Limited Coverage For Loss By Wet Rot, Dry Rot, Bacteria, Fungi, or ...

AAIS 

This endorsement changes 

ML 4902 08 02 

the policy 

Page 1 of 7 -- PLEASE READ THIS CAREFULLY -- 

LIMITED COVERAGE FOR LOSS BY WET ROT, DRY ROT, 

BACTERIA, FUNGI, OR PROTISTS 

1. The following exclusion is added under item 

1. of Exclusions That Apply To Property 

Coverages: 

Wet Rot, Dry Rot, Bacteria, Fungi, or 

Protists -- "We" do not pay for loss that 

results from or consists of: 

1) wet rot; dry rot; a bacterium; a fungus, 

including but not limited to mildew and 

mold; or a protist, including but not 

limited to algae and slime mold; or 

2) a chemical, matter, or a compound 

produced or released by wet rot, dry rot, 

a bacterium, a fungus, or a protist, 

including but not limited to toxins, spores, 

fragments, and metabolites such as 

microbial volatile organic compounds; 

except as provided under Limited Wet Rot, 

Dry Rot, Bacteria, Fungi, and Protists 

Property Coverage. 

This exclusion applies even if the wet rot, dry 

rot, bacterium, fungus, or protist results from 

or is aggravated by a loss that may be 

covered by this policy, including but not 

limited to loss caused by the accidental 

discharge of liquids or steam from a 

plumbing, heating, air-conditioning, or 

automatic fire protective sprinkling system; 

water heater; or domestic appliance. 

However, this exclusion does not apply to 

wet rot, dry rot, a bacterium, a fungus, or a 

protist that results from fire or lightning. 

2. Under Exclusions That Apply To Property 

Coverages, Wear and Tear is deleted and 

replaced by the following: 

Wear and Tear -- "We" do not pay for loss 

that results from wear and tear, marring, 

deterioration, inherent vice, latent defect, 

mechanical breakdown, rust, corrosion, 

contamination, or smog. 

3. The following provisions are added under 

Exclusions That Apply To Coverages L and 

M: 

a. This policy does not apply to: 

1) actual or alleged "bodily injury" or 

"property damage" that results 

directly or indirectly from ingestion of, 

inhalation of, physical contact with, 

or exposure to: 

a) wet rot; dry rot; a bacterium; a 

fungus, including but not limited 

to mildew and mold; or a protist, 

including but not limited to algae 

and slime mold; or 

b) a chemical, matter, or a 

compound produced or released 

by wet rot, dry rot, a bacterium, a 

fungus, or a protist, including but 

not limited to toxins, spores, 

fragments, and metabolites such 

as microbial volatile organic 

compounds; 

except as provided under Limited 

Wet Rot, Dry Rot, Bacteria, Fungi, 

and Protists Liability Coverage; 

2) any loss, cost, or expense arising out 

of any request, demand, or order that 

any "insured" or others test for, 

monitor, clean up, remove, contain, 

treat, detoxify, neutralize, or in any 

way respond to or assess the effects 

of: 





and slime mold; or

AAIS 

ML 4902 08 02 

Page 2 of 7 








compounds; or 

3) any loss, cost, or expense arising out 

of any claim or suit by or on behalf of 

any governmental authority relating 

to testing for, monitoring, cleaning 

up, removing, containing, treating, 

detoxifying, neutralizing, or in any 

way responding to or assessing the 

effects of: 





and slime mold; or 








compounds. 

b. However, exclusion 3.a.1) above does 

not apply to: 

1) "bodily injury" that results from a 

fungus cultivated or harvested for 

human consumption or a food-borne 

or beverage-borne bacterium that 

causes illness commonly known as 

food poisoning (Food-borne or 

beverage-borne bacteria that cause 

illness commonly known as food 

poisoning include but are not limited 

to Staphylococcus aureus, 

Salmonella, Clostridium perfringens, 

Campylobacter, Listeria 

monocytogenes, Vibro 

parahaemolyticus, Bacillus cereus, 

and Escherichia coli.); or 

2) "bodily injury" to a "farm employee" 

to the extent that coverage for "bodily 

injury" to "farm employees" is 

provided by this policy. 

