Property Insurance Insight | Take An Annual Inventory To Confirm Your Needs
Basic property insurance covers losses due to fire or lightning, including the cost of removing property as a way to protect it from further damage. You can also buy a standard policy that provides coverage for extended perils, such as floods, windstorms, hail, earthquakes, acts of terrorism, explosion, riots, smoke, civil commotions and vehicles that damage your property. Beyond this, coverage for vandalism and malicious mischief can also be included.
Types Of Property You May Need To Insure
- Buildings and other structures (leased or owned)
- Furniture, equipment and supplies
- Money and securities
- Records of accounts receivable
- Leasehold improvements and betterments you made to a rented premise
- Electronic data processing equipment (computers, etc.)
- Valued documents, books and papers
- Mobile property (construction equipment, etc.)
- Property in transit
- Satellite dishes
- Signs, fences and other outdoor property not directly attached to the building
- Intangible property (goodwill, trademarks, etc.)
- Business contingency for suppliers
- Ordinary payroll
- Extra expenses as a result of loss
Property Insurance 101: Replacement Cost Value vs. Actual Cost Value
A typical property insurance policy will provide the replacement cost value for your building and the actual cash value for your business property.
- Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation.
- Actual cost value is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value.
The coinsurance clause requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses. Without adequate coverage, you may be obligated to pay a percentage of all losses, even if they are listed in the policy.
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We understand that determining the value of your business is critical. Our advocates can help you secure the best property products, services and solutions for your organization.