A client operates a marina and is concerned about potential damage to their docks and piers from a severe windstorm. Their standard Commercial Property Policy (Building and Personal Property Coverage Form) covers the main office building and a small storage shed. What is true regarding coverage for the docks and piers under their existing policy?
- ADocks and piers are covered under Coverage A (Building) as part of the insured's premises.
- BDocks and piers are covered under the 'Other Structures' provision if they are unattached to the main building.
- CDocks and piers are typically excluded as 'land' or 'water' and require specific endorsement or a Marine policy.
- DDocks and piers are covered if they are listed on the policy's Schedule of Property.
Show answer & explanationAnswer & explanation
Correct answer: C. Docks and piers are typically excluded as 'land' or 'water' and require specific endorsement or a Marine policy.
Standard Commercial Property Policies, specifically the Building and Personal Property Coverage Form, typically exclude 'land' and 'water' related structures, which often includes docks, piers, wharves, and bulkheads unless specifically endorsed or covered under a specialized Marine policy. They are not considered part of the 'building' or 'other structures' in the usual interpretation.
Why the other options are wrong
- A. Docks and piers are generally not considered part of the 'building' in a standard BPP policy due to their nature and location.
- B. The 'Other Structures' provision usually refers to unattached buildings like sheds or garages, not structures extending into water or on open land like docks.
- D. While scheduling property helps, if the *type* of property (docks/piers) is subject to a general exclusion, simply listing it on a standard BPP form without a specific endorsement may not override the exclusion.
BPP Exclusions (Land/Water Structures)
The Building and Personal Property Coverage Form (BPP) typically excludes structures considered 'land' or 'water' property, such as bridges, roadways, patios, and especially docks, piers, wharves, and retaining walls not part of a building.
- Standard BPP excludes land, water, bridges, roadways, patios.
- Docks and piers fall under these exclusions due to their nature/location.
- Specialized endorsements or Marine policies are usually needed for coverage.
Memory trick: Buildings and your stuff, but not the earth or sea's fluff.