Commercial property insurance policies often exclude coverage for property damage caused by hurricanes and other extreme weather events. To protect your property against hurricane damage, utilize these five insurance tips.
1. Commercial property insurance has some standard exclusions
Standard property insurance policies generally do not cover hurricane, earthquake or flood damage unless they have the appropriate riders. Contact your agent to make sure your business is properly covered. (*in Puerto Rico, hurricane damage is automatically covered)
2. Commercial property insurance is necessary whether you rent or own your business property
If you own the building, you definitely want to insure it (and your mortgage may require you to carry commercial building insurance). If you rent, your landlord will likely include an insurance requirement in your lease, either to insure the building, your content and/or your improvement and betterments.
3. Home-based business owners shouldn't rely on homeowner's or renter's insurance
Homeowner's riders often don't offer as much coverage as a commercial property policy. If an entire portion of your house is dedicated to your business, it may make more sense to purchase a standalone commercial property insurance policy.
4. It matters whether you have replacement value coverage or actual cash value coverage
You may have the option to insure your business property at its replacement value or actual cash value. The difference is that replacement value coverage can help you replace your property at today's prices, whereas actual cash value coverage takes depreciation into account.
5. To address hurricane season concerns, you need a commercial property insurance policy
Talk to your agent to obtain a commercial property insurance policy as soon as possible. Insurance markets close the market once a storm or hurricane warning is announced.
As an additional safeguard, you may want to explore a business interruption insurance rider that can help you pay for ongoing expenses when a hurricane keeps your business from operating. You can often get this coverage if you purchase your commercial property policy.
Fulcro’s all-lines brokers are prepared to assist you in case of an emergency like a hurricane. We urge you to take precautionary measures to protect your business and employees.