Benefits of Joining an Affiliate Program

Every company should be in the business of creating value because once value is established it makes it easier to generate more revenue. With Insurance Agent Near Me operating their business this way, they decided to create a program that incentivizes online marketers to help spread the value that the company is offering. Affiliate programs are designed to do exactly this; they pair influencers with the business, into a mutually beneficial relationship.

Influencers and or online marketers can receive benefits when they get into an affiliate relationship with a company and the company receives more brand name recognition. Since both sides manage to benefit from this relationship, it is a very valuable aspect of the marketing process.

One of the more impressive aspects and benefits of joining an affiliate program is the perks that online publishers get to receive. Some companies go so far as to give commissions for every referral that they receive due to the advertising done by their affiliates. This means that for every referral that an affiliate is responsible for, they are able to earn a percentage or fixed amount. This allows affiliates to increase their revenue by several folds; the more referrals they are able to bring in, the more the financial benefit will be.

Furthermore, agencies have dedicated and knowledgeable employees who can easily guide the affiliate on how to make the most of the opportunity. This makes the work of an affiliate rather simple and straightforward. With the help of the marketing agency, affiliates are able to make efficient decisions concerning the placement of the ad in order to maximize their earning potential.

Depending on the quality of the services offered by the company, affiliates could easily make a decent amount of revenue. By promoting the company on their own websites, affiliates are also able to generate more traffic to their own sites since this relationship goes both ways. The affiliates not only benefit financially but also receive an influx of visitors to their websites. This relationship then creates a cycle of benefits which raises the value for both the marketing agency and the affiliate.

Some marketing companies also offer special promo codes and other offers that allows the affiliate to receive discounts and special advantages when they themselves wish to sign up. This can come in handy for any affiliate, because costs can be higher in certain products and this discount benefit can be crucial to receiving a better price.

Becoming an affiliate is easy as there is not a lot an affiliate has to do upfront to get started since the marketing agency is generally responsible for creating the referral link.

Affiliate programs also come with a method for tracking revenue. In this case, the affiliate never actually has to do any real accounting because the numbers are automatically tracked.

One more convenient aspect of this affiliate relationship is that the affiliates do not have to go through any extraneous lengths when signing contracts. These are all streamlined and customized, making it extremely simple for affiliates to agree to the favorable terms of working together with the marketing organization. This also expedites the process and allows the affiliates to quickly start earning income.

Does Progressive have Commercial Auto?

Commercial auto insurance is necessary if you are using your vehicle for work/ business. This isn’t the same as driving your vehicle “to” work or business. If driving to work/business, a personal auto policy is all that’s needed. If you are using your vehicle “for business” discussing a commercial auto policy with an Insurance Agent is a good idea.

Progressive Insurance was established in 1937 and is one of the largest insurance carriers in the United States. “Offering almost every type of insurance; from personal auto to pet insurance, to business policies to life insurance. Yes, Progressive can help with your commercial auto needs!

Progressive offers commercial auto insurance “We're the #1 commercial auto insurer in America, insuring more than 1 million commercial vehicles”. Progressive writes commercial auto policies in all states.

Types of Commercial Auto Coverage

Progressive Insurance offers coverage for a wide variety of business/ commercial needs:

Business Autos: cars, light trucks, and vans

Trucks: tractors, dump trucks, semi/ 18- wheeler

Trailers: utility trailers, trailers pulled by trucks

Contractors Insurance: electrician, painters, plumbers, etc.

How much does Progressive Charge for Commercial Auto Insurance?

The cost of insurance depends on many things. The first being location, followed by what you are buying insurance to protect. For commercial auto the following is considered: location, type of business, type of vehicles, the drivers listed and their driving history, and the type/ amount of insurance you want to purchase.

In 2017, it was reported that the national average monthly premium for a commercial insurance policy through Progressive was $165 a month.

These figures represent the “national average” and doesn’t mean that this will be your premium. The best way to know your costs will be to obtain a quote.

