Special Hazard Loss Amount Sample Clauses

The Special Hazard Loss Amount clause defines the maximum financial exposure a party, typically a servicer or insurer, will bear in the event of losses caused by specific, extraordinary hazards such as natural disasters or other catastrophic events. This clause sets a cap on the amount payable for such losses, often calculated as a percentage of the outstanding principal balance of affected assets or loans. By establishing this limit, the clause protects the responsible party from unlimited liability and provides certainty to all parties regarding the extent of coverage for special hazard risks.