Insurance can be purchased for properties owned by an insured. Properties include but not limited to building, business personal property, equipment, business income and extra expense. Dependent on specific business situations, there are other endorsments that should be considered
Ordinance or Law Endorsement: It has three coverage parts.
Coverage A – Coverage for loss to the undamaged portion of the building. The insured is not required to select a limit, as the endorsement will pay the difference between the amount of
damage incurred, and the policy limit – so a limits decision is made when primary coverage is selected.
Coverage B – Demolition Cost Coverage – which pays the cost to tear down and haul debris from the undamaged portion of the building, required by the enforcement of an ordinance or law.
Limits need to be selected, so knowledge of when the local laws may come into play, and the portion of the building likely to be effected, as well as demolition costs in your area is necessary.
Coverage C – Increased Cost of Construction – the additional costs to bring to building up to the minimum current code. The insured will need to select a limit, which should include the cost
of excavations, grading, backfilling and filling, building foundations, pilings and underground pipes, flues and drains – which are typically property not covered, but are added as covered
with this endorsement. Consult a contractor, engineer, or loss control specialist to select a proper limit.
Utilities Services Endorsement – Direct Damage
All three ISO Causes of Loss forms, the Basic, Broad and Special Form, exclude damages that result from the failure of utility service. When this endorsement is purchased, the policy will pay for loss of or damage to covered property in the schedule, caused by by an interruption in utility service to the described premises. The interruption in utility service must result from direct physical loss or damage by a Covered Cause of Loss (as
indicated in the Schedule). Coverage under this endorsement for loss or damage to Covered Property does not apply to loss or damage to electronic data, including destruction or corruption of
electronic data. Coverage also does not extend to spoilage of perishable personal property.
Spoilage Coverage
This endorsement will for loss of “perishable stock” at the described premises due to breakdown of equipment or power outage.