Actual Cash Value ML 15

This endorsement, used at company discretion, deletes the replacement cost terms and replaces them with an actual cash value settlement.

Additional Insured ML 41

A person or an organization may be added as an additional insured on the policy. The additional insured is protected as his or her interest may appear with respect to coverages A, B, L, and M; however, liability and medical payments apply only with respect to the described premises. The endorsement does not cover bodily injury to any employee of the additional insured person or organization arising out of the course of employment.

Additional Insured—Landlord ML 416

It is not uncommon for an apartment owner to require being named as additional insured for liability coverage on a tenant's insurance policy. This endorsement provides the means to do so. Liability and medical payments apply only to premises liability; bodily injury to an employee of the landlord arising out of the course of employment is excluded, as is bodily injury or property damage arising out of new construction, alterations, or demolition performed for the landlord.

Additional Insureds (Residents of Household) ML 433

This endorsement can be used to cover the interests of a non-relative resident of the named insured's household, who otherwise would not qualify as an insured. So long as the named individual or individuals remain residents in the insured's household, there is coverage for personal property and for personal liability and medical payments to others.

Additional Residential Premises Rented to Others

When an insured owns rental property, the rented residential premises can be scheduled on this endorsement. These premises then become "insured premises" for both liability and medical payments to others coverage.

Animal Collision ML 337

Loss or destruction of any owned cattle, horse, mule, donkey, hog, sheep or goat because of collision between the animal and a vehicle not owned or operated by an insured is covered. The loss or destruction must occur on a public road, and not result from the animal's being transported. Loss is limited to the lesser of: the market value of the animal, $400 per animal, or the insured's interest in the animal.

Automatic Adjustment of Limits ML 184

This endorsement allows the coverage A, B, C, and D limits to be increased by a selected percentage annually. In event of a covered loss in the middle of a policy term, the limits are adjusted on a pro rata basis.

Business Activities ML 71

Liability coverage for activities arising out of certain businesses not owned by an insured may be provided through this endorsement. Although it is commonly used for teachers, it may be used for salespersons, collectors, messengers, or clerical office workers. Coverage for corporal punishment may be included. Many activities teachers often engage in, such as driving students to, say, a track meet, are excluded.

Care Provided for Others ML 157

This endorsement may be used to cover both the liability arising from care for others on the insured premises and, if a related private structure is used for this purposes, the structure itself. The following are excluded under liability coverage: maintenance, use, loading, unloading, or entrustment by the insured to others of draft or saddle animals, or vehicles used with them, aircraft, all motorized land conveyances, or watercraft, whether owned, operated, or hired by or for the insured or employee, or used by the insured for instruction in their use. Excluded also is injury to any employee of an insured (other than a residence employee), arising out of the operation.

The endorsement also imposes a policy year aggregate limit for liability and medical payments combined. The limit corresponds to the coverage E limit shown in the declarations. Limits described on the endorsement apply even if contrary to those contained in the policy or declarations. The severability of insurance clause specifies that coverage applies separately to insureds except with respect to the aggregate limit, so the aggregate limit remains unaffected by the number of insureds. Further, with respect to coverage provided by this endorsement, the restoration of limits provision does not apply.

The exclusion of property coverage for a related private structure used for business purposes is deleted. The coverage C limit on property used in business is amended so that it does not apply to property used in the described business.

Check the insurer's underwriting guidelines regarding maximum number of persons being cared for that the endorsement is intended to cover.

A common cause of loss for a mobile home is upset, or collision with another object. This endorsement provides coverage for these perils while the mobile home is on the insured premises, and away if endorsement ML 25, consent to move mobile home, is attached.

Since the named peril of sudden and accidental damage from artificially generated electrical current excludes damage to tubes, transistors, and similar electronic components, much of what can be damaged in a computer in event of a power surge is not covered. This endorsement provides coverage on an open perils basis for scheduled hardware and software. A separate deductible may be selected.

Among the exclusions are those for loss resulting from war, acts of civil authority, wear and tear, mechanical malfunction, loss of use, or changes or extremes of temperature. Loss to software caused by a power supply disturbance occurring more than 100 feet from the insured premises is excluded.

This endorsement is attached when the mobile home is away from the insured premises, perhaps being moved to a new location. The endorsement does not apply to loss caused by collision or upset. (See above.)

Coverage C, personal property, imposes special sublimits with respect to certain categories of property. This endorsement may be added to increase these limits for some of these categories—money, precious metals, and coins; securities, accounts, deeds, evidences of debt, letters of credit, and other valuable papers; jewelry, watches, precious and semi-precious stones, and furs; silverware, goldware, and pewterware; firearms; electronic devices and accessories that can be operated from the electrical system of a "motorized vehicle"; and personal property used in business. The special limits are increased for the categories of jewelry; silver and goldware; and guns with respect to theft, since the special limit for such items applies only to theft losses.

Attachment of this endorsement does not increase the coverage C limit of liability.

Liability resulting from crop dusting, seeding, or spraying operations carried out for the named insured by a licensed independent contractor are covered by this endorsement. Coverage is on a "per occurrence" basis. Since the farm liability coverage form ML 29 (see below) excludes coverage for bodily injury or property damage arising from the release of substances from an aircraft, the coverage provided by this endorsement is the only coverage available for this type of operation.

When farming is carried out for another on a contract basis, it is called custom farming.  Farm liability coverage form ML 29 (see below) provides coverage for bodily injury or property damage arising from custom farming only if the receipts for the prior twelve months do not exceed $5,000. Further, bodily injury or property damage from the use of herbicides or pesticides is excluded. Endorsement ML 424 provides coverage when receipts exceed $5,000. Bodily injury or property damage from use of herbicides or pesticides may be included.

The homeowners forms provide up to 25% of the limit applying to damaged property for debris removal, with an additional 5% available if the covered loss plus the cost of debris removal is more than the applicable limit. This endorsement removes the 25% cap. The extra 5% is still available if the loss plus the debris removal cost exceeds the limit applying to the loss. The endorsement is unnecessary with form 5, the special building and contents form, since debris removal up to the limit of liability, with an additional 5% is provided.

Theft in or to a dwelling under construction, or theft of materials or supplies for use in the construction, is excluded until the dwelling is occupied. This endorsement covers loss by theft or attempted theft in or to a dwelling being built; materials and supplies for use in the construction; or in or to a dwelling newly built but not yet occupied. A limit of coverage is scheduled. All premium for this endorsement is fully earned; that is, if the endorsement is deleted from the policy there is no refund.

There is no coverage for loss resulting from "earth movement" under the homeowners forms (except form 5, which provides earthquake coverage for contents). An insured may add earthquake as an insured peril for coverages A (dwelling), B (other structures), and C (contents) by adding this endorsement. Since earthquake coverage is included in open perils coverage on personal property under form 5, or endorsement ML 429 which provides open perils coverage on contents for form 6 condominium owners, the endorsement does not apply to coverage C on those policies. Insureds with open perils coverage on contents need to add earthquake coverage only for coverages A and B.

The endorsement defines as a "single earthquake" all earthquake shocks that occur within a 168-hour (7 day) period. The peril of earthquake is defined to include land shock waves or tremors accompanying a volcanic eruption.

An insured premises located in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, or Washington is subject to a deductible of at least 5% of the applicable limit; insured premises located in any other state or jurisdiction are subject to a deductible of at least 2% of the applicable limit. The deductible applies separately to loss under coverage A, B, C, and D.

Like other forms of earthquake insurance, the endorsement excludes flood and tidal wave, even when caused or contributed to by earthquake. Loss caused by landslide, subsidence, mudflow, or earth rising, sinking, or contracting is excluded unless the landslide, etc., is the result of an earthquake. Masonry veneer coverage is optional; if excluded, the deductible applies to the applicable limit minus the value of this veneer. Stucco is not included within the meaning of masonry veneer.

If an insured is assessed by his or her residential association (condo, homeowners, or mobile-homeowners) for damages caused by loss due to earthquake or land shock waves caused by volcanic eruption, this endorsement provides coverage. The base deductible is 5% of the applicable limit; a higher amount may be selected, but in no event will the deductible be less than $250.

The assessment must be made during the policy period. The loss must be to property owned collectively by all association members, and must be charged against the insured as owner or tenant of the premises scheduled in the endorsement.

An assessment resulting from loss caused by flood, whether caused by or aggravated by earthquake, is not covered. An assessment resulting from mudflow, landslide, subsidence, or earth rising, sinking, or contracting is not covered unless this type of earth movement is caused by an earthquake.

