designation that coverage is to apply on a replacement-cost basis if, in fact, that basis is desired. When it comes to determining the nature of problems over insurance of business personal property of others, the issues can be categorized as follows: (1) Determining whether the property, in fact, is personal property as opposed to real property; (2) Failure of the named insured to designate in the policy the desire to cover business personal property of others; (3) Keeping the covered property within the maximum distance permitted from the described premises in a vehicle or in the open; (4) Understanding what is encompassed by the coverage of property in the open. If the proper precautions are not taken, the disputes over coverage can be complex and very costly. Mr. Malecki is a principal of Malecki Deimling Nielander & Associates, LLC, an insurance and risk management firm. He began his career over 50 years ago and has held the titles of insurance underwriter, broker, insurance company claims consultant, archivist, historian and teacher. Donald S. Malecki, CPCU ____________________ 1 It is important to determine at the outset if the property is still considered personal property. The reason is that personal property that becomes affixed to realty may no longer qualify as personal property, such as air conditioning units. 2 When a co-insurance clause applies, the insurance limit has to be at least 80 percent, 90 percent or 100 percent of the replacement cost or actual cash value (replacement cost less depreciation) at the time of loss. If the amount is deficient, the insured having the insurable interest is considered a co-insured and must assume the deficient amount. 3 This phrase “direct physical loss or damage” also is ambiguous for a number of reasons and will likely have to be replaced in the future as well. CORPORATE OFFICE 126 Business Park Drive Utica, New York 13502 800.382.2468 Outside U.S. (315) 797.3035 FAX: (315) 272.2054 Editor@AdjustingToday.com Copyright © 2014 Adjusters International, Inc. Adjusters International ® and the AI logo are registered trademarks of Adjusters International, Inc. Follow Adjusting Today on Facebook & Twitter: Facebook.com/AdjustersInternational Twitter.com/AdjustingToday ADJUSTING TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases. ABOUT THE AUTHOR ADJUSTINGTODAY Adjust ingToday. com View our entire catalog of back issues, download PDF versions, subscribe and contact the editor. WEB ADDRESSES AdjustersInternational.com AdjustingToday.com PUBLISHER Ronald A. Cuccaro, SPPA EDITOR Sheila E. Salvatore Adjusting Today Basis for Institutes CE Course The Institutes, the leader in providing knowledge solutions for risk management and the property casualty insurance industry, offers a continuing education course based on technical information compiled from seven issues of Adjusting Today. The course — “Valuing a Property Insurance Claim”— includes seven modules and is approved for credit by insurance departments in most states. It is offered to property insurance producers, adjusters or both, depending on the state, for up to three continuing education credit hours. More information is available at CEU.com. AT14 3044
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