Glossary

Newly acquired property

A property policy extension that automatically covers buildings and contents you buy or build after the policy starts, for a short time and up to a set limit.

Also called: newly acquired or constructed property, newly acquired locations, automatic coverage for new property

Most commercial property policies list the buildings and locations they cover. The newly acquired property extension gives a short window of automatic protection for what you add midterm. In the ISO CP 00 10 building and personal property form (10 12 edition), it has two parts: new buildings you construct at a described premises or acquire at another location, up to $250,000 for each building, and business personal property at newly acquired locations, up to $100,000 at each building. It applies only if the policy carries an 80% or higher coinsurance percentage.

The window is 30 days. Coverage ends at the earliest of policy expiration, 30 days after you acquire the property or begin construction, or the date you report values to the insurer. The business income form, CP 00 30, offers a parallel extension for newly acquired locations: $100,000 for 30 days.

The limits are modest, and the clock starts at acquisition, not when you remember to call. Say you close on a $1.2 million warehouse (a hypothetical): the extension would pay a fraction of that, then lapse. A lender or landlord will want the location scheduled before closing. Tell your broker before you buy, provide values for a statement of values, and have the building added by endorsement. The guide on commercial property insurance explains how locations and limits are set, and coinsurance explains why the 80% condition matters.

Last reviewed October 10, 2026

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Related terms

Business income Property coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations. Statement of values A schedule listing each insured location with its building, contents and income values and construction details, used to rate and model a property program. Blanket limit A single property limit applied across several buildings, locations or types of property, so the insurer pays a loss at any one up to the total. Coinsurance A property policy condition requiring you to insure to a set percentage of value, or share the loss. (Health plans use the word for a cost share.) Insurable interest A real financial stake in the thing insured, such that you would lose money if it were damaged or a person died; without one a policy generally cannot pay.

Related guides

Commercial property insurance: what it covers and what it doesn't How the standard ISO commercial property policy works: covered property, causes of loss, built-in extensions and limits, valuation, and the gaps to close.

Related en español

Seguro de propiedad comercial: qué cubre y qué no Cómo funciona la póliza ISO estándar de propiedad comercial: bienes cubiertos, causas de pérdida, extensiones y sus límites, valuación y los huecos por cerrar.