Finding the right coverage to protect your large investments should be a priority for any business. Finding an insurance professional with the expertise to insure larger investments can make the difference between having future investments and having thoughts of what could have been.
Experienced brokers will know that there is more to insuring a building than just the “bricks and mortar”, but also making sure that the client (you) is also covered for the things they may not have even considered. Using our expertise we have put together this article for coverage that you should be looking for on your own policies. If you are currently insured with us, please give us a call for a personalized discussion about your policies, but if you’re not currently insured with us and you want to have our extensive expertise protecting you, please don’t hesitate to contact us today.
The types of buildings this article is designed for include, but are not limited to:
- Apartment Buildings
- Commercial Condominiums
- Office Buildings
- Enclosed Shopping Malls
You own an apartment building and while one of your tenants were not home, their toilet broke in their apartment. Water from the broken toilet leaked throughout the suite, through the floor and caused significant damage to the building infrastructure and suites below.
This is a common occurrence when it comes to owning an apartment building. Things break, and sometimes the cost of fixing the problems snowball.
The coverage for this example would fall under the “Building and Contents” and Loss of Rental Income if they had purchased such coverage.
Final Loss Settlement Amount: $85,000
As you can see above, it doesn’t take much for the cost of fixing a simple broken toilet to climb under the certain circumstances. Not having the right coverage could force you to pay these types of expenses out of pocket.
The Types of Coverages and Endorsements to Look For
Insurance isn’t simple, and there are a lot of different options out there. It’s hard to pin point exactly what you need to protect yourself and your investment when you don’t know all of the options. This is why it’s important that you pick your insurance professional as you would an employee that manages your business. They are going to make sure that you can keep growing your investments without having to worry about the “what if” scenarios when it comes to your insurance package.
Every company and building have their own unique needs and requirements, but there some common coverage options that you should be looking for on your building policies. There are more options out there, and as always, it’s suggested that you talk to your insurance professional to ensure you have the adequate coverage for your property.
Loss of Business / Rental Income
If you have a claim where a tenant/resident is unable to stay in their home for an extended period of time, you will be without that rental income from them. Don’t let your books take a hit during this time by having coverage for the loss of rental income during a covered claim.
Automatic Fire Suppression System – Accidental Discharge
If you have an automatic fire suppression system installed in your property, it doesn’t take a large imagination to consider the damage to your property if that system were to fail and prematurely discharge.
The equipment breakdown coverage is not just for manufacturing companies. The purpose of equipment breakdown insurance is to insure against the financial losses such as, property damage, spoilage, and business interruption.
The types of equipment that would be important to property owners would include, but are not limited to:
- Refrigeration and Air Conditioning Units
- Boilers & Pressure Vessels
- Elevator motors, ventilation fans, and water pumps all fit into the mechanical category.
- Hot Water Tanks
- Renewable Energy
You can read more about Equipment Breakdown coverage in one of our previous articles by clicking here.
Earthquakes can be devastating and no one needs to point that out to you. If your building is in an area where earthquakes are even remotely possibly, you may want to look at this endorsement since earthquake related damages are excluded from commercial insurance policies.
Blanket Glass Coverage
Replacing glass can be an expensive endeavor. The costs can keep rising when you factor in any burglary protection or artwork. Standard commercial insurance policies will have exclusions that could have you footing the bills.
The employee dishonesty coverage will provide coverage for losses resulting from the fraudulent or dishonest acts of employees. Make sure you discuss this coverage with your insurance professional so that you are fully aware of the conditions required for this coverage to react in the event of a loss.
Inflationary increases in the cost of a building will happen. When the building has a significant value, the 3-4% annual inflation increases of the buildings value can add up quickly. This coverage increases the amount of insurance on the building during the policy period to reflect the rising value of the building for the event of a total loss.
The Final Word
As you can see from some of the example coverages and from the claim example above, saving a couple of hundred dollars a year isn’t worth bills worth thousands of dollars today.
If your current broker or insurance company doesn’t have you properly insured, or you are out there looking for some expertise in your insurance world, don’t hesitate to contact us.