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The Commercial Property Questionnaire: Questions You Need to Ask Yourself

Disclaimer: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.


commercial property being built

When it comes to buying an insurance policy for your commercial property, it's important to be thorough while assessing your needs beforehand.


Many business owners make the mistake of underestimating their insurance needs, only to find themselves underinsured in the event of a loss.


Luckily, this is avoidable if you invest enough time and effort in evaluating your property's insurance needs.


We've put together a list of key questions you should ask yourself before moving forward with a commercial property policy.


What is Covered Under Commercial Property Insurance?


Ah, insurance - it's like a safety net. If you own a business, there's a good chance you're not comfortable operating that business without protection. The right commercial property insurance can work wonders in this regard.


But what exactly is it - and what's covered? Here's a quick overview.


The Building


Commercial property insurance will generally cover your building and the structures attached to it.


For instance, if there’s any damage to your building caused by fire, storm, or any other kind of natural disaster, your commercial property insurance could be able to help you out with the funds required to recover. It can even cover other structures such as signs, fences, and car parks.

Your Business Personal Property


If there happens to be a disaster that destroys your company’s equipment, including furniture, electronic devices, and inventory, then your commercial insurance may be able to help.


Your business personal property includes equipment, inventory, computers, documents, furniture and other tangible assets used on a daily basis.

Personal Property of Others


Having a business often means you may have other people’s personal property on the premises from time to time.


A commercial property policy can also provide coverage for the loss of a customer’s or vendor’s property if it is on your commercial property.


Questions to Ask Yourself When Insuring a Commercial Property


Are you planning on opening a business and wondering if you need commercial property insurance? Or are you already a business owner who needs to renew your insurance policy? Whatever the case may be, there are a few important questions you should ask yourself when it comes to insuring your commercial property.


How Much Does Commercial Coverage Cost?


The cost of commercial property insurance can vary depending on the type of business you operate, the size of your property, the location of the property, and the coverage limits you choose.


Always consult with an experienced insurance agent who will be able to assess your individual needs and give you recommendations on the best coverage for your business.


Do You Need Commercial Property Insurance for a Home-Based Business?


If you operate your business from home, you may think your homeowner's insurance policy covers your business property and liability. However, most homeowner's policies contain exclusions for home-based businesses.


Therefore, it's wise to have separate commercial property insurance to protect your business assets.


What is the Standard Deductible in a Commercial Property Policy?


The standard deductible in commercial property insurance varies from policy to policy, but the most common amount is $1,000 per claim.


Some policies may have higher deductibles to lower the premiums. However, it's important to keep in mind that the lower the deductible, the higher the premium, and the higher the deductible, the lower the premium.


If you're looking to reduce your commercial insurance premiums, there are several strategies you can try.


One way is to increase your deductible, which is the amount you pay out of pocket before your insurance coverage kicks in.


Another strategy is to shop around and compare different insurance providers' rates to find the best deal. You can also take steps to reduce your property's risk factors, such as installing security cameras or sprinkler systems.


Of course, the best way to lower your commercial insurance premiums is to work with a n insurance agent who knows exactly what you're looking for and what your budget might be.


What Coverage Exclusions Should I Look Out For?


Coverage exclusions are provisions in your insurance policy that limit or exclude coverage for specific events.


For example, if your policy has an exclusion for floods and your property is damaged by floodwater, your insurance provider may refuse to compensate you. Review your policy carefully and make sure you understand the exclusions that apply.


Are All Buildings Covered at 100% Replacement Cost?


Some insurance policies limit coverage to actual cash value, which is the cost of replacing your property minus depreciation, while others provide full replacement cost coverage. If you opt for actual cash value coverage, you may need to pay for some of the replacement costs out of pocket.


What is a Coinsurance Provision?


A coinsurance provision is a clause in your insurance policy that requires you to maintain a specified minimum level of insurance coverage relative to the value of your commercial property.


If you fail to maintain adequate coverage, your insurance provider will reduce the amount of compensation you receive if you file a claim. Make sure you understand how your coinsurance provision works and ensure you meet the minimum requirements.


What Do I Do If I Have a Claim?


If you suffer damage to your commercial property, you need to act quickly and follow the proper claims procedure.


Contact your insurance provider as soon as possible and provide all the necessary information about the damage. Take photos of the damage and keep all receipts related to repairs. Your insurance provider may send an inspector to assess the damage, so make sure the property is accessible.


Do I Need Coverage if I Decide to Rent My Property?


If you rent your commercial property to tenants, you're still responsible for any damage that occurs.


However, your tenants' insurance policies may provide some coverage, depending on their terms. Speak with your insurance agent to ensure you have the coverage you need when you decide to rent your property.


The Most Important Question: Where Can I Buy Commercial Property Insurance?


As you go through these questions, keep in mind this process is not just about getting the most affordable commercial property insurance; it's about getting the coverage that adequately protects your business and its assets.


Of course, you also need to find the right provider.


Carefully consider your answers to these questions and work with an insurance agent can help you find the best coverage for your needs. At Northern Insuring Agency, our team has in-depth knowledge of commercial insurance policies and can find you the perfect one so you can grow your business in confidence.


With the right plan in hand, you can rest easy knowing your business will remain protected from whatever comes your way. Get in touch today for a quote! Northern Insuring will simplify the complicated...for insurance.


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