What it does
CP 00 90 holds the conditions that apply across all commercial property coverage forms in the policy. It works alongside the Common Policy Conditions (IL 00 17) and the loss conditions in each coverage form. The 07 88 edition is still the current edition.
Key provisions
- Concealment, Misrepresentation or Fraud: fraud voids the coverage part. So does intentional concealment or misrepresentation of a material fact about the coverage, the property, your interest in it, or a claim.
- Control of Property: acts or neglect of others beyond your control do not void coverage. A breach of a condition at one location does not affect coverage at other locations.
- Legal Action Against Us: suit must be brought within 2 years after the date of the direct physical loss. Many states change this by amendatory endorsement.
- Liberalization: broadened coverage adopted within 45 days before or during the policy period applies automatically when it carries no additional premium.
- No Benefit to Bailee and Other Insurance: pro-rata with like insurance, excess over other insurance.
- Policy Period, Coverage Territory: the United States (including territories and possessions), Puerto Rico and Canada.
- Transfer of Rights of Recovery: you may waive recovery rights in writing before a loss. After a loss, you may waive only against another insured, an affiliated business firm, or your tenant.
Quoting and selling notes
- The pre-loss waiver of subrogation permission is why property waivers in leases and construction contracts usually do not need an endorsement. Confirm the waiver is in writing before the loss.
- Know your state's amendatory changes to the suit limitation and the fraud condition.
