COMMERCIAL PROPERTIES PROGRAM. This Manual Contains Final Rates

Transcription

1 COMMERCIAL PROPERTIES PROGRAM This Manual Contains Final Rates February 2008

2 Commercial Simplified Fire Field Definitions Class Use AAIS Codes Leave off Trailing zero Forms CP-1 (01/01) Table of Contents FP CP-23 (01/01) Optional Property Coverage CP-80 (01/01) Fire Perils Part CP-82 (01/01) Basic Perils Part CP-100 (01/01) Commercial Property Coverage Conditions CP-124 (01/01) Contributing Insurance CP-132 (01/01) Loss Payable Options CP-605 (01/01) Outdoor Signs CP-606 (01/01) Antenna Coverage CP-612 (01/01) Explosion Limitation for Grain Risks CP-613 (01/01) Explosion limitation for Public Utility Gas Risks CP-614 (01/01) Protective Devices FP CL-101 (01/01) Common Policy Conditions FP CP-12 (01/01) Building and Personal Property Coverage Part FP CP-14 (01/01) Builders Risk Coverage Part FP CP-21 (01/01) Condominium Unit Coverage Part Form 1 No Fire Alarm Systems 2 Fire Alarm Systems Attach CP-614 if form 2 is designated Indicate Fire Alarm System Rate ID Rate Group Sprinklered Area - Square Feet Spray Painting 1 Specific <15,000 N/A 2 Class Unsurcharged <15,000 N/A 3 Class Surcharged <15,000 N/A 4 Yes <15,000 No 5 Yes <15,000 Yes 6 No >15,000 <=25,000 Yes 7 No >15,000 <=25,000 No 8 No >25,000 Yes 9 No 25,000 No 0 No <15,000 Yes Rule Rule 16.3 Rule Building & Contents Building & Contents Building & Contents (1) Large Area (2) Construction (3) Classification Application Question # Rate Group 4 & 5 Attach Form CP-614 1) Construction (2) Classification Application Question # Constant Application Question #

3 Commercial Simplified Fire Field Definitions Construction 1 Frame 2 Joisted Masonry 3 Non-Combustible 4 Masonry Non-Combustible 5 Modified Fire Resistive 6 Fire Resistive 7 Heavy Timber Joisted Masonry 8 Superior Non-Combustible Space or 0 Specific Item Symbol Position 1 I Inland B Beach S Seacoast Position 2 1 Numeric Multiplier Position 3 0 Numeric Multiplier Position 4&5 A,B,AB EC Symbol Protection Class Protected 09 Semi-Protected 10 Unprotected Deductible 04 $ $ $1, $2, $5, $10, $25, $50, $75,000 VM&M N Want Coverage Y Exclude Coverage Item See Rate Pages 18 20

4 ISO to AAIS Commercial Code Conversion ISO Class AAIS Class ISO Description Boarding and Lodging Houses, Rooming Houses, Fraternities and Sororities, Dormitories - Up to 10 Units Boarding and Lodging Houses, Rooming Houses, Fraternities and Sororities, Dormitories Units Boarding and Lodging Houses, Rooming Houses, Fraternities and Sororities, Dormitories - Over 30 Units Convents, Monasteries and Rectories, Orphan Homes, Nurses' Homes, Sisters' Homes - Up to 10 Units Convents, Monasteries and Rectories, Orphan Homes, Nurses' Homes, Sisters' Homes Units Convents, Monasteries and Rectories, Orphan Homes, Nurses' Homes, Sisters' Homes - Over 30 Units Apartments without Mercantile Occupancies - Up to 10 Units Apartments without Mercantile Occupancies Units Apartments without Mercantile Occupancies - Over 30 Units Apartments with Mercantile Occupancies - Up to 10 Units Apartments with Mercantile Occupancies Units Apartments with Mercantile Occupancies - Over 30 Units Condominiums without Mercantile Occupancies - Up to 10 Units Condominiums without Mercantile Occupancies - Over 30 Units Condominiums with Mercantile Occupancies - Up to 10 Units Condominiums with Mercantile Occupancies Units Condominiums with Mercantile Occupancies - Over 30 Units Mercantile - Sole Occupancy Only - Not Otherwise Classified -Low Susceptibility Mercantile - Sole Occupancy Only - Tire, Battery and AccessoryDealers without Tire Recapping and Vulcanizing Mercantile - Sole Occupancy Only - Wearing Apparel, Textiles,Shoes Mercantile - Sole Occupancy Only - Alcoholic Beverages other than Bars Mercantile - Sole Occupancy Only - Food Products, Retail Bakeries, Beverages other than Alcoholic Mercantile - Sole Occupancy Only - Baking on Premises, No Delivery to Outlets Mercantile - Sole Occupancy Only - Bars and Taverns Mercantile - Sole Occupancy Only - Motor Vehicles, No Repair Mercantile - Sole Occupancy Only - Boat and Marine Supply Dealers Mercantile - Sole Occupancy Only - Drugs Mercantile - Sole Occupancy Only - Electrical Goods, Hardwareand Machinery Mercantile - Sole Occupancy Only - Furniture and Home Furnishings other than Appliances Mercantile - Sole Occupancy Only - Jewelry Mercantile - Sole Occupancy Only - Sporting Goods Mercantile - Sole Occupancy Only - Not Otherwise Classified - Moderate Susceptibility Mercantile - Sole Occupancy Only - Not Otherwise Classified -High Susceptibility Greenhouses - Sole Occupancy Only Mercantile - Multiple Occupancy without 0564 Occupant Mercantile - Multiple Occupancy with 0564 Occupant Government Offices Banks and Offices other than Governmental Motels and Hotels without Cooking - Up to 10 Units Motels and Hotels without Cooking Units Motels and Hotels without Cooking - Over 30 Units Golf, Tennis and Similar Sport Facilities without Cooking Clubs, Not Otherwise Classified, Including Fraternal and UnionHalls Motion Picture Studios

5 ISO to AAIS Commercial Code Conversion ISO Class AAIS Class Theaters Excluding Drive-ins Drive-in Theaters Skating Rinks - Roller Rinks Bowling Alleys without Cooking Halls and Auditoriums Recreational Facilities, Not Otherwise Classified Boys' and Girls' Camps Dance Halls, Ballrooms and Discotheques Hospitals Nursing and Convalescent Homes Churches and Synagogues Dry Cleaners and Dyeing Plants, other than Self-Service Laundries, other than Self-Service Self-Service Laundries and Dry Cleaners Light Hazard Service Occupancies Service Occupancies, other than Light Hazard Funeral Homes Auto Parking Garages, Car Washes Gasoline Service Stations Motor Vehicle and Aircraft Repair, with or without Sales Tire Recapping and Vulcanizing, with or without Sales Aircraft Hangars without Repair Penal Institutions Museums, Libraries, Art Galleries (Non-Profit) Schools, Academic ISO Description Fire Departments, Police, Sewage, Water Works and Other Public Buildings Builders' Risk Freight Terminals General Storage Warehouses - Bailee Miscellaneous Products Storage - (Other Than Retail Or Wholesale Or Cold Storage) Household Goods Storage Cold Storage Warehouses Waste and Reclaimed Materials Including Yards Building Supply Yards, Including Retail Lumberyards, Coal andcoke Yards Mill Yards Oil Distributing, Oil Terminals and LPG Tank Farms - IncludingStock Oil Distributing, Oil Terminals and LPG Tank Farms - ExcludingStock Baking on Premises, Delivery to Outlets Beverage Bottlers Excluding Alcoholic Beverages Distilleries and Wineries Textile Mill Products Leather and Leather Products Printing

6 CLASS CODE VMM CODE CONTENTS CODE CONSTRUCTION TERRITORY COINSURANCE WIND ZONE WIND CODE PROTECTION BASE RATE VANDALISM SURCHARGE PROTECTION CONST COINS ADDITIVE MULTI- PLICATIVE SUBTOTAL CONDITION CHARGE FINAL RATE BLDG. FIRE - * * + * = + = BLDG. E.C. + * 1.00 * + * = + = CONTENTS FIRE - * * + * = + = CONTENTSE.C. + * 1.00 * + * = + = POLICY # ADDITIVE FIRE DEDUCTIBLE MULTIPLICATIVE FIRE DEDUCTIBLE FINAL RATE LIMIT BLDG FIRE * = PREMIUM BLDG E.C. * = ADDITIVE E.C. MULTIPLICATIVE E.C. DEDUCTIBLE CONTENTS * = FIRE CONTENTS E.C. * =

7 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL 1.1 Eligible Risks Ineligible Risks...1 Rule 2. Definitions Construction Protection Location...2 Rule 3. Policywriting Instructions Policy Format Declarations Page Policy Term Changes Cancellation Contributing Insurance Manual Revisions Loss Payable Options...4 Rule 4. Coinsurance Property Coverage...5 Rule 5. Deductibles Minimum Deductible Rate Modification Occurrence Deductible...5 Rule 7. Property Coverage Parts Building and Personal Property Building Property Business Personal Property Builders' Risks Completed Value Reconstruction or Renovation Condominium Buildings Building Property Business Personal Property Condominium Units Business Personal Property...10 Rule 8. Coverage Options...10 Rev 1.0 Table of Contents January 2003 Page -1-

8 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL 8.6 Antennas Signs Trees, Shrubs and Plants...11 Rule 9. Time Element Coverage Parts Earnings Coverage...12 Rule 12. Perils Parts CP-80 and CP Perils Rating Information...13 Rule 13. Perils Options Excluding Covered Perils...14 Rule 16. Other Premium Modifications Protective Devices Sprinklered Properties Cooking Modifications Automatic Fire Extinguishing System Exhaust System (Absence of) Large Area Modifications...16 Rule 17. Risk Classification Classification Section Class Description and Class Code Susceptibility Code Vandalism Multiple Occupancy Risk Classification Buildings Contents...19 Rule 18. Premium Determination Minimum Premiums Mid-Term Changes Retroactive Effective Dates Mid-Term Effective Dates Additional or Return Premiums Waiver of Premiums Basic Rating Information Mixed Construction Calculation of Premium...20 Rev 1.0 Table of Contents January 2003 Page -2-

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10 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Eligibility Eligibility for coverage under the Commercial Properties Program is limited to risks that can be rated on a class basis. Class rating involves the use of rating information developed for groups of risks that have similar features, such as occupancy, construction, protection, and size. 1.1 Eligible Risks Habitational, mercantile, non-manufacturing, and warehousing properties (Class Codes ) are eligible for coverage under this program. Habitational occupancies include: apartment houses dormitories nursing homes apartment mercantile fraternity houses orphanages boarding houses lodging houses rooming houses convents monasteries sorority houses Habitational properties can include private garages for the occupants. Special rules may apply to specific properties/exposures. Refer to Rule Ineligible Risks Manufacturers and processors (Class Codes ), farm operations, and dwellings (Class Code 09900) are not eligible. Rule 2. DEFINITIONS 2.1 Construction The following construction definitions apply to all perils other than Earthquake: Frame -- Buildings where the exterior walls are wood or other combustible materials, including construction where combustible materials are combined with other materials such as brick veneer, stone veneer, wood iron-clad, and stucco on wood. Masonry Joisted -- Buildings where the exterior walls are constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials, and where the floors and roof are combustible (disregarding floors resting directly on the ground). Non-combustible -- Buildings where the exterior walls and the floors and roof are constructed of, and supported by, metal, asbestos, gypsum, or other noncombustible materials. Masonry Non-combustible -- Buildings where the exterior walls are constructed of masonry materials, as described in Masonry Joisted above, with the floors and roof of metal or other non-combustible materials. Modified Fire Resistive -- Buildings where the exterior walls and the floors and roof are constructed of masonry or fire resistive material with a fire resistance rating of one or more, but less than two hours. Fire Resistive -- Buildings where the exterior walls and the floors and roof are constructed of masonry or fire resistive materials having a fire resistance rating of not less than two hours. Rev 1.0 Rules - 1 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

11 2.2 Protection VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Fire protection recognizes fire departments, water supply, and communications. Class rates are calculated recognizing the following protection classifications: Protected -- Building is located within 1,000 feet of a fire hydrant and is within five road miles of a responding fire department. Partially Protected -- Building is located more than 1,000 feet away from a fire hydrant, but is within five road miles of a responding fire department. Unprotected -- Buildings located in areas that are classified as neither protected nor partially protected. 2.3 Location The word "location" as used herein means all interests in real and personal property consisting of and contained in a single building or consisting of and contained in contiguous buildings (Contiguous means abutting, touching, actual contact). 2.4 Reserved for Future Use Rule 3. POLICYWRITING INSTRUCTIONS 3.1 Policy Format A commercial property policy must be written as a monoline policy. The following are components of the monoline format: Monoline Declarations Page and any Supplementary Declarations Pages Table of Contents, CP-1 Common Policy Conditions, FP CL-101 Commercial Property Coverage Conditions, FP CP-100 One or more Coverage Parts: Building and Personal Property Coverage Part, FP CP-12 Builders' Risk Coverage Part, FP CP-14 Condominium Buildings Coverage Part, FP CP-19 Condominium Unit Coverage Part, FP CP-21 Earnings Coverage Part, CP-60 One or more Perils Parts: Fire Perils Part, CP-80 Basic Perils Part, CP-82 Endorsements: Optional Property Coverage, CP-23 Contributing Insurance, CP-124 Loss Payable Options, CP-132 Perils Exclusion, CP-145 Rev 1.0 Rules - 2 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

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13 3.4 Changes VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Coverage can be provided at both the old and new locations for ten days when transferring coverage. Coverage at the old and new locations apply in the proportion that the value at each location bears to the value of all covered property being moved. Other changes can also be made after the policy is written. 3.5 Cancellation Policies cancelled by either the insured or the company must be cancelled in accordance with the cancellation provisions in the Common Policy Conditions, CL-101, or any applicable amendatory endorsements. Compute the return premiums on a pro rata basis. When calculating the return premium, round to the next higher whole dollar. Unless canceling a policy as of the inception date, retain the minimum premium. 3.6 Reserved for Future Use 3.7 Reserved for Future Use 3.8 Reserved for Future Use 3.9 Contributing Insurance Coverage can be provided on a percentage basis by more than one company. Show the limit of insurance on the declarations for each coverage written by the company. This option is only available when the Association provides the maximum limits it is permitted to offer. Attach Contributing Insurance, CP-124. Show the company's percentage of the total of all contributing insurance in the appropriate place on the CP-124. Use the schedule on the CP-124 to show the total dollar amount of all contributing insurance for each coverage provided on a contributing insurance basis Manual Revisions Revisions to the Commercial Properties rating information, rules, and forms do not apply to policies in force before the effective date of the revision Loss Payable Options The standard mortgage provisions are included in the Property Coverage Parts. Other loss payable options can be used in those instances where the standard mortgage provisions are not applicable. The following options can be used when another party has a financial interest in the property of an insured and requires that it be included as a loss payee under the insurance covering the property. Loss Payable -- This option requires the insurer to pay claims jointly to the insured and the loss payee as their interests may appear. This option does not offer the loss payee any protection if the policy is made void by actions of the insured, nor does it require that advance notice of cancellation or non-renewal be given to the loss payee. Attach Loss Payable Options, CP-132, and indicate which option applies. Rev 1.0 Rules - 4 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

14 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL 3.12 Reserved for Future Use 3.13 Reserved for Future Use 3.14 Reserved for Future Use Rule 4. COINSURANCE Coinsurance provisions, including examples, are included in the Property Coverage Parts. 4.1 Property Coverage The rating information in this manual contemplates 80% coinsurance unless otherwise specified. Options for 90%, 100%, and less than 80% coinsurance are available. Factors are shown in the following table. 4.2 Reserved for Future Use Coinsurance Factor 80% % %.90 Rule 5. DEDUCTIBLES The basic deductible provision is included in the Property Coverage Parts. The rating information shown in this manual contemplates a $500 deductible in any one occurrence, unless otherwise specified. The deductible amount must be shown on the declarations. 5.1 Minimum Deductible The minimum deductible will be based on the combined limit of building and contents for a location. The minimum deductible is shown below. Under $250,001 $500 $250,001 - $500,000 $1,000 over $500,000 $2, Rate Modification Multiply the rates contemplating a mandatory deductible of not more than $500 by the factors shown in the table. Do not apply the factors to the rates for any form contemplating a mandatory deductible equal to or exceeding the amount of the deductible desired under this Plan. When the mandatory deductible amount exceeds $500, increase the deductible factor from the tables by one half the differences between 1.00 and the factor. 5.2 Reserved for Future Use 5.3 Occurrence Deductible Deductibles greater than $500 are only available for property written at 80% or higher coinsurance or equivalent insurance to value. The following per occurrence deductibles are available for Property Coverage Parts: Rev 1.0 Rules - 5 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

15 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL $2,500 $10,000 $50,000 $1,000 $5,000 $25,000 $75,000 Other deductible amounts are not available. Deductibles can vary for each location. If the deductible varies by location, and loss results at more than one location caused by the same occurrence, the largest deductible applies. RATING PROCEDURE Multiply the rates and charges for the covered property by the deductible factors shown below. Credits are shown by "Fire" and "Other" perils. Rev 1.0 Rules - 6 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

16 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL TOTAL AMOUNT OF DEDUCTIBLE CREDIT INSURANCE AT FATORS EACH LOCATION DEDUCTIBLE FIRE OTHER More Than $250,001 $1, , , , , ,000 Or Less More Than $500,001 $2, , , , , ,000 Or Less ,001-1,000,000 $5, , , ,000 Or Less ,001-1,000,000 $10, , , ,000 Or Less ,001-1,000,000 $25, ,000 Or Less ,000,000 Or Less $50, ,000,000 Or Less $75, Reserved for Future Use 5.5 Reserved for Future Use Rule 6. RESERVED FOR FUTURE USE Rule 7. PROPERTY COVERAGE PARTS 7.1 Building and Personal Property Use form CP-12, Building and Personal Property Coverage Part, to cover Building Property and/or Business Personal Property. Coverage for each type of property applies only if a limit is shown on the declarations. Refer to the form for a complete description of coverage Building Property When a limit is shown on declarations for Building Property, coverage for described buildings and structures includes: completed additions; fixtures, machinery, and equipment that are a permanent part of the described building or structure; outdoor fixtures; Rev 1.0 Rules - 7 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

17 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL personal property owned by the insured that is used to maintain or service the described building or structure; and if not covered by other insurance: additions under construction, including alterations and repairs; and materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises, that are used in constructing additions or used for making alterations or repairs. If applicable, include the value of the property listed above in determining the Building Property limit. Use the rating information for buildings shown in this manual Business Personal Property When a limit is shown on the declarations for Business Personal Property, coverage for business personal property in or adjacent to a building or structure described on the declarations includes: the insured's interest in the personal property of others to the extent of the insured's labor, material, or services; the insured's interest as a tenant in improvements to the described building or structure; and leased property which the insured has a contractual responsibility to insure. If applicable, include the value of the property listed above in determining the Business Personal Property limit. Use the rating information for contents shown in this manual. Coverage for tenant's improvements can be included with all other covered business personal property as indicated above, or can be written separately. When writing coverage separately, show a separate limit on the declarations and use the rating information for buildings shown in this manual Builders' Risks Reserved for Future Use Use form CP-14, Builders' Risk Coverage Part -- Completed Value. Refer to the form for a complete description of coverage. Completed Value When Builders' Risk coverage is provided on a completed value basis, the amount of insurance must be written at 100% of the completed value for full recovery in the event of loss. Coverage must be provided from the start of construction. Use the rating information for building Class Code 23000, Builders' Risk shown in this manual Reserved for Future Use Reconstruction or Renovation Building additions, reconstruction, renovations, or subcontractors' interest can be included with building values under the Building and Personal Property Coverage Part, form CP-12, or insured separately under a Builders' Risk Coverage Part or form CP-14. Use the rating information for reconstruction and renovation in this manual. Rev 1.0 Rules - 8 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

18 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL 7.3 Condominium Buildings Use form CP-19, Condominium Building Coverage Part, to provide coverage for condominium building property and/or business personal property. Coverage for each type of property applies only if a limit is shown on the declarations. Refer to the form for a complete description of coverage Building Property When a limit is shown on declarations for Building Property, coverage for described buildings and structures includes: completed additions; fixtures, machinery, and equipment that are a permanent part of described buildings and structures; outdoor fixtures; personal property owned by the insured that is used to maintain or service the described buildings or structures; and if not covered by other insurance: additions under construction, including alterations and repairs; and materials, equipment, supplies, and temporary structures on or within 100 feet of the described premises that are used in constructing additions or used for making alterations or repairs. If required by the Condominium Association Agreement, the limit shown on the declarations for a described building or structure also includes the following types of property contained within each condominium unit: fixtures, improvements, and alterations that are a part of a described building or structure; and refrigerators, stoves, ovens, dishwashers, clothes washers and dryers, security devices, and other housekeeping appliances. If applicable, include the value of the property listed above in determining the Condominium Building Property limit. Use the rating information for buildings shown in this manual Business Personal Property When a limit is shown on the declarations for Business Personal Property, coverage for business personal property in or adjacent to a building or structure described on the declarations includes: the insured's interest in the personal property of others to the extent of the insured's labor, material, or services; personal property owned by the insured or owned indivisibly by all unit-owners; and leased property which the insured has a contractual responsibility to insure. If applicable, include the value of the property listed above in determining the Business Personal Property limit. Use the rating information for contents shown in this manual. Rev 1.0 Rules - 9 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

19 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Reserved for Future Use 7.4 Condominium Units Use form CP-21, Condominium Unit Coverage Part, to provide coverage for individual condominium unit-owner's business personal property, including fixtures, improvements, betterments, and/or alterations. When a coinsurance percentage of 80% or more is shown on the declarations and personal property is covered, limited coverage for owned condominium units is also included under the Building and Personal Property Coverage Part, form CP Business Personal Property When a limit is shown on the declarations for Business Personal Property, coverage for business personal property in or adjacent to a building or structure described on the declarations includes: fixtures, improvements, and alterations included with or added to the condominium unit and owned by the insured; the insured's interest in the personal property of others to the extent of the insured's labor, material, or services; and leased property which the insured has a contractual responsibility to insure. If applicable, include the value of the property listed above in determining the Business Personal Property limit. Use the rating information for contents shown in this manual. Reserved for Future Use Reserved for Future Use Rule 8. COVERAGE OPTIONS 8.1 Reserved for Future Use 8.2 Reserved for Future Use 8.3 Reserved for Future Use 8.4 Reserved for Future Use 8.5 Reserved for Future Use 8.6 Antennas When a coinsurance percentage of 80% or more is shown on the declarations, limited coverage for outdoor radio, television, satellite, dish-type, or other antennas and their masts, towers, and lead-in wiring is provided under the Building and Personal Property Coverage Part, form CP-12; the Condominium Building Coverage Part, form CP-19; and the Condominium Unit Coverage Part, form CP-21. Separate coverage can be provided by individually scheduling each antenna with a specific limit. Attach Antenna Coverage, CP-606. Show the description of property, coinsurance, Perils Part, and limit on the schedule. Use the rating information in the Special Classes rate pages of this manual to determine the additional premium. Rev 1.0 Rules - 10 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

20 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL 8.7 Reserved for Future Use 8.8 Reserved for Future Use 8.9 Reserved for Future Use 8.10 Reserved for Future Use 8.11 Reserved for Future Use 8.12 Reserved for Future Use 8.13 Reserved for Future Use 8.14 Reserved for Future Use 8.15 Reserved for Future Use 8.16 Reserved for Future Use 8.17 Reserved for Future Use 8.18 Reserved for Future Use 8.19 Reserved for Future Use 8.20 Reserved for Future Use 8.21 Signs When a coinsurance percentage of 80% or more is shown on the declarations, limited coverage for outdoor signs is provided under the Building and Personal Property Coverage Part, form CP-12; the Condominium Building Coverage Part, form CP-19; and the Condominium Unit Coverage Part. When a higher limit is needed, separate coverage can be provided by scheduling each sign with a specific limit. Attach Outdoor Signs, CP-605. Show the description of property, coinsurance, Perils Part, and limit on the schedule as indicated Reserved for Future Use 8.23 Reserved for Future Use 8.24 Reserved for Future Use 8.25 Reserved for Future Use 8.26 Trees, Shrubs and Plants When a coinsurance percentage of 80% or more is shown on the declarations, limited coverage for outdoor trees, shrubs, and plants not held for sale is provided under the Building and Personal Property Coverage Part, CP-12; the Condominium Building Coverage Part, CP-19; and the Condominium Unit Coverage Part, CP-21. Separate coverage can be provided per location. However, trees, shrubs, and plants grown for commercial purposes or for standing timber are ineligible. Attach Trees, Shrubs, and Plants Coverage, CP-610. Assign separate limits per each tree, each shrub, and each plant and an aggregate limit per occurrence for all items per location. Show the limits and the Perils Part on the schedule. Rev 1.0 Rules - 11 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

