What is not covered by commercial property insurance?

Exclusions often include floods, earthquakes, wear and tear, and intentional acts. Separate policies or endorsements are needed for excluded perils.

Commercial property insurance does not usually cover floods, earthquakes, employee theft, normal wear and tear, or intentional damage. Additional policies may be required for these risks.

A clothing store purchases a separate flood insurance policy after learning their standard commercial property policy excludes flood damage.

Understand the difference between replacement cost and actual cash value to choose the best option for your business needs.