Flashcards in Ch 8 Commercial Package Coverages Deck (148)
How are the contents of a mono line policy different from a CPP?
The amount of coverage parts added.
Does commercial property coverage have its own dec page an conditions?
What are some of the commercial property forms available?
1) building and personal property
2) business income
3) extra expense
4) builders risk
5) condo association
6) condo commercial unit owners
7) legal liability
8) leaseholder interest
10) mortgageholders e&o11) tobacco sales warehouses
What are the two coverages of building and personal property?
B personal property
Does building coverage cover a $3000 sign not attached to the building?
No only covers up to $2500
What is considered business personal property?
Furniture, portable machinery, equipment, inventory, stock, personal property owned by the insured and used for business purposes.
How far away from a building is business personal property covered?
100 feet in the open or in a car.
What is the limit for personal property owned by others?
When is the only time animals are covered on business personal property?
When considered stock or inventory
What are the additional covered under personal property?
Preservation of property (30 days)
Fire dept charges ( $1000)
Pollutant cleanup and removal
How much is the maximum debris removal coverage?
< 25% of the amount paid for damage to property (includes deductible), plus an additional $10k if needed.
When are coverage extensions provided
When 80% coinsurance percentage is on dec page
When is a building considered vacant?
When 70% of units vacant
How many days are newly acquired buildings covered?
How much is covered for newly acquired buildings
$250k structure, $100k personal property
This coverage extension includes coverage to trees, shrubs, plants, fences, satellite dishes/antennas ($1000 max).
Which perils are outdoor property covered for?
FLARE fire, lightning, riot, explosion
What types of locations are covered for property off premises?
1) temporarily at location you do not own, lease or operate.
2) in storage of lease started after policy effective
3) at any fair, trade show, exhibition
What is the vacancy clause?
If vacant more than 60 days for following perils aren't paid;
Vandalism, sprinkler leakage, internal water damage, glass breakage, theft, attempt theft
Fore damage and other perils have coverage reduced by 15%.
What can be added to a policy to provide sprinkler leakage and vandalism coverage when a building is vacant over 60 days?
Building under construction are/are not considered vacant?
If am insured rents an office condo when is the building considered vacant?
When it no longer contains enough business personal property to conduct the customary operations of the insured tenant.
When an insured owns the building, when is it considered vacant.
At least 31% of the total square footage has to be used by the owner to conduct customary operations.
Of the insured has a 80% coinsurance clause and the replacement value is $100k, if the building suffers a $85k partial loss and the insured has maintained 80% insurance to value, what is paid?
$80k. Loss cannot exceed 80% of replacement cost.
This cause of loss form covers same perils as DP Basic (fire, lightning, extended coverages, vandalism, sprinkler leakage and sinkhole collapse. (Exclusions: glass, water damage, falling objects, weight of snow, ice, sleet, collapse)
Basic Cause of Loss
A property form which contains Basic form perils plus: glass breakage, damage weight of ice, etc.; falling objects; internal water damage ((discharge from appliance or bursting pipes). FLOOD NOT COCERR Collapse is an additional coverage.
Broad cause of loss.
This cause of loss form is all-risk. Contains all broad form perils and any perils that aren't excluded. Even theft.
Excluded perils: earth movement, war, nuclear hazard, flood, sewer backup, drain backup, power failure off premises, ordinance or law, etc. SAME exclusions AS HO3
Special cause of loss
When an earthquake form is added what is the definition of a single occurrence?
168 hour period
What is the minimum earthquake deductible?