Common use of In Respect of Increase in Cost of Working Clause in Contracts

In Respect of Increase in Cost of Working. The additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in gross rents which but for that expenditure would have taken place during the indemnity period in consequence of the of the destruction or damage, but not exceeding the loss of gross rents thereby avoided; less any sum saved during the “indemnity period” in respect of costs as may cease or be reduced inconsequence of the destruction or damage by the perils insured against, provided that if the amount of insurance be less than the annual gross rents, the amount payable shall be proportionally reduced.