Causes of Loss – Special Form

COMMERCIAL PROPERTY CP 10 30 06 95 CAUSES OF LOSS – SPECIAL FORM

Words and phrases that appear in quotation marks have special meaning. Refer to Section F. – Definitions.

A. COVERED CAUSES OF LOSS (2) Volcanic eruption, explosion or effusion. When Special is shown in the Declarations, Cov- But if volcanic eruption, explosion or ered Causes of Loss means RISKS OF DIRECT effusion results in fire, building glass PHYSICAL LOSS unless the loss is: breakage or Volcanic Action, we will pay for the loss or damage caused by that 1. Excluded in Section B., Exclusions; or fire, building glass breakage or Volcanic 2. Limited in Section C., Limitations; Action. that follow. Volcanic action means direct loss or damage resulting from the eruption of a B. EXCLUSIONS volcano when the loss or damage is 1. We will not pay for loss or damage caused caused by: directly or indirectly by any of the following. (a) Airborne volcanic blast or airborne Such loss or damage is excluded regardless of shock waves; any other cause or event that contributes con- currently or in any sequence to the loss. (b) Ash, dust or particulate matter; or a. Ordinance or Law (c) Lava flow. The enforcement of any ordinance or law: All volcanic eruptions that occur within any 168 hour period will constitute a (1) Regulating the construction, use or single occurrence. repair of any property; or Volcanic action does not include the (2) Requiring the tearing down of any prop- cost to remove ash, dust or particulate erty, including the cost of removing its matter that does not cause direct physi- debris. cal loss or damage to the described This exclusion, Ordinance or Law, applies property. whether the loss results from: c. Governmental Action (1) An ordinance or law that is enforced Seizure or destruction of property by order even if the property has not been dam- of governmental authority. aged; or But we will pay for loss or damage caused (2) The increased costs incurred to comply by or resulting from acts of destruction or- with an ordinance or law in the course of dered by governmental authority and taken construction, repair, renovation, re- at the time of a fire to prevent its spread, if modeling or demolition of property, or the fire would be covered under this Cov- removal of its debris, following a physi- erage Part. cal loss to that property. d. Nuclear Hazard b. Earth Movement SAMPLE Nuclear reaction or radiation, or radioactive (1) Any earth movement (other than sink- contamination, however caused. hole collapse), such as an earthquake, landslide, mine subsidence or earth But if nuclear reaction or radiation, or ra- sinking, rising or shifting. But if earth dioactive contamination, results in fire, we movement results in fire or explosion, will pay for the loss or damage caused by we will pay for the loss or damage that fire. caused by that fire or explosion.

