Tenant's improvements and betterments are fixtures, alterations, installations or additions made part of a building the tenant occupies but does not own, paid for by the tenant, and not legally removable. Built-in flooring or a walk-in cooler the tenant paid for are examples. The tenant insures its use interest in them as business personal property. A display case the tenant can carry away is a trade fixture instead.
How they are valued depends on what happens after the loss:
Repaired or replaced promptly: actual cash value.
Not repaired or replaced promptly: a proportion of the original cost, based on the lease time left.
Example: a tenant spent $80,000 on improvements at the start of a five-year lease, and a fire destroys them with two years left. The tenant decides not to rebuild. The form pays $80,000 × 2/5 = $32,000. Using the three years already used would give the wrong answer, $48,000.
Personal property of others: the BPP form also covers property of others in the insured's care, custody or control, and pays the loss for the owner's account. A furniture repair shop's customer sofas are an example. The CDI outline limits this coverage: property of others is not covered while in transit in the continental United States. A business that moves customers' goods needs inland marine coverage for that exposure.