Reasonable amount of insurance for commercial property?
hi, what is a reasonable amount of insurance coverage for a commercial property in earthquake and fire & liability? The property is one story, 3 tenant next to 5,500 sf building space. The value of property is about 1.6 million.
Is the amount base on the value of property or the cost to build the property?
Answers:
You can easily check your quotes contained by internet, for example here - homeinsurance.awardspace.us
The cost to rebuild the property is what you inevitability to buy insurance amounts for. I could tell you get a $500K insurance policy, but if an earthquake happen and you only had $500K insurance and your property cost $1M to recreate, you'd be left paying the additional $500K to build. So you involve insurance enough to be comfortable rebuilding without going overboard. Most insurance offer a 10-15% buffer meaning if you ensure for $1M and it costs $1.1M they cover the overage for construction price fluxuation.
I realize you are probably asking this because you dont want to pay profusely, but better to be safe than sorry... just tack on a justifiable amount of the cost with your next rate increase between your tenant. This will help offset your overhead costs to prolong the property.
You dont have to worry roughly contents of the tenants, they'd need renters insurance. Only the property and your contents inwardly the property need replacement values assessed.
YOU NEED TO TAKE FIRE AND SPECIAL PERILS POLICY FOR YOUR BUILDING AND A SEPARATE LIABILITY POLICY.
FIRE POLICY IS AN AGREED VALUE POLICY. YOU FIX THE AMOUNT WHICH YOU FEEL IS NEEDED EITHER TO REBUILD THE PROPERTY AS IT IS NOW ( COST OF REMOVAL OF DEBRIS IS COVERED FREE) OR THE MARKET VALUE OF IT TODAY. TO CATER FOR INFLATION OF MATERIALS YOU MAY ADD 10% TO ITS PRESENT VALUE AND INSURE FOR THE SAME. IF YOU INSURE FOR MORE VALUE IT WILL BE SEEN AS A WAY TO EARN OUT OF A CALAMITY AND IT IS NOT IN THE SPIRIT OF INSURANCE. GOOD LUCK
V BALAJI
TRICHY TAMILNADU INDIA
better you take the insurance on cost to rebuild property , thats on a safer shutting
Related Questions:
Is the amount base on the value of property or the cost to build the property?
Answers:
You can easily check your quotes contained by internet, for example here - homeinsurance.awardspace.us
The cost to rebuild the property is what you inevitability to buy insurance amounts for. I could tell you get a $500K insurance policy, but if an earthquake happen and you only had $500K insurance and your property cost $1M to recreate, you'd be left paying the additional $500K to build. So you involve insurance enough to be comfortable rebuilding without going overboard. Most insurance offer a 10-15% buffer meaning if you ensure for $1M and it costs $1.1M they cover the overage for construction price fluxuation.
I realize you are probably asking this because you dont want to pay profusely, but better to be safe than sorry... just tack on a justifiable amount of the cost with your next rate increase between your tenant. This will help offset your overhead costs to prolong the property.
You dont have to worry roughly contents of the tenants, they'd need renters insurance. Only the property and your contents inwardly the property need replacement values assessed.
YOU NEED TO TAKE FIRE AND SPECIAL PERILS POLICY FOR YOUR BUILDING AND A SEPARATE LIABILITY POLICY.
FIRE POLICY IS AN AGREED VALUE POLICY. YOU FIX THE AMOUNT WHICH YOU FEEL IS NEEDED EITHER TO REBUILD THE PROPERTY AS IT IS NOW ( COST OF REMOVAL OF DEBRIS IS COVERED FREE) OR THE MARKET VALUE OF IT TODAY. TO CATER FOR INFLATION OF MATERIALS YOU MAY ADD 10% TO ITS PRESENT VALUE AND INSURE FOR THE SAME. IF YOU INSURE FOR MORE VALUE IT WILL BE SEEN AS A WAY TO EARN OUT OF A CALAMITY AND IT IS NOT IN THE SPIRIT OF INSURANCE. GOOD LUCK
V BALAJI
TRICHY TAMILNADU INDIA
better you take the insurance on cost to rebuild property , thats on a safer shutting
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