4. (Applies only when Coverage L has been 

extended to pay for damages for which an 

"insured" is liable by law because of 

"personal injury".) The following is added to 

the definition of "personal injury": 

"Personal injury" does not mean false arrest, 

false imprisonment, wrongful eviction, 

wrongful entry, wrongful detention, malicious 

prosecution, misrepresentation, libel, 

slander, defamation of character, or invasion 

of privacy that results directly or indirectly 

from ingestion of, inhalation of, physical 

contact with, or exposure to: 

1) wet rot; dry rot; a bacterium; a fungus, 

including but not limited to mildew and 

mold; or a protist, including but not 

limited to algae and slime mold; or 

2) a chemical, matter, or a compound 

produced or released by wet rot, dry rot, 

a bacterium, a fungus, or a protist, 

including but not limited to toxins, spores, 

fragments, and metabolites such as 

microbial volatile organic compounds. 

5. Limited Wet Rot, Dry Rot, Bacteria, Fungi, 

and Protists Coverages 

This policy is extended to provide the 

following coverages. These coverages are 

subject to all of the "terms" of the policy, 

except as amended by this endorsement. 

a. Limited Wet Rot, Dry Rot, Bacteria, 

Fungi, and Protists Property Coverage 

-- The coverage set forth under item 

5.a.1) below and the limitations set forth 

under items 5.a.4) and 5.a.5) below do 

not apply to wet rot, dry rot, a bacterium, 

a fungus, or a protist that results from fire 

or lightning.

AAIS 

ML 4902 08 02 

Page 3 of 7 

1) Subject to the Wet Rot, Dry Rot, 

Bacteria, Fungi, and Protists 

Aggregate Property Limit, "we" pay 

for: 

a) direct physical loss to property 

covered under Coverages A, B, 

or C, if provided by this policy, or 

the Incidental Property Coverage 

for Tenant's Improvements, if 

provided by this policy, caused 

by or consisting of wet rot; dry 

rot; a bacterium; a fungus, 

including mildew and mold; or a 

protist when the presence of the 

wet rot, dry rot, bacterium, 

fungus, or protist is the direct 

result of a peril insured against 

that applies to the damaged 

property and all reasonable 

means were used to save and 

preserve the property at and 

after the time of loss; and 

b) an increased cost, an expense, 

loss of income, or loss of 

earnings, if covered by a form, a 

coverage part, or an 

endorsement attached to this 

policy, resulting from wet rot; dry 

rot; a bacterium; a fungus, 

including mildew and mold; or a 

protist when the presence of the 

wet rot, dry rot, bacterium, 

fungus, or protist is the direct 

result of a peril insured against 

that applies to property for which 

the coverage for increased cost, 

expenses, loss of income, or 

loss of earnings is provided and 

all reasonable means were used 

to save and preserve the 

property at and after the time of 

loss. 

This coverage does not increase the 

"limits" shown for the property, 

increased cost, expense, loss of 

income, or loss of earnings covered. 

2) The coverage set forth under item 

5.a.1) above includes: 

a) direct physical loss caused by or 

consisting of a chemical, matter, 

or a compound produced or 

released by such wet rot, dry rot, 

bacterium, fungus, or protist; and 

b) the reasonable cost or expense 

to: 

(1) clean up, remove, contain, 

treat, detoxify, neutralize, 

respond to, monitor, or 

assess the effects of the wet 

rot, dry rot, bacterium, 

fungus, or protist or a 

chemical, matter, or a 

compound produced or 

released by it; 

(2) remove and replace those 

parts of covered property 

necessary to repair or 

replace the damage or to 

clean up, remove, contain, 



assess the effects of the wet 

rot, dry rot, bacterium, 

fungus, or protist or a 



released by it; and 

(3) test for wet rot; dry rot; a 

bacterium; a fungus, 

including mildew and mold; 

or a protist that is hidden 

from view or a chemical, 

matter, or a compound 

produced or released by it. 

"We" pay for such testing 

only to the extent that there 

is reason to believe that wet 

rot, dry rot, a bacterium, a 

fungus, a protist, or a 



released by it is present.

