Office Building Insurance Adjala-Tosorontio

The Oracle RMS team is prepared to construct a solid and reliable commercial property insurance plan for you. We will design an insurance package that is precisely suited for your office building and its contents to help you secure your company’s assets. Before assisting you with choosing the best commercial building insurance policy, our licensed insurance advisors will sit down to discuss your insurance needs and objectives to ensure we find the right policy for you.

Oracle RMS FAQ:

What does commercial building insurance cover?

The Oracle RMS experts are familiar with the distinctive qualities of every industry. As a result, we work with each client individually to develop an insurance strategy tailored to their commercial property’s specific requirements. As a result, your commercial building insurance is made to guard your building against losses brought on by:

• Break-ins or vandalism,
• Fire,
• Unintentional damage, 
• Falling objects,
• Natural disasters (e.g., wind, hail, ice, tornado damage), or
• Equipment failures.

Your insurance will safeguard a number of important components of your building. Commercial building insurance often covers the following:

• The physical building,
• Any tools and equipment utilized by the company, 
• Any documents or files,
• Furnishings,
• Electronics,
• Outdoor items, fences and landscaping, and
• Your resources and inventory.

What items are typically excluded from commercial building insurance?

Commercial building owners need to be aware that not every possible event or type of damage will be covered by commercial building insurance. Luckily, similar to other insurance policies, commercial building insurance policies state in their contracts which incidents are covered and which are not. Some of the instances that are frequently excluded are:

• Obvious maintenance neglect and associated damages,
• Earthquakes or tsunamis,
• Flood damage (different than water damage),
• Intentional property damage, 
• Drain and sewer backups, seeping groundwater, or standing water,
• Commerical vehicles,
• Buildings left vacant for more than 30 days, and
• Nuclear events, acts of war or terrorism.

Some of these risks can still be insured by adding additional coverages to your office building insurance policy. Reach out to Oracle RMS today to learn more.

What are the two types of commercial property insurance coverage?

Actual cash value and replacement cost.

Actual cash value

Insurance companies subtract depreciation from the replacement cost and pay the remaining amount to the property owner or renter. For example, if an item is sixteen years old, the policyholder will receive the current value of the sixteen-year-old item and not the value of a new one. 

In summary, a reduced premium is often obtained using actual cash value. However, it will be your responsibility to cover the price difference if you choose to replace the lost items with new ones, or you might have trouble finding a replacement if you decide to try and locate a similar model.

Replacement cost

Insurance companies will cover the expense of either repairing or replacing an item or building with one of similar value, whichever option is the lesser value. Instead of using an item’s cash value as the basis for coverage, replacement cost values are used. However, as a comparable version of the item or building is probably cheaper now than when you first purchased it, the amount you receive might not be the same.

In summary, if your insurance covers replacement costs, you can replace your lost or damaged items with sufficient funds from a claims settlement. However, replacement cost insurance premiums are typically more expensive.

Is insurance mandatory for commercial property?

In Ontario, commercial property insurance is not mandatory. However, as commercial property insurance protects a company’s physical assets, including the physical building, against damage or loss from many insurable perils, such as natural disasters, fire, theft and vandalism, every company would benefit from having it.

Are there any disadvantages of commercial building insurance?

The price

The cost is one of the main reasons people hesitate to purchase insurance. The high monthly premium costs and ongoing payments may make insurance difficult for some people to afford. However, high insurance fees could be the result of a low deductible. Speak to your insurance broker about raising your deductible to help lower your premiums if you think your financials can allow it.

Lack of overall coverage

All possible damages your office building may face are not necessarily covered by commercial building insurance. For instance, damages brought on by flooding, sewer backups, or other types may not be covered by your insurance. Of course, you can always add extra coverage options, but that will increase the price.

Possible hidden fees

Finally, commercial property insurance can sometimes have hidden fees buried within the terms that might be overlooked or missed. Fortunately, partnering with a reliable insurance advisor, like one of our licenced experts at Oracle RMS, can help you easily detect and possibly reduce any hidden fees in your contract.

Is office building insurance the same as commercial property insurance?

Yes. Office building insurance is a type of commercial property insurance explicitly tailored to commercial office buildings.