the municipal secretary desktop reference manual - Southwestern ...

H. PROPERTY INSURANCE
1. Protects against fire, lightning, debris removal, water/smoke damage due to fire, and
other damages to property unless specifically listed as excluded
2. Specific policy format -- covers individual locations
3. Schedule policy format -- covers two or more locations with specific limits for each
4. Blanket policy format -- covers two or more locations with a single dollar amount equal
to the total value of all locations (on assumption that all won't be lost at one time)
5. Deductibles can be per item or total occurrence
6. Options:
a. Extra expense -- pays to operate out of another location due to covered loss.
b. Valuable papers -- covers cost of research to reconstruct lost papers (premium cut
50% if duplicate kept at another location -- if this is the case, then why have this
coverage?)
c. Accounts receivable -- pays limited costs to reconstruct account records or dollar
amount lost due to inability to collect revenue
d. Inflation guard -- automatic increase of limits and premium to cover inflation
e. Crime, theft, inside and outside coverage (while in transit to the bank)
f. EDP covers losses associated with electronic data processing equipment
g. Business interruption -- pays for continuing business costs, including payroll, while
normal operations are interrupted due to a covered loss.
h. VMM -- vandalism and malicious mischief coverage
7. Normal Exclusions
a. Flood
b. Earthquake
c. Radiation
d. Steam and boiler explosion
XIV-13