Your livelihood is dependent on the survival of your business, so it is imperative that you protect it against any potential threat—big or small.

Property insurance comes in many forms to suit your specific needs. Before purchasing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step ensures you will have adequate coverage to continue your business in the event of a covered loss.

 

How Much Property Insurance Should I Purchase?

One of the most important aspects of purchasing property insurance is making sure that you have purchased enough coverage to be adequately protected. A typical policy will provide the replacement cost value for your building and the actual cash value for your business property. Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation. Actual cash value, on the other hand, is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value.

Most property insurance policies include a coinsurance clause, which requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses. Should you decide to purchase inadequate coverage for your property, you may be obligated to pay a percentage of all losses, even if they are listed in the policy.

Neckerman Insurance Services understands that determining your business’s value is critical, so we’re here to help. Contact us today at 608-238-2686 to learn more about our property insurance and loss control solutions to protect your business.

Testimonial

"Communication quality and timeliness of quotes and services were impeccable. The details of my quotes were explained to me in just the right amount of detail, with every question answered. I just bought my first house and didn't know exactly what to expect. I felt cared for and that I was getting a great product. Highly recommend."

- Nate Harkins