as may be reasonably required,
permit us to inspect the property proving
The following conditions apply in addition to the
the loss or damage and examine your
Common Policy Conditions and the Commercial Prop-
books and records.
erty Conditions,

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69 of 109
Also permit us to take samples of dam- (c) Deeds, liens or contracts.

aged and undamaged property for in-
spection, testing and analysis, and permit b. Resumption Of Operations
us to make copies from your books and
records. We will reduce the amount of your Business
Income loss to the extent you can resume
(6) Send us a signed, sworn proof of loss "
your "operations, in whole or in part, by using
containing the information we request to damaged or undamaged property (including
investigate the claim. You must do this merchandise or stock) at the described pram-
within 60 days after our request. We will
ises or elsewhere.
supply you with the necessary forms.
"
with us in the c. If you do not "operations, or do not

resume
(7) Cooperate investigation or
resume "operations" as quickly as possible,
settlement of the claim.
we will pay based on the length of time it
If you intend to continue your business, would have taken to resume "operations" as
(8)
you must resume all or part of your "oper- quickly as possible.
ations" as quickly as possible.
4. Loss Payment
b. We may examine any insured under oath,
while not in the presence of any other insured We will pay for covered loss within 30 days after
and at such times as may be reasonably re- we receive the sworn proof of loss, if you have
quired, about any matter relating to this insur- complied with all of the terms of this Coverage
ance or the claim, including an insured's Part and:
books and records. In the event of an exam-
ination, an insured's answers must be signed. a. We have reached agreement with you on the
amount of loss; or
3. Loss Determination
a. The amount of Business Income loss will be

b. An appraisal award has been made.
determined based on:
D. Additional Condition
(1) The Net Income of the business before

the direct physical loss or damage COINSURANCE
occurred;
If Coinsurance percentage is shown in the Declare-
a
(2) The likely Net Income of the business if tions, the following condition applies in addition to the
no physical loss or damage had occurred, Common Policy Conditions and the Commercial Prop-
but not including any Net Income that erty Conditions.
would likely have been earned as a result
of an increase in the volume of business We will not pay the full amount of any loss if the Limit
due to favorable business conditions of Insurance for Business Income is less than:
caused by the impact of the Covered
Cause of Loss on customers or on other a. The Coinsurance percentage shown for Bus-
businesses; lness Income in the Declarations; times
(3) The operating expenses, including payroll b. The sum of:

expenses, necessary to resume "opera-
tions" with the same quality of service that
( 1) The Net Income (Net Profit or Loss before
existed just before the direct physical loss
income taxes), and
or damage; and
(4) Other relevant sources of information, in- (2) Operating expenses, including payroll ex-
cluding: penses,
(a) Your financial records and accounting that would have been earned or incurred (had
procedures; no loss occurred) by your "operations" at the
described premises for the 12 months follow-
(b) Bills, invoices and other vouchers; ing the inception, or last previous anniversary
and date, of this policy (whichever is later).

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Archive
Instead, we will determine the most we will pay using depletion — not percentage depletion; welfare and
the
retirement fund charges based on tonnage; hired
following steps:
trucks).
for
1. Multiply the Net Income and operating expense No. 1 (Underinsurance):
the 12 months following the inception, or last Example
previous anniversary date, of this policy by the When: The Net Income and operating expenses
Coinsurance percentage; for the 12 months following the inception,
or last previous anniversary date, of this
2. Divide the Limit of Insurance for the described
policy at the described premises would
premises by the figure determined in Step 1; and have been $400, 000
3. Multiplythe total amount of loss by the figure The Coinsurance percentage is 50%
determined in Step 2.
The Limit of Insurance is $150, 000
We will pay the amount determined in Step 3 or the
limit of insurance, whichever is less. For the remain- The amount of loss is $ 80, 000
der, you will either have to rely on other insurance or
absorb the loss yourself. Step 1: $400, 000 x 50% = $200, 000
(the minimum amount of insurance

indetermining operating expenses for the purpose of to meet your Coinsurance requirements)
applying the Coinsurance condition, the following
ex-
penses, if applicable, shall be deducted from the total Step 2: $150, 000 $200, 000 = .75
of all operating expenses:
Step 3: $80, 000 x .75 =
$60, 000
I. Prepaid freight —
outgoing;
We will pay no more than $60,000. The remaining
2. Returns and allowances; $20, 000 is not covered.
3. Discounts; Example No. 2 (Adequate insurance):
4. Bad debts; When: The Net Income and operating expenses

for the 12 months following the inception,
or last previous anniversary date, of this
5. Collection expenses;
policy at the described premises would
have been $400, 000
6. Cost of raw supplies consumed
stock and factory
(including transportation charges); The Coinsurance percentage is 50%
7. Cost of merchandise sold (including transportation The Limit of Insurance is $200, 000
charges);
The amount of loss Is $ 80, 000
8. Cost of other supplies consumed (including trans-
portation charges); The minimum amount of insurance to meet your Coin-
surance requirement is $200, 000 ($400, 000 x 50%).
9. Cost of services purchased from outsiders (not Therefore, the Limit of Insurance in this Example is
employees) to resell, that do not continue under
adequate and no penalty applies. We will pay no more
contract; than $80, 000 (amount of loss).
10. Power, heat and refrigeration expenses that do E. Optional Coverages

not continue under contract (if Form CP 15 11 is
attached); If shown as applicable in the Declarations, the follow-
ing Optional Coverages apply separately to each item.

11. All ordinary payroll expenses or the amount of
payroll expense excluded (if Form CP 15 10 is 1. Maximum Period Of indemnity

attached); and
a. The Additional Condition, Coinsurance, does
12. Special deductions for mining properties (royal- not apply to this Coverage Form at the de-
ties unless specifically included in coverage; scribed premises to which this Optional Coy-
actual depletion commonly known as unit or cost erage applies.
2001 Page 6 of 8
CP 00 32 04 02 © ISO Properties, Inc.,
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71 of 109
b. The most we will pay for loss of Business 3. Business Income Agreed Value
Income is the lesser of:
a. To activate this Optional Coverage:
(1) The amount of loss sustained during the
(1) A Business Income Report/Work Sheet
120 days immediately following the begin-
must be submitted to us and must show
ning of the "period of restoration"; or financial data for your "operations":
(2) The Limit of Insurance shown in the

(a) During the 12 months prior to the date
Declarations. of the Work Sheet; and
2. Monthly Limit Of Indemnity (b) Estimated for the 12 months immedi-

ately following the inception of this
a. The Additional Condition, Coinsurance, does
Optional Coverage.
not apply to this Coverage Form at the
described premises to which this Optional The Declarations must indicate that the
(2)
Coverage applies. Business Income Agreed Value Optional
Coverage applies, and an Agreed Value
b. The most we will pay for loss of Business must be shown in the Declarations. The
Income in each period of 30 consecutive days Agreed Value should be at least equal to:
after the beginning of the "period of restor-
ation" is: (a) The Coinsurance percentage shown
in the Declarations; multiplied by
(1) The Limit of Insurance, multiplied by
(b) The amount of Net Income and oper-
(2) The fraction shown in the Declarations for ating expenses for the following 12
this Optional Coverage, months you report on the Work Sheet.
b. The Additional Condition, Coinsurance, is

Example until:
suspended
When: The Limit of Insurance is $120, 000
(1) 12 months after the effective date of this
The fraction shown in the Optional Coverage; or
Declarations for this

114 (2) The expiration date of this policy;
Optional Coverage is
whichever occurs first.
The most we will pay for
loss in each period of c. We will reinstate the Additional Condition,
30 consecutive days is: Coinsurance, automatically if you do not sub-
$120, 000 x 114 = $30, 000 mit a new Work Sheet and Agreed Value:
lf, in this example, the (1) Within 12 months of the effective date of
actual amount of loss is: this Optional Coverage; or
Days 1-30 $ 40, 000 (2) When you request a change in your Busi-
Days 31-60 20, 000 ness Income Limit of Insurance
Days 61-90 30, 000

$ 90, 000 d. If the Business Income Limit of Insurance is
less than the Agreed Value, we will not pay
We will pay: more of any loss than the amount of loss
multiplied by:
Days 1-30 $ 30, 000
20, 000 (1) The Business Income Limit of Insurance;
Days 31-60
30, 000 divided by
Days 61-90
$ 80, 000
(2) The Agreed Value.
The remaining $10, 000 is not covered.
CP 00 32 04 02 @ISO Properties, Inc., 2001 Page 7 of 8

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at
Example (2) The date when business is resumed a
new permanent location.

When: The Limit of Insurance is $100, 000
The Agreed Value is $200, 000 "Period of restoration" does not include any in-
The amount of loss is $ 80, 000 creased period required due to the enforcement of
any ordinance or law that:
Step (a): $100, 000 .i- $200, 000 = .50

(1) Regulates the construction, use or repair,
$40, 000 or required the tearing down of any prop-
Step (b): .50 x $80, 000 =
erty; or
We will pay $40, 000. The remaining $40, 000 is
not covered. (2) Requires any insured or others to test for,
monitor, clean up, remove, contain, treat,
4. Extended Period Of Indemnity detoxify or neutralize, or in any way
effects of
respond to, or assess the
Under Paragraph A.4.d., Extended Business "pollutants."
Income, the number "30" in Subparagraphs (1)(b)
and (2)(b) is replaced by the number shown in the The expiration date of this policy will not cut short
Declarations for this Optional Coverage. the "period of restoration."
F. Definitions 4. "Pollutants" means any solid, liquid, gaseous or

thermal irritant or contaminant, including smoke,
have and
1. "Finished Stock" means stock you vapor, soot, fumes, acids, alkalis, chemicals
manufactured. waste. Waste includes materials to be recycled,
reconditioned or reclaimed.
"Finished stock" also includes whiskey and alco-
holic products being aged, unless there is a Coin- 5. "Rental Value" means Business Income that con-
surance percentage shown for Business Income sists of:

in the Declarations.
a. Net Income (Net Profit or Loss before income
"Finished stock" does not include stock you have taxes) that would have been earned or in-
manufactured that is held for sale on the premises curred as rental income from tenant occupan-
of any retail outlet insured under this Coverage cy of the premises described in
the Declare-
Part. tions as furnished and equipped by you,
including fair rental value of any portion of the
2. "Operations" means: described premises which is occupied by you;
and
a. Your business activities occurring at the de-
scribed premises; and b. Continuing normal operating expenses
incurred in connection with that premises,
b. The tenantability of the described premises, if including:
coverage for Business Income including
"Rental Value" or "Rental Value" applies.
(1) Payroll; and
3. "Period of Restoration" means the period of time
(2) The amount of charges which are the
that:
legal obligation of the tenant(s) but would
otherwise be your obligations.
a. Begins 72 hours after the time of direct phys-
ical loss or damage caused by or resulting
from any Covered Cause of Loss at the de-
6. "Suspension" means:
scribed premises; and cessation of your business

a. The slowdown or
activities; or
b. Ends on the earlier of:
b. That a part or all of the described premises is
(1) The date when the property at the de-
rendered untenantable, if coverage for Busi-
scribed premises should be repaired,
ness Income including "Rental Value" or
rebuilt or replaced with reasonable speed
"Rental Value" applies.
and similar quality; or

