(July, 2006)

The latest revision of the ISO Building and Personal Property Coverage Form is officially presented as a clarification of intent. However, considering the restrictive language, especially in certain jurisdictions, it represents a reduction in coverage. The changes are as follows:

Property not covered

Coverage has been expanded to include Electronic data. Electronic data includes almost anything that is stored or could be stored in a computer.

Property not covered

The cost to research valuable papers has been significantly increased to list the type of items that are considered valuable papers but not to limit the definition.

Additional Coverages – Increased Cost of Construction

This feature is more limited than in the past. In the latest edition, it does not provide coverage for any ordinance that has to do with mold. This is grouped with the pollution exclusion.

Valuable Papers and Records – Cost of Research

This supplemental protection has been eliminated and replaced by Valuable Papers and Records (Other than Electronic Data). While the name may look the same, the coverage is very different and restricted. The newer version eliminates all coverage for Valuable Papers that are in an electronic data form.

The limit for this coverage is $2,500 but it can be increased on the Schedule. Remember this is NOT the same as the Valuable Papers Coverage offered on Inland Marine. The explanation of the determining the value of such a loss has been moved from the valuation section of the policy to the extension. This change does add clarity.

Electronic Data

This has been added as an Additional Coverage. However, it is being added in a very limited fashion. The coverage does not match the cause of loss form that is attached. It does provide some virus protection but even that is limited. In addition, the limit is $2,500 that is to cover ALL LOSSES AT ALL LOCATIONS that occur during a POLICY YEAR. The same limit applies if there is one location or 100 locations.

Fungus

A final change is that the latest revision adds a definition of the word fungus. This matches the definition used in all other Insurance Services Office forms.