Table of Contents Introduction: The Building and Personal Property Coverage Form CP 00 10...1 Property Coverage Forms...2 ISO Rules...3 Underwriting...5 The National Underwriter Company Coverage Guides...6 Chapter 1: The Insuring Agreement; Covered and Not Covered Property...7 Section A. Coverage...7 Section A.1. Covered Property...9 Section A.2. Property Not Covered...26 Chapter 2: Additional Coverages, Coverage Extensions, and Optional Coverages...35 Section 4. Additional Coverages...36 Section 5. Coverage Extensions...43 Optional Coverages...50 Chapter 3: Covered Causes of Loss Named Perils Forms...57 CP 10 10 Causes of Loss Basic Form...58 CP 10 20 Broad Form Causes of Loss...69 Exclusions that Apply to Both Named Perils Causes of Loss Forms...72 Subsection B.2. Exclusions...80 Special Exclusions...81 Additional Coverages...81 Chapter 4: Special Covered Causes of Loss Form (CP 10 30)...85 Similarities to Named Perils Forms...86 Open Perils Exclusions Section B.2....87 Losses That Happen over Time Section 2.d.(1) to (7)...88 Other Exclusions...93 Concurrent Causation Exclusions...97 Special Exclusions...99 Limitations...100 Property Limited to Specified Causes of Loss...102
Additional Coverages and Limitation...104 Additional Coverage Extensions...104 Chapter 5: Conditions...107 Commercial Property General Conditions...107 Cancellation...107 Changes...108 Examination of Your Books and Records...108 Inspection and Surveys...108 Premiums...109 Transfer of Rights and Duties under This Policy...109 Commercial Property Policy Conditions...110 Concealment, Misrepresentation, or Fraud...110 Control of Property...111 Insurance under Two or More Coverages...112 Legal Action against Us...112 Liberalization...112 No Benefit to Bailee...112 Other Insurance...113 Policy Period, Coverage Territory...113 Transfer of Rights of Recovery against Others to Us...113 Other Relevant Provisions of the Commercial Property Policy...114 Limits of Insurance...114 Deductible...114 Loss Conditions...117 Abandonment and Appraisal...117 The Insured's Duties in the Event of Loss...119 Loss Payment...121 Actual Cash Value Defined...122 Valuing Business Personal Property...123 Recovered Property...124 Vacancy...124 Valuation...125 Additional Conditions...127 Coinsurance...127 Mortgageholders...128 Chapter 6: Builders Risk...131 ISO Eligibility and Rules...132 Covered Property...134 Property Not Covered...135 Covered Causes of Loss...136 Additional Coverages...136 Coverage Extensions...136
Trees, Shrubs, and Plants...137 Limits of Insurance...137 Deductible...137 Loss Conditions...137 Additional Conditions...138 Builders Risk Coverage Options...140 Building Renovations...140 Builders' Risk Reporting Form...140 Separate or Subcontractors Interest...141 Collapse during Construction...141 Theft of Building Materials, Fixtures, Machinery, Equipment...141 Building Materials and Supplies of Others...142 Chapter 7: Business Income Coverage Forms...145 Coverage for Business Income...146 When Coverage Applies...147 Extra Expense...148 Extended Loss after Operations Resume...148 Blanket Coverage...149 ISO Simplified Business Income Program...149 Extra Expense...153 Covered Causes of Loss...153 Exclusions and Limitations...154 Additional Limitation...156 Additional Coverages...157 Civil Authority...157 Alterations and New Buildings...160 Extended Business Income...161 Interruption of Computer Operations...161 Expense to Reduce Loss...162 Coverage Extension...163 Limits of Insurance...164 Loss Conditions...164 Loss Determination...166 Other Loss Conditions...167 Coinsurance...168 Optional Coverages...169 Maximum Period of Indemnity...169 Monthly Limit of Indemnity...169 Agreed Value...170 Extended Period of Indemnity...171 Extra Expense Insurance...172 Insured May Need Both...173 Extra Expense Coverage Form, CP 00 50...173 Causes of Loss...175
Additional Limitation Interruption of Computer Operations...175 Coverage Extension and Additions...175 Limits...177 Other Insurance...178 Other Exposures...178 Ingress and Egress...178 Flood...179 Absence of Profits...179 Chapter 8: Other Coverage Forms...183 Leasehold Interest Coverage Form, CP 00 60...183 Mortgageholders Errors and Omissions Coverage Form, CP 00 70...189 Tobacco Sales Warehouses Coverage Form, CP 00 80...203 Condominium Associations Coverage Form, CP 00 17...206 Commercial Condominium Unit-Owners Coverage Form, CP 00 18...210 Legal Liability Coverage Form, CP 00 40...211 Additional Conditions...219 Chapter 9: Commercial Property Endorsements...221 Additional Building Property, CP 14 15...221 Additional Covered Property, CP 14 10...221 Additional Exclusions, CP 10 50...222 Additional Insured and Loss Payee (Building Owner) CP 12 18 and CP 12 19...222 Additional Locations Special Coinsurance Provisions, CP 13 20...222 Additional Property Not Covered, CP 14 20...223 Agricultural Products Storage, CP 13 30...225 Alcoholic Beverage Tax Exclusion, CP 99 10...226 Blanket Insurance