(July 2020)
This endorsement provides limited property and liability
protection against losses caused by exposure to lead and by liquid fuel that
escapes from its intended receptacle. This endorsement also extends coverage
for loss assessments made against the insured for damages arising from lead
exposure or escaped liquid fuel
This portion of the form provides space to enter an
aggregate limit for limited lead and liquid fuel liability. In addition, a
property remediation for damage caused by escaped fuel limit must be entered
along with any locations that are to be considered residence premises under
this endorsement.
The policyholder is given notice that the listed limits are
the total amounts available and they are unaffected by the number of
assessments or locations involved in a given loss.
One definition is altered and three are added.
The policy’s definition of “residence premises” is altered. The revised definition is broader because
it also extends premises status to any location scheduled on this form.
The following definitions are added and apply only to this
endorsement:
Covered real property
– refers to owned property of the sort that is commonly insured under Coverages
A and B including materials intended for use to build, repair, or renovate such
structures. It also refers to land on the same premises (but NOT farmland). The
term does not include water, parts of the defined fuel system or trees, shrubs,
lawns, etc. (except for the form’s limited coverage for these items).
Covered personal
property – refers to on-premises property owned or used by an insured that
qualifies for protection under Coverage C (and is also subject to the policy’s
Special Limits of Liability).
Fuel system -
refers to one or more containers of liquid fuel with an aggregate capacity of
at least 100
The added property coverage is a limited amount of
protection against damage to the insured’s property that is caused by the
escape of liquid fuel. It will reimburse the insured for damage to the
insured’s dwelling, land upon which the dwelling is located, and personal
property that is located within the residence premises. Coverage is also
provided for an insured’s out-of-pocket expense to prevent further damages and
to clean up or dispose of property damaged by liquid fuel.
Coverage is limited to the amount scheduled in this
endorsement. This limit is an aggregate over all locations for all damage
incurred in a single policy year.
The endorsement provides up to 5% of the property’s
insurance limits to cover damaged trees, shrubs, and plants, but no more than
$500 for any single tree, shrub, or plant (the individual limit if $250 under
form HO 00 08). This is a sublimit and the coverage applies only if loss
occurred to other covered real or personal property.
The policy’s Additional Living Expense is also expanded to
reimburse extra costs faced by an insured whose home becomes unlivable due to
being damaged by escaped liquid fuel. This is part of the aggregate limit shown
on the declarations.
Coverage is not extended to any damage to the fuel system,
or to any cost involving the demolition or removal of the fuel system. Further,
no coverage is granted for any loss of market value caused by a loss involving
lead or escaped fuel. Coverage is also barred for damage from fuel escaping
from watercraft or motor vehicle tanks.
The added liability (and third-party medical payments) coverage
is for protection against either "bodily injury" or "property
damage" liability that is caused by the escape of liquid fuel from a
"fuel system" or by lead contamination. The liability has to be a
result of conditions on the residence premises.
This form does not respond to damage due to ensuing fire or
explosion.
The limit of insurance that applies to escaped fuel and lead
liability is an aggregate limit. In other words, each occurrence which is paid
during the policy period reduces the amount of coverage available. Once the
limit is exhausted, no more coverage is available during the policy period.
The insurer is obligated to provide a legal defense against
claims or suits that involve allegations of injury or damage related to escaped
fuel and the presence of lead. That obligation ends with either a settlement or
by exhaustion of available limits.
This endorsement, at length, explains that the coverage
provided by the form is subject to all of the policy provisions found in the
base policy it is attached to; except for the replaced or added items contained
in the endorsement.
This form substitutes its own provisions for the following: