Any business that owns or leases a building, workshop, factory or retail outlet should take out commercial property insurance in Strongsville, OH as a top priority.
Commercial property insurance will cover any commercial property located in Strongsville, OH in case of events such as fire, deliberate damage through vandalism, or some kind of natural disaster.
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It can be bundled together with other sorts of insurance, such as general liability insurance in Strongsville, OH.
What can you expect to pay for commercial property insurance in Strongsville, OH?
The actual costs for commercial properties insurance will depend on several individual factors that relate to your exact needs. We can recommend that you should include all of the following aspects of your own buildings and location in Strongsville, OH to derive the correct commercial property insurance rate formula.
- The current value of the property.
- The current mortgages or liens on the property (do not under-insure when money is still owed).
- Type of business for which the property is used.
- Levels of public access.
- Provisions for security, fire prevention, alarms and sprinklers, extinguishers etc.
- Types of materials and products stored in the buildings.
- General condition of the property (age, previous damage, quality of construction etc.)
- General condition of the location in Strongsville, OH (such as location of nearest Strongsville, OH fire stations, police stations and Ohio emergency services, quality of roads, etc.)
Using these factors fed into a commercial property insurance rate calculator, you should be able to get a general classification of the level of risk that most insurance companies in Ohio would adopt for your property.
Along with that, you should get a number known as the total Insurable Value (IV). Insurance companies will quote for you a rate of premium per $100 of IV.
You can then estimate the likely price in terms of average cost per square foot for commercial property insurance from the following table.
For business insurance in Strongsville, OH businesses operating in sectors like:
Orderlies, Chess School, Judicial Law Clerks, Tool Grinding Repair in Strongsville, OH have been able to get policies with the following rates:
|Subject||Level of cover||Likely average cost per year|
|General liability||$1 million per year, maximum $500,000 single claim||$400 – $550|
|Commercial property cover||Calculated on insurable value (IV)||35-45 cents per $100 IV|
|BOP||$1 million liability + calculated commercial property cover||$350 – $500 & 35-45 cents per $100 IV|
|General liability||$2 million per year, maximum $1 million single claim||$500 – $750|
|Commercial property cover||Calculated on insurable value (IV)||45-55 cents per $100 IV|
|BOP||$2 million liability + calculated commercial property cover||$450 – $700 & 35-45 cents per $100 IV|
|General liability||$5 million per year, maximum $1 million single claim||$1100 – $1850|
|Commercial property cover||Calculated on insurable value||55-75 cents per $100 IV|
|BOP||$10 million liability + calculated commercial property cover||$950 – $1750 & 55-75 cents per $100 IV|
How to make sure your property in Strongsville, OH is properly insured
Start by negotiating the terms and conditions of policy to be included in any commercial property insurance application in Ohio.
The wording needed for any commercial property in Strongsville, OH should include the following essential provisions and clauses:
- A statement of what the covered property comprises.
- Including definitions of the size, type, purpose, address and all other factors that clearly identify which building is covered by the policy.
- A definition of what constitutes a loss to the covered property, with reference to what constitutes direct physical damage.
- Particular attention should be paid to known risks in Strongsville, OH such as winter storms, flooding, winds, snow, earthquakes.
- A statement of all the locations in Strongsville, OH within the policy’s coverage.
- Especially for businesses that have multiple buildings located in different parts of Strongsville, OH.
- A definition of the covered causes of loss.
- Subject to the building’s location in Ohio, you may need to specify some risks that would be generally excluded, such as chemical explosions, lightning, damage by smoke, hail, civil actions or riots, aircraft crashes, collapsed sinkholes or volcanic activity.
- A statement defining the policy period.
- Usually, policies run for twelve calendar months from the date of acceptance, but you may wish to specify different date ranges to match your own requirements, such as calendar year, business accounting year, or to identify times of higher cover during peak business periods and lower cover during the off-seasons in Ohio.
- A list of any excluded properties.
- In cases where your commercial property includes some external sites or other locations in Strongsville, OH, you should get a list of every property that is included in the coverage in order to reduce the possibility of disputes in a claim.
- A list of any properties that may be subject to limitations or exclusions of coverage or causes
- Similar to the condition above, you should get a clear statement of any limitations that are implied in the coverage of properties in Strongsville, OH
- A definition of coverage for any property belonging to third parties located within the areas covered by this policy.
- If your business includes storage or activity on goods and products that are not owned by you (for example, if you run a workshop for repair of automobiles, you may need to have commercial auto insurance Strongsville, OH), there should be a clause that states that these are included in the general cover in the event of a claim.
