Common use of Environmental, Safety and Efficiency Improvements Clause in Contracts

Environmental, Safety and Efficiency Improvements. If “insured equipment” requires replacement due to a “breakdown", the Insurer will pay the Insured’s additional cost to replace with equipment that the Insurer agrees is better for the environment, safer for people or more energy efficient than the equipment being replaced, subject to the following conditions: (a) the Insurer will not pay more than 125% of what the cost would have been to replace with like kind and quality; (b) the Insurer will not pay to increase the size or capacity of the equipment (c) this provision only applies to direct physical loss or damage; (d) this provision does not increase any of the applicable amounts of insurance; (e) this provision does not apply to any property valued on an “actual cash value” basis; and (f) this provision does not apply to the replacement of component parts.

Environmental, Safety and Efficiency Improvements. If “insured equipment” requires replacement due to a “breakdown", the Insurer will pay the Insured’s additional cost to replace repla ce with equipment that the Insurer agrees is better for the environment, safer for people or more energy efficient than the equipment being replaced, subject to the following conditions: (a) the Insurer will not pay more than 125% of what the cost would have been to replace with like kind and quality; (b) the Insurer will not pay to increase the size or capacity of the equipment (c) this provision only applies to direct physical loss or damage; (d) this provision does not increase any of the applicable amounts of insurance; (e) this provision does not apply to any property valued on an “actual cash value” basis; and (f) this provision does not apply to the replacement of component parts.