Common use of Reinstatement of Sum Insured Clause in Contracts

Reinstatement of Sum Insured. Immediately upon the happening of any loss or damage as described in this Section, the total Sum Insured and the Sums Insured upon the various items of the property insured which have been lost or damaged, shall be reduced by the amount of such loss or damage and such reduced Sums Insured shall be the limit of the Company’s liability during the current Period of Insurance unless the Company consents, upon payment of additional premium, to reinstate the full Sum Insured.