1. Forms
  2. CP
  3. CP-00-10

What it does

CP 00 10 is the main property form in the ISO commercial property program. It pays for direct physical loss of or damage to covered property at the premises described in the Declarations. It does not name any perils. The covered perils come from a separate Causes of Loss form: Basic (CP 10 10), Broad (CP 10 20) or Special (CP 10 30). To make a complete coverage part, combine CP 00 10 with the declarations, a Causes of Loss form, Commercial Property Conditions CP 00 90 and Common Policy Conditions IL 00 17.

The form has three insuring categories, and each one applies only when a limit is shown for it:

  • Building: the described structure, completed additions, fixtures, permanently installed machinery and equipment, and personal property used to maintain or service the building. Additions under construction and building materials within 100 feet are included if no other insurance covers them.
  • Your Business Personal Property: furniture, machinery, "stock", tenant's improvements and betterments, and leased property you have contracted to insure, in the building or within 100 feet.
  • Personal Property of Others: property in your care, custody or control, paid for the owner's account.

Key provisions and limits (10 12 edition)

  • Additional Coverages: debris removal (25% of the loss plus deductible, with up to an extra $25,000 per location when that cap or the limit is exceeded), preservation of property, a $1,000 fire department service charge, $10,000 for pollutant clean-up per premises per year, increased cost of construction (the lesser of $10,000 or 5% of the building limit), and $2,500 for electronic data.
  • Coverage Extensions (most require 80% or higher coinsurance): newly acquired or constructed property ($250,000 per building, $100,000 BPP), personal effects ($2,500), valuable papers ($2,500), property off-premises ($10,000), outdoor property ($1,000, no more than $250 per tree, shrub or plant), non-owned detached trailers ($5,000), and BPP in portable storage units ($10,000).
  • Vacancy: once the building has been vacant for more than 60 consecutive days, vandalism, sprinkler leakage, glass breakage, water damage, theft and attempted theft are not covered, and other covered losses are cut by 15%.
  • Coinsurance: underinsurance penalty based on the percentage shown in the Declarations.
  • Optional Coverages, activated in the Declarations: Agreed Value, Inflation Guard, Replacement Cost, and Extension of Replacement Cost to Personal Property of Others. Without the Replacement Cost option, losses are valued at actual cash value.

Who needs it

Almost every commercial property account written on the ISO program. Building owners insure the structure. Tenants usually insure only BPP, which includes their interest in improvements and betterments. Lessors' risk accounts often insure building only.

Quoting and selling notes

  • Get replacement cost values for each building and BPP, then choose the coinsurance percentage, or Agreed Value to suspend coinsurance.
  • Choose the Causes of Loss form. Special form (CP 10 30) is the usual choice, and theft, earthquake and flood are handled separately.
  • Ask about vacancy, ordinance or law exposure on older buildings (CP 04 05), loss payees (CP 12 18), utility interruption (CP 04 17), spoilage (CP 04 40) and sewer backup (CP 10 38).
  • Pair it with Business Income CP 00 30 when the insured would lose income after a covered loss.