CIC Property

Objective 5 List the circumstances under which an insured may waive rights of recovery against others as stated in the Commercial Property Conditions

1) Insured can waive in writing Prior to Loss - Insurer does not need to approve the waiver - Contracts often include WOS provisions 2) Insured cannot waive after a loss EXCEPT IN WRITING TO: - Another insured - Business owned by insured (subsidiary) - Business that owns insured (parent) - Tenant of insured

Objective 4 List and explain the specific rights of the first named insured as outlined in the Common Policy Conditions

1) Represents all named insureds 2) Has right to cancel policy 3) Receives the notice of cancellation 4) Has right to change policy - request endorsements 5) Is responsible for payment of premium 6) Receives any return premium

Objective 4 Apply the exclusions of the commercial crime coverage form

1. Acts committed by you, your partners or members 2. Acts committed by your employees learned of by you prior to policy period 3. Acts committed by employees, managers, directors, trustees except if by theft 4. Confidential or Personal information- patents, trade secrets, credit info, Heath or financial info, or other non-public info 5. Data security breach 6. Government action 7. Indirect loss 8. Legal fees, costs and expenses 9. Nuclear 10. Virtual currency 11. War and military action

Objective 14 Explain how the Optional Coverages affect the provisions of the Building and Personal Property Coverage Form

1. Agreed Value Statement of value is submitted by insured and accepted by carrier The Coinsurance provision is suspended Agreed value expires at expiration or anniversary and Coinsurance is reinstated 2. Inflation Guard Limit increases on pro data basis by percentage selected and shown on described page 3. Replacement Cost Replaces ACV through the policy except for - Personal property of others unless selected - Contents of residence - Works of art, antiques, etc - Stock unless option selected Insured can select to settle ACV or RC Insurer will pay the least of: - limit applicable - cost to replace on same premises with like kind quality - amount to repair or replace 4. Replacement Cost Optional Cov Personal Property of Others - extends RC to PPO only if RC selected for Building and BPP - if written lease applies recovery limited to lesser of RC or Contractual obligation

Objective 1 State reason why an insured should consider purchasing crime coverage

1. Money and securities are excluded on CP form 2. Covers dishonest acts of employees 3. Provides theft coverage for BPP 4. Higher limits can be purchased

Objective 11 Name and describe the coverage extensions of the Building and Personal Property Coverage Form

1. Newly Acquired or Constructed Property - Building: $250,000 limit at each building Applies only if building coverage is carried Must be built on described premises OR If acquired intended for similar use - BPP: $100,000 limit at each building Applies only is BPP is carried Applies to any insured location EXCEPT Fairs trade shoe and exhibitions 2. Personal Effects and Property of Others - $2,500 limit per occurrence per location - Covers personal effects owned by named insured, partners, officers, and employees EXCEPT for theft - covers property of other in insured CCC - Coverage applies on premise only 3. Valuable Papers and Records - $2,500 limit applies - Covers cost of research to replace or restore lost information on damaged valuable papers and records - This is named peril coverage 4. Property Off Premises - $10,000 limit applies - Applies to covered property including stock - Cover property that is temporarily at a location not owned, leased or operated by the named insured - Covers property at a storage location leased midterm - Covers property at a fair, trade show, or exhibition - Does not cover while in vehicle or CCC of salesperson 5. Outdoor Property - $1,000 limit ($250 su limit per tree, shrub, plant) - Applies to outdoor fence, radio and TV antennas, trees, Shrubs, plants - Limited Perils FLARE Fire, Lightning, Aircraft, Riot & Civil Commotion, Explosion 6. Non-owned Detached Trailers - $5,000 limit unless higher limit on Dec page - Must be used in Insured's business - Covered at the described location while in CCC of insured - Must be contractually responsible for trailer - No coverage while attached to vehicle or during hitching or unhitching 7. BPP in Portable Storage Units - $10,000 limit unless higher on dec page - Limit applies regardless of number if storage units - Unit must be within 100 feet of described building - 90 days coverage from time pod arrives

Objective 8 List the factors to consider when determining an adequate amount of Business Income coverage

1. The maximum possible length of shutdown - are there production bottlenecks - time needed to replace property, hard to find equipment - available materials,labor, climate, weather conditions - seasonal fluctuations in production/sales 2. Amount necessary to comply with Coinsurance clause - is ordinary payroll covered, excluded or limited - set Coinsurance at highest level 3. Amount needed for extended period of indemnity - estimated time to get customers back - estimate reduced level of income 4. Amount of extra expenses needed to maintain operations or to reduce the shutdown - Add to limit for Business income

Employee

A person the insured directs, controls, compensates A person furnished temporarily as a substitute to permanent employee or for seasonal or short time work A person leased to you under contract

Objective 6 List the advantages as well as the disadvantages and special consideration of writing coverage on blanket basis.

