Building Coverage
Replacement-cost coverage on the structure you own — including roof, exterior, interior build-out, plumbing, HVAC, and permanently installed fixtures. Sized to actual rebuild cost, not assessed value or market price.
Commercial property insurance built around what your business actually owns
Whether you own the building, lease the space, or operate equipment worth more than the lease itself, commercial property insurance protects the physical assets your business depends on. We build property programs from 25+ A-rated carriers — sized to replacement cost, calibrated to your real exposures, and never padded with coverage you don't need.
Coverage options
Business Personal Property (BPP)
Coverage for furniture, inventory, computers, equipment, and supplies you own or are responsible for at your business location — including stock at fluctuating values via inventory reporting forms.
Business Income & Extra Expense
Replaces lost net income and continuing expenses if a covered loss forces you to suspend operations. Often the difference between recovering from a fire and closing for good.
Equipment Breakdown
Covers sudden mechanical or electrical failure of essential equipment — HVAC, refrigeration, ovens, production machinery, computer systems. Standard property policies exclude these without this endorsement.
Ordinance or Law
Pays the additional cost to rebuild to current building codes after a covered loss. Critical for older buildings — code-required upgrades can add 15-40% to a rebuild cost the standard policy will not pay.
Inland Marine & Property in Transit
Covers tools, equipment, mobile property, and goods in transit that the standard property policy does not — for contractors, installers, and businesses that operate beyond a single fixed location.
Why clients choose Geneva Insurance Group
Replacement Cost Calibration
Most commercial property is dramatically underinsured because owners insure to assessed value or original cost. We work with valuation specialists to size coverage to actual rebuild cost — preventing coinsurance penalties at claim time.
BOP vs CPP Decision
A Business Owners Policy bundles property and general liability cleanly for many businesses, but larger or more complex operations need a Commercial Package Policy. We model both side-by-side so you see the math, not just the marketing.
Lender & Landlord Compliance
Commercial mortgages and triple-net leases come with specific insurance requirements — replacement cost endorsements, mortgagee clauses, additional insured endorsements, waivers of subrogation. We deliver evidence of insurance documents in the format your lender or landlord requires.
Annual Property Reviews
Construction inflation, equipment additions, and tenant build-outs all change your replacement cost. We re-shop and re-size your program every year so you never wake up to a coinsurance penalty on a claim.
Frequently asked questions
What does commercial property insurance cover?
A commercial property policy typically covers four major buckets: the building itself (if you own it), business personal property (furniture, inventory, equipment, supplies), business income (lost revenue if a covered loss shuts you down), and extra expense (additional costs to keep operating from a temporary location). Most policies are written on either a "named perils" form (covers only what is specifically listed) or a "special form" / "all-risk" basis (covers everything except what is specifically excluded). We typically recommend the special form for the broader protection it provides.
How much does commercial property insurance cost?
Premiums depend on the building's replacement cost, construction type, location, occupancy class, protection class (proximity to a fire hydrant and fire station), and the deductible you choose. A typical 5,000 sq ft commercial building might run $1,500-$5,000 annually for property coverage alone. We shop 25+ commercial carriers to find the right balance of price, coverage breadth, and claims service for your specific property.
What is the difference between replacement cost and actual cash value?
Replacement Cost Value (RCV) pays what it costs to rebuild or replace the property at today's prices, with no deduction for depreciation. Actual Cash Value (ACV) pays replacement cost minus depreciation — which can leave you with a fraction of the rebuild cost on an older building or older equipment. We strongly recommend RCV on commercial property; the additional premium is small relative to the protection difference.
Do I need commercial property insurance if I lease my space?
Yes. Your landlord's policy covers the building structure but not your business personal property (furniture, inventory, equipment), your tenant improvements and betterments (any build-out you paid for), or your business income if a covered loss interrupts operations. Most commercial leases also require you to carry property insurance on your business contents and name the landlord as additional insured.
What is a coinsurance penalty?
Most commercial property policies include a coinsurance clause requiring you to insure to a specific percentage of replacement cost (typically 80%, 90%, or 100%). If you under-insure, the carrier reduces your claim payment proportionally — even on a partial loss. For example, if you are insured to only 50% of value but coinsurance requires 80%, you receive 50/80 = 62.5% of your claim. We size coverage correctly to eliminate this risk and offer agreed-value endorsements when available.
What is the difference between a BOP and a Commercial Package Policy?
A Business Owners Policy (BOP) bundles property and general liability into a pre-packaged policy designed for small-to-mid-size businesses. Pricing is competitive and the application is simple. A Commercial Package Policy (CPP) is more flexible — you can mix and match property, liability, crime, inland marine, and other coverages in custom configurations. Larger businesses, businesses with unusual exposures, or businesses growing past BOP eligibility limits typically move to a CPP. We model both and recommend whichever fits your actual operation.
Does commercial property insurance cover flood damage?
No. Commercial property policies exclude flood — you need a separate commercial flood policy through the National Flood Insurance Program (NFIP) or a private flood market. If your commercial property sits in a FEMA-designated Special Flood Hazard Area, your lender will almost certainly require flood coverage as a closing condition. We quote NFIP and private flood markets in parallel to find the best rate for your property.
Related coverage
Business Insurance
Beyond property, your business needs general liability, workers' comp, professional liability, and other commercial coverages — bundled into one program.
SBA Loan Hazard Insurance
Closing on an SBA 7(a) or 504 loan? We bind compliant property + GL coverage in days, with the lender mortgagee clause filed correctly for your closing.
Umbrella Insurance
Once your commercial property and GL coverage are in place, an umbrella adds catastrophic liability protection above your underlying limits.