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How to get an affordable commercial property insurance

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As a business owner, you’re constantly watching the bottom line and looking for good deals. That’s why Nationwide’s commercial property insurance rates are priced to give you the best coverage for your money.

Various risk factors impact the cost of property insurance – like the location, type of business, the building’s construction makeup and exposure to nearby risks. We’ll work with you to help lower your risk and design complete property insurance coverage to meet the needs of your business.

HOW ARE COMMERCIAL PROPERTY INSURANCE RATES DETERMINED?

Typically, insurance premiums for commercial properties are set by multiplying the value of the building and its contents by a value that correlates to level of risk. Most of the time, properties with high risk have higher property insurance rates, while lower risk properties cost less to insure.

These are the variables that help determine your insurance rate:

CONSTRUCTION

The materials used in your building’s construction and its overall condition will impact your commercial building insurance rates. Buildings made of more fireproof materials (brick or stone) or those with fire-resistant interior floors, walls and doors cost less to insure. Newer buildings, or those with recent upgrades of electrical wiring, plumbing or the HVAC systems also usually cost less to insure.

OCCUPANCY

The use of the premises will impact the property insurance rate. A restaurant or auto repair shop is more likely to have  higher risks associated with that business than a florist shop, and may cost more to insure. And if your business shares space with a higher risk business, your premiums may increase.

PROTECTION

When your business is located in an urban area with a fire hydrant or fire station nearby, your property insurance rate could be lower. An alarm or sprinkler system in your building can also help lower your rate.

EXPOSURE

Exposure to risk in the surrounding area – such as known criminal activity or the likelihood of loss due to accidents or natural disasters – can impact your insurance rates. Neighboring businesses could also impact your rates – for example, if your business is located near an oil refinery or fireworks factory, your property insurance rates may be higher.

WANT TO KNOW MORE?

Learn more about Nationwide’s commercial property insurance coverages and contact us for a quote today.

PROTECT YOUR BUSINESS PROPERTY WITH COMMERCIAL PROPERTY INSURANCE

Commercial property insurance can protect your business against everything from a minor hiccup to a major loss.

For example:

  • A fire could destroy your building and the contents inside
  • A burst water pipe could damage valuable documents
  • A storm could damage your outdoor sign

Whether you own your freestanding building, lease an office or work at home, business property insurance protects your business’ physical assets.

WHAT’S COVERED BY COMMERCIAL PROPERTY INSURANCE

Commercial property insurance helps ensure the future of your business. It helps protect:

  •  Building
  • Outdoor sign
  • Furniture and equipment
  • Inventory
  • Fence and landscaping
  • Others’ property
WHAT YOU NEED TO KNOW ABOUT BUSINESS PROPERTY INSURANCE

A complete business property insurance plan is one of the smartest investments you can make in your business. It protects the costly, physical assets of your company such as the building. Its contents and any outdoor fixtures such as signs and fencing.

Savvy business owners know that a fire or severe windstorm can shut down a business for an extended period of time, often leading to a permanent closure. But with a comprehensive business property insurance plan, you’ve got support and business income coverage to help you recover quickly.

UNDERSTANDING THE BASICS

Commercial property insurance plans vary from policy to policy.

Basic property insurance usually covers losses caused by fire, lightning, wind and hail, or acts of vandalism. Additional coverage can be added for earthquakes and breakage of glass.

The essential items to insure in a business property insurance plan include your building. Office equipment, inventory and outdoor items on the premises such as fencing, storage sheds, or outdoor signs.

DETERMINING THE VALUE OF YOUR BUSINESS PROPERTY

Commercial property insurance plans pay for losses based on the replacement cost of the item or its actual cash value.

Replacement cost (RC) refers to the amount necessary to repair. Replace or rebuild property on the same premises, with comparable materials and quality without deducting any amount for depreciation.

Actual cash value (ACV) is the cost to replace it with new property of similar style and quality, less depreciation.

Typically, the premiums for policies covering property insured. On an ACV basis are lower because a lower limit is used due to the deduction for depreciation. This amount might not be enough if you elect to insure the property on a RC basis.

Your insurance agent can work with you to make sure you have your property adequately insured.

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