Providing Building Property Insurance Coverage
Property Insurance is what protects your property and you from financial ruin. Property Insurance is different from Liability or Casualty insurance, which covers other persons and property from damage caused by you.
To insure your property, we first have to identify what property you want to insure. Insurance breaks down into identifiable components.
To insure your property, we first have to identify what property you want to insure. Insurance breaks down into identifiable components.
The basics are:
Building |
Contents |
Income |
|
The building is a structure and the attached components that make up the building. An easy way to distinguish between a building and its contents is to consider what would fall out of the building if you picked it up and turned it upside down. The parts that fall out are considered contents, and the structure that remains is your building.
For investment buildings insured on a Commercial Property policy, any property used to service the building is covered under Building Insurance coverage. This is not true when you insure a smaller property on a Personal Lines policy. |
All of the items that are not attached and can be picked up and removed from the building are covered under Personal Property Insurance.
Most landlords have some Business Personal Property at the property that is unattached and used to service the building. If you insure your investment property on a Personal Lines policy, you need to include some contents to cover appliances. |
Business Income covers the income you would have received if the claim did not happen. When you have a fire, and the tenant is not able to occupy the space they usually do, the lease makes it clear that they do not have to pay rent.
This loss of income can be substantial when multiple units are damaged, and the repairs take months to complete. Business Income insurance reimburses you the amount you were scheduled to receive during the repairs. |
Get better deals using this Building Insurance Due Diligence Checklist
Building Property Insurance Coverage
Commercial Property Insurance protects your business against the physical loss or loss of use of your company’s property. This coverage represents the broad category of coverage’s available against loss of property, damage or other liabilities not directly covered by Building Liability Insurance Coverage.
The following are widely used Building Property Insurance Coverage to cover a properties exposure:
The following are widely used Building Property Insurance Coverage to cover a properties exposure:
|
Building
Loss of Rents Business Interruption Business Income Actual Loss Sustained Contents Mechanical Breakdown Equipment Breakdown |
Ordinance or Law
Backup of Sewer or Drains Newly Acquired Buildings Property Off Premises Valuable Papers Flood Earth Movement Earthquake Landslide |
Tenants Property
Building Glass Tenant Improvements and Betterment Signs Fences Paved Surfaces Outdoor Property Earthquake Sprinkler Leakage Deductible |
|
Crime
Employment Dishonesty Money & Securities Property Managers Social Engineering |
Electronic Data Processing
Equipment Data |
Perils / Cause of Loss
Basic Broad Special |
Coverage Options
|
Replacement Cost
Actual Cash Value Coinsurance Guaranteed Replacement Cost Agreed Value |
Inflation Guard
Extended Replacement Cost Blanket Pollution Mold |
Loss Conditions
Vacancy |
Perils
What do you want to insure your property from happening? Fire, smoke, wind? Insurance identifies the different types of damage that can happen to your property as perils. The Perils you insure against can be limited to a specific list; named perils; basic and broad, or limited by what is not covered, special form.
For landlords, special form is most desirable; however, if your building is in rough shape, the perils available to you will be reduced.
Insurance companies try to distinguish themselves from others by providing a list of additional perils or a cluster, which can be beneficial.
For landlords, special form is most desirable; however, if your building is in rough shape, the perils available to you will be reduced.
Insurance companies try to distinguish themselves from others by providing a list of additional perils or a cluster, which can be beneficial.
Exclusions
Remember, commercial insurance policies are customized to meet your specific building insurance needs. Every policy contains coverage and exclusions. Many of the exclusions are written because there is a separate line of coverage available to meet the need. However, if you don’t have it, you will not be covered. This is another reason to work with an experienced agent.
A few specific exclusions to remember and find coverage elsewhere include:
A few specific exclusions to remember and find coverage elsewhere include:
- Ordinance & Law
- Water
- Earth Movement
- Artificially Generated Electrical Disturbances
Additional Coverage Options
A real source of frustration can be available coverage, but not included, because you did not ask for it. The property insurance coverage options you can request include:
- Agreed Value
- Inflation Guard
- Replacement Cost
- Guaranteed Replacement Cost
- Extended Replacement Cost
- Blanket
Reach out to me when you're considering Building Property Insurance Coverage. I will provide you with comparative Building Property Insurance quotes from multiple insurance carriers so you can get the best possible combination of coverage and cost.
Please contact me, J. Darrin Gross, an independent property insurance agent at 503-504-7619 or fill out a request for a quote here.
As a Building Insurance Broker I help property owners manage risk through Building Insurance.
Please contact me, J. Darrin Gross, an independent property insurance agent at 503-504-7619 or fill out a request for a quote here.
As a Building Insurance Broker I help property owners manage risk through Building Insurance.
True knowledge of a market comes from years of focused experience.