Commercial insurance is fundamentally different from Residential Property in that with most insurance policies there is no extension endorsement available. Residential carriers often offer extended replacement cost endorsements with options of 25% and 50% available. This gives the insured some extra protection in the event that the coverage A limit is inadequate to rebuild the home. Commercial policies generally do not offer this. To ensure sufficient coverage to rebuild a commercial building after a loss, we encourage the following:
- Insure to value
- Use a 90% co-insurance clause
- Opt for the Replacement Cost option when available
- Use Agreed Amount valuation when available
I will explain each of these ideas in follow up blogs.
If you want a free no obligation review of your current coverage, you can reach us at: Quotes@BandCIns.com