09.01. BPP Loss Conditions and Additional Conditions

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09.01. BPP Loss Conditions and Additional Conditions
2013-04-14 15:47:24
BPP Loss Conditions Additional

BPP Loss Conditions and Additional Conditions
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  1. Loss Conditions
    • abandonment: insured can't abandon damaged property, unless insurer buys salvage
    • appraisal
    • duties in the event of loss or damage: police, prompt notice, collaborate, protect from further loss, furnish inventory, submit to examination under oath, signed and sworn proof of loss
  2. Loss Payment Options
    • amount of loss or damage
    • cost of repairing or replacing (except ordinance)
    • take over damaged property and pay its agreed or appraised value
    • repair, build or replace (risky since insurer is required to make it satisfactory at own cost)
    • regardless of loss value, insurer never pays more than insured's financial interest
    • insurer has 30 days after receiving the proof of loss to decide whether it will pay or not
    • actual payment is due 30 days after parties agree on amount payable
  3. Vacancy
    • if building is vacant for 60 consecutive days, won't pay for vandalism, sprinkler leakage (unless was protected against freezing), breakage of building or glass, water damage, (attempted) theft
    • if any other peril occurs, reduce payment by 15%
  4. Valuation
    • usually ACV
    • building damage <= $2,500 (except floor, appliances, outdoor equipment) is replacement cost
    • stock sold but not delivered = selling price minus discount and unincurred costs
    • glass = replacement if safety glazing
    • non-replaced improvements and betterments = % remaining life
  5. Mortgageholde
    • loss payments: usually made payable jointly to insured and mortgagee so they can decide how to split
    • insured's actions don't affect morgagee's right if he pays remaining contract premium
    • insurer must notify 10 days ahead for non-payment cancellation or non-renewal, otherwise 30 days, has to notify mortgagee as well otherwise mortgagee protection stays in force