Commercial property insurance is often referred to as business property insurance. Commercial property insurance protects your company’s physical assets from natural calamities, fire, explosions, burst pipes, storms, theft and vandalism. Earthquakes and floods are typically not covered by commercial property insurance unless those perils are added to the policy. It protects costly physical assets of your company such as the building, its contents and any outdoor fixtures such as signs and fencing.
It is useful for smaller businesses as it can cover damages incurred, whether you own, rent, or lease your office space, or even if you work out of your home.
What Does Commercial Property Insurance Cover?
Your Commercial Property Insurance will typically cover:
- Computers
- Furniture
- Inventory
- Equipment
- Important documents
- Loss of income and
- Cost of construction for rebuilding the destroyed property.
Commercial property insurance plans will pay for losses based on:
Replacement cost (RC) is the amount necessary for the repairs, replacement or to rebuild the property on the same premises, with comparable materials and quality without deducting any amount for depreciation.
Actual cash value (ACV) is the cost of replacing it with new property of similar style and quality, less depreciation.
Typically, the premiums will be lower for policies covering property insured on ACV basis because a lower limit is used due to deduct the depreciation. The premiums are higher if you elect to insure the property on RC basis.
At EZ Online Service, we can help plan an insurance policy that will cover everything you need.
