Having the right amount of business property insurance will ensure that your business can continue to operate should the worst happen.
There are two types of commercial property insurance: actual cash value coverage, and replacement cost coverage.
Actual cash value coverage provides reimbursement for the depreciated value of your damaged business property, and will help you protect the investment you have made in your building. But in many cases, actual cash value coverage will not provide sufficient coverage to repair or rebuild the lost or damaged property with similar materials at today’s prices. However, it might provide suitable reimbursement that allows you to purchase a similar building at another location.
Replacement cost coverage provides reimbursement for the cost to repair or rebuild your business property with similar materials at today’s building costs. You will be able to use new materials and the value of the lost property will not include a deduction for depreciation.
As a business owner, you must decide what actions you would need to take if your business property were destroyed. Could you relocate your business? Or, is your current building and location the only one that is suitable? In order to determine the replacement cost for your building and the amount of insurance you should therefore carry, you need to determine what it would take to rebuild the building with the same materials at today’s construction costs. The market value of the building and the value of the land it sits on are not part of this calculation; the figure you come up with could be similar, more or less than what you could actually sell the property for.
Remember that your business property’s replacement cost is not static. Building costs fluctuate all the time and often skyrocket after a large-scale disaster. You need to review your replacement cost figure every year to make sure that you have sufficient coverage. You must also take into account the cost of debris removal before reconstruction can begin, inflation, and new building codes that can have a significant impact on the cost of construction.
We have helped businesses of all types and sizes determine their business property replacement cost. We will work closely with you to assess the risks you face, whether or not you would need to move or rebuild after a disaster, and any other types of business insurance you might need to protect your investment and your livelihood.
Have you reviewed your business insurance coverage lately? Now is the time! Contact South Group Insurance Services today to conduct a complete business insurance review.
Your Trusted Choice Insurance Agent, SouthGroup Insurance Gulf Coast wants you to know you can call on us with your questions or concerns seeking more helpful advice or answers to your pressing insurance questions. A full insurance review is always your best bet to make sure you have all of the adequate coverage for your personal insurance needs. Remember, we offer a personalized insurance review to anyone who is interested at no charge – just visit any one of our 3 convenient coastal locations!
We are your LOCAL Trusted Choice Advisors, SouthGroup-Gulf Coast http://www.southgroupgulfcoast.com , SALES AND SERVICE AGENTS: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Brittany Jones, Denise Russell, Melissa Moran, Alex Treutel, Anne Gillam, Ashlie Moody, Mark Strickland, and Whitney Zimmerman at SouthGroup Gulf Coast. You can reach us by snail-mail or in person: 412 Hwy 90, Suite 6, Bay St Louis MS 39520, email: firstname.lastname@example.org , phone: 228-466-4498 fax:888-415-8922, FaceBook www.facebook.com/southgroup.gulfcoast, or Twitter www.twitter.com/atreutel !
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