When shopping for commercial property insurance in Polk County and Southwest Florida, companies will have a range of coverage options and deductibles, which are the basis of premiums. Adjusting the amount of coverage with the deductible allows a business to obtain the property insurance it needs for its business at a price it can afford.
What is a Deductible?
A deductible is simply the portion of a covered loss that you, the policyholder, are responsible for paying. It acts as a form of shared risk between you and the insurance company, where you agree to cover a certain amount of the potential loss in exchange for a lower premium.
Types of Deductibles for Commercial Property Insurance in Florida
Insurers typically offer several types of deductibles for Florida commercial property policies:
Flat Dollar Deductible
This is the most common and straightforward type. It is a fixed dollar amount that you must pay for a covered loss. For instance, a policy might have a standard deductible of $1,000 or $2,500 for fire or theft.
Percentage-Based Deductible
This type is particularly common in Florida for windstorm or hurricane coverage. Unlike a fixed dollar amount, this deductible is a percentage of the total insured value of your property, not the amount of the loss. So, a business with an $800,000 policy and a 3% hurricane deductible will pay the first $24,000 in damages, and the insurer will pay the remainder, regardless of the amount of the claim.
Named Peril Deductibles
Some policies may have separate deductibles for specific, named perils, such as wind or hail. These are often higher than the standard deductible to account for the increased risk in Florida, especially in coastal communities.
Factors to Consider: Deductibles Vs. Premiums
There is a direct trade-off between your deductible and your insurance premium. A higher deductible typically results in a lower premium, as you are assuming more of the financial risk. It can be a cost-effective option for businesses seeking to lower their monthly operating expenses. However, it requires you to have more cash on hand to cover a potential claim.
Conversely, a lower deductible results in a higher premium, but it provides greater financial protection in the event of a substantial loss. It’s common practice to find a balance that fits your business’s risk tolerance and financial capacity.
Can a Business Write Off Insurance?
Yes, in most cases, commercial property insurance premiums are considered a legitimate and necessary business expense. As such, they are typically tax-deductible. However, it is always best to consult with a qualified tax professional to understand the specifics of your situation and ensure compliance with all tax laws.
Commercial Property Coverage in Dade City & Tampa
Commercial Insurance Specialists is a Trusted Choice independent agency, which reflects our commitment to providing exceptional service and a broad range of insurance options for your business. As a Trusted Choice agency, we have the flexibility to explore and compare policies, deductibles, and coverage options from various top-rated insurers, ensuring you receive the best rates for your needs and budget. We serve clients across multiple professions, including paving and asphalt contractors, electricians, and pool and spa contractors in Bradenton, Brandon, Zephyrhills, Plant City, and the surrounding communities in Southwest and Central Florida.
Contact us today for a free, no-obligation commercial property insurance quote!
