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 caused due to leakage or the damage caused to sanitary ware and glass ware 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 the tenants for only 6 floors. The tenants occupied their respective spaces and started their own businesses.

Mr. Sharma decided to buy a 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 was damaged. Apart from that there were some damages on 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 claims for the damages to computers and furniture was 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.