Contract/lease often required

Commercial Property Insurance

Commercial property insurance covers the physical assets your business depends on — the building (if you own it), inventory, furniture, fixtures, and equipment — against covered perils like fire, windstorm, theft, and vandalism. It's especially important for businesses holding significant inventory or expensive equipment on-site, where a single event could otherwise wipe out a large share of working capital. It's frequently bought standalone by businesses that don't need the liability side of a BOP, or by businesses that own their building and need higher property limits than a BOP provides.

Commercial Property: what it costs, what it covers, who needs it

$50–$250/moTypical monthly cost
Replacement-cost value of building and contentsTypical coverage limit
Businesses that own their building, or hold meaningful inventory, equipment, or fixtures at a physical location.Who needs this coverage

Rates vary by state, revenue, and claims history — always compare multiple quotes.

Not legally required, but almost always required by a mortgage lender if you own the building, or by a landlord for tenant improvements.

What's covered

  • Building structure (if owned) against fire, storm, and other named perils
  • Contents: inventory, furniture, fixtures, and equipment
  • Signage and leasehold improvements
  • Debris removal after a covered loss

What's excluded

  • Flood and earthquake (require separate policies)
  • Normal wear and tear or gradual damage
  • Employee theft (needs a crime/fidelity policy)
  • Liability for injuries to others (that's general liability)
An illustration of a 4-pillar software stack blueprint.

Protects the building, inventory, and equipment your business depends on physically staying intact.

What drives the price

  • Total insured value of building and contents
  • Construction type and age of the building
  • Location's exposure to weather, crime, and fire risk
  • Deductible chosen

Real claim example

A storm damages the roof of a small warehouse and water intrusion ruins stored inventory.

Commercial property covers the roof repair and inventory replacement — roughly $50,000 total.

Commercial property covers the roof repair and inventory replacement — roughly $50,000 total.
Payout from a single real claim — well above the monthly premium
This is exactly why businesses don't skip this coverage.

Commercial Property is commonly required for businesses in this situation. At $50–$250/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.

FAQs

Does this cover flood damage?

No — flood is excluded from standard commercial property policies and requires separate flood insurance, often through the NFIP.

What's the difference between replacement cost and actual cash value?

Replacement cost pays to replace an item new; actual cash value factors in depreciation, resulting in a lower payout for older assets.

Do I need this if I rent my space?

Yes, for your contents and equipment — your landlord's policy covers the building structure, not what's inside it.

See all policy types