Basic Guide to Commercial Property Insurance in New York City

New York City is among the most disaster-prone cities in the U.S. Some of the common catastrophes in this city can include floods, winter storms, wildfires, and hurricanes. When such disasters happen, businesses experience massive property damage, which causes great financial harm that sometimes results in the permanent closure of businesses. Although it is difficult to prevent such perils, you can brace your business to survive through them and bounce back. One way to achieve this is to purchase the right commercial property insurance.

What Is Commercial Property Insurance?

Your business faces the risk of theft as well as property damage from perils such as fire, vandalism, and natural disasters. To resume business operations, you will have to either repair or replace the damaged property, depending on the severity of the damage. However, paying for this out of pocket will most likely harm your business finances, and that’s where commercial property insurance comes in handy. It is a policy that covers your business property such as buildings, equipment and machinery, and furniture from damage, vandalism, and theft.

How to Get the Right Coverage for Your Commercial Property?

To get the right coverage for your commercial property, consider the following basics:

  •  Compare different quotes – Before you purchase your coverage, ask the insurance provider to give you multiple quotes for comparison purposes. You can also check quotes from multiple insurance carriers and possibly save on your commercial property insurance.
  •  Consider a replacement coverage – A replacement policy covers the value of the property before depreciation. This means that with it, you can manage to rebuild your building or purchase new equipment without straining financially, unlike an actual value coverage which only pays for the value of the property after depreciation.
  •  Make sure the insurance provider has a good rating – While coverage is important for your business, the insurance carrier should also be in a position to pay the claim in case of property damage or theft. Therefore, ensure you monitor the rating of your provider since it can fluctuate with time.

How to Extend Your Existing Commercial Property Insurance Coverage?

Depending on the nature of your business and the exclusions in your current coverage, basic commercial property insurance may not be enough. For complete protection, you should consider purchasing the following extended coverages:

  •  Sewer backup insurance – If your commercial property insurance does not cover water damage from sewer backup, you can add a sewer backup insurance endorsement to it.
  •  Water damage legal liability insurance – At times, a sewer backup or burst pipe in your premises can cause damage to your neighbor’s property. In such a situation, your water damage legal liability policy would cover the claims resulting from the damage.
  •  Ordinance or law coverage – Being an old city, most buildings in New York need refurbishing to meet the current construction standards. The law covers the costs associated with upgrading your premises in compliance with the city laws.
  •  Fair rental value coverage – During repairs in your rental units, you will lose your rental income for as long as the repairs last. Thankfully, the rental income insurance can cover the lost income during this period.

Commercial property insurance is one of the essential business insurance coverages for New York businesses. To get the right coverage, the team at Kneller Insurance Agency is here to help with all of your business insurance needs. Contact us today! We serve Chatham, Copake, Valatie, Tilden Place, and the neighboring cities of New York.

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