21 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL When coverage for the vehicle peril applies, damage to trees, shrubs, and plants caused by vehicles can be excluded by indicating so on the schedule with an "X." Use the rating information in the Special Class section of this manual to determine the additional premium Reserved for Future Use Rule 9. TIME ELEMENT COVERAGE PARTS Time element coverage is available for mercantile or non-manufacturing risks. Mercantile or non-manufacturing risks are risks where the business consists principally of the sale or storage of merchandise or furnishing a service. Manufacturing risks are risks where the business consists principally of changing raw stock to finished stock by aging, assembling, converting, seasoning, or other processes. 9.1 Reserved For Future Use 9.2 Earnings Coverage Use Earnings Coverage Part, form CP-60, to provide coverage for loss of earnings (including rents). Refer to Earnings Coverage Part, form CP-60, for a complete description of coverage. Only one option is available. It is: Option 1 Not Available; Option 2 Not Available Option 3 Rents only. Coverage is provided for the option when shown by a limit on the declarations. When Option 3 is selected, earnings means only rents. A separate limit must apply to each building or location. Use the fire and extended coverage rating information for buildings multiplied by the Earnings Coverage factors shown below for the applicable occupancy. Earnings Coverage factors are shown by payment option: Monthly Limitation. Payment options must be shown on the declarations. Rev 1.0 Rules - 12 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

22 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Monthly Mercantile Limitation or Non-Mfg Manufacturing Rental 1/3 not eligible not eligible /4 not eligible not eligible /6 not eligible not eligible /12 not eligible not eligible Reserved for Future Use Rule 10. RESERVED FOR FUTURE USE Rule 11. RESERVED FOR FUTURE USE Rule 12. PERILS PARTS One or more of the following Perils Parts must be attached to each policy: CP-80 Fire CP-82 Basic When more than one type of property is described on the declarations, identical Perils Parts must be selected for the various items described. Make an entry on the declarations page to indicate which Perils Part applies CP-80 and CP-82 Perils Parts CP-80 and CP-82 provide coverage for loss caused by the perils listed below. Perils Part Used: CP-80 CP-82 Fire Basic Perils Covered: Fire or Lightning X X Explosion X X Vandalism Sonic Boom Windstorm or Hail Smoke Vehicles and Aircraft Riot or Civil Commotion Sprinkler Leakage Sinkhole Collapse Volcanic Action X X X X X X X X X 12.2 Reserved for Future Use 12.3 Reserved for Future Use 12.4 Perils Rating Information The rating information in this manual for CP-80 and CP-82is shown under the following headings: FIRE, VANDALISM and EXTENDED COVERAGE. A brief explanation of each category is provided below. Detailed rating procedures are provided by Rule 18, Premium Determination. Rev 1.0 Rules - 13 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

23 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Fire -- The FIRE rating information applies to coverage for the perils of Fire or Lightning, Explosion, and Vandalism. Use the FIRE rating information in determining the premium for CP-80 and CP-82. When Perils Part CP-80 is used, subtract the Vandalism credit shown in this manual from the FIRE rating information. Vandalism -- Use the VANDALISM rating information in determining the premium for CP-82, when a Vandalism Rate Group other than "1" applies. The Vandalism Rate Group assignments are shown in the Classifications Section of this manual. More information about the Classifications Section is provided by Rule 17. Extended Coverage -- The EXTENDED COVERAGE rating information applies to coverage for the following perils: Sonic Boom Smoke Sinkhole Collapse Windstorm or Hail Vehicles Volcanic Action Sprinkler Leakage Aircraft Riot or Civil Commotion Use the EXTENDED COVERAGE rating information in determining the premium for CP-82. Rule 13. PERILS OPTIONS 13.1 Excluding Covered Perils Perils otherwise covered can be excluded from the Perils Parts. Attach Perils Exclusion, CP-145, and identify perils to be excluded. Rule 14. RESERVED FOR FUTURE USE Rule 15. RESERVED FOR FUTURE USE Rule 16. OTHER PREMIUM MODIFICATIONS 16.1 Protective Devices The installation and maintenance of certain protective devices may be required. Protective devices include: fire alarm systems sprinkler systems Reserved for Future Use Sprinklered Properties Multiply the building and contents fire rates by the factors for this rule shown below, to reflect the existence of a standard automatic sprinkler system. Class Codes: ,20100,20200, ,21300, 21400,21500,21910,21920,22100,22700,22800 Rev 1.0 Rules - 14 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

24 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Construction Frame or Mod. FR Masonry Non- Masonry & Fire Joisted Combust. Non-Comb. Resistive All Other Classes Large area modifications (Rule 16.3) are not applicable to sprinklered areas. The cooking modifications (Rule 16.2) in sprinklered areas should include a credit for automatic extinguishing systems. Attach Protective Devices, CP-614, when the insured controls the sprinkler system. Identify the protective device on the declarations or on the schedule of the CP Cooking Modifications The building and contents fire rates must be adjusted to recognize restaurant occupancies or commercial cooking facilities on the premises that are open to the general public. In some instances, Restaurant Class Code must be used for rating purposes in lieu of the otherwise applicable Class Code. Multiply the building and contents fire rates by the cooking modification factors shown below. When "(Rest.)" is shown with the applicable cooking modification, multiply the building and contents fire rates for Restaurant Class Code by the cooking modification factors. Rev 1.0 Rules - 15 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

25 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Class Codes: ,20100,20200, ,21300, 21400,21500,21910,21920,22700,22800 Construction Rest. Frame or Mod. FR Area Masonry Non- Masonry & Fire (%) Joisted Combust. Non-Comb. Resistive Under * * 1.00* 0.80* 1.35 over * 1.00* 1.00* 1.00* Rest. code11700 See Code and modifications below any Mercantile Mult-Occ. Code any See Code and modifications below All Other Classes any * Restaurant Additional rate adjustments may also be required to recognize fire extinguishing systems and the absence of safely arranged exhaust systems, as well as other deficiencies or hazards. Apply all required factors in succession Automatic Fire Extinguishing System Multiply the building and contents fire rates by.85 for an approved automatic fire extinguishing system covering cooking equipment and exhaust systems. Attach Protective Devices, CP-614, when the insured controls the sprinkler system. Identify the protective device on the declarations or on the schedule of the CP Exhaust System (Absence of) Multiply the building and contents fire rates by 1.15 for the absence of a needed exhaust system Reserved for Future Use Reserved for Future Use 16.3 Large Area Modifications The building and contents fire rates must be adjusted when the floor area exceeds 15,000 square feet. The chargeable areas do not include: apartment and other habitational areas; basement areas that are vacant or are used for building maintenance; office areas, except where offices are the principal occupancy; Rev 1.0 Rules - 16 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

26 VIRGINIA PROPERTY INSURANCE ASSOCIATION greenhouse areas; or sprinklered areas. COMMERCIAL PROPERTIES MANUAL The area modifications are not applicable to apartments and other habitational risks rated on a unit basis, or Builders' Risks. The area modifications should be based upon the predominant occupancy and construction. Multiply the building and contents fire rates by the Large Area Modification factors for this rule shown below. Class Codes: 11800,20100,20200,21300,21400,21500,21910, 21920,22100,22700,22800 Construction Frame or Mod. FR Area Masonry Non- Masonry & Fire (1000 sq.ft.) Joisted Combust. Non-Comb. Resistive 15 to over Mercantile Codes: , , to over All Other Classes 15 to over Reserved for Future Use Rule 17. RISK CLASSIFICATION For rating purposes, a class code assignment and various other rate group assignments must be made for each risk covered by the Commercial Properties Program. The classification codes are also used for statistical reporting Classification Section Use the Classification Section of this manual to determine the class codes and other rate group assignments that are needed to rate each risk. When an asterisk is shown in place of a class code or rate group assignment, a more specific classification should be used. Detailed rating procedures are provided by Rule 18, Premium Determination Class Description and Class Code The class code reflects the occupancy of the covered building or the occupancy of the premises in which covered personal property is located. A class description and class code assignment is provided for each type of property that is eligible for coverage under the Commercial Properties Program. Rev 1.0 Rules - 17 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

27 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Susceptibility Code The susceptibility code (SUSC) shown in the Classifications Section for each class represents the contents susceptibility of that class to loss caused by the perils of Fire or Lightning and Explosion. The susceptibility codes are used in determining the FIRE premium for personal property in multiple occupancy buildings. There are three different susceptibility codes: A = Low Susceptibility B = High Susceptibility C = Average Susceptibility Reserved for Future Use Reserved for Future Use Reserved for Future Use Vandalism The vandalism (VMM) rate group assignment shown in the Classification Section for each class represents the building and contents susceptibility of that class to loss caused by the peril of Vandalism. Vandalism rate group assignments are used in determining the building and personal property premiums for Perils Parts CP-82 when the vandalism rate group assigned to the applicable class is "2" or higher Multiple Occupancy Risk Classification Buildings When a building contains more than one type of occupancy, use the Classification Section to determine the class code for each occupancy and calculate each occupancy's floor area as a percentage of the building's total floor area. Use the following guidelines to determine the building class code. Rev 1.0 Rules - 18 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

28 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL a. When occupancies share equal areas, use the class code with the highest FIRE rating information. b. When the building contains only multiple mercantile occupancies, regardless of area, use the appropriate Building Mercantile Multiple Occupancy class code ( ). c. When occupancies are 100% habitational, use the predominant Habitational class code for the total number of habitational units. d. When occupancies are 75% or more habitational and the remaining occupancies are Offices (20100 or 20200), Light Hazard Service (21910), or Funeral Homes (21920), use the predominant Habitational class code for the total number of habitational units. e. When occupancies are 75% or more habitational and the remaining occupancies are other than Offices (20100 or 20200), Light Hazard Service (21910), or Funeral Homes (21920), use the appropriate Apartment Mercantile class code (01340, 01350, or 01360). f. When occupancies are 75% or more Offices and the remaining occupancies are other eligible occupancies, use the predominant Office class code (20100 or 20200). g. For all others, disregard any habitational or office occupancies and use the class code for the remaining occupancy with the highest percentage of floor area Contents When a building contains more than one type of occupancy, use the following steps to select the contents class code for the covered personal property. Step 1 Use the Classification Section to determine the class code and the susceptibility code for the contents of the covered occupancy. The class code for the covered occupancy is used for statistical reporting. Step 2 Use the procedures described under Rule to determine the class code for the building in which the contents are located. Step 3 Use the contents rating information for the building class code determined in Step 2 in determining the personal property premium for the contents of a multiple occupancy building. When the contents rating information for the building class code determined in Step 2 is shown for susceptibility codes A, B, and C, use the rating information for the susceptibility code determined in Step 1. Rule 18. PREMIUM DETERMINATION Refer to the company if the rating information shown in this manual has not been converted from loss costs to company rates and premiums Minimum Premiums All policies are subject to a $500 annual minimum premium per location Mid-Term Changes Retroactive Effective Dates Use the rates and rules in effect on the policy inception date when making coverage changes that become effective as of policy inception. Rev 1.0 Rules - 19 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

29 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Mid-Term Effective Dates Use the rates and rules in effect on the policy inception date when coverage changes become effective after the policy inception or anniversary date. Additional or Return Premiums Prorate additional or return premiums. Retain any minimum premiums that apply. Waiver of Premiums Small additional and return premiums amounting to $15 or less that occur as the result of a mid-term coverage change may be waived. For return premiums, the insured must be notified in writing that a return premium is available; and the return premium must be refunded if requested by the insured Basic Rating Information The rating information shown in this manual applies annually for every $100 of insurance. Unless otherwise stated, the rating information reflects 80% coinsurance and a $500 deductible amount Reserved for Future Use 18.5 Reserved for Future Use 18.6 Reserved for Future Use 18.7 Mixed Construction When rating buildings (or contents in buildings) of mixed construction, use the construction that represents over 50% of the construction of the building. If no construction represents over 50% of the construction of the building, use the highest rated construction Calculation of Premium A separate premium must be determined for each item described on the declarations. Use the rating procedures described in this rule to determine the property and time element premiums for items subject to Perils Parts CP-80 and CP-82. Obtain the following information for each item described on the declarations: Class Code and Rate Group Assignments; Protection, Construction, and Territory-- Also determine if the building or structure has open sides or if personal property is located in building or structure with open sides; or property is located in the open. Rev 1.0 Rules - 20 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

30 VIRGINIA PROPERTY INSURANCE ASSOCIATION Applicable Coverage Part; Applicable Perils Part; Limit of Insurance; Coinsurance Percentage; Vacancy Exposure; COMMERCIAL PROPERTIES MANUAL Commercial Cooking Exposure; and Applicable Deductible Options, Perils Options, Coverage Options, and Premium Modifications Fire - CP-80 and CP-82 Building, Personal Property and Time Element Coverage A Fire premium applies to all items covered by Perils Parts CP-80 or CP-82. Step 1 Select the base FIRE rate for the applicable class code and territory. Use the Special Class rating information for Property in the Open. Refer to Rule 16.2, Cooking Modifications to determine the class code used for rating purposes when the commercial cooking exposure is present. Step 2 For Perils Part CP-80: Subtract the VANDALISM surcharge from the FIRE rate selected in Step 1. For Perils Part CP-82: If the Vandalism rate group is "2" or higher, add the VANDALISM surcharge to the FIRE rate selected in Step 1. When the commercial cooking exposure is present, use the Vandalism rate group assignment for the original class code, whether or not the restaurant code was used to determine the base FIRE rate. Step 3 Multiply the result of Step 2 by the Protection/Construction factor and round to three decimal places. Use the building Protection/Construction factor for Time Element. Step 4 For Coverage Parts CP-12, CP-14, CP-19 and CP-21: Multiply the result of Step 3 by the applicable coinsurance factor when the coinsurance percentage is waived or when it does not equal 80%. Round to three decimal places. Step 5 Add the result of Step 4 to any other applicable FIRE rating information shown in this manual as an "additive" rate increase. Step 6 Multiply the result of Step 5 by any other applicable FIRE rating information shown in this manual as a factor. Round to three decimal places after all factors have been applied. Step 7 Multiply the result of Step 6 by the amount of insurance in hundreds and round to the nearest whole dollar amount. The result of this step is the Fire premium Extended Coverage - CP-82 - Building, Personal Property and Time Element Coverage Building and Personal Property Coverages In addition to the Fire premium described above, an Extended Coverage premium applies to all items covered by Perils Part CP-82. Rev 1.0 Rules - 21 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

31 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL Step 1 Select the EXTENDED COVERAGE rate for the applicable type of property, building construction, and if applicable, territory. Use the Special Class rating information for Property in the Open and multiply the applicable EXTENDED COVERAGE rate by the Territory Multiplier, if any. Round to three decimal places. Step 2 For Coverage Parts CP-12, CP-14, CP-19 and CP-21: Multiply the EXTENDED COVERAGE rate selected or determined in Step 1 by the applicable coinsurance factor when the coinsurance percentage is waived or when it does not equal 80%. Round to three decimal places. For Coverage Part CP-60: Multiply the result of Step 1 by the applicable time element factor and round to three decimal places. Step 3 Add the result of Step 2 to any applicable EXTENDED COVERAGE rating information shown in this manual as an "additive" rate increase. Step 4 Multiply the result of Step 3 by any other applicable EXTENDED COVERAGE rating information shown in this manual as a factor. Round to three decimal places after all factors have been applied. Step 5 Multiply the result of Step 4 by the amount of insurance in hundreds and round to the nearest whole dollar amount. The result of this step is the Extended Coverage premium Reserved for Future Use Reserved for Future Use Reserved for Future Use Reserved for Future Use Additional Premiums - Coverage and Perils Options Use the instructions and rating information in this manual to determine the additional premium for coverage and perils options that are not reflected in modifications made to the FIRE or EXTENDED COVERAGE rates and charges. Round each additional premium computed to the nearest whole dollar amount Per Item Premium/Policy Premium Subtotal The total premium for each item described on the declarations is the sum of the applicable Fire, Extended Coverage and Additional Options premiums described above. The sum of the total premium for each item described on the declarations is the policy premium subtotal. Step 1 Total Premium Add or subtract any flat charges or credits that apply to the entire policy. Step 2 Multiply the result of Step 1 by any factors that apply to the entire policy and round to the nearest whole dollar amount after all factors have been applied. The result of this step is the total premium for the coverage provided by the Commercial Properties policy. Rev 1.0 Rules - 22 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

32 Rule 19. SPECIAL RULES VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL 19.1 Reserved for Future Use 19.2 Reserved for Future Use 19.3 Reserved for Future Use 19.4 Reserved for Future Use 19.5 Buildings Auxiliary to Habitational Buildings Garages and auxiliary buildings with habitational buildings should be rated as follows: use the occupancy for the principal habitational building; consider as ten units; and use construction of auxiliary building Building Material and Salvage Yards When yard factors are not shown, use the construction/protection contents factors for materials in salvage yards. For combustible materials, use the frame contents factors. For non-combustible materials use the non-combustible contents factors Camp Buildings Camp buildings are rated by using the Class Code that best fits the occupancy Reserved for Future Use 19.9 Reserved for Future Use Grain Risks When using the Fire Perils Part, form CP-80, or Basic Perils Part, form CP-82, attach Explosion Limitation for Grain Risks, CP-612, to all policies covering grain elevators, mills, processing plants, or storage tanks. No premium adjustment applies Greenhouses Use the greenhouse building rating information for all applicable perils when rating contents excluding plants and flowers in greenhouses. Use the greenhouse contents rating information for all applicable perils when rating contents including plants and flowers. The frame rating information and factors apply to greenhouses with either wood frames, plastic windows, or frame apron walls. The non-combustible rating information and factors apply to all other greenhouses. Auxiliary buildings are to be rated separately Reserved for Future Use Reserved for Future Use Reserved for Future Use Rev 1.0 Rules - 23 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

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35 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL a. Property Coverages 1) Exclusion pertaining only to losses resulting from biological or chemical events a) The loss is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or b) pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials. 2) Exclusion pertaining to losses resulting from biological or chemical events and other events a) The loss meets one or more of the criteria shown above for losses resulting from biological or chemical events; or b) the total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico, and Canada and business interruption losses exceeds $25,000,000. However, exclusions for non-certified terrorism losses do not apply to any loss that results from an act that is not certified by the Secretary of the Treasury to be an act of terrorism solely because the property and casualty losses resulting from the act do not exceed $5,000,000 in the aggregate. In addition, the non-certified terrorism losses exclusions that are filed under programs providing property coverage for loss by fire, other than the Commercial Inland Marine Program (filed classes), make an exception for loss or damage caused by fire resulting from a terrorist act. However, the exception applies only to direct loss or damage by fire to covered property and does not apply to other loss, such as business interruption loss. No premium adjustment applies. Rev 1.0 Rules - 26 January 2003 Includes copyrighted material from American Insurance Services, Inc., with its permission

36 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 011, 012, 013, 014, 015, 016 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CA B CB CC CC B CC ,11030 B CA B CB CC CC B CC B B CA CC CB CC ,01310 B CC B ,01320 B CA CC CB ,01330 B CC CC B B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 1 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

37 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 011, 012, 013, 014, 015, 016 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CA CC CB B CC CC B B CA CC CB B CC CC B B CC CC B B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 2 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

38 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 011, 012, 013, 014, 015, 016 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B , B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B B CA CC CB B CC CC , B B CA CC CB B CC CC B B CC CC CC B B B CC CC CC B B CA CC CB B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE + COMPLETED VALUE Rev 3.0 Rate Pages - 3 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

39 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 022 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CA B CB CC CC B CC ,11030 B CA B CB CC CC B CC B B CA CC CB CC ,01310 B CC B ,01320 B CA CC CB ,01330 B CC CC B B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 4 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

40 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 022 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CA CC CB B CC CC B B CA CC CB B CC CC B B CC CC B B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 5 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

41 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 022 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B , B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B B CA CC CB B CC CC , B B CA CC CB B CC CC B B CC CC CC B B B CC CC CC B B CA CC CB B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE + COMPLETED VALUE Rev 3.0 Rate Pages - 6 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

42 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 031 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CA B CB CC CC B CC ,11030 B CA B CB CC CC B CC B B CA CC CB CC ,01310 B CC B ,01320 B CA CC CB ,01330 B CC CC B B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 7 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

43 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 031 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CA CC CB B CC CC B B CA CC CB B CC CC B B CC CC B B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 8 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

44 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 031 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B , B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B B CA CC CB B CC CC , B B CA CC CB B CC CC B B CC CC CC B B B CC CC CC B B CA CC CB B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE + COMPLETED VALUE Rev 3.0 Rate Pages - 9 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

45 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 041, 042 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CA B CB CC CC B CC ,11030 B CA B CB CC CC B CC B B CA CC CB CC ,01310 B CC B ,01320 B CA CC CB ,01330 B CC CC B B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 10 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

46 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 041, 042 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CC CC B B CA CC CB B CC CC B B CA CC CB B CC CC B B CC CC B B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE Rev 3.0 Rate Pages - 11 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

47 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES TERRITORY 041, 042 CLASS BASE CLASS BASE CODE * FIRE CODE * FIRE B , B CC CA B CB CC CC B CC B CA B CB CC CC B CC B B CA CC CB CC B CC B B CA CC CB B CC CC , B B CA CC CB B CC CC B B CC CC CC B B B CC CC CC B B CA CC CB B CC CC * B = BUILDING; CA, CB, CC = CONTENTS W/ SUSCEPTIBILITY CODE + COMPLETED VALUE Rev 3.0 Rate Pages - 12 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

48 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS FIRE RATES Rule 2.2 Protection CONSTRUCTION/CLASS FRAME PROTECTION PARTIALLY PROTECTED PROTECTED UNPROTECTED Buildings except code Contents Builders' risks - code MASONRY JOISTED Buildings Contents NON-COMBUSTIBLE Buildings except codes Contents except codes Builders' risks - code Bldg matl - yards code MASONRY NON-COMBUSTIBLE Buildings except code Contents Builders' risks - code MODIFIED FIRE RESISTIVE AND FIRE RESISTIVE Buildings Contents Rev 1.0 Rate Pages - 13 November 2000 Includes copyrighted material from American Insurance Services, Inc., with its permission

49 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS EXTENDED COVERAGE RATES RULE 12.1 PERILS RATING INFORMATION VANDALISM CREDITS AND SURCHARGES CREDITS VANDALISM CREDIT ALL EXCEPT BUILDERS RISK $0.012 COMPLETED VALUE CREDIT BUILDERS RISK $0.020 RATE GROUP SURCHARGES VANDALISM SURCHARGE 1 INCLUDED 2 $ $ $ $2.246 Rev 3.0 Rate Pages - 14 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

50 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL BUILDING & CONTENTS EXTENDED COVERAGE RATES Code De scription Frame Joisted Masonry Non- Combustible Construction Masonry Non- Combustible Modified Fire Resistive Modified Fire Resistive N.O.C. No Open Sides Base Better Best N.O.C. Open Sides 4 X Base 3 X Better 2 X Best Builders Risk 2 X Base 1.5 X Better Best Greenhouses 4 X Base Oil Distributing Station.5 X Base Territory Item Base Better Best 11 Building Inland Contents Building Seacoast Contents Building Becahfront Contents Building Inland Contents Building Seacoast Contents Building Beachfront Contents Building Seacoast Contents Building Inland Contents Building Inland Contents Building Seacoast Contents Masonry Heavy Timber - Rate buildings with masonry walls and heavy timber roof and floors as masonry non-combustible for extended coverage. This rating contemplates roofs and floors at least 2 inches thick and all wood supports at least 6 inches thick. * Non-Combustible and Masonry Non-Combustible - Rate buildings with non-combustible walls and roof and floor construction described below as masonry non-combustible for extended coverage. Rate buildings with masonry walls and roof and floor construction described below as fire resistive for extended coverage. This rating contemplates roof and floors of at least 2 inch concrete on steel supports, or at least 22 gauge metal on steel supports or having a windstorm uplift classification of 90. Rev 3.0 Rate Pages - 15 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

51 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL SPECIAL CLASSES PROPERTY IN THE OPEN - COVERAGE RATES FIRE VAND. Item PART EXTENDED* RATE No. PROPERTY PROT. PROT. UNPROT. COVERAGE GROUP Property not listed below 1a. - Non-combustible with no combustible wrapping, pallets or part b. - Non-combustible with limited combustible part, wrapping or pallets c. - Other STRUCTURES, EQUIPMENT AND OTHER PROPERTY IN THE OPEN Amusement Equipment 4a. - Non-combustible b. - Combustible Artificial Turf Awnings or Canopies 6a. - Non-combustible b. - Combustible Bleachers Bridges 10a. - Masonry b. - Metal c. - Combustible Cooling Towers 11a. - Masonry b. - Metal c. - Combustible Rev 3.0 Rate Pages - 16 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

