Property Insurance
Things to remember when buying property insurance.
- Be sure your building and its contents are insured on the Special Cause of Loss form. This is the broadest available, and costs little more than cheaper forms which could leave you unprotected in many areas.
- Include the Agreed Value Endorsement. This removes any penalties for “coinsurance,” a complicated concept that could leave you penalized in the event you have a claim and the coverage on your building doesn’t reach certain minimums specified by the insurance company.
- Purchase Blanket Coverage when possible. This lumps all Building limits together and all Business Personal Property limits together so that you have a “lump sum” to apply to any one loss. It gives extra protection in case you underestimated on any one building or the contents – giving you the aggregrate to draw from.
- Consider deleting the mechanical breakdown exclusion. Most policies won’t cover if your furnace, air conditioner, telephone system, or boiler breaks down. But for a nominal price it can be included. Ask your agent what removing that exclusion would cost.
