Calculator Inputs
Example Data Table
Use this sample to understand typical inputs and outputs.
| Scenario | Building | Contents | Business Income | Deductible | Occupancy | Construction | Est. Annual Premium |
|---|---|---|---|---|---|---|---|
| Baseline Office | $1,500,000 | $250,000 | $300,000 | $2,500 | Office | Joisted Masonry | Calculated by inputs above |
| Retail + Higher Deductible | $2,000,000 | $400,000 | $350,000 | $10,000 | Retail | Non-Combustible | Typically lower than similar low-deductible case |
| Restaurant + Add-ons | $1,200,000 | $300,000 | $450,000 | $5,000 | Restaurant | Frame | Often higher due to occupancy and fire load |
Formula Used
This tool uses a simplified rating approach to estimate annual premium:
- TIV = Building + Contents + Business Income
- Base Premium = (TIV / 1,000) × Base Rate
- Adjusted Premium = Base Premium × Risk Multiplier × Credits × Deductible Factor × Options Factor + Liability Add-on
- Annual Premium = max(Minimum Premium, Adjusted Premium) + Taxes/Fees
Factors shown are illustrative only and do not represent any specific insurer’s filings.
How to Use This Calculator
- Enter coverage values for building, contents, and business income.
- Choose deductible, occupancy, and construction type for your property.
- Set risk indexes and claims history to reflect your situation.
- Select risk controls and optional coverages to see premium impact.
- Click Calculate Premium to view results and charts.
- Use CSV/PDF downloads to save or share the estimate.
Premium Drivers and Typical Ranges
Commercial property pricing commonly starts with a base rate per $1,000 of Total Insured Value (TIV). In many small to mid-market accounts, illustrative rates may fall around $0.75–$2.50 per $1,000, depending on occupancy, construction, and loss history. Higher fire load uses, older wiring, and adverse loss trends often push pricing upward.
Total Insured Value and Coverage Mix
TIV combines building, contents, and business income exposure. A $1.5M building plus $250k contents plus $300k income yields $2.05M TIV. Shifting $200k from contents to business income may not change TIV, but it can change underwriting focus because time element losses behave differently than physical damage losses.
Risk Multipliers from Property Characteristics
Occupancy and construction can move a multiplier meaningfully. For example, an office in joisted masonry may carry a lower factor than a restaurant in frame construction. Protection class, distance to hydrants, and distance to a fire station are practical proxies for fire response effectiveness and can affect modeled severity.
Deductibles, Coinsurance, and Vacancy Effects
Deductible selection is a primary lever. Moving from $2,500 to $10,000 can reduce modeled premium, but increases retained loss. Coinsurance is shown as a small pricing adjustment in this calculator; real policies can also apply penalties for underinsurance. Vacancy longer than 3–6 months often increases rate and restricts perils.
Endorsements, Taxes, and Budgeting Output
Endorsements like sewer backup, equipment breakdown, ordinance and law, and wind enhancements add incremental cost. Premium taxes and policy fees are then applied to the adjusted premium. Use the annual estimate and payment-plan output to compare scenarios, document assumptions, and export CSV/PDF for stakeholders.
FAQs
1) Is this a real insurance quote?
No. It is an educational estimator using simplified rating factors. Actual quotes depend on carrier filings, inspections, location data, and underwriting judgment.
2) What inputs matter most?
TIV, occupancy, construction, claims history, and local hazard exposure usually drive the largest changes. Deductible selection also materially affects premium and retained loss.
3) Why include business income in TIV?
Business income reflects time-element exposure after a covered loss. Including it helps budget for interruption risk, especially where reopening time is long or supply chains are constrained.
4) How should I choose a deductible?
Align it with cash flow tolerance and risk appetite. Higher deductibles can reduce premium but increase retained loss frequency. Consider past loss patterns and maintenance quality.
5) What does coinsurance do here?
This calculator models coinsurance as a small pricing adjustment for simplicity. In real policies, insufficient insurance can trigger a claim payment penalty even if the deductible is met.
6) Can I export results for review?
Yes. After calculating, use the CSV and PDF buttons to download a snapshot of the last scenario. You can also print the page for internal documentation.