52 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL SPECIAL CLASSES PROPERTY IN THE OPEN - COVERAGE RATES Drive-in Theatres 14a. - Speakers Screens 14b1. - Masonry b2. - Metal b3. - Combustible Explosives Fences 18a. - Masonry b. - Metal c. - Combustible Hay, Straw or Fibers 40. in Stacks Incinerators 19a. - Masonry b. - Metal Lighting Equipment - Traffic Signs and Signals, Beacons, Flag Poles, Parking Meters and Similar Property 28a. - Non-combustible b. - Part combustible Livestock Pens and Corrals Lumber - Yards See Code Timber, logs, stakes, ties, cordwood Machinery - Heavy, Cranes, etc Rev 3.0 Rate Pages - 17 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

53 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL SPECIAL CLASSES PROPERTY IN THE OPEN - COVERAGE RATES 22. Nursery Stock Pumps or Pump Houses - Water or Sewage 34a. - Masonry b. - Non-combustible c. - Combustible Sawmills - Portable Signs and Billboards - 7b. - Masonry a. - Metal c. - Combustible Smokestacks or 32. Chimneys Swimming Pools 29a1. - Masonry or noncombustible a2. - Combustible above ground b2. - Combustible below ground Tanks, Bins or Silos - Non-combustible contents 30a. - Below ground Above ground 30b1. - Masonry or earth supports b2. - Metal supports b3. - Combustible supports Tanks and Contents - Flammable Liquids or Gases 41a. - Below ground b1. - Masonry or earth supports b2. - Metal supports b3. - Combustible supports Rev 3.0 Rate Pages - 18 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

54 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL SPECIAL CLASSES PROPERTY IN THE OPEN - COVERAGE RATES Tanks, Bins, Silos and Contents - Grain, Seeds, Combustible Solids 42a. - Fire resistive b. - Masonry noncombustible roof Tanks, Bins, Silos and Contents - Grain, Seeds, Combustible Solids 43a. - Masonry combustible roof b. - Non-combustible c. - Combustible Tents and Fabric Covered Structures 31a. - Metal supports b. - Other supports Towers - Radio and Television 32a. - Broadcasting b. - Receiving Transformers 15a. - Masonry supports a. - Non-combustible supports b. - Combustible supports Trees, Shrubs and Plants d. Windmills, etc * EXTENDED COVERAGE The extended coverage rating information for special classes are to be multiplied by the factors shown in the Rating Information Pages. TERRITORY FACTOR Inland 011, 014, 031, Seacoast 012, 015, 022, Beach 013, Rev 3.0 Rate Pages - 19 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

55 Virginia Property Insurance Association Commercial Properties Manual TERRITORIAL DEFINITIONS FIRE AND EXTENDED COVERAGE County Territory Accomack except Beach Area * 012 Beach Area ** 013 Albemarle 011 Alleghany 011 Amelia 011 Amherst 011 Appomattox 011 Arlington except City of Arlington 011 City of Arlington 041 Augusta 011 Bath 011 Bedford 011 Bland 011 Botetourt 011 Brunswick 011 Buchanan 011 Buckingham 011 Rev 1.0 VPIA Territories November 2000 Page 1

56 County Virginia Property Insurance Association Commercial Properties Manual Territory Campbell 011 Caroline 011 Carroll 011 Charles City 011 Charlotte 011 Chesterfield 011 Clarke 011 Craig 011 Culpeper 011 Cumberland 011 Dickenson 011 Dinwiddie 011 Essex 011 Fairfax 014 Fauquier 011 Floyd 011 Fluvanna 011 Franklin 011 Frederick 011 Giles 011 Rev 1.0 VPIA Territories November 2000 Page 2

57 County Virginia Property Insurance Association Commercial Properties Manual Territory Gloucester * 012 Goochland 011 Grayson 011 Greene 011 Greensville 011 Halifax 011 Hanover 011 Henrico 011 Henry 011 Highland 011 Isle of Wight 011 James City 011 King and Queen 011 King George 011 King William 011 Lancaster * 012 Lee 011 Loudoun 011 Louisa 011 Rev 1.0 VPIA Territories November 2000 Page 3

58 County Virginia Property Insurance Association Commercial Properties Manual Territory Lunenburg 011 Madison 011 Mathews * 012 Mecklenburg 011 Middlesex * 012 Montgomery 011 Nelson 011 New Kent 011 Northampton except Beach Area * 012 Beach Area ** 013 Northumberland * 011 Nottoway 011 Orange 011 Page 011 Patrick 011 Pittsylvania 011 Powhatan 011 Prince Edward 011 Prince George 011 Rev 1.0 VPIA Territories November 2000 Page 4

59 County Virginia Property Insurance Association Commercial Properties Manual Territory Prince William 011 Pulaski 011 Rappahannock 011 Richmond 011 Roanoke 011 Rockbridge 011 Rockingham 011 Russell 011 Scott 011 Shenandoah 011 Smyth 011 Southampton 011 Spotsylvania 011 Stafford 011 Surry 011 Sussex 011 Tazewell 011 Warren 011 Washington 011 Rev 1.0 VPIA Territories November 2000 Page 5

60 County Virginia Property Insurance Association Commercial Properties Manual Territory Westmoreland 011 Wise 011 Wythe 011 York * 012 Independent City Territory Bedford 011 Bristol 011 Buena Vista 011 Charlottesville 011 Chesapeake * 012 Clifton Forge 011 Colonial Heights 011 Covington 011 Danville 041 Emporia 011 Fairfax 011 Falls Church 011 Franklin 011 Rev 1.0 VPIA Territories November 2000 Page 6

61 Independent City Virginia Property Insurance Association Commercial Properties Manual Territory Fredericksburg 011 Galax 011 Hampton * 012 Harrisonburg 011 Hopewell 011 Lexington 011 Lynchburg 011 Manassas 011 Manassas Park 011 Martinsville 011 Newport News * 042 Norfolk * 022 Norton 011 Petersburg 041 Poquoson * 012 Portsmouth * 042 Radford 011 Richmond 031 Roanoke 041 Rev 1.0 VPIA Territories November 2000 Page 7

62 Independent City Virginia Property Insurance Association Commercial Properties Manual Territory Salem 011 South Boston 011 Staunton 011 Suffolk 011 Virginia Beach except Beach Area * 015 Beach Area ** 016 Waynesboro 011 Williamsburg 011 Winchester 011 * Seacoast -- Seacoast Territory includes all properties located in the following Counties and Independent Cities, except that territory designated as "Beach Area". Counties Accomack Gloucester Lancaster Mathews Middlesex Northampton Northumberland York Independent Cities Chesapeake Hampton Newport News Norfolk Poquoson Portsmouth Virginia Beach Rev 1.0 VPIA Territories November 2000 Page 8

63 ** Beach Area Virginia Property Insurance Association Commercial Properties Manual City of Virginia Beach -- Starting northward from the North Carolina border, east of line running along the western shore of Back Bay area to where Hell Point Creek empties into North Bay; thence, along Hell Point Creek to Lake Tecumseh and Redwing Lake; from Redwing Lake along a creek to Lake Christine; thence, along South Surfside Avenue to Dare Drive and north to Lake Wesley; across Rudee Inlet to Atlantic Avenue, extending along Atlantic Avenue to Cape Henry Lighthouse. Also, all islands that are part of, or east of, the Chesapeake Bay Bridge Tunnel. Northampton and Accomack Counties -- The following and similar localities not specifically named, being the marshlands, necks, and islands east of the Eastern Shore Peninsula: Northampton County Adams Island Cobb Island Fisherman Island Hog Island Little Cobb Island Long Point Island Mink Island Mockhorn Island Myrtle Island Ship Shoal Island Smith Island Wreck Island Accomack County Assateague Island Assawaman Island Cedar Island Chincoteague Island Matomkin Island Morris Island Parramore Island Rev 1.0 VPIA Territories November 2000 Page 9

64 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM - A C Air Conditioning, Heating, and Refrigeration Dlrs. 2 m C Aircraft - stored in the open NA NA NA C Aircraft Parts and Accessories Dlrs. 2 m C Airline Passenger Terminals 4 m C Airplane Hangars - no repairing 2 m C Airplane Hangars - with repairing 2 m C Amusement Equipment - outside NA NA NA C Amusement Parks - recreational buildings 7 m 3 2 * * Amusement Parks - auxiliary buildings * * * * B Anhydrous Ammonia Dist. 2 l B Antique Shops 2 h A Apartments - up to 10 units HAB m A Apartments - 11 to 30 units HAB m A Apartments - over 30 units HAB m A Apartments - condominiums - up to 10 units HAB m A Apartments - condominiums - 11 to 30 units HAB m A Apartments - condominiums - over 30 units HAB m A Apartments - garden - 1 to 4 units HAB m A Apartments - garden - 5 to 10 units HAB m A Apartments - garden - 11 to 30 units HAB m A Apartments - garden - over 30 units HAB m A Apartment Hotels - with restaurant - up to 10 units 7 m A Apartment Hotels - with restaurant - 11 to 30 units 7 m A Apartment Hotels - with restaurant - over 30 units 7 m A Apartment Hotels - no restaurant - up to 10 units 7 m A Apartment Hotels - no restaurant - 11 to 30 units 7 m A Apartment Hotels - no restaurant - over 30 units 7 m C Apartment Mercantiles - up to 10 units HAB m C Apartment Mercantiles - 11 to 30 units HAB m C Apartment Mercantiles - over 30 units HAB m C Appliance Sales - televisions, radios, or phonographs 10 h C Appliance Sales - not televisions, radios, or phonographs 4 m C Appliance Sales - sewing machines 1 m C Appliance Service - televisions, radios, or phonographs 6 h C Appliance Service - not televisions, radios, or phonographs 6 h C Appliance Service - sewing machines 1 h C Archery Ranges - recreational buildings 7 m C Armories 7 m B Army and Navy Stores 7 h C Army Post Exchanges 6 m 3 1 Page 1

65 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM B Art Galleries - not commercial 1 h C Art Galleries - sales 1 h A Art Studios 1 h C Art Supply Stores 2 h A Asylums 6 m C Athletic Equipment and Sporting Goods Stores - retail 9 h C Athletic Equipment and Sporting Goods Stores - wholesale 9 h C Auction Galleries - not furniture * h B Auction Galleries - furniture 4 h C Auditoriums - no scenery 7 m C Auditoriums - with scenery 7 h C Automobile Body Repair Shops 4 m C Automobile Car Washes 2 m C Automobile Garages - parking or storage 4 m C Automobile Glass Shops 4 m C Automobile Paint Shops 4 m C Automobile Part or Accessory Stores 3 h C Automobile Repair Shops 4 m A Automobile Sales - office only 1 m C Automobile Sales - no service 5 m C Automobile Sales and Service 5 m C Automobile Salvage - wrecking stores 4 h C Automobile Salvage - wrecking yards NA NA NA C Automobile Seat Cover or Top Shops 4 m C Automobile Service Stations 4 m 3 1 Automobile Tires - see tires C Automobile Washes 2 m B C Bakeries - retail with baking 1 m C Bakeries - retail - no baking 1 m C Bakeries - wholesale - no baking 1 m A Banks 1 m C Barber and Beauty Supply Stores 4 h A Barber Shops 1 h C Bars - no cooking 6 m C Bars - with cooking 6 m C Baseball Parks - grand stands or bleachers NA NA NA C Baseball Parks - recreational buildings 7 m C Bathhouses 7 m C Baths 7 m C Beauty and Barber Supply Stores 4 h A Beauty Parlors 1 h B Bedspread or Blanket Stores - retail 4 m B Bedspread or Blanket Stores - wholesale 4 m C Beer Stores 1 l C Beverage Stores - non-alcoholic 1 l C Bicycle Rental 1 m C Bicycle Service 1 m C Bicycle Stores 1 m 3 1 Page 2

66 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM C Billboards NA NA NA C Billiard or Pool Halls 7 h B Blanket or Bedspread Stores - retail 4 m B Blanket or Bedspread Stores - wholesale 4 m C Bleachers - outside NA NA NA A Blood Banks 1 m A Boarding Houses - up to 10 units HAB m A Boarding Houses - 11 to 30 units HAB m A Boarding Houses - over 30 units HAB m C Boat Dlrs. - no repairs 2 m C Boat Docks NA NA NA C Boat Repair Shops 2 m C Boat Storage - buildings 2 m C Boat Storage - yards NA NA NA C Book, Magazine, and Stationary Stores 4 h C Book Stores - second hand 4 h C Booths - exhibit - outside NA NA NA C Bowling Alleys 7 h C Bridges NA NA NA C Builders' Risks NA NA NA A Building and Loan Assn. Offices 1 m C Building Material Dlrs. - not second hand 4 h C Building Material Dlrs. - stores - second hand 4 h C Building Materials Dlrs. - yards - second hand 5 NA NA 1 Buildings - mercantile - multiple occupancy: C - not bars, food, furniture, restaurant NA NA NA C - not bars, food, restaurant (includes furniture) NA NA NA C - not bars, restaurant (includes food) NA NA NA C - not restaurant (includes bars) NA NA NA C - includes restaurants NA NA NA 1 * * Buildings - mercantile - single occupancy NA NA NA * * * Buildings - other NA NA NA * C Bus Stations or Terminals 4 m C C Cafeterias 7 m B Camera Stores 5 h C Camps - all buildings except dwellings 7 m C Candy Stores - no food served 1 h C Car Washes 2 m C Carpet or Rug Cleaners 6 l B Carpet or Rug Stores 4 m C Caterers 7 m C Caves - recreational 7 h A Cemeteries - all buildings except dwellings 1 m C Cemeteries - tombstones NA NA NA C Chemical Laboratories 2 m B Children and Infants Clothing Stores 6 h C China and Glassware Stores 3 l 1 1 Page 3

67 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM A Churches and Synagogues - including auxiliary buildings, except dwellings, habitational, or schools 2 m C Cleaners and Dyers Plants 6 h B Cleaners and Dyers Receiving Stations 6 h A Clinics, Dispensaries, and Infirmaries - offices only 1 m A Clinics, Dispensaries, and Infirmaries - other than offices 6 h B Clothing Stores - children and infants 6 h B Clothing Stores - men and boys 14 years or older 10 h B Clothing Stores - women and girls 14 years or older 10 h B Clothing Stores - other 10 h 3 1 Clothing Stores - see Army and Navy, Department, Discount, Furs, Millinery, Mens Haberdashery, Neckties, Shoes, and Womens Specialty C Clubs - country, golf, polo, tennis - no cooking 7 m C Clubs - country, golf, polo, tennis - with cooking 7 m C Clubs - health 7 m C Clubs - lodges, fraternal 7 m C Clubs - riding 7 m C Clubs - swimming 7 m C Coal, Fuel, Oil, Wood, or Ice Dlrs. 1 m C Coal Yards NA NA NA C Coffee Stores 1 m C Coin or Stamp Stores 7 h B Cold Storage Plants - lockers 4 m C Concessions - check room, etc. 7 m A Condominiums - apartments - up to 10 units HAB m A Condominiums - apartments - 11 to 30 units HAB m A Condominiums - apartments - over 30 units HAB m C Confectionary Stores - no food served 1 h C Confectionary Stores - food served, no cooking 1 h C Confectionary Stores - with cooking 1 h Contractors - Construction and Maintenance A Contractors - construction and maintenance - offices 1 m C Contractors - construction and maintenance - garages - no repairing 4 m C Contractors - construction and maintenance - garages - repairing, no spray painting 4 m C Contractors - construction and maintenance - storage electrical, heating, air conditioning, or sheet metal NA m * C Contractors - construction and maintenance - storage - others NA m * C Contractors - construction and maintenance - equipment in the open NA NA NA 2 Page 4

68 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM C Contractors - construction and maintenance - builders' risks NA NA NA C Contractors' Equipment Dlrs. - no repairing 4 l A Convalescent or Nursing Homes 6 m C Convention Buildings 7 m A Convents - up to 10 units 2 m A Convents - 11 to 30 units 2 m A Convents - over 30 units 2 m A Copy and Duplicating Services 1 h C Cosmetics Dlrs. - wholesale 1 h C Cosmetics Stores - retail 1 h C Cotton Compresses 4 l C Cotton Merchants 1 h C Cotton Storage Warehouses - baled 1 l A Crematoriums 1 m A Currency Exchanges 1 m D C Dairy Product Stores - no food served 2 m C Dairy Product Stores - food served, no cooking 2 m C Dairy Product Stores - with cooking 1 h C Dance Halls 7 m A Day Nurseries 6 m 3 2 Dealers - see store listings C Delicatessens - no cooking 3 m C Delicatessens - with cooking 3 m A Dental Laboratories 1 h C Department Stores 3 m C Diaper Service Laundries 3 l C Discount Stores 6 h B Dog Kennels 1 m C Door, Window, and Millwork Dlrs. 1 m A Dormitories - up to 10 rooms 6 m A Dormitories - 11 to 30 rooms 6 m A Dormitories - over 30 rooms 6 m C Drawbridges NA NA NA B Dressmaking Shops 6 h B Drug Stores - retail 6 m B Drug Stores - wholesale 6 m C Dry Cleaners - plants 6 h B Dry Cleaners - receiving stations 6 h B Dry Goods Stores - retail 4 h B Dry Goods Stores - wholesale 4 h A Dwellings HAB m C Electric Power Co. * * * A Electronic Data Processing Centers 6 h C Engine Repair - small engine 1 m C Engraving - not photo engraving 1 h E - Page 5

69 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM C Equipment and Fixtures Dlrs. - store, office, restaurant, hotel, or bar 4 h B Equipment, Furniture, and Fixtures Dlrs. - store, office, restaurant, hotel, or bar 4 h C Equipment Rental Dlrs. - no television 4 m C Equipment Rental Dlrs. - with television 4 h C Exercise Studios 7 m C Exhibition Buildings 7 m A Exterminators or Fumigators - office 2 m C Exterminators or Fumigators - other 2 m B Fabric Stores - retail 4 h B Fabric Stores - wholesale 4 h C Fair Grounds - buildings 7 m C Fair Grounds - stands and booths 7 NA C Farm Machinery and Equipment Sales 1 l C Farm Tractor Sales - with repairing 1 l C Farm Tractor Sales - without repairing 1 l C Feed, Hay, and Grain Stores 1 h C Fire Extinguisher Service 3 m A Fire Stations 4 m C Five and Ten Cent Stores 3 h C Fixtures and Equipment Dlrs. - store, office, restaurant, hotel, and bar 4 h B Fixtures, Furniture, and Equipment Dlrs. - store, office, restaurant, hotel, and bar 4 h C Florists - greenhouses - including boiler rooms and sheds NA m B Florists - shops - retail 1 h B Florists - wholesale NA h A Fraternity Houses - up to 10 units 6 m A Fraternity Houses - 11 to 30 units 6 m A Fraternity Houses - over 30 units 6 m B Freight Terminals - no explosives 4 h * B Freight Terminals - with explosives 10 h * C Fruit or Vegetable Stores - retail 1 m C Fruit or Vegetable Stores - wholesale NA m C Frozen Food Dlrs. - meat, fish, or poultry 3 m C Frozen Food Dlrs. - not meat, fish, or poultry 1 m B Fuel Oil, Gasoline, or Kerosene Dlrs. 2 l A Fumigators or Exterminators - office 2 m C Fumigators or Exterminators - other 2 m A Funeral Homes 1 m B Furniture Stores - including house furnishings 4 h B Fur Stores - including pelts 8 h G A Garbage Works - reduction or incineration 1 NA NA C Gas Companies * * * B Gas Dlrs. - liquified petroleum gas 2 m F - Page 6

70 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM B Gasoline Dlrs. 2 m 3 1 Gasoline Stations - see Automobile Service Stations C General Stores 4 h C Gemstone - cutting or polishing 7 h C Gift Stores 2 h C Glass Shops 1 l C Glassware and China Stores 3 l C Golf Clubhouses 7 m C Golf Courses - miniature - buildings 2 m C Golf Driving Range - buildings 2 m C Grain Elevators - country 3 h C Grain Elevators - terminal 3 h C Grandstands NA NA NA C Greenhouses NA m C Greeting Card Stores 4 h C Grocery Dlrs. - wholesale 5 m C Grocery Stores - retail - small 5 m C Grocery Stores - retail - over 4000 square feet 6 m C Grocery Stores - retail receipts of $500,000 or more and area over 3,000 square feet 6 m C Gunsmith Shops 10 h H A Hair Stylist or Designer Salons 1 h C Halls - union 7 m C Halls - other 7 m C Hardware Stores - retail 4 h C Hardware Stores - wholesale 4 m B Hatcheries - poultry NA h C Health Clubs 7 m C Hearing Aid Stores 2 h C Heating, Air Conditioning, and Refrigeration Dlrs. 2 m A Hide Stores - raw - not furs or pelts 1 l C Hobby Stores 2 h A Homes for Aged 2 m B Hosiery Stores 4 h C Hospitals Equipment Rental Stores 1 h A Hospitals 6 m A Hospitals - veterinary 1 m A Hotels - with restaurant - up to 10 rooms 7 m A Hotels - with restaurant - 11 to 30 rooms 7 m A Hotels - with restaurant - over 30 rooms 7 m A Hotels - no restaurant - up to 10 rooms 7 m A Hotels - no restaurant - 11 to 30 rooms 7 m A Hotels - no restaurant - over 30 rooms 7 m C Household Appliance Stores - radios, televisions, or phonographs 10 h C Household Appliance Stores - not radios, televisions, or phonographs 4 m C Household Appliance Stores - sewing machines 1 m 3 1 Page 7

71 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM A Housing Projects - 1 to 4 units HAB m A Housing Projects - 5 to 10 units HAB m A Housing Projects - 11 to 30 units HAB m A Housing Projects - 30 or more units HAB m I C Ice Cream Stores - no cooking 2 m C Ice Cream Stores - with cooking 2 m B Ice Dlrs. 2 m A Iron or Steel Dlrs. - not scrap 1 l C Iron or Steel Dlrs. - scrap 1 l C Ivory or Ivory Products Dlrs. 2 l A Jails 2 m C Janitors Supply Dlrs. 1 m C Jewelry Stores - retail - imitation or novelty 7 h C Jewelry Stores - retail - other 10 h C Jewelry Stores - wholesale - imitation or novelty 7 h C Jewelry Stores - wholesale - other 10 h C Juice and Syrup Sales 1 l C Junk Dlrs. - buildings 2 h C Junk Dlrs. - yards NA NA NA 1 - J - - K B Kennels - dogs and pets 1 m C Laboratories - chemical 2 m A Laboratories - dental 1 h A Laboratories - medical 1 h A Laboratories - photo finishing 1 h C Laboratories - research, development, and testing 5 h A Laboratories - X-ray 1 h C Laundries - plants 2 l B Laundries - receiving stations 2 m C Laundries - self-service 2 h C Leather Products Stores 2 h C Leather or Hides Stores - heavy, rough, or sole leather 2 l C Libraries - commercial 2 h B Libraries - other 2 h B Light Bulb or Tube Stores 4 h C Lighting Fixture Stores 6 m C Liquor Stores 6 m C Livestock Sales Barns NA m C Locksmiths Shops 4 m C Luggage Stores - leather 2 h C Luggage Stores - other 2 m L - Page 8

72 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM C Lumberyards - buildings 1 h C Lumberyards - yards 1 NA NA 1 - M C Machinery or Equipment Dlrs. - farm - includes repairing 1 l C Machinery or Equipment Dlrs. - tractors only - no repairing 1 l C Machinery or Equipment Dlrs. - tractors only - with repairing 1 l C Machinery or Equipment Dlrs. - mobile construction or industrial - no repairing 4 l C Machinery or Equipment Dlrs. - mobile construction or industrial - with repairing 4 l C Machinery or Equipment Dlrs. - others - includes repairing 2 l C Magazine Dist. 4 h C Mail Order Houses 6 h C Marine Supply Dlrs. 2 m A Mausoleums 2 m C Meat, Fish, Seafood, or Poultry Stores 3 m A Medical Laboratory 1 h B Mens and Boys Clothing Stores - 14 years or older 10 h B Mens Haberdashery Shops 6 h A Mental Institutions 6 m C Metal Scrap Dlrs. 4 l C Mill Yards 2 NA NA B Millinery Shops 6 h A Missions 2 m C Mobile Home Parks - laundries - tenants only 7 l A Mobile Home Parks - offices 1 m C Mobile Home Parks - recreational buildings 7 m 3 2 * * Mobile Home Parks - other buildings * * * A Monasteries - up to 10 units 2 m A Monasteries - 11 to 30 units 2 m A Monasteries - over 30 units 2 m A Motels - with restaurants - up to 10 rooms 7 m A Motels - with restaurants - 11 to 30 rooms 7 m A Motels - with restaurants - over 30 rooms 7 m A Motels - no restaurant - up to 10 rooms 7 m A Motels - no restaurant - 11 to 30 rooms 7 m A Motels - no restaurant - over 30 rooms 7 m C Motion Picture Film Exchange 2 h A Motion Picture Production - Development, printing, editing, and subsequent operations 1 h C Motion Picture Studios 1 m C Motion Picture Theaters 1 m C Motion Picture Theaters - drive-in 1 m C Motion Picture Theaters - drive-in - speakers and screens NA NA NA B Museums - aquarium 2 h 1 2 Page 9

