What’s Covered Under a Commercial Property Insurance Policy?

Commercial property insurance coverage will vary from policy to policy and commercial insurance company to commercial insurance company. When you’re customizing your coverage with your insurance broker, you may want to tailor suit it towards the needs of your businesses specific risks. Our agents will help you to determine the risks you may encounter in your area. This will make it easy for you to customize a commercial property insurance policy that fits the exact needs your company has.

Most commercial property insurance policies will protect more than just the building the business is in. Your coverage will help to safeguard inventory, the contents of the structure, liability, outside structures, the contents within the building and more. Commercial property insurance can also help to protect your paperwork, tools, equipment, electronics, furniture and important documents and paperwork. 

Commercial property insurance can even provide coverage for business assets they may have been used away from the job site. Say for instance an employee uses a laptop for a company sponsored trip and it gets stolen. If you set your coverage up correctly you may be able to submit a claim to replace the computer. 

Within your commercial property insurance policy you will also have protection against loss of income if you are unable to use the property. This portion of your policy will provide income and continuing expenses while the building is being repaired. 

Commercial property insurance will cover:

• The structure
• Equipment & tools
• Inventory
• Furniture
• Personal property
• Loss of income

Commercial Property Insurance Replacement Cost And Actual Cash Value

The 2 ways commercial property insurance companies calculate the amount of compensation you will receive for losses are Actual Cash Value (ACV) and Replacement Cosy (RC).

Actual Cash Value (ACV):

ACV is when the commercial property insurance company considers the current market value of a property that is damaged. With ACV you will receive the same amount of money, as if you sold the property. Which means if your property was to depreciate due to use and age, you may get less in compensation. 

Replacement Cost(RC):

With replacement cost you will be compensated the full amount that you would need to replace the property. 

The main difference between actual cash value and replacement cost is the amount of compensation you’ll receive if you file a claim. Please keep in ind replacement cost policies come with higher premiums due to them not having to deal with property depreciation. 

What isn’t covered under a commercial property insurance policy? 

Your commercial property insurance policy is fully customizable. You can choose to add coverage or exclude coverage from your policy. When you sit down to speak with one of our agents they will determine what risks you may want to consider protecting your company from.

Your agent will help you decide if you want to be covered against all perils or named perils. They will also go over your budget to see what works best for your business. 

Does Commercial Property Insurance Have A Deductible?

Commercial property insurance policies typically come with a deductible. The deductible is the sum of money that the you as the policyholder will pay to the claim before your actual coverage will kick in. 

Your commercial property insurance deductible will vary depending on the peril that caused the claim. Your policy may have one amount for damages caused by a storm and a different one for claims resulting from a flood. 

Please keep in mind your deductible plays a heavy influence on the rate you get. The higher your deductible is, the lower your rate is. The lower your deductible is, the higher your rate is. 

How Much Does Commercial Property Insurance Cost?

Are you wondering what you may have to pay for commercial property insurance coverage? There isn’t exactly a one policy that fits all companies. The rate you pay will depend on a variety of things and the characteristics of the property in question. The amount of coverage you need, the contents of the building and the level of coverage you want will also determine the premium you pay for commercial property insurance. 

You may also want to increase or decrease your coverage amount. The building materials used to build your property may be on the more expensive side or you may want to install fire resistance materials to lower your rate. You could also choose to put in fire sprinklers, alarm systems or other protection devices to lower your premium as well. 

You will also have commercial property insurance discounts you can take advantage of. The agents at Eugene C Yates Insurance Agency have firsthand knowledge of the best commercial property insurance discounts available. 

With all that in mind, still the most significant risk factor is the business itself. The type of industry you’re in, the amount of property you need to insure, and the dollar amount of the property. 

Commercial Property Insurance Quote

If you would like a free commercial property insurance quote, please contact us today at 916 313 6100