Commercial Property: Coverage Guide : Interpretation and Analysis/With Supplement

by Hillman, Bruce J.; McCracken, Michael K.

• ISBN13: 9780872183902
• ISBN10: 0872183904
• Edition: 2nd
• Format: Paperback
• Copyright: 2001-06-01
• Publisher: Natl Underwriter Co

Table of Contents

Coverage Scenario Index
Introduction: The Building and Personal Property Coverage Form	1	(1)
Property Coverage Forms	1	(1)
ISO Rules	2	(1)
Underwriting	3	(1)
Purpose of this Work	4	(1)
The Insuring Agreement; Covered and Not Covered Property	5	(22)
Section A. Coverage	5	(1)
What is ``Direct Physical Loss or Damage?''	5	(6)
Section A.1. Covered Property	6	(1)
Section A.1.a. Building Coverage	7	(4)
Section A.1.b. Business Personal Property	11	(1)
Meaning of Premises	11	(16)
A.l.c. Personal Property of Others	21	(1)
Section A.2. Property Not Covered	22	(5)
Additional Coverages, Coverage Extensions and Optional Coverages	27	(22)
Section 4. Additional Coverages	28	(7)
Debris Removal	28	(3)
Preservation of Property	31	(1)
Fire Department Service Charge	31	(1)
Pollutant Cleanup and Removal	32	(2)
Increased Cost of Construction	34	(1)
Section 5. Coverage Extensions	35	(6)
Newly Acquired or Constructed Property	35	(2)
Personal Effects and Property of Others	37	(1)
Valuable Papers and Records-Cost of Research	38	(1)
Property Off-Premises	38	(2)
Outdoor Property	40	(1)
Nonowned Detached Trailers	40	(1)
Optional Coverages	41	(8)
Section G.1. Agreed Value	41	(1)
Section G.2. Inflation Guard	42	(1)
Section G.3. Replacement Cost	42	(4)
Section G.4. Extension of Replacement Cost to Personal Property of Others	46	(3)
Covered Causes of Loss-Named Perils Forms	49	(24)
CP 10 10-Causes of Loss-Basic Form	50	(10)
CP 10 20-Broad Form Causes of Loss	60	(2)
Exclusions that Apply to Both Named Perils Causes of Loss Forms	62	(7)
Subsection B.2. Exclusions	69	(1)
Special Exclusions	70	(1)
Additional Coverage	70	(1)
Collapse	70	(3)
Special Covered Causes of Loss Form (CP 10 30)	73	(22)
Similarities to Named Perils Forms	74	(1)
Open Perils Exclusions-Section B.2	75	(1)
Losses that Happen over Time-Section 2.d	76	(5)
Other Exclusions	81	(4)
Concurrent Causation Exclusions	85	(2)
Special Exclusions	87	(1)
Limitations	87	(4)
Limitations on Other Types of Property	91	(1)
Special Theft Limits	92	(1)
Additional Coverages and Limitation	92	(1)
Additional Coverage Extensions	92	(3)
Conditions	95	(22)
Commercial Property General Conditions	95	(1)
Cancellation	95	(1)
Changes	96	(1)
Examination of Your Books and Records	96	(1)
Inspection and Surveys	96	(1)
Premiums	97	(1)
Transfer of Rights and Duties under This Policy	97	(1)
Commercial Property Policy Conditions	97	(1)
Concealment, Misrepresentation or Fraud	98	(1)
Control of Property	99	(1)
Insurance under Two or More Coverages	100	(1)
Legal Action against the Insurer	100	(1)
Liberalization	100	(1)
No Benefit to Bailee	100	(1)
Other Insurance	101	(1)
Policy Period, Coverage Territory	101	(1)
Subrogation	102	(1)
Other Relevant Provisions of the Commercial Property Policy	102	(1)
Limits of Insurance and Deductible	102	(1)
Loss Conditions	103	(1)
Abandonment and Appraisal	103	(1)
The Insured's Duties in the Event of Loss	104	(1)
Loss Payment	105	(3)
Recovered Property	108	(1)
Vacancy	108	(2)
Valuation	110	(2)
Additional Conditions	112	(1)
