How to calculate commercial building insurance premium?
Posted by Weber Insurance Corporation on January 2nd, 2019
Cost of a commercial building insurance policy is calculated on many factors like situation and construction. Insurance policy for a property that lies in a danger zone and also that hasn’t been constructed with fireproof material will cost more than that that lies in a safer zone.
If you are shopping for a risk cover for your property then you need to keep the important factors in mind. There are many insurers that offer comprehensive risk cover to property owners but it is very difficult to make an opinion on an offer without going through its details. You need to study each policy statement closely to understand its terms and conditions.
When you ask for a quote for commercial building insurance, you will be asked to furnish details of your property. The insurer would want to know the actual location of the building. The company would calculate the risk according to its findings and give the best quote for your consideration. Generally, the premium of a commercial building could cost between ,000 and ,000 but it is a general view.
Location: It is an important factor in risk coverage. If your property lies in the area that is prone to natural phenomenon like storm then the insurance premium for your property could be on higher side.
Construction: What is the age of your property? Is it constructed using fireproof material? Could it withstand storms and heavy downpour? These are questions that will help in calculating the right price for commercial building insurance. If your building is a new construction and if it is constructed using quality material then you can save some money on insurance.
Occupancy: Who’s occupying your building? For example, if it is an office of a realtor then the insurance premium would be quite affordable. But if it is a restaurant or a repair shop or a small manufacturing unit then you will have to pay a high price for getting complete risk cover.
Protection: The safety standards of your property have a say in calculating the commercial building insurance. If the property is properly guarded; it has fire extinguishers and also an emergency alarm system then you can get some respite in the premium.
Do you know that flood and earthquake aren’t covered in commercial property insurance? If you want these risks to be covered, you will have to pay extra premium to cover these risks.
For more Information :-https://www.weberinsurance.com/
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About the AuthorWeber Insurance Corporation
Joined: November 22nd, 2018
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