Commercial PropertyQuestion 99 of 215
A dry cleaner has customer garments on the premises waiting to be picked up. Which coverage category under CP 00 10 most accurately responds to direct physical damage to these garments?
a.Business Personal Property
b.Additional Coverage — Pollutant Cleanup
c.Building coverage
d.Personal Property of Others
Explanation
Property owned by others but in the care, custody, or control of the named insured (such as customers' clothes at a dry cleaner) is covered under the third category, Personal Property of Others. Loss payment for that category is made to the owner of the property unless the policy states otherwise.
Law Reference: ISO Building and Personal Property Coverage Form — Personal Property of OthersPractice all 215 questions free — no signup required.
Related questions on this topic
- A commercial insured wants the broadest causes-of-loss form available so coverage applies to any direct physical loss that is not specifically excluded. Which causes-of-loss form should the producer recommend?
- Which of the following perils is covered under the Basic causes-of-loss form but is NOT one that an insured can rely on the Broad form to add?
- Under the Building and Personal Property Coverage Form (CP 00 10), which of the following is NOT included automatically in the definition of Building coverage when the insured shows a value for the building?
- A commercial building with a replacement value of $1,000,000 carries an 80% coinsurance clause. The insured purchased only $600,000 of coverage. A covered fire causes a $200,000 loss. Ignoring the deductible, how much will the insurer pay?
- An insured selects the Agreed Value optional coverage on a commercial property policy. What is the primary effect of this option?
- A commercial building has been vacant for more than the period specified in the vacancy condition of the Building and Personal Property Coverage Form. Which statement BEST describes the effect on coverage?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California Property & Casualty Insurance License Exam · How we review