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19 August, 2021 0
A Guide To Obtaining The Best Commercial Property Insurance In CA

A Guide to Obtaining the Best Commercial Property Insurance in CA

Every business has the physical assets it needs for operational success. These assets—or commercial property—should be protected against common hazards like fire, theft, or storm. Commercial property insurance is one of the most effective ways to protect your building, inventory, equipment, and other assets against these perils. Read on to learn more about obtaining the best insurance coverage for your commercial property.

Where to Buy Commercial Property Insurance

Many commercial insurance companies offer a wide range of coverages for enterprises like yours. The best way to obtain coverage from any of these carriers is through your insurer. An independent agent will have your best interests at heart and will work closely with you to get you the right coverage for your needs at a competitive rate.

Standard Commercial Property Insurance Coverages

This policy protects your physical workspace and structures against damage. Items kept in your commercial building or space are equally protected, including office computers, machinery, and inventory. If you have any leased assets or customer belongings in your commercial workspace, ensure to add them to your commercial property insurance.

Exclusions

There are certain assets not covered by commercial property insurance. Generally, the policy won’t protect your commercial fleet, animals, or valuable papers. Equipment break down, and certain hazards aren’t covered either, including flood and earthquake damage, for which you will need a separate policy.

Do You Need Commercial Property Insurance?

If you own a business workspace and properties like computers and machinery, you need commercial property insurance. If you lose these properties in a fire, theft, or vandalism, recovery would be difficult or even impossible without a financial fallback plan.

Assigning a Value to Your Premises for Commercial Property Insurance

There are at least three ways to assess your commercial property’s value for insurance:

  • Replacement cost-This pays to rebuild or replace your building with materials of similar quality and type to the one destroyed/damaged.
  • Actual cash value-This valuation method takes into consideration the property’s depreciation due to age and other factors.
  • Functional replacement– This valuation is based on the types of materials that serve the same purpose as those restored.

Benefits of Having Commercial Property Insurance

When you have commercial property insurance in place, you can rest assured of recovering from a covered disaster that affects your business property. It can protect you from financial loss that could lead to bankruptcy and legal trouble with your creditors. Your reputation is also at stake when a fire guts down your properties, but being adequately compensated through your commercial property insurance can help you maintain a good relationship with your customers, vendors, and other stakeholders.

Is Commercial Property Insurance Required by Law?

Commercial property insurance isn’t mandatory. However, many lenders will need you to have this protection before giving a loan to your organization.

Commercial property insurance can help your business survive the loss of inventory, office equipment, and damage to your workspace in the event of covered perils. For further guidance in obtaining the right policy for your company, contact our experts at Fuller Insurance Agency today. We are ready to help you get the coverage that suits your business needs.

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