Coinsurance	112	(2)
Mortgageholders	114	(3)
Builders Risk	117	(12)
Covered Property	119	(1)
Property Not Covered	120	(1)
Covered Causes of Loss	121	(1)
Additional Coverages	121	(1)
Coverage Extensions	121	(1)
Trees, Shrubs and Plants	122	(1)
Limits of Insurance	122	(1)
Deductible	123	(1)
Loss Conditions	123	(1)
Additional Conditions	123	(1)
Builders Risk Coverage Options	124	(1)
Building Renovations	125	(1)
Builder's Risk Reporting Form	125	(1)
Separate or Subcontractors Interest	126	(1)
Collapse during Construction	126	(1)
Theft of Building Materials, Fixtures, Machinery, Equipment	126	(1)
Building Materials and Supplies of Others	127	(2)
Other Coverage Forms	129	(34)
Leasehold Interest	129	(1)
What is Insured	129	(1)
Causes of Loss, Exclusions, and Limitations	130	(1)
Limits of Insurance	131	(1)
Loss Conditions	132	(1)
Cancellation	133	(1)
Schedule Form CP 19 60	134	(1)
Leasehold Interest Factors	135	(1)
Mortgageholders Errors and Omissions - CP 00 70	135	(1)
The Four Coverage Agreements	136	(1)
Coverage A - Mortgageholder's Interest	136	(2)
Coverage B - Property Owned or Held in Trust	138	(1)
Coverage C - Mortgageholder's Liability	139	(1)
Real Estate Tax Liability-Coverage D	140	(1)
Exclusions	140	(1)
Limits of Insurance	141	(1)
Additional Coverage-Collapse	142	(1)
Additional Conditions	143	(1)
Conditions Applicable to All Coverages	144	(3)
Definitions	147	(1)
Tobacco in Sales Warehouses	147	(1)
Covered Property	148	(1)
Additional Coverages	148	(1)
Coverage Extension	148	(1)
Exclusions and Limitations	149	(1)
Additional Conditions	149	(1)
Deductible	149	(1)
Loss Conditions	149	(1)
Definitions	150	(1)
Condominium Associations	150	(1)
Covered Property	150	(2)
Other Provisions	152	(1)
Commercial Condominium Unit-Owners	153	(1)
Property	154	(1)
Additional Coverages and Coverage Extensions	154	(1)
Limits and Deductible	154	(1)
Loss Conditions	155	(1)
Other Provisions	155	(1)
Legal Liability Coverage Form	155	(2)
Coverage	157	(1)
Coverage Extensions-Additional Insureds and Newly Acquired Organizations	158	(1)
Newly Acquired Property	158	(1)
Perils and Exclusions	159	(1)
Loss Conditions	160	(1)
Additional Conditions	161	(2)
Commercial Property Endorsements	163	(32)
Additional Building Property, CP 14 15	163	(1)
Additional Covered Property, CP 14 10	163	(1)
Additional Locations Special Coinsurance Provisions, CP 13 20	164	(1)
Additional Property Not Covered, CP 14 20	165	(1)
Agricultural Products Storage, CP 13 30	166	(1)
Alcoholic Beverage Tax Exclusion, CP 99 10	167	(1)
Brands and Labels, CP 04 01	167	(1)
Broken or Cracked Glass Exclusion Form, CP 10 52	168	(1)
Burglary and Robbery Protective Safeguards, CP 12 11	168	(1)
Condominium Commercial Unit Owners Optional Coverages, CP 04 18	169	(1)
Contributing Insurance, CP 99 20	169	(1)
Debris Removal Additional Insurance, CP 04 15	170	(1)
Deductible Limitation, CP 03 10	170	(1)
Distilled Spirits and Wines Market Value, CP 99 05	170	(1)
Earthquake and Volcanic Eruption Endorsement Form, CP 10 40	171	(1)
Earthquake Inception Extension, CP 10 41	172	(1)
Electrical Apparatus, CP 04 10	172	(1)
Flood Coverage Endorsement, CP 10 65	172	(1)
Functional Building Valuation, CP 04 38	173	(2)
Functional Personal Property Valuation-Other Than Stock, CP 04 39	175	(1)
