Let’s start with some basics about how insurance works. Insurance protects people and companies against major financial losses that occur because of damage of loss of property. Insurance companies determined premiums by taking into account the risks associated with the business. The amount of coverage they need to be fully protected, their past history and statistics that predict what percentage of businesses will suffer a loss or file a claim. The amount of property insurance coverage is based on the cost to rebuild and restore your business, not market value.
The rising cost of rebuilding
In recent years, we’ve experienced devastating weather events at home and worldwide. In 2011 alone, the U.S. experienced $12.3 billion in insured losses from 100 significant events, many unprecedented and unexpected. Some decimated entire communities. And, experts predict that severe weather will likely continue.
Add to that, skyrocketing building costs. As communities here and abroad rebuild, the demand for building materials and labor has intensified, driving up prices. For example, in the fifteen months between the second quarter 2010 and third quester 2011 the following materials increased significantly:
Insurance-to-value is a critical element of any well-constructed property insurance program. If you are your agent or broker keep values up-to-date, this can protect your business by providing you with the coverage you need should a major loss occur.
Traveler’s gas easy-to-use tools that will help you and your agent or broker address this issue. For more information about our ITV and Business Income worksheets talk to you agent or broker.
At Duncan Financial, can help you find what coverage you need to feel most comfortable. Also being an independent insurance agency gives us the capability to write with multiple carriers. Call us today for a customizable package to fit your life style.