Finally Revealed - Little Known Secrets that Could Save You Thousands of Dollars on Your Property Insurance Costs - Guaranteed!

When an insurance policy refers to "property" coverage, it refers to real property coverage. Examples of property coverage can include: 

• Buildings

• Business personal property (contents AND your cost of tenant improvements and betterments)

• Loss of business income

• Extra Expense (the cost to clean up and remove damage property i.e. after a fire)

• Property "floaters" (scheduled coverage for things like computers, property away form your main business premises)

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  Employee Dishonesty (the number one cause of business loss today is employee theft)

Usually, good property polices covered all types of direct physical loss of or damage to covered property as long as they are at the premises described in the Declarations and the loss is covered by the applicable Cause of Loss Form (special form is what you want, this is the best coverage form). 

What is Covered under Building Section?

When a Limit of Insurance is shown in the Declarations, the structure described, plus any of the following, are considered covered as building:

• Completed additions

• Fixtures

• Permanently installed machinery and equipment, and,

• Personal property owned by the insured and used to service or maintain the building or premises.

• Structure additions (including construction materials within 100 ft. of the covered premises)

What is Covered as Business Personal Property?

When a Limit of Insurance is shown in the Declarations, the following is covered under the business personal property coverage, as long as it is not otherwise excluded or limited and it is in the building at the indicated premises; or if outside, it must be in the open or in a vehicle that is within 100 feet of the premises:

• Furniture and fixtures,

• Machinery, equipment, and stock,

• All other personal property owned by the insured and used for business,

• Labor, materials or services furnished or arranged by the insured on the personal property of others,

• If the insured is a tenant, the insured's interest in any improvements and betterments made by or acquired by the insured, and

• Any leased personal property the insured has a contractual responsibility for.

What is Covered as Personal Property of Others?

Personal property of others is covered under the following two circumstances, but only for the account of the owner of the property:

if the personal property of others is in the insured's care, custody, or control, and,

if it is in the building at the indicated premises; or if outside, it must be in the open or in a vehicle that is within 100 feet of the premises.

What is Employee Dishonesty and What is Covered?

"Employee dishonesty" – Dishonest acts committed by "employees" whether identified or not, acting alone or in collusion with others that cause you to sustain loss and also financially benefit the employee or others as intended by the employee. This includes money and other forms of security

Exclusions - Property Not Covered 

Let’s get one thing clear… All policies have exclusions. You hear terms like all risk, special form, comprehensive, full coverage. Those phrases do not mean there are no exclusions. Companies use exclusions because certain exposures to loss may be too great to cover under a standard policy, or simply too great for the company to consider insuring. If you would like to have a particular exclusion removed, ask us and we will see whether your insurance company or another specialty insurer we work with can provide the coverage. Remember, 99% of all policies in today's marketplace EXCLUDE earthquake and flood coverage. Flood meaning the overflow of a body of water (river, lake, stream) or seepage of ground water. Additional standard property policy exclusion include:

• Accounts, bills, currency, food stamps, evidences of debt, money, notes, or securities

• Animals

• Automobiles held for sale

• Bridges, roadways, walks, patios or other paved surfaces

• Contraband or any property involved in illegal transportation or trade

• Cost of excavations, grading, backfilling or filling

• Foundations below the basement or the surface of the ground where there is no basement

• Land, water, grown crops or lawns

• Personal property while airborne or waterborne

• Bulkheads, pilings, piers, wharves or docks

• Property insured or covered under another coverage form or policy

• Retaining walls not part of a covered building

• Underground pipes, flues or drains

• Electronic data

• Cost to research, replace or restore information on valuable papers or records

• Vehicles or self-propelled machines licensed for use on public roads or operated principally away from the described premises

• The following types of property outside of buildings are not covered unless provided for in Coverage Extensions or described with a limit in the declarations or otherwise endorsed to the policy: grain, hay, straw, crops, fences, radio or TV antennas and satellite dishes including lead-in wires, masts, and towers, signs not attached to buildings, and trees, shrubs or plants.

NORMAL EXCLUSIONS UNDER EMPLOYEE DISHONESTY FORM

• Employee canceled under prior insurance;

• Inventory shortages;

• Loss caused by any "employee" required by law to be individually bonded;

• Caused by treasurer or tax collector;

• Damages from the deprivation or violation of the civil rights by an "employee" or the tortuous conduct of an "employee" except conversion of property of other parties held by you in any capacity.

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  Liability, or personal injury losses are better handled by liability policies. persons required by law to be bonded will have to be bonded separately as will treasurers or tax collectors.

What is covered and what is not covered by an insurance contract is challenged every day in court. Needless to say the scope of what your insurance contract will cover also changes. The description above is intended for informational purposes only. If you have any legal questions, please contract a lawyer.

Read your policy it is a legally binding contract between you and your insurance carrier.

Be a smart consumer...but don't try to be your "own agent." Protection for you and your business requires constantly vigilance....and a partnership between you and your professional agent. For the latest information on how to save money AND get the best protection for yourself and the people you care most about, here's 3 easy ways to reach us:

Toll-free Phone - 877-994-6787

Toll-free Fax - 888-467-7968

Email - chef@zipdrip.com

© 2004 Stromsoe Insurance Agency,Inc. The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance

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