Commercial Property

Property Covered:

  • Building
  • completed additions;
  • fixtures, including outdoor fixtures;
  • permanently installed machinery and equipment;
  • personal property used to maintain or service the premises, such as fire extinguishers;
  • outdoor furniture, floor coverings, and certain appliances; and
  • if not otherwise covered, additions under construction and alterations or repairs to the building,
    including materials, equipment, supplies, and temporary structures within 100 feet of the
    described premises.
  • Business personal property
    is covered while it is in the building, in the open, or in a vehicle within 100
    feet of the premises. It includes:
    • furniture (desks, chairs, file cabinets, etc.);
    • fixtures (lights, permanent shelves, bathroom fixtures, etc.);
    • machinery;
    • equipment;
    • stock;
    • the value of labor, parts, or services on the personal property of others (e.g., the business has invested money and labor in a tractor it is repairing for a farm customer);
    • if the insured is a tenant, the improvements and betterments added by the insured; (Tenants’ improvements and betterments are valued at actual cash value)
    • leased personal property (e.g., a copy machine) that the insured has a contractual responsibility
      to insure, unless it’s otherwise covered.

Exclusions:

  • Money, accounts, food stamps, notes, securities, and related property (lottery tickets held for sale
    are not securities and are covered)
  • Animals, unless they are boarded or held for sale
  • Autos for sale
  • Bridges, roads, walks, patios, and other paved surfaces
  • Contraband (property being illegally transported or traded)
  • Cost of excavations and other ground preparation
  • Foundations of buildings, structures, machinery, or boilers if their foundation is below the
    basement level or below ground level if there is no basement
  • Land, water, growing crops, and lawns
  • Retaining walls that are not part of a building
    before
    underground pipes
  • Bulkheads, pilings, piers, wharves, and docks
  • Property covered under another policy in which it is more specifically described
  • Underground pipes, flues, and drains
  • The cost to replace or restore information contained in valuable papers or records, including
    those that exist as electronic data, except as provided in the coverage extensions
  • Vehicles, including watercraft and aircraft, that are licensed for use on public roads
  • The following property while outside of buildings, except as provided in the coverage extensions
    – Fences
    – Antennas (including satellite dishes)
    – Signs that are not attached to the building (attached signs are covered for $1,000)
    – Trees, shrubs, and plan

Additional:

Debris removal—remove debris of covered caused by a covered peril
• Up to 25% of the amount paid for direct loss to covered property plus the deductible
• Additional $10,000 if needed
• Property removal—30 days
• Fire department service charge—$1,000, no deductible
• Pollutant cleanup and removal—10,000 per policy period
• Electronic data $2,500 for all loss or damage sustained in any one policy year

Possible Additions: (Co-insurance 80%)

Newly acquired or constructed property
• $250,000—building
• $100,000—personal property
• Personal property of other—$2,500—not bailee
• Valuable papers and records—other than electronic data—up to $2,500
• Property off-premises—$10,000
• Outdoor property—fences, antennas, satellite dishes, trees, plants, and shrubs $1,000
• $250 limit applying to any one tree, plant, or shrub
• Nonowned detached trailers—$5,000

Conditions

loss payment, valuation, vacancy, mortgage holder, coinsurance

Special form:

Exclusions:

  • wear and tear;
  • rust, corrosion, fungus, decay, deterioration, and hidden or latent defects;
  • smog;
  • pollutants (unless the release, discharge, or dispersal is caused by a specified cause of loss);
  • settling, cracking, shrinking, or expansion;
  • damage caused by insects, birds, rodents, or other animals;
  • mechanical breakdown;
  • explosion of steam boilers, pipes, and engines;
  • dishonest or criminal acts of the insured or the insured’s employees;
  • voluntary parting with property if induced to do so by fraud or a trick;
  • rain, snow, ice, or sleet damage to personal property that is not in a building;
  • loss resulting from acts or decisions, or the failure to act or decide;
  • collapse (other than that specifically included under the collapse additional coverage); and
  • faulty planning, development, design, specifications, workmanship, or repair

Endorsements and Forms:

Builders Risk

Condominium

Business Income

Extra Expense and Legal Liability

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Value Reporting

Ordinance or Law

Spoilage

Causes of Loss – Earthquaek and Volcanic Eruption