What it does

CP 00 10 includes a Newly Acquired or Constructed Property coverage extension. It automatically covers new buildings under construction at the premises and newly acquired buildings up to $250,000 per building, for a limited time until reported. CP 04 25 replaces that $250,000 limit with the Newly Acquired or Constructed Property Limit shown in its Schedule or the Declarations.

Key provisions

• It applies to the Building and Personal Property and Condominium Association coverage forms, the Standard Property Policy and the Legal Liability Coverage Form.
• When attached to the Legal Liability form (CP 00 40), the endorsement substitutes "Newly Acquired Property" terminology and adjusts the paragraph reference to match that form.
• All other terms of the extension still apply, including when coverage ends and the duty to report values and pay premium.
• The 10 90 edition remains current per forms lists.

Quoting and selling notes

• A $250,000 automatic limit is often far below the value of a newly bought commercial building. For clients who acquire property, raise it and remind them to report acquisitions promptly.
• The automatic extension is temporary. Report each new building so it can be added with a full limit.