Real Estate Operations Endorsement
November 11, 2014
I was presented a claim for damage to business personal property of a tenant under a BOP. A roof leak for undetermined reasons caused damage to an electronic device not permanently attached to the insured structure and owned by the tenant. The building was constructed twenty years ago solely for the current tenant. It is owned, managed, and rented by the insured and the insured acts as the agent for the collection of rents.
The BOP was endorsed with CG 22 60 (limitation of coverage—real estate operations) and the claim was denied based on the wording of the endorsement. The questions I have are these: what is the purpose of the endorsement? If there is bodily injury at the location that might be attributed to the insured's negligence, would CG 22 60 provide coverage for a claim?
Mississippi Subscriber
The endorsement is designed to tailor general liability coverage to a smaller type of real estate operation, such as one whose sole operations are limited to the sale or rental of property and not to property management. When this endorsement is attached to the liability form, coverage is limited to the premises used by the named insured for general office purposes. Coverage also is extended to activities involved with premises listed for sale or rental as long as the property is not managed by or in the care, custody or control of the named insured, or the named insured does not act as an agent for the collection of rents. The endorsement applies to bodily injury and property damage arising out of the ownership, operation, maintenance or use of premises listed or shown by the insured.
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