What are the three categories of covered property under the building and personal property coverage form?

What are the three categories of covered property under the building and personal property coverage form?

• A. Building property
• B. Building property and personal property of others
• C. Building property; business personal property of the insured; personal property of others
• D. Personal property of the insured

Answer: (C)

Under the Building and Personal Property Coverage Form, covered property falls into three categories: building property, business personal property of the insured, and personal property of others. Building property covers the insured’s structures on the premises. Business personal property of the insured includes property used in the business that belongs to the insured—like equipment, furniture, and inventory. Personal property of others is property belonging to customers or others that is in the insured’s care, custody, or control (for example, customers’ property being repaired or stored). The option that lists these three categories aligns with how the form defines covered property, which is why it’s the best choice. The other options omit one or more of these categories.

Under the Building and Personal Property Coverage Form, covered property falls into three categories: building property, business personal property of the insured, and personal property of others. Building property covers the insured’s structures on the premises. Business personal property of the insured includes property used in the business that belongs to the insured—like equipment, furniture, and inventory. Personal property of others is property belonging to customers or others that is in the insured’s care, custody, or control (for example, customers’ property being repaired or stored). The option that lists these three categories aligns with how the form defines covered property, which is why it’s the best choice. The other options omit one or more of these categories.