Unit 11 Property Commercial Property Insurance Activities ⭐

Commercial property insurance covers

Buildings and Business Personal Property

Four main parts of a Commercial Property Policy

Declarations, Conditions, Property Form, Cause of Loss Form

Three Commercial Property Cause of Loss Forms

Basic, Broad, Special

Condition stating neglect beyond the insured's control will not affect coverage

Control of Property

Time allowed to sue the insurer under Commercial Property

2 Years

Other insurance written on the same basis shares losses by

Pro Rata

Other insurance not written on the same basis applies as

Excess Insurance

Commercial Property Coverage Territory

United States, Puerto Rico, and Canada

Condition giving insurer subrogation rights

Transfer of Rights of Recovery Against Others

Intentional concealment or fraud

Voids Coverage

Bailee is not covered under the insured's property insurance

No Benefit to Bailee

Automatic broadening of coverage without additional premium

Liberalization

Liberalization period

45 Days

Coverage form insuring buildings and business personal property

Building and Personal Property Coverage Form

Building Coverage includes

Fixtures, Permanently Installed Machinery, Completed Additions

Business Personal Property includes

Furniture, Fixtures, Machinery, Equipment, and Stock

Business Personal Property is covered within

100 Feet of Premises

Tenant improvements and betterments are covered as

Business Personal Property

BPP Exclusions

Money, Accounts, Notes, and Securities, Land, Vehicles, Aircraft, and Watercraft, Fences, Trees, Shrubs, and Plants Outside Buildings

Coverage for removal of debris after a covered loss

Debris Removal

Maximum additional debris removal coverage

$25,000

Property removed from danger is covered for

30 Days

Fire Department Service Charge

$1,000

Pollutant Cleanup and Removal

$10,000 Per Policy Period

Electronic Data Coverage

$2,500 Per Policy Year

Coinsurance requirement for most extensions

80%

Newly acquired building extension

$250,000 for 30 Days

Newly acquired business personal property extension

$100,000 for 30 Days

Valuable Papers and Records extension

$2,500

Property Off Premises extension

$10,000

Outdoor Property extension

$1,000 Total; $250 Per Tree/Shrub

Nonowned Detached Trailer extension

$5,000

Proof of loss must be submitted within

60 Days if Requested

Insurer must state how loss will be settled within

30 Days After Sworn Proof of Loss

Most Commercial Property losses are settled on

Actual Cash Value

Losses under $2,500 may be settled on

Replacement Cost

Building vacant longer than 60 days loses coverage for

Vandalism, Theft, Glass Breakage, and Water Damage

All other covered vacancy losses are reduced by

15%

Mortgage holder cancellation notice for nonpayment

10 Days

Commercial Property coinsurance formula

Loss x (Did Carry / Should Carry)

Coverage for buildings under construction

Builders Risk

Builders Risk covers

materials and equipment within 100 ft, building foundation