73 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM C Museums - commercial 2 h B Museums - other 2 h C Musical Instrument Stores - brass 4 l C Musical Instrument Stores - other 4 h N C Navy Ships Service Departments 6 h B Necktie Stores 6 h C Newspaper and Magazine Stands 1 h C Notion Stores 2 h C Nurseries - greenhouses NA m B Nurseries - other NA h C Nurseries - stock in the open NA NA NA A Nursery Schools 6 m A Nursing Homes 6 m A Nurses Homes - up to 10 units 2 m A Nurses Homes - 11 to 30 units 2 m A Nurses Homes - over 30 units 2 m O C Office Fixture & Supply Dlrs. 4 h B Office Furniture, Fixture, and Supply Dlrs. 4 h C Office Machine Dlrs. - no computers 4 h C Office Machine Dlrs. - with computers 4 h C Office Machine Service 4 h A Office Services - mailing, addressing, copying, duplicating 1 h A Offices - government 1 m A Offices - physician, dentist 1 m A Offices - other 1 m C Oil Distributing, Terminals, and LPG Tank Farms - excluding stock 2 l C Oil Distributing, Terminals, and LPG Tank Farms - including stock 2 l C Oil, Gasoline, or Kerosene Refineries 2 m C Oil or Gas Well Supply or Equipment Dlrs. 2 m C Oil Refineries - petroleum 2 m C Optician Stores 2 h A Orphan Homes - up to 10 units 2 m A Orphan Homes - 11 to 30 units 2 m A Orphan Homes - over 30 units 2 m P C Packaging Services - packing and crating * h * B Paint or Wallpaper Stores 1 h B Painting or Picture Stores 1 h C Paper Product Stores 1 h C Parks - recreational buildings 2 m B Pawn Shops 8 h A Penal Institutions 2 m 3 1 Page 10

74 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM C Penny Arcades - recreational buildings 7 h B Pet Shops NA m B Pharmacies - no cooking 6 m A Photo Finishing Laboratories 1 h A Photocopy and Duplication Services 1 h B Photographic Supplies Stores 5 h A Photography Studios 1 h C Picnic Grounds - recreational buildings 7 m C Playgrounds - recreational buildings 2 m C Plumbing Dlrs. 4 l 2, A Police Stations 2 m C Pool and Billiard Halls 7 h B Precious Stone Stores 7 h B Precision and Scientific Tool and Instrument Stores 2 m C Premium or Coupon Redemption Stores 2 h C Produce Stores 1 m C Property in the Open - NOC * NA * * A Psychopathic Institutions 6 m A Public Works - sewage 2 m NA A Public Works - water 2 m NA 1 - R C Race Tracks - recreation buildings 7 m C Race Tracks - stables 1 l C Radio or Television Service Shops 6 h A Radio or Television Stations 6 h C Radio or Television Studios 1 m C Radio or Television Towers and Antenna NA NA NA C Rag Dlrs. - second hand 1 h B Record or Tape Stores - retail 2 h B Record or Tape Stores - wholesale 2 h C Recreational Centers - recreational buildings 7 m C Refreshment Stands - no cooking 7 m C Religious Goods Stores 2 h * C Rental Service Stores - not contractors' equipment 4 h C Rental Service Stores - not contractors' equipment or television 4 m C Restaurant Fixture and Supply Dlrs. 4 h B Restaurant Furniture, Fixture, and Supply Dlrs. 4 h C Restaurants 7 m C Retail or Wholesale Stores - NOC * m A Retirement Homes 2 m C Rifle Ranges - buildings 7 h A Rooming Houses - up to 10 rooms HAB m A Rooming Houses - 11 to 30 units HAB m A Rooming Houses - over 30 units HAB m C Rubber Stock Dlrs. - salvage 4 l C Rug or Carpet Cleaners 6 l 3 1 Page 11

75 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM - S B Sales Barns - stables NA l B Salvage Goods Stores 2 h A Sanitariums - not hospitals 6 m A Savings and Loan Associations 1 m A Schools - not commercial - including auxiliary buildings other than dormitories 6 m C Schools - bleachers or grandstands NA NA NA A Schools - commercial, business, or trade 6 m 3 2 Schools - dormitories - see dormitories C Schools - stadiums 2 m B Second Hand Goods Stores 2 h C Seed, Feed, and Hay Stores 1 h A Service Risks - light hazard - NOC * m * C Service Risks - other - NOC * m * 1 Service Stations - see Automobile Service Stations A Sewage Works 2 m C Sewing Machine Sales 1 h C Sewing Machine Service 1 h C Shoe Repair Shops 4 m A Shoe Shine Shops 4 m B Shoe Stores - retail 4 m B Shoe Stores - wholesale 4 l C Shooting Galleries - recreational buildings 2 h C Sign Erection and Repair Shops 2 m C Sign Painting Shops - not spray 3 m C Sign Painting Shops - spray 3 m C Signs - outside NA NA NA A Sisters Homes - up to 10 units 2 m A Sisters Homes - 11 to 30 units 2 m A Sisters Homes - over 30 units 2 m C Skating Rinks - buildings - ice or roller 2 m A Sorority Houses - up to 10 units 6 m A Sorority Houses - 11 to 30 units 6 m A Sorority Houses - over 30 units 6 m C Sporting Goods and Athletic Equipment Stores - retail 9 h C Sporting Goods and Athletic Equipment Stores - wholesale 9 h C Stables - boarding, livery, and racing 1 l B Stables - private 1 l C Stables - riding clubs 7 m B Stables - sales NA l C Stadiums 2 m C Stands - exhibit - outside NA NA NA C Stationary Stores 4 h A Steel or Iron Dlrs. - no scrap 1 l C Steel or Iron Dlrs. - scrap 1 l C Store and Office Fixture and Supply Dlrs. 4 h 3 1 Page 12

76 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM B Store and Office Furniture, Fixture, and Supply Dlrs. 4 h 3 1 Store Buildings - multiple occupancy C - not bars, food, furniture, restaurant NA NA NA C - not bars, food, restaurant (includes furniture) NA NA NA C - not bars, restaurant (includes food) NA NA NA C - not restaurant (includes bars) NA NA NA C - includes restaurants NA NA NA 1 Store Buildings - single occupancy - see occupancy listing C Stores - NOC * m C Street Banners NA NA NA C Supermarkets 6 m C Swimming Pools - buildings 2 l C Swimming Pools - outdoor NA NA NA B Tailor Shops 6 h C Taverns - no cooking 6 m C Taverns - with cooking 6 m C Taxidermist Shop 2 h C Television or Radio Service Shops 6 h A Television or Radio Stations 6 h C Television or Radio Studios 1 m C Television or Radio Towers and Antennas NA NA NA C Tennis or Handball Courts - buildings 7 m C Theaters - motion picture 1 m C Theaters - motion picture - drive-in 1 m C Theaters - motion picture - drive-in speakers and screens NA NA NA C Theaters - motion picture or television studios 1 m C Theaters - no scenery 1 m C Theaters - with scenery 1 h A Ticket Agencies - offices 1 m C Tie, Post, or Pole Yards NA NA NA C Tire Dlrs. - no recapping 3 l C Tire Dlrs. - with recapping 3 l C Tire Recapping or Retreading Shops 3 l C Tobacco Rehandling or Warehousing Buildings 6 l C Tobacco Sales Warehouses 4 l C Tobacco Stores - retail 6 h C Tobacco Stores - wholesale 6 h C Tool Dlrs. - retail 4 h C Tool Dlrs. - wholesale 4 m C Toy Stores 1 h T - - U A Undertaking Parlors 1 m C United Service Organizations 2 m 2 2 Page 13

77 VIRGINIA PROPERTY INSURANCE ASSOCIATION COMMERCIAL PROPERTIES MANUAL CLASSIFICATION SECTION Class SUSC Class Description Special SL EQ VMM - V C Vacant Buildings * NA NA C Variety Stores 3 h B Vending Machines 6 h C Venetian Blind Mfr. 4 h A Veterinary Hospitals 1 m W B Wallpaper or Paint Stores 1 h B Warehouses - cold storage * m B Warehouses - furniture 4 m B Warehouses - general merchandise 4 h * 1 Warehouses - private - see individual listings B Warehouses - tobacco sales 4 l B Warehouses - tobacco storage 6 l C Water Softening Equipment Rental 2 l A Water Works 2 m C Wine Distributors - barrels 6 l C Wholesale Stores - NOC * m B Womens Clothing Stores - 14 years or older 10 h B Womens Specialty Shops 5 h C Wool Merchants 5 l X A X-Ray Laboratories 1 h 2 1 Page 14

78 AAIS -- THIS IS A LEGAL CONTRACT -- CP-1 PLEASE READ IT CAREFULLY Ed 1.0 TABLE OF CONTENTS The following Table of Contents shows how the Commercial Property Coverage is organized. It will help you locate particular sections of the policy. Endorsements may also apply. They are identified on the declarations. Declarations Pages (Additional information may be shown on a separate schedule or supplemental declarations.) Company information Insured information Policy Period Description of Premises Coverages and Forms Limit of Insurance Coinsurance Percentage Deductible Valuation Premium Mortgagee Other Common Policy Conditions Assignment Cancellation Change, Modification, or Waiver of Policy Terms Inspections Examination of Books and Records Commercial Property Coverage Conditions Agreement Definitions Conditions Coverage Parts Additional Definitions Property Covered/Coverage Options/Coverage Property Excluded and Limitations/Exclusions and Limitations Additional Coverages Supplemental Coverages What Must Be Done In Case of Loss Valuation How Much We Pay Loss Payment Other Conditions Perils Parts Additional Definitions Perils Covered Perils Excluded Additional Property Excluded and Limitations Additional Coverages How Much We Pay (CP-89) CP-1 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

79 FP CL-101 (01-01) Ed 2.0 COMMON POLICY CONDITIONS 1. Assignment -- This policy is void if it is assigned without our written consent. 2. Cancellation and Nonrenewal -- You may cancel this policy by returning it to us or by giving us a written notice and stating when coverage is to cease. We may cancel this policy by mailing or delivering to you written notice of cancellation at least 5 days before the effective date of cancellation. We will mail or deliver our notice to your last mailing address known to us. The notice will include the specific reason or reasons for cancellation, and will state the time that the cancellation is to take effect. Proof of mailing will be sufficient proof of notice. Your return premium, if any, will be calculated on a pro rata basis. It will be refunded to you with the cancellation notice or within a reasonable time. Payment or tender of the unearned premium is not a condition of cancellation. The cancellation will be effective even if we have not made or offered a refund. 3. Change, Modification or Waiver of Policy Terms -- A change or waiver of terms of this policy must be issued by us in writing to be valid. 4. Inspections -- We have the right, but are not obligated, to inspect your property and operations. This inspection may be made by us or may be made on our behalf. An inspection or its resulting advice or report does not warrant that your property or operations are safe, healthful or in compliance with laws, rules or regulations. Inspections or reports are for our benefit only. This condition applies not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations on our behalf. 5. Examination of Books and Records -- We may examine and audit your books and records that relate to this policy during the policy period and within three years after the policy has expired. 6. Waiver of Small Premiums When this policy is endorsed subsequent to the effective date, any additional or return premiums of $15.00 or less, may be waived by the Virginia Property Insurance Association. However, if the insured requests a refund, the Virginia Property Insurance Association will honor such request. FP CL-101 (01-01) Ed 2.0 Includes Copyrighted Material from American Association of Insurance Services.

80 FP CP-100 Ed 1.0 COMMERCIAL PROPERTY COVERAGE CONDITIONS AGREEMENT In return for your payment of the required premium, we provide the coverage described herein subject to all the terms of the Commercial Property Coverage. This coverage is also subject to the declarations and additional conditions relating to assignment or transfer of rights or duties, cancellation, changes or modifications, inspections, and examination of books and records. Endorsements may also apply. They are identified on the declarations. Certain words have special meaning. These words are shown in "bold type". DEFINITIONS 1. The words you and your mean the persons or organizations named as the insured on the declarations. 2. The words we, us, and our mean the company providing Commercial Property Coverage. 3. Declarations means all pages labeled "Declarations," "Supplemental Declarations," or "Schedules," which pertain to this policy. 4. Limit means the amount of coverage that applies. 5. Pollutant means: a. any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste includes materials to be disposed of as well as recycled, reclaimed, or reconditioned. b. electrical or magnetic emissions, whether visible or invisible, and sound emissions. 6. Terms means all provisions, limitations, exclusions, conditions, and definitions that apply. CONDITIONS 1. Benefit to Others -- Insurance under the Commercial Property Coverage shall not directly or indirectly benefit anyone having custody of your property. 2. Conformity With Statute -- Terms of the Commercial Property Coverage, in conflict with the statutes of the state where the described premises are located, are amended to conform to such statutes. 3. Control of Property -- The Commercial Property Coverage is not affected by any act or neglect beyond your control. 4. Death of an Individual Named Insured -- If you die, your rights and duties under the Commercial Property Coverage pass to your legal representative or other person having proper temporary custody of your property. 5. Liberalization -- If we adopt a revision of forms during a policy period which broadens the Commercial Property Coverage without additional premium, the broadened coverage will automatically apply to this policy. 6. Misrepresentation, Concealment, or Fraud -- This policy is void if proven material facts or circumstances concerning the risk, when assumed, have been misrepresented or concealed. 7. Policy Period -- We cover losses occurring between 12:01 a.m. (standard time) on the inception date and 12:01 a.m. (standard time) on the expiration date at the location of the property involved. 8. Restoration of Limits -- Any loss we pay under the Commercial Property Coverage does not reduce the limits applying to a later loss. 9. Subrogation -- If we pay for a loss under the Commercial Property Coverage we may require that you assign to us any right of recovery against others up to the amount we paid. FP CP-100 Ed AAIS Includes Copyrighted Material from American Association of Insurance Services

81 You may waive your right to recover, in writing, before the loss takes place without voiding coverage. We are not liable for a loss if, after the loss, you impair our right to recover. But, you may waive your right to recover in writing after a loss only as to the following parties: a. someone insured under the Commercial Property Coverage; b. your tenant; c. a business firm owned or controlled by you; or d. a business firm which owns or controls your business. 10. Suit Against Us -- No suit to recover any loss may be brought against us unless: a. the terms of the Commercial Property Coverage have been fully complied with; and b. the suit is commenced within two years after the loss. If any applicable law makes this limitation invalid, then suit must begin within the shortest period permitted by the law. 11. Territorial Limits -- We only cover loss within the United States of America, its territories and possessions, Canada, and Puerto Rico. FP CP-100 Ed AAIS Includes Copyrighted Material from American Association of Insurance Services

82 FP-CP-12 Ed (01-01) BUILDING AND PERSONAL PROPERTY COVERAGE PART We cover direct physical loss to covered property at the premises described on the declarations caused by a covered peril. PROPERTY COVERED We cover the following types of property for which a limit is shown on the declarations. BUILDING PROPERTY This means buildings and structures described on the declarations, including: 1. completed additions; 2. fixtures, machinery, and equipment which are a permanent part of the described building or structure; 3. outdoor fixtures; 4. personal property owned by you and used to maintain or service the described building or structure or its premises, including air-conditioning equipment; fire extinguishing apparatus; floor coverings; and appliances for refrigerating, cooking, dish washing, and laundering; 5. if not covered by other insurance; a. additions under construction, alterations, and repairs to the building or structure; and b. materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations, or repairs to the building or structure. BUSINESS PERSONAL PROPERTY This means your business personal property in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. Unless otherwise specified on the declarations, this includes: be legally removed by you; and 3. leased personal property which you have a contractual responsibility to insure, unless otherwise insured by the Commercial Property Coverage under Personal Property of Others. PERSONAL PROPERTY OF OTHERS This means personal property of others: 1. that is in your care, custody, or control; and 2. located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. However, our payment for loss to personal property of others is only for the benefit of the owners of the personal property. PROPERTY EXCLUDED AND LIMITATIONS 1. Animals -- We do not cover animals, including birds and fish, unless owned by others and boarded by you. We do cover animals you own and hold for sale. 2. Antennas, Awnings, Canopies, Fences, and Signs -- Except as provided under Supplemental Coverages, we do not cover outdoor: a. radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring; b. awnings or canopies of fabric or slat construction or their supports; c. fences; or 1. your interest in personal property of others to the extent of your labor, material, and services; 2. your use interest as tenant in improvements to the described building or structure. Improvements are fixtures, alterations, installations, or additions: a. to a building or structure you occupy but do not own; and b. made or acquired at your expense and which cannot d. signs, other than signs attached to buildings. 3. Contraband -- We do not cover contraband or property in the course of illegal transportation or trade. 4. Foundations, Retaining Walls, Piling, Piers, Wharves, or Docks -- We do not cover foundations which are below the lowest basement floor or below ground level if there is no basement; retaining walls that are not part of buildings or structures; or pilings, piers, wharves, or docks. FP-CP Ed (01-01) Includes Copyrighted Material from American Association of Insurance Services

83 FP-CP-12 Ed (01-01) 5. Land; Water; Growing Crops or Lawns; Cost of Excavation, Grading, or Filling; Paved Surfaces; or ADDITIONAL COVERAGES Underground Pipes, Flues, or Drains -- We do not cover: 1. Debris Removal -- We cover the cost to remove the a. land, including land on which the property is located; debris of covered property that is caused by a covered peril. This coverage does not include costs to: b. underground or surface water; c. growing crops or lawns; d. cost of excavations, grading, or filling; e. paved outdoor surfaces, including driveways, parking lots, roads, bridges, and walks; or f. underground pipes, flues, and drains. 6. Money and Securities -- We do not cover accounts, bills, currency, food stamps, or other evidences of debt, lottery tickets not held for sale, money, notes, or securities. 7. Property More Specifically Insured -- We do not cover property which is more specifically insured in whole or in part by any other insurance. We do cover the amount in excess of the amount due from the more specific insurance. 8. Trees, Shrubs, and Plants -- Except as provided under Supplemental Coverages, we do not cover trees; shrubs; plants; and grain, hay, straw, or other crops, when outdoors. However, we do cover trees, shrubs, and plants you own and hold for sale. 9. Valuable Papers and Records -- Research Cost-- Except as provided under Supplemental Coverages, we do not cover the cost to research, replace, or restore the information on valuable papers and records, including those which exist on electronic or magnetic media. 10. Vehicles, Aircraft, and Watercraft -- We do not cover vehicles or self-propelled machines (including aircraft or watercraft and their motors, equipment, and accessories) that are: a. required to be licensed for use on public roads; or b. operated principally away from the described premises. We do cover vehicles or self-propelled machines you manufacture, process, warehouse, or hold for sale. However, this does not include autos you hold for sale. We also cover rowboats or canoes out of water at the described premises. a. extract pollutants from land or water; or b. remove, restore, or replace polluted land or water. We do not pay any more under this coverage than 25 percent of the amount we pay for the direct physical loss. We do not pay more for loss to property and debris removal combined than the limit for the damaged property. However, we pay an additional amount of debris removal expense up to $5,000 when the debris removal expense exceeds 25 percent of the amount we pay for direct physical loss or when the loss to property and debris removal combined exceeds the limit for the damaged property. We do not pay any expenses unless they are reported to us in writing within 180 days from the date of direct physical loss to covered property. 2. Emergency Removal -- We cover loss to covered property while moved or being moved from the described premises for preservation from loss caused by a covered peril. We pay for any direct physical loss to that property. This coverage applies for up to 10 days after the property is first moved. This does not increase the limit. 3. Fire Department Service Charges -- We pay up to $1,000 to cover your liability, assumed by contract or agreement prior to the loss, for fire department service charges. This coverage is limited to charges incurred when the fire department is called to save or protect covered property from a covered peril. No deductible applies. This is an additional limit. 4. Pollutant Clean Up and Removal -- We pay your expense to extract pollutants from land or water at the described premises if the discharge, dispersal, seepage, migration, release, or escape of the pollutants is caused by a covered peril that occurs during the policy period. We pay the cost of testing, evaluating, observing, or recording the existence, level, or effects of pollutants only when the expense of extracting the pollutants is FP-CP Ed (01-01)

84 FP-CP-12 Ed (01-01) covered by this Additional Coverage. This coverage does not include property: The most we pay for each described premises is $10,000 for the sum of all such expenses arising out of a covered peril occurring during each separate 12 month period of this policy. The expenses are paid only if they are reported to us in writing within 180 days from the date the covered peril occurs. This is an additional limit. PERILS COVERED See the applicable Perils Part shown on the declarations. SUPPLEMENTAL COVERAGES If a Coinsurance percentage of 80% or more is shown on the declarations, we provide the following supplemental coverages. Unless otherwise stated, each supplemental coverage: a. applies for loss caused by a covered peril; b. applies to property in or on buildings or structures described on the declarations or in the open (or in vehicles) within 100 feet of the described premises; c. is an additional amount of coverage; and d. is not subject to and not considered in applying coinsurance. 1. The following supplemental coverages apply when a limit is shown on the declarations for either Building Property or Business Personal Property. a. Antennas, Awnings, Canopies, Fences, and Signs -- We pay up to $1,000 for your outdoor: 1) radio, television, satellite, dish-type, or other antennas including their masts, towers, and leadin wiring; 2) awnings or canopies of fabric or slat construction or their supports; 3) fences; or 4) signs. We only cover direct physical loss caused by aircraft, civil commotion, explosion, fire, lightning, or riot, including debris removal expense. 1) in or on a vehicle; 2) in the care, custody, or control of your salesperson; or 3) at any fair or exhibition. 2. The following supplemental coverages apply only when a limit is shown on the declarations for Building Property. a. Increased Costs -- Ordinance or Law -- We pay up to $5,000 for each described premises to cover the increased costs of a covered loss, including debris removal expense, resulting from the enforcement of any ordinance, law, or decree that regulates or requires: 1) the construction, use, or repair of any property; or 2) the demolition of any property, in part or in whole, not damaged by a covered peril. The ordinance, law, or decree must be in force at the time of loss. Under Perils Excluded, Ordinance or Law does not apply to this Supplemental Coverage. b. Newly Acquired Buildings -- We cover your buildings or structures in Virginia being built or that you acquire during the policy period. This coverage applies for 30 days after construction is started or for 30 days from the date you acquire the building or structure; or until you report the newly acquired property to us; whichever occurs first. This coverage does not extend beyond the end of the policy period. You must pay any additional premium due from the date construction is started or the date you acquire the property. We pay up to 25 percent of the limit shown on the declarations for Building Property but not exceeding $250,000 for each building or structure. c. Trees, Shrubs, and Plants -- We pay up to $1,000 for your outdoor trees, shrubs, and plants not held for sale. We only cover loss caused by aircraft, civil commotion, explosion, fire, lightning, or riot. This coverage is limited to $250 on any one tree, shrub, or plant, including debris removal. b. Property Off Premises -- We pay up to $5,000 for covered property while temporarily at a location that you do not own, control, rent, or lease. FP-CP Ed (01-01)

