If a loss occurs and it is determined that the amount of insurance carried is less than the amount required, a penalty could be placed on the insured. Back to list of terms. Property Insurance is any type of insurance that indemnifies an insured party who suffers a financial loss because property has been damaged or destroyed. Property is considered to be any item that has a value. Property can be classified as real property or personal property.
Real property is land and the attachments to the land, such as buildings.
The insuring agreement in the Building and Personal Property coverage form promises to pay for direct physical loss or damage to covered property at the premises described in the policy when caused by, or resulting from, a covered cause of loss. The following is a brief outline of coverages and how they are used within the Commercial Building and Personal Property coverage form. Back to list of terms. In addition to the limits stated in the Building and Personal Property coverage form, the policy has a coverage extensions section and an additional coverages section. The coverage extensions section provides limited coverage for newly acquired or constructed property, property of others, certain out door property, and the cost of research and reconstruct-information on destroyed records.