Business structures can be insured individually or on a blanket basis, where one value covers a number of building locations. It is important to pay particular attention to boilers, HVAC systems, compressors and elevators that have unique valuations and can cause unexpected damage. The premium cost to insure a building is determined by:
- Construction - Frame, mill, steel reinforced, concrete block.
- Occupancy - A facility occupied by offices may be less expensive to insure than one occupied by a manufacturer.
- Protection - Local alarms and fire suppression devices reduce the premiums charged.
- Exposure - A building that stands alone is less likely to be involved in a neighboring building's fire. A building in a flood or earthquake zone has a higher probability of loss and therefore a higher coverage rate.