Form CP 14 10 - Clarification on Title and Purpose
The form code CP 14 10 is officially titled Additional Covered Property by ISO (Insurance Services Office). Its primary purpose is to allow businesses to add coverage for specific types of property that are otherwise excluded or limited under the standard Building and Personal Property Coverage Form (CP 00 10). Examples of property that can be added using CP 14 10 include foundations of buildings, retaining walls, underground pipes, flues, or drains, and fences. This endorsement requires the insured to specifically list the property they wish to cover.
The description you provided – "Provides coverage for radio or television antennas, satellite dishes, and their lead-in wiring, masts, or towers, which may otherwise be excluded or limited" – aligns with a different ISO endorsement: CP 14 50 Radio Or Television Antennas. The standard CP 00 10 form often provides only a limited amount of coverage for these items as an Additional Coverage (typically around $1,000 and on a named perils basis).
Therefore, the following detailed description pertains to form CP 14 50 Radio Or Television Antennas, as it directly matches your summary of coverage needs.
CP 14 50 Radio Or Television Antennas
1. What the form is
The CP 14 50 Radio Or Television Antennas endorsement is designed to provide specific, scheduled coverage for radio or television antennas, satellite dishes, and their associated lead-in wiring, masts, or towers. Standard commercial property forms, like the CP 00 10, often limit coverage for these items under the Outdoor Property extension, typically to a sub-limit like $1,000 and often only for specific named perils. The CP 14 50 allows businesses to purchase higher limits of insurance for this specialized property and may offer broader causes of loss coverage, effectively moving it from an "additional coverage" with a small, fixed limit to specifically scheduled "covered property" with its own dedicated limit.
The endorsement requires scheduling the specific antennas or satellite dishes, the applicable premises, the desired limit of insurance, the chosen causes of loss form (e.g., Basic, Broad, or Special), and the applicable coinsurance percentage.
2. Classes of business it applies to
This endorsement is valuable for a wide range of businesses that rely on or have significant exposures related to radio and television antennas or satellite dishes. Examples include:
- Broadcasting Companies: Radio and television stations with transmission towers and antennas.
- Telecommunication Companies: Businesses utilizing microwave or satellite dishes for communication networks.
- Hotels and Motels: Properties with large satellite dishes for guest television services.
- Residential Complexes: Apartment buildings or condominium associations providing satellite television to residents via a central dish.
- Rural Businesses: Operations in remote areas that might depend on satellite dishes for internet or communication services.
- Any business with valuable antenna or satellite dish installations: For instance, a county government that purchased a $10,000 antenna which later appreciated to $1 million would need this endorsement for adequate coverage.
- It can also be added to a Builders Risk Form (CP 00 20) for antennas being installed.
3. Special considerations
- Valuation: It's crucial to establish an accurate insurable value for the antennas and related equipment, including installation costs. Replacement cost valuation is often preferred, but this needs to be specified.
- Cause of Loss Selection: The insured can choose the causes of loss form that applies to the scheduled antennas (Basic, Broad, or Special). Opting for Special Form (all-risk) provides the most comprehensive coverage but will be priced accordingly.
- Coinsurance: A coinsurance percentage will apply, so ensuring the limit of insurance is adequate to meet the coinsurance requirement is vital to avoid penalties at the time of loss.
- Excluded Perils: Even with Special Form, certain perils might be excluded (e.g., specific weather-related exclusions may be part of the endorsement wording, or inherent in the chosen causes of loss form, such as wear and tear, mechanical breakdown unless ensuing loss is covered). It's important to review these.
- Attachment to Policy: This endorsement modifies the underlying property coverage form (e.g., CP 00 10). It doesn't stand alone.
- Wind/Hail Exposure: Antennas and towers are particularly susceptible to wind and hail damage. Deductibles for these perils, potentially percentage-based, should be reviewed.
Real-world example: A hotel invested $50,000 in a sophisticated satellite system for guest entertainment. The standard $1,000 outdoor property limit in their CP 00 10 is grossly inadequate. Attaching the CP 14 50 allows them to schedule the system for $50,000 under Special Form coverage, ensuring it's properly protected against perils like windstorm or vandalism, subject to the chosen deductible.
4. Key information for agents and underwriters
- Risk Assessment:
- Location: Is the antenna in an area prone to high winds, hail, heavy snow/ice, or vandalism?
- Height and Construction: Taller masts/towers and more complex antenna arrays present higher risks. What materials are used? How is it secured?
- Maintenance: Regular inspection and maintenance logs can indicate a better risk.
- Surrounding Environment: Are there tall trees or other structures nearby that could fall and damage the antenna?
- Proximity to Coast: Increased risk from hurricanes/salt spray.
- Pricing:
- Higher limits, Special Form coverage, and locations with greater exposure will command higher premiums.
- The chosen coinsurance percentage and deductible will also influence the premium.
- Coverage Gaps to Address:
- Ensure the scheduled limit is sufficient for full replacement cost, including installation and debris removal of the damaged antenna.
- Discuss Business Income/Extra Expense exposure if the antenna is critical for operations (though this endorsement covers direct property damage, the loss of use would be covered under Time Element coverages if applicable).
- Verify if coverage for foundations of the mast or tower is needed and how it's addressed (potentially via CP 14 10 if excluded by the base form).
- Underwriting Guidelines:
- Underwriters will likely require detailed information about the type, age, condition, and installation of the antenna.
- Photographs and engineering reports (for very large or complex installations) may be requested.
- Loss history related to similar property will be a factor.
- Ensure the applicant understands the policy terms, especially any specific exclusions or limitations within the CP 14 50 or the selected Causes of Loss form.
Real-world example for underwriters: An application for CP 14 50 comes in for a 150-foot radio transmission tower located on a mountaintop known for severe weather. The underwriter would closely examine engineering specifications for wind load, grounding for lightning protection, and the insured's maintenance schedule before approving coverage and determining the appropriate rate.