2013 - Property Damage Named Perils - PDNP_13.pdf

8/13/2019 2013 - Property Damage Named Perils - PDNP_13.pdf

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PDNP_13 Ace Package Policy 2013 vii.12

Section 1 - Property Damage (Fire and Specified Perils)

In the event of any of the Property Insuredreferred to below having sustained Damageby any of the SpecifiedPerilsreferred to in the Schedule and defined in the Appendixto this Section the Company will pay to theInsured the value of the Property Insuredat the time of the Damageor at the option of the Company theamount of the Damageor at the option of the Company reinstate or replace such PropertyInsuredor any partthereof

Provided that the liability of the Company under this Section (including Extensions hereto) during any onePeriod of Insuranceshall not exceed the appropriate Limit of Liabilityat the time of the Damage.

Definitions

All Other Contents 1. includes

a) documents, manuscripts and business books but only for thecost of the materials together with the cost of clerical labour

expended in reproducing such records, and not for the value tothe Insuredof the information contained therein, for an amountnot exceeding GBP5,000 in respect of any one loss and

b) computer systems records but only for the cost of the materials

together with the cost of clerical labour and computer timeexpended in reproducing such records, and not for the value tothe Insuredof the information contained therein, for an amount

not exceeding GBP10,000 in respect of any one loss

but excluding any expenses in connection with the production of

information to be recorded in such documents, manuscripts, businessbooks and computer systems records

c) patterns, jigs, models, templates, moulds, dies, tools, plans,drawings and designs but only those in current use and whichthe Insuredwould need to replace in the event of Damage

d) so far as they are not otherwise insured, personal property ofemployees, directors, partners or visitors of the Insuredfor an

amount not exceeding GBP1,000 in respect of any one person.

e) cigars, cigarettes and tobacco for an amount not exceedingGBP1,000 in respect of any one loss

f) beers, wines or spirits for an amount not exceeding GBP1,000 inrespect of any one loss

g) non-ferrous metals for an amount not exceeding GBP2,500 inrespect of any one loss

Buildings 2. the buildings of the Premisesincluding landlord's fixtures and fittings,foundations, yards, paths, roads, hoardings, walls, gates and fencesaround and pertaining to the Premises, telephone, gas, water and

electricity meters, pipes, cables and the like, including such property for

which the Insuredare responsible but which is underground and/or inadjoining yards or roadways and which partly or wholly serves to supplythe Premises

Contents 3. the machinery, plant and All Other Contents, including tenant'simprovements, alterations and decorations, at the Premises, all belongingto the Insuredor held by the Insuredin trust for which they are or may

deem themselves responsible but excluding

a) landlord's fixtures and fittings

b) Money

c) Stock


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Reinstatement 4. a) the rebuilding or replacement of property which has sustainedDamageand, provided the liability of the Company is notincreased, may be carried out in any manner suitable to the

requirements of the Insuredand/or upon another site

b) the repair or restoration of property which has sustained

Damage

In either case to a condition equivalent to or substantially the same as butnot better or more extensive than its condition when new

Rent 5. rent payable and/or receivable in respect of the Buildingssubject toSpecial Condition 11 of this Section

Specified Peril 6. any peril specified in the Appendixto this Section

Stock 7. the stock and materials in trade, including work in progress, at thePremises, the property of the Insuredor held by the Insuredin trust for

which the Insuredare responsible


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Extensions

Capital Additions 1. The insurance provided by this Section on Buildingsand Contentsincludesin so far as the same are not otherwise insured and in addition tothe Limit(s) of Liabilitystated in the Schedule

a) any newly acquired or newly erected Buildingsand Contentsanywhere within the Territorial Limits

b) alterations, additions and improvements to Buildingsand

Contentsbut excluding appreciation in value

Provided always that

a) the Insuredshall advise the Company as soon as practicable ofany such newly acquired and/or newly erected property and inany event within 3 months of any such alterations, additions andimprovements

b) at any one premises this additional insurance shall not exceed

10% of the appropriate Limit of Liabilityor GBP500,000 in the

aggregate, whichever is the lesser amount.Debris Removal 2. Unless more specifically insured the insurance provided by this Section

includes costs and expenses necessarily incurred by the Insuredwith theconsent of the Company in

a) i) removing debris of

ii) dismantling and/or demolishing

iii) shoring up or propping

that portion or portions of the Property Insuredwhich havesustained Damage

b) i) cleaning and/or clearing drains, sewers or gutters, theproperty of the Insuredor for which they are

responsible

ii) cleaning and/or removing undamaged PropertyInsuredfor an amount not exceeding GBP10,000 any

one loss

following Damage hereby insured against but excluding any costs orexpenses

(1) incurred in removing debris except from the site of suchproperty which has sustained Damageand the area immediatelyadjacent to such site

(2) arising from pollution or contamination of property not insuredby this Section.

