A commercial property coverage part is assembled from pieces: the declarations, a coverage form, a causes of loss form and the conditions. The coverage form says what property is insured and how it is valued, but it names no perils. The causes of loss form supplies them, so a coverage form alone would leave the policy without stated perils.

The Building and Personal Property (BPP) coverage form insures two main kinds of property. Building means the described structure, completed additions, fixtures and permanently installed machinery and equipment. The CDI outline adds that dwellings are not eligible for this form; a home belongs on a dwelling or homeowners policy.

Your Business Personal Property is the movable property the business owns, such as stock, furniture and equipment, even while it sits inside the building. Stock does not become building property just because it is located there.

Valuation: unless the replacement cost option is chosen, business personal property is valued at actual cash value. In California, §2051(b) measures actual cash value as the cost to repair, rebuild or replace less a fair and reasonable deduction for physical depreciation, or the policy limit if less. Example: a machine that costs $30,000 to replace, with $12,000 of physical depreciation, is worth $18,000 at actual cash value.