Commercial Property Insurance Coverages

Commercial Property Insurance includes the original peril of "Fire" Insurance protection and has evolved to include many other perils today. Usually included are Lightning, Windstorm, Hurricane, Hail, Vandalism and even Theft. Purchasing fire insurance will protect your business from a total or a partial loss in the case of damage from a fire or other insured peril. We can even broaden your policy to cover all types of physical loss with few exclusions such as war.

Almost all commercial property insurance policies, including fire insurance, have a “deductible,” which is the amount you must pay toward the cost of a claim before the insurer will pay. The higher your policy’s deductible, the lower your premium should be. Keep in mind, however, that you’ll have to pay more out of pocket if you have a claim. Your policy will also have a “policy limit,” which is the maximum amount the insurer will pay for any covered loss.

Do You Have The Right Commercial Property Insurance?

Commercial property insurance policies provide either “replacement cost” coverage, “actual cash value” coverage, or a combination of both. Replacement cost coverage will pay to replace your property with new property of like kind and quality, up to the policy’s dollar limit. An actual cash value policy will pay the replacement cost of the property minus depreciation due to age and normal wear and tear. Although replacement cost coverage is more expensive than actual cash value coverage, it might better ensure that your business fully recovers after a significant loss. In Texas, commercial property insurance policies are not standardized, but there are three standard types of commercial property insurance policies. Insurers must comply with minimum requirements but have a great deal of flexibility to develop their own policies. As a result, coverages and policy terms may vary significantly by insurer and by policy.

Does Your Commercial Property Insurance Work for You? 

For example, if you have large number of buildings to insure ($50,000,000+) and they are located over a significant geographic area, you may be willing to insure them all but at a lower total insured limit than the total value of all your properties. That can significantly cut your property insurance premiums! Call to inquire as we have insurers willing to work with us on this kind of innovative program.

We will work with you to design a program that fits your needs. We can help you choose adequate coverage limits, the proper deductible, and the most cost effective co-insurance percentage. Would you benefit from Blanket Coverage? Can we get the co-insurance waived on your policy? Contact our Commercial Property Insurance Specialists today for a Free Evaluation and Quote.