Building and Personal Property Coverage Form
The primary ISO form (CP 00 10) providing property coverage for commercial buildings, business personal property, and personal property of others.
What It Is
The Building and Personal Property Coverage Form (CP 00 10) is the primary ISO form used to provide property insurance for commercial buildings and their contents. It defines three categories of covered property: Coverage A (Building), which covers the building structure, fixtures, permanently installed machinery, and outdoor fixtures; Coverage B (Business Personal Property), which covers furniture, equipment, inventory, and other movable property owned by the insured; and Coverage C (Personal Property of Others), which covers property of others in the insured's care, custody, or control.
The BPP form works in conjunction with a Causes of Loss form (Basic, Broad, or Special) to define which perils are covered. The BPP form defines what property is covered, while the Causes of Loss form defines what events are covered. Together, they create the complete commercial property coverage.
The form includes several important provisions including debris removal, preservation of property, fire department service charges, pollutant cleanup, and increased cost of construction. It also contains detailed definitions of what constitutes building property versus personal property, which affects coverage application and claim adjustment.
Why It Matters for Brokers
The BPP form is the backbone of virtually every commercial property policy. Brokers must understand the distinctions between building, BPP, and personal property of others to ensure each category is adequately insured. Misclassifying property between categories can lead to coverage gaps—for example, tenant improvements may be building property under the landlord's policy or BPP under the tenant's policy, but not both.
Real-World Example
A tenant improves their leased space by $280,000 for custom build-out including walls, flooring, and built-in cabinetry. The tenant assumes the landlord's property policy covers these improvements. The landlord's policy covers the building but defines tenant improvements as BPP of the tenant. The tenant's BPP policy has a $150,000 limit. A fire destroys the improvements, and the tenant discovers a $130,000 gap because neither the landlord's building coverage nor the tenant's BPP adequately addressed the tenant improvement value.
Common Mistakes
- 1Not clarifying whether tenant improvements are covered under the landlord's building coverage or the tenant's BPP coverage, creating potential gaps or overlaps.
- 2Failing to include Coverage C (Personal Property of Others) for businesses that regularly hold customer property—repair shops, dry cleaners, warehouses.
- 3Setting BPP limits based on book value or depreciated value rather than replacement cost of all furniture, equipment, inventory, and supplies.
How brokerageaudit.com Handles This
brokerageaudit.com's Policy Checker verifies that all three BPP coverage categories are addressed and that limits are adequate for each. The system identifies businesses likely to hold property of others and flags missing Coverage C. For tenant accounts, the platform cross-references the lease terms with insurance coverage to identify tenant improvement coverage gaps.