Usually, the building insurance for commercial properties does not provide protection for:
- The contents of the building like office equipment, computers, documents, furniture, and other assets.
- Any intentional damages caused by your employees or the tenants to whom the office space is let out.
- Any damages caused by the pets, vermin, or wear and tear.
- Damages are caused due to leakage or damage caused to sanitary ware and glassware when the building is unoccupied.
Click here to know what is covered under building insurance
Case on Building Insurance Exclusions
Mr. Siddharth Sharma constructed a huge commercial property with a total of 10 floors. He kept one floor to himself for his own office and offered the other 9 floors for rent. Out of the 9 floors, he got tenants for only 6 floors. Thus, the tenants occupied their respective spaces and started their own businesses.
So, Mr. Sharma decided to buy building insurance for his property and even informed the tenants about the same.
One fine day, there was a fire in the building on the 8th floor. But, the situation was taken under control quickly. Only the 8th floor and the office on that floor were damaged. Apart from that, there was some damage to the electrical wiring and exterior paints that connected the whole building.
Mr. Sharma filed a claim with the insurance company so that he can get the repairs done as soon as possible. On the claim form, he asked for the reimbursement of the damages caused to the building structure, paints outside the building, electrical fittings as well as the loss of office furniture and computers situated on the 8th floor.
Mr. Sharma’s claims for the damages to computers and furniture were rejected by the insurance company as it is not covered by the building insurance and the individual office insurance should be taken by the individual offices to cover their own risks.
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
