What is Considered “Property” in a Sacramento Commercial Property Insurance Policy?

The term “property” is used fairly broadly in commercial property insurance. Property can be the actual building or personal property owned by the business such as computers, office furniture and more. Property can be defined as any items with value attached to it.

The two most basic forms of property are personal property and building property

Building Coverage:

Usually will include equipment and machines that typically are permanently installed. Items such as air conditioners, alarm systems and more. 

Personal Property:

Your personal property is usually the property the business owns such as office furniture, equipment, machines, raw materials, inventory, finished goods, goods-in-process and more. 

As a business owner it may be important to know the differences of the two so you know what is and isn’t covered if the worst were to happen. If you have questions it may be wise to speak to one of our wonderful agents. They can take a look at your policy to see if there are any gaps that need to be filled with additional coverage. 

Commercial Property Insurance: Types of Personal Property

For the most part you can consider all property that isn’t exactly “land” property to be personal property. Some examples of personal property may be merchandise and inventory, office furniture and computers, tools and equipment, machines, company clothing, and more. For the purpose of commercial property insurance, personal property can fall into the following categories:

• “Contents” – referring to the contents of a building (equipment and inventory)

• “In transit” – as businesses commonly ship property to others (merchandise) or receive property from others (raw materials or supplies)

• “Possession of others” since organizations place its property in the temporary possession of others for processing, cleaning, repairing, adjusting, storing, exhibiting, or selling

• “Floating” property that does not remain at a fixed work site or that is in transit between work sites (for example, a wedding photographer’s cameras or a building contractor’s tools and mobile equipment)

Business Property Insurance: What Property Types are Typically Excluded? 

Most commercial property insurance policies will exclude the following:

• Money and securities, accounts, bills, and food stamps
• Animals other than stock
• Vehicles, aircraft, or watercraft (with some exceptions)
• Land, piers, wharves, docks
• Crops, grain, or hay located outside
• The cost of excavations, grading or backfilling

You will always want to speak to a professional commercial property insurance agent to make sure you are clear on the provisions and guidelines of your policy. Not everything is covered under business property insurance so it is always a great idea to talk to one of our amazing agents to get clarity. Many (but not all) property policies also exclude building foundations, paved surfaces (like walkways and roads), electronic data, and the cost to restore information on valuable records (both electronic and hard copy versions).

Best Coverage Types for Commercial Property Insurance 

One of the agents at Eugene C Yates Insurance Agency can help you to look at your policy closer and discover things you may want coverage for such as:

• The building that houses your business, including if it is owned or rented
• All office equipment, including computers, phone systems, and furniture, whether they’re owned or leased
• Accounting records and essential company documents
• Manufacturing or processing equipment
• Inventory kept in stock  
• Fence and landscaping
• Signs and satellite dishes

Commercial Property Insurance Coverages with Eugene C Yates Insurance Agency

Eugene C Yates Insurance Agency has been helping California business owners get great commercial property insurance since 1946. Business property insurance is one of the most important forms of coverage you may carry as a business owner. Because of this we pride ourselves in knowing we strive for great coverage and an affordable rate. 

Regardless of whether your rent, lease or own the building you business out of, commercial property insurance can help safeguard your company’s assets. 

Building Property

When determining building coverage, consider the replacement cost of: 

• Completed additions
• Fixtures
• Permanently installed machinery and equipment
• Personal property that is used to service or maintain the building or premises

Business Personal Property

Business personal property insurance may cover property at a specified location such as: 

• Furniture
• Fixtures
• Equipment 
• Inventory
• Machinery
• Stock
• All other personal property owned by the insured and used for business
• Any improvements and betterments made by or acquired by the insured (when a tenant)
• Leased personal property the insured has a contractual responsibility for

Business Income (Business Interruption Coverage)

Commercial property insurance has protection for your business income as well. This portion of your coverage will reimburse you for any lost profits if your business is forced to shut down due to a covered peril. 

Electronic Data Processing (EDP)

This separate form of commercial property insurance must be purchased on top of your standard policy and is designed to protect your computer equipment and other related items. 

Equipment Breakdown or Boiler and Machinery

Equipment breakdown insurance coverage comes in four separate parts:

• Damage from an accident to the items covered
• Damage to the insured’s other property caused by an accident to the items covered
• Loss of income due to damage to the item and/or damage to the other insured property
• Damage to property of others and bodily injury to others caused by an accident to the items covered

Commercial Property Insurance Quote

If you would like a custom business property insurance quote or have additional questions regarding commercial property insurance, please give us a call at (916) 313 – 6100