LIMIT OF LIABILITY A. Our limit of liability for loss will be the lesser of the: 1. Actual cash value of the stolen or damaged property; or 2. Amount necessary to repair or replace the property with other property of like kind and quality. However, the most we will pay for loss to any "non-owned auto" which is a trailer is $500. B. An adjustment for depreciation and physical condition will be made in determining actual cash value in the event of a total loss. C. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. The company will only pay the actual cash value or the cost to repair or replace the damaged or stolen property, whichever is less. However, coverage for a non-owned trailer is limited to $500. In all settlements, depreciation and the condition of the vehicle are considered in determining the actual cash value at the time of loss. PAYMENT OF LOSS We may pay for loss in money or repair or replace the damaged or stolen property. We may, at our expense, return any stolen property to: 1. You; or 2. The address shown in this policy. If we return stolen property we will pay for any damage resulting from the theft. We may keep all or part of the property at an agreed or appraised value. If we pay for loss in money, our payment will include the applicable sales tax for the damaged or stolen property. Indemnification for the loss may be payment in money or replacement of the property. Stolen property may be returned to the insured and payment made for any damage, or the company may keep the property and pay the insured an agreed or appraised amount in money. The insurance company will pay the applicable sales tax if it pays for a physical damage loss. NO BENEFIT TO BAILEE This insurance shall not directly or indirectly benefit any carrier or other bailee for hire. An example of the bailee exclusion: You have your car in a service garage for the purpose of installing a new transmission. The work is almost completed when a fire occurs and destroys the car. The company will pay you for the value of the auto, but will not pay the garage (bailee) for the value of the new transmission nor for the labor expended installing it. OTHER SOURCES OF RECOVERY If other sources of recovery also cover the loss, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a "non-owned auto" shall be excess over any other collectible source of recovery including, but not limited to: 1. Any coverage provided by the owner of the "non-owned auto;" 2. Any other applicable physical damage insurance; 3. Any other source of recovery applicable to the loss. An example of other sources of recovery: You finance an auto purchase and, unknown to you, the lender provides physical damage coverage. You instruct your agent to give you full coverage, so the agent includes the physical damage. Each company will share proportionately in any loss; this usually would be equal shares since, in most cases, coverage is written on an "actual cash value" basis. Deductibles are usually applied in the same proportion as the loss payment. If other insurance applies to any non-owned auto, coverage will be treated as excess over any other collectible insurance.