Property Insurance

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Property Insurance

Background

Coverage for your buildings, vehicles, machinery and equipment, inventory, and some other assets. Property insurance provides protection against most risks, such as fire, theft and some weather damage.

Property coverage is defined in two main ways- open perils and named perils.

Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism and war.

Named perils coverage requires the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion and theft.

Exclusions

Protection for commercial property is typically limited or excluded for the following perils:

  • Flood- may be secured through the National Flood Insurance Program
  • Earthquake- may be added by endorsement
  • Sewer and Drain Backup- may be added or supplemented by endorsement
  • Pollution- may be supplemented through an additional policy
  • Mold- may be supplemented through an additional policy

Specialized Property Protection

Business interruption and extra expense– provides ongoing income and covers certain continuing and extra expenses to help a company remain solvent after a catastrophe that results in a curtailing of normal operations and during the rebuilding process

Inland Marine– designed to insure exposures that cannot be conveniently or reasonably confined to a fixed location or insured at a standard rate under a standard form. Includes coverage for property in transit over land, certain moveable property, property under construction, instrumentalities of transportation and communication (such as bridges, roads, piers, and television and radio towers), and computerized equipment. Many inland marine coverage forms provide coverage without regard to the location of the covered property; these policies are sometimes called “floaters”.

Important Topics- Property Insurance

Ask us about these important topics pertaining to Property Insurance:

  • Proper valuations and coinsurance- limits should be sufficient to reconstruct buildings and replace contents, furniture, equipment, inventory, etc. Underinsured situations can result in coinsurance penalties, money out of your pocket
  • Inventory valuations
  • Product Recall Protection
  • Off Premises Power Failure