Following is a discussion of the current form, with differences from the previous form and the CP 00 10 noted.

Topics covered:

Introduction

Covered property Property not covered Extensions of coverage Condominium association insurance Loss assessment coverage Miscellaneous real property coverage

Introduction

As with other commercial coverage forms in ISO's commercial property program, the Condominium Commercial Unit-Owners Coverage Form, CP 00 18 10 12, is used in conjunction with policy declarations, common policy conditions, commercial property conditions, one of three causes of loss forms, and any other desired endorsements, to produce a monoline property policy. The same forms, along with appropriate declarations, conditions, and coverage for other kinds of property and casualty coverage are added to form a package policy, in any combination desired. This article analyzes the CP 00 18 form, the differences from form CP 00 10, and discusses the Condominium Commercial Unit-Owners Optional Coverages endorsement, CP 04 18 10 12. (For a discussion of form CP 00 10, see Building and Personal Property Coverage Form.

Covered Property

1.Covered Property   

Covered Property, as used in this Coverage Part, means the following   type of property described in this section, A.1., and limited in A.2., Property Not Covered, if a Limit Of Insurance is shown in the Declarations for that type of property.

a.Your Business Personal Property consists of the following property located in or on the building or structure described in the Declarations or in the open (or in a vehicle) within 100 feet of the building or structure or within 100 feet of the premises described in the Declarations, whichever distance is greater:

(1)Furniture;

(2)Fixtures, improvements and alterations making up part of the building and owned by you;

(3)Machinery and equipment;

(4)”Stock”;

(5)All other personal property owned by you and used in your business;

(6)Labor, materials or services furnished or arranged by you on personal property of others;

(7)Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others.

b.Personal Property of Others, that is:

(1)In your care, custody or control; and

(2)Located in or on the building or structure described in the Declarations or in the open (or in a vehicle) within 100 feet of the building or structure or within 100 feet of the premises described in the Declarations, whichever distance is greater.

     However, our payment for loss of or damage to personal property of others will only be for the account of the owner of the property.

Analysis

There are two principal areas of difference between forms CP 00 18 and CP 00 10. First are the adaptations to the needs of condominium ownership, and second, elimination of building coverage for the unit owner (except for coverage of building fixtures, improvements, and alterations owned by the unit owner). This arrangement recognizes that insurance on the unit owner's building is generally provided by the condominium association rather than the individual unit owner.

Three provisions that relate to the insured's status as condominium unit owner, not found in form CP 00 10, are added to form CP 00 18. First, under covered property, the definition of business personal property includes as item 1.a.(2) “Fixtures, improvements and alterations making up part of the building and owned by you.” The intent is to extend the personal property coverage to any portions of the unit itself that the condominium declarations set out as solely owned by the unit owner and that are not insured by the association. Portions solely owned by the unit owner but required by the condominium association agreement to be insured by the association, although seemingly included for coverage under item (2) are excluded by property not covered item l., as discussed later.

In cases of bare walls ownership by the unit owners in common, the unit owner may be sole owner of and be responsible for insuring the entire interior of the unit inside the unfinished exterior walls, floor, and ceiling of the unit. The form extends the personal property item to include this property and in the process makes the value of this property, along with the unit owner's personal property, subject to the coinsurance provision. It is important in writing property insurance for a commercial unit owner that the unit owner's responsibility for insuring any portion of the building is identified and its value taken into account in fixing the limit of insurance.

The CP 00 18, through use of the CP 19 10 06 95, Your Business Personal Property – Separation of Coverage, allows the insured to schedule contents and stock as separate items.

Property Not Covered