Is coverage written on a Special form or Basic form? Basic forms cover only a limited set of named perils, whereas a special form covers all risks except exclusions named in the policy. We caution our clients to avoid basic forms because they do not cover common perils such as pipe burst, for example.

Is loss settlement calculated on a Replacement cost or an Actual cash value basis? Replacement cost insurance does what insurance is supposed to do, it provides full indemnity to repair and recover your claim. Actual cash value insurance settles property losses subject to depreciation, which is subjective and can be substantial on older properties. “ACV” insurance is only recommended for clients with cash reserves who want to limit their premium expense.

Coinsurance is a “participation tool” employed within property insurance policies that quantifies the extent to which a property must be insured to value, in order to receive settlement for its claim of any size without coinsurance penalty. 80% coinsurance is common, but some policies will require 90% or 100% insurance to value instead. 235 Insurance employs standard industry software to assist in evaluating your property’s insurance-to-value need. If your agent is not speaking with you about your coinsurance need for your property, connect with us to make sure you are adequately insured.

Certain coverage forms are available only through policy endorsement, because they are not a part of standard ISO forms. These include common perils such as equipment breakdown & sewer backup. Other common exclusions without expanded coverage forms include flood, earthquake, pollution, & mold. You will need to review your policy forms with your agent to make sure your insurance meets your needs, and understand your exposures.

Does your coverage form match the occupancy of the building? For example, if your property is less than 35% occupied, do your policy forms list a vacancy permit? If you will be renovating, is there a “course of construction” or “builder’s risk” form? Insurance can be confusing and tedious without great help; allow our experienced team to do the hard thinking for you, and keep you covered.

The main duties of a real estate insured are to host fire and life safety inspections when requested, and to at all times maintain quality fire and life safety standards at their insured location. Also, to report claims quickly to the insurance carrier or agent. Insured’s should actively maintain their property because insurance covers sudden perils, and not “wear and tear” that occurs over extended periods of time.