Your building is one of your business’s largest assets. If it’s not functional, neither is your business. That’s why it’s important you have the proper Illinois commercial property insurance policy to protect your business or your tenants from financial losses.
As you’ll discover, there’s a lot more to a commercial property insurance policy then coverage for buildings and contents.
For example, what would happen if your accounts receivable records were destroyed in a fire? Or, what would happen if a power outage hits your business for two weeks? How would you go about replacing the income?
That’s why a comprehensive Illinois commercial property insurance policy from Weiss Insurance Agencies will help you survive the loss of any vital property–both large, small, and even hidden.
With a comprehensive approach to your policy, you will be protected for the replacement cost of all of your vital property.
To get a free insurance quote, complete the quote form on the top of this page.
Commercial Property 101 | Replacement Cost vs. Actual Cash Value
As a business owner, whose business depends on the property bought to operate or collecting rent from its tenants, it’s important to understand the difference between replacement cost and actual cash value.
Replacement cost coverage will pay to replace your property with new property of like kind and quality, up to the policy’s dollar limit. An actual cash value policy will pay the replacement cost of the property minus depreciation due to age and normal wear and tear.
For example, your building has a ten year old roof. In a storm, a tree fell through your roof and now it needs to be completely replaced. A replacement cost policy would reimburse you for a new roof of like and kind quality, as long as it was within the property limits. In comparison, an actual cash value would deduct the 10 years of wear and tear of the roof. Therefore, say the roof cost $50,000 to replace you may only be reimbursed $15,000 from the insurance company because the actual lifespan of that roof was only a few more years.
Other Important Commercial Property Coverages
While it’s important you know if your building is insured for replacement cost or actual cash value, there is additional coverages to look into pending your situation.
These coverages are sometimes not on the standard business property insurance policy and unless added by your insurer, may be excluded:
- Boiler and machinery coverage – Coverage for boilers, air conditioning units, compressors, steam cookers, electric water heaters, and similar machinery that’s used within your business.
- Extra expense coverage – Coverage that pays additional costs to return your business to normal after it’s damaged.
- Inland marine coverage – Coverage for business property that’s in transit by land, air, or inland waterways.
- Newly acquired or constructed buildings coverage – Automatically insures a new building if you add it to your policy within a certain amount of time. Therefore, there won’t be any delays in closings due to lack of insurance.
- Ordinance or law coverage – Coverage that will pay for additional costs to repair or rebuild a facility to current building codes after it’s damaged. For example, if current building code now states that you must have an elevator in your facility if your location is greater than two stories, you’ll get reimbursed to bring you back to code.
- Valuable papers coverage – Coverage for your business records and other valuable papers..i.e. accounts receivable, customer information, etc…
As you can see, there’s a lot that goes into a business property insurance policy. Lucky for you, you don’t need to understand your entire policy. That’s why you have experts like us at Weiss Insurance Agencies, who can help you decide the coverages you need and don’t need for your unique situation.
Worried about the costs? Commercial property insurance in Chicago and throughout Illinois is scalable to exactly what property you want covered so you can easily control your insurance costs.
Illinois business property insurance is available to any business owner with property to insure, even if you lease the space.
Here are two reasons to get started right away!
- Since your property changes, it’s always a great time to review what you need covered–you can save money and make sure that your property is fully covered.
- It’s easy and fast to get a no-risk quote. Simply fill out the form on the top of this page and we’ll get back to you within a day with custom and affordable business property insurance policy.