Insurance is every property owner’s first line of defence against financial losses – yet many commercial buildings remain without insurance cover. If you have been putting off the decision to insure your commercial property, here are some good reasons why you need comprehensive cover.

Property damage – especially from fire – is on the increase

The recent spate of mountain fires in Cape Town, many of which have come dangerously close to homes and buildings, are a reminder that property damage can happen without warning.

Commercial buildings that are near mountains, have thatch roofs, or are built in dry areas with an abundance of veld or wild grasses are especially vulnerable to fire. If your building fits this description, there is no time to lose.

Unlike a broken window or burst pipe that only affect a certain portion of your building, a serious fire could render the whole structure unusable. In this scenario, your financial losses could be huge – and without insurance, this could spell disaster.

  • To protect your property investment, it’s crucial to have insurance that covers both property damage and the cost of emergency fire service.
  • Some municipalities have begun charging for their firefighting services, and you will have to pay these costs if your policy doesn’t specifically cover them.
  • Some insurers cover the cost of fighting approaching fires by helicopter water bombing – this could save your building from damage before the fire even reaches it.

Check your insurance policy in detail

An insurance agreement should set out the precise details of your cover – in other words, it should tell you exactly what you are insured for and what you aren’t. There are a couple of specifics to remember and factor into the agreement when taking out a policy on your business, here are 3 essential points to consider:

  1. If you’re not sure whether your policy covers a certain scenario, just ask – your insurer should provide you with a clear answer and provide you with a quote for the exact cover you need.
  2. When it comes to insuring your building, it’s essential that the amount of cover you agree to is enough to rebuild in case of a serious fire.
  3. The rebuilding cost may be higher than the market value of the property, which is why a proper valuation is essential to prevent under-insuring your building.

Fire and water damage can have crippling consequences on any commercial property. Mitigate the risks by ensuring that you have comprehensive cover, after all – it’s your business.

For more information on commercial property that has been valued accurately or commercial space for your business, contact us today.

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