Completed Value and Reporting Forms

Summary: The AAIS commercial property program utilizes two forms to cover builders risks. Form CP-14 covers such risks on completed value basis, while CP-15 provides coverage on a reporting basis.

Topics covered:

Completed value form CP-14 Completed value form CP-14, additional coverages Completed value form CP-14, perils covered Completed value form CP-14, supplemental coverages Completed value form CP-14, what must be done in case of loss Completed value form CP-14, valuation Completed value form CP-14, how much we pay Completed value form CP-14, conditions Completed value form CP-14, other conditions Reporting form CP-15 Reporting form CP-15, how much we pay Reporting form CP-15, reporting requirements

Completed Value Form CP-14

As mentioned, this form is used when writing a builders risk policy for the completed value of the building under construction. It must be written for 100 percent of the completed value and coverage must be provided at the start of construction.

PROPERTY COVERED

We cover the following property for which a limit is shown on the declarations.

BUILDING PROPERTY UNDER CONSTRUCTION

This means buildings and structures described on the declarations, while being built, including:

1.     foundations;

2.     the following property located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises and intended to become a permanent part of the described building or structure:

a.     fixtures, machinery, and equipment used to maintain or service the described building or structure or its premises; and

b.     materials, equipment, and supplies used in construction, alteration, or repair of the building or structure;

3.     if not covered by other insurance, temporary structures constructed or assembled on the site and used in construction while at the site.

Analysis

Note that the policy clearly covers property under construction. It also covers the building's foundation, which is excluded under the building and personal property coverage part. This is to cover a loss that might occur to the foundation before the rest of the building is upon it. The builders risk form also covers the materials, etc. that are being used to construct the building. The only things covered in the absence of other insurance are temporary structures on site used during the construction process.