RMIN5100s Test 2

Concurrent Causation

"We will not pay for loss or damage caused byor resulting from" "Courts interpret this language with: -The Concurrent Causation Doctrine:A principle holding that when two perils simultaneously cause a loss (i.e., they are both considered the proximate cause of loss), the insurer must pay the loss even if one of the perils is excluded by the policy. ex: if windstorm knocks down house but u have hole in ur roof it IS covered (hole= neglect, windstorm= event... they are 2 perils) this is bc they happened concurrently

Coverage extension: limits for newly acquired constructed property what are the limits?

$250,000 building, $100,000 contents

what is the standard deductible amnt

$500, applied once per occurrence only have to pay this once and then the rest is covered

BPP Additional Coverages (6)

- Debris removal ($25,000 - but complicated) - Pollutant cleanup and removal($10,000) - Preservation of property - Fire department service charge ($1,000) - Increased cost of construction (min[5% *limit,$10,000]) - Electronic Data ($2500 aggregate)

when do coverage extensions apply?

-coinsurance 80% or higher -when a value reporting symbol is shown in the declarations

a buisness office is insured under a BPP coverage form that specifies a 2million limit of insurance on building and 900k limit of BPP. Policy has a 5k deductible. a covered cause of loss results in a 2.2M worth of damage to the building and a 300k loss of BPP. 2 shrubs are also destroyed and covered worth of $500. how much is paid?

2,300,500 **take deductible OFF loss and if it still exceeds limit then the limit is just paid

what is the limit for debris removal

25% direct loss to buildings + deductible + $25,000 Never pay more than actual loss sustained if this is more Look over examples of debris removal on ELC**

Additional Coverages are available to

ALL INSUREDS

Doctrine of concurrent causation: if 2+ perils contribute to a loss and only one of those perils is covered what happens?

ALL are covered doctrine of concurrent causation not actually in policy it is implied

which is not covered property in the BPP (on test) -Automobiles -Stock (inventory) -Furniture -Machinery

Automobiles **never covers the vehicle itself only the damage by the vehicles maybe In covered causes of loss

COPE: Construction,Occupancy, Protection,External Exposures

C = What are the construction materials? (jointed masonry?) O = What is this building used for? (retail store?Manufacturer?) P = What are the protections for this building? (Sprinklers?) E = What perils is this building exposure to? (Whose yourneighbor? LOCATION? LOCATION: Hurricanes? Wildfires

sinkhole collapse video class

Car museum in Kentucky, covered in basic broad and special. What exactly is covered? Cars: not covered by BPP Floor: covered under building Building structure: covered under building Debris removal: damage to building x 25% +25,000 New supporting structure: not covered land and cost of filling sinkhole: not covered **if the cars didn't work (u took out engine) u can argue they are property of museums and it would be covered under BPP but that not case here

14)Which one of the following statements is correct with respect to the covered causes of loss under the Causesof Loss—Basic Form? A)Smoke covers damage by smoke from industrial operations or agricultural smudging. B)Lightning includes artificially generated electrical current. C)Vandalism includes loss by theft. D)Explosion includes the explosion of gases or fuel in a furnace or flue

D

T or F the limit for increased cost of construction is 5% of limit or $10,000 whichever is greater

FALSE its whichever is LESS than not greater than its an additional coverage have to have RC valuation** if you need more than that you should get an endorsement ordnance of law increased cost of construction (old building make doors open outward example in class)

which causes of loss are not covered in the basic form (2) -falling objects -water damage -fungus -vandilism

Falling objects like falling trees (covered in broad and special but not basic) water damage

Both basic and broad: 1)fire 2) lightning

Fire: poses GREATEST RISK of a large or total property loss - Flame or glow and rapid oxidation - Hostile fire covered, friendly fire is not. A hostile fire3 is one that is unintended and out of control exceeding boundaries - Resulting damages• heat, smoke, water damage & damage to property while extinguishing the fire Lightning-- Naturally Generated Only fire and lightning not described in policy bc they've been around so long we just assumed it is the court defenition of it

Assuming limit is stated which property IS covered by BPP

Leased personal property

which is true about cleaning supplies

Personal property covered under BPP building or personal property it depends could be covered in either because if cleaning supplies are sold by you its always your BPP or if you use it its under there if you have cleaning supplies used just to mop your OWN location it could go in either one if you lease out apartments or stuff that is used to service the property it can be covered under BPP building

According to the contract of adhesion if something is ambiguous within the policy the benefit goes to who?

