Commercial real estate insurance protects you from losses caused by damage to property assets. Most businesses are vulnerable to the same threats as every other building—fire, flooding, vandalism, or even being struck by a vehicle that goes out of control. Many of these problems are something that cannot be reasonably prevented, making them eligible for coverage that can help repair the building or allow your company to move to a new location.
Commercial Real Estate Insurance Features
As the owner of a business, you know how difficult it is to run a smooth operation. The last thing you need is a disaster that damages your workplace so badly that you can no longer continue operating. Commercial real estate insurance makes the crisis something you can handle. Before you start shopping, though, here are a few things to keep in mind:
The first thing you should do is take stock of the company’s physical assets. This includes your building, any paper records, inventory, office equipment, signs located outside, and anything else that qualifies as a physical asset.
You may not need to insure everything the business owns. If you decide something is not worth insuring, removing it from your policy could lower your monthly premiums and make it easier to insure what truly matters.
Most policies cover either the replacement cost (RC) or the actual cash value (ACV) of the insured items. Policies that include replacement cost are more expensive, but allow for full replacement without calculating any depreciation. Actual cash value policies consider the loss of value over time, and factor this difference in to any claims on the policy.
If you’re not sure which policy options make the most sense for your company, ask one of our agents for more information and they’ll help you make a decision.