Actual Cash Value and the Depreciation of Labor
The concept of actual cash value (ACV) is far more complicated than “replacement cost minus physical depreciation.” In fact, the meaning of replacement cost differs based on the state. To…
Property
ISO’s 2017 Commercial Property Form Changes
September 1, 2017, ISO introduced six new changes to the commercial property program. As part of this filing, ISO altered the CP 10 30 Cause of Loss – Special Form,…
Building Codes Turn Partial Property Losses into Total Losses
Few commercial structures fully meet the applicable jurisdictional building codes and regulations of the county, city, town, borough, village or township in which they are located. Building codes are routinely…
I Bet the Named Insured Doesn’t Own the Building! Have You Asked?
Never assume the named insured owns the building. You need to ask what seems like a ridiculous question because ownership of the building may be held by another “person” related…
Three Ways Your Clients Increase Their Own Property Premiums
Bad decisions cause commercial property clients to pay higher property premiums. Sadly, the insured may not even recognize their poor choices. Worse still, agents can help clients identify their bad…
RCP: What Does That Little Code Mean?
Insurance carriers often provide what is referred to as a RCP Code. The code comes from ISO data and provides a lot of information. With this code, agents have a…
The Unseen ‘Magic’ Behind Commercial Property Underwriting
COPE underwriting is the basis for commercial property underwriting and has been for nearly 400 years. Understanding Construction, Occupancy, Protection and Exposures is imperative to properly present and underwrite property…
Commercial Property Agreed Value Option
The Agreed Value Option (AVO) is an alternative to coinsurance in the ISO Building and Personal Property Coverage Form (CP 00 10). Agreed Value can be used with buildings or…
CP Coverage for Docks
A dock is damaged by a covered peril but the carrier denies the claim, citing the “piers, wharves, docks” exclusion. You argue that his language applies to permanent docks, not…
Coverage for Business Personal Property Off Premises
A surveyor’s equipment was stolen while on a job site. The adjuster denied the claim under the CP 00 10 Property Off-premises coverage, citing the exclusion for such property while…
