Commercial Property Insurance | Compare Quotes - Bluewell (2024)

FAQs

Why is my commercial insurance quote so high? ›

More Claims

And when insurance companies have to pay out, they need to take more in. That's just how insurance works. If they ran out of money, they wouldn't be able to pay future claims. Over time, this leads to higher premiums for everyone (not just the ones who filed a claim).

The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.

Typically, insurance premiums for commercial properties are set by multiplying the value of the building and its contents by a value that correlates to level of risk. Most of the time, properties with high risk have higher property insurance rates, while lower risk properties cost less to insure.

Building/property damages: The deductible for a loss/occurrence is 5% of the insurable value (because it's in California) at each location, with a minimum of $500,000 . With a policy value of $30 million, the deductible is $1.5 million. Business interruption: The time element deductible is 30 times the ADV.

Surprisingly Great Rates - State Farm®

Florida grapples with insurance fraud and hurricane impacts, while Texas battles tornadoes and hailstorms, affecting new business coverage. California, dealing with substantial wildfire losses, encounters limited rate increases.

When it comes to underwriting and rating commercial property insurance, insurers examine four key characteristics of a building: its construction, occupancy, protection and exposure (COPE).

To perform a commercial real estate valuation, you need to consider variables such as income from rent, construction and maintenance costs and the value of similar buildings in the surrounding area. The available data can determine which approach is best suited to calculate the property's value.

What is property price formula? ›

Also known as GRM, the gross rent multiplier approach is one of the simplest ways to determine the fair market value of a property. To calculate GRM, simply divide the current property market value or purchase price by the gross annual rental income: Gross Rent Multiplier = Property Price or Value / Gross Rental Income.

A margin clause is a nonstandard commercial property insurance provision stating that the most the insured can collect for a loss at a given location is a specified percentage of the values reported for that location on the insured's statement of values.

For example, if 80% coinsurance applies to your building, the limit of insurance must be at least 80% of the building's value. If the policy limit you have selected does not meet the specified percentage, your claim payment will be reduced in proportion to the deficiency.

Commercial property insurance protects your company's physical assets from fire, explosions, burst pipes, storms, theft and vandalism. Earthquakes and floods typically aren't covered by commercial property insurance, unless those perils are added to the policy.

If you're more likely to get into an accident, you won't want to pay out a higher deductible. However, if you're generally a safer driver, your car insurance premiums will be lower with a $1,000 deductible.

Property Rates Increase Due to Higher Values

Driven by factors such as inflation and increasing construction costs, the value of commercial properties is on the rise. As a result, insurers are adjusting property insurance rates to reflect these elevated values.

“The rising inflation, cost of car repairs, shortage of auto parts, increased labor prices, shortage of labor, increased length of time to repair causing longer car rental periods, and the rise in claims litigation have increased the overall costs that insurers have paid in claims,” she says.

Safety Measures and Driver Record

Insurance companies tend to look at the past three to five years of a truck driver's history when coming up with their premiums. Truck drivers who have a history of traffic violations and/or accidents on their record will lead to a higher rate because of the perceived increase in risk.

If you notice your car insurance keeps going up each time you renew, it could be from rising car insurance rate trends over time. These are often caused by factors outside your control, like increases in the costs to repair and replace vehicles or increases in claims and claim severity in your area.