It doesn’t matter what type of business you run, getting the right commercial property insurance is critical.
Commercial building insurance will cover costs for repair or reconstruction of commercial property, should it be destroyed.
In the next article, we’ll discuss commercial building coverage and explain what it covers.
What does Commercial Building Insurance cover?
Commercial building insurance protects you from the costs of rebuilding or replacing your business premises. It will protect against unexpected events like burst pipes and falling trees, fires, flooding, storms or theft.
Two types of commercial property insurance are available: contents and buildings. Contents insurance covers items inside buildings, such as IT equipment or stock. Buildings insurance covers any damage to the building.
Usually, commercial building coverage will include:
Property Owners’ Liability
Liability insurance will pay for any property damage or injury that is caused by negligence. Because you are the owner of property, you will be responsible for the maintenance and repair of it.
Loss of Rent
If your property becomes uninhabitable as a result of an insurable condition, your insurance policy will provide coverage for rent you later cannot collect.
Contents of the Landlord
Your insurance policy will also include coverage for the landlord’s contents. The landlord’s contents are basically the same thing as the building. They include tables and chairs and not doors, cabinets, or walls.
One example is a commercial property that may be available for rent with equipment such a commercial-sized kitchen.
What does commercial property insurance not cover
You will usually find that commercial property insurance policies typically do not cover general wear, such office carpet staining or thinning. Other damage such as terrorism may not be covered. However, some specialist insurance companies may be able provide additional coverage.
Why Commercial Building Insurance?
Even though commercial building insurance does not have to be required, many mortgage providers will require you to have the proper insurance coverage before they can approve your loan application.
It doesn’t really matter how big or small your business is, a commercial insurance policy can help you protect against damages to the building.
Finding the Right Commercial Buildings Insurer
To ensure that your commercial property is fully covered, there are many things to think about when buying commercial building coverage. However, it is not a good idea to rush to buy the most affordable policy.
Notably, your business premises may be more vulnerable than others to break-ins and crime if they are not being used. Unoccupied properties are usually excluded from insurance policies. Therefore, if you have a commercial building policy, convert it to an unoccupied property policy.
Before you reach out to any insurance company, make sure you carefully consider the level of coverage that you require and any additional features you desire.
Because your property could be one of your biggest investments, you should ensure your assets are properly protected. You can lose your investment and property if there is one problem. A commercial building policy will protect your investment.
