What Determines Commercial Property Insurance Rates?

Commercial Property Insurance Rates

There is a lot of responsibility that is associated with owning and running a business, including making sure that your business is safe from any disasters. Investing in the right commercial property insurance policy will help to ensure that your property is protected from any peril.

Commercial property insurance is meant to cover the cost of repairs or replacement for any property or buildings that are destroyed or damaged from a number of unfortunate situations, including storms and fires. The policy will also provide coverage for any property that is lost or stolen.

There are five different factors that are used to determine your commercial property rates, including:

  • Construction materials – buildings that are built with highly flammable materials will pay more for commercial property insurance than buildings that are made with fire resistant materials.
  • Location – buildings that are in urban areas that are close to good fire protection will have lower rates than buildings that are outside of the city where there is limited fire protection.
  • Occupancy – what the building is used for will affect the insurance premiums. Businesses that are potentially more hazardous will have higher insurance premiums.
  • Fire protection measures – any fire protection measures that are included in a building will help to reduce the property insurance rates.
  • Exposure – the more potentially dangerous exposures that are near a building, the higher property insurance premiums will be.

When deciding on the right amount of coverage for your business, make sure to read each policy very closely. Keep in mind that you may need to invest in additional policies, such as earthquake or flood insurance, to ensure that you have the right amount of coverage for your business. Talking with your independent insurance agent will help to make sure that you have the right amount of protection.

Contact Idaho Insurance / Affordable Insurance in Caldwell, Idaho for all of your commercial and business insurance needs.

Get a Quote or call for a quote at 208-459-0070