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🏗️ '''Commercial property insurance''' protects businesses against financial loss when their physical assets — buildings, equipment, inventory, furniture, and fixtures — are damaged or destroyed by covered perils such as fire, windstorm, theft, or vandalism. It is one of the core building blocks of a [[Definition:Commercial insurance | commercial insurance]] program and is frequently packaged with [[Definition:Commercial general liability insurance (CGL) | general liability]] in a [[Definition:Business owner's policy (BOP) | business owner's policy]] for smaller accounts. For larger or more complex operations, commercial property is written as a standalone [[Definition:Policy | policy]] with tailored terms, [[Definition:Sublimit | sublimits]], and [[Definition:Deductible | deductibles]] that reflect the insured's unique asset profile and geographic exposures.

🔍 Coverage can be written on a [[Definition:Named perils | named perils]] basis, which covers only the specific events listed in the policy, or on an [[Definition:Open perils | open perils]] (also called "all risk") basis, which covers any cause of loss not expressly excluded. Common exclusions include [[Definition:Flood insurance | flood]], [[Definition:Earthquake insurance | earthquake]], and [[Definition:Wear and tear | wear and tear]], each of which typically requires separate coverage or endorsements. [[Definition:Business interruption insurance | Business interruption]] coverage is often added to a commercial property policy to reimburse lost income and continuing expenses when a covered event forces the business to suspend operations. [[Definition:Underwriter | Underwriters]] assess property values, construction type, occupancy, fire protection systems, and catastrophe exposure when pricing the risk, and they increasingly rely on [[Definition:Catastrophe model | catastrophe models]] and geospatial data to quantify potential losses from natural disasters.

📉 In an era of escalating [[Definition:Natural catastrophe | natural catastrophe]] losses, rising construction costs, and [[Definition:Inflation | inflation]]-driven valuation increases, commercial property insurance has been one of the most volatile segments of the market. Many [[Definition:Insurance carrier | carriers]] have tightened their appetite for [[Definition:Catastrophe-exposed | catastrophe-exposed]] properties, particularly in coastal and wildfire-prone regions, pushing [[Definition:Rate increase | rates]] upward and reducing available [[Definition:Capacity | capacity]]. This environment has elevated the importance of accurate [[Definition:Statement of values (SOV) | statements of values]] and robust [[Definition:Risk management | risk management]] practices, since underinsurance — where declared values fall short of actual replacement costs — can leave businesses critically exposed when a major loss occurs. [[Definition:Insurance broker | Brokers]] who help clients present well-documented, properly valued submissions gain a distinct advantage in securing competitive terms.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Business interruption insurance]]
* [[Definition:Business owner's policy (BOP)]]
* [[Definition:Catastrophe model]]
* [[Definition:Inland marine insurance]]
* [[Definition:Statement of values (SOV)]]
* [[Definition:Commercial insurance]]
{{Div col end}}

Definition:Commercial property insurance - Revision history

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