PROPERTY POLICIES · 6 MIN READ

Commercial Property: CP 00 10 and Causes of Loss

The ISO Commercial Property program is modular: the Building and Personal Property Coverage Form CP 00 10 states what property is covered, and a separate Causes of Loss form states which perils apply. CP 00 10 splits covered property into Building — the structure plus permanently installed machinery and equipment, outdoor fixtures, and completed additions — and Business Personal Property (BPP) — furniture, machinery, equipment, and stock, meaning merchandise held for sale, raw materials, work in process, and finished goods. The classification matters for scheduling and coinsurance: an HVAC system is Building because it is permanently installed, while finished goods are BPP wherever they sit on the premises. CP 00 10 also lists Property Not Covered — foundations below ground, underground pipes, land, paved surfaces, retaining walls, unattached outdoor signs — and the CP 14 10 Additional Covered Property endorsement is the schedule-driven tool that buys those items back. The three Causes of Loss forms create the peril ladder. CP 10 10 Basic lists 11 named perils. CP 10 20 Broad adds falling objects, weight of snow, ice or sleet, water damage, and collapse as an additional coverage. CP 10 30 Special converts the policy to open perils — risks of direct physical loss unless excluded or limited — and, unlike the named-perils forms, includes theft subject to special limits and exclusions. The Special Form carries the program's heavy exclusion machinery: ordinance or law, earth movement, water (flood), governmental action, nuclear hazard, war, utility services, and the concurrent-causation lead-in. Earthquake and flood-adjacent coverage return by endorsement, such as CP 10 40 or CP 04 09 for earthquake and volcanic eruption, and CP 14 50 offers only limited-form radioactive contamination coverage for sudden and accidental contamination from materials kept at the premises. A cluster of endorsements adjusts deductibles, valuation, and special situations, and the exam samples them steadily. CP 03 21 imposes a windstorm-or-hail percentage deductible calculated as a percentage of the limit of insurance, not of the loss. CP 99 65 Functional Building Valuation replaces replacement-cost valuation for obsolete buildings, paying the least of the scheduled Function Limit, the cost of functionally equivalent replacement, and the amount actually spent, while modifying coinsurance. CP 04 02 Brands and Labels lets the insured require salvage stamping or label removal at the insurer's expense. CP 04 17 Utility Services — Direct Damage covers physical damage to covered property caused by off-premises utility interruption, and CP 04 05 Ordinance or Law provides three separately activatable coverages: loss of value of the undamaged portion, demolition and debris removal of the undamaged portion, and increased cost of construction to current code.