The Standard Property Policy

What if you own a building that is used for business purposes? What if you werenít able to buy a Commercial Package Policy (CPP) because of your buildingís size, age, construction or because of its contents? Well, if your major concern is getting coverage for your building, a Standard Property Policy is an available coverage alternative.

What Is Your Building Covered For?

Besides the building described in the policy, the Standard Property Policy also covers completed building additions, property that is for maintaining or servicing the building (such as mowing or painting equipment), permanent fixtures (such as permanent shelving), machinery and material meant for construction or repairs to the covered building.

Can I Get Coverage For My Business Personal Property?

Yes, the Standard Property Policy can be used to cover furniture, fixtures (that arenít permanently attached), machinery, equipment, stock, materials and even property that you lease or which belongs to a building (business) tenant. Further, you also have coverage for personal property of others that is under your care or on or near your insured building

Is any Type of Property Not Covered?

Of course some types of property are excluded. The Standard Property Policy doesnít cover money, securities, deeds and similar property. Further, thereís no coverage for animals, illegal goods, parts of the building that are below the ground, cost of digging or excavating, property being transported by sea or air, or property thatís insured by another policy. There are other items that arenít covered, but most of them fall into the categories of outdoor structures that are beyond the scope of the Standard Property Policy or items that should be covered by other types of policies.

What Types of Loss Are Covered?

The coverage provided by the Standard Property Policy takes care of losses from basic sources such as fire, lightning, and certain kinds of explosions. Further, you have the option of adding coverage for damage caused by wind, hail, smoke, aircraft, vehicles, hostile mobs, sinkholes, leaky sprinklers and volcanoes. The policy even offers several additional coverages to take care of your expense to remove debris, protect property, take care of pollutants or handle a fire department charging you to make a fire run.

There are also some handy coverage extensions available under the policy and, of course, the policy includes a group of exclusions that are common to most commercial insurance policies written to cover property. If you have a commercial building, then you have the need for protection. Talk to an insurance professional to see if the Standard Property Policy is a good way to protect your property.

COPYRIGHT: Insurance Publishing Plus, Inc. 2002

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