Hi, What is a Reasonable Amount of insurance coverage for a commercial property in earthquake and fire & liability? The property is its one-story, 3 taking With 5.500 sf building space. The property is its value of about 1.6 million.
Is the Amount Based On The Value of property to build gold The Cost The Property?
Gerardo Eliassen says...
YOU NEED TO TAKE FIRE AND SPECIAL PERILS POLICY FOR YOUR BUILDING AND A SEPARATE LIABILITY POLICY.
FIRE POLICY IS AN AGREED VALUE POLICY. YOU FIXTHE AMOUNT WHICH YOU FEEL IS NEEDED EITHER TO REBUILD THE PROPERTY AS IT IS NOW ( COST OF REMOVAL OF DEBRIS IS COVERED FREE) OR THE MARKET VALUE OF IT TODAY. TO CATER FOR INFLATION OF MATERIALS YOU MAY ADD 10% TO ITS PRESENT VALUE AND INSURE FOR THE SAME. IF YOU INSURE FOR MORE VALUE IT WILL BE SEEN AS A WAY TO EARN OUT OF A CALAMITY AND IT IS NOT IN THE SPIRIT OF INSURANCE. GOOD LUCK
V BALAJI
TRICHY TAMILNADU INDIA
Posted on August 16, 2011
