What it does
CP 00 18 insures the owner of a commercial unit in a condominium. It has no Building insuring agreement because the association's policy insures the building. Your Business Personal Property is defined to include furniture, machinery and equipment, "stock", and fixtures, improvements and alterations that make up part of the building and that the unit-owner owns. It also includes labor and materials on others' property and leased property you must insure. Personal Property of Others in your care is available as a separate item.
The coverage area is the building or within 100 feet of the building or the described premises, whichever is greater. A Causes of Loss form supplies the covered perils, and the conditions forms complete the coverage part.
Key provisions
- The Additional Coverages and Extensions largely track CP 00 10, adapted to a tenant-like position. Examples include newly acquired BPP, personal effects, valuable papers, property off-premises, outdoor property and signs.
- A condominium-specific other insurance rule makes this coverage excess over the association's insurance when both cover the same property.
- Coinsurance, agreed value, inflation guard and replacement cost options work as in CP 00 10.
Who needs it
Professional offices, clinics, retailers and light-industrial firms that own their condominium unit. These owners usually need coverage for their own build-out, equipment and inventory.
Quoting and selling notes
- Read the condominium declaration to see which unit improvements the association insures and which the owner insures, and set the BPP limit to include the owner's share.
- Add CP 04 18 (Condominium Commercial Unit-Owners Optional Coverages) for loss assessment and miscellaneous real property the owner must insure.
- Add Business Income (CP 00 30) and ordinance or law for tenants' improvements (CP 04 26) where it applies.
