Commercial property insurance is a must-to-have for every business.
Irrespective of whether you own your business property, lease it or have a home office, you will need commercial property insurance to protect the buildings and its content.
Businesses are continuously at the threat of various kinds. Amidst managing all these threats such as customer share, competitors, and new regulations, the business owners often neglect the threats to the business premises. Whether you stock an inventory of expensive items or have confidential data saved at your property, you will need to take care of its protection.
Apart from it, the property in itself is central to our business activity. Any damage to the property can lead to many weeks or even months of disruption.
So, all in all, the commercial property insurance cannot be more emphasised. But, it is daunting to make Commercial Property Insurance Comparison and find a suitable policy for you.
If you are facing the blues of comparing commercial property insurance, here are three hacks to nail it like a pro.
1- How Much Coverage It Offers?
Most of the quotes for commercial property insurance clearly state the coverage limit.
When you are comparing the quotes, the first thing you must check is the coverage limit. Is it sufficient for your property? Can it cover a complete renovation? Renovation of a building can cost more than the actual worth of the building.
It is especially relevant if there is an impending renovation of your property.
Once you have compared the coverage limit, you will be in a good position to narrow down the “Relevant” and “Irrelevant” quotes.
2- Does It Cover Open Perils or Named Perils?
Perils that can damage the property can be anything. From a Tsunami to a tree falling, these can be of different nature and extent.
Some of the commercial property insurances only cover the named perils which means the perils that are explicitly named in the policy. For example, if you have got a policy that states Storm and flood as the covered perils, it will only cover these two. In case your commercial property is damaged due to the earthquake, your insurance company will not pay for the damages.
On the other hand, the open perils can include all sorts of threats and risks, and it is comprehensive. That being said, open peril insurance policy is more expensive than the named peril coverage. So, you will need to adjust a higher premium.
You can use Ensurancecompare.com to compare both open and named peril policies.
3- Does It Offer Replacement Value or Actual Value?
The other important thing in comparing commercial property insurance is to check whether it offers a replacement value or the actual value.
The actual value insurance policy is usually not a good idea for the business as it includes price at the time of purchase and depreciation. It may not provide enough funds for a replacement.
For businesses with expensive equipment, a replacement value policy is a better option.
By comparing just these three things along with offered premium, you can land the best and the most cost-effective choice.