What Is Property Insurance?

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Tenants can also buy property insurance. Commercial and industrial tenants also purchase insurance so that in the event that their inventories are damaged, they can replace them. Since businesses can have large amounts of capital tied up in inventory and equipment, such damage could be disastrous without insurance to cover them.  Residential renters can also benefit from property insurance, even many are uninsured. Renters are sometimes overwhelmed to learn how much it will cost to replace their possessions after a flood or fire without insurance to cover their loss.

While many businesses purchase their property insurance policy through a business owner’s policy (BOP), these bundles property and liability insurance into just one policy. However, since the amount of coverage available in a BOP is generally lower than in a standard property insurance policy, companies usually require a lot of coverage that stick with a separate policy. Business interruption insurance and extra-expense insurance are 2 types of optional coverage in a property insurance policy that protects your business after a loss occurs. Business interruption insurance provides payments for expenses such as salaries, taxes and debts, as well as any loss of profit due to the interruption of business.

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