Protecting your commercial property is paramount. But simply having insurance isn't enough. Understanding your building – inside and out – is the key to securing the right coverage and avoiding a financial shock after a loss. Think of it this way: your insurance policy is only as good as the information it's based on.

Details matter, especially for older buildings. When it comes to commercial property insurance, insurers care about the specifics. A lot. Why? Because the age and condition of your building directly impact its risk profile. Here's where knowing your building becomes crucial:

• Roof Type and Age: For commercial buildings, roof types can vary significantly. Are we talking a flat roof, a built-up roof, a modified bitumen system, a single-ply membrane (like TPO or EPDM), or even a green roof? Each has its own lifespan, maintenance needs, and vulnerability to different types of damage. How old is it? A newer, well-maintained roof, regardless of type, is less likely to suffer damage, which translates to lower premiums and better coverage options. An older roof, especially one nearing the end of its lifespan, or one that hasn't been properly maintained, could be a red flag for insurers. Knowing the specific materials and installation methods used is also important.
  
  
• System Updates (Electrical, Plumbing, HVAC): Outdated electrical wiring is a fire hazard. Aging plumbing can lead to leaks and water damage. An inefficient HVAC system can contribute to mold growth. These are all risks that insurers consider. Especially in older buildings, documenting recent updates to these systems is essential. It can be the difference between qualifying for Replacement Cost Value (RCV) coverage and being stuck with Actual Cash Value (ACV).
  
  

RCV ((Replacement Cost Value) vs. ACV (Actual Cash Value): A Quick Recap

As a reminder, RCV covers the cost of replacing your damaged property with new items of similar kind and quality, without depreciation deductions. ACV, on the other hand, factors in depreciation, meaning you'll only receive the current market value of the damaged property, not what it costs to replace it. Knowing the details about your building, especially the roof, can make or break your eligibility for RCV coverage.

Business Exposure: What It Means for Your Premium

Insurers also assess your "business exposure." This refers to the potential risks your business faces, beyond just the building itself. Factors that contribute to business exposure include:

• Type of Business: A dry cleaner has different risks than a bookstore.
• Location: A building in a flood zone has greater exposure than one on higher ground.
• Occupancy: Are there hazardous materials stored on the premises?
• Security Measures: Does the building have alarms, sprinklers, and security cameras?

The Bottom Line: Be Proactive, Not Reactive

Don't wait until disaster strikes to discover your coverage is inadequate. Take the time to thoroughly understand your building's characteristics, especially your roof, and document any updates. Work closely with your commercial insurance broker. Provide them with detailed information about your property, including:

• Age of the building
• Specific roof type, age, materials, and installation methods
• Dates of electrical, plumbing, and HVAC updates
• Security measures in place
• Type of business conducted on the premises

By being proactive and transparent, you can secure the right coverage at the right price, ensuring your business is truly protected. Contact Tully Insurance Agency at 903-439-3286 today for a comprehensive review of your commercial property insurance.