What it does
CP 14 01 was introduced in the 09 17 edition. It gives a tenant coverage for "building property": building glass, building fixtures, and permanently installed machinery and equipment that are part of the building and individually described in the Schedule. Coverage applies only if:
- The insured is a tenant of the scheduled building.
- The insured has a contractual responsibility to insure the property, or to pay for loss or damage to it.
Key provisions
- The Schedule sets the location, the Causes of Loss form, the valuation basis (actual cash value or replacement cost), an optional coinsurance percentage, and separate deductibles for glass and other building property.
- The amount paid is based on the valuation indicated or the amount the tenant is liable for under contract, whichever is less. Where required by law, glass is replaced with safety glazing.
- Property insured here is removed from the Business Personal Property coverage, so it is not insured twice.
Who needs it
Retail and restaurant tenants responsible for storefront glass or rooftop HVAC units, and office tenants whose lease assigns them certain building systems.
Quoting and selling notes
- Read the lease for repair and replacement obligations, then list each item with a limit.
- Use CP 14 02 when the items are not individually described and blanket limits for glass and other building property are enough.