CP 00 32 04 02
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73 of 109
CAUSES OF LOSS - SPECIAL FORM
Definitions.
Words and phrases that appear in quotation marks have special meaning. Refer to Section F. —
A. Covered Causes Of Loss (2) Landslide, including any earth sinking,

rising or shifting related to such event;
When Special is shown in the Declarations, Covered
Causes of Loss means Risks Of Direct Physical Loss (3) Mine subsidence, meaning subsidence of
unless the loss is: a man-made mine, whether or not mining
activity has ceased;

1. Excluded in Section B., Exclusions; or
(4) Earth sinking (other than sinkhole col-
2. Limited in Section C., Limitations; lapse), rising or shifting including soil con-
ditions which cause settling, cracking or
that follow, other disarrangement of foundations or
other parts of realty. Soil conditions in-
B. Exclusions dude contraction, expansion, freezing,
thawing, erosion, improperly compacted
We will not pay for loss or damage caused directly soil and the action of water under the
1.
or indirectly by any of the following. Such loss or ground surface.
damage is excluded regardless of any other But if Earth Movement, as described in b.(1)
cause or event that contributes concurrently or in
through (4) above, results in fire or explosion,
any sequence to the loss.
we will pay for the loss or damage caused by
that fire or explosion.
a. Ordinance Or Law
The enforcement of any ordinance or law: (5) Volcanic eruption, explosion or effusion.
But if volcanic eruption, explosion or effu-
sion results in fire, building glass break-
(1) Regulating the construction, use or repair
age orVolcanic Action, we will pay for the
of any property; or
loss or damage caused by that fire, build-
ing glass breakage or Volcanic Action.
(2) Requiring the tearing down of any prop-
erty, including the cost of removing its Volcanic action means direct loss or dam-
debris,
age resulting from the eruption of a vol-
cano when the loss or damage is caused
This exclusion, Ordinance Or Law, applies by:
whether the loss results from:
(a) Airborne volcanic blast or airborne

(1) An ordinance or law that is enforced even shock waves;
if the property has not been damaged; or
(b) Ash, dust or particulate matter; or

(2) The increased costs incurred to comply
with an ordinance or law in the course of Lava flow.
(c)
construction, repair, renovation, remodel-
ing or demolition of property, or removal Ail volcanic eruptions that occur within
of its debris, following a physical loss to any 168 hour period will constitute a sin-
that property.
gle occurrence.
b. Earth Movement Volcanic action does not include the cost
to remove ash, dust or particulate matter
(1) Earthquake, including any earth sinking, that does not cause direct physical loss or
rising or shifting related to such event; damage to the described property.

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c. Governmental Action g. Water
destruction of property by order of (1) Flood, surface water, waves, tides, tidal
Seizure or
waves, overflow of any body of water, or
governmental authority, their spray, all whether driven by wind or
will pay for loss or damage caused by

not;
But we
or resulting from acts of destruction ordered
(2) Mudslide or rnudflow;
by governmental authority and taken at the
time of a fire to prevent its spread, if the fire Water that backs up overflows from a
(3) or
would be covered under this Coverage Part. sewer, drain or sump; or
d. Nuclear Hazard (4) Water under the ground surface pressing

on, or flowing or seeping through:
Nuclear reaction or radiation, or radioactive
contamination, however caused. (a) Foundations, walls, floors or paved
surfaces;
But if nuclear reaction or radiation, or radioac-
tive contamination, results in fire, we will pay (b) Basements, whether paved or not; or
for the loss or damage caused by that fire.

(c) Doors, windows or other openings.
e. Utility Services But if Water, as described In g.(1) through
The failure of power or other utility service g.(4) above, results in fire, explosion or sprin-
kler leakage, we will pay for the loss or dam-
supplied to the described premises, however age caused by that fire, explosion or sprinkler
caused, if the failure occurs away from the
described premises. Failure includes lack of
leakage.
sufficient capacity and reduction in supply.
Dry Rot And Bacteria
"
h. "Fungus, Wet Rot,
But if the failure of power or other utility serv- Presence, growth, proliferation, spread or any
ice results in a Covered Cause of Loss, we rot or bacteria.
"
activity of "fungus, wet or dry

will pay for the loss or damage caused by that
But if "fungus, wet or dry rot or bacteria re-
"
Covered Cause of Loss.
"
sults in a "specified cause of loss, we will pay
This exclusion does not apply to the Business for the loss or damage caused by that "speci-
Income coverage toorExtra Expense cover- fled cause of loss."
age. Instead, the Special Exclusion in Para-
these This exciusion does not apply:
graph B.4.a.(1) applies to coverages.
(1)
"
When "fungus, wet or dry rot or bacteria
f. War And Military Action results from fire or lightning; or
(1) War, including undeclared or civil war;

(2) To the extent that coverage is provided in
the Additional Coverage Limited Cover- —
(2) Warlike action by a military force, includ- age For "Fungus, Wet Rot, Dry Rot
"
ing action in hindering or defending And Bacteria with respect to loss or darn-
against an actual or expected attack, by age by a cause of loss other than fire or
any government, sovereign or other au- lightning.
thority using military personnel or other
agents; or Exclusions B.1.a. through B.1.h. apply whether or
not the loss event results in widespread damage
(3) Insurrection, rebellion, revolution, usurped or affects a substantial area.
power, or action taken by governmental

authority in hindering or defending against 2. We will not pay for loss or damage caused by or
any of these. resulting from any of the following:

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75 of 109
includ- steam engines steam turbines results in fire

or
a. Artificially generated electrical current, or combustion explosion, we
will pay for the
electrical de-
ing electric arcing, that disturbs loss or damage caused by that fire or
vices, appliances or wires. We will also pay for
combustion explosion.
or resulting from
loss or damage caused by
But if artificially generated electrical current the explosion of gases or fuel within the fur-
will pay for the loss or dam- the flues or
results in fire, we
nace of any fired vessel or within
age caused by that fire.
passages through which the gases of com-
bustion pass.
b. Delay, loss of use or loss of market.
f. Continuous repeated seepage or leakage
or
of
c. Smoke, vapor or agricultural smudg-
gas from of water, or the presence or condensation
moisture or vapor, that occurs over
or industrial operations,
ing humidity,
a period of 14 days or more.
d. (1) Wear and tear; or molten mate-

g. Water, other liquids, powder
rial that leaks flows from plumbing, heating,
or
(2) Rust orother corrosion, decay, deteriora-
or latent defect or any quality
air conditioning or other equipment (except
tion, hidden fire protective systems) caused by or resulting
in property that causes it to damage or
from freezing, unless:
destroy itself;
(1) You do your best to maintain heat in the
(3) Smog; building or structure; or
(4) Settling, cracking, shrinking or expansion; (2) You drain the equipment and shut off the
supply if the heat is not maintained.
(5) Nesting or infestation, or discharge or re-
lease of waste products or secretions, by h. Dishonest or criminal act by you, any of your
insects, birds, rodents or other animals.
em-
partners, members, officers, managers, direc-
ployees (including leased employees),
tors, trustees, authorized representatives
or
(6) Mechanical breakdown, including rupture the for
or bursting caused by centrifugal
force. anyone to whom you entrust property
But if mechanical breakdown results in el- any purpose:
evator collision, we will pay for the loss or
(1) Acting alone or in collusion with others;
or
damage caused by that elevator collision.
hours
The following causes of loss to personal (2) Whether or not occurring during the
(7) of employment.
property:
of atmosphere;
This exclusion does not apply to acts of de-
(a) Dampness or dryness struction by your employees (including leased
extremes of tempera-
employees); but theft by employees (including
(b) Changes in or
leased employees) is not covered.
ture; or
Voluntary parting with any property by you

or
i.
entrusted the
(c) Marring or scratching. anyone else to whom you have
property if induced to do so by any fraudulent
But if an excluded cause of loss that is listed scheme, trick, device or false pretense.
in 2.d.(1) through (7) results in a "specified
cause of loss" or building glass breakage, we j. Rain, snow, ice or sleet to personal property
will pay for the loss or damage caused by that in the open.
"specified cause of loss" or building glass
breakage.
k. Collapse, except provided below in the Ad-
as
ditional Coverage for Collapse. But if collapse
results in a Covered Cause of Loss at the de-
ta. Explosion of steam boilers, steam pipes, scribed premises, we will pay for the loss or
steam engines or steam turbines owned or damage caused by that Covered Cause of
leased by you, or operated under your control. Loss.
But if explosion of steam boilers, steam pipes,
Page 3 of 9
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76 of 109
I. Discharge, dispersal, seepage, migration, re- a. Business Income (And Extra Expense)
dis- Coverage Form, Business Income (Without
lease or escape of "pollutants" unless the
Extra Expense) Coverage Form, Or Extra
charge, dispersal, seepage, migration, re-
lease or escape is itself caused by any of the Expense Coverage Form
"specified causes of loss." But if the dis-
charge, dispersal, seepage, migration, re- We will not pay for:
lease escape of "pollutants" results in a
or
"specified cause of loss, we will pay for the

"
(1) Any loss caused directly or indirectly by

loss or damage caused by that "specified the failure of power or other utility service
cause of loss."
supplied to the described premises, how-
ever caused, if the failure occurs outside
This exclusion, I., does not apply to damage of a covered building. Failure includes
to glass caused by chemicals applied to the lack of sufficient capacity and reduction in
glass. supply.
m. Neglect of insured to use all reasonable
an
But if the failure of power or other utility
means to and preserve property from
save
service results in a Covered Cause of
further damage at and after the time of loss,
Loss, we will pay for the loss resulting
from that Covered Cause 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 (2) Any loss caused by or resulting from:
in 3.a. through 3.c. results in a Covered Cause of
(a) Damage or destruction of "finished
Loss, we will pay for the loss or damage caused
stock"; or
by that Covered Cause of Loss.
(b) The time required to reproduce "fin-
a. Weather conditions. But this exclusion only
ished stock."
applies if weather conditions contribute in any
way with a cause or event excluded in
This exclusion does not apply to Extra
Paragraph 1. above to produce the loss or
damage. Expense.
b. Acts or decisions, including the failure to act (3) Any loss caused by orresulting from di-
or decide, of any person, group, organization rect physical loss or damage to radio or
or governmental body. television antennas (including satellite
dishes) and their lead-in wiring, masts or
C. Faulty, Inadequate or defective: towers.
(1) Planning, zoning, development, survey- (4) Any increase of loss caused by or result-
ing, siting; ing from:
(2) Design, specifications, workmanship, re- (a) Delay in rebuilding, repairing or re-
pair, construction, renovation, remodeling, placing the property or resuming "op-
grading, compaction; erations, due to interference at the
"
location of the rebuilding, repair or re-

(3) Materials usedrepair, construction,
in
placement by strikers or other per-
renovation or remodeling; or or
sons;
(4) Maintenance; (b) Suspension, lapse or cancellation of

any license, lease or contract. But if
of part or all of any property on or off the de-
the suspension, lapse or cancellation
scribed premises.
is directly caused by the "suspension"
"
of "operations, we will cover such
4. Special Exclusions loss that affects your Business In-
come during the "period of restore-
The following provisions apply only to the speci-
tion" and any extension of the "period
fled Coverage Forms.

