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Property in the Open: Property that Stays Put Outside
As members update their property schedules, they should consider that they have property that is easily overlooked because it is outside and does not move around. This is classified as property in the open.
MCIT coverage pays for direct physical loss to scheduled property in the open caused by a covered loss that typically includes damage caused by wind, lightning and weight of ice and snow.
Examples of property in the open include:
- Statues and monuments when combined values exceed $10,000 per occurrence (see “Fine Arts Endorsement” below for more options)
- Bridges not used for railroad or public vehicular traffic when values exceed $50,000 per occurrence, subject to underwriting review
- Fences
- Radio/television antennas
- Radio towers
- Satellite dishes
- Signs not attached to buildings
- Free-standing lighting fixtures (e.g., parking lot lighting)
- Fuel pumps
- Flag poles
- Picnic tables
- Playground equipment
- Repeaters
- Free-standing solar panels
Fine Arts Endorsement
Statues and monuments may contain elements considered objects of fine art. MCIT’s replacement cost coverage does not include an item’s rare, antique, historic or collector value. The coverage limit is the actual cost to repair or replace with comparable kind and quality at the time and place of loss or damage. As respects property in the open, objects of fine art are generally unique statuary or sculptures.
Members may arrange specialized coverage for the increased value due to an item’s rare, antique, historic or collector value via a fine arts endorsement. The endorsement is on a stated-value basis and is subject to underwriting approval. Items must be scheduled, and an additional contribution applies. The stated limit of coverage is determined by a qualified appraisal.
Application of Property in the Open Coverage
Coverage is available for items listed on the member’s property schedule. The items need to be individually listed as property in the open and include their replacement cost values to ensure maximum protection in the event of a loss. The member’s property deductible applies to any covered loss on an occurrence basis.
Members should regularly obtain estimates to replace each property in the open item, including labor and materials. Then members should update replacement costs for the items, as applies, on the member’s property schedule.
When a loss occurs to property in the open that is not scheduled, the MCIT Coverage Document provides limited automatic coverage for:
- Statues and monuments, up to $10,000 per occurrence (again, see “Fine Arts Endorsement” above for more)
- Bridges not used for railroad or public vehicular traffic, up to $50,000 per occurrence
The MCIT Coverage Document also includes limited automatic coverage for:
- Fences
- Radio/television antennas
- Satellite dishes
- Signs not attached to buildings
- Shrubs, plants and trees planted in the ground (limit of $500 per tree, plant or shrub)
MCIT provides a limit (exclusive of shrubs, plants and trees planted in the ground) of $5,000 per occurrence regardless of the types and number of items lost or damaged when caused by fire, explosion, lightning, riot, civil commotion or aircraft.
Review, Update Property Schedule
Members should regularly identify their property in the open items and verify that they are scheduled. For example, key employees should physically verify that all property in the open items are listed on the schedule for the appropriate replacement cost. A business decision should be made as to whether particular property in the open items should be scheduled, giving consideration to value, deductible, etc.
To add property in the open to a schedule, the member should submit a coverage change request through the MCIT member portal.
Members with questions regarding this topic are encouraged to contact their MCIT risk management consultant toll-free at 1.866.547.6516.
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