Top 5 Questions Related to Commercial Property Insurance Coverage

1. What are examples of commercial property insurance coverage?
Commercial Property Insurance covers buildings and other structures that you may rent or own, furniture, equipment, computers, records, inventory, and other property that maybe on your property.

2. What is the correct amount to cover a building for?
This will certainly vary based on type of building, cost of building, location of building and many other factors. Best practice is to have a conversation with your agent to make sure the building is covered how you intend to have it covered. For example, if a $1,000,000 property is bought and the majority of value is on the land, you may not need to insure the building for the full $1,000,000.

3. Is Inland Marine the same as Commercial Property Insurance?
The simple answer is no. There are some key differences in coverage between these 2 coverages. For example, contractors may need a lot of their equipment covered on an inland marine schedule due to moving the equipment from location to location. Commercial Property coverage may have some exclusions involved if property is taken from one location to another.

4. If I rent a building, what do I need to cover?
To properly answer this, it is best practice for your agent to review your lease agreement to make sure your insurance policy properly covers what the landlord expects. For example, some leases will require tenant to insure glass and others do not. Without having this information, your agent may leave you with gaps of coverage you didn’t intend for them too. They may also be insuring things you didn’t need them too.

5. Are all buildings covered at 100% Replacement cost with every commercial property insurance policy?
There are many options when insuring a commercial property. They are not all insured for 100% replacement cost. Coverages that cause them to not be insured for 100% of replacement cost are coinsurance options and actual cash value options. We will review your options with you to tell you how your building is insured.

Bonus question:
What is considered building coverage for commercial property insurance?

Building coverage is normally considered the actual building itself and anything that is bolted, fixed, fastened, or attached to the actual building. Many companies will even keep extremely heavy equipment that is not portable and include this under building coverage. All companies are different in what they see as building coverage and business personal property. If you have any questions in regards to your building coverage on your insurance policy, please let us know.