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Real property (realty)
tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land
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Personal property
all tangible or intangible property that is not real property
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Commercial property coverage part
commercial package policy (CPP) coverage component that provides a broad range of coverages to "middle-market" or larger firms to insure buildings and business personal property
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Commercial package policy (CPP)
Policy that covers two or more lines of business by combining ISO's commercial lines coverage parts
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Monoline policy
Policy that covers only one line of business
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Package modification factors
factors that are applied to the regular policy premiums for certain coverage parts of a CPP that includes both property and liability coverages, resulting in premium discounts for those coverage parts
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Commercial property declarations page
a required commercial property coverage part component that provides basic information about the policyholder and the insurance provided
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Commercial property coverage form
a commercial property coverage part component that can be any of several commercial property forms containing an insuring agreement and related provisions
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Causes of loss form
a required component of the commercial property coverage part that specifies perils covered
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Commercial property Conditions
a required component of the commercial property coverage part that contains conditions applicable to all commercial property coverage forms
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Improvements and betterments
alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them
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Describe
commercial property insurance in terms if these elements: the major categories
of loss exposures that can be covered and the components of a commercial property
coverage part.
- The
- major categories of loss exposures that can be covered in commercial property
- insurance are: types of property, causes of loss to property, and financial
- consequences of property losses. The components of commercial property loss
- exposures are: commercial, property declarations, one or more commercial
- property coverage forms, one or more causes of loss forms, commercial property
- conditions, and any applicable endorsements.
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Determine
whether a described item of property qualifies as Covered Property under one or
more of these categories in the Building and Personal Property Coverage Form:
Building, Your Business Personal Property, and Personal Property of Others.
- An
- item will be covered under the Building and Personal Property Coverage Form if
- the building is listed and described in the declarations, completed additions
- to covered buildings, fixtures (including outdoor fixtures), permanently
- installed machinery and equipment, and personal property owned by the insured
- and used to maintain or service the building and its premise(s). An item will
- be covered under the Your Business Personal Property section if the personal
- property is owned by the insured and used in the insured’s business. An item
- will be covered under the Personal Property of Others section of the form if
- and only if the property is in the care, custody, control, or in or on the building
- of the insured that is described in the declarations or within 100 feet of the
- described building.
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Determine
which of the additional coverages and coverage extensions of the Building and
Personal Property Coverage Form apply to a described loss.
- The additional coverages that appear in the BPP are: debris removal, preservation
- of property, fire department service charge, pollutant cleanup and removal,
- increased cost of construction, and electronic data. The coverage extensions of
- the BPP if and only if 80% of the coinsurance or a value reporting period
- symbol is shown in the declarations and the coverage extensions are: newly acquired
- or constructed property, personal effects and property of others, valuable
- papers and records (other than electronic data), property off-premises, outdoor
- property, and non-owned detached trailers.
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Determine
whether the cause of a described loss is a covered cause of loss under either
the Cause of Loss-Basic Form or the Causes of Loss-Broad Form.
- The
- Basic Form and Broad Form differ in three areas and these are: covered causes
- of loss, exclusions, and additional coverages. The Broad Form covers all the
- perils that are named in the Basic Form plus three additional perils: falling
- objects, weight of ice, snow, or sleet, and water damage. The Broad Form also
- provides additional coverage for collapse.
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Determine
whether the cause of a described loss is a Covered Cause of Loss under the
Causes of Loss-Special Form.
- The Special Form covers all losses that would be covered in the Basic and Broad
- Forms. Additionally the Special Form covers theft of covered property under a
- wide variety of circumstances, with some exclusions and limitations (Basic and
- Broad Forms only cover theft in the event of looting in a riot or civil
- commotion). The Special Form also covers losses that the insured may have not
- anticipated except those specifically excluded. The Special Form shifts the “burden
- of proof” from the insured to the insurer (in Basic and Broad Forms, the
- insured would have to prove that the loss was caused by a covered loss).
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