Grain Properties-Explosion Limitation, CP 10 51	176	(1)
Household Personal Property Coverage, CP 99 92	176	(1)
Leased Property, CP 14 60	177	(1)
Legal Liability Coverage Schedule, CP DS 05	177	(1)
Loss Payable Provisions, CP 12 18	177	(1)
Manufacturers Consequential Loss Assumption, CP 99 02	178	(1)
Manufacturer's Selling Price (Finished Stock Only), CP 99 30	178	(1)
Market Value Stock, CP 99 31	178	(1)
Molten Material, CP 10 60	179	(1)
Multiple Deductible, CP 03 20	179	(1)
Multiple Location/Premium and Dispersion Credit Application, CP 13 70	179	(1)
Newly Acquired/Constructed Property-Increased Limit, CP 04 25	179	(1)
Off-Premises Services-Direct Damage, CP 04 17	180	(1)
Ordinance or Law Coverage, CP 04 05	180	(2)
Outdoor Trees, Shrubs and Plants, CP 14 30	182	(1)
Outside Signs, CP 14 40	182	(1)
Peak Season Limit of Insurance, CP 12 30	183	(1)
Pier and Wharf Additional Covered Causes of Loss, CP 10 70	184	(1)
Pollutant Cleanup & Removal Additional Aggregate Limit of Insurance, CP 04 07	184	(1)
Protective Safeguards, IL 04 15	185	(1)
Radio or Television Antennas, CP 14 50	186	(1)
Radioactive Contamination, CP 10 37	186	(1)
Report of Values, CP 13 60, and Supplemental Report of Values, CP 13 61	187	(1)
Spoilage Coverage, CP 04 40	187	(1)
Sprinkler Leakage Exclusion, CP 10 56	188	(1)
Sprinkler Leakage-Earthquake Extension, CP 10 39	188	(1)
Storage or Repairs Limited Liability, CP 99 42	188	(1)
Tentative Rates, CP 99 93	189	(1)
Theft Exclusion, CP 10 33	189	(1)
Utility Services - Direct Damage, CP 04 17	189	(1)
Vacancy Changes, CP 04 60	189	(1)
Vacancy Permit, CP 04 50	190	(1)
Value Reporting Form, CP 13 10	190	(1)
Vandalism Exclusion, CP 10 55	191	(1)
Watercraft Exclusion, CP 10 35	191	(1)
Windstorm or Hail Percentage Deductible, CP 03 21	191	(1)
Windstorm or Hail Exclusion-Direct Damage, CP 10 53	192	(1)
Windstorm or Hail Exclusion, CP 10 54	192	(1)
Your Business Personal Property-Separation of Coverage, CP 19 10	193	(2)
The Commercial Properties Program of American Association of Insurance Services (AAIS)	195	(14)
Building and Personal Property Coverage Part	196	(1)
Covered Property	196	(1)
Property Excluded and Limitations	197	(1)
Additional Coverages	198	(1)
Supplemental Coverages	198	(2)
What Must Be Done in Case of Loss	200	(1)
Valuation	201	(1)
How Much We Pay	201	(1)
Loss Payment	202	(1)
Other Conditions	203	(1)
Special Causes of Loss Form	204	(1)
Additional Property Excluded and Limitations	205	(1)
Additional Coverages	206	(1)
Other Coverage Parts	206	(1)
Endorsements	207	(2)
E-Issues under the Commercial Property Policy	209	(8)
What Today's Businesses Face	209	(1)
Insuring Intangible Assets	210	(2)
What Current Policies Say	212	(1)
Newly Developed Policies	213	(4)
Specimen Forms	217	(86)
Building and Personal Property Coverage Form	218	(13)
Condominium Association Coverage Form	231	(12)
Condominium Commercial Unit-Owners Coverage From	243	(10)
Builders Risk Coverage Form	253	(7)
Liability Coverage Form	260	(3)
Leasehold Interest Coverage Form	263	(4)
Mortgageholders Errors and Omissions Coverage Form	267	(10)
Tobacco Sales Warehouses Coverage Form	277	(5)
Commercial Property Conditions	282	(2)
Causes of Loss - Basic Form	284	(4)
Causes of Loss - Broad Form	288	(6)
Causes of Loss - Special Form	294	(7)
Common Policy Conditions	301	(2)
Index	303