Business Newly Acquired Property

One of the extensions of coverage found in the commercial property policy is coverage for newly-acquired or constructed properties. However, there are some restrictions.

Newly-Acquired Property
If you buy a building at another location, and the building's use is similar as the described building al ready on your policy, then it has this automatic temporary coverage.  The policy typically provides up to $250.000 coverage per covered building, even if the existing described building already on the policy is insured for less.

Constructed Property
If you build a new building on your described premises, this coverage extension covers that building temporarily. You need to contact your agent. as there are a number of considerations that make it advisable to carry special construction coverage.

The second part of this coverage extension allows up to $100,000 coverage, regardless of your stated personal property limit in your policy, for business personal property at a newly-acquired location.  Older policy forms, some of which are still being used by certain companies, limited the coverage to 10 percent of the described
personal property limit or $100,000.  This extension of coverage is good for 30 days. The 3-day limit starts when you acquire or begin to build a new property. This
coverage extension period ends after 30 days; at policy expiration; or when you report the values to your insurer.