What is Commercial Property Insurance?
Commercial Property Insurance protects a business owner or a commercial property owner from property losses related to his business or building. This insurance is distinct from commercial liability insurance, which only provides coverage to protect the owner in the event of a liability claim.
What does Commercial Property Insurance cover?
Commercial Property Insurance provides multiple layers of coverage. Insurance may be purchased to cover a commercial building, a business’s inventory, equipment, machinery, and numerous other items used by the business or building.
Coverage Level Options – Florida Commercial Property Insurance is available in multiple coverage tiers, allowing coverage for different types of perils. These forms are classified as Basic form, Broad form, and Special form.
What are some of the additional coverage options?
There are many additional endorsements available to a Florida Commercial Property policy. The following is a list of some of the more common enhancements:
- Loss of Rents / Income – This type of coverage provides protection for the loss of earnings that are sustained during a covered property loss.
- Glass Coverage – Provides coverage for glass loss in commercial buildings, such as the storefront plate glass windows of a retail store.
- Food Spoilage – An endorsement available to food-related establishments which provides coverage to protect against food spoilage.
- Building Ordinance Coverage – Covers the cost of repairs to a damaged commercial structure in order to adhere to existing building codes.
Is Florida Commercial Property Insurance Mandatory? Florida Commercial Property Insurance is not necessarily state-mandated across the board; however, it is required in many cases. Typically, a commercial property lease will require the tenant to obtain a Commercial Property policy. In addition, whenever a property has a mortgage, Commercial Property coverage is mandated as part of the loan agreement.
Are discounts available on Florida Commercial Property Insurance?
Yes. There are many discounts available on Florida Commercial Property Insurance policies. The following are some of the more common discounts:
- Year Built – Newer properties are subject to substantial discounts. Usually, these discounts diminish as the property ages.
- Protective Devices – The installation of sprinklers and alarm systems results in significant premium reductions.
- Construction Type – Buildings constructed with superior materials, as well as those using fire resistant construction materials, are eligible for discounts.
Is Commercial Property Insurance subject to deductibles?
Yes. All Commercial Property policies are subject to deductibles. The amount of the minimum deductible varies by company. The insured can choose to have a higher deductible in order to reduce insurance premiums.