Commercial property insurance helps a business owner sleep at night. This coverage ensures that both the buidling structure and its contents are protected against unforseen events sush as fire, tornadoes, and even vandalism. Any business, large or small that has assets in its company name, should consider getting commercial property insurance
This category of insurance protects your real property, such as buildings, warehouses, and factories. Events such as hurricanes, fires, and break-ins are covered. Commercial property insurance also covers your personal business property to include office furniture, machinery, and vehicles kept on site.
It pays for losses based on the actual value of the property. Coverage can be broken down into either replacement cost (RC) or actual cash value (ACV), depending on what your agent recommends.
Replacement cost (RC) is the amount you receive to repair, replace, or rebuild the damaged property. The insurance company, in this case, will not deduct depreciation from the total amount of the claim. On the other hand, with actual cash value (ACV), it is the total to replace the damaged property with a similar style and quality, minus depreciation.
There are many extended coverage options to consider when purchasing this type of insurance. For example, you can add additional properties to your existing policy. These can include outdoor property, buildings located off the main premises, and structures that have been constructed or acquired after the policy has already come into effect.
It not only covers the cost of replacing valuable buildings and equipment, but it can also protect you from liability. If, for example, a vehicle owned by a customer gets damaged while on your property, that vehicle is covered. It also protects you and others from vandalism and theft. Combined with outstanding tax benefits, commercial property insurance is a must for any company serious about protecting its assets.