Property vs. Inland Marine Coverage
Property and casualty insurance for facilities
A property policy is one of the most basic parts of your facility’s insurance management plan, as well as one of the most nuanced. Property policies vary not only in the types of items they cover, but also how payments are made, where property can be, when it’s covered, etc. This is why it’s of vital importance to review not only what property you have covered, but how and where it’s covered.
A standard property policy usually protects buildings and contents at a particular location, or within 1,000 feet of that space. This is perfectly fine to cover ordinary items that are stationary such as office furnishings. However, problems can arise when you have specialty items or property that isn’t stationary (ex. equipment that is taken off-premises).
Hence one of the primary reasons to place these items on an inland marine policy, which provides coverage to items that aren’t stationary. These policies are often tailored for specific types of equipment – such as forklifts – to offer more specific coverage than a standard property policy. They usually have less exclusions with some even providing flood coverage for no additional charge.
Unlike standard property policies, which often pay the cost to replace damaged property with a new item, inland marine policies usually pay only the depreciated value. Additionally, they require a schedule – or list – of what you want covered.
Because of the significant difference between your standard property policy and inland marine coverage, you should make sure to review your entire plan with your insurance broker. Whether it’s your building, your equipment, your stock or something else, ensuring your property isn’t only covered – but covered by the right kind of policy – is essential to preserving your bottom line.
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