ADVANTAGES 1. Insured can apply insurance where needed when more than one type of property is covered by blanket limit 2. If separate locations are blanketed together, coverage is not compromised when BPP is moved between locations 3. Reporting forms are easier to handle. 4. Insured has 100% insurance to value at each location but only has to carry 90% insurance to value 5. Coinsurance applies to the blanket limit not to the values reported for each item. DISADVANTAGES AND CONSIDERATIONS 1. 90 to 100% Coinsurance is required 2. Blanket may not be possible because of underwriting or form restrictions. 3. Assigned statement of value must be obtained from the insured listing each item and amount of coverage. 4. Rate is valid for one year only and cannot be freeze for three and is 5% higher. 5. All covered property must be insured using the same causes of loss. 6. Must list all ownership interest with multiple locations. 7. Limitation on Loss Settlement - Blanket Insurance (Margin Clause) Endorsement may apply. - Severely restricts coverage written on Blanket basis - The limit for a particular Building or BPP in that building is limited to the amount shown on the statement of value multiplied by the margin clause percentage - Any Coinsurance penalty will be deducted from the maximum amount payable - The margin percentage can vary by location or type of property

Objective 10 Name and describe the Additional Coverages of the Building and Personal Property Coverage form F I P P E D FIRE DEPT SERVICE CHARGES INCREASED COST OF CONSTRUCTION POLLUTANT CLEAN UP AND REMOVAL PRESERVATION OF PROPERTY ELECTRONIC DATA DEBRIS REMOVAL

Additional coverages: 1. Debris removal of covered property and other debris on described premises resulting from covered cause of loss and must be reported within 180 days of physical damage. Debris removal sublime = 25% of the amount paid for the loss plus deductible 2. Preservation of Property provides for payment of any direct physical loss while property is removed to protect it from damage by a covered peril or while being stored at another location for 30 days. Policy provides true All Risk coverage during this period. 3. Fire Dept Service Charges provides $1,000 at each premises for liability for fire service charges assumed by contract or required by ordinance. The limit is the most that will be paid, it does not require that there be damage and no deductible applies. 4. Pollutant Cleanup and Removal is $10,000 aggregate limit for each described location for named insured's expenses to extract pollutants from land or water at described premises if release discharge or dispersal is caused by a covered cause of loss during the policy period. Expenses must be reported in writing within 180 days. 5. Increase cost of Construction apply only to buildings insured on replacement cost basis and coverage applies only to the repair, rebuilding, or replacement of damaged part of building. It is designed to respond to a situation where building code requires upgrades but not major construction changes. It has limit of 10,000 or 5% of the limit of insurance applicable to the building. 6. Electronic Data this additional coverage clarifies what is considered electronic data. It pays cost to replace or restore data which is destroyed or corrupted by a covered cause of loss and is limited to $2,500 per policy term. Coverage includes virus in computer systems.

Objective 2 Define Rental Value

Anticipated rental income that would have been earned from tenants including fair rental value of portion occupied by the insured and utilities that are transfer to landlord after a loss as well as continuing operating expenses and payroll

Other Property

Any tangible property other than money and securities that has intrinsic value

Objective 1 Apply the Coinsurance formula to a specific loss.

Apply the Coinsurance formula to a specific loss. Did/Should X loss amount - deductible

Objective 8 Determine whether an item qualifies as building, BPP, or BPPO as defined in the Building and Personal Property Coverage Form.

