MONTEREY, Calif., Sept. 17, 2013 /PRNewswire/ -- Capital Insurance Group® (CIG), the leading regional property and casualty insurer serving the Western U.S., is now offering commercial property owners an innovative 125-percent extended replacement coverage and the elimination of potential coinsurance penalties. The two product advancements working in tandem will help mitigate the expenses that the insured commercial property owner may otherwise pay out-of-pocket in the event of a loss.

(Logo: http://photos.prnewswire.com/prnh/20130404/LA88690LOGO)

"We understand the intricacies and complexities of managing a commercial property.  CIG is proud to offer insurance solutions that remove obstacles for business owners while protecting their livelihood," said Ken Stewart, Director, CIG Commercial Lines.

The announcements of the newly released insurance endorsements represent significant enhancements to business-owner policies ("BOP").

125% Extended Replacement Cost

This new coverage automatically provided with all BOP policies for no additional charge provides up to 125 percent of the building coverage limit to repair or replace the damaged building if that's what it costs to rebuild. While all buildings should be insured to at least their estimated replacement cost, 125% Extended Replacement Cost may offset a gap in coverage limits if the estimated replacement cost of insured property is less than the actual cost to rebuild.  

Example: If replacement cost is estimated at $100,000, the insurance coverage could pay up to $125,000 to replace the building if that is what it costs to repair or rebuild.

Coinsurance Penalties No Longer Apply

When coinsurance provisions apply, in order for a building owner to collect full coverage on a damaged building, the property must be insured for an estimated replacement cost, within a certain percentage range of the actual cost to replace. This means if replacing the building actually costs more than the estimated value, the insured would then be responsible for the disparity (called a coinsurance penalty). CIG has eliminated these coinsurance provisions from all BOP policies for no additional charge.

To learn more about CIG or its coverage options in your area, visit www.CIGinsurance.com

About Capital Insurance Group Capital Insurance Group^® (CIG) is the leading regional property and casualty insurer serving the Western U.S. since 1898. CIG insures Personal Auto, Homeowners, Farmowners, Condo Owners, Vacation Property, Renters, Apartment Building Owners, and many kinds of Commercial and Agricultural Auto and Property. The 115-year-old company is rated "A" (Excellent) by A.M. Best, the independent financial monitor of the insurance industry. CIG manages personal, business, and agriculture risks underwritten by its affiliate companies: California Capital Insurance Company, Eagle West Insurance Company, Nevada Capital Insurance Company, and Monterey Insurance Company. Types of policies may vary from state to state. For more information, please visit www.CIGinsurance.com CIG Delivers More. Continuously.™

SOURCE Capital Insurance Group

RELATED LINKShttp://www.CIGinsurance.com