Warehouse Insurance Costs in Texas: What Owners Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 14
- 2 min read
Warehouses are the backbone of Texas’s booming logistics and distribution industry. Whether you own a cold storage facility in Dallas or a distribution center in Houston, protecting your property with the right insurance is essential.
So, how much does warehouse insurance cost in Texas, and what should owners expect in terms of coverage?
Average Warehouse Insurance Costs in Texas
Warehouse insurance premiums in Texas typically range from $1,200 to $6,000 annually, depending on the size, location, and risk profile of the property. Monthly premiums often fall between $100 and $500, with higher rates in hurricane-prone or high-crime areas like Houston or coastal cities.
Essential Coverage Types
Protects the physical structure and contents of the warehouse from fire, theft, vandalism, and natural disasters. This includes equipment, inventory, and fixtures.
Covers legal claims for bodily injury or property damage occurring on the premises—such as a delivery driver slipping on a wet floor.
3. Business Interruption Insurance
Reimburses lost income and operating expenses if your warehouse is temporarily shut down due to a covered event like a fire or storm.
4. Warehouse Legal Liability Insurance
Protects against claims if third-party goods stored in your facility are damaged or lost.
5. Flood and Windstorm Coverage
Not included in standard policies. Texas warehouse owners—especially near the Gulf Coast—should consider separate flood and windstorm policies.
Factors That Influence Premiums
Several variables affect warehouse insurance costs in Texas:
Location: Coastal and urban areas face higher premiums due to weather and crime risks.
Building Materials: Fire-resistant materials like concrete or steel reduce premiums.
Security Measures: Installing cameras, alarms, and sprinkler systems can lead to discounts.
Claims History: A clean claims record helps lower premiums.
Type of Goods Stored: Warehouses storing hazardous or high-value items may face higher rates.
Final Thoughts
Warehouse insurance in Texas is not just a regulatory checkbox—it’s a strategic investment in your business’s resilience. With the right coverage, you can recover quickly from unexpected events and avoid costly disruptions.
Wexford Insurance offers tailored commercial property insurance for warehouses across Texas. Our policies include protection against property damage, liability, business interruption, and more. Connect today!
FAQs
1. Is flood insurance included in standard warehouse policies in Texas?
No. Flood coverage must be purchased separately, especially in coastal or flood-prone areas.
2. Can I insure multiple warehouses under one policy?
Yes. Wexford Insurance offers umbrella policies for multi-location warehouse operations.
3. What’s the most important coverage for Texas warehouse owners?
Property insurance and windstorm coverage are critical due to the state’s exposure to hurricanes and severe weather.
