Is your prospect’s vegetation covered? Does the business owner think it’s covered?

ISO’s Building and Personal Property Coverage Form (CP 00 10) provides very limited coverage for vegetation. Almost all proprietary carrier forms start with ISO, and also offer little coverage. In the ISO form, section A.2., plants are first mentioned in Property Not Covered. There are 2 exceptions:

1. “. . . “other than trees, shrubs or plants which are ‘stock’ or are part of a vegetated roof . . .”
For example, inventory at a nursery, or the roof of a sustainable green building.

2. Coverage Extension 5.e. Outdoor Property.

Unfortunately, the coverage extension  says “The most we will pay for loss or damage under this Extension is $1,000, but not more than $250 for any one tree, shrub or plant.” Even worse, this $1,000 limit is shared with fences and antennas. The final nail in the coffin is that only 5 perils are covered: Fire, Lightning, Explosion, Riot, Aircraft.

So how is vegetation to be covered?

ISO offers form CP 14 30, which removes Trees, Shrubs, and Plants from Property Not Covered. A limit is scheduled for each tree, shrub, plant, and for All Items. A Cause of Loss applies. Even Basic Form would improve on CP 00 10, adding Wind, Hail, Vehicle, Smoke, and Vandalism perils.

Additional premium applies, as limit and exposure are increased. The rate can be decreased by excluding vehicles.

Three weather exclusions apply, as the carrier is not taking responsibility for poor care of plants:
1. Dampness or dryness of atmosphere.
2. Changes in or extremes of temperature.
3. Rain, snow, ice or sleet.

Two notes on other weather conditions. First, Wind is not excluded, even though it is one of the most common perils to damage vegetation. However, if a Wind exclusion applies to the entire policy, it will also apply to this form.

Second, Flood is of course excluded from the entire ISO Property policy. If your prospect might be exposed to Flood, it is worth seeking coverage.