Commercial Auto Discounts

Progressive offers amazing discounts for commercial auto policies:

CDL Discounts

Business Experience Discounts

Prior Insurance Discounts

Package Discounts

Paid in Full Discounts

EFT Payments

Contact an Insurance Agent for your quote and always remember to ask about discounts that may apply to your business.

How much is car insurance in Houston?

Texas is a huge state, the largest in southern United States! Everything is bigger in the Lone Star state and as the biggest state in the south, you’ll likely need a car. Insuring that car is a requirement by law in the state of Texas.

How are Insurance Premiums Calculated?

Insurance premiums are calculated considering a variety of factors. There isn’t one set price for car insurance in Houston. When calculating premiums, insurance companies evaluate: personal info- credit, location, discounts, vehicle type, etc. Because this varies from person to person, you may pay a different premium than your cousin that lives in the same city, 10 minutes away.

Texas state insurance requirements are: 30/60/25. What does this mean? The required limits are broken down like this:

$30K for bodily injury of any 1 person in any 1 accident

$60K for bodily injury of any 2 or more persons in any 1 accident- $30K per person

$25K for injury to or total loss of property of others in an accident.

These are the minimum requirements for car insurance in Houston. There are options for higher limits. An insurance agent can assist with that.

Is Car Insurance Expensive in Houston?

Drivers in the state of Texas pay premiums higher than the national average. According to Quote Wizard, the average cost of car insurance in the state of Texas is $934.22 per year. The national average for car insurance is $889.01 per year.

Unfortunately, the answer is yes. Houston isn’t the most expensive location for car insurance. Michigan ranked #1 for the 5^th time. Much of the reason that Texans pay higher insurance premiums is due to the number of natural disasters that Texans experience.

So, How Much is Car Insurance in Houston?

Quote Wizard provided the statistics shown above. It appears that women in Houston pay rates higher than both the Texas average and national average. Men pay below state average, but still higher than national average.

How Accurate Are Home Owners Insurance Calculators?

One of the wonderful aspects of the Internet is that it gives you the ability to find out home insurance pricing on a large scale. In fact, you can even get an accurate number on how much it would cost you to buy the home or car of your choice, including what your monthly payments would be and your interest rate based on your credit history.

Not all home insurance carriers are the same

The frustrating thing is that there are some industries where the value you are quoted rarely seems like the amount you will actually pay in premium. This is especially true within the homeowner’s insurance industry.

Most people head to a site, enter their personal information according to what is asked of them, and they are given a value of what they would pay yearly to protect their home. They agree to that amount and then they are told that some further evaluation is being made, and to hang on for a few moments. Thirty seconds later, the value appears on the screen and it is not what they were quoted previously.

Even more aggravating is the fact that the amount you are to pay always seems to go up. There rarely seems to be a time where the amount you will pay goes down. So, what causes this? It may make you wonder how accurate are our homeowners insurance calculators?

Houston Home Insurance Quotes

Texans don’t take too kindly to this kind of chicanery, and with good reason. They expect to pay what they are told they need to pay and are understandably a little irritated when a different amount is told to them. So, what is behind all of this?

The truth is that most of these online calculators that you will come across are basing insurance on very basic kinds of information. Because of privacy laws, they cannot ask you very private specific questions like social security number upfront, so they don’t have the full picture of what the insurance cost may be when they make their initial cost analysis.

They Are Being Real

Consider that there are many people who are understandably concerned about having their personal information stolen and used for nefarious reasons. If an insurance company asked you for your social security number, driver’s license number, address, and information about your employment upfront, you probably would close that webpage down right away.

They have to make an assessment based on the information you provide, which is usually no more than the amount of money you make, have you had insurance claims in the past, and the value of your home and property. This allows them to create a rather superficial determination of how much you would pay to protect your home and property each month.

It’s partly about your integrity so be honest

While this may be a little irritating to you, the truth is that you actually have a part in how accurate the value is that will be displayed to you. A lot of people think that if they leave off prior claims or accidents they may have had, the insurance company will not be aware of this and they will be able to get a lower rate based on their withholding of information.

