When it comes to commercial property insurance, one of the questions that often comes to mind is how much money you would get if your commercial building was destroyed.
To answer this question it’s important to know which type of insurance you have in the first place. Normally, there are 3 types of coverage for commercial insurance: replacement cost (RCV), actual cash value (ACV), and functional replacement cost.
For more information about Commercial Insurance Plans, call us today at (870) 523-6771.
Replacement Cost (RCV)
Replacement cost is the most popular coverage in commercial insurance in Arkansas. The commercial property owner will not have to pay any deductible but will be required to pay a higher premium for this commercial insurance because it offers coverage beyond the actual cash value (ACV) of the commercial building in case of a loss.
The replacement cost of commercial property insurance will provide coverage for the cost of rebuilding.
Actual Cash Value (ACV)
Actual cash value commercial property insurance is the least popular commercial insurance coverage. It provides coverage at a reasonable premium but will require that you pay a deductible if your commercial building is damaged and needs to be repaired or completely renovated after a loss.
Functional Replacement Cost
Functional replacement cost coverage will only pay the commercial property owner for the value of his commercial building if it can be fully repaired or renovated after a loss.
However, if your property can’t be restored to its original condition, a functional replacement can provide coverage for the cost of replacing it with other types of materials or construction methods that are less costly and obsolete.
We Help You With Your Insurance
Working with an agency that helps you find the right commercial insurance in Arkansas is fundamental. At M&P Insurance, you are able to find it. For nearly a century, we have been able to serve many businesses and families with different types of insurance, depending on their needs.
We offer commercial insurance coverage in Arkansas for commercial building owners who need complete property protection. If you are interested in learning more about the products we offer, make sure to contact us!
For more information about Auto Insurance Plans, call us today at (870) 523-6771.