If you are covered by commercial property insurance you're protected against damage caused by storms, fire or other catastrophe. In many instances theft is also protected. If you’re interested you can also get commercial property insurance through https://www.lumber-ins.com/.
Commercial property insurance is classified into three kinds.
Basic Form Policy – Which protects you against common incidents like storms and fires.
Broad Form Policy – Which protects you against structural collapse, water damage, sprinkler leaks, and damage from sleet or snow.
Special Form policy – Which covers all events other than those specifically mentioned as excluded; these include earthquakes, floods, general wear and tear, nuclear disaster, war and terrorism.
What kind of commercial property insurance policy pays out?
A commercial property insurance policy pays in the form cash value, replacement expenses or a combination of both.
Coverage for replacement costs – In this instance you will be paid the amount needed to repair or rehabilitate your property. However, the worth of your land isn't taken into consideration.
Actual cash coverage – In this scenario you will be paid the value of your home that is calculated after adding in depreciation. Depreciation can result in a decrease in market value since your property is susceptible to wear and wear and tear. Be aware that if your company is destroyed completely the insurance may not be sufficient to restore your business.