Florida Commercial Property Insurance

When you need an adviser you can trust

Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.


In 2019, Florida had 4.36 million square feet of industrial property in one city alone. Commercial property insurance is essential no matter what type of property you own. The risks of owning a commercial property far outweigh any reason not to have coverage.

An independent insurance agent can help find a policy that suits your budgetary needs. Since they work with several markets, you'll have options on coverage and premium. Connect with a local expert to get quotes today.

What Does Commercial Property Insurance Cover?

Florida commercial property insurance will cover various items. When you're trying to determine which policy is right for you, consider using an adviser. Take a look at what is covered under a commercial property policy in Florida:

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be for actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much it would cost to replace or repair your building. Coverage can be for actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will be for replacement cost, actual cash value, or depreciated value.  

Your policy can include some additional coverages depending on your carrier offerings. Your insurance can endorse coverage for items like business documents and papers. Another coverage that can be helpful is protection for your customers' property while on your premises. 

Who Needs Commercial Property Insurance?

If you own any commercial property in Florida, protection is necessary. Commercial property coverage doesn't always come in the form you may think. Take a look at this list of who may need commercial property insurance:

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

While business coverage isn't always required in Florida, it is recommended to avoid financial destruction. Insurance can keep you out of bankruptcy when a substantial loss occurs. When a claim happens, you'll be responsible without proper coverage.

Commercial Property Insurance Cost

The cost of your Florida commercial property insurance will be customized to your specifications. Personal data and outside elements will be accounted for when setting costs. Check out the risk factors insurance companies use in Florida:

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

In 2019 alone, Florida had $36,870,506,000 in commercial insurance claims paid. Things like weather and local crime will impact your property insurance costs as well. 

Top 5 weather-related risks in Florida:

  1. Wildfires  and residential fires
  2. Hurricanes and tropical storms
  3. Severe storms and lightning damage
  4. Flooding and water damage
  5. Burglary and other property crimes

How Much Commercial Property Insurance Do I Need?

Your specific property coverages will depend on what you're insuring. You won't know what's precisely necessary until you get a quote. You can get an idea of how it's covered. Take a look at the different types of coverage given to commercial property owners:

  • Replacement cost: This will pay in full for your commercial property's current value at the time of loss. When you have a claim, it will restore or replace your property to a like kind and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This falls between actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Does Commercial General Liability Insurance Cover Property Damage?

Business insurance comes in many forms. General liability coverage is a separate policy from commercial property insurance. There are some instances where you can put the two in one policy, but they will remain different coverages. Take a look at the facts:

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will include general liability, commercial property, and more ancillary coverages together in one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How a Florida Independent Agent Can Help

In Florida, commercial property insurance is necessary to have adequate protection. Whether you own a retail building or business furniture, commercial property insurance can help. To ensure you're getting the right coverage, use a professional. 

An independent insurance agent has access to policy and premium options. Since they work with multiple carriers, you'll get the best deal in town. Connect with a local expert on TrustedChoice in minutes. 

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