CP 00 10 is the ISO Building and Personal Property Coverage Form, the standard form that insures a commercial building and its contents against direct physical loss or damage at the premises described in the declarations. It is the most commonly used commercial property coverage form in the country, and it organizes everything it protects into three separate coverage categories, each with its own limit of insurance.
If your commercial property policy covers a building, the equipment inside it, or customer property in your care, CP 00 10 is almost certainly the form doing that work. This page explains the three coverage categories, the property the form deliberately leaves out, and why the form covers nothing at all until a causes of loss form is attached to it.
What does CP 00 10 cover?
The insuring agreement pays for direct physical loss of or damage to covered property at the premises described in the declarations, caused by a covered cause of loss. Four things must all be true for a claim to pay: there is direct physical damage, the damaged item is covered property, the property is at the described premises, and the cause is one the attached causes of loss form covers. The form then splits covered property into three categories, and you buy a limit for each one you need:
| Coverage item | What it includes | Typical example |
|---|---|---|
| Building | The described structure, completed additions, fixtures, permanently installed machinery and equipment, and property used to maintain the premises | The building itself, a permanently installed generator, the HVAC system |
| Your business personal property | Furniture, machinery and equipment, stock, tenant improvements and betterments, and leased property you must insure by contract | Shop equipment, inventory, the countertops a tenant installed |
| Personal property of others | Property of other people in your care, custody, or control at the described premises | A customer's machine in your shop for repair |
The split matters at claim time and at rating time. Building coverage generally carries a cheaper rate than business personal property, so items that qualify as building, like permanently installed equipment, should be counted in the building limit. Personal property of others is a distinct item, and if you hold customer property without buying that coverage, a fire that destroys it leaves you explaining the gap to your customers. Coverage for others' property here is direct damage only, so a customer's loss-of-use claim needs a different form.
Why does CP 00 10 need a causes of loss form?
CP 00 10 identifies the subject of insurance, but it never lists a single peril. A commercial property policy must attach a causes of loss form, and that separate form decides whether the loss event itself is covered. The basic form CP 10 10 and broad form CP 10 20 cover named perils only, while the special form CP 10 30 covers everything not excluded.
The coverage form provides the same property coverages regardless of which causes of loss form you pick, so the pairing decision is where the real breadth of your policy gets set. A policy with generous limits on CP 00 10 but only the basic causes of loss form still leaves theft and water damage uncovered.
What property does CP 00 10 not cover?
The form lists seventeen categories of property not covered, and the reasons follow a pattern. Some property belongs on specialized policies, like money and securities, autos held for sale, and most vehicles licensed for road use. Some is barely exposed to loss, like foundations below the lowest basement floor, underground pipes, and land. Some is too exposed, like most outdoor fences, antennas, and crops.
Electronic data gets only a small additional coverage rather than full treatment, and the cost to restore information on valuable papers and records is likewise limited to a modest coverage extension.
Location rules trip up more insureds than the exclusion list does. Business personal property is covered in or on the described building, or in the open or in a vehicle within 100 feet of the building or premises, whichever distance is greater. New locations get limited automatic coverage through a coverage extension, but the safe habit is telling your broker before property moves, not after. Builders working away from the premises should compare this form against a builders risk policy, which our builders risk insurance guide covers in depth.
How do you set the form up correctly?
Most CP 00 10 claim disputes trace back to decisions made at placement, not at the loss. Work through these checks with your broker before binding:
- Sort property into the right coverage item: decide with your broker whether gray-area items like bolted-down machinery count as building or business personal property, and document the intent so the cheaper building rate applies where it should.
- Buy limits that satisfy coinsurance: the limit for each item must meet the coinsurance percentage on the declarations at the time of loss, or a penalty shrinks every partial claim payment.
- Add personal property of others if you hold it: repair shops, warehouses, and consignment sellers need this third coverage item, because your own business personal property limit does not respond to customer property.
- Pair the form with the right causes of loss form: confirm the declarations show the special form CP 10 30 unless there is a deliberate reason to accept named perils only.
Where can you see the actual form?
Menlo does not host ISO forms because they are copyrighted by Insurance Services Office, Inc. You can read the real text through your own policy, which attaches every form issued on it, or by asking your broker for the specimen your carrier files. Regulator-approved filings are also publicly viewable through SERFF Filing Access, the state filing system, though the forms there remain copyrighted and are for reading, not copying.
Frequently asked questions
What is the difference between building and business personal property under CP 00 10?
Building means the described structure plus completed additions, fixtures, and permanently installed machinery and equipment. Business personal property is everything movable that you own and use in the business, such as furniture, equipment that is not permanently installed, and stock. The distinction matters because each carries its own limit and rate.
Does CP 00 10 cover lost income while my business is closed?
No. CP 00 10 pays only for direct physical loss or damage to covered property. Income you lose during the shutdown and the extra costs of operating from a temporary location belong to the Business Income (and Extra Expense) Coverage Form CP 00 30, which is a separate purchase. Our guide to commercial property insurance walks through how the pieces fit together.
Does CP 00 10 cover flood or earthquake?
Not by default. The perils come from the attached causes of loss form, and even the special form CP 10 30 excludes flood and earth movement. Those exposures need separate policies or endorsements, so ask your broker to address them explicitly rather than assuming the property form responds.
Is a tenant's build-out covered under CP 00 10?
Yes, as improvements and betterments within your business personal property coverage. The form covers your use interest as a tenant in fixtures, alterations, and additions you paid for but cannot legally remove. The value should be included when you set your business personal property limit, or scheduled separately so the building rate applies.
This guide is for educational purposes and summarizes standard ISO policy language in Menlo's own words. Form numbers and titles are cited for identification only, and Menlo Insurance Services is not affiliated with Insurance Services Office, Inc. Your policy's specific terms, conditions, and endorsements control. Talk to a licensed broker about your actual exposures.