Commercial Tenant Contents Policy
A Commercial Tenant Contents Policy is tenant BPP — business contents insurance for movable inventory, furniture, equipment, and often tenant improvements. Progressive says BPP covers movable assets other than buildings; McKnight says landlord building insurance does not cover anything inside your space; Moon says an owner's policy on the building is not written to be the tenant's contents policy.
Last updated: September 14, 2026
Commercial Tenant Contents Policy
| Claim | Listed | URL |
|---|---|---|
| BPP protects movable physical assets | Business personal property insurance — or BPP insurance — protects the movable, physical assets that your business owns or rents. For example, it might cover computers, office supplies, inventory, and other goods stored on-site at your business if they're damaged, destroyed, or stolen. | Progressive BPP: Movable physical assets |
| BPP sometimes called business contents insurance | Business personal property insurance is sometimes called business contents insurance. | Progressive BPP: Business contents insurance |
| BPP covers movable assets other than buildings | BPP insurance covers movable assets other than buildings or properties. | Progressive BPP: Other than buildings |
| Improvements / custom fixtures can be BPP | Improvements made to your office space, such as custom fixtures | Progressive BPP: Office improvements |
| Replacement policies typically cost more than ACV | Policies that cover the replacement of your assets typically cost more than "actual cash value" policies, which pay out based on the depreciated value | Progressive BPP: Replacement vs ACV |
| TIBs become tenant insurable interest | Tenant improvements and betterments become your insurable interest, even though they're attached to a building you don't own. | BPP Insurance: TIBs insurable interest |
| Landlord policy usually doesn't cover TIBs | A common and costly mistake is assuming the landlord's policy covers them. It usually doesn't. | BPP Insurance: Landlord usually doesn't |
| TI covered perils include fire, water, vandalism | Covered perils: fire, water, vandalism, and more | BPP Insurance: Fire, water, vandalism |
| Core BPP = furniture, equipment, inventory, electronics, fixtures | furniture, equipment, inventory, electronics, and fixtures | BPP Insurance: Core BPP list |
| Replacement cost valuation available for TI | Replacement cost valuation available | BPP Insurance: Replacement cost available |
| Landlord building covers structure; not insides | For tenants, this is especially important to understand: your landlord's building insurance covers the structure — walls, roof, foundation. It does not cover anything inside your space. Your furniture, equipment, inventory, and improvements are your responsibility to insure. | McKnight: Structure not insides |
| BPP = equipment, furniture, computers, tools, inventory, contents | Equipment, furniture, computers, tools, inventory, and other contents at your business location | McKnight: BPP contents list |
| TIBs = fixtures, built-ins, custom buildouts | Tenant improvements & betterments — Renovations and improvements you made to a leased space — fixtures, built-ins, and custom buildouts that belong to you | McKnight: TIBs definition |
| ACV vs replacement cost valuation | coverage is typically written at either actual cash value (what the property is worth today, after depreciation) or replacement cost (what it would cost to replace it with something new and equivalent) | McKnight: ACV vs replacement cost |
| Water damage from burst pipes among covered causes | water damage from burst pipes | McKnight: Burst pipes water |
| Owner building policy ≠ tenant contents policy | An owner's policy on the building is not written to be the tenant's contents policy. | Moon: Owner policy ≠ tenant contents |
| Tenant property = stock, furniture, equipment | Tenant property — stock, furniture, equipment, and property of others | Moon: Tenant property stock/furniture |
| Common tenant BPP exposure | Stock, furniture, equipment, inventory — Usually not landlord property — Common tenant BPP exposure | Moon: Common tenant BPP exposure |
| Build contents limit from inventory, not memory | Tenant BPP — Limit built from an inventory, not memory | Moon: Inventory not memory |
| Landlord policy won't cover tenant belongings | While your landlord is typically responsible for protecting the premises, their policy won't cover your belongings or disruptions to your business. | Progressive renters: Won't cover belongings |
| BOP covers BPP like furniture, equipment, inventory | It covers your business personal property, like furniture, equipment, and inventory. | Progressive renters: BPP covered |
| Building itself is landlord's responsibility | The rented building structure. Insuring the building itself is your landlord's responsibility. | Progressive renters: Building landlord's |
| CP 00 10 three covered-property buckets | The CP 00 10 form divides covered property into three buckets: buildings, business personal property, and personal property of others in the insured's care. | LegalClarity: CP 00 10 three buckets |
| BPP = furniture, equipment, stock or merchandise | Business personal property sweeps in furniture, equipment, stock or merchandise, and similar items you own and use in the business. | LegalClarity: BPP sweeps in |
| Basic Form named perils include sprinkler leakage | The Basic Form uses a named-perils approach, covering 11 specified events: fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. | LegalClarity: Basic Form sprinkler leakage |
| Broad Form expands Basic + appliance leakage | The Broad Form includes everything in the Basic Form and adds falling objects, weight of snow or ice, water damage from appliance leakage, and collapse. | LegalClarity: Broad Form |
| Special Form all-risk unless excluded | The Special Form flips the framework. Instead of listing what is covered, it covers all risks of direct physical loss unless a specific exclusion applies. | LegalClarity: Special Form |
| Internal broken sprinklers more likely covered | Damage from internal sources, like burst pipes and broken sprinkler systems, is more likely to be covered than water entering from outside. | Progressive water: Internal sprinklers |
| Sudden and accidental typically covered | Sudden and accidental water damage is typically covered, but issues that develop over time probably aren't. | Progressive water: Sudden and accidental |
| BOP can cover sprinkler system malfunction | In many cases, commercial property insurance can cover water damage caused by sudden and accidental incidents, such as a burst pipe, unexpected leak, or sprinkler system malfunction. | Progressive water: Sprinkler malfunction |
What a Commercial Tenant Contents Policy covers
Progressive Commercial states that business personal property insurance — or BPP insurance — protects the movable, physical assets a business owns or rents (computers, office supplies, inventory, and goods on-site), that BPP is sometimes called business contents insurance, and that it covers movable assets other than buildings, including improvements made to office space such as custom fixtures and business furniture. Business Personal Property Insurance lists core BPP as furniture, equipment, inventory, electronics, and fixtures, and that tenant improvements coverage is part of the BPP program with covered perils including fire, water, and vandalism.