- Any special considerations for property under construction.
- Buildings under construction need to be insured in a different way from fully constructed properties, because of the extra levels of risks and dangers. In such cases, the fact that the building is under construction should be acknowledged in the policy, as well as a defined date at which it will change over to full coverage.
- A statement of how changes can be made to the coverage, for example, due to acquisition or sale of properties.
- Instead of having to re-negotiate the insurance policy whenever there is some change in your ownership, either by selling some property or acquiring new property, you should have a provision allowing for the coverage to be extended or reduced by negotiation of the new premium.
- A definition of “named perils” coverage.
- Many insurance companies in Ohio allow you to insure against only certain risks in order to keep premiums as low as possible. For example, if your business in Strongsville, OH is located further away from any specific hazard, then you can exclude that risk by only specifying the “named perils” that you want to be covered for.
- A statement of the covered property valuations, and the agreed method for obtaining this valuation.
- Part of the negotiations in the commercial property insurance application with your commercial property insurance agent should stipulate the agreed method of valuation of all listed properties in Strongsville, OH, so that future coverages can be calculated on a similar basis. This allows you to budget forward for the costs of future insurance.
- A statement of the application of deductibles.
- Insurance companies often include a deductible amount that applies to any claim. You have to pay the stipulated amount before the insurance company pays its share. The purpose of this is to minimize “nuisance claims”, where the administrative costs for the insurance company are higher than the actual claim itself.
- A clause defining the terms for cancellation by both parties.
- It is certainly in your own interests to have a method for backing out of a contract, and insurance companies expect the same facility. As long as these clauses are fair and equitable both to you and to the company, they are a necessary component of any insurance policy.
There are also many websites from which you can get your commercial property insurance quote online.
What are the proper methods for estimating your Strongsville, OH property insurance values?
Since the main basis of calculation of the total premium will rest primarily on the value of the properties being insured, it is important to have a good method of calculating these values.
This will mean that you will receive the proper payout in the event of a claim. The best procedure would be to get professional appraisals from qualified brokers, real estate agents or business consultants and insurance companies for commercial property. They have good knowledge of what commercial property in Strongsville, OH is worth.
Instead of simply relying on your original cost of the property at the time of purchase (plus any improvements), there are ways of using indexed or trended original costs. Another way is to look around your business area in Strongsville, OH at the current purchase prices for similar properties.
Use what they ask per square foot (multiplied by your own property’s size) to reach a current market value.
Naturally, you need to take into account any sorts of limits or special provisions that would apply to your own property.
What other insurances can be bundled with commercial property insurance in Strongsville, OH?
As we indicated in the estimates of insurance costs, it is very common for small to medium-size businesses to bundle several types of business insurance into a single policy. Most insurance companies in Ohio offer what is known as a Business Owners Policy (BOP) that includes commercial property cover with general liability and income protection.
Business Income protection (also known as business income coverage)
Covering any loss of income should damage to its property that is covered by the commercial property insurance policy cause a break in its normal flow of business operations. This includes the time taken for repairs or replacement of damaged commercial property.
General Liability insurance for businesses in Strongsville, OH
Covers your business in the event of any claim by a third party of injury or damage while they are located on your property.
An example of a possible claim may be if someone visiting your building trips on a loose step and falls, suffering some injury. You could be liable for medical costs, any associated damage to their personal property, as well as ongoing claims such as lost income while recovering and many more.
Any business has a legal “duty of care” for people and property, and the best way to avoid being personally responsible in such a case is to have general liability insurance in Strongsville, OH.
Are there any rating agencies for Ohio insurance companies?
In the same way that you may decide which banks to open your business accounts with, by getting information from the leading grading agencies like Moody’s, Fitch Ratings, and S&P Global Ratings, you can make your decision on which insurance company to purchase your policy from by consulting either of the two independent insurance rating agencies, the American Association of Insurance Services (AAIS) or Insurance Services Office.
AAIS is a national insurance advisory organization in the United States that publishes information about the insurance policy forms and prices that customers can use in their decisions. This allows you to compare policy terms more easily.
AAIS provides you with the risk history assessment details of property insurance companies. AAIS gives you details of the products of more than 700 insurance companies.
Does a standard commercial property insurance policy in Ohio include earthquake and flood coverage?
No. Standard commercial property policies exclude floods or earthquakes and any other claims arising from damage caused by earth movement, except for any fires resulting from earthquakes.
However, in most cases, earthquake coverage can be included by agreed endorsement to a new policy, although it may result in a higher premium.
Similarly, coverage for damages caused by flooding may be obtained by endorsement to commercial property insurance policy.