PROPERTY INSURANCE

Have you recently reviewed the adequacy of your Real Property, Personal Property, Scheduled Property, Computer and Business Income limits of insurance?

Does your Property insurance cover more than one location?  If so, it may be beneficial to have a Blanket Insurance limit apply to all locations.

Does your insurance consist of separate limits for Real Property insurance, Personal Property insurance and/or Business Income insurance?  If so, it may be beneficial to have a single Blanket Real Property, Personal Property and/or Business Income limit applicable to all such exposures.

Is your Real Property, unscheduled Personal Property, Scheduled Personal Property and/or Computer Hardware insured on an Actual Cash Value basis (Replacement Cost minus physical depreciation)?  If so, a Replacement Cost Valuation for such property may be available. 

Is your Real Property and/or Personal Property insurance subject to a Coinsurance Clause?  If so, there is the possibility that, in the event of a claim, you would sustain a Coinsurance Penalty.  An Agreed Value endorsement is available which would eliminate the possibility of a Coinsurance Penalty. 

Is your Personal Property subject to either seasonal or irregular fluctuations?  If so, it may be advisable to have either a Peak Season provision or a Reporting Form provision added to your Personal Property insurance. 

Is your stock insured on a Selling Price Valuation basis?  If not, this may be available. 

If you have inventory, your insurer has the right to take in salvage any part of it for which they pay you in a claim.  If you would want the opportunity to remove labels and brand names so that your insurer would not, in effect, become a direct competitor of yours in their disposal of salvaged goods, Broad Brands and Labels Insurance would give you that opportunity and would make the cost of removing labels and brand names a part of your claim against the insurer. 

If your property is subject to flooding or to the accumulation of surface waters, you should consider Flood

insurance.  It is available through the Federal Government as well as through private insurers. 

Many "All Risk" Property insurance policies contain an exclusion for damage resulting from the Back-Up of Sewers or Drains.  Coverage for this may be available. 

Many “All Risk” Property insurance policies contain an exclusion for damage resulting as a consequence of damage that first occurs to an outside source of water, communications and/or power.  This exclusion can be eliminated by providing “Utility Services Direct Damage” coverage (form #CP0417). 

If your Personal Property is susceptible to damage as a result of an on-premises or off-premises interruption to power, you may wish to consider a catastrophe plan for their protection (for example, an arrangement with another facility for their storage until power can be restored).  Consequential Loss coverage is available to insure this exposure. 

Building Codes have changed over the years in different ways for different jurisdictions.  In some cases, Building Codes require the sprinklering of buildings, the construction of buildings with updated materials, the construction of buildings with handicap facilities, etc.  Normal Replacement Cost coverage will cover the reconstruction of the building only with materials of like kind and quality to those which existed in the building at the time of a claim.  For upgrades as mentioned above, Building Ordinance coverages are available. 

If you have in your possession the Property of Others, you should formalize an understanding with the owner of such property as to who would be responsible for damage to it while it is in your possession (whether or not you caused the damage).  If you are to be responsible, your Personal Property insurance should be extended to include such property. 

If you have Personal Property which is kept off-premises, you should formalize an understanding with the owner of the facility at which such property is kept as to who would be responsible for damage to it while it is in their possession (whether or not they caused the damage).  If you are responsible, your Personal Property insurance can be extended to apply to other temporary locations. 

If you are a tenant, the Improvements and Betterments portion of your Business Personal Property (Contents) insurance probably has a valuation clause which would pay you for damage to them based on the unamortized part of your total lease.  For example, if you sustain a loss with 3 years left on a 10-year lease, you may receive 30% of the cost to re-purchase and re-install the Improvements and Betterments.  It may be possible to have your policy modified to provide true Replacement Cost coverage for Improvements and Betterments, irrespective of the term of your lease.