A complete business property insurance plan is one of the smartest investments you can make in your business. It protects the costly, physical assets of your company such as the building, its contents and outdoor fixtures such as signs and fencing.
South Florida business owners are all too familiar with the costs of a severe windstorm and how it can shut down a business for an extended period of time, often leading to a permanent closure. But having a comprehensive business property insurance plan, you’ve got support and if purchased business income coverage to help you recover quickly.
What Does Business Property Insurance Cover?
Commercial property insurance helps cover the damage or loss of your property, like the building, items including equipment, furniture, inventory, supplies and fixtures. It can also help cover the costs to replace stolen, damaged or destroyed property, including property and equipment that isn’t yours but is in your care, custody and control.
Understanding the Basics
Commercial property insurance plans vary from policy to policy.
Basic property insurance usually covers losses caused by fire, lighting, wind and hail or acts of vandalism. Here are some of the important aspects of your business that commercial property insurance helps protect:
- Your building
- Your outdoor sign
- Your furniture and equipment
- Your inventory
- Your fence and landscaping
- Other’s property
Commercial property insurance plans pay for losses based on the replacement cost of the item or its actual cash value.
- Replacement cost (RC) refers to the amount necessary to repair, replace or build property on the same premises, with comparable materials and quality without deducting any amount for depreciation.
- Actual cash value (ACV) is the cost to replace it with new property of similar style and quality, less depreciation.
While having the insurance at replacement cost can increase the cost of your premium, you will have the benefit of knowing you are well protected and will get your business property replaced without depreciation being factored in.
What Factors Affect my Florida Commercial Property Insurance Premium?
Living in Florida, we are all familiar with the cost of property insurance being on the higher end. Here are some of the factors that can impact your premium:
- Building construction type- depending on what material your building is made from, you can not only save on the premium but also have more options when it comes to insurance companies that are willing to insure you. For example, Non-combustible buildings receive the highest discount as they have the highest fire rating. While a frame construction will be costly due to the windstorm and fire risks.
- Year built- Newer construction buildings give you more credits for being built up to hurricane code.
- Location- If your building is located east of I-95, your insurance will generally be more expensive and with higher wind deductibles because you are in the windpool.
- Fire & Burglar Alarm- Having a fire and burglar alarm that is centrally monitored not only offers your business protection, but can also give you a lower rate on your commercial property insurance.
What Does Commercial Property Insurance Not Cover?
- Commercial Vehicles
- Property damage resulting from employee error
- Personal assets
- Property intentionally damaged
- Employee wages
- General liability
- Employee injuries
- Electronic data
What Else Should be Considered When Purchasing Florida Commercial Property Insurance?
In order to make sure the property is insured correctly, it is important to have your Florida commercial property appraised before, and periodically after to make sure the insurance coverage is accurate.
Why Is The Bunker is Different?
You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…
While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers your Davie commercial property. There is no such thing as a one-size-fits-all insurance policy when it comes to your business. We are your neighbors. We protect business and people we know and care about, and that means we are always looking for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.