Be Aware of Recent Revisions to ISO Commercial Property Coverage Forms
- Vegetated Roofs — “Property Not Covered” includes land (including land on which the property is located), water, growing crops or lawns. Now there is specific language making an exception to the exclusion for lawns that are part of a vegetated roof. This is an acknowledgement that environmentally friendly or green construction methods are in use and becoming more popular. However, there are restrictions in that coverage does not apply to loss to vegetation caused by dampness or dryness of atmosphere or soil, temperature changes or extremes, disease, frost, hail or rain, or weight of snow, ice or sleet.
- Electronic data — In previous forms, a $2,500 electronic data limit applied to all data, including data integrated into building systems such as HVAC, elevators and security systems. Now business personal property and business income coverages allow full coverage (not limited to $2,500) for data integrated in or controlling these systems.
- Debris removal —This coverage has created its share of confusion, particularly with the math involved in combining the coverage limit with the additional coverage for debris removal. In previous forms, debris removal coverage is limited to 25 percent of the loss (including the deductible) plus an additional $10,000. The $10,000 figure was considered too low and the additional coverage has been increased to $25,000. The policy form itself includes two examples of the application of debris removal coverage in claim situations which are helpful in understanding how it is applied. (Note that additional limits over $25,000 are available if needed. Those insureds needing additional coverage should check with their agent.) A second problem is that previous forms limited coverage to debris of covered property; that is, the insured’s property. Removal of debris from the property of others is excluded. Picture a serious windstorm or tornado where someone else’s...
Your Business Personal Property … The new wording is revised to extend coverage to such property within 100 feet of the described premises or the building, whichever is greater.
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