2013 - property damage all risks - pdar_13.pdf

8/13/2019 2013 - Property Damage All Risks - PDAR_13.pdf

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PDAR_13 Ace Package Policy 2013 vii.12

Extensions

Capital Additions 1. The insurance provided by this Section on Buildings and Contents includes in so far as the same are not otherwise insured and in addition tothe Limit(s) of Liability stated in the Schedule

a) any newly acquired or newly erected Buildings and Contents anywhere within the Territorial Limits

b) alterations, additions and improvements to Buildings andContents but excluding appreciation in value

Provided always that

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

b) at any one premises this additional insurance shall not exceed10% of the appropriate Limit of Liability or GBP500,000 in the

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

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

a) i) removing debris of

ii) dismantling and/or demolishing

iii) shoring up or propping

that portion or portions of the Property Insured which havesustained Damage

b) i) cleaning and/or clearing drains, sewers or gutters, the property of the Insured or for which they areresponsible

ii) cleaning and/or removing undamaged PropertyInsured for an amount not exceeding GBP10,000 anyone loss

following Damage hereby insured against but excluding any costs orexpenses

(1) incurred in removing debris except from the site of such property which has sustained Damage and the area immediatelyadjacent to such site

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

European Union andPublic Authorities

(including undamagedproperty)

3. Subject to the following Special Conditions applicable to Extension 3 the insurance by this Section extends to include such additional cost ofReinstatement as may be incurred solely by reason of the necessity tocomply with the Stipulations of

a) European Union Legislation, or

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

c) the Company requiring conformity to the appropriate SprinklerRules of an automatic sprinkler installation which conformed tothe appropriate Rules when installed but fail to conform tosubsequent amendments to those Rules

(hereafter referred to as the Stipulations ) in respect of- the lost destroyed or damaged property thereby insured


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- undamaged portions thereof

Excluding

a) the cost incurred in complying with the Stipulations

i) in respect of Damage occurring prior to the granting ofthis Extension

ii) in respect of Damage not insured by this Policy

iii) under which notice has been served upon the Insured prior to the happening of the Damage

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

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

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

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

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

Special Conditions applicable to Extension 3

1) With regard to the provision of water supply equipment whichmay be required in connection with reinstatement of thesprinkler installation in the damaged portion of the Premises tothe current Sprinkler Rules and in the event that such equipmentmay also be serving the sprinkler installation in undamaged

portions of the Premises a proportionate contribution will be

agreed.2) The work of Reinstatement must be commenced and carried

out without unreasonable delay and in any case must becompleted within twelve months after the Damage or withinsuch further time as the Company may allow (during the saidtwelve months) and may be carried out upon another site (if theStipulations so necessitate) subject to the liability of theCompany under this Extension not being thereby increased.

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

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

respect of this Extension shall not exceed

a) 15% of the appropriate Limit of Liability

b) where the appropriate Limit of Liability of the itemapplies to Property Insured at more than onePremises 15% of the total amount for which theCompany would have been liable had the PropertyInsured by the item at the Premises where Damage has occurred been wholly destroyed.

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


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

Fire ExtinguishingExpenses

4. The Company will reimburse the Insured for the cost of refilling,recharging and/or replacing any fire extinguishing appliances and/orequipment including sprinkler heads following Damage , and FireBrigade charges and other extinguishing expenses for which the Insured may be assessed for an amount not exceeding GBP10,000 any one loss.

Fixed Glass 5. This Section includes Damage (including temporary boarding-up) to allfixed

a) internal and external glass of normal glazing quality or as mayotherwise be specified under any Building Regulations whichmay apply for which the Insured is responsible or for whichthey may deem themselves responsible for an amount notexceeding the cost of replacement

b) sanitary ware and wash basins.

The Company shall not be liable under this Extension for

a) breakage occasioned by or happening through removal or duringalteration or repairs on or about the Premises

b) damage to lettering, silvering, embossing or ornamental work

c) the repair or replacement of frames or other fittings

d) loss of or damage to goods displayed in windows or showcases

e) loss due to the interruption of the Business or other damage orinjury consequent upon the breakage of the plate glass or due todelay in the replacement thereof

f) any glass cracked or imperfectly glazed at the inception of thisinsurance.

Metered Water 6. The insurance provided by this Section extends to include loss resultingfrom accidental escape of water from pipes or apparatus but only to theextent that

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

b) if the Water Authority demands excess water charges.

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

Professional Fees 7. Unless more specifically insured, the insurance provided by each itemunder this Section on Buildings and Contents includes an amount inrespect of architects', surveyors', lawyers consulting engineers and other

professional fees necessarily and reasonably incurred in theReinstatement of such Property Insured consequent upon it havingsustained Damage , but not for preparing any claim. The amount payablefor such fees shall not exceed those authorised under the scale of chargesof their respective professional bodies at the time of Damage andliability for such Damage and fees shall not exceed in the aggregate thesum insured by each such item as set out in the Schedule.