Keep in mind that they are going to have a complete record of all kinds of claims you have made. This means that if you are withholding information, they are still going to find it out before they give you the final quote. It is to your advantage to make sure that you are being upfront and truthful when supplying the information asked initially.

Understand that these calculators are just a tool. They are giving you an idea of what you may pay each month, but it is up to you, to be honest, and upfront with them so that you get the most accurate initial value to what you will pay for the yearly homeowners insurance in Houston.

Top 9 Commonly Asked and Answered Life Insurance Questions

Life insurance in Houston may be referred to as the most important investment in your life, since you are doing it to take care of your loved ones when you are not around. Therefore, making the right decision is very critical. Choosing the right policy may be seem very difficult at first, but you can make the right decision after being informed of all the necessary details.

When people are looking to buy life insurance, they come across a number of complications. Many questions come to mind that they do not know the answers to. Keeping in view the concept of life insurance, it should be simple enough to understand. But on contrary to the expected simplicity, there are things that always prove to be very confusing. So, to make it a little simpler for you, 10 of the most commonly asked questions regarding life insurance are answered in the sections below.

1    What is the right amount of insurance for you?

When it comes to defining an amount for your life insurance, nothing seems to be adequate. Therefore, it is strongly recommended to go by the rule of thumb according to which you are supposed to multiply your annual salary ten times.

2     How long should the term of your insurance policy be?

The answer to this question depends upon your current age. For instance, if you are living your mid or late 30s, having a life insurance for 30 years might be a good idea.

3     How to figure out the best life insurance provider?

When you are planning on getting a life insurance, you come across numerous choices. But it is strongly recommended not to go for the first option that crosses your path. You need to research different insurance providers to find out the one offering the best benefits.

4     What is the difficulty level of life insurance exams?

If you are a healthy person, there is no need to worry about anything. All you need to do is follow the instructions that you are asked to follow before appearing in a medical exam and you are good to go. On the contrary, if you are not confident about a perfect evaluation, you could always go for policies that do not require a medical exam by paying more money.

5      Term insurance or whole life insurance?

If you are interested in arranging the right amount of money for your family, the best option is to go with term insurance since life insurance can be pretty expensive as you are getting it for your whole life.

6      Premium life insurance return – recommended or not?

Premium insurance can be very expensive. Keeping in view the benefits it offers, it is not worth the investment. The better choice is to get a life insurance policy and invest the extra money somewhere else.

7      Is it recommended to get life insurance for kids?

Personally, I see it as a good choice since your kid has their whole life ahead of them.

Bonus - How to look up for the rating possessed by your insurance provider?

There are different websites that provide information on ratings associated with different companies. You may check them out to find your answers.

8      What happens in the event of your insurance policy lapsing?

In case your insurance policy lapses, it is strongly advisable to coordinate with your insurance provider, pay off the owed money, and get it back up and running.

9      Should you ever buy more life insurance policies?

It is recommended to carry out an analysis of your existing life insurance policy after coming across different major life events. If you think you haven’t got the right coverage amount, it is recommended to purchase more policies. 

Visit our other insurance blog for other interesting reads.

How do I choose which life insurance is the best for me when there are so many options?

There are many people who at some point in their life struggle to spend days happily and pay their bills on time every month. These awkward situations might be the result of the economic environment of the country or because of internal personal issues.

Now, the economy all over the world and especially in America is on the greener side and people are paying close attention to various savings and retirement plans – and that constitutes life insurance as well.

Suppose that you are single and young, and do not make much money, then most would think life insurance wouldn’t be a concern. But, if you have dependents like children, spouse and aging parents, then in the unfortunate event of your death, they may suffer financially. So, it becomes more of a necessity to have a life policy.

But with so many options available, a life insurance buyer mostly gets confused. There is nothing surprising if you are also confused about the advantages your life insurance policy should feature. This article is aimed to remove the confusion you have about buying a policy.

Many surveys from different insurance quote websites conclude that today, almost 40 percent of Americans don’t have a life insurance policy and that around 35 percent of insured people do not completely understand their policy’s terms.

So, there is nothing to be more confused about anymore as there are broadly two types of life insurance people usually buy. They are called “permanent” and “term” life insurance.

