The Overlooked Importance of Insurance
Insuring to value and risk mitigation strategies for commercial properties can help protect property owners’ assets for long term business success. The focus on generating income and reducing expenses can lead some property owners to ignore or undervalue insurance and risk reduction, such as security and fire protection, and regular property maintenance. However, these are vital to avoid the potential for disastrous property or financial losses.
Commercial property owners may not always consider all the potential risks their asset is exposed to.
When it comes to insuring their property, the questions to ask are: What do they need to protect against and how much value do they need to insure for? This is why property owners also need to understand their policy coverage and limitations. While keeping the premiums low reduces their expenses, the policy needs to cover potential risks and provide insurance-to-value for their assets.
Among the issues in the changing landscape are increasing numbers and costs of disasters from climate change, escalating construction costs and longer reconstruction time frames. Consider what partial damage or the total loss of the commercial property could do to a business and its revenues. Commercial Property Ownership Is More Than Investing: The Overlooked Importance of Insurance discusses this topic.
e2Value® offers an easy-to-use estimator that can accurately calculate replacement costs and actual cash value for virtually any commercial structure from smaller retail shops to larger, more complex facilities such as hospitals, warehouses, schools and manufacturing centers. As the leading provider of web-based property valuation solutions, e2Value can assist you with all of your Insurance-to-Value (ITV) and collateral value monitoring needs. Contact us for more information.