Section 2 Flashcards
What are the 8 major exclusions on a commercial property form?
Ordinance and Law
Earth Movement
Governmental Action
Nuclear Action
Utility Services
War and Military Action
Water
Fungus
What types of losses fall under ordinance and law coverage?
Loss of value to the undamaged portion of the building requiring demolition of the undamaged portion
Cost of demolition and debris removal of the undamaged building
Increased cost of construction to comply with current building ordinances
What is coverage A in ordinance and law coverage?
Covers the loss of value to the undamaged portion of the building
What is coverage B in ordinance and law coverage?
Covers the cost for demolition and debris removal on the undamaged portion of the building
What is coverage C in ordinance and law coverage?
Pays for the increased cost of construction to repair or replace the building to comply with the current ordinances in place
What exceptions are there to the unendorsed earth movement exclusion
Sinkhole collapse, ensuing fire or explosion
What are examples of concurrent causation exclusions?
Delay/loss of use of market
Smoke
Freezing of plumbing
Explosion of steam apparatus
Typical open peril exclusions
Neglect to save property
Rain/snow/sleet to personal property in the open
What does collapse coverage include?
Covers abrupt collapse of a building from specific causes and damage to personal property within the building that is a result of abrupt collapse
What types of collapse are covered?
Building decay that’s hidden from view (unless known prior)
Inspector vermin damage hidden from view
Use of defective material if collapse occurs during the course of construction
Use of defective material after construction is complete only if decay/insects, breakage of glass, weight of people, or weight of rain on the roof
How can theft of property in transit be covered?
If there are visible marks of forced entry into a locked car
