How much does Commercial Property Insurance cost in New Orleans?
The price you pay will be based on underwriting factors subject to, but not limited to, year built, construction type and claims history
The Different Types of Construction
Frame—Exterior walls of wood, brick veneer, stone veneer, wood ironclad, or stucco on wood.
Joisted Masonry—Exterior walls of masonry material (adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials) with combustible floor and roof.
Noncombustible—Exterior walls, floor, and supports made of metal, asbestos, gypsum, or other noncombustible materials.
Masonry Noncombustible—Same as joisted masonry except that the floors and roof are of metal or other noncombustible materials.
Modified Fire Resistive—Exterior walls, floors, and roof of masonry or fire-resistive material with a fire resistance rating of at least 1 hour but less than 2 hours.
Fire Resistive—Exterior walls, floors, and roof of masonry or fire-resistive materials with a fire resistance rating of at least 2 hours.
>>A Frame building would cost more than a Joisted Masonry constructed building<<
What is covered in a commercial property policy?
Limits up to $10,000,000 per location (higher limits available)
Property Coverage Extension Endorsement
Business Interruption coverage provides protection for a temporary shutdown of the business due to a covered cause of loss.
It provides coverage for loss of income or extra expenses you incur to resume operations.
Liability coverage is provided for your operations and all premises you own, operate, or lease.
This protection includes:
Limits up to $1,000,000 per occurrence / $2,000,000 aggregate
Medical payments coverage up to $5,000
Money & Securities
Newly Acquired or Constructed Property
Valuable Papers & Records
How is commercial property covered?
Commercial property insurance plans pay for losses based on the replacement cost of the item or its actual cash value.
- Replacement cost (RC) is the amount necessary to repair, replace or rebuild property with same or like kind materials and quality, without taking any deductions for depreciation.
- Actual cash value (ACV) is the cost to replace minus depreciation (the older the material the less you get)
How much would a 1,000,000 building in New Orleans cost for commercial property insurance?
If the building is a joisted masonry constructed building built in 1989 the underwriter could apply a .60 rate per $100 of property value
The building would be subject to a favorable inspection
The policy would include loss of rental income for the building owner
Optional Coverages could include
Forgery or Alteration
Inside Theft Premises
Outside Theft Premises
Computer and Funds Transfer fraud
Money Orders or Counterfeit Money
The policy would also include 1,000,000 each occurrence and 2,000,000 aggregate (more than one person making a claim) of General Liability
SIMPLE NEW ORLEANS COMMERCIAL PROPERTY CALCULATOR
Depending on the rate the underwriter will charge will determine how much you pay for commercial property insurance
In the above example the underwriter has determined a .60 rate per $100 of value
1,000,000 x .60 / $100 = $6,000
Some sample rates will vary based on the construction type and the zip code
Frame Construction .90 to 1.25
Joisted Masonry .70 to 1.00
Masonry Non Combustible .60 – .90
If you want a quote on a new commercial property purchase or on an existing building
just complete our form or give me a call 504.348.3131 and we can review