Damage Waiver Fee
Lessee has the option to pay AFR® a 12% Damage Waiver Fee as part of its Monthly Payment each month during the Lease Term in lieu of property damage insurance. For this fee, AFR® will bear all risk of damage or loss to the Leased Property arising from normal wear and tear or from damage or loss caused by natural disasters which shall mean: fires started by lightning, floods caused by rain or natural flooding, earthquakes and tornadoes. You will remain responsible for damage or loss caused by anything other than normal wear and tear or from natural disasters. Specifically, but without limitations, you will be responsible for all cigarette burns and damage caused by pets.
If You decline this damage waiver coverage, You must provide AFR®, prior to delivery, with a certificate of insurance evidencing fire and extended coverage protection for the full replacement value of the Property with AFR® named payee in a loss payable clause.