Investment Property Insurance Recommendations
We recently asked Matt Reiling, insurance agent with Farm Bureau Financial Services, to better educate us on investment property insurance. He was a wealth of information that we thought our owners would find interesting.
“Business property insurance provides financial protection for your business buildings, business personal property, loss of business income and other business exposures. Your policy’s property coverages will depend on your insurance needs. Rates are dependent on a number of different items.
Your business property coverage can be set up on the basis of one of three valuation methods:
- Replacement Cost – Building and Business Personal Property: Covers your property for replacement cost, up to the policy limit, without a deduction for depreciation.
- Actual Cash Value – Building: Covers the value of your property at the time of loss or damage, up to the policy limit, with a deduction for depreciation based on age and condition.
- Functional – Building and/or Business Personal Property Valuation: Replaces your covered property with equivalent property used for the same function. This valuation method may be appropriate for obsolete property.
This coverage includes the buildings and structures listed in your policy declarations, including all of the following:
- Completed additions
- Indoor and outdoor fixtures
- Permanently installed machinery and equipment
- Your personal property in apartments or common areas furnished by you as landlord
- Personal property used to service and maintain the building and premises, including:
- Fire extinguishing equipment
- Outdoor furniture
- Floor coverings
- Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering.
Business Personal Property
Coverage is provided for property at or within 100 feet of the described premises, including:
- Property you own that is used in your business
- Property of others that is in your care, custody or control
- Tenant’s improvements and betterments you acquired or made to a building you do not own at your expense but cannot legally remove, such as fixtures, alterations, installations or additions
- Leased personal property that you have a contractual responsibility to insure
- Exterior building glass (if you are a tenant)
Interruption of computer operations
- Limited coverage for fungi, wet rot or dry rot
- Money orders and counterfeit money
- Newly acquired or constructed property
- Outdoor property – detached and attached signs
- Personal effects
- Personal property off-premises
- Pollutant cleanup and removal
- Valuable papers and records
- Preservation of property
- Water backup and sump overflow
Business liability coverage helps shelter your business against losses due to liability claims, which can be unpredictable and potentially devastating to your business. It covers the amount you are legally obligated to pay as damages for types of injury or harm to third parties. One key benefit of BusinessMax is that defense costs are provided in addition to the liability limits selected on the policy.
Bodily Injury and Property Damage Liability – Bodily injury includes injury, sickness, disease, and death. Property damage liability coverage applies to physical damage to tangible property, including loss of use of the damaged property
Premises Medical Payments – Separate Per Person Policy Limit
- Medical payments coverage is provided in connection with an accident on your premises or involving your operations, regardless of fault, subject to the medical payments limit.
Damage to Premises Rented – Separate Policy Limit:
- This coverage is also referred to as Fire Damage Legal Liability. Coverage is provided for property damage liability – the insured’s legal liability for fire damage to rented premises. This coverage is not a substitute for property coverage on a leased premise.
Business Income and Extra Expense Coverage
Loss of business income and extra expense coverage is provided if your business is damaged by a covered cause of loss. Coverage begins after a 72-hour waiting period and continues until the business is restored. Coverage includes:
- Continuing overhead expenses
- Extra business expenses
- Loss of business or rental income
- Ordinary payroll expenses for 60 days, including employee benefits, union dues and workers compensation premiums
- Business income from dependent properties
Equipment Breakdown Enhancement Coverage
BusinessMax includes breakdown coverage for boilers and pressure vessels, as well as mechanical and electrical breakdown of air conditioning units or systems, refrigeration systems and electrical systems. Coverage is provided not only for the unit or system, but also for loss of business income, increased operational costs, refrigeration contamination and spoilage.
This coverage also covers the kind of damage to building wiring or other business personal property that might result from a surge of artificially generated power as service is being restored after a storm that causes widespread electrical outage.
An umbrella policy provides liability coverage over and above the limits on your Commercial Liability Policy for staggering lawsuits and liability judgments. Umbrella coverage can play a significant role in your business liability insurance strategy.”
If you are interested in more information, discussing your options, or have questions, you can contact Matt Reiling at Farm Bureau Financial Services. His telephone number is 402-421-4741. You can also email him at firstname.lastname@example.org.