How are commercial property insurance rates determined?
For commercial properties, insurance premiums are set by the value of the building as well as its contents. Risk assessment of these factors determines the rates. Certain variables that help to determine commercial insurance rates include:
According to Nationwide, most of the time, properties with high risk have higher property insurance rates, while lower risk properties cost less to insure.
As you can see, it’s a complicated process with many factors. Once you find an insurance company that offers the commercial property insurance best for your needs, ask questions about specific coverage before committing. Or if you’re already with a reputable company, take the time to review your insurance policy and premiums to seek out discounts related to preventative measures like automatic fire sprinkler systems.