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Commercial Property Insurance Coverage in Texas: What You Need to Know

Commercial Property Insurance Coverage in Texas: What You Need to Know

What is Commercial Property Insurance Coverage?

 

Apart from Business Insurance, another coverage that business owners need to consider carefully is a Commercial Property Insurance Coverage. A Commercial Property Insurance Coverage protects any of your commercial properties (offices, warehouses, etc) from theft, vandalism, fire, burst pipes, and more. If your insurance company allows it, you can also be protected against earthquakes and floods.

 

How Much Commercial Property Insurance Do I Need?

 

How much your Commercial Property Insurance Coverage plan covers should depend largely on your choice. You might choose to go for a lower coverage plan if you believe your commercial properties are low-risk and vice versa. On average, a small business owner might only need a Commercial Property Insurance Coverage of $500 a year. On the other hand, a medium-sized company with about 30 employees might need coverage of $3,000 a year. An enterprise should be looking at a figure of about $500,00 a year.

 

What Does Commercial Property Insurance Cover?

 

While some Commercial Property Insurance Coverages cover numerous situations, there are several that cover less. This depends upon how much your insurance company is willing to cover and what all you'd like to be included. Generally, Commercial Property Insurance Coverage covers the following:

 

Water Damage

 

Instances of burst pipes in the office, warehouses, or manufacturing plants are covered underwater damage. This might also include damage due to a flood.

 

Fire Damage

 

This includes fires that usually start outside the building, such as a fire lit by vandals or any other accidental fire. Usually, fires lit by an unattended stove or faulty microwave are not covered.

 

Small Business

 

Small businesses must realize that a Commercial Property Insurance Coverage isn't just for enterprises. You need to secure your office equipment, accounting records, company documents, and other items with a Commercial Property Insurance Coverage as well.

 

Hazard Insurance

 

An important part of any Commercial Property Insurance Coverage. This covers you against damages from natural events such as storms, floods, etc.

 

Theft

 

A Commercial Property Insurance Coverage will cover your damages if your inventory, equipment, important documents, account records, etc are stolen.

 

Commercial Property Insurance Valuation Methods

 

The size of Commercial Property Insurance Coverage depends on several factors. Generally, three factors play the most determining role.

 

1. Location - If you are in an earthquake-prone zone, it's wise to get a larger Commercial Property Insurance Coverage.

2. Occupancy - Your Commercial Property Insurance Coverage depends on your industry. A pharmaceutical company will need bigger coverage than a consultancy firm.

3. Construction - If your office building is old and isn’t made of modern materials, you might want to get a bigger coverage.

 

Who is Responsible for Buildings Insurance on a Commercial Property?

 

Your building owner might or might not choose to insure the entire building. Building insurance might cover damages to the property, but if you have leased an office in the building, it will not cover damages to your business. Thus, for business owners who have rented office space, you are responsible for getting a Commercial Property Insurance Coverage for your rented portion of the building.

 

Is Commercial Property Insurance Required?

 

Commercial Property Insurance Coverage is not compulsory by law for business owners to get in Texas. However, it is a powerful tool for business owners to secure their commercial properties - offices, warehouses, manufacturing plants, and more - from any unforeseen damages.

 

SECURE YOUR BUSINESS TODAY!

 

You cannot prevent an accident, but you can secure yourself against it to quickly recover monetarily. Get in touch with Thumann Insurance and learn more about how you can secure your business with a Commercial Property Insurance Coverage and identify high-risk areas. At Thumann Insurance, we offer a comprehensive view of your insurance requirements and help you secure your business at cost-effective rates. Get a quote today!

 

Sources:

 

[1] Commercial Property Insurance Cost. How Much. Retrieved from - https://howmuch.net/costs/commercial-property-insurance

 

[2] What Is commercial property insurance?. Nation Wide. Retrieved from - https://www.nationwide.com/lc/resources/small-business/articles/what-is-commercial-property-insurance

 

[3] Commercial Property Insurance on Your Leased Building: Who Needs the Coverage?. JSW Insurance. Retrieved from - https://www.jswinsurance.com/blog/commercial-property-insurance-on-your-leased-building-who-needs-the-coverage.aspx

 

[4] Commercial Property Insurance. Investopedia. Retrieved from - https://www.investopedia.com/terms/c/commercial-property-insurance.asp