CP 10 30 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 7 o e. Utility Services But if artificially generated electrical current The failure of power or other utility service results in fire, we will pay for the loss or supplied to the described premises, how- damage caused by that fire. ever caused, if the failure occurs away b. Delay, loss of use or loss of market. from the described premises. c. Smoke, vapor or gas from agricultural But if the failure of power or other utility smudging or industrial operations. service results in a Covered Cause of Loss, d. (1) Wear and tear; we will pay for the loss or damage caused by that Covered Cause of Loss. (2) Rust, corrosion, fungus, decay, deterio- ration, hidden or latent defect or any This exclusion does not apply to the Busi- quality in property that causes it to ness Income coverage or to Extra Expense damage or destroy itself; coverage. Instead, the Special Exclusion in paragraph B.4.a.(1) applies to these cover- (3) Smog; ages. (4) Settling, cracking, shrinking or expan- f. War And Military Action sion; (1) War, including undeclared or civil war; (5) Nesting or infestation, or discharge or release of waste products or secretions, (2) Warlike action by a military force, in- by insects, birds, rodents or other ani- cluding action in hindering or defending mals. against an actual or expected attack, by any government, sovereign or other (6) Mechanical breakdown, including rup- authority using military personnel or ture or bursting caused by centrifugal other agents; or force. But if mechanical breakdown results in elevator collision, we will pay for (3) Insurrection, rebellion, revolution, the loss or damage caused by that ele- usurped power, or action taken by gov- vator collision. ernmental authority in hindering or defending against any of these. (7) The following causes of loss to personal property: g. Water (a) Dampness or dryness of atmos- (1) Flood, surface water, waves, tides, tidal phere; waves, overflow of any body of water, or their spray, all whether driven by (b) Changes in or extremes of tempera- wind or not; ture; or (2) Mudslide or mudflow; (c) Marring or scratching. (3) Water that backs up or overflows from a But if an excluded cause of loss that is sewer, drain or sump; or listed in 2.d. (1) through (7) results in a "specified cause of loss" or building glass (4) Water under the ground surface press- breakage, we will pay for the loss or dam- ing on, or flowing or seeping through: age caused by that "specified cause of (a) Foundations, walls, floors or paved loss" or building glass breakage. surfaces; e. Explosion of steam boilers, steam pipes, (b) Basements, whether paved or not; or steam engines or steam turbines owned or (c) Doors, windows or other openings.SAMPLEleased by you, or operated under your control. But if explosion of steam boilers, But if Water, as described in g.(1) through steam pipes, steam engines or steam tur- g.(4) above, results in fire, explosion or bines results in fire or combustion explo- sprinkler leakage, we will pay for the loss or sion, we will pay for the loss or damage damage caused by that fire, explosion or caused by that fire or combustion explo- sprinkler leakage. sion. We will also pay for loss or damage 2. We will not pay for loss or damage caused by caused by or resulting from the explosion or resulting from any of the following: of gases or fuel within the furnace of any fired vessel or within the flues or passages a. Artificially generated electrical current, through which the gases of combustion including electric arcing, that disturbs elec- pass. trical devices, appliances or wires.

Page 2 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 10 30 06 95 o f. Continuous or repeated seepage or leakage 3. We will not pay for loss or damage caused by of water that occurs over a period of 14 or resulting from any of the following, 3.a. days or more. through 3.c. But if an excluded cause of loss g. Water, other liquids, powder or molten that is listed in 3.a. through 3.c. results in a material that leaks or flows from plumbing, Covered Cause of Loss, we will pay for the heating, air conditioning or other equipment loss or damage caused by that Covered Cause (except fire protective systems) caused by of Loss. or resulting from freezing, unless: a. Weather conditions. But this exclusion only (1) You do your best to maintain heat in the applies if weather conditions contribute in building or structure; or any way with a cause or event excluded in paragraph 1. above to produce the loss or (2) You drain the equipment and shut off damage. the supply if the heat is not maintained. b. Acts or decisions, including the failure to h. Dishonest or criminal act by you, any of act or decide, of any person, group, organi- your partners, employees (including leased zation or governmental body. employees), directors, trustees, authorized representatives or anyone to whom you c. Faulty, inadequate or defective: entrust the property for any purpose: (1) Planning, zoning, development, survey- (1) Acting alone or in collusion with others; ing, siting; or (2) Design, specifications, workmanship, (2) Whether or not occurring during the repair, construction, renovation, re- hours of employment. modeling, grading, compaction; This exclusion does not apply to acts of (3) Materials used in repair, construction, destruction by your employees (including renovation or remodeling; or leased employees); but theft by employees (4) Maintenance; (including leased employees) is not cov- of part or all of any property on or off the ered. described premises. i. Voluntary parting with any property by you 4. Special Exclusions or anyone else to whom you have entrusted the property if induced to do so by any The following provisions apply only to the fraudulent scheme, trick, device or false specified Coverage Forms. pretense. a. Business Income (And Extra Expense) j. Rain, snow, ice or sleet to personal prop- Coverage Form, Business Income erty in the open. (Without Extra Expense) Coverage Form, or Extra Expense Coverage Form k. Collapse, except as provided below in the Additional Coverage for Collapse. But if We will not pay for: collapse results in a Covered Cause of (1) Any loss caused directly or indirectly by Loss at the described premises, we will pay the failure of power or other utility serv- for the loss or damage caused by that Cov- ice supplied to the described premises, ered Cause of Loss. however caused, if the failure occurs l. Discharge, dispersal, seepage, migration, outside of a covered building. release or escape of "pollutants" unlessSAMPLE the But if the failure of power or other utility discharge, dispersal, seepage, migration, service results in a Covered Cause of release or escape is itself caused by any of Loss, we will pay for the loss resulting the "specified causes of loss". But if the from that Covered Cause of Loss. discharge, dispersal, seepage, migration, (2) Any loss caused by or resulting from: release or escape of "pollutants" results in a "specified cause of loss", we will pay for (a) Damage or destruction of "finished the loss or damage caused by that stock"; or "specified cause of loss". (b) The time required to reproduce "finished stock". This exclusion does not apply to Extra Expense.

