Insuring Commercial Property

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NEW Study Guide

This Study Guide has been prepared to enhance your learning experience. It contains all of the Check-In questions, Knowledge Checks, and Self-Quizzes contained within the course, along with an Answer Key and Glossary. Use it as a tool to help practice and assess your knowledge of the course material, but do not mistake it for a comprehensive “short- cut” to preparing for the final exam.

Be sure to take a look at the section, “Appendix,” that follows the Answer Key in this Study Guide. It contains valuable suggestions for test preparation and study techniques, as well as some sample exam questions and a glossary of terms.

Your path to success in passing the final exam will come from your attentiveness during the course and the effort you put into preparation.

Section 1 – Fundamentals of Commercial Property

Types of Commercial Property

This video explains the difference between real property and personal property. 

Insurable Interest

This video explains the concept of “insurable interest” and outlines who may purchase a property insurance policy.  

Valuation Methods

This video explores the different methods of assigning a monetary value to insured property. 

Coinsurance

This video describes the reason for coinsurance and demonstrates how the coinsurance formula applies after a loss. 

Fluctuating Property Values

This video illustrates why many businesses may have fluctuating property values and how to insure the property accordingly. 

Section 2 – Building and Personal Property Coverage Form

What is "Building"?

This video explains how CP 00 10 defines “building.”

Additional Coverages vs. Coverage Extensions

This video compares the “Additional Coverages” and “Coverage Extensions” provisions of the Building and Personal Property Coverage Form. 

Vacancy

This video explains the Vacancy provision of the Building and Personal Property Coverage Form. 

Optional Coverage

This video spells out the four optional coverages contained within CP 00 10.  

Section 3 – Causes of Loss Forms

Water Damage Exclusion

This video clarifies the scope of the Water Damage exclusion contained within all three Causes of Loss forms. 

Collapse

This video explains the purpose of the Collapse exclusion contained in the Causes of Loss – Special Form. 

Concurrent Causation

This video explains why certain exclusions have additional wording to prevent the insurer from having to pay for losses that fall outside the intent of the policy. 

Limitations on Certain Property

This video spells out how the Causes of Loss – Special Form responds to specific types of property that are more adequately protected through other types of insurance. 

Section 4 – Basics of Time Element Insurance

Business Income and Extra Expense

This video introduces the concept of time element coverages. 

Business Income Options

This video illustrates how coinsurance is applied to time element coverages and explains the alternatives to using the coinsurance provision.  

Extended Period of Indemnity

This video explains why the Extended Period of Indemnity endorsement may be added to the Business Income (and Extra Expense) Coverage Form. 

Dependent Properties

This video describes how time element coverage may be used to respond to losses that occur at a business not owned by the insured.

Inland Marine Overview

This video clarifies how Inland Marine insurance differs from a Commercial Property policy.  

Transportation Insurance

This video provides a high-level overview of the types of businesses that may need transportation insurance. 

Bailee Coverage

This video provides a high-level overview of the types of businesses that need insurance for their bailee exposures. 

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