An amazing deal on commercial property insurance might not be as great as it seems.
Cheaper policies direct from insurers often cut coverage, leaving you exposed to risks that could cost you more in the long run. Always check the fine print in the Policy Disclosure Statement (PDS) to ensure you’re truly protected. Remember, the best insurance deal doesn’t just save you money – it provides proper protection.
So, how do you secure the best commercial property insurance deal?
- Ensure the policy wording is customised to your exact needs
- Choose an insurance broker who will advocate for you during a claim
- Accurately determine your property’s sum insured
Navigating these key points is the cornerstone of a solid insurance strategy. Now, let’s unpack these points further and explore how the brokers at Consolidated Insurance Brokers can help you on your mission to secure the best insurance deal.
Policy Wording is More Important than Price
Price isn’t everything – what really matters is coverage. The allure of a lower-priced policy can be strong, but it’s the policy wording that determines the real value of your insurance when a claim occurs.
When comparing two policies, both offering the same insured sum but with a significant cost difference, the cheaper may be filled with a range of exclusions, intricately crafted to limit the circumstances under which the insurer is obligated to pay. These exclusions can range from natural disasters to specific types of water damage, and each one narrows the protective umbrella of your insurance.
It’s not just about finding the cheapest insurance; it’s about finding the right insurance. Your focus should be on securing a policy that gives you comprehensive protection tailored to your needs, without overpaying for superfluous extras. And CIB’s customised policy wording and negotiated pricing means our clients always get the right insurance for them.
Insurance Companies Help Themselves. Brokers Like CIB Help You.
Going direct with commercial property insurers (instead of through a broker) gets you a one-size-fits-all policy at a set price. It also puts you in the position of having to navigate claims and negotiations with the insurer by yourself.
And do you really believe the insurance company’s claims department is there to help you? What are their job performance indicators? How much they have saved the insurer by declining or limiting claims!
Insurers will only fulfil their minimum obligations under the policy as this forms the contract they have with you. If their contract is filled with exclusions and complex terms, you may find yourself receiving far less than you expected.
If instead you take a policy through a broker, you instantly have your own claims advocate. If you got your insurance through CIB, you would have a dedicated broker that knows exactly what to say to the insurer and fight for your best outcome getting the most out of your policy. This can be the difference between being paid, or declined, if you have someone to fight the battle for you.
Get Your Sum Insured Right, or Lose Thousands
Your commercial building insurance replacement value needs to be right, or else you risk losing thousands or more.
Being underinsured is not something you can afford – the insurers won’t let you and the penalties they can apply are significant.
“Underinsurance” or “Co-Insurance” clauses in wordings effectively mean if you choose to insure your building for half of the total rebuild, they can choose to pay half your claim if the roof blows off. Now, the wordings are a bit more complex than this, but that’s the principle – you have to generally insure for at least 80% of the replacement value, or the insurer can reduce your claim.
If the building is a total loss, you know you’re going to only get the amount you insured for, and perhaps you’re ok with that. But many people think they would be fine with a reduced amount thinking that’s enough for most “major” claims – like the roof being destroyed – not realising that the insurer will drastically reduce your payment in this scenario.
CIB provides all its clients with a building calculator to help estimate a commercial property’s replacement cost. While it’s not a substitute for a professional valuation, it’s a significant help to estimate if a sum insured accurately reflects the replacement cost.
To give a practical example based on the 80% co-insurance rule – if your building replacement value is $1.0M, and you choose to insure it for $600,000 instead, then if you had a claim for $200,000, the insurer would only pay you $150,000 leaving you $50,000 short.
Securing You the Best Commercial Property Insurance Deal
Insurance is worthless if it doesn’t protect you. And to be fully safeguarded, you need customised insurance wording, a quality broker who advocates for you in a claim, and coverage that is accurate for your property’s value.
Don’t settle for less; let CIB provide you with the comprehensive protection you deserve. Ready for insurance that truly secures? Contact CIB today today.
