Property Definitions
Buildings
Building coverage provides protection for permanent structures listed in the policy. Completed additions, permanently installed fixtures, machinery and equipment, outdoor fixtures, owned personal property used to service, repair or maintain the building and additions under construction or repair are all included in this definition.
Blanket Insurance
This coverage allows for a single limit of insurance to apply to two or more property items at one location, or to two or more kinds of property at several locations, instead of a specific amount applying to a specific subject of insurance. It allows you to shift property values with no impairment of recovery, as long as the total amount of insurance carried complies with the coinsurance requirement stated in the policy.
Co-Insurance
A policy may contain a coinsurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. For example, covered property worth $100,000 may require a minimum of 80%, or $80,000, of coverage for compliance with the policy’s coinsurance requirement. If only $60,000 of coverage is carried (25% less than the required $80,000), then any loss payment would be reduced by 25%.
Deductible
A policy may include a deductible in its provisions. This limit is the amount that will be deducted from any payment made to you because of a covered loss.
Business Personal Property
This coverage protects personal property owned by your firm and used in your operations. Furniture and fixtures, equipment and machinery, raw stock, and finished goods all fall within this category. Personal property of others while located in your covered building or within 100 feet of the premises are insured. Contents located off premises are not covered and must be insured by alternate methods.
Replacement Cost Valuation
This loss valuation method pays for the cost to repair or replace damaged items with like kind and quality without deduction for depreciation. This is important since you could face a substantial loss if you must replace property at today’s prices but receive only the depreciated value of the property that was destroyed.
Actual Cash Value Valuation
This valuation method pays for the cost to repair or replace damaged property with like kind and quality, less reasonable deductions for wear and tear, deterioration, and economic obsolescence.
Agreed Value Valuation
This coverage is used to remove the coinsurance requirement for covered property. With it your company agrees that the amount of coverage purchased is adequate, and any coinsurance requirements are waived if the limit of insurance equals the agreed value.
Inflation Guard
This coverage is used to automatically increase the limits of insurance on covered property by a predetermined percentage at regular intervals. Its purpose is to eliminate the risk that inflation will lead to coinsurance penalties and under insurance.
Inflation Guard
This coverage will protect covered property against direct loss arising from any cause not specifically excluded. The advantage of this form is that the insurance company must prove that a loss is specifically excluded in order to deny coverage under the
policy.
Basic Cause Of Loss
This coverage is used to provide protection for the following causes of loss: fire, lightning, explosion, windstorm, hail, smoke (except from agricultural smudging or industrial operations), aircraft, vehicles, riot, civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
Broad Cause Of Loss
This coverage is used to provide protection for the following causes of loss: fire, lightning, explosion, windstorm, hail, smoke (except from agricultural smudging or industrial operations), aircraft or vehicles, riot, civil commotion, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, breakage of glass, falling objects, weight of snow, ice or sleet (except for damage to gutters, downspouts or personal property outside of buildings), and limited water damage.
Building Ordinance Or Law Coverage
Your Property policy includes some limited protection for increased costs of construction due to the enforcements of laws that arises from a covered loss. This coverage is limited to the damaged portion of a covered structure with a maximum limit of $10,000 or 5 percent of a covered loss. This endorsement can be used to broaden this basic verbiage to include protection for three additional coverage exposures: Coverage A - payment for the value of the undamaged part of a building when a building code requires its demolition following a partial loss. Coverage B - coverage for the expense of demolishing the undamaged portion of a building damaged by an insured peril including the cost of removing the debris. Coverage C - coverage for the increased costs of construction resulting from enforcement of construction or building laws. This coverage applies to both the damaged and undamaged portions of the structure.
Improvements and Betterments
This coverage is used to extend your Property policy to insure against loss of specified alterations or additions that you have made in the building you rent or lease. This is important because these improvements become the property of the building owner and you may not be compensated for their destruction after a covered loss without this coverage.
Personal Property
This coverage protects personal property owned by your firm and used in your operations. Furniture and fixtures, equipment and machinery, raw stock, and finished goods all fall within this category. Personal property of others while located in your covered building or within 100 feet of the premises can also be insured. Contents located off premises are not covered and must be insured by alternate methods.
Personal Property In Transit Coverage
This provision extends your Property policy to include specified protection for your personal property (other than property in the care of sales persons) while such property is being transported in a motor vehicle owned, leased, or operated by you.
Personal Property Of Others
This provision of your Property policy extends coverage to insure against loss of personal property of others while in your care, custody or control, up to the limits specified in the form.
Spoilage
This endorsement is used to insure against loss to perishable stock when caused by a change in temperature or humidity that results from mechanical breakdown, contamination or power outage. Please note that coverage for these additional perils must be indicated on the form for it to be activated and includes protection for both on premises and off premises power sources.
Corporate Philosophy:
Our commitment is to assist clients with the development of a comprehensive insurance program tailored to each client’s specific needs, size, and future growth plans. Focusing primarily upon industry leaders who seek to develop a long-term relationship with their insurance professionals, our goal is to offer insurance coverage with excellent service, and competitive pricing.
Because we genuinely care about our clients, we have developed a reputation for outstanding customer service. With highly skilled servicing teams, we are enthusiastic, and dedicated to providing clients the quality service their business deserves.
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