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Cost of Commercial Property Insurance in Texas

How much you pay for a commercial property insurance policy in Texas depends on your business type. For instance, a low risk, small business will usually pay an average of $1,000 to $3,000 annually; meanwhile, high risk, small businesses may pay up to $5,000 annually. Also, how much a business pays for a commercial property insurance policy depends on the issuing insurance provider and the value of the business assets. Other factors like the size of the business building and building construction also determine the cost of commercial property insurance in Texas. Consult with a licensed insurance agent in Texas to get up-to-date information about Commercial Property Insurance in Texas.

How Much Should I Pay for Commercial Property Insurance in Texas?

The amount you pay for commercial property insurance in Texas is influenced by several factors that are specific to your business. An insurance provider will consider factors like construction type, special features like fire-retardant materials and upgraded HVAC systems, and occupancy status. Also, factors like location (is it in a crime or riot-prone area? or is it an area prone to natural disasters?), protection by an updated security system, and age influences how much you pay for commercial property insurance.

Whether you choose the replacement value or an actual cash value determines how much you should pay for commercial property insurance. Policies that use the replacement value are usually more expensive compared to actual cash value. This is because the former pays out the total cost of repairs or replacement while the latter only pays the covered losses minus any depreciation. Also, when a business owner purchases commercial property insurance as a bundle with other business insurance coverages, it impacts how much is paid as a premium. In this situation, the business owner will save on costs.

You should consult with a Texas-licensed commercial insurance agent for professional advice on how much you should pay for commercial property insurance based on your business-specific needs.

How to Understand the Cost of Commercial Property Insurance

To understand the cost of commercial property insurance in Texas, three factors must be put into perspective when purchasing a plan. These are:

  • Premium

  • Deductible

  • Coinsurance

Premium: Premium is the cost of your commercial property insurance. It can be paid in full annually, semi-annually, or monthly to keep the policy active. To determine the premium amount, the insurance company considers how much coverage you are willing to buy. The insurer will then collect information about your business to determine your risk level by evaluating the following:

  • The value of your commercial property assets

  • The age of the commercial properties

  • The commercial purpose the property serves

  • The location of the commercial property. Is the business located in a region prone to natural disasters or security disturbances?

  • The type of security devices present on the commercial property

  • The building construction type used for the property. There are three classes and this include:

    • Class One Building Construction: Non-flammable material

    • Class Two Building Construction: Construction materials that are made of wood.

    • Class Three Building Construction: The construction material other than class one and class two construction materials.

  • Actual cash value vs. Replacement Value: For replacement value coverage, the insurance provider will cover the cost of replacing the damaged items with new ones; this means a high premium for the insured. Meanwhile, for actual cash value, the insurance carrier will pay incurred costs after the depreciation deduction. This means the insurance policy's premium cost is comparatively low.

Deductible: Deductible is the amount the business pays as the insured for a covered event before your insurance plan pays a claim. It keeps the insurance premium low where the policyholder chooses to pay a higher deductible. If the deductible is lower, the policyholder pays a higher premium.

Coinsurance: A majority of commercial property insurance policies in Texas contain a coinsurance clause. Coinsurance is the percentage of costs paid by an insured after meeting their deductible obligation. The coinsurance clause requires the covered business to be insured up to a specified percentage of its total value, usually 80, 90, or 100 percent. Insurers typically include the clause to encourage the insured business to carry a limit of the insurance equal to the valuation of the covered items. Alternatively, the insured can carry a limit of a specified percentage of the property's value. However, where the premium paid does not meet the threshold, the insured will not receive full payment in the event of a loss. This clause in commercial property insurance will not come into play until a loss occurs. The formula used by insurers is usually based on the property's replacement value at the time of the loss.

