A risk we insure owns a funeral home and wanted to open a flower shop in a second building at the described premises, which was not considered insured when the policy was written. The insured did not want to insure the building but wanted to insure the business personal property, which incidentally reads the same way as to coverage. Does this mean that there is blanket coverage under the BOP for buildings and business personal property at the described premises? And if so, how would a building for which no coverage was intended be excluded since there is an 80 percent replacement requirement in the loss payment provisions?

Tennessee Subscriber

On the declarations pages for both forms, a premises number and a building number, as well as a limit, are required to be entered. Both forms also contain this lead-in language: “We will pay for direct physical loss or damage to covered property at the premises described in the declarations.” Coupled with these elements, the BOP and CP forms cover only the buildings and structures described in the declarations, and the limits should reflect this. There is a separate entry on the declarations for blanket insurance. So, unless the insured has chosen blanket coverage, the extra building would not automatically be covered due to the wording you quote. For the business personal property in the other building to be covered, the insured would have to indicate that on the declarations (and pay a difference in premium).