Roundhill Express - Inspection Criteria

We require the insured, at their expense, to provide a satisfactory interior/exterior inspection within 30 days of binding an account and a satisfactory exterior inspection in connection with the renewal of the account every third year thereafter. The insured can obtain these inspections at their expense from any qualified inspection firm or they can obtain the inspections from Roundhill Express for a non-refundable charge of $125 for the interior/exterior inspection and $35 for the exterior inspection required in connection with the renewal of the account every third year thereafter.

If the insured elects to have the inspection done by Roundhill, the inspection charge will be added to the invoice at binding and will be paid out of the first payment made on the policy. The inspection charge is non-refundable in the event the policy is cancelled by either the insured or the insurance company.

If the insured elects to have the inspection done by a third party inspection firm, the inspection report must include sufficient photographs to allow for review of the items listed below. Upon receipt of the satisfactory inspection, an authorization code will be sent to the broker permitting them to bind coverage on the approved risk location.

The third party inspections may be reinspected and audited by Roundhill Express but there will be no charge to the insured for any such reinspection.

The inspections must permit underwriting review of the following areas; the presence of any of the following conditions at the insured premises will result in an unsatisfactory inspection for underwriting reasons:

• Over fusing or improper fusing
• Exposed wiring and missing live meter units
• Underground oil tank leak
• Lack of, or improper, heating system - leading to makeshift heating
• Missing/damaged steps, handrails, landings that are likely to lead to injury
• Collapsed/damaged ceiling or walls likely to lead to injury
• Significant presence of mold
• Significant uneven/damaged flooring that is likely to lead to injury
• Severely damaged/cracked sidewalk that is likely to cause trip and fall
• Deteriorating roof to the extent that it would definitely cause water leaks
• Missing/damaged downspouts and/or gutters that definitely would cause icy conditions on pathways and stairs
• Damaged/loose foundation that is likely to cause structural failure
• Weak/poor structural condition that is likely to cause structural failure
• Damaged pipes resulting in active water leak
• Sewage in basement
• Standing water in basement
• Boarded up windows and doors
• Gut renovations
• Building is set to be demolished
• Inspection is unproductive (no appointment, no show, no access to utilities)

Agreed Value Coverage

• The ISO Property Form used by Roundhill Express provides for replacement cost coverage so long as the building limit is not less than 80% of the replacement cost of the structure at the time of any loss. If the building limit is LESS than 80% of the replacement cost of the structure at the time of any loss, then that loss will be adjusted on the basis of Actual Cash Value AND the co-insurance provision of the policy will be applied. The co-insurance provision of the policy will not apply IF the building limit is NOT less than 80% of the replacement cost of the structure at the time of any loss OR if the insured elects for Agreed Value coverage.
• Roundhill’s current minimum Agreed Value Construction Rate is $300 per square foot.
• If Agreed Value Coverage has been selected, the Roundhill minimum Agreed Value Construction Rate in effect at the time of renewal will be applied to the building limit.

Cooking Exposures: - LIMITED COVERAGE

• We cannot insure any building with open flame cooking in the mercantile space. Open flame cooking is anything with visible flames (stoves tops, barbecues, woks, etc.).
• If your insured has a cooking exposure with NO open flame, then we can insure the risk and, effective January 1, 2015, there will be NO ADDITIONAL premium charge for the cooking exposure. However, we offer limited coverage so it is important to make sure that your insured is a named insured on the mercantile tenant’s insurance policy. Set forth below is some of our restrictive language: “This Policy does not provide coverage for any damage arising out of a Mercantile Tenant's cooking or restaurant operations, which includes refrigeration, unless the Tenant at the time of the loss or damage has in place a Policy of Liability insurance with limits equal to this one, or sufficient to cover the entire loss, that names you as an additional insured, and which provides primary coverage for loss or damage to your property. This Policy will be excess of any such policy obtained by a Mercantile Tenant.”
• The risk exposure from the Mercantile Tenant’s cooking or restaurant exposure is only covered by the Tenant’s insurance policy – NOT by our policy. This is why we are able to NOT charge any additional premium for the cooking exposure.

