Miscellaneous Property Forms
Builders Risk Coverage Form
The Builders Risk coverage form incorporates the provisions of the
Commercial Property forms. It is modified to make it adaptable to the
class of property at risk. The Builders Risk forms may be attached to any
of the three forms of the Commercial Property cause of loss forms-Basic,
Broad or Special (discussed here).
PROPERTY COVERED
Buildings Under Construction - The policy covers buildings or structures
under construction, as set forth in the policy Declarations. It includes
foundations and (if not covered by other insurance) temporary
structures on the site including cribbing, scaffolding and construction
forms.
The policy also may also be written to cover renovations under
construction.
Building Materials of Others - The policy is extended to cover building
materials and supplies of others in the care, custody or control of the
insured which are intended to become a permanent part of the building
while such property is within the described structure or within 100 feet
of the building. The maximum payable for such loss is $5,000 at each
described premises. Payment will be only for the account of the owner
of the property.
When builders risk insurance is written on the Special Form, there is an
exclusion of loss by theft of building materials and supplies which are not
attached to the building, and this type of loss is specifically excluded.
PROPERTY NOT COVERED
Land - The policy does not cover land or water.
Property Outside Buildings - The policy does not cover the following
property while outside buildings:
Lawns, trees, plants or shrubs.
Radio and TV antennas or satellite dishes, including their lead-in wiring,
masts or towers.
Signs (other than signs attached to buildings) are covered to a maximum
of $1,000.
FOR HOW MUCH
Coinsurance - The Builders Risk policy is subject to 100% coinsurance.
(The operation of this clause is discussed here)
WHEN COVERED
Coverage ceases when the policy expires or is canceled and also when
any of the following occurs:
The property is accepted by the purchaser, or occupied in whole or in
part, or put to its intended use;
The insured's interest in the property ceases, or he abandons the
construction with no intention of resuming it, or 90 days after the
construction is completed or 60 days after the building is occupied,
unless the insurance company specifies in writing that it is continuing the
insurance.
Other Builders Risk Forms - Builders risk insurance also may be written
on a reporting form under which the insured reports monthly the values
of the construction to date.
Builders Risk Renovation - Covers the renovation values without the
basic structure's being renovated.
Builders Risk Contractors Interest - There are two available forms. One
includes the value of the contractors' labor, materials and supplies; the
second form excludes such values.
Collapse During Construction - The Broad and Special Forms may be
endorsed to cover collapse due to defective materials or methods which
occur during construction.
Value Reporting Form
A special form is available to larger risks whose property values
fluctuate or who tend to acquire or surrender locations (in addition to
their basic premises) throughout the year. This is accomplished through
the use of a special endorsement to the Commercial Building and
Personal Property coverage form or the Condominium Commercial Unit
Owners form.
The endorsement does not alter the basic provisions of the two
coverage forms mentioned above. All of the conditions common to the
Commercial Property policy and the Commercial Property coverage form
are included in the Value Reporting form; the only modification effected
by the Value Reporting endorsement is the modification in the provisions
for the fluctuating values or the changing locations insured.
The insured buys a policy with a maximum limit of liability sufficient to
cover the peak values the insured expects to have throughout the policy
period. At regular intervals specified in the policy (discussed below), the
insured reports the total values which were at risk on a specified day,
and the final earned premium is adjusted on the basis of the reports tiled
by the insured. Such reports must be filed not later than the 30th day
after the end of each reporting period (as specified in the policy) and
after the expiration of the policy.
The clause imposes on the insured the requirement to report 100% of the
values at risk on the specified dates. If the insured underreports the
values at risk, he will be penalized in any loss settlement for the
proportion that the reported values bear to the true values on the
specified date.
EXAMPLE: The insured carries a Reporting policy in the amount of
$1,000,000. The date specified for reporting in his policy is the 15th of
each month. On March 15, the values at risk are $600,000, but the insured
reports only $400,000, within the 3O-day period. Three days later, he
sustains a loss of $180,000. He is entitled to a recovery of only $120,000,
arrived at as follows:
Last reported values X Loss = $120,000 = 2/3
Actual values on specified date $180,000
Additionally, the clause provides that if the insured has failed to report
within the specified number of days, the policy will not cover for more
than the amount stated in the last filed report.
Furthermore, if the delinquent report is the first report of values required
to be filed, the company's liability shall be limited to 75%of the amount for
which it would otherwise have been liable.
It should be pointed out that the policy will not cover for more than the
amount insured, even if the monthly report tiled exceeds the face amount
of the policy. This higher amount will, however, be computed into the
average of the total monthly reports.
Additional Covered Property - The policy covers at each location stated in
the Declarations and is extended to cover at “the Reported-Acquired-and
Incidental Locations" Schedule in the policy. Only property at fairs or
exhibitions is excluded. Reports at incidental locations must show
separately the values at each state.
