Commercial property insurance is vital for businesses that own or lease physical space, or that have valuable physical assets. It helps you recover from events that could otherwise cripple operations: fire, theft, vandalism, hurricane wind, and equipment failure.
Commercial property is the foundation of most business insurance programs. It pays to repair or replace the physical things your business depends on, and (when paired with business income coverage) it keeps revenue flowing while you recover. In Florida, the hurricane and wind treatment of any commercial property policy is what separates a good carrier from a problem one.
It's important to ensure your coverage limits are adequate to replace your property at today's construction costs. We see Florida businesses underinsured by 20% to 40% after construction inflation since 2020. Consider replacement cost vs. actual cash value, specific perils common in Florida (especially hurricane wind and storm surge), specialty equipment, and whether your policy includes Ordinance or Law for code-upgrade costs. We review limits at every renewal.
Florida commercial property is one of the toughest markets in the country. Many large national carriers won't write coastal counties, and rates between admitted and surplus lines markets can vary by 100% or more. We work with admitted carriers, surplus lines, and the Florida Citizens commercial program when needed. Our job is to find a carrier that actually wants your risk at a defensible price.
Replacement Cost pays the full amount needed to rebuild or replace at today's prices, with no deduction for depreciation. Actual Cash Value (ACV) pays replacement cost MINUS depreciation, which can be much less on older roofs and equipment. For most Florida businesses, Replacement Cost is worth the small premium difference, especially on roofs.
Florida commercial property policies almost universally apply a separate, higher deductible for hurricane or named storm losses. It's expressed as a percentage of the building or contents limit (typically 2%, 3%, 5%, or 10%) rather than a flat dollar amount. On a $1M building with a 5% hurricane deductible, that's $50,000 out of pocket before the policy responds.
No. Like residential, commercial property policies in Florida exclude damage from flood and rising water. You need a separate commercial flood policy through the NFIP or the private market. Given Tampa Bay's storm surge and inland flooding risk, we strongly recommend pairing the two.
Business income (sometimes called business interruption) replaces the net income you would have earned, plus continuing expenses like rent and payroll, while a covered loss shuts you down. The limit should reflect what you'd lose over the realistic recovery period (often 6 to 18 months after a major loss). Most policies also include a waiting period (typically 72 hours).
Almost certainly yes. After a major loss, current Florida Building Code may require structural, electrical, plumbing, or windload upgrades the original building didn't have. Without Ordinance or Law coverage, your insurer pays only for like-for-like replacement of what was there. The code-upgrade gap is often a six-figure expense. We add this endorsement by default on most older buildings.
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