The Rapacioli Group, Real Estate Agent
LAER Realty Partners
Provision for coverage for buildings and personal property within the simplified commercial lines portfolio policy (sclp). The buildings and personal property coverage may be classified in three ways:
- Owned buildings these buildings are listed and described in the DECLARATIONS SECTION of the policy. Also covered is anything that has become a permanent part of the buildings, to include additions, fixtures, extensions, and machinery and equipment.
- Owned business personal property property covered is the business personal property that is owned by the insured and is common in the occupancy usage by the insured.
- Non owned business personal property properties covered are improvements and betterments (alterations made by the insured to a building that he or she is leasing and that cannot be removed upon the termination of the lease), and personal property of someone other than the insured that is under the care, custody, or control of the insured.
Extensions of coverage are available under the BPPCF to include:
- outdoor property trees, shrubs, and plants; signs; radio and television antennas; and fences. There is an overall limit of $1000 and a sub limit of $250 for each tree, shrub, or plant.
- valuable papers and records cost of replacing or restoring information lost because of the damage or destruction of valuable papers and records. There is a $1000 limit of coverage.
- personal effects and property of others-personal effects of the named insured, employees, and others that are under the care, custody, or control of the insured.
- business personal property on location at premises newly acquired 10% of the owned business personal property coverage is applicable, subject to $100,000 limit for each building. Thirty days after the acquisition of property, coverage terminates.
- newly acquired buildings or additions 25% of the owned building coverage is applicable, subject to $250,000 limit for each building.Within 30 days, newly acquired buildings or additions must be reported by the insured.
- 6. off-premises property property on a temporary location (other than a vehicle) not owned, leased, or operated by the insured.
PERILS insured against are available under three forms:
- basic form includes fire, lightning, windstorm, hail, explosion, vandalism, smoke, sprinkler leakage, riot or civil commotion, sinkhole collapse, volcano.
- broad form includes perils found under the basic form plus falling objects causing exterior damage that results in interior damage; weight of ice, sleet, and snow; accidental discharge of water or steam from a system or appliance containing steam or water, but not including an automatic sprinkler system; and breakage of glass; subject to a $500 maximum limit.
- 3. special cause-of-loss form includes all direct accidental losses except those specifically excluded in the policy (such as flood, war,wear and tear, and earth movement).
ENDORSEMENTS can be added to the BPPCF to include:
- perils extension adds earthquake, volcanic eruption, and radioactive contamination.
- limits of recovery extension increase maximum dollar amounts of coverage for trees, shrubs, and plants; radio and television antennas; and outdoor signs.
- 3. replacement cost endorsement changes basis of recovery under the BPPCF to a REPLACEMENT COST LESS PHYSICAL DEPRECIATION AND OBSOLESCENCE from an ACTUAL CASH VALUE basis.