Which condition specifies that bailee coverage is excluded?

The No Benefit to Bailee Condition is a key provision in property insurance policies that delineates the limitations of coverage provided to parties that hold an insured’s property, known as bailees. This condition states that the insurance coverage does not extend to provide benefits to a bailee, which is a person or entity that temporarily possesses someone else's property. The rationale behind this provision is that bailees are often held responsible for the property in their care, and therefore, it is their liability insurance that should respond in the event of loss or damage, rather than the property owner's insurance.

This condition helps clarify coverage situations where the property is in the hands of third parties who are not the owners, preventing situations where bailees could receive undue benefit from the property owner's insurance policy. It is meant to ensure that the responsibility for potential losses remains appropriately placed with those who are managing or caring for the property, rather than transferring that risk to the property owner’s insurance.

The other options do not pertain directly to the exclusion of coverage for bailees. For instance, the Mortgage or Loss Payable Condition relates to how the interests of lenders or loss payees are handled in relation to the insured property. The Policy Period and Territory defines the timeframe and geographical limits within which coverage