When a property owner gets an insurance policy for less than the amount required to cover their risk, they become a coinsurer. They must share the loss with the insurer according to the coinsurance formula. The coinsurance formula is:

  • (Actual Amount of Insurance / Required Amount of Insurance) X Amount of Loss = Amount of Claim

The insurance provider has to determine whether you will absorb any coinsurance penalty. For example, your building is valued at $1,000,000 and the coinsurance clause in your commercial property insurance policy is 80%. Then, you insure the building for $800,000 as a way of fulfilling the coinsurance clause. If a fire loss causes $200,000 worth of damage, and you file a claim, the insurance company will determine the claim payout as follows:

  • Building Value - $1,000, 000

    Coinsurance Requirement - 80%

    Required Amount of Insurance - $800,000

    Actual Amount of Insurance - $800,000

    Amount of Loss - $200,000

  • Payout = ($800,000 / $800,000) X $200,000 = $200,000

The illustration meets the coinsurance requirement; this means you will not be a coinsurer, and the insurer will have to pay the claim without any penalty. Since this figure can only be determined in the event of a covered event, you may be required to pay the penalty if the amount is less than the coinsurance percentage. That is, if you insured the building for $500,000 as a way of fulfilling your coinsurance clause, and the fire causes a $200,000 loss, the insurance company will calculate the claim payout as:

  • Building Value - $1,000, 000

    Coinsurance Requirement - 80%

    Required Amount of Insurance - $800,000

    Actual Amount of Insurance - $500,000

    Amount of Loss - $200,000

  • Payout = ($500,000 / $800,000) X $200,000 = $125,000

In this instance, you will have to pay a $75,000 coinsurance penalty since you retained one-third of the risk rather than transfer it all to the insurer. Coinsurance in commercial property insurance can be tricky and make you payout of pocket if you fail to transfer all the risk to your insurance company.

When purchasing a commercial property insurance policy in Texas, make sure to compare quotes from multiple insurance providers. This will help compare each plan's premium, deductible, and coinsurance clauses. That way, you can get a fair quote suitable for your business-specific insurance needs. Consult with a Texas-licensed insurance agent to assist you with obtaining quotes in line with your budget.

What is the Average Cost of Commercial Property Insurance in Texas?

The cost of commercial property insurance in Texas depends on the size, nature, and business assets. However, on average, commercial property insurance rates for a business is between $1,000 and $3,000 per million dollars of coverage per year. Meanwhile, smaller businesses pay about $500 to $800 annually. Also, the amount of deductible the insured decides to take on, alongside other loss variables, determines what they pay for commercial property insurance.

The cost of commercial property varies drastically based on the business-specific needs and the business's budget to cover their insurance needs. If the business uses premium financing to pay for insurance on a monthly basis (instead of annually), that usually adds an additional 5-10% (on average) to the annual cost. It is advisable to consult with a state-licensed insurance professional who can help you figure out what type of commercial property insurance plan is suitable for you.

How Much is Typical Commercial Property Insurance?

The premium is the portion of a policy you pay when you buy it. It's different from the other costs included in a policy, such as the deductible, which is the portion you payout of pocket after filing a claim. Typically, the insured pays the premium monthly or annually to the insurance company. Sometimes, insurance companies deem some commercial business highly risky and may require payment be made annually as opposed to monthly. For companies who do not have the lump sum, they can look at paying their premium through a premium financing company. The high cost of commercial insurance policies can add a lot of stress to a company that doesn't have enough cash flow to pay its bills. This is why business owners may need to consider premium financing. It allows them to get the insurance coverage they need without the high up-front costs associated with it.

Unlike other types of loans, insurance premium financing is a type of loan typically done through a 3rd-party premium finance company. The premium finance company handles the premium payment between your business and the insurance company. The financing company pays the annual premium in full to the insurer on behalf of the business, allowing the business to break up the annual total owed into smaller and more manageable monthly payments, in return for interest. The average premium financing in Texas may cost the business an additional 5 to 10 percent per year.

