Understanding commercial property insurance may be hard. With so many moving parts involved it’s tough to nail down exactly what is covered and for how much. The thing to understand about commercial property insurance is that it doesn’t come in just one size, one outline. A misconception is that it comes in either a one-size fits-all outline or small, medium, large approach. This kind of value system would end up actually under-insuring a premium.
Every business has its own needs in terms of insurance. Knowing this, businesses of all types and sizes should look for tailor-fit coverage. And before this happens it’s best to look at what affects the overall price and coverage of property insurance.
Factors That Affect Property Insurance
There are many different ways in which property insurance rates can be affected, either jumping the overall price or maybe even cutting it down somewhat. Here are some things to look out for:
- Geography: Environmental risks play a huge role in determining coverage types and costs. Depending on the area of your business your coverage could call for some major natural disaster insurance such as guarding against tornadoes, landslides, hurricanes, floods, etc. What’s more, land value and local law can affect the overall price too.
- Security: Typically more urban-centric businesses can see rates jump due to high-crime areas. If your business is in an area known for crime of any kind this could affect price in a negative way. Additionally, your business’s actual service can affect costs, especially if it involves dangerous products or activities such as mining.
- Physical size: Have a big factory or big production center? A small cafe or boutique? The size of your business certainly acts as a factor in price. More space to insure means more money out of your pocket.
- Equipment on premises: Heavy industrial equipment or factory-type equipment will tack on more in terms of cost. Have older equipment? This will also cost more to insure as older equipment tends to break down more and come with high repair costs.
Personalizing A Plan
It’s important to take everything that makes your business yours into consideration. From the age of your building to everything inside its walls can affect the price of coverage. But insurance companies typically allow business owners to custom build a plan that works for them. Think of it like shopping for a car or home. You’re looking for specific needs and there’s a plan out there that fits what you have. There are endless options available, so it’s important to know what can work for you in the long run.
About Newman Crane & Associates Insurance
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Since 1965, Newman Crane & Associates Insurance has been helping Central Floridians make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (407) 859-3691 for a consultation.