When endorsement ML 29 farm liability coverage (see below) is attached to the policy, endorsement ML 311 may be added to provide liability (bodily injury) and medical payments coverage for farm employees while performing duties in connection with the insured's farming operations.

Coverage L and M apply to the employee's bodily injury resulting from: the ownership, use, loading or unloading of aircraft except while the employee is engaged in its operation or maintenance; the ownership, maintenance, use, loading, or unloading of a "motorized vehicle" or watercraft; or premises owned, rented, or controlled by an insured.

Medical payments coverage applies to "bodily injury" of an employee or other person occurring away from the insured premises if the injury is caused by the farm employee, or suffered by the employee in the course of employment.

Coverage is excluded for anyone employed illegally with the knowledge or approval of the insured, and for any employment practices related claims, such as harassment.

Notice must be sent to the insurer within 36 months after the end of the policy period in which an injury, sickness, or death occurred for liability coverage to apply.

When endorsement ML 29 farm liability coverage (see below) is attached, this endorsement may be used to provide liability resulting from the release of farm chemicals on the farm premises. Coverage is limited to physical injury to property of others. There is no coverage for physical injury to property owned, rented to, or borrowed by the insured.

The endorsement excludes any cost or expense arising out of a claim, order, or request to test for or clean up any pollutants. Excluded as well is liability coverage for any farming operations that violate any ordinance or law.

When farming is not the insured's principal business, this endorsement may be attached to provide liability coverage for activities arising out of incidental farming operations. The rates contemplate limited farming or grazing of small numbers of animals. Acceptability of any farming risk is determined by each individual insurer.

The endorsement amends the definition of "business" so that farming is not considered a "business." The definition of "domestic employee" is amended so that farm employees are included within the definition. "Insured premises" includes, under the endorsement, the farm premises described on the declarations, other land used by the insured for farming purposes, new farm premises acquired by the insured during the policy period, and vacant land owned or rented to an insured, including land upon which a farm structure is being built for an insured's use.

Coverages L and M are extended to apply to farming. The endorsement includes, as well, an incidental coverage for custom farming, but only if the receipts for this activity do not exceed $5,000 in the twelve months just before the date of an "occurrence." The endorsement provides liability coverage for a farm roadside stand, but does not provide liability coverage for horse boarding or for "pick-your-own" operations. Coverage may be purchased for these activities through use of endorsement ML 423 (see below).

Certain exclusions apply. Two exclusions—for bodily injury or property damage resulting from the discharge of substances from an aircraft, and bodily injury to a farm employee while in the course of employment, can be amended by endorsement (see above—crop dusting and spraying operations ML 426 and employer's liability [farm employees] ML 311).

When the insured's farming operations include allowing the public onto the premises on a "pick-your-own" venture, or boarding horses for others, this endorsement may be attached. The activity to be insured is scheduled on the endorsement.  There is no coverage for bodily injury resulting from the use of ladders or off the ground picking unless indicated in the schedule. There is no coverage for bodily injury or property damage occurring away from the premises in the case of horse boarding activities unless the horses escape from the insured premises.

Golf carts may be scheduled on this endorsement, thus providing coverage for direct physical loss caused by a coverage C peril or collision or overturn. Under the homeowners forms there is no coverage for "motorized vehicles" save for those vehicles designed to assist the handicapped or service the premises. The homeowners deductible applies to any covered loss. There is no coverage for golf carts if used to carry persons for a charge or other business purposes, or while used in any racing or stunting activity.

While the homeowners forms provide liability coverage for golf carts used for golfing purposes, they do not cover the liability that may result from, say, the insured's use of the cart to get to the course, as often happens in communities built around a golf course. This endorsement fills that gap. There is no coverage for a cart used to carry persons for a charge or other business purposes, or while used in any racing or stunting activities.

When farming is not the principal business of the insured, this endorsement schedules either the insured's farming operations on the insured premises, or on another designated location. Coverages L and M of the homeowners are extended to apply to the farming operations. Endorsement ML 29, farm liability coverage, is then attached to further broaden the coverage.

Under form 3 homeowners, the incidental property coverages provide $500 for a fire department service charge, $1,500 for credit card, forgery, and counterfeit money, and $500 for refrigerated food spoilage. Coverage form 4, the contents broad form, allows up to 10% of the coverage C limit to apply to tenant's improvements in event of a covered loss. This endorsement allows for increased amounts of insurance.

