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Copyright, 2013 Selective Insurance Company of America. All rights reserved. CM 71 05 07 13 <br />Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 11 of 15 <br />(3) Materials used in repair, construction, <br />renovation or remodeling; or <br />(4) Maintenance; <br />of part or all of any property wherever <br />located. <br />d. Settling, cracking, shrinkage, bulging or <br />expansion. <br />e. Wear and tear. <br />f. Any quality in the property that causes it to <br />damage or destroy itself, hidden or latent <br />defect, gradual deterioration. <br />g. Mechanical breakdown. <br />h. Insects, vermin, rodents, animals. <br />i. Rust or other corrosion, dampness, <br />extremes of temperature. <br />C. LIMITS OF INSURANCE <br />The most we will pay for loss or damage in any one <br />occurrence is the applicable Limit of Insurance <br />shown in the Declarations. <br />D. DEDUCTIBLE <br />1. We will not pay for loss or damage in any one <br />occurrence until the amount of the adjusted <br />loss or damage before applying the applicable <br />Limits of Insurance exceeds the Deductible <br />shown in the Declarations. We will then pay the <br />amount of the adjusted loss or damage in <br />excess of the Deductible, up to the applicable <br />Limit of Insurance. <br />2. If loss or damage covered under this Coverage <br />Form also involves loss or damage under any <br />other coverage form issued by us or any <br />company affiliated with us, the most we will <br />deduct from the payment for loss or damage to <br />Covered Property is the single largest deducti- <br />ble involved. Furthermore, each deductible will <br />only be applied against its applicable coverage <br />and any deductible amount(s) actually taken <br />will be applied toward any remaining larger <br />deductible(s). <br />E. ADDITIONAL CONDITIONS <br />1. VALUATION <br />The Valuation Conditions under the General <br />Conditions section, in the Commercial Inland <br />Marine Conditions is replaced by the following: <br />The value of Covered Property will be based <br />on “replacement cost”. <br />“Replacement cost” is limited to the cost of <br />repair or replacement with similar materials on <br />the same “job site” and used for the same <br />purpose. It does not include costs you incur <br />over and above the costs you would have <br />incurred had there been no loss, including: <br />a. Additional interest payments on money <br />borrowed to finance construction, remodel- <br />ing, renovation, or repair including increased <br />interest payments due to a rise in interest <br />rates; <br />b. Additional insurance premiums, real estate <br />and property taxes, and assessments which <br />you incur for the period of time covered by <br />this endorsement that construction extends <br />beyond the estimated completion date; <br />c. Additional construction permit, architect, <br />engineering and consulting fees which <br />become necessary due to the direct physical <br />loss or damage; <br />d. Additional legal, lease administration or <br />accounting fees; and <br />e. Additional advertising and promotional <br />expenses which become necessary due to <br />the direct physical loss or damage. <br />f. The additional cost to extend leases for <br />construction equipment and temporary office <br />space. <br />If the part of the covered property that sustains <br />direct physical loss or damage is repaired or <br />replaced, the payment will not exceed the <br />amount you spend to repair or replace the <br />damaged or destroyed property. <br />2. TRANSFER OF RIGHTS OF RECOVERY <br />AGAINST OTHERS TO US <br />The following Paragraph is added to General <br />Condition K. Transfer Of Rights Of Recovery <br />Against Others To Us in the Commercial Inland <br />Marine Conditions: <br />We will waive any rights of recovery we may <br />have against a person or organization because <br />of payments we make for loss or damage to <br />Covered Property if you have agreed to waive <br />any right of recovery against that person or <br />organization in a written contract or written <br />agreement, but only if the loss or damage <br />occurs subsequent to the execution of the <br />written contract or written agreement. How- <br />ever, this does not apply to: <br />a. Any architect, engineer or other party or <br />entity responsible for any design, specifica- <br />tion or plans for the fabrication, erection or <br />completion of the property insured with <br />respect to any loss or damage that may be <br />caused by: <br />(1) Fault, defect, error or omission in such <br />design, specifications or plans; or <br />Docusign Envelope ID: 186E0FF8-664C-4A5C-9F97-28196CE69FD1