What is Covered by Commercial Property Insurance?

Commercial Property

Commercial property insurance is an integral part of a business insurance package and is used to cover any property that needs protection from major claims. This kind of coverage protects commercial property from such risks as fire, theft, vandalism, and natural disaster. Everyone from manufacturers to retailers and non-profit organizations can and should carry coverage, and can work with local providers like to resolve their needs.

Commercial Property Coverage: A Closer Look

Able to be bundled with other forms of insurance, such as commercial general liability insurance, commercial liability insurance can be a major expense for businesses that use heavy and expensive equipment, such as railroads and manufacturers. This coverage provides the same kind of protection as property insurance, but businesses can usually deduct the cost of commercial property insurance premiums as expenses.

Commercial property insurance covers a building and everything in it as well as outside of it. This can include computers, furniture and equipment, exterior signs, fencing and landscaping, and important documents.

When looking at how much a company should pay for commercial property insurance, the value of its assets, such as the building it own, is the main factor, since that’s the main part of what’s being covered. A company should take the first step of taking inventory of their physical assets on their own, looking over everything listed on the property. This information can help their provider to determine what exactly would be the replacement value and the level of coverage the business should ask for.

Location, Location, Location

In the last few years, there’s been an increase in natural disasters, such as mudslides, major storms, hurricanes, and wildfires, all playing a role in how insurers in Florida, for example, are outlining coverage for clients. There are already 20 named cyclones and major storms set for the Atlantic coastline in 2020, some reaching properties in Florida. This could put a real bind on those looking for affordable coverage, but it does not take away from the importance of having it.

Other Factors to Consider

  • Construction: Buildings made from combustible materials will come in with high premiums, while those made with fire-resistant materials could see a discount. Any additions to a structure should be considered as well in terms of how it will affect a fire rating.
  • Occupancy: A building’s use also can have an effect on its fire rating. A building will likely rate better than a restaurant or auto shop, for example, as it poses less potential risk. In a building where multiple tenants are present, a single hazardous occupant will pose a negative effect for the fire rating on the entire building.
  • Fire and Theft: Clients should consider how close they are to fire hydrants and local stations. Also, it’s important to look for things like fire alarms and sprinkler systems.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to 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.