The insured this is because in most cases its a take it or leave it situation they don't have much say in policy

which statement about ordinance or law/ increased cost of construction is FALSE -it is excluded under the basic -it is excluded under special -Covered under additional coverages when RCV chosen, 5% of limit or $10,000 -all of the options are true

all of the options are true

Perils covered by special form

anything but not excluded

what is the biggest threat cause of loss

fire

Both basic and broad: 6) aircraft or vehicles

if an aircraft or vehicle causes loss to a building/property that is covered like slamming into a building or a rock getting propelled by a trucks tire BUT aircrafts and vehicles are covered separately in auto policy not pay for loss or damage caused byor resulting from vehicles you own or which areoperated in the course of your busines

improvements/betterments vs trade fixtures vs fixtures

improvements/betterments: tenant adds something bc they need it to do their business such as a clothing store adds in dressing rooms. You can't take it with you and it becomes apart of building trade fixtures: require tenant to take it w them when they go. ex: Dog grooming business adds huge removable tubs but can take them out fixtures: depends, generally attached dog grooming buisness upgrades plumbing (improvements and betterment) **ignoring improvements and betterments can result in severe underinsurance diffuculties when a loss occurs

if it is covered in basic and broad

it is also covered in special

BPP: Property Not Covered

•Buildings and other real property land water bridges roadway, walks, patios retaining walls piers, wharves, or docks cost of excavations, grading, back fillings, or filling pilings underground foundations underground pipes, flues, or drains • Plants and outdoor property- growing crops & lawns- outdoor grain, hay, & crops- outdoor trees, shrubs, plants- outdoor fences, radio, TV antennas/towers- unattached, outdoor signs• Coverage Extension adds back some coverage • Other Personal Property- Money, Securities and Similar Property- Electronic Data & Valuable Papers- Vehicles, watercraft, aircraft- Animals- Property More Specifically Described elswhere- Airborne or Waterborne Personal Property- Contraband• Exceptions to these exclusions and coverageextensions exists. *animals not covered unless they are held as stock

Causes of Loss - Special Form• Advantages of special form

- Agreement simply provides coverage for risks of direct physical loss to covered property .- A cause of loss not specifically excluded is covered. - Shifts burden of proof from insured to the insurer for disagreements about covered perils .- Provides broader coverage 1)Theft Losses: basic and broad cover theft at the time of civil riot or commotion but no other circumstances • Friendly Fire • Vehicle Damage: basic and broad dont cover damage resulting from named insured or their buisness but special has that coverage • Water Damage Caused by Ice Damming: ex is when water damage occurs when water backs up under roof shingles bc of roof gutters are clogged with ice. however, just like basic and broad it must damage outside of house before inside except for ice damming *shifts burden of proof from insured to insurer if it is not excluded specifically then it is covered. Therefore, if we want to put any restrictions on perils that ARE covered, we must list it as an Exclusion under theSpecial policy. So, for example..... Windstorm & Hail iscovered exactly the same under Basic,Broadand Special. But this is listed as a NamedPeril under the Basic & Broad policy forms...but as an exclusion under Special.

Personal Property Classifications

- Contents o Business Personal Property (BPP) o Property of others in the insured's care, custody, and control § Gym with luggage § Airports have people's luggage § Dry Cleaner's · Some coverage - Property in Transit o · Little to no coverage - Property in the Possession of Others o UGA gives professors a laptop o Repair shop · Little to no coverage - "Floating" Property o Don't stay fixed at any location § Work trailer § Tent and chair rental business § Excavators

Much like our BPP policy, there are someperils that are covered as AdditionalCoverages. Everyone with the form gets these coverages, but there are specialized conditions placed on them.

