Commercial Property Insurance in New York, NY

KJE Insurance Services evaluates your commercial property and recommends proper coverage based on the structure, location, and usage. Commercial property insurance covers office buildings, strip malls, warehouses, industrial buildings, and more. We work with many commercial property insurance carriers to ensure you get the right property insurance at the right cost for your business. We ensure that your property is not only protected from losses due to fire, vandalism, or natural disaster, but that you are compensated for lost rents or income during building repairs from a covered loss. Contact us today to discuss what coverage is best to protect your investment in your commercial property.

What does commercial property insurance cover?

Commercial property insurance protects your property against the risk of loss, theft, or damage whether you own or lease your work space. It covers the cost of repairs and replacements to your place of business. Your commercial property insurance can also provide protection for business interruption, loss of income, and loss of using your property to conduct business. If you rent commercial property, it is likely a lease requirement to have commercial property insurance. If you purchase a property, your lender will require it. Without commercial property insurance, fixing or replacing damage to your property is an out-of-pocket expense. A fire or other catastrophic event can put you out of business.

What are the coverage options for commercial property insurance?

• Replacement cost coverage: repair or replace damaged property without deducting for depreciation.
• Special Form coverage:  offers the broadest type of protection, covering any sudden and accidental loss unless it is specifically excluded.
• Loss of Rents coverage: replaces lost rental income during repairs (for up to 12 months) if covered damage requires tenants to vacate the property.
• Code compliance: If your commercial property requires upgrades to meet construction codes, Ordinance or Law coverage provides extra funds.
• Sewer backup: covers water backup from the sewer system within your building.
• Water damage legal liability: covers losses if water from your building damages your neighbor’s structure or property.

What determines the cost of commercial property insurance?

These are some of the key factors that impact the cost of commercial property insurance.

• Commercial property insurance premiums are affected by the type of construction, how old the building is, where it is located, and how the property is being used by its tenants.
• An older buildings may be built with wood, so it may be more costly to repair than brick or steel in the event of a fire or other damage to the property. The quality of the building’s wiring, plumbing, and other services also impact the cost of insurance.
• Buildings near other properties using hazardous materials can add to your property insurance cost. If your property is near a firehouse or has a sprinkler system, that can help lower your premiums.
• The types of tenants you have also make a difference – a restaurant costs more to insure than a typical professional service office space with fewer risks.

KJE looks at all these factors and more to determine the best commercial property insurance coverage for the best price. Contact us today to discuss what coverage is best to protect your investment in your commercial property.

Too often I’ve had property owners try and underinsure their buildings with the thought that the entire building won’t burn down, or that they could rebuild it for a lot less than the suggested replacement cost calculations I come up with. If you underinsure you could be caught in a co-insurance jam and end up paying your share of a claim because you co-insured the building with the insurance company.  You could also be left with a shortfall if there are insufficient limits to cover the true cost of the claim.

Lastly, one of the most important areas of having sufficient limits is in your business income or business interruption coverage.  This is the lifeline of coverage should your company have a serious loss, and underinsurance here could mean the difference between life or death of a company.

How much insurance do I need for a commercial property?

The amount of necessary commercial real estate property insurance coverage varies. It depends on what a tenant or owner wants to be covered — plans can be customized for each business. Purchasing insurance can be expensive, deterring some people from purchasing a higher-priced policy. The plan should fit in the budget but also provide the necessary coverage to mitigate risks.