Archive
77 of 109
of restoration" in accordance with the assumption of liability in a contract or

terms of the Extended Business In- agreement. But this exclusion does
not apply to a written lease agree-
come Additional Coverage and the
Extended Period Of Indemnity Op- ment in which you have assumed II-
tional Coverage or any variation of ability for building damage resulting
from an actual or attempted burglary
these.
or robbery, provided that:
(5) Any Expense caused by or resulting

Extra
from suspension, lapse or cancellation of (i) Your assumption of liability was
executed prior to the accident;
any license, lease or contract beyond the
of restoration." and
"period
loss. (II) The building is Covered Property
(6) Any other consequential under this Coverage Form.
b. Leasehold Interest Coverage Form
(b) Nuclear Hazard
(1) Paragraph B.1.a. Ordinance Or Law, "

We will not defend any claim or "suit,
does not apply to insurance under this
or pay any damages, loss, expense or
Coverage Form.
obligation, resulting from nuclear
We will not pay for any loss caused by: reaction or radiation, or radioactive
(2)
contamination, however caused.
(a) Your cancelling the lease;
C. Limitations
(b) The suspension, lapse or cancellation
of any license; or The following limitations apply to all policy forms and
endorsements, unless otherwise stated.
loss.
(c) Any other consequential
1. We will not pay for loss of or damage to property,
as described and limited in this section. In addi-
c. Legal Liability Coverage Form
tion, we will not pay for any loss that is a conse-
(1) The following exclusions do not apply to quence of loss or damage as described and lirn-
insurance under this Coverage Form: ited in this section.
Ordinance Or Law; a. Steam boilers, steam pipes, steam engines or

(a) Paragraph B.1.a.,
steam turbines caused by or resulting from
(b) Paragraph B.1.c., Governmental Ac- any condition or event inside such equipment.
But we will pay for loss of or damage to such
tion;
equipment caused by or resulting from an ex-
(c) Paragraph B.1.d., Nuclear Hazard; plosion of gases or fuel within the furnace of
any fired vessel or within the flues or pas-
(d) Paragraph 8.1.e., Utility Services; sages through which the gases of combustion
and pass.
War And Military b. Hot water boilers or other water heating

(e) Paragraph B.1.f., caused by or resulting from any
Action. equipment
condition or event inside such boilers or
equipment, other than an explosion.

(2) The following additional exclusions apply
to insurance under this Coverage Form:
c. The interior of any building or structure, or to
(a) Contractual Liability personal property in the building or structure,

caused by or resulting from rain, snow, sleet,
We will not defend any claim or "suit,
"
Ice, sand or dust, whether driven by wind or
or pay damages that you are legally not, unless:
liable to pay, solely by reason of your

CP 10 30 04 02
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78 of 109
To Business Income coverage or to Extra

(1) The building or structure first sustains (2)
damage by a Covered Cause of Loss to Expense coverage.
its roof or walls through which the rain,
snow, sleet, ice, sand or dust enters; or 3. The special limit shown for each category, a.
through d., is the total limit for loss of or damage
(2) The loss or damage is caused by or re- to all property in that category. The special limit
sults from thawing of snow, sleet or ice on applies to any one occurrence of theft, regardless
the building or structure. of the types or number of articles that are lost or
damaged in that occurrence. The special limits
d. Building materials and supplies not attached are:
as part of the building or structure, caused by
or resulting from theft. a. $2, 500 for furs, fur garments and garments
trimmed with fur.
However, this limitation does not apply to:
b. $2, 500 for jewelry, watches, watch move-
(1) Building materials and supplies held for ments, jewels, pearls, precious and semi-
sale by you, unless they are insured un-
der the Builders Risk Coverage Form; or precious stones, bullion, gold, silver, platinum
and other precious alloys or metals. This limit
(2) Business Income coverage or Extra Ex- does not apply to jewelry and watches worth
$100 or less per item.
pense coverage.
e. Property thatis missing, where the only evi- c. $2, 500 for patterns, dies, molds and forms.
dence of the loss or damage is a shortage
disclosed on taking inventory, or other in- d. $250 for stamps, tickets, including lottery tick-
stances where there is no physical evidence ets held for sale, and letters of credit.
to show what happened to the property.
These special limits are part of, not in addition to,
f. Property that has been transferred per- to a
the Limit of Insurance applicable to the Covered
son or to a place outside the described prem-
Property.
ises on the basis of unauthorized instructions.
This limitation, C.3., does not apply to Business
2. We will not pay for loss of or damage to the Income coverage or to Extra Expense coverage.
following types of property unless caused by the
"specified causes of loss" or building glass 4. We will not pay the cost to repair any defect to a
breakage:
system or appliance from which water, other lig-
killed uid, powder or molten material escapes. But
e. Animals, and then only if they are or
we will pay the cost to repair or replace dam-
their destruction is made necessary.
aged parts of fire extinguishing equipment If the
b. Fragile articles such as statuary, marbles, damage:
chinaware and porcelains, if broken. This re-
striction does not apply to: a. Results in discharge of any substance from an
automatic fire protection system; or
(1) Glass; or
b. Is directly caused by freezing.
(2) Containers of property held for sale.
However, this limitation does not apply to Bus-
c. Builders' machinery, tools and equipment iness Income coverage or to Extra Expense
owned by you or entrusted to you, provided coverage.
such property is Covered Property.
D. Additional Coverage —
Collapse
However, this limitation does not apply:
The term Covered Cause of Loss includes the Addi-
(1) If the property is located on or within 100 tional Coverage Collapse as described and limited in
—
feet of the described premises, unless the

D. .1 through D.5. below.
premises is insured under the Builders
Risk Coverage Form; or

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79 of 109
not
The criteria set forth in 1.a. through 1.d. do
I. With respect to buildings: limit the coverage otherwise provided under this
down or Causes of Loss Form for the causes of loss listed

a. Collapse means an abrupt falling in 2.a., 2.d. and 2.e.
caving in of a building or any part of a building
with the result that the building or part of the With respect to the following property:
its intended 3.
building cannot be occupied for
purpose; a. Outdoor radio or television antennas (includ-
is in ing satellite dishes) and their lead-in wiring,
b. A building or any part of a building that masts or towers;
in is not con-
danger of falling down or caving
sidered to be in a state of collapse; b. Awnings, gutters and downspouts;
c. A part of building that is standing is not
a
c. Yard Mures;
considered to be in a state of collapse even if
it has separated from another part
of the
d. Outdoor swimming pools;
building;
e. Fences;
building that is standing or any part of
a
d. A
building that is standing is not considered to
f. Piers, wharves and docks;
be in a state of collapse even if it shows evi-
dence of cracking, bulging, sagging, bending, g. Beach or diving platforms or appurtenances;
leaning, settling, shrinkage or expansion.
h. Retaining walls; and
2. We will pay for direct physical loss or damage to
Covered Property, caused by collapse of a build- I. Walks, roadways and other paved surfaces;
insured under
ing or any part of a building that is
this Coverage Form or that contains Covered if the collapse is caused by a cause of loss listed
insured under this Coverage Form, if in 2.b. through 2.f., we will pay for loss or damage
Property of the
the collapse is caused by one or more to that property only if:
following:
a. Such loss or damage is a direct result of the
a. The "specified causes of loss" or breakage of collapse of a building insured under this Cov-
building glass, all only as insured against in erage Form; and
this Coverage Part;
b. The is Covered
property Property under this
the
b. Decay that is hidden from view, unless Coverage Form.
such decay is known to an in-
presence of
sured prior to collapse; 4. Ifpersonal property abruptly falls down or cavesofina
and such collapse is not the result of collapse
damage to
or vermin damage that is hidden from pay for loss
will or
c. Insect building, we
the presence of such damage is Covered Property caused by such collapse of per-
view, unless
known to an insured prior to collapse; sonal property only if:
d. Weight of people or personal property; a. The collapse was caused by a Cause of Loss
listed in 2.a. through 2.f. above;
e. Weight of rain that collects on a roof;
b. The personal property which collapses is in-
f. Use of defective material or methods in con- side a building; and
struction, remodeling or renovation if the col-
lapse occurs during the course of the con- c. The property which collapses is not of a kind
struction, remodeling or renovation. However, listed in 3. above, regardless of whether that
kind of property is considered to be personal
if thecollapse occurs after construction, re-
modeling or renovation is complete and is property or real property.
caused in part by a cause of loss listed in 2.a.
The coverage stated in this Paragraph 4. does not
through 2.e., we will pay for the loss or dam- and/or
age even if use of defective material
or meth- apply to personal property if marring
is the only damage to that personal
ods, in construction, remodeling or renova- scratching
tion, contributes to the collapse, property caused by the collapse.
Page 7 of 9
Archive
80 of 109
4. The coverage provided under this Limited Cover-

Collapse of personal property does not mean Limit of In-
cracking, bulging, sagging, bending, leaning, set- age does not increase the applicable
surance on any Covered Property. If a particular"
tling, shrinkage or expansion.
occurrence results in loss or damage by "fungus,
5. This Additional Coverage, Collapse, will not in- wet or dry rot or bacteria, and other loss or dam-
crease the Limits of Insurance provided
in this for the total of all loss
age, we will not pay more,
Coverage Part. or damage, than the applicable Limit of Insurance
on the affected Covered Property.
E. Additional Coverage Limited Coverage For "Fun-
—
"
And Bacteria
gus, Wet Rot, Dry Rot If there is covered loss or damage to Covered
"
1. The coverage described in" E.2. and E.6. only Property, not caused by "fungus, wet or dry rot or
when the "fungus, wet or dry rot or bacteria, loss payment will not be limited by the
applies
bacteria is the result of one or more of the terms of this Limited Coverage, except to the ex-
tent that "fungus, wet or dry rot or bacteria
"
that during
occurs the
policy pe-
following causes
riod and
only if all reasonable means were used to causes an increase in the loss. Any such increase
save and preserve the property from further in the loss will be subject to the terms of this Lim-
damage at the time of and after that occurrence. Held Coverage.
"specified of loss" other than fire or

a. A cause
5. The terms of this Limited Coverage do not in-
lightning; or crease or reduce the coverage provided under
b. Flood, if the Flood Coverage Endorsement

Paragraph F2. (Water Damage, Other Liquids,
Powder Or Molten Material Damage) of this
applies to the affected premises. Causes Of Loss Form or under the Additional
"
2. We will pay for loss or damage by "fungus, wet or Coverage —
Collapse.
Cover-
dry rot or bacteria. As used in this Limited
age, the term loss or damage means: 6. The following, 6.a. or 6.b., applies only if Business
Income and/or Extra Expense coverage applies to
a. Direct loss or damage to Covered
physical the described premises and only if the "suspen-
"
Property caused by 'fungus, wet or dry rot or sion" of "operations" satisfies all terms and condi-
bacteria, including the cost of removal of the tions of the applicable Business Income and/or
"fungus, wet or dry rot or bacteria;
"
Extra Expense coverage form.

