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15.5 Section I Limits

Limits of Insurance​

The maximum amount the policy will pay for a covered loss in a single occurrence is the applicable limit of insurance shown in the Declarations. These limits may be assigned to specific property, such as scheduled limits for individual buildings, or provided as a blanket limit that applies to a category of property, such as buildings or business personal property.

The policy pays up to $1,000 per sign, per occurrence for covered loss or damage to outdoor signs attached to the building.

Automatic Increase in Building Limit​

To help keep pace with inflation, the building limit of insurance automatically increases by 8% each year, unless a different percentage is shown in the Declarations.

The inflation increase is applied daily throughout the policy period. To calculate the daily increase, multiply the building's limit of insurance by the annual increase percentage, then divide the result by 365.

Seasonal Increase in Business Personal Property Limit​

The business personal property limit automatically increases by 25% to cover seasonal increases in property values, such as additional stock held during peak periods. A different percentage may be shown in the Declarations. This increase applies only when the listed limit is at least 100% of the insured’s average monthly business personal property values during the 12 months before the loss.

Deductibles​

The standard deductible is $500, although the insured may select a higher or lower deductible. The deductible applies per location, per occurrence. The insurer pays the covered loss that exceeds the deductible, up to the applicable limit of insurance. Optional Coverages, if selected, have their own deductible.

The deductible does not apply to the following Additional Coverages:

  • Fire Department Service Charge
  • Fire Extinguisher Systems Recharge Expense
  • Business Income
  • Extra Expense
  • Civil Authority