European Union andPublic Authorities

(including undamaged

property)

3. Subject to the following Special Conditionsapplicable toExtension 3the insurance by this Section extends to include such additional cost of

Reinstatementas may be incurred solely by reason of the necessity tocomply with the Stipulationsof

a) European Union Legislation, or

b) Building or other Regulations under or framed in pursuance ofany Act of Parliament or by-laws of any Public Authority

c) the Company requiring conformity to the appropriate SprinklerRules of an automatic sprinkler installation which conformed to

the appropriate Rules when installed but fail to conform tosubsequent amendments to those Rules

(hereafter referred to as the Stipulations) in respect of

- the lost destroyed or damaged property thereby insured


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- undamaged portions thereof

Excluding

a) the cost incurred in complying with the Stipulations

i) in respect of Damageoccurring prior to the granting ofthis Extension

ii) in respect of Damagenot insured by this Policy

iii) under which notice has been served upon the Insured

prior to the happening of the Damage

iv) for which there is an existing requirement which has tobe implemented within a given period

v) in respect of property entirely undamaged by any perilinsured against

b) the additional cost that would have been required to make goodthe property which has sustained Damageto a condition equalto its condition when new had the necessity to comply with theStipulations

not arisenc) the amount of any charge or assessment arising out of capital

appreciation which may be payable in respect of the property orby the owner thereof by reason of compliance with theStipulations.

Special Conditions applicable to Extension 3

1) With regard to the provision of water supply equipment whichmay be required in connection with reinstatement of thesprinkler installation in the damaged portion of the Premisesto

the current Sprinkler Rules and in the event that such equipmentmay also be serving the sprinkler installation in undamaged

portions of the Premisesa proportionate contribution will be

agreed.2) The work of Reinstatementmust be commenced and carried

out without unreasonable delay and in any case must becompleted within twelve months after the Damageor withinsuch further time as the Company may allow (during the saidtwelve months) and may be carried out upon another site (if the

Stipulationsso necessitate) subject to the liability of theCompany under this Extension not being thereby increased.

3) If the liability of the Company under any item of this Sectionapart from this Extension shall be reduced by the application ofany of the terms and conditions of this Policy then the liabilityof the Company under this Extension (in respect of any such

item) shall be reduced proportionately.4) The total amount recoverable under any item of this Section in

respect of this Extension shall not exceed

a) 15% of the appropriate Limit of Liability

b) where the appropriate Limit of Liabilityof the itemapplies to PropertyInsuredat more than onePremises15% of the total amount for which theCompany would have been liable had the PropertyInsuredby the item at the Premiseswhere Damagehas occurred been wholly destroyed.


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5) The total recoverable under any item shall not exceed theamount of its Limit of Liability.

6) All the terms and conditions of the policy except in so far asthey are varied hereby shall apply as if they had beenincorporated herein.

Fire Extinguishing

Expenses

4. The Company will reimburse the Insuredfor the cost of refilling,recharging and/or replacing any fire extinguishing appliances and/orequipment including sprinkler heads following Damage, and FireBrigade charges and other extinguishing expenses for which the Insured

may be assessed for an amount not exceeding GBP10,000 any one loss.

Metered Water 5. The insurance provided by this Section extends to include loss resulting

from accidental escape of water from pipes or apparatus but only to theextent that

a) such loss is determined by measurement from the WaterAuthoritys meter or

b) if the Water Authority demands excess water charges

Provided that the indemnity provided by this Extension is limited toGBP10,000 any one loss.

Professional Fees 6. Unless more specifically insured, the insurance provided by each item

under this Section on Buildingsand Contentsincludes an amount inrespect of architects', surveyors', lawyers consulting engineers and other

professional fees necessarily and reasonably incurred in theReinstatementof such Property Insuredconsequent upon it havingsustained Damage, but not for preparing any claim. The amount payablefor such fees shall not exceed those authorised under the scale of charges

of their respective professional bodies at the time of Damageandliability for such Damageand fees shall not exceed in the aggregate the

sum insured by each such item as set out in the Schedule.

Spontaneous Combustion 7. Damageof or to coal, coke or wood blocks caused by their ownspontaneous fermentation, heating or combustion is included in theinsurance hereby notwithstanding anything contained herein to thecontrary.