This mandatory endorsement deletes liability coverage for bodily injury arising out of ingestion, inhalation, or absorption of lead in any form. Deleted as well is coverage for any property damage resulting from any form of lead.

The policy limit for loss assessment coverage, whether for a direct loss to property owned in common by all association members, or for a liability loss, is $1,500. This amount can be increased by way of this endorsement. Additional locations can be scheduled. In no case will more than $1,500 be paid if the assessment is the result of a deductible in the association policy.

At the insurer's discretion, this endorsement allows coverage for partial losses on a replacement cost basis. If at least the selected percentage of the replacement cost is carried, then the insurer will pay the smaller of the cost to repair or replace the damage on the same premises using materials of like kind and quality to the extent practical, or the amount spent to repair or replace the damaged property. If the selected percentage of the replacement cost is not carried, then the insurer will pay the larger of the actual cash value at the time of the loss, or that part of the replacement cost of the damaged part which the limit on the building bears to the selected percentage of the full replacement cost.

Attachment of this endorsement to the homeowners forms allows for off-premises liability coverage—"bodily injury" and "property damage"—for certain "motorized vehicles," such as an all-terrain vehicle. Coverage does not apply to motorized bicycles, mopeds, golf carts, or vehicles capable of speeds greater than 15 miles per hour.

Except for the special building and contents form 5, which provides ordinance and law coverage up to the limit of liability that applies to the damaged property, the homeowners forms provide up to 25% of the limit that applies to the damaged property. This amount may be increased by means of this endorsement. The amount of ordinance and law coverage, even if increased, does not increase the limit that applies to the damaged property; however, if the covered loss plus the increased cost is more than the applicable limit, then an additional 10% of the applicable limit is available. The endorsement will not cover loss in value of the property or any costs associated with pollution.

There are three coverages provided by this endorsement. The first is liability coverage for occurrences arising out of the incidental use of the insured premises for office, professional, private school or studio activities. The incidental liability coverage for business covers bodily injury or property damage arising out of the rental of part of the insured premises for use as a school, studio, office, or private garage; this endorsement adds that coverage also applies to business activities of an insured that relate to the use of the premises as described in the endorsement.

The second coverage provided is for direct physical loss or damage to a related private structure used as described in the endorsement. Coverage would otherwise be excluded, except for rental to a tenant or for a private garage. Finally, the endorsement deletes the limitation of coverage for personal property used in business.

Note, the coverage is intended to apply to business that are incidental to the use of the premises for residential purposes. The home business program may be used when the business is more than incidental.

The definition of "bodily injury" is "bodily harm to a person and includes sickness, disease, or death." An insured can be held liable, however, for damages to another person that are not included in this definition, such as libel, slander, defamation of character, or invasion of privacy. This endorsement extends liability coverage L to include these. The endorsement will not respond to claims arising out of: civic or public duties performed for pay by an insured; willful violation or a law or ordinance; the insured's activities as an employer; activities prior to the effective date of the endorsement; or statements or publications made that the insured knew or had reason to believe were false.

This mandatory endorsement is used when the underwriter wishes to limit the insurer's liability exposure for potential losses relating to pollution. If the policy provides coverage for personal injury, then the definition of "personal injury" is amended so that any pollution-related action is not encompassed by the definition. (For example, claims for damages because of the migration of pollutants onto neighboring premises have sometimes been brought under invasion of privacy or wrongful entry.)

If the policy provides coverage for farming activities, the exclusion will not apply to deliberate fires set to burn off stubble, so long as no ordinance is violated. There is coverage if a hostile fire results in bodily injury or property damage.

Premium credits apply when a fire or burglar alarm, automatic sprinkler system, or another protective device described on the declarations is installed on the insured premises. The insured is required to maintain the system in working order and notify the insurer when it is not working or has been removed.

This mandatory endorsement states that the policy will not apply to a claim for punitive or exemplary damages; however, if a claim or suit seeks both compensatory and punitive or exemplary damages for a covered occurrence, then the insurer will provide defense coverage.

An additional amount of insurance for specific private structures located on the insured premises can be provided through this endorsement. The limit shown on the endorsement is an additional amount of insurance for that structure, although the limit for coverage B shown in the declarations is not increased.

