With a population of 513,620 consisting of a broad mix of ethnicities and cultures, Sacramento, the capital city of California, is celebrated for its diversity. The median property value in the city is $380,600 with a home ownership rate of 48.7%. Located in the northern part of the state at the confluence of the American River and Sacramento River, the city boasts two major universities and is a major center for California's healthcare industry. It is also a popular tourist destination, with a number of museums, historic parks, and an international airport.
The median price for property in Sacramento is above the national average, with a price per square foot of $301. The market in Sacramento is favorable for real estate investing, with a market in the top three for occupancy growth and an increase in rental income, growing tourist locations, and a robust job market.
The Role of Your Real Estate Insurance Broker in Sacramento
With so many opportunities for investing in real estate in Sacramento, you need a team on your side to help with the logistics of protecting your properties. A real estate insurance broker in Sacramento should work with you to investigate policies such as a Business Owners Policy (BOP) and fine-tune the coverage to meet your needs. You can avoid coverage gaps and save money with a combination of the following:
Commercial property insurance covers against losses that result from damage or destruction to your physical business assets, including your building, leased or owned equipment, and outdoor fixtures like signs or fences. Damages could result from building collapse, destruction from civil unrest, equipment loss, explosion, weather-related events, or damage caused by aircraft, vehicles, vessels, or vandalism.
Business liability insurance protects your company from financial losses due to claims of injury or property damage resulting from your business or employees.
Factors Affecting Real Estate Insurance Cost
A quality real estate insurance broker in Sacramento understands the business climate and needs in the area. Your broker can explain the issues that affect your commercial real estate insurance rates, including the following factors:
Building age increases the cost of insurance. Older buildings are more likely to need repairs, and these repairs are usually more expensive.
Larger office buildings or warehouses are more expensive to insure than individual rooms, offices, or small buidings.
The type of equipment your business uses affects the cost of your insurance premiums. General office equipment is less expensive to insure than heavy machinery.
The age of your equipment makes a difference. With an increased likelihood of breaking down and increased difficulty in finding replacement parts, older machinery is usually more expensive to insure than newer models.
Your company's location, including environmental risks like storms or floods, plays a role in setting insurance premiums. The value of the land and requirements of local legislation also impact the cost.
Building safety and security is a consideration in establishing policy costs. A building in a high-crime area is more expensive to insure, as is a building without any sort of security system.
Your real estate insurance broker in Sacramento will explain that the options you choose for insurance makes a difference in your premiums. Replacement-value policies are the most expensive because they cover all costs when a rebuild is necessary. Cash-value coverage costs less because it utilizes depreciated property value for the payout and usually doesn't cover the total cost involved for a new build when there is a complete loss.
Take the Next Step
We at HUB International have qualified professional real estate insurance brokers in Sacramento ready to help you find a specialized policy to protect your business and properties from loss. Contact us to schedule a consultation.