How much does California commercial property insurance cost?

The cost of commercial property insurance in California depends on many factors. Some of these factors may include the size of the building, the value of your merchandise or equipment, the area you’re located in, the number of employees, how many customers come into the business daily, and many more.

What is the average cost of commercial property insurance?

The average cost of commercial property insurance in California is roughly $900 annually, or $75 per month. The after mentioned policy will come with an average deductible amount and limited coverage amounts. 

Most of the clients Eugene C Yates Insurance Agency customers pay less than the average and this is due to our wonderful agents being so knowledgable when it comes to business property insurance discounts and rebates. Even though our clients are able to get amazing discounts on great coverage, many small business owners will choose a business owners policy or BOP. A business owners policy will have three basic coverages every small business needs such as general liability, business interruption insurance and commercial property insurance.

What factors impact property insurance costs?

There are many factors that will help an insurance provider determine the cost of your commercial property insurance policy. Below are some of those factors:

Location:

Where your property is located will play a major role in what your rate may be. If you’re located in an area that has a high claim history or there is a high crime rate, then more than likely you’ll be paying a higher rate than someone who isn’t. Land value and local law can also affect what premiums you pay.

The size of your business:

If you have a large company with a lot of square footage, theres a good chance you’ll experience higher rates than a small office or a rented room.

Safety and security:

If you run a business that contains toxic materials, or you engage in dangerous activities, there’s a good chance you’ll encounter higher premiums than a company that doesn’t have these risks. If you put security measures in place such as security cameras or fire sprinklers, there’s a great chance your insurance provider will offer you a discounted rate.

How old is the building you’re in:

The age and condition of the building you do business out of will play a major role in what rate you pay for commercial property insurance. Old wiring or plumbing can cause future problems. Typically newer businesses do not run into these issues. 

Fire protection:

Commercial properties with easy access to fire hydrants or a close by fire station may find out they can get lower rates versus a building far from each. Fire sprinkler systems and fire alarms help reduce insurance costs, too.

The type of equipment your comp[any uses:

If your business requires heavy expensive equipment, you may encounter a higher premium than a company that does not. 

Age of equipment:

If you have equipment that is hard to repair or possibly obsolete due to the age of the product, there is a very good chance you will pay a higher rate than a company that has easy to fix equipment. 

Property Valuation method:

The type of policy you choose will also play a factor. Do you need a replacement value policy or an actual cash value policy? Replacement value coverage typically comes with higher rates than an actual cash value policy. 

The types of hazards that are covered under the policy:

If your commercial property insurance policy covers open perils it will have higher premiums than one that covers named perils. Open peril coverage protects against all losses expect for those specifically noted in the policy. Named peril policies protect against losses that are listed in the policy.

Bundle commercial property insurance in a business owners policy for extra savings

Many small business owners decide to go with a BOP or business owners policy. This is a great option because you receive 3 critical insurance coverages in one easy to use policy. A BOP contains commercial property insurance, general liability insurance and business interruption insurance. Purchasing a BOP is an easy way to save money on three policies that every business owner needs. 

There are 3 different types of coverage that you can purchase to protect your commercial property:

• Basic Form: This policy covers property damage related to fires, vandalism, smoke, theft, and “common natural disasters.” The natural disasters that are covered by a basic policy usually include weather events such as wind, hail, lightning strikes, and wildfires, although there could be exclusions made by the insurer based on your business’s risk profile.

• Broad Form: In addition to covering everything that the basic form policy covers, a broad form policy will also protect against water damage, collapsing structures, falling objects, and the weight of snow or ice.

• Special Form: This policy will additionally protect your property from every other type of peril as long as that peril has not been intentionally excluded from your policy by the insurer.

Common California Commercial Property Insurance Exclusions

Business owners have the option to create the policy they need to protect their company. Although, there are still certain perils an insurance provider may not cover. 

The majority of commercial property insurance providers will not cover personal assets or property damaged that serves zero business purpose. 

Other common exclusions for commercial property insurance policies include:

• War
• Earthquakes
• Acts of God
• Specific Types of Fires
• Specific Smoke Damage

Commercial Property insurance Quote

If you have additional questions about commercial property insurance or would like a free and custom business property insurance quote, please give us a call today at (916) 313 – 6100