Key points
- Property coverage protects your building, inventory, and business personal property at your locations.
- Business income coverage can matter as much as the building for a company that runs from one shop.
- Texas wind, hail, and flood need specific attention — flood is generally excluded from standard property policies.
As plumbing companies grow, many move from a home office to a shop with a warehouse, parts inventory, fabrication space, and an office team. That location becomes critical to the business.
What it generally covers
- Building, if you own it, or tenant improvements if you lease
- Business personal property: office equipment, shelving, fixtures
- Inventory: pipe, fittings, fixtures, water heaters, and parts
- Business income and extra expense: lost income and added costs while you recover from a covered loss
Points to review
Valuation. Replacement cost versus actual cash value, and whether limits reflect current construction and inventory costs. Coinsurance provisions can reduce a claim payment if limits are too low.
Inventory swings. Plumbing inventory can vary seasonally or with large commercial jobs. Ask how the policy handles peak inventory.
Weather. Texas wind and hail deductibles are often a percentage of the insured value rather than a flat dollar amount. Flood is generally excluded and requires separate coverage.
Equipment breakdown. Coverage for mechanical and electrical breakdown of building systems and equipment is often available as an addition.
Coordination with tools coverage. Property at your location and tools and equipment that travel should be arranged so items aren’t left uncovered or insured twice.
Common questions
I lease my shop. Do I still need property insurance?
Usually yes, for your inventory, equipment, and improvements, and because most leases require it. Your lease will also specify liability requirements.
Does property insurance cover inventory in my trucks?
Generally coverage away from your premises is limited. Materials in vehicles and at job sites are usually addressed by inland marine.