Permanent Life Insurance

A permanent life insurance covers you for the whole life until your death. It does not matter if you die tomorrow or after completing more than 100 years, the death benefit will be paid. Furthermore, it is also a savings element which provides many tax benefits. It can also be a source of temporary (borrowed) funds to fulfill various purposes. Tip: Read your policy thoroughly as coverage can change from policy to policy.

A permanent life insurance can also help to borrow funds against it if you have a life event. In borrowing, the loan’s collateral is the death benefit. When death happens before repaying, firstly, dues will be repaid and then remaining amount will be paid to beneficiary.

Term Life Insurance

A term life insurance is best for people who want the coverage for a limited time period. For example, suppose that you are a homeowner, married with kids, who has a 30 year mortgage debt to repay, then, you can buy a term policy to prevent losing the property to the bank. Furthermore, your family will be able to keep the property without having to worry about finding another placed to stay.

In case you want higher coverage at a low premium, then you can go for term life insurance. You remain protected till the time period selected. If low premium and higher coverage in this kind of insurance are the positives, then this is a policy you should consider.

Although, these options will offer a level of protection, both permanent as well as term can be a good thing to have but remember the final decision should always be dependent upon the needs, preferences and pocket of the buyer. That’s why it is always suggested to do proper and thorough research before buying any policy.

You should note that if your financial requirements change over time, term life gives you the opportunity to convert it into a permanent policy. Generally, the conversion will not involve any medical examination, only higher premiums should be paid.

In case of permanent life insurance, the premiums are higher from the beginning and remains constant based on the duration selected.

So, these are the two broad choices you should consider choosing from a policy. Before finalizing the purchase of any policy, ask a lot of questions, especially about the coverage time, fees and charges, loan options and flexible repayments as a start. 

Why Flood Insurance Is Not Automatically Included In Your Homeowners Insurance

It is not unusual to find that insurance policies come with varying exclusions. One of the most common exclusions is flooding – it’s simply not covered by homeowners insurance, and very few homeowners bother with it. 

According to a 2016 survey by the Insurance Information Institute, only 12% of homeowners have flood insurance. In the previous year, that figure was 15%. Why homeowners do not seek cover for such a potentially devastating event could be due to many reasons, but the most probable might be an assumption by most people that their homeowners insurance covers them in the event of flooding.

Regardless of the reason, the fact remains that your homeowners insurance doesn’t cover flooding, and in this article, we take a look at why this is so. But before we proceed, it is important to know that there is a difference between water damage and flood damage. 

Water damage from a broken or leaky pipe in your home would be covered; but what is properly referred to as a ‘flood’ in insurance terms would not be. Flooding, in insurance terms, refers to a situation in which a body of water outside your home overflows to a point where it enters your home. Usually such events are due to a natural disaster and more than one home is affected. It’s this kind of flooding that’s not covered.

1.           Costs of flood losses exceed premiums collected

The first reason is a simple matter of economic sense – it doesn’t make any for insurance companies. The cost of damage associated with floods is simply astronomical. Interestingly enough, there was a time – before 1950 – when flooding was covered by the homeowners insurance. However, over time, losses incurred as a result of flooding increasingly became too much of a burden. As a result, many insurance companies started excluding flooding from their homeowners insurance packages. 

Eventually, in the early 1960s, all private insurance companies stopped offering flooding insurance because it wasn’t profitable. This created a huge gap and forced homeowners to bear their losses, many of which was simply too onerous owing to the high costs of the losses. This forced the government to step in. At first, the government provided public disaster aid to assist homeowners before the NFIP was established in 1968 to provide flood insurance.

2.           Relatively low numbers of properties involved

The way insurance works, so that it is profitable for insurance companies, is to have a lot of people subscribing to a policy. Larger numbers of people translates into a larger pool of money from premiums to offset losses from the few people who do need to claim on the insurance policy. 

When the reverse is the case, then the pool of money is smaller. And so insurance companies would literally be shooting themselves in the foot if they included flooding as part of homeowners insurance without extra premiums to make the pool of money larger. But of course, the ability to charge extra premiums is based on the premise that more people would be willing to pay it for flood insurance, a notion already negated by the 12% statistics cited earlier. 

