Theft of Property in Transit

January 4, 2016

Our insured's executive director had the company's laptop computer and iPad, and they were stolen from his vehicle. There was no forced entry, and he may have left the door unlocked. The insured has the ISO Building and Personal Property Coverage Form, CP 00 10 and a Causes of Loss – Special Form, CP 10 30. There is also a property extension endorsement. The director stopped for dinner on his way home, and that is when the theft occurred.

The adjuster is basing his coverage denial on the fact that the property was in transit.

Washington Subscriber

We would agree with the adjuster's assessment if the insured did not carry the property extension endorsement. The coverage extension on the CP 10 30 form for property in transit, which covers the insured's personal property in transit more than 100 feet from the described premises, specifies that the property must be in or on a vehicle the insured owns, leases, or operates. From what you describe, the laptop and iPad were in the director's car. The extension also applies only to theft of an entire bale, case, or package, and there must be visible marks of forced entry, which did not occur in this instance. The CP 00 10 covers business personal property located in a vehicle within 100 feet of the premises, so the property would not be covered via this form.

However, in light of the provisions on the property extension endorsement, the loss would be covered under a coverage extension for computer equipment, which provides coverage for such property when it is in transit. There is no exception for theft of this type of property in transit, so the loss would be covered.

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