Although you may take pride in having a building you own and use as a part of your business, being in charge of or owning commercial property is a huge responsibility.

Without the proper coverage (which is part of commercial property insurance), you and your business, as well as employees or workers depending on you, can get financially exposed should something untoward happen to your building.

With so much at stake, it’s crucial to obtain building insurance for protection in times of uncertainty.

The Basics of Building Insurance

Building insurance comprises buildings or structures and any completed sections listed on the declarations page of a commercial property insurance policy. Another aspect of building coverage is the permanently installed fixtures, machinery, and equipment housed in your commercial building.

In the event of total, complete loss, the limit of building insurance is based on the amount required to reconstruct the building and replace any damaged permanently installed fixtures, machinery, and equipment.

Building owners are required to fully insure the value of their buildings. If this is not done, you may be subjected to a monetary penalty at the time of a loss or "coinsurance." To know what this is, take the time to read and understand the coinsurance clause of your commercial property policy. Ask questions and clarify this with your insurance advisor.

Building insurance coverage typically includes:

• Business personal property: Furniture, fixtures, inventory, machinery, and equipment that is not permanently installed and personal property owned by and used in your business.
• Personal property of others: Property in your business’s care, custody, and control.

Who Needs Building Insurance Services?

If you rent or lease out buildings for commercial purposes, such as renting out office space, you’ll need non-residential building operation insurance.

Small business owners usually opt for a Business Owner’s Policy (BOP), as it helps cover a building operations business similar to how a homeowner’s policy protects a home and possessions. It combines three essential coverages into a single policy, so it can help you save on insurance costs.

With a BOP, you get help protecting your business with:

• General liability insurance
• Commercial property insurance
• Business income insurance

Cost Concerns

Just like in other forms of insurance, there are factors that can affect commercial property insurance rates:

• Industry
• Type of assets
• Property owned
• Number of employees
• Size of payroll
• Claims history

If you have a BOP policy, you can ask for additional coverages to protect your business from other risks. These include:

• Professional liability insurance
• Data breach insurance
• Commercial auto insurance

At Crescenta Valley Insurance, we know that your plate is already full as a property owner.

But no matter your situation, we can customize the right insurance coverage that’s ideal for your business. Let’s talk today!

Get a Free Building Insurance Quote