Common use of Average Clause in Contracts

Average. If the property covered is, at the commencement of any loss or damage to such property by any peril covered against, collectively of greater value than the sum covered thereon, then the participant shall be considered as being their own company for the difference and shall bear a rateable share of the loss accordingly. Each item of the statement of cover covering such property shall be separately subject to this condition.

Average. If the property covered is, at the commencement of any loss or damage to such property by any peril covered against, collectively of greater value than the sum covered thereon, then the participant shall be considered as being their own company for the difference and shall bear a rateable share of the loss accordingly. Each item of the statement of cover covering such property Every item, if more than one, shall be separately subject to this condition. This condition shall apply to the individual units excluding the owners interest in the land and not to the property as a whole.