Commercial Property Insurance - South Florida Insurance Ladies

What Is commercial property insurance?

When you own your own business and have commercial property, it is important to understand everything about property insurance.

Commercial Property Insurance is a key factor in reducing your risk as a business owner And ensuring financial protection for your employees, your customers, and your livelihood.

If your business suffers a loss or damage from a fire, a theft, a storm, a plumbing disaster, or other physical destruction, a commercial property policy will protect your property and its contents. Many times, these policies also cover any loss of income or higher business expenses that occur because of the damage. 

Business property insurance is something every company needs – whether
you own your own building, lease or work from home. A variety of businesses,
including manufacturers, retailers, service-oriented businesses, and not-for-profit
organizations carry commercial property insurance. It is generally bundled
together with other forms of insurance, such as commercial general liability
insurance.

Commercial property insurance definition

Commercial property insurance protects your company’s physical assets from

Fire

Explosions

Burst Pipes

Storms

Theft

Vandalism

Earthquakes and floods typically aren’t covered by commercial property insurance, unless those perils are added to the policy.

How much does commercial property insurance cost?

Determining how much you’ll pay for commercial property insurance largely depends on the value of all of your business assets, including your building.
Other factors that determine your premium are based on risk, including:

Location

Is the area prone to storms and other natural disasters?

Construction

Is your building constructed with fireproof materials? Does it have new or upgraded electrical wiring, plumbing and HVAC?

Occupancy

What is your industry? A realtor’s office generally carries less risk than a restaurant or repair shop.

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?

What does commercial property insurance cover?

Commercial property insurance covers your building, everything in it and just outside of it, including:

● Computers
● Furniture and equipment
● Exterior signs
● Fence and landscaping
● Important documents
● Inventory
● Others’ property

When determining how much a company should pay for commercial property insurance, the value of a business’ assets, including the building, is the primary factor. Before meeting with an agent to discuss coverage, a company should take an inventory of their physical assets located at their property.

This information will help determine what exactly would be the replacement value and the level of coverage the business should get.

Factors Considered in a Commercial Property Insurance

Location

Buildings in cities or towns with excellent fire protection typically cost less to insure than buildings outside a city or in areas with limited fire protection.

Fire and theft protection

How far are the nearest fire hydrant and fire station? Does the business have a fire alarm and sprinkler system? How about a security system?

Construction

Buildings made of potentially combustible materials will have higher premiums, while those made of fire-resistant materials could earn a discount. Using wood partitions, floors, and stairways in an otherwise fire-resistant building will likely nullify any rate reduction. Fire-resistant interior walls, floors, and doors can help maintain a good fire rating.

Occupancy

A building's use also affects its fire rating. An office building will likely rate better than a restaurant or auto repair shop. In a building with multiple tenants, one hazardous occupant will negatively affect the fire rating of the entire building. If a business is in a building with a more hazardous tenant, premiums will be higher.

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