How are property insurance rates determined?
Typically, commercial properties insurance premiums are set by multiplying the value of the building and its contents by a value associated with the level of risk involved. Most of the time, properties with high risk have higher property insurance rates, while lower risk properties cost less to insure. “At Nationwide, we base commercial properties insurance rates on what we call COPE,” says Brenda Miller, Commercial Sales Agent for Nationwide, “”C” is for construction, “O” is for occupancy, “P” is for protection and “E” is for exposure. We carefully look at each one of these factors. ” These variables help determine the level of risk, and ultimately your property insurance rate. • Construction The type of materials your building is constructed of and its overall condition will impact your property insurance rates. Buildings made of more fireproof materials, such as brick, or those with fire-resistant interior floors, walls and doors are less to insure. Typically newer buildings or thos
