There are different types of Texas Commercial Property Insurances that a business owner can invest in, and they should do a comparison study to get the best rate. One type is a Commercial Basic coverage policy, one is a Broad policy and the most expensive is a Special Form Commercial policy. Business owners need to be aware of what they are buying and what their policy form covers.
The Basic form of insurance will cover the common risks for any commercial building. These common risks include damage from vehicles, vandalism, aircraft, fire and weather related damage from wind. If a risk other than these are not listed then there is no coverage.
The Special Form of insurance will cover many more risks, but it is more expensive to buy. This policy is written to cover all of the issues covered in a basic policy. This special policy will include coverage for water leaks, ice, sleet, weight, snow, water damage and collapse of structures. This policy is an all risk policy and in addition to the risks mentioned, it will cover the broadest range of perils, except for those that are listed as exclusions in the Special Policy. These exclusions are landslides, insect infections, floods, war, nuclear damage or war, earthquake and general wear and tear on the structure that is otherwise considered maintenance repairs. Again, everything is spelled out in your Special Form commercial policy. If it is not listed as covered; the insurance company will not consider the claim.
These exclusions listed in a Special Form can be covered under individual and special policies with their own premiums, such as flood insurance. The business owner should always get at least three different insurance comparison quotes from their local Lufkin independent agent to cover all possible risks for the lowest possible premium.