Temporary Removal 8. Subject to the following provisions, the Property Insuredby thisSection is covered whilst temporarily removed to any premises

(including exhibitions) not in the Insuredsoccupation and whilst intransit by road, rail or inland waterway, all within the Territorial Limits(but including member countries of the European Union in respect ofExhibition Property)

a) Stockin any building not occupied by the Insured subject to atotal value of GBP50,000 in all and a Limit of Liabilityof

GBP25,000 at any one location

b) ContentsandExhibition Property while temporarily removedfrom thePremisesin anybuilding not occupied by theInsured

(and whilst in transit thereto and there from) subject to a Limitof Liabilityof 10% of theLimit of Liability forContents orGBP50,000 whichever is the lesser

as though such buildings were the Premisesof the Insured.

For the purposes of Appendix Specified Peril 15 of this Section in sofar as in applies to this Extension, persons employed within any abovementioned building shall be deemed to be employees of the Insured.


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Special Extension applicable to this Section

Loss Prevention /

Minimisation

1. This Section is extended to include costs and expenses necessarily andreasonably incurred as a result of emergency action taken, including theprompt execution of temporary repairs, in order to prevent or minimiseactual or imminentDamageto the Property Insuredby any cause not

otherwise excluded.

Provided that

a) any impending loss, destruction or damage does not stem fromany reasonably foreseeable cause which could have beenreasonably prevented by the Insured

b) the Company is satisfied that such loss, destruction or damagehas been avoided or reduced in consequence of the measurestaken

c) i) the liability of the Company under this SpecialExtension shall not exceed the amount of the saving to

the Company achieved by such expenditure, and

ii) the maximum liability of the Company in respect ofany occurrence or happening shall not exceedGBP10,000.


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Special Conditions

Automatic Reinstatement

of Loss

1. In the absence of written notice by the Company to the contrary, inconsideration of the insurance by this Section not being reduced by theamount of any loss, the Insuredshall pay additional premium (to becalculated at the rate on which premium is assessed on the amount of

such loss) for the period from the date of loss to the expiry of the Periodof Insurance.

Brands and Labels 2. In the event of Damageto Property Insuredhereby, any salvage ofbranded or labelled Stockand or merchandise, the Insuredsown or heldby them in trust or on commission, and or goods sold but not delivered,shall not be disposed of by sale without the consent of the Insured. Ifsuch salvage is not disposed of by sale then the Damagewill be assessed

at the value agreed between the Insuredand the Company and taken intoconsideration at the settlement of the loss.

Contract Price 3. In respect only of goods sold but not delivered for which the Insured areresponsible subject to a sale contract which, following Damageiscancelled by reason of its conditions wholly or to the extent of the

Damage, the liability of the Company shall be based on the contractprice.

For the purpose of this insurance the value of all goods to which thisSpecial Condition could apply in the event of Damageshall also be

ascertained on this basis.

Designation 4. For the purpose of determining where necessary the heading under whichany property is insured, the Company agrees to accept the designationunder which such property has been entered in the Insured'sbooks.

Non- Invalidation 5. The insurance provided by this Section shall not be invalidated by anyact or omission or by any alteration whereby the risk of Damageisincreased, and which the Insuredhas demonstrated to the Companys

satisfaction was unknown to or beyond the control of the Insured, at andbefore notification of any claim to the Company provided that theInsured, immediately they become aware thereof, shall give notice to theCompany and pay an additional premium if required.

Other Interests 6. The interest of other parties in this insurance is noted it being understoodthat in the event of any Damagethe nature and extent of such other

interests will be disclosed by the Insured.

Protections 7. The premium for this Section has been calculated after considering thefollowing mentioned protections and it is a condition precedent to anyliability of the Company under this Section of the Policy that

a) the fire extinguishing appliances, at the Premises,whetherinstalled at the commencement of this insurance or subsequently

at the request of or with the knowledge of the Company aremaintained in good working order

b) fire extinguishing appliances are properly inspected every weekand the Insuredremedy promptly any defect whether disclosed

by such inspection or otherwise

c) i) any intruder / fire alarm at the Premisesis

(1) installed in accordance with the specificationand requirements agreed by the Company

(2) regularly and efficiently maintained under amaintenance contract by the intruder / firealarm company being a member of the

relevant national industry association


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(3) put into full and effective operation wheneverthe Premisesare closed or unoccupied

(4) reset and put into full and effective operation

following any activation

in the event that any intruder alarm cannot bereset and put into operation the Premisesmustbe secured and the Police informed theintruder alarm is no longer operational

