IMPROVEMENTS AND BETTERMENTS is the named insured's use interest in improvements and betterments that were made to a building occupied but not owned by the insured and that must remain with the building even when the named insured moves out. This type of property can be listed as a separate item with its own limit on the declarations or it can be combined with business personal property within the business personal property limit. If the items are replaced by the insured, the amount paid is based on the business personal property valuation selection. However, if the items are replaced by anyone other than the insured but for the insured's benefit, no payment is made. If the items are not replaced the loss settlement is based on the actual cash value but reduced by the percentage of the lease contract that has passed.
(Use ACORD Form #140)
Related PF&M Article: Improvements and Betterments