California Property Insurance
By Adam Kosloff As a California business owner, you face numerous risks and liabilities when you invest in any type of property. California property insurance can protect you against financial devastation in the event of a natural disaster, criminal mischief, or other exigency which causes damage to your place of business. On the surface, shopping for insurance is intuitive, but there are important nuances you should consider. Protecting Your CA Property What losses are typically covered under California property insurance? Environmental damage, such as rain and fire damage, and theft are generally covered. In certain cases, your insurance company may offer protection against business interruption as well. This ensures that you will be reimbursed for income lost due to an extended closure. The best types of coverage will protect you not only until reopening, but until your income returns to pre-closure levels. You will also want to find a policy that insures not just the physical building, but the contents inside as well. Since theft is often as frequent (sometimes more, depending on your area) as weather-related damage, be sure that the policy covers everything from electronics to sensitive paperwork. Any money or stock that is kept on-site should also be included in the policy. California Disaster Protections To return to weather-related and natural disasters, California is an earthquake prone state. As a result, California insurance companies are required by law to offer you an earthquake provision for a slightly higher premium. This provision will cost more or less depending on how close your property is to an earthquake fault; the insurance companies use complex algorithms to calculate the risks homes face. Despite the fact that most of Southern California is desert terrain, Southern California businesses must often contend with rain and water damage as well. During the spring floods of 2005, for instance, many California businesses suffered foundational or structural damage. The damage was far-reaching and the costs for repair were higher than many had expected or planned for. Is it possible to purchase insurance which will guarantee complete coverage in the event of total loss? There are basically two kinds of coverage you can get for total loss. A company may provide compensation for the actual cash value of your business, but this won't necessarily cover all your losses. For instance, a cash value policy may not cover certain building regulation upgrades. Comparing Replacement Cost and Actual Cash Value Policies The other kind of policy you can get is known as a replacement cost policy. While so-called guaranteed replacement cost policies will cover most property damage, not all replacement cost policies are created equal. Thus, it's critical to read over any exclusions, endorsements, and declarations before you sign on the dotted line. Bear in mind also that your property insurance policy is a signed contract. Any disclosures or agreements that are not put into writing will likely be thrown out in the event that you go to court over your policy. Be meticulous and vigilant when analyzing the fine print of your policy, and shop around carefully before picking an insurance carrier. It's always a good idea to talk to an independent insurance agent to get a professional opinion.
This article is posted on ArticleInsider.com. You may view this article online by visiting the following address: http://www.articleinsider.com/article/228122