D.C. had $750,576,000 in commercial insurance claims paid in 2019 alone. If you own a business, your coverage is essential to growing and avoiding additional out-of-pocket expenses. Commercial property insurance can be used to insure your most valuable investments.
An independent insurance agent can help find a policy at an affordable price. Since they work with several carriers, you'll have options. Connect with a local expert for tailored protection today.
What Does Commercial Property Insurance Cover?
Commercial property insurance is used for numerous items. Equipment, belongings, and buildings are some of the most common where this coverage is necessary. Take a look at what can be insured under a commercial property policy in D.C.
- Commercial equipment: This can be anything from machinery to forklifts. Coverage will be either an 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 your building is to replace or repair. Coverage can be on an 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 either be in replacement cost, actual cash value, or depreciated value.
Commercial Property Insurance Cost
Similar to your other business insurance policies, the premiums vary. Carriers review your coverage selection, personal data, and outside elements when calculating your costs. Check out the risk factors insurance companies use in D.C.
- 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
Here are some of the most common weather-related risks that homeowners in D.C. should be aware of. Note that your homeowners insurance policy will protect you against each of the following risks.
- Severe storms and lightning damage
- Hurricanes and tropical storms
- Heavy snow
- Burglary and other property crimes
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How Much Commercial Property Insurance Do I Need?
In D.C., there are roughly 76,083 small businesses in existence. To know your exact coverage needed, consult with a licensed professional. In the meantime, take a look at the different types of insurance given to commercial property owners.
- Replacement cost: This will pay for your commercial property's current value at the time of loss in full. 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 in the middle of 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?
If you own a D.C. business, you'll typically need some form of commercial property insurance. Most operations have equipment, structures, inventory, or belongings that they need to protect. Take a look at the list below on 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?
In D.C., your general liability policy is a separate limit of protection from your commercial property insurance. Both are usually necessary, and they can be packaged together on the same policy. Take a look at the facts.
- General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, and libel 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 on one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package.
How a D.C. Independent Agent Can Help
Your D.C. commercial property insurance comes in many forms, and it can be confusing to know exactly what you need. If you're not a trained professional, you could be missing key coverages. To avoid financial ruin or worse, consider using a trusted adviser.
An independent insurance agent will have access to multiple markets, so you know you're getting a good deal. They do the shopping for you at no additional cost, saving you time and money. Connect with a local expert on TrustedChoice.com for custom coverage.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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