Commercial Property Insurance

Transcription

1 Commercial Property Insurance Insurance Companies: Alberta School Boards Insurance Exchange Subscribing Insurers Insuring Agreement The Insurer agrees to pay the Insured named on the Coverage Summary for direct loss to the extent provided by the limits, forms and endorsements, for the Policy Period. Property Insurance: Subject to the limits stated on the property schedules provided by each member, coverage is provided for Property of Every Description, as defined in the Commercial Building, Equipment and Stock (Broad Form), including Mobile Equipment / Miscellaneous Articles. Other coverages, limits, terms and conditions as per insuring policy wording. Limits: $100,000,000 maximum any one loss or series of losses arising out of one occurrence for all insured coverages Subject to: Limit of Liability Clause 150% Replacement Cost (excluding Stock) Extension By-Laws Extension 60 days cancellation except for non-payment of premium Deletion of Same Site Restriction Terrorism Exclusion Biological or Chemical Materials Exclusion Asbestos Endorsement Perils Insured: Deductibles: All Risks of direct physical loss or damage, subject to limits, terms and conditions of the Subscribing Insurers policy wording. $5,000 each claim except $5,000 sewer backup $5,000 miscellaneous equipment $25,000 flood 3% or $100,000 earthquake, whichever is greater $1,000 with respect to Certificates ALBESC1 and ASEBP01 only, each claim, except for flood, earthquake and sewer backup extensions

2 Property Insured Buildings, equipment, stock, contents, and property of every description, while at locations you have listed on the schedule, up to the limit shown for that location. If listed on the schedule, contents at a location that is not owned or rented can be covered for the amount shown, but not while in transit. If a new location is purchased or rented, coverage will automatically be added for the value of buildings and contents to a maximum combined limit of $3,000,000, for up to 30 days. If you haven t advised us to add the new location and contents to your schedule during this time, coverage will cease after 30 days, or at policy expiry, whichever occurs first. Equipment and stock are covered while being transported within the territorial limits of Canada and the United States of America, to a maximum value of $250,000. You are required to value your property at full replacement cost value, or coverage could be limited in the event of a loss. If you don t value your property for the full amount, in the event of loss of the entire location, there would not be enough insurance to rebuild and replace the contents. The Margin Clause can provide a cushion to rapidly increasing property values. It will limit the loss payable to a percentage (e.g., 120%) of the value reported at any location or structure. Co-Insurance If you suffer a partial loss to insured property that is greater than 5% (minimum $10,000) of the total value of that location, the co-insurance clause applies. The co-insurance clause requires that you insure your property to replacement cost value, or you pay for a portion of your own loss by the same percentage that you are underinsured. Gross Rentals $150,000 Limit Gross Rentals is the money paid or payable to you by tenants for the rental of your premises. In the event of a claim, you may also suffer a reduction in gross rentals and an increase in the cost of working. This extension covers the amount by which your rents fall short of the usual amount, based on what you made in the previous year, and adjusted for trends and changes. It also covers the additional costs you incur to avoid or diminish the loss of gross rentals, up to the amount saved, and less any costs you don t have because the premises were not rented during that time.

3 Professional Fees $250,000 Limit In the event of a claim, you are required to bear the costs in proving the amount of the loss. This extension covers the costs of specified professionals such as auditors, accountants and engineers who you use to prepare claims information as required. Valuable Papers $500,000 Limit Valuable papers are written, printed or otherwise inscribed documents and records, including books, maps, films, drawings, abstracts, deeds, mortgages and manuscripts, but does not mean money or securities. This coverage applies to valuable papers only while they are at the premises, and, if not in actual use or premises are not open for business, kept in appropriate filing containers. Extra Expense $2,000,000 Limit Direct Damage Insurance pays the cost of any claim to your buildings and contents, but while the damage is being repaired, which can take several weeks or even months, you may have additional expenses above normal to keep operations ongoing. Extra Expense coverage will respond to cover these extra costs. Expenses covered include temporary moving costs, telephone, advertising and rentals. The insurers will not pay more in extra expenses than you save in income by reducing your recovery time. Debris Removal $1,000,000 Limit This provision provides coverage for the cost of removal of debris after a fire to your property. Coverage also extends to include costs of removal of property that is not yours, but which has been blown onto the premises by windstorm. Any costs or expenses due to pollutants are not covered. Fire Department Services Charges $150,000 Limit Coverage is provided to pay sums billed to you where a fire department is called to save or protect your property from loss by fire.

