3 Insurance Terms That Every Commercial Property Owner Should Know

3 Insurance Terms That Every Commercial Property Owner Should Know

3 Insurance Terms That Every Commercial Property Owner Should Know

If you have ever considered purchasing Orlando commercial rental property insurance, there are many complex terms and phrases that you should understand first. The policy that you choose will have a huge impact on your property in the event of an emergency and without a firm understanding of property insurance, you could end up choosing one that does not fit your needs. The information below will help you understand the finer aspects of property insurance.

Important Terms and Their Definitions

Orlando commercial rental property insurance is composed of the following components:

  1. Deductible The deductible is the amount of money that you will have to pay before your policy kicks in. Policies with higher deductibles tend to have lower costs and policies with lower deductibles are more expensive.
  2. Coinsurance Your coinsurance is usually presented in the form of a fraction or percentage, and it represents the amount that you will be responsible for in the event of a disaster. For instance, if your policy offers 80% coinsurance, you will be required to cover 20% of recovery costs.
  3. Premium This is the amount of money that you will have to pay each month in order for your policy to remain active.

Simply put, understanding Orlando commercial rental property insurance is easier than most people think. Having a broad understanding of these terms will enable you to select the right policy. Talk with an insurance agent about options for your rental property.