Keeping Up With Insurance:
Outdated Limits Could Destroy Businesses
Protecting your business is protecting your livelihood so it’s really important to make sure your business is insured enough from any potential threat – big or small. As an example, a simple burst of pipes and flooding inside the building could really affect your business and the flow of your income.
How is your property coverage determined?
By your insurance agent or company, the coverage is decided using an ITV (Insurance To Value). It’s the cost to replace or rebuild your property in case of any claims which is different from Sales Value or the amount of the property when it is purchased. Moreover, ACV (Actual Cash Value) is also used as your property coverage as this is the value of the property when it is damaged. This amount is typically determined by subtracting the depreciation from the replacement cost value.
What if my coverage is outdated or lower than the recommended ITV?
Out-of-pocket expenses. The least thing we want to happen in our businesses if a claim occurs. Getting adequate coverage is necessary to ensure that your property will be fixed after a claim without spending any dime from your pocket as It serves as a protection to your business as you try to recuperate from the claim.
As business owners, we always want to make sure that all possible trouble will be handled in the future and it includes the coverage of your insurance that can protect you from threats of claims. It is also recommended to check for current developments and trends to watch out regarding Property Insurance Market.
Being aware of the current development and trends provide necessary information to understand as to why insurance costs may increase such as inflation issues, frequency of natural disasters, etc. In that case, that gives an updated coverage limit a high importance so we can be sure that we are protected by our insurance and not being forced to pay a portion of any damages that are not covered by your insurance.
So while you still have time, you can ask yourself: Are you buying enough insurance? Contact us! We can discuss if you have enough coverage and make sure that you are making the most of your insurance coverage.
