AMIM 122 - Inland Marine Insurance - Chapter 6

Covers buildings and other structures while they are being built, as well as building materials and supplies that are intended to become part of the building or structure.

Covers property to be installed in a building or structure.

Temporary structure made of wood or steel, hold poured concrete in place until it becomes hard enough to safely support itself and any additional load that will be placed on it.

Temporary structure system of supports and platforms on which workers can stand while they are laying bricks, applying stucco, or doing other work on the building.

Temporary structure, made of wood, earth or other materials, that supports part of the permanent structure (such as a stone archway) until its made strong enough to support itself.

Testing of ordinary electrical, mechanical, pneumatic (movement of air), or hydrostatic (movement of liquids) components.

Testing of more hazardous components including steam boilers, electrical generating equipment, and manufacturing or processing equipment.

Expenses associated with construction in addition to the cost of materials and labor.

Can consist of 1) loss of rental income (if the insured planned to rent the building or part of it to others), or 2) loss of income resulting from the insured's inability to conduct other revenue-earning operations such as manufacturing, processing or merchandising.

Expense incurred other than sales revenue resulting from a loss i.e. rent paid for the substitute building (this would not be needed if the loss hadn't occurred).

Coverage designed to cover both types of business interruption losses including 1) reduction in net income; 2) additional expenses that the insured incurs in order to continue operations.

Several factors used to determine eligibility of a risk = Construction, Occupancy, Protections & External Exposure.

Construction Type: The exterior walls are wood or other combustible materials. Frame also includes construction that combines combustible materials with other materials such as brick veneer, stone veneer, metal siding or stucco.

Construction Type: The exterior walls are constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or similar materials, and floors and roof are combustible.

Construction Type: The exterior walls, the floor, and the roof are constructed of and supported by metal or other noncombustible materials.