Destin Real Estate

Contract Conditions:

Cancellation/Non-Renewal: The insurer is required to give 20 days notice of cancellation for cancellations within the first 90 days the policy is enforced. After the first 90 days, the insurer must give 45 days written notice of cancellation except for cancellation for nonpayment of premium, which is 10 days. The insurer must give at least 45 days written notice of non-renewal. The notice of non-renewal or cancellation must state the reason for cancellation or non-renewal unless the insurer is canceling for material misrepresentation or misstatement or failure to comply with the underwriting requirements of the insurer. The insurer is also required to get the insured 45 days advance notice of the renewal premium.

Changes: The commercial property policy may be changed by endorsement. The changes must be agreed to by the company. Endorsements are specific  items/interests for insurance coverage that are incorporated in the policy; also known as scheduled items/risks.

Transfer: The insured may not transfer any rights or duties under the policy without the written consent of the insurer. Rights and duties may be transferred to one who has temporary legal custody of the property or to the legal representative in the event of the insured's death.

Concealment, Misrepresentation, Fraud: Coverage under the policy may be voided by the insurer if the insured materially misrepresents information or facts. Florida statute will only allow an insurer to avoid paying a claim when misrepresentation or concealment is involved if the misrepresentation or concealment are fraudulent or material which means the insurer would not have issued the policy or would not have issued the policy at the same premium or limit of insurance if the insurer knew about the increase in hazard concealed or misrepresented by the insured.

Control of Property:  insurance policies will not pay for damage intentionally caused by the insured. The commercial property policy will provide coverage where another intentionally damages the property beyond the insured's direction or control. If the insured intentionally damages one property, losses to other properties not intentionally damage will be covered.

Liberalization: The commercial property policy contains a liberalization clause which states that if an insurer changes the policy form to broaden coverage and does not charge an additional premium for the broadened coverage, either before the start of the policy period (usually 45 days) or during the policy period, the insured will automatically (without additional premium) receive the broadened coverage on the new form. With the liberalization clause in the policy, the insurer does not have to cancel and rewrite policies to give the insured the broadened coverage. The liberalization clause only applies to broadened coverage. If the insurer restricts coverage in a new policy form, the insured will not be subject to the restricted coverage during the policy period.

Other Insurance: If more than one policy with the exact same coverage, terms, and conditions is written on the same property, the policies will prorate any claim payments. If more than one policy, with different coverage, terms, and conditions is written on the same property, the policy will be excess over the other policy whether collectible or not.

Policy Period, Territory: The policy covers property within United States, Puerto Rico and Canada. Losses, which commenced or started within the policy period. If a claim for windstorm is made, the windstorm or hurricane must begin before the expiration date shown on the policy. As long as the loss begins before the expiration date, the entire loss will be covered by the policy.

Subrogation: Subrogation is the insurer's right to collect damages on behalf of the insured from other parties who are responsible for the loss under the insurance policy. We previously discussed the principle of indemnity. The insurer should pay the insured or pay on their behalf without allowing the insured to "gain" on the loss. The subrogation clause allows the insurer to collect from an at fault party. If the insured were allowed to collect from both the insurer and the at fault party, he or she would certainly have gained from the loss. If an insured collects directly from an at fault party, the insurer will frequently refuse to pay any portion of the claim; the insured has violated the insurer's right to collect damages from other parties. The insured is granted permission under the commercial property policy to waive rights against others under certain conditions; such waiver must be in writing prior to the loss, except the waiver may be after the loss if the waiver is given to another insured, a related business firm, or a tenant of the insured.

Deductible: The standard deductible for a commercial property policy is $500 per occurrence for all perils other than hurricanes. For hurricanes, a separate minimum deductible of $500 or a maximum of 10% of the limit shown for coverage applies. The insurer must offer the insured the option of having the deductible apply either on a per event or an annual basis. Optional higher deductibles of $1,000, $5000, $10,000 or higher may be purchased.

Coverage Forms General:
Major commercial property coverage forms are:

Building and Personal Property Coverage form
Builder's Risk Coverage form
Business Income Coverage form
Extra Expense Coverage form
Legal Liability Coverage form
Glass Coverage form
Condominium Association Coverage form
Condominium Commercial Unit-Owners Coverage form
Leasehold Interest Coverage form

For Commercial Property Insurance companies, consultation and Commercial Insurance Agents in Florida Call Mike Henderson, REALTOR

Coastal Properties of NW Florida 850-259-7805  To Contact  Reliable Commercial Insurance Agents/Agencies.

Destin FL Real Estate Insurance