The Standard Property Policy

A very popular way to insure a commercial building is the Commercial Package Policy (CPP). However, this type of policy may not be available because of your building’s size, age, construction or because of its contents. Well, you do have another alternative…a Standard Property Policy (SPP).

Besides a commercial building, the Standard Property Policy also covers completed building additions, property used for maintaining or servicing the building (such as mowing or painting equipment), permanent fixtures (such as permanent shelving), and machinery. The SPP also covers material meant for construction or repairs to the covered building.

The Standard Property Policy can be used to cover furniture, fixtures (that aren’t permanently attached), machinery, equipment, stock, materials and even property that you lease or which belongs to a building (business) tenant. Further, you also have coverage for personal property of others that is under your care or on or near your insured building

Some types of property are excluded. The Standard Property Policy doesn’t cover money, securities, deeds and similar property. Further, there’s no coverage for animals, illegal goods, parts of the building that are below the ground, cost of digging or excavating, property being transported by sea or air, or property that’s insured by another policy. There are other items that aren’t covered, but most of them fall into the categories of outdoor structures that are beyond the scope of the Standard Property Policy or items that should be covered by other types of policies.

The coverage provided by the Standard Property Policy takes care of losses from basic sources such as fire, lightning, and certain kinds of explosions. Further, you have the option of adding coverage for damage caused by wind, hail, smoke, aircraft, vehicles, hostile mobs, sinkholes, leaky sprinklers and volcanoes. The policy even offers several additional coverages to take care of your expense to remove debris, protect property, take care of pollutants or handle a fire department charging you to make a fire run.

If you have a commercial building, then you have the need for protection. Talk to an insurance professional to see if the Standard Property Policy is a good way to protect your property.

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