Our client owns a two-story commercial building that is insured on an ISO commercial property form. There are offices on the first floor and apartments on the second.

If this building were destroyed, the owner would rebuild it without the apartment buildings and in a different location. To reflect this, we've attached the functional building valuation endorsement [IDL:CP 04 38 10 00pdf^CP 04 38 10 00^CP 04 38 10 00] and selected a $500,000 limit, which is enough to replace the building without the apartments.

I'm concerned that the functional building valuation endorsement requires same-site replacement. Does it?

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis