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  3. CP-10-30

What it does

CP 10 30 defines Covered Causes of Loss as direct physical loss unless the loss is excluded or limited in the form. The insured does not have to prove a named peril. The insurer must show that an exclusion applies. It is the most common causes of loss form attached to CP 00 10, CP 00 17, CP 00 18 and the business income forms.

Key provisions (09 17 edition)

  • Exclusions: ordinance or law, earth movement, governmental action, nuclear hazard, utility services, war and military action, water (flood, surface water, sewer backup, underground water), and "fungus", wet rot, dry rot and bacteria. Also excluded are artificially generated electrical current, delay or loss of use, wear and tear, rust and corrosion, settling and cracking, insects and vermin, mechanical breakdown, dishonest acts, voluntary parting, rain to property in the open, continuous seepage over 14 days or more, and pollutants. Exceptions apply where a "specified cause of loss" results.
  • Limitations: theft special limits of $2,500 for furs, $2,500 for jewelry and watches, $2,500 for patterns, dies, molds and forms, and $250 for stamps, tickets and letters of credit. Interior rain damage is covered only if the roof or walls are first damaged. Other property-type limitations apply.
  • Additional Coverage – Collapse: covers abrupt collapse from specified causes.
  • Limited Coverage for Fungus, Wet Rot, Dry Rot and Bacteria: $15,000 annual aggregate when the fungus results from a specified cause of loss other than fire or lightning, or from flood if flood is covered.
  • Additional Coverage Extensions: property in transit ($5,000), water damage tear-out and replacement, and glass (temporary plates and board-up).

Quoting and selling notes

  • The Special form does not cover flood, earthquake, or sewer and drain backup. Offer the Flood Coverage Endorsement (CP 10 65) or NFIP coverage, the earthquake forms (CP 10 40 / CP 10 45), and Discharge from Sewer, Drain or Sump (CP 10 38).
  • Utility interruption off premises needs CP 04 17 (direct damage) and CP 15 45 (time element).
  • Underwriters may restrict theft (CP 10 33) or add burglary alarm warranties (CP 12 11). Check for those on renewal.