Common use of Insurance Coverage Requirements COVERAGE BUILDERS RISK Clause in Contracts

Insurance Coverage Requirements COVERAGE BUILDERS RISK. Required when performing Construction Work. Upon Substantial Completion, coverage may shift to property insurance Form: Builders All Risk (BAR) Completed Value Form. With the Department’s approval, Builder’s Risk and property insurance coverage may be provided in a combined Construction / All Risk program Named Insured: ▪ Developer and/or its Contractors of every tier as their interest may appear ▪ Department as its interest may appear Policy Term: 60 months, subject to renewal as necessary until Final Acceptance (or earlier shift to property insurance coverage at Substantial Completion) Policy Limit: Full replacement cost of the covered property, plus an allowance for expediting expenses/extra expense, professional fees, demolition and debris removal, without risk of co-insurance. Sublimits should be as few as possible. If sublimits are required by the insurer, minimum sublimits shall be as shown under Coverage Extensions/Conditions (below) unless otherwise agreed to by the Department. In lieu of full replacement cost, Developer may provide a limit not less than probable maximum loss, plus an allowance for expediting expense/extra expense, professional fees, demolition and debris removal, without risk of co-insurance penalty; provided the probable maximum loss amount is derived from and supported by an engineering risk assessment by a qualified, experienced firm approved by the Department. Coverage Extensions / Conditions: ▪ 72-hour occurrence period ▪ Civil authority or ingress/egress clauses ▪ Design error/faulty workmanship exclusion, except ensuing loss not otherwise excluded is covered (LEG 2/96) ▪ Collapse is covered ▪ Testing included ▪ Others as specified in Section 16.1.2 of Agreement ▪ Inland transit/ocean cargo $25 million (separate policy acceptable ▪ Offsite storage $25 million ▪ Expediting expenses/extra expense $25 million ▪ Demolition, increased cost of construction including undamaged property $25 million ▪ Debris Removal $25 million ▪ Professional fees $5 million Insured Perils: All risk of direct physical loss or damage to covered property, provided that perils of Seismic Event and Terrorism need not be insured Insured Property: All property including footings, foundations, and excavations costs, installation, testing and/or commissioning related to the Project and including materials, supplies, equipment, machinery and other property of a similar nature that will become a permanent part of the insured project and also including all scaffolding, formwork, falsework, shoring, fences and temporary buildings or structures incidental to the Project. Deductibles: Not more than $250,000 per occurrence Coinsurance: There shall be no coinsurance penalties or provisions. Valuation: Actual cost to repair or replace lost or damaged property including contractor’s profit and overhead. Insurer: Per Section 16.1.2.1 of the Agreement. Surplus lines insurers are acceptable, provided that that they meet the requirements of Section 16.1.2.1.

