Service Line Endorsement Coverage

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
SERVICE LINE ENHANCEMENT ENDORSEMENT

This endorsement modifies insurance provided under the following:

HO 00 03 - HOMEOWNERS 3 SPECIAL FORM HO 00 05 - HOMEOWNERS 5 COMPREHENSIVE FORM

Read the entire endorsement carefully to determine rights, duties and what is and is not covered.

Service Line coverage is subject to a $10,000 per Occurrence Limit of Liability.
Service Line coverage is subject to a $500 per Occurrence Deductible.

Service Line Coverage:

We cover direct physical loss to "Service Line Covered Property" that is caused by a "Service Line Occurrence" at a "residence premises". Service Line Coverage extends to any Loss of Use coverage provided in the policy to which this endorsement attaches. The Service Line Coverage Per Occurrence Limit is the most we pay for any one loss, regardless of the number of "Service Line Occurrences".

Definitions

The following Definitions are added:

  1. "Green" as used herein means products, materials, methods and processes certified by a "Green Authority" that conserve natural resources, reduce energy or water consumption, avoid toxic or other polluting emissions or otherwise minimize environmental impact
  2. "Green Authority" as used herein means an authority on "Green" buildings, products, materials, methods or processes certified and accepted by Leadership in Energy and Environmental Design (LEED®), "Green" Building Initiative Green Globes®, Energy Star Rating System or any other recognized "Green" rating system.
  3. "Service Line Covered Property" as used herein means any piping or wiring that provides the following services to a "residence premises"; electrical power, heating, natural gas, waste disposal, compressed air, water, steam, internet access, telecommunications services, wide area networks or data transmission. However, "Service Line Covered Property" does not include any piping or wiring that is not underground.
  4. "Service Line Occurrence" as used herein means loss or damage caused by:
    1. wear and tear;
    2. rust or other corrosion, decay, deterioration, hidden or latent defect,
    3. collapse, but not including sinkhole or subsidence collapse;
    4. electrical and mechanical or pressure systems breakdown; or
    5. freeze.

    5. "Service Line Occurrence" will only apply to causes of loss listed above. However, "Service Line Occurrence" will include any excavation costs associated with the repair or replacement of "Service Line Covered Property".

Section I – Conditions

With respect to the coverage provided by this endorsement the following Conditions are deleted and replaced with:

B. Deductible

  1. The Service Line Coverage Per Occurrence Deductible applies to all coverages provided by this endorsement.
  2. Subject to the limits set forth by this endorsement, we pay that part of the loss, damage, or expense over the deductible. Only one deductible applies at each location.

D. Loss Settlement

  1. Loss Settlement Terms -- Subject to the other terms shown under Section I Conditions and the terms of this endorsement, we settle losses according to the "Replacement Cost Terms".
  2. Replacement Cost Terms -- The smaller of the following amounts is used in applying the terms under the Service Line Coverage Per Occurrence Limit:
    1. the cost, at the time of loss, to replace the lost or damaged part of the property, without deduction for depreciation; or
    2. the cost, at the time of loss, to repair the damaged part of the property.

With respect to the coverage provided by this endorsement the following Conditions are added:

Green Environmental, Safety, and Efficiency Improvements

If Covered Property requires repair or replacement due to a "Service Line Occurrence", we will pay:

  1. The additional cost to repair or replace that property with equipment that is better for the environment; safer; or more efficient than the equipment being repaired or replaced.
  2. The additional reasonable and necessary fees incurred by the Insured for an accredited professional certified by a "Green Authority" to participate in the repair or replacement of physically damaged "Service Line Covered Property" as "Green".
  3. The additional reasonable and necessary cost incurred by the Insured for certification or recertification of the repaired or replaced "Service Line Covered Property" as "Green".
  4. The additional reasonable and necessary cost incurred by the Insured for "Green" in the removal, disposal or recycling of damaged "Service Line Covered Property".
  5. The Loss of Use (if covered within the Policy to which the Service Line Enhancement Coverage is attached) loss during the additional time required for repair or replacement of "Service Line Covered Property", consistent with "Green", in the coverages above.

However, we will not pay more than 150% of what the cost would have been to repair or replace such property with like kind and quality inclusive of fees, costs, and any loss of use loss incurred as stated above.

These Conditions will be part of, and not in addition to, the limit of liability per loss or any other sub-limits of this Policy. All other provisions of your policy apply

The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.