Commercial Property Policy -

Cause of Loss - Broad Form


The second of the three forms under which the Commercial Property
policy is written is the Broad Form.

The Broad Form policy covers all the causes of loss (perils) insured by
the Basic Form, discussed
here, and is identical with that policy on the
coverage afforded by those causes of loss.

In addition, the Broad Form adds coverage on the following causes of

Glass Breakage - While the Basic Form covers damage to glass which is
part of a building when caused by the perils insured under that policy
(except for vandalism), the Broad Form insures against breakage of
glass (which is part of a structure) from any cause.  The maximum
payable in anyone occurrence is $500 with no more than $100 on any
single plate, pane, multiple plate insulating unit, radiant or solar heating
panel, jalousie, louver or shutter.

In addition, falling glass may cause serious and substantial damage to
other property. The breakage of glass under this form also covers the
damage that the falling glass inflicts on other property.

Specifically excluded from coverage is neon tubing attached to the
building. It also should be noted that there is no coverage for damage to
glass objects which are contained in a building but are not part of the

Falling Objects - While the Basic Form covers damage to insured property
by vehicles or aircraft making physical contact with the property, or by
objects falling therefrom, the Broad Form covers any damage by falling
objects except to personal property in the open, or to property within a
building unless the falling object has first damaged the wall or roof of the

Weight of Snow, Ice or Sleet - The Broad Form covers loss to insured
property by snow, ice or sleet except to gutters and downspouts or to
any property outside the building.

Water Damage - The policy covers loss due to the accidental discharge
of water or steam resulting from the breaking or cracking of any vessel
containing water or steam.

If the policy covers a building or structure, it also will pay the cost of
tearing out and replacing any part of the structure in order to repair the
damage to the system or appliance.

There is no coverage for losses which are caused by continuous
leakage or seepage which occurs over a period of 14 days or more, or
for losses caused by freezing unless the insured has done his or her
best to maintain the heat in the building, or has drained the water system
if the heat is not maintained.

While the policy pays for the loss caused by the leakage, it will not be
liable for the cost of repairs or replacement of the system itself.

Additional Coverage-Collapse - This coverage, formerly covered as a
peril insured against, is now considered under the Additional Coverage
Section-Collapse.  The Broad Form policy will pay for direct physical loss
caused by the collapse of a building or a part thereof but only if the
collapse is caused by one of the following perils insured under the Broad
Form coverage part:

  1. fire, lightning, leakage from fire extinguishing equipment, smoke;
  2. explosion;
  3. windstorm or hail;
  4. riot or civil commotion, vandalism;
  5. sinkhole collapse, volcanic action;
  6. sprinkler leakage;
  7. aircraft or vehicles (the above causes of loss are discussed in
    the section immediately preceding this section under the BASIC
  8. weight of ice, snow or sleet;
  9. water damage;
  10. falling objects;
  11. breakage of building glass;
  12. hidden decay, hidden insect or vermin damage;
  13. weight of people or personal property, or of rain that collects on
    a roof;
  14. use of defective materials or construction methods, but only if
    the collapse occurs during the construction or remodeling
    period.  Should collapse occur as a result of defective material or
    construction methods after construction or remodeling, it is
    covered, but only if it is in combination with an otherwise
    covered cause of loss.
MY Insurance Agency
The materials on this page is meant to be
informative in nature.  Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
Commercial Property Policy -
Special Form
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Policy - Basic Form - Perils Not