Business property insurance is a type of Florida business insurance policy that helps all kinds of businesses — from manufacturers to retailers to everything in between — cover property losses that are caused by fires, theft, and natural disasters. 

Most businesses in Florida will need more than just commercial Florida property insurance. But property insurance is a basic building block of a comprehensive business insurance program for businesses of any size. 

What is Business Property Insurance?

Business property insurance is one-half of a basic business insurance portfolio. It provides coverage for many of the most common types of business insurance claims. 

Commercial property insurance in Florida protects buildings and their contents, including computers, office equipment, furniture, artwork, and all of your business personal property — whether it is owned or leased — if it is damaged by fire, smoke, theft, vandalism, weather, or certain other covered perils. 

If you own your building, you need business property insurance to cover damage to the structure and what is inside. And if you lease your space, you need this coverage for your business personal property.

Business property insurance in Florida typically also includes business interruption coverage. If you sustain covered damage that forces you to temporarily close or relocate, business interruption coverage will reimburse you for ongoing expenses (rent, salaries, etc.) and lost income during the closure or relocation period.

What Does Business Property Insurance Cover in Florida?

Business property insurance in Florida offers broad coverage for a wide variety of property claims that can occur. Most basic business property policies will cover the following perils, or causes of loss:

• Burglary and theft: Burglary and theft are two of the most common business property claims. A typical business property policy would cover most burglary or theft claims. 
• Wind and hail damage: Wind and hail damage are typically covered claims on a business property policy. If you live in certain coastal areas, however, wind damage may be excluded from your policy, but you can purchase a wind endorsement. Note that you may be required to have separate hurricane deductibles and other special policy provisions in areas that are prone to hurricanes. Your independent insurance agent can help you get the hurricane coverage you need if you live in one of these areas. 
• Fire: Fire is one of the most costly business property claims, and is covered under a commercial property policy. 
• Water damage and freezing: Water damage can be caused by floods, hurricanes, burst pipes, or a simple leaky toilet. Like your home, your business is susceptible to numerous kinds of water damage, not all of which are covered by your business property policy. There is no standard for water damage coverage; you need to carefully read through your commercial property policy to understand what is covered and what is not. Here are some examples of what is usually covered:
  • Burst pipes: Commercial property insurance will usually cover water damage due to burst pipes. But if your insurance company feels that you were at fault or failed to take precautions to protect your pipes, your claim could be denied. 
  • Slow leaks: Plumbing or HVAC leaks are common and can cause a lot of damage. Damage from leaks that are deemed to be sudden and accidental will be covered by your business property policy. If your insurance company feels that you have been negligent (perhaps you failed to fix an ongoing leak or properly maintain your building systems), your claim can be denied. 
  • Roof leaks: If your roof leaks, and the roof as well as the interior of your building sustain damage due to a covered peril — wind, rain, hail, or fire — the damage will likely be covered by your business property insurance policy. If the leak and subsequent damage are because you did not properly maintain your roof, your claim will likely be denied. If your roof damage is caused by a flood (e.g., storm surge during a hurricane), your business property policy will likely not cover it.  

What Does Business Property Insurance Not Cover in Florida?

Business property coverage in Florida excludes several perils and certain types of property.

Business property insurance typically does not cover:

• Vehicles subject to motor vehicle registration, including autos, aircraft, and trucks
• Money or securities
• Land, water, growing crops, lawns, trees, shrubs, or plants
• Outdoor fences or signs not attached to the building

Most of these can be covered with an additional policy or policy endorsement. 

Business property insurance in Florida also does not cover damage caused by:

• Flood from a hurricane or another weather event: Flood damage is not covered under your commercial property policy. Read more about flood insurance below.
• Sewer backup: Sewer backup is not covered under most business property policies. However, you can add sewer backup coverage with a policy endorsement.
• Ground water seepage: Most insurance companies will not cover damage due to ground water seepage. This is typically considered a maintenance issue.

How to Get Coverage for Flood Damage

Standard business property policies exclude flood damage from coverage. Instead, businesses can purchase commercial flood insurance from the National Flood Insurance Program (NFIP), which was created by the federal government to offer flood insurance to homeowners and businesses. 

You can obtain Florida flood insurance for your buildings and their contents (or contents-only coverage), but there is a 30-day waiting period before your flood insurance policy goes into effect. Flood insurance covers certain elements of your structure as well as certain types of business property. Be sure you understand what is covered and what is not covered by flood insurance. 

Businesses that are located in a high-risk flood area or that have a federally regulated or insured mortgage, are required to purchase flood insurance. 

What is the Benefit of Business Property Insurance?

The benefit of property insurance for Florida businesses is pretty simple. Business property insurance provides financial assistance in the event of a covered loss. The financial support and reimbursement for property losses could mean the difference between a business continuing to operate, and a business that has to declare bankruptcy. 

How Much Does Business Property Insurance Cost in Florida?

The biggest factor in determining how much business property insurance costs in Florida is the value of the asset (the building) that is being insured. Insurance companies will assess the value of the building (or buildings) as well as all of the relevant physical assets, or contents of the building(s). This will help determine how much coverage is needed and what the cost will be. 

Other factors play a role in the cost of business property insurance, as well. The crime, weather, and fire risks in your city are very important. You can expect business property rates to be higher for businesses located in high-crime areas or areas with a significant weather risk. If, for example, your Florida business is located along the coast or in a hurricane prone area, you can expect to pay more for your business property coverage than for similar businesses located away from the coast. 

The construction materials used in your building and the building’s use and occupancy also impact the cost of business property coverage in Florida.

How to Find the Best Business Property Insurance in Florida

Insuring even small businesses can be complex. Your business insurance policies should be tailored to the type of business you have and the risks you face. Florida business property insurance is just one of the types of coverage you need, and it is essential for protecting your assets from some of the most common types of business insurance claims. 

A Florida independent insurance agent can work with you to assess your business risks and find the coverage you need to protect your business from unforeseen events and financial disaster. You may need basic commercial property insurance, as well as numerous endorsements or stand-alone policies to make sure that you are protected.