When evaluating the cost of commercial property insurance in Texas, you have to think in two ways:

  • Annual cost without a claim (best case scenario)

  • Annual cost with a claim

Annual cost without a claim is the premium that the commercial property insurer charges the business to provide the coverage outlined in the contract. That is the final amount, after applying all the possible discounts. This is also the lowest possible price a business can pay for it, if it can afford to make a lump-sum payment. Quite frequently the business may not have enough cash-flow to sustain a large annual payment, and it uses Premium Finance to spread the costs over the course of the year. The upfront payment is usually much less but there is the additional cost of a finance charge.

Annual cost with a claim is the annual cost without the claim plus whatever the business must pay in deductibles, in case of a covered loss event. This is where it is important to understand which deductibles may be higher and which ones can be lowered. Whichever risks are less likely to occur may have higher deductibles, while higher risks should have lower and more affordable deductibles. Consider every deductible from the standpoint of: can the business pay that much out of pocket in case if the coverage is needed.

How Much is Commercial Property Insurance Premium?

The cost of commercial property insurance premiums differ based on:

  • location,

  • construction,

  • age of the property,

  • use of property, and

  • values of the business assets.

Insurance companies usually employ a method known as Total Insurable Interest (TIV) to determine the cost of insurance premiums. TIV assures the insurance provider that the premium will be accurate to cover every property under the commercial property insurance policy.

Under commercial property insurance, Total Insurable Interest refers to the sum of the total value of the covered assets, including equipment, fixtures, furniture, business income values, and other property of interest to the business. Insurance providers calculate TIV by adding the total value of the commercial properties, like equipment, inventory, and tools. If the business has more than one office location, and the business owner intends to insure all the property; the insurance provider will add all the relevant assets. Once combined, the insurer adds it up on a completed business income worksheet to enable them to estimate the annual business income for purposes of selecting a business income limit of insurance. The estimated percentage for the projected 12 months will be based on how long it will take the insurance company to replace or repair damaged properties and for the business to resume operations even after a complete loss. Likewise, the TIV calculation may include non-physical assets depending on the policy where it covers the business income and extra cost the business may incur in the event of a loss.

The insurance company uses the value of the business properties and the selected limits of coverage to determine the premium cost. When the premium is determined, the business decides on the amount of deductible it wants to pay. The amount of chosen deductible determines how much the insured business ends up for premium. The higher the deductible, the lower the premium. The lower the deductible, the higher the premium - but more protection from out-of-pocket expenses in case of a claim.

For example, a business is given a quote for insurance for $16,000 at the agreed upon coverages and deductibles. If the business is able to pay the full $16,000 as a lump-sum, it is covered at the best possible cost.

Total premium: $16,000 = total out-of-pocket cost for the business

If the business is unable to write a check for the full $16,000, it must finance the premium. The financier pays off the policy to the insurer and the business makes payments to pay it back. Financing commercial insurance premium in Texas usually requires an:

  • Initial deposit (downpayment) as a guarantee of the commitment to repay the debt, and

  • Interest charge, normally in the amount of 5% - 10% annually, in addition to the premium costs.

You may be able to lower the interest rate by paying more as the down payment.

Here is an example of how much a commercial insurance premium can be if the above explained example is financed at 5% or 10% interest rate, with a $2,000 down payment.

5% Interest Example:

Total premium: $16,000

Down payment: $2,000

Remaining amount to be financed: $14,000

Annual Percentage Rate (APR): 5% = $700

Total of Payments (amount paid after making all scheduled payments): $14,700

10 monthly payments of: $1,470 ($1,470 X 10 = $14,700)

10% Interest Example:

Total premium: $16,000

Down payment: $2,000

Remaining amount to be financed: $14,000

Annual Percentage Rate (APR): 10% = $1,400

Total of Payments (amount paid after making all scheduled payments): $15,400

10 monthly payments of: $1,540 ($1,540 X 10 = $15,400)

While premium financing is useful and frequently unavoidable for many Texas businesses, it is best to never default on these installment payments, otherwise there is usually a late charge of 5% on the defaulted installment after a 10 days grace period.