b. The cost to tear out and replace any part of "
a. If the loss which resulted in "fungus, wet or
the building or other property as needed to
gain access to the "fungus, wet or dry rot
"
or dry rot or bacteria does not in itself" necessi-
bacteria; and tate a "suspension" of "operations, but such
"suspension" is necessary due to loss or "
c. The cost of testing performed after removal, damage to property caused by "fungus, wet
repair, replacement or restoration of the dam- or dry rot or bacteria, then our payment under
aged property is completed, provided there is

"
Business Income and/or Extra Expense is lirn-
a reason to believe that "fungus, wet or dry ited to the amount of loss and/or expense
rot or bacteria are present. sustained In a period of not more than 30
days. The days need not be consecutive.
3. The coverage described under E.2. of this Limited
the
Coverage is limited to $15, 000. Regardless of b. If a covered "suspension" of "operations" was
number of claims, this limit is the most we will pay
caused by loss or damage other than "fun-
for the total of all loss or damage arising out of all
gus, wet or dry rot or bacteria but
"
remedia-
occurrences of "specified causes of loss" (other
tion of "fungus, wet or dry rot or bacteria
"
than fire or lightning) and Flood which take place "
in a 12-month period (starting with the beginning prolongs the "period of restoration, we will
of the present annual policy period). With respect pay for loss and/or expense sustained during
to a particular occurrence of loss which results in the delay (regardless of when such a delay
"fungus, wet or dry rot or bacteria, we will not pay occurs during the "period of restoration"), but
"
"
more than a total of $15, 000 even if the "fungus, such coverage is limited to 30 days. The days
wet or dry rot or bacteria continues to be present need not be consecutive.
or active, or recurs, in a later policy period,
Page 8 of 9
CP 10 30 04 02 © ISO Properties, inc., 2001
Archive
81 of 109
F. Additional Coverage Extensions b. We will pay for expenses incurred to remove

or replace obstructions when repairing or re-
1. Property in Transit placing glass that is part of a building. This

does not include removing or replacing win-
This Extension applies only to your personal dow displays.
property to which this form applies.
This Coverage Extension, F.3., does not increase
a. You may extend the insurance provided by
the Limit of Insurance.
this Coverage Part to apply to your personal
property (other than property in the care, cus- G. Definitions
tody or control of your salespersons) in transit
more than 100 feet from the described prem-
ises. Property must be in or on a motor vehi- 1. "Fungus" means any type or form of fungus, in-
cle you own, lease or operate while between cluding mold or mildew, and any mycotoxins,
points in the coverage territory, spores, scents or by-products produced or re-
leased by fungi.
b. Loss or damage must be caused by or result
from one of the following causes of loss: the following:
2. "Specified Causes of Loss" means
Fire; lightning; explosion; windstorm or hail;

(1) Fire, lightning, explosion, windstorm or
smoke; aircraft or vehicles; riot or civil commotion;
hall, riot or civil commotion, or vandalism,
vandalism; leakage from fire extinguishing equip-
overturn. Colli- ment; sinkhole collapse; volcanic action; falling
(2) Vehicle collision, upset or
sion means accidental contact of your ye- objects; weight of snow, ice or sleet; water
hide with another vehicle or object. It damage.
does not mean your vehicle's contact with
the road bed. a. Sinkhole collapse means the sudden sinking
or collapse of land into underground empty
(3) Theft of an entire bale, case or package spaces created by the action of water on lime-
by forced entry into a securely locked stone or dolomite. This cause of loss does not
body or compartment of the vehicle. include:
There must be visible marks of the forced
entry. The cost of filling sinkholes;
(1) or
c. The most we will pay for loss or damage un-

(2) Sinking or collapse of land into man-made
der this Extension is $5, 000.
underground cavities.
This Coverage Extension is additional insurance.
The Additional Condition, Coinsurance, does not b. Falling objects does not include loss or dam-
apply to this Extension. age to:
2. Water Damage, Other Liquids, Powder Or

(1) Personal property in the open; or
Molten Material Damage
(2) The interior of a building or structure, or

If loss or damage caused by orresulting from
property inside a building or structure,
covered water or other liquid, powder or molten outside wall of the
material damage loss occurs, we will also pay the unless the roof or an
cost to tear out and replace any part of the build- building or structure is first damaged by a
ing or structure to repair damage to the system or falling object.

appliance from which the water or other sub-
stance escapes. This Coverage Extension does c. Water damage means accidental discharge or
not increase the Limit of Insurance, leakage of water or steam as the direct result
of the breaking apart or cracking of a plumb-
3. Glass
ing, heating, air conditioning or other system
or appliance (other than a sump system in-
a. We will pay for expenses incurred to put up its related equipment and parts), that
cluding
temporary plates or board up openings if is located on the described premises and con-
repair or replacement of damaged glass is tains water or steam.
delayed.

Archive
82 of 109

COMMERCIAL PROPERTY CONDITIONS
This Coverage Part is subject to the following conditions, the Common Policy Conditions and applicable Loss Conditions
and Additional Conditions in Commercial Property Coverage Forms.
A. CONCEALMENT, MISREPRESENTATION OR E. LIBERALIZATION

FRAUD
If we adopt any revision that would broaden the
This Coverage Part is void in any case of fraud by you coverage under this Coverage Part without additional
as it relates to this Coverage Part at any time. It is also premium within 45 days prior to or during the policy
void if you or any other insured, at any time, period, the broadened coverage will immediately
intentionally conceal or misrepresent a material fact apply to this Coverage Part.
concerning: F. NO BENEFIT TO BAILEE
1. This Coverage Part;

No person or organization, other than you, having
custody of Covered Property will benefit from this
2. The Covered Property; insurance.
3. Your interest in the Covered Property; or G. OTHER INSURANCE
4. A claim under this Coverage Part. 1. You may have other insurance subject to the
same plan, terms, conditions and provisions as
B. CONTROL OF PROPERTY the insurance under this Coverage Part. If you
do, we will pay our share of the covered loss or
Any act or neglect of any person other than you damage. Our share is the proportion that the
beyond your direction or control will not affect this applicable Limit of Insurance under this Cover-
insurance. age Part bears to the Limits of Insurance of all
insurance covering on the same basis.
The breach of any condition of this Coverage Part at
any one or more locations will not affect coverage at 2. If there is other insurance covering the same loss
any location where, at the time of loss or damage, the
or damage, other than that described in 1. above,
breach of condition does not exist. we will pay only for the amount of covered loss or
damage in excess of the amount due from that

C. INSURANCE UNDER TWO OR MORE other insurance, whether you can collect on it or
COVERAGES not. But we will not pay more than the applicable
Limit of Insurance.
If two or more of this policy's coverages apply to the
H. POLICY PERIOD, COVERAGE TERRITORY
same loss or damage, we will not pay more than the
actual amount of the loss or damage.
Under this Coverage Part:
D. LEGAL ACTION AGAINST US 1. We cover loss or damage commencing:

No one may bring a legal action against us under this a. During the policy period shown in the Decla-
Coverage Part unless: rations; and
1. There has been full compliance with all of the b. Within the coverage territory.
terms of this Coverage Part; and
2. The coverage territory is:
2. The action is brought within 2 years after the date
on which the direct physical loss or damage a. The United States of America (including its
occurred. territories and possessions);
ISO Commerical Risk Services, Inc., 1983, 1987 Page 1 of 2

CP 00 90 07 88 Copyright,
Archive
83 of 109
2. After a loss to your Covered Property or Covered

b. Puerto Rico; and
Income only if, at time of loss, that party is one of
c. Canada. the following:
I. TRANSFER OF RIGHTS OF RECOVERY AGAINST a. Someone insured by this insurance;

OTHERS TO US
b. A business firm:
If any person or organization to or for whom we make
payment under this Coverage Part has rights
to re-
(1) Owned or controlled by you; or
cover damages from another, those rights are trans-
ferred to us to the extent of our payment. That That controls you; or
do everything necessary (2) owns or
person or organization must
to secure our rights and must do nothing after loss to
them. But may waive your rights against c. Your tenant.
impair you
another party in writing:
This will not restrict your insurance.
1. Prior to a loss to your Covered Property or Cov-
ered Income.
ISO Commerical Risk Services, Inc., 1983, 1987 Page 2 of 2

CP 00 90 07 88 Copyright,
Archive
84 of 109

COMMON POLICY CONDITIONS
All Coverage Parts included in this policy are subject to the following conditions.
A. CANCELLATION D. INSPECTIONS AND SURVEYS
1. The first Named Insured shown in the Decla- 1. We have the right to:
rations may cancel this policy by mailing or deliv-
ering to us advance written notice of cancellation. a. Make inspections and surveys at any time;
2. We may cancel this policy by mailing or delivering b. Give you reports on the conditions we find;
to the first Named Insured written notice of can- and
cellation at least:
c. Recommend changes.
a. 10 days before the effective date of cancella-
tion if we cancel for nonpayment of premium;
Or
2. We are obligated to make any inspections,
not
surveys, reports or recommendations and any
b. 30 days before the effective date of cancella- such actions we do undertake relate only to insur-
tion if we cancel for any other reason. ability and the premiums to be charged. We do not
make safety inspections. We do not undertake to
3. We will mail or deliver our notice to the first perform the duty of any person or organization to
Named Insured's last mailing address known to provide for the health or safety of workers or the
us.
public. And we do not warrant that conditions:
4. Notice of cancellation will state the effective date a. Are safe or healthful; or
of cancellation. The policy period will end on that
date. codes
b. Comply with laws, regulations, or
standards.
5. If this is cancelled, we will send the first
policy
Named Insured any premium refund due. If we
cancel, the refund will be pro rata. if the first 3. Paragraphs 1. and 2. of this condition apply not
Named Insured cancels, the refund may be less only to us, but also to any rating, advisory, rate
than pro rata. The cancellation will be effective service or similar organization which makes
even if we have not made or offered a refund. insurance inspections, surveys, reports or
recommendations.
6. If notice is mailed, proof of mailing will be suffi-
cient proof of notice. 4. Paragraph 2. of this condition does not apply to
any inspections, surveys, reports or recommenda-
B. CHANGES tions we may make relative to certification, under
state or municipal statutes, ordinances or regula-
This contains all the agreements between you
policy tions, of boilers, pressure vessels or elevators.
and us concerning the insurance afforded. The first
Named Insured shown in the Declarations is author-
ized to make changes in the terms of this policy with E. Premiums
our consent. This policy's terms can be amended
or
waived endorsement
only by issued by us and made a The first Named Insured shown in the Declarations:
part of this policy.
1. Is responsible for the payment of all premiums;
C. EXAMINATION OF YOUR BOOKS AND RECORDS and
We may examine and audit your books and records 2. Will be the payee for any return premiums we pay.
as they relate to this policy at any time during
the
and to three years afterward.
policy period up
IL 00 17 11 98 Copyright, Insurance Services Office, Inc., 1998 Page 1 of 2

