🏢 Commercial Property Coverage – Explained Simply

Commercial Property Coverage

 

🏢 Building Coverage

      Protects the physical structure you own or lease — walls, roof, floors, and permanently installed fixtures (like plumbing, electrical, or HVAC).

📦 Business Personal Property (BPP)

     Covers the items inside your building that keep your business running:

-Furniture, desks, and chairs

-Computers, machinery, and equipment

-Inventory, stock, and supplies

-Property you own and use in business, even if off-site (varies by policy)

đź’µ Deductible

     The amount you agree to pay out of pocket before insurance kicks in.

-Example: If you have a $2,500 deductible and suffer $10,000 in covered damage, you pay the first $2,500 and insurance pays $8,500.

-Choosing a higher deductible usually lowers your premium, but increases your out-of-pocket risk.

⚖️ Ordinance or Law Coverage

     Standard property coverage pays to repair or replace damaged property as it was. Ordinance or Law coverage steps in when local building codes require upgrades or extra work:

-Demolition Costs – If part of a building is damaged but code requires the rest to be torn down too.

-Increased Cost of Construction – Covers the added cost to rebuild up to modern code (sprinklers, wiring, accessibility, etc.).

-Undamaged Portion – Protects the value of the part of the building not physically damaged but required to be replaced due to law.

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