May 29, 2015

Summary: The Insurance Services Office (ISO) offers an Installation Coverage Form, IH 00 73 12 13 that is used to meet the needs of building owners, tenants, or contractors who require broad coverage for the property used in renovating or upgrading buildings. The form can be used in conjunction with CM 00 01 09 04, Commercial Inland Marine Conditions, and IL 00 17 11 98, Common Policy Conditions forms.

Topics covered: Introduction Insuring agreement Property not covered Covered causes of loss Additional coverages Coverage options Exclusions Limits of insurance Deductible; additional conditions Definitions Endorsements

Introduction

Installation Coverage Form, IH 00 73 12 13, is commonly used to provide broad coverage for building owners, contractors, or tenants who are renovating or upgrading buildings. The form differs from the builders risk coverage form in that the builders risk must have the applicable causes of loss form attached to provide coverage on a building under construction, while the installation coverage form provides open perils coverage on the materials to be permanently installed in a building. A building owner intending to remodel or renovate the building would be likely to purchase this coverage.

The form can be used in conjunction with CM 00 01 09 04, Commercial Inland Marine Conditions form, and IL 00 17 11 98, Common Policy Conditions form, to form a policy that will cover most of the insured's property on the construction site and in transit, as long as the property is intended to become a permanent part of the project. Thus, dry wall, trim boards, ducts, lighting, and even paint would be covered if they are intended to become a permanent part of the building.

Once the project has been completed—that is, the insured property has been installed in the building or project—other coverage (such as a commercial property policy) should be arranged.

Insuring Agreement

A.Coverage

We will pay for direct physical loss of or damage to Covered Property from any of the Covered Causes of Loss.

1.Covered Property

Covered Property, as used in this Coverage Form, means property situated as specified in the Declarations for installation at any described premises.

Analysis

Although the bulk of the property to be insured will probably be on the described premises—that is, the project site—it is not uncommon to have property designated for installation that is located offsite until it is needed. The declarations page is used to indicate the required amounts of insurance for (1) property while at any one job site, (2) property at any location other than a job site, and (3) property in transit. Because, as will be discussed, the applicable limits as shown in the declarations apply to loss or damage in any one occurrence, limits must be carefully selected if there is any question as to location of the property.

Property Not Covered