85 of 109
Archive
be transferred to
Under This If you die, your rights and duties will
F. Transfer Of Your Rights And Duties but only while acting within
your legal representative Until
Policy the scope of duties as your legal representative.
not be your legal representative
is appointed, anyone having
Your rights and duties under this policy may in the of your property will have
transferred without our written consent except proper temporary custody
but only with respect to that
case of death of an individual named insured, your rights and duties
property.
Page 2 of 2
Copyright, Insurance Services Office, Inc., 1998
IL 00 17 11 98
Archive
86 of 109

PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT CHANGES THE POLICY.
OF PREMIUM
MINIMUM PREMIUM ENDORSEMENT PERCENT
This endorsement changes the CANCELLATION

condition in this policy to include the following:
of 35 % of the annual policy premium or $75, 804, which-

If you cancel this policy, a minimum premium
ever is greater, will be due and payable by you.
for us to cancel. If we can-
of premium will be considered a request by you
A. Your failure to make a timely payment
will be immediately due and payable;
cel for non-payment of premium, the minimum premium
at our discretion if:

B. Cancellation for non-payment of premium may be rescinded,
10 days of the effective date of
1. We choose to rescind cancellation, and you pay
us the full premium due within
cancellation; and
is in the same or better condition than at the time of
2. We have verification that the Covered Property
cancellation.
but after the
due is paid within 10 days of the effective date of cancellation,
If we rescind cancellation and the premium the date of cancella-
at our discretion, a lapse in coverage between
cancellation has become effective, there may be
tion and the date the premium is paid.
ALL OTHER TERMS AND CONDITIONS OF

THIS POLICY REMAIN UNCHANGED.
Page 1 of 1
CPR 2129 (03/03) Archive
87 of 109

EARTHQUAKE EXTENSION
The following is added to this policy:

A. We will pay for direct physical loss or damage due to:
seismic forces,
Earthquake, meaning any shaking or trembling of the crust of the earth caused by underground
or
1.
by breaking and shifting of rocks beneath the surface.
2. Volcanic eruption, meaning the expulsion, result of natural causes, of molten rock, rock fragments, gases,
as a
of the earth.
ashes, mud, lava flows, and other natural substances through an opening in the crust
or vol-
All earthquake or volcanic eruption that occurs within any 168 hour period will constitute a single earthquake
hour period begins, however, will not pay for loss or damage occur-
canic eruption. You may decide when the 168 we
date of this for loss occurring after the expiration date of this policy.
ring before the effective policy, or any
B. We will not pay for direct physical loss or damage due to:
1. Earth movement including landslide, mudflow, earth sinking, earth rising or shifting unless directly caused by
earthquake or volcanic eruption.
2. Sprinkler leakage, meaning the leakage or discharge from an automatic sprinkler system, including collapse of a
tank that is part of the system, due to earthquake or volcanic eruption.

for Earthquake where
C. The Limits of Insurance shown in the Declarations is a limit or amount per occurrence, except
an
annual aggregate applies. We will not, in any case, exceed this limit or amount in one disaster, casualty or event, no
matter how many locations are involved. This Limit of insurance applies unless a sublimit
is shown below:
Sub limit: $ 1,000, 000

be deducted
D. n/a % of the total values at risk at the time of loss or $ Refer to CPR-2218, whichever is greater, will
total value of prop-
from each adjusted claim due to earthquake or volcanic eruption. Total values at risk means the
at risk apply per location.
erty covered calculated in accordance with the provisions of this policy. Values
1. If this policy includes both property damage and business Income, the above limits will be the maximum amounts
collectible regardless of whether the loss involves property damage alone or both property damage and business
income.
in this
2. If any insurance other than concurrent covers the property insured in this policy, the deductible specified
loss damage which would under the
endorsement will apply in full against that portion of any claim for or we pay
of to the contrary of other insurance.
provisions of this policy, regardless any provisions any
the following:
The provisions of this endorsement apply to all locations covered by this policy, except
CPR 2155 (01/04) Page 1 of 1

88 of 109 Archive

THIS ENDORSEMENT CHANGES THE

POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL NAMED INSUREDS
The following are added to this policy as Named insureds:
- El Ad Group Florida LLC

- El Ad Residences at Mirarnar Lakes LLC
OF THIS POLICY REMAIN UNCHANGED.

ALL OTHER TERMS AND CONDITIONS
Page 1 of 1
89 of 109

THIS ENDORSEMENT CHANGES THE

POLICY. PLEASE READ IT CAREFULLY.
PROTECTIVE SAFEGUARDS
This endorsement modifies insurance provided under the following:
COMMERCIAL PROPERTY COVERAGE PART

FARM COVERAGE PART
*
SCHEDULE
Protective Safeguards
Prem. Bldg.
No. No. Symbols Applicable
All "P-1" Automatic Sprinkler System
1
1 All
Describe any "P-9:"

Operational in all Units.
WARRANTED: Smoke Detectors
on this endorsement, will be shown in the Declarations.

*
Information required to complete this Schedule, if not shown
Automatic Sprinkler System means:

A. The following is added to the:
a. Any automatic fire protective or extinguishing
Commercial Property Conditions
system, including connected:
Other
General Conditions in the Farm Property (1) Sprinklers and discharge nozzles;
—
Farm Provisions Form Additional

—
Coverages,
Conditions, Definitions (2) Ducts, pipes, valves and fittings;
General Conditions in the Mobile Agricultural (3) Tanks, their component parts and sup-
Form
Machinery and Equipment Coverage ports; and
Form mains.
General Conditions in the Livestock Coverage (4) Pumps and private fire protection
from automatic fire protec-
PROTECTIVE SAFEGUARDS (B) When supplied an
tive system:
are required
1. As a condition of this insurance, you
to maintain the protective devices or services list- (1) Non-automatic fire protective systems;
above. and
ed in the Schedule
2. The protective safeguards to which this

endorse- (2) Hydrants, standpipes and outlets.
ment applies are identified by the following
"P-2" Automatic Fire Alarm, protecting the en-
symbols: tire building, that is:
"P-1" Automatic Sprinkler System, including Connected to a central station; or

a.
related supervisory services.
Insurance Services Office, Inc., 1997

Page 1 of 2
IL 04 15 04 98 Copyright,
90 of 109
Archive
private fire STANDARD PROPERTY POLICY

b. Reporting to a public or
alarm station. FARM PROPERTY

CAUSES OF LOSS FORM
—
"P-3" Security Service, with a recording sys- AGRICULTURAL MACHINERY AND

rounds MOBILE
tem or watch clock, making hourly
the entire building, when the EQUIPMENT COVERAGE FORM
covering
premises are not in actual operation.
LIVESTOCK COVERAGE FORM
"P-4" Service Contract with a privately owned caused
We will not pay for loss or damage by or
fire department providing fire protection
from fire if, prior to the fire, you:
service to the described premises. resulting
"P-9" The protective system described in the 1. Knew of any suspension or impairment in any
above
Schedule. protective safeguard listed in the Schedule
and failed to notify us of the fact; or
section
B. The following is added to the EXCLUSIONS
listed
of: 2. Failed to maintain any protective safeguard
Schedule above, and over which you had
in the
CAUSES OF LOSS BASIC FORM
-
control, In complete working order.
BROAD FORM is shut off due

CAUSES OF LOSS Ifpart of art Automatic Sprinkler System
-
to breakage, leakage, freezing conditions

or opening
SPECIAL FORM will not be
CAUSES OF LOSS -
of sprinkler heads, notification to us
necessary if you can restore full protection within 48

MORTGAGE HOLDERS ERRORS AND OMISSIONS hours.
COVERAGE FORM
Page 2 of 2
Copyright, Insurance Services Office, Inc., 1997
IL 04 15 04 98
Archive
91 of 109


THIS ENDORSEMENT CHANGES THE POLICY.
FLORIDA CHANGES

PART
COMMERCIAL PROPERTY COVERAGE
paint water-
We will not include the value of
or
to the Standard
A. When this endorsement is attached material to determine:
CP 00 99 the term Coverage Part in proofing
Property Policy
this endorsement is replaced by the term Policy. Hail Deducti-
a. The amount of the Windstorm or
Coinsurance ble; or
B. The following provision applies when a
percentage is shown in the Declarations: applying

b. The value of Covered Property when
follows: the Coinsurance Condition.
Florida law states as
in this policy D. The LOSS PAYMENT Condition dealing with the

Coinsurance contract: The rate charged for covered
is based upon the use of the coinsurance clause number of days within which we must pay
the consent of the Insured. is replaced by the following:
attached to this policy, with loss or damage
of this
C. The following is added: Provided you have complied with all the terms
for covered loss or
Coverage Part, we will pay
is caused by or
If loss or damage to Covered Property damage:
exclusion ap-
results from Windstorm, the following
the sworn
plies in: (1) Within 20 days after we receive
proof of loss and reach written agreement
1. Broward County; with you; or
the sworn
2. Dade County; (2) Within 30 days after we receive
proof of loss and:
3. Martin County;
(a) There is an entry of a final judgment;
4. Monroe County; or
5. Palm Beach County; and There is a filing of an appraisal award

(b)
of the intra- with us.
6. Ali the areas east of the west bank
of:
Coastal Waterway in the Counties
E. Sinkhole Collapse
a. Indian River; and of the
1. Paragraph A.10., SINKHOLE COLLAPSE,
Causes of
Causes of Loss Basic Form and the
—
b. St. Lucie.
Loss Broad Form;
—
Windstorm Exterior Paint and Waterproofing

of COVERED CAUSES OF
Exclusion 2. Paragraph A.2.c.(8) Omis-
LOSS of the Mortgageholders Errors and
We will not pay for loss or damage to:, sions Coverage Form; and
of the
1. Paint; or 3. Paragraph A.3.h., SINKHOLE COLLAPSE,
Standard Property Policy
2. Waterproofing material;
are replaced by the following:
applied to the exterior of Buildings,
Page 1 of 2
Copyright, ISO Commercial Risk Services, Inc., 1994
CP 01 25 06 95 Archive
92 of 109
Sinkhole Collapse, meaning loss or damage F. Paragraph F.1. of DEFINITIONS of the Causes of
caused by the sudden sinking or collapse of land Loss Special Form is replaced by the following:
—
into underground empty spaces created by the

action of water on limestone or similar rock forma-
1. Sinkhole collapse means the sudden sinking or
collapse of land Into underground empty spaces
tions. This cause of loss does not include:
created by the action of water on limestone or
similar rock formations. This cause of loss does
a. The cost of filling sinkholes; or
not include:
b. Sinking or collapse of land into man-made a. The cost of filling sinkholes; or
b. Sinking or collapse of land into man-made
CP 01 25 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 2 of 2

Archive
93 of 109
LIMITATION OF LIABILITY ENDORSEMENT
FORM B
The following special terms and conditions apply to this policy:

A. The Limit of Insurance or amount of insurance shown in the Declarations page of this policy is a limit or amount per
"
occurrence, except for "earthquake" and "flood, if covered, where an annual aggregate applies. We will not pay more
than this limit or amount in one disaster, casualty, or event, no matter how many locations are involved.
B. The premium for this policy is based on the schedule or statement of values on file with us or attached to this policy. If
there is a loss under this policy, we will not pay more than the least of the following:
1. The actual adjusted amount of loss, minus the deductible(s) that applies;
2. The Limit of Insurance or amount of insurance per occurrence shown in the Declarations page of this policy or en-
dorsed onto this policy; or
3. The stated value for the specific property involved in the loss as shown on the latest statement of values on file
with us, minus the deductible(s) that applies.
CPR 2126 (10/01) Page 1 of 1

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94 of 109

"A"
EXCLUSION OF CERTAIN COMPUTER RELATED LOSSES
--

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED.
A. We will not pay for loss or damage, whether direct or indirect, to "electronic data processing equipment":
1. Arising from "computer virus" and/or "computer hacking";

covered location or your computer to a person or
2. Caused by the transfer or delivery of covered property from a but not lim-
on the basis of unauthorized or fraudulent instructions, including
place outside of a covered location not owned by you, or via any telecommunications trans-
ited to instructions transmitted by a computer, whether or
mission method;
research, replace or restore the information contained

on electronic or magnetic media;
3. Arising from costs to
of electronic recordings, or
4. Arising from electrical disturbance including electrical
or magnetic damage, disturbance
erasure of electronic recordings;
power surge, blackout, or brownout;

Arising from power supply disturbance including interruption power supply,
of
5.
as a result of loss to your Web Site operation

whether or not
6. During the period when your business is interrupted
maintained or operated by you and whether or not located at
the described premises;
of:
7. Arising from the failure, malfunction or inadequacy
a. Such "electronic data processing equipment" whether belonging to you or to others;

that directly or indirectly use or rely on, in any manner, such
b. Any products, and any services, data or functions to correctiy recognize, process, distinguish,
"electronic data processing equipment" due to the inability
interpret, or accept one or more dates or times.
An example is the inability of computer software to recognize
the year 2000; and/or
installation, maintenance, repair, replace-

8. Arising from any advice, consultation, design, evaluation, inspection,
ment or supervision provided or done by you or for you to determine, rectify or test for, any potential or actual
problems described in this endorsement.
event that contributes concurrently or in any se-
Such loss damage is excluded regardless of any other
or
cause or
quence to the loss or damage.

excluded by this policy results, then subject to all of its terms
B. However, if direct physical loss or damage not otherwise
loss or damage.
and conditions, we will only pay for the resulting direct physical
separate occurrence at each

C. Claims for resulting physical loss or damage at multiple locations will constitute a
location.
D. DEFINITIONS
data processing code or
1. "Computer virus" the introduction into
means a computer of any self-replicating electronic
other code that is intended to:
a. Result in the deletion, destruction, generation, or modification of data;
Page 1 of 2
95 of 109
b. Alter, contaminate, corrupt, degrade, or destroy the integrity, quality, or performance of data;
corruption of any hardware or process-

Damage, destroy, or cause malfunction, inadequacy, degradation,
or
c.
with hardware; or
ing, recording, or storage media used
network or web site.
d. Deny access to or services from your computer, your computer
intrusion by an individual or group of individuals, whether employed
2. "Computer hacking" means an unauthorized
network that can:
by you or not, into a computer or computer
a. Result in the deletion, destruction, generation, or modification of data;
b. Alter, contaminate, corrupt, degrade, or destroy the integrity, quality, or performance of data;
c. Result in the scanning or copying of data;
d. Cause damage, destruction, inadequacy, malfunction, degradation,

or corruption of any hardware or process-
ing, recording, or storage media used with hardware;

or
denial of services from your computer, your computer network, or web site.
e. Result in the denial of access to or
3. "Electronic data processing equipment" includes the following items:
a. Computer hardware, including microprocessors;
b. Computer application software;
c. Computer operating systems and related software;
d. Computer networks;
e. Microprocessors (computer chips) not part of any computer system;
f. Any other computerized or electronic equipment or components; or
that directly or indirectly use or rely upon, in any

g. Any other products, andany services, data or functions
a. through f. above. This includes any advice, consultation, design,
manner, any of the items listed In items
evaluation, inspection, installation, maintenance, repair, replacement or supervision provided or done by you
with items listed in a. through f. above.
or for you to determine, rectify or test for, any potential problems
ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN

UNCHANGED.
Page 2 of 2
96 of 109
CERTIFIED TERRORISM LOSS
1. The following definitions are made a part of this policy.

A. "Certified act of terrorism" means an act that is certified by the Secretary of the Treasury, in concurrence with the
Secretary of State and the Attorney General of the United States:
1. To be an act of terrorism;
2. To be a violent act or an act that is dangerous to human life, property, or infrastructure;
3. To have resulted in damage:

a. Within the United States; or
b. To an air carrier (as defined in section 40102 of title 49, United States Code); to a United States flag ves-
sel (or a vessel based principally in the United States, on which United States income tax is paid and
whose insurance coverage is subject to regulation in the United States), regardless of where the loss oc-
curs; or at the premises of any United States mission; and
4. To have been committed by an individual or individuals acting on behalf of any foreign person or foreign inter-
est, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect
the conduct of the United States Government by coercion.
B. "Certified terrorism loss" means loss that results from a "certified act of terrorism."
2. The "terms" of any terrorism exclusion or limitation in coverage that is part of or that is attached to this policy are
amended by the following provision:
This exclusion or limitation In coverage does not apply to "certified terrorism loss."
3. If the Secretary of the Treasury determines that the amount of "certified terrorism loss" has exceeded the maximum
annual liability as set forth by the Federal Terrorism Risk Insurance Act of 2002 or any amendments thereto, we will
not pay for any portion of "certified terrorism loss" that exceeds the maximum annual liability.
4. Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this policy pro-
vide coverage for any loss that would otherwise be excluded by this policy under:
A. Exclusions that address war, military action, or nuclear hazard; or
B. Any other exclusion.

5. The absence of any other terrorism endorsement does not imply coverage for any loss that would otherwise be ex-
cluded by this policy under:
CPR 2221 (02/03) Page 1 of 1

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97 of 109
TERRORISM EXCLUSION
1. We will not pay for loss, damage, cost or expense caused directly or indirectly by "terrorism" or any action taken to
control, prevent, or suppress terrorism. Such loss, damage, cost or expense is excluded regardless of any other cause
or event that contributes concurrently or in any sequence to this loss.
"Terrorism" for purposes of this exclusion means:
A. The disruption or threatened disruption of financial, governmental, transportation, communication, computer or
utility services which appears to be for political, religious, economic, cultural, ethnic, ecological or racial ends;
B. The use or threatened use of force, violence or criminal conduct which appears to be for
political, religious, eco-
nomic, cultural, ethnic, ecological or racial ends;
C. The use or threatened use of force, violence or criminal conduct for the apparent purpose of or with the result of
harming or intimidating a civilian population;
D. The use or threatened use of biological, chemical or nuclear substances for the apparent purpose of or with the
result of harming or intimidating a civilian population;
E. Any act or threatened act of force, violence or criminal conduct by any person or persons acting on behalf of or in
connection with any organization with a stated goal of overthrowing or influencing the policy of any government,
whether lawful or otherwise; and/or
F. Any act or threatened act of force, violence or criminal conduct that has been labeled, identified or described as a
terrorist act by the executive branch of the United States government.
2. Fire Exception
The following provision applies only where relevant state law requires coverage for fire losses resulting from acts of
terrorism, and where a premium for such has been paid.
If an act of terrorism results in fire, we will pay for the loss or damage caused by that fire. This exception for fire applies
only to direct loss or damage by fire to covered property. This exception does not apply to coverage for loss of
earnings, extra expense, or fire legal liability.
3. Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this policy
provide coverage for any loss that would otherwise be excluded by this policy under:

4. The absence of any other terrorism endorsement does not imply coverage for any loss that would otherwise be ex-
cluded by this policy under:
ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED,
CPR 2230 (05/03) Page 1 of 1

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98 of 109
CONDITIONAL TERRORISM EXCLUSION
(Relating to the Certified Terrorism Loss Endorsement already on this Policy.)
Applicability of the provisions of this endorsement.

A. The provisions of this endorsement will apply on the date one of the following situations first occurs:
1. The federal Terrorism Risk Insurance Program ("Program") established by the Terrorism Risk Insurance Act of
2002, terminates; or
2. The Program is renewed, extended or otherwise continued in effect without a requirement to make terrorism
coverage available to you and with changes that
a. Increase our statutory percentage deductible under the

Program for terrorism losses. (That deductible
determines the amount of all certified terrorism losses we must
pay in a calendar year, before the federal
government shares in subsequent payment of certified terrorism losses.); or
b. Decrease the federal government's statutory percentage share in

potential terrorism losses above such
deductible; or
c. Redefine terrorism or make insurance coverage for terrorism

subject to provisions or requirements that differ
from those that apply to other types of events or occurrences under this
policy.
The Program is scheduled to terminate at the end of December 31, 2005 unless
renewed, extended or otherwise
continued by act of Congress.
B. If the provisions of this endorsement become

applicable, CPR 2221 CERTIFIED TERRORISM LOSS is rescinded in
its entirety and will become void. Any other endorsements or
policy conditions pertaining to terrorism and a part of this
policy remain in effect until the expiration of this policy.
C. If the provisions of this endorsement do NOT become
applicable, any terrorism endorsement already endorsed to this
policy that addresses "certified acts of terrorism" will continue in effect unless we notify you of changes to that
endorsement in response to federal law.
CPR 2257 (09/04) Page 1 of 1

Archive
99 of 109
FLORIDA CHANGES - CANCELLATION AND NONRENEWAL

BOILER AND MACHINERY COVERAGE PART
CAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART
COMMERCIAL INLAND MARINE COVERAGE PART
COMMERCIAL PROPERTY COVERAGE PART
CRIME AND FIDELITY COVERAGE PART
FARM COVERAGE PART
A. Paragraph 2. of the Cancellation Common Policy (2) On the basis of filing of claims for partial
Condition is replaced by the following: loss caused by sinkhole damage, regard-
less of whether this policy has been the
2. Cancellation For Policies In Effect 90 Days Or subject of a sinkhole claim, or on the ba-
Less sis of the risk associated with the occur-
rence of such a claim. However, we may
a. If thispolicy has been in effect for 90 days or cancel this policy if:
less, may cancel this policy by mailing or
we
delivering to the first Named Insured written (a) The total of such property insurance
notice of cancellation, accompanied by the claim payments for this policy ex-
specific reasons for cancellation, at least: ceeds the current policy limits of cov-
erage for property damage; or
cellation if we cancel for nonpayment of (b) You have failed to repair the structure
premium; or in accordance with the engineering
recommendations upon which any
(2) 20 days before the effective date of can- loss payment or policy proceeds were
cellation if we cancel for any other rea- based.
son, except we may cancel immediately if
there has been: B. The following is added to the Cancellation Common
Policy Condition:
(a) A matorial misstatement or misrepre-
sentation; or 7. Cancellation For Policies In Effect For More
Than 90 Days
(b) A failure to comply with underwriting
requirements established by the a. If this policy has been in effect for more than
insurer. 90 days, we may cancel this policy only for
one or more of the following reasons:
b. We may not cancel:
(1) Nonpayment of premium;
(1) On the basis of property insurance claims
that are the result of an act of God, unless (2) The policy was obtained by a material
we can demonstrate, by claims frequency misstatement;
or otherwise, that you have failed to take
action reasonably necessary as request- (3) There has been a failure to comply with
ed by usprevent recurrence of damage
to underwriting requirements established by
to the insured property; or the insurer within 90 days of the effective
date of coverage;
IL 02 55 07 02 © ISO Properties, Inc., 2001 Page 1 of 2