If the insured owns, say, a private garage or a pole barn located away from the insured premises and used in conjunction with the insured premises, this endorsement provides coverage. The coverage B limit of liability does not apply to structures away from the insured premises. Through endorsement ML 418, scheduled related private structures (away from premises), additional amounts of insurance on each structure may be scheduled.

A structure located on the insured premises that is rented to others and occupied by no more than two families may be scheduled on this endorsement. The limit shown on the endorsement is the maximum that will be paid in event of a covered loss. The coverage B limit of liability is amended so that it does not apply to the scheduled structure, nor does the exclusion of coverage to structures used for business purposes.  The scheduled structures, for liability coverage purposes, are included in the definition of "insured premises."

This endorsement may be used at the option of the insurer. It replaces the replacement cost loss settlement provisions with repair cost provisions. If the insured repairs or replaces the damaged property on the same or a contiguous site, with commonly available, practically equivalent materials, then the insurer agrees to pay the amount actually spent up to the limit of liability. If the insured elects not to repair or replace the damage property then an actual cash value settlement is made.

The replacement cost terms of the homeowners forms apply only to buildings, and not to mobile homes whether or not they are on a permanent foundation. This endorsement changes this provision so that replacement cost terms apply to the mobile home shown on the endorsement.

This endorsement changes the actual cash value loss settlement provisions for personal property to replacement value. (The endorsement need not be attached to form 5, special building and contents, since the coverage is included.) Replacement cost coverage also applies to appliances and window air conditioners, carpets and window coverings, awnings and canopies, and antennas. Certain scheduled classes of personal property are included: jewelry; furs; cameras; musical instruments; silver-, gold-, and pewterware; golfer's equipment; and bicycles.

Four categories are ineligible for the coverage: fine arts or rare articles; memorabilia, souvenirs, collector's items and the like; items not maintained in good or workable condition; or items that are outdated or obsolete and are stored or not being used.

Recovery is limited to the smallest of: the replacement value of the property; the amount determined after applying any special limits in the policy; the coverage C amount; or any limit applying to the scheduled property.

If replacement cost coverage does not apply, settlement is on an actual cash value basis.

If the insured occasionally rents the portion of the insured premises normally occupied by him- or herself to others, this endorsement deletes the exclusion of coverage for theft of personal property owned by the insured while the premises is rented. The endorsement could be used, for example, when an insured owns a vacation home that is sometimes rented to others. The endorsement may not be used with the broad form contents (form 4), special building and personal property form 5, limited form 8, or unit owners form 6 with the unit owners personal property special coverage endorsement ML 429 attached.

The endorsement is not intended for use when a condominium is regularly rented to others. See below for this coverage.

Personal articles insurance may be written in conjunction with a homeowners policy by using this endorsement. This makes it convenient for a homeowners insured who wishes to broaden the scope of coverage on personal property by writing the coverage on an open perils basis, or who has property valued in excess of the limits specified in the homeowners form for certain categories of property—jewelry, furs, or silverware, for example.

It is important to remember the coverage C exclusion of "property covered by scheduled insurance" when deciding on amounts of insurance to be inserted in the endorsement. The coverage C amount will not contribute in case of loss to any property insured in the endorsement, so it is important that each item is scheduled for an adequate amount of coverage.

The full effect of the "other insurance" provision can be avoided if an insured chooses not to schedule blanket items (such as "silverware") in the endorsement, but instead lists only the more valuable items specifically, i.e., "a four piece service for eight of ABC brand silverware, 'Sonata' pattern." Other silverware items in the household thus escape the "other insurance" provision and continue to have the protection of coverage C.

Despite its appearance as a mere endorsement attached to the homeowners policy, the personal articles floater remains a separate contract. Note that the usual exclusions of coverage for loss resulting from flood or earthquake are absent from this endorsement. Further, coverage applies anywhere in the world.

As noted in a different discussion (see "Conditions and Provisions—AAIS Homeowners"), the AAIS homeowners forms address loss settlement in the case of a secured party, such as a mechanic's lienholder or the lender on a mobile home. The secured party's interest is not protected for embezzlement or conversion by the insured unless this endorsement is attached. The endorsement may also be used to add the perils of earthquake, flood, or collision (as, for example, if the mobile home collides with the vehicle to which it is attached).

The endorsement responds to the secured party's interest in the case of intentional damage to the mobile home by the insured, or inability to repossess the mobile home because it is either secreted or has been transferred without consent to a third party.

