Most commercial properties (and homes) don’t have enough insurance. If you haven’t updated your coverage in the last few years, you are most likely underinsured.

Why the higher costs? Increased costs in  labor, materials and updated building codes  are a few reasons. Also, most contractors have plenty of work so they do not have to be as aggressive with their pricing. Below are important factors when determining your building limit:

Replacement Cost
The amount of insurance on your building should represent the construction costs of your building, not the real estate or tax value. Local construction costs estimates are $200-300 per square foot.

Ordinance or Law Coverage
Most cities and towns have new codes that require you to upgrade your building. This is an  additional coverage  and not included in your basic insurance policy. We recommend at least 25% of your building limit for this coverage.

Debris Removal
The damaged portion of your building needs to be removed before the rebuild. Average debris removal costs are $20 per square foot.

If you have a serious loss to your building, you want to make sure you have enough insurance to rebuild. We suggest you hire a contractor to give you an estimate. A real estate appraisal or insurance company estimate is not the answer.

In most cases, the additional insurance costs will be minimal.  Don’t find out after a claim that you don’t have enough insurance on your commercial building or home.

Any Questions? Just Ask Us!