Earthquake Damage caused by earth movement, whether by earthquake, landslide, rising or shifting of land is covered up to the stated policy limit. Damage due to volcanic eruption is also covered. This coverage is subject to a separate deductible based on a percentage of the stated limit used. Flood Damage caused by flood, high tides or waves, or rising water due to a storm, that results in damage to your building or contents, is covered up to the policy limit. Mudslide damage, when caused by these perils, is also included.
Property is covered in a actual cash basis.
This type of loss would result from the enforcement of laws or ordinance which do not permit restoring property insured under the Building item to the same condition as existed prior to damage. This would cover Loss of Value of the undamaged portion. This coverage protects your business in the event demolition after a covered loss is necessary, to prepare for rebuilding of your property. This may be required if the remaining structure is deemed unsafe. Increased Cost of Construction While your policy written on a replacement cost form, the materials which you are to replace may by outdated or no longer in use, and newer, more expensive material may be required.