New Mexico Commercial Property Insurance

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New Mexico Commercial Property Insurance

In New Mexico, $2,205,237,000 in commercial insurance claims were paid in 2019. When you own a company, there are many moving parts, and insurance is one of them. Fortunately, commercial property insurance will protect against of your biggest exposures. 

An independent insurance agent will have access to several carrier options so you can save on coverage. They do the shopping for you and review your policies for free. Get connected with a trusted adviser for quotes. 

What Does Commercial Property Insurance Cover?

Your New Mexico commercial property will fall under a few different categories. From your business belongings to an actual structure, there are many ways to cover your assets. Take a look at what is covered under a commercial property policy in New Mexico:

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be for actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much it would cost to replace or repair your building. Coverage can be for actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will be for replacement cost, actual cash value, or depreciated value.  

Commercial Property Insurance Cost

Similar to your other business insurance policies, your commercial property insurance costs will vary. Pricing depends on various factors that the carriers use to set a rate. Check out the risk factors insurance companies use in New Mexico:

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

There are a few common weather-related risks that business owners in New Mexico should be aware of. These are the top 5 examples:

  • Burglary and other property crimes
  • Wildfires
  • Flooding and water damage
  • Severe storms and lightning damage
  • Wind damage

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How Much Commercial Property Insurance Do I Need?

New Mexico has 154,804 small businesses in operation. Every company will have a unique set of specifications and coverage needed. Your exact protection limits will be rated according to your property. In the meantime, take a look at the different types of insurance given to commercial property owners:

  • Replacement cost: This will pay in full for your commercial property's current value at the time of a loss. When you have a claim, it will restore or replace your property to like kind and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This meets between actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Who Needs Commercial Property Insurance?

Whether you have equipment, furniture, inventory, or buildings that need covering, commercial property insurance can help. Most business owners will need some form of property coverage. Take a look at a list of who may need commercial property insurance:

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

Does Commercial General Liability Insurance Cover Property Damage?

Your New Mexico general liability policy and commercial property insurance are separate coverages. They can be included in the same policy but will still cover different aspects of a loss. Take a look at the facts:

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will include general liability, commercial property, and more ancillary coverages together in one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How a New Mexico Independent Agent Can Help

New Mexico business insurance will be different for every operation. How your company is covered may not be the same as another down the street. Commercial property insurance helps protect your assets, large and small. 

Fortunately, an independent insurance agent will have access to multiple carriers so that you get the best deals in town. They do the shopping at zero cost to your business, saving you time and money. Connect with a local expert on TrustedChoice to get started.

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