However, private insurance companies offer additional insurance known as ‘excess coverage’ on top of the flood cover the government offers. The government only offers up to $350,000 in coverage - $250,000 for house structure and up to $100,000 for the contents and personal possessions in the house.

Ultimately, insurance companies need to make profits; providing flood cover diminishes that profitability and that is the main reason why flooding is usually not included in homeowners insurance covers.

Homeowners Guide to Simply Understanding Home Insurance

This policy covers a personal property or a house in case it is destroyed or damaged by an occurrence or event covered by the policy. The replacement or repair costs required in the private property are usually paid by this kind of insurance. The occurrences or events are termed as “covered losses.”

Note: Before buying home insurance Houston TX, you should know that it is a contract between you and the insurance company. 

You should carefully go through it and understand what exactly is covered and how much the limit of the coverage is. Since the renters and homeowners in Texas fall under the Consumer Bill of Rights, you should also be aware of your rights. Moreover, while buying or renewing a home insurance, you should get a bill of rights from your insurance company.

Can I Get Insurance on A Home I Do Not Own?

This is a common question often asked and the answer to it is, no. You can’t get homeowners insurance on a home you do not own. To get it, the home should be named after the individual living in it. Homeowners insurance policies specifically mention that the person under whose name the policy is issued should be the real owner of the house and they should be living there. Another factor to be considered is that the home should not be left vacant for 30 consecutive days, otherwise the policy will be considered invalid.

General Questions to Ask

When it comes to homeowners insurance, there are some questions whose answers should definitely be known. 5 such questions along with the answers are mentioned below:

1.      What factors can affect the premiums?

Some of the important factors are the characteristics and features of the house (e.g. the structure type, the age of the house, wiring, garage, roof, etc.), its location, protective devices (if installed, premium cost will come down), personal factors, and claims history.

2.      Why should a home inventory be completed?

When you buy a home and a Homeowners insurance policy, you should maintain a complete home inventory. If any claims occur in the future, it will be settled quickly. A complete home inventory allows the insurance companies to easily verify the property. This, in turn, quickens the claim settlement.  

3.      How can a home inventory be completed?

You can start with making a list of all your possessions. In that list, describe each item along with the make, model and the place from which it was purchased. Besides noting down the details, you should keep the sales receipts and purchase contracts as a proof.  

You can make a few especial lists or include different sections in the same list. You should also note down the valuables you own, such as jewelry, artwork or paintings in one list and other less-valuable things in another list. Moreover, you can take pictures of the individual items and rooms. Or you can go a step further and videotape your house and in that videotape, make all the contents of your home properly visible.

When it is done, save the inventory list on your PC and on a separate disk. All the photos, videotapes and documents describing inventory should be stored securely in a safe deposit box.

4.      What is the difference between non-renewing and canceling?

The non-renewing of a policy means that a policy is not continued after completing a predefined term. It can be your or the insurance company’s decision to discontinue the policy at the end of the policy tenure. If it is the company’s decision, you will be provided clarification and asked to raise any doubt within a specific time.

Usually, it is not seen that an active policy is canceled by the insurance companies. These cancellations occur because of premium payment failure, or the owner commits fraud or has made some serious misrepresentations on the application.

5.      Which parts make up a policy?

The HO policies vary from company to company. But there are certain basic components that are common in all the policies, including the very first page (part) of an insurance policy that contains a summary of the homeowner.

In other parts of the policies, definitions of complex terms used in the document, information about coverage and exclusions, terms and conditions, and endorsements are mentioned.

How to Find the Best Insurance Agent near Me? 

As mentioned above, the coverage and rates may vary depending on the insurance company. So, it is always suggested that you do a proper research about all the options available on the market. After all, it is your money and you should put it in the right place.

The first thing you can do is identify your requirements (coverage and coverage amount). Then you should research different insurance companies and agents in your area, and get quotes from them. While comparing, make sure that the comparison is between two policies of different companies but the coverage is same.

