Final answer:
Adding a room to a leased building typically would need to be addressed under a tenant’s existing BPP policy or through additional coverage, as BPP normally covers business personal property and not the building itself.
Step-by-step explanation:
If a tenant with a Building and Personal Property Coverage Form (BPP) insuring only its Business Personal Property adds a room to its leased building, it should be noted that typically, a BPP covers business personal property located at the premises listed in the declarations and not the building itself. This generally includes furniture, fixtures, machinery, equipment, and the inventory owned by the company.
However, improvements and betterments made to a rented building are sometimes considered part of the personal property, especially if installed at the tenant's expense. It's important for tenants to review their policy to determine if coverage needs to be adjusted or additional coverage obtained to protect their investment in the improvements.