Texas Commercial Property Insurance 101
One of the most popular types of business insurance in Texas is commercial property insurance. Texas commercial property insurance offers coverage for buildings, records, equipment, devices, and more. Other examples of this coverage are damages from fire, burglary, vandalism, and wind.
Commercial property insurance in Texas is always a good idea, but this coverage may vary from one insurance company to another. Getting help from a reputable insurance company will help you determine the type of insurance for property and the coverage range that best suits your company.
Also, commercial property insurance in Texas plan can be customized to work for the budget of your firm. Insurance for commercial properties covers and protects your company from a little knock of extreme financial loss. Whether you are renting or owning the building, commercial property insurance will help cover your business’s physical assets.
What Is Texas Commercial Property Insurance?
Commercial property insurance in Texas is a special type of coverage that protects your building or your business leases and your other business personal property.
Typically, commercial property insurance in Texas also covers business assets such as tools, equipment, inventory, and computers.
The policy also covers your business in case you have to stop working and you lose your income.
Types of Texas Commercial Property Insurance
- Building Insurance: If you own a commercial building, you should have sufficient insurance properties to cover replacement costs. You can use a cost estimator, but you should secure an appraisal from a third party to ensure your building’s accurate replacement cost.
- Flood Insurance: Flood insurance is mostly excluded as a covered cause of loss in most commercial policies. Hence, you should purchase a separate policy to make sure that you are covered.
- Business Personal Property Coverage: Business personal property insurance protects the property in a specific area such as furniture, fittings, and inventory. Commercial properties insurance has different coverage for property in specified areas and is limited. But if you have equipment taken off-site to other locations, you should avail of inland marine policy.
- Business Income (Business Interruption) Coverage: This insurance refunds the business for the lost profits for the time the company shuts down. It applies while the area is being fixed due to damage from an incident like a fire. Business income insurance may also reimburse profit loss of business by the time the civil authorities limit client access to the community or company right after a disastrous event happens. A company is required to obtain this policy.
- Electronic Data Processing (EDP) Insurance: Electronic Data Processing (EDP) Insurance is a separate property coverage that protects computer-related equipment. Commercial insurance policy has restricted coverage for computer networks. EDP widens the causes of loss to cover events such as power surges and some virus case attacks.
Do I Need Texas Commercial Property Insurance?
Commercial property insurance in Texas is recommended for everyone who owns one or more commercial buildings or offices.
Also, if you are just renting a commercial office or if your business possesses valuable assets, you might also want to consider purchasing Texas commercial property insurance.
Finally, it’s good to know that many commercial property owners require their tenants to have commercial property insurance as it covers everything inside the rented space. So if you fall under one of these groups and you live in Texas, you should consider having commercial property insurance.
How Much Does Commercial Property Insurance in Texas Cost?
The average cost of commercial property insurance in Texas can go as low as $77 per month. There are several smart ways to save money on your insurance, including:
- Removing Hazards: By improving the safety of your workplace, you are lowering the risk of having claims, which helps you save money on premiums.
- Combine Several Coverages: Typically, if you bundle multiple coverages together, you can get them for a lower price than if you buy them separately.
- Choose the Right Deductible: Policies with higher deductibles have lower premiums. However, remember that if you choose a higher deductible, you will have to pay more if you have a claim.
Replacement Cost vs. Actual Cash Value Coverage
Usually, commercial property policies offer replacement cost coverage, actual cash value coverage, or a combination of these two. It is recommended to make sure your policy provides replacement cost coverage to be fully protected.
Replacement Cost Coverage
Replacement cost coverage covers fees for repairing or replacing your property at current costs. The policy covers rebuilding your property and bringing new items to replace it, even if it costs more than what you paid for in the first place.
Actual Cash Value Coverage
Actual cash value coverage covers replacement costs without depreciation. Depreciation is a decrease in value that results from wear ad tear of age. This policy is not always sufficient when it comes to fully rebuilding a business.
What is Covered Under Commercial Property Insurance?
Commercial property insurance covers your business assets in case of fire, explosions, storms, theft, and vandalism. Unless added to the policy, earthquakes and floods aren’t covered by this insurance.
Is Commercial Insurance Required in Texas?
Commercial Insurance is not required by law in Texas, but it is recommended as it protects business owners against various claims such as bodily injuries and property damage.
Confused about Texas commercial property insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
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