Commercial property insurance helps businesses, including farms and ranches, pay to repair or replace property that was damaged by a fire, storm, or other event covered by the policy. It also pays to replace stolen or lost property.

 

 

Sample of property covered:

• Building

• Contents

• Inventory

 

 

There are three types of commercial property policies in Texas. The policies protect against different causes of damage, or "perils."

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• Basic form policies cover common perils like fires and storms.

 

• Broad form policies cover common perils, as well as things like water damage; structural collapse; sprinkler leakage; and damage caused by ice, sleet, or weight of snow.

 

• Special form policies cover all types of perils except those the policy specifically excludes. Typical exclusions include damages from flood, earth movement, war, terrorism, nuclear disaster, wear and tear, and insects and vermin.

 

Read your policy carefully. You may need to buy additional coverages or separate policies -- such as flood, windstorm, or crime coverage policies -- to fully protect your business.

 

You can buy a single policy to cover a business with more than one location unless the locations have different functions and risk profiles. For instance, you might have an administrative office at one location and a factory at another. If your business has operations at multiple locations, ask your agent if you need separate policies.