Building Coverage versus Business Personal Property Coverage

December 1, 2014

Under the Building and Personal Property Form, CP 00 10 06 07, can the insured split coverage for appliances used for refrigeration, HVAC, and the like? In the event that an item could be covered under both building and business personal property, and the insured hit the limit on the business personal property, can the excess be considered on the building coverage?

Michigan Subscriber

The building limit could be tapped for appliances used to maintain or service the building, structure, or premises, such as for refrigeration. Refrigeration appliances could also fall under business personal property as machinery and equipment or all other personal property owned by the insured and used in the insured's business. The HVAC system may be more difficult to fit into the personal property category as it may be seen as part of the building as permanently installed fixtures but not necessarily business personal property.

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