CP 00 99–STANDARD PROPERTY POLICY OVERVIEW

(June 2019)

INTRODUCTION

The Insurance Services Office (ISO) CP 00 99–Standard Property Policy is a self-contained, limited-option version of CP 00 10–Building and Personal Property Coverage Form. Coverage applies for only selected Causes of Loss. CP 00 99 is a policy. It is not a coverage form. It has its own conditions built into it and neither IL 00 17–Common Policy Conditions nor CP 00 90–Commercial Property Conditions are attached to it. It may be an attractive option for the insured that wants or needs only basic coverage, but it may also be the only coverage available to certain insureds!

ELIGIBILITY

CP 00 99–Standard Property Policy has no limitations or exclusions with respect to eligibility. It is available to any commercial entity on a monoline basis. It cannot be added to a package policy.

POLICY MAKE-UP

The Standard Property Policy consists of the following:

Standard Property Policy Declarations

Related Article: Standard Property Policy Declarations

CP 00 99–Standard Property Policy

Policy Cover or Policy Jacket developed by individual insurance companies. These forms may also include an index or a table of contents to meet requirements that some states impose.

Note: IL DS 00–Common Policy Declarations, CP DS 00–Commercial Property Coverage Part Declarations,
CP 00 90–Commercial Property Conditions, and IL 00 17–Common Policy Conditions are not used with this policy. A stand-alone declaration is needed, and the policy includes all conditions that apply to it.

RESTRICTIONS AND CONSIDERATIONS

CP 00 99 has a number of important restrictions and considerations that must be noted because they affect coverage.

Valuation is always Actual Cash Value. Replacement Cost Valuation is not an option.
Only five days-notice of cancellation to the named insured is required. Consult state specific rules for any exceptions.
There is no coverage for loss or damage caused by vandalism if the premises is vacant or unoccupied more than 30 consecutive days. There is no coverage for loss or damage caused by any other covered cause of loss if the premises is vacant or unoccupied more than 60 consecutive days. The only exception is when the vacancy is usual or incidental to the risk.
CP 00 99 is always written subject to coinsurance. Agreed Value is not an option.
Inflation Guard is not an option.
The Coverage Extensions apply only in the state where the described location(s) is/are located.
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 none of the other options is selected. 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.

H. Additional Conditions:

4. Knowledge or Control eliminates the insurance company’s obligation to pay for loss or damage when the likelihood of loss or damage is increased by anything within the named insured’s control or knowledge.
7. Mortgageholders specifies that mortgageholders receive only ten days-notice of cancellation or non-renewal. However, this notice period may be different, depending on the state involved and its laws.
9. Policy Period, Coverage Territory specifies that coverage applies only in the state(s) where the described location(s) is/are located.

RATING

The rating formulas and procedures for CP 00 99–Standard Property Policy are the same as for the rest of the commercial property program. However, there is one exception.

A 2% credit (.98 factor) is applied to the basic Group I and Group II rates used with the Standard Property Policy.