If it seems as if there are numerous types of insurance and insurance policies, it is because there are. As anyone who has tried to read any type of insurance policy has probably realized (unless insurance is your field), insurance policies are complicated. As a non-business owner, most people still need home/renters insurance, car insurance, health insurance, life insurance, and maybe more. As a business owner you need several different types of policies such as a commercial auto policy, liability, workers comp, commercial property, and others. Let’s begin with commercial property insurance: what does your commercial property policy cover?
What Commercial Property Insurance Covers
The basic commercial property policy covers damage to the building, its contents (machinery, equipment, tools) and fixtures, and protects against perils such as fires and storms. Other types of commercial property insurance can cover more. You can carry commercial property insurance on buildings you own, rent, or lease. However, if you rent or lease a building, the belongings that you own inside the building are not usually covered by the property owner’s policy. In such cases, you may need to buy tenant coverage to protect your tools, equipment, merchandise, machinery, furniture, and other belongings.
Types of Policies
The state of Texas offers three different types of commercial property policies. Each type of policy guards against different things, of course, (didn’t we tell you insurance is complicated?). The three policies are:
Basic: Basic property policies cover common happenings such as storms and fires.
Broad: Broad form policies cover common perils such as fires and storms as well as other things like:
- Structural collapse
- Water damage
- Sprinkler leakage
- Ice damage
- Sleet damage
- Damage from the weight of snow
Special: Special form policies usually cover everything unless it is specifically excluded in the policy. Normally, typical exclusions can include damages due to:
- Earth quakes
- Simple wear and tear
- Insects and vermin
- Nuclear disaster
If you need help figuring out what policies are right for your business, call the Jeff Van Matre Insurance Agency, we will be glad to help!