Your building has more than one value
Purchase price is not reconstruction cost. Keep location values, improvements and lender requirements in the same review.
Zurich: accurate property values ↗Commercial real estate
Insurance for commercial property owners.
Insurance for commercial property owners and portfolios. We focus on rebuilding values, rental income, lender requirements and the loss you retain.
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A detail worth checking
What does a 5%
deductible really cost?
$250,000
On a $5 million building, if the deductible is 5% of that building's insured value.
Illustration only. The applicable value, minimum and deductible basis depend on the policy.A closer look at property deductibles ↗The insurance program
Your property insurance program.
Explore the parts of a program we can review with you.
Talk through your coverage ↗Commercial property
Buildings, contents and equipment, with location-level values and loss-settlement terms.
Business income & rental value
Covered income loss and continuing expenses, with restoration limits and recovery after reopening considered separately.
Liability & excess
Premises, ownership and management exposures, insured entities and liability limits.
Flood, wind & earthquake
Peril-specific terms, deductibles, sublimits and separate policies where appropriate.
Ordinance or law
Demolition and code-upgrade exposures that may extend beyond ordinary rebuilding costs.
Property management E&O
Covered professional errors, with tenant-discrimination provisions and service definitions checked.
What to bring to a review
Start with the property type, location and timing. For a fuller review, bring the current policies, statement of values, rent roll and lender's insurance checklist. Roof, plumbing and maintenance records help explain completed improvements.
Common questions
Questions from property owners.
Should the limit match the purchase price?
Not automatically. Investment value and reconstruction cost measure different things. Review a current replacement-cost estimate and the policy's valuation and insurance-to-value requirements.
Will an extended income period cover a longer rebuild?
Do not assume so. The permitted restoration period or time cap and protection for income that remains impaired after reopening are separate questions. Check both against realistic recovery assumptions.
Does an older building have to use E&S insurance?
No single construction year or plumbing type determines the market. Condition, improvements, occupancy, location and insurer appetite affect options. Compare the actual admitted and specialty-market terms.
Does property insurance automatically include flood?
Not necessarily. Check the cause-of-loss form, exclusions, sublimits and deductibles. Flood or earthquake may require separate coverage; lender requirements alone do not establish the full exposure.
What if an older building must meet newer codes after a loss?
Review ordinance or law coverage for the undamaged portion, demolition and increased construction cost. Ordinary property coverage may not fund every code-related expense.
Can Canadian owners insure U.S. properties through this team?
Yes. We work with our sister brokerage in Canada and review the property ownership, lender requirements and local insurance needs. U.S. placement is handled through A Squared by personnel licensed in the applicable jurisdiction.
From our journal
Related articles.
More review notes & industry references
Know the cash cost of the deductible
Calculate percentage deductibles in dollars. Check whether they apply by building, location or event and whether minimums apply.
IREM: what underwriters need ↗A tenant leaves. The exposure changes.
Vacancy, new tenants and conversions can change coverage conditions. Review occupancy changes before they happen, not just at renewal.
Chubb: underused and converted properties ↗Let's talk about your insurance.
Tell us about your business and what you need.