How to Understand the Cost of Commercial Property Insurance?

Having an accurate TIV (Total Insurable Interest) is important because it means you will have incomplete coverage where it is too low and may not have enough coverage to replace or repair damaged properties. Two common methods for calculating the value of a property under commercial property insurance are:

  • Replacement cost value (RCV): Insurers use this method to calculate the value of the covered loss as the total price to replace or repair any covered loss. The valuation of the business property will include how much it would cost to rebuild the building in the event of total damage. Once determined, the amount will be set as the value of the building. For instance, if the building of a large commercial business is capped at a $2,000,000 liability limit per claim and other valuable assets are valued at $50,000. The insured will be awarded a replacement cost value of $2,050,000. If the premium is $30,000 and the deductible is $5,000, it means the commercial insurance policy will have a higher premium. Still, it means that the insured will receive the replacement cost valuation in the event of a loss. In the event of a loss, after the insured has paid their deductible, in this case, $5,000, the insurance company will payout to the insured the replacement cost up to the limit of the liability.

  • Actual cash value (ACV): Using this method, an insurer will subtract depreciation from the replacement cost. In the event of a covered loss, the insurer will normally use the assets' age to determine the actual amount less the depreciation value. Whatever is determined is what the insurance company will pay out to the insured as a claim. For instance, if the furniture and fixtures were installed two years ago and have a life expectancy of 5 years and would cost $2,000 to replace. Over two years, the value may have dropped by at least 20%, which means in the event of a covered loss, the actual cash value will be $1,600. If the insured has a deductible of $500, the insurer will be paying an actual cash value minus the deductible, resulting in the payment of $1,100. Commercial property insurance that uses actual cash value to determine asset value tends to cost less than policies using the replacement cost valuation method.

​​For more accurate information regarding how an insurance company determines commercial property insurance premiums, consult with a state-licensed and experienced commercial insurance agent.

How Much Does a Commercial Property Insurance Cost?

Commercial property insurance costs depend on your insurance needs. The larger the value of the business property the business wants to cover, the more it would pay for a commercial property insurance plan. Typically, commercial property insurance policies pay to rebuild or repair damages after a covered loss. Knowing how much your commercial property insurance will cost you depends on whether the policy uses the replacement cost coverage or actual cash value.

Replacement cost value (RCV) - This covers the cost of repairing or replacing damaged property at current market rates without any depreciation deduction. This option costs more than cash-value coverage because it covers all costs when a rebuild or replacement is required. It is usually the recommended option when purchasing commercial property insurance because it will likely reinstate a business closely to its previous position before a loss. So the value given after the total insurable interest will be paid back by the insurance provider. For example, if it costs $50,000 to replace the damaged business assets, a replacement cost coverage will pay the same amount without deducting depreciation:

Cost to replace - $50,000

Minus deductible - $5,000

Policy would pay - $45,000

Actual cash value (ACV) - This is based on the market value with depreciation deduction. It is the least expensive option to purchase since depreciation is considered, and the claim payout is usually lower than replacement cost coverage. To determine depreciation, a common method used by insurance providers is to consider the expected lifetime of the insured items, then subtract a percentage of the depreciation value of the items for each year after its purchase. For instance, an office multifunctional device bought for $5,000 four years ago is expected to last ten years. The estimated straight-line depreciation could be:

(5,000 / 10) X 4 = $2,000 (depreciation to be deducted)

As such, the amount the insurance provider will pay as the actual cash value will be

Cost of insuring - $5,000

Depreciation - $2,000

Actual cash value - $3,000

Minus deductible - $500

Policy would pay - $2,500

As illustrated, the insurance coverage for your business assets will typically decrease over the years if you choose the actual cash value option. The cost option you choose for your commercial property insurance depends on your budget after a proper asset valuation has been done. You should consult with a state-licensed insurance agent if you need more information regarding the cost of commercial property insurance.

How Much is Commercial Property Insurance Per Month?