AAIS 

ML 4902 08 02 

Page 4 of 7 

3) With respect to Limited Wet Rot, Dry 

Rot, Bacteria, Fungi, and Protists 

Property Coverage, the following is 

added to the first paragraph under 

Incidental Property Coverages: 

However, except for Emergency 

Removal and, if provided by this 

policy, Collapse, any coverage 

provided under these Incidental 

Property Coverages for loss caused 

by or consisting of: 

a) wet rot; 

b) dry rot; 

c) a bacterium; 

d) a fungus, including but not 

limited to mildew and mold; 

e) a protist; or 

f) a chemical, matter, or a 



fungus, or a protist; 

is subject to the Wet Rot, Dry Rot, 


Aggregate Property Limit. 



Property Coverage, the "terms" of 

each coverage part or endorsement 

attached to this policy that covers 

direct physical loss, increased cost, 

expense, loss of income, or loss of 

earnings are amended to include the 

following. 

Any coverage provided under this 

coverage part or endorsement for 

loss caused by or consisting of: 

a) wet rot; 

b) dry rot; 









is subject to the Wet Rot, Dry Rot, 


Aggregate Property Limit. 



Property Coverage, the following is 

added under How Much We Pay For 

Loss Or Claim, Property Coverages: 


and Protists Aggregate Property 

Limit -- The Wet Rot, Dry Rot, 


Aggregate Property Limit is the most 

"we" pay for the total of: 

a) all loss covered under Principal 

Property Coverages A, B, C, and 

D; loss covered under all 

Incidental Property Coverages 

except Emergency Removal and, 

if provided by this policy, 

Collapse; and all direct physical 

loss, increased costs, expenses, 

loss of income, and loss of 

earnings covered by coverage 

part or endorsement attached to 

this policy, including all cost or 

expense to: 

(1) clean up, remove, contain, 



assess the effects of wet rot, 

dry rot, a bacterium, a 

fungus, or a protist or a 



released by it; and 

(2) remove and replace parts of 

covered property necessary 

to repair or replace damage 

or to clean up, remove, 

contain, treat, detoxify, 

neutralize, respond to, 

monitor, or assess the 

effects of the wet rot, dry rot, 

bacterium, fungus, or protist 

or a chemical, matter, or a 


released by it; and

AAIS 

ML 4902 08 02 

Page 5 of 7 

b) all cost or expense to test for wet 

rot, dry rot, a bacterium, a 

fungus, or a protist or a 

chemical, matter, or a compound 

produced or released by it; 

regardless of the number of 

occurrences, claims made, 

assessments made, or locations 

insured under this policy. 

This "limit" is the most that "we" pay 

for each consecutive annual period 

and for any remaining period of less 

than 12 months, beginning with the 

inception date of this policy as shown 

on the "declarations". If, however, 

the policy period is extended for an 

additional period of less than 12 

months, this additional period will be 

considered part of the preceding 

period for the purpose of determining 

the "limit". 

The Wet Rot, Dry Rot, Bacteria, 

Fungi, and Protists Aggregate 

Property Limit is $10,000 unless a 

higher Wet Rot, Dry Rot, Bacteria, 


Property Limit is shown on the 

"declarations". 



Property Coverage, Restoration of 

Limits under How Much We Pay For 

Loss Or Claim does not apply. 

b. Limited Wet Rot, Dry Rot, Bacteria, 

Fungi, and Protists Liability Coverage 

1) This coverage does not apply to: 

a) "bodily injury" that results from a 

fungus cultivated or harvested 

for human consumption or a 

food-borne or beverage-borne 

bacterium that causes illness 

commonly known as food 

poisoning (Food-borne or 

beverage-borne bacteria that 

cause illness commonly known 

as food poisoning include but are 

not limited to Staphylococcus 

aureus, Salmonella, Clostridium 

perfringens, Campylobacter, 

Listeria monocytogenes, Vibro 

parahaemolyticus, Bacillus 

cereus, and Escherichia coli.); or 

b) "bodily injury" to a "farm 

employee" to the extent that 

coverage for "bodily injury" to 

"farm employees" is provided by 

this policy. 

2) Subject to the Coverage L Wet Rot, 


Limit and the Wet Rot, Dry Rot, 


Aggregate Liability Limit, "we" pay for 

the "bodily injury" or "property 

damage" that results from ingestion 

of, inhalation of, physical contact 

with, or exposure to: 

a) wet rot; 

b) dry rot; 








fungus, or a protist.