- Fungus - Applies to Basic & Broad. 15,000 in a 12 month policy period - Collapse - Applies to Broad ONLY collapse caused by hidden decay hidden insects or animals that they can't see causing damage, weight of ppl or personal property, weight of rain on roof, use of defective materials in construction. also covers loss to property caused by collapse of personal property inside building such as storage racks in a warehouse. Collapse only covered if it isn't visible or foreseen

BPP Coverage Extensions 1. newly acquired or constructed property 2.personal effects and property of others 3. valuable papers and records

- Newly Acquired or Constructed Property:-$250,000 Building / $100,000 Contents. New Building must be for substantially similar use as building described in Dec Page. These coverages only apply if Insured has Building and Contents coverage (respectively) .Coverage ends at the first of 3 dates; • Policy Expiration • 30 Days after acquisition or start of construction • Date Insured Notifies Insurer of New Building Personal Effects and Property of Others- Provides limited coverage for the personal effects owned by an individual insured, partner, employee, etc. Excludes Theft. $2,500 limit per location. • Valuable Papers and Records - The policyonly covers the cost of blank materials and the labor totranscribe or duplicate. This extension covers costs toresearch and reconstruct. $2,500. Will follow covered causesof losses for Broad & Basic forms but is narrowed from Special Form

Real Property vs. Personal Property

- Real Property o Land and buildings o All property permanently attached to buildings o Driveways, sidewalks, underground piping, etc. o Plumbing, wiring, HVAC (within the walls) - Personal Property o All property that is not real property § Furniture, tools, cash, clothing, etc.

Property Covered only for "Specified Causes of Loss" • HINT: "Specified" = Broad Form Perils

- Valuable Papers & Records - Animals (Value if destroyed or destruction isnecessary )- Fragile Articles (if broken) • ex: glassware, statuary, marbles, chinaware, and porcelain - Builders' Equipment • while away from the described location

Non-Covered Causes of Loss (Special)

-Theft - Related Exclusions and Limitations - Dishonest Ace by Certain Individuals(Employee dishonesty) - Voluntary parting (trickery to remove merchandise) - Unauthorized instructions - Inventory shortages and unexplained disappearance - Theft of building materials - Dollar limitations (furs jewelry, precious materials tickets) bc they need a seperate policy •-Pollution -Loss of Use- covered by business income insurance • Additional Concurrent Causation Exclusion: - weather conditions, acts or decisions, faulty, inadequate, or defective -Production errors

what are the reasons for property not covered?

1) some kids of property such as smuggled goods are illegal to insure 2)some property may be much less susceptible to loss by most of the perils insured against 3) excluded bc they can be insured more advantageously under other forms look at pic on phone example for computer system

Exclusions not Subject to anti-concurrent causation language (4) but not covered unless result in fire or caused by a covered cause of loss

1)Artificially generated electrical current (2)Explosion of steam boilers (3)Mechanical breakdown (4) Neglect

3 commercial property loss exposures

1)Types of Property 2)Causes of Loss to Property 3) Financial Consequences of Property Losses

5 forms required for BPP

1)declarations 2)one or more commercial property coverage forms 3)one or more causes of loss form 4)commercial property conditions 5)any applicable endorsements package modification factors: premium discounts if you have more coverage

would these be covered? 1)leaking natural gas accumulated in the insured storage room and exploded 2)vandals break several windows in the insured building 3) a tree branch falls and damages the roof of the insureds store 4) an earthquake damages an insured building

1)yes 2)yes- vandalism peril broad 3)yes- broad form falling object peril 4)no not a covered cause of loss

4 Categories of Commercial Loss Exposures

1. Property Loss - Tangible (real estate, personal property) - Intangible (patent, copyright) 2. Personnel Loss - Death, disability, retirement, injury of employees 3. Liability Loss - Your responsibility for bodily injury, property damage, or financial loss to someone else 4. Net Income Loss - Reduction in income due to direct loss

the owners of a restaurant are insured under BPP coverage forms that covers their building for a 400k limit and buisness personal property for a 100k limit. the policy has a 1,000$ deductible. A covered cause of loss results in 100k damage to building and a 50k loss of buisness personal property. Assuming that no coinsurance penalty applies how much is payable?

149k

BPP Form: Additional Coverages 2.preservation of property 3. fire department surcharge

2. Preservation of Property: When property must be moved to be protected from further damage, it will be covered for "any direct physical loss or damage". Subject to policy limits. up to 30 days at new location 3. Fire Department Surcharge: Some jurisdictionsrequire a surcharge for utilizing the Fire Department. This additional coverage will pay up to $1,000 for payment as required by law or assumed under contract prior to the loss. This is in addition to the policy limits.