85 FP-CP-12 Ed (01-01) 3. The following supplemental coverages apply only when a limit is shown on the declarations for Business You must pay any additional premium due from that Personal Property. date you acquire the location. a. Condominium Units -- If the described premises is a condominium unit that you own, we cover the fixtures, improvements, and alterations within your unit. We pay up to 10 percent of the limit shown on the declarations for Business Personal Property but not exceeding $20,000 for each building or structure. This is not an additional amount of coverage. b. Extra Expenses -- We pay up to $1,000 for the necessary extra expenses that you incur in order to continue as nearly as practical your normal business following loss by a covered peril. This applies when the damage is to property in the described buildings or structures or in the open (or in vehicles) on or within 100 feet of the described premises. We cover your extra expenses for the time it should reasonably take to resume your normal business, but not longer than the time it should reasonably take to rebuild, repair, or replace the property that has incurred the loss. We do not cover the normal cost of repair, replacement, or restoration of property. We cover expenses in excess of normal that you necessarily incur to reduce loss, but only to the extent they reduce the loss under this coverage. We do not cover the cost of research or other extra expense necessary to reproduce, replace, or restore lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media. We cover expenses in excess of normal that you necessarily incur to reduce loss, but only to the extent that they reduce the loss under this coverage. c. Personal Effects -- We pay up to $500, at each described premises, for personal effects owned by you, your officers, your partners, or your employees. This coverage is limited to $100 on property owned by any one person. d. Personal Property -- Acquired Locations -- We cover your business personal property at locations that you acquire, other than fairs or exhibitions. This coverage applies for 30 days from the date you acquire the location or until you report the acquired location to us, whichever occurs first. This coverage does not extend beyond the end of the policy period. We pay up to 10 percent of the limit shown on the declarations for Business Personal Property but not exceeding $100,000 for each location. e. Personal Property of Others -- We pay up to $2,500, at each described premises, for personal property of others in your care, custody, or control. This coverage is only for the benefit of the owners of the personal property. f. Property in Transit -- We pay up to $1,000 for covered business personal property (other than property in the care, custody, or control of your salesperson) in transit more than 100 feet from the described premises in vehicles you own, lease, or operate. We only cover direct physical loss caused by civil commotion; collision with another vehicle or object, other than the road bed; explosion, fire; hail; lightning; overturn or upset of the vehicle; riot; vandalism; or windstorm. This coverage also includes loss of an entire package, case, or bale from within a locked part of your vehicle caused by theft. Theft must be proven by visible marks of forced entry. g. Valuable Papers and Records -- Research Cost -- We pay up to $1,000 for the cost of research or other expenses necessary to reproduce, replace, or restore lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. WHAT MUST BE DONE IN CASE OF LOSS 1. Notice In case of a loss, you must give us or our agent prompt notice including a description of the property involved (we may request written notice.) 2. Protect Property -- You must take all reasonable steps to protect covered property at and after an insured loss to avoid further loss. We pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a covered peril if a covered peril has already caused a loss to covered property. However, we do not pay for such repairs or emergency measures performed on property which has not been damaged by a covered peril. This does not increase our limit. FP-CP Ed (01-01)

86 FP-CP-12 Ed (01-01) 3. Proof of Loss -- You must send us, within 60 days after our request, a signed, sworn proof of loss. This must VALUATION include the following information: 1. Actual Cash Value -- the value is based on the actual a. the time, place, and circumstances of the loss; cash value at the time of the loss (with a deduction for depreciation), except as provided in paragraphs 3. b. other policies of insurance that may cover the loss; through 8. below. c. your interest and the interests of all others in the property involved, including all mortgages and liens; d. changes in title or occupancy of the covered property during the policy period; e. detailed estimates for repair or replacement of covered property; f. available plans and specifications of buildings or structures; g. detailed estimates of any covered loss of income and expenses; and h. an inventory of damaged and undamaged covered personal property showing in detail the quantity, description, cost, actual cash value, and amount of the loss. You must attach to the inventory copies of all bills, receipts, and related documents that substantiate the inventory. An inventory of undamaged personal property is not required if the total claim for a loss is less than $10,000 and less than five percent of the total limit. 4. Examination -- You must submit to examination under oath in matters connected with the loss as often as we reasonably request and give us sworn statements of the answers. 5. Records -- You must produce records relating to value, loss, and expense and permit copies and extracts to be made of them as often as we reasonably request. 6. Damaged Property -- You must exhibit the damaged and undamaged property as often as we reasonably request and allow us to inspect or take samples of the property. 7. Volunteer Payments -- You must not, except at your own expense, voluntarily make any payments, assume any obligations, pay or offer any rewards, or incur any other expenses except as respects protecting property from further damage. 8. Abandonment -- We do not have to accept any abandonment of property. 9. Cooperation -- You must cooperate in performing all acts required by the Commercial Property Coverage. 2. Reserved for Future Use. 3. Glass -- The value of glass is based on the cost of safety glazing material where required by code, ordinance, or law. 4. Merchandise Sold -- The value of merchandise that you have sold but not delivered is based on the selling price less all discounts and unincurred expenses. 5. Valuable Papers and Records -- The value of valuable papers and records, including those which exist on electronic or magnetic media (other than prepackaged software programs) is based on the cost of blank materials, and the labor to transcribe or copy the records when there is a duplicate. 6. Tenant's Improvements -- The value of tenant's improvements losses is based on the actual cash value if repaired or replaced at your expense within a reasonable time. The value of tenant's improvements losses is based on a portion of your original cost if not repaired or replaced within a reasonable time. This portion is determined as follows: a. Divide the number of days from the date of the loss to the expiration date of the lease by the number of days from the date of installation to the expiration date of the lease; and b. Multiply the figure determined in 6.a. above by the original cost. If your lease contains a renewal option, the expiration of the lease in this procedure is replaced by the expiration of the renewal option period. Tenant's improvements losses are not covered if repaired or replaced at another's expense. 7. Pair or Set -- The value of a lost or damaged article which is part of a pair or set is based on a reasonable proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set. 8. Loss to Parts -- The value of a lost or damaged part of an item that consists of several parts when it is complete is based on the value of only the lost or damaged part or the cost to repair or replace it. FP-CP Ed (01-01)

87 FP-CP-12 Ed (01-01) HOW MUCH WE PAY needed to meet coinsurance requirements) Step b.: $60,000 x $80,000 = Insurable Interest -- We do not cover more than your insurable interest in any property. 2. Deductible -- We pay only that part of your loss over the deductible amount stated on the declarations in any one occurrence. The deductible applies to the loss before application of any coinsurance or reporting provision. 3. Loss Settlement Terms -- Subject to paragraphs 1., 2., 4., 5., and 6. under How Much We Pay, we pay the lesser of: a. the amount determined under Valuation; b. the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or c. the limit that applies to covered property. 4. Coinsurance -- When a coinsurance percentage is shown on the declarations, we only pay a part of the loss if the limit is less than the value of the covered property at the time of the loss multiplied by the coinsurance percentage shown for it on the declarations. Our part of the loss is determined using the following steps: a. Multiply the value of the covered property at the time of the loss by the coinsurance percentage; b. Divide the limit for covered property by the figure determined in 4.a. above; and c. Multiply the total amount of loss, after the application of any deductible, by the figure determined in 4.b. above. The most we pay is the amount determined in 4.c. above or the limit, whichever is less. We do not pay any remaining part of the loss. If there is more than one limit shown on the declarations for this Coverage Part, this procedure applies separately to each limit. Step c.: $21,000 - $1,000 = $20,000 $20,000 x.75 = $15,000 We pay no more than $15,000. We do not pay the remaining $6,000. Example -- Sufficient Insurance Value of covered property $100,000 Coinsurance 80% Limit $80,000 Loss $21,000 Deductible $1,000 Step a.: $100,000 x 80% = $80,000 (minimum limit needed to meet coinsurance requirements) Step b.: $80,000 x $80,000 = 1.00 Step c.: $21,000 - $1,000 = $20,000 $20,000 x 1.00 = $20,000 We pay no more than $20,000 in excess of the deductible. No penalty applies. Example -- Blanket Limit Value of covered property Building at Location 1. $75,000 Building at Location 2. $75,000 Personal Property at Location 2. $50,000 Total Value of covered property $200,000 Coinsurance 80% Limit $128,000 Loss Building at Location 2. $20,000 Personal Property at Location 2. $11,000 Total Loss $31,000 Deductible $1,000 Step a.: $200,000 x 80% = $160,000 (minimum limit needed to meet coinsurance requirements) If there is only one limit shown on the declarations for this Coverage Part, this procedure applies to the total of all covered property to which the limit applies. Example -- Underinsurance Value of covered property $100,000 Coinsurance 80% Limit $60,000 Loss $21,000 Deductible $1,000 Step b.: $128,000 x $160,000 =.80 Step c.: $31,000 - $1,000 = $30,000 $30,000 x.80 = $24,000 We pay no more than $24,000. We do not pay the remaining $7, Insurance Under More Than One Coverage -- If more than one coverage of this policy insures the same loss, we pay no more than the actual claim or loss sustained. Step a.: $100,000 x 80% = $80,000 (minimum limit 6. Insurance Under More Than One Policy -- You may FP-CP Ed (01-01)

88 FP-CP-12 Ed (01-01) have another policy subject to the same plan, of the loss or the actual cash value of covered property, terms, conditions, and provisions as this policy. If you either party may request that these amounts be do, we pay our share of the covered loss. Our share is determined by appraisal. the proportion that the applicable limit under this policy bears to the limit of all policies covering on the same basis. If there is another policy covering the same loss, other than that described above, we pay only for the amount of covered loss in excess of the amount due from that other policy, whether you can collect on it or not. But we do not pay more than the applicable limit. LOSS PAYMENT If either makes a written request for appraisal, each selects a competent, independent appraiser and notifies the other of the appraiser's identity within 20 days of receipt of the written request. The two appraisers then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire. 1. Our Options -- We may: a. pay the value of the loss; b. pay the cost of repairing or replacing the loss; c. rebuild, repair, or replace with property of equivalent kind and quality, to the extent practicable; or d. take all or any part of the damaged property at the agreed or appraised value. We must give you notice of our intentions within 30 days after we have received a satisfactory proof of loss. 2. Your Losses -- We adjust all losses with you. Payment is made to you unless another loss payee is named in the policy. A covered loss is payable 30 days after a satisfactory proof of loss is received, and: a. the amount of the loss has been agreed to in writing; b. an appraisal award has been filed with us; or c. a final judgment has been entered. 3. Property of Others -- Losses to property of others may be adjusted with and paid to: a. you on behalf of the owner; or b. the owner. If we pay the owner, we do not have to pay you. We may also choose to defend any suits arising from the owners at our expense. OTHER CONDITIONS In addition to the policy terms which are contained in other sections of the Commercial Property Coverage, the following conditions apply. The appraisers then determine and state separately the amount of each loss. The appraisers also determine the actual cash value of covered property items at the time of the loss, if requested. If the appraisers submit a written report of an agreement to us, the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. A written agreement by two of these three will establish the amount stated above. Each appraiser is paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire is paid equally by you and us. If there is an appraisal, we retain our right to deny the claim. If we make the written request for an appraisal, we will pay: 1). the reasonable cost for your appraiser; and 2). your share of the cost for the umpire. 2. Mortgage Provisions -- If a mortgagee (mortgage holder) is named in this policy, loss to Building Property shall be paid to the mortgagee and you as their interest appears. If more than one mortgagee is named, they shall be paid in order of precedence. The insurance for the mortgagee continues in effect even when your insurance may be void because of your acts, neglect, or failure to comply with the coverage terms. The insurance for the mortgagee does not continue in effect if the mortgagee is aware of changes in ownership or substantial increase in risk and does not notify us. 1. Appraisal -- If you and we do not agree on the amount FP-CP Ed (01-01)

89 FP-CP-12 Ed (01-01) If we cancel this policy, we notify the mortgagee at least 10 days before the effective date of cancellation if we cancel for your nonpayment of premium, or 30 days before the effective date of cancellation if we cancel for any other reason. We may request payment of the premium from the mortgagee, if you fail to pay the premium. If we pay the mortgagee for a loss where your insurance may be void, the mortgagee's right to collect that portion of the mortgage debt from you then belongs to us. This does not affect the mortgagee's right to collect the remainder of the mortgage debt from you. As an alternative, we may pay the mortgagee the remaining principal and accrued interest in return for a full assignment of the mortgagee's interest and any instruments given as security for the mortgage debt. If we choose not to renew this policy, we give written notice to the mortgagee at least 10 days before the expiration date of this policy. 3. Recoveries -- If we pay you for the loss and lost or damaged property is recovered, or payment is made by those responsible for the loss, the following provisions apply: a. You must notify us promptly if you recover property or receive payment. 4. Vacancy -- Unoccupancy -- We will not pay for any loss or damage if the building where loss or damage occurs has been "vacant" or "unoccupied" for more than: (a) 30 consecutive days before that loss or damage if caused by Vandalism (if it is a Covered Cause of Loss); or (b) 60 consecutive days before that loss or damage if caused by any other Covered Cause of Loss: whether or not such vacancy or unoccupancy begins before the inception of this policy. But we will pay if the building is "unoccupied" due to circumstances that are usual or incidental to the described occupancy. Unoccupied means that the customary activities or operations of the described occupancy are suspended, but business personal property has not been removed. The building or structure shall be considered vacant and not unoccupied when the occupants have moved, leaving the building or structure empty or containing only limited business personal property. Buildings or structures under construction are not considered vacant or unoccupied. b. We must notify you promptly if we recover property, or receive payment. c. Any recovery expenses incurred by either are reimbursed first. d. You may keep the recovered property but you must refund to us the amount of the claim paid, or any lesser amount to which we agree. e. If the claim paid is less than the agreed loss due to a deductible or other limiting term of this policy any recovery is pro rated between you and us based on our respective interest in the loss. FP-CP Ed (01-01)

90 FP CP-14 Ed (01-01) BUILDERS' RISK COVERAGE PART COMPLETED VALUE We cover direct physical loss to covered property at the premises described on the declarations caused by a covered peril. PROPERTY COVERED We cover the following property for which a limit is shown on the declarations. BUILDING PROPERTY UNDER CONSTRUCTION This means buildings and structures described on the declarations, while being built, including: 1. foundations; 2. the following property located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises and intended to become a permanent part of the described building or structure: a. fixtures, machinery, and equipment used to maintain or service the described building or structure or its premises; and b. materials, equipment, and supplies used in construction, alteration, or repair of the building or structure; 3. if not covered by other insurance, temporary structures constructed or assembled on the site and used in construction while at the site. PROPERTY EXCLUDED AND LIMITATIONS 1. Antennas and Signs -- We do not cover outdoor: a. radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring; or b. signs, other than signs attached to buildings. 2. Land, Water, or Growing Crops or Lawns -- We do not cover: a. land, including land on which the property is located; b. underground or surface water; or c. growing crops or lawns. 3. Trees, Shrubs, and Plants -- We do not cover trees; shrubs; plants; and grain, hay, straw, or other crops, when outdoors. ADDITIONAL COVERAGES 1. Debris Removal -- We cover the cost to remove the debris of covered property that is caused by a covered peril. This coverage does not include costs to: a. extract pollutants from land or water; or b. remove, restore, or replace polluted land or water. We do not pay any more under this coverage than 25 percent of the amount we pay for the direct physical loss. We do not pay more for loss to property and debris removal combined than the limit for the damaged property. However, we pay an additional amount of debris removal expense up to $5,000 when the debris removal expense exceeds 25 percent of the amount we pay for direct physical loss or when the loss to property and debris removal combined exceeds the limit for the damaged property. We do not pay any expenses unless they are reported to us in writing within 180 days from the date of direct physical loss to covered property. 2. Emergency Removal -- We cover loss to covered property while moved or being moved from the described premises for preservation from loss caused by a covered peril. We pay for any direct physical loss to that property. This coverage applies for up to 10 days after the property is first moved. This does not increase the limit. 3. Fire Department Service Charges -- We pay up to $1,000 to cover your liability, assumed by contract or agreement prior to the loss, for fire department service charges. FP CP Ed (01-01) Includes Copyrighted Material from American Association of Insurance Services

91 This coverage is limited to charges incurred when the fire department is called to save or protect covered property from a covered peril. No deductible applies. This is an additional limit. 4. Pollutant Clean Up and Removal -- We pay your expense to extract pollutants from land or water at the described premises if the discharge, dispersal, seepage, migration, release, or escape of the pollutants is caused by a covered peril that occurs during the policy period. We pay the cost of testing, evaluating, observing, or recording the existence, level, or effects of pollutants only when the expense of extracting the pollutants is covered by this Additional Coverage. The most we pay for each described premises is $10,000 for the sum of all such expenses arising out of a covered peril occurring during each separate 12 month period of this policy. The expenses are paid only if they are reported to us in writing within 180 days from the date the covered peril occurs. This is an additional limit. PERILS COVERED See the applicable Perils Part shown on the declarations. If the Additional Coverage -- Collapse is included in the Perils Part, we do not pay for loss caused by direct physical loss involving collapse of a building or structure or any part of a building or structure caused by the use of defective material or methods in construction, remodeling, or renovation if the collapse occurs during the course of the construction, remodeling, or renovation. SUPPLEMENTAL COVERAGES We provide the following supplemental coverage. This supplemental coverage: a. applies for loss caused by a covered peril; b. applies to property in or on buildings or structures described on the declarations or in the open (or in vehicles) within 100 feet of the described premises; and c. is an additional amount of coverage. Building Materials and Supplies of Others -- We pay up to $2,500 for building materials and supplies in your care that are owned by others and are intended to become a permanent part of the building or structure. This coverage is only for the benefit of the owners of the building materials and supplies. WHAT MUST BE DONE IN CASE OF LOSS 1. Notice -- In case of a loss, you must give us or our agent prompt notice including a description of the property involved (we may request written notice). 2. Protect Property -- You must take all reasonable steps to protect covered property at and after an insured loss to avoid further loss. We pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a covered peril if a covered peril has already caused a loss to covered property. However, we do not pay for such repairs or emergency measures performed on property which has not been damaged by a covered peril. This does not increase our limit. 3. Proof of Loss -- You must send us, within 60 days after our request, a signed, sworn proof of loss. This must include the following information: a. the time, place, and circumstances of the loss; b. other policies of insurance that may cover the loss; c. your interest and the interests of all others in the property involved, including all mortgages and liens; d. changes in title or occupancy of the covered property during the policy period; e. detailed estimates for repair or replacement of covered property; f. available plans and specifications of buildings or structures; g. detailed estimates of any covered loss of income and expenses; and h. an inventory of damaged and undamaged covered personal property showing in detail the quantity, description, cost, actual cash value, and amount of the loss. You must attach to the inventory copies of all bills, receipts, and related documents that substantiate the inventory. An inventory of undamaged personal property is not required if the total claim for a loss is less than $10,000 and less than five percent of the total limit. FP CP Ed (01-01)

92 4. Examination Under Oath -- You must submit to examination under oath in matters connected with the loss as often as we reasonably request and give us sworn statements of the answers. 5. Records -- You must produce records relating to value, loss, and expense and permit copies and extracts to be made of them as often as "we" reasonably request. 6. Damaged Property -- You must exhibit the damaged and undamaged property as often as we reasonably request and allow us to inspect or take samples of the property. 7. Volunteer Payments -- You must not, except at your own expense, voluntarily make any payments, assume any obligations, pay or offer any rewards, or incur any other expenses except as respects protecting property from further damage. 8. Abandonment -- We do not have to accept any abandonment of property. 3. Loss Settlement Terms -- Subject to paragraphs 1., 2., 4., 5., and 6. under How Much We Pay, we pay the lesser of: a. the amount determined under Valuation; b. the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or c. the limit that applies to covered property. 4. Completed Value -- If the limit is less than the value of the covered property on the date of completion, we only pay a part of the loss. Our part of the loss is determined using the following steps: a. Determine the value of the covered property on the date of completion; b. Divide the limit for covered property by the figure determined in 4.a. above; 9. Cooperation -- You must cooperate in performing all acts required by the Commercial Property Coverage. VALUATION 1. Actual Cash Value -- The value of covered property is based on the actual cash value at the time of the loss (with a deduction for depreciation), except as provided in paragraphs 2. through 4. below. 2. Glass -- The value of glass is based on the cost of safety glazing material where required by code, ordinance, or law. 3. Pair or Set -- The value of a lost or damaged article which is part of a pair or set is based on a reasonable proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set. 4. Loss to Parts -- The value of a lost or damaged part of an item that consists of several parts when it is complete is based on the value of only the lost or damaged part or the cost to repair or replace it. HOW MUCH WE PAY 1. Insurable Interest -- We do not cover more than your insurable interest in any property. 2. Deductible -- We pay only that part of your loss over the deductible amount stated on the declarations in any one occurrence. The deductible applies to the loss before application of any coinsurance or reporting provision. c. Multiply the total amount of loss, after the application of any deductible, by the figure determined in 4.b. above. The most we pay is the amount determined in 4.c. above or the limit, whichever is less. We do not pay any remaining part of the loss. If there is more than one limit shown on the declarations for this Coverage Part, this procedure applies separately to each limit. If there is only one limit shown on the declarations for this Coverage Part, this procedure applies to the total of all covered property to which the limit applies. Example -- Underinsurance Value of covered property on the date of completion $100,000 Limit $60,000 Loss $21,000 Deductible $1,000 Step a.: $100,000 Step b.: $60,000 x $100,000 =.60 Step c.: $21,000 - $1,000 = $20,000 $20,000 x.60 = $12,000 We pay no more than $12,000. We do not pay the remaining $9,000. FP CP Ed (01-01)

93 Example -- Sufficient Insurance Value of covered property on the date of completion $100,000 Limit $100,000 Loss $21,000 Deductible $1,000 Step a.: $100,000 Step b.: $100,000 x $100,000 = 1.00 Step c.: $21,000 - $1,000 = $20,000 $20,000 x 1.00 = $20,000 We pay no more than $20,000 in excess of the deductible. No penalty applies. 5. Insurance Under More Than One Coverage -- If more than one coverage of this policy insures the same loss, we pay no more than the actual claim or loss sustained. 6. Insurance Under More Than One Policy -- You may have another policy subject to the same plan, terms, conditions, and provisions as this policy. If you do, we pay our share of the covered loss. Our share is the proportion that the applicable limit under this policy bears to the limit of all policies covering on the same basis. If there is another policy covering the same loss, other than that described above, we pay only for the amount of covered loss in excess of the amount due from that other policy, whether you can collect on it or not. But we do not pay more than the applicable limit. LOSS PAYMENT 1. Our Options -- We may: a. pay the value of the loss; b. pay the cost of repairing or replacing the loss; c. rebuild, repair, or replace with property of equivalent kind and quality, to the extent practicable; or d. take all or any part of the damaged property at the agreed or appraised value. We must give you notice of our intentions within 30 days after we have received a satisfactory proof of loss. 2. Your Losses -- We adjust all losses with you. Payment is made to you unless another loss payee is named in the policy. A covered loss is payable 30 days after a satisfactory proof of loss is received, and: b. an appraisal award has been filed with us; or c. a final judgment has been entered. 3. Property of Others -- Losses to property of others may be adjusted with and paid to: a. you on behalf of the owner; or b. the owner. If we pay the owner, we do not have to pay you. We may also choose to defend any suits arising from the owners at our expense. CONDITIONS "Subrogation" is amended by the following with respect to this Coverage Part: You may not waive your right to recover from an architect, engineer, or building trades contractor or subcontractor with respect to the described premises unless agreed to in writing by us. OTHER CONDITIONS In addition to the policy terms which are contained in other sections of the Commercial Property Coverage, the following conditions apply. 1. Appraisal -- If you and we do not agree on the amount of the loss or the actual cash value of covered property, either party may request that these amounts be determined by appraisal. If either makes a written request for appraisal, each selects a competent, independent appraiser and notifies the other of the appraiser's identity within 20 days of receipt of the written request. The two appraisers then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire. The appraisers then determine and state separately the amount of each loss. The appraisers also determine the actual cash value of covered property items at the time of the loss, if requested. If the appraisers submit a written report of an agreement to us, the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, they a. the amount of the loss has been agreed to in writing; will submit only their differences to the umpire. A written agreement by FP CP Ed (01-01)

94 two of these three will establish the amounts stated above. Each appraiser is paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire is paid equally by you and us. If there is an appraisal, we retain our right to deny the claim. If we make the written request for an appraisal, we will pay: 1) the reasonable cost for your appraiser; and 2) your share of the cost for the umpire. 2. Mortgage Provisions -- If a mortgagee (mortgage holder) is named in this policy, loss to Building Property shall be paid to the mortgagee and you as their interest appears. If more than one mortgagee is named, they shall be paid in order of precedence. The insurance for the mortgagee continues in effect even when your insurance may be void because of your acts, neglect, or failure to comply with the coverage terms. The insurance for the mortgagee does not continue in effect if the mortgagee is aware of changes in ownership or substantial increase in risk and does not notify us. If we cancel this policy, we notify the mortgagee at least 10 days before the effective date of cancellation if we cancel for your nonpayment of premium, or 30 days before the effective date of cancellation if we cancel for any other reason. a. You must notify us promptly if you recover property or receive payment. b. We must notify you promptly if we recover property, or receive payment. c. Any recovery expenses incurred by either are reimbursed first. d. You may keep the recovered property but you must refund to us the amount of the claim paid, or any lesser amount to which we agree. e. If the claim paid is less than the agreed loss due to a deductible or other limiting term of this policy any recovery is pro rated between you and us based on our respective interest in the loss. 4. When Coverage Ends -- Coverage under this Coverage Part ends when: a. this policy expires or is cancelled; b. the property is accepted by the purchaser; c. you no longer have an interest in the property; d. you abandon the construction with no intention to complete it; e. unless otherwise specified in writing by us, when covered property is occupied or put to its intended use or 90 days after the date of completion whichever occurs first. We may request payment of the premium from the mortgagee, if you fail to pay the premium. If we pay the mortgagee for a loss where your insurance may be void, the mortgagee's right to collect that portion of the mortgage debt from you then belongs to us. This does not affect the mortgagee's right to collect the remainder of the mortgage debt from you. As an alternative, we may pay the mortgagee the remaining principal and accrued interest in return for a full assignment of the mortgagee's interest and any instruments given as security for the mortgage debt. If we choose not to renew this policy, we give written notice to the mortgagee at least 10 days before the expiration date of this policy. 3. Recoveries -- If we pay you for the loss and lost or damaged property is recovered, or payment is made by those responsible for the loss, the following provisions apply: FP CP Ed (01-01)

