Property can be assigned many “values” depending on the purpose of the valuation and who is valuing it. But insurance is concerned with only four options: actual cash value, replacement cost, functional replacement cost and market value.
A mural is a very real insurance exposure, and a very popular addition to many both public and private commercial buildings and residences. One underwriter reported writing $500,000 coverage on an exterior mural, just for the mural, NOT the building. Just an “average” mural (painted by a local, unknown artist) can cost the building owner…
Commercial property underwriters have utilized essentially the same information for nearly 400 years: Construction, Occupancy, Protection and Exposure. Known to us mortals as “COPE.” When the correct COPE information is provided, the insurance mechanism performs as intended. However, ISO estimates that approximately 50 percent of commercial properties are incorrectly “rated” from a COPE perspective. The…
Departments of Insurance across the country are bracing for the introduction of new commercial property policy language promised by the newly-formed property insurance bureau the Dominion of Organized Property Exchanges (DOPE). How might the “Injudicious Act” exclusion affect property pricing?
If your client has a mural on the inside or outside of the building, how do you cover it? Is it covered by the property policy? Is there any special wording in the proprietary form that provides coverage? Many agents don’t consider insuring a mural, but it could be a very expensive exposure for your…
If your client has a mural on the inside or outside of the building, how do you cover it? Is it covered by the property policy? Is there any special wording in the proprietary form that provides coverage? Many agents don’t consider insuring a mural, but it could be a very expensive exposure for your…
Valued policy laws require the insurance carrier to pay the face amount of the policy if the structure is a “total loss.” In these situations, it does not matter if the replacement cost is less than the face amount. This article links to a list of states with valued policy laws and the particulars of…
September 1, 2017, ISO introduced six new changes to the commercial property program. As part of this filing, ISO altered the CP 10 30 Cause of Loss – Special Form, introduced two new building coverage options for tenants, revised two protective safeguard endorsements, created new waiting period options for the CP 15 45, created a…
Never assume the named insured owns the building. You need to ask what seems like a ridiculous question because ownership of the building may be held by another “person” related to the operation. The president of the corporation may own the building personally, but in his mind there is no difference. Not protecting the actual…
Bad decisions cause commercial property clients to pay higher property premiums. Sadly, the insured may not even recognize their poor choices. Worse still, agents can help clients identify their bad decisions with the right information.