CP 10 30 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 3 of 7 o (3) Any loss caused by or resulting from (2) The following additional exclusions direct physical loss or damage to radio apply to insurance under this Coverage or television antennas (including satel- Form: lite dishes) and their lead-in wiring, (a) Contractual Liability masts or towers. We will not defend any claim or (4) Any increase of loss caused by or result- "suit", or pay damages that you are ing from: legally liable to pay, solely by reason (a) Delay in rebuilding, repairing or of your assumption of liability in a replacing the property or resuming contract or agreement. But this ex- "operations", due to interference at clusion does not apply to a written the location of the rebuilding, repair lease agreement in which you have or replacement by strikers or other assumed liability for building dam- persons; or age resulting from an actual or at- (b) Suspension, lapse or cancellation of tempted burglary or robbery, pro- any license, lease or contract. But if vided that: the suspension, lapse or cancellation (i) Your assumption of liability was is directly caused by the suspension executed prior to the accident; of "operations", we will cover such and loss that affects your Business In- (ii) The building is Covered Property come during the "period of restora- under this Coverage Form. tion". (b) Nuclear Hazard (5) Any Extra Expense caused by or resulting from suspension, lapse or cancella- We will not defend any claim or tion of any license, lease or contract be- "suit", or pay any damages, loss, yond the "period of restoration". expense or obligation, resulting from nuclear reaction or radiation, or (6) Any other consequential loss. radioactive contamination, however b. Leasehold Interest Coverage Form caused. (1) Paragraph B.1.a. Ordinance or Law, C. LIMITATIONS does not apply to insurance under this The following limitations apply to all policy forms Coverage Form. and endorsements, unless otherwise stated. (2) We will not pay for any loss caused by: We will not pay for loss of or damage to property, (a) Your cancelling the lease; as described and limited in this section. In addi- (b) The suspension, lapse or cancellation, we will not pay for any loss that is a conse- tion of any license; or quence of loss or damage as described and limited in this section. (c) Any other consequential loss. a. Steam boilers, steam pipes, steam engines c. Legal Liability Coverage Form or steam turbines caused by or resulting (1) The following Exclusions do not apply to from any condition or event inside such insurance under this Coverage Form: equipment. But we will pay for loss of or damage to such equipment caused by or (a) Paragraph B.1.a., Ordinance or Law; resulting from an explosion of gases or fuel (b) Paragraph B.1.c., GovernmentalSAMPLEwithin the furnace of any fired vessel or Action; within the flues or passages through which (c) Paragraph B.1.d., Nuclear Hazard; the gases of combustion pass. (d) Paragraph B.1.e., Utility Services; b. Hot water boilers or other water heating and equipment caused by or resulting from any condition or event inside such boilers or (e) Paragraph B.1.f., War and Military equipment, other than an explosion. Action.