After that, discuss the details with your insurance agent. Be truthful while answering any question, as any lie will have its consequences which will hurt at the time of claim. Ask your agent whether or not you are eligible to get discounts. At this time, one more thing you should consider is the “high deductibles.” 

An important point to note here is that higher deductibles will lower the premium amount but during the time of claim, you won’t get any higher claim amount. So choose sensibly.

Before finalizing a dwelling policy, you should also consider investigating the complaint index, financial rating, and license status of the insurance company. This will provide you with information about the company’s strength, financial stability, and customer service.

Do I Need a Homeowners Insurance If I Own My Home?

It is not mandatory for the owner to get homeowners insurance but if your house is financed, your lender will want your house to be insured because it will protect it from damages caused by unforeseen situations, like fire or natural disasters.

If your home is in an area where flooding is common, your lender will probably require you to buy a separate flood insurance policy. After the mortgage is over, it will be completely up to you to decide whether you will stop or continue the homeowners insurance.

What Is a Peril and What Perils Are Included in a Home Policy?

The mishaps against which the insurance companies give the protection are called “perils.” This term is an industry term and is very common in the insurance sector. There are some common perils that are usually covered by most home insurance policies. The common ones are fire and smoke; lightning strikes; hail and windstorm; explosion; vandalism and malicious mischief; damage caused by a car, airplane or vehicle; theft, falling of objects; the weight of snow and sleet; and water damage.

All the above-mentioned causes are commonly covered in a normal home policy, as stated earlier. The insurance company pays for the repairs required by damages. In cases like fire and storm, the homeowners are forced to live at another place and the insurance company pays for those expenses as well. However, if you live in a flood-prone area where serious damage is more likely to be caused by flooding, you will need to buy a separate flood policy.

You should note that a HO policy covers the damage caused by many incidents, but there are some scenarios that it does not cover. You can get further information by going through your policy’s terms or discussing your requirements with your agent.

Commercial Property Insurance Guide for Choosing the Right Policy

With the commercial property insurance, a commercial property gets protection in terms of compensation from many unwanted happenings, such as theft, fire, and natural disasters. 

A lot of business organizations, including manufacturers, retailers, non-profit institutions, and service-oriented enterprises get covered with this type of insurance. Commercial property insurance even covers ranches or farms.

When these properties suffer from a theft or get damaged by fire or storm, they are compensated by the insurance to replace or repair them. Commercial Insurance Houston TX policies also pay for the replacement of a lost or stolen property.

Types of Commercial Property Policies

In Texas, commercial properties are divided into three categories as mentioned below:

1.      Basic form policies: The common perils are covered in these policies. For example, storms and fires.

2.      Broad form policies: In these policies, common perils as well as other damages caused by structural collapse, water, sprinkle leakage, the weight of snow, sleet and ice are covered.

3.      Special form policies: These policies cover all kinds of perils except the ones specifically excluded in the policy. The exclusions commonly include harms from earth movement, flood, terrorism, war, wear and tear, nuclear disaster, and insects.

Prior to buying a policy, study it carefully. You may require buying separate policies or additional coverage, like a windstorm, crime coverage, or a flood policy to completely protect your enterprise.

If you are operating a business in more than one location, you can get it completely covered by a single policy unless the business at different locations has different risk profiles and functions. 

For example, some businesses have a factory at one location and the administrative office at another. In such cases, the agent can clarify whether a single policy will cover it or separate policies will be required.

Note: In the Texas coastal counties, damages from a windstorm are not covered in most of the commercial property policies available. For example, the Harris County’s parts in Galveston Bay and 14 other coastal counties are excluded. So, businesses situated in these counties will require a separate policy to cover a windstorm.

In case you lease or rent a building, your property in the building won’t be covered in the building owner’s policy. A tenant coverage should be bought separately to insure the furniture, machinery, and merchandise. The cost of tenant coverage is usually less than the coverage of a building because in this policy, only the building’s contents are covered instead of the whole building.

