Antenna Coverage, CP-606

 

When the insured chooses a coinsurance percentage of 80 percent or more, the basic policy provides some coverage for outdoor radio, television, satellite, dish-type, or other antennas and their masts, towers, and lead-in wiring. However, the insured may purchase separate coverage by scheduling antennas on endorsement CP-606.

 

Automatic Increase, CP-111

 

The insured may choose to have the limits of covered property automatically increased by a certain annual percentage by adding form CP-111. This endorsement is not available for buildings under construction or for reporting form policies.

 

Brand or Label Permit, CP-112

 

When a loss occurs, the insurer may take the damaged property at an agreed or appraised value. The insured may receive permission to stamp “salvage” on that property or to remove brands and labels from it. However, this must be done at the insured's expense.

 

Debris Removal Coverage, CP-125

 

In the property coverage parts, debris removal expense is included in the limit of liability. When the amount of direct damage and debris removal expense exceed the limit of liability, an extra $5,000 is automatically available. The insured may choose to increase that $5,000 by adding endorsement CP-125. The agent should identify the property to which the endorsement applies and indicate a specific limit for debris removal coverage on the declarations or in the CP-125.

 

Exclusion – War and Military Action, CP 0643 01 08

 

This mandatory endorsement deletes the war exclusion wherever it appears and replaces it with this exclusion for war and military action. Loss or damage caused directly or indirectly by war (including undeclared civil war); warlike action by a military force (including action in hindering or defending against an actual or expected attack) by any government, sovereign, or other authority using military action; or, insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these is not covered.

 

This exclusion supersedes the nuclear hazard exclusion with respect to any actions that comes within the terms of this exclusion and involves nuclear action or radiative contamination.

 

Exclusion – Water Damage, CP 0171 10 08

 

This mandatory endorsement amends the Fire Perils Part, Basic Perils Part, Broad Perils Part, and Special Perils Part. The water exclusion is replaced with this exclusion, which excludes flood, surface water, waves (including tidal waves and tsunami), tidal water, tides, overflow of any body of water, or spray from any of these—all whether driven by wind or not, including storm surge, storm tide, and tidal surge. Water that backs up through, overflows from, or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment, or other type of system designed to remove water is not covered. Water below the surface of the ground, including water that exerts pressure on or flows, seeps, or leaks through or into basements, doors, windows, other openings, foundations, floors, walls, paved surfaces, swimming pools, septic tanks, or others structures is not covered. Also excluded is material present in or carried by water as described.

 

If fire, explosion, or sprinkler leakage (if covered) results, the resulting loss is covered.

 

The exclusion applies whether or not the cause of the water or waterborne material is an act of nature. The exclusion also applies if the water or waterborne material—whether or not driven by wind—overtops, escapes from, is released from, or is otherwise discharged from a dam, levee, dike, floodgate, seawall, or other device or feature used to retain, contain, or control water.

 

The water damage exclusion of the Earthquake Perils Part is also replaced by this endorsement. The definition is similar to that previously described but does not provide coverage for resulting loss from fire, explosion, or sprinkler leakage.

 

Functional Replacement Cost, CP-608

 

Sometimes the replacement cost option is not the best choice for certain types of property. Typically, a problem presents itself when the cost to replace damaged property with functionally equivalent property is more than its actual cash value and less than its replacement value. In this case, the insured may purchase endorsement CP-608, functional replacement cost. When in use, this endorsement allows for the use of functionally equivalent materials when settling a loss. For example, a solid mahogany banister would be replaced with a pine banister.

 

Household Personal Property Coverage, CP-24

 

The insured may cover household personal property in covered buildings and structures. This includes household personal property that belongs to a family member or domestic worker of the insured. It also includes household personal property for which the insured may be legally liable. The agent should add endorsement CP-24 and make the appropriate charge.

 

Manufactured Stock Valuation, CP-133

 

The basic policy values a manufacturer's finished stock the same as any other business personal property. However, that valuation method may be changed to reflect the selling price of the stock less discounts and unincurred expenses. The agent should add endorsement CP-133, manufactured stock valuation. There is no premium adjustment.

 

Market Price Valuation—Distilled Spirits, CP-135

 

Endorsement CP-135 functions like the CP-133, only for distilled spirits. It changes the valuation of distilled spirits held by a distiller to market price. No premium adjustment applies.

 

Optional Property Coverage, CP-23

 

The building and personal property and condominium building coverage parts list several types of building and business personal property as excluded. With endorsement CP-23, the insured may buy-back coverage for the following building items:

 

·awnings or canopies of fabric or slat construction or their supports

·cost of excavations, grading, or filling

·fences

·foundations below the lowest basement floor or below ground level if there is no basement

·paved outdoor surfaces, including driveways, parking lots, roads, bridges, and walks

·pilings, piers, wharves, or docks

·retaining walls that are not part of buildings or structures

·underground pipes, flues, and drains

 

The insured may also purchase coverage for the following types of personal property, which are normally excluded: animals and vehicles or self-propelled machines (including aircraft or watercraft and their motors, equipment, and accessories) that are required to be licensed for use on public roads or operated principally away from the described premises. This does not include automobiles held for sale.

