1. Forms
2. PM
3. PM-00-19

What the form is

The ISO Personal Property Form PM 00 19 is a coverage form designed to insure personal property on an open perils basis. It is a simplified-language contract that is not a standalone policy but must be attached to the Personal Inland Marine Common Policy Provisions form PM 00 01. The primary purpose of this form is to provide broad coverage for the bulk of an insured's ordinary personal possessions that are not specifically scheduled. It can also cover the insured's additions and alterations to a residence they occupy as a tenant or to a condominium unit they own.

Classes of business it applies to

This form is used in personal lines insurance. While modern homeowners, condominium, and renters policies often provide extensive personal property coverage, the PM 00 19 serves specific needs, such as:

• Insuring personal property when a standard homeowners policy is not in place or does not provide adequate coverage for certain items.
• Situations where an insured prefers to cover their personal property under a separate inland marine policy, for instance, if they escrow insurance payments with their mortgage or have substantial collections of personal property they wish to insure separately from their homeowners policy.
• Providing coverage for a college student's personal property while they are away from home.

For example, an individual renting an apartment who owns a significant amount of general personal property but doesn't have a renter's policy might use this form. Another example could be someone with a basic dwelling policy for a secondary home who needs to insure the personal contents separately.

Special considerations

• Unscheduled Property: This form is primarily for unscheduled personal property. While it provides broad coverage, specific high-value items like jewelry, furs, or fine arts might be better insured by scheduling them, potentially using other specific personal articles forms in conjunction with the PM 00 01.
• Declarations Dependent: Coverage for various categories of personal property (e.g., clothing, furniture, appliances) is only activated when that category is indicated and a specific limit of insurance is shown on the Declarations page. The amount shown for each category is the maximum that will be paid for all items within that category, regardless of the total policy limit.
• Other Insurance: The PM 00 19 modifies the 'Other Insurance' condition found in the PM 00 01. Instead of applying as excess insurance, the PM 00 19 states that if other insurance applies to the same loss, this form will pay on a proportional basis.
• Limited Modern Usage: Due to the comprehensive nature of modern homeowners and renters policies, the standalone need for the PM 00 19 has diminished but it remains relevant for specific scenarios.

Key information for agents and underwriters

• Open Perils Coverage: The form provides 'open perils' (sometimes called 'all-risk') coverage, meaning it covers direct physical loss to property unless the loss is caused by a peril specifically excluded in the form.
• Loss Settlement: Unless endorsed otherwise, loss settlement is typically on an Actual Cash Value (ACV) basis. The value of the property is determined at the time of loss.
• Property of Others: At the insured's request after a loss, the form can cover unscheduled personal property owned by a guest or a residence employee while the property is at the insured's residence.
• Newly Acquired Property: The form includes coverage for newly acquired personal property of the type described in the Schedule. This coverage is usually limited to a percentage (e.g., 10%) of the total amount of insurance for all covered classes or a specific dollar amount (e.g., $2,500), whichever is less.
• Attachment to PM 00 01: It is crucial to remember that PM 00 19 is not a complete policy on its own and must be used with PM 00 01 (Common Policy Provisions), which contains general conditions and definitions applicable to the coverage.
• Risk Assessment: Underwriters should carefully review the types and values of property being insured, especially if the applicant does not have a corresponding homeowners or renters policy, to assess potential moral or morale hazards and to ensure appropriate limits are set for different categories of property.