Underinsured Loss Clause Samples
Underinsured Loss. If there is a casualty affecting all or any portion of the Property that results in a difference between the reasonably estimated cost of repairing such damage and the insurance proceeds received or payable in respect thereto (net of any applicable deductible) (such difference being referred to herein as an “Underinsured Loss”), Seller shall have the right, in the exercise of its sole discretion and by giving written notice to Purchaser within five (5) Business Days after the determination that an Underinsured Loss exists, to elect (a) to give Purchaser a credit against the Purchase Price at Closing in an amount equal to the Underinsured Loss, this Agreement shall continue in full force and effect with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Property, or (b) not to give such credit at Closing. If Seller elects not to give such credit at Closing, Purchaser shall have the right, by written notice to Seller given within five (5) Business Days after Purchaser’s receipt of Seller’s election, either (y) to terminate this Agreement, whereupon the Deposit shall be promptly returned to Purchaser, and thereafter neither party will have any further rights or obligations hereunder, except for any obligations that expressly survive termination, or (z) to proceed to Closing in accordance with the terms and conditions of this Agreement without any reduction in the Purchase Price. If Purchaser fails to notify Seller within such five (5) Business Day period of Purchaser’s election to terminate this Agreement, then Purchaser shall be deemed to have elected not to terminate this Agreement, and Purchaser and Seller shall proceed to Closing in accordance with the terms and conditions of this Agreement.
Underinsured Loss. If the proceeds of the casualty insurance required to be maintained pursuant to Section 18 of this Lease are not sufficient to pay the cost of repair of Damage to the Demised Premises for any reason other than because the Damage was not an Insured Loss (e.g. the application of deductibles or co-insurance requirements, and/or the inadequacy of coverage amount) or Tenant’s failure to maintain the insurance required to be maintained pursuant to Section 18 of this Lease, then Tenant shall be responsible for, and shall pay to Landlord as Additional Rent, the amount by which the cost to repair the Damage exceeds the available insurance proceeds and this Lease shall continue in full force and effect; provided, however, that Tenant’s responsibility under this Section 16.2.3 shall not exceed an amount equal to the then applicable Annual Rent, although such payment shall not be in lieu thereof. In such event this Lease shall continue in full force and effect, conditioned upon Tenant paying the amount required under this Section 16.2.3, and, subject to Section 16.2.1, above, Landlord shall proceed to make such repairs as soon as reasonably practicable, but in no event later than the Restoration Completion Date.