Commercial property insurance helps protect your owned or rented building, plus the tools and equipment you use to operate your business. It covers losses from many sources, such as:
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Fire
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Burglary
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Theft
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Wind
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Lightning
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This coverage indemnifies damage to buildings and business personal property.
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Coverage varies if a business owns versus leases its premises.
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Excluded items include cash, plants, and vehicles unless specifically insured.
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Policyholders can add coverage tailored to specific business needs.
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Additional premiums may be required for losses of electronic data.
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KEY TAKEAWAYS
Understanding Business Property
Building and personal property coverage form is insurance that covers physical damage to commercial property. If the building in which a business operates is owned, the policy will likely cover both the building and its personal property, but if the building is rented, it may only cover the personal property.
Policyholders should inspect their documents to make sure everything that should be covered is covered and purchase additional coverage if needed. Building coverage may insure items that are permanently attached to the building itself, while personal property coverage includes property that is not part of the building.
Building and personal property coverage form excludes land, water, plants, roadways, crops, shrubs, money, accounts, instruments, or trees.
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In-Depth Guide to Building and Personal Property Coverage
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. It will also exclude losses for certain types of personal property, including deeds, instruments, money, accounts, bills, and securities. Vehicles, watercraft, and aircraft—unless specifically named as insured property—are also excluded.
Covered losses are considered items that are attached to a building, but loss due to wear and tear or dishonest employees aren’t considered to be covered. An insurer may offer additional coverage beyond the basic criteria.
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www.investopedia.com/terms/b/building-and-property-coverage-form.asp
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