Common use of Tear-Out Clause in Contracts

Tear-Out. If a loss insured to Coverage A property is caused by water, steam, or sewage escaping from a system or appliance, we will also pay the reasona- ble cost you incur to tear out and replace only that particular part of the building structure or condo- minium unit owned by you necessary to gain access to the specific point of that system or appliance from which the water, steam, or sewage escaped. We will not pay for the cost of repairing or replacing the sys- tem or appliance itself. This coverage does not in- crease the limit applying to Coverage A property. The limits of liability shown in the Declarations for Cover- age A and Coverage B will be increased at the same rate as the increase in the Inflation Coverage Index shown in the Declarations. To find the limits on a given date: 1. divide the Index on that date by the Index as of the ef- fective date of this Inflation Coverage provision; then 2. multiply the resulting factor by the limits of liability for Coverage A and Coverage B separately. The limits of liability will not be reduced to less than the amounts shown in the Declarations. If during the term of this policy the Coverage B limit of lia- bility is changed at your request, the effective date of this Inflation Coverage provision is changed to coincide with the effective date of such change. This Inflation Coverage provision does not apply to the limit of liability of Coverage A when both: 1. the limit of liability of Coverage B is less than $10,000; and 2. the limit of liability of Coverage A is no more than $1,000. We will pay for accidental direct physical loss to the prop- erty described in Coverage A and Coverage D, unless the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this policy. However, loss does not include and we will not pay for, any diminution in value. We will pay for accidental direct physical loss to the property described in Coverage B caused by the following perils, un- less the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this pol- icy. However, loss does not include and we will not pay for, any diminution in value.

Tear-Out. If a loss insured to Coverage A property is caused by water, steam, or sewage escaping from a system or appliance, we will also pay the reasona- ble cost you incur to tear out and replace only that particular part of the building structure or condo- minium unit owned by you necessary to gain access to the specific point of that system or appliance from which the water, steam, or sewage escaped. We will not pay for the cost of repairing or replacing the sys- tem or appliance itself. This coverage does not in- crease the limit applying to Coverage A property. The limits of liability shown in the Declarations for Cover- age A and Coverage B will be increased at the same rate as the increase in the Inflation Coverage Index shown in the Declarations. To find the limits on a given date: 1. divide the Index on that date by the Index as of the ef- fective effective date of this Inflation Coverage provision; then 2. multiply the resulting factor by the limits of liability for Coverage A and Coverage B separately. The limits of liability will not be reduced to less than the amounts shown in the Declarations. If during the term of this policy the Coverage B limit of lia- bility is changed at your request, the effective date of this Inflation Coverage provision is changed to coincide with the effective date of such change. This Inflation Coverage provision does not apply to the limit of liability of Coverage A when both: 1. the limit of liability of Coverage B is less than $10,000; and 2. the limit of liability of Coverage A is no more than $1,000. We will pay for accidental direct physical loss to the prop- erty described in Coverage A and Coverage D, unless the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this policy. However, loss does not include and we will not pay for, any diminution in value. We will pay for accidental direct physical loss to the property described in Coverage B caused by the following perils, un- less the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this pol- icypolicy. However, loss does not include and we will not pay for, any diminution in value.