There are many types of insurance coverage that a business may need, including property damage coverage.
Understanding what this coverage is and how to gauge the amount of coverage you need will give you the best protection.
What Is Property Damage Coverage?
Insurance coverage for property damage protects business owners from a variety of events that could impact their business. Fires, natural disasters, burglaries, and vandalism are just a few of the issues that could affect a business.
When you have the right policy for property damage in place, damages from these events can be covered.
How Much Commercial Property Damage Coverage Do I Need?
Coverage for property damage will need to cover the following:
- The physical building
- Contents of the building – equipment and furniture
- Contents of the building – supplies and end product or retail items
- Coverage for signage
- Income loss due to business being closed for repairs
To ensure that you have the right amount of coverage for these items, you will need to have an accurate account of the value of all these items in your business.
If you do not have enough coverage on your property and an event occurs that causes damage, you could be facing serious financial hardships while trying to make repairs.
Understanding Property Damage Liability Coverage
There are two things that are crucial to understanding liability coverage for your business.
First, these policies may require additional “riders” or add-on insurance for you to get the most coverage.
Second, there is a difference between replacement value or replacement/repair policies.
Insurance Riders
Some states have the potential for natural disasters because of their locations. Southeastern states like Florida are subject to hurricanes and tropical storms, the southwest is prone to earthquakes, and the north has blizzards. In these states, damages to your business from any natural disasters may not be covered unless you have an additional policy for this type of event attached to your liability policy.
Many states will not include flood protection with any liability policy unless the flood insurance is purchased separately. There are also riders available for losses incurred from digital disasters, such as having your system hacked. Your insurance company can provide you with all of the available riders in your area.
Replacement Value or Replacement or Repair Policies
Insurance companies often try to blend these two types of policies together as one. However, they are not the same. A replacement value policy means that the policy covers the value to replace an item at its current replacement value, even if that is considerably higher than the original cost. A replacement or repair policy means that they will pay to repair or replace a broken item up to the current value of that specific site.
How are these two different? For example, if you have a five-year-old photocopier with a million prints registered on it that shorts out during a lightning storm. A replacement or repair policy would only give you the value of the machine based on its age and use, not the current replacement value. This can make a large difference in getting your business operating again after a disaster.
Commercial Insurance Policies Are Designed To Be Confusing
Insurance policies are designed to be confusing, or at least that is how it seems. To make sure that you have the right coverage for your business, we recommend having an insurance attorney take a look at your policy. They can review the policy and the types of coverage to ensure that you have the proper protection.
If you currently have insurance coverage and need to make a claim, you also would benefit from having an insurance attorney at your side. This is the best way to make sure that you receive all of the benefits of your policy. For a free case consultation with a property damage attorney at Landau Law, contact us today!
Florida Property Damage Lawyers
Property Damage Blog Posts
Before and After a Storm Hits: What You Need To Know
Property Insurance laws have changed and so has the language in most policies. Make sure you’re prepared before the next storm hits. Understanding how the law changes will impact you and knowing what your policy actually covers (and doesn’t) is critical. That’s why...
How Long Does An Insurance Company Have to Pay a Claim in Florida?
Dealing with insurance claims can be a complex process, especially when you're unsure about the timeline. In Florida, insurance companies don't have a specific deadline to pay out claims. Instead, state law requires insurers to settle claims "within a reasonable...
How To Prepare For A Recorded Statement
Giving a recorded statement for an insurance claim can be a crucial step in the process. It's important to approach this task with careful preparation and a clear understanding of its potential impact on your claim. Take time to outline the key facts of your claim...
How Does Condominium Duty of Care Work in Florida? Legal Responsibilities Explained
Condominium living in Florida comes with specific rights and responsibilities, especially when it comes to duty of care. As a condo owner or board member, understanding these obligations is crucial for maintaining a safe and harmonious community. In Florida,...
What Is A Property Damage Release Form? Essential Document for Claim Resolution
When dealing with property damage claims, you may encounter a document called a property damage release form. This legal instrument plays a crucial role in finalizing insurance claims and settling disputes related to damaged property. A property damage release form is...
What To Do If Your Insurance Company Does Not Respond To Your Claim
Dealing with an unresponsive insurance company can be frustrating and stressful. When you file a claim, you expect prompt attention and fair treatment. Unfortunately, some insurers may delay or ignore your claim, leaving you unsure of how to proceed. If your insurance...
What Are Common Ambiguities In Insurance Contracts?
Navigating the intricate language of insurance contracts can often lead to confusion and misunderstandings. Common ambiguities in these contracts include vague terms, undefined coverage limits, and complex exclusions that can leave policyholders questioning their...
What Happens When An Insurance Company Denies Appraisal?
When faced with an insurance company that denies a request for appraisal, policyholders can find themselves in a challenging position. Understanding the implications of such a denial is crucial for protecting our rights and maximizing our claims. The appraisal process...