Which item would NOT be covered under building coverage in a building and personal property policy?

Which item would NOT be covered under building coverage in a building and personal property policy?

• A. The ice cream case permanently installed in an ice cream shop
• B. The bulldozer used for business construction parked 500 feet from the building
• C. The tables and chairs used by a coffee shop for outdoor seating
• D. The building housing a dress shop

Answer: (B)

The correct answer highlights an important distinction in insurance coverage under a building and personal property policy. Building coverage specifically protects structures and certain fixtures that are a permanent part of a building, while personal property coverage addresses movable items. In this case, the bulldozer used for business construction is not considered part of the building or its permanent fixtures. Instead, it is classified as business personal property because it is a mobile piece of equipment used for construction, not fixed to the premises. Therefore, it does not qualify for coverage under building coverage. On the other hand, the ice cream case installed in the ice cream shop, the tables, and chairs used by a coffee shop, as well as the building itself where the dress shop operates, are covered items. Each of these is either a permanent fixture or directly associated with the operation of the business within the building, making them eligible for building or personal property coverage under the policy.

The correct answer highlights an important distinction in insurance coverage under a building and personal property policy. Building coverage specifically protects structures and certain fixtures that are a permanent part of a building, while personal property coverage addresses movable items.

In this case, the bulldozer used for business construction is not considered part of the building or its permanent fixtures. Instead, it is classified as business personal property because it is a mobile piece of equipment used for construction, not fixed to the premises. Therefore, it does not qualify for coverage under building coverage.

On the other hand, the ice cream case installed in the ice cream shop, the tables, and chairs used by a coffee shop, as well as the building itself where the dress shop operates, are covered items. Each of these is either a permanent fixture or directly associated with the operation of the business within the building, making them eligible for building or personal property coverage under the policy.