Additional Coverage

Collapse - DOAS will pay for loss caused by or resulting from direct physical loss involving collapse of a Covered Building or any part of a Covered Building caused by one of more of the following:

• Fire: Lightning: explosion; windstorm: hail; smoke; aircraft, watercraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment, sinkhole collapse; volcanic action; earth movement; flood; falling objects; weight of ice, snow or sleet; water damage; “burglary”; all only as covered in this Coverage part.
• Decay that is hidden from view, unless the presence of such decay is known to the Covered Party prior to collapse;
• Insect or vermin damage that is hidden from view, unless the presence of such damage is known to the Covered Party prior to collapse;
• Weight of people or personal property, including non “state owned” property;
• Weight of rain that collects on a roof; and
• Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of construction, remodeling or renovation. However, if the collapse occurs after construction, remodeling or renovation is complete and is caused by a cause of loss listed in all the above, DOAS will pay for the loss or damage even if use of defective material or methods, in construction, remodeling or renovation, contributes to the collapse.

Collapse does not include normal settling, cracking, shrinkage, bulging or expansion.

Debris Removal - The most DOAS will pay to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss will be 25% of the amount DOAS pays for direct physical loss or damage to the Covered Property that has sustained loss or damage; however, the most DOAS will pay for the total of direct physical damage plus debris removal expense at the Covered Property location is the Covered Property location value scheduled in “BLLIP” plus $50,000 This Additional Coverage does not apply to costs to extract “pollutants” from land or water; remove, restore or replace polluted land or water; or removing landscaping, trees, shrubs and other outside vegetation unless resting upon or on a covered location.

Preservation of Property – If it is necessary to move Covered Property from a premises described in the “Property Register” to preserve it from loss or damage by a Covered Cause of Loss, DOAS will pay you for any Covered Cause of Loss to that Covered Property while it is in transit or while temporarily stored at another location

Fire Department Service Charge – If a fire department is called to save or protect Covered Property from a Covered Cause of Loss, DOAS will pay you for your liability for fire department service charges that you assume by contract or agreement prior to loss or are required to pay by local ordinance

Limited Radioactive Contamination – DOAS covers Covered Property other than nuclear reactors or their fuel, against direct loss or damage caused by sudden and accidental radioactive contamination, provided such radioactive contamination arises out of materials on State premises.

Increased Cost of Construction (Code upgrades) - In the event of loss to a covered building or structure caused by a Covered Cause of Loss, DOAS will pay you for the additional reconstruction costs related to the minimum improvements required to maintain a certificate of occupancy.

Business Interruption - DOAS will reimburse the Actual Loss of Income Sustained, less any non-continuing expenses and charges, resulting from direct physical loss, damage or destruction to insured Property by a Covered Cause of Loss after a 72 Hour Waiting Period. Business Interruption Worksheets must be completed and submitted to DOAS for approval. Worksheets are accepted once a year during the renewal cycle.

Business Interruption does not insure against loss due to: any consequential or remote loss, suspension, cancellation, lapse of any lease, contract, license or services rendered or not rendered during the term of this Agreement.

Extra Expense - DOAS will reimburse the reasonable and necessary extra expenses incurred by a Covered Party resulting from direct physical loss, damage, or destruction to insured Property by a Covered Cause of Loss contained in this Agreement not to exceed the greater of $50,000 or 15% of the total insured property values in BLLIP affected by the covered loss occurrence.

Measurement of Loss:

• Extra expenses to temporarily continue as nearly normal as practical the conduct  of your business; and
• Extra costs of temporarily using property or facilities of your agency or others, less any value remaining at the end of the term of this Agreement for property obtained in connections with the above.

Extra Expense EXCLUSIONS:

• Any loss of income.
• Costs that normally would have been incurred in conducting the business during the same period had no physical loss or damage occurred.
• Cost of permanent repair or replacement of property that has been damaged or destroyed.
• Any expense recoverable elsewhere in this Agreement.

Note:  Normal as referenced above means the condition that would have existed had no physical loss or damage occurred.

Rental Value – “Rental Value” loss sustained by a Covered Party resulting directly from the necessary untenantability caused by loss, damage, or destruction by any Covered Cause of Loss to real or personal property but not exceeding the reduction in “rental value” less charges and expenses which do not necessarily continue during the period of untenantability.

Experience of the business in determining the amount of “rental value” covered hereunder for the purposes of ascertaining the amount of loss sustained, due consideration will be given to the rental experience before the date of damage or destruction and to the probable experience thereafter had no loss occurred.

With respect to alterations, additions, and property while in the course of construction, erection, installation or assembly, due consideration will be given to the available rental experience of the business after the completion of the construction, erection, installation or assembly.

Provisions Applicable to Extra Expense & Rental Value

Period of Recovery:  The length of time for which loss may be claimed by a Covered Party:

• Will not exceed such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair or replace such part of the property as has been destroyed or damaged;
• and, such additional length of time to restore your business to the condition that would have existed had no loss occurred, commencing on the date on which repair, replacement or rebuilding of such part of the property as has been damaged is actually completed; but in no event for more than one year thereafter from some commencement date;
• with respect to alterations, additions, and property while in the course of construction, erection, installation or assembly will be determined as provided above but such determined length of time will be applied to the experience of the business after the business has reached its planned level of production or level of business operation;
• will commence with the date of such loss or damage.

