CP 00 99–STANDARD PROPERTY POLICY DECLARATIONS

(June 2019)

INTRODUCTION

The Insurance Services Office (ISO) has not developed an advisory declarations to use with CP 00 99–Standard Property Policy. This article lists items that should be on any such declarations. The suggested declarations is a combination of the common policy declarations and the commercial property declarations because CP 00 99 is a policy, not a coverage form.

HEADER

This section has spaces to enter the policy number and the effective date of coverage. It should also have a box to check if there is more than one location or when there is a Supplemental Declarations.

COMPANY AND PRODUCER IDENTIFICATION

The name and address of the insurance company that provides coverage and the producer must be entered in the spaces provided.

NAMED INSURED AND MAILING ADDRESS

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.

Example: A policy is issued to Mary Jones because that is 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. Since the names do not match, the insurance company has the right to deny coverage.

When more than one named insured is listed, the first named insured has additional rights and responsibilities. However, the same coverage applies to all named insureds. If the declarations does not have enough room to list all named insureds, they can be listed on a separate endorsement.

Cancellation notices are mailed to the mailing address. It is very important that this address be accurate because the insurance company is only required to mail notice of cancellation to the last known mailing address. In most states, the requirement is only that the insurance company prove that the notice was mailed to the last known address. Those states do not require that the named insured actually receive the notice in order for the cancellation to be valid. Delays in notification because the mailing address was incorrect could be a significant problem with this policy because the insurance company is only required to provide a five-day notice prior to the cancellation effective date.

POLICY PERIOD

These are the dates when coverage begins and ends. The policy begins and ends at 12:01 Standard Time at the mailing address. This is very important because the mailing address may be some distance from the location address. If the mailing address is in New York but the location is in California, the policy ends on New York time, not California time.

STATEMENT OF COVERAGE

This is a contract of insurance coverage. As a result, wording is required that explains that the named insured pays the premium and the insurance company provides the insurance coverage, subject to all policy terms and conditions.

DESCRIPTION OF PREMISES

The description of the insured premises is the starting point and 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 location's construction and occupancy are important and helpful items of information, but that information alone cannot establish or verify coverage.

COVERAGES PROVIDED

The location or premises information and the building numbers that apply are reprinted from the description and the coverage is then listed. The coverages that may be selected are:

• Building
• Business Personal Property
• Personal Property of Others

The type of coverage must be listed with a limit of insurance, the causes of loss that apply, and a coinsurance percentage of 0%, 80%, 90%, or 100%.

The covered causes of loss break into four categories:

• The basic coverage is fire, lightning, and explosion. These are the only covered causes of loss if the named insured does not select another option. An entry on the declarations is not needed.
• Windstorm or Hail, Smoke, Aircraft or Vehicles, Riot or Civil Commotion, Sinkhole Collapse, and Volcanic Action are not covered causes of loss unless an X is entered in the space provided on the declarations. These causes of loss are selected as a package of coverages based on the entry on the declarations.
• Vandalism is not a covered cause of loss unless an X is entered in the space provided on the declarations.
• Sprinkler Leakage is not a covered cause of loss unless an X is entered in the space provided on the declarations.

HIGHER LIMITS

Certain Additional Coverages, Coverage Extensions, and Limitations permit increases in the automatic limits. These increased limits are entered on the declarations. The insurance company that provides coverage must modify its version of this declarations to provide for such entries. Another approach is to attach newly introduced CP 04 08–Higher Limits and enter the increased limit that applies.

MORTGAGEHOLDERS

The premises and building numbers from the Description of Premises section are entered in the spaces provided. The mortgageholder’s name and mailing address for the designated premises are entered in the space provided. This information is necessary for mailings to take place as H. Additional Conditions 7. Mortgageholders requires and for loss settlements.

SUPPLEMENTAL DECLARATIONS

There must be a Supplemental Declarations to provide the same location coverage information indicated above if there is more than one location.

DEDUCTIBLE

The deductible is on only the main declarations because it is a global deductible. CP 03 20–Multiple Deductible Form must be attached if more than one deductible applies.

Related Article: Deductible Plan

PREMIUM

The policy premium is entered in the space provided.

FORMS APPLICABLE

Forms that apply to all coverages are listed first in the space provided. Forms that apply to specific coverages or locations are listed after that. This is also a global section.