Hydrometeorological Perils Endorsement
Clause 1 Coverage Clause 2 Exclusions that can be covered by express agreement Clause 3 General Exclusions Clause 4 Deductible Clause 5 Insured participation in the loss Clause 6 Event Clause 7 Early Termination of Coverage Clause 8 Glossary n.b. This is a free style translation from the registered text. Conditions in Spanish will remain in case of controversy or doubt.
Grupos de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Mayo 2012
PĂĄgina 1 de 16
Hydrometeorological Perils Endorsement
Clause 1 Coverage Subject to the general and special conditions of the Policy to which this endorsement is attached, and with limited to the amount stablished in the sum insured, the goods specified in the policy are covered against loss or material damage directly caused by avalanches, hail, frost, hurricane, flood, flood coming from rain, heavy sea or tidal wave, surge, snow storm, and tempest winds, as defined below: For the purpose of this Policy the following definitions will apply:
a) Avalanches Any kind of slip caused by any hydrometeorological event. b) Hail
Atmospheric water precipitation falling solid as hard and compact crystals of ice. Under this concept, damages caused by blockage in the strainers of the network plumbing and drainage systems within the insured premises, and damages coming from hail accumulations in the rainwater plumbing, are covered. c) Frost Unexpected drop of temperature at or below the freezing point of water. d) Hurricane Great magnitude water and air flow, moving in circular paths around a center of low pressure over marine or terrestrial surface, with wind speeds equal to or greater than 118 kilometers per hour, which is identified as such by the National Weather Service. e) Flood The temporary and accidental water coverage of the ground over the natural level of the terrain, as the result of deviation, overflow, walls or confinement elements breakage of rivers, canals, lakes, dams, ponds and/or other water deposits or water streams, natural or artificial, generated outside the premises of the insured. f) Flood coming from rain The temporary and accidental water coverage of the ground over the natural level of the terrain, as a result of the unusual and rapid accumulation or water displacement caused by rain that fulfill with the fact that the insured property is located within a flooded or affected zone that has been covering at least one hectare. g) Surge Sea disturbance manifested as an elevation of its level due to a depression or weather disturbance that combines a decrease in atmospheric pressure and shearing force on the sea surface produced by the wind. Grupo de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Agosto 2012
PĂĄgina 2 de 16
h) Sea or tidal wave strike Alteration of the sea by the violent agitation of the water by any sudden and unforeseen cause, including tsunami, which raises its level and spread to the shores leading to flooding. i) Snow storm Precipitation of ice crystals in the form of flakes. j) Tempest winds Winds reaching the town or region in at least as a tropical depression, tornado or Beaufort scale grade 8 (62 kph), according to the National Weather Service records or recognized by this organization. The applicable coverage will be the one that originates immediate direct damage to the insured properties, regardless of the phenomenon that provokes it.
Clause 2 Exclusions that can be covered by express agreement The goods listed below are excluded from the coverage, and may only be insured, by express agreement between the Insured and the Company, setting separately sums insured as limits or sub-limits, and charging the additional premium required. The Company will give the Insured written record of these coverages. 1. Finished buildings that lack all or part of roof, walls, doors, or windows, provided that such buildings have been designed and/or constructed to operate under these circumstances, in accordance with the building codes of the area, effective on the date of construction. Building structures, ceilings and floors of reinforced concrete are not considered under this exclusion, even if they have an open area. 2. Machinery and/or fixed equipment and facilities that are located outside the building(s). Equipment that is located inside the buildings, but in areas exposed to direct impacts of hydrometeorological perils, due to the lack of roofs, doors, windows or walls, provided they have been specifically designed to operate in these conditions and are properly anchored. 3. Fixed goods other than those stipulated in the preceding paragraphs that by their nature are located outdoors (those that are outside of buildings or inside buildings, in areas exposed to direct impacts of hydrometeorological phenomena by partial or total absence of roofs, doors, windows or walls, such as: a) Swimming pools, including its water. b) Advertisements and signs. c) Roads, walkways, streets, courtyards or fittings within the premises of the insured. d) Ornament elements e) Sports facilities and/or fields/tracks. Grupo de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Agosto 2012
PĂĄgina 3 de 16
f) Luminaires. g) Retaining walls of armed concrete, fences, gates and/or perimeter screens and their doors or gates. h) Palapas and pergolas. i) Irrigation systems, including networks of pipes. j) Towers and antennas for transmission and / or reception. k) Metal or plastic Tanks or silos. 4. Furniture and the portion of the property in basements or crawl spaces (premises where all of its perimeter walls are wholly or partly under the natural ground level.
