Insurance

# Commercial Property Insurance

Commercial property insurance is similar to a homeowner’s insurance but covers a company’s physical assets. When in the market for commercial property insurance, there are few things you should know before making up your mind.

As with any other property insurance, the location of the assets is going to be a big deciding factor of the costs. Because, commercial property insurance covers assets against certain natural disasters like stormsâ€”and floods and earthquakes if included in the policy, Other than the location, the following are going to have an impact on how much you’re going to pay for insurance.

• Construction material used in the building(s)
• Occupancy of the assets
• Installed protection against fires
• Overall security

## Commercial Property Insurance Coverage

What commercial property insurance covers will highly depend on the policy. Generally, it will cover the company’s assets from theft, vandalism, fire, burst pipes, and certain natural disasters. As for what insurance protection is very vast. Commercial property insurance will not only protect the physical structure of your assets but what’s in it.

So this means furniture, tools, computers, documents, inventory, and even fences and landscaping. For insurance that costs roughly \$75 a month, it brings great coverage.

### Commercial Insurance Coverage Amount and Cost

Most commercial property insurance policies cost between \$60 to \$100. This brings a coverage amount of roughly \$50,000 to \$75,000. Oftentimes, there will be a median deductible of \$750 to \$1,250. These are just average figures. There is a formula used in calculating commercial property insurance. You can calculate and estimate an amount for how much your commercial property insurance is likely to cost.

The formula used in calculating commercial property insurance is super simple. You need to factor in the Total Insurable Value which you should know it already assuming you already done your paperwork. Then, take this amount to multiply by 0.4. And divide it by the commercial property insurance rate per \$100. The result should be your annual premium per year. Here is an example:

E.g

Total Insurable Value (TIV): \$100,000

\$100,000 x 0.4 = 40,000

40,000 / 100 = \$4,000