There are several parts available under a commercial property policy.
Building is a building or structure. It is also fixtures that are inside and/or outside, permanently installed machinery and equipment, and equipment that is used to service the building. Examples of building service equipment are refrigeration, cleaning and cooking equipment, but these are only examples and many other types of building servicing equipment are covered.
Business personal property is the furniture and fixtures, machinery and equipment, stock and other personal property when it is owned by the insured and is used in the business. Labor, materials or services that are furnished or arranged for by the insured on personal property of others, use interest of the insured as a tenant in improvements and betterments made to the premises, and leased personal property for which the insured is contractually responsible to provide coverage are also business personal property.
Personal property of others is personal property that is not owned by the named insured and is considered to be in the care, custody or control of the named insured. This type of personal property is not covered unless a limit is entered on the declarations or if the named insured is contractually obligated to insure it.
Improvements and betterments is the named insured’s use interest in improvements and betterments that were made to a building occupied but not owned by the insured and that must remain with the building even when the named insured moves out. This type of property can be listed as a separate item with its own limit on the declarations or it can be combined with business personal property within the business personal property limit. If the items are replaced by the insured, the amount paid is based on the business personal property valuation selection. However, if the items are replaced by anyone other than the insured but for the insured’s benefit, no payment is made. If the items are not replaced the loss settlement is based on the actual cash value but reduced by the percentage of the lease contract that has passed.
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