McKnight Insurance states that for tenants, the landlord's building insurance covers the structure — walls, roof, foundation — and does not cover anything inside your space; furniture, equipment, inventory, and improvements are the tenant's responsibility. Moon Insurance states that an owner's policy on the building is not written to be the tenant's contents policy, and that tenant property — stock, furniture, equipment — is a common tenant BPP exposure. Progressive Commercial renters guidance states that while the landlord typically protects the premises, their policy won't cover tenant belongings, and that insuring the building itself is the landlord's responsibility.
Tenant improvements and betterments vs landlord structure
Business Personal Property Insurance states that tenant improvements and betterments become the tenant's insurable interest even when attached to a building they don't own, and that assuming the landlord's policy covers them is a common costly mistake — it usually doesn't. McKnight Insurance states that TIBs are renovations and improvements to a leased space — fixtures, built-ins, and custom buildouts. Progressive Commercial states that replacement policies typically cost more than actual cash value policies that pay depreciated value; McKnight says coverage is typically written at either actual cash value or replacement cost. Moon Insurance states that a tenant BPP limit should be built from an inventory, not memory.
| Item | Typically landlord building | Typically tenant contents / BPP | Basis |
|---|---|---|---|
| Structure — walls, roof, foundation | Yes | — | McKnight; Progressive renters; LegalClarity CP 00 10 |
| Tenant stock / furniture / equipment / inventory | — | Yes | Progressive BPP; Moon; McKnight; BPP Insurance |
| Computers / electronics / tools | — | Yes | Progressive BPP; McKnight; LegalClarity |
| Tenant improvements & betterments / custom fixtures | — | Often yes (tenant insurable interest) | BPP Insurance TI; Progressive BPP; McKnight |
| Sprinkler leakage / sudden accidental sprinkler malfunction | On covered building property | On covered business property | LegalClarity Basic Form; Progressive water |
Sources: Progressive Commercial BPP/renters/water, Business Personal Property Insurance tenant-improvements, McKnight Texas commercial property, Moon landlord-vs-tenant, and LegalClarity CP 00 10.
CP 00 10 forms and sudden accidental sprinkler water
LegalClarity states that the ISO Building and Personal Property Coverage Form (CP 00 10) divides covered property into buildings, business personal property, and personal property of others. Building coverage includes the structure plus completed additions and permanently installed fixtures; business personal property sweeps in furniture, equipment, stock or merchandise. Basic Form named perils include sprinkler leakage; Broad Form expands Basic; Special Form covers all risks of direct physical loss unless a specific exclusion applies. Progressive Commercial states that damage from internal sources like burst pipes and broken sprinkler systems is more likely covered than outside water, that sudden and accidental water damage is typically covered, and that commercial property can cover a sprinkler system malfunction.
What is a Commercial Tenant Contents Policy?
A Commercial Tenant Contents Policy is tenant business personal property — also called business contents insurance — that protects movable inventory, furniture, equipment, and often tenant improvements and betterments. Progressive Commercial states that BPP covers movable, physical assets other than buildings; McKnight Insurance states that landlord building insurance covers the structure and does not cover anything inside your space; Moon Insurance states that an owner's policy on the building is not written to be the tenant's contents policy.
Does the landlord's building policy cover tenant contents?
McKnight Insurance states that the landlord's building insurance covers the structure — walls, roof, foundation — and does not cover anything inside your space; furniture, equipment, inventory, and improvements are the tenant's responsibility. Moon Insurance states that an owner's policy on the building is not written to be the tenant's contents policy. Progressive Commercial renters guidance states that while the landlord typically protects the premises, their policy won't cover your belongings.
What does business personal property or business contents insurance cover for a tenant?
Progressive Commercial states that BPP insurance protects movable, physical assets the business owns or rents — computers, office supplies, inventory, and goods on-site — and that BPP is sometimes called business contents insurance covering movable assets other than buildings, including improvements made to office space such as custom fixtures. Business Personal Property Insurance lists core BPP as furniture, equipment, inventory, electronics, and fixtures, with tenant improvements coverage part of the BPP program.
What do Basic, Broad, and Special forms say about sprinkler leakage for contents?
LegalClarity states that the CP 00 10 form divides covered property into buildings, business personal property, and personal property of others, and that Basic Form named perils include sprinkler leakage. Broad Form includes everything in Basic and adds falling objects, weight of snow or ice, water damage from appliance leakage, and collapse. Special Form covers all risks of direct physical loss unless a specific exclusion applies. Progressive Commercial states that sudden and accidental water from broken sprinklers or sprinkler system malfunction is more likely covered than outside water.
What are tenant improvements and betterments under a contents policy?
Business Personal Property Insurance states that tenant improvements and betterments become the tenant's insurable interest even when attached to a building they don't own, and that assuming the landlord's policy covers them is a common costly mistake — it usually doesn't. McKnight Insurance states that TIBs are renovations and improvements made to a leased space — fixtures, built-ins, and custom buildouts. Covered perils include fire, water, and vandalism, with replacement cost valuation available.