Building and Personal Property
October 13th, 2008by Chris Oakley
The Building and Personal Property Coverage Form or BPP is the most common commercial property form. The BPP can cover the building, business personal property, and the personal property of others. However; the BPP does not have to include all three of these categories or equally cover each of these categories. For instance, if the insured owns or leases a small office and does not take into custody the personal property others, he may cover the building and business personal property and choose not to cover the personal property of others.
The BPP defines the building as the actual structure or building noted in the policy, completed additions, indoor and outdoor fixtures, permanently installed equipment or machinery, and personal property owned by the insured and used to sustain or service the building.
The BPP defines business personal property as property owned by the insured and used in the insured’s business. The property must be located in the building, on the premises, or in a car located within 100 feet of the premises, although there is one exception. Up to $10,000 of business personal property can be recovered that is considered off-premises.
The coverage for the personal property of others is probably not needed for most companies in the landscaping, lawn care, or tree trimming business. Only if you are taking care of the personal property of someone else and storing it on your premises would you need personal property of others coverage. The only example I can think of would be if you repaired equipment for others on your premises. Then coverage for the personal property of others would be a great idea.
