In commercial insurance, what does real property include?

Real property in commercial insurance refers to land and any structures affixed to it. This encompasses not only the physical land itself but also any buildings, additions, or other permanent fixtures that are attached to the land. The inclusion of structures is critical because real property insurance, which covers these assets, is designed to protect against loss or damage to the physical components of a property.

The significance of this definition becomes apparent when distinguishing it from other types of property. Movable assets, such as furniture, fall under personal property rather than real property. Additionally, intellectual property assets are intangible and therefore do not qualify as real property. Understanding this distinction is essential for accurately assessing property risk and determining the appropriate coverage in commercial insurance policies.