(5) tested regularly in accordance with theCompanys requirements

ii) automatic sprinkler installations (if any) are under amaintenance agreement with an approved installation

company

For the purposes of this Special Condition full and effectiveoperation covers all component parts of the alarm including themeans of communication used to transmit signals

d) in the case of losses or Damageoccasioned by theft that theInsuredshall not have received a written notification from

i) the alarm company that the maintenance contract issuspended

ii) the relevant Police Authority that alarm signals fromthe Premiseswill no longer be answered

e) in the case of losses or Damageoccasioned by theft at night orwhenever the Premises are closed for business

i) the keys for any intruder protections

ii) the keys of any safes containing any of the Property

Insuredare removed from the Premises

f) immediate notice shall be given to the Company before anysuch intruder/fire/sprinkler installation is rendered inoperative,or immediately in the event of an emergency. The Companyshall have access to the Premisesat all reasonable times for the

purpose of inspecting said installations.

Purchaser's Interest 8. If at the time of Damagethe Insuredshall have contracted to sell theirinterest in any Building herebyinsured and such purchase issubsequently completed, the purchaser, on completion of the purchase, ifand so far as the property is not otherwise insured by or on behalf of thepurchaser against such Damage, shall be entitled to the benefit of this

Section so far as it relates to such Damagewithout prejudice to the rightsand liabilities of the Insuredor the Company under this Section up to thedate of completion.


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Reinstatement 9. The basis upon which the amount payable in respect of BuildingsandContentsis to be calculated shall be the Reinstatementof the property

that has sustained Damage.

Provided always that

a) if at the time of Reinstatementthe sum representing 85% of thecost which would have been incurred in reinstating the whole ofthe property to which any Limit of Liabilityis applicableexceeds such Limit of Liabilityat the commencement of anyDamage, the liability of the Company shall not exceed that

proportion of the amount of the Damagewhich the said Limitof Liabilityshall bear to the sum representing the total cost of

reinstating the whole of such property at that time

b) the liability of the Company for the repair or restoration ofproperty damaged in part only shall not exceed the amountwhich would have been payable had such property been whollydestroyed

c) no payment beyond the amount which would have been payablein the absence of this Special Condition shall be made

i) unless Reinstatementcommences and proceedswithout unreasonable delay

ii) until the cost of Reinstatementshall have beenactually incurred

iii) if the Property Insuredat the time of its Damageshall be insured by any other insurance effected by oron behalf of the Insuredwhich is not upon the same

basis of Reinstatement

d) all the terms and conditions of this Section shall apply

i) in respect of any claim payable under the provisions ofthis Special Condition except in so far as they arevaried hereby

ii) where any claim is payable as though this SpecialCondition had not been incorporated.

Reinstatement (Day OneBasis)

10. If the Buildingsand/or Contentsitems in the Schedule to this Policyshow differing amounts under the Limit of Liabilityand DeclaredValueheadings then the insurance provided by this Section on the said

Buildingsand/or Contentsshall be on a Day OneReinstatementbasis and the Limit(s) of Liabilityare the Declared Valuesplus a

percentage increase as agreed between the Insuredand the Company.

a) The Insured having stated the Declared Value(s)(shown under

Declaration in the Schedule) for Buildingsand/or Contentsthepremium has been calculated accordingly

b) Declared Valuemeans the Insured'sassessment of the cost ofReinstatementof such Property Insuredarrived at inaccordance with the definition of Reinstatement, at the level of

costs applying at the commencement ("Day One")of thePeriod of Insurance(ignoring inflationary factors which mayoperate subsequently). Such cost of Reinstatementshallinclude due allowance for

i) debris removal costs

ii) the additional cost of Reinstatementto comply withthe European and Public Authority Stipulations


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Workmen 16. Workmen are allowed in and about the Premisesfor the purpose ofmaking new erections or alterations, repair, decoration, plant installation,general maintenance and the like without prejudice to the terms and

conditions of this Section and of the Policy.