BPP Form: Additional Coverages 4. pollutant cleanup and removal 5. increased cost of construction 6.electronic data

4. Pollutant Cleanup and Removal: Provides limited coverage for pollutants in land or water, typically $10,000 in the aggregate per location. Must be reported within 180 days .5. Increased Cost of Construction: Provides coverage for increased costs due to changes in ordinance o rlaw. Only available if Replacement Cost Valuation. Limits damages to 5% of insurance limit or $10,000, whichever is less. Paid in addition to policy limits. look at example pic 6. Electronic Data: Aggregate limit of $2,500 peryear regardless of number of locations and occurrences.

3)Under the Building and Personal Property Coverage Form (BPP), which one of the following isproperty not covered? A)A retaining wall in front of the insured building B)A desk that was custom-ordered for the company's CEO C)A bottling machine the company is leasing long-term and required to insure in the leaseagreement. D)A crate used to carry empty bottles to the cleaning machine

A

Both basic and broad: 7) Riot or civil commotion 8)Vandalism

Acts of striking employees while occupying the described premises; and. Looting occurring at the time and place of a riot or civil commotion. this is the only place in basic and broad form where theft**** is covered not covered in vandalism vandalism: must be willful and malicious We will not pay for loss or damage caused by or resulting from theft, except for building damage caused by the breaking in or exiting of burglars.

Maintenance Exclusion

Eliminates coverage for losses typically preventable through normal maintenance or expected through the passage of time- includes (but not limited to): • Wear & tear • Rust, corrosion, decay, deterioration, and hidden or latent defect • Smog • Settling, cracking, shrinking, or expansion • Nesting or infestation, or discharge of waste products or secretions, by insects, birds, rodents, or other animals

Property vs Liability

If its YOUR stuff, it is a Property Risk.If you could be responsible for damage to SOMEONE ELSE'S stuff or for bodily injury to SOMEONE ELSE, it is a Liability Risk.

BPP may be

May be stand-along (mono-line )• Equivalent coverage may be part of a Package Policy (multi-line) - Especially common in the BOP (which isa type of Package Policy)

BPP Form: Additional Coverages 1. debris removal

Only if debris is due to a direct loss from a covered cause of loss. Sub-limit of 25% of direct loss plus Deductible + $25,000 if the combined debris removal and direct loss exceed the limit of insurance. Includes limited coverage for pollution. look at pic examples would not cover resulting from a flood or to remove debris of insureds automobile bc not covered. also wouldn't provide coverage for cleanup off premises pollution even when caused from a covered cause of loss

BPP coverage extensions 4)Property off-premises 5) Outdoor property 6) Non-owned detached trailers

Property Off Premises- Up to $10,000 forProperty that is away from its described location temporarily. in custody at a fair trade show or exhibition • Outdoor Property - Losses to items such as fences; antennas; signed not attached to buildings, trees, shrubs and plants. TheCauses of Loss forms do NOT apply. Only covered for FLARE (Fire, Lightning, Aircraft,Riot/Civil commotion and Explosion. Max value is $250 per tree, shrub or plant/$1,000 total, including debris removal. Can add broader coverage for this under the policy limits for additional premium. likely causes of loss to outdoor property like windstorm and vandalism are not covered • Non-Owned Detached Trailers -Coverage available only where Insured is responsible for purchasing insurance in accordance with the lease. Unless otherwise, shown in the declarations, maximum coverage is $5,000. does not apply while it is attached to any motor vehicle whether or not it is in motion • Business Personal Property Temporarily in Portable Storage Unit within 100 feet of described premises. coverage ends 90 days after property is placed in the unit. 10,000$ max

rating factors

RATE x Exposure Units = PremiumFor Property, "Exposure Units" areusually square footage. -a higher limit will increase the rate -a higher deductible will decrease the rate INSURERS will DECREASE theRATE when the Insured Accepts a HIGHERCOINSURANCE PERCENTAGE.• However, if the Insured only wishes to purchaseenough insurance to prevent a coinsurance penalty,they will need to increase the Limit of Insurancein order to ensure they meet the coinsuranceobligation. A higher limit increases the rate.• *Typically, the net effect of increasing the coinsurancepercentage is a lower rate Policy default is Actual Cash Value("ACV"). If insured wants ReplacementCost ("RC"), it will cost more. Insuredwill also need a higher Limit ofInsurance