Replacement Locks 8. Costs necessarily incurred in the replacement of locks at the Premises due to theft of keys from the Premises or from the home of any director

partner or employee authorised by the Insured to hold such keys areincluded for an amount not exceeding GBP2,500 any one loss.

Spontaneous Combustion 9. Damage of or to coal, coke or wood blocks caused by their ownspontaneous fermentation, heating or combustion is included in theinsurance hereby notwithstanding anything contained herein to thecontrary.


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Special Extension applicable to this Section

Loss Prevention /Minimisation

1. This Section is extended to include costs and expenses necessarily andreasonably incurred as a result of emergency action taken, including the

prompt execution of temporary repairs, in order to prevent or minimiseactual or imminent Damage to the Property Insured by any cause nototherwise excluded.

Provided that

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

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

c) i) the liability of the Company under this SpecialExtension shall not exceed the amount of the saving tothe Company achieved by such expenditure, and

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


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Special Conditions

Automatic Reinstatementof Loss

1. In the absence of written notice by the Company to the contrary, inconsideration of the insurance by this Section not being reduced by theamount of any loss, the Insured shall pay additional premium (to becalculated at the rate on which premium is assessed on the amount ofsuch loss) for the period from the date of loss to the expiry of the Periodof Insurance .

Brands and Labels 2. In the event of Damage to Property Insured hereby, any salvage of branded or labelled Stock and or merchandise, the Insureds own or held by them in trust or on commission, and or goods sold but not delivered,shall not be disposed of by sale without the consent of the Insured . Ifsuch salvage is not disposed of by sale then the Damage will be assessedat the value agreed between the Insured and the Company and taken intoconsideration at the settlement of the loss.

Contract Price 3. In respect only of goods sold but not delivered for which the Insured areresponsible subject to a sale contract which, following Damage , iscancelled by reason of its conditions wholly or to the extent of theDamage , the liability of the Company shall be based on the contract

price.

For the purpose of this insurance the value of all goods to which thisSpecial Condition could apply in the event of Damage shall also beascertained on this basis.

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

Non- Invalidation 5. The insurance provided by this Section shall not be invalidated by anyact or omission or by any alteration whereby the risk of Damage isincreased, and which the Insured has demonstrated to the Companyssatisfaction was unknown to or beyond the control of the Insured , at and

before notification of any claim to the Company provided that theInsured , immediately they become aware thereof, shall give notice to theCompany and pay an additional premium if required.

Other Interests 6. The interest of other parties in this insurance is noted it being understoodthat in the event of any Damage the nature and extent of such otherinterests will be disclosed by the Insured .

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

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

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

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

by such inspection or otherwise

c) i) any intruder / fire alarm at the Premises is

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

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


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

(4) reset and put into full and effective operationfollowing any activation

in the event that any intruder alarm cannot bereset and put into operation the Premises must

be secured and the Police informed theintruder alarm is no longer operational

(5) tested regularly in accordance with theCompanys requirements

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

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

d) in the case of losses or Damage occasioned by theft that theInsured shall not have received a written notification from

i) the alarm company that the maintenance contract issuspended

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

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

i) the keys for any intruder protections

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

Insured are removed from the Premises

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

purpose of inspecting said installations.

Purchaser's Interest 8. If at the time of Damage the Insured shall have contracted to sell theirinterest in any Building hereby insured and such purchase issubsequently completed, the purchaser, on completion of the purchase, ifand so far as the property is not otherwise insured by or on behalf of the

purchaser against such Damage , shall be entitled to the benefit of thisSection so far as it relates to such Damage without prejudice to the rightsand liabilities of the Insured or the Company under this Section up to thedate of completion.


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Reinstatement 9. The basis upon which the amount payable in respect of Buildings andContents is to be calculated shall be the Reinstatement of the propertythat has sustained Damage .

Provided always that

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

proportion of the amount of the Damage which the said Limitof Liability shall bear to the sum representing the total cost ofreinstating the whole of such property at that time

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

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

i) unless Reinstatement commences and proceedswithout unreasonable delay

ii) until the cost of Reinstatement shall have beenactually incurred

iii) if the Property Insured at the time of its Damage shall be insured by any other insurance effected by oron behalf of the Insured which is not upon the same

basis of Reinstatement

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

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

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

Reinstatement (Day One Basis)

10. If the Buildings and/or Contents items in the Schedule to this Policyshow differing amounts under the Limit of Liability and DeclaredValue headings then the insurance provided by this Section on the saidBuildings and/or Contents shall be on a Day One Reinstatement

basis and the Limit(s) of Liability are the Declared Values plus a percentage increase as agreed between the Insured and the Company.

