Those who are starting their own business need to consider more than just providing excellent products and quality service. A major part of being a responsible business owner is thinking of how to protect one’s business from emergencies. For those who lease or own a business space, property insurance can help them be prepared for problems. This guide will tell you everything you need to know about commercial real estate insurance.
Find Out What Property Insurance Covers
Also called commercial real estate insurance, this is a type of insurance meant to cover real estate used for commercial purposes. It can provide funds to repair or replace buildings, structures, equipment, furniture, supplies, or fixtures that are damaged. Most types of insurance will cover a variety of damage, ranging from natural disasters to intentional damage. Depending on the insurance an owner selects, they may even get costs covered for a stolen property on the site. However, vehicles, money, plants, and outdoor signs or fences may not be included, so people should always check carefully when buying insurance.
Learn If Property Insurance Is Really Needed
A major misconception among business owners is the idea that property insurance is only needed if a person actually owns the building or land associated with their business. However, the reality is that even renters can benefit from property insurance. Many leases actually require tenants to keep paying even if space is destroyed, so commercial real estate insurance can help people get the funds they need to survive a catastrophic fire, flood, or another issue.
Decide How Much Coverage Is Required
Once a business owner decides to get property insurance, they will need to decide on how much coverage they want. Higher coverage usually costs more, but it provides more funds in an emergency. There are two types of coverage to consider: actual cash value and replacement cost. Actual cash value gives an owner cash equal to the current cost of replacing the property. Meanwhile, replacement cost pays the cost to rebuild or repair the property. Those who are not sure which option or how much coverage works best for them can ask an agent for advice to get a better picture of what sort of commercial real estate insurance they need.