It is devastating to own a business for years and suddenly it is wiped out by a storm. That is just one scenario and reminder of why businesses need commercial insurance. No one wants to be left holding the bag and insurance pays to repair or replace a building and so much more. However, business owners need to do their homework and purchase the policy that offers the most protection. There are usually three basic types of commercial polices, basic form, broad form and special form.
Basic form policies cover common perils while broad form policies cover common perils plus:
* water damage
* sprinkler leakage
* damage caused by ice, sleet and snow
* building collapse
Special form policies usually have certain exclusions. Floods and earthquakes are often excluded, and business owners must buy separate coverage for these things. Other common exclusions include acts of terrorism, war, nuclear disaster and insect infestations. Additionally, policies offer replacement cost coverage, actual cash value coverage or a combination of the two. ASAP Insurance explains the differences to businesses shopping for Commercial Insurance in Houston TX. Replacement cost coverage pays to rebuild or replace a structure based on current construction costs. Actual value coverage rebuilds or replaces a structure minus depreciation. Owners have to remember that it costs more to construct a building today than it did twenty years ago. Everything is more expensive including materials and labor.
Consumers looking for commercial insurance company in Houston TX should consider an umbrella policy. Umbrella policies include every coverage a business needs. Business interruption coverage is a must. Imagine a business is destroyed in a fire and the owner loses everything. Business interruption coverage pays for lost income when the business cannot function normally. Further, valuable papers coverage takes effect when business records and other valuable papers are lost. If a business has Commercial Insurance in Houston TX, they should have extra expense coverage. This pays extra costs to return the business to normal after an event. Umbrella policies also provide coverage for break-ins and liability. A business is a major investment that needs to be protected in the event of an unforeseen occurrence.
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