 

The insured may choose separate coverage on these items by showing a specific limit for each. Or, the insured may include them with all other covered building property by increasing the building or personal property limit accordingly. An additional premium applies for use of the CP-23.

 

Ordinance or Law Extension – Increased Cost of Construction, CP-138

 

The basic policy provides $5,000 of coverage to meet such increased costs. Endorsement CP-138 may be purchased to provide amounts above that $5,000. An additional premium applies.

 

Outdoor Signs, CP-605

 

The AAIS coverage parts cover outdoor signs for $1,000 for direct loss from limited perils. If the insured desires a higher limit, endorsement CP-605 is available. On this form, each sign is scheduled with its own limit of liability. An additional premium applies.

 

Peak Season Increase, CP-144

 

The inventory of many businesses is subject to seasonal changes in values. Instead of trying to keep up with these changes, the insured may purchase this endorsement to provide additional coverage during that time of the year when the values are increased. This endorsement is not available with reporting forms.

 

Pollutant Clean Up and Removal Coverages, CP-123

 

The AAIS commercial property policy provides an annual aggregate amount of $10,000 for pollutant clean up and removal. The insured may purchase extra amounts of this coverage via endorsement CP-123.

 

Property Excluded, CP-157

 

Just as endorsement CP-23 adds coverage for property that is normally excluded, endorsement CP-157 removes coverage for property that is normally covered. The insured may choose to exclude coverage for the following types of building property:

 

·architect's fees

·crop silos

·chimneys or smokestacks

·swimming pools, diving towers, or platforms

·windmills, windchargers, waterwheels, wind pumps, or their towers

·property more specifically insured

 

The CP-157 may also be used to remove coverage for the following types of business personal property:

 

·contents of crop silos

·glass, other than building or structural glass

·indoor signs

·metals in ingots, pigs, billets, or scraps

·ores, gravels, clay, or sand

·property of others

·personal property in safes or vaults

·property stored in open yards

·vending machines or their contents

·property more specifically insured

·tenants improvements and betterments

·all personal property other than stock

 

While use of endorsement CP-23 results in an additional premium for the insured, there is no premium credit for use of the CP-157.

 

Spoilage Coverage, CP-601

 

This endorsement provides spoilage coverage for covered property described in the included schedule, a separate schedule, or supplemental declarations. The schedule allows the insured to select the perils covered from three choices: breakdown and contamination, power disruption, and refrigeration maintenance or service agreement.

 

The endorsement covers perishable stock—defined as property preserved and maintained under controlled conditions and susceptible to loss if the controlled conditions change—owned by the insured or by others that is in the insured's care, custody, or control. Perishable stock is covered only while at the premises described in the schedule.

 

Exclusions for disconnection or deactivation, glass breakage, and inability to provide sufficient power are added by this endorsement. Losses that occur when the insured knows of any suspension, termination, cancellation, or impairment of an applicable refrigeration maintenance or service agreement and does not notify the insurer are not covered.

 

Storage or Repairs Valuation, CP-167

 

Many insureds hold the property of others, either in storage or while repairing it. Often the insured gives the customer a receipt for the value of that property. The insured may choose to limit the valuation of such property to the amount shown on the receipt given to the customer. No premium adjustment applies.

 

Trees, Shrubs, and Plants, CP-610

 

The commercial property policy provides limited coverage for outdoor trees, shrubs, and plants not held for sale. The insured may purchase extra coverage for these items via endorsement CP-610. Trees, shrubs, and plants grown for commercial purposes or for standing timber are ineligible.

 

The endorsement provides a schedule to show limits per each tree, shrub, and plant along with an aggregate limit for each location. The insured may also choose whether or not to apply the vehicle peril.

 

Vacancy or Unoccupancy Permit, CP-170

 

The commercial property policy does not provide coverage after sixty days of vacancy or unoccupancy for the perils of attempted theft, breakage of building glass, sprinkler leakage (unless protected from freezing), theft, vandalism, or water damage. The payment for any other covered loss is decreased by 15 percent during such periods.

 

The insured may remove these restrictions by purchasing endorsement CP-170.

 

Virus or Bacteria Exclusion, CL 0700 10 06

 

This mandatory endorsement amends the definitions of “fungus” and “fungus or related perils” to delete reference to a bacterium. It adds an exclusion for virus or bacteria, stating that loss, cost, expense caused by, resulting from, or relating to any virus, bacterium, or other microorganism that causes disease, illness, or physical distress or that is capable of causing disease, illness, or physical distress is not covered. The exclusion applies to any loss, cost, or expense resulting from any contamination by any virus, bacterium, or other microorganism or any denial of access to property because of virus, bacterium, or microorganism.

 

The exclusion supersedes terms of other exclusions referring to “pollutants” or to contamination with respect to loss, cost, or expense caused by, resulting from, or relating to any virus, bacterium, or other microorganism that causes disease, illness, or physical distress or that is capable of causing disease, illness, or physical distress.

 

Water Backup and Overflow Coverage, CP-607

 

All perils parts exclude damage by water that backs up through sewers, drains, sumps, sump pumps, or related equipment. The insured may buy back coverage with endorsement CP-607. The endorsement does not pay to repair or replace sump pumps or related equipment due to mechanical breakdown. An additional premium applies.