Property Coverage

Various provisions in this Policy restrict coverage. Read the entire Policy carefully to determine rights, duties and what is and is not covered.

Throughout this Policy, the words You and Your refer to the Named Insured shown in the Declarations. The words We, Us and Our refer to the Company providing this insurance.

Other words and phrases that appear in bold have special meaning. Refer to Section E. Definitions.

  1. Coverage
    1. Insuring Agreement
      1. In return for the monthly premium paid for a Customer as reported in paragraph 10. Premium Reporting of section D. Conditions, We will pay those sums in excess of the Deductible for direct physical loss of or damage to Covered Property and caused by or resulting from a Covered Cause of Loss.

      2. That Covered Property must be, or reasonably assumed to have been, in your possession at the time of loss.

    2. Covered Property

      Covered Property means tangible property of a Customer.

    3. Property Not Covered

      Covered Property does not include:

      1. Any item which is specifically described and insured for a specified amount of insurance on any policy of insurance.

      2. Accounts, bills, bullion, currency, deeds, evidences of debt, money, notes or securities, manuscripts, plans or other valuable papers.

      3. Data residing on an electronic device.

      4. Furs or fur garments, jewelry, watches, precious stones, gold, platinum, silver, or other precious metals and alloys or fine arts.

      5. Manufactured tobacco, liquors, wines or other alcoholic beverages.

      6. Any commodity that requires refrigeration.

      7. Live animals.

      8. Contraband, or property in the course of illegal transportation or trade.

    4. Covered Causes Of Loss
      1. Covered Causes of Loss means direct physical loss or damage to Covered Property caused by or resulting from the following named causes:

        1. Fire or lightning.

        2. Windstorm or hail.

        3. Explosion or sonic boom.

        4. Strikes, riot or civil commotion.

        5. Aircraft, self-propelled missiles or spacecraft.

        6. Vehicles.

        7. Smoke.

        8. Falling objects provided the building is first damaged by such falling objects.

        9. Vandalism or malicious mischief.

        10. Earthquake or volcanic eruption.

        11. Weight of ice, snow or sleet.

        12. Collapse of buildings or any part thereof.

        13. Landslide.

        14. Accidental Discharge Or Overflow Of Water Or Steam

          This peril means accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance.

        15. Sudden And Accidental Tearing Apart, Cracking, Burning Or Bulging

          This peril means sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water.

        16. Sinkhole collapse.

        17. Holdup

          Holdup means the act of stealing the Customer's Covered Property from an employee of the Named Insured by violence or threat of violence against that employee.

        18. Burglary

          Burglary means the act of stealing the Customer's Covered Property by forcible and illegal entry into a warehouse of the Named Insured or storage container in the possession of the Named Insured. That illegal entry must be evidenced by visible signs made by tools, explosives, electricity or chemicals of such forcible entry upon the exterior of the storage container. The mere absence of a lock or padlock will not constitute visible signs of forced entry.

      2. Direct physical loss of or damage:

        1. To all Covered Property retrieved by the Customer from the Named Insured within a seven (7) day period; and

        2. Caused by or resulting from a substantially similar Covered Cause of Loss is considered a single loss resulting from the same occurrence.

    5. Additional Coverage For Breakage And Crushing
      1. A $50 deductible applies to this Additional Coverage.

      2. When Covered Property is discovered to be broken or crushed, We will pay up to $250 for that broken or crushed property. We will pay no more than $50 for any single item of Covered Property that is broken or crushed.

      3. When breakage or crushing of Covered Property results from the crushing of the container containing that property while that container is in the possession of the Named Insured, We will pay up to the limit of insurance for that broken or crushed Covered Property.

      4. This additional coverage does not apply to loss to light bulbs, fine arts, glassware, dinnerware, statuary, marble, bric-a-brac, ceramics, porcelains and similar fragile articles, unless breakage or crushing results from:

        1. A Covered Cause of Loss, or

        2. The crushing of the container containing this described property.

      5. Any claim for loss or damage to Covered Property provided by this Additional Coverage must be made by the Customer no more than seven (7) days after retrieving the Covered Property from the Named Insured.