Margin Clause Option, CP 12 32...226 Brands and Labels, CP 04 01...227 Broken or Cracked Glass Exclusion Form, CP 10 52...227 Building Glass Under Tenant's Policy, CP 14 70...227 Business Income Changes Beginning of the Period of Restoration, CP 15 56...228 Business Income Discretionary Payroll Expense, CP 15 04...228 Business Income Landlord as Additional Insured (Rental Value), CP 15 03...229 Business Income Ordinary Payroll Limitation or Exclusion, CP 15 10...229 Burglary and Robbery Protective Safeguards, CP 12 11...229 Cap on Losses from Certified Acts Of Terrorism, IL 09 52...230 Changes Electronic Data, CP 01 70...231 Changes Fungus, Wet Rot, Dry Rot and Bacteria, CP 01 71...231 Civil Authority Change(s), CP 15 32...232 Condominium Commercial Unit Owners Optional Coverages, CP 04 18...232 Contributing Insurance, CP 99 20...233 Debris Removal Additional Insurance, CP 04 15...233 Deductible Limitation, CP 03 10...233
Dependent Properties, CP 15 08...233 Disclosure Pursuant to Terrorism Risk Insurance Act, IL 09 85...234 Distilled Spirits and Wines Market Value, CP 99 05...234 Earthquake and Volcanic Eruption Endorsement Form, CP 10 40...235 Earthquake Inception Extension, CP 10 41...236 Electrical Apparatus, CP 04 10...236 Electronic Commerce (E-Commerce), CP 04 30...237 Flood Coverage Endorsement, CP 10 65...239 Functional Building Valuation, CP 04 38...240 Functional Personal Property Valuation Other Than Stock, CP 04 39...242 Grain Properties Explosion Limitation, CP 10 51...243 Household Personal Property Coverage, CP 99 92...243 Leased Property, CP 14 60...244 Legal Liability Coverage Schedule, CP DS 05...244 Loss Payable Provisions, CP 12 18...244 Manufacturers Consequential Loss Assumption, CP 99 02...245 Manufacturer's Selling Price (Finished Stock Only), CP 99 30...246 Market Value Stock, CP 99 31...246 Molten Material, CP 10 60...246 Multiple Deductible, CP 03 20...246 Multiple Location/Premium and Dispersion Credit Application, CP 13 70...247 Newly Acquired/Constructed Property-Increased Limit, CP 04 25...247 Off-Premises Services - Direct Damage, CP 04 17...247 Ordinance or Law Coverage, CP 04 05...248 Outdoor Trees, Shrubs and Plants, CP 14 30...249 Outside Signs, CP 14 40...250 Peak Season Limit of Insurance, CP 12 30...250 Pier and Wharf Additional Covered Causes of Loss, CP 10 70...251 Pollutant Cleanup & Removal Additional Aggregate Limit of Insurance, CP 04 07...251 Protective Safeguards, IL 04 15...252 Radio or Television Antennas, CP 14 50...253 Radioactive Contamination, CP 10 37...253 Report of Values, CP 13 60, and Supplemental Report of Values, CP 13 61...254 Spoilage Coverage, CP 04 40...254 Sprinkler Leakage Exclusion, CP 10 56...255 Sprinkler Leakage-Earthquake Extension, CP 10 39...256 Storage or Repairs Limited Liability, CP 99 42...256 Tentative Rates, CP 99 93...256 Terrorism Endorsements...257 Theft Exclusion, CP 10 33...257 Utility Services Direct Damage, CP 04 17...257 Vacancy Changes, CP 04 60...257 Vacancy Permit, CP 04 50...258 Value Reporting Form, CP 13 10...258 Vandalism Exclusion, CP 10 55...259
Water Exclusion, CP 10 32...259 Watercraft Exclusion, CP 10 35...260 Windstorm or Hail Percentage Deductible, CP 03 21...260 Windstorm or Hail Exclusion - Direct Damage, CP 10 53...260 Windstorm or Hail Exclusion, CP 10 54...261 Your Business Personal Property Separation of Coverage, CP 19 10...261 Chapter 10: The Commercial Properties Program of American Association of Insurance Services (AAIS)...263 Building and Personal Property Coverage Part...264 Supplemental Coverages...267 Special Causes of Loss Form...274 Other Coverage Parts...277 Endorsements...278 Chapter 11: E-issues under the Commercial Property Policy...283 Intangible Property...283 Insuring Intangible Assets...285 The Meaning of Property...287 E-Property Policies...288 Newly Developed Policies...287 Chapter 12: Miscellaneous Commercial Property Coverage Issues...291 ISO Interline Terrorism Endorsements...291 Catastrophic Weather Loss Claims Issues...296 Wind, Water, and Wind-Driven Water...297 Wind Percentage Deductible...299 Chinese Drywall...303 Emerging "Green" Coverage Issues...304 Specimen Forms...307 Building and Personal Property Coverage Form CP 00 10 06 07...309 Condominium Association Coverage Form CP 00 17 06 07...325 Condominium Commercial Unit-Owners Coverage Form CP 00 18 06 07...339 Builders Risk Coverage Form CP 00 20 06 07...351 Business Income (and Extra Expense) Coverage Form CP 00 30 06 07...359 Legal Liability Coverage Form CP 00 40 06 07...369 Leasehold Interest Coverage Form CP 00 60 06 95...373 Mortgageholders Errors and Omissions Coverage Form CP 00 70 06 07...377 Tobacco Sales Warehouses Coverage Form CP 00 80 06 07...389 Commercial Property Conditions CP 00 90 07 88...395 Causes of Loss Basic Form CP 10 10 06 07...397
Causes of Loss Broad Form CP 10 20 06 07...403 Causes of Loss Special Form CP 10 30 06 07...411 Common Policy Conditions IL 00 17 11 98...421 Index...423