Every business needs commercial property insurance, whether they own their own building, rent, or work from home. One of the main coverages in a business owner policy (BOP), commercial property insurance protects your building and its contents as well as exterior fixtures, such as a fence or exterior sign.
Through this post, you will know about what is commercial building insurance? or commercial building insurance.
What is commercial property insurance?
Commercial property insurance protects your company’s physical assets from fire, explosion, sudden pipe burst, heavy storm, theft and vandalism. However, unless those risks are added to the contract, imminent earthquakes and floods are normally not covered by commercial property insurance.
What does commercial property insurance cover?
One of the best benefits of commercial property insurance is that it covers everything in and around your building, including:
- Furniture and equipment
- Exterior signs
- Fence and landscaping
- Important documents
- Others’ property
How much does commercial property insurance cost?
The cost of commercial property insurance is mostly determined by the type of business property and its value. Someone insuring a home office will pay much less in commercial property insurance than a business with their own office building, but both have a commercial property that can be protected with a commercial property insurance policy.
1. Location: Where is the property located Is the area prone to hurricanes and other natural disasters?
2. Construction: Is your building constructed from a fireproof material? Does this include new or upgraded electrical wiring, plumbing and HVAC?
3. Occupancy: What is your industry? A real estate agency faces less risks than a restaurant or a repair shop.
4. Fire and theft protection: How far is the nearest fire hydrant and fire station? Does your business have a fire alarm and/or sprinkler system? How about a security system?
How Do I Buy Commercial Property Insurance?
If you are looking to buy commercial property/building insurance, there are generally two types of commercial property insurance: replacement cost and actual cash value.
1. Replacement cost
Replacement cost coverage pays for the reconstruction or replacement of your business property using materials of similar or comparable value. And there is no deduction for depreciation.
2. Actual cash value
Actual cash value coverage pays the present value of the damaged property. It takes into account depreciation, so a claims check will not suffice to replace lost items with new items; You will have to pay the difference. However, having real cash value coverage reduces your monthly insurance bill.
Should you buy commercial property insurance for your home-based business?
Buying commercial property insurance for your home-based business is not a wasteful task. Depending on the size and needs of your business, home-based business insurance through your homeowner’s insurance company may suffice.
But one thing to note is that commercial property insurance offers more coverage than a homeowners insurance policy, and can better protect a business and all its physical assets and equipment.
Commercial property insurance examples
Commercial property insurance can be used in different situations. For example, it can be used to claim damages.
In which there are some reasons if a fire destroys your office equipment.
Commercial property insurance is also useful in case of theft, in which you can easily report for your stolen property.
Commercial property insurance can also be used to make a claim in case of natural calamity.
The Insurance Journal, for example, reported that Hurricane Maria left insurers with 279,000 claims to resolve in Puerto Rico.
Commercial property insurance companies
Here are the 7 Best Commercial Business Insurance Companies of 2022. read all the information by clicking on the link.
- Best Overall: Nationwide
- Best General Liability: Chubb
- Best Business Owner’s Policy: Berkshire Hathaway
- Best Commercial Property: The Hartford
- Best Commercial Auto: Progressive
- Best Liquor Liability: Insureon
- Best for Self-Employed Businesses: Next Insurance