Commercial real estate involves large financial investments and so as its owner, maximum protection for your property must be your priority. Buying the right insurance coverage helps you to avoid disastrous financial setbacks. To help you stay comprehensively protected, we have included the insurance coverages that you must consider having in your commercial real estate insurance.
The Must-Have Coverages in Your Commercial Real Estate Insurance
- Commercial Property Insurance Coverage
The coverage offers protection to your property against damage or loss. It includes the building, equipment, and other assets inside the property against covered perils such as fire, weather-related elements like winds and lightning, theft, and vandalism.
- Business Interruption Insurance
Extensive damage caused to your commercial property may force your tenants to temporarily vacate the property or the building where you operate your business is damaged and is deemed unsafe until repairs are completed. The loss of income you may suffer is covered by this coverage. It covers lost revenue, payroll, and other associated expenses in your interim workplace.
- Commercial General Liability Insurance
The probability of accidents occurring in commercial properties is high as they usually house several types of businesses and involve large-scale interactions among people. To protect your financial interests against third-party liability claims of bodily injury and property damage, you must have commercial general liability coverage. It also can cover litigation costs if you are sued for the mishap.
- Ordinance & Law Insurance
When your property faces large-scale damage and needs to be rebuilt but changes in your area’s building code standards require you to completely demolish the building and reconstruct it according to the updated code, the rebuilding cost may be covered by this coverage.
- Commercial Umbrella Insurance
Commercial real estate properties see high-level footfalls and as the owner, you may be more vulnerable to liability claims from those who suffer loss or damage within the property. Umbrella coverage offers added security and protects you from losses by covering the extra liability costs once your standard liability coverage limit is reached.
- Equipment Breakdown Insurance
Losses caused by the unexpected breakdown of mechanical, electrical, or computer equipment inside the property can be covered by the equipment breakdown coverage. The coverage may compensate for the lost income, repair costs of the equipment, and other losses that you may incur such as loss due to spoiled inventory.
Useful Tips for Commercial Real Estate Owners
- Provide an accurate estimate of your property’s value
Not giving the right value for your building may result in it being underinsured and the compensation that you receive from your insurer may not be enough for you to reconstruct your property in the event of damage.
- Ensure that your policy includes replacement cost insurance
Buying replacement cost coverage ensures that the damaged piece of property will be replaced with an item of the same standard.
- High-risk business tenants lead to higher insurance costs
If you lease your property to businesses that are exposed to high risks, your insurer may charge higher rates or even deny coverage.
Cover Your Real Estate Business with J. Archer Insurance
If you are looking for commercial insurance coverage in Houston, Texas, for your real estate business, contact us today. At J. Archer Insurance Group, we can create a personalized insurance plan for all your specific needs.