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Exclusions

This Section does not cover

1. the first GBP500 of each and every event of Damagein respect of each separate premises asascertained after the application of any condition of average (underinsurance) in respect of Specified

Perils 6, 8, 9, 10and 13. Except that this amount will only be deducted once when in respect of anyseries of claims arising from the same proximate cause occurring during a 72 hour period

2. riot or civil commotion other than to the extent stated in Specified Peril 5

3. Damagecaused by or consisting of pollution or contamination but this shall not exclude Damagetothe Property Insured, caused by

a) pollution or contamination which itself results from a Specified Peril

b) a Specified Perilwhich itself results from pollution or contamination

4. Damagein respect of

a) vehicles licensed for road use (including accessories thereon), caravans, trailers, railwaylocomotives, rolling stock, watercraft or aircraft or aerospatial devices

b) property or structures in course of construction or erection and materials or supplies inconnection with all such property in course of construction or erection

c) land, piers, jetties, bridges, culverts or excavations

d) livestock, growing crops or trees

e) water other than water which is normally contained within any tank, piping system or otherprocess equipment

f) property in transit other than to the extent provided for elsewhere in this Section

5. property which at the time of the happening of Damageis insured by or would but for the existence ofthis Policy be insured by any marine policy or policies

6. any property more specifically insured by or on behalf of the Insured

7. Consequential Lossof any kind or description except loss of Rentwhen such loss is included in thecover under this Section

8. Damageto electrical plant or apparatus caused by self-ignition, but this exclusion shall only apply tothat part of the electrical plant or apparatus in which self-ignition occurs

9. Damageto dynamos, transformers, motors or other machines or apparatus for generating or utilisingelectricity or any part of the electrical installation, if such Damagebe caused by over-running, short-circuiting, abnormal currents or self-heating


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Storm 8. Storm excluding

a) Damageby

i) the escape of water from the normal confines of any

natural or artificial water course lake reservoir canal or

damii) inundation from the sea

whether resulting from storm or otherwise

b) Damageattributable solely to change in the water table level

c) Damageby lightning frost subsidence ground heave or landslip

d) Damagein respect of movable property in the open, fences andgates

Flood 9. Flood excluding

a) Damageattributable solely to change in the water table level

b) Damageby lightning frost subsidence ground heave or landslip

c) Damagein respect of movable property in the open, fences andgates

d) Damageby Specified Perils 10 and/or 11

Escape of Water 10. Escape of water from any tank apparatus or pipe excluding

a) Damageby water discharged or leaking from any automaticsprinkler installation

b) Damagein respect of any building which is empty or not in use

Sprinkler Installation 11. Accidental escape of water from any automatic sprinkler installation inthe Premises not caused by

a) freezing whilst the building in so far as it is in the Insured's

ownership or tenancy is empty or not in useb) explosion earthquake subterranean fire or heat caused by fire

Impact

(Third Party)

12. Impact by any road vehicle or animal not belonging to or under thecontrol of the Insuredor any occupier of the Premisesor theirrespective employees

Impact 13. Impact by any road vehicle or animal belonging to or under the control ofthe Insured or any occupier of the Premisesor their respective

employees

Glass 14. Accidental breakage of fixed glass at the Premises(other than by any

other Specified Peril) but excluding

a) breakage by pressure waves caused by aircraft or other aerial

devices travelling at sonic or supersonic speedsb) breakage caused by removal or by alterations or repairs on or

about the Premises

c) breakage at or in any building which is empty or not in use

d) loss or destruction of or damage to

i) frames or other fittings

ii) lettering, silvering, embossing or ornamental work

iii) goods displayed in windows or showcases

other than for a sum not exceeding GBP1,000 in respect of anyone event


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PDNP 13 Ace Package Policy 2013 vii 12

Theft 15. Damageas a result of theft

a) involving forcible and violent entry into or exit from the

buildings of the Premisesor any attempt thereat, or

b) following violence or threat of violence against the Insuredor

any director, partner or employee of the InsuredProvided always that this Specified Perildoes not cover Damage

a) to jewellery, precious stones, precious metals, bullion, furs,curiosities, works of art or rare books

b) where any member of the Insured's household or any directoror partner of the Insuredis concerned as principal or accessory

c) to movable property in the open or in any open sided building

d) in respect of Buildingswhich are empty or not in use

Theft Damage to

Buildings

16. When cover is provided under Peril 15this Section is extended toinclude Damageto the Buildingsof the Premisesoccupied by theInsured for the Business(and are not otherwise insured) for which the

Insuredis responsible and which arises during pursuance of theft orattempt thereat subject to a limit of liability of GBP25,000 any one loss

Replacement Locks 17. When cover is provided under Peril 15this Section is extended toinclude the costs necessarily incurred in the replacement of locks at thePremisesdue to theft (if insured) of keys from the Premisesor from thehome of any director partner or employee authorised by the Insuredtohold such keys for an amount not exceeding GBP2,500 any one loss

Documents

2013 - Property Damage Named Perils - PDNP_13.pdf