Common use of Full Replacement Values Clause in Contracts

Full Replacement Values. Borrower shall at all times maintain property insurance as defined in Section 8.1(a)(i) subject to the following: (a) Borrower shall annually determine a fair and reasonable replacement cost (total insurable value - TIV) for each asset insured and report said TIV to the insurance carrier or panel of insurers. The TIV will be comprised of the cost of the building (exclusive of costs of excavations, foundations, underground utilities and footings), contents, and a twelve (12) month BI value (business income). Said BI values shall be calculated annually using the most recent annual operating profit and loss statements by an independent third party; provided, that, in no event shall the limit available for the Property be less than an amount equal to the Full Replacement Cost of the Property plus eighteen (18) months of BI Values. (b) Wind/named storm limits shall be subject to review and approval by Lender based upon the schedule of locations and values sharing such limits and such other documentation required by Lender, including, but not limited to, PML reports for all assets insured in the portfolio. (c) Critical high hazard earthquake coverage (California & Pacific Northwest) replacement costs shall be calculated as referenced in Section 8.2(a) above. Borrower, through an independent third party qualified to perform such risk analysis using the most current RMS software, or its equivalent, will annually determine using an exceeding probability analysis a probable maximum loss (PML) estimate inclusive of loss amplification for all assets insured in the portfolio. The “limits” of high hazard earthquake coverage will be equal to or exceed the 500 year return period. All insured assets participate equally in the cost allocation and are equally insured. (d) Intentionally omitted.

Full Replacement Values. Borrower shall at all times maintain property insurance as defined in Section 8.1(a)(i) subject to the following: (a) Borrower shall annually determine a fair and reasonable replacement cost (total insurable value - TIV) for each asset insured and report said TIV to the insurance carrier or panel of insurers. The TIV will be comprised of the cost of the building (exclusive of costs of excavations, foundations, underground utilities and footings), contents, and a twelve (12) month BI value (business income). Said BI values shall be calculated annually using the most recent annual operating profit and loss statements by an independent third party; provided, that, in no event shall the limit available for the Property be less than an amount equal to the Full Replacement Cost of the Property plus eighteen (18) months of BI Values. (b) Wind/named storm limits shall be subject to review and approval by Lender based upon the schedule of locations and values sharing such limits and such other documentation required by Lender, including, but not limited to, PML reports for all assets insured in the portfolio. (c) Critical high hazard earthquake coverage (California & Pacific Northwest) replacement costs shall be calculated as referenced in Section 8.2(a) above. Borrower, through an independent third party qualified to perform such risk analysis using the most current RMS software, or its equivalent, will annually determine using an exceeding probability analysis a probable maximum loss (PML) estimate inclusive of loss amplification for all assets insured in the portfolio. The “limits” of high hazard earthquake coverage will be equal to or exceed the 500 year return period. All insured assets participate equally in the cost allocation and are equally insured. (d) Intentionally omitted.