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Commercial Property Insurance, Texas

Commercial Property Insurance, Texas

Protect Your Business with Commercial Property Insurance

As an independent agency with over 28 years of experience, the Thumann Agency specializes in commercial property insurance, comparing quotes from multiple carriers to provide you with the best coverage at the most competitive rates. Our expert agents are here to answer your questions, tailor policies to your business needs, and guide you through liability, property coverage, and available discounts—ensuring your business is fully protected.

 

Why Choose the Thumann Agency for Commercial Property Insurance?

Independent Agency Advantage
Unlike captive agents, we represent multiple insurance carriers. This means we can shop around and compare rates to find you the most competitive coverage, tailored to your business needs.

Expert Guidance
With over 28 years of experience, our team of seasoned agents ensures that you fully understand your policy and get coverage that fits your industry.

Personalized Service
We believe in building relationships. We’ll work closely with you to assess your risks and recommend the best policies to protect your business.

 

What is Commercial Property Insurance?

Commercial property insurance protects a company’s buildings and on-site physical assets from damage caused by specific events like theft or fire. This coverage helps reduce the financial burden after accidents, weather-related incidents, or other hazards.

It protects your business assets, including:

  • Buildings
  • Inventory
  • Equipment
  • Furnishings

 

Which Businesses Need Commercial Property Insurance?

If your business owns valuable physical assets, having commercial property insurance is essential. Here are some examples of businesses that should strongly consider this coverage:

  • Businesses Operating in Owned Buildings: If you own the building where your business operates, commercial property insurance is vital to protect against damages like fire, theft, or natural disasters.

 

  • Businesses Leasing or Renting Space: Even if you lease your workspace, commercial property insurance is critical. Landlords may require tenants to carry insurance for their portion of the property, and you may be responsible for damages caused by incidents like fires or storms.

 

  • Home-Based Businesses: Homeowners insurance often provides limited coverage. If you run a business from home and use expensive equipment, commercial property insurance can help cover risks that a standard homeowners policy doesn’t.

 

Types of Commercial Property Insurance Policies

We offer various commercial property insurance policies to meet your business’s specific needs:

  • Standard Commercial Property Insurance: Basic coverage for physical assets such as buildings, equipment, and inventory against risks like fire, theft, and vandalism.

 

  • Specialized Commercial Property Insurance: Tailored for businesses with unique needs, such as construction or healthcare, this policy provides customized coverage for specific risks and assets.

 

  • Business Owners Policy (BOP): A bundled solution combining commercial property insurance, general liability, and business interruption insurance—ideal for small to medium-sized businesses.

 

  • Commercial Package Policy: Offers the flexibility to customize coverage, including commercial property, liability, and business interruption, tailored to your business needs.

 

Key Factors to Consider in Commercial Property Insurance

When choosing a commercial property insurance policy, it’s essential to understand the following:

  • Policy Limits: The maximum amount the insurer will pay for a covered loss.
  • Deductible: The amount you pay out-of-pocket before the insurer covers the rest. Higher deductibles can reduce premiums but increase out-of-pocket costs.
  • Coverage Territory: Ensure that your policy covers all locations where your business operates.
  • Policy Period: Typically lasts one year. Renew on time to avoid coverage gaps.
  • Premium: Your insurance premium varies based on factors like building location, construction type, and business type.

 

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How Much Does Commercial Property Insurance Cost in Texas?

The cost of insuring a commercial building in Texas varies based on several factors, including location, building size, and the type of business operating inside. On average, small businesses in Texas pay around $1,140 per year for commercial property insurance, or approximately $95 per month.

However, costs can range widely:

  • $500 per year for smaller, lower-risk businesses
  • Up to $5,000 per year for businesses with higher risks or specialized needs

Factors affecting cost include:

  • Location: Buildings in high-risk areas, such as those prone to natural disasters (e.g., hurricanes or floods), have higher premiums.
  • Building Characteristics: Older buildings or those with outdated systems often cost more to insure.
  • Business Type: Manufacturing plants may have higher insurance costs than office buildings.

 

Common Claims and Risks for Texas Businesses

Having the right commercial property insurance coverage can make all the difference when disaster strikes. The most common and expensive claims for small businesses include:

  • Fire Damage: Fire claims are among the costliest, with the average fire claim costing $35,000 for small businesses in Texas.
  • Wind and Hail Damage: Texas leads the nation in wind and hail claims, with costs ranging from $26,000 to $30,000.
  • Water Damage: Water damage from leaks or burst pipes averages $17,000 per claim.
  • Theft and Burglary: Theft claims cost businesses around $8,000 on average, with higher losses in high-crime areas.

 

 

Exclusions and Limitations

It's important to know what your policy doesn't cover. Common exclusions include:

  • Flood and Earthquake Damage: Typically requires separate policies or endorsements.
  • Intentional Acts: Damage caused by arson or vandalism may not be covered.
  • Maintenance-Related Issues: Damage from poor maintenance may not be covered, so regular upkeep is essential.
  • Business Interruption: Not all policies cover lost income during a closure—consider adding this coverage.

 

How to Value Your Business Property

Accurately valuing your property ensures you’re fully covered. The two primary valuation methods are:

  • Actual Cash Value (ACV): Covers the depreciated value of your property.
  • Replacement Cost Value (RCV): Covers the cost to replace or repair your property with new items, offering higher payouts.

 

 

Start Your Commercial Property Insurance Quote Today

Protect your business with the confidence that comes from working with the Thumann Agency. Contact us at (972) 991-9100 

With over 28 years of experience, we are committed to helping Texas businesses thrive, no matter what challenges arise. Let us put our expertise to work for you.

 

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