The 3 Levels of Commercial Damage

2/9/2020 (Permalink)

There are 3 levels of commercial damage that should be considered:

Level 1:

Level 1 is a small commercial loss typically involving 15,000 square feet or less of affected floor space. If the facility was entirely affected, examples of a small commercial loss may include, but are not limited to, a stand-alone retail establishment, a small church, a daycare facility, a small shopping center, a small warehouse or manufacturing facility, or a stand-alone administrative building. A Level 1 loss can also be a small portion of a much larger structure.

Level 2:

Level 2 is a midsize commercial loss typically involving 15,000 to 60,000 square feet of affected floor space. The building or buildings involved are usually multi-level or greatly divided spaces. If the facility was entirely affected, examples of a Level 2 loss may include, but are not limited to, a small multi-family property, a midsize church or school, a small shopping center, a multi-tenant administration facility, or a midsize warehouse or manufacturing facility. A Level 2 loss can also be just a portion of a much larger structure.

Level 3:

Level 3 is a large commercial loss typically involving more than 60,000 square feet of affected floor space. The building or buildings involved will likely be large multi-level structures. If the facility was entirely affected, examples of a Level 3 loss can include, but are not limited to, a large church, hospital, school, or university; a large multi-family property; a mid- to high-rise retail or administration facility; a large industrial, manufacturing, or warehouse facility; or a large strip-style shopping center or shopping mall. This is the level at which it would be appropriate to refer to the project as a “large loss.”