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What Is Commercial Property Insurance? 

Commercial property insurance is a safety net for your business’s physical assets. It shields your company from financial losses due to unexpected events that damage or destroy your property. It can cover the building itself (whether you own or rent it), furniture, equipment, inventory, and even outdoor fixtures like signs. Some policies even offer coverage for lost income if damage forces you to temporarily close your doors. In a nutshell, commercial property insurance helps you get back on your feet if disaster strikes, minimizing the financial blow.

What Does A Commercial Property Insurance Policy Cover?

Commercial property insurance protects your physical assets from financial losses due to various events. Note that not all perils are covered automatically. Basic policies typically cover things like fire, theft, vandalism, and weather events. For coverage against floods or earthquakes, you might need to add an endorsement to your policy. Your agent at the Huneycutt Group can talk to you about the specific details of what’s covered and for how much will depend on your individual policy. It’s important to work with an agent to ensure your policy covers the specific needs of your business.

Building Coverage

The physical structure of your building, whether owned or leased, is covered in case of damage from fire, storms, explosions, or vandalism. Depending on the policy, some coverage might extend to outdoor signs, fences, or landscaping damaged by covered perils.

Business Personal Property Coverage

This includes furniture, equipment, inventory, and even important documents. If these items are damaged or stolen due to insured events, the policy helps with replacement or repair costs.

Business Interruption

This coverage kicks in if a covered event (like a fire or storm) damages your property and forces you to temporarily close your doors. It can help with:

Lost income: Pays for a portion of your net income you would have earned while you’re shut down.Operating expenses: Covers essential costs like payroll and bills while you’re rebuilding.

Are you looking for Business Insurance Coverage? At The Huneycutt Group, we represent over a dozen companies and brokers to help you find the coverage you’re looking for, at the right price.

Does North Carolina Require Commercial Property Insurance?

There’s no state law in North Carolina that mandates commercial property insurance for all businesses. However, having it is highly recommended for most businesses.  It offers significant financial protection for your business assets. Consult with an agent at The Huneycutt Group to understand your specific needs and explore the coverage options available in North Carolina.

Two types of business insurance that are mandatory by state law are:

What Factors Affect Business Property Insurance Rates In North Carolina?

Several factors influence business property insurance rates in North Carolina, affecting the overall cost you’ll pay. 

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Property-Related Factors

  • Location: Areas prone to natural disasters like hurricanes, tornadoes, or floods will typically have higher premiums due to the increased risk of claims.
  • Building characteristics: The age, construction materials, and overall condition of your building can affect rates. Older buildings or those with less fire-resistant materials might be more expensive to insure.
  • Crime rates: Areas with higher crime rates could lead to higher premiums due to the increased risk of theft or vandalism.
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Business-Related Factors

  • Industry: Businesses in high-risk industries (like manufacturing or construction) typically face higher premiums due to the potential for accidents or property damage.
  • Claims history: A history of past claims can increase your rates as it indicates a higher risk profile to the insurer.
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Coverage-Related Factors

  • Coverage amount: The value of your property and its contents directly affects the premium. Higher insured value translates to a higher premium.
  • Deductible: A deductible is the amount you pay out of pocket before insurance kicks in. Choosing a higher deductible can lower your premium, but it also means you’ll shoulder more cost in case of a claim.
  • Additional coverages: Adding endorsements for specific perils like flood or earthquake damage will increase your premium but provide broader protection.
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North Carolina-Specific Factors

  • Reinsurance costs: Reinsurance is how insurance companies manage risk by spreading it among themselves. If reinsurance costs are high in North Carolina, it might be reflected in your premium.
  • State regulations: North Carolina’s insurance regulations can influence the way insurers set rates, potentially impacting your final premium.
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At The Huneycutt Group, we’ll talk to you in detail about your business to see what types of discounts you’ll qualify for; such as, having good driving records, installing safety features in vehicles, or taking defensive driving courses for employees.

It’s important to note that these are just some of the common factors. The specific weight each factor carries can vary depending on the insurance company. To get an accurate idea of how much your business property insurance will cost in North Carolina, it’s best to consult with a local insurance agent. They can assess your individual needs and provide quotes from different carriers, helping you find the best coverage at a competitive rate.

Insurance Companies And Brokers We Represent

Builders Mutual
Liberty Mutual
The Hartford
Philadelphia Insurance

Lloyds of London
Berkshire Hathaway
NC Rate Bureau
Johnson & Johnson

Appalachian Underwriters
Jackson Sumner

NC Commercial Property Insurance FAQs

There’s no one-size-fits-all answer to how much commercial property insurance costs in North Carolina. It depends on several factors like type of business, reinsurance costs in North Carolina, and where your business is located, to name just a few. Take 10 minutes to tell us about your business.

To get commercial property insurance, assess your business’s risks, compare policies from different insurers, choose the right coverage, you’ll want to talk to one of our Commercial Insurance Specialists.

In general, the standard commercial property insurance deductible is $250. However, other deductible amounts are available and the deductible applies only once per loss. There may be a separate deductible for wine/hail depending on which company is right for your business.

Contact The Huneycutt Group