    6. Deductible

      We will not pay for any loss or damage resulting from one (1) occurrence until the amount of the loss or damage exceeds the Deductible amount shown in the Customer's Certificate.

  2. Exclusions

    This insurance does not apply to:

    1. Breakage or crushing of art glass windows, glassware, dinnerware, statuary, marble, bric-a-brac, porcelains and similar fragile articles, except as provided in paragraph A.5. above.

    2. Loss to works of art, postage stamps or rare and current coin collections caused by:

      1. Fading, creasing, denting, scratching, tearing or thinning;

      2. Transfer of colors, inherent defect, dampness, extremes of temperature, or depreciation; or

      3. Being handled or worked on.

    3. The disappearance of individual stamps, coins or other articles from collections.

    4. Loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage.

      1. Governmental Action

        Seizure or destruction of property by order of governmental authority.

        But We will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this Policy.

      2. Nuclear Hazard

        Nuclear reaction or radiation, or radioactive contamination, however caused.

        But if nuclear reaction or radiation, or radioactive contamination results in fire, We will pay for the direct loss or damage caused by that fire if the fire would be covered under this Policy.

      3. War And Military Action
        1. War, including undeclared or civil war;

        2. Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or

        3. Insurrection, rebellion, revolution, usurped power, or action taken by a governmental authority in hindering or defending against any of these.

          Exclusions B.4.a. through B.4.c. above apply whether or not the loss event results in widespread damage or affects a substantial area.

    5. Loss or damage caused by or resulting from any of the following, whether or not You are legally liable:

      1. Delay, loss of use, loss of market or any other consequential loss.

      2. Dishonest or criminal act (including theft) committed by:

        1. You, any of Your partners, employees (including temporary employees and leased workers), officers, directors, trustees, or authorized representatives;
        2. A manager or a member if You are a limited liability company; or

        3. Anyone else with an interest in the property, or their employees (including temporary employees and leased workers) or authorized representatives; whether acting alone or in collusion with each other or with any other party.

          This exclusion applies whether or not an act occurs during Your normal hours of operation. This exclusion does not apply to acts of destruction by Your employees (including temporary employees and leased workers) or authorized representatives; but theft by Your employees (including temporary employees and leased workers) or authorized representatives is not covered.

      3. Pollution.

        Pollution means the discharge, dispersal, seepage, migration, release or escape of Pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the Covered Cause of Loss. But if loss or damage by any of the Covered Cause of Loss results, we will pay for the loss or damage caused by the Covered Cause of Loss. Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

      4. Voluntary parting with any property by You or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device or false pretense.

      5. Unauthorized instructions to transfer property to any person or to any place.

      6. Neglect to use all reasonable means to save and preserve property from further damage at and after the time of loss.

      7. Burglary by any person (except carriers for hire) to whom You entrust the property for any purpose, whether acting alone or in collusion with any other party.

        This exclusion applies whether or not an act occurs during your normal hours of operation.

    6. Loss or damage caused by or resulting from the following:

      1. Wear and tear, depreciation.

      2. Any quality in the property that causes it to damage or destroy itself, hidden or latent defect, gradual deterioration.

      3. Mechanical breakdown.

      4. Insects, vermin, rodents.

      5. Corrosion, rust, dampness, extremes of temperature.

      6. Mold, mildew, fungus, bacteria, wet or dry rot, atmospheric conditions, or decay.

    7. Expected Or Intended Injury

      We do not pay for loss or damage to Covered Property because of intentional acts of the Customer resulting in such loss or damage.
    8. Against loss or damage caused by or resulting from, contributed to or aggravated by:

      1. Flood, surface water, tides, tidal water or tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not.

      2. Water that backs up from a sewer or drain.

      3. Water under the ground surface pressing on or flowing, seeping or leaking through foundations, walls, basements, floors or paved surfaces or through doors, windows, or other such openings.

