Property Insurance

Question 1

Property Insurance

Answer 1

Property insurance covers the insured’s physical assets. In the insurance world, there are two types of property that can be insured: real property and personal property.

Question 2

Real Property

Answer 2

Real property refers to land and the physical structures built on it, namely buildings. Usually landlords will insure real property themselves. Vendors do not need this type of insurance, and tenants almost never do.

Question 3

Personal Property

Answer 3

Personal property refers to movable property that is not fixed to the building. Tenants and vendors are usually required to insure personal property.
In the case of tenants, personal property to be covered would include furniture, fixtures, betterments and improvements, equipment, and other property the tenant keeps on premises.
In the case of vendors, personal property to be covered would include tools, equipment, machinery or any other type of property the vendor brings on premises.

Question 4

Special Form Policies

Answer 4

In a Special Form, instead of the policy listing what perils are covered, it lists which perils are not covered. All unlisted perils are covered except for those explicitly excluded.