(June 2019)
CP DS 00–Commercial Property Coverage Part Declarations is an advisory form that ISO developed in 2000. It has not been updated since then. Most insurance companies modify it to meet their specific needs. However, many items remain as ISO placed them because the coverage form refers to them.
The Declarations provides information that relates directly to coverages and claims payments that are unique to them. However, it is designed for single location accounts. A multi-location risk would require a CP DS 01–Commercial Property Coverage Part Supplemental Declarations be attached for each additional location.
This section has spaces to enter the policy number and the effective date of coverage. It also contains a box to check if there is more than one location and more than one Supplemental Declarations.
The exact named insured should be listed. Coverage is provided to only the named insured. If the name is not accurate, coverage may be voided because of lack of financial interest.
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Example: A policy is issued to Mary Jones because that was the name on the application. However, the named insured was supposed to be Mary Smith. Mary Smith reports a loss using her name and her policy number. The insurance company has the right to deny coverage because the names do not match. |
When there is more than one named insured listed, the first named insured has additional rights and responsibilities. However, the same coverage applies to each named insured. The declarations may not have enough room to list all named insureds. In that case, they can be listed on a separate endorsement.
The description of the insured premises is the starting point for coverage and underwriting and therefore must be as accurate and detailed as possible. Coverage can be denied if the address or description is incorrect or inaccurate. It is an unfortunate fact that claims are denied because of incorrect or mistaken addresses. The insured locations’ construction and occupancy are important and helpful items of information, but that information alone is not sufficient to establish or verify coverage.
The location or premises information and the building numbers that apply are reprinted from the description and then the coverage is listed. The coverages that may be selected are:
The coverage form can be used to provide multiple coverages. However, that coverage will apply only when a limit of insurance is entered for it.
A causes of loss form must be selected for each coverage provided. Different causes of loss forms can apply to different coverages. For example, Causes of Loss–Special Form could apply to building coverage and Causes of Loss–Broad Form could apply to business personal property.
Each coverage provided is subject to a coinsurance percentage. The options are zero, 80%, 90%, and 100% and one must be entered even if the Agreed Value Optional coverage below is selected. The policy rate or rates that apply may or may not be entered in this area.
The available options on the declarations are:
Related Article: CP DS 00–Commercial Property/Time Element Coverage Part Declarations
HIGHER
LIMITS
Certain Additional Coverages, Coverage Extensions, and Limitations permit increases in the automatic limits. These increased limits must be entered on the declarations, but CP DS 00 does not provide any space to enter them. This means the insurance carrier that provides coverage must modify its version of CP DS 00 to provide for such entries. Another approach is to attach the newly introduced CP 04 08–Higher Limits and enter the increased limit(s) that applies.
The premises and building numbers from the Description of Premises section and the mortgageholder's name and mailing address for the designated premises are entered in the space provided. This information is necessary for mailings as the Mortgageholders Additional Conditions require and for loss settlements.
A Supplemental Declarations must be prepared for each additional location. CP DS 01–Commercial Property Coverage Part Supplemental Declarations requires the same information as described above.
The deductible is on only CP DS 00. It is not on CP DS 01–Commercial Property Coverage Part Supplemental Declarations because it is a global deductible. CP 03 20–Multiple Deductible Form must be attached if there are multiple deductibles.
Related Article: Deductible Plan