Do you Rent or Own the building?
This determines which policy type you need.
It matters! Renters usually only need to cover the contents inside, while owners need to insure the entire structure.
What type of property do you have?
Your industry determines your fire and theft risk.
Why does industry matter for property insurance?
Carriers rate property risk based on what you store and do on-site. The assets you need to protect vary wildly by industry:
- Restaurants: High risk of kitchen fires; high value in spoilage/refrigeration.
- Retail: High risk of theft; heavy value in inventory.
- Offices: Lower fire risk, but high value in electronics and data.
What are your biggest physical risks?
Select the hazards you are most worried about.
Fire & Storms
Repairing walls, roofs, and structural damage from disasters.
Theft & Vandalism
Replacing stolen inventory, computers, tools, or smashed windows.
Lost Income
Paying rent and payroll if you have to close down for repairs.
Understanding your coverage types
Commercial Property Insurance (CPI) is split into three main categories. A good policy covers all three:
What is the value of your business property?
Estimate the cost to replace everything (Inventory + Equipment).
Replacement Cost vs. Actual Cash Value
When valuing your property, you have two choices. We recommend Replacement Cost for most businesses.
- Recommended Replacement Cost Value (RCV): Pays to buy new items to replace the old ones, without deducting for depreciation.
- Basic Actual Cash Value (ACV): Pays what your items were worth today (used value). If your 5-year-old laptop is stolen, you only get the value of a 5-year-old laptop.
Complete your protection
Most businesses bundle Property with these coverages:
Why isn't my homeowner's insurance enough?
Homeowner policies almost never cover business equipment or inventory. If you run a business, you need a Commercial Property Policy (CPP).
It’s not just for the building owner. Even if you lease your space, you own what's inside. This policy is the only thing standing between a fire and bankruptcy.
We cover what matters:
- Furniture & Fixtures
- Inventory & Stock
- Signs & Glass
- Records & Data
Estimated Property Insurance Costs
Rates depend heavily on whether you own the building or just the contents.
Office Contents Only
For businesses renting space that only need to cover computers, desks, and basic files.
Store Inventory
Renters who have significant value in stock, equipment, or tenant improvements.
Full Structure
Covers the entire building reconstruction cost plus contents. varies by square footage.
What impacts your property rate?
Proximity to fire stations, fire hydrants, and coastal storm zones.
Brick and steel buildings are cheaper to insure than wood frame buildings.
Having sprinkler systems and burglar alarms can significantly lower your rate.
Older buildings with outdated wiring or plumbing cost more to insure.