Building and personal property coverage form Quizlet
covers fire, lightning, windstorm, hail, aircraft, riot or civil commotion, vehicles, explosion, smoke, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. It also provides limited coverage for fungus, wet rot, dry rot, and bacteria. The limit of insurance is up to $15,000 for all losses occurring in a 12-month period that begins with the policy to prevent redundancy. Coverage for water damage is provided when accidental discharge or leakage of water or steam occurs as the direct result of the breaking apart or cracking of a plumbing, heating, air conditioning, or other system or or appliance that is located on the described premises and contains water or steam. Coverage is NOT provided for discharge or leakage from an automatic sprinkler leakage system, a sump or related equipment, roof drains, gutters, downspouts, etc. Neither is coverage provided if continuous or repeated seepage or leakage of water takes place over a period of 14 or more days. Plumbing is not covered. The Causes of Loss- Broad Form contains the same exclusions, additional coverages, and limitation found in the basic form; however, it also includes the Additional Coverage- Collapse. The Limitations section of the special causes of loss form contains language not found in the basic and broad forms, such as; a.) Completed additions; outdoor fixtures; and permanently installed fixtures, machinery, and equipment. For example, a print shop that owns four commercial printers that are affixed to the
cement floor would insure the printers as building items rather than items of business personal property. Although most classes of property may be insured on the Building and Personal property Coverage Form, certain classes
of property are not covered. They are either uninsurable or must be insured separately. Types of property not covered on the Building and Personal Property Coverage Form include: *The foundations of buildings, structures, machinery, or boilers if the foundations are below the lowest basement floor or the surface of the ground if there is no basement. a.) The insured may extend a maximum amount of $1,000 to cover loss to outdoor fences, detached signs, antennas, trees, shrubs, and plants. A sublimit of of $250 applies to any one tree, shrub, or plant to any one tree, shrub, or plant. 1.) If, at the time of loss, the building where loss or damage occurs has been vacant for more than 60 consecutive days before the loss, there is no coverage for loss resulting from the following six perils: vandalism, sprinkler leakage, building glass breakage, water damage, theft or attempted theft, glass breakage, or water damage. For all other covered causes of loss, loss payment will be reduced by 15%. 2.) If the insured is a tenant, the portion of the building rented or leased to the insured is considered vacant if it doesn't contain enough business personal property to conduct customary operations. Buildings under construction or renovation are not considered vacant. 3.) If an insured desires coverage for vandalism, sprinkler leakage, building glass breakage, theft or attempted theft, and water damage for a building that remains vacant beyond the basic 60 days stated in the vacancy provision, it may request a vacancy permit endorsement to cover the excluded perils during a term of vacancy. This endorsement allows the 60- day Vacancy Condition to be waived for the "permit period." If the insurer doesn't agree to add the endorsement, the insured should purchase a specialty vacant property policy. In the event of a loss, the value of covered property will be determined as follows: The insured is required to insure all covered property to a percentage of its replacement value; failure to do so results in a penalty in the event of partial losses. The is 80%. Any applicable loss penalty is determined based on the percentage of insurance to value. For example, assume a building with a $100,000 loss. If the amount of insurance on the dwelling were $40,000 , the policy would only pay 50% of the $10,000 loss, or $5,000, before application of the deductible. Because the building is insured to one-half the amount required by the coinsurance clause ($80,000), the loss penalty will be 50%. The formula that is applied in the event of a partial loss is as follows: The policy will pay to each mortgage holder shown in the Declarations its share of a covered loss or damage, in order of precedence, as its interests may appear. Sets with similar terms |