Page 4 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 10 30 06 95 o c. The interior of any building or structure, or 3. We will not pay for loss of or damage to the to personal property in the building or following types of property unless caused by structure, caused by or resulting from rain, the "specified causes of loss" or building glass snow, sleet, ice, sand or dust, whether breakage: driven by wind or not, unless: a. Valuable papers and records, such as (1) The building or structure first sustains books of account, manuscripts, abstracts, damage by a Covered Cause of Loss to drawings, card index systems, film, tape, its roof or walls through which the rain, disc, drum, cell or other data processing, snow, sleet, ice, sand or dust enters; or recording or storage media, and other rec- (2) The loss or damage is caused by or ords. results from thawing of snow, sleet or b. Animals, and then only if they are killed or ice on the building or structure. their destruction is made necessary. d. Building materials and supplies not at- c. Fragile articles such as glassware, statuary, tached as part of the building or structure, marbles, chinaware and porcelains, if bro- caused by or resulting from theft. ken. This restriction does not apply to: However, this limitation does not apply to: (1) Glass that is part of a building or struc- (1) Building materials and supplies held for ture; sale by you, unless they are insured un- (2) Containers of property held for sale; or der the Builders Risk Coverage Form; (3) Photographic or scientific instrument or lenses. (2) Business Income coverage or Extra d. Builders' machinery, tools and equipment Expense coverage. owned by you or entrusted to you, provided e. Property that is missing, where the only such property is Covered Property. evidence of the loss or damage is a short- However, this limitation does not apply: age disclosed on taking inventory, or other instances where there is no physical evi- (1) If the property is located on or within dence to show what happened to the prop- 100 feet of the described premises, un- erty. less the premises is insured under the Builders Risk Coverage Form; or f. Gutters and downspouts caused by or resulting from weight of snow, ice or sleet. (2) To Business Income coverage or to Extra Expense coverage. g. Property that has been transferred to a person or to a place outside the described 4. The special limit shown for each category, a. premises on the basis of unauthorized in- through d., is the total limit for loss of or dam- structions. age to all property in that category. The special limit applies to any one occurrence of theft, re- 2. We will not pay more than $500 in any one gardless of the types or number of articles that occurrence for loss of or damage to glass that are lost or damaged in that occurrence. The is part of a building or structure, regardless of special limits are: the number of panes, plates or similar units of glass. Subject to this $500 aggregate, we will a. $2,500 for furs, fur garments and garments not pay more than $100 for any one pane, trimmed with fur. plate, multiple plate insulating unit, radiant or b. $2,500 for jewelry, watches, watch move- solar heating panel, jalousie, louver or SAMPLEshutter. ments, jewels, pearls, precious and semi- However, this limitation does not apply to: precious stones, bullion, gold, silver, plati- num and other precious alloys or metals. a. Loss or damage by the "specified causes of This limit does not apply to jewelry and loss", except vandalism; or watches worth $100 or less per item. b. Business Income coverage or Extra Ex- c. $2,500 for patterns, dies, molds and forms. pense coverage.

