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Completed Value and Reporting Forms

Summary: The AAIS commercial property program utilizes two forms to cover builders risks. Form CP-14 covers such risks on completed value basis, while CP-15 provides coverage on a reporting basis.

Topics covered:

Completed value form CP-14Completed value form CP-14, additional coveragesCompleted value form CP-14, perils coveredCompleted value form CP-14, supplemental coveragesCompleted value form CP-14, what must be done in case of lossCompleted value form CP-14, valuationCompleted value form CP-14, how much we payCompleted value form CP-14, conditionsCompleted value form CP-14, other conditionsReporting form CP-15Reporting form CP-15, how much we payReporting form CP-15, reporting requirements

Completed Value Form CP-14

As mentioned, this form is used when writing a builders risk policy for the completed value of the building under construction. It must be written for 100 percent of the completed value and coverage must be provided at the start of construction.

PROPERTY COVERED

We cover the following property for which a limit is shown on the declarations.

BUILDING PROPERTY UNDER CONSTRUCTION

This means buildings and structures described on the declarations, while being built, including:

1. foundations;

2. the following property located in the buildings and structures described on the declarations or in the open (or in vehicles) on or within 100 feet of the described premises and intended to become a permanent part of the described building or structure:

a. fixtures, machinery, and equipment used to maintain or service the described building or structure or its premises; and

b. materials, equipment, and supplies used in construction, alteration, or repair of the building or structure;

3. if not covered by other insurance, temporary structures constructed or assembled on the site and used in construction while at the site.

Analysis

Note that the policy clearly covers property under construction. It also covers the building’s foundation, which is excluded under the building and personal property coverage part. This is to cover a loss that might occur to the foundation before the rest of the building is upon it. The builders risk form also covers the materials, etc. that are being used to construct the building. The only things covered in the absence of other insurance are temporary structures on site used during the construction process.

PROPERTY EXCLUDED AND LIMITATIONS

1. Antennas and SignsWe do not cover outdoor:

a. radio, television, satellite, dish-type, or other antennas including their masts, towers, and lead-in wiring; or

b. signs, other than signs attached to buildings.

2. Land, Water, or Growing Crops or LawnsWe do not cover:

a. land, including land on which the property is located;

b. underground or surface water; or

c. growing crops or lawns.

3. Trees, Shrubs, and PlantsWe do not cover trees; shrubs; plants; and grain, hay, straw, or other crops, when outdoors.

Analysis

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