INSURANCE ADVISORSYour building is only part of the picture. Equipment, furniture, inventory, and improvements to a leased space can all deserve a closer look.
Commercial property coverage can help repair or replace insured property after damage from a covered cause of loss. It may be arranged within a package or as part of a broader commercial program. What is insured, where it is kept, and how its value is calculated are central to the review.
Separate the building from business personal property such as stock, desks, machinery, and computers. Identify tenant improvements and equipment belonging to others. Walk through each location and ask what it would take to replace the property that lets you operate.
Replacement cost and actual cash value can produce different claim results. Ask about depreciation, roof settlement terms, and any conditions for receiving replacement cost payment. Use current rebuilding and replacement estimates, then revisit them when you renovate, add equipment, or carry more stock.
The causes of loss form and endorsements determine which damage is insured. Review wind and hail terms, water damage, theft conditions, and separate deductibles. A percentage deductible can create a different out-of-pocket cost from a flat amount, so ask us to explain the calculation.
Flood, wear and tear, mechanical breakdown, and property in transit may require different treatment. Discuss building code upgrades, tools used away from the premises, and equipment at customer sites. Property damage and lost business income are also separate coverage questions.
These illustrative scenarios show the questions a coverage review can raise. They are not claim decisions or promises of payment.
A storm damages the roof and water affects equipment inside. A useful review considers the cause of loss, roof valuation, deductible, and contents limit separately. Do not assume that one building limit answers every part of the loss.
A covered fire damages a tenant’s furniture and improvements. The lease, insured interests, schedules, and policy wording help establish which items belong in the tenant’s claim and which may be the landlord’s responsibility.
Wave serves Dallas and Fort Worth, surrounding cities and counties, and clients across Texas. We’ll help you review your needs, compare available options, and understand the questions to ask before choosing coverage.
A tenant may need protection for contents, equipment, and improvements even when the landlord insures the building. Review your lease and the property you are responsible for.
Most commercial property policies exclude flood. Ask about a separate flood coverage review and how it would fit with your other policies.
Repairing insured property and replacing lost income are different needs. Review business income and extra expense coverage, including its triggers and time provisions.
Further reading: Texas Department of Insurance: commercial property guide ↗