Building and Personal Property Coverage Form
Domain 2 - Building and Personal Property Coverage Form (CP 00 10)
This domain tests the three coverages, the built-in additional coverages and extensions, their default limits, and the loss conditions that decide how much is paid.
Coverages A, B, and C
Coverage A - Building covers the described building and structures, completed additions, fixtures, permanently installed machinery and equipment, outdoor fixtures, and personal property used to service the building (fire pumps, HVAC). It also covers additions, alterations, or repairs under construction if not insured elsewhere. Coverage B - Business Personal Property covers furniture, fixtures, machinery, equipment, stock, and other personal property owned by the insured and used in the business, plus leased personal property the insured must insure. Coverage C - Personal Property of Others covers non-owned property in the insured's care, custody, or control at the described premises.
Additional coverages (default limits)
Debris removal (25% of the deductible plus the direct loss payment); preservation of property (30 days); fire department service charge ($1,000); pollutant cleanup and removal ($10,000 per occurrence and per 12-month period); increased cost of construction ($10,000); electronic data ($2,500, with no coverage for loss of access or use); collapse; outdoor signs ($2,500).
Coverage extensions (inside the limit)
Newly acquired or constructed property ($250,000 building / $100,000 BPP, 30 days); personal effects and property of others ($2,500); valuable papers and records ($2,500, cost to reconstruct); property off-premises ($10,000, in transit or at a temporary location); outdoor property ($2,500 total, $1,000 any one tree, shrub, or plant); non-owned detached trailers ($5,000). Extensions do not increase the limit of insurance.
Worked example
A store carries a $300,000 BPP limit at one location, 90% coinsurance, $1,000 deductible. BPP value at loss is $400,000, so required = $360,000. Fire causes $90,000 damage. Payment = (300,000 ÷ 360,000) × 90,000 = $75,000, less $1,000 = $74,000. With the Agreed Value option, coinsurance is suspended and the payment is $89,000, subject to the limit.
Traps
- Treating coverage extensions as extra limits.
- Assuming land, excavations, and below-grade foundations are covered - they are not.
- Confusing Coverage C with the $2,500 property-of-others extension.
- Forgetting that the vacancy condition applies to a building even when the BPP is intact.