95 FP-CP-19 Ed- (01-01) CONDOMINIUM BUILDING COVERAGE PART We cover direct physical loss to covered property at the premises described on the declarations caused by a covered peril. PROPERTY COVERED We cover the following types of property for which a limit is shown on the declarations. BUILDING PROPERTY This means buildings and structures described on the declarations, including: 1. completed additions; 2. fixtures, machinery, and equipment which are a permanent part of the described building or structure; 3. outdoor fixtures; 4. personal property owned by you and used to maintain or service the described building or structure or its premises, including air-conditioning equipment; fire extinguishing apparatus; floor coverings; and appliances for refrigerating, cooking, dish washing, and laundering; 5. if not covered by other insurance; a. additions under construction, alterations, and repairs to the building or structure; and b. materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations, or repairs to the building or structure. 6. the following property contained within a unit, regardless of ownership, if required by your Condominium Association Agreement to insure: a. fixtures, improvements, and alterations that are a part of the building or structure; and b. appliances for refrigerating, cooking, dishwash-ing, laundering, security, or housekeeping. This does not include personal property owned by, used by, or in the care, custody, or control of a unit-owner except as provided in paragraph 6. above. BUSINESS PERSONAL PROPERTY This means your business personal property in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. Unless otherwise specified on the declarations, this includes: 1. your interest in personal property of others to the extent of your labor, material, and services; 2. personal property owned by you or owned indivisibly by all unit-owners; and 3. leased personal property which you have a contractual responsibility to insure, unless otherwise insured by the Commercial Property Coverage under Personal Property of Others. Your business personal property does not include personal property owned solely by a unit-owner. PERSONAL PROPERTY OF OTHERS This means personal property of others: 1. that is in your care, custody, or control; and 2. located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. However, our payment for loss to personal property of others is only for the benefit of the owners of the personal property. PROPERTY EXCLUDED AND LIMITATIONS 1. Animals -- We do not cover animals, including birds and fish, unless owned by others and boarded by you. We do cover animals you own and hold for sale. 2. Antennas, Awnings, Canopies, Fences, and Signs -- Except as provided under Supplemental Coverages, we do not cover outdoor: FP-CP ED (01-01) Includes Copyrighted Material from American Association of Insurance Services

96 a. radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring; b. awnings or canopies of fabric or slat construction or their supports; c. fences; or d. signs, other than signs attached to buildings. 3. Contraband -- We do not cover contraband or property in the course of illegal transportation or trade. 4. Foundations, Retaining Walls, Piling, Piers, Wharves, or Docks -- We do not cover foundations which are below the lowest basement floor or below ground level if there is no basement; retaining walls that are not part of buildings or structures; or pilings, piers, wharves, or docks. 5. Land; Water; Growing Crops or Lawns; Cost of Excavation, Grading, or Filling; Paved Surfaces; or Underground Pipes, Flues, or Drains -- We do not cover: a. land, including land on which the property is located; b. underground or surface water; c. growing crops or lawns; d. cost of excavations, grading, or filling; e. paved outdoor surfaces, including driveways, parking lots, roads, bridges, and walks; or f. underground pipes, flues, and drains. 6. Money and Securities -- We do not cover accounts, bills, currency, food stamps, or other evidences of debt, lottery tickets not held for sale, money, notes, or securities. 7. Property More Specifically Insured -- We do not cover property which is more specifically insured in whole or in part by any other insurance. We do cover the amount in excess of the amount due from the more specific insurance. 8. Trees, Shrubs, and Plants -- Except as provided under Supplemental Coverages, we do not cover trees; shrubs; plants; and grain, hay, straw, or other crops, when outdoors. However, we do cover trees, shrubs, and plants you own and hold for sale. 9. Valuable Papers and Records -- Research Cost -- Except as provided under Supplemental Coverages, we do not cover the cost to research, replace, or restore the information on valuable papers and records, including those which exist on electronic or magnetic media. 10. Vehicles, Aircraft, and Watercraft -- We do not cover vehicles or self-propelled machines (including aircraft or watercraft and their motors, equipment, and accessories) that are: a. required to be licensed for use on public roads; or b. operated principally away from the described premises. We do cover vehicles or self-propelled machines you manufacture, process, warehouse, or hold for sale. However, this does not include autos you hold for sale. We also cover rowboats or canoes out of water at the described premises. ADDITIONAL COVERAGES 1. Debris Removal -- We cover the cost to remove the debris of covered property that is caused by a covered peril. This coverage does not include costs to: a. extract pollutants from land or water; or b. remove, restore, or replace polluted land or water. We do not pay any more under this coverage than 25 percent of the amount we pay for the direct physical loss. We do not pay more for loss to property and debris removal combined than the limit for the damaged property. However, we pay an additional amount of debris removal expense up to $5,000 when the debris removal expense exceeds 25 percent of the amount we pay for direct physical loss or when the loss to property and debris removal combined exceeds the limit for the damaged property. We do not pay any expenses unless they are reported to us in writing within 180 days from the date of direct physical loss to covered property. 2. Emergency Removal -- We cover loss to covered property while moved or being moved from the described premises for preservation from loss caused by a covered peril. We pay for any direct FP-CP ED (01-01)

97 physical loss to that property. This coverage applies for up to 10 days after the property is first moved. This does not increase the limit. 3. Fire Department Service Charges -- We pay up to $1,000 to cover your liability, assumed by contract or agreement prior to the loss, for fire department service charges. This coverage is limited to charges incurred when the fire department is called to save or protect covered property from a covered peril. No deductible applies. This is an additional limit. 4. Pollutant Clean Up and Removal -- We pay your expense to extract pollutants from land or water at the described premises if the discharge, dispersal, seepage, migration, release, or escape of the pollutants is caused by a covered peril that occurs during the policy period. We pay the cost of testing, evaluating, observing, or recording the existence, level, or effects of pollutants only when the expense of extracting the pollutants is covered by this Additional Coverage. The most we pay for each described premises is $10,000 for the sum of all such expenses arising out of a covered peril occurring during each separate 12 month period of this policy. The expenses are paid only if they are reported to us in writing within 180 days from the date the covered peril occurs. This is an additional limit. PERILS COVERED See the applicable Perils Part shown on the declarations. SUPPLEMENTAL COVERAGES If a Coinsurance percentage of 80% or more is shown on the declarations, we provide the following supplemental coverages. Unless otherwise stated, each supplemental coverage: a. applies for loss caused by a covered peril; b. applies to property in or on buildings or structures described on the declarations or in the open (or in vehicles) within 100 feet of the described premises; c. is an additional amount of coverage; and d. is not subject to and not considered in applying coinsurance. 1. The following supplemental coverages apply when a limit is shown on the declarations for either Building Property or Business Personal Property. a. Antennas, Awnings, Canopies, Fences, and Signs -- We pay up to $1,000 for your outdoor: 1) radio, television, satellite, dish-type, or other antennas including their masts, towers, and leadin wiring; 2) awnings or canopies of fabric or slat construction or their supports; 3) fences; or 4) signs. We only cover direct physical loss caused by aircraft, civil commotion, explosion, fire, lightning, or riot, including debris removal expense. b. Property Off Premises -- We pay up to $5,000 for covered property while temporarily at a location that you do not own, control, rent, or lease. This coverage does not include property: 1) in or on a vehicle; 2) in the care, custody, or control of your salesperson; or 3) at any fair or exhibition. 2. The following supplemental coverages apply only when a limit is shown on the declarations for Building Property. a. Increased Costs -- Ordinance or Law -- We pay up to $5,000 for each described premises to cover the increased costs of a covered loss, including debris removal expense, resulting from the enforcement of any ordinance, law, or decree that regulates or requires: 1) the construction, use, or repair of any property; or 2) the demolition of any property, in part or in whole, not damaged by a covered peril. The ordinance, law, or decree must be in force at the time of loss. Under Perils Excluded, Ordinance or Law does not apply to this Supplemental Coverage. FP-CP ED (01-01)

98 b. Newly Acquired Buildings -- We cover your buildings or structures in Virginia being built or that you acquire during the policy period. This coverage applies for 30 days after construction is started or for 30 days from the date you acquire the building or structure; or until you report the newly acquired property to us; whichever occurs first. This coverage does not extend beyond the end of the policy period. You must pay any additional premium due from the date construction is started or the date you acquire the property. We pay up to 25 percent of the limit shown on the declarations for Building Property but not exceeding $250,000 for each building or structure. c. Trees, Shrubs, and Plants -- We pay up to $1,000 for your outdoor trees, shrubs, and plants not held for sale. We only cover loss caused by aircraft, civil commotion, explosion, fire, lightning, or riot. This coverage is limited to $250 on any one tree, shrub, or plant, including debris removal. 3. The following supplemental coverages apply only when a limit is shown on the declarations for Business Personal Property. a. Extra Expenses -- We pay up to $1,000 for the necessary extra expenses that you incur in order to continue as nearly as practical your normal business following loss by a covered peril. This applies when the damage is to property in the described buildings or structures or in the open (or in vehicles) on or within 100 feet of the described premises. We cover your extra expenses for the time it should reasonably take to resume your normal business, but not longer than the time it should reasonably take to rebuild, repair, or replace the property that has incurred the loss. We do not cover the normal cost of repair, replacement, or restoration of property. We cover expenses in excess of normal that you necessarily incur to reduce loss, but only to the extent they reduce the loss under this coverage. We do not cover the cost of research or other extra expense necessary to reproduce, replace, or restore lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media. We cover expenses in excess of normal that you necessarily incur to reduce loss, but only to the extent that they reduce the loss under this coverage. b. Personal Effects -- We pay up to $500, at each described premises, for personal effects owned by you, your officers, your partners, or your employees. This coverage is limited to $100 on property owned by any one person. c. Personal Property -- Acquired Locations -- We cover your business personal property at locations that you acquire, other than fairs or exhibitions. This coverage applies for 30 days from the date you acquire the location or until you report the acquired location to us, whichever occurs first. This coverage does not extend beyond the end of the policy period. You must pay any additional premium due from that date you acquire the location. We pay up to 10 percent of the limit shown on the declarations for Business Personal Property but not exceeding $100,000 for each location. d. Personal Property of Others -- We pay up to $2,500, at each described premises, for personal property of others in your care, custody, or control. This coverage is only for the benefit of the owners of the personal property. e. Property in Transit -- We pay up to $1,000 for covered business personal property (other than property in the care, custody, or control of your salesperson) in transit more than 100 feet from the described premises in vehicles you own, lease, or operate. We only cover direct physical loss caused by civil commotion; collision with another vehicle or object, other than the road bed; explosion; fire; hail; lightning; overturn or upset of the vehicle; riot; vandalism; or windstorm. This coverage also includes loss of an entire package, case, or bale from within a locked part of your vehicle caused by theft. Theft must be proven by visible marks of forced entry. FP-CP ED (01-01)

99 f. Valuable Papers and Records -- Research Cost We pay up to $1,000 for the cost of research or other expenses necessary to reproduce, replace, or restore lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. WHAT MUST BE DONE IN CASE OF LOSS 1. Notice -- In case of a loss, you must give us or "our" agent prompt notice including a description of the property involved (we may request written notice). 2. Protect Property -- You must take all reasonable steps to protect covered property at and after an insured loss to avoid further loss. We pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a covered peril if a covered peril has already caused a loss to covered property. However, we do not pay for such repairs or emergency measures performed on property which has not been damaged by a covered peril. This does not increase our limit. 3. Proof of Loss -- You must send us, within 60 days after our request, a signed, sworn proof of loss. This must include the following information: a. the time, place, and circumstances of the loss; b. other policies of insurance that may cover the loss; c. your interest and the interests of all others in the property involved, including all mortgages and liens; d. changes in title or occupancy of the covered property during the policy period; e. detailed estimates for repair or replacement of covered property; f. available plans and specifications of buildings or structures; g. detailed estimates of any covered loss of income and expenses; and h. an inventory of damaged and undamaged covered personal property showing in detail the quantity, description, cost, actual cash value, and amount of the loss. You must attach to the inventory copies of all bills, receipts, and related documents that substantiate the inventory. An inventory of undamaged personal property is not required if the total claim for a loss is less than $10,000 and less than five percent of the total limit. oath in matters connected with the loss as often as we reasonably request and give us sworn statements of the answers 5. Records -- You must produce records relating to value, loss, and expense and permit copies and extracts to be made of them as often as "we" reasonably request. 6. Damaged Property -- You must exhibit the damaged and undamaged property as often as we reasonably request and allow us to inspect or take samples of the property. 7. Volunteer Payments -- You must not, except at your own expense, voluntarily make any payments, assume any obligations, pay or offer any rewards, or incur any other expenses except as respects protecting property from further damage. 8. Abandonment -- We do not have to accept any abandonment of property. 9. Cooperation -- You must cooperate in performing all acts required by the Commercial Property Coverage. VALUATION 1. Actual Cash Value -- the value is based on the actual cash value at the time of the loss (with a deduction for depreciation), except as provided in paragraphs 3. through 6. below. 2. Reserved for Future Use. 3. Glass -- The value of glass is based on the cost of safety glazing material where required by code, ordinance, or law. 4. Valuable Papers and Records -- The value of valuable papers and records, including those which exist on electronic or magnetic media (other than prepackaged software programs) is based on the cost of blank materials, and the labor to transcribe or copy the records when there is a duplicate. 5. Pair or Set -- The value of a lost or damaged article which is part of a pair or set is based on a reasonable proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set. 6. Loss to Parts -- The value of a lost or damaged part of an item that consists of several parts when it is complete is based on the value of only the lost or damaged part or the cost to repair or replace it. 4. Examination -- You must submit to examination under FP-CP ED (01-01)

100 HOW MUCH WE PAY 1. Insurable Interest We do not cover more than your insurable interest in any property. 2. Deductible -- We pay only that part of your loss over the deductible amount stated on the declarations in any one occurrence. The deductible applies to the loss before application of any coinsurance or reporting provision. 3. Loss Settlement Terms -- Subject to paragraphs 1., 2., 4., 5., and 6. under How Much We Pay, we pay the lesser of: a. the amount determined under Valuation; b. the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or c. the limit that applies to covered property. 4. Coinsurance -- When a coinsurance percentage is shown on the declarations, we only pay a part of the loss if the limit is less than the value of the covered property at the time of the loss multiplied by the coinsurance percentage shown for it on the declarations. Our part of the loss is determined using the following steps: a. Multiply the value of the covered property at the time of the loss by the coinsurance percentage; b. Divide the limit for covered property by the figure determined in 4.a. above; c. Multiply the total amount of loss, after the application of any deductible, by the figure determined in 4.b. above. The most we pay is the amount determined in 4.c. above or the limit, whichever is less. We do not pay any remaining part of the loss. If there is more than one limit shown on the declarations for this Coverage Part, this procedure applies separately to each limit. If there is only one limit shown on the declarations for this Coverage Part, this procedure applies to the total of all covered property to which the limit applies. Example -- Underinsurance Value of covered property $100,000 Coinsurance 80% Limit $60,000 Loss $21,000 Deductible $1,000 Step a.: $100,000 x 80% = $80,000 (minimum limit needed to meet coinsurance requirements) Step b.: $60,000 x $80,000 =.75 Step c.: $21,000 - $1,000 = $20,000 $20,000 x.75 = $15,000 We pay no more than $15,000. We do not pay the remaining $6,000. Example -- Sufficient Insurance Value of covered property $100,000 Coinsurance 80% Limit $80,000 Loss $21,000 Deductible $1,000 Step a.: $100,000 x 80% = $80,000 (minimum limit needed to meet coinsurance requirements) Step b.: $80,000 x $80,000 = 1.00 Step c.: $21,000 - $1,000 = $20,000 $20,000 x 1.00 = $20,000 We pay no more than $20,000 in excess of the deductible. No penalty applies. Example -- Blanket Limit Value of covered property Building at Location 1. $75,000 Building at Location 2. $75,000 Personal Property at Location 2. $50,000 Total Value of covered property $200,000 Coinsurance 80% Limit $128,000 Loss Building at Location 2. $20,000 Personal Property at Location 2. $11,000 Total Loss $31,000 Deductible $1,000 Step a.: $200,000 x 80% = $160,000 (minimum limit needed to meet coinsurance requirements) FP-CP ED (01-01)

101 Step b.: $128,000 x $160,000 =.80 Step c.: $31,000 - $1,000 = $30,000 $30,000 x.80 = $24,000 We pay no more than $24,000. We do not pay the remaining $7, Insurance Under More Than One Coverage -- If more than one coverage of this policy insures the same loss, we pay no more than the actual claim or loss sustained. 6. Insurance Under More Than One Policy -- You may have another policy subject to the same plan, terms, conditions, and provisions as this policy. If you do, we pay our share of the covered loss. Our share is the proportion that the applicable limit under this policy bears to the limit of all policies covering on the same basis. If there is another policy covering the same loss, other than that described above, we pay only for the amount of covered loss in excess of the amount due from that other policy, whether you can collect on it or not. But we do not pay more than the applicable limit. 7. Unit-Owner's Insurance -- If a unit-owner has insurance covering the same property as this policy, our policy shall be primary and not contributory with the unitowner's insurance. LOSS PAYMENT 1. Our Options -- We may: a. pay the value of the loss; b. pay the cost of repairing or replacing the loss; c. rebuild, repair, or replace with property of equivalent kind and quality, to the extent practicable; or d. take all or any part of the damaged property at the agreed or appraised value. We must give you notice of our intentions within 30 days after we have received a satisfactory proof of loss. 2. Your Losses -- We adjust all losses with you. Payment is made to you unless another loss payee is named in the policy. A covered loss is payable 30 days after a satisfactory proof of loss is received, and: If you name an insurance trustee, we adjust losses with you, but we pay the insurance trustee. Payment to the trustee satisfies our obligation to you for the losses. 3. Property of Others -- Losses to property of others may be adjusted with and paid to: a. you on behalf of the owner; or b. the owner. If we pay the owner, we do not have to pay you. We may also choose to defend any suits arising from the owners at our expense. CONDITIONS The following is added to "Subrogation": We waive our right of recovery against any unit-owners of the described condominium or members of their household. Waiver of right of recovery does not apply to the developer who may be held liable for acts or omissions as the developer. OTHER CONDITIONS In addition to the policy terms which are contained in other sections of the Commercial Property Coverage, the following conditions apply. 1. Appraisal -- If you and we do not agree on the amount of the loss or the actual cash value of covered property, either party may request that these amounts be determined by appraisal. If either makes a written request for appraisal, each selects a competent, independent appraiser and notifies the other of the appraiser's identity within 20 days of receipt of the written request. The two appraisers then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire. The appraisers then determine and state separately the amount of each loss. The appraisers also determine the actual cash value of covered property items at the time of the loss, if requested. a. the amount of the loss has been agreed to in writing; If the appraisers submit a written report of an agreement b. an appraisal award has been filed with us; or to "us", the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, c. a final judgment has been entered. they will submit only their differences to the umpire. A written agreement by two of these three will establish the amounts stated above. FP-CP ED (01-01)

102 Each appraiser is paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire is paid equally by you and us. If there is an appraisal, we retain our right to deny the claim. If we make the written request for an appraisal, we will pay: 1) the reasonable cost for your appraiser; and 2) your share of the cost for the umpire. 2. Mortgage Provisions -- If a mortgagee (mortgage holder) is named in this policy, loss to Building Property shall be paid to the mortgagee and you as their interest appears. If more than one mortgagee is named, they shall be paid in order of precedence. The insurance for the mortgagee continues in effect even when your insurance may be void because of your acts, neglect, or failure to comply with the coverage terms. The insurance for the mortgagee does not continue in effect if the mortgagee is aware of changes in ownership or substantial increase in risk and does not notify us. If we cancel this policy, we notify the mortgagee at least 10 days before the effective date of cancellation if we cancel for your nonpayment of premium, or 30 days before the effective date of cancellation if we cancel for any other reason. We may request payment of the premium from the mortgagee, if you fail to pay the premium. If we pay the mortgagee for a loss where your insurance may be void, the mortgagee's right to collect that portion of the mortgage debt from you then belongs to us. This does not affect the mortgagee's right to collect the remainder of the mortgage debt from you. As an alternative, we may pay the mortgagee the remaining principal and accrued interest in return for a full assignment of the mortgagee's interest and any instruments given as security for the mortgage debt. or receive payment. b. We must notify you promptly if we recover property, or receive payment. c. Any recovery expenses incurred by either are reimbursed first. d. You may keep the recovered property but you must refund to us the amount of the claim paid, or any lesser amount to which we agree. e. If the claim paid is less than the agreed loss due to a deductible or other limiting term of this policy any recovery is pro rated between you and us based on our respective interest in the loss Vacancy -- Unoccupancy -- Vacancy -- Unoccupancy -- We will not pay for any loss or damage if the building where loss or damage occurs has been "vacant" or "unoccupied" for more than: (a) 30 consecutive days before that loss or damage if caused by Vandalism (if it is a Covered Cause of Loss); or (b) 60 consecutive days before that loss or damage if caused by any other Covered Cause of Loss: whether or not such vacancy or unoccupancy begins before the inception of this policy. But we will pay if the building is "unoccupied" due to circumstances that are usual or incidental to the described occupancy. Unoccupied means that the customary activities or operations of the described occupancy are suspended, but business personal property has not been removed. The building or structure shall be considered vacant and not unoccupied when the occupants have moved, leaving the building or structure empty or containing only limited business personal property. Buildings or structures under construction are not considered vacant or unoccupied. If we choose not to renew this policy, we give written notice to the mortgagee at least 10 days before the expiration date of this policy. 3. Recoveries -- If we pay you for the loss and lost or damaged property is recovered, or payment is made by those responsible for the loss, the following provisions apply: a. You must notify us promptly if you recover property FP-CP ED (01-01)

103 FP CP-21 Ed (01-01) CONDOMINIUM UNIT COVERAGE PART We cover direct physical loss to covered property at the premises described on the declarations caused by a covered peril. PROPERTY COVERED We cover the following types of property for which a limit is shown on the declarations. BUSINESS PERSONAL PROPERTY This means your business personal property in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. Unless otherwise specified on the declarations, this includes: 1. fixtures, improvements, and alterations included with or added to your unit and owned by you; 2. your interest in personal property of others to the extent of your labor, material, and services; 3. leased personal property which you have a contractual responsibility to insure, unless otherwise insured by the Commercial Property Coverage under Personal Property of Others. This does not include any property owned indivisibly by all unit-owners. PERSONAL PROPERTY OF OTHERS This means personal property of others: 1. that is in your care, custody, or control; and 2. located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises. However, our payment for loss to personal property of others is only for the benefit of the owners of the personal property. PROPERTY EXCLUDED AND LIMITATIONS 1. Animals -- We do not cover animals, including birds and fish, unless owned by others and boarded by you. We do cover animals you own and hold for sale. 2. Antennas, Awnings, Canopies, Fences, and Signs -- Except as provided under Supplemental Coverages, we do not cover outdoor: a. radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring; b. awnings or canopies of fabric or slat construction or their supports; c. fences; or d. signs, other than signs attached to buildings. 3. Contraband -- We do not cover contraband or property in the course of illegal transportation or trade. 4. Fixtures, Improvements, Alterations, and Appliances -- We do not cover the following property contained within a unit, regardless of ownership, if required by your Condominium Association Agreement to insure: a. fixtures, improvements, and alterations that are a part of the building or structure; and b. appliances for refrigerating, cooking, dishwash-ing, laundering, security, or housekeeping. 5. Growing Crops, Lawns, or Water -- We do not cover: a. underground or surface water; or b. growing crops or lawns. 6. Money and Securities -- We do not cover accounts, bills, currency, food stamps, or other evidences of debt, lottery tickets not held for sale, money, notes, or securities. 7. Property More Specifically Insured -- We do not cover property which is more specifically insured in whole or in part by any other insurance. We do cover the amount in excess of the amount due from the more specific insurance. FP CP Ed (01-01) Includes Copyrighted Material from American Association of Insurance Services

