Understanding Commercial Property Insurance: Coverage Options and Claims Process

Understanding Commercial Property Insurance: Coverage Options and Claims Process

In New Hampshire, commercial properties have a greater income potential than residential investments.

Commercial property investors can build wealth through these investments, but what happens if a natural disaster hits or you experience theft?

Without commercial property insurance, you face massive costs that could put you in the red. This guide aims to help investors understand the importance of commercial coverage and the claims process. Keep reading to learn more.

What Does Commercial Property Insurance Cover?

Commercial property insurance can cover most commercial properties and everything in them. A policy will protect your building from damage caused by natural disasters, theft, and fires.

Coverage will help an investment property owner recover from financial loss due to unexpected perils.

A commercial insurance policy might cover tools and equipment. Always understand your policy's details to see if these coverages are included by default. If they aren't, you could get endorsement coverage.

What Does Commercial Property Insurance Not Cover?

Protecting your property involves knowing what isn't covered just as much as what is covered. Your policy details will vary, but these types of damages are typically not included:

  • Normal wear and tear
  • Routine maintenance
  • Flood damage
  • Business interruption from utility outages
  • Losses from tenants using the building

An insurance agent will run through coverage details to ensure you understand the ins and outs of your policy.

Commercial Property Insurance vs. Commercial Building Insurance

Not many owners realize that there are differences between commercial property insurance and commercial building insurance. It's important to know how they differ to decide what coverage you need.

Commercial property insurance can provide coverage for multiple business assets. It will include liability protection and business interruption coverage.

In contrast, commercial building insurance focuses on the property's structure and includes coverages for fixtures, walls, and the building foundation. Some policies include liability coverage and loss of rental income.

Once you choose an insurance model, you can value your investment property to find out how much coverage you need.

The Claims Process

The commercial property insurance claims process varies based on your insurance agency and policy. Before you need to file a claim, it's recommended to learn about the claims process.

The claims process will follow some form of these steps:

  • Initial contact and claim review
  • Getting an estimate of damages
  • Settling the property damage claim
  • Receiving payments
  • Managing repairs

Once you report your claim, an independent adjuster will inspect the damages and collect information. You can hire a property management company to handle claim filing and other responsibilities on your behalf.

How Can Property Managers Help?

Being a commercial property owner comes with its advantages, but there are time-consuming responsibilities you have to complete.

You can choose to outsource these tasks to property management companies that specialize in commercial investments.

Our reputable property managers at PMI Green Rock can help you protect your investment by finding the right insurance policy and filing claims when necessary.

With over 20 years of industry experience in New Hampshire, we have what it takes to handle your commercial property needs. Contact us today to learn more about our services.