Coverage for the building a business owns, the equipment and inventory it owns inside any space, and the income a covered loss can interrupt. Placed across markets by an independent Rochester Hills agency that reads construction, occupancy and protection systems before it markets the account — not just the square footage.
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A commercial property policy is built from parts that apply to different things a business owns or is responsible for — the structure, the contents, and the income the structure supports.
Insures the structure itself when the business owns it — walls, roof, foundation and permanently installed building systems. Leased space typically does not need this coverage, since the landlord's own policy carries it, though a lease should be read to confirm what it actually requires of a tenant.
Furniture, fixtures, equipment, and inventory or stock owned by the business, wherever it operates from. This is usually needed whether the business owns its building or leases space, since it is the contents that are covered here, not the structure around them.
Improvements a tenant pays for in a leased space — built-out walls, flooring, fixtures — that the tenant has an interest in even though they become part of the landlord's building. These are commonly a separate limit rather than something a standard business personal property limit automatically picks up.
Replaces lost net income and continuing expenses while a covered property loss is being repaired, plus the extra cost of operating from another location during that period. It only responds following a covered physical loss, and the period of restoration and any attached waiting period or coinsurance clause both affect how a claim pays out.
Replacement cost settles a covered loss at the cost of new materials of like kind and quality, with no deduction for age or wear. Actual cash value deducts depreciation, which matters most on an older roof, HVAC system or piece of equipment. The settlement basis can vary by category of property within the same policy and is worth confirming item by item.
Addresses the added cost of rebuilding to meet current building codes after a covered loss — demolishing undamaged portions a code now requires removed, or upgrading systems that were legal when installed but are not legal today. This is frequently excluded or sublimited on a base property form and purchased as its own coverage part.
Two buildings of the same size can price very differently. On commercial property, the underwriting conversation is mostly about what the building is made of, what happens inside it, and how well-protected it is.
What actually happens inside the space — office use, light retail, food service, manufacturing or storage — changes the exposure materially even at an identical square footage. A mismatch between the occupancy on file and what is really operating there is one of the more common findings when a program is reviewed.
Frame, joisted masonry, non-combustible, masonry non-combustible and fire-resistive construction are rated differently, and the age and condition of the roof, electrical and plumbing systems matter as much as the construction class itself. An older building in good repair can place very differently from the same building deferred on maintenance.
Sprinklers, fire alarms, monitored burglar alarms and local fire department proximity and response capability all factor into how a risk is rated. A fully sprinklered building is a materially different underwriting proposition than an unsprinklered one of the same construction and occupancy.
The limit carried should reflect what it would actually cost to rebuild the structure or replace the contents, not the purchase price, the tax-assessed value or last year's limit carried forward unchanged. Underinsuring relative to true value is a frequent cause of a claim settling for less than expected, even on a partial loss.
A coinsurance clause, commonly set at 80% or 90% of value, penalizes a claim payment proportionally when the carried limit falls short of that percentage at the time of loss. Deductibles can be set per location or per peril, and how they're structured affects both the premium and what a smaller loss actually nets after a claim.
Currently valued loss runs, usually three to five years. Underwriters read frequency and cause as closely as the dollar amounts — a pattern of water-damage claims, for instance, often matters more than one larger wind event — so documenting what changed after a loss is worth including alongside the runs themselves.
A base commercial property form does not automatically answer everything a building faces. These are commonly handled as separate coverage parts or distinct policies, and are worth confirming by name rather than assumed to be included.
Not every carrier asks for every item, but a commercial property submission moves faster when this is assembled up front.
Direct answers to what Michigan business owners ask before reviewing a property program.
A commercial property policy generally covers the building where a business owns it, business personal property such as furniture, fixtures, equipment and inventory, and tenant improvements a tenant has paid for. Business income and extra expense can be added so lost revenue and the cost of operating elsewhere are covered while the property is restored after a covered loss. What actually responds in a claim depends on the causes of loss selected, the limits chosen and the policy's terms, conditions and exclusions as written.
Building coverage insures the structure itself — walls, roof, permanently installed fixtures and building systems. Business personal property covers what is inside it and belongs to the business: furniture, equipment, stock and inventory, and signage. A business that leases its space still needs business personal property coverage even though it owns no building, and a tenant's own improvements to a leased space are often a separate line item rather than automatically included in either.
Replacement cost pays what it costs to repair or replace damaged property with new materials of similar kind and quality, without a deduction for depreciation. Actual cash value pays replacement cost minus depreciation, so an older roof or an aging piece of equipment settles for less than it would cost to replace. Which basis applies can vary by category of property within the same policy, so it is worth confirming rather than assuming for any specific item.
Insurance-to-value means the limit carried on a property reflects what it would actually cost to rebuild or replace it. A coinsurance clause penalizes a claim payment proportionally when the limit carried falls below a stated percentage — commonly 80% or 90% — of that value at the time of loss, even on a loss that is only partial. Underinsuring to save premium is one of the more common ways a commercial property claim pays out less than expected, so values should be revisited periodically rather than carried forward unchanged for years.
Only if business income and extra expense coverage is included, and only following a covered physical loss to covered property — it does not respond to a general slowdown or a loss with no property damage behind it. It can cover lost net income and continuing expenses during the restoration period, plus the extra cost of operating from a temporary location. The period of restoration and any waiting period or coinsurance clause attached to this coverage both affect how much a claim ultimately pays.
At minimum: the property address, year built and square footage, construction type, roof age and condition, occupancy and how the space is actually used, any sprinkler or alarm systems, current building and business personal property values, and currently valued loss runs. Separate exposures such as flood, equipment breakdown or ordinance-or-law needs should be noted if they apply, since those are frequently handled as distinct coverage parts rather than built into a base property form.
Building values, occupancy and protection systems all change over time. We review current commercial property programs against the building and the business as they actually stand today.
Your current declarations page, renewal date, a statement of values if one exists, and a note on anything that's changed at the property gets the review started. You don't need it all assembled before you reach out.
Titanium Shield Insurance Agency is an independent commercial agency in Rochester Hills. We review construction, occupancy, protection systems and values before marketing, and place property coverage across carriers rather than through one company.