130.4-1

COMMERCIAL PROPERTY PROGRAM DECLARATIONS

(December 2006)

INTRODUCTION

The Commercial Property Declarations developed by the Insurance Services Office (ISO) is only an advisory form. Most insurance companies make modifications to it to meet their specific needs. However, many items on it remain as placed by ISO because of references made throughout the coverage forms to various items listed on it.

The Commercial Property Declarations provides the information that relates directly to coverages and claims payments unique to those coverages.

This form is designed for single location accounts. Supplemental declarations must be prepared for each additional location.

HEADER

This section contains spaces for entry of the policy number and the effective date of coverage. It also contains a box to check if more than one location is involved and one or more Supplemental Declarations included.

NAMED INSURED

This section is used to show the named insured designation that applies. Every entity to be insured should be listed in this area or a complete named insured listing should be provided on a separate endorsement.

DESCRIPTION OF PREMISES

The description of the premises insured is the starting point and must be as accurate and detailed as possible. If the address or description is incorrect or inaccurate, coverage could be denied. It is an unfortunate fact that claims are denied because of incorrect or mistaken addresses. The construction and occupancy of the location insured are important and helpful items of information, but that information alone is insufficient to establish or verify coverage.

COVERAGES PROVIDED

The location or premises information and the building numbers that apply are reprinted from the description and the coverage is then listed. The options are:

· Building and Personal Property

· Personal Property of Others

· Glass

· Condominium Association

· Condominium Commercial Unit-Owners

· Builders’ Risk

· Legal Liability

· Mortgageholders Errors and Omissions

· Tobacco Sales Warehouse

· Standard Property Policy

· Business Income with Extra Expense

· Business Income without Extra Expense

· Extra Expense

· Leasehold Interest

The form can be used to provide two or more coverages. Each coverage selected must have a corresponding limit of insurance shown in order for coverage to apply.

A Covered Cause of Loss must be shown for each coverage provided. Different forms can be selected for different coverages. For example, the building causes of loss form could be different than the causes of loss form for business personal property.

The coinsurance percentage for each coverage must be shown. The options are zero, 80%, 90% and 100%. If Agreed Value applies, the coinsurance percentage that applies to that coverage is still shown. This is because the policy reverts to a coinsurance basis as indicated on the declarations if a proper statement of values is not received when it is due.

The policy rate or rates that apply may also be shown in this area, in the space provided.

OPTIONAL COVERAGES

If any optional coverage is selected, the premises and building numbers that apply are entered in the spaces provided. The options available on the declarations are:

Agreed Value requires a dated statement of values that is valid for no more than one year. The expiration date must be indicated, along with the coverage to which it applies and the appropriate amount of insurance. If the values are not updated or if a new statement of values is not received, the policy reverts to a coinsurance basis for the percentage shown on the declarations.
Replacement Cost is available for Building, Personal Property and Stock when an "X" is indicated for the specific coverage in the space provided.
Inflation Guard is available for Building or Personal Property. This option applies when the appropriate annual percentage amount is selected and inserted in the appropriate space. The percentages available begin at 1% and higher options are available.
The Monthly Limit of Indemnity, Maximum Period of Indemnity and Extended Period of Indemnity options are only available for business income coverages and the option selected must be appropriate for the coverage to which it applies. Monthly limitations must be expressed as 1/3, 1/4 or 1/6. The Maximum Period of Indemnity must be selected and the Extended Period of Indemnity must reflect the number of days selected in multiples of 30.

MORTGAGEHOLDERS

The premises and building numbers from the Description of Premises section is entered in the spaces provided. The mortgageholder name and mailing address for the designated premises is entered in the space provided. This information is necessary for mailings to take place as required by the Mortgageholders Additional Conditions and for loss settlements.

All declarations information indicated above also appears on the Supplementary Declarations form.

DEDUCTIBLE

The standard $500 deductible is only shown on the declarations and is not repeated on the Supplementary Declarations. In effect, this is the global deductible. Any exceptions are indicated on the coverage form and also in Deductible Endorsement Form CP 13 10. Please refer to PF&M Section 130.6-15, Deductible Plan, for additional information about deductibles.