All businesses need commercial property damage insurance to rebuild after a fire, flood, hurricane, or other adverse event. With so many providers, options, and price points, it can be difficult to know which policy best fits your operation. Attorney Bill Voss explores how owners can choose coverage tailored to their type of business and specific needs, as well as how to get the right coverage at the best price.
Factors to Consider When Shopping for Commercial Property Insurance
The first thing owners should know is that not all coverage can be provided under a single policy. Texas residents will need to diversify their coverage, particularly when it comes to property damage caused by natural disasters. Counties on the Texas coast may need a separate windstorm policy through the Texas Windstorm Insurance Association (TWIA), as well as coverage through the National Flood Insurance Program (NFIP).
When it comes to choosing private property damage insurance, owners should:
- Consider your location. One policy may cover multiple locations, but prices may vary depending on the risks of each location. For example, coverage will likely be cheaper for administrative offices than an industrial property, even if the two are only a few miles away from each other.
- Evaluate endorsements carefully. Many commercial insurance providers allow owners to tailor their insurance selections to meet the specific needs of their businesses. Owners can choose endorsements to their policies to customize coverage in the areas where they need it most, such as field and row crop coverage for farmers or data loss coverage for banks. Business interruption coverage, extra expense coverage, and ordinance and law coverage are some common endorsements that are well worth the extra cost.
- Practice risk reduction. Providers will often offer discounts to owners who take steps to reduce the risk of certain losses, as it means the owner is less likely to file a claim. Installing security cameras, fire suppression systems, and automatic alarms can significantly reduce the cost of coverage.
- Shop around. Once you know exactly what coverage you need, get a few quotes from insurance providers. Keep in mind that not all policies are created equal, so a cheaper price may have a higher deductible or coverage exemptions in the fine print.
If you are having trouble getting an insurer to cover the costs of damage to your business, we can examine your policy and get you the full amount you are owed. Simply fill out the form on this page today to contact the Voss Law Firm or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.