Whether you own or rent your office space, commercial property insurance is indispensable to protect your property and belongings from unexpected events. However, there are different commercial property policies to choose from, each offering different coverages. Choosing between different coverages can be challenging if you are a first-time policy buyer.
Here are some useful tips to help you choose the right commercial property insurance.
Don’t Settle for the First Policy
Some people would simply choose the policy they first see or are offered. However, it is always good to take your time and shop around. When choosing commercial property insurance, you must consider various factors, including the cost, covered and uncovered perils claims process, etc. Compare various providers in terms of these factors and choose the one that provides comprehensive coverage at a relatively low cost.
Update Yourself with Insurance Terminologies
Insurance policies include factors like premiums, endorsements, deductibles, coinsurance, actual cash value coverage, replacement cost coverage, etc. Knowing these terminologies will help you easily understand them when your provider uses them before you.
Be Aware of Unexpected Costs
Some insurance providers may not explain all the variables and costs involved in the policy upfront, so you may have to pay more than what you thought or are informed while signing the policy. For example, if you buy an insurance plan with a deductible of $20000, you must pay this amount before your policy kicks in. Though deductible is a must for every policy, the amounts vary from one policy to another. It is good to know about any unexpected/hidden costs before signing up for the policy.
Know the Tax Implications
Some insurance policies are tax-deductible, helping you save some costs on your taxes. You must discuss with your insurance provider whether or not the commercial property policy you plan to buy is tax-deductible and act accordingly.
Bundle Your Insurance Policies
If you already have other insurance policies, such as commercial flood insurance and earthquake insurance, you can bundle your commercial property insurance with those coverages. This will help you pay lower premiums while ensuring ultimate protection for your commercial property.
Understand How Claims Will Be Settled
Commercial property insurance claims will be paid in two different ways, including:
- Replacement Cost Coverage – Pays to fully rebuild or replace your business property without deducting for depreciation.
- Actual Cash Value Coverage – Pays the current value of the damaged/destroyed property, considering depreciation, so the amount may not be sufficient to replace or rebuild your property. However, this coverage comes with lower monthly premiums than replacement cost coverage.
Depending on your specific requirements and budget, you can choose between either of them.
Using these tips, you can choose the right yet affordable commercial property insurance for your high-priced business assets.
Protect Your Business Property with Hoffman Brown
If you are looking for best-in-class commercial property insurance in Sherman Oaks, CA, and the surrounding areas, contact us today at Hoffman Brown Company. We will consider your property-specific risks and requirements and customize your coverage accordingly, ensuring personalized protection at all times.