This winter might bring snow and ice storms to our area. When spring arrives, threats like severe thunderstorms, hail and even tornadoes might beckon. Seasonal threats create a significant risk of property damage. If this happens to your business, the repair costs might mount.image of commercial property You might want to see if your commercial insurance will cover these losses. What are its limitations?

Most commercial insurance policies will address property damage. However, how they do so will vary. Limits to what scenarios and costs these policies will cover exist. So, before you make a claim, ensure that you can do so successfully.

How Property Insurance Works

Let’s say that a sudden snow storm blows into the area. The high winds and ice accumulation cause various structural damage to your property. Windows might break, foundations crumble and roofs collapse. When it comes to reopening and operating the business, the damage might pose a challenge. Repair costs might rise and decreased revenue might only deepen this burden.

It is for scenarios like these that commercial property insurance exists. Coverage can help you pay for many weather damage repairs. Thus, you’ll be able to have a cushion under you when repairing the damage. That can help the business fix the damage and return to operations without losing income.

Yet, Limits Exist

Even if your business policy includes property coverage, it won’t cover every type of damage. All insurance policies have limits and exclusions. Some of these items might include:

  • The policy’s financial limit. All policies will pay a maximum amount for certain damage. Your limit needs to reflect the full value of your building in case of a total loss.
  • Possessions inside the business. Most property insurance will cover damage to the contents of your business. Yet, some restrictions on what possessions have coverage will exist. Also, some policies will play the replacement costs of these items. Others will only pay the item’s cash value at the time of loss.
  • Your policy deductible. Nearly all policies will contain a deductible. You agree to pay the deductible before the insurer pays rest of the claim. For example, if you have a $10,000 claim and a $2,000 deductible, you will pay the $2,000. Your insurer will pay the remaining $9,000.
  • Policy exclusions. No insurance policy will cover every type of damage to your business. For example, it will almost never cover damage caused by normal wear and tear, or neglect. It might not also cover damage from certain weather, like floods or quakes.

So, when enrolling in a commercial property policy, pay attention to the parameters of your coverage. Your insurance agent can guide you in setting up the appropriate coverage, call 708.423.2350 for guidance.

Also Read: How to Think About Business Interruption Insurance

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

View Mobile Version
 facebook Social Icon Social Icon Social Icon Social Icon
© Copyright. All rights reserved | Powered by Insurance Website Builder