Commercial property insurance monthly cost depends on the type of business whose property is insured. While it may cost a small business $60 per month, a medium-sized business may pay about $200-$1,500/month. Commercial property insurance is usually paid annually (at the lowest possible cost), so if monthly payments were selected, that means that you must account for an additional 5-10% in premium finance charges.

How Much Does a Commercial Property Insurance Policy Cost?

There is no fixed cost on commercial property insurance. Nonetheless, how much this policy will cost is influenced by several variables, including building usage, building construction, safety measures, property value, and neighborhood. In addition to these, deductibles and coinsurance may influence the cost of a commercial property insurance policy.

Before purchasing a commercial property insurance policy, it is best to get quotes from at least three insurance providers. This enables you to determine the costs and the one that will cover all your insurance needs while staying within your budget. Consult with a knowledgeable commercial insurance agent licensed in Texas to learn more about your options.

Does Commercial Property Insurance Have High Deductibles?

Commercial property insurance policies have a deductible, which is the amount an insured pays before the insurer will pay for a claim. Commercial property insurance gives you the liberty to pay a high premium and low deductible or low premium for a high deductible. Typically, you can choose two common types of deductibles for your commercial property insurance policy. These are:

  • Flat Deductible

  • Percentage Deductible

Flat deductibles are the most commonly used in commercial property insurance. Flat deductible is a specified dollar amount that applies to each covered loss. It is usually deducted from the claim payment, while the insurance provider will pay whatever is left. For instance, you have a $2,000 deductible and a $15,000 limit on your commercial property insurance. In the event of a loss, the insurance company will remove the $2,000 from what you are entitled to get before paying the claim. If your commercial property insurance policy is subject to coinsurance, the insurance provider determines if you have met the coinsurance clause in your policy. If it is inadequate, your covered loss will be reduced subject to the coinsurance penalty. The insurer will pay the difference between the adjusted loss amount and the $2,000 deductible.

A flat deductible applies to each covered loss, so if you file a claim up to two times in a calendar year, the deductible will apply separately to each claim. For example, if you file a claim for theft, the deductible will be removed from the claim payout, and when you file another claim for fire some months after, the deductible will also be deducted from the claim payout.

Percentage Deductible is applied to perils that cause massive destruction like earthquakes. The deductible can be a percentage of the value of the damaged properties. For instance, an earthquake limit is capped at $300,000, and the deductible is 10% of the building limit. However, if the damage done to the building is worth $200,000, your deductible will be 10% of $300,000, leaving you with a deductible of $30,000. Meanwhile the insurer will pay you $170,000 ($200,000 - $30,000 = $170,000).

Does the Amount of Chosen Deductible Matter for the Cost of Commercial Property Insurance?

Yes, the lower a commercial property insurance plan’s deductible is, the higher the premium. The higher the plan’s deductible is, the lower the premium cost.

Why is Commercial Property Insurance so Expensive in Texas?

The type of cost option you chose under your commercial property insurance plan determines if it will be expensive or not. If you choose a replacement cost coverage, you will get an expensive commercial property insurance plan. This is because the insurance company will pay you the exact value of the damaged properties, as it were at the time of determining the total insurable value after a covered loss. For instance, if you have this coverage and you incur a loss of $400,000, your insurance provider will pay you this amount less your deductible.

However, if you settle for the actual cash value coverage option, you can expect your commercial property insurance plan to be cheaper. This is because the claim payment is lower due to the depreciation deduction. Notwithstanding, it is advisable to choose the replacement cost coverage to avoid paying out of pocket to cover whatever is left after the insurer pays the actual cash value of your properties. You should consult with a Texas-licensed insurance agent to help you shop around for multiple quotes to get you a moderate commercial property insurance rate that will suit your insurance needs.

Also, if you finance your commercial property insurance premium through a premium financing company, you can expect your premium to be higher. Premium financing is a type of loan that requires you to pay back the loan with interest. Although it's possible to get a reasonable interest rate, financing insurance premiums may not be the best idea in the long run. This is because it increases the total cost of the premium by an additional 5 - 10 percent.