BUILDING or structure described in Declaration including - completed additions - Fixtures including outdoor fixtures (flag or light poles, fountain) - Permanently installed machinery and equipment - Personal property owned by the named insured that is used in the maintenance or service of building or premises including: a) fire extinguishing equipment b) outdoor furniture c) floor coverings d) appliances - If not covered by other insurance additions under construction and materials, equipment, and supplies Your BPP is the following located in or on the described Building or Structure or in the open or in a vehicle WITHIN 100 feet of the building or structure or within 100 feet of the described premises whichever is greater: a) Furniture and fixtures b) Machinery and equipment c) Stock which is merchandise held in storage or for sale, raw materials and in process or finished goods including supplies used in their packing and shipping d) All other personal property owned by the insured and used in the business E) Labor, materials or services furnished or arranged by the named insured on the personal property of others F) Named insured's interest in Tenant Improvements and Betterments G) Leased property the insured is contractually responsible to insure Personal Property of Others is: A) In Named Insured's CCC B) Property must be located in or on the described building or structure or in the open or in a vehicle within 100 feet of the building or structure or 100 feet of the described premises whichever is greater

Objective 1 Explain the general purpose of the Business Income, the Extra Expense and the Leasehold Interest forms

Business Income: General purpose so to pay for continuing normal operating expenses, lost profits, and extra expense to minimize down time Extra Expense Pay above normal expenses to continue operations or return to normal operations as soon as possible Leasehold Interest Pay for lost financial interest in cancelled very beneficial lease

Objective 3 Describe the additional coverages found in the Business Income form

Civil Authority Triggered when civil authorities prohibit access to described premises and results in a shutdown. Must be from a covered cause of loss on you policy that happens to premises of others who are no more than one mile from your premises. For business income there is 72 hour waiting period then 4 consecutive weeks. No waiting period for extra expense then 4 weeks Alteration and New Building Covers loss due to direct loss on the described premises for: - new building or structures - alterations or additions to existing building or structure - Materials within 100 feet for use in construction - period of restoration begins on date operations would have begun Extended Business Income - extends time that a business income loss will be paid after actuality repaired, rebuilt or replaced and operations resumed - Ends when insured restores operations to previous condition or 60 days Interruption of Computer Operations - Subject to named perils only and includes viruses with limit of $2,500 any one policy term

Time Element- Additional Condition

Coinsurance Designed to encourage insured to insure to value and does not apply to extra expense Available percentage 50% 60% 70% 80% 90% 100% and 125% Penalizes for under insurance Formula: Did/ should X amount of loss = payment or limit whichever less Net Profit before tax + Continuing normal operating expenses/ (Net Profit before tax + all operating expenses) X Coinsurance

Objective 7 Determine how losses settled under maximum period of indemnity

Coinsurance does not apply Limits payment to 120 days or until limit is exhausted

Objective 7 Determine how losses are settled under monthly limit of indemnity

Coinsurance does not apply Limits payment in any 30 day period to 1/3 1/4 or 1/6 as shown on declaration

Replacement Value

Cost to replace with property of like kind and quality in Today's dollar. Replacement cost not paid unless the property is actually replaced. Insured paid ACV until Insured submits proof replacement of property was completed then the depreciation deducted is returned to insured. Insured can choose to settle claim on ACV basis even if RC is on policy. Insured may choose this option if RC results in Coinsurance penalty.

Objective 3 Describe the need for and coverage provided by each endorsement in presentation.

Describe the need for and coverage provided by each endorsement in presentation. 1) Limitation on Loss Settlement - Blanket Insurance (Margin Clause) a) Severely restricts coverage written on Blanket basis b) The limit for a particular bldg. or BPP in that Bldg. is limited to the amount shown on the statement of value multiplied by the margin clause c) Any Coinsurance penalty will be deducted from maximum amount payable d) The margin percentage can vary by location and/or type of property 2) Peak Season Limit of Insurance Allows the insured to increase coverage for a specified number of days to reflect predictable seasonal increases in business personal property inventory. 3) Additional Covered Property Can be used to buy back coverage that was excluded and cover them as building or personal property. Examples: fences, foundations, underground pipes, patios, roadways 4) Additional Building Property Redefines selected personal property as building Rate for building is less than BPP Ex Tenants Improvements and Betterment or large machinery 5) Additional Property NOT covered Eliminates coverage for selected property Used when insured does not want to insure certain property Ex Stock in yard not susceptible to loss or Tenants Improvements and Betterments 6) Your Business Personal Property- Separation of Coverage Used to apply a separate limit, a separate cause of loss form, or separate Coinsurance to specific property Can be used to rate Tenants Improvements and Betterments as building instead of BPP for lower rate 7) Outdoor Trees, Shrubs, and Plants Used to insure outside trees, shrubs, and plants for increased limits and/or additional causes of loss. Can be written on Basic, Broad, or Special cause of loss form. Unendorsed policy provides only $1,000 coverage with $250 su limit per tree, shrub, or plant for losses caused by Fire, Lightning, Aircraft, Riot or civil commotion, or Explosion (FLARE) There is no coverage for: 1. Dampness or dryness of atmosphere 2. Changes in or extremes in temperature 3. Rain, snow, ice, or sleet 8) Outdoor Signs Used to increase limit for signs. The Coinsurance applies and you need to take into account cost to install the sign when writing the extension The unendorsed BPP form provides $2,500 coverage per sign 9) Radio or Television Antennas Used to insure radio or television antennas as well as satellite dishes and their lead-in wiring, masts or towers for additional limits and/or additional cause of loss A limit and Coinsurance are included and can be written on Basic, Broad, or Special form. The unendorsed BPP form gives only $1,000 coverage for damage by the following perils: FLARE FIRE LIGHTNING AIRCRAFT RIOT OR CIVIL COMMOTION EXPLOSION There is no coverage for loss caused by: 1. Dampness or dryness of atmosphere 2. changes in or extremes of temperature 3. Rain snow ice or sleet 10) Specified BPP Temporarily Away From Premises Covers BPP temporarily away from the described premises in CCC of an employee Does not cover stock unless at a fair or trade show one exhibit Does not cover BPP in CCC of salespersons unless at a fair, trade show, or exhibit

