This edition of “What’s the Diff” covers Personal Property & Business Property.
Personal property, generally, includes assets other than real estate. Distinguished by personal property being movable verses permanently fixed property like real properties, such as land or buildings.
Examples of personal property include vehicles, furniture, boats, and collectibles.
Business Personal Property (BPP)
Business Personal Property (BPP) is property belonging to the firm that is movable, not affixed or associated with the land. BPP could be anything from the smallest stapler or calculator to a company-owned car or large piece of machinery.
This also includes equipment, office furniture, computers, tablets, cell phones, and vehicles purchased and used by the business. If it isn’t nailed down, and it’s movable in the same way as personal property.
Bonus Client Question:
What if I store my business property in my home temporarily and there is a loss, will my BOP or Homeowner’s Policy cover it?
This is where things get interesting!
Generally, homeowners insurance policies provide limited coverage for business property that is stored in your home. However, not every homeowners insurance policy provides coverage for business property. Even when it does, the coverage limits available may not be high enough to protect against the value of your property.
Depending on how your BOP is set up, there’s a possibility that off premises BPP may be covered if your home is listed as an addition location for the business.