Why is my Commercial Property Insurance so High?

Your commercial property insurance is probably high because you pay a lower deductible. Generally, how much you spend on commercial property insurance depends on building construction, the use of the property, safety measures, and the property value. Also, the types of coverage options you choose may raise the cost of your policy. If you choose the replacement cost coverage, your policy cost will be high, while it will be lower if you select the actual cash value coverage.

Speaking to licensed insurance agents in Texas to advise you on your options regarding commercial property insurance prices and plan categories is advisable. Also, the insurance agent can advise on why your commercial property insurance is high.

What Raises and Lowers your Commercial Property Insurance?

The factors that may raise or lower the cost of your commercial property insurance premium include:

  • Age - An old building is susceptible to various age-related flaws, which reduce the capacity to withstand certain disasters like fire, water damage, and natural disasters. This may imply a higher premium because an insurer will consider such a building as a high-risk structure. Old plumbing and electrical systems can easily cause fire, and for these reasons, the premium may be more significant than those with a new building.

  • Location - If the building is located in an area with poor security or prone to natural disasters, the insurer will deem such property risky and may charge you a high premium to cover potential losses.

  • Security improvements - Improving the security of your building not only lowers the premium it may also generate discounts depending on the insurer. This means installing video surveillance, burglar alarms, and tamper-proof looks are ways to lower your premium.

  • Building safety - Improving building safety by installing devices like smoke detectors, fire alarms, and a central station for reporting can lower your premium and generate discounts.

  • Deductibles - Raising your deductible means a lower premium rate. However, ensure you can cover the deductible sum after the claim payment before opting to pay a high deductible.

  • Premium Finance - By choosing to split the annual cost of commercial insurance into multiple payments, the business expense on insurance usually goes up by 5-10%. Premium finance in commercial insurance is done through a 3rd party finance company, which pays the annual premium for you, and then you make payments to the financier, with agreed upon interest.

Does Commercial Property Insurance Go Up after a Claim?

Yes. In Texas, the cost of your commercial property insurance premium will go up after filing a claim. Unlike an insured with zero claims, your insurer will no longer consider you a low-risk client. Notwithstanding your claims going up, make sure you continue to pay your new premium rate as and when due to avoid a lapse.

How Much Will a Claim Increase Commercial Property Insurance?

In Texas, when an insured files a claim under their commercial property insurance plan, the claim is logged into a database known as CLUE – the Comprehensive Loss and Underwriting Exchange. The CLUE collects and reports up to seven years of commercial property claims. It provides insurance risk scores that inform the pricing decision for the insurance provider. The insurer uses the information logged into these systems to determine how your insurance rates will increase. In addition to this, some insurance companies also look at your payment history.

Which Commercial Property Plan is Cheapest in Texas?

The cheapest commercial property insurance plan is the basic form of policy. This plan covers common perils such as fire, windstorms, hail, lightning, explosions, smoke, and vandalism. A basic form policy may be a good option if you do not have a lot of valuable business assets and do not have enough money to spend on other forms of commercial property insurance plans. Also, if your business day to day running will probably not be affected in the event of a peril, a basic form policy will be suitable.

Does the Cost of Commercial Property Insurance Go Down Over Time?

If you have no claim or have only filed a few, your commercial property insurance premium rate may go down. Also, if you refurbish your building to include new building safety and security, it may lower your premium rate.

How Much Commercial Property Insurance Do I Need?

Commercial property insurance should be purchased based on your insurance needs; this is why your insurer will allow you to tailor your policy to your specific needs. Your budget for the insurance policy also plays a key role in determining how much of the policy you need.

Speak to a Texas-licensed insurance agent to help you shop around for multiple commercial property insurance quotes. The agent can advise you on the plan most suitable for your needs and budget constraints.

How Much Commercial Property Coverage Do I Need?

