Orange County NC Website
Browse       Search
33 <br /> (2) Performance of, or failure to perform, (a) Pays any premium due under this <br /> supervisory or management functions Coverage Form at our request if <br /> related to the construction project(s)_ you have failed to do so; <br /> lb. Any contractor, manufacturer or supplier of (b) Submits a signed, sworn statement <br /> Covered Property that has agreed to make of loss or damage within 60 days <br /> good any loss or damage under a guarantee after receiving notice from us of <br /> or warranty. your failure to do so; and <br /> 3. The following conditions apply in addition to the (c) Has notified us of any change in <br /> Commercial Inland Marine Conditions and the ownership, occupancy or substantial <br /> Common Policy Conditions: change in risk known to the <br /> a. COVERAGE TERRITORY mortgage holder. <br /> We cover property wherever located within: All terms of this Coverage Form will <br /> then apply directly to the mortgage <br /> (1) The United States of America (including holder. <br /> its territories and possessions); (5) if we pay the mortgage holder for any <br /> (2) Puerto Rico; and loss or damage and deny payment to <br /> (3) Canada. you because of your acts or because <br /> b. COINSURANCE you have failed to comply with the <br /> terms of this Coverage Form: <br /> All Covered Property, except property in (a) The mortgage holders rights under <br /> transit, must be insured for its total the mortgage will be transferred to <br /> "completed value" as of the time of loss or us to the extent of the amount we <br /> damage or you will incur a penalty_ <br /> pay; and <br /> The penalty is that we will pay only the (b) The mortgage holder's right to <br /> proportion of any loss or damage that the recover the full amount of the <br /> limit of insurance at the "job site" bears to mortgage holder's claim will not be <br /> the "completed value" of all property at that impaired. <br /> "job site". This penalty will not apply to <br /> property in transit. At our option, we may pay to the <br /> c. MORTGAGE HOLDERS mortgage holder the whole principal on <br /> the mortgage plus any accrued interest. <br /> (1) The term mortgage holder includes In this event, your mortgage and note <br /> trustee. will be transferred to us and you will pay <br /> (2) We will pay for covered loss or damage your remaining mortgage debt to us. <br /> to Covered Property to each mortgage (6) If we cancel this policy, we will give <br /> holder shown in the Declarations in their written notice to the mortgage holder at <br /> order of precedence, as interests may least: <br /> appear. (a) 10 days before the effective date of <br /> (3) The mortgage holder has the right to cancellation if we cancel for your <br /> receive loss or damage payment even if nonpayment of premium; or <br /> the mortgage holder has started (b) 30 days before the effective date of <br /> foreclosure or similar action on the cancellation if we cancel for any <br /> Covered Property. other reason. <br /> (4) If we deny your claim because of your (7) If we elect not to renew this policy, we <br /> acts or because you have failed to will give written notice to the mortgage <br /> comply with the terms of this Coverage holder at least 10 days before the <br /> Form, the mortgage holder will still have expiration date of this policy <br /> the right to receive loss or damage <br /> payment if the mortgage holder: <br /> Copyright, 2013 Selective Insurance Company of America. All rights reserved. CM 7105 07 13 <br /> Includes copyrighted material of Insurance Services Office, Inc„with its permission. Page 12 of 15 <br /> INSURED'S COPY <br />