Select Page
Part of owning a business is making sure that your company has the right insurance coverage.

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!

Property Damage Blog Posts

Tips for assessing property damage for insurance claims

Tips for assessing property damage for insurance claims

Assessing Property Damage with Confidence and Expertise In the aftermath of unexpected events such as storms, accidents, or other disasters, assessing property damage is a crucial step toward initiating an insurance claim. At Landau Law, we understand the significance...

read more
Common causes of home water damage and how to prevent them

Common causes of home water damage and how to prevent them

Defending your Florida home: Identifying and preventing water damage Water damage can wreak havoc on Florida homes, leading to significant financial and structural consequences. Understanding the root causes and taking proactive steps to prevent water damage is not...

read more
Insurance Policy Basics: What You Need To Know

Insurance Policy Basics: What You Need To Know

Dealing with property damage can be a deeply distressing experience.  Whether it's the aftermath of a natural disaster, a fire, or any unexpected incident, the emotional and financial toll can be overwhelming. At The Landau Law Group, we understand the challenges that...

read more
What to Do After Your Property Damage Claim is Denied

What to Do After Your Property Damage Claim is Denied

Navigating the Maze of Property Damage Claim Denials: Your Comprehensive Guide to Recovery Receiving the news that your property damage claim has been denied can be a devastating experience. The emotional and financial toll of property damage is challenging enough,...

read more
How Long Does a Home Insurance Claim Take in Florida?

How Long Does a Home Insurance Claim Take in Florida?

If you're wondering about the timeline for processing a home insurance claim in Florida, you've come to the right place. In this guide, we'll break down the key factors that determine how long it takes for an insurance company to settle your claim and how recent...

read more