      4. Mudslide or mudflow.

    9. Perceived value based on the sentiments of a Customer.

  3. Limit Of Insurance

    The most We will pay for loss or damage in any one occurrence for all coverage provided by this Policy is the applicable Limit of Insurance shown in the Customer's certificate.

  4. Conditions
    1. Abandonment

      There can be no abandonment of any property to Us.

    2. Appraisal

      If We and the Customer disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:

      1. Pay its chosen appraiser; and

      2. Bear the other expenses of the appraisal and umpire equally.

        If there is an appraisal, We will still retain our right to deny the claim.

    3. Changes

      This Policy contains all the agreements concerning the insurance afforded. The Named Insured is authorized to make changes in the terms of this Policy with our consent. This Policy's terms can be amended or waived only by endorsement issued by Us and made a part of this Policy.

    4. Concealment, Misrepresentation Or Fraud

      Coverage provided a customer is void in any case of fraud, intentional concealment or misrepresentation of a material fact by the customer, at any time, concerning:

      1. This Policy;

      2. The Covered Property;

      3. The Customer's interest in the Covered Property; or

      4. A claim under this Policy.

    5. Duties In The Event Of Loss
      1. You or the Customer must see to it that We are notified promptly of any accident that may result in a claim. Notice should include:
        1. How, when and where the accident took place; and

        2. The names and addresses of any witnesses. Notice of an accident is not a notice of a claim.

      2. If a claim is made or Suit is brought against You, You must provide Us notice of the claim or Suit.

      3. You must:
        1. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or Suit;

        2. Authorize Us to obtain records and other information;

        3. Cooperate with Us in the investigation, settlement or defense of the claim or Suit; and

        4. Assist Us, upon our request, in the enforcement of any right against any person or organization that may be liable to You because of loss or damage to which this insurance may also apply.

      4. You will not, except at Your own cost, voluntarily make a payment, assume any obligation, or incur any expense without Our consent.
    6. Examination Of Your Books And Records We may examine and audit your books and records as they relate to this Policy at any time during the policy period and up to three (3) years afterward.
    7. Legal Action Against Us

      No one may bring a legal action against Us under this Policy unless:

      1. There has been full compliance with all the terms of this Policy; and

      2. The action is brought within two (2) years after You or the Customer first have knowledge of the direct loss or damage.

    8. Loss Payment
      1. We will give notice of our intentions within thirty (30) days after We receive the sworn proof of loss.
      2. We may adjust losses with the Customer. If so, the Customer is entitled to enforce this Policy's terms and conditions regarding loss or damage to Covered Property resulting from a Covered Cause of Loss, as if that Customer was the Named Insured.
      3. We may elect to defend You against suits arising from claims of Customer. We will do this at Our expense. Our duty to defend ends when the limit of insurance has been exhausted by payment of judgments or settlements. We have no duty to defend any suit or settle any claim for loss or damage not covered under this Policy.
      4. We will pay for covered loss or damage within thirty (30) days after We receive the sworn proof of loss if the Customer has complied with all the terms of this Policy and:
        1. We have reached agreement with the Customer on the amount of the loss; or
        2. An appraisal award has been made.

      5. We will not be liable for any part of a loss that has been paid or made good by others.
        1. Pair, Sets Or Part
          1. Pair Or Set

            In case of loss or damage to any part of a pair or set We may:

            1. Repair or replace any part to restore the pair or set to its value before the loss or damage; or

            2. Pay the difference between the value of the pair or set before and after the loss or damage.

          2. Parts

            In case of loss or damage to any part of Covered Property consisting of several parts when complete, We will only pay for the value of the lost or damaged part.

