Commercial Property Insurance covers business owned property, including buildings, structures such as detached awnings, fences, signs, or sheds, and business personal property on premises such as furniture, fixtures, inventory, machinery, equipment, and tools. Coverage can also be added to include loss of Business Income and Extra Expense arising out of a covered property loss. Coverage is generally very broad, but usually location specific.
How Does Commercial Property Insurance Work?
Any covered losses will be subject to a deductible and settlement can be made either on an “actual cash value basis”, (also known as depreciated value), or on a “replacement cost” basis, depending upon the type of coverage purchased. Generally speaking, the “replacement cost” policy is more desirable, but is usually only available when the property is insured in an amount equal to it’s replacement value.