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How Much Does Commercial Property Insurance Cost in Houston, Texas?

There are numerous risks that commercial properties might encounter, which could cost business owners money. Among the most frequent threats are natural catastrophes.

Business owners can safeguard themselves against these and other hazards by getting commercial property insurance, ensuring their financial security in the event of damage or loss.

Define Commercial Property Insurance

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Commercial property insurance is one of the many types of insurance. It protects business owners against potential financial losses resulting from damage to their physical property and assets. This includes the building and its contents, such as equipment, furniture, and inventory.

What is the importance of property insurance?

Commercial property insurance is a crucial investment for organizations as it offers financial security against conceivable losses brought on by harm to tangible assets and property.

These factors serve as examples of why commercial property insurance is significant:

  1. Protects against financial loss: Commercial property insurance provides coverage for the cost of repairing or replacing damaged or destroyed property, which can be substantial. Without insurance, businesses may be forced to bear the full cost of such losses, which can have a significant impact on their financial stability.

  2. Supports business operations: Commercial property insurance can support business operations by providing coverage for losses resulting from interruptions or closures due to damage or loss. This helps businesses get back on their feet quickly and minimize the impact of such events on their bottom line.

  3. Protects against liability claims: Commercial property insurance can also provide liability coverage, which protects against claims made by others for accidents or injuries that occur on the insured property. This helps businesses avoid costly legal fees and settlements.

  4. Meets contractual obligations: Some commercial lease agreements require tenants to have commercial property insurance. Failing to have insurance can result in penalties and legal issues.

  5. Peace of mind: Commercial property insurance provides peace of mind, knowing that in the event of damage or loss, the insurance will cover the costs of repairs or replacement.

Who needs commercial property insurance?

Modern Office Buildings

Any company or group that owns or rents commercial real estate and wants to safeguard its assets and business operations from potential damages should think about getting commercial property insurance.

Here’s a list:

  1. Retail businesses

  2. Office buildings

  3. Industrial properties

  4. Multi-unit residential buildings

  5. Non-profit organizations

What does commercial property insurance cover?

Agent man presentation and consulting commercial insurance detail to customer and waiting for his reply to finish.

Commercial property insurance covers a wide range of potential losses resulting from damage to a business's physical property and assets. There are three main types of commercial property insurance policies: basic form, broad form, and special form.

1. Basic Form Policy

A basic form policy covers only a limited number of named perils, such as fire, lightning, and explosion. This type of policy is typically the least expensive but also provides the least coverage.

2. Broad Form Policy

A broad form policy covers a wider range of perils than a basic form policy, including named perils as well as additional perils such as theft and windstorms. This type of policy provides more comprehensive coverage and is more expensive than a basic form policy.

3. Special Form Policy

A special form policy is the most comprehensive type of commercial property insurance, providing all-risk coverage for both named and unnamed perils. This type of policy provides the broadest coverage and is typically the most expensive.

What does commercial property insurance NOT cover?

Certain sorts of losses and risks are often not covered by commercial property insurance plans.

Typical exclusions include:


Losses brought on by acts of war, civil disturbance, and military action are frequently not covered by commercial property insurance plans. This is due to the fact that war and its accompanying occurrences can result in extensive harm and are seen as significant, unpredictable losses that are challenging to cover.

Certain types of fire

Such as those that started intentionally or as a result of criminal activity, may not be covered by commercial property insurance plans. This exclusion is present because willful losses are not frequently covered by insurance plans.


Most commercial property insurance policies don't provide coverage for earthquake-related losses. This is due to the fact that earthquakes are significant, erratic phenomena that can result in extensive damage and are challenging to insure. To cover their damages from earthquakes, business owners might need to buy separate earthquake insurance.

Certain Smoke

Commercial property insurance policies may exclude coverage for losses resulting from certain types of smoke, such as smoke from agricultural or industrial operations. This exclusion is included because smoke from these types of operations can cause widespread damage and is considered to be difficult to insure.