Real Property vs. Personal Property

REAL Property - Land, all structures permanently attached to the land, and whatever is growing on the land- Examples include buildings, attachments to buildings, crops, buildings, driveways, sidewalks, underground piping and radio transmission towers PERSONAL property-anything that is not real property. examples are vehicles, merchandise, furniture, tools, clothing for real property, think real estate. When I move in and this will stay it is real property, also classroom examples

WTC silverstein v Insurers

Silverstein was responsible for insuring buildings no one believed they would lose the entire WTC complex and therefore he insured the entire complex for 3.5billion which is only the value of 1 tower. Bound based upon 2 different PROPRIETARY policy forms: willprop and travelers. Insureds would prefer will prop bc it would reduce likelihood of paying 2 deductibles. But they needed 2 occurrences to occur to pay the 7B needed. What form? -court ruled the majority of insurance companies had not signed on to the newly introduced travlers form. One loss to those insurers only paid 1 limit on the willprop. however, this attack was defined as 2 sets of terrorists taking 2 different places to hit 2 different buildings. Courts ruled: Silence is not assent. SwissRe eventually had to pay some of the $. Under the travelers policy this would be TWO separate occurrences and those insurance companies who had agreed to switch to the travelers form were ordered to pay double. Aftermath was contract certainty words matter!!!!

apply your knowledge look at pic for special form Q: what is the most common cause of loss form picked?

Special form

where does BPP coverage apply?

Specifically described premises ( on declarations page) +100 ft have to be specific it gives you 100 ft coverage in each direction box around 123 Main Street vs 123 Main Street suite d example

the special form is only really truly broader than the broad form in

THEFT coverage is matched in windstorm or hail and falling objects bc there is a exclusion

T or F when the preservation of property coverage applies the property is covered for any and all perils for up to 30 days

TRUE when stuff is moved to location to prevent loss ex hurricane, now things may happen to it that wouldn't before. The insurance company respects the insured is trying to protect the property and trying to preserve it so they cover it for 30 days and it would def get ruined if it was left in location

Anti-Concurrent Causation Language

There are some perils that insurance companies do NOTwant to pay for regardless of whether or not they occurconcurrently with covered perils.•Since the courts interpret language using the Concurrentcausation principle, Insurance companies developed Anti-Concurrent causation language for 8 perils. For these 8perils, coverage will NOT apply REGARDLESS ofwhether they appear concurrently with a covered peril this was developed to eliminate claims based on the concurrent causation doctrine ""We will not pay for loss or damage caused directly or indirectly by any of the following.Such loss or damage is excluded regardless of any other cause or even that contributes concurrently or in any sequence to the loss."

anti concurrent vs concurrent causation

anything under B1: anti concurrent language anything under B2: concurrent causation applies note: in anti concurrent clauses the perils that are covered are paid, the ones that aren't covered just aren't paid

6)6)Which one of the following statements about commercial property coverage forms is correct? A)Commercial Property Conditions specify the causes of loss for which the described property is B)Specialized coverage forms exist for insuring buildings under construction, condominium associationbuildings, and the property of condominium commercial unit owners .C)A commercial property coverage part cannot include more than one commercial property coverageform. D)Commercial property coverage forms cannot be used to insure the loss of business income

b

9)Which one of the following statements is correct with respect to the business personal property coverageprovided by the Building and Personal Property Coverage Form (BPP)?Select one :A)Leased personal property for which the named insured has a contractual responsibility to procurecoverage is excluded from the BPP, but the coverage can be added by endorsement. B)Except for limited off-premises coverage, coverage for business personal property applies only whenthe property is located in or on the described building or in the open (or in a vehicle) within 100 feet ofthe building or structure or within 100 feet of the premises, whichever is greater .C)The definition of business personal property limits the coverage to furniture, fixtures, machinery andequipment owned by the insured and used in the insured's business .D)"Your business personal property" specifically excludes labor, materials, or services furnished by theinsured on the personal property of others

b

in the Special form what are the SPECIFIED perils

broad form perils

BPP: Building

building/structure described in the declarations completed additions permanently installed fixtures, machinery, andequipment outdoor fixtures personal property owned by you used to service/maintain the premises additions under construction, alterations, and repairs to the building or structure materials, equipment, supplies and temporary structures within 100 feet of the premises used for additions, alterations, or repairs to the building or structure *fences and outdoor signs are excluded/limited *there's always coverage for your buisness pp and personal prop of others even if it dosent apply to you