Insurance Coverage Requirements COVERAGE BUILDERS RISK. Required when performing Construction Work. Upon Substantial Completion, coverage may shift to property insurance Form: Builders All Risk (BAR) Completed Value Form. With the Department’s approval, Builder’s Risk and property insurance coverage may be provided in a combined Construction / All Risk program Named Insured: ▪ Developer and/or its Contractors of every tier as their interest may appear ▪ Department as its interest may appear Policy Term: 60 months, subject to renewal as necessary until Final Acceptance (or earlier shift to property insurance coverage at Substantial Completion) Policy Limit: Full replacement cost of the covered property, plus an allowance for expediting expenses/extra expense, professional fees, demolition and debris removal, without risk of co-insurance. Sublimits should be as few as possible. If sublimits are required by the insurer, minimum sublimits shall be as shown under Coverage Extensions/Conditions (below) unless otherwise agreed to by the Department. In lieu of full replacement cost, Developer may provide a limit not less than probable maximum loss, plus an allowance for expediting expense/extra expense, professional fees, demolition and debris removal, without risk of co-insurance penalty; provided the probable maximum loss amount is derived from and supported by an engineering risk assessment by a qualified, experienced firm approved by the Department. Coverage Extensions / Conditions: ▪ 72-hour occurrence period ▪ Civil authority or ingress/egress clauses ▪ Design error/faulty workmanship exclusion, except ensuing loss not otherwise excluded is covered (LEG 2/96) ▪ Collapse is covered ▪ Testing included ▪ Others as specified in Section 16.1.2 of Agreement ▪ Inland transit/ocean cargo $25 million (separate policy acceptable acceptable) ▪ Offsite storage $25 million ▪ Expediting expenses/extra expense $25 million ▪ Demolition, increased cost of construction including undamaged property $25 million ▪ Debris Removal $25 million ▪ Professional fees $5 million Insured Perils: All risk of direct physical loss or damage to covered property, provided that perils of Seismic Event and Terrorism need not be insured Insured Property: All property including footings, foundations, and excavations costs, installation, testing and/or commissioning related to the Project and including materials, supplies, equipment, machinery and other property of a similar nature that will become a permanent part of the insured project and also including all scaffolding, formwork, falsework, shoring, fences and temporary buildings or structures incidental to the Project. Project Deductibles: Not more than $250,000 per occurrence Coinsurance: There shall be no coinsurance penalties or provisions. Valuation: Actual cost to repair or replace lost or damaged property including contractor’s profit and overhead. overhead Insurer: Per Section 16.1.2.1 of the Agreement. Surplus lines insurers are acceptable, provided that that they meet the requirements of Section 16.1.2.1.

Insurance Coverage Requirements COVERAGE BUILDERS RISK. Required when performing Construction Work. Upon Substantial Completion, coverage may shift to property insurance Form: Builders All Risk (BAR) Completed Value Form. With the Department’s approval, Builder’s Risk and property insurance coverage may be provided in a combined Construction / All Risk program Named Insured: ▪ Developer and/or its Contractors of every tier as their interest may appear ▪ Department as its interest may appear Policy Term: 60 months, subject to renewal as necessary until Final Acceptance (or earlier shift to property insurance coverage at Substantial Completion) Policy Limit: Full replacement cost of the covered property, plus an allowance for expediting expenses/extra expense, professional fees, demolition and debris removal, without risk of co-insurance. Sublimits should be as few as possible. If sublimits are required by the insurer, minimum sublimits shall be as shown under Coverage Extensions/Conditions (below) unless otherwise agreed to by the Department. In lieu of full replacement cost, Developer may provide a limit not less than probable maximum loss, plus an allowance for expediting expense/extra expense, professional fees, demolition and debris removal, without risk of co-insurance penalty; provided the probable maximum loss amount is derived from and supported by an engineering risk assessment by a qualified, experienced firm approved by the Department. Coverage Extensions / Conditions: ▪ 72-hour occurrence period ▪ Civil authority or ingress/egress clauses ▪ Design error/faulty workmanship exclusion, except ensuing loss not otherwise excluded is covered (LEG 2/96) ▪ Collapse is covered ▪ Testing included ▪ Others as specified in Section 16.1.2 of Agreement ▪ Inland transit/ocean cargo $25 million (separate policy acceptable ▪ Offsite storage $25 million ▪ Expediting expenses/extra expense $25 million ▪ Demolition, increased cost of construction including undamaged property $25 million ▪ Debris Removal $25 million ▪ Professional fees $5 million Insured Perils: All risk of direct physical loss or damage to covered property, provided that perils of Seismic Event and Terrorism need not be insured Insured Property: All property including footings, foundations, and excavations costs, installation, testing and/or commissioning related to the Project and including materials, supplies, equipment, machinery and other property of a similar nature that will become a permanent part of the insured project and also including all scaffolding, formwork, falsework, shoring, fences and temporary buildings or structures incidental to the Project. Deductibles: Not more than $250,000 per occurrence Coinsurance: There shall be no coinsurance penalties or provisions. Valuation: Actual cost to repair or replace lost or damaged property including contractor’s profit and overhead. Insurer: Per Section 16.1.2.1 of the Agreement. Surplus lines insurers are acceptable, provided that that they meet the requirements of Section 16.1.2.1.