Builders Risk Coverage Form
The Builders Risk coverage form incorporates the provisions of the
Commercial Property forms. It is modified to make it adaptable to the
class of property at risk. The Builders Risk forms may be attached to any
of the three forms of the Commercial Property cause of loss forms-Basic,
Broad or Special (discussed here).
PROPERTY COVERED
Buildings Under Construction - The policy covers buildings or structures
under construction, as set forth in the policy Declarations. It includes
foundations and (if not covered by other insurance) temporary
structures on the site including cribbing, scaffolding and construction
forms.
The policy also may also be written to cover renovations under
construction.
Building Materials of Others - The policy is extended to cover building
materials and supplies of others in the care, custody or control of the
insured which are intended to become a permanent part of the building
while such property is within the described structure or within 100 feet
of the building. The maximum payable for such loss is $5,000 at each
described premises. Payment will be only for the account of the owner
of the property.
When builders risk insurance is written on the Special Form, there is an
exclusion of loss by theft of building materials and supplies which are not
attached to the building, and this type of loss is specifically excluded.
PROPERTY NOT COVERED
Land - The policy does not cover land or water.
Property Outside Buildings - The policy does not cover the following
property while outside buildings:
Lawns, trees, plants or shrubs.
Radio and TV antennas or satellite dishes, including their lead-in wiring,
masts or towers.
Signs (other than signs attached to buildings) are covered to a maximum
of $1,000.
FOR HOW MUCH
Coinsurance - The Builders Risk policy is subject to 100% coinsurance.
(The operation of this clause is discussed here)
WHEN COVERED
Coverage ceases when the policy expires or is canceled and also when
any of the following occurs:
The property is accepted by the purchaser, or occupied in whole or in
part, or put to its intended use;
The insured's interest in the property ceases, or he abandons the
construction with no intention of resuming it, or 90 days after the
construction is completed or 60 days after the building is occupied,
unless the insurance company specifies in writing that it is continuing the
insurance.
Other Builders Risk Forms - Builders risk insurance also may be written
on a reporting form under which the insured reports monthly the values
of the construction to date.
Builders Risk Renovation - Covers the renovation values without the
basic structure's being renovated.
Builders Risk Contractors Interest - There are two available forms. One
includes the value of the contractors' labor, materials and supplies; the
second form excludes such values.
Collapse During Construction - The Broad and Special Forms may be
endorsed to cover collapse due to defective materials or methods which
occur during construction.
Value Reporting Form
A special form is available to larger risks whose property values
fluctuate or who tend to acquire or surrender locations (in addition to
their basic premises) throughout the year. This is accomplished through
the use of a special endorsement to the Commercial Building and
Personal Property coverage form or the Condominium Commercial Unit
Owners form.
The endorsement does not alter the basic provisions of the two
coverage forms mentioned above. All of the conditions common to the
Commercial Property policy and the Commercial Property coverage form
are included in the Value Reporting form; the only modification effected
by the Value Reporting endorsement is the modification in the provisions
for the fluctuating values or the changing locations insured.
The insured buys a policy with a maximum limit of liability sufficient to
cover the peak values the insured expects to have throughout the policy
period. At regular intervals specified in the policy (discussed below), the
insured reports the total values which were at risk on a specified day,
and the final earned premium is adjusted on the basis of the reports tiled
by the insured. Such reports must be filed not later than the 30th day
after the end of each reporting period (as specified in the policy) and
after the expiration of the policy.
The clause imposes on the insured the requirement to report 100% of the
values at risk on the specified dates. If the insured underreports the
values at risk, he will be penalized in any loss settlement for the
proportion that the reported values bear to the true values on the
specified date.
EXAMPLE: The insured carries a Reporting policy in the amount of
$1,000,000. The date specified for reporting in his policy is the 15th of
each month. On March 15, the values at risk are $600,000, but the insured
reports only $400,000, within the 3O-day period. Three days later, he
sustains a loss of $180,000. He is entitled to a recovery of only $120,000,
arrived at as follows:
Last reported values X Loss = $120,000 = 2/3
Actual values on specified date $180,000
Additionally, the clause provides that if the insured has failed to report
within the specified number of days, the policy will not cover for more
than the amount stated in the last filed report.
Furthermore, if the delinquent report is the first report of values required
to be filed, the company's liability shall be limited to 75%of the amount for
which it would otherwise have been liable.
It should be pointed out that the policy will not cover for more than the
amount insured, even if the monthly report tiled exceeds the face amount
of the policy. This higher amount will, however, be computed into the
average of the total monthly reports.
Additional Covered Property - The policy covers at each location stated in
the Declarations and is extended to cover at “the Reported-Acquired-and
Incidental Locations" Schedule in the policy. Only property at fairs or
exhibitions is excluded. Reports at incidental locations must show
separately the values at each state.
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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.
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.