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

Declaration in the Schedule) for Buildings and/or Contents the premium has been calculated accordingly

b) Declared Value means the Insured's assessment of the cost ofReinstatement of such Property Insured arrived at inaccordance with the definition of Reinstatement , at the level ofcosts applying at the commencement ("Day One") of thePeriod of Insurance (ignoring inflationary factors which mayoperate subsequently). Such cost of Reinstatement shallinclude due allowance for

i) debris removal costs

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

iii) professional fees


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as set out in Extension 2 - Debris Removal, Extension 3 -European Union and Public Authorities (includingundamaged property) and Extension 7 - Professional Fees ofthis Section.

Provisions applicable to Special Condition 10

a) At the commencement of each subsequent Period of Insurance the Insured will notify the Company of the Declared Value ofsuch Property Insured . In the absence of such declaration thelast amount declared by the Insured shall be taken as theDeclared Value for the ensuing Period of Insurance .

b) If at the commencement of Damage the Declared Value ofsuch Property Insured is less than the cost of Reinstatement at the commencement of the Period of Insurance then theCompany's liability for the Damage shall not exceed that

proportion of the Damage which the Declared Value bears tosuch cost of Reinstatement . This Proviso applies separately toeach Declared Value stated in the Schedule.

c) Where a claim is payable as ifSpecial Condition 9

Reinstatement had not been incorporated the Limit(s) ofLiability shall be reduced to the Declared Value(s) and Proviso

b) above shall not apply.

Rent 11. Definition 5 - Rent applies only if any of the Buildings or any partthereof is unfit for occupation in consequence of its destruction ordamage. The amount payable shall not exceed such proportion of theLimit of Liability on Rent as the period necessary for Reinstatement

bears to the term of Rent insured.

Stock Average 12. If at the commencement of Damage the Limit of Liability for Stock isless than the value of Stock the amount payable by the Company shall be

proportionately reduced. The value of Stock shall take into account theadditional insurance provided for under Special Condition 3 - ContractPrice, Extension 2 - Debris Removal and Extension 10 - TemporaryRemoval .

Stock Racking 13. It is a condition precedent to any liability of the Company under thisSection that all Stock stored below ground level or in basements beraised on racking, stillages, pallets or the like to allow at least 150 mm airspace between the Stock and floor level and further that all Stock on theground level be similarly raised to allow at least 100 mm air space

between the Stock and floor level.

Tenants 14. This Section shall not be invalidated by reason of anything done oromitted to be done by a third party without the Insureds knowledge inrespect of any portion of the Premises referred to in the Schedule to thisPolicy not occupied by the Insured , whether constituting an increase inrisk or not provided that the Insured , immediately they become awarethereof shall inform the Company of such alteration and pay suchreasonable additional premium as the Company may require.

Waste 15. It is a condition precedent to any liability of the Company under thisSection that

a) all oily/greasy waste and cloths must be placed in lidded metalreceptacles and removed outside the buildings daily beforeclosing

b) all other waste and refuse be swept up and bagged daily andremoved to a safe distance from the Premises at least once aweek.


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Workmen 16. Workmen are allowed in and about the Premises for the purpose ofmaking new erections or alterations, repair, decoration, plant installation,general maintenance and the like without prejudice to the terms andconditions of this Section and of the Policy.


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Exclusions

This Section does not cover

1. Damage caused by or consisting of

a) inherent vice, latent defect, gradual deterioration, wear and tear, frost, change in water tablelevel, seepage below ground level, its own faulty or defective design or materials

b) faulty or defective workmanship, operational error or omission, on the part of the Insured orany employees of the Insured , but only in respect of the work in progress or that part of the

property being worked upon

c) the bursting of a boiler (not being a boiler used for domestic purposes only) economiser orother vessel machine or apparatus in which internal pressure is due to steam only and

belonging to or under the control of the Insured

d) pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonicspeeds

but this shall not exclude subsequent Damage which itself results from a cause not otherwiseexcluded.


a) corrosion, rust, wet or dry rot, shrinkage, evaporation, loss of weight, dampness, dryness,marring, scratching, vermin or insects

b) change in temperature, colour, flavour, texture or finish

c) theft or any attempted theft

i) at the Premises unless involving forcible and violent entry thereto or therefrom orinvolving violence against or threat thereof to the Insured , the Insureds household, any director, partner or employee of the Insured

ii) of Property Insured not in a securely locked building(s)

iii) of Property Insured contained in any vehicle while such vehicle is left

unattended unless(1) all doors have been securely locked, all windows and other openings

securely and adequately fastened and any immobiliser and any alarmfitted to the said vehicle correctly set to operate and all keys removed,with all Property Insured being located out of plain sight and

