Coverage part = declarations + coverage form + causes of loss form + conditions.

Building: structure, completed additions, fixtures, permanently installed machinery; dwellings not eligible.

BPP without the replacement cost option is valued at ACV: replacement cost less physical depreciation (§2051(b)).

Improvements and betterments: tenant paid, made part of the building, not removable; insured as BPP.

Not repaired promptly: original cost × remaining lease fraction.

Property of others in care, custody or control is covered, but not in transit in the continental U.S.

Value reporting modifies the BPP form; premium follows the values reported.

Missing the required report: at most 75% of what would otherwise be paid.

Vacant: tenant lacks BPP to operate; owner, 70% not rented or used (outline).

After 60+ days: no vandalism, sprinkler leakage, glass, water, theft; other perils paid less 15%.

Vacancy permit endorsement waives the vacancy exclusion during the policy period.

Coinsurance: lower rate for insuring to value; underinsured owners share partial losses.

(Carried ÷ required) × loss − deductible; value tested at the time of loss.

Outline: fair market value may set a commercial building's ACV for coinsurance.

Mortgage holder is protected even if the insured's claim is denied.

Insurer pays the mortgagee and is subrogated, or pays off the debt and takes an assignment.

Mortgagee proof of loss: 60 days after notice; cancellation notice to mortgagee: 10 days.

Basic and broad = named perils; broad adds falling objects, weight of snow/ice/sleet, water damage.

Special = open perils: direct physical loss unless excluded; theft can be covered.

Most exclusions are in the causes of loss form.

Ordinance or law: increased cost to meet code during repair is excluded.

Earth movement excludes landslide, mine subsidence, tremors from eruption; lava flow and ash are covered.

Water excludes flood, tidal waves, sewer backup; a sudden burst pipe is covered.

Most exclusions can be waived by endorsement for additional premium.

Business income = net income that would have been earned + continuing expenses incl. payroll.

Extra expense = necessary costs during restoration that would not exist without the loss.

BI starts 72 hours after the loss; EE starts immediately.

Trigger: direct physical loss at the described premises by a covered peril.

Business income: a business that can close and reopen.

Extra expense: a business that must keep operating, such as a bank.

Rental value: a landlord's lost rent; the declarations show which causes of loss apply.

Standard BI needs damage at the insured's own premises.

Dependent properties: covered loss at a named location the insured depends on.

Contributing = supplier; recipient = customer; leader = draws customers.

Expediting expense speeds repairs (overtime, air freight).

Extra expense keeps the business operating during repairs.

Virus or pandemic may be excluded; coverage may be bought for more premium.

Leasehold interest: value of a favorable lease cancelled after covered damage.

Blanket = one limit over several items; specific = one limit each; scheduled = listed items.

Agreed value suspends coinsurance; payment is still the amount of the loss.

Ordinance or law: A = undamaged portion lost, B = demolition, C = increased cost of construction.

Glass: scheduled glass, lettering, boarding up; fits a tenant responsible for glass.

Builders risk covers the structure, foundations, scaffolding and materials, but not land.

Extended Business Income: up to 60 consecutive days after reopening.

Extended Period of Indemnity option: replaces 60 with the days in the declarations.

Terrorism: insurers must offer coverage; insureds may decline.

Inland marine: property that moves or is not tied to one location.

§103: transit on land, water or air; floaters; jewelry in or out of transit; not life or surety bonds.

Bill of lading: evidences receipt of goods for shipment; may limit carrier liability.

Filed inland marine forms: open perils, defined by exclusions.

Common exclusions: wear and tear, delay or loss of market, dishonesty of insured or employees.

EDP: standard forms limit data (ISO BI: $2,500 for computer operations); EDP gives open perils for hardware, software, data.

Special form excludes mechanical breakdown, artificial electrical damage and explosion of owned steam boilers.

Equipment breakdown (formerly boiler and machinery) fills that gap.

Theft = any unlawful taking; burglary = unlawful entry, no confrontation; robbery = force or threat against a person.

Employee Theft covers theft by employees, even if the employee is not identified.

A loss proved only by an inventory count is excluded.

Inside: money and securities at the premises or bank; theft, disappearance, destruction; thief must be present.

Outside: in the care of a messenger or armored car company.

Outside: other property is covered only for robbery.

Discovery: losses found during the policy period, even if they occurred earlier.

Loss sustained: losses during the policy period found up to one year after it ends.

Excluded: insiders outside Employee Theft, partners, known prior dishonesty; contractors are not employees.

Farm insurance: monoline or package; personal and commercial; property and liability.

Crop insurance: unavoidable natural losses above a deductible; not neglect or poor farming practices.

FCIC/RMA set or approve rates, subsidize premiums and reinsure; private agents sell.

Flood: general and temporary inundation of 2+ acres of dry land or 2+ properties.

Mudflow is covered; landslide is not a mudflow.

General Property Form: Coverages A–D; $500,000 building / $500,000 contents.

No business income or extra expense under the NFIP.

No binding authority; no oral binder; agent acts for the policyholder.

New coverage: 12:01 a.m. on the 30th day after application and premium.

CA: required flood training before the first NFIP application (CDI: 3 hours, one time).

Hull = the ship; cargo = the goods; freight = the transport charge; P&I = liability.

Jones Act: an injured seaman may sue the employer, with a jury; a P&I claim.

Longshore Act: employer pays compensation; §905(b) third-party suit against the vessel is the P&I exposure.