Defining 'building' in an insurance policy

Coverage Q&A: In insurance, the definition of a term is always important.

Merriam-Webster defines ‘building’ as “a usually roofed and walled structure built for permanent use (as for a dwelling).” (Photo: Shutterstock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: What exactly is a ‘building’ as it relates to insurance coverage? One subscriber asks in this week’s Q&A. 

Question: We have an AAIS policy with premises burglary and robbery coverage. Our insured’s outside generator was stolen while enclosed in a chain-link fence. Under the property coverage, it reads: “We cover your business personal property, except as limited below … for loss caused by the perils covered while in a building described on the declarations.” We are looking for your thoughts and comments on the definition of “building.”

— Guam Subscriber

Analysis: In insurance, the definition of a term is always important. While key terms will be defined in the policy, other terms are left open to interpretation. If a dispute arises, and the case goes to court, courts will refer to a standard desk reference such as Merriam Webster, since that is what most insured’s have access to.

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

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