Extra Expense

Designed to pay cost in excess of normal operating expenses to continue operations and minimize suspension. It is written on monthly limitation basis Covers expenses to relocate or pay higher freight cost to get product to shelf faster etc.

Objective 2 Differentiate between Discovery form coverage trigger and Loss Sustained form coverage trigger

Discovery coverage trigger Coverage trigger by discovery of loss during the policy period or extended reporting period Extended period ti discover loss is extended 60 days after cancellation if coverage not replaced Loss Sustained Coverage trigger Coverage is trigger by the occurrence taking place during the policy period Extended period to discover loss is one year from date of cancellation if coverage not replaced

Objective 2 Explain the four purposes of Commercial Property Endorsements.

Explain the four purposes of Commercial Property endorsements. 1) To expand coverage and customize the policy to meet needs specific to insured. 2) To restrict coverage to make risk more acceptable to carrier or remove coverage that insured does not want in order to reduce premium. 3) To clarify coverage 4) To comply with State specific requirements

Broad Form Causes of Loss

Fire Lightning Explosion Windstorm or hail Smoke Aircraft or vehicle Riot or civil commotion Vandalism Sprinkler leakage Sinkhole collapse Volcanic action Additional coverage- Limited Fungus Wet and Dry Rot and Bacteria

Broad Form Causes of Loss

Fire Lightning Explosion Windstorm or hail Smoke Aircraft or vehicles Riot or civil commotion Vandalism Sprinkler leakage Sinkhole collapse Volcanic eruption Falling objects Weight of snow ice or sleet Water damage Additional Coverage - Collapse

Special Form Causes of Loss

Fire Lightning Explosion Windstorm or hail Smoke Aircraft or vehicle Riot or civil commotion Vandalism Sprinkler leakage Sinkhole collapse Volcanic action Falling objects Weight of ice snow or sleet Water damage Additional coverage - limited fungus wet or dry rot and bacteria - collapse Direct Physical Loss

Broad form Exclusions

Group 1 Ordinance or Law Earth Movement Government Action Nuclear Hazard War and Military Action Water Fungus wet and dry rot and Bacteria Group 2 Artificially generated electrical or magnet energy Explosion of steam boilers steam pipes Mechanical breakdown Neglect to keep further damage from occurring Additional coverages - Limited fungus wet or dry rot and bacteria - Collapse

Basic Form Exclusions

Group 1 Ordinance or Law Earth Movement Government Action Nuclear Hazard War and Military Action Water Fungus wet and dry rot and Bacteria Group 2 Artificially generated electrical or magnet energy Rupture or bursting of water pipes Leakage or discharge of water or steam from a system or appliance Explosion of steam boilers steam pipes Mechanical breakdown Neglect to keep further damage from occurring Additional coverage - limited fungus wet or dry rot and bacteria

Objective 1 Apply the exclusions of the Cause of Loss Special form to specific claim situations

