PROP. DEFS. & BASICS
This coverage protects the physical structure of a commercial building.
What is Building coverage?
Replacement cost minus depreciation.
What is actual cash value (ACV)?
The amount subtracted from every claim before payment.
What is deductible?
Covers outdoor property within 1,000 feet
What is Property in the Open?
Basic, Broad, and Special are these.
What are Causes of Loss forms?
Furniture, inventory, and equipment owned by the insured fall under this.
What is Business Personal Property?
A penalty applied when an insured doesn’t carry enough insurance.
What is coinsurance?
A 2% wind/hail deductible is calculated using this.
What is the building limit?
Covers BPP temporarily away from the premises.
What is Property Off-Premises?
Covers only named perils.
What is the Basic or Broad form?
The term for the maximum the insurer will pay for a covered loss
What is the limit of insurance?
A building with a $1,000,000 RC and 80% coinsurance must carry this amount.
What is $800,000?
A deductible that applies separately to each damaged building.
What is a per-building deductible?
Pays above the limit to remove debris after a covered loss.
What is Debris Removal?
Excludes wear and tear, settling, rust, and corrosion.
What is the Special Form?
Outdoor signs, fences, and unattached structures are examples of this type of property.
What is Other Structures or Outdoor Property?
A loss payment is reduced because only half the required limit was carried.
What is a proportional coinsurance penalty?
A deductible that overrides the base deductible for a specific peril.
What is a special deductible?
Covers the fire department’s bill for responding.
What is Fire Department Service Charge?
Sudden cracking or bulging caused by weight of water.
What is collapse?
The distance within which BPP is covered at or around the premises.
What is 100 feet?
Valuation automatically used when the policy is not written at replacement cost.
What is ACV?
Limit that covers permanent improvements made by a tenant.
What is the BPP limit/tenant improvements & betterments?
Pays to restore lost electronic information.
What is Electronic Data coverage?
Water flowing over land into the building.
What is flood