Property insurance, or commercial property insurance, is often the most important kind of business insurance an enterprise can have. Property insurance covers the cost of repairing or replacing property that is damaged or destroyed.

Most businesses need property insurance because they do not have enough money to pay for the repair or replacement of property or equipment needed for its operations. The types of materials that should be insured include buildings, vehicles, equipment, furniture, computers, and, in some cases, documents.

There are two types of commercial property insurance commonly sold in the U.S.: at-risk policies and peril-specific policies. Most businesses are able to get by with an at-risk policy.

An at-risk commercial property insurance policy covers losses caused by all events except those specifically excluded in the policy. The average at-risk policy covers losses from crime, fire, weather, accidents, and other common losses that an ordinary business might face.

A business owner should always read a property insurance policy carefully and discuss it with an agent before purchasing it. Taking the time to make sure that property insurance meets a business’s needs can prevent many future problems and disputes.

You’ve actually got some property coverage through your homeowner’s or renter’s insurance, but as our story can attest, there can be gaps in the coverage. Make sure you aware of those limits, that you know the difference between cash value vs replacement value and that you know which specific items are indeed covered in your policies.

Before you get insurance, take stock of the valuables in your apartment; take a photograph of the antique piano, of the 100-year old chair your aunt Martha left you (attach the expert valuation), of the beautiful Victorian bed and of the valuable Rembrandt paintings (OK, maybe they are copies, but still), and write down the value of every item for the insurance company. You’d be surprised how it adds up very quickly. It is estimated that most people have at least $20,000 of property in their apartment.

Now if you cause the damage, e.g. if your tub overflows and the water leaks into the downstairs apartment, that’s your neck in the vise. So it pays to have your liability insurance to cover other risks also, such as a person getting hurt while in your apartment, or slipping on your welcome mat and breaking a leg (even if he was drunk after your party ended). It might even cover the lawyer’s fee and court expenses in case of a lawsuit (given the national passion for initiating frivolous lawsuits to make an easy buck).