Commercial property insurance helps businesses pay to repair or replace buildings, associated structures, and contents damaged or lost because of fire, storms, theft, and other events outlined in the policy. Different types of commercial property policies protect against different risks, or “perils.” Some policies will cover only those risks specifically named in the policy. Other policies will cover all risks, unless the policy specifically excludes them. Be sure to read your policy carefully. You may need to buy additional coverage’s or specialized policies, such as flood, windstorm, or crime coverage, to fully protect your business. Commercial property policies in Texas generally fall into one of three categories:

BASIC FORM POLICIES

Basic form policies typically cover common risks or perils, such as damage from fire, lightning, windstorm, vehicles, aircraft, or civil commotion.

BROAD FORM POLICIES

Broad form policies typically provide basic form coverage plus coverage for additional perils, such as water damage, structural collapse, sprinkler leakage, and losses caused by ice, sleet, or weight of snow.

SPECIAL FORM POLICIES

Special form policies cover against all types of losses except those the policy specifically excludes. Common special form exclusions include losses from flood, earth movement, war, terrorism, nuclear disaster, wear and tear, and insects and vermin.