Building and Personal Property Being able to integrate both the Commercial Property Package (CPP) and the Business Owners Policy (BOP), two different ways of insuring different companies, Building and Personal Property coverage is one of the most popular.
It covers buildings, the policyholder’s business personal property and the personal property of others who are on its business premises.
The insured may select coverage for one or more of these categories. Coverage is only provided for coverage that has an insurance limit indicated on the statements.
What is covered by Building Insurance?
In addition to the building itself, this coverage includes:
- Completed renovations
- Luminaires, including external ones
- Permanently installed machinery and equipment
- Personal possessions used for facility maintenance or service, such as fire extinguishers
- Furniture for outdoor areas
- Floor coverings and some appliances
- If not already covered, renovations, alterations or repairs to the building, including materials, equipment, supplies and temporary structures within 100 feet of the premises
What is covered by Personal Property?
Company personal property is covered while in the building, outside or in a vehicle within 30 meters of the premises. Includes:
- Fixed installations such as light fixtures, permanent shelves and sanitary ware
- The value of labor, parts or services on the personal property of others
- If the insured is a tenant, the improvements and improvements added by the insured; and
- Leased goods, such as a printer or espresso machine.
What are the exclusions of this coverage?
As we said, there is coverage for everything you want to protect, but each coverage has a limitation. The following properties are excluded from coverage:
- Money, bills, food stamps, bills, bonds and related property
- Animals, unless shipped or held for sale
- cars for sale
- Bridges, roads, sidewalks, yards and other paved surfaces
- Smuggling (property being transported or traded illegally)
- Cost of excavations and other soil preparations
- building foundations
- Land, water, crops and lawns
- Retaining walls that are not part of a building before underground pipes
- Bulkheads, piles, piers, wharves and docks
- Property covered by another policy in which it is more specifically described
- Underground pipes, chimneys and drains
- The cost of replacing or restoring information contained in valuable paper or records, including those that exist as electronic data, unless otherwise provided for in coverage extensions
- Vehicles, including vessels and aircraft, licensed for use on public roads
- The following property outside the buildings, except as provided for in coverage extensions:
- Boards not attached to the building
- Trees, bushes and plants
Apart from illegality exclusions, all coverages can be added according to your business needs.
Other coverage that is already part of the policy
Some coverage is already automatically added to your policy when you choose building coverage. In addition to, of course, Building Insurance and Personal Property Coverage, you will also be reimbursed for other possible losses.
Property policies reimburse the insured for the costs and expenses associated with cleaning up and removing debris after a covered loss. This is considered additional coverage in commercial policies and does not increase the liability limit. An additional premium is charged for this coverage.
Preservation of property pays for the loss of property that has been removed from the insured location to avoid being affected by an insurance risk, however, coverage only applies if the loss occurs within 30 days of the property being been removed.
The Fire Department Service Fee pays up to $1,000 for a Fire Department Service Fee. This is paid in addition to the insurance limit; no deductibles apply.
Pollution cleaning and removal covers the costs of extracting pollutants from land or water at the insured’s premises if the pollution is caused by a covered loss cause.
Electronic data coverage is paid to replace or restore electronic data that has been destroyed or corrupted by a covered cause of loss.
There are still coverage extensions that go through specific conditions to be applied. Extensions apply to real estate situated in or on the building described in the declarations, outdoors or in a vehicle less than 100 feet from the described facilities. These coverage extensions provide additional insurance limits.
- Newly acquired or built property
- Personal property and property of third parties
- Valuable documents and records (apart from electronic data)
- Off-premises property
- Outdoor property – fences, antennas, satellite dishes, trees, plants and shrubs
- Independent trailers not owned by the insured (from a partner, for example)
The coverage options within a commercial insurance package are many and the possibilities endless. Commercial policies have varied and very specific combinations, adapting directly to your business, considering size, area of activity, number of employees, the type of merchandise you work with, how many partners you have, the type of relationship your company establishes with these partners, your customers, how they access your goods and services, etc.