Definition of “building” in an insurance policy


Merriam-Webster defines “building” as “a generally covered and walled structure constructed for permanent use (such as a dwelling)”. (Photo: Shutterstock)

Every claim is different and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it easy to find credible answers to your complex coverage questions. Analysis provided by our FC&S experts.

Editor’s Note: What exactly is a “building” in regards to insurance coverage? A subscriber asks in this week’s Q&A.

Question: We have AAIS policy with burglary and robbery coverage. Our insured’s outdoor generator was stolen while locked in a chain-link fence. Under the property coverage it reads: “We cover your personal business property, except to the limits below … for losses caused by the covered perils while you are in a building described on the returns. . We are seeking your thoughts and comments on the definition of “building”.

– Guam subscriber

Analysis: In insurance, the definition of a term is always important. While key terms will be defined in the policy, other terms are left open to interpretation. If a dispute arises and the matter goes to court, the courts will refer to a standard desktop reference such as Merriam Webster, as this is what most policyholders have access to.

Reply: For the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.


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