The standard property policy, CP 00 99 10 00, uses a different format from the rest of ISO's commercial property program in that the policy is a self-contained unit that includes causes of loss and applicable conditions. The building and personal property coverage form, CP 00 10 10 00, is a modular form to which causes of loss and conditions forms must be added. The CP 00 99 therefore provides a  simpler, less costly vehicle for insuring those risks for which coverage under the other forms of the commercial property program is too broad, or is unavailable. The CP 00 99 is not available for use in the states of Hawaii, Kansas, New York, or Vermont.

The CP 00 99 may also be used in conjunction with the CP 17 99 06 95—condominium association coverage endorsement—for a condominium association, or with the CP 17 98 10 00—condominium commercial unit owners changes—to provide coverage for commercial unit owners. It may also be used with the CP 11 99 06 95—builders risk changes—to insure buildings under construction. An overall rate credit of 2 percent applies. For rating information, see the commercial lines manual (CLM).

The CP 00 99 insuring agreement for building and personal property reads exactly the same as the CP 00 10. Covered property includes the building or structure described in the declarations, personal property used to service or maintain the building, business personal property, and personal property of others that is in the care, custody or control of the named insured and located in or on the described building. For an analysis of the CP 00 10  see Building and Personal Property Coverage Form.

Fixtures, including outdoor fixtures, are covered property, whether or not they are “permanently installed.” Machinery and equipment, however, must still be permanently installed to fall under the coverage for the building or structure described in the declarations.

The list of what covered property does not include is the same as that of the CP 00 10. It is important to note that property more specifically described and covered under another coverage form is not included as covered property. But, in event of a loss, the standard property policy responds on an excess basis whether the amount of the loss is collectible or not from the primary insurer.

Just like the CP 00 10, the CP 00 99 adds trailers as an item not covered. But, this is only to the extent provided for in the coverage extension for non-owned detached trailers.

The standard property policy provides coverage for fire, lightning, and explosion losses. Additional causes of loss may be purchased. These are: wind or hail, smoke, aircraft or vehicles, riot or civil commotion, sinkhole collapse, and volcanic action. The perils of vandalism and sprinkler leakage may also be purchased, to round out the list of perils. If all the causes of loss options are purchased, coverage is similar to that provided by the causes of loss—basic form, CP 10 10 10 00. See Causes of Loss.

The standard property policy provides four additional coverages. These are the same as those of the building and personal property coverage form. The first of these is debris removal, which is limited to an amount equal to 25 percent of the amount paid for direct physical loss or damage plus the deductible. The current edition of the form specifies that the amount spent for debris removal is included within the limit of liability that applies to the covered property. The second additional coverage is preservation of property. If it becomes necessary to move covered property to protect it from a covered cause of loss, any subsequent loss is covered. The current form allows coverage for loss or damage that occurs within thirty days after the property is first moved.

The third additional coverage provides up to $1,000 for the insured's liability for a fire department service charge, and the fourth provides up to $10,000 for pollutant clean up and removal.

In the standard property policy, the extensions of coverage for newly acquired or constructed property, personal effects and property of others, valuable papers and records, property off premises, and outdoor property apply only to property in the same state as the described premises. “State” includes the District of Columbia and Puerto Rico. The extensions are additional amounts of coverage. The coinsurance condition is not applicable to the extensions of coverage; however, a coinsurance percentage of at least 80% of the value reporting symbol must be shown in the declarations for the insured to avail him or herself of the coverages.

The current form contains higher limits for newly acquired property. The policy covers newly acquired or constructed buildings for $250,000. Newly acquired personal property is covered for up to $100,000, other than property at fairs, trade shows, or exhibitions. The cost to research or replace valuable records or papers is $2,500 at each described premises, unless a higher limit is shown in the declarations. Outdoor property, such as fences, television antennas, signs (other than those attached to buildings), or trees (other than stock) is covered for up to $1000 ($250 for any one tree, shrub or plant) for the perils of fire, lightning, explosion, riot or civil commotion, or aircraft, but only if the insured has purchased these causes of loss. Coverage is on an occurrence basis.

As does the CP 00 10, the current edition of the CP 00 99 adds a sixth coverage extension, non-owned detached trailers. The policy provides up to $5,000 for such trailers on the insured's premises.

The wording of the exclusions has been changed. While the number of events excluded remains the same, the wording now clarifies intent as to coverage, if any, for ensuing loss. Since they differ from those of the CP 10 10 10 00 (causes of loss—basic form) they are reproduced in their entirety.

