Commercial Property Insurance

Coverage for buildings, equipment, and inventory against named or open risk perils.

Overview

Special form policies cover all causes except listed exclusions such as flood, earthquake, and wear, while named peril forms list what is covered. Valuation options mirror personal lines, replacement cost versus actual cash value, with coinsurance clauses, often 80 or 90 percent, penalizing firms that underreport values, and inflation guard riders adjusting limits automatically. Business income and extra expense coverage attaches here. Construction, occupancy, protection classes, and fire suppression drive rates, and roof age has become a flashpoint in wind zones. Flood and quake need separate policies or endorsements, and equipment breakdown coverage, once called boiler and machinery, handles machine failure from pressure and electrical events.