104 8. Trees, Shrubs, and Plants -- Except as provided under Supplemental Coverages, we do not cover trees; shrubs; plants; and grain, hay, straw, or other crops, when outdoors. However, we do cover trees, shrubs, and plants you own and hold for sale. 9. Valuable Papers and Records -- Research Cost -- Except as provided under Supplemental Coverages, we do not cover the cost to research, replace, or restore the information on valuable papers and records, including those which exist on electronic or magnetic media. 10. Vehicles, Aircraft, and Watercraft -- We do not cover vehicles or self-propelled machines (including aircraft or watercraft and their motors, equipment, and accessories) that are: a. required to be licensed for use on public roads; or b. operated principally away from the described premises. We do cover vehicles or self-propelled machines you manufacture, process, warehouse, or hold for sale. However, this does not include autos you hold for sale. We also cover rowboats or canoes out of water at the described premises. ADDITIONAL COVERAGES 1. Debris Removal -- We cover the cost to remove the debris of covered property that is caused by a covered peril. This coverage does not include costs to: a. extract pollutants from land or water; or b. remove, restore, or replace polluted land or water. We do not pay any more under this coverage than 25 percent of the amount we pay for the direct physical loss. We do not pay more for loss to property and debris removal combined than the limit for the damaged property. However, we pay an additional amount of debris removal expense up to $5,000 when the debris removal expense exceeds 25 percent of the amount we pay for direct physical loss or when the loss to property and debris removal combined exceeds the limit for the damaged property. We do not pay any expenses unless they are reported to us in writing within 180 days from the date of direct physical loss to covered property. 2. Emergency Removal -- We cover loss to covered property while moved or being moved from the described premises for preservation from loss caused by a covered peril. We pay for any direct physical loss to that property. This coverage applies for up to 10 days after the property is first moved. This does not increase the limit. 3. Fire Department Service Charges -- We pay up to $1,000 to cover your liability, assumed by contract or agreement prior to the loss, for fire department service charges. This coverage is limited to charges incurred when the fire department is called to save or protect covered property from a covered peril. No deductible applies. This is an additional limit. 4. Pollutant Clean Up and Removal -- We pay your expense to extract pollutants from land or water at the described premises if the discharge, dispersal, seepage, migration, release, or escape of the pollutants is caused by a covered peril that occurs during the policy period. We pay the cost of testing, evaluating, observing, or recording the existence, level, or effects of pollutants only when the expense of extracting the pollutants is covered by this Additional Coverage. The most we pay for each described premises is $10,000 for the sum of all such expenses arising out of a covered peril occurring during each separate 12 month period of this policy. The expenses are paid only if they are reported to us in writing within 180 days from the date the covered peril occurs. This is an additional limit. PERILS COVERED See the applicable Perils Part shown on the declarations. SUPPLEMENTAL COVERAGES If a Coinsurance percentage of 80% or more is shown on the declarations, we provide the following supplemental coverages. FP CP ED(01-01)

105 Unless otherwise stated each supplemental coverage: a. applies for loss caused by a covered peril; b. applies to property in or on buildings or structures described on the declarations or in the open (or in vehicles) within 100 feet of the described premises; c. is an additional amount of coverage; and d. is not subject to and not considered in applying coinsurance. 1. Antennas, Awnings, Canopies, Fences, and Signs -- We pay up to $1,000 for your outdoor: a. radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring; b. awnings or canopies of fabric or slat construction or their supports; c. fences; or d. signs. We only cover direct physical loss caused by aircraft, civil commotion, explosion, fire, lightning, or riot, including debris removal expense. 2. Extra Expenses -- We pay up to $1,000 for the necessary extra expenses that you incur in order to continue as nearly as practical your normal business following loss by a covered peril. This applies when the damage is to property in the described buildings or structures or in the open (or in vehicles) on or within 100 feet of the described premises. We cover your extra expenses for the time it should reasonably take to resume your normal business, but not longer than the time it should reasonably take to rebuild, repair, or replace the property that has incurred the loss. We do not cover the normal cost of repair, replacement, or restoration of property. We cover expenses in excess of normal that you necessarily incur to reduce loss, but only to the extent they reduce the loss under this coverage. We do not cover the cost of research or other extra expense necessary to reproduce, replace, or restore lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media. We cover expenses in excess of normal that you necessarily incur to reduce loss, but only to the extent that they reduce the loss under this coverage. 3. Increased Costs -- Ordinance or Law -- We pay up to $5,000 for each described premises to cover the increased costs of a covered loss, including debris removal expense, resulting from the enforcement of any ordinance, law, or decree that regulates or requires: a. the construction, use, or repair of any property; or b. the demolition of any property, in part or in whole, not damaged by a covered peril. The ordinance, law, or decree must be in force at the time of loss. Under Perils Excluded, Ordinance or Law does not apply to this Supplemental Coverage. 4. Personal Effects -- We pay up to $500, at each described premises, for personal effects owned by you, your officers, your partners, or your employees. This coverage is limited to $100 on property owned by any one person. 5. Personal Property -- Acquired Locations -- We cover your business personal property at locations that you acquire, other than fairs or exhibitions. This coverage applies for 30 days from the date you acquire the location or until you report the acquired location to us, whichever occurs first. This coverage does not extend beyond the end of the policy period. You must pay any additional premium due from that date you acquire the location. We pay up to 10 percent of the limit shown on the declarations for Business Personal Property but not exceeding $100,000 for each location. 6. Personal Property of Others -- We pay up to $2,500, at each described premises, for personal property of others in your care, custody, or control. This coverage is only for the benefit of the owners of the personal property. 7. Property in Transit -- We pay up to $1,000 for covered business personal property (other than property in the care, custody, or control of your salesperson) in transit more than 100 feet from the described premises in vehicles you own, lease, or operate. FP CP ED(01-01)

106 We only cover direct physical loss caused by civil commotion; collision with another vehicle or object, other than the road bed; explosion, fire; hail; lightning; overturn or upset of the vehicle; riot; vandalism; or windstorm. This coverage also includes loss of an entire package, case, or bale from within a locked part of your vehicle caused by theft. Theft must be proven by visible marks of forced entry. 8. Property Off Premises -- We pay up to $5,000 for covered property while temporarily at a location that you do not own, control, rent, or lease. This coverage does not include property: a. in or on a vehicle; b. in the care, custody, or control of your salesperson; or c. at any fair or exhibition. 9. Trees, Shrubs, and Plants -- We pay up to $1,000 for your outdoor trees, shrubs, and plants not held for sale. We only cover loss caused by aircraft, civil commotion, explosion, fire, lightning, or riot. This coverage is limited to $250 on any one tree, shrub, or plant, including debris removal. 10. Valuable Papers and Records -- Research Cost -- We pay up to $1,000 for the cost of research or other expenses necessary to reproduce, replace, or restore lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. WHAT MUST BE DONE IN CASE OF LOSS 1. Notice -- In case of a loss, you must: In case of a loss, "you" must give "us" or "our" agent prompt notice including a description of the property involved ("we" may request written notice); 2. Protect Property -- You must take all reasonable steps to protect covered property at and after an insured loss to avoid further loss. We pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a covered peril if a covered peril has already caused a loss to covered property. However, we do not pay for such repairs or emergency measures performed on property which has not been damaged by a covered peril. This does not increase our limit. 3. Proof of Loss -- You must send us, within 60 days after our request, a signed, sworn proof of loss. This must include the following information: a. the time, place, and circumstances of the loss; b. other policies of insurance that may cover the loss; c. your interest and the interests of all others in the property involved, including all mortgages and liens; d. changes in title or occupancy of the covered property during the policy period; e. detailed estimates for repair or replacement of covered property; f. available plans and specifications of buildings or structures; g. detailed estimates of any covered loss of income and expenses; and h. an inventory of damaged and undamaged covered personal property showing in detail the quantity, description, cost, actual cash value, and amount of the loss. You must attach to the inventory copies of all bills, receipts, and related documents that substantiate the inventory. An inventory of undamaged personal property is not required if the total claim for a loss is less than $10,000 and less than five percent of the total limit. 4. Examination Under Oath -- "You" must submit to examination under oath in matters connected with the loss as often as "we" reasonably request and give "us" sworn statements of the answers. 5. Records -- "You" must produce records relating to value, loss, and expense and permit copies and extracts to be made of them as often as "we" reasonably request. 6. Damaged Property -- You must exhibit the damaged and undamaged property as often as we reasonably request and allow us to inspect or take samples of the property. FP CP ED(01-01)

107 7. Volunteer Payments -- You must not, except at your own expense, voluntarily make any payments, assume any obligations, pay or offer any rewards, or incur any other expenses except as respects protecting property from further damage. 8. Abandonment -- We do not have to accept any abandonment of property. 9. Cooperation -- You must cooperate in performing all acts required by the Commercial Property Coverage. VALUATION 1. Actual Cash Value -- the value is based on the actual cash value at the time of the loss (with a deduction for depreciation), except as provided in paragraphs 2. through 6. below. 2. Glass -- The value of glass is based on the cost of safety glazing material where required by code, ordinance, or law. 3. Merchandise Sold -- The value of merchandise that you have sold but not delivered is based on the selling price less all discounts and unincurred expenses. 4. Valuable Papers and Records -- The value of valuable papers and records, including those which exist on electronic or magnetic media (other than prepackaged software programs) is based on the cost of blank materials, and the labor to transcribe or copy the records when there is a duplicate. 5. Pair or Set -- The value of a lost or damaged article which is part of a pair or set is based on a reasonable proportion of the value of the entire pair or set. The loss is not considered a total loss of the pair or set. 6. Loss to Parts -- The value of a lost or damaged part of an item that consists of several parts when it is complete is based on the value of only the lost or damaged part or the cost to repair or replace it. HOW MUCH WE PAY 1. Insurable Interest -- We do not cover more than your insurable interest in any property. 2. Deductible -- We pay only that part of your loss over the deductible amount stated on the declarations in any one occurrence. The deductible applies to the loss before application of any coinsurance or reporting provision. 3. Loss Settlement Terms -- Subject to paragraphs 1., 2., 4., 5., and 6. under How Much We Pay, we pay the lesser of: a. the amount determined under Valuation; b. the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or c. the limit that applies to covered property. 4. Coinsurance -- When a coinsurance percentage is shown on the declarations, we only pay a part of the loss if the limit is less than the value of the covered property at the time of the loss multiplied by the coinsurance percentage shown for it on the declarations. Our part of the loss is determined using the following steps: a. Multiply the value of the covered property at the time of the loss by the coinsurance percentage; b. Divide the limit for covered property by the figure determined in 4.a. above; c. Multiply the total amount of loss, after the application of any deductible, by the figure determined in 4.b. above. The most we pay is the amount determined in 4.c. above or the limit, whichever is less. We do not pay any remaining part of the loss. If there is more than one limit shown on the declarations for this Coverage Part, this procedure applies separately to each limit. If there is only one limit shown on the declarations for this Coverage Part, this procedure applies to the total of all covered property to which the limit applies. Example -- Underinsurance Value of covered property $100,000 Coinsurance 80% Limit $60,000 Loss $21,000 Deductible $1,000 Step a.: $100,000 x 80% = $80,000 (minimum limit needed to meet coinsurance requirements) Step b.: $60,000 $80,000 =.75 Step c.: $21,000 - $1,000 = $20,000 $20,000 x.75 = $15,000 We pay no more than $15,000. We do not pay the remaining $6,000. Example -- Sufficient Insurance Value of covered property $100,000 Coinsurance 80% Limit $80,000 Loss $21,000 Deductible $1,000 FP CP ED(01-01)

108 Step a.: $100,000 x 80% = $80,000 (minimum limit needed to meet coinsurance requirements) Step b.: $80,000 $80,000 = 1.00 Step c.: $21,000 - $1,000 = $20,000 $20,000 x 1.00 = $20,000 We pay no more than $20,000 in excess of the deductible. No penalty applies. Example -- Blanket Limit Value of covered property Building at Location 1. $75,000 Building at Location 2. $75,000 Personal Property at Location 2. $50,000 Total Value of covered property $200,000 Coinsurance 80% Limit $128,000 Loss Building at Location 2. $20,000 Personal Property at Location 2. $11,000 Total Loss $31,000 Deductible $1,000 Step a.: $200,000 x 80% = $160,000 (minimum limit needed to meet coinsurance requirements) Step b.: $128,000 $160,000 =.80 Step c.: $31,000 - $1,000 = $30,000 $30,000 x.80 = $24,000 We pay no more than $24,000. We do not pay the remaining $7, Insurance Under More Than One Coverage -- If more than one coverage of this policy insures the same loss, we pay no more than the actual claim or loss sustained. 6. Insurance Under More Than One Policy -- You may have another policy subject to the same plan, terms, conditions, and provisions as this policy. If you do, we pay our share of the covered loss. Our share is the proportion that the applicable limit under this policy bears to the limit of all policies covering on the same basis. condominium association has insurance covering the same property as this policy, our policy shall be excess and not contributory with the condominium association's insurance. LOSS PAYMENT 1. Our Options -- We may: a. pay the value of the loss; b. pay the cost of repairing or replacing the loss; c. rebuild, repair, or replace with property of equivalent kind and quality, to the extent practicable; or d. take all or any part of the damaged property at the agreed or appraised value. We must give you notice of our intentions within 30 days after we have received a satisfactory proof of loss. 2. Your Losses -- We adjust all losses with you. Payment is made to you unless another loss payee is named in the policy. A covered loss is payable 30 days after a satisfactory proof of loss is received, and: a. the amount of the loss has been agreed to in writing; b. an appraisal award has been filed with us; or c. a final judgment has been entered. 3. Property of Others -- Losses to property of others may be adjusted with and paid to: a. you on behalf of the owner; or b. the owner. If we pay the owner, we do not have to pay you. We may also choose to defend any suits arising from the owners at our expense. If there is another policy covering the same loss, other than that described above, we pay only for the amount of covered loss in excess of the amount due from that other policy, whether you can collect on it or not. But we do not pay more than the applicable limit. 7. Condominium Association Insurance -- If the FP CP ED(01-01)

109 OTHER CONDITIONS In addition to the policy terms which are contained in other sections of the Commercial Property Coverage, the following conditions apply. 1. Appraisal -- If you and we do not agree on the amount of the loss or the actual cash value of covered property, either party may request that these amounts be determined by appraisal. If either makes a written request for appraisal, each selects a competent, independent appraiser and notifies the other of the appraiser's identity within 20 days of receipt of the written request. The two appraisers then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire. The appraisers then determine and state separately the amount of each loss. The appraisers also determine the actual cash value of covered property items at the time of the loss, if requested. If the appraisers submit a written report of an agreement to "us", the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. A written agreement by two of these three will establish the amounts stated above. Each appraiser is paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire is paid equally by you and us. If there is an appraisal, we retain our right to deny the claim. c. Any recovery expenses incurred by either are reimbursed first. d. You may keep the recovered property but you must refund to us the amount of the claim paid, or any lesser amount to which we agree. e. If the claim paid is less than the agreed loss due to a deductible or other limiting term of this policy any recovery is pro rated between you and us based on our respective interest in the loss. 3. Vacancy -- Unoccupancy -- We will not pay for any loss or damage if the building where loss or damage occurs has been "vacant" or "unoccupied" for more than: (a) 30 consecutive days before that loss or damage if caused by Vandalism (if it is a Covered Cause of Loss); or (b) 60 consecutive days before that loss or damage if caused by any other Covered Cause of Loss: whether or not such vacancy or unoccupancy begins before the inception of this policy. But we will pay if the building is "unoccupied" due to circumstances that are usual or incidental to the described occupancy. Unoccupied means that the customary activities or operations of the described occupancy are suspended, but business personal property has not been removed. The building or structure shall be considered vacant and not unoccupied when the occupants have moved, leaving the building or structure empty or containing only limited business personal property. Buildings or structures under construction are not considered vacant or unoccupied. If "we" make the written request for an appraisal, "we" will pay: 1) the reasonable cost for "your" appraiser; and 2) "your" share of the cost for the umpire. 2. Recoveries -- If we pay you for the loss and lost or damaged property is recovered, or payment is made by those responsible for the loss, the following provisions apply: a. You must notify us promptly if you recover property or receive payment. b. We must notify you promptly if we recover property, or receive payment. FP CP ED(01-01)

110 AAIS CP-80 Ed 1.0 FIRE PERILS PART PERILS COVERED When "Fire Perils" is shown on the declarations, the covered perils are: 1. Fire or Lightning. 2. Explosion. This includes explosion of gas or fuel in a firebox, combustion chamber, or flue. This peril does not include loss caused by rupturing, bursting, or operating of pressure release devices; or rupturing or bursting due to the expansion of contents of a building or structure due to water. PERILS EXCLUDED 1. We do not pay for loss if one or more of the following exclusions apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events. a. Ordinance or Law -- We do not cover loss or increased cost caused by enforcement of any code, ordinance, or law regulating the use, construction, or repair of any building or structure; or requiring the demolition of any building or structure including the cost of removing its debris. b. Earth Movement or Volcanic Eruption -- We do not cover loss caused by any earth movement (other than sinkhole collapse) or caused by eruption, explosion, or effusion of a volcano. Earth movement includes, but is not limited to earthquake; landslide; mudflow; mudslide; mine subsidence; or sinking, rising, or shifting of earth. We cover direct physical loss by fire, explosion, or volcanic action resulting from either earth movement or eruption, explosion, or effusion of a volcano. All volcanic eruptions that occur within a 168 hour period shall be considered a single loss. Sinkhole collapse means the sudden settlement or collapse of earth supporting the covered property into subterranean voids created by the action of water on a limestone or similar rock formation. It does not include the value of the land or the cost of filling sinkholes. Volcanic action means airborne volcanic blast or airborne shock waves; ash, dust, or particulate matter; or lava flow. It does not include the cost to remove ash, dust, or particulate matter that does not cause direct physical loss to the covered property. c. Civil Authority -- We do not cover loss caused by order of any civil authority, including seizure, confiscation, destruction, or quarantine of property. We cover loss resulting from acts of destruction by the civil authority to prevent the spread of fire, unless the fire is caused by a peril excluded under this policy. d. Nuclear Hazard -- We do not cover loss caused by a nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by, contributed to or aggravated by a covered peril; and whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. Direct physical loss by fire resulting from the nuclear hazard is covered. e. Utility Failure -- We do not cover loss caused by interruption of power or other utility services resulting from any cause if the interruption takes place away from the described premises. Interruption includes reduced or increased voltage, low or high pressure, or other interruptions of normal services. We cover the direct physical loss by a covered peril which occurs on the described premises as a result of any power interruption. f. War -- We do not cover loss caused by war. This means: 1) declared war, undeclared war, civil war, insurrection, rebellion, or revolution; 2) a warlike act by a military force or by military personnel; CP-80 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

111 3) the destruction, seizure, or use of the property for a military purpose; or 4) the discharge of a nuclear weapon, even if it is accidental. g. Water -- We do not cover loss caused by water. This means: 1) flood, surface water, waves, tidal water, or the overflow of a body of water. This includes spray that results from these whether driven by wind or not; 2) water that backs up through a sewer or drain; and 3) water below the surface of the ground. This includes water that exerts pressure on or flows, seeps, or leaks through or into a building or structure, sidewalk, driveway, foundation, swimming pool, or other structure. If fire or explosion results, we do cover the resulting loss. 2. We do not pay for loss or damage if one or more of the following exclusions apply to the loss: a. Boiler Explosion -- We do not cover loss caused by explosion of steam boilers, steam pipes, steam turbines, or steam engines that you own or lease or that are operated under your control. If a fire or combustion explosion results, we cover the resulting loss. b. Electrical Currents -- We do not cover loss caused by arcing or by electrical currents other than lightning. If a fire results, we cover only the loss caused by fire. c. Increased Hazard -- We do not cover loss occurring while the hazard has been materially increased by any means within your knowledge or your control. d. Mechanical Breakdown -- We do not cover loss caused by mechanical breakdown or rupturing or bursting of moving parts of machinery caused by centrifugal force. If loss caused by a covered peril results, we cover the resulting loss. e. Neglect -- We do not cover loss caused by your neglect to use all reasonable means to save covered property at and after the time of loss. We do not cover loss caused by your neglect to use all reasonable means to save and preserve covered property when endangered by a covered peril. f. Rupturing or Bursting -- We do not cover loss caused by rupturing or bursting of water pipes unless caused by a covered peril. CP-80 Ed AAIS

112 AAIS CP-82 Ed 1.0 BASIC PERILS PART PERILS COVERED When "Basic Perils" is shown on the declarations, the covered perils are: 1. Fire or Lightning. 2. Explosion. This includes explosion of gas or fuel in a firebox, combustion chamber, or flue. This peril does not include loss caused by rupturing, bursting, or operating of pressure release devices; or rupturing or bursting due to the expansion of contents of a building or structure due to water. 3. Sonic Boom. 4. Windstorm or Hail. We do not cover loss caused directly or indirectly by frost or cold weather or by ice (other than hail), sleet or snow, all whether driven by wind or not. We do not cover loss to the interior of a building or structure, or to property inside, caused by dust, rain, sand, sleet, snow, or water, all whether driven by wind or not, unless entering through openings made by the direct force of wind or hail. 5. Smoke. This includes sudden and accidental loss caused by smoke. We do not cover loss from smoke from industrial operations or agricultural smudging. 6. Vehicles and Aircraft. This includes loss caused by actual physical contact of aircraft, objects falling from aircraft, vehicles, or objects thrown by vehicles with covered property. Aircraft includes spacecraft and self-propelled missiles. We do not cover loss caused by vehicles you own or lease, or that are operated in the course of your business. 7. Riot or Civil Commotion. This includes looting and pillaging at the time and place of the riot or civil commotion. We also cover loss caused by striking employees of the owner or tenants while occupying the described premises. 8. Vandalism. This means willful and malicious damage to, or destruction of, the described premises. We do not cover loss caused by theft, except for intentional damage done by burglars. We do not cover loss to glass (other than glass building blocks) which is part of a building, structure, or outdoor sign. We do cover loss to other property caused by breakage of glass by vandals. 9. Sprinkler Leakage. This includes loss caused by leakage or discharge of water or other substances from within a sprinkler system. We cover loss caused by collapse or fall of a tank which is part of a sprinkler system. We cover the costs of repairs or replacement of a covered sprinkler system when damage is caused by freezing or by breakage that results in sprinkler leakage. We also cover the reasonable cost of removing and replacing part of the covered building or structure necessary to make repairs. A sprinkler system is an automatic fire protection system and any nonautomatic fire protection equipment supplied from the sprinkler system. 10. Sinkhole Collapse. This means sudden settlement or collapse of earth supporting the covered property. The earth settlement or collapse must result from subterranean voids created by the action of water on a limestone or similar rock formation. We do not cover the value of land; the cost of filling sinkholes; or sinking or collapse of land into manmade underground cavities. CP-82 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

113 11. Volcanic Action. This means: a. airborne volcanic blast or airborne shock waves; b. ash, dust, or particulate matter; or c. lava flow. All loss that occurs within a 168-hour period shall be considered a single loss. We do not cover removal of ash, dust, or particulate matter that does not cause direct physical loss to the described premises. PERILS EXCLUDED 1. We do not pay for loss if one or more of the following exclusions apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events. a. Ordinance or Law -- We do not cover loss or increased cost caused by enforcement of any code, ordinance, or law regulating the use, construction, or repair of any building or structure; or requiring the demolition of any building or structure including the cost of removing its debris. b. Earth Movement or Volcanic Eruption -- We do not cover loss caused by any earth movement (other than sinkhole collapse) or caused by eruption, explosion, or effusion of a volcano. Earth movement includes, but is not limited to earthquake; landslide; mudflow; mudslide; mine subsidence; or sinking, rising, or shifting of earth. We cover direct physical loss by fire, explosion, or volcanic action resulting from either earth movement or eruption, explosion, or effusion of a volcano. c. Civil Authority -- We do not cover loss caused by order of any civil authority, including seizure, confiscation, destruction, or quarantine of property. We cover loss resulting from acts of destruction by the civil authority to prevent the spread of fire, unless the fire is caused by a peril excluded under this policy. d. Nuclear Hazard -- We do not cover loss caused by a nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by, contributed to or aggravated by a covered peril; and whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. Direct physical loss by fire resulting from the nuclear hazard is covered. e. Utility Failure -- We do not cover loss caused by interruption of power or other utility services resulting from any cause if the interruption takes place away from the described premises. Interruption includes reduced or increased voltage, low or high pressure, or other interruptions of normal services. We cover the direct physical loss caused by a covered peril which occurs on the described premises as a result of any power interruption. f. War -- We do not cover loss caused by war. This means: 1) declared war, undeclared war, civil war, insurrection, rebellion, or revolution; 2) a warlike act by a military force or by military personnel; 3) the destruction, seizure, or use of the property for a military purpose; or 4) the discharge of a nuclear weapon, even if it is accidental. g. Water -- We do not cover loss caused by water. This means: 1) flood, surface water, waves, tidal water, or the overflow of a body of water. This includes spray that results from these whether driven by wind or not; 2) water that backs up through a sewer or drain; and 3) water below the surface of the ground. This includes water that exerts pressure on or flows, seeps, or leaks through or into a building or structure, sidewalk, driveway, foundation, swimming pool, or other structure. If fire, explosion, or sprinkler leakage results, we do cover the resulting loss. 2. We do not pay for loss or damage if one or more of the following exclusions apply to the loss: CP-82 Ed AAIS