Analysis

As noted above, the first five excluded perils in the current form are the same as those in the prior form. However, the wording has been changed. New to the current form is the new description of earth movement. Also new is the provision that these exclusions apply regardless of how widespread an event may be. The event may affect a large area or only one property. No matter; the exclusions still apply.

The neglect exclusion has been added to the current form. This exclusion emphasizes the insured's responsibility to guard covered property from further loss.

Note also the differences between the exclusionary language in the causes of loss—basic form (CP 10 10), and the standard property policy, which reflect the difference in coverages provided by each. As noted above in this discussion, coverage for sprinkler leakage may be added to the standard property policy's basic coverages. Exclusions 2.b. and 2.c. therefore preclude coverage unless sprinkler leakage is a covered cause of loss. The similar exclusions in the CP 10 10 preclude coverage for other than automatic sprinkler systems since sprinkler leakage is included as a covered cause of loss in that form.

The wording of the limits of insurance and deductible sections is the same as in the building and personal property coverage form. As in the CP 00 10, the coverage grant of an additional $10,000 for debris removal has been moved from this section into the debris removal section. Also new to the CP 00 99 is the amended deductible provision. For a more detailed discussion, see Building and Personal Property Coverage Form.

As previously noted, all of the common policy conditions from form IL 00 17 11 98 are incorporated into the standard property policy. Of these, only the inspections and surveys condition is revised. While the insurer may make such a survey, it has no obligation to do so. The condition also emphasizes that such a survey is not a warranty that the building is safe. The current form adds a caveat that this provision does not apply if the insurer is inspecting under a state ordinance or regulation. For a discussion, see Common Policy Conditions.The commercial property conditions from form CP 00 90 (see Commercial Policy Conditions for a discussion) also appear in the standard property policy.

The loss settlement conditions are nearly identical to those of the building and personal property coverage form (CP 00 10). There is, however, a notable difference. The valuation clause of the CP 00 10 states that, if the limit of insurance for building satisfies the coinsurance condition, and if the cost to repair or replace the damaged building is $2,500 or less, the insurer will pay to repair or replace. There is no similar clause in the standard property policy.

The final noteworthy change, and one in keeping with the rest of the commercial property form revisions, is the clarification of “vacant” and unoccupied. It is now clear that when the policy is issued to a tenant, then building refers to the unit or suite rented or leased to the tenant. When the policyholder is the owner of a building, then building means the entire building. A building is considered vacant or unoccupied when 70% of its square footage is vacant or unoccupied. Buildings under construction are not considered vacant, nor are buildings under renovation—a change from the prior form, which left open the possibility that a building under renovation would be deemed to be vacant.

In keeping with the limited coverage afforded by the standard property policy is the provision that if a building has been vacant or unoccupied for more than 30 consecutive days, then there is no coverage for loss caused by vandalism. This is contingent, of course, on the insured having purchased coverage for this cause of loss. There is no coverage for any other cause of loss after sixty days if a building is vacant or unoccupied.

Condominium association coverage—standard property policy endorsement CP 17 99 06 95 is an endorsement used to adapt the coverage of the standard property policy to the unique needs of a condominium association. It contains the coverage provisions for building, business personal property, and the conditions for loss payment, unit-owner's insurance, and waiver of rights of recovery as found on condominium association coverage form CP 00 17; see Condominium Association Coverage Form.

In a similar fashion, the second endorsement, condominium commercial unit-owners changes—standard property policy CP 17 98 10 00 adapts the standard property policy to the needs of commercial condominium owners. This is accomplished by the incorporation of the provisions regarding business personal property, property not covered, newly acquired property, vacancy, and condominium association insurance from condominium commercial unit-owners coverage form CP 00 18 see Condominium Commercial Unit Owners Coverage. Additionally, the endorsement deletes certain building-related provisions from the standard property policy since the subject of coverage is the personal property of condominium commercial unit-owners.

A third endorsement, builders' risk changes—standard property policy CP 11 99 06 95 is attached to the standard property policy when it is used to insure buildings under construction. It includes the following provisions from builders' risk coverage form CP 00 20: covered property, property not covered, coverage extension, valuation, need for adequate insurance, and when coverage ceases. See Builders Risk Insurance for discussions of these provisions.

Any individual state endorsements that would apply to building and personal property coverage form CP 00 10 also apply when the standard property policy is used. Additionally, many of the property endorsements available for use under the commercial property program see Commercial Property Endorsements may also be used with the standard property policy.