Acts of God (Weather)

Some insurance providers include coverage for wind and hail in a basic policy. Ice dams, snow, dust, and sand damage are not frequently covered. It might be insured if those things cause damage to the outside of the building and, subsequently, the inside as well. A typical commercial property insurance policy never covers floods.

What factors impact property insurance costs?

By understanding these factors, you can help keep your insurance costs under control and ensure that you have the coverage you need to protect your business against potential losses.


empty ground front of buildings

The location of a property can impact its insurance cost, with properties located in areas with higher crime rates or natural disaster risks typically costing more to insure.

Safety and Security

If your place of business is in a high-crime neighborhood, and if your company uses hazardous substances or engages in risky activities like mining, then it needs to be considered.

Fire protection

It could be less expensive to insure a property if a fire department and fire hydrants were nearby. Fire alarms and sprinkler systems also save insurance rates.

Type of property

Costs of insurance may vary depending on the type of covered property, such as a warehouse, retail store, or office building. Older buildings or those with distinctive architectural elements may cost more to insure than other types of properties.

Age of property

The age of the property being insured can also impact its insurance cost. Older properties may be more expensive to insure due to the potential for building code violations and the need for more extensive coverage.

Property valuation method

Actual cash value coverage is more expensive than replacement value coverage. The former pays for the price of a brand-new item, whereas the latter pays for the item's depreciated value.

Types of hazards covered

A policy with open risks will cost more than one with named perils. All losses are covered by open perils insurance, barring those that the policy clearly states are not covered. The policy's listed losses are the only ones that are named perils insurance covers.

What are the different types of Commercial Property Insurance?

personal protection financial concept

Business owners should know and acquire the exact commercial property insurance coverage that would protect their business against potential losses.

1. Building Coverage

This type of insurance covers the physical structure of a building, including walls, roof, and other permanent fixtures. This coverage can help protect against losses due to fire, windstorms, hail, and other perils.

2. Business Personal Property Coverage

This type of insurance covers the personal property of a business, such as equipment, furniture, inventory, and other items. This coverage can help protect against losses due to theft, fire, windstorm, and other perils.

3. Liability Coverage

This type of insurance provides protection against claims made by third parties for bodily injury or property damage that occur on the insured property. Liability coverage can help protect against claims resulting from accidents, such as slip-and-fall incidents, as well as against claims for advertising injury, such as defamation or copyright infringement.

4. Loss of Income Coverage

This type of insurance provides coverage for a business's lost income in the event that its operations are disrupted due to a covered loss. Loss of income coverage can help a business recover lost profits and continue to pay its bills, even if it is unable to operate due to damage to its building or personal property.

What is the average cost of commercial property insurance in Houston, Texas?

In the end, the cost of commercial property insurance will be determined by the demands of the company. Every company is unique, and there are several factors that must be taken into account.

While a large organization might pay $500,000, a small business owner might only pay $500 a year. The typical firm pays between $1,000 and $3,000 for coverage of $1 million. Most earn less than $1,000 annually, an average of $742.

How to get an accurate quote for Commercial Property Insurance?

To get an accurate quote for commercial property insurance, you'll need to get some work done. Here are steps you may take to get the best cost for you:

1. Compare prices

It pays to compare prices since they differ from business to business. Obtain a minimum of three price quotes. Direct phone calls to businesses are an option, as is online information. Comparisons of the costs charged by top insurers may also be available through your state's insurance department.

2. Provide accurate information to the insurance company

You'll need to provide information about the type of business you run, the size of your business, and the type of property you own. This information will help the insurance company assess your risks and determine the coverage you need.

3. Ask for discounts

Make sure to inquire about discounts. Some companies may offer discounts, but always make sure that it's not too good to be true.

Protecting Your Houston Commercial Property

It's important to work with a trusted insurance company to assess your needs and find the right coverage at a price you can afford.

In Texas, TexPro Insurance is the go-to company for all insurance needs. We are based in Houston, Texas, and have a license to operate throughout the entire state. Get in touch with us today for a free quote.

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