Temporary Storage Location

According to the 2017 editions of Insurance Services Office, Inc. (ISO), builders risk and installation coverage forms, "a location where property that is to become part of the construction project described in the declarations is stored while waiting to be delivered to a job site." Simple as that seems, the use of a defined term consistently expresses the nature and intent of coverage over multiple coverage forms and endorsements, reducing the possibility for ambiguity arising from the use of different phrases addressing the exposure.

The American Association of Insurance Services (AAIS) builders risk forms include a supplemental "temporary storage locations" coverage. It applies to "materials and supplies that will become a permanent part of a covered building or structure," plus certain other covered property "while temporarily in storage at a location that is not described on the schedule of coverages." However, this coverage is subject to a relatively low specified limit. Further, the language of the provision specifies that it does not apply to property that "has not been specifically allocated to or otherwise identified with a covered building or structure." In other words, under the AAIS approach, temporary storage coverage will not act as commercial property coverage for a fire loss to unallocated drywall at a warehouse.

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