Property Insurance

Property lost places

TYPES of Property. Commercial Property Insurance generally provides protection for two (or sometimes 3) types of property:

  1. Buildings
  2. Contents
  3. Inventory

Contents and Inventory are often lumped together – However, we recommend that businesses categorize them separately to make it easier for estimating property values.

Property building on Fire

Valuation of Property. For insurance purposes, property is most often valued at REPLACEMENT COST. For a Building, this is the cost to rebuild from the ground using materials of like kind and quality. It includes the cost of the labor to construct the building and all of the materials.

NOTE: REPLACEMENT Cost is NOT market value. Market value can be considerably different from replacement cost.


OTHER CONSIDERATIONS: Commercial property insurance has many other features and considerations such as:

  • Co-insurance
  • All Risk vs Named Perils
  • Time Element Losses (loss of income)
  • Leasehold improvements
  • Blanket Coverage
  • Property Enhancement – various additional coverages

Your Specific Needs. The needs of each business are unique. Our Professional Team can help.