Different types of commercial property insurance policies protect against different risks, or “perils.” Some policies will cover only those risks specifically named in the policy. Other policies will cover all risks, unless the policy specifically excludes them. Be sure to read your policy carefully. You may need to buy additional coverages or specialized policies, such as flood, windstorm, or crime coverage, to fully protect your business.
Commercial property insurance policies in Texas generally fall into one of three categories:
- Basic Commercial Insurance form policies typically cover common risks or perils, such as damage from fire, lightning, windstorm, vehicles, aircraft, or civil commotion.
- Broad Commercial Insurance form policies typically provide basic form coverage plus coverage for additional perils, such as water damage, structural collapse, sprinkler leakage, and losses caused by ice, sleet, or weight of snow.
- Special Commercial Insurance form policies cover against all types of losses except those the policy specifically excludes. Common special form exclusions include losses from flood, earth movement, war, terrorism, nuclear disaster, wear and tear, and insects and vermin.
Most commercial property insurance policies cover damage from windstorms, except in counties on the Texas coast. If your business is in one of Texas’ coastal counties, you’ll probably need a separate windstorm policy. Refer to the section on windstorm coverage for more information.
List of Texas Coastal Counties with Windstorm Insurance coverage exceptions:
- Aransas County
- Brazoria County
- Calhoun County
- Cameron County
- Chambers County
- Galveston County
- Jefferson County
- Kenedy County
- Kleberg County
- Matagorda County
- Nueces County
- Refugio County
- San Patricio County
- Willacy County
- Other areas as designated by the Commissioner of Insurance.
Provided by Texas Department of Insurance