Archive
100 of 109
(4) There has been a substantial change in (a) Cancellation is for one or more of the
the risk covered by the policy; reasons stated in 7.a.(2) through
7.a.(7) above; and
(5) The cancellation is for all insureds un-
der such policies for a given class of (b) This policy covers a residential struc-
insureds; ture or its contents.
(6) On the basis of property insurance claims C. The following is added:

that are the result of an act of God, if we
can demonstrate, by claims frequency or NONRENEWAL
otherwise, that you have failed to take ac-
tion reasonably necessary as requested 1. If we decide not to renew this policy we will mail or
deliver to the first Named Insured written notice of
by us to prevent recurrence of damage to
the insured property; or nonrenewal, accompanied by the specific reason
for nonrenewal, at least:
(7) On the basis of filing of claims for partial a. 90 days prior to the expiration of the policy if
loss caused by sinkhole damage, or on
this policy covers a residential structure or its
the basis of the risk associated with the
occurrence of such a claim, if:
contents; or
b. 45 days prior to the expiration of the policy for

(a) The total of suchproperty insurance all other
claim payments for this policy ex- policies.
ceeds the current policy limits of cm-
2. Any notice of nonrenewal will be mailed or deliv-
erage for property damage; or ered to the first Named Insured's last mailing ad-
dress known to us. If notice is mailed, proof of
(b) You have failed to repair the structure
mailing will be sufficient proof of notice.
in accordance with the engineering
recommendations upon which any 3. We may not refuse to this
renew policy:
loss payment or policy proceeds were
based. a. On the basis of property insurance claims that
are the result of an act of God, unless we can
b. If we cancel this policy for any of these rea- demonstrate, by claims frequency or other-
sons, we will mail or deliver to the first Named wise, that you have failed to take action rea-
Insured written notice of cancellation, accom- sonably necessary as requested by us to pre-
panied by the specific reasons for cancella- vent recurrence of damage to the insured
tion, at least: property; or
(1) 10 days before the effective date of can- b. On the basis of filing of claims for partial loss
collation if cancellation is for nonpayment caused by sinkhole damage, regardless of
of premium; or whether this policy has been the subject of a
sinkhole claim, or on the basis of the risk as-
45 days before the effective date of sociated with the occurrence of such a claim.
(2) can-
cellation if: However, we may refuse to renew this policy
if:
(a) Cancellation is for one or more of the

reasons stated in 7.a.(2) through (1) The total of such property insurance claim
7.a.(7) above; and payments for this policy exceeds the cur-
rent policy limits of coverage for property
(b) This policy does not cover a residen- damage; or

tial structure or its contents; or
(2) You have failed to repair the structure in
accordance with the engineering recom-
mendations upon which any loss payment
cellation if:
or policy proceeds were based.
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101 of 109

Peoria, Illinois 61615
SERVICE OF SUIT ENDORSEMENT
It is understood and agreed that in the event of the failure of the

Company to pay any amount claimed to be due
hereunder, the Company, at the request of the Named Insured, will submit to the jurisdiction of a court of competent
jurisdiction within the United States of America. The foregoing shall not constitute a waiver of the right of the Company to
remove, remand or transfer such suit to any other court of competent jurisdiction in accordance with the applicable statutes
of the state or United States per-tinent hereto. In any suit instituted against them upon this contract, the
Company will
abide by the final decision of such court or of any appellate court in the event of an
appeal.
It is further agreed that service of process In such suit may be made upon the Superintendent,
Commissioner, or Director
of Insurance or other person specified for that purpose in the statute or his successor or successors in office as their true
and law-ful attorney upon whom may be served any lawful process in any action, suit, or
proceeding instituted by or on
behalf of the Named Insured or any beneficiary hereunder arising out of this contract of insurance. The
Company hereby
designates Michael J. Stone, President,
9025 N. Lindbergh Drive, Peoria, Illinois 61615 as the person to whom the said
Superintendent, Commissioner, or Director
of Insurance is authorized to mail such process or a true copy thereof, in
compliance with the applicable statutes governing
said service of process in the state or jurisdiction in which a cause of action under this contract of insurance arises.
RIL 099
•
(01/01) Archive Page 1 of 1

102 of 109
NOTICE TO OUR BROKERS AND AGENTS

OF OUR CLAIM NOTIFICATION PROCEDURE
As part of our continuing effort to provide you with the best service available,
ALL CLAIMS under this policy are to be reported immediately to:

9025 N. Lindbergh Drive
Peoria, IL 61615
Phone: (800) 444-0406

Fax: (309) 692-6796
Non-business Hours Emergency Phone: (800) 281-3580
R1L 2108 (05/99) 1 of 1

Page
Archive
103 of 109
EXHIBIT
104 of 109
Case 0:09-cv-60723-AJ Document 1-2 .f 50
E0erAoop Fb5p Docket 05/15/2009 Pag- A
0
--. -‘
) Policy Declarations
.
.
.1 IL
. T}A
Policy No. D35910177 001 Renewal of: NEW
NAMED INSURED & MAILING ADDRESS

El Ad Residences at Miramar
2480 West Preserve Way
Miramar FL 33025
30LICY PERIOD
Vhen Coverage Begins: 09/07/2005 12:01 A. M. Standard Time At Named Insured's Address
Vhen Coverage Ends: 09/07/2006 12:01 A. M. Standard Time At Named Insured's Address
INSURING COMPANY Producer's Name & Address:

SWETT & CRAWFORD CORP
2 WALL STREET
Westchester Surplus Lines 10TH FLOOR
NEW YORK NY 10005
Insurance Company
Producer No: 65431W
THIS INSURANCE IS ISSUED PURSUANT TO

THE FLORIDA SURPLUS LINES LAW.
PERSONS INSURED BY SURPLUS LINES
CARRIERS DO NOT HAVE THE PROTECTION
OF THE FLORIDA INSURANCE GUARANTY
ACT TO THE EXTENT OF ANY RIGHT OF
RECOVERY FOR THE OBLIGATION OF AN
INSOLVENT UNLICENSED INSURER.
Cc3 [ 11 1 Ta
MAY 12 2008
ATTACHED FORMS
This policy is completed by the following: BB-5W58a (05/98) and forms and endorsements attached thereto.
Authorization Information
Countersigned by:
NO FLATCANCE_ I -
I
•
hete,
SLPD (4/03)
105 of 109
EXHIBIT "B"
) •
ACE USA,
Common Policy Declarations
Company Name: Westchester Surplus Lines Insurance Company
SYM: FS Policy ID: D35910177 001
Named Insured & Mailing Address Producer's Name & Address
El Ad Residences at Miramar
SWETT & CRAWFORD CORP
2480 West Preserve Way 2 WALL STREET
Miramar FL 33025 10TH FLOOR
NEW YORK NY 10005
65431W-NEW
General Policy Policy Period: 12 months

information
Business Description: Condominiums
When Coverage Begins: 09/07/2005 12:01 A.M. Standard Time at Named Insured's Address
When Coverage Ends: 09/07/2006 12:01 A.M. Standard Time at Named Insured's Address
In return for the payment of the

premium, and subject to all the terms of this policy, we
agree with you to provide the insurance as stated in this policy.
The premium for this policy is indicated below next to the
applicable Coverage Form(s).
Coverage Form Premium
Commercial Property Excess Manuscript Coverage Part
55, 000.00
Total Premium: $ 55, 000.00

Minimum Earned Premium: $ 13, 750.00
Attached Forms See Forms Schedule CPfs2

information
Authorization Countersigned At:

Information
Date: 10/25/2005
JS/pgm
Authorized Agent:
These Declarations together with the Coverage

Declarations, Common Policy Conditions and
Page 1 of 1 Coverage Conditions (if applicable), Coverage Form(s) and Forms and Endorsements, if any, issued
Form BB-5W58a (12/95) to form a part thereof, complete the above numbered
policy.
106 of 109
) t )
EXCESS SCHEDULE & MANUSCRIPT FORM
ITEM
1. TITLE OF ASSURED: El Ad Residences at Miramar

(See ACE "A")
2. ADDRESS OF ASSURED: 2480 West Preserve Way

Miramar FL 33025
3. PERILS COVERED: Risks of direct physical loss or damage excluding

Earthquake and Flood and Earthquake Sprinkler
Leakage per Primary Policy (Mt. Hawley insurance
Company Policy No. MCP0140064) and forms and
endorsements attached to this policy.
4. PROPERTY INSURED: Buildings, Business Personal Property, Business Income

including Extra Expense and Rental Value per Primary
Policy (Mt. Hawley Insurance Company Policy No.
MCP0140064) and schedule on file with Westchester
Surplus Lines Insurance Company Policy No.
035910177 001.
5, PERIOD OF INSURANCE: 09/07/2005 To 09/07/2006
6. PREMIUM: $55, 000.00 subject to a minimum earned premium in the

amount of $13, 750.00.
7. PRIMARY INSURER(S): I) Mt. Hawley insurance Company

Policy No. MCP0140064
8. (A) PRIMARY LIMITS: $2, 000, 000 per occurrence and in the annual aggregate
as respects Windstorm
(B) UNDERLYING DEDUCTIBLES:
ALL PERILS EXCEPT: $10, 000 per occurrence

EARTHQUAKE: N/A
FLOOD: N/A
WINDSTORM: 3% per building for windstorm
9. EXCESS INSURER: Westchester Surplus Lines Insurance Company

Policy No. D35910177 001
ACE092 (05-99)
107 of 109
)
10. EXCESS 'LIMITS: $8, 000, 000 per occur ce excess of $2, 000, 000 per
occurrence exce ^'.500, 000 p:r occurrence and In the
annual aggregate as: • -c Windstorm excess of
$2, 000, 000 per occurrence and In the annual aggregate
as respects Windstorm
11. NOTIFICATION OF CLAIMS TO: ACE Westchester Specialty Group

Post Office Box 100008
Roswell, GA 30077
ACE092 (05-99)
108 of 109
09-607e2a0C41164ORRANUMGALII-EY. Entered on FLSD Docket 05/15/2009 FIP-45W5016,350
ELECTRD NIC
c.JS 44 (Rev. 2/08) CIVIL" COVER SHEET

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as r May 15, 2009
is for the use of the Clerk szi
by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, required
NOTICE: Attorneys MUST Indicate All Re-filed C
F
the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)
S,-11EVEN1' M. &RI MORE

