What You Should Know About Property Insurance

Property insurance is quite different from liability insurance. Property insurance protects you by providing reimbursement (indemnity) for loss of property you own or lease. The cause of the loss must be a cause covered by the policy (a covered peril). Some typically excluded causes of loss are: damage caused by the backup of a sewer or drain, damage caused by surge or failure of an electrical power source, flood, earthquake and damage caused by contamination.

The basis of reimbursement to you may be the "actual cash value" (replacement cost less depreciation) or "replacement cost". The Insurtec plan features the "replacement cost" basis of indemnity. Property insurance may cover your building, your business personal property, your income from business operations, outdoor signs, money on your premises and the cost of reproducing electronically stored data. Property coverage is optional under the Insurtec plans.

Normally, if you need property coverage, we at least provide business personal property (BPP). BPP covers your contents, equipment, inventory, fixtures, and your cost in any permanent improvements and betterments to the premises such as carpet and interior wall structure. Other coverage's are added to the BPP without charge such as loss of income and outdoor signs. You should insure your property to 90% of it's replacement cost. Property coverage's are subject to a modest deductible.

In some instances, there may be others who have interest in property owned by you such as a bank holding a security interest in the property as collateral for a loan or a leasing company. These entities will require insurance. Insurtec can provide proper evidence of insurance to these entities.

What you should know about Liability Insurance