Commercial Property Policy -
Building Property Covered


The Commercial Property policy is designed to cover building and
personal property.  The coverage on buildings will be discussed below.  
Coverage on business personal property will be discuss next.

Building Property - When the policy covers building property, it covers in
addition to the building structure described in the following:

1. completed additions to the building, fixtures including outdoor fixtures,
permanently installed machinery and equipment, and if not covered by
other insurance, additions under construction, alterations and repairs to
the building or structure.

2. materials, equipment, supplies and temporary structures within 100
feet of the premises used for making additions, alterations or repairs to
the building.

Landlord's Furnishings and Property - Building coverage also covers the
building owner’s personal properties used to maintain and service the
building and its premises.  This would take in appliances for refrigerating,
ventilating, cooling, cooking, laundering, dish washing, floor coverings,
outdoor furniture and fire extinguishers.
NOTE: A loose definition of "personal property" is: Any property, whether
for business or private (personal) use which is not permanently affixed to
the ground or realty. By contrast, property which is affixed to the ground or
the realty and whose removal would mar or deface the realty is real
property. An example of the latter is wallpaper which has been installed.  A
set of lockers standing free is personal property, while the same set of
lockers built into a wall is real property.

Newly Acquired or Constructed Buildings - The policy covering the
described building may be extended by the insured to cover buildings
acquired or being constructed by the insured as set forth below.  Such
extension applies ONLY when the policy is written subject to a
coinsurance clause of 80% or higher.  In such cases, the insurance is
extended to buildings being constructed on the same premises or
buildings acquired at other locations but only when such buildings are
intended to be used for the same purpose as the building described in the
policy.  The extension also applies to a warehouse.  The extension,
which is limited to no more than $250,000, ceases after 30 days from the
date the insured begins construction of the new building or the
acquisition of the new structure (or the expiration of the policy).

Fire Department Service Charges - When the fire department is called to
protect property insured under the policy from an insured peril, the policy
will pay up to $1,000 for the insured's liability for fire department service
charges incurred by the insured under a contract or agreement prior to
the loss.  This coverage is additional and is payable over and above the
limits of the basic policy.  Deductible in the policy do not apply to this
coverage.

Debris Removal - The policy will pay the insured's necessary expenses
in removing debris of covered property resulting from a covered loss, up
to 25% of the amount paid for the direct loss, plus the deductible. While
payments under this extension of coverage do not increase the limit of
liability of the policy, the company will pay up to 25% for debris removal if
the amount of the loss to the insured property plus the cost of removing
the debris exceeds the face amount of the policy, provided that the
insured reports the cost of the debris removal within 180 days of the
loss, or before the policy's expiration, if that date is earlier.

If the total of the loss and damage and the cost of the debris removal
exceeds the 25% debris removal limitation described above, the policy
will pay an additional $10,000 in anyone occurrence.

Ordinance or Law Coverage - If the insured is subject to a building,
zoning or land use law which mandates that, after a loss to the building,
he must demolish and remove undamaged portions of the building, an
endorsement is available which will reimburse the insured for:

1. loss of or damage to the undamaged portion of the building (Coverage
A)
2. demolition and removal costs for undamaged parts of the building
(Coverage B)
3. any increased cost of repairs on reconstruction (Coverage C)
NOTE: Replacement coverage is required under the Basic Form when the
insured buys Coverage B (above).

The limit on Coverage A must be at least 80% of the property's
replacement cost for coverage without a coinsurance clause if the
insured also carries Coverage C.

Pollution Cleanup and Removal - The above described Debris Removal
coverage does not apply to the cost of extraction of pollutants from land
or water, or of removing, restoring or replacing polluted land or water.
Instead, a separate limit applies specifically to the cost of pollutant
cleanup and removal. If the discharge of pollutants is caused by a
covered peril that occurs during the policy period, the policy will pay the
cost of extracting such pollutants, provided that these expenses are
reported within 180 days of the loss, or before the end of the policy
period. There is an annual aggregate limit of $10,000 for such losses.
NOTE: By endorsement, it is possible to schedule an additional annual
aggregate limit to apply as excess over the basic $10,000 limit at each
limit.

Preservation of Property - If it becomes necessary to remove property
from the insured premises to preserve it from damage by a peril insured
against in the policy, the policy will pay for loss or damage to the insured
property while it is being removed or temporarily stored at another
location when such loss occurs within 10 days after the property is
removed. The coverage extension does not increase the applicable limit
of insurance.

In addition, a new aggregate limit of $10,000 for removal of pollutants
applies to all losses in the aggregate during the policy year.

The requirement to give notice to the company within a stated period is
modified to require that such notice be given within 180 days of the direct
physical damage or the end of the policy period, whichever occurs first.
Provision may be made by endorsement for increasing the $10,000
aggregate limit discussed above.

Anti-Arson Application in New York - In all cities of NYS with a population
exceeding 40,000, applications for insurance on real property against the
perils of fire or explosion must be accompanied by a completed anti-
arson application.  Exempted from this requirement are owner occupied
properties used predominantly for residential purposes.

Building Property Not Covered

Certain types of property are specifically excluded from coverage, while
several classes of property are covered only if specifically included
under an extension of coverage.

Property Not Covered - The policy does not cover:
(A)ccounts;
(B)ills;
(C)urrency;
(D)eeds;
(E)vidence of debt, money, notes or securities; NOTE: The A, B,
C, D, E above makes a convenient device for recalling these
classes of excluded property.
Animals unless owned by others than the insured and boarded
by the insured; or animals owned by the insured but only as
"stock" while inside buildings;
Bridges, roadways, walks, patios and other paved surfaces;
Foundations or building structures, machinery or boilers if their
foundations are below the basement floor or below the ground,
if there is no basement.  Also excluded is the cost of
excavations, grading, backfilling or filling and underground pipes,
flues or drains;
Retaining walls that are not part of the building described in the
policy Declarations;
Contraband or property in the course of illegal trade or
transportation;
The cost to research, replace or restore the information on
valuable papers and records including those which exist on
electronic or magnetic media.  Such coverage is available under
an extension of coverage;  NOTE: The policy does cover the cost
of replacing the materials on which the records were kept - the
physical property itself;
Land, growing crops or lawns;
Personal property while airborne or waterborne;
Bulkheads, pilings, piers, wharves, or docks;
Any property which is covered and more specifically described
in the policy, or any other policy, is covered only for the excess,
if any, over the amount of other coverage, whether such other
insurance is collectible or not.

Optional Excluded Property - The policy may be written to exclude
coverage on specified classes of property, e.g., awnings or canopies,
chimneys, silos and their contents, swimming pools, wind pumps,
property in open yards, etc.

Property Outside Buildings Exclusion - The policy does not cover certain
classes of property outside of buildings:
Fences;
Radio and TV antennas and satellite dishes, including their lead-
in wiring, masts or towers;
Signs, except those attached to the building;
Trees, plants or shrubs.

When the policy is written with an 80% coinsurance percentage or higher, it may be extended to cover loss or damage to the above listed
types of property when caused by the following perils:
Fire, lightning, explosion, riot or civil commotion, aircraft.

The maximum amount payable for loss under the above extension is
$1,000 with no more than $250 on anyone tree, shrub or plant.
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.
Next...
What business personal properties
 are covered and not covered?
Policy Conditions