How To Determine The Right Commercial Property Damage Coverage

Business owners should always have commercial property damage coverage as it protects their assets from damages such as burglary or vandalism, or natural disasters and fires. Knowing that you have a safety net in case of any unfortunate loss can provide comfort that eases worries over such occurrences. It is important to be aware of the scope of damage your insurance policy covers so that you can safeguard your business from potential risks.

What is Commercial Property Damage Coverage For?

Owning any kind of commercial property – from small businesses or restaurants to big corporations or buildings – face a set of potential risks. These include the common repair and replacement of property and its contents, such as inventory and furniture. Some policies can even cover the income loss your business may suffer due to these damages.

Before picking a commercial property insurance coverage plan, business owners ought to review what needs to be covered based on the vulnerabilities of their business and property. Determine what needs to be covered and take note of the costs of your coverage, including any premiums that your insurance company may charge.

Things you should take into account to determine the right commercial property damage coverage include:

The Property Value

How much coverage to purchase is heavily dependent on the overall value of your property. When calculating this value, remember to include the value of the contents right alongside the structure itself; furniture and equipment such as computers and desks should be counted in the overall value. You can simply fall back on the purchase price of these items if you keep documentation on them.

Business owners must ensure that the total replacement cost value of the property is covered in the insurance policy when calculating the value of the property itself. This refers to how much money it will cost for the business owner to fully rebuild and resume normal operations (with manpower and material resources) after a disaster such as a fire.

Costs of Insurance Premiums

The insurance premium is a set amount of money to be paid for the policy itself and is calculated using particular factors specific to each case, such as:

  • Location of Property. If your commercial property is located further away from facilities such as police stations and fire stations, or in an area that is prone to crime or natural disasters, it may require more expensive coverage.
  • Property Intended Use. Restaurants may face a higher coverage cost than an office building due to kitchen hazards.
  • Construction and Age of Property. These can affect the safety and structural integrity of the property itself, making it more prone to damage. For example, properties made of wood may suffer greater damage than one made of brick.

Claiming Damage Coverage

The process of selecting the most suitable commercial property damage coverage can be troublesome and time-consuming. Even after choosing the best plan, there can be hiccups that arise during the claiming process, such as disputes over the value and therefore the amount of money that can be claimed. For this scenario, Stone Claims Group is ready to provide you with a trusted commercial insurance property appraiser to resolve the issue for you.


    Notes (optional): "Please feel free to address anything else (your title, number of buildings, number of stories, number of units, etc.)"