Sacramento Business Insurance: Commercial Property Insurance

When it comes to commercial property insurance it can be found in many different varieties such as inland marine, builders risk, cargo insurance and more. You can get commercial property insurance as a stand alone policy or packaged within a Business Owners Policy (BOP).

Commercial property insurance coverage

A commercial property insurance policy will protect three forms of your company’s property. It will cover your businesses personal property, the actual building your company is in and the personal property of others. 

The structure your company is in:

Commercial property insurance will protect the structure your business is in. It will also cover completed additions, outdoor and indoor fixtures, and permanently installed equipment.

The business’ personal property:

Your commercial property insurance policy will also cover the businesses personal property such as furniture, fixtures, inventory, machinery and tools, equipment, electronics, and more.

Others personal property:

Business property insurance will protect the property of others as well. This includes property that is in your care, control or custody. It can even include property you’re borrowing.

What is covered under a commercial property insurance policy

Most commercial property insurance policies cover the building the business is in, equipment, tools, furniture, inventory, supplies, electronics, business records and more. It will also cover outdoor fixtures like fences and signs.

You will want to check to see if you have a named peril policy or an open peril policy.

Named perils: this policy will cover issues specifically listed in the policy typically fire, theft, vandalism and wind damage.

Open perils: this policy will offer broader coverage. It can cover issues listed as exclusions such as flood damage. This commercial property insurance policy will also come with higher premiums.

Value a property for commercial property insurance

You will want to know what type of property limit you need to purchase. The two most common are actual cash value, & replacement cost. Depending on what you decide, they will all play a major factor in determining your rate. 

Actual cash value: ACV is basically replacement cost minus the depreciation. The contractor will give you a figure to replace the damaged portion of the property and then you will deduct the percentage of the total life that part of the building would have had.

Replacement cost: Replacement cost is the most commonly used. Replacement cost replaces your property with new construction and does not account for depreciation.

Why do commercial property insurance premiums increase?

Your commercial property insurance rates may go up for a variety of reasons. It could have to do with your claim history. It could also have to do with the natural disasters that have taken place in your area over the recent years. 

The cost of construction materials, labor and service costs can effect your insurance rate as well. Depending on where you are you may want to keep an eye on building costs to make sure you have adequate coverage in case the worst was to happen. 

If you have additional questions regarding commercial property insurance or would like a custom business insurance quote, please give us a call today at 916 313 6100