(2) the vehicle is housed overnight in a securely locked building ofsubstantial construction or a compound, which has secure walls and/orfences and securely locked gates

iv) where any member of the Insureds household, any director, partner or employeeof the Insured is concerned as principal or accessory

v) of Property Insured whilst on the premises of an hotel or motel unless in the possession of the Insured or in a locked safe, vault or hotel or motel room.


a) joint leakage, failure of welds, cracking, fracturing, collapse or overheating of boilers,economisers, superheaters, pressure vessels or any range of steam and feed piping inconnection therewith

b) mechanical or electrical breakdown or derangement in respect of the particular machineapparatus or equipment in which such breakdown or derangement originates

but this shall not exclude ensuing Damage caused by a peril not otherwise excluded by this Policy.

4. Damage caused by or consisting of pollution or contamination but this shall not exclude destruction ofor damage to the Property Insured caused by

a) pollution or contamination which itself results from

i) fire (including subterranean fire), lightning and explosion

ii) earthquake


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iii) aircraft or other aerial devices or articles dropped therefrom

iv) impact by any animal or road vehicle

v) riot, civil commotion, strikers, locked out workers, labour disturbances ormalicious persons

vi) storm or flood

vii) escape of water from any tank apparatus or pipe and the like

b) a peril listed in a) above which itself results from pollution or contamination

unless resulting from an excluded cause or otherwise excluded under this Policy.


a) subsidence ground heave or landslip unless resulting from fire, explosion, earthquake or theescape of water from any tank, apparatus or pipe

b) normal settlement or bedding down of new structures

c) unexplained disappearance or inventory shortage, misfiling or misplacing of information

d) erasure or distortion of information on computer systems or other records

i) whilst mounted in or on any machine or data processing apparatus orii) due to the presence of magnetic flux

unless caused by Damage not being the result of an excluded cause in respect of themachine or apparatus in which the records are mounted.

6. Damage to a building or structure caused by its own collapse or cracking unless resulting from

a) fire (including subterranean fire), lightning and explosion

b) earthquake

c) aircraft or other aerial devices or articles dropped therefrom

d) impact by any animal or road vehicle

e) riot, civil commotion, strikers, locked out workers, labour disturbances or malicious persons

f) storm or flood

g) escape of water from any tank apparatus or pipe and the like

in so far as it is not otherwise excluded.

7. Damage in respect of movable property in the open, fences and gates caused by wind, rain, hail, sleet,snow, flood or dust.

8. Damage to Property Insured

a) caused by fire resulting from its undergoing any heating process or any process involvingthe application of heat

b) (other than by fire or explosion) resulting from its undergoing any process of production, packing, treatment, testing, commissioning, servicing or repair

c) caused by the solidification of molten material unless such Damage results from


ii) earthquake



v) riot, civil commotion, strikers, locked out workers, labour disturbances ormalicious persons

vi) storm or flood


and which is not otherwise excluded


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d) caused by the escape of molten material from any furnace, mould, ladle, holding unit,transmission line or appurtenance but this shall not exclude ensuing Damage caused by fireor explosion to the extent that this is not otherwise excluded by this Policy.

9. Damage

a) caused by freezing

b) caused by escape of water from any tank, apparatus or pipec) caused (other than by fire or explosion) by malicious persons not acting on behalf of or in

connection with any political organisation

d) caused by theft or attempt thereat

in respect of any building which is empty or not in use.

10. Damage in respect of

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

b) glass (other than fixed glass) china, earthenware, marble or other fragile or brittle objects

other than such Damage caused by


ii) earthquake



v) riot, civil commotion, strikers, locked out workers, labour disturbances or malicious persons

vi) storm or flood


in so far as it is not otherwise excluded or where otherwise more specifically insured by this Policy.

11. Damage in respect of

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

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

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

d) livestock, growing crops or trees

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

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

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

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

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

15. Consequential Loss of any kind or description except loss of Rent when such loss is included in thecover under this Section.

16. Damage occasioned by

a) the voluntary parting with title or possession of any property or rights to property

b) confiscation requisition seizure or destruction by order of the government or any publicauthority

c) the cessation of work.


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PDAR 13 Ace Package Policy 2013 vii 12

17. the first GBP500 of each and every event of Damage in respect of each separate Premises or transit asascertained after the application of any condition of average or such other amounts set forth herein orendorsed hereon. Except that for claims other than for theft (or any attempt thereat) this amount willonly be deducted once in respect of any series of claims arising from the same proximate causeoccurring during a 72 hour period.

2013 - property damage all risks - pdar_13.pdf

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