Commercial Property Insurance in New Hampshire
What is Commercial Property Insurance?
Businesses that own buildings and equipment have made significant investments in their assets, and those assets must be protected. In addition to properly shielding assets from inclement weather, fire or theft, businesses in New Hampshire can also get commercial property insurance for many of their assets.
Commercial property insurance policies help insure property that businesses own against covered losses. These policies are similar to homeowners policies, in that both types of policies protect expensive assets. There are some differences between the two kinds of policies, though.
What Businesses Can Benefit from Business Property Insurance?
Almost any business that owns property in New Hampshire may benefit from the protections that business property insurance offers. Policies may cover buildings, equipment and/or inventory, so they’re useful to a wide range of businesses.
Some businesses that are primarily located outside New Hampshire but have property in the state might want a business property policy that’s specifically for their New Hampshire-based assets.
What Coverages Do Business Property Insurance Policies Offer?
Most business property insurance policies provide two primary coverages:
Building/Dwelling Coverage, which typically covers buildings
Contents Coverage, which typically covers inventory and equipment
One place where business property policies can diverge from most homeowners policies is in the area of liability coverage. While homeowners policies often include some form of liability protection for policyholders, business property policies may not. Because businesses have varying liability protection needs, commercial liability coverages can be acquired through liability-specific policies and may not be included with a property policy.
(As is true with most policies, exact coverages can vary and there may be exceptions to these generalities. Businesses should carefully review any commercial property or other policy they’re considering purchasing with a knowledgeable agent who can clearly explain what protections the policy in question provides.)
How Do Open-Peril and Named-Peril Policies Differ?
Business property insurance policies may be written as either open-peril or named-peril policies. Open-peril policies normally cover losses that aren’t specifically excluded within the policy, while named-peril policies tend to cover only the risks that are listed within the insurance contract.
As the name implies, open-peril policies offer broader protections than closed-peril ones.
How Does Actual Cash Value and Replacement Cost Coverage Differ?
Any contents coverage included in a commercial property policy is normally written as either actual cash value coverage or replacement cost coverage. Actual cash-value coverage generally protects covered equipment and inventory up to the actual cash value. Replacement cost coverage usually covers the cost of replacing covered items.
Replacement cost coverage typically provides the more robust protection, as depreciation frequently reduces the the actual cash value of items.
What Factors Affect Commercial Property Premiums?
Insurance companies take into account many factors when calculating what to charge for commercial policies. Some of the items they might consider include:
The size, location and value of the insured property
The operations that go on inside the property
Any security systems that are installed on the property
Any past claims that the business has previously filed
How Can Businesses Acquire Commercial Property Insurance?
Insurance companies offer commercial property coverage in varying ways. It can be offered as a stand-alone policy, through business owners policies (BOPs) or through commercial package policies. Which of these options makes the most sense for a business depends on what other insurance coverages the business needs.
For help finding a policy that will protect your New Hampshire business’ property, contact the insurance specialists at HPM Insurance. Our agents are both independent and familiar with commercial property insurance. They’ll help you determine what commercial property protections your business need and what the best way to acquire a policy for your business is. They can then compare multiple suitable policies from different insurers to help you find the best choice.