CP 10 30 06 95 Copyright, ISO Commercial Risk Services, Inc., 1994 Page 5 of 7 o d. $250 for stamps, tickets, including lottery 2. If the direct physical loss or damage does not tickets held for sale, and letters of credit. involve collapse of a building or any part of a These special limits are part of, not in addition building, we will pay for loss or damage to to, the Limit of Insurance applicable to the Covered Property caused by the collapse of Covered Property. personal property only if: This limitation, C.4., does not apply to Busi- a. The personal property which collapses is ness Income coverage or to Extra Expense inside a building; and coverage. b. The collapse was caused by a cause of loss 5. We will not pay the cost to repair any defect to listed in D.1.a. through D.1.f. above. a system or appliance from which water, other 3. With respect to the following property: liquid, powder or molten material escapes. But a. Outdoor radio or television antennas we will pay the cost to repair or replace dam- (including satellite dishes) and their lead-in aged parts of fire extinguishing equipment if wiring, masts or towers; the damage: b. Awnings, gutters and downspouts; a. Results in discharge of any substance from an automatic fire protection system; or c. Yard fixtures; b. Is directly caused by freezing. d. Outdoor swimming pools; However, this limitation does not apply to e. Fences; Business Income coverage or to Extra Ex- f. Piers, wharves and docks; pense coverage. g. Beach or diving platforms or appurte- D. ADDITIONAL COVERAGE – COLLAPSE nances; The term Covered Cause of Loss includes the h. Retaining walls; and Additional Coverage – Collapse as described and i. Walks, roadways and other paved surfaces; limited in D.1. through D.5. below. if the collapse is caused by a cause of loss 1. We will pay for direct physical loss or damage listed in D.1.b. through D.1.f., we will pay for to Covered Property, caused by collapse of a loss or damage to that property only if: building or any part of a building insured under this Coverage Form, if the collapse is caused a. Such loss or damage is a direct result of by one or more of the following: the collapse of a building insured under this Coverage Form; and a. The "specified causes of loss" or breakage of building glass, all only as insured against b. The property is Covered Property under in this Coverage Part; this Coverage Form. b. Hidden decay; 4. Collapse does not include settling, cracking, shrinkage, bulging or expansion. c. Hidden insect or vermin damage; 5. This Additional Coverage – Collapse, will not d. Weight of people or personal property; increase the Limits of Insurance provided in e. Weight of rain that collects on a roof; this Coverage Part. f. Use of defective material or methods in E. ADDITIONAL COVERAGE EXTENSIONS construction, remodeling or renovation if 1. Property In Transit. This Extension applies the collapse occurs during the course of the only to your personal property to which this construction, remodeling or renovation.SAMPLE form applies. However, if the collapse occurs after construction, remodeling or renovation is a. You may extend the insurance provided by complete and is caused in part by a cause this Coverage Part to apply to your per- of loss listed in D.1.a. through D.1.e., we sonal property (other than property in the will pay for the loss or damage even if use care, custody or control of your salesper- of defective material or methods, in con- sons) in transit more than 100 feet from the struction, remodeling or renovation, con- described premises. Property must be in or tributes to the collapse. on a motor vehicle you own, lease or op- erate while between points in the coverage territory.

Page 6 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP 10 30 06 95 o b. Loss or damage must be caused by or F. DEFINITIONS result from one of the following causes of "Specified Causes of Loss" means the following: loss: Fire; lightning; explosion; windstorm or hail; (1) Fire, lightning, explosion, windstorm or smoke; aircraft or vehicles; riot or civil commo- hail, riot or civil commotion, or vandal- tion; vandalism; leakage from fire extinguishing ism. equipment; sinkhole collapse; volcanic action; fal- (2) Vehicle collision, upset or overturn. ling objects; weight of snow, ice or sleet; water Collision means accidental contact of damage. your vehicle with another vehicle or ob- 1. Sinkhole collapse means the sudden sinking or ject. It does not mean your vehicle's collapse of land into underground empty contact with the road bed. spaces created by the action of water on lime- (3) Theft of an entire bale, case or package stone or dolomite. This cause of loss does not by forced entry into a securely locked include: body or compartment of the vehicle. a. The cost of filling sinkholes; or There must be visible marks of the b. Sinking or collapse of land into man-made forced entry. underground cavities. c. The most we will pay for loss or damage 2. Falling objects does not include loss or dam- under this Extension is $1000. age to: This Coverage Extension is additional insur- a. Personal property in the open; or ance. The Additional Condition, Coinsurance, does not apply to this Extension. b. The interior of a building or structure, or property inside a building or structure, un- 2. Water Damage, Other Liquids, Powder or less the roof or an outside wall of the Molten Material Damage. If loss or damage building or structure is first damaged by a caused by or resulting from covered water or falling object. other liquid, powder or molten material damage loss occurs, we will also pay the cost to 3. Water damage means accidental discharge or tear out and replace any part of the building or leakage of water or steam as the direct result structure to repair damage to the system or of the breaking apart or cracking of any part of appliance from which the water or other sub- a system or appliance (other than a sump stance escapes. system including its related equipment and parts) containing water or steam.

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