Common use of RENTAL REIMBURSEMENT Clause in Contracts

RENTAL REIMBURSEMENT. The Insurer agrees to reimburse the Insured for expenses actually incurred for the rental of equipment to replace equipment insured by this policy provided it is necessary that such equipment be withdrawn from normal use as a result of loss or damage from a peril insured hereunder. The Insurer will pay for expenses so incurred whether the equipment be rented with or without an operator. The Insurer’s liability for rental reimbursement is limited to expenses actually incurred commencing 72 hours after the date of loss or damage to the insured equipment, and shall continue, regardless of the expiration of the policy period, to the date which would be required to repair the equipment so damaged. In no event however, shall the Insurer’s liability exceed twenty five hundred dollars ($2,500) per day, nor ten thousand dollars ($10,000) per policy year, regardless of the number of items affected, unless higher limits on indicated on the “Declarations Page”. The rental reimbursement coverage only applies to equipment which is similar is type, capacity, and purpose to that for which it is a replacement. It is a requirement of this Form that the Insured shall use due diligence and dispatch to repair or replace such part of the insured equipment as has been destroyed or damaged. There shall be no claim hereunder if there be surplus or reserve equipment which may be owned, controlled, or used by the Insured that can be used for continuing or resuming the Insured's operations, nor for rental of equipment other than the type and purpose equivalent to the replaced equipment.