What it does
A Causes of Loss form supplies the covered perils for the coverage forms in the commercial property coverage part, such as CP 00 10 and CP 00 30. CP 10 10 is the narrowest of the three ISO options. It covers only these named perils:
- Fire
- Lightning
- Explosion
- Windstorm or hail
- Smoke
- Aircraft or vehicles
- Riot or civil commotion
- Vandalism
- Sprinkler leakage
- Sinkhole collapse
- Volcanic action
A loss must be caused by one of these perils to be covered.
Key provisions
- The standard exclusions apply, and many are written with anti-concurrent-causation wording: ordinance or law, earth movement, governmental action, nuclear hazard, utility services, war and military action, water, and "fungus", wet rot, dry rot and bacteria.
- Special exclusions apply to time-element and legal liability coverage.
- A limited additional coverage for "fungus", wet rot, dry rot and bacteria applies when the fungus results from a covered peril.
- Theft, collapse, falling objects, weight of snow, ice or sleet, and water damage are not covered perils under this form.
Who uses it
Underwriters may restrict hard-to-insure or vacant buildings to basic perils, and some insureds choose it to lower premium. It also sets the perils for legal liability coverage when attached to CP 00 40.
