Alabama Insurance Adjuster Practice Exam

Which item would NOT be covered under Coverage A of the Building and Personal Property Coverage Form in Jenny's commercial property policy after a fire loss?

1. A bandsaw permanently affixed to the floor

2. Office furniture

3. Inventory and stock

4. A cash register

The correct answer is: A bandsaw permanently affixed to the floor

Coverage A of the Building and Personal Property Coverage Form provides coverage for buildings, structures, and physical improvements permanently attached to a property. In the case of Jenny's commercial property policy, the item that would not typically be covered is a cash register. While it may seem like a fixture for business operations, it is not considered part of the building or a permanent structure. On the other hand, the bandsaw, which is permanently affixed to the floor, would be included in Coverage A as it is a part of the building structure itself. Office furniture and inventory are considered personal property and are covered under personal property coverage provisions, which typically fall under Coverage B, not A. Therefore, recognizing the distinctions between these coverages helps clarify why the cash register does not qualify for coverage. It highlights the importance of understanding what constitutes real property versus personal property in commercial insurance.