Business Insurance
Commercial Property Insurance for operating companies.
Buildings, tenant improvements, equipment, and inventory — valued and structured so a partial or total loss actually rebuilds the business.
What a property policy actually covers
A standard property policy responds to direct physical loss to covered property from a covered cause of loss — fire, wind, theft, water damage, and a long list of named perils (or all risks, on a special-form policy). The coverage is structured around three buckets: the building itself, business personal property, and tenant improvements and betterments.
Replacement cost vs actual cash value
Replacement cost (RC) pays what it costs today to rebuild or replace the property, with no deduction for depreciation. Actual cash value (ACV) deducts depreciation. RC valuation is almost always the right answer for buildings and equipment that need to be replaced after a loss — but many smaller policies still default to ACV, especially on roofs, HVAC, and tenant improvements.
Coinsurance, agreed value, and the underinsurance trap
Most property policies include a coinsurance clause that penalizes the insured at the time of loss if the limit was less than 80% (or 90%, or 100%) of the actual replacement value. Agreed value endorsements waive coinsurance in exchange for a current statement of values. We push for agreed value any time we can — it eliminates the single biggest source of surprise denials at claim time.
Frequently asked questions
How do we set a property limit we can defend?
Start with a current replacement-cost worksheet from a third-party valuation source — not the book value or the prior year's limit indexed by inflation. We then layer in tenant improvements, business personal property, and any equipment exposure that needs its own line.
Is flood covered under our property policy?
Almost never on the base form. Flood is placed separately — through the NFIP for residential-style risks or through private excess flood markets for commercial buildings. We map flood zones at the address level before quoting.
What happens if our building is underinsured at the time of loss?
If your policy includes a coinsurance clause and you carried less than the required percentage of replacement value, the insurer pays only the proportion you insured — even on a partial loss. Agreed-value endorsements waive that math; we use them where carriers will offer them.
Do we need separate coverage for tenant improvements?
If you signed a lease that makes you responsible for the build-out, then yes — TI&B coverage needs to match what you actually invested. Many tenants assume the landlord's policy covers their improvements; it usually does not.