Group 1 Exclusions - there is no coverage if caused directly or indirectly by the following: 1. Ordinance or Law 2. Earth Movement - earthquake, landslides, mine subsidence, earth sinking, shifting or settling, volcanic eruption 3. Government action except if taken to prevent spread of fire 4. Nuclear hazard - except damage by resultant fire is covered 5. Utility Services - Failure of power, communication, water or utility services supplied to the described premises if the failure originates away from described premises or originated at describe premises but involves equipment used to supply utility services to described premises. If failure or surge results in a covered cause of loss we will pay the loss or damaged caused by that cause of loss 6. War and Military Action 7. Water - Flood, surface water, tides, tidal waves, overflow of any body of water whether driven by wind including mudslides, mudflow, water that backs up or overflows from sewer or sump pump, underground water flowing or seeping through foundations, walls,s floors, basements, doors or windows And waterborne material carried by flooding water or mud. 8. Fungus, Wet Rot, Dry Rot and Bacteria Presence, growth, proliferation, spread or any activity of fungus, wet or dry rot or bacteria. BUT IF it is result of a specified cause of loss payment for loss or damage is covered.

Objective 5 Given financial info determine an amount of insurance which will satisfy the Coinsurance provision and cover the insured's exposure to loss

How to determine the limit and Coinsurance 1. Determine net profit - gross sales minus cost of goods sold minutes operating expenses 2. Analyze the operating expenses- Breakdown between continuing and non-continuing 3. Establish desired recovery amount- net profit plus continuing expenses 4. Determine the maximum period of cessation identifying seasonality and peaks in business and worst case scenario 5. Calculate amount needed for shutdown 6. Add anticipated extra expense 7. Choose limit and Coinsurance - limit desired divided by Net profit + operating expenses rounded to next highest percentage - net profit + operating expenses X Coinsurance % = limit to be carried

Coinsurance

Insurer agrees to a reduced rate if insured carries a specific percentage of insurance to the value of the property Coinsurance penalizes the insured in the event of partial loss

Coinsurance formula

Limit of loss carried/Value of property at time of loss X loss amount - deductible. OR Amount of insurance that was carried/Amount of insurance that should've been carried X loss amount - deductible. OR Did/should X loss amount - deductible

Objective 3 Apply the limitations of the Causes of loss special form to specific claims situation

Limitations Coverage does not apply to: 1. Steam boilers pipes engines if damage results from condition side the equipment BUT gas or fuel explosion is covered 2. Hot water boilers or other heating equipment if damage results from inside the equipment BUT explosion covered 3. Interior damage from rain snow sleet ice sand or dust unless the exterior is damaged by a cause of loss 4. Theft of building materials that are not part of building 5. Mysterious disappearance of property 6. Unauthorized transfer of property to a person or place 7. Damage to vegetated roof caused by disease and weather atmospheric or soil conditions

Objective 12 Explain the loss payment options as stated under the Loss Conditions in the Building and Personal Property Coverage Form

Loss Payment Options 1. Insurer Options - Pay the value of the property - Pay cost to repair or replace - Take property at agreed or appraised value - Repair, rebuild, or replace with like kind 2. Insurer must notify insured of their intention with 30 days of receiving proof of loss 3. Cost to repair does not include cost associated with Ordinance of Law 4. Insured will not be paid more than his financial interest in property 5. Payment within 30 days of proof of loss if insured complies with requirements 6. Party Wall Settlement policy pays a proportion of loss to wall But if neighbor doesn't repair his building then full value of wall

Money

Means currency, coins and bank notes, travelers checks, money orders, deposits in banks

Securities

Means negotiable and non- negotiable instruments or contracts representing money or other property includes tokens, tickets, evidence of debt/credit

Objective 2 Define Extra Expense

Necessary expenses to continue operations, reduce downtime of business, or expense to replace or restore data

Objective 2 define Business Income

Net income (net profit or loss before tax) that would have been earned PLUS Continuing normal operating expenses including payroll (taxes, fees, utilities, salaries etc)

Loss Determination- Business Income

Net income before loss and operating expenses necessary to resume normal operations including payroll and other info from financial statements, bills, invoices, deed, liens, contracts

Actual Cash Value

Policy does not actually define ACV. The common accepted definition is Replacement Value minus depreciation. Alternative definitions: Fair Market - difference between the market value of property before and after a loss Broad evidence rule - wide range of facts used - original cost, replacement cost, market value, income from use, age, condition, depreciation, and deterioration

Objective 9 Given a loss situation, determine whether an item is Property Covered or Property not covered under the Building and Personal Property Coverage form

