Building & Personal Property Losses

This is a subject that I wrote about over 20 years ago. It involves two losses that happened recently. Both losses involve the Building & Personal Property coverage that we write everyday. Both losses occurred because of a lack of communication between the insured and the agents involved. One was covered, but with not enough dollars, and the other loss was not covered at all.

The first loss had to do with a building loss. It was a large trailer that was wheeled onto the premises and then had the wheels removed. It was placed on some large timbers which acted as a foundation. It was going to be used for storage purposes. But before it was even put into service, a fire destroyed the trailer. The loss was estimated at a little over $35,000. There was, of course, no physical damage written specifically on the trailers, which had now become "structures".