The value you choose should be based on your estimated ability to rebuild in case a disaster strikes, and the risk you are willing to take. If your business bases coverage on the actual cash value, you will likely pay lower premiums, but you could be responsible for higher cost if you are forced to rebuild from scratch. If your coverage is based on replacement value, your premiums may rise to keep pace with the rising costs of new construction, but your out-of-pocket cost in case of emergency would likely be lower. If you rent your space, your situation may demand different options. Usually this is determined by your existing contract, so you should look closely at your lease to find the gaps in coverage. After that, work with your insurance agent to customize your policy to minimize your loss potential.
As far as the value of what is inside the building that can be more difficult. Some businesses may have expensive manufacturing equipment they must protect, while others focus on assessing the value of their in-stock inventory. Work closely with your agent to determine the appropriate value of building contents, because an accurate assessment can help get your business up and running much sooner in the event of a covered loss.
Overall protecting the actual assets of your business is something that we can help you with at BEW Financial Solutions. Please feel free to contact us with any questions or for more information for your business.