Choosing the right amount of commercial building coverage can be confusing. Leading Austin insurance agents would recommend that you purchase at least 25% more coverage for your commercial building. Here are some reasons why you should consider this increase in coverage to rebuild at today’s costs:
- In the event of either a partial or total loss you must tear down and remove the damaged building or part of the building damaged if just a partial loss.
- Most policies covering buildings provide some coverage to remove the damaged part, usually up to 25% of the loss.
- 25% covers this removal as long as the damage and debris removal are less than the policy limit.
- If the loss is determined to be a total loss, ALL of the insurance would be required to cover the amount of the loss (which would not leave any funds to remove the damage.)
- As a commercial insurance agency with many years of experience, we would suggest that you purchase enough insurance to rebuild the building at today’s costs and an extra 25% of its value to allow the funds necessary to remove the damaged building.
There are a number of different Austin commercial insurance policies that can be customized to meet commercial building insurance needs. Contact us at 512-454-5266 for more information.