Mechanical Breakdown

• What is your exposure to mechanical breakdown and what size limit should you purchase?
• Form CP 10 30 (Causes of Loss – Special Form) specifically excludes coverage for loss or damage caused by or resulting from mechanical breakdown in Paragraph B, 2, (d) (6). However the last portion of Paragraph B, 2 also states that if the excluded cause of loss (in this instance, mechanical breakdown) results in a specified cause of loss, “we will pay for the loss or damage caused by that ‘specified cause of loss ’ ”. Paragraph F of the CP 10 30 defines specified causes of loss and states that it “means the following: Fire, …”
• What does this mean?
• For all practical purposes, this means that if you have a mechanical breakdown in your building and it causes a fire, then the fire damage is covered but the repairs to the broken equipment are not covered.
• What am I covering?
• This means you should purchase a mechanical breakdown limit sufficient to cover the most valuable equipment in your building – in general that is your furnace. Generally, a $10,000 limit should be enough to replace the furnace in a small building.
• Mechanical Breakdown cover does not include a boiler inspection. The insured must make their own arrangements for a boiler inspection (see the Yellow Pages under Boiler Inspection)

Ordinance Or Law

• What is your exposure to Ordinance Or Law and what size limit should you purchase?
• Form CP 10 30 (Causes of Loss – Special Form) specifically excludes coverage for loss or damage caused by or resulting from the enforcement of any ordinance or law in Paragraph 1 (a). This exclusion means, among other things, you are not covered for (2) the increased costs incurred to comply with an ordinance or law in the course of construction or repairs following a physical loss to the property.
• Most commonly, this exclusion leaves the insured exposed for increased costs necessitated by changes in the building code. For example, a frame house frequently cannot be rebuilt as frame due to building codes requiring new construction to be joisted masonry. We suggest purchasing Ordinance Or Law in an amount up to 10% of the building value.

Water and Sewer Back-up

• Form CP 10 30 (Causes of Loss – Special Form) specifically excludes coverage for loss or damage caused by or resulting from water that backs up or overflows from a sewer, drain or sump in Paragraph B, 1, (g) (3).
• The Property Enhancement Endorsement we offer includes a $5,000 limit to cover this excluded cause of loss with a separate $500 deductible. This limit is generally enough to cover the cost of cleaning an unfinished basement after such an incident. If you have a finished basement and/or have a higher exposure, then you should consider having a licensed plumber install a sewer back-flow valve. This will save money in insurance costs and protect your basement at the same time. http://stormrecovery.ny.gov/sites/all/themes/nysandyredesign/files/SMART_Rebuild_FS14.pdf

Terrorism Coverage

• Under the Terrorism Risk Insurance Program Reauthorization Act, as amended, you have a right to purchase insurance coverage for losses resulting from an act of terrorism, as defined in Section 102(1) of the Act.
• See the section of your quote titled TRIA Premium. If you choose to accept this offer of coverage by your selection statement, your premium will include that amount as shown in your quote.

Contents Coverage

• The contents limit, when purchased, provides coverage for loss or damage from a covered cause of loss to contents in the building owned by the named insured. It does not provide coverage for anyone else’s contents. Generally, the insured’s contents will include appliances such as stoves and refrigerators provided with rental units. If the insured lives within the building, it could also include personal possessions of the insured in the apartment occupied by the insured. If the named insured also runs a business in the mercantile space under the named insured’s name, then it could include the mercantile contents.
• Be careful. If the named insured runs a business in the mercantile space under any different name (such as an LLC), then the mercantile contents belong to a different legal entity and would not be covered as contents of the named insured.
• We offer contents coverage limits up to 20% of the insured value of the building.

Business Interruption (Loss of Rents)

• The business interruption (loss of rents) limit, when purchased, provides coverage for rental income not received as a result of loss or damage from a covered cause of loss. If the insured occupies a portion of the building personally, then it would also include the fair market value of the space he cannot use (loss of use). The coverage is only to the extent of the limit purchased .
• We offer business interruption limits up to 20% of the insured value of the building.

Garage

• If there is a free standing garage on the property, it can be insured for up to $75,000 under the garage limit. If the garage is part of the main building, it is not necessary to purchase a separate limit. Just make sure the value of the garage is included in the building limit.

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