Why Buy a Commercial Property Policy

When used in connection with a church, a “property policy” refers to coverage found under a “Commercial Property Policy”. If your church owns a building and personal property in that building then you would purchase a commercial property policy to pay for various types of damage to that property.

Most commercial property policies are going to cover three categories of property owned by or in the care, custody and control of the church:

  • Building Property;
  • Business Personal Property; and/or
  • Personal Property of Others

But, even though it is the workhorse for the typical church’s property insurance program, the commercial property policy isn’t built to cover all forms of property.  For this reason the church may need to purchase additional policies built to respond to other types of property exposures that they may have.  For example, a church may also buy:

  • A “flood policy” since the commercial property policy excludes loss due to most forms of water damage;
  • A “business auto policy” since the commercial property policy considers motor vehicles “property not covered”.
  • A “crime policy” because the commercial property policy considers money as “property not covered”.
  • An “inland marine policy” for property off of the descried premises (including property in transit) as the commercial property policy provides very limited coverage for this exposure.

The good news is that many companies now offer packages of extra coverage designed to offset, to some degree, some of the most frequently overlooked loss exposures.  The insurance company may do this as an optional offering or they may build it automatically into their forms and their pricing.