Commercial Property Insurance Calculator
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About Commercial Property Insurance
Commercial property insurance protects the physical assets of your business — the building, equipment, inventory, furniture, and fixtures — from damage caused by fire, theft, vandalism, wind, and other covered perils. If you own your building, coverage should reflect full replacement cost. If you lease, your policy should still cover your improvements, equipment, and contents. Location matters enormously: Florida and Texas businesses pay significantly more due to hurricane and storm risk. Installing a fire sprinkler system can earn a 10% discount. Most commercial property policies do not cover flood or earthquake — those require separate policies.
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Frequently Asked Questions
What does commercial property insurance cover?
It covers the building and business personal property (equipment, inventory, furniture) from covered perils like fire, theft, vandalism, and certain weather events. It does not typically cover flood or earthquake.
Should I insure at replacement cost or actual cash value?
Replacement cost coverage pays to rebuild or replace damaged property with new materials at current prices. Actual cash value deducts depreciation. Replacement cost is almost always the better choice for businesses.
What if I lease my space?
Tenants still need commercial property insurance to cover their equipment, inventory, and any tenant improvements. Your landlord's policy only covers the building structure itself, not your business contents.
Does location affect commercial property premiums?
Yes significantly. Properties in hurricane-prone states like Florida pay 50–80% more than the national average. Proximity to a fire station, construction type, and local crime rates also affect pricing.
Is flood covered under commercial property insurance?
No, flood damage is excluded from standard commercial property policies. If your business is in a flood zone, you need a separate commercial flood insurance policy through the NFIP or a private insurer.
Results are estimates only. Actual premiums depend on underwriting factors specific to your business. Consult a licensed insurance professional for an accurate quote.