)A building is insured for $100,000 under a BPP (unendorsed) with a 75% coinsurance clause. Thebuilding is completely destroyed by a covered peril. At the time of the loss, the building is valuedat $100,000. Additional costs incurred by the insured included $30,000 in Debris removal, $50,000 to comply with current building codes required by local ordinances and $15,000 in the clean up of resulting pollution. In addition, the insured spent $5,000 researching and reconstructing lostrecords (not electronic data).Ignoring deductibles, what is the total amount that insurance would pay for this loss?5)A)$100,000B)$125,000C)$140,000D)$160,0001

c

1)Coverage extensions under the Building and Personal Property Coverage Form (BPP) differ from additional coverages in that A)Additional coverages are not subject to the limits of insurance stated in the declarations. B)Coverage extensions include coverage for outdoor property, for all covered causes of loss C)Coverage extensions include up to $100,000 of business personal property coverage at most newly acquired locations. D)Additional coverages only apply if at least 80 percent coinsurance is stated in thedeclarations

c

Which one of the following statements is correct with respect to the Building and Personal PropertyCoverage Form's (BPP) coverage for personal property of others? A)Coverage for personal property of others applies only if the insured is legally responsible for thedamage. B)The BPP specifically excludes coverage for businesses (bailees) that have customers' property in theircustody, such as laundries, dry cleaners, appliance repair shops, and furniture upholstery shops. C)Even if the insured does not buy coverage for personal property of others the BPP still provides acoverage extension for personal property of others, which is limited to $2,500 at each insured location. D)The BPP covers personal property of others while it is located anywhere in the world

c

10)Which one of the following statements is correct with respect to the building coverage provided by theBuilding and Personal Property Coverage Form (BPP)? A)Machinery and equipment, whether permanently installed or not, must be insured as business personalproperty. B)Outdoor fixtures are excluded from building coverage. C)The BPP covers all buildings located at the insured premises whether specifically listed and describedin the declarations or not. D)Personal property owned by the insured and used to maintain or service the building or its premises isincluded in the BPP's definition of "building

d

Both basic and broad: 3)explosion 4)windstorm or hail 5)smoke

explosion: furnaces that explode and DAMAGE surrounding property especially if the explosion is caused by water aren't covered bc you should get it serviced and they insure it (other company)including the explosion of gases orfuel within the furnace of any fired vessel orwithin the flues or passages through which thegases of combustion pass Windstorm or hail: Windstorm includes a name storm, and tornadoes, does not cover inside of property unless exterior damage must occur before interior damage. If you leave windows open it won't cover. if room is damaged and then interior is damaged its covered.doesn't include Loss or damage by hail to lawns, trees, shrubs or plants which are part of a vegetated roof or frost/ cold weather ice Smoke: for smoke damage to be covered, it must be accidental. damage by industrial operations or agricultural smudging is not covered

covered in broad only (and special I guess) 1)Falling objects 2)weight of ice snow or sleet 3)water damage

falling objects: But we will not pay for loss or damage to Personal property in the open or The interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a falling object. weight of snow ice or sleet causes house to concave water damage limited- only from sprinkler system leakage is covered, breaking apart of pipe in house, NO FLOOD important to look at the source*** will pay for sprinkler, won't pay for pipes, but will pay for the water damage of pipes water damage: dosent pay for: loss or damage caused by or resulting from freezing, unless: (a) You do your best to maintain heat inthe building or structure; or (b) You drain the equipment and shut off the water supply if the heat is not maintained loss or damage caused by or resulting from continuous or repeated seepage or leakage of water, or the presence or condensation of humidity, moisture or vapor, that occurs over a period of 14 days or more;

