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3 Aspects of Commercial Property Insurance
- Type of Property
- Causes of Loss
- Financial Consequences of Property Loss
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Types of Property
- real property: tangible property consisting of land, all structures permanently attached and whatever is growing on the land
- personal property: all tangible and intangible property that is not real property
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Classification of Personal Property
- contents: furniture, machinery, personal property of others that is in the insured's care
- property in transit: basic coverage is usually inadequate for businesses with significant transit exposure (need cargo insurance)
- property in the possession of others: usually based on nominal amount as it's impossible to predict exposure
- floating property: normally doesn't remain at a fixed work site
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Financial Consequences of Property Loss
- reduction in value
- lost income
- extra expenses
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Components of a Commercial Property Coverage Part
- commercial property declaration
- 1+ commercial property coverage form: insuring agreement, coverage extensions, BPP (building and personal property)
- 1+ cause of loss form: basic, broad, special
- commercial property conditions
- endorsements
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