Commercial Property Insurance

Question 1

Can be attatched to a cpp

Answer 1

Commercial general liability
Commercial auto
Farm property and liability

Question 2

The common policy declarations (cover page)

Answer 2

• policy #
• name/adress/phone number of insurer
• name/adress/phone number of insured
• first name insured & additional insureds
• policy period
• coverage parts that are/ arent included
• premuim for each / total policy premuim
• prop specifics, adresses / descriptions of buildings and prop for which coverage is provided
• limits of insurance(per occurence & aggregate) & deductibles (usually per occurence)

Question 3

Interline endorsements

Answer 3

These coordinate among coverage parts to prevent redundancy

Question 4

One or more coverage parts

Answer 4

While “one or more coverage parts “ is the language used by ISO on the standardized form , a policy is not a package policy unless it has 2 or more coverage parts

Question 5

Causes of loss forms

Answer 5

Three main causes of loss forms
Basic
Broad
Special

Question 6

Broad form insures against basic perils pluss three additional perils

Answer 6

Falling objects
Weight of ice , snow and sleet
Water damage cause by accidenta discharge as direct result of the breaking apart or cracking of a plumbing , heating, air conditioning or other system

Question 7

Special form

Answer 7

This form provides open peril‘s coverage, except as specifically limited or excluded. Includes extended coverage for:

• in transit personal property to which coverage applies up to $5000
• cost to tear out and replace any part of the building to repair damage due to covered water or other liquid, powder, or molten material loss
• expenses to put up temporary plates or to board up openings, as well as the removal or replacement of obstructions other than the window displays.

Question 8

Earthquake form

Answer 8

Any shock or after shock occurring within a 168 hour period after the initial earthquake or eruption is considered part of that earthquake or eruption

Question 9

Building personal prop coverage form

Answer 9

Policy pays direct physical loss of or damage to covered property at the premises, caused by or resulting from any covered cause of loss

Question 10

Business personal prop

Answer 10

• Furniture and fixtures such as office furniture and shelving
• machinery and equipment, such as refrigerators and telephone systems
• stock, meaning merchandise held in storage or for sale, raw materials, and supplies used for packaging or shipping such stock
• any other personal property owned by the insured that is used in the business either in or on the building within 100 feet of the premises
• tenants improvements or bettermans that are not legally removal at the end of the lease, such as partitions, store fronts, etc.
• leased personal prop for which the named insured has contractual obligation to insure, unless insured elsewhere on the policy

Question 11

Building prop loss debris removal

Answer 11

Will pay up two $10,000 in debris removal in additional policy limits

Question 12

Coverage extensions

Answer 12

1) newly accquired or constructed prop(250,000 buildings or 100,000 bpp)
2) personal effects and prop of others (2500$)
3) valuable papers and records ( 2500$)
4) prop off premises (10,000$)
5) outdoor prop (1000$)
Sublimit of 250$ for trees shrubs or plants
6) non owned detached trailers

Question 13

Vacancy condition

Answer 13

70% total square footage must be rented or it is considered vacant

Question 14

Coinsurance on a commercial prop policy may be applied using:

Answer 14

The fair market to determine actual cash value of commercial building

Question 15

Insured may purchase optional replacement cost coverage to replace the actual cash value method of valuation of this coverage form. The optional coverage does not apply to:

Answer 15

• Personal property of others
• Contents of residence
• works of art, antiques, rare articles
• stocks held for sale, unless the stock option is shown in the declarations