AAIS 

ML 4902 08 02 

Page 6 of 7 

The Coverage L Wet Rot, Dry Rot, 

Bacteria, Fungi, and Protists Limit is 

$50,000 unless a higher Coverage L 


and Protists Limit is shown on the 

"declarations". Subject to the Wet 

Rot, Dry Rot, Bacteria, Fungi, and 

Protists Aggregate Liability Limit, this 

"limit" is the most "we" pay per 

"occurrence" under Coverage L for 

Limited Wet Rot, Dry Rot, Bacteria, 

Fungi, and Protists Liability 

Coverage. 



Liability Coverage, the following is 

added to the first paragraph under 

Incidental Liability Coverages: 

Except for Claims and Defense Cost 

and First Aid Expense, any coverage 

provided under these Incidental 

Liability Coverages for "bodily injury", 

"property damage", damages, or 

legal fees arising from ingestion of, 

inhalation of, physical contact with, 

or exposure to: 

a) wet rot; 

b) dry rot; 









is subject to the Coverage L Wet 


Protists Limit and the Wet Rot, Dry 


Aggregate Liability Limit. 



Liability Coverage, under How Much 

We Pay For Loss Or Claim, 

Coverage L -- Personal Liability is 

deleted and replaced by the 

following: 

Coverage L -- Personal Liability -- 

Subject to the Wet Rot, Dry Rot, 


Aggregate Liability Limit, the 

Coverage L Wet Rot, Dry Rot, 

Bacteria, Fungi, and Protists Limit is 

the most "we" pay for loss for each 

"occurrence" covered under Limited 


and Protists Liability Coverage. This 

applies regardless of the number of: 

a) persons insured under this 

policy; 

b) parties who sustain injury or 

damage; or 

c) claims made or suits brought. 



Liability Coverage, under How Much 

We Pay For Loss Or Claim, 

Coverage M -- Medical Payments To 

Others is deleted and replaced by 

the following: 

Subject to the Wet Rot, Dry Rot, 


Aggregate Liability Limit, the "limit" 

shown on the "declarations" per 

person for Coverage M is the most 

"we" pay for all medical expenses 

payable for "bodily injury" to one 

person as the result of one accident 

covered under Limited Wet Rot, Dry 


Liability Coverage. 

Any per accident "limit" shown on the 

"declarations" for Coverage M does 

not apply with respect to Limited Wet 


Protists Liability Coverage. 

The payment of a claim under 

Coverage M does not mean "we" 

admit "we" are liable under Coverage 

L.

AAIS 

ML 4902 08 02 

Page 7 of 7 



Liability Coverage, the following is 

added under How Much We Pay For 

Loss Or Claim: 


and Protists Aggregate Liability 

Limit -- Regardless of the number of: 

a) "occurrences"; 

b) "insureds"; 

c) claims made or suits brought; 

d) persons injured; or 

e) assessments made; 

"our" total "limit" for Limited Wet Rot, 


Liability Coverage in any one policy 

year will not exceed the Wet Rot, Dry 


Aggregate Liability Limit. However, 

this "limit" does not apply to 

coverage provided under Claims and 

Defense Cost and First Aid Expense 

under the Incidental Liability 

Coverages. 



Liability Limit is the most that "we" 

pay for each consecutive annual 

period and for any remaining period 

of less than 12 months, beginning 

with the inception date of this policy 

as shown on the "declarations". If, 

however, the policy period is 

extended for an additional period of 

less than 12 months, this additional 

period will be considered part of the 

preceding period for the purpose of 

determining the "limit". 



Liability Limit is $50,000 unless a 

higher Wet Rot, Dry Rot, Bacteria, 


Liability Limit is shown on the 

"declarations". 

7) With respect to this Limited Wet Rot, 


Liability Coverage, Restoration of 

Limits under How Much We Pay For 

Loss Or Claim does not apply. 

6. All other "terms" of the policy apply. 

ML 4902 08 02 

Copyright, American Association of Insurance Services, 2002

Limited Coverage For Loss By Wet Rot, Dry Rot, Bacteria, Fungi, or ...

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