Commercial property insurance, in this day and age, is almost a utter necessity. Commercial property insurance allows for those owning commercial property and businesses to protect themselves from a myriad of circumstances that can potential incur damage to their property or building.
Furthermore, commercial property insurance will prove to be extremely important in the case that the owner either leases or rents space within the property to other businesses. Commercial property insurance is meant to protect commercial property owners from natural disasters, theft, and even fires.
In some cases, the commercial property insurance policy will also extend to provide for coverage for the actual goods or merchandise on the property, which can include equipment, machinery, employees’ personal belongings, and even the building structure itself.
However, commercial property insurance and the extent of the coverage will vary due to the different types of policies that are available. Commercial property insurance can also vary in terms of the regulations imposed by the state, sometimes imposing certain limits of the types of services or coverage that can be offered by an insurance agency.
Examples of things that are excluded in some kinds of commercial property insurance can include insect and/or vermin infestations and terrorist attacks or war.
However, the two basic types of commercial property insurance can be said to be replacement cost coverage and actual value coverage. Replacement cost coverage will replace any damaged property with either new property or property of equal value.
Actual value coverage will pay for the actual costs that it takes to replace the property, though depreciation costs such as the age of the building or property and wear and tear may be deducted.