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e or hard to replace items such as rare instruments or valuable antiques should consider scheduling these items with an Agreed Amount loss settlement. This value will be the amount an insurance company pays for damaged goods which cannot be replaced on the open market. Insurance companies are reluctant to schedule a large amount of specialty items;

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The problem for many business owners is in the proper valuation of specialty equipment, unique or one of a kind inventory, valuable records, and trade fixtures or tenants improvements or betterments. Here are some tips for evaluating replacement cost of hard to value items in business contents insurance.

If a business has completed a sale of items which are in the delivery process at the time of an accident that causes damage to the property, there is an optional valuation method, Manufacturers Selling Price, which can be added by endorsement to a commercial property policy. This endorsement compensates the business for lost sales of these items after a covered loss.If a business is highly seasonal or has widely fluctuating values of inventory, it can be difficult to place a value on the property. Choosing a value equal to peak season levels may result in higher premiums than necessary. There are two ways to handle this property:

Business


The Peak Season Endorsement automatically increases the business contents insurance limit to a level established in the endorsement for a period of time as established in the insurance application. This allows the business to only pay the higher premium for the time when property values are higher.If the inventory levels of a business fluctuate widely but are not as predicable by seasonal demands, a business should consider a reporting form. This endorsement will establish a high limit of coverage for personal property insured and the insured will complete a report periodically

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