Special Exclusions:  This section of the Agreement does not insure against any increase of loss which may be occasioned by the suspension, lapse, or cancellation of any lease, license, contract, or order; nor for any increase of loss due to interference at your premises by strikers or other persons with rebuilding, repairing, or replacing the property damaged or destroyed, or with the resumption or continuation of business, or with the re-occupancy of the premises; nor for any loss occurring to property in transit off premises.

Expense to Reduce Loss: This Agreement also covers such reasonable expenses as are necessarily incurred for the purpose of reducing any loss under this Agreement, even though such expenses may exceed the amount by which the loss under this Agreement is thereby reduced.

Extension of Coverage:  This Agreement, subject to all provisions, also insures against loss resulting from damage to or destruction by the Covered Causes of Loss to:  electrical, steam, gas, water, telephone, and other transmission lines and related plants, substations and equipment situated on or within  one thousand feet of the Covered Property.

Interruption by Civil Authority: This Agreement is extended to cover the loss sustained during the period of time when, as a direct result of a Covered Cause of Loss, access to real or personal property is prohibited by civil authority. This extension of coverage starts from the date of the loss for a period not to exceed 30 days.

Ingress/Egress:  This Agreement is extended to cover the loss sustained during the period of time when, as a direct result of a Covered Cause of Loss, ingress to or egress from Covered Property is thereby prevented.  This extension of coverage starts from the date of the loss for a period not to exceed 60 days.

Electronic Data Processing Systems, Media and Equipment

Personal property covered under this coverage section includes:

• Electronic Data Processing Equipment, Electronic Data Processing Media, Accounts Receivable and Valuable Papers;
• Electronic Data Processing Media duplicate while stored at an unnamed location for a limit of coverage not to exceed $100,000 per loss;
• “Extra Expense” incurred resulting from loss to contents by any of the Covered Causes of Loss described herein, not to exceed $25,000;

Covered Causes of Loss under this Coverage sections includes: All risk of direct physical loss of or damage to property described herein, except loss or damage caused by or resulting from:

• Wear and tear, inherent vice, deterioration, rust, corrosion, insects or vermin;
• Error in machine programming or instructions to the machines;
• Error, omission or deficiency in design, plan, specification or workmanship.
• Theft, unless caused by “burglary”.  A police report must be provided.
• Computer virus.              

Valuation

• Electronic Data Processing systems and equipment will be paid for at “replacement cost”, if not repaired or replaced then “actual cash value”.
• Electronic Data Processing Media will be paid for at “replacement cost”; if not repaired, replaced or restored within two years from the date of loss, the blank value of the electronic data processing media.
• Valuable Papers and Records will be paid for based on what is determined to be the lesser cost:  the cost to repair or restore the item to the condition that existed immediately prior to the loss; or the cost to replace the item.

Definitions

• Electronic  Data Processing Equipment means electronic data processing systems which are a network or equipment, components and related peripheral equipment capable of accepting information, processing it according to a plan and producing the desired results.
• Electronic Date Processing Media means materials on which data is recorded, such as tapes, disc packs, punch cards or other recording devices including the information (data) recorded thereon.
• Valuable Papers and Records include unconverted data.

Boiler and Machinery - The Covered Cause of Loss under Boiler and Machinery coverage is the direct physical loss or damage as a result of an “accident”. Without an “accident”, there is no coverage. The most DOAS will pay for any one covered Boiler and Machinery loss under this Agreement is $250,000 per accident, per occurrence. Should a Boiler and Machinery loss under this Agreement exceed $250,000 the policy provisions contained in the excess Lexington Manuscript Policy purchased by DOAS will dictate any additional limits of Boiler and Machinery coverage available at the time of loss.

Accident means a fortuitous event that causes direct physical damage to “covered equipment”.  The event must be one of the following:  explosion, other than combustion explosions, of steam boilers, steam piping, steam engines or steam turbines.
                               
Covered Equipment means:  boilers, steam piping, unfired vessels which, during normal usage, operate under vacuum or pressure, other than the weight of the content.
                                               
Insurance provisions pertaining to Boilers and Machinery located in Covered Property structures are on file in the DOAS/RM Office.

Limited Coverage – Self-propelled vehicles and trailers tagged for road use – DOAS will pay for direct physical loss or damage to “state owned” self-propelled vehicles and trailers tagged for road use, when situated on the Covered Party’s insured premises as described in “BLLIP”; where the cause of loss is due to fire, lightning, explosion, windstorm, smoke, riot or civil commotion, vandalism, volcanic action, sinkhole collapse, earth movement , flood, or falling objects.

Limit of Coverage – The most DOAS will pay for a covered cause or loss is the lesser of:

• The “actual cash value” of the damaged Self-propelled vehicles and trailers tagged for road use as of the time of the loss; or
• The cost of repairing or replacing the damaged Self-propelled vehicles and trailers tagged for road use with like kind and quality.

Deductible -  for covered loss or damage to Self-propelled vehicles and trailers tagged for road use is $50,000 per loss occurrence.

Coverage Extension – DOAS automatically extends coverage to any new “state owned” building, structure or personal property you acquire during the fiscal year. Newly acquired “state owned” building, structures and personal property values totaling in excess of $50,000,000 MUST be reported to DOAS within 60 days of acquisition in order to satisfy reporting requirements imposed by the State’s commercial excess property insurance companies.