What is Commercial
Property Insurance?
Commercial property insurance provides coverage for your commercial property against damages caused by any disaster including a storm, hurricane, fire or even burglaries. There are also other coverages as when the tenant living in the property is evicted for non-payment for rent, the insurance will cover for the losses. In incidents when tenants steals or damages some equipments in the property, then the insurance will pay for the losses incurred. Any legal costs for recovery of any equipments or things is also covered under the commercial property insurance policy.
The insurance will provide coverage for all kinds of damages created by man-made or natural disasters to the property. Many people don’t know the importance of an insurance policy until disaster strikes. When you are hit with a problem of such magnitude and your property is completely destroyed due to a hurricane or a fire accident, then you are left stranded for money to cover the damages. But people who are thoughtful enough would have already safeguarded their property with a commercial property insurance policy then you won’t worry much about your loss like the uninsured ones.
Generally a commercial property insurance is classified into 3 types:
Basic Coverage: The basic commercial property insurance will provide coverage for your property against natural disasters like fire, storm, hurricane or theft, riot or vandalism etc. But the basic coverage doesn’t cover for the equipments and assets inside the property.
Broad form coverage: Along with the basic coverage, the broad-form policy provides you an additional coverage against water damages, damages caused by snow, glass breakages, plumbing issues or a structural collapse.
Special Form: A comprehensive coverage that includes both the basic and broad form coverage along with special coverage against nuclear disaster, war, earthquakes and floods etc.
Who needs Commercial
Property Insurance?
Anyone owning a commercial property and is looking to safeguard their property against natural disasters or any other unforeseen incidents that could cause damages to your property. If you have rented out your property to a tenant and if you can’t recover from the structural damages made to the property by the tenant, then the insurance policy kicks in to provide the coverage for your losses. If your tenant steals equipment or some prized possessions from your property, then you can claim for a compensation from your insurance company for the losses.
Usually the insurance company either pays out the compensation in terms of actual cash value or replacement costs or a combination of both. In terms of actual cash value, the insurance company evaluates the damage done to the property and pays out the amount after taking into account your properties depreciation value as well. When it comes to replacement costs, the insurance company provides you an amount to repair the damages caused. Here the actual land value is not taken into account. But when your property is totally destroyed, then the amount provided by the insurance company may not be sufficient enough to rebuild the property like the original one.
With our thorough knowledge of all the services we support and the industries we serve, we make educated recommendations which help our customers take advantage of the best, most economical coverage possible. At Brookhaven Insurance agency we help you choose policies that address your needs and ensure protection. And we do it all clearly and with purpose.