Commercial property insurance in Washington

What commercial property insurance covers

Commercial property insurance covers your building (if you own it), tenant improvements, equipment, inventory, and business personal property from damage caused by fire, theft, vandalism, wind, hail, and other named perils. The policy pays the cost to repair or replace damaged property.

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

Washington natural hazards and exclusions

Washington's primary property perils are earthquake and wildfire. Earthquake is excluded from standard commercial property policies and must be purchased as a separate endorsement (earthquake coverage). Wildfire and wind damage are covered under named perils. Flood is excluded from all property policies and requires separate flood insurance if you're in a flood zone.

• Earthquake: excluded from standard policies; must add earthquake endorsement for coverage
• Wildfire: covered under standard named perils; check your deductible (per-peril vs. annual aggregate)
• Wind: covered under standard perils
• Flood: excluded; requires separate flood insurance policy
• Freeze and water damage: covered under standard perils

Replacement cost vs. actual cash value

Commercial property policies can be written on a “replacement cost” (RCV) or “actual cash value” (ACV) basis. Replacement cost pays the full cost to replace damaged property, regardless of age. Actual cash value depreciates the item based on age and condition. Replacement cost is more expensive but protects you more fully. For any property you own, Maru recommends replacement cost.

Assessing your property values

Under-insuring your property leaves you exposed to devastating losses. Over-insuring wastes premium. Accurately assess your building value, tenant improvements, equipment, and inventory. Many carriers require an inspection for properties over a certain value. Maru helps you document and value your property correctly.

Choosing deductibles

Typical commercial property deductibles range from $500 to $5,000 or more. Raising your deductible reduces your premium. However, consider what you can absorb out of pocket in a loss. For earthquake and wind, carriers may apply separate, higher deductibles (2-5% of building value).

How to lower your premium

• Implement loss-prevention measures: fire suppression systems, alarm systems, security
• Maintain your property: regular inspections, repairs, and updates
• Raise your deductible if you can absorb the cost
• Bundle with general liability or BOP for multi-line discounts
• Ask your carrier about reductions for safety features: sprinkler systems, fire alarms, deadbolts

Business interruption coverage

Business interruption coverage reimburses lost income if a covered peril forces you to close temporarily. This is critical for businesses without reserves to cover lost revenue during rebuilding. Consider adding it to your property policy, especially if you operate from a single location or depend on inventory turnover.

Why buy commercial property through Maru

Maru helps you assess your property values, choose replacement cost coverage, understand earthquake and flood exclusions, and add appropriate deductibles. We bundle property with liability coverage and manage renewals and updates as your business grows.

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.