Alabama Commercial Property Insurance

Your Guide to Commercial Property Insurance in Alabama

Consult a local independent insurance agent for help finding the best coverage.

Alabama Commercial Property Insurance

In 2019, companies in Alabama collected more than $5 billion in business insurance claims. Much of this total amount went toward repairing or replacing lost or damaged property. You can protect the investment you have made in your business’s assets by purchasing commercial property insurance.

When you are looking for the best and most affordable coverage for your company, an independent insurance agent in Alabama can help. These agents can provide valuable guidance and trustworthy advice regarding your commercial property insurance coverage options. Find an insurance agent near you to learn more.

What Is Commercial Property Insurance?

Commercial property insurance is typically included as a standard part of any business insurance policy or business owners policy (BOP). It is designed to cover the cost to repair or replace your company’s property if it is lost or damaged due to a covered event.

How Much Does Commercial Property Insurance Cost in Alabama?

Cost for commercial property insurance can vary from one company to the next. Rates are factors such as the following.

  • The value of your company’s assets
  • Whether you are purchasing actual-value or replacement-cost coverage
  • The crime rate and weather risks in the ZIP code where your company is located
  • The size of your deductible

Each insurance company has its own method for assessing risk and calculating rates, so it pays to comparison shop before making a purchase. Independent insurance agents make comparison shopping easy.

How Much Commercial Property Insurance Do I Need as a Business Owner in Alabama?

There are a few risks that business owners in Alabama should be particularly wary of: hurricanes, tornadoes, and structure fires. Each of these risks can result in a complete loss of all your business property.

For instance, consider the following

  • In 2005, Hurricane Katrina caused serious structural damage to many businesses along Alabama’s Gulf Coast, and winds continued to damage businesses further inland. Twenty-two counties in Alabama were declared disaster areas, and billions of dollars’ worth of property was lost or damaged.
  • In 2007, Enterprise, AL was hard hit by an F4 tornado that resulted in $307 million in damage in this city alone.
  • In 2011, a large tornado outbreak saw as many as 211 tornadoes touch down in the US in a single day. In all, this tornado outbreak caused $11 billion damage, many of which occurred in Alabama, which saw 64 of these tornadoes, one of which resulted in an 80-mile path of destruction from Green County to Tuscaloosa.
  • In 2019, the entire state of Alabama was under a fire alert when a wildfire broke out in Mobile County, engulfing 500 acres of land in flames.

One thing these examples demonstrate is that it only takes one uncontrollable disaster to wipe out all of your valuable business assets. That is why is it important that you consider the full value of all your business property and purchase a commercial property insurance policy with enough coverage to enable you to fully rebuild and replace it, if necessary.

A local independent insurance agent can help you determine how much coverage you need.

What Does Commercial Property Insurance Cover?

Commercial property insurance is designed to cover the cost to repair or replace your business property such as merchandise, inventory, office furniture, supplies, computers, shelving, and outdoor signs if the property is lost or damaged because of a covered event.

This insurance can cover against most of the risks you are likely to face as a business owner in Alabama such as the following.

  • Property crimes: This includes theft and vandalism.
  • Fires: This includes accidental fires, wildfires, and arson.
  • Severe weather events: This includes electrical storms, windstorms, tropical storms, hurricanes, tornadoes, and hail.

To get more information about the risks that your policy can protect against, you can discuss your coverage with a local independent agent.

What Does Commercial Property Insurance Not Cover?

Unfortunately, commercial property insurance does have some limitations, so it may be necessary for your company to supplement this coverage with additional policies. Specifically, commercial property insurance will not cover the following.

  • Flood damage: Even though commercial property insurance covers against hurricanes, it does not cover the flood damage that often accompanies these storms. For that, you will need a flood insurance policy. Businesses in Alabama can purchase up to $500,000 in structural coverage and $500,000 in contents coverage through an affordable commercial flood insurance policy provided by the National Flood Insurance Program (NFIP).
  • Damage related to landslides and mudslides: Damage caused by earth movement is not covered by commercial property insurance. If the landslide or mudslide is caused by a flood, which is often the case, your commercial flood insurance policy is likely to provide coverage.
  • Earthquake damage: In 2020, Alabama experienced 13 earthquakes with a magnitude between 2.0 and 3.0, and one earthquake with a magnitude of 3.8. While earthquakes in this area are not particularly destructive, they can cause damage to your business property, particularly structural damage to the building in which your business is housed. To be covered against this damage, you will need an earthquake insurance policy.
  • Business property while it is off-site: If you are transporting your valuable business property from one location to another, or if you are temporarily storing it away from your place of business, such as at a construction site, you will need to cover it with an inland marine insurance policy.
  • Damage to company-owned vehicles: Damage to company vehicles can only be covered by a commercial vehicle insurance policy. Damage sustained in accidents can be covered if your policy includes collision insurance, while damage caused by non-collision events like fallen trees and hail can be covered if your policy includes comprehensive insurance.

If you need to purchase additional policies to fully cover your business property, a local independent agent can help you find affordable coverage.

How Can I Find the Best Commercial Property Insurance in Alabama?

The easiest way to find ideal coverage for your Alabama business is by working with an independent insurance agent. These agents work for you, not for a particular insurance company, so they are free to shop around to find you the best and most affordable coverage.

A local independent insurance agent can help you determine how much coverage is enough and can help you be certain that all of your valuable business property is suitably covered by the right insurance policies. Set up an obligation-free consultation with an insurance agent near you to get started.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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https://www.onlyinyourstate.com/alabama/10-horrifying-disasters-in-alabama/
https://gsa.state.al.us/gsa/geologic/hazards/earthquakes/alquakes