Commercial Property Insurance in NYC

Commercial property insurance is specifically designed to protect the physical assets of a business. This includes the building itself, the contents inside like equipment and inventory, and even outdoor fixtures. In the unpredictable environment of New York City, having such insurance is crucial to safeguard a business from unexpected events like fires, thefts, or natural disasters.

Insurers require some way of determining the value of your property at the time of loss. The two methods that they use are replacement cost and actual cash value.

Replacement cost valuation (RCV) is exactly what it sounds like. The insurer will pay (up to the policy limit) whatever it costs to replace your property with one of a similar kind and quality. However, the dollar amount is based on the cost of the property at the time that it was built, not what it would cost to rebuild the same facility in today's dollars. Let's say that you built your office in 2002 for $100,000, and it got leveled by arson in 2017. But now, the cost to rebuild what you had is $150,000. By adjusting your policy limits on a regular basis to keep up with the rising costs of labor and materials, you'll be able to secure payment for the current cost to rebuild your property.

Actual cash value (ACV) is defined as the replacement cost minus depreciation. The insurer will pay (again, up to the policy limit) whatever it costs to replace the property with one of a similar kind and quality,less depreciation. Using the same example as above, the office that you built in 2002 now costs $150,000 to rebuild, but it has depreciated over the last 15 years (3% each year, let's say). In 2017, it's worth approximately $63,000, so it has depreciated by about $37,000. Therefore, the insurance company would give you $113,000, not the $150,000 that you really need to replace the building.

It's important to note that, for commercial insurance purposes, the "market value" of the building is meaningless and should not be considered when determining ACV or RCV. In the event of a loss, all the insurance company cares about is making you whole – in other words, restoring your building to its original condition so that you can get on with your business.

We provide coverage for all types of commercial property, including:

Apartment Buildings and Condos – Commercial rental property insurance includes condominium and coop complexes, and a typical package will include loss of rent / loss of income insurance.

Commercial Office Buildings – Coverage for office buildings, including mixed-use properties.

Warehouses – Coverage for the structure and contents within a warehouse.

Manufacturing – Our packages are tailored to your type of manufacturing facilities and include product liability insurance.

New York City Business Group specializes in commercial insurance, and we offer all of our clients a free policy review. We'll go over the details of what's covered in your current policy, and then we'll review the needs of your business operating in the NYC environment. Next, we'll confirm that those coverages are in the policy.

Once we've established the correct coverages, we look at the policy limits, and that's generally where we find inflated limits. This is done to increase policy premiums and agency commissions, but at the NYC Business Group, we take the necessary information about your business or property and quote your insurance policy with many different insurance companies so that you don't overpay for coverage.

If your business is located in Manhattan, Queens, Brooklyn, the Bronx, or Staten Island, call us at 718-554-3425 or request a free policy review or quote online. We look forward to speaking with you soon.

Absolutely. Bundling policies can lead to discounts and offer the convenience of dealing with a single policy or insurer. Many business owners find it beneficial to bundle their commercial property insurance with liability insurance, ensuring comprehensive coverage.

Yes, even if you don't own the building, you likely have valuable contents inside, such as equipment, inventory, and fixtures. A commercial property insurance policy can cover these items. Additionally, some lease agreements may require tenants to carry certain types of insurance.

It depends on the specifics of your policy. Many commercial property insurance policies offer an option to include business interruption coverage. This compensates for lost income and additional expenses caused by a covered peril that interrupts the normal business operation.

A deductible is the amount you pay out-of-pocket before your insurance covers a claim. For instance, if you have a $10,000 deductible and suffer a $50,000 loss, you would pay the first $10,000, and your insurance would cover the remaining $40,000. Typically, choosing a higher deductible results in lower premiums, but ensure you can afford the deductible amount in case of a claim.

Several factors influence the cost of commercial property insurance, including the location of the property, its age and condition, the type of construction, the replacement value of contents, and the level of coverage selected.

While commercial property insurance offers broad coverage, it doesn't cover everything. Typical exclusions might include floods, earthquakes, or intentional acts by the owner. Always read the specifics of your policy, and if you have concerns about exclusions, discuss additional coverage options with your agent.

First, prioritize safety. Once everyone is safe, document the damage with photos or videos. Contact your insurance agent promptly to report the incident and get guidance on the claims process. It's beneficial to maintain an up-to-date inventory of your property, which can expedite claims processing.