4 By Laws The standard policy excludes payment for increased costs of construction due to changes in bylaws. This insurance extends coverage, without increasing the building limit, to pay for: - loss due to demolition of any undamaged portion of the building - costs of demolishing any undamaged portion of the building and clearing the site - additional costs to comply with current bylaws - costs due to additional time required to rebuild according to bylaws You need to add these costs to your building value to make sure you have sufficient limits if you suffer a loss. Miscellaneous Articles As per Schedule on file with Insurers Additions, Alterations, Repairs $500,000 Limit You are allowed to make additions, alterations or repairs, or construction or renovation projects to a maximum of $500,000, and can keep and use articles, materials and supplies as usually required to do this. Property Protection Systems You must notify the insurer immediately as soon as you become aware of any interruption to, or flaw or defect, affecting the operation of any sprinkler, fire extinguishing or detection system, or intrusion detection system. You must also notify the insurer of any cancellation or non-renewal of monitoring or maintenance contracts, or of suspension of police response, relating to these systems. Key Coverage Points Coverage is for direct damage caused by the perils insured against only. Coverage is provided only for losses that occur during the policy period. Insurers have the right and duty to defend any action. Insured persons and organizations have the obligation to assist and cooperate with the insurers in the settling and enforcing the coverage. Insurers reserve the right to (i) investigate any claim and (ii) settle any claim or action at its discretion.

5 Key Exclusions Property Excluded There is no coverage for loss or damage caused directly or indirectly to: - Sewers, drains and watermains located outside the property line - Property at locations which you know are vacant, unoccupied or shut down for more than ninety (90) consecutive days. Buildings which are closed for normal school break periods are not considered vacant or unoccupied. - Electrical devices, appliances or wiring caused by electricity, including arcing this is covered by Boiler/Equipment Breakdown policy. Damage caused by fire or explosion which results from damage caused by electricity is covered. Damage caused by lightning is covered. - Outside trees, shrubs, flowers - Money, bullion, precious metals, stamps, tickets - Any type of damage to automobiles, watercraft, aircraft - Furs, jewellery, unless under $10,000 and caused by a named peril - Property illegally acquired, kept, stored or transported - Any property covered or which should be covered under a boiler and machinery form of insurance Perils Excluded There is no coverage for loss or damage caused directly or indirectly by: - Seepage, leakage or influx of water through basement walls, doors, windows or other openings; - Centrifugal force, mechanical or electrical breakdown or derangement; unless it causes fire, then only for damage caused by the fire; - Dampness or dryness of atmosphere, changes in temperature, freezing, heating, rust or corrosion, marring, scratching. Damage to pipes caused by freezing is covered; - Smoke from agricultural smudging or industrial operations; - Rodents, insects or vermin; - Delay, loss of market, loss of use; - War, invasion, hostilities, civil war, rebellion, insurrection; - Any type of Nuclear incident; - Infidelity or dishonesty by the insured, employees or agents; - To buildings by snowslide, landslide, subsidence or other earth movement; - Explosion, collapse, rupture, bursting, etc of any property which should be covered under a boiler and machinery form of insurance; - Wear, tear, gradual deterioration, hidden defect or vice, cost of making good faulty or improper materials or workmanship or design; - Loss to equipment or stock while being worked on because of the work you performed on it; - Pollution and any expense related to it; - Data or loss caused by data problem; - Fungi and fungal derivatives and any expense related to it.

6 Extensions of Coverage provide coverage for additional types of losses, but only up to any sub-limit shown, and do not increase the total amount of insurance you have at that location. - Removal if you have to remove some property from the location to prevent it from being damaged or further damaged, for up to 120 days, a proportion of the insurance value goes with it. If the policy expires in the meantime, coverage ceases. - Removal of Debris Up to 25% of the loss value is available to remove debris caused by the insured loss, from your premises. If a windstorm blows debris from elsewhere onto your property, the expense to remove the debris is covered. Any costs or expenses due to pollutants are not covered. - Personal property of students, officers and employees can be covered to a maximum of $2,500 any one such person, if you are obligated to insure it, or are liable for its loss. Coverage applies only at a location listed on the schedule and any values are included in the limit of insurance at that location. - Building Damage by Theft (except by fire) if a building you do not insure (i.e. you rent a portion of the premises) is damaged by theft or attempted theft, or vandalism or malicious acts during such theft or attempted theft, and you are legally liable for the damage, this can be covered to a maximum of $25,000 any one loss. Glass and lettering or ornamentation is not covered. - Growing Plants, Trees, Shrubs or Flowers in the Open if damage is caused directly by Named Perils (except Windstorm or Hail), or caused by theft or attempted theft, this can be covered to a maximum of $50,000, limited to $2,500 for each growing plant, tree, shrub or flower in the open. Any debris removal required is included in the limit. Please note this is a coverage summary only. The policy may contain limits, warranties and exclusions that will limit the coverage available under the policy. Please refer to the actual contract of insurance for complete terms and conditions.