Tips on Property insurance For Business

Posted on December 30, 2011 by

Property insurance protects your business from loss or damage to the location of the business and to its assets. Business owners need to review the property coverage for determining the appropriate coverage so that to know the business insurance in place is insufficient or not. When buying a business property insurance, consider the following tips to eliminate some mistakes which are most commonly done:

Obtain proper coverage and review the coverage limits periodically: Business property insurance coverage limits should be sufficient to rebuild the structure and replace the assets at current replacement costs. Review all of the changes to the structure, at least in a year. Consider all upgrades, fire prevention, new fixtures, safety precautions, office furniture, anything that effects the physical structure of the business. Adjust your coverage limits appropriately. And the most important thing is that business owners must insure not only to avoid paying premiums but also to know the worth of the risk of not being able to rebuild the structure.

Obtain coverage for flood and storm: Most business property insurance does not cover flood or windstorm damage. These are separate coverages for your business. If your business is in flood prone region then you need to buy a separate policy from the National Flood Insurance Program.

Obtain Ordinance or Law Coverage: A property endorsement that provides the insured the option to purchase coverage for ordinance or law requirements, applies after an insured has suffered a physical damage loss such as fire. These ordinance or law damages are normally excluded in standard property coverage. The coverages available in this endorsement are cost to demolish the undamaged portion of the building, cost to replace with superior construction as required by law, and cost to clear the land of discarded garbage after demolition. Check with your insurance provider and make sure your business has all of the appropriate coverages.

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