Common use of Owner Insurance Clause in Contracts

Owner Insurance. During the Term, Owner shall obtain and maintain, with insurers of recognized responsibility authorized to do business in the state where the Site is located and assigned an A.M. Best rating of no less than A-/X, All Risk Property Damage/Machinery Breakdown Insurance, in an amount sufficient to cover one hundred percent (100%) of the replacement cost of the Project. This policy shall provide an express waiver of subrogation in favor of O&M Contractor, Subcontractors, Seller and the insurers of all of them. Coverage shall be written on an “All Risk” basis including flood and earthquake coverage, including mechanical and electrical breakdown insurance covering resulting damage with respect to consequence of design, workmanship or material defect (LEG 2/96 or better), the perils of flood, earthquake, named windstorm, strike, sabotage, riot and civil commotion, vandalism and malicious mischief, subject to terms that are consistent with current industry practice insuring all real and personal property of O&M Contractor whether at a fixed (including non-owned location for off-site repair or refurbishment), off- site storage or a warehouse location or while in the course of inland or ocean transit (as the case may be), for an amount of not less than the full replacement cost value of the property and equipment at each location without the presence of coinsurance. The policy shall contain a Notice of Cancellation provision of no less than sixty (60) days and business interruption coverage following all perils. Sub-limits are permitted with respect to the following perils: (a) debris removal, 5% of the limit; (b) inland transit in such amounts to satisfy replacement cost values of the shipment; (c) offsite storage in such amounts to satisfy replacement cost values of the largest property storage area; (d) CAT perils including Wind, Named Windstorm, Flood and Earthquake; (e) such other coverages acceptable to O&M Contractor (in consultation with the insurance consultant) that are customarily sub-limited and/or aggregated in reasonable amounts consistent with current industry practice with respect to similar risks and acceptable to O&M Contractor, including extra expense, expediting expense and ordinance or law coverage including the increased cost of construction to comply with the enforcement of any law that regulates the construction or repair of damaged property including the cost to demolish undamaged portions of the Project. Such policy shall include (A) an automatic reinstatement of limits following each loss (except for the perils of earthquake, pollution cleanup, flood and named windstorm) and

Owner Insurance. During the Term, Owner shall obtain and maintain, with insurers of recognized responsibility authorized to do business in the state where the Site is located and assigned an A.M. Best rating of no less than A-/X, All Risk Property Damage/Machinery Breakdown Insurance, in an amount sufficient to cover one hundred percent (100%) of the replacement cost of the Project. This policy shall provide an express waiver of subrogation in favor of O&M Contractor, Subcontractors, Seller and the insurers of all of them. Coverage shall be written on an “All Risk” basis including flood and earthquake coverage, including mechanical and electrical breakdown insurance covering resulting damage with respect to consequence of design, workmanship or material defect (LEG 2/96 or better), the perils of flood, earthquake, named windstorm, strike, sabotage, riot and civil commotion, vandalism and malicious mischief, subject to terms that are consistent with current industry practice insuring all real and personal property of O&M Contractor whether at a fixed (including non-owned location for off-site repair or refurbishment), off- site storage or a warehouse location or while in the course of inland or ocean transit (as the case may be), for an amount of not less than the full replacement cost value of the property and equipment at each location without the presence of coinsurance. The policy shall contain a Notice of Cancellation provision of no less than sixty (60) days and business interruption coverage following all perils. Sub-limits are permitted with respect to the following perils: (a) debris removal, 5% of the limit; (b) inland transit in such amounts to satisfy replacement cost values of the shipment; (c) offsite storage in such amounts to satisfy replacement cost values of the largest property storage area; (d) CAT perils including Wind, Named Windstorm, Flood and Earthquake; (e) such other coverages acceptable to O&M Contractor (in consultation with the insurance consultant) that are customarily sub-limited and/or aggregated in reasonable amounts consistent with current industry practice with respect to similar risks and acceptable to O&M Contractor, including extra expense, expediting expense and ordinance or law coverage including the increased cost of construction to comply with the enforcement of any law that regulates the construction or repair of damaged property including the cost to demolish undamaged portions of the Project. Such policy shall include (A) an automatic reinstatement of limits following each loss (except for the perils of earthquake, pollution cleanup, flood and named windstorm) and