Property insurance protects you from most damage that can happen to your property. Personal property policy covers the contents inside the property, whereas, real property policy covers the physical building. Coverage can be specialized and extended to add additional coverage for items such as outdoor fixtures. Inventory must be taken to provide an accurate description of the property. The value of all items should be decided. This will help determine if you need additional insurance.
What does this all mean?
The CSI website provides this claim example:
“Bill owns the building in which he runs his Real Estate brokerage. A fire occurred, and not only was Bill’s building damage, but most of the business personal property (furniture and computer equipment including backup files) was destroyed. The contractor assigned by the insurance company, informed Bill, that it would take 3 months before Bill can return to his building to continue his normal business operations. In order for Bill to get his business up running immediately he had to find a temporary location to rent and stock, which took him 2 weeks to do. During those two weeks Bills employees were unable to work. The insurance company not only paid for the repair of the building and replaced all of the business personal property that was originally destroyed in the fire, but they also reimbursed Bill for the loss of business he suffered during the two weeks he was out of business, the extra expense he endured by renting at another location for 3 months and for the employees wages that were lost for the 2 weeks it took him to find a temporary location.”
As they say, “It’s better to be safe than sorry.” It is important to be prepared and to protect your properties. To find out more, contact us today.
