When you buy commercial property in Texas, you need to make sure you protect it properly through an insurance company licensed to operate in the state. Since insurance can be a complex topic, it helps to work with an insurance expert who understands your industry. Here are essential tips to remember when buying commercial property insurance.
5 Tips That Can Help You Buy Commercial Property Insurance in Texas
- Natural disasters are on the rise
Even if you already have a commercial property plan in place, you should review it and possibly update it since insurers make changes over time. Claims for natural disasters have been escalating over the past decade, so insurance companies have to rethink their policies to reflect environmental changes.
Floods, wildfires, and wind damage have increased due to climate change. These perils are still covered in standard commercial property plans, but insurers may inject new exclusions if disasters keep getting worse. You usually need special extra coverage for extreme natural disasters on the level of earthquakes and tornadoes.
- Civil unrest is a real threat today
Riots and other public disturbances have been on the rise in recent years. Although civil unrest is a growing threat to businesses, it’s generally not covered in a standard policy. Standard commercial property policies do protect the financial value of your assets damaged by vandalism or theft. Civil unrest, however, is more chaotic, so it requires special coverage.
- Repair and replacement costs are growing every day
Inflation and supply chain disruptions can drive up the cost of raw materials at any moment. As a result, all other costs pertaining to the property go up with it. That’s why you should be clear on the difference between “actual cash value” and “replacement cost” in an insurance policy. Look for such wording to see if the policy pays what an item was worth at the time it was damaged or what it would cost to replace it.
- Losses are much more than just physical
When production equipment gets damaged, it can mean a loss of revenue for a certain period of time. Ask your insurance agent about adding business interruption coverage to your policy if you want payouts in the event your business has to shut down temporarily due to damaged equipment.
- Yesterday’s insurance policy is not enough today
Insurance policies evolve with the times, so don’t assume that your existing commercial property policy will always be the same. Each year you need to review your policy and assess new risks that might arise. Contact an insurance expert to learn more about making sure your commercial property insurance is up to date with your needs.
Consult Family Financial Insurance Group to Get the Best Commercial Property Insurance in Texas
If you are looking for Commercial Property Insurance in Texas, contact us today. At Family Financial Insurance Group, we have got an experienced team of insurance agents who are committed to finding the best commercial insurance policy for your specific needs.