Property insurance offers protection from any possible risks to residential property, including theft, fire and some natural disaster damage. This includes many specialized types of insurance, including flood insurance, fire insurance, earthquake insurance or home insurance. If a property is damaged due to fire or another reason, the owner will have to replace the property. The owner’s insurance policy may not cover the value of the damaged property. A homeowner’s policy can provide partial or comprehensive coverage, depending on what type of policy they have bought.
One type of property insurance that covers a damaged home or business is business property insurance. It can protect a home that has been destroyed due to fire or explosion. To be able to ensure a business property, businesses must purchase building insurance. Business property insurers can insure the structure as well as the contents of the building. They also offer insurance to protect personal property used in running the business if anything is stolen or damaged.
There are two types of business interruption insurance policies available. General liability insurance offers protection from lawsuits when customers or employees suffer injury or damage while working at an establishment. Employees may sue for wages lost, medical expenses, pain and suffering, and more. A bop endorsement on a property insurance policy protects the business against any claim made against the company from customers or employees. A bop policy typically covers property damage, which does not include bodily injury or sickness costs.
Another type of commercial property insurance is a replacement cost policy. It covers the cost to replace the property destroyed or damaged by fire, explosion, lightning, flood or windstorm. It does not cover the actual cash value of the property. A policy like this will typically require an appraisal estimate, typically done for free, to determine how much it would cost to replace the damaged or destroyed items. This is often the deciding factor on whether or not to purchase the policy.
Property insurance coverages come in several forms. Few insurers will insure a business only, as this is usually not a high-risk industry. However, some insurers will only insure a business against specific property losses. For example, some insurers will only insure a small business against burglary or loss of cash or business assets. In contrast, others will ensure a small business against loss of business assets (such as computers and other inventory). Additionally, some insurers will only cover certain types of property losses, such as natural disasters. Regardless of the product, most insurers will provide some kind of money-back guarantee if the policyholder is unsatisfied with the product.
In addition to general liability insurance to protect the general assets of the company, there are also specific types of small business property insurance policies. Some insurers will offer general liability coverage and a specific amount of property insurance to protect against liability caused by customers, tenants, and/or employees. Other insurers will only offer specific coverage for a few common property hazards, such as slips and falls, fire damage, vandalism, and similar disasters. There is some overlap between these two categories. General liability insurance is used to protect a business against things that can happen, while specific coverage is needed to protect against the specific dangers that a business faces.
Many insurance companies require certain minimum amounts of property coverage as a part of their purchasing decisions. Therefore, before you contact with any insurance companies, make sure to check with your state’s department of revenue to ensure that you will be required to maintain the required minimum amounts of coverage. Also be sure to discuss which types of situations you want your policy to cover. Often, it is best to purchase an all-inclusive policy that will cover all risks at one time.
Property insurance policies do vary widely from insurer to insurer. Property owners and business owners should not settle for one of the first policies that they are offered. It is always a good idea to compare different property insurance policies. Contact several different insurers to compare prices and policies. You may also want to work with your local chamber of commerce or real estate agent to find out more about the local property insurance policies that are available in your area.