Ex: Fire at a Bike Shop Limits :Building $0Your Personal Property: $30,000Personal Property of Others: $10,000 Where would it be covered? Damage Building : Damage to Unsold Bikes : Damage to Cash Register : Damage to Bike the Shop was Repairing for someone else : Client's Bike Brought In for repair New Tire (installed for client) Labor for Installation

look at pic on phone

Perils subject to Anti-Concurrent Causation Language (8 total) 1)ordinance or law 2)earth movement 3)governmental action 4)nuclear hazard

ordinance or law: Regulating the construction, use or repair of any property; or Requiring the tearing down of any property including the cost of removing its debris (what it applies to) applies whether the loss results from: -An ordinance or law that is enforced even if the property has not been damaged; or The increased costs incurred to comply with an ordinance or law in the course of construction, repair, renovation, remodeling or demolition of property, or removal of its debris, following a physical loss to that property earth movement: earthquake, landslide, mine stuff, earth sinking due to soil conditions such as freezing, improperly impacted soil, water movement under soil. Sinkhole collapse is covered tho. Earthquake coverage can be added for additional premium if earthquake causes fire that is covered/ if volcanic action causes a fire that is covered. If any of the forces of earth movement above cause a fire that is covered governmental action: seizure or destruction of property by governmental action is not covered. but destruction of property by governmental order to stop spread of a covered fire is covered. Nucelar hazard: But if nuclear reaction or radiation, or radioactive contamination, results in fire, we will pay for the loss or damage caused by that fire if it dosent tho it isn't covered

Both basic and broad: 9)sprinkler leakage 10)sinkhole collapse 11)volcanic action

sprinkler leakage: this covers repair to sprinkler and repair to anything damaged while trying to get to sprinkler. Automatic sprinkler systems, the escape of any substance (water, carbon dioxide; or any other extinguishing agent) from an automatic fire protection or extinguishing system. pays if damage is caused by freezing pays to replace the sprinkler and building Sinkhole collapse: does not cover sinkhole over manmade hole or cover cost of filling sinkhole Volcanic action: anything erupting OUT of a volcano, airborne (does not cover earthquakes typically associated with volcanoes when it erupts) covers lava ash that DAMAGES something. dosent cover flood/landslide/mudslide This cause of loss does not include the cost to remove ash, dust or particulate matter that does not cause direct physical loss or damage to the described property. 168 time period for one occurrence and subject to only one deductible and policy limit

which is NOT INCLUDED the BPP BUILDING coverage structure outdoor fixtures stock completed additions

stock (this is covered in your PP and often referred to as contents- stuff inside building) there a building, your PP and PP of others, know what is covered in each section

Perils subject to Anti-Concurrent Causation Language (8 total) 5)Utility services 6)War and military action

utility services: ex: if lightning takes out an overhead power line then any loss caused by resulting power failure is not covered. however, the exclusion does to apply to a covered peril: ex: loss of electrical power causes a natural gas leak that results in an explosion (covered cause of loss) then it would be covered. war and military action: this does not apply to acts of terrorism such as 9/11 attacks. Intead, insurers attach a serape terrorism exclusion endorsements unless the insured purchases terrorism coverage

Perils subject to Anti-Concurrent Causation Language (8 total) 7)Water 8)Fungus, Wet Rot, Dry Rot, and Bacteria(Mold)

water: damage from naturally occurring water. ex: hurricane Katrina is subject to anti concurrent causation language. the word driven rain damage was covered but the flood damage was not covered bc it was naturally occurring water and this is excluded.An example of a situation to which this exclusion applies is the situation where a dam, levee, sea wall or other boundary or containment system fails in whole or in part, for any reason, to contain the water. But if any of the above, in Paragraphs (1)through (5), results in fire, explosion or sprinkler leakage, we will pay for the loss or damage caused by that fire, explosion or sprinkler leakage they will cover fungus: But if "fungus", wet or dry rot or bacteria result in a Covered Cause of Loss, we wil lpay for the loss or damage caused by thatCovered Cause of Loss.This exclusion does not apply:(1) When "fungus", wet or dry rot or bacteria result from fire or lightning; or(2) To the extent that coverage is provided in the Additional Coverage, LimitedCoverage For "Fungus", Wet Rot, DryRot And Bacteria, with respect to loss or damage by a cause of loss other than fire or lightning

