In Michigan, business owners purchase a variety of policies to protect their investments. Among these investments is their commercial property. The owner must obtain coverage based on the terms of their commercial business loan. They also need coverage to mitigate associated risks of a financial loss. A Commercial Property Insurance Agent in Monroe County MI could provide answers for business owners who need coverage.
What is the Difference Between True Value and Market Value?
When choosing coverage, the commercial business owner must review terms related to the value of the property. The true value is based on the exact cost to rebuild the property in its current location. The market value is calculated by the price at which similar properties in the same area have sold recently.
What Items Inside the Property are Covered?
Typically, all business-related items stored on-site are covered under the policy. The coverage is extended to equipment, machinery, and supplies used by the company. This could include electronics such as computers. The business owner should review the policy and adjust values as needed. In some instances, the owner may need to purchase a rider to extend coverage for select items.
What Type of Coverage is Available for Criminal Acts?
The property coverage includes vandalism and arson primarily. However, the policy may provide coverage for damage associated with a burglary. The policy pays for property repairs related to the criminal act committed. Items that were stolen or damaged are replaced according to their value under the policy.
What Equipment is Covered After Damage Occurs?
Business-related equipment is covered. However, any equipment inside the property that isn’t related to the business isn’t covered. Any equipment that is valued at a price higher than its value under the policy requires a rider and an official appraisal.
In Michigan, business owners review property coverage based on their individualized needs. The area in which the property is located may require the owner to purchase additional flood coverage. A standard property insurance policy provides payment for repairs and replacement. Business owners who need to speak to a Commercial Property Insurance Agent in Monroe County MI can click here for more information now.