If you’re looking to purchase or own any sort of commercial property, you’ve already made a big investment. Owning property can come with a huge amount of benefits. In fact, most people consider real estate one of the smartest investments.
However, failure to properly protect this investment with commercial property insurance can be a huge mistake. This insurance can help to ensure that you don’t suffer a great financial loss should something happen to the property that you own.
What do you need to know about commercial property insurance and how to get it? Read on and we’ll walk you through what you need to know.
What Is Commercial Property Insurance?
As you might imagine from the name itself, commercial property insurance is simply an insurance policy that is put in place to protect and cover any kind of commercial form of property.
This insurance policy would help financially protect the owner should any sort of disaster happen at the property: fire, burglary, vandalism, or the impact of natural disasters.
It doesn’t matter what kind of business is run out of a particular commercial property, as long as it can be proven to be for business and not for residency, a person can work with commercial property insurance carriers to protect from future harm.
Many carriers will bundle this form of insurance with other business-related policies, such as general liability insurance.
Commercial Property Insurance Cost
How much might it cost to get this kind of insurance policy for your business? It will depend on a number of factors. An insurance company will need to do a risk assessment to determine how likely it seems you might run into an emergency situation.
The less likely it seems they’ll need to cover you in the future, the lower cost you’ll be able to get a policy at.
An insurance company will look at the location and construction history of a property when deciding on the cost of a policy. Any good independent insurance agency should be transparent with you when coming up with their asking price.
Building without proper fire and theft protection will be more expensive to take coverage out for than those who do have these features.
What Isn’t Covered
There are a few elements of your business that might not be covered by a commercial property insurance policy. If equipment in your place of business breaks down because of a lack of care or simply wear and tear, a policy likely won’t cover this.
If there is an interruption to your business due to non-physical matters, such as the local government shutting businesses down, then you will not be able to claim on your insurance. Business needs to have been interrupted due to damage to the property itself.
Understanding Commercial Property Insurance
If you’re considering getting commercial property insurance for your place of business, you’ll need to learn the ins and outs of how this kind of insurance works. This information can help.
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