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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 15 of 15 <br />9. “Manager” means a person serving in a <br />directorial capacity for a limited liability <br />company. <br />10. “Member” means an owner of a limited liability <br />company represented by its membership <br />interest, who also may serve as a “manager”. <br />11. “Pollutants” means any solid, liquid, gaseous or <br />thermal irritant or contaminant, including <br />smoke, vapor, soot, fumes, acids, alkalis, <br />chemicals and waste. Waste includes materials <br />to be recycled, reconditioned or reclaimed. <br />12. “Replacement cost” means: <br />a. The necessary and reasonable costs of <br />materials and labor incurred to repair or <br />replace, without deduction for depreciation, <br />the part of the covered property that <br />sustains direct physical loss or damage; <br />b. The reasonable overhead and profit <br />related to the covered property that sus- <br />tains direct physical loss or damage but <br />not to exceed the overhead and profit <br />being charged for the construction, <br />erection, or fabrication of a covered <br />building or structure in accordance with the <br />construction contracts; and <br />c. Other related construction costs and ex- <br />penses that are re-incurred to repair or <br />replace the part of the covered property <br />that sustains direct physical loss or <br />damage but only if such costs have been <br />included as part of the Limit of Insurance <br />for a covered building or structure. <br />13. “Soft costs” mean only the following additional <br />expenses over and above the estimated <br />completed cost of any building or structure <br />covered by this endorsement: <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; <br />e. Additional advertising and promotional <br />expenses which become necessary due to <br />the direct physical loss or damage; and <br />f. The additional cost to extend leases for <br />construction equipment and temporary office <br />space. <br />14. “Specified causes of loss or damage” means <br />the following: Fire; lightning; explosion; wind- <br />storm or hail; smoke; aircraft or vehicles; riot or <br />civil commotion; vandalism; leakage from fire <br />extinguishing equipment; sinkhole collapse; <br />volcanic action; falling objects; weight of snow, <br />ice or sleet; water damage. <br />a. Sinkhole collapse means the sudden <br />sinking or collapse of land into under- <br />ground empty spaces created by the action <br />of water on limestone or dolomite. This <br />cause of loss or damage does not include: <br />(1) The cost of filling sinkholes; or <br />(2) Sinking or collapse of land into man- <br />made underground cavities. <br />b. Falling objects does not include loss or <br />damage to: <br />(1) Personal property in the open; or <br />(2) The interior of a building or structure, <br />or property inside a building or struc- <br />ture, unless the roof or an outside wall <br />of the building or structure is first <br />damaged by a falling object. <br />c. Water damage means accidental dis- <br />charge or leakage of water or steam as the <br />direct result of the breaking apart or <br />cracking of a plumbing, heating, air con- <br />ditioning or other system or appliance <br />(other than a sump system including its <br />related equipment and parts), that is <br />located on the described premises and <br />contains water or steam. <br />15. “Volcanic action” means direct loss or damage <br />resulting from the eruption of a volcano when <br />the loss or damage is caused by: <br />a. Airborne volcanic blast or airborne shock <br />waves; <br />b. Ash, dust or particulate matter; or <br />c. Lava flow. <br />All volcanic eruptions that occur within any 168- <br />hour period will constitute a single occurrence. <br />“Volcanic action” does not include the cost to <br />remove ash, dust or particulate matter that does <br />not cause direct physical loss or damage to the <br />described property. <br />Docusign Envelope ID: 186E0FF8-664C-4A5C-9F97-28196CE69FD1