Structural Damage

• One of the primary components of building insurance protects you against damage. Regardless of whether you have a homeowner's insurance policy or a commercial property policy, it should cover against structural damage. For example, if a pipe in your house freezes and breaks, the insurance policy would pay to have it repaired and to fix any damage that the water caused. If your building burns down, this component of your insurance would help you rebuild or repair the damage.
  
  

Liability

• Another important part of any building insurance policy is the liability component. If someone else is in your home or place of business and is injured, you could be held personally responsible. With this type of insurance coverage, the insurance company will pay for any damages that related to that. When someone sues you for being injured on your property, you can get the damages and the legal costs paid for through the liability component of your building insurance policy.
  
  

Personal Property

• Building insurance may or may not cover personal property. For example, if you own an apartment building or commercial building that you lease out, you will likely get building insurance that covers only the structure and leave it up to the tenants to insure their personal property. However, if you occupy the building, then you will want your policy to cover personal property. If you have an actual cash value policy, the insurance company will pay you for what you originally paid for the property minus depreciation. With a replacement cost policy, you get the full price of what it would cost to replace the property.
  
  

Loss of Use

• Owning a piece of property is a large financial responsibility and you most likely depend on the use of this structure. If you are a business owner, you may depend on your business location to facilitate sales. If your business location is damaged, you may not be able to continue operating as normal. With a building insurance policy, you could be reimbursed for any time that you are out of your location. For example, if you have to leave your home temporarily, the insurance company will pay for hotel accommodations and food.