'
DEFENDANTS
(a) PLAINTIFFS
COMPANI—
I. (CA R K U.S. WIN CT
op?, 0 Fa Fj....A.
EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM MT. HAWLEY INSURANCE
ASSOCIATION, INC. SURPLUS LINES INSURANCE COMPANY
Plaintiff BROWARD County of Residence of First Listed Defendant
(b) County of Residence of First Listed
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE. IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT

(C) Attorney's (Firm Name, Address, and Telephone Number)
LAND INVOLVED.
Daniel S. Rosenbaum, Esq., Katzman Garfinkel Rosenbaum

250 Australian Ave. S., Ste 500, West Palm Beach, FL 33401 Attorneys (If Known)
(561) 653-2900; drosenbaum@kgrlawfirm.com
(d) Check County Where Action Arose: 0 MIAMI- DADE 0 MONROE 16 BROWARD 0 PALM BEACH 0 MARTIN 0 ST. LUCIE 0 INDIAN RIVER 0 OKEECHOBEE
HIGHLANDS
II. BASIS OF JURISDICTION (Place an "X" in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES(Place an "X" in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)

PTF DEF PTF DEF
0 I U.S. Government 0 3 Federal Question
Plaintiff (U.S. Government Not a Party) Citizen of This State cif 1 0 I Incorporated or Principal Place 46 4 0 4
of Business In This State
0 2 U.S. Government /3 4 Diversity Citizen of Another State 0 2,t1 2 Incorporated and Principal Place 0 5 l0 5
of Business In Another State
Defendant
(Indicate Citizenship of arties in Item III)
4,47 CV 407a3
0 6
AtS Coinin Citizen or Subject of a 0 3 0 3 Foreign Nation o 6
Foreign Country
FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES I

I CONTRACT TORTS
g 110 Insurance PERSONAL INJURY PERSONAL INJURY 0 610 Agriculture 0 422 Appeal 28 USC 158 0 400 State Reapportionment
0 362 Personal Injury 3 620 Other Food & Drug 0 423 Withdrawal 0 410 Antitrust
0 120 Marine 3 310 Airplane -
0 315 Airplane Product Med. Malpractice 0 625 Drug Related Seizure 28 USC 157 3 430 Banks and Banking
0 130 Miller Act
365 Personal Injury of Property 21 USC 881 0 450 Commerce
0 140 Negotiable Instrument Liability 0 -
0 150 Recovery of Overpayment 0 320 Assault, Libel & Product Liability 0 630 Liquor Laws I PROPERTY RIGHTS 3 460 Deportation
0 640 R.R. & Truck 0 820 Copyrights 0 470 Racketeer Influenced and
& Enforcement ofludgment Slander 0 368 Asbestos Personal
0 330 Federal Employers' Injury Product 0 650 Airline Regs. 0 830 Patent Corrupt Organizations
0 151 Medicare Act
0 840 Trademark 0 480 Consumer Credit
0 152 Recovery of Defaulted Liability Liability 0 660 Occupational
Safety/Health 3 490 Cable/Sat TV
Student Loans 0 340 Marine PERSONAL PROPERTY
0 370 Other Fraud 0 690 Other 0 810 Selective Service
(Excl. Veterans) 0 345 Marine Product
0 153 Recovery of Overpayment Liability 0 371 Truth in Lending I LABOR SOCIAL SECURITY 0 850 Securitics/Commodities/
0 380 Other Personal 0 710 Fair Labor Standards 0 861 HIA(1395ff) Exchange
of Veteran's Benefits 0 350 Motor Vehicle
Property Damage Act Lung (923)
0 862 Black 0 875 Customer Challenge
0 160 Stockholders' Suits 0 355 Motor Vehicle
720 Labor/Mgmt. Relations 0 863 DIWC/DIWW (405(g)) 12 USC 3410
0 190 Other Contract Product Liability 0 385 Property Damage 0
0 360 Other Personal Product Liability 0 730 Labor/Mgmt.Reporting 0 864 SS1D Title XVI 0 890 Other Statutory Actions
0 195 Contract Product Liability
0 196 Franchise Injury & Disclosure Act 0 865 RSI (405(g)) 0 891 Agricultural Acts
740 Railway Labor Act FEDERAL TAX SUITS 0 892 Economic Stabilization Act
I REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS 0
0 (U.S. Plaintiff
870 Taxes 0 893 Environmental Matters
0 210 Land Condemnation 0 441 Voting 0 510 Motions to Vacate 0 790 Other Labor Litigation
Sentence 0 791 Empl. Ret. Inc. Security Defendant)
or 0 894 Energy Allocation Act
0 220 Foreclosure 0 442 Employment
Act 0 871 IRS Third Party 0
Habeas Corpus:
---
0 230 Rent Lease & Ejectment 0 443 Housing/ 895 Freedom of Information Act
Accommodations 0 530 General 26 USC 7609
3 240 Torts to Land
I I IMMIGRATION 0 900 Appeal of Fee Determination
0 245 Tort Product Liability D 444 Welfare 0 535 Death Penalty
Under Equal Access to Justice
445 Amer. w/Disabilities -
462 Naturalization
0 290 All Other Real Property 0 0 540 Mandamus & Other 0 . •
Employment Application
446 Amer. w/Disabilities -
0
463 Habeas Corpus-Alien
0 0 550 Civil Rights Detainee
Other
465 Other Immigration 0
950 Constitutionality of State
0 440 Other Civil Rights 0 555 Prison Condition 0 Statutes
Actions
alto District
V. ORIGIN (Place an "X" in One Box Only) Transferred from Ikuprefro
ill 1 Original 0 2 Removed from Cl 3 Re-filed- n 4 Reinstated or n
—
s
- another district CI 6 Multidistrict
Litigation
0 7 Maistratine
Proceeding State Court (see VI below) Reopened (specify) Judgment
a) Re-filed Case 0 YES,p NO b) Related Cases 0 YES 7 NO

VI. RELATED/RE-FILED
(See instructions
CASE(S). second page): JUDGE DOCKET NUMBER
Cite the U.S. Civil Statute under which you and Write Brief Statement of Cause (Do not cite jurisdictional statutes unless
are filing a
diversity):
VII. CAUSE OF ACTION 28 USC 1332. There is complete diversity of citizenship and the amount in controversy exceeds $75, 000
exclusive of interest. costs and attorney's fees. CI
LENGTH OF TRIAL via 10 days estimated (for both sides to try entire case)
0 DEMAND $ CHECK YES only if demanded in complaint:
VIII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION
COMPLAINT: UNDER F.R.C.P. 23 JURY DEMAND: 94 Yes 0 No
.....-----,
ABOVE INFORMATION IS TRUE & CORRECT TO SIGN •F ATTORNEY OF

' '
CORD DATE
THE BEST OF MY KNOWLEDGE ATUk I •••^••^.-
May 14, 2009

IIIII6.... PA zmuri......
• : 0 FIC USE
V"11111111111^Y
ONLRECEIPT .
AMOUNT #
109 of 109,

EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC. V. MT. HAWLEY INSURANCE COMPANY Et Al Complaint

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EL-AD RESIDENCES AT MIRAMAR CONDOMINIUM ASSOCIATION, INC. V. MT. HAWLEY INSURANCE COMPANY Et Al Complaint

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Case 0:09-cv-60723-AJ Document 1 Entered on FLSD Docket 05/15/2009

UNITED STATES DISTRICT COURT

09-60723-C iv-J ORDAN/MCALI LEY

MT. HAWLEY INSURANCE COMPANY,

COMPANY ("WESTCHESTER") and states:

1. This is an action for declaratory judgment, including supplemental relief,

of $75, 000.00 exclusive of interest, costs and attorneys' fees.

KATZMAN GARFINKEL ROSENBAUM LLP

El-Ad Residences v. Mt. Hawley and Westchester

2. Pursuant to 28 U.S.C. §1332, this Court has subject matter jurisdiction

3. At all material times, RESIDENCES was a condominium association and

RESIDENCES has its principal place of business in Broward County, Florida.

to transact insurance in Florida.

5. At all material times, MT. HAWLEY transacted business in Broward

6. At all material times, WESTCHESTER was a foreign corporation and

eligibility to transact insurance in Florida.

7. At all material times, WESTCHESTER transacted business in Broward

8. MT. HAWLEY issued Policy No. MCP0140064, which provided property

Contract") are attached as Composite Exhibit "A".

El-Ad Residences v. Mt. Hawley and Westchester

9. WESTCHESTER issued Policy No. D35910177 001, which provided

property coverage to RESIDENCES of $8 million per occurrence in excess of $2 million

Insurance Contract") is attached as Exhibit "B"1.

Westchester Insurance Contract (collectively the "Insurance Contracts") are to provide

commercial residential property coverage to the named insured, RESIDENCES, for

in of the first layer.

the first layer of coverage.

11. The Westchester Insurance Contract adopts and incorporates by

Westchester Insurance Contract. With respect to the material provisions contained

terms or conditions. WESTCHESTER has also, through the Westchester Insurance

Contract, expressly adopted and incorporated by reference, the separate "windstorm"

deductible contained within the Westchester Insurance Contract.

Florida, including RESIDENCES.

13. On or about October 24, 2005, RESIDENCES sustained significant

hurricane damages to its residential condominium property as a result of Hurricane

14. RESIDENCES timely reported the damages to the Defendants.

15. Following Hurricane Wilma, MT. HAWLEY and WESTCHESTER had an

opportunity to inspect the damages to the insured property.

obligations to do so under Section 627.70131, Florida Statutes, and the Insurance

residential property located in Broward County, Florida.

have been waived.

19. This is an action by RESIDENCES against MT. HAWLEY and

Chapter 86, Florida Statutes.

KATZMAN GARFINKEL ROSENBAUM LLP

El-Ad Residences v. Mt. Hawley and Westchester

20. RESIDENCES realleges and reavers the allegations contained in

paragraphs 1 through 18 above, as if fully set forth herein.

Hurricane Wilma notwithstanding MT. HAWLEY's and/or WESTCHESTER's failure to

RESIDENCES supplemental relief to fully compensate RESIDENCES for all of its

hurricane related damages under Chapter 86, Florida Statutes.

22. RESIDENCES also seeks a declaratory judgment that the provision

of the separate deductible vague, ambiguous. Moreover, the failure to state

ambiguous. Because the separate deductible is vague, ambiguous, and otherwise

El-Ad Residences v. Mt. Hawley and Westchester

violates Section 627.701, Florida Statutes, it is unenforceable and/or should be

construed against MT. HAWLEY and WESTCHESTER. Plaintiff further and

deductible can be ascertained, it must be construed to indicate that the maximum

under the Mt. Hawley Insurance Contract.

Insurance Contracts; the total amount of the covered damages RESIDENCES

sustained from Hurricane Wilma; MT. HAWLEY's and WESTCHESTER's duties to

to be enforceable, the amount of the separate hurricane deductible to be applied in this

24. Paragraphs E.4 and 0.3 (form CP 00 17 04 02) as well as paragraph D