In addition to buildings, what other types of property are insured under building coverage in the Building and Personal Property (BPP) coverage form and similar forms?
Completed additions to covered buildings
Fixtures (including outdoor fixtures)
Permanently installed machinery and equipment
Personal property owned by the insured and used to maintain or service the building or its premises (i.e. fire extinguishing equipment or outdoor furniture)
Describe the coverage provided by the BPP and similar coverage forms for business personal property.
Furniture, machinery, and equipment that are not part of the building
Stock, including merchandise, raw materials, and unfinished/finished goods
Coverage generally applies only when the property is located in or on the described building or in the open or a vehicle withing 100 feel of the premises.
Describe the purpose of coverage for personal property of others in the BPP and similar coverage forms.
It is designed to protect the insured agains loss or damage to the personal property of others while such property is in the custody of the insured. This coverage is important for businesses, referred to as bailees, that usually have customer's property in their custody (i.e. laundries, dry cleaners, and appliance repair shops)
Explain how coverage applies to personal property of others in the BPP and similar coverage forms.
The BPP covers the personal property of others only while the property is in the insured's care, custody, or control and in or on the building described in the policy declarations or within 100 feet of the described premises. Coverage applies regardless of whether the insured is legally responsible for the damage.
How can commercial organizations provide coverage for personal property when it is in transport away from the insured premises?
Inland marine insurance policies provide coverage for property in domestic transit; property situated at the premises of others; and "floating property," such as tools and equipment that travel with an insured from job-site to job-site. Some policies can also provide coverage for property in transit.
Compare the three covered causes of loss forms available in the BPP and similar policies with respect to cost and level of coverage provided.
Basic Form Coverage - Lowest-cost version, provides coverage for approximately 12 named perils.
Broad Form coverage - Higher-cost version, adds several perils the basic coverage.
Special Form coverage - Highest-cost version, covers all causes of loss that are not specifically excluded.