Mistakes people make when buying Commercial Property Insurance in New Jersey
If you own a business in New Jersey, consider getting commercial property insurance. This policy covers commercial buildings and residential buildings, saving you from costly repairs, which you may frequently encounter when operating a business in the state because of the area’s susceptibility to hurricanes, floods, and blizzards.
Here is everything you need to know about commercial property insurance in NJ to protect your business.
What is Commercial Property Insurance?
It is also known as business property insurance. This type of insurance is similar to New Jersey’s homeowners’ policy, except commercial property policies are designed to cover commercial buildings and lands rather than personal residences. It provides business owners with dwelling and personal property coverage, and additional options that insure items such as fixtures, decorations, supplies, and inventory inside the commercial building.
However, unlike New Jersey’s homeowners’ policies, business insurance does not include general liability insurance, you need to purchase this policy separately.
What Does Commercial Property Insurance Cover?
A commercial property insurance policy in New Jersey usually covers most of your valuable business assets, including the physical building and its content. The following are what a typical business property insurance coverage includes:
- The structure (building) of your business.
- The furniture inside and out of the structure.
- Equipment, including gardening tools, computers, and more.
- Lost inventory.
- Fencing and landscaping.
- Damage to the property of others.
- Exterior signs.
- Important documents.
You can tailor your commercial property insurance to your New Jersey business’s specific needs, allowing you to add more options for some exposures and less for others.
Coverage Options For Commercial Property Insurance in New Jersey
Insurance commercial policy in NJ provides a vast range of coverages for a commercial or residential building, inventory inside the property, equipment inside or outside the building, and more. The insurance also covers losses from break-ins, vandalism, wind, fire, hurricane, and other disasters typical in NJ.
The following are some of the coverages typically included in a standard New Jersey commercial property insurance:
Business Personal Property Insurance
It covers the property’s expenses at a specified location, such as furniture, fixtures, inventory, and other equipment. However, be aware that most commercial property insurance policies in NJ have limited coverage for items taken off the specified location.
Business Income Insurance
It is also known as business interruption coverage. This option reimburses you for lost profits and fixed expenses during the period your business is closed. Business income applies when the building is getting reconstructed from damages caused by fires, storms, floods, and other natural disasters. It also covers expenses when you experience financial losses due to New Jersey civil authorities limiting customer access to your business’ location after a calamity.
The ones mentioned above are some typical insurance coverages that the standard commercial property policies include. Below are additional coverages that you can add to ensure the optimal protection of your business.
Like with most insurance policies from different states like New York, the standard commercial property policy package does not include flood coverage. Having flood insurance is crucial, especially when running a business in New Jersey since the area experiences frequent hurricanes and blizzards that usually result in heavy flooding. You can add this policy separately to protect your businesses from flood damage.
General Liability Insurance
This option is a must-have for business owners. It protects both your commercial and residential building from a lawsuit or liability charges when a third party experiences bodily injuries or property damage while on your premises.
Electronic Data Processing Insurance
If you run a tech-savvy company and posses many gadgets, including computers, you need the EDP policy. That is because most standard commercial policies have limited coverage from computer networks, and having EDP covers your expenses from uninsured scenarios, like power surges and virus attacks.
Although most businesses settle for the standard commercial property policy, every establishment requires different coverage options. Hiring an agent from a reputable insurance agency can help you choose the insurance policy and range of coverage that is best for your business.
How Much Does Commercial Property Insurance Cost in NJ?
Determining the price for a business property insurance depends on the value of all your business assets, including the building. However, other factors influence the costs of this policy.
The following factors include:
If your commercial or residential real estate location is near coastlines or beaches, you will likely have higher insurance rates because the area is prone to storms and other natural disasters. That’s why most business owners in NJ, may pay a higher amount than the other businessmen in the country, like in New York.
The niche of your company plays a role in the pricing of your commercial policy. For instance, a realtor’s office carries fewer risks than a large fast-food chain or a car repair shop. The lesser the risks are, the cheaper the insurance rate is.
If your building uses top-quality materials, fireproof materials, upgraded electrical wiring, plumbing, and HVAC (Heating, Ventilation, Air Conditioning), your insurance rates would be higher than average.
Although the costs for a commercial policy in NJ vary per insurance agency, the average rate is between $77 to over $500 per month.
What Businesses in New Jersey Can Benefit from Commercial Property Insurance?
You will only need commercial insurance if you own a property in New Jersey. For instance, if a shop leases or rents space in NJ, the owners will not need this type of insurance. Businesses that own the buildings of these shops are the ones that need this insurance coverage to protect them from damages and third-party injuries.
New Jersey businesses that rent space or buildings can still benefit from the business property insurance, covering expenses for their supplies, inventory, and other supplies. These policies are significantly cheaper than insurance that provides coverage for a building.
Call your local insurance agency and hire an agent to help you grab the best deals on a commercial property insurance policy. These agents provide the right insurance policies and coverage options for your properties’ specific needs, helping you protect your businesses at an affordable rate.
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