The amount of commercial property insurance coverage you need is determined by your coverage needs and budget. Usually, after the total insurable value of your business assets is determined, you will be able to compare the property valuation to your budget. This way, you will decide on how much coverage you need. Also, you will be able to tailor your insurance needs around your financial budget while providing much-needed protection to your business's valuable assets.

Consult with a knowledgeable commercial insurance agent in Texas, to help you determine how much coverage you need and guide you in making the best selection possible. The agent can also help you shop around for multiple quotes from different insurers.

How to Save on Commercial Property Insurance?

In Texas, you can save on your commercial property insurance by shopping around for more quotes for the possibility of getting cheaper plans than the one offered by your current insurance provider. However, shopping around does not mean you should default on premium payment. Otherwise, you will lose protection on your commercial property. If you find a cheaper policy, you can cancel your existing policy according to the insurance contract before commencing with the new one. You should also speak to a state-licensed insurance agent for advice on how you can save on your commercial property insurance policy.

Can you Negotiate the Price of Commercial Property Insurance?

No, you can not negotiate the price of your commercial property insurance. When insurance companies determine a policy rate, it is based on state regulation, and an insurance company cannot change the rates without state review. However, if the rate given you does not correspond with the quotes, you can file complaints against such insurance companies with the Texas Department of Insurance (TDI).

What is the Best Way to Save on Commercial Property Insurance in Texas?

In Texas, you can save on commercial property insurance by taking the following steps:

  • Shop around for multiple quotes to get fair estimates of different rates and the one that will suit your insurance needs and budget

  • Insurance carriers want to insure responsible businesses, so you may want to invest more in safety and risk management review

  • Invest in up-to-date security systems, fire sprinkler systems, and worker safety programs

  • Always review your commercial property insurance policy before renewing. You should also contact your agent to ask questions about changes in your business, adjustments to your business model, or even rate changes where relevant.

  • Increase your deductible to lower your premium (but make sure that you can afford it, in case you need to file the claim).

  • Ask your agent or insurer for discounts that can help you save on your premium

What Can I Do if I Can’t Afford Commercial Property Insurance?

Commercial property insurance in Texas is not required by law. If you cannot purchase commercial property insurance, you will not be violating any law. Nonetheless, purchasing a commercial property insurance policy is recommended to protect your business's valuable assets against an unexpected loss, or if the business is mandated to purchase coverage by the lending institution that finances the business property. The best option is to shop around for multiple insurance quotes to find something that you can afford. Speak to a Texas-licensed commercial property insurance agent to find out what you can do to get commercial property insurance coverage for your properties.

How Do I Get Commercial Property Insurance if I Have no Money?

Shopping around and comparing quotes is the only option for you. Unfortunately, no state agencies provide subsidized commercial property insurance plans to Texas residents. Instead, if you do not have money, you may be left without coverage. Notwithstanding, speak to a state-licensed commercial insurance agent to help you shop around for affordable policies and discounts.

How Much Do you Save by Paying Commercial Property Insurance Upfront?

Paying commercial property insurance policy premium upfront is typically the best way to save money on the policy. Most commercial insurers offer the best price for paying premium in full upfront, as it saves the company the administrative fees of having to process payments every month. If the business uses premium finance, to spread out the payment over time, there will always be an additional cost associated with it.

What Discounts are Available for Commercial Property Insurance?

Apart from shopping around for favorable rates when looking to purchase commercial property insurance in Texas, you may also explore the option of getting the discounts afforded by some insurers. You may get such discounts by:

  • Bundling your insurance policies with one insurance carrier

  • Enhancing your commercial property with certain safety devices like burglar alarms, sprinklers, and a high-quality roof

  • Not filing a claim

  • Paying your premium upfront

Speak to a licensed and experienced commercial insurance agent with access to multiple insurers, to help you shop around and look for insurance carriers that offer discounts for commercial property insurance. License agents are aware of the local market trends and can sort the best plan options to suit your business’ specific insurance needs.