Term
| Commercial property coverage part |
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Definition
| Commercial package policy (CPP) coverage component that provides a broad range of coverages to "middle market" or larger firms to insure buildings and business personal property. |
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Term
| Commercial property declarations page |
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Definition
| A required commercial property coverage part component that provides basic information about the policyholder and the insurance provided. |
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Term
| Commercial property coverage form |
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Definition
| A commercial property coverage part component that can be of any several commercial property forms containing an insuring agreement and related provisions. |
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Term
| Building and Personal Property Coverage Form (BPP) |
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Definition
| A commercial property coverage form that can be used to cover buildings, "your business personal property," and personal property of others. |
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Term
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Definition
| A required component of the commercial property coverage part that specifies perils covered. |
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Term
| Commercial Property Conditions |
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Definition
| A required component of the commercial property coverage part that contains conditions applicable to all commercial property coverage forms. |
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Term
| Improvements and betterments |
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Definition
| Alterations or additions made to the building at the expense of an insured who does not own the building and who cannot legally remove them. |
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Term
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Definition
| A condition that prohibits the insured from abandoning damaged property to the insurer. |
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Term
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Definition
| A condition that establishes a method for the insurer and the insured to resolve disputes about the insured property's value or amount of loss. |
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Term
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Definition
| A statement of facts about a loss for which the insured is making a claim. |
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Term
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Definition
| Cost to replace property with new property of like kind and quality less depreciation. |
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Term
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Definition
| Condition that requires the insured to carry insurance equal to at least a specified percentage of the ACV of the property insured. |
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Term
| Agreed Value optional coverage |
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Definition
| Coverage that suspends the Coinsurance condition if the insured carries the amount of insurance that the insurer and the insured agree to be the property's full value. |
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Term
| Inflation Guard optional coverage |
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Definition
| Coverage for the effects of inflation that automatically increases the limit of insurance by the percentage of annual increase shown in the declarations. |
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Term
| Replacement Cost optional coverage |
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Definition
| Coverage for losses to most types of property on a replacement cost basis (with no depreciation or obsolescence) instead of on an actual cash value basis. |
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Term
| Functional replacement cost |
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Definition
| The cost of replacing damaged property with similar property that performs the same function but might not be identical to the damaged property. |
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Term
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Definition
| Form that covers the fluctuating values of business personal property by providing insurance for the insured's maximum expected values and requiring the insured to periodically report property values to the insurer. |
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Term
| Peak Season Limit of Insurance endorsement |
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Definition
| Endorsement that covers the fluctuating values of business personal property by providing differing amounts of insurance for certain time periods during the policy period. |
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Term
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Definition
| Insurance that covers each building for a specific limit of insurance and personal property at each building for a specific limit of insurance. |
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Term
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Definition
| Insurance that covers either of the following with one limit of insurance: (1) one type of property in one or more separately rated buildings or (2) two or more types of property in one or more separately rated buildings. |
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