How To Get Sacramento Commercial Property Insurance

Owning a business comes with various risks and accidents you may run into. There are also many issues you could face that could cause a financial setback for your company. Risks such ass a fire, a burst pipe, and severe weather could all effect your small business in ways you may not be able to recover from with commercial property insurance.

The great thing about commercial property insurance is that it can help to cover incidents such as these and more. Commercial property insurance also known as business hazard insurance or business property insurance is it can help to cover you for various risks that could hurt your business. 

What Is Sacramento Commercial Property Insurance?

Sacramento commercial property insurance is business property insurance designed to protect business owners from financial harm. Commercial property insurance can help to cover you against fire, smoke, severe weather, burst pipes, theft, liability and lost rental income. 

An easy way to get commercial property insurance and have coverage for other business related risks is to wrap a few business insurance policies such as commercial property insurance, business interruption insurance and general liability in a business owners policy or BOP.

What Does Sacramento Commercial Property Insurance Cover?

Commercial property insurance usually covers the building your business is in, equipment, tools, inventory, supplies, computers, business furniture, valuable papers and business records. It also covers outdoor fixtures, such as fences and signs. In some situations the property of others is also covered. 

You want to check to see if your commercial property insurance policy is a “named perils” or “open perils” policy. Below is a description of both:

• A named perils policy will cover costs only from problems specifically listed in the policy, which typically include fire, theft, vandalism and wind damage.

• An open perils policy will give you broader protection. It will cover any problem except those listed as exclusions (for example, flood damage). Because of its better protection, it will cost more than a named perils property insurance policy.

What risks are covered by a Sacramento commercial property insurance?

Some of the perils typically covered by Sacramento commercial property insurance are:

• Fire
• Lightning
• Wind
• Hail
• Theft
• Vandalism

What Does Commercial Property Insurance Not Cover?

Although commercial property insurance covers a lot of risks, there are a few things it will not cover and it’s good to know what is and isn’t covered under your policy. Here’s when commercial property insurance won’t help you:

• You get in a car accident when driving the company car on a business delivery. This scenario would be covered by commercial auto insurance.

• Severe weather led to flooding in your office building. Flood damage is not covered under commercial property insurance. You’ll have to buy a separate flood insurance policy to protect your office space from the costs of flood damage.

• You accidentally damage a client’s wall while visiting them on business. This type of property damage would be covered under general liability insurance.

Who Needs Sacramento Commercial Property Insurance?

If you’re a small business owner that operates your company out of a strip mall or your home, commercial property insurance can benefit your company. If you are not covered and the worst is to happen you will be forced to pay out of pocket for any damages. If the repairs or rebuild are too expensive for your company to handle it could end up meaning you have to shut the doors. 

The types of small business owners who purchase commercial property insurance typically:

• Own, rent or lease an office, store or building
• Own, rent or lease tools and equipment
• Have inventory or products
• Depend on business assets like computers and office equipment
• Have business records and documents

How Much Does Commercial Property Insurance Cost?

The average cost of Sacramento commercial property insurance is roughly $65 per month. Owning the property isn’t required to get commercial property insurance. Most home based businesses can also benefit from Sacramento commercial property insurance. You can get coverage if you rent, lease, or own the building you do business out of. 

Please keep in mind that commercial property insurance is a custom policy and not all businesses will receive the same premium. There are many factors that will help your insurance provider determine what your rate is. 

The cost of your commercial property insurance policy will also depend on the value of the property and the assets within the building. A home office may come with a lower premium than a warehouse. 

Some of the other things that may effect your rate are as follows:

Your business location. Is it prone to wind or rain storms? Severe weather can damage a business’s property.

The construction of your building. Was the building made with fireproof construction materials? Is the plumbing and the electrical up-to-date?

Your industry. An accountant’s office will likely carry far less risk than a busy delicatessen.

Protection against fire and theft. How close is the nearest fire station? What kind of fire alarm system and sprinkler system does your business have? What type of security system is on-site to thwart thieves?

Replacement cost coverage vs. actual cash value coverage

There are usually two varieties of commercial property insurance: replacement cost and actual cash value.

• Replacement cost coverage will pay to rebuild or replace your business property using materials of the same or comparable value. There is no deduction for depreciation.

• Actual cash value coverage will pay the present-day value of the property that was damaged. This takes into account depreciation, so a claims check won’t be enough to replace what was lost with new items; you would have to pay the difference. However, having actual cash value coverage will reduce your monthly insurance bill.

Commercial Property Insurance Quote

If you would like a free commercial property insurance quote, please give us a call today at (916) 313 6100.