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HCPCS Level II modifier that may be used with CPT or HCPCS Level II codes indicating the Medicare beneficiary is undecided on purchasing or renting the item.

Buffer Layer

A stratum of cover between the upper limit of the primary insurer and the attachment point of the excess or umbrella insurer. The ‘buffer layer’ fills the gap. Example: total policy limit of £10 million is arranged as follows: primary layer = £1 million; buffer layer is £1 million in excess of £1 million and the excess/umbrella layer is £8 million in excess of £2 million. In reinsurance terms the buffer layer sits between the working cover/layer and the catastrophe layer. It absorbs relatively large losses that do not occur annually, but do so with some regularity.
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The buffer layer is the layer of insurance that resides between the primary layer and the excess layer. For example, suppose Marcia wants to purchase a business umbrella liability, but she is required to carry underlying comprehensive general liability limits of at least $500,000. Marcia has only $300,000 liability coverage and her current insurance company will not increase the primary coverage. Marcia either faces a $200,000 gap in coverage or purchases a $200,000 “buffer.”

Builder’s risks

Policy covering a ship during construction, including launching and trial trips, until delivery to her owners. Construction of small commercial craft, e.g. fishing vessels, work boats, etc., can be insured under an open cover.

Builders Risk Insurance

Builders risk insurance is a form of property insurance designed to cover buildings while under construction or undergoing major renovation. Generally, the building is not occupied during the renovation.Coverage can be written on a named peril or all-risk basis and includes the structure itself and materials the job site. Materials not intended to become a permanent part of the structure (such as scaffolding) and temporary structures (such as construction trailers) are commonly not covered.The amount of coverage is generally the full replacement cost of the completed structure. Premiums are reduced to reflect the gradual increase in value. Another method is the builders risk reporting form where the contractor reports the value of the construction each month and pays accordingly. Certain

“soft costs” can also be added by endorsement. Soft costs include a loss of revenue because of a delayed business opening, increased expenses to expedite repair/renovation, and failure of the contractor to comply with construction codes.

Builders risk policies vary widely in wording and form. Whether an insured is considering a builders risk when building a home or a major commercial construction project, it is important to consult an insurance professional familiar with this type of insurance.

Burglary

Burglary and theft insurance can be bought as a standalone policy but is usually combined with other forms of insurance such as the homeowners or business multiperil policy. Burglary is the act of breaking into a building or automobile while it is unoccupied. For coverage to apply there must be visible signs of forced entry.

Theft

Theft is any act of stealing and does not require signs of forced entry. There does have to be a presumption that the property was stolen, however.

Robbery is the act of taking someone’s property against his or her will while the individual is present.

Robbery

A broader from of this coverage includes mysterious disappearance. If this coverage is added, there is no presumption of theft needed. Coverage is provided if the was there once and is not there now. Below are

examples of each:

If someone breaks into an insured’s unoccupied home using a crowbar, doing substantial damage to the exterior door, and takes a diamond ring, the ring is covered under the burglary section of the policy. If the same thief, coming through an unlocked door nto the insured’s unoccupied home and takes the ring

after ransacking the room where the ring was, the coverage falls under the theft definition.

The same ring, stolen by the thief who enters the nome while the insured is present and takes the ring with a threat of violence, is covered under the robbery ection.

Mysterious disappearance is much broader and pays the ring if the insured had it at the time it was inured and cannot find it. It may have been lost or stolen.

Builders risk policy

A property insurance policy that is designed to cover property in the course of construction. There is no single standard builders risk form; most builders risk policies are written on inland marine (rather than commercial property) forms. Coverage is usually written on an all risks basis and typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk insurance can be written on either a completed value or a reporting form basis; in either case, the estimated completed value of the project is used as the limit of insurance.
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A property insurance policy that is designed to cover property in the course of construction. There is no single standard builders risk form most builders risk policies are written on inland marine (rather than commercial property) forms. Coverage is usually written on an all risks basis and typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk insurance can be written on either a completed value or a reporting form basis in either case, the estimated completed value of the project is used as the limit of insurance.