Commercial property insurance is often purchased by business owners as part of their business owner’s policy (BOP). Commercial property coverage typically includes loss resulting from thefts, fires and natural disasters. Before purchasing this type of insurance, it’s a good idea to take a detailed inventory of all assets located on the property in order to determine how much everything is worth, because this will factor into the cost of the insurance.
Several other factors are also taken into consideration when determining the total cost of commercial property insurance. For example, properties that are located in areas that have poor fire protection may cost more to insure than those that aren’t. What a building is used for is another important consideration. A restaurant typically cost more to insure than an office building because there is a greater risk of fire damage. Buildings that house expensive equipment such as electronics will likely cost more to insure than those that don’t.
Having as much information as possible about what’s being covered and how much your assets are worth will help you prepare to meet with an insurance agent and discuss the cost of coverage for your specific situation. Every property and business are unique, and you need a plan tailored to your needs so you can get the coverage that’s right for you.