Dwellings and Other Structures
A typical policy on a dwelling covers the “residence premises”, which is defined as the location shown in the policy declarations. This shall also usually include structures attached to the dwelling and materials and supplies located next to the building used to construct, alter or repair. The coverage for residence premises does not apply to land. “Structures attached to the dwelling” include an attached garage or carport. A freestanding, detached structure is not part of the dwelling. A separate insuring agreement for “other structures” covers such detached items. The need for separate insurance agreement is that different policy limits (dollar amounts of insurance) apply for dwelling and other structures.
Building and Other Structures
In commercial insurance, a permanent structure with walls and roof is usually called a building. Other outdoor structures, such as carports, antenna towers, and swimming pools, might not be buildings and should insured separately.
In commercial insurance, the term building shall also include: -
· Additions that either completed or under construction as well as materials and supplies used for construction.
· Permanently installed fixtures, machinery and equipment.
· Some items that seem to be personal property such as fire extinguishing equipment, outdoor furniture, wall-to-wall carpeting and refrigerators.
Personal Property
Although buildings and personal property can be insured in the same policy, they are treated as separate coverage items. The reason being that an operation of an insured peril in building can also definitely affect personal property and vice versa.
On the other hand, because personal property can be moved more easily than buildings, it is exposed to additional perils such as theft. In addition, items such as valuable papers, securities, accounts, computer programs, fine arts, stamps, give rise to loss exposures that require special handling.
Dwelling Personal Property
This insurance provides coverage on a worldwide basis. The homeowners insuring agreement for personal property is a very broad statement of coverage, but such broad coverage is restricted by a number of exclusions and limitations.
Exclusions eliminate all coverage for excluded property or causes of loss, limitations place a specific dollar limit on specific property that is covered.
Business Personal Property
Business personal property also includes personal property in the open (or in a vehicle) within 100 feet of the described premises. Commercial property policies often include an additional coverage (known as a “coverage extension”) that provides a certain limit, such as $10,000, of coverage for property off-premises in the specified policy territory.
Property Loss Exposures
