Property Insurance provides coverage for business personal property and tenant’s improvements and betterments installed by the insured, as well as business personal property of others for which the insured is legally liable.
The coverage also includes coverage for accounts receivables, valuable papers and records, and other exposures which belongs to the property.
From buildings to equipment, we understand evolving business environments and how they operate. With years of hands-on expertise, you can count on us to deliver cost-efficient, tailored property insurance solutions.
If you own a building, you can add Building Insurance to your Business Insurance.
Especially, in case of building insurance, it is recommended to insure the rebuilding price of the building excluding land value. Because a selling price of a building differs from the cost of reconstructing a building, it is highly recommended to get an estimate through experts.
Many building owners are insuring their Building Insurance below the actual rebuilding costs to lower the premium costs. However, Insurance companies have created a Coinsurance Clause to prevent this and Coinsurance Clause would result in a penalty if building owners did not insure 80-90% of the rebuilding cost.
For example – Calculating the Property Coinsurance Payment.
If rebuilding cost is $1,000,000, the building owner should insure at least $800,000 to avoid the Coinsurance Penalty. However, building owner has insured $700,000 instead of $800,000, and there is $100,000 loss occurred. Then the method of calculation the compensation amount form the Insurance Company is as follow.
$100,000 x $700,000 / $800,000 – Deductible