Commercial Property Insurance

What is the limit of coverage for business personal property away from the premises under the Business and Personal Property coverage form?

$10,000

Which of the following is not a common policy condition on a commercial property policy?

Abandonment

Which statement is correct concerning the Agreed Value optional coverage under the Building and Personal Property Coverage Form?

Agreed Value coverage suspends the coinsurance requirement

The Condominium Association Coverage Form is used in place of which coverage form when insuring a condo building insured by the association?

Building and Personal Property Coverage form

The Condominium Commercial Unit-Owners Coverage Form does not cover which of the following?

Building exterior wall

Which of the following is true regarding the Earthquake Cause of Loss Form?

It can be used only with another Causes of Loss Form

The insured's rights may not be transferred without written consent of the

insurer

After 60 days of vacancy, coverage for glass breakage is suspended under

Broad Form of CPP

How much can be paid under the Business and Personal Property Coverage Form for debris removal due to a covered loss?

25% of the loss

All of the following are correct in regards to Extra Expense coverage, except:

Extra Expense coverage cannot be included in the Business Income Coverage Form

Which of the following perils is not one of the three included on the Broad Causes of Loss Form?

Steam boiler explosion

Choose the false statement about the Building and Personal Property Coverage Form.

Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage Tenants Improvements & Betterments are covered under Business Personal Property, not Personal Property of Others Coverage.

Cause of Loss- Basic Form

The Basic Form provides coverage for the following causes of loss (perils): fire, lightning, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.

Building and Personal Property Coverage Form

describes how property coverage applies to the following classes of property: buildings, business personal property of the insured, and personal property of others. There is no liability coverage provided by this form.

T's office condominium is covered under a Condominium Commercial Unit-Owners Coverage Form. Which of the following is not covered on a primary basis?

Fixtures owned by the Association In the event both the unit-owner's policy and the association's policy cover the fixtures, the unit-owner's coverage will be excess.

All of the following are coverage extensions under the Building and Personal Property Coverage Form, except:

Inflation guard Inflation Guard is an optional coverage, not a coverage extension.

Endorsements that coordinate CPP coverages to avoid duplication are called:

Interline

Which of the following business personal property is not covered under a Condominium Commercial Unit-Owners Coverage Form?

Leased appliances Covered property includes fixtures, improvements and alterations, and appliances owned by the insured and making up part of the building.

Each of the following is covered under the Legal Liability Coverage Form, except: Damage to real or personal property owned by others when it is in the insured's care Loss of use Defense costs Loss of income

Loss of income

The Ordinance or Law Coverage endorsement covers each of the following losses, except:

Loss of value in the damaged portion of the building This endorsement provides coverage if the enforcement of any building, zoning, or land use law results in the loss of value of the undamaged portion of the building.

Following a large fire that requires several weeks of down time due to rebuilding, the Business Income Coverage Form will pay for:

Net income plus continuing expenses of the business

Which statement about commercial property policies is not correct?

The insurer has the obligation to inspect the property The insurer has the right, but not the obligation, to inspect the property.

Which is true of the Personal Property of Others coverage provided by the Building and Personal Property Coverage Form?

The policy covers property of others that is in the care, custody, and control of the insured

Cause of Loss- Special Form

The special form provides coverage for risks of Direct Physical Loss unless the peril or cause of loss is specifically excluded or limited. Coverage under the special causes of loss form is on an open perils basis.

A building is considered vacant unless what percentage of the building's total square footage is rented or used to conduct customary operations?

at least 31%

The Common Policy Conditions in commercial property insurance includes all of the following, except:

Fire department service charge

Builders Risk forms coverage is

always written on an open perils basis

A commercial property has a $400,000 Commercial Building and Personal Property policy, and a fire breaks out on the loading dock, causing $80,000 in damage and $20,000 in debris removal. What is the maximum that may be received for the damage?

$100,000 The $80,000 loss plus the entire $20,000 debris removal will pay, since that amount is less than the 25% of coverage limit.

Under a Building and Personal Property Coverage Form, up to what percent of a partial loss would be available for debris removal?

25% The policy will pay up to a maximum of 25% of the coverage applying to the loss. In the event of a total loss, the policy will pay up to an additional $10,000 for debris removal.

The Builder's Risk Coverage form automatically ends at the earliest of all of the following, except:

60 days after construction is complete Coverage automatically ends 90 days after construction is complete

In the Business Income Coverage Form, Period of Restoration begins _______ after the time of loss?

72 hours

Under the Business Income form, the period of restoration begins how many hours after the time of loss?

72 hours The period of restoration ends on the date the property is repaired, or the date the business resumed at a new location, whichever is earlier.

All of the following are covered under the Building and Personal Property Coverage Form, except:

Accounts, bills, currency, deeds, evidence of debt, money or securities Accounts, bills, currency, deeds, evidences of debt, money or securities are not covered under this form, but can be more properly covered under other insurance forms.

Which of the following would not be covered by the Ordinance or Law endorsement.

Building Code Fines

Cause of Loss- Broad Form

Includes the perils contained in the basic form, plus 3 additional causes of loss: Falling Objects, Weight of Ice Snow or Sleet, Water Damage Caused by accidental discharge

All of the following coverage forms may be added to the Commercial Property Coverage Part, except:

The Businessowners Policy

Limit of Insurance for Cause of Loss Basic Form

The Limit of insurance is up to $15,000 for all covered losses that take place during the 12-month period that begins with the policy's inception date.

Which Cause of Loss form for the Commercial Property Coverage Part will cover loss of sales merchandise due to a burglary?

The Special Form The perils of Burglary and Theft are not excluded under the Special Form.

Which of the following is not true of the value reporting form under a Commercial Property policy?

The insured is only required to report up to 80% of value of the property Reporting of 100% of values is required to guarantee that adequate insurance is being provided and charged.

Which of the following is excluded under the Basic Causes of Loss form?

Utility Services

Which of the following is covered on a Basic Cause of Loss Form?

Windstorm

The Condominium Commercial Unit-Owners Coverage covers each of the following, except: a. Improvements b. Fixtures c. Appliances d. Personal property

d. Personal property

A loss to the building of $2,500 or less would be paid at

replacement cost