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

Commercial Property Declarations (CP DS 00)

The CP DS 00 Commercial Property Declarations is a standard Insurance Services Office (ISO) form that serves as the "cover page" for a Commercial Property Coverage Part. It personalizes the policy by summarizing key information specific to the property coverages being provided to the insured. This form is crucial as it tailors the broader coverage forms (like the CP 00 10 Building and Personal Property Coverage Form) to the specific needs and characteristics of the insured property. It typically includes the named insured, policy number, effective date, a description of the premises, and lists the coverages provided along with their respective limits of insurance, covered causes of loss, and coinsurance percentages. Most insurance companies modify the ISO version to meet their specific needs, but many core elements remain consistent.

Classes of Business It Applies To

The CP DS 00 is utilized across a wide array of commercial enterprises that require property insurance. Since commercial property insurance is a foundational coverage for most businesses, this declarations page can be found in policies for:

• Retail Stores: A local boutique or a larger department store would use this to detail coverage for their building (if owned), business personal property (inventory, fixtures, equipment), and potentially business income.
• Manufacturing Plants: A factory would list its buildings, machinery, equipment, and raw materials, along with applicable limits and causes of loss.
• Office Buildings: Owners of office buildings would use this form to specify coverage for the structure itself and any owned personal property. Tenants in an office building might also have a commercial property policy with this declarations page, primarily covering their business personal property and any improvements or betterments they've made.
• Service Businesses: Repair shops, salons, and professional service firms (e.g., law offices, accounting firms) would use this to insure their premises and business personal property.
• Real Estate Lessors: Companies that own and lease commercial buildings to others.

Essentially, any business with tangible property exposures, whether it's a small single-location shop or a larger entity with one primary location, would have a CP DS 00 (or an equivalent carrier-specific declarations page) as part of their commercial property policy. For risks with multiple locations, a CP DS 01 (Commercial Property Coverage Part Supplemental Declarations) would typically be attached for each additional location, as the CP DS 00 is designed for single location accounts.

Special Considerations

• Accuracy is Paramount: The information on the declarations page, particularly the named insured and the description of premises, must be precise. Errors in the named insured can potentially void coverage due to a lack of financial interest. Incorrect property addresses or descriptions can lead to claim denials.
• Single vs. Multiple Locations: The standard CP DS 00 is designed for a single location. If the insured has multiple properties, a Supplemental Declarations (CP DS 01) is required for each additional location to detail the specific coverages, limits, and other information pertinent to that site.
• Carrier Modifications: While the CP DS 00 is an ISO standard form, many insurance carriers create their own versions. These proprietary declarations pages will capture similar information but may have a different layout or include additional carrier-specific details. It's important to review the carrier's specific declarations page carefully.
• Attachment of Other Forms: The declarations page will list all other forms and endorsements that make up the Commercial Property Coverage Part. This includes the core coverage form (e.g., CP 00 10), the causes of loss form (e.g., CP 10 10 Basic, CP 10 20 Broad, or CP 10 30 Special), and any endorsements modifying the coverage. The CP DS 00 itself does not provide coverage; it only summarizes it.
• Time Element Coverages: If Business Income, Extra Expense, or Leasehold Interest coverages are provided, specific details like limits, coinsurance percentages, and any applicable options (like Maximum Period of Indemnity or Monthly Limit of Indemnity for Business Income) will be shown on the declarations or an attached schedule. Note that some options, like Agreed Value, Monthly Limit of Indemnity, and Maximum Period of Indemnity for Business Income, are mutually exclusive.
• Optional Coverages: Entries must be made in the schedule for optional coverages like Agreed Value, Replacement Cost, Inflation Guard, or specific Business Income options to apply.
• Higher Limits: The CP DS 00 may not have space to enter increased limits for certain Additional Coverages or Coverage Extensions. In such cases, carriers might modify their declarations or attach a form like CP 04 08–Higher Limits.

Key Information for Agents and Underwriters

• Risk Identification and Classification: The description of premises, including construction and occupancy, is a critical starting point for underwriting and rating. This information helps underwriters assess the risk profile of the property.
• Coverage Specificity: For coverage to apply for a particular type of property (e.g., Building, Business Personal Property, Personal Property of Others) or a time element coverage, a limit of insurance must be shown on the declarations for that specific coverage. Similarly, a causes of loss form must be selected for each coverage provided.
• Coinsurance Compliance: The selected coinsurance percentage (e.g., 80%, 90%, 100%) is a key factor in rating and claim settlement. Underwriters need to ensure the limits of insurance are adequate relative to the property values to avoid coinsurance penalties for the insured in the event of a partial loss. Agents must explain the coinsurance provision clearly to clients.
• Deductibles: The declarations will specify the deductible amounts applicable to different coverages or perils.
• Mortgageholder Interests: If a mortgageholder has an interest in the insured property, their name and address will be listed on the declarations, ensuring they are notified of policy changes or cancellations and have rights to claim payments.
• Endorsement Checklist: The "Forms Applicable" section serves as a checklist to ensure all necessary forms and endorsements for the desired coverage are included in the policy. Underwriters and agents should verify this section to confirm the policy is structured correctly to meet the insured's needs and underwriting intent.
• Premium Calculation Basis: The information on the declarations (limits, construction, occupancy, causes of loss, deductibles, optional coverages) directly feeds into the premium calculation for the policy.