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Under the ISO Building and Business Personal Property (BPP) Coverage Form, which coverage pays for a tenant's fixtures that are permanently attached to the building the tenant leases?

ACoverage A — Building
Coverage B — Business Personal Property
CCoverage C — Personal Property of Others
DNeither; tenant improvements are excluded under all three coverages

Why this is the answer

The BPP form contains three coverages: Coverage A insures the building (owned by the named insured) including completed additions, fixtures, machinery, and equipment permanently installed; Coverage B insures Business Personal Property owned by the insured and used in the business, including tenant's improvements and betterments (T&I); Coverage C covers personal property of others in the insured's care. Tenants who make permanent alterations to a leased space insure those improvements under their own Coverage B, not under the building owner's Coverage A. If the improvement is destroyed and the tenant cannot restore it under the lease, the insurer pays the unamortized value. See FL Outline §I.C.2.

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