Picking your commercial property insurance coverage limits may be more important than you think.

This is especially the case if your insurance carrier requires a coinsurance. With a coinsurance, if you don’t have the proper coverage limits, it can affect your payout for any property insurance claim you may have.

We know this first hand. At WIFS Agency, we guide many of our business clients through selecting adequate coverage limits so they are 1) fully protected, and 2) meeting their insurance clauses.

A fair share of these clients have asked us if they could lower their property coverage limits to save a few bucks, and if they have a coinsurance clause, our answer is always a resounding “NO!”

And if you have a coinsurance, the same applies to you. Read on to learn more about what a property insurance is, and how it works.

If you never have a claim, coinsurance may never actually come into play for you.

But even if you never do expect to have a claim, coinsurance is something you need to be thinking about, because if you violate the clause, it would affect the payout amount of any claim, if the unexpected were to happen. 

When establishing your policy, you need to carefully calculate the value of all of your business property to make sure you are fulfilling your obligations set in the clause. But wait! That effort alone isn’t enough. You also need to review your policy often, to make sure it includes the value of any additional property you may add as your business changes or grows.