How Much Does Property Insurance Cost?

how much does property insurance cost

Every small-business owner has property they rely on to run their company. Sometimes the property is obvious - a restaurateur has a kitchen with stoves, refrigerators, and food products. But even a marketing consultant can't get by without at least a laptop.

That's why Property Insurance is almost always a worthy investment for your small business client. Still, your client will likely want the most competitive rate for their policy. Let's review the factors insurers consider when pricing policies for your client.

What Influences Property Insurance Rates?

What Influences Property Insurance Rates?

Property Insurance rates vary between competitors, but premiums are generally based on the value of your client's business space and its contents and the perceived property risks their industry faces. A client in a "high-risk" industry, such as a restaurateur, will often pay higher premiums than one in a low-risk industry, such as a marketing consultant. Other factors also come into play:

  • Construction. Insurance providers take into consideration the building materials of your client's business space. For example, a building made of brick is more fireproof, so it may cost less to insure. Other fire resistant materials or recent upgrades may also affect premiums.
  • Occupants. Insurance carriers also evaluate who uses

    the commercial space and for what purpose. Again, restaurants face a greater risk of fire. Plus, there's food spoilage to consider. That's why a restaurant might pay more for Property coverage than a marketing agency.

  • Protection. Carriers consider how your client mitigates their risks. Your client's Property Insurance may cost less if they have sprinkler systems, fire alarms, and extinguishers on hand.
  • Location. Your client's neighborhood is also factored into their premium. For instance, a building in a high crime area or next to an oil refinery will probably cost more to insure.

Comparing Property Insurance Rates Online

Comparing Property Insurance Rates Online

Providers assess risks differently. Some will quote a higher rate to the restaurant in a high-crime neighborhood, but another might notice its proximity to a police station and lower the cost. As a result, comparison shopping is an important step to finding the appropriate Property Insurance policy for your client.

Quoting software, such as Insurance Noodle's Real Rate platform, allows you to get multiple quotes through a single online application. Simply fill out one application, and your client's risk is automatically marketed to all available insurers. Within minutes, the carriers return accurate quotes for you and your client to compare.


Category: Insurance

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