Clause 3 General Exclusions Applicable to all coverages. 1. Goods excluded. Under this endorsement, the Company in any case will be liable for loss or damage to: a) Outdoor unanchored furniture and / or in open spaces b) Buildings that lack all or part of their doors, windows or full solid walls, where
these buildings have not been designed and built to operate under these circumstances, in accordance with the building regulations in force at the date of construction. This exclusion also applies to the contents of these buildings. c) Contents and stocks of goods located inside buildings that lack all or part of
roof, walls, doors, or windows, unless the buildings are destroyed or damaged in their ceilings, walls, doors or windows, by the direct action of the risks covered by this Endorsement, causing cracks or openings through which the water hail, mud, wind, or snow entered. This exclusion does not apply to damage caused by flood risk, flood coming from rain or avalanche. d) standing crops, orchards, groves, plants, trees, forests, lawns, gardens e) Buildings or structures with plastic sheeting and/or textile walls and/or roofs. f) Animals g) Standing water, running water, rivers, groundwater. h) Land, including surface, fills, drainage, sewerage.
Grupo de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Agosto 2012
PĂĄgina 4 de 16
i)
Docks, piers, jetties, natural reservoirs, canals, wells, tunnels, bridges, floating equipment, floating facilities.
j)
Foundations and underground facilities of any kind.
k) Piers, docks, and/or any property or facilities that are wholly or partially over
or under water. l)
Damage to or loss of beaches
m) Golf courses. n) Transmission lines and/or distribution in the open air. o) Buildings on demolition processes. p) Buildings under construction, reconstruction, remodeling or repairment,
when their ceilings, walls, doors and windows are not completed. q) All goods located between the closest contention walls to the beach or shore
containment and wave limit, or goods that are located within the federal zone, whichever is less. r) Retaining or contention walls made with materials other than reinforced
concrete. s) Goods located in irregular or invading areas where there is an opinion by the
competent authority that restricts the settlement, use or occupancy of the area. 1. Goods excluded. Under this endorsement, the Company in any case will be liable for loss or damage caused by: a) Humidities or their consequences, due to filtrations for/of/by: i. ii. iii. iv. v.
Groundwater or groundwater. Deficiencies in the design or construction of ceilings, walls or floors. Cracks or fractures foundations or retaining walls. Misapplication or deficiencies of waterproofing materials. Breakage or leakage of pipes on the premises of the insured, unless they occur on icy or snow storms. vi. Lack of maintenance. vii. Lack of roofs, doors, windows or walls or openings therein, or construction deficiencies of them. b) Soaking, wind, hail, snow or rain inside buildings or their contents, unless they were originated from the fact that the buildings have been destroyed or damaged Grupo de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Agosto 2012
PĂĄgina 5 de 16
on their ceilings, walls, exterior doors or windows, by direct action of winds, water, hail or snow, or by the accumulation of these factors, causing openings or cracks through which the water, hail, snow or wind entered. This exclusion does not apply to cases of flood, inundation by rain or avalanche. c) Corrosion, rust, erosion, mold, pests of any kind and any other gradually deterioration, as the result of environmental or natural conditions. d) The retrogression of water or sewer and/or lack of or inadequate drainage, inside the premises of the Insured. c) The natural action of the tides. d) Floods confined only to insured locations, unless the impairment was greater than one hectare. e) Scour to buildings that are located on the first construction line to the sea, unless they are protected by retaining walls with reinforced concrete foundations. This exclusion does not apply to buildings constructed at more than 15 meters above sea level at high level tides. f) Previous damage or existing losses prior to the inception date of this insurance. g) Loss or damage of any kind caused by poor construction or design, or lack of maintenance of the insured goods. h) Damage caused by pollution, unless the goods covered suffer direct damage caused by covered perils, causing pollution to the goods covered. Damages or expenses incurred in cleaning or decontamination of the environment (soil, groundwater, air or water) are not covered. i) Any material or consequential damage resulting from the lack of water supply, electricity, gas or any raw material or input. j) Rapine, theft, disappearance, pillage, looting, assaults, and robberies taking place before, during or after a hydrometeorological events.
