Most of the time when we think about property insurance, we may automatically think of having enough insurance to cover our home. While having enough insurance coverage for your home is essential, the same is true for your business property. Coast General is going to dissect the important elements of property insurance and help you understand the importance of how it is a wise investment for your business.
What does property insurance cover? All insurance policies vary and are specific to your business’s needs, but there are a few things we can inform you about. Business property insurance protects you in situations where your physical assets are damaged or destroyed. This means the building, anything in it, and the surrounding area of your property can be covered.
Is there a limit to coverage? Some insurance companies offer customized policies to better fit your business’s needs. After all, all businesses are different and may require more or less coverage depending on their size and location. You also may be interested in protecting your business in other circumstances such as floods or earthquakes.
What actions should I take? You’ll want to do some research on property insurance to figure out how much coverage you think you’ll need. A helpful tip to figuring out what you need is to take inventory. Do you have equipment onsite? Computers and other devices? Landscape? Make sure to do this before speaking with one of our brokers or any insurance agents. You’ll want to calculate your property’s replacement value and if you think it’s worth the price of insuring it.
What happens in the event of a loss? There are two options to consider when choosing your property insurance policy: replacement cost (RC) and actual cash value (ACV). Replacement cost is determined by how much is needed to repair or replace your property on the same location. This option tends to be more expensive than property covered with an ACV option. Actual cash value is calculated based on the cost to replace your damaged property with new property. A lower limit is used in this option because there is a deduction for depreciation. You’ll have to decide which is best for you and how much money you want to spend based on your business and its worth.
Why is this a smart investment in my business? Think about how much time you spend on your business’s property and all of the things it holds. This also includes your employee’s belongings and the things they need to effectively do their job. You can successfully complete your job because you have a place to do so. Imagine if you lost all of it, or even a portion of it, tomorrow. You could be out of business for a while until your business is fully repaired.
Coast General Insurance Brokers is proud to serve the needs of Ventura and all of California. Get in touch with us so we can help you find the property insurance coverage to meet your business’s needs.