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Page 2 of 6 Insurance Services Office, Inc., 201 BP 01 55 02 20 <br /> <br /> <br />4. Paragraphs E.5.d.(1)(d) and E.5.d.(5) of the <br />Loss Payment Property Loss Conditions are <br />replaced as follows: <br />(d) We will not pay on a replacement <br />cost basis for any loss or damage <br />until the lost or damaged property is <br />actually repaired or replaced. Prior to <br />such repair or replacement, we will <br />pay the actual cash value of the lost <br />or damaged property as described in <br />Paragraph A.1. of this Endorsement. <br />If the actual cash value does not <br />exhaust the applicable Limit of <br />Insurance, we will then pay the <br />difference between the actual cash <br />value and the replacement cost, <br />provided that the repair or <br />replacement is completed: <br />(i) Within 12 months after we pay <br />the actual cash value; or <br />(ii) Within 36 months after we pay <br />the actual cash value if the loss <br />or damage relates to a state of <br />emergency under California Law. <br />The following provision applies to <br />real property which is used <br />predominantly for residential <br />purposes and consisting of not more <br />than four dwelling units, and to <br />coverage on tenants' household <br />personal property in a residential <br />unit: <br />If you, acting in good faith and with <br />reasonable diligence, encounter a <br />delay or delays in approval for, or <br />reconstruction of, the residence that <br />are beyond your control, we shall <br />provide one or more additional <br />extensions of six months for good <br />cause. Circumstances beyond your <br />control include, but are not limited to: <br />(i) Unavoidable construction permit <br />delays; <br />(ii) The lack of necessary <br />construction materials; or <br />(iii) The unavailability of contractors <br />to perform the necessary work. <br />Nothing in this Paragraph (d) <br />constitutes a waiver of our right to <br />deny the claim for any valid reason <br />or to restrict payment in cases of <br />suspected fraud. <br />(5) Tenants' improvements and betterments <br />at: <br />(a) Replacement cost in accordance <br />with the terms set forth in Paragraph <br />(d) above. <br />(b) A proportion of your original cost if <br />the property is not repaired or <br />replaced. We will determine the <br />proportionate value as follows: <br />(i) Multiply the original cost by the <br />number of days from the loss or <br />damage to the expiration of the <br />lease; and <br />(ii) Divide the amount determined in <br />(i) above by the number of days <br />from the installation of <br />improvements to the expiration of <br />the lease. <br />If your lease contains a renewal <br />option, the expiration of the renewal <br />option period will replace the <br />expiration of the lease in this <br />procedure. <br />(c) Nothing if others pay for repairs or <br />replacement. <br />B. Section III - Common Policy Conditions is <br />amended as follows: <br />1. Paragraphs A.2. and A.3. Cancellation are <br />replaced by the following: <br />2. All Policies In E ect For 0 Days Or <br />Less <br />If this Policy has been in effect for 60 days <br />or less, and is not a renewal of a policy we <br />have previously issued, we may cancel this <br />Policy by mailing or delivering to the first <br />Named Insured at the mailing address <br />shown in the Policy and to the producer of <br />record, advance written notice of <br />cancellation, stating the reason for <br />cancellation, at least: <br />a. 10 days before the effective date of <br />cancellation if we cancel for: <br />(1) Nonpayment of premium; or <br />(2) Discovery of fraud by: <br />(a) Any insured or his or her <br />representative in obtaining this <br />insurance; or <br />(b) You or your representative in <br />pursuing a claim under this <br />Policy. <br />EXHIBIT B <br />Docusign Envelope ID: 719DA141-AC44-83B6-8162-C79EED148CD3