Commercial Property Insurance
Your buildings, equipment and inventory are often the largest assets your business owns. Commercial property insurance pays to repair or replace them after fire, storms, theft and other covered losses. Stonebrook places property for single buildings, portfolios and multi-location operators nationwide.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What does commercial property insurance cover?
Buildings you own, business personal property such as equipment and inventory, and improvements you make to space you lease.
What is coinsurance?
A requirement to insure to a percentage of value, often 80% to 100%, or have your claim payment reduced.
Should I insure for replacement cost?
Usually, yes. Replacement cost pays to rebuild or replace without deducting for depreciation.
Does commercial property cover flood?
Usually not. Flood and earthquake typically need separate coverage.
What commercial property covers.
Buildings
Structures you own, including permanently installed fixtures and building equipment.
Business personal property
Furniture, equipment, computers, inventory and supplies.
Tenant improvements
Build-outs and upgrades you paid for in leased space.
Equipment breakdown
Mechanical and electrical failure of boilers, HVAC, generators and electrical systems.
Ordinance or law
The extra cost of rebuilding to current codes, and demolition of undamaged portions.
Business income
Lost income and continuing expenses after a covered loss. See business income.
The terms that decide your claim.
| Term | What it means |
|---|---|
| Replacement cost vs. actual cash value | Replacement cost pays to replace new; actual cash value subtracts depreciation |
| Coinsurance | Underinsure, and the claim is reduced proportionally; agreed value can waive it |
| Blanket limit | One limit shared across buildings and locations, instead of a separate limit for each |
| Causes of loss form | “Special” covers all risks not excluded; “basic” and “broad” cover named perils only |
| Deductibles | Flat dollar deductibles, plus percentage deductibles for wind or hail in some regions |
| Protective safeguards | Coverage can depend on maintaining sprinklers and alarms |
Property for real estate and healthcare.
Real estate investors and multi-family owners benefit from blanket limits across a portfolio, loss of rents, ordinance or law for older buildings and equipment breakdown for boilers and HVAC.
Senior living and skilled nursing facilities depend on generators, medical equipment and climate control, and need business income that accounts for relocating residents.
Smaller operations may be able to package property with liability in a business owner’s policy.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop property across standard and surplus lines carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Commercial property questions, answered.
What does commercial property insurance cover?
It covers buildings you own, business personal property like equipment, furniture and inventory, and tenant improvements, against fire, wind, theft and other covered causes of loss. Business income and equipment breakdown can be added.
What is coinsurance on a commercial property policy?
Coinsurance requires you to insure your property to a set percentage of its value, often 80%, 90% or 100%. If you carry less, the insurer reduces your claim payment proportionally. An agreed value endorsement can waive it.
What is the difference between replacement cost and actual cash value?
Replacement cost pays to repair or replace property with new materials of like kind and quality. Actual cash value deducts depreciation, so the payment is lower.
Does commercial property insurance cover flood or earthquake?
Usually not. Flood and earthquake are typically excluded and need separate policies or endorsements.
What is a blanket property limit?
A single limit that applies across multiple buildings or locations, so a large loss at one property can draw on the total, subject to the policy’s terms.
Does property insurance cover equipment that breaks down?
Not under the standard form. Equipment breakdown coverage is added to cover mechanical and electrical failure of systems like boilers, HVAC and generators.
Let’s protect the property your business runs on.
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