Commercial Property Insurance

Parts of a commercial property policy 

First, building coverage is a building or structure. Also, it is fixtures that are inside or outside.  In addition, they can be permanently installed machinery and equipment that is used to service the building. Examples of building service equipment are refrigeration, cleaning and cooking equipment.  Clearly, these are only examples and  other types of building servicing equipment are covered.

Next, business personal property is the furniture, fixtures, machinery, equipment, stock and other personal property that it is owned by the insured.  Likewise, tenant  improvements or betterments made to the premises and property for which the insured is contractually responsible to provide coverage are also business personal property.

Also, commercial property insurance protects your assets in the event that they are stolen, damaged or destroyed in a fire or natural disaster. 

Next, 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. Also, 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.

In addition, improvements and betterments are the named insured’s changes that were made to a building occupied but not owned by the insured and that must remain with the building.  Additionally, 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. Also, 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.  In addition, 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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