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LOUISIANAAGENT
d e s u f n o C & d e Daz 180 Day 'Limitation' in the Commercial Property Policy:
Within ISO's Building and Personal Property Coverage Form (CP 00 10), a 180-day limitation applies to three situations: Within the Additional Coverage – Debris Removal. Simply stated, debris removal expenses, up to the eligible limit, are paid only if they are reported within 180 days of the direct physical loss. Within the Additional Coverage – Pollutant Clean-up and Removal. Like coverage for debris removal, the forms states that is pays for eligible expenses only if reported in writing to the carrier within 180 days of the date of the Covered Loss. As part of the requirements of the Optional Coverage – Replacement Cost. This use of the 180 day “limitation" in the ISO form is the subject of this article.
ISO Coverage Form Language
“…actual cash value basis…": What does the “you" or the named insured get to decide? The named insured is given the option to make a claim on an actual cash value (ACV) basis rather than on a replacement cost basis as allowed when the insured choses this optional coverage. “In the event…": Means, “If." “…you may still…": The you/named insured has the option to change his/her/its mind. “…notify us…": If the you/named insured changes his/her/its mind, the insurance carrier must be notified. “…within 180 days after the loss or damage.": Although the you/named insured has a right to change his/her/its mind regarding ACV versus Replacement Cost, that right expires 180 days after the loss.
What does this mean? Simply, the INSURED (not the insurance carrier) has the option to settle the To begin this discussion, let's review the relevant “180-day" wording found within the Replacement property loss on an ACV basis rather than a replacement cost basis when this optional Cost provision of ISO's CP 00 10: coverage is chosen. However, this provision gives c. You may make a claim for loss or damage covered by the INSURED (not the insurance carrier) the right this insurance on an actual cash value basis instead of to change its mind and seek recovery on a replacement cost basis – provided the insurance on a replacement cost basis. In the event you elect to carrier is notified of such intention within 180 have loss or damage settled on an actual cash value days of the loss. basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify All decisions within this provision are those of the us of your intent to do so within 180 days after the INSURED. None of these decisions are given to loss or damage. the insurance carrier. Key terms and conditions within this language What This Provision Does NOT Allow must be reviewed to understand how this Insurance carriers misapply this provision provision applies: regularly, and in many unique ways. This provision “You…": The very first word of this provision does NOT allow: points to WHO gets to make what decision. The “you" is the named insured. From the beginning it is clear that the named insured is making a decision.
