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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 12 of 15 <br />(2) Performance of, or failure to perform, <br />supervisory or management functions <br />related to the construction project(s). <br />b. Any contractor, manufacturer or supplier of <br />Covered Property that has agreed to make <br />good any loss or damage under a <br />guarantee or warranty. <br />3. The following conditions apply in addition to the <br />Commercial Inland Marine Conditions and the <br />Common Policy Conditions: <br />a. COVERAGE TERRITORY <br />We cover property wherever located within: <br />(1) The United States of America (includ- <br />ing its territories and possessions); <br />(2) Puerto Rico; and <br />(3) Canada. <br />b. COINSURANCE <br />All Covered Property, except property in <br />transit, must be insured for its total <br />“completed value” as of the time of loss or <br />damage or you will incur a penalty. <br />The penalty is that we will pay only the <br />proportion of any loss or damage that the <br />limit of insurance at the “job site” bears to <br />the “completed value” of all property at that <br />“job site”. This penalty will not apply to <br />property in transit. <br />c. MORTGAGE HOLDERS <br />(1) The term mortgage holder includes <br />trustee. <br />(2) We will pay for covered loss or dam- <br />age to Covered Property to each mort- <br />gage holder shown in the Declarations <br />in their order of precedence, as <br />interests may appear. <br />(3) The mortgage holder has the right to <br />receive loss or damage payment even <br />if the mortgage holder has started <br />foreclosure or similar action on the <br />Covered Property. <br />(4) If we deny your claim because of your <br />acts or because you have failed to <br />comply with the terms of this Coverage <br />Form, the mortgage holder will still <br />have the right to receive loss or <br />damage payment if the mortgage <br />holder: <br />(a) Pays any premium due under this <br />Coverage Form at our request if <br />you have failed to do so; <br />(b) Submits a signed, sworn statement <br />of loss or damage within 60 days <br />after receiving notice from us of <br />your failure to do so; and <br />(c) Has notified us of any change in <br />ownership, occupancy or substan- <br />tial change in risk known to the <br />mortgage holder. <br />All terms of this Coverage Form will <br />then apply directly to the mortgage <br />holder. <br />(5) If we pay the mortgage holder for any <br />loss or damage and deny payment to <br />you because of your acts or because <br />you have failed to comply with the <br />terms of this Coverage Form: <br />(a) The mortgage holder’s rights under <br />the mortgage will be transferred to <br />us to the extent of the amount we <br />pay; and <br />(b) The mortgage holder’s right to <br />recover the full amount of the <br />mortgage holder’s claim will not be <br />impaired. <br />At our option, we may pay to the <br />mortgage holder the whole principal on <br />the mortgage plus any accrued <br />interest. In this event, your mortgage <br />and note will be transferred to us and <br />you will pay your remaining mortgage <br />debt to us. <br />(6) If we cancel this policy, we will give <br />written notice to the mortgage holder at <br />least: <br />(a) 10 days before the effective date <br />of cancellation if we cancel for your <br />nonpayment of premium; or <br />(b) 30 days before the effective date <br />of cancellation if we cancel for any <br />other reason. <br />(7) If we elect not to renew this policy, we <br />will give written notice to the mortgage <br />holder at least 10 days before the <br />expiration date of this policy. <br />Docusign Envelope ID: 186E0FF8-664C-4A5C-9F97-28196CE69FD1