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What You Need to Know About Commercial Real Estate Insurance 

Real estate agents and commercial landlord discussing property

If you own commercial property, then you need to consider commercial real estate insurance. This type of insurance policy can prove invaluable if disaster strikes – here’s how it works. 

What Is Commercial Real Estate Insurance? 

Commercial real estate insurance is a type of business insurance policy. It offers landlords protection against a range of hazards, including: 

  • Storm damage 
  • Vandalism 
  • Theft 
  • Fires  
  • Legal expenses 
  • Accidental damage 

Commercial insurance covers the costs associated with repairing or replacing damaged property. Every policy varies, but typically, commercial real estate insurance protects: 

  • Your on-site inventory 
  • The premises  
  • Building fixtures 
  • Commercial equipment 

It’s often purchased alongside commercial liability insurance, or a similar policy. That’s because it’s not enough coverage on its own. Commercial insurance may not cover: 

  • Flood damage  
  • Reputation damage 
  • Accidental damage  

It all depends on your specific policy.  

What type of coverage can you get? You can choose from either a named perils policy, which covers you against specific harms. Or you can have an open perils policy, which covers you for a wider range of hazards. Exclusions are listed specifically in the policy.  

Is Insurance for Commercial Real Estate Legally Required? 

No. Unlike some other types of insurance, such as auto insurance, there’s no rule that you need property insurance. However, it’s highly recommended as a supplementary policy.  

Think of it this way: the more risks you can protect your business against, the better. You’d protect your business against, for example, flood damage if you’re in a high-risk flood zone. And so, you should protect your assets against commercial risks.  

Benefits of Commercial Real Estate Property Insurance 

There are many reasons why you should have commercial real estate insurance. There are two key advantages, though. 

  • Commercial insurance can help your business survive financially while you repair or replace damage.  
  • You’ll have peace of mind, knowing that your properties are financially protected. 

What Happens if You Don’t Have Commercial Real Estate Insurance? 

The consequences can be significant. 

  • If there’s an incident, you will be required to pay for any damage repairs yourself.  
  • You won’t be reimbursed for any interruption to your business operations. This could damage your cash flow, and even result in breaching contracts with your clients or suppliers.  
  • You’ll need to replace the property at your own expense. 

It always makes sense to carry commercial real estate insurance – even if you only have one or two properties.  

Where to Find Commercial Real Estate Insurance Coverage 

Most major insurance providers offer commercial real estate coverage. You may also find specialized insurers who offer packages tailored to a