What is the purpose of the Additional Property Not Covered CP 14 20?

The purpose of the Additional Property Not Covered CP 14 20 is to explicitly list certain types of property that will not be covered under a commercial property insurance policy. This form is used to identify and specify items or categories of property that the insurer will exclude from coverage, thus clarifying both the insured and insurer's understanding of what is not included in the policy.

This is crucial as it allows for transparency and helps businesses to understand the limitations of their coverage. It can include specific types of property such as certain types of computers or unique equipment that might require different handling, or it may specify locations or situations where coverage does not apply.

In contrast to this purpose, increasing coverage limits would imply expanding the amount of insured value for covered property, which is not aligned with the intent of the CP 14 20. Excluding all covered property would negate the effectiveness of the insurance altogether, as it would mean the policy would not provide any protection. Providing extended coverage options would typically involve adding additional types of coverage, rather than specifying exclusions, which is contrary to what the CP 14 20 form accomplishes.