COMMERCIAL PROPERTY INSURANCE

Coverage for landlords and commercial property holders

property insurance for landlords of commercial and residential unitsProtecting your property can be difficult when you have several different tenants living in your building.  Each unit may present their own unique set of risks, issues, and personality clashes; however, with a solid management team, strict maintenance procedure, and a good property insurance policy, you can avoid running into many liability issues.

Property insurance, or landlord insurance as it’s sometimes referred to, will cover your residential rental apartments or homes, additional structures like garages or sheds, and tools or appliances on the property that you own but your tenants can use like washers and dryers, or maintenance equipment that you use yourself.  Your provider will typically reimburse you for claimable damage to these categories, and also affords you a general liability policy to cover legal or medical costs associated with the use or misuse of your property.

Your property is an investment in your future- protect it with the right policy.

What is covered under a standard commercial property insurance policy?

While every state has different minimum requirements for coverage, and every policy will be different depending on the provider and the person being insured, there are several basic categories that most property insurance policies will protect:

Legal Liability: property insurance coverage for legal claims made against you by a tenant or non-tenant for accidental damage to their property while in a building or land plot you own. While a claim must usually prove that the damage arose from the landlord’s maintenance negligence, even the most observant and proactive landlords cannot anticipate every problem or prevent every attempt to sue. It is best to have a good liability policy in place to keep your assets in good standing.

 

Personal Injury Liability: pays for the medical bills of a tenant, employee, contractor, or non-tenant for an injury or illness that occurs on your property. May also protect you if a tenant sues for invasion of privacy or wrongful eviction. Most mortgage lenders will require you to have liability coverage for legal and medical claims before they will agree to issue you a loan.

 

Fair Rental Value Coverage: If you suffer a natural disaster, fire, or other damages and your property becomes unlivable, this endorsement will reimburse you for the rental income you would have received. Reimbursement is typically meant to carry you through repairs and will only pay out for a certain period of time. This property insurance policy usually does not cover damages from tenants.

 

Dwelling Insurance: also referred to as “guaranteed replacement cost coverage,” dwelling insurance is comparable to a basic home insurance policy and is meant to pay for the repair or replacement of structural damage. Typically, this policy will provide coverage for structural damages, plumbing and gas system repairs, broken appliances, exterior accessories like awnings, and some internal fixtures. It may or may not include coverage to replace or rebuild the property if it is deemed a total loss. Your insurance company can tell you what specific categories this clause will cover.

Please note that these parameters are only examples of what the typical customer could expect to receive for this type of policy.  Actual coverage will depend on the provider and the person being insured.  Please talk to your A.R. Davis agent to find out what type of coverage you qualify for.

What categories can be added to a minimum policy?

Inflation Protection: an endorsement that automatically adjusts your policy limits to reflect inflation.

 

Lock replacement: covers the costs of lock replacement if a unit is broken into or when tenancy changes.

 

Flood insurance: coverage for water damage from leaky or burst pipes and from weather occurrences like heavy rains, snow melt, and natural disasters.  A standard property insurance policy and even an additional dwelling endorsement will not cover most instances of water damage. You can read more about flood insurance protection here.

 

Personal property coverage: pays for damages to carpets, window dressings and drapery, furniture, appliances, and fixtures.  If you rent out a furnished apartment, this endorsement is a great addition to your standard policy.

 

Umbrella liability: while standard insurance will cover many liability situations, landlords with many tenants or landlords with properties in a hazardous location may wish to take out additional legal and medical protection.  An umbrella policy can provide higher limits to pay for claims or lawsuits against your property.  You can read more about umbrella protection here.

Please note that these parameters are only examples of what the typical customer could expect to receive for this type of policy.  Actual coverage will depend on the provider and the person being insured.  Please talk to your A.R. Davis agent to find out what type of coverage you qualify for.

What can I expect to insure with A.R. Davis?

A.R. Davis offers commercial property insurance for landlords of both residential and business-rented units.  The exact parameters of your landlord insurance policy will depend on the individual needs and qualifications of the business or person being covered.  Please speak to your A.R. Davis agent to find out what your policy will entail.

property insurance from A.R. Davis
landlord insurance can save you time, money, and hassle