CH6 - Commercial Property Named Perils Form Flashcards
What are the named perils?
- fire or lightning
- explosion
- impact by aircraft, spacecraft, or land vehicle
- riot, vandalism, or malicious acts
- smoke
- leakage from fire protective equipment
- windstorm or hail
Under the Roadways and Walkways Exclusion, what is the cap on coverage?
Coverage is limited to the first $10,000 since exterior paved surfaces are not normally included in the value of a building. The limit can be increased upon request, and approval by the insurer.
Why is data and data problem excluded?
Due to the inherent nature of the internet in that it attracts viruses and hackers, data and data problems have been excluded. Loss caused directly by resultant fire, explosion, smoke, or leakage from fire protective equipment is not excluded.
What is terrorism excluded?
Due to the catastrophic possibilities of terrorism, it is excluded. Ensuing loss or damage, such as fire, will not be covered either unless the law requires it to be.
Why are fungi and spores excluded?
Direct or indirect loss or damage caused by fungi or spores is excluded because it is almost inevitable. It is hard to question the actual cause of the fungi or spores.
How are debris removal and windstorm debris removal different?
Debris removal applies to property damaged due to an insured peril. Windstorm debris removal applies to property damaged due to windstorm. The debris for the windstorm does not need to be insured property; it can be debris blown onto the premises by windstorm.
What is the amount payable under the debris removal extension?
The debris removal extension will not exceed 25% of the sum of the total amount payable for the loss and the amount of the applicable deductible. 25% x (amount of loss + deductible)
What is included in the Growing Plants, Trees, Shrubs or Flowers Outside Building extension?
This extension fills the gap for these items located outside the building, but loss by windstorm or hail is not covered. This is limited to a dollar amount per tree/shrub and has an aggregate dollar limited for any one occurrence.
What is the Permission clause?
The Permission clause grants the insured permission to make additions, alterations, or repairs and to do work and keep items usual and necessary to the insured’s business. This also acknowledges there may be other insurance in place. This also refers to potentially hazardous items that may normally be present on the premises - insurer bears the risk.
What is the Breach of Condition clause?
This helps the insured in that it maintains the policy if a breach was not responsible for a loss or it occurred in a part of the premises the insured did not control.
What is the Property Protection Systems clause?
This requires the insured to advise the insurer of:
- any impairment of extinguishing, detection or other protective systems
- the cancellation or non-renewal of any contract for monitoring or maintenance of such systems
- the suspension of police service in response to any of these systems
since these are material to the acceptance and rating of the risk.
What is the Premium Adjustment form?
This form allows the insured to file a summary of month-end stock values after the policy has expired. The actual premium for each location will be determined by the average of the declared values. The insurer will refund any excess premium paid up to 50% of the premium paid. Anya excess of declared values over amount of ins. will not be included. There is no deposit premium or discounted price.
What is the definition of additions and extensions?
This requires that additions and extensions be joined or connected with a building on the premises - something that was built after the building to which it is attached.
What are building fixtures and fittings?
These could be features that enhance the building, such as heating and cooling systems, automatic sprinkler systems, built-in shelving.
What are materials, equipment and supplies?
This refers to a variety of items, but could be pails, mops, rooms, ladders, utility carts.
