The Basics of Property Coverage


Hello, and welcome back to our blog. Today we will explore the ins-and-outs of commercial property insurance, explaining what it is and what is covered. If you’re a business owner, chances are you don’t own the structure in which your business operates. Rather, you likely lease the space from a property management company or landlord. If you do own the structure where you conduct your business, your mortgage lender most likely requires that you have commercial property insurance coverage. Yet whether you rent or own the building, you will want to make sure you are covered. At Forerunner Insurance Group, we care about our clients in Central Florida and want you to be aware of your commercial insurance coverage options. Please continue reading below.

What Is Commercial Property Insurance?

Commercial property insurance covers your business, protecting it from losses related to the structure, contents, and other assets that your company owns. If an emergency situation should occur that damages your building, property, or its contents, commercial property coverage pays for these losses.   

What Types of Commercial Properties Are Covered?

Commercial property insurance covers a wide array of buildings and properties. These properties include, but are not limited to, office buildings, industrial offices, industrial warehouses, manufacture and distribution centers, single-tenant retail buildings, shopping centers, large retail centers, restaurants, investment properties, medical facilities, hotels, motels, vacant buildings and properties, as well as multifamily structures including apartment complexes, high-rise apartment buildings, and condos.

Leasing vs. Owning Your Business Structure

No matter if you rent or own the structure where your business is conducted, you will need commercial property coverage to protect your business investments; however, there are a few differences in insurance policies and coverage for those who lease a structure and those own a building.

 

  • Lease the Property: If you lease the business property, it is the tenant’s responsibility to purchase commercial property insurance to minimize the risks associated with loss. Commercial property insurance for renters does not typically cover the structure itself, as the property manager should have their own coverage for the actual building and surrounding property. Rather, this coverage protects the business owner’s investments, and is often referred to as “business personal property” or “contents coverage,” which includes furnishings, fixtures, appliances, equipment, supplies—basically all of the items your business owns which are not a part of the actual building structure.
  • Own the Property: If you unequivocally own the business structure, your business must purchase comprehensive commercial property insurance, which is also likely required by your mortgage lender. A comprehensive policy protects the entire property, including the structure, parking lot, surrounding property, other buildings or structures on the property, and signage.

 

What Does Commercial Property Insurance Protect Against?

There are any number of disasters that could strike and cause losses to your business. Commercial property insurance protects against such losses caused by fire, wind, natural disasters like storms, floods, and earthquakes (although you’ll want to speak with your insurance broker specifically about coverage options for these disasters), equipment failures, vandalism, theft, and even terrorism. It is best to let your insurance expert know exactly what is included in your business inventory, what you want covered, the concerns you have regarding local and regional weather patterns, or other concerns you have regarding your business location.  

Contact Us Today

If you are looking for the best commercial property insurance coverage, call us, your Top Rated National® insurance professionals, for a free quote today. Our team of insurance specialists will find you first-rate commercial insurance coverage to protect your business investments should an emergency strike. We look forward to providing with optimal commercial insurance policies catered specifically to your unique business.