Summary of Commercial Property Insurance : Commercial Insurance Tips

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Complete Video Transcript
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of my name is jeered Morgan with branch and we’ll
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an insurance agent and we’re here to talk about commercial property insurance
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what is commercial property insurance commercial property insurance
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is designed to protect your buildings and contents
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from catastrophic loss now if you’re building burns down is a great example
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your building burns down and you have to rebuild it d have the money
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a set a sad made out of your profits your assets where you could pay for that
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most businesses would say no now you can borrow that money
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and pay interest on it have a mortgage on on a building for a long time
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or you could purchase insurance on it and fun that loss
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with the with a small premium that you pay every year generally the cheapest
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way to find catastrophic losses and pay for catastrophic loss
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is through insurance now when you talk about property insurance
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you’re talking about insuring a building in property insurance has been around
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for a long time
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I can trace its history all the way back here really and truly
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to the battlezone in ages bit to our modern insurance market developed
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through the 1920s injuries he had a camp companies it design and coverage in an
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initially cover just a few things
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wind when it would cover what we call
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basic barrels which were listed specifically was covered
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then as a time went by the expanded that too broad payrolls
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and now in our market today we have what’s called special pareles
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special payroll property coverage covers everything that’s not being school
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excluded
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for example the some typical exclusions in special pyro our war
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nuclear loss a
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earthquake Floyd if a governmental entity comes in forces you to tear down
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your building
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insects is another example is typically not covered
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so when you purchase insurance you wanna typically our marquee party special pyro
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coverage
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and you want to purchase some extended coverage that will give you some those
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atoms if you’re an earthquake zone any departures earthquake coverage it’s not
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covered
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by your typical insurance policy additionally if you’re in a flood zone
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and maybe even if you’re not you may want to purchase some flood coverage
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it’s not covered by special pyro some other areas that are back up a Sears and
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drains equipment breakdown
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ordinance or law where government comes in and tells you to stop
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all those are options that an insurance agent can help you decide if you have
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the exposure and you need the coverage for their
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now not only in separate but related to the payroll discussion what your
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insuring for
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like special peril the other element that you 1 I’m review is whether you’re
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insuring to replace your building
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and whether you’re insuring for actual cash value
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so they’re stoop 2.7 sure it’s in addition the prayer list eat ass
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insurance ones replacement cost and the others actual cash value
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actual cash value gives you at the actual cash value of your building at
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the town a loss
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so the way they develop that would be they say the
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if it cost a million dollars to replace its building and its
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use that have is expected life then we’ll give you five hundred thousand
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dollars if it’s if it’s a total loss
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replacement cost comes in and says if they cost a million dollars to replace
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is building we’re gonna pay you a million dollars to replace a building
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most people would want to ensure for replacement cost
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now the other party that is you may have had insurance and you may have had a
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replacement cost estimate on your building
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five or six years ago when you may not have looked at in that time period
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well if you don’t keep those values up to date you may run into trouble
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and if you but funded have lost it you don’t have enough money to replace your
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building
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you may be in a bad spot managed jeered Morgan we’ve been discussing
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property insurance