Shopping for a commercial property insurance policy can be complicated. You might purchase a policy and end up with shocking revelations when it’s time to file a claim. This is why it is important to have extensive knowledge of the coverage, exclusions, etc., when shopping for commercial property insurance.
Things You Need to Do Before Purchasing Commercial Property Insurance
Instead of purchasing an insurance policy, you don’t know much about, following the steps given below will help you acquire more knowledge on the subject.
1. Make Comparisons: Don’t just focus on one insurance company or provider to settle your needs. Instead, compare multiple policies to make sure you have the best deal suited for you. You can get someone who knows a lot about insurance policies and whom you trust to help you in the process.
2. Be Up-to-date with Ratings: There are score ratings of insurance carriers based on their stability and financial strength, which can change at any time. So, be sure to stay updated even if it’s an insurer you’ve had for years. This will help you know exactly what you’re getting yourself before you sign up for the policy.
3. Consider Policies with Replacement Cost Coverage: Getting a policy on a replacement cost basis is beneficial in the sense that damaged property will be repaired or replaced without deduction or depreciation.
4. Get Special Form Coverage: Unlike the Basic or Broad Form Coverage, which only covers specifically listed perils, the Special Form Coverage offers you the broadest type of protection. It covers all kinds of sudden and accidental loss unless it is specifically excluded from the policy.
5. Steer Clear of Coinsurance: Getting coinsurance might deter you from carrying enough insurance on a property which can attract a penalty for building owners.
6. Regard Current Construction Code: Old buildings and structures need upgrades from time to time to comply with the current construction codes. Funds required to cover the difference between existing, outdated systems and modern regulations are provided by the Ordinance or Law coverage.
7. Protect Your Sewer: Get a policy that protects you by covering water backup from the sewer system within your building.
8. Be Your Neighbor’s Keeper: Watch out for your neighbor’s property, as damages to your neighbor’s structure caused by water from your building can be covered by the Water Damage Legal Liability policy.
9. Protect Your Rental Income: If damages to your rental property force your renters to evacuate temporarily, a Loss of Rents coverage will cover rentals lost during repairs for a period of 12 months.
There are a few things you need to do before buying commercial property insurance. Our experts at CF&P Insurance Brokers can help assess your specific commercial property insurance coverage needs and close any protection gaps. To learn more, don’t hesitate to call us at (925) 956-7700 today.