Insurance protects you from any losses that you might incur owing to damages to your property or assets when it comes to building insurance. In simple time, this is a policy taken up for the building or property you own which protects you from different types of natural disasters or mishaps or any other type of damage causing event.

But it is vital to find out exactly what is covered under the insurance policy, which is why you have to understand the different types of coverages for building insurance policies.

What is your coverage?
In case you are taking up a commercial building insurance, the policy will automatically have some things which will not be covered under the policy. It doesn’t necessarily matter how extensive your policy is or how much premium you are paying for the same. Standard exclusions are part of any commercial building insurance policy and normally don’t cover fires, be it the cause of someone’s negligence or a genuine mishap. Theft, vandalism are not covered under commercial building insurance clauses owing to the magnitude and scale of coverage for the same. You might just have to take up multiple insurance coverages to be protected against different types of liabilities that may incur.

Which type of property is covered?
It doesn’t matter if you own as residential or business property which comes under your commercial business. As long as it is counted as part of your business assets, commercial building insurance has to be taken up with the following conditions and clauses in place. Commercial building insurance will generally cover the following assets as part of your policy including furnishings, fixtures, equipment, building inventory, building and general supplies along with covering the building property itself. Special equipment’s and expensive gear will need an additional clause for them to be covered as part of the insurance policy and also might need an additional insurance policy for the same.

Commercial building insurance owners will have the option to insure the business at its replacement value or cash value. The major difference with replacement value insurance and the cash value is that replacement value will get you the building value for insurance as of today. Cash value insurance will take the value of the building at its depreciation. It is more beneficial to take up building insurance, especially commercial building insurance.