Professional services
Commercial Property Insurance Calculator
Commercial property premium from building and contents value, with the coinsurance trap explained.
Result
An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. Coinsurance is the clause that catches people. If a policy requires you to insure to 80% of replacement cost and you insure to less, claims are reduced proportionally even when they are far below the policy limit. Replacement cost and market value are different figures, and in a soft property market replacement cost can be the higher of the two.
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About this calculator
What is coinsurance?
A requirement to insure to a stated percentage of replacement cost. Underinsure and every claim is reduced by the same proportion, so a building insured at 60% of the required amount collects 75% of a partial loss.
Should I insure for market value?
No, for replacement cost. What a building would sell for and what it would cost to rebuild are different numbers, and after a total loss you need the rebuild figure.
The formula
premium = exposure / rate basis x rate x risk multiplier, less deductible credit, plus claims loading
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Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.