What is the difference between replacement cost and actual cash value?

Replacement cost pays to replace damaged property with new property of like kind. Actual cash value subtracts depreciation, which can leave a large gap for older roofs, buildings, and equipment.

Does commercial property cover flood?

Standard commercial property forms commonly exclude flood. Flood coverage is usually bought separately.

A condition that can reduce a claim payment if the property is insured for less than a set percentage of its value. Keeping limits current, or adding an agreed value endorsement where available, avoids the penalty.

Coverage guide

Commercial property insurance

Commercial property insurance covers physical damage to the building you own and the business property inside it, such as equipment, furniture, and inventory. How the policy values property, how deductibles work for wind and hail, and whether business income is included often matter as much as the limit itself.

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What commercial property commonly covers

Who usually carries it

Businesses that own their building
Tenants with equipment, furniture, inventory, or improvements to leased space
Businesses whose lender or landlord requires proof of coverage

Commonly covered

The building, if you own it
Business personal property: equipment, furniture, inventory, and supplies
Improvements you made to leased space, where included
Business income and extra expense after a covered loss, when added
Causes of loss listed in the policy form, such as fire, wind, and hail

Commonly excluded or limited

Flood and earthquake, unless added separately
Wear and tear, mold, and gradual deterioration
Equipment breakdown, unless added
Property away from your premises, such as tools on job sites (inland marine)
Separate, often percentage-based, deductibles for wind and hail in some policies

This page is general information about how these policies commonly work. Every policy's own forms, endorsements, and exclusions decide what it covers. For advice about your business, talk with a licensed insurance agent.

Before your renewal or your next contract

What to check on your own policy

Whether property is valued at replacement cost or actual cash value
Building and contents limits compared with current rebuilding and replacement costs
Coinsurance percentage, and whether an agreed value endorsement applies
Wind and hail deductibles, especially percentage deductibles
Business income limits and the waiting period
Locations listed on the policy, including any you added or closed

Not sure what your policy says?

Upload your declarations page. The free AI coverage check lists your coverages, limits, and deductibles in plain language and flags items to discuss with a licensed agent.

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Industries that often ask about commercial property

Commercial property questions

Know what you're covered for before you need it.

Check your coverage free in about a minute, then talk with a licensed agent about anything you want to change or quote.