Business Property can be insured under a Business Package policy or separately, under a Business Property Policy. Business Property coverage is designed to replace property damage from a “covered peril”. A “peril” refers to the cause of loss. Some losses are covered i.e. fire and windstorm. Other losses may not be covered. For example, an earthquake loss is usually not covered under the business property policy.
Once you have most cases you need to purchase a separate earthquake policy. determined what coverages you may need, Valuation (Replacement Cost, Actual Cash Value and Functional Replacment Cost) and Co-insurance need to be determined. Be prepared by having a professional assess your building’s value. The Co-Insurance clause requires that the insured must carry an insurance limit on its property in the amount great than or equal to a certain percentage of its total value, usually 80, 90 or 100 per cent. If the insured fails to carry a sufficient limit to comply with this provision, a penalty will be applied that results in the insured becoming a “co-insurer” on the claim, thus the term co-insurance. The insurance industry offers several options which may be confusing to the policyholder. Always consult with your insurance broker to make sure that you are insured to value. The most common property coverages include: Building, Personal Property, Loss of Income, Loss of Rents, Extra Expense, Earthquake Sprinkler Leakage, Fire Legal Liability, Personal Property of Others: , Equipment Breakdown, Building Ordinance . We can assist you with all of your property coverage needs.