There are also additional types of outdoor presence, like signs, fences, borders or outbuildings. These are components that can be impacted by damage, meaning they need to be protected. That’s why a commercial property insurance policy in California (also referred to as business property insurance) is one of the smartest and most important investments you can make in your business.
In California, commercial property insurance coverage varies, but they’re generally classified by the type of event leading to a loss, and by what things are insured. Basic property insurance usually covers losses caused by fires or explosions, theft, vandalism and damage from vehicles or airplanes. Additional coverage, referred to as “endorsements”, can be added to provide further protection for things such as earthquakes and flooding. The key items insured in business property insurance include your building, office equipment, inventory and outdoor items on the premises.
The best way to make the most of your business property insurance is to take inventory. Before meeting with a Paramount agent, take an inventory of your business. This not only helps you determine what property you want to insure, as well as its replacement value, it also helps you figure out what everything you own is worth. Doesn’t that sound like a requirement for a conscientious business owner like yourself?
The right commercial property insurance policies will pay for losses based on the replacement cost of the item or its actual cash value. Replacement cost (RC) is the amount necessary to repair, replace or rebuild property on the same premises, with comparable materials and quality, without deducting any amount for depreciation. Actual cash value (ACV), is the cost to replace it with new property of similar style and quality, minus depreciation.
There are advantages and disadvantages of Replacement cost (RC) and Actual cash value, so it would be worth having a talk with your Paramount agent in order to make sure you have your property adequately insured.