114 a. Boiler Explosion -- We do not cover loss caused by explosion of steam boilers, steam pipes, steam turbines, or steam engines that you own or lease or that are operated under your control. If a fire or combustion explosion results, we cover the resulting loss. b. Contamination or Deterioration -- We do not cover loss caused by contamination or deterioration including corrosion, decay, fungus, mildew, mold, rot, rust or any quality, fault, or weakness in property that causes it to damage or destroy itself. If loss caused by a covered peril results, we cover the resulting loss. c. Electrical Currents -- We do not cover loss caused by arcing or by electrical currents other than lightning. If a fire results, we cover only the loss caused by fire. d. Increased Hazard -- We do not cover loss occurring while the hazard has been materially increased by any means within your knowledge or your control. e. Mechanical Breakdown -- We do not cover loss caused by mechanical breakdown or rupturing or bursting of moving parts of machinery caused by centrifugal force. If loss caused by a covered peril results, we cover the resulting loss. f. Neglect -- We do not cover loss caused by your neglect to use all reasonable means to save covered property at and after the time of loss. We do not cover loss caused by your neglect to use all reasonable means to save and preserve covered property when endangered by a covered peril. g. Rupturing or Bursting -- We do not cover loss caused by rupturing or bursting of water pipes (other than sprinkler systems) unless caused by a covered peril. h. Smog, Smoke, Vapor, or Gas -- We do not cover loss caused by smog, smoke, vapor, or gas from agricultural smudging or industrial operations unless caused by a covered peril. i. Water Damage -- We do not cover loss caused by accidental discharge or leakage of water or steam as a direct result of breaking or cracking of a part of the system or appliance containing water or steam other than a sprinkler system, unless the system or appliance is damaged by a covered peril. j. Wear and Tear -- We do not cover loss caused by wear and tear, marring, or scratching unless caused by a covered peril. CP-82 Ed AAIS

115

116 AAIS This endorsement changes CL the policy Page 1 of 1 -- PLEASE READ THIS CAREFULLY -- CERTIFIED TERRORISM LOSS DISCLOSURE OF PREMIUM AND FEDERAL SHARE OF INSURED LOSSES (The entries required to complete this endorsement will be shown below, on the "declarations", or on the "schedule of coverages".) SCHEDULE Certified Terrorism Loss Premium $ Additional information, if any, concerning terrorism premium: 1. The portion of "your" premium that is attributed to coverage for "certified terrorism loss" is shown in the Schedule above. 2. Coverage for "certified terrorism loss", to the extent that such coverage is provided by this policy or Coverage Part, will be partially reimbursed by the United States Government, Department of Treasury under a federal program. Under that program, the United States pays 85% of insured losses for "certified terrorism loss" that exceeds the statutorily established deductible that "we" retain. However, if aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act, as amended, exceed one hundred billion dollars in a Program Year (January 1 through December 31), the Treasury will not make payment for any portion of the amount of such losses that exceeds one hundred billion dollars. If the Secretary of the Treasury determines that the aggregate amount of "certified terrorism loss" has exceeded one hundred billion dollars in a Program Year (January 1 through December 31), and "we" have met "our" insurer deductible under the Terrorism Risk Insurance Act, as amended, "we" will not pay for any portion of "certified terrorism loss" that exceeds one hundred billion dollars. If the "certified terrorism loss" exceeds one hundred billion dollars in a Program Year (January 1 through December 31), losses up to one hundred billion dollars are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury under the Terrorism Risk Insurance Act, as amended. CL Copyright, American Association of Insurance Services, Inc., 2008

117 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- OPTIONAL PROPERTY COVERAGE CP-23 Ed 1.1 PROPERTY EXCLUDED AND LIMITATIONS The following is deleted if indicated by an "X" in a box in the schedule shown below: Prem. No. SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Description of Property 1 Awnings or canopies of fabric or slat construction or their supports 2 Cost of excavations, grading, or filling 3 Fences 4 Foundations below the lowest basement floor or below ground level if there is no basement 5 Paved outdoor surfaces, including driveways, parking lots, roads, bridges, and walks 6 Pilings, piers, wharves, or docks 7 Retaining walls that are not part of buildings or structures 8 Underground pipes, flues, and drains 9 Animals PROPERTY COVERED The following is added: SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Prem. No. Bldg. No. Limit Additional Property Covered CP-23 Ed 1.1 Copyright MCMXCIV, American Association of Insurance Services AAIS

118 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-124 Ed 1.0 HOW MUCH WE PAY CONTRIBUTING INSURANCE The Insurance Under More Than One Policy provision has been replaced with the following: Insurance Under More Than One Policy -- When we and other companies write insurance for property coverages, our limit is % of the total limit for all insurance covering the same property. We pay this percentage subject to the limit shown on the declarations. The coverages to which this endorsement applies and the total limits for all contributing insurance are shown on the schedule below: Prem. No. SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Coverages Total Limit of Insurance Subject to the limits covering the same property shown on the declarations, the most we will pay is limited to our percentage of any covered loss, regardless of whether one or more perils contribute to the loss. CP-124 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

119 AAIS Prem. No. This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- LOSS PAYABLE OPTIONS SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Description of Property Name and Address of Loss Payee CP-132 Ed 1.0 In addition to the policy terms which are contained in other sections of the Commercial Property Coverage, the following conditions apply to the property described on the schedule and only when indicated by an "X": 1 LOSS PAYABLE Any loss shall be adjusted with you and shall be payable to you and the loss payee shown on the schedule as your and their interests appear. 2 LENDER'S LOSS PAYABLE Any loss shall be payable to you and the loss payee shown on the schedule as interests appear. If more than one loss payee is named, they shall be paid in order of precedence. The insurance for the loss payee continues in effect even when your insurance may be void because of your acts, neglect, or failure to comply with the coverage terms. The insurance for the loss payee does not continue in effect if the loss payee is aware of changes in ownership or substantial increase in risk and does not notify us. If we cancel this policy, we notify the loss payee at least 10 days before the effective date of cancellation if we cancel for your nonpayment of premium, or 30 days before the effective date of cancellation if we cancel for any other reason. We may request payment of the premium from the loss payee, if you fail to pay the premium. If we pay the loss payee for a loss where your insurance may be void, the loss payee's right to collect that portion of the debt from you then belongs to us. This does not affect the loss payee's right to collect the remainder of the debt from you. As an alternative, we may pay the loss payee the remaining principal and accrued interest in return for a full assignment of the loss payee's interest and any instruments given as security for the debt. If we choose not to renew this policy, we give written notice to the loss payee at least 10 days before the expiration date of this policy. 3 CONTRACT OF SALE Any loss shall be adjusted with you and shall be payable to you and the loss payee shown on the schedule as your and their interests appear. The loss payee shown on the schedule is a person or organization you have entered a contract with for the sale of covered property. When covered property is the subject of a contract of sale, the word you also means the loss payee. CP-132 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

120 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-145 Ed 1.1 PERILS EXCLUDED The following is added: We do not cover loss caused by: PERILS EXCLUSION Prem. No. SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Additional Perils Excluded Perils Parts: Fire, Basic, Broad, or Special [ ] Fire [ ] Lightning [ ] Explosion Perils Parts: Basic, Broad, or Special Only [ ] Sonic Boom [ ] Windstorm [ ] Hail [ ] Smoke [ ] Vehicles [ ] Aircraft [ ] Riot or Civil Commotion [ ] Vandalism [ ] Sprinkler Leakage [ ] Sinkhole Collapse [ ] Volcanic Action Perils Parts: Broad or Special Only [ ] Glass Breakage [ ] Falling Objects [ ] Weight of Ice, Sleet, or Snow [ ] Water Damage CP-145 Ed 1.1 Copyright MCMXCIV, American Association of Insurance Services AAIS

121 AAIS EARNINGS COVERAGE PART Coverage is provided for one or more of the Coverage Options when shown by a limit on the declarations. If a limit is shown for more than one of the Coverage Options, the provisions of the Commercial Property Coverage apply separately to each. CP-60 Ed 1.0 ADDITIONAL DEFINITIONS 1. Business means normal business activities occurring at the described premises including the tenantability of the described premises when the selected coverage option includes rents. 2. Restoration period means the time it should reasonably take to resume your business starting from the date of loss to the described premises caused by a covered peril, and ending on the date the property should be rebuilt, repaired, or replaced. This is not limited by the expiration date of the policy. This does not include any increase in time due to the enforcement of any ordinance, law, or decree that regulates or requires: a. the construction, use, repair, or demolition of any property; or b. the testing, evaluating, observing, or recording the existence, level, or effects of pollutants. 3. Rents means your actual loss of: a. rental income of the described premises as furnished or equipped less any expenses that do not continue; b. the rental value of any part of the described premises that you occupy less any expenses that do not continue; and c. other charges for which a tenant is legally obligated and for which you would otherwise be obligated. COVERAGE OPTIONS 1. Earnings including rents. 2. Earnings other than rents. 3. Rents only. Earnings includes rents when option 1. is selected. Earnings means only rents when option 3. is selected. We provide the coverage shown below during the restoration period when your business is necessarily interrupted by direct physical loss to real or personal property as a result of a covered peril. This coverage applies only when the loss to real or personal property is at the described premises or in the open (or in vehicles) within 100 feet thereof. EARNINGS We cover your actual loss of net income (net profit or loss before income taxes), payroll expense, interest, and other continuing operating expenses normally incurred and earned by your business. We cover only the expenses that are necessary during the restoration period. Consideration is given to continuation of payroll and other expenses to the extent necessary to resume your business with the same quality of service that existed before the loss. EXCLUSIONS AND LIMITATIONS 1. Electronic Information - We do not cover loss of earnings caused by damage to or loss of electronic information beyond: a. 60 consecutive days from the date of loss; or b. the time from the date of loss until the date you could reasonably rebuild, repair, or replace other damaged property at the described premises caused by the same occurrence whichever is greater. Electronic information is media, programs, or records for electronic data processing or electronically controlled equipment including films, tapes, discs, drums, or cells. 2. Finished Stock - We do not cover loss of earnings caused by loss to stock CP-60 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

122 AAIS manufactured by you which is ready to pack, ship, or sell. This does not apply to stock manufactured for retail outlets that you own. 3. Fire Extinguishment - We do not cover expenses to put out a fire. 4. Leases, Licenses, Contracts, or Orders - We do not cover any increase in loss due to the suspension, lapse, or cancellation of leases, licenses, contracts, or orders. However, we do cover loss during the restoration period if the suspension, lapse, or cancellation results directly from the interruption of your business. 5. Strikes, Protests, and Other Interference - We do not cover any increase in loss due to interference by strikers or other persons at the described premises. This applies to interference with rebuilding, repairing, or replacing the property or with resuming your business. 6. Unnecessary Expenses - We do not cover any expenses that are not necessary during the restoration period. ADDITIONAL COVERAGES 1. Alterations and New Buildings - We extend your coverage to include loss caused by damage to: a. additions or alterations; b. new buildings or structures, completed or under construction; and c. machinery, equipment, supplies, or building materials located on or within 100 feet of the described premises used in the construction, alterations, or additions; or incidental to the occupancy of new buildings or structures at the described premises caused by a covered peril. If such loss delays the start of your business, the restoration period starts from the time your business would have begun had no loss occurred. This does not increase the limit. 2. Expenses to Reduce Loss - We extend your coverage to include expenses to reduce the amount of loss, but only to the extent that they reduce the amount of loss under this Coverage Part. This does not increase the limit. 3. Interruption by Civil Authority - We extend your coverage to include loss while access to the described premises is specifically denied by an order of civil authority. This order must be a result of damage to property other than at the described premises and caused by a covered peril. This extension is limited to two consecutive weeks from the date of the order. This does not increase the limit. 4. Newly Acquired Locations - We extend your coverage to include loss caused by damage to property at locations, other than at fairs or exhibitions, that you acquire. The damage must be caused by a covered peril. The most we pay is 10 percent of the highest limit shown on the declarations for this Coverage Part, but not exceeding $100,000. This coverage applies for 30 days after you acquire the location or until you report the newly acquired location to us, whichever occurs first. This coverage does not go beyond the expiration of this policy. You must pay any additional premium due from the date you acquire the location. This is an additional amount of insurance and is not subject to and not considered in applying coinsurance. 5. Period of Loss Extension - We extend your coverage for earnings to cover loss from the date the property that incurred the loss is rebuilt, repaired, or replaced until: a. the end of 30 consecutive days (unless otherwise shown on the declarations); or b. the date you could reasonably resume your business to the conditions that would have existed had no loss occurred, whichever is earlier. This does not increase the limit. CP-60 Ed 1.0 CP-60 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

123 AAIS PERILS COVERED See the applicable Perils Part shown on the declarations. WHAT MUST BE DONE IN CASE OF LOSS 1. Notice - In case of a loss, you must: a. give us or your agent prompt notice including a description of the property involved (we may request written notice); and b. give notice to the police when the act that causes the loss is a crime. 2. Protect Property - You must take all reasonable steps to protect covered property at and after an insured loss to avoid further loss. We pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a covered peril if a covered peril has already caused a loss to covered property. However, we do not pay for such repairs or emergency measures performed on property which has not been damaged by a covered peril. This does not increase our limit. 3. Proof of Loss - You must send us, within 60 days after our request, a signed, sworn proof of loss. This must include the time, place, and circumstances of the loss, and other information we request to investigate the loss. 4. Examination Under Oath - You must submit to examination under oath in matters connected with the loss as often as we reasonably request and give us sworn statements of the answers. If more than one person is examined, we have the right to examine and receive statements separately and not in the presence of others. 5. Records - You must produce records, including tax returns and bank microfilms of all cancelled checks, relating to value, loss and expense and permit copies and extracts to be made of them as often as we reasonably request. 6. Damaged Property - You must exhibit the damaged and undamaged property as often as we reasonably request and allow us to inspect or take samples of the property. 7. Cooperation - You must cooperate in performing all acts required by the Commercial Property Coverage. 8. Intent to Continue Business - If you intend to continue your business, you must resume all or part of your business as soon as possible. VALUATION In determining a loss, we consider the experience of your business before the loss and the probable experience had no loss occurred. We do not pay for any increase in loss due to your failure to use reasonable efforts to resume all or part of your business. This includes making use of other locations and property to reduce the loss. If your business is not resumed as soon as possible, or if it is not resumed at all, the value of loss payment is based on the period of time it would have otherwise taken to resume your business as soon as possible. HOW MUCH WE PAY We pay no more than our limit for any loss. Payment for earnings and extra expense combined does not exceed the limit. 1. Period of Indemnity - The following applies when a coinsurance percentage or a monthly limitation is not shown on the declarations. We do not cover more than the loss of earnings sustained within 120 days right after the loss to property, or the limit, whichever is less. 2. Coinsurance - The following applies when a coinsurance percentage is shown on the declarations. Coinsurance does not apply to the Additional Coverage, Expenses to Reduce Loss. CP-60 Ed 1.0 CP-60 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

124 AAIS CP-60 Ed 1.0 We only pay a part of the loss if the limit is less than the coinsurance percentage multiplied by the sum of your net income (net profit or loss before income taxes), payroll expense, interest, and other continuing operating expenses projected for the 12 months following the inception, or last previous anniversary date of this policy (whichever is later), normally earned by your business. Our part of the loss is determined using the following steps: a. Multiply the coinsurance percentage by the sum of your net income (net profit or loss before income taxes), payroll expense, interest, and other continuing operating expenses projected for the 12 months following the inception, or last previous anniversary date of this policy; b. Divide the limit by the figure determined in 2.a. above; c. Multiply the total amount of loss by the figure determined in 2.b. above. We pay the amount determined in 2.c. above; or the limit, whichever is less. We do not pay any remaining part of the loss. If there is more than one limit shown on the declarations for this Coverage Part, this procedure applies separately to each limit. Example - Underinsurance Net Income $100,000 Coinsurance 50% Limit $ 30,000 Loss $ 20,000 Step a.: $100,000 x 50% = $50,000 (minimum limit needed to meet coinsurance requirement) Step b.: $30,000 / $50,000 =.60 Step c.: $20,000 x.60 = $12,000 We pay no more than $12,000. We do not pay the remaining $8,000. Example - Sufficient Insurance Net Income $100,000 Coinsurance 50% Limit $ 50,000 Loss $ 20,000 Step a.: $100,000 x 50% = $50,000 (minimum limit needed to meet coinsurance requirement) Step b.: $50,000 / $50,000 = 1.00 Step c.: $20,000 x 1.00 = $20,000 We pay no more than $20,000. No penalty applies. 3. Monthly Limitation - The following applies when a monthly limitation is shown on the declarations. We do not cover more than the monthly limitation shown on the declarations multiplied by the limit during any 30 consecutive days. Example Limit $100,000 Monthly limitation ¼ We pay no more than $25,000 / $100,000 (1/4) during any 30 consecutive days. If the actual amount of loss is: Days 1-30 $30,000 Days $25,000 Days $10,000 Total $65,000 We pay: Days 1-30 $25,000 Days $25,000 Days $10,000 Total $60,000 We do not pay the remaining $5, Insurance Under More Than One Coverage - If more than one coverage of this policy insures the same loss, we pay no more than the actual claim or loss sustained. 5. Insurance Under More Than One Policy - You may have another policy subject to the same plan, terms, conditions, and provisions as this policy. If you do, we pay our share of CP-60 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

125 AAIS the covered loss. Our share is the proportion that the applicable limit 6. under this policy bears to the limit of all policies covering on the same basis. If there is another policy covering the same loss, other than that described above, we pay only for the amount of covered loss in excess of the amount due from that other policy, whether you can collect on it or not. But we do not pay more than the applicable limit. LOSS PAYMENT A covered loss is payable 30 days after a satisfactory proof of loss is received, and the amount of the loss has been established either by written agreement with you or the filing of an appraisal award with us. OTHER CONDITIONS In addition to the policy terms which are contained in other sections of the Commercial Property Coverage, the following condition applies: Appraisal - If you and we do not agree on the amount of net income (net profit or loss before income taxes), payroll expense, interest, and operating expenses or the amount of loss, either party may demand that these amounts be determined by appraisal. If either makes a written demand for appraisal, each selects a competent, independent appraiser and notifies the other of the appraiser's identity within 20 days of receipt of the written demand. The two appraisers then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire. The appraisers then determine and state separately the amount of each loss. A written agreement is binding on all parties. If the appraisers fail to agree within a reasonable time, they submit only their differences to the umpire. Written agreement so itemized and signed by any two of these three is binding on all parties. Each appraiser is paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire is paid equally by you and us. If there is an appraisal, we retain our right to deny the claim. CP-60 Ed 1.0 CP-60 Ed AAIS Copyright MCMXCIV, American Association of Insurance Services

126 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-605 Ed 1.0 Prem. No. OUTDOOR SIGNS SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Description (include construction) Coinsurance Perils Part Limit PROPERTY COVERED We cover outdoor signs at the described premises shown on the schedule above. PROPERTY EXCLUDED AND LIMITATIONS The exclusion for outdoor signs does not apply. PERILS COVERED See the applicable Perils Part shown on the schedule above. LOSS PAYMENT The most we pay for loss to a sign described on the schedule above in any one occurrence is the limit shown on the schedule above for that sign. CP-605 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

127 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-606 Ed 1.0 Prem. No. ANTENNA COVERAGE SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Description (include construction) Coinsurance Perils Part Limit PROPERTY COVERED We cover outdoor radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring, at the described premises shown on the schedule above. PROPERTY EXCLUDED AND LIMITATIONS The exclusion for outdoor radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring does not apply. PERILS COVERED See the applicable Perils Part shown on the schedule above. LOSS PAYMENT The most we pay for loss to an antenna described on the schedule above in any one occurrence is the limit shown on the schedule above for that antenna. CP-606 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

128 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-610 Ed 1.0 TREES, SHRUBS, AND PLANTS Prem. No. SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. No. Each Tree Each Plant Limit Each Shrub All Items Perils Part Vehicle Exclusion PROPERTY COVERED We cover trees, shrubs, and plants, when outdoors, at the described premises shown on the schedule above. PROPERTY EXCLUDED AND LIMITATIONS The limitation for trees, shrubs, and plants does not apply. PERILS COVERED See the applicable Perils Part shown on the schedule above. PERILS EXCLUDED The following exclusion applies only when indicated by an "X" on the schedule above: Vehicles -- We do not cover loss caused by vehicles to trees, shrubs, or plants. LOSS PAYMENT The most we pay for loss to covered trees, shrubs, and plants in any one occurrence is the limit shown on the schedule above for All Items. This limit is subject to the separate limit applicable to Each Tree, Each Shrub, or Each Plant shown on the schedule above. CP-610 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

129 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-612 Ed 1.0 EXPLOSION LIMITATION FOR GRAIN RISKS PERILS COVERED The following is added to the peril of explosion: Explosion does not include loss caused by the rupturing or bursting of any building or structure caused by expansion or contraction due to changes in temperature. CP-612 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

130 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-613 Ed 1.0 EXPLOSION LIMITATION FOR PUBLIC UTILITY GAS RISKS PERILS COVERED The following is added to the peril of explosion: Explosion does not include loss caused by explosion of gas turbines or gas internal combustion engines that you own or lease or that are operated under your control. CP-613 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

131 AAIS This endorsement changes the Commercial Property Coverages provided by this policy -- PLEASE READ THIS CAREFULLY -- CP-614 Ed 1.0 Prem. No. PROTECTIVE DEVICES SCHEDULE (The information required below may be shown on a separate schedule or supplemental declarations.) Bldg. Protective Device or Service No. OTHER CONDITIONS Protective Devices -- You are required to maintain the protective devices and services shown on the schedule above. PERILS EXCLUDED 1. The following is added to the Fire, Basic, Broad, and Special Perils Part of this policy and applies only to devices or services providing fire protection: We do not pay for loss caused by fire if, prior to the fire, you: a. had knowledge of any suspension or impairment in any protective device or service shown on the schedule above and did not notify us; or If part of an automatic sprinkler system is shut off and you restore full protection within 48 hours, notification to us is not necessary. 2. The following is added to the Special Perils Part of this policy and applies only to devices or services providing theft protection: We do not pay for loss caused by theft if, prior to the theft, you: a. had knowledge of any suspension or impairment in any protective device or service shown on the schedule above and did not notify us; or b. failed to maintain in complete working order, any protective device or service shown on the schedule above which you control. b. failed to maintain in complete working order, any protective device or service shown on the schedule above which you control. CP-614 Ed 1.0 Copyright MCMXCIV, American Association of Insurance Services AAIS

132 AAIS CL Page 2 of 2 Except as provided in 3.a. or 3.b. above, the Non-certified Act of Terrorism Exclusion will only apply to an incident of "non-certified terrorism loss" in which the total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico, and Canada exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, "we" will include all insured damage sustained by property of all persons and entities affected by the terrorism and business interruption losses sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any insurance but for the application of any terrorism exclusions. Multiple incidents of "non-certified terrorism loss" which occur within a 72-hour period and appear to be carried out in concert or to have a related purpose or common leadership will be deemed to be one incident. The preceding paragraph describes the threshold used to measure the magnitude of an incident of "non-certified terrorism loss" and the circumstances in which the threshold will apply, for the purpose of determining whether the Non-certified Act of Terrorism Exclusion will apply to that incident. When the Non-certified Act of Terrorism Exclusion applies to an incident of terrorism, there is no coverage under this Coverage Part. Fire Exception -- If a "non-certified act of terrorism" results in fire, "we" will pay for the loss or damage caused by that fire. This exception for fire applies only to direct loss or damage by fire to covered property. This exception does not apply to coverage for loss of earnings, extra expense, or fire legal liability. 4. The following provisions are added. a. Neither the "terms" of this endorsement nor the "terms" of any other terrorism endorsement attached to this Coverage Part provide coverage for any loss that would otherwise be excluded by this Coverage Part under: 1) exclusions that address war, military action, or nuclear hazard; or 2) any other exclusion; and b. the absence of any other terrorism endorsement does not imply coverage for any loss that would otherwise be excluded by this Coverage Part under: CL ) exclusions that address war, military action, or nuclear hazard; or 2) any other exclusion. NON-CERTIFIED ACT OF TERRORISM EXCLUSION "We" will not pay for loss or damage caused directly or indirectly by a "non-certified act of terrorism", including action in hindering or defending against an actual or expected "non-certified act of terrorism". Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. Copyright, American Association of Insurance Services, Inc., 2002