Commercial Property Insurance (2024)

Commercial Property Cover

Commercial property insurance, as the name suggests, is a type of insurance that provides financial protection for your building or physical structures against a range of risks, including but not limited to, fire, flood, storm damage, earthquakes and other unexpected events.

Physical structure

This encompasses any damages to the physical edifice of the building, including the walls, roof, and floors. Coverage is typically provided for damages resulting from unforeseen events such as fires, storms, or vandalism. However, it's crucial to note that certain significant events, like earthquakes or floods, may require specific additional coverage, particularly in certain regions of New Zealand that are more susceptible to these natural disasters.

Permanent fixtures & fittings

These refer to elements that are integrated into the building and cannot be removed without causing damage. This could include items such as the heating system, built-in kitchen appliances, or fitted wardrobes. Should these fixtures and fittings get damaged due to an insured event, your building insurance would cover the costs of repair or replacement.

Additional Structures

Building insurance often extends to other structures connected to the property. This includes structures like garages, fences, and sheds. It's important to remember that the specifics of what's covered can vary from policy to policy, so it's always essential to understand the terms and conditions laid out by your insurance provider.

Insurance valuers consider a range of factors when calculating the rebuild cost of a building. These include the building’s age, size, materials used, location, design, and more. They also take into account external factors like labour costs, professional fees for architects or engineers, removal of debris, and even compliance costs with any changes in building codes or regulations.

An insurance valuer can also assess the indemnity value of your building. The indemnity value is the cost to repair or replace the property, less a deduction for wear and tear or depreciation. This essentially represents the ‘used’ value of the property and can often lead to a lower fire services levy, which funds firefighting and emergency services.

While it might seem tempting to estimate the values yourself or use online calculation tools, the cost of inaccuracies could far outweigh the cost of a professional valuation. A professional insurance valuer provides a detailed and accurate appraisal, ensuring that you have the right level of coverage for your property and that you’re paying the correct amount for your fire services levy.