        2. Policy Period We cover loss or damage commencing during the Policy Period shown in the Declarations.
        3. Premium Reporting You agree to furnish Us on or before a mutually agreed upon date a report showing providing the following information for each Customer by:
          1. Name;

          2. Customer's certificate number;
          3. Number of storage containers and oversized items;

          4. Limit of Insurance; and

          5. Monthly premium.

            The form or structure of the report may be mutually agreed up by You and Us.

        4. Recovered Property

          If either You or a Customer recover any property after loss settlement, that party must give the other prompt notice. At the Customer's option, the property will be returned to the Customer. The Customer must then return to Us the amount We paid the Customer for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance.

        5. Reinstatement of Limits After Loss

          The Limit of Insurance will not be reduced by the payment of any claim.

        6. Transfer Of Your Rights And Duties Under This Policy Your and the Customer's rights and duties under this Policy may not be transferred without Our written consent except in the case of death of an individual Named Insured.

          If You or the Customer dies, Your and the Customer's rights and duties will be transferred to your or the Customer's legal representative but only while acting within the scope of duties as Your or the Customer's legal representative. Until that legal representative is appointed, anyone having proper temporary custody of Customer or the Customer's property will have those rights and duties but only with respect to that property.

        7. Termination
          1. Cancellation

            The Named Insured may cancel this Policy by notifying Us or the insurance producer in one of the following ways:

            1. Written notice by mail, fax or e-mail;

            2. Surrender of the Policy or binder; or

            3. Verbal notice.

              Upon receipt of such notice, We will cancel this Policy or any binder issued as evidence of coverage, effective on the later of the following:

              1. The date on which notice is received or the Policy or binder is surrendered; or

              2. The date of cancellation requested by You.

              We may cancel this Policy by mailing or delivering to the Named Insured and the Named Insured's agent or broker written notice of cancellation, including the actual reason for the cancellation, to the last mailing address known to Us, at least:
              1. Ten (10) days before the effective date of cancellation if We cancel for nonpayment of premium; or

              2. Forty-five (45) days before the effective date of cancellation if We cancel for any other reason.

          2. Monthly Expiration

            The coverage provided by this Policy for each Customer automatically expires on the first day of each month. However, that coverage will automatically be reinstated retroactively to the first day of each month if the monthly premium report prepared by You includes the required information for that Customer and a monthly premium is paid.

          3. Nonrenewal

            We may elect not to renew this Policy by mailing or delivering written notice of nonrenewal, stating the reasons for nonrenewal, to the Named Insured and the Named Insured's agent or broker, at their last mailing addresses known to Us. We will mail or deliver these notices at least forty-five (45) days before the:
            1. Expiration of the Policy; or

            2. Anniversary date of this Policy if this Policy has been written for a term of more than one (1) year. Otherwise, We will renew this Policy unless:

              1. The Named Insured fails to pay the renewal premium after We have expressed our willingness to renew, including a statement of the renewal premium, to the Named Insured and the Named Insured's insurance agent or broker, at least twenty (20) days before the expiration date; or

              2. You have procured other insurance prior to the expiration date of the Policy.
        8. Valuation

          The value of property will be the least of the following amounts:

          1. The actual cash value of that property;

          2. The cost of reasonably restoring that property to its condition immediately before loss or damage; or

          3. The cost of replacing that property with substantially identical property.

        In the event of loss or damage, the value of property will be determined as of the time of loss or damage.

  5. Definitions
    1. Customer means the person, partnership, corporation, or entity that:
      1. Authorizes possession of the Customer's tangible property by the Named Insured in accordance with a written agreement;

      2. Is shown on a Customer's Certificate; and

      3. Is reported to Us in accordance with Condition 10. Premium Reporting.

    2. Customer's Certificate means the document which shows We insure the Covered Property of a Customer for the specific limit of insurance shown.
    3. Suit means a civil proceeding in which damages because of property damage to which this insurance applies are alleged. Suit includes:
      1. An arbitration proceeding in which such damages are claimed and to which You must submit or submit with

        Our consent; or
      2. Any other alternative dispute resolution proceeding in which such damages are claimed and to which You submit with Our consent.