This endorsement provides liability coverage for the snowmobile(s) described in the schedule while they are used away from the insured premises. There is no coverage if the snowmobile is rented to others or used to carry persons for a charge, or if the snowmobile is used for any racing or stunting activities.

Use of this endorsement changes the named peril coverage of the contents broad form 4 to open perils coverage. Additionally, the coverage C limit for theft of certain classes of property (i.e., jewelry, for example) is changed to "loss by theft, misplacing, or losing."

Certain exclusions apply, among them accidental discharge of plumbing if the "insured premises" are vacant; theft in or to a dwelling under construction until it is occupied; damage done by an animal owned or kept by an insured; and pollution. Ensuing losses, unless excluded, are covered, however.

Breakage of fragile articles (except for jewelry, watches, bronzes, cameras, and photographic lenses) is excluded unless the breakage is a result of fire, theft, hail, explosion, riot, vehicles, etc.

This endorsement replaces the named peril coverage for the unit owner's fixtures, alterations, decorations, installations and appliances that are part of the unit with open perils coverage. There are exclusions for damage caused by freezing or accidental discharge of plumbing if the unit is left vacant or unoccupied and the insured has failed to take proper precautions; theft in or to a unit under construction if the unit is unoccupied; animals owned or kept by an insured; pollution; agricultural or industrial smoke; settling; continuous or repeated seepage or leakage; freezing or pressure of ice against structures that are not buildings; and collapse (other than that provided in the incidental property coverages). Of course, the exclusions applying to property coverages, such as war, also apply.

Use of this endorsement changes the coverage applying to the condominium owner's personal property to an open perils basis. The limits for theft coverage on certain classes of property—jewelry; silverware; and guns—are broadened to include misplacing or losing. The earth movement exclusion is amended to apply only to property insured under coverage A, and the water damage exclusion is amended so that personal property away from the insured premises or a location owned by, rented to, occupied by, used by, or in the care of an insured is covered. Breakage of fragile articles caused by fire, explosion, volcanic action, earthquake, vehicles, vandalism, collapse of a building, etc., is covered. Certain exclusions apply: damage caused by animals owned or kept by an insured; agricultural or industrial smoke; and pollution are among them.

This endorsement amends the definition of coverage C personal property used for business purposes so that it does not apply to property which is incidental to the use of the unit for residential purposes. The exclusion of theft from a part of the insured premises when it is rented to others is amended so that theft of items such as money, silverware, securities, or jewelry is excluded. Theft of other items—furniture, a TV, china—would be covered.

This endorsement may not be used when unit owners special property coverage ML 429 is attached.

Up to $5,000 is available to cover direct physical loss to covered property caused by water or sewage which backs up through sewers or drains, or water which enters into and overflows from within a sump pump, sump pump well, or other type of system designed to remove subsurface water. A $250 deductible applies.

The reference to "water or sewage which backs up through sewers or drains or water which overflows from within a sump" is deleted in the water damage exclusion. The exclusion for loss resulting from "wear and tear" is deleted as regards the coverage provided by this endorsement.

A leaking waterbed can seriously damage other property. For example, a bed belonging to a tenant in an upstairs apartment can damage property in the apartment below. This endorsement provides liability coverage for damage to property of others. Coverage for property the insured owns may be added by endorsement ML 421, accidental discharge or overflow coverage (see above).

This endorsement is used to enlarge the homeowners incidental liability section L coverages pertaining to the ownership, maintenance, or use of certain watercraft. The endorsement provides liability coverage, otherwise excluded, with respect to scheduled and described watercraft powered by one or more outboard engines or motors of more than 25 total horsepower; any inboard or inboard-outdrive powered watercraft over 50 horsepower; and sailing vessels, with or without auxiliary power, of 26 or more feet in length.

Coverage under the endorsement does not apply to job-connected bodily injury to an insured's employee whose principal duties involve the maintenance or use of watercraft, nor is there coverage while the watercraft is used to carry paying passengers or while it is rented to others. The endorsement also excludes coverage for liability arising out of the operation of watercraft in a prearranged or organized race, speed contest, or similar competition, unless the competition is for sailing vessels (with or without auxiliary power) or is a predicted log cruise.

Coverage for the perils of windstorm or hail may be given a deductible different from that for other covered perils under this endorsement. Different percentage options are available.