Commercial Property Coverages

Some insurance professionals say the policies for commercial property lack standardization. There are certain minimum requirements by the state that insurance companies should meet, but they can further develop or modify the policies on their own. Thus, the terms of policy and coverage may vary from one insurance provider to another.

CMP (Commercial Multi-Peril): Multiple coverages are incorporated in these policies so that the property gets complete protection from a single policy. This may cover commercial property, commercial auto, inland marine, and liability. In comparison to buying individual coverages, it costs less to buy a CMP policy.

BOP (Business Owner Program): These are the common commercial policies for small businesses. Businesses that have adopted these policies get the liability and property covered in a single property.

A variety of unwanted happenings are covered in commercial property policies and they are either the base property’s part or one can avail them by endorsing different coverages. While endorsing or expanding the coverages of a policy, the premium usually increases. Moreover, the coverages can be bought as individual standalone policies.

Common coverages: There are certain risks that almost all the commercial property insurance policies in Texas cover, including buildings not owned but regularly used, newly constructed or acquired buildings, personal properties of employees, off-premises, business interruption, extra expenses, valuable papers, law or ordinance, machinery and boiler, and inland marine.

Crime coverage: As different types of criminal activities can harm the property, there are different policies to give businesses protection from crimes. Some common crime coverages include safe burglary and robbery, loss of money and glass because of theft, alteration or forgery, and disappearance or destruction of important assets in the commercial property.

When a Texas commercial insurance policy pays for the losses due to a crime, it pays on the basis of the discovery or the loss sustained. In the discovery coverage, you are covered upon discovery losses and in the loss sustained coverage, you are paid for losses incurred during the duration of the policy.

Flood Coverage: Some insurance companies cover the risk of flood in their commercial property coverage. But it is usually available in the areas with less risk of flood. However, NFIP (National Flood Insurance Program) is the one that offers the flood insurance.

Qualification for NFIP coverage requires the business to be located within the NFIP engaging community. To minimize flood damage, these communities have adopted floodplain management and federal building programs. Communities with a high risk of flooding fall under NFIP and NFIP wants every structure in these areas to have the flood insurance.

Hail and Windstorm Coverage: In the coastal areas of Texas, insurance companies usually do not cover damages from a hail or a windstorm in their commercial property policies. If your business exists in certain areas of Harris County or 14 coastal counties of Texas, you should avail the windstorm coverage by TWIA (the Texas Windstorm Insurance Association).

This is available for all the properties made, remodeled, or repaired prior to 1^st January, 1988. However, the commercial developments after this date need to be inspected.

Understanding Commercial Property Rates   

To understand the rates, you should know that a process called underwriting is followed by the insurance companies. It usually determines the likability of your business to file an insurance claim. The premium rates are directly proportional to your claim’s likelihood. If the likelihood is more, the premium will be more. If it is found by any Houston commercial insurance company that your enterprise is on the higher risk for loss, it may deny issuing a policy.

The rates of commercial property insurance are usually determined by the primary factor, fire risk. The underwriting process by insurance companies includes inspection of a commercial property for possible hazards. The fire rating of a business property is determined by five factors of a standard rating system used by fire inspectors. These factors are the quality of construction materials, location of the property, whether the property is occupied or not, protective measures to prevent fire, and exposure to external fire dangers.

Shopping for Commercial Property Insurance

When it comes to buying a CIP, you should consider certain things which may affect your buying decision.

Prior to applying for a commercial property insurance coverage, you should get rid of all the possible hazards that can increase the chances of an insurance claim. Your insurance company or agent will guide you in eliminating the hazards.

While shopping, get quotes from different companies. Remember that a cheaper policy may cover fewer risks. Some insurance companies may deny giving you the commercial property insurance because every company has different underwriting criteria. However, you should not stop searching for the best one for you if you are denied.

Another factor to consider is the “higher deductibles.” When an insurance company pays you for a claim, you are charged a cost for the claim. Here, more deductibles mean less premium. Sometimes it happens that you end up paying more from your pocket during a claim. 

Further, look if your policy has a limit which means a specific amount being fixed up to which the insurance company will pay. Last but not least, do not forget to check the licenses of your insurance company and agent.