Property NOT covered: (excludes 17 specific categories) See page 68

Time Element. Coverage Extensions

Requires 50% or more Coinsurance Can extend business income to newly acquired locations $100,00 limit at each location Ends when policy expires or 30 days after acquisition

Objective 7 Determine how losses settled under Agreed Value option

Suspends Coinsurance Business Income Worksheet is required to company annually

Objective 2 identify and explain the exposures created by the enforcement of building codes, ordinances, or laws and describe three coverages included in the Ordinance or Law endorsement

The losses result from the requirement to comply with laws or ordinances which do not permit restoring building back to same condition as existed prior to damage. The three coverages provided are: 1. Coverage A coverage for loss to undamaged portion of building 2. Coverage B demolition cost coverage - covers cost to demolish and clear away the undamaged portion of building 3. Coverage C Increase cost of construction - Replace property to comply with minimum standards laws or ordinance at time of loss - Repair the damaged property so as to comply with minimum standards laws or ordinance at time of loss

Time Element defined

The magnitude of a financial loss is determined by the length of time it takes for a business to get back in business following a direct physical loss

Robbery

The unlawful taking of property from a person by bodily harm or threat of bodily harm

Objective 9 Given loss situation determine how extra expense coverage applies

Three step process: 1. Determine length of shutdown 2. Based on step #1 choose the appropriate % from the declaration page. 40% 80% 100% If less than 30 use first % 40% If 31 - 60 days use second % 80% If over 60 days use the third % 100% 3. Multiply the limit of insurance by the % determined in step 2. This is amount available for the loss

Objective 2 Define Period of restoration

Time period it takes to to restore business to normal operating level Begins with direct covered property loss after 72 hour waiting period for Business Income - no waiting period for Extra Expense Ends when property is or should be repaired or restored

Advantages of Coinsurance

To insured: lower rate per $100 of amount carried - the higher the Coinsurance percentage the lower the rate To insurer: better premium level per risk insured

Theft

Unlawful taking of property without the insured's consent

Objective 7 Given a loss situation, apply the penalty provision found in the Value Reporting Form

Value reporting form provides a means to accurately measure changing values of BPP and charge an appropriate premium. It is designed for insured with fluctuating BPP or changing locations. Insured must be able and willing to make the period reports. Locations covered are: - locations on dec page - Acquired locations in policy territory acquired after policy inception - Incidental locations with values of $25,000 or less - Reported locations Other than those on dec page that were reported at inception Reporting Provisions: New policy first report due 60 days after report date Renewal policy first report due 30 days after report date All subsequent reports due within 30 days of the reporting period Each report must show the values on the date required Full values must be reported Newly required locations must be reported in the next report Reports excess of limit will be used to determine final premium BUT in event of loss no more than limit of insurance will be paid Treatment of Specific Insurance Specific Insurance is other insurance that covers the same property AND is not subject to same plan, terms, conditions and provisions as Value Reporting insurance. The amount of specific insurance must be included in the reports of value but is subtracted from value when computing advance and final premium under the endorsement The amount of specific insurance whether collectible or not is subtracted from the amount of any claim payable Premium Adjustment Advance Premium - is premium charged at inception which is usually 75% of the annual premium Final Premium - Rate X actual values reported At end of policy term the Final Premium is compared to the Advance premium and a premium adjustment made Reporting Period DR - Daily report show values each day but reporting period end on last day of month WR - Weekly report show values on last day of week but reporting period ends on last day of each month MR - Monthly reports show values as of last day of month and reporting period ends last day of each month QR - Quarterly reports must show values as of last day each month but reporting period ends last day of March, June, September, and December PR - Policy Year Reports must show values as of the last day of each month but the reporting period ends on the policy anniversary date Insured must submit reports accurately and on time to avoid penalties

Objective 13 Given a loss situation determine the amount payable when an insured's property is vacant.

What is vacancy? If insured is tenant- only unit rented is considered and is considered vacant when it does not contain enough BPP to conduct customary or usual operations If insured is building owner - vacant unless 31% of the total square footage is rented and used to conduct customary or usual operations Buildings under construction or renovation are not considered vacant Coverage is affected if building vacant for more than 60 consecutive days If building is vacant there is no coverage for: Vandalism, sprinkler leakage, glass breakage, water damage, theft or attempted theft Loss payment for any other cause of loss is reduced 15% if building is vacant.