Improvements and Betterments Coverage Requirements

January 31, 2011

Insured is a tenant in a strip mall. The insured has owned the business since 1988, and her father started the business at this location in 1966. A prior fire in 1987 required total renovation. A claim was submitted to our office for a fire claim, in and around the electrical main service breaker panel. When the insured took over the business in 1988, the electrical service was already in place, no improvements to the service during her years of occupancy. The lease agreement requires that the insured address the repairs. Insured making claim under the improvement and betterment portion of the policy. Is there coverage available under CP 00 10?

Pennsylvania Subscriber

The CP 00 10 requires that improvements and betterments must be acquired and made at the insured's expense. If that is not the case for the current insured—and it does not sound like it is— then there would not be coverage under improvements and betterments. 

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