Commercial Property

Question 1

What are the 3 types of personal property?

Answer 1

Building, Stock and Equipment

Question 2

What are the only two types of policies they can get?

Answer 2

Named perils and Broad Form

Question 3

What is included in Named Perils?

Answer 3

The coverages for named perils is the same as personal property, however, a few new or difference are here.

Explosion: of natural, coal, or manufactured gas & boilers and pressure vessels ≤ 15 PSI
Leakage from fire protective Equipment

Question 4

What is in Broad Form?

Answer 4

Broad form protects from all perils unless explicitly excluded.

Exampled would be:

Water damage due to freezing or rupturing of pipes. Excludes: flood, seepage, sewer-backup

Collapse of building: except due to earthquake or faulty/improper work/materials/design

All sources of smoke damage

Question 5

What is in the building clause?

Answer 5

Things that would be covered within the building clause are:

Materials for repair and maintenance
Fixed Structures
Permanent Fixtures
Additions and extensions
Decorative indoor plants

Question 6

How are premiums charged?

Answer 6

Total Rate (aka. fire rate + loading) x Building Value = Premium

Question 7

Stock Clauses

Answer 7

Merchandise usual to that type of business
Packaging and advertising materials
Similar property of others in care of insured

Question 8

Equipment Clause

Answer 8

contents usual to the business + similar property of others + tenant improvements