Causes of Loss Form

which PERILSare covered. The causes of loss formmust be linked to a coverage form suchas a BPP, BIC or a BOP in order to forma complete policy.

according to coverage extensions when does the BPP provide coverage

you rent a trailer that sits on your property and you are using them on your property coverage extension, up to 5k on that

BPP: Your Business Personal Property

• Also, commonly referred to as "contents" • Property owned by the insured 1. furniture & fixtures 2. machinery & equipment 3. stock 4. all other personal property owned by you and used in your business 5. Labor, materials, or services furnished on property of others but not the property that actually belongs to someone else. 6. Improvements and betterments 7. Leased personal property:ex- a lot of time companies dont own computers but u insure and treat it like your own 1. must be leased 2. insurance must be required located in or on described building or within 100 feet of building or described premises (or in vehicle within that distance) whichever is GREATER*

BPP Coverage Extensions

• Apply only when there is a Coinsurance Clause of 80% or higher OR a Value Reporting Symbol. • Coverage limits are in addition to stated policy limits. - Newly acquired or constructed property - Personal effects and property of others - Valuable papers and records - Property off-premises - Outdoor property - Non-owned detached trailers

Basic and Broad Causes-of-Loss Forms:Perils Covered (named- perils aka named form)

• Both Forms Cover :1) Fire2) Lightning3) Explosion4) Windstorm or hail5) Smoke6) Aircraft or vehicles7) Riot or civil commotion8) Vandalism9) Sprinkler leakage10) Sinkhole collapse11) Volcanic action12) Fungus (additional coverage) Broad Form Also Covers:1) Falling objects2) Weight of snow, ice, sleet3) Water damage4) Collapse (additional coverage)

Types of Property Loss Exposures (4)

• Contents- stuff that is inside the building includes stock and personal property of others in insureds care ex: desks in class • Property in Transit- in car or on way to somewhere think amazon prime. A firm that needs broader coverage can purchase separate cargo insurance • Property in the Possessions of Others- we rent out property ex:bouncy house or something at dry cleaners or bike shop. Can also purchase separate broader policy • "Floating" Property- think lawn care company. Property does not remain at a fixed work site

Financial Consequences of Property Loss

• Cost to Repair / Replace Damaged Property • Business Income lost while damageis repaired or item is replaced .• Extra Expenses incurred to resume operations.

Personal Property of Others

• In your care, custody or control; and • Located in or on the building or structure described in the Declarations + 100 feet. • Payment made to owner of property NOT to the Insured. NOTE: Coverage Extensions provide$2,500/Location. If you need more, include ahigher limit in Personal Property of Others.

Additional Coverages & Extensions (special)

• Like the Basic & Broad, also covers"Fungus" • Like the Broad, also Covers Collapse • Property in Transit +$5000 this is a low limit so they should consider covering under inland marine or ocean marine policy • Water Damage, Other Liquids, Powderor Molten Material Damage: pays if damage caused by freezing or repairs to fire extinguishing equipment results from discharge of any substance -glass: pays for temporary glass. but basic broad insure glass breakage by covered cause of loss REMEBER: • One of the causes of loss forms must be added to the BPP form .• The causes of loss form tells us the PERIL,while the BPP form tells us which property is covered

Exclusions: Special, Basic & Broad

• Ordinance or Law • Earth Movement • Governmental Action • Nuclear Hazard • Utility Services • War and Military Action • Water • "Fungus", Wet Rot, DryRot, and Bacteria • Artificially Generated Electrical Current • Steam Boiler Explosion • Mechanical Breakdown • Neglect (aka everything that has anti concurrent lang)

Exclusions to Match Broad-Form Coverages (special form)

• Windstorm or Hail • Smoke, Vapor, or Gas • Rain, Snow, Ice, or Sleet to Personal Property in the Open • Continuous Seepage or Leakage • Leakage Resulting From Freezing • Collapse Since this is an open perils policy, ifsomething is not excluded, it iscovered. Therefore, we must addexclusions for things like"maintenance" and "decisions"