A Commercial Insurance Client recently asked me to quote a location change. The client only had Business Personal Property Insurance since she was a tenant.
I asked her for the address of the new location, the age of the building, the replacement year for the roof, whether the building has a sprinkler system, who the other tenants are, and a few other things.
She said I am not insuring the building; why do you need all this information?
I explained to her that even though we are not insuring the building, we need the extra information because the Insurance company will use that to classify the risk.
For example, if another tenant is a restaurant with a deep fryer, there is a higher chance of a fire. If the roof is old, it could leak and ruin her equipment. If there is a sprinkler, there may be less damage from a fire.
There are a lot of factors that go into determining rates from an insurance company. The more information you can provide, the better your chance of obtaining the correct coverage and not having any surprises at claim time.