Flooding outside a building

What Does Commercial Building Insurance Not Cover?

We know the importance of having homeowners insurance or car insurance, but for commercial property owners, it’s also essential to have commercial building insurance. It’s essential for commercial property owners to know what commercial building insurance covers and doesn’t cover before a tragic event happens.

What Commercial Building Insurance Covers

Basic building insurance will provide the necessities needed to protect the structure in most scenarios, including:

  • Fire;
  • Lightning;
  • Wind;
  • Hail; and,
  • Acts of vandalism.

Having this basic insurance should give property owners some peace of mind during most weather events and if vandals were to target the storefront.

Having this type of insurance will usually cover the following parts of the commercial property:

  • The building itself;
  • Any outdoor signage;
  • Furniture and equipment inside the building;
  • Inventory;
  • Fencing and landscaping; and,
  • Adjacent property if you share part of the structure.

What Doesn’t Commercial Building Insurance Cover

Unfortunately, commercial building insurance doesn’t cover everything. In particular, commercial building insurance will not usually cover floods and earthquakes.


If your property is in an area that is prone to flooding or is near a coast that has the potential to produce hurricanes, then it’s imperative to get flood insurance in addition to commercial building insurance. Having this separate flood insurance will most likely cover the following for the building:

  • Plumbing and electrical systems;
  • Water heaters and furnaces;
  • Items that are permanently installed including carpeting, cabinets, bookshelves, and paneling;
  • Appliances;
  • Windows;
  • Solar equipment; and,
  • Foundation walls, anchorage systems, and staircases.

Additionally, contents inside the building can also be covered under flood insurance, including:

  • Currency;
  • Carpets that aren’t included in the building coverage;
  • Curtains;
  • Window and portable air conditioners; and,
  • Personal property.


Companies considering earthquake insurance will have similar coverage to flood insurance. This includes coverage of lost inventory and, potentially, loss of business income due to the natural disaster. Businesses may have to have an inspection done, and potential upgrades may need to be made before a property owner is eligible for earthquake insurance.

When to Contact a Houston Insurance Litigation Attorney

If you have insurance for your commercial property, and your insurance company is refusing to pay for damages done to your structure, contact Hawash Cicack & Gaston, LLP right away. Our team holds insurance companies accountable and we’re ready to fight for you. Contact our attorneys today at (713) 589-7249.