Question 1

How do we set a property limit we can defend?

Accepted Answer

Start with a current replacement-cost worksheet from a third-party valuation source — not the book value or the prior year's limit indexed by inflation. We then layer in tenant improvements, business personal property, and any equipment exposure that needs its own line.

Question 2

Is flood covered under our property policy?

Accepted Answer

Almost never on the base form. Flood is placed separately — through the NFIP for residential-style risks or through private excess flood markets for commercial buildings. We map flood zones at the address level before quoting.

Question 3

What happens if our building is underinsured at the time of loss?

Accepted Answer

If your policy includes a coinsurance clause and you carried less than the required percentage of replacement value, the insurer pays only the proportion you insured — even on a partial loss. Agreed-value endorsements waive that math; we use them where carriers will offer them.

Question 4

Do we need separate coverage for tenant improvements?

Accepted Answer

If you signed a lease that makes you responsible for the build-out, then yes — TI&B coverage needs to match what you actually invested. Many tenants assume the landlord's policy covers their improvements; it usually does not.

Commercial Property Insurance for operating companies.