December 13, 2018
Water can cause some of the most extensive damage to commercial buildings. Knowing this, many business owners would like coverage in the event that their building is damaged by water. However, business owners would be surprised to learn that most commercial policies do not provide coverage for water/sewer backup or for traditional flooding. Sometimes these coverages can be provided by endorsement to the commercial property policy, while other times a separate policy will need to be purchased to provide coverage.
To begin, it’s important to define the terms and understand the difference between the two causes of loss:
Continue reading Flood Insurance Vs. Water Backup Coverage
November 14, 2018
Ordinance and law coverage (O&L), might be one of the single most important coverages a building owner can have in their commercial insurance portfolio, and surprisingly, most have never heard of it. O&L coverage provides for the loss caused by enforcement of city ordinances as they relate to buildings after a loss.
The coverage comes in three parts, referred to as either part A, B, or C:
- Loss to the undamaged portion of the building
- Demolition cost
- Increased cost of construction
Continue reading Ordinance and Law Coverage and its importance to commercial building owners
October 17, 2018
Contributing Author: Mark Rogina, CPCU / Wirtz Insurance Agency, Inc.
You’ve just purchased a new piece of commercial real estate. When it comes time to insure it, your insurance agent provides you with a commercial insurance quote in which the building replacement value is much higher than you actually paid for it. Since you invested a lesser amount into it, why would you insure it for more? You only want to be covered for what you actually paid for the piece of property.
Unfortunately, this is a scenario that plays out all too often. The market value of property ends up being far less than what it actually might cost to rebuild the building from the ground up. To understand this fully, it is important to define some key terms:
Market Value – the cost to purchase a property
Replacement Cost – the cost to rebuild a property using today’s construction methods and materials Continue reading Insuring to “Value” & Coinsurance Clause