Commercial property insurance in Florida

What commercial property insurance covers

Commercial property insurance covers your building (if owned), tenant improvements, equipment, inventory, and business personal property. In Florida, coverage from hurricane wind and other named perils is available, but flood is excluded and requires a separate policy.

• Building coverage. covers the structure if you own it; includes roof, walls, floors, permanent fixtures, and installed equipment
• Tenant improvements. covers improvements you made to a leased space
• Business personal property. covers equipment, machinery, inventory, furniture, and other business-owned property
• Business interruption. reimburses lost income if a covered peril forces you to close temporarily
• Equipment breakdown. optional coverage for mechanical or electrical failure of business equipment

Florida hurricane and wind coverage

Florida's dominant property peril is hurricane and tropical storm wind. Most carriers apply a separate, higher “wind deductible” to wind losses, typically 2-5% of your building value or a flat dollar amount. On a $500,000 building, a 5% wind deductible means you pay $25,000 out of pocket before coverage kicks in. Wind deductibles are a major expense driver in Florida.

• Wind deductible: typically 2-5% of building value, applies to windstorm losses
• Named storm deductible: may differ from standard wind deductible
• Coastal vs. inland: coastal properties face higher deductibles and limited availability
• Roof age and condition: insurers scrutinize roof age; 30+ year-old roofs are often uninsurable

Florida roof age and condition requirements

Florida insurers are increasingly strict about roof age and condition. Carriers may refuse to insure 25+ year-old roofs, require roof inspections, or impose inspection rider endorsements for older roofs. If your building has an old roof, you may face limited availability or higher premiums. Some carriers require roof certification or repair riders before binding coverage.

Flood coverage and Citizens Property Insurance

Flood is excluded from all property policies in Florida (as in all states) and requires separate flood insurance through the National Flood Insurance Program (NFIP) or private carriers. If you're in or near a flood zone, obtaining flood coverage is critical. Many coastal and flood-prone properties are forced into the insurer of last resort, Citizens Property Insurance, which is more expensive and less stable than private carriers.

Understanding Citizens Property Insurance

Citizens Property Insurance is Florida's “insurer of last resort” for property that cannot find coverage in the private market. Policies are more expensive, coverage is limited, and claims service is slower than private carriers. If your property is uninsurable in the private market, you may be assigned to Citizens. Once the private market stabilizes, you can return to private coverage.

Replacement cost vs. actual cash value

Commercial property can be written on a “replacement cost” (RCV) or “actual cash value” (ACV) basis. Replacement cost pays the full cost to replace damaged property; ACV applies depreciation. Replacement cost is more expensive but protects you more fully. For buildings you own, Maru recommends replacement cost.

How to lower your Florida commercial property premium

• Invest in hurricane mitigation: storm shutters, roof reinforcement, impact-resistant glass
• Maintain your roof and provide annual roof inspections and certification
• Implement loss-prevention measures: fire suppression, alarm systems, security
• Raise your deductible if you can absorb the cost
• Bundle with general liability or business owners policy for multi-line discounts
• Address mold and water damage issues proactively

Business interruption coverage

Business interruption reimburses lost income if a covered peril forces you to close temporarily. This is critical in Florida, where a hurricane or major loss could disrupt operations for weeks or months. Business interruption coverage helps you survive the downtime.

Why buy commercial property through Maru

Maru navigates Florida's complex property insurance market, helping you understand wind deductibles, roof requirements, flood exclusions, and Citizens Property Insurance assignments. We help you find private carriers when possible, manage flood insurance separately, and bundle property with liability coverage for comprehensive protection.

Frequently asked questions

Vadim — Maru Insurance
Licensed independent insurance agent · WA & FL
Written and reviewed by a licensed Maru advisor. Maru Insurance is an independent agency (WA License WAOIC #1365574, FL License #G363233) representing multiple A-rated carriers across Washington and Florida.