The work and materials clause is a provision commonly found in property insurance policies. It allows the insured party to utilize standard types of work and materials necessary for their business operations. This clause clarifies what is considered typical, helping to prevent the policy from being voided later due to claims of "increased hazard" under the Standard Fire policy.
This clause is primarily used in the context of property insurance law. It plays a significant role in civil law, particularly in disputes related to insurance claims. Users can often manage their insurance needs and understand their rights by utilizing legal templates from US Legal Forms, which are drafted by experienced attorneys.
Here are a couple of examples of abatement:
For instance, a bakery insured under a property insurance policy may have a work and materials clause that allows them to use standard kitchen equipment and supplies without risking their coverage. If they were to install a large industrial oven that significantly increases the risk of fire, the insurer could invoke the "increased hazard" provision if the clause did not explicitly allow for such changes.
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Typically has broader definitions of typical materials. |
| Texas | May require additional disclosures regarding increased hazards. |
| New York | Often includes specific exclusions related to commercial properties. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Increased hazard clause | A provision that allows insurers to void coverage if risks increase. | This clause clarifies what constitutes typical work, while the increased hazard clause focuses on risk assessment. |
| Standard Fire policy | A basic insurance policy covering fire damage. | The work and materials clause is specific to the types of work allowed under property insurance, not just fire damage. |
If you find that the work and materials clause applies to your insurance policy, review the specific terms outlined in your policy. Ensure that any changes to your business operations align with what is permitted under this clause. For assistance, consider using US Legal Forms' templates to create or modify your insurance documents. If you have complex questions, consulting a legal professional is advisable.
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It is a provision in property insurance policies that specifies the types of work and materials a business can use without risking coverage.