Building And Personal Property Coverage Form

Building and personal property coverage form is a type of commercial insurance policy designed to cover direct physical damage or loss to commercial property and its contents. This type of insurance defines specifically what property is covered (e.g., building, fixtures, personal property), what property is not covered (e.g., cash, animals, contraband), what types of losses are covered (e.g., fire, vandalism), additional coverages (e.g., debris removal), exclusions and limitations, insurance limits and deductibles.

It is important for policyholders to inspect their coverages when they take out a building and personal property coverage form policy to make sure everything that should be covered is covered. If the policy is inadequate, it's usually possible to purchase additional coverage.

Building and personal property coverage form excludes claims for loss or damage to land, water, bridges, roadways, and underground pipes or drains.  The policy also excludes any loss to plants, crops, trees and shrubs. The policy also excludes loss to certain types of personal property, including deeds, instruments, money, accounts, bills, and securities. The policy also excludes loss to vehicles, watercraft, and aircraft unless specifically named as insured property.

Coverages a policyholder should look for on a building and personal property coverage form depends on the nature of their needs and financial connections to the commercial property in question. Commercial property insurance policies cover two basic types of property: buildings (also called real property) and business personal property (BPP). If someone owns the building in which their business operates, a commercial policy should cover both the building and the BPP it contains. If renting or leasing, the proper commercial property insurance policy will cover only BPP.

Building coverage normally includes machines and equipment that are permanently installed, such as a furnace, a boiler, and air conditioning equipment. Fixtures, or property that is permanently attached to the building such as a built-in bookcase or cabinet, are also covered. Floor coverings, appliances (like refrigerators and dishwashers), fire extinguishers, and outdoor furniture are usually considered BPP. BPP consists of owned property that is not part of a building and is not otherwise excluded. It includes office furniture, machines and equipment (if not attached to the building), raw materials, goods-in-process and finished goods. Improvements made to a leased building are covered if you paid for them and cannot be legally removed.

The limits of building and personal property form insurance apply separately to each occurrence, except for a small number of additional coverages specified in the policy. BPP coverage is not subject to an aggregate limit that caps a recoverable amount under that coverage during a policy year.