Property Insurance Guide
Property Insurance Guide — guidance and information from Ipswich Insurance Brokers, a Steadfast and CBN member broker.
What is commercial property insurance?
Commercial property insurance covers physical damage to or loss of buildings, contents, stock and business assets following insured events. It forms the foundation of most business insurance programs. The key variables are the sum insured, the definition of insured events (particularly flood and storm), and any sub-limits or exclusions that apply.
What this cover may include
Cover availability and terms vary between insurers and depend on individual circumstances. Subject to acceptance, a policy may include:
- Buildings — structure, fixtures and permanent elements at replacement cost
- Contents and stock — business equipment, merchandise and raw materials
- Glass — plate glass windows and shopfronts
- Money — cash on premises and in transit
- Business interruption (as a linked section)
Common exclusions to be aware of
The following are commonly excluded under standard policy wordings. Specific exclusions vary between insurers — always review the Product Disclosure Statement before purchasing.
- Gradual deterioration, wear and tear
- Defective design or faulty workmanship
- Flood (unless specifically included — definitions matter)
- Intentional damage
- Mechanical or electrical breakdown (separate product)
How to arrange commercial property insurance through Ipswich Insurance Brokers
- Submit a quote request or contact us directly to discuss your requirements
- We collect relevant information and approach appropriate markets
- We compare policy terms and conditions across insurers and present options
- We arrange binding and issue documentation once you confirm instructions
As a Steadfast and CBN member broker, Ipswich Insurance Brokers has access to a broad panel of approved insurers. We act on your behalf — not on behalf of any insurer. Our remuneration is disclosed in our Financial Services Guide.
General guidance — not personal advice
The information on this page is general guidance only. It does not constitute personal advice and does not take into account your individual circumstances. Before arranging any insurance, you should consider your specific needs and read the relevant Product Disclosure Statement. Our Disclaimer applies to all content on this site.
Frequently asked questions
What is the difference between market value and replacement cost for property?
Market value is what a buyer would pay for the property. Replacement cost is the actual cost to demolish and rebuild to the same standard at current prices. For insurance, sum insured should reflect replacement cost — market value can significantly understate rebuild cost, particularly for older commercial buildings or properties in areas where construction costs are high.
Is flood covered under commercial property insurance?
Flood cover is available from some insurers but is not universal. For commercial properties in areas with any flood exposure — near waterways, drainage lines or in low-lying areas — understanding exactly what is and is not covered is essential. Definitions of flood, stormwater and water ingress vary. We review this specifically during placement.
What happens if I underinsure my property?
Most commercial property policies include an underinsurance clause — if the sum insured is less than the actual replacement value, any claim settlement may be reduced proportionally. A property insured at 70% of its true rebuild cost may receive only 70% of any valid claim. Maintaining adequate sums insured is one of the most important aspects of property insurance.
What to look for when comparing commercial property insurance policies
When reviewing options, the following points are worth considering. This is general guidance — the right approach depends on your specific situation.
Confirm that the sum insured reflects current replacement cost — not purchase price or market value. Review flood definitions for your property location. Check sub-limits for specific items — glass, money, signs, portable equipment. Confirm that all insured locations are declared. Review the business interruption indemnity period if BI is linked to the property section. For larger or more complex property risks, consider whether an ISR policy is more appropriate.
For more detailed information, see our Commercial Property Insurance page.
About Ipswich Insurance Brokers
Ipswich Insurance Brokers is a Steadfast and CBN member broker operating under an Australian Financial Services Licence. We act on your behalf — not on behalf of any insurer. We compare options across a broad panel of approved insurers, arrange cover, provide documentation and support claims. We are remunerated by commission from the insurer, disclosed in our Financial Services Guide. All information on this page is general guidance only — see our Disclaimer.
Commercial property insurance underpins the business interruption section — BI cover can only respond when an insured physical damage event has occurred and been accepted. Getting the property section right — correct sum insured, correct definitions, correct location declarations — is the foundation of the entire program. See our Business Insurance page for how we approach property and BI placement.