What it does
CG 20 18 adds the scheduled person or organization as an additional insured only for liability as mortgagee, assignee or receiver arising out of the ownership, maintenance or use of the scheduled premises by the named insured.
Who needs it
Owners of financed commercial, habitational and mixed-use property; loan documents from banks and CMBS lenders routinely require it.
Key provisions and limits
- Excludes structural alterations, new construction and demolition operations performed by or for the additional insured.
- Schedule shows the lender and the premises.
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Do not confuse with the property mortgageholder clause; CG 20 18 gives liability coverage only.
- Lenders sometimes accept CG 20 26; check the loan covenant language.
