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Building and Commercial Property Insurance
Building coverage provides protection for permanent structures listed on your policy. Completed additions, permanently-installed fixtures, machinery and equipment, outdoor fixtures, owned personal property used to service, repair or maintain the building and additions under construction or repair are all included in this definition.
Types of buildings coverage include: Buildings — Actual Cash Value Valuation This valuation method pays for the cost to repair or replace damaged property with like kind and quality, less reasonable deductions for wear and tear, deterioration and economic obsolescence. Building — Replacement Cost Valuation This loss valuation method pays for the cost to repair or replace damaged items with like kind and quality without deduction for depreciation. This is important since you could face a substantial loss if you must replace property at today’s prices but receive only the depreciated value of the property that was destroyed. Buildings — Co-Insurance A policy may contain a co-insurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. For example, covered property worth $100,000 may require a minimum of 80%, or $80,000, of coverage for compliance with the policy’s co-insurance requirement. If only $60,000 of coverage is carried (25% less than the required $80,000), then any loss payment would be reduced by 25%. Buildings — Agreed Value Valuation This coverage is used to remove the co-insurance requirement for covered property. With it your company agrees that the amount of coverage purchased is adequate, and any co-insurance requirements are waived if the limit of insurance equals the agreed value.
This coverage protects business personal property owned by your firm and used in your operations. Furniture and fixtures, equipment and machinery, raw stock and finished goods all fall within this category. Personal property of others while located in your covered building or within 100 feet of the premises can also be insured. Contents located off premises are not covered and must be insured by alternate methods. Types of business personal property coverage include: Business Personal Property — Actual Cash Value Valuation This valuation method pays for the cost to repair or replace damaged property with like kind and quality, less reasonable deductions for wear and tear, deterioration and economic obsolescence. Business Personal Property — Replacement Cost Valuation This loss valuation method pays for the cost to repair or replace damaged items with like kind and quality without deduction for depreciation. This is important since you could face a substantial loss if you must replace property at today’s prices but receive only the depreciated value of the property that was destroyed. Business Personal Property — Co-Insurance A policy may contain a co-insurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. For example, covered property worth $100,000 may require a minimum of 80%, or $80,000, of coverage for compliance with the policy’s co-insurance requirement. If only $60,000 of coverage is carried (25% less than the required $80,000), then any loss payment would be reduced by 25%. Business Personal Property — Agreed Value Valuation This coverage is used to remove the co-insurance requirement for covered property. With it your company agrees that the amount of coverage purchased is adequate, and any co-insurance requirements are waived if the limit of insurance equals the agreed value.
This website provides a basic summary of the insurance products offered by Reynolds Insurance. It is not a statement of contract and coverage may not apply in all areas. For a complete description of coverage, please read the insurance policy, including all endorsements.
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If it's important... it's got to be Reynolds.
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