Property Investors Protection Plan policy document (PDF)

SECTION 2 Property Investors Protection Plan PolicySection 218Rental IncomeThe CoverIn the event of the Property Insured underSection 1 (hereinafter called the Premises)being accidentally lost destroyed or damagedand the Business carried on by the Insured atthe Premises stated in the Schedule be inconsequence thereof interrupted or interferedwith the Company will (subject to the termsdefinitions exclusions and conditions of thePolicy) pay the Insured the amount of lossarising as a result in accordance with thefollowing provisionsIndemnityThe insurance is limited to loss due to (a)loss of Rent Receivable and (b) increase incost of working and the amount payable asindemnity thereunder shall bea) the amount by which the Rent Receivableduring the Indemnity Period shall inconsequence of the DAMAGE fall short ofthe Standard Rent Receivableb) the additional expenditure necessarily andreasonably incurred including the cost ofre-letting the Premises (including legalfees) for the sole purpose of avoiding ordiminishing the loss of Rent Receivablewhich but for that expenditure would havetaken place during the Indemnity Periodin consequence of the DAMAGE but notexceeding the amount of the reduction inRent Receivable thereby avoidedplus5% sum insured on Rent Receivable forthe Premises (but not more than £25,000)less any sum saved during the IndemnityPeriod in respect of such charges orexpenses of the Business as may cease or bereduced in the consequence of the DAMAGEprovided thati) payment shall have been made or liabilityadmitted under Section 1 of this Policyii) if the Sum Insured by this Section be lessthan 300% of the Annual Rent Receivablethe amount payable shall beproportionately reducedDefinitionsIndemnity PeriodThe period beginning with the occurrence ofthe DAMAGE and ending not later than thenumber of months thereafter stated in theSchedule during which the results of theBusiness shall be affected in consequence ofthe DAMAGERent ReceivableThe money paid or payable to the Insured fortenancies and other charges and for servicesrendered in the course of the Business atthe PremisesAnnual Rent ReceivableThe Rent Receivable during the twelve monthsimmediately before the date of the DAMAGEStandard Rent ReceivableThe Rent Receivable during the period in thetwelve months immediately before the dateof the DAMAGE which corresponds with theIndemnity PeriodUnder the Definitions Annual Rent Receivableand Standard Rent Receivable adjustmentsshall be made as may be necessary toprovide for the trend of the Business and forvariations in or special circumstancesaffecting the Business either before or afterthe DAMAGE or which would have affectedthe Business had the DAMAGE not occurredso that the figures thus adjusted shallrepresent as nearly as may be reasonablypracticable the results which but for theDAMAGE would have been obtained duringthe relative period after the DAMAGELimit of LiabilityThe maximum payable during any Period ofInsurance under this Section is the SumInsured shown in the Schedule adjusted inaccordance with the Inflation ProtectionClause if applicable plus any payment madeunder the Rent Review Extension