Replacement cost is what you rebuild with. Actual cash value is what you argue about.
Commercial property covers your buildings, equipment, stock and improvements against fire, theft, weather and the other named perils on the form.
Tell us the situation.
A licensed human replies the same business day — not an auto-responder, and not five producers calling at once. We shop it across our carriers and tell you if the policy you already have is the right one.
We use this to quote and service your insurance, and we do not sell it or pass it to lead networks. Privacy policy.
What commercial property businesses actually need.
Buildings
The structure you own, and permanently installed fixtures.
Without it — A fire is a rebuild funded entirely by you.
Business personal property
Equipment, stock, furniture and tools inside the premises.
Without it — Everything that makes the space usable is replaced at today’s prices, out of cash.
Tenant improvements
The fit-out you paid for in a space you do not own.
Without it — The landlord insures the shell, and the build-out you funded is not on their policy.
Where commercial property shows up.
- Landscaping & Grounds Maintenance
The yard, the shop and the equipment inside them still need replacing after a fire.
- Auto Services
Lifts, diagnostic equipment and the building itself have to be replaced at today’s prices out of cash.
- Restaurant
Kitchen fires are the most common total loss in this trade, and equipment replaces at today’s prices.
- Retail
Stock, fixtures and tenant improvements have to be replaced out of cash after a fire or a burst pipe.
- Medical & Dental Practices
Imaging, chairs and clinical equipment replace at today’s prices, not at book value.
- Directional Boring
The yard, the shop and everything stored in them still need replacing after a loss.
- Pet Services & Veterinary
Kennels, surgical and grooming equipment replace at today’s prices, and a boarding facility runs overnight without staff on site.
- Physical Therapy Practices
Tables, modalities and clinic fit-out are expensive to replace after a fire or a flood.
- Chiropractic Practices
Tables, imaging and clinic fit-out represent most of the practice’s capital.
- Glass Contractors & Glaziers
The shop, the racks and the stock still need replacing after a loss.
- Mobile Mechanics & Heavy Truck Repair
The shop, the lifts and the parts inventory still need replacing after a loss.
What commercial property operators ask us.
Replacement cost or actual cash value?
Replacement cost pays to replace with new; actual cash value deducts depreciation and pays what the item was worth on the day. On a ten-year-old commercial kitchen the difference is not marginal, it is most of the claim. Actual cash value is cheaper and is the right answer far less often than it is sold.
What is coinsurance and why did my claim get reduced?
Coinsurance is a clause requiring you to insure at a stated percentage of full value, typically 80% or 90%. Insure for less and the insurer reduces every claim proportionally — including partial ones, which is how a business with a $40,000 loss and an underinsured building receives $25,000. It penalises understating values, which is precisely the temptation when premiums are quoted.