Insurance carriers often provide what is referred to as a RCP Code. The code comes from ISO data and provides a lot of information. With this code, agents have a lot of information and can use it to advise their clients. This article details each part of the RCP and provides some insight on how…
COPE underwriting is the basis for commercial property underwriting and has been for nearly 400 years. Understanding Construction, Occupancy, Protection and Exposures is imperative to properly present and underwrite property coverage.
Your insured leases (all or a part of) a building and the lease makes him responsible for damage to the HVAC equipment. The lease might also make him responsible for other real property beyond just the space he occupies. He has a BOP policy for his business personal property…does the FDLL coverage take care of…
ISO revised various General Liability coverage forms and endorsements effective April 2013 to reflect the changing needs of insureds and insurers. As with all program changes, the revisions include broadening of coverage, narrowing of coverage, and editorial changes that have no impact on coverage. Of course, it is the narrowing of coverage that always presents…
An insured buys gets a steal on a new building, paying $2.5M for a building with a replacement cost of $12M. The insured is concerned with protecting his investment rather than the cost to rebuild. What should the agent do?
The 2012 ISO Commercial Property filing changes both policy forms and endorsements. The forms have an edition date of October 2012. Since the changes include both broadening and reduction of coverage, agents need to be aware of any reductions to reduce the E&O exposure. This article will deal with all of the major changes.
Lease agreements can take many forms. One of the increasingly more popular ones is a triple net lease. While it has historically been used more often for the long-term lease of larger properties, it is showing up more and more often in 3-5 year leases of smaller properties, many insured under BOP’s. Here are some…
A not-for-profit company leases a building from the state for $10 per year. The state self-insures this 50 year old building. If there is a loss to the building, the state would not likely repair it. The tenant would be looking for a new home at a greatly increased cost of rent. This insured is…
The position of many of the VU faculty on triple net leases is well known…many of us abhor them. However, they are an unfortunate fact of life. If your tenant must sign a lease making him or her responsible for insuring only portions of a building such as glass or HVAC units, what is the…
Triple net leases make the tenant responsible for insuring the building or parts thereof. In another article, we discussed how dangerous these provisions can be to both the owner and tenant. Recently, an agent asked, “In the event the tenant commits arson and destroys the building, how do you protect the building owner’s interest in the…