The Building and Personal Property Form has a long list of property not covered, commonly referred to as exclusions. Do you think this is a rip-off? Not so fast...
The fact is, policy exclusions are just good economics. Why? They actually save you money because most of the exclusions reflect risks that not all insureds have, or that other forms of insurance can cover.
How about an example? Let’s focus on one of the exclusions: autos held for sale. If you’re a plumbing contractor, chances are, you don’t have vehicles sitting on your property that you’re selling. But how would you feel if a portion of your premium was used to cover this risk? A risk you don’t even have. Probably wouldn’t make you too happy, right?
This is one of the major reasons for the list of exclusions in the Commercial Property Policy… put simply, if coverage is needed for a type of claim that is excluded by the policy, chances are, a separate policy can be purchased.
In our “autos held for sale” example, those in the auto sales business can obtain insurance specifically fitted to this type of risk.
Curious about property not covered? Whip out your policy and check the list. Some of the most common exclusions you're likely to see include:
Accounts, bills & currency
Autos held for sale
Bridges, roadways, walks, patios and other paved surfaces
Cost of excavations, grading and backfilling
Foundations of buildings or structures
Personal property while airborne or waterborne
Underground pipes, flues or drains
Vehicles licensed for road use
Property outside the building such as fences, trees, shrubs & plants (although some coverage is provided through the Coverage Extensions)
If you’d like to learn more, contact one of ourLicensed Advisorsor complete the form above. We’re here to help.
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