Building valuation
Replacement cost estimates, inflation, construction type and coinsurance assumptions should be reviewed together.
Insurance for Commercial Property Owners
Owning the building creates a different insurance conversation than occupying it. The program should reflect the structure, tenants, lease obligations, income stream and realistic cost to rebuild.
What to Review
The details that can change the insurance program.
Commercial real estate insurance is highly dependent on the building, occupancy, leases, valuation, protection and income exposure. A useful review goes beyond simply quoting the same limits.
Premises liability
Parking lots, sidewalks, common areas, snow and ice, security and maintenance can drive liability claims.
Rental income
Loss of rents can continue long after the physical repairs if tenants cannot immediately reoccupy.
Lease requirements
Tenant insurance requirements and indemnification provisions are part of the risk-transfer strategy.
Key Exposures
Questions worth answering before renewal.
Occupancy changesA change in tenant or use can materially change underwriting and coverage needs.
Roof & building systemsAge and updates to roof, electrical, plumbing and HVAC can affect eligibility and pricing.
Catastrophe exposureWind, hail, wildfire, earthquake and flood should be evaluated based on location.
Umbrella structureHigher property values and public traffic can justify reviewing excess liability limits.
Related Topics
Go deeper on the exposures that matter.
Related
Commercial Property Insurance
How property valuation and business personal property differ for operating businesses.
RelatedOrdinance or Law
Why code upgrades can create uncovered costs after a major loss.
RelatedBusiness Income & Rental Value
How lost rents and restoration periods affect a real estate claim.
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