Clause 4 Deductible On every claim caused as a result of the risks covered by this endorsement, including its corresponding debris removal -if this coverage was signed on-, there will always be an amount to be covered by the insured, equal to the percentage that is shown in the following table applied to the actual or replacement value of the insured property, depending on the contracted scheme.
Grupo de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Agosto 2012
PĂĄgina 6 de 16
Deductibles
Zone Alfa 1 Península de Yucatán Alfa 1 Pacífico Sur Alfa 1 Golfo de México Alfa 1 Interior de la República Alfa 2 Alfa 3
Deductibl 2% 2% 2% 2% 1% 1%
High risk premises Deductible 5% 5% 5% 2% 1 1
Zones Zone Alfa 1 Península de Yucatán
Municipalities of the State of… Yucatán, Quintana Roo y Campeche
Alfa 1 Pacífico Sur
Chiapas, Oaxaca, Guerrero, Michoacán, Colima, Jalisco, Nayarit, Sinaloa y Baja California Sur close to the coastlines or that on average are located between 0 and 500 meters above the sea level.
Alfa 1 Golfo de México Alfa 1 Interior de la República
Alfa 2
Alfa 3
Tabasco, Veracruz y Tamaulipas close to the coastlines or that on average are located between 0 and 500 meters above the sea level Nuevo León, San Luis Potosí e Hidalgo close to the coastlines or that on average are located between 0 and 500 meters above the sea level Municipalities close to the coastlines or that on average are located between the 500 and 1,000 meters above the sea level. Municipalities above 1,000 meters above the sea level
The deductible will be applied separately for each building or its contents. If the insurance comprises two or more buildings or their contents, the deductible will apply separately for each one of them. In the case of goods referred to in Clause 2 of this endorsement, the applicable deductible is 15% of the Sum Insured establihed as a limit or sub-limit for the whole set of such goods. If the insured at the time of signing on promptly declared the goods referred to in Clause 2 of this endorsement with detailed values, the applicable deductible shall be 5% of the declared sum that together have those goods.
Grupo de trabajo de Incendio y Siniestros Daños AMIS y AMASAC, Agosto 2012
Página 7 de 16
In case that business interruption coverages were signed on, the deductible stated in this Policy will apply also to these coverages. If case the policy covers both earthquake and hydrometeorological hazards for the same location, and an event produces direct damage by the earthquake and sea stroke, only the deductible with the highest amount will apply.
Clause 5 Insured participation in the loss It is an essential condition of this endorsement, that the Insured supports on its own, 10% of any loss or payable harm, and, where applicable, to their consequential losses (business interruption) and removal rubble, if they had been contracted coverages. For goods listed in Clause 2 of this endorsement, the participation of the insured applicable will be 20% of the amount of the loss or payable damage. In the sea surge coverage, the participation of the insured applicable will be 10% of the amount of the loss or payable damage, except in the coastal municipalities of the Pacific Ocean, where it will be 30%, regardless of the type of property in question. These shares of insured losses are to be applied after deducting applicable deductibles.
Clause 6 Event All losses arising from risks covered in this endorsement to insured goods shall be considered as a single claim, if they occur during an event that continues for a period of up to 72 hours after the first physical damage to the goods insured occur, except for flood, for which this period is extended to 168 hours. Any event that exceeds 72 consecutive hours for all risks listed in Clause 1 or 168 hours for flooding will be considered as two or more events, taken in multiples of the limit specified in this clause. Clause 7 Early Termination of Coverage Nonetheless the expiration date of the contract, the parties agree that this endorsement may be terminated by written notice in advance. When the Insured gives it terminated, the Company shall be entitled to the portion of the premium corresponding to the time during which the insurance was in force according to the rate for short-term insurance follows (in percentage of the annual premium):
Grupo de trabajo de Incendio y Siniestros DaĂąos AMIS y AMASAC, Agosto 2012
PĂĄgina 8 de 16
Up to 1 month Up to 2 months Up to 3 months Up to 4 months Up to 5 months More than 5 months
35% 50% 65% 80% 95% 100%
When the Company gives it terminated, it shall be by written notification to the insured. The insurance will end after 15 days of receipt of the relevant notification. The Company shall refund the pro rata unearned premium at the moment of the notification.
Cláusula 8ª Glossary. (This section was not translated becaus Spanih wording applies.)
Grupo de trabajo de Incendio y Siniestros Daños AMIS y AMASAC, Agosto 2012
Página 9 de 16