Be Aware of Recent Revisions to ISO Commercial Property Coverage Forms
- ...property is blown onto the insured premises; e.g., part of an adjacent roof or fallen trees from a neighboring property, automobiles, or even farm animal carcasses. The revised form now includes coverage for the removal of debris of the property of others, but there are limitations:
- If no covered property is damaged and the only debris to be removed is the property of others, coverage is limited to $5,000.
- Mud or earth deposits are excluded.
- If the debris is from property listed under Property Not Covered, no coverage applies. (Although the Property Not Covered provision excludes animals, the exclusion does not apply if animals are owned by others and boarded by the insured.)
Newly acquired business personal property is no longer automatically covered … .
- The Outdoor Property Coverage Extension is revised to cover removal of trees and plants that are the property of others (except where the insured is a tenant and the property is owned by the landlord). The extension's usual sublimits apply: $250 per item and $1,000 per occurrence.
- Property in Portable Storage Units (PSUs) — A new extension, Business Personal Property Temporarily in Portable Storage Units (or Pods), is included in the revised form. Note that the contents of the pod are covered, not the pod itself. Contents in a detached trailer are also covered, but the PSU units must be within 100 feet of the described premises and coverage is limited to 90 days. Coverage does not apply if the unit itself has been on the premises for more than 90 consecutive days, even if the contents have been stored there for 90 days or less at the time of loss. A $10,000 limit applies, which can be increased. The limit applies regardless of the number of units; thus, this is a per-occurrence limit, not a per- unit limit. The overall policy limit is not increased by this extension.
- Extended Business Income —With business income (business intßerruption) coverage, the period of restoration ends when the insured returns (or should return) to normal operational capacity. At this point, business income payments cease and coverage is picked up under the extended period of indemnity provision in the policy. This provision gives an insured some additional time to get the business up and running again. In reality, net income does not always return to normal as soon as normal operations are restored. For example, a...
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