Commercial Rental Property Insurance: What You Need to Know

If you own a commercial rental property, it’s important to protect your investment with the right insurance coverage. Commercial rental property insurance is designed to cover losses and damages that may occur to your property, as well as liability claims that may arise from tenants or visitors.

What Does Commercial Rental Property Insurance Cover?

Commercial rental property insurance typically covers the following:

It’s important to note that commercial rental property insurance typically does not cover damage caused by floods or earthquakes. For that, you’ll need separate coverage.

Types of Commercial Rental Property Insurance

There are several types of commercial rental property insurance to choose from, depending on your needs:

Basic Form

Basic form insurance covers damage caused by fire, lightning, windstorm, hail, explosion, and other similar events. It typically does not cover damage caused by water, theft, or vandalism.

Broad Form

Broad form insurance covers everything included in basic form insurance, plus coverage for damage caused by falling objects, weight of snow or ice, water damage, and damage caused by theft or vandalism.

Special Form

Special form insurance is the most comprehensive coverage available for commercial rental properties. It covers damage caused by all perils, except for those specifically excluded in the policy.

How Much Does Commercial Rental Property Insurance Cost?

The cost of commercial rental property insurance varies depending on a number of factors, including the location of the property, the value of the property, and the amount of coverage you need. On average, you can expect to pay between $1,000 and $3,000 per year for commercial rental property insurance.

It’s important to shop around and get multiple quotes from different insurance providers to ensure you’re getting the best coverage for the best price.

Frequently Asked Questions

What if I have multiple rental properties?

If you own multiple commercial rental properties, you can typically get a multi-property discount on your insurance coverage. Talk to your insurance provider to see if you’re eligible.

What if my tenant causes damage to the property?

If your tenant causes damage to the property, you may be able to file a claim through their renter’s insurance policy. It’s important to have a clear understanding of your tenant’s insurance coverage before signing a lease agreement.

What if I need to make a claim?

If you need to make a claim on your commercial rental property insurance policy, contact your insurance provider as soon as possible. They will walk you through the claims process and help you get the coverage you need.

What if I need to cancel my policy?

If you need to cancel your commercial rental property insurance policy, contact your insurance provider to find out about any penalties or fees associated with cancellation. It’s important to have a new insurance policy in place before cancelling your current one, to ensure you’re always protected.

What if I need additional coverage?

If you need additional coverage, such as flood or earthquake insurance, talk to your insurance provider about your options. They may be able to provide you with the coverage you need, or refer you to another provider who can.

Conclusion

Commercial rental property insurance is an important investment for any property owner. By understanding what’s covered, the different types of insurance available, and the costs involved, you can make an informed decision about the right coverage for your property. Don’t leave your investment unprotected.