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Property Insurance
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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.
Personal Property is all property that is not real property. The Building and Personal
Property coverage form is the form used to insure almost all types of commercial property.
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.
Call 631-259-6157 or email kane_michaelk@kibservices.com with questions.
PROPERTY CAPACITY
Buildings and Business Personal Property
Coverage for the building includes the building and structures, completed additions to
covered buildings, outdoor fixtures, permanently installed fixtures, machinery and
equipment. The building material used to maintain and service the insured's premises is
also insured. Business Personal Property (BPP) owned by the insured and used in the
insured's business is covered for direct loss or damage. The coverage includes furniture
and fixtures, stock, and several other similar business property items when not specifically
excluded from coverage. The policy is also designed to protect the insured against loss or
damage to the personal property of others while in the insured's care, custody or control.
Coverage Extensions and Additional Coverages
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 outdoor property, and the cost to research and
reconstruct information on destroyed records. When coverage is placed on the all risk
form, two additional extensions are added for property in transit and coverage for certain
repair costs related to damage caused by water. The two additional extensions are
covered by certain perils only. The additional coverage section provides coverage for
indirect losses that result from a direct loss. The coverage applies to removal of debris,
preservation of property, fire department service charges and pollutant cleanup and
removal. The coverage extensions and the additional coverages have limitations and are
subject to certain conditions.
Limit of Insurance - The most the insurer will pay for loss or damage in any one
occurrence is the limit of insurance stated in the policy declarations.
Deductible - The standard deductible is $250. However, other deductible amounts are
available and the deductible applies only once per loss.
Causes of Loss - The term peril is used when discussing losses. A peril is a cause of
loss. Basic property insurance policies are written to cover the perils of fire, lightning,
explosion, windstorm, hail, smoke, aircraft or vehicle damage, riot or civil commotion,
vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. Other property
insurance policies, often referred to as the broad form policy, add coverages for water
damage, weight of snow, ice or sleet, breakage of glass and coverage for falling objects.
The broadest coverage is the special form, which is best known as the all risk form. All
risk covers all causes of loss, except those specifically excluded from coverage. It is
possible for a commercial property policy to have more than one cause of loss form.
Replacement Cost and Actual Cash Value - Property can be valued in several different
ways. Insurance companies commonly use two approaches to determine value, which
also determines how a loss will be paid; the replacement cost method (RC) and the
actual cash value method (ACV). Insurers consider RC of a property item to be the cost to
replace it with new property of like kind. ACV is replacement cost, minus the accumulated
depreciation for age and condition.
Coinsurance - Most Building and BPP polices have a coinsurance clause which requires
the insured to carry insurance equal to at least a specified percentage of the actual cash
value of the property. 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.
Call 631-259-6157 with questions or send a completed copy of the following applications
to kane_michaelk@kibservices.com or by fax 631-204-6630 to begin marketing a proper
and cost efficient Property Insurance program for your business:
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.
Personal Property is all property that is not real property. The Building and Personal
Property coverage form is the form used to insure almost all types of commercial property.
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.
Call 631-259-6157 or email kane_michaelk@kibservices.com with questions.
PROPERTY CAPACITY
Buildings and Business Personal Property
Coverage for the building includes the building and structures, completed additions to
covered buildings, outdoor fixtures, permanently installed fixtures, machinery and
equipment. The building material used to maintain and service the insured's premises is
also insured. Business Personal Property (BPP) owned by the insured and used in the
insured's business is covered for direct loss or damage. The coverage includes furniture
and fixtures, stock, and several other similar business property items when not specifically
excluded from coverage. The policy is also designed to protect the insured against loss or
damage to the personal property of others while in the insured's care, custody or control.
Coverage Extensions and Additional Coverages
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 outdoor property, and the cost to research and
reconstruct information on destroyed records. When coverage is placed on the all risk
form, two additional extensions are added for property in transit and coverage for certain
repair costs related to damage caused by water. The two additional extensions are
covered by certain perils only. The additional coverage section provides coverage for
indirect losses that result from a direct loss. The coverage applies to removal of debris,
preservation of property, fire department service charges and pollutant cleanup and
removal. The coverage extensions and the additional coverages have limitations and are
subject to certain conditions.
Limit of Insurance - The most the insurer will pay for loss or damage in any one
occurrence is the limit of insurance stated in the policy declarations.
Deductible - The standard deductible is $250. However, other deductible amounts are
available and the deductible applies only once per loss.
Causes of Loss - The term peril is used when discussing losses. A peril is a cause of
loss. Basic property insurance policies are written to cover the perils of fire, lightning,
explosion, windstorm, hail, smoke, aircraft or vehicle damage, riot or civil commotion,
vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. Other property
insurance policies, often referred to as the broad form policy, add coverages for water
damage, weight of snow, ice or sleet, breakage of glass and coverage for falling objects.
The broadest coverage is the special form, which is best known as the all risk form. All
risk covers all causes of loss, except those specifically excluded from coverage. It is
possible for a commercial property policy to have more than one cause of loss form.
Replacement Cost and Actual Cash Value - Property can be valued in several different
ways. Insurance companies commonly use two approaches to determine value, which
also determines how a loss will be paid; the replacement cost method (RC) and the
actual cash value method (ACV). Insurers consider RC of a property item to be the cost to
replace it with new property of like kind. ACV is replacement cost, minus the accumulated
depreciation for age and condition.
Coinsurance - Most Building and BPP polices have a coinsurance clause which requires
the insured to carry insurance equal to at least a specified percentage of the actual cash
value of the property. 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.
Call 631-259-6157 with questions or send a completed copy of the following applications
to kane_michaelk@kibservices.com or by fax 631-204-6630 to begin marketing a proper
and cost efficient Property Insurance program for your business:
Copyright Kane Insurance Brokerage Services, LLC - All Rights Reserved 2007 / PRIVACY
We are a Socially, Environmentally and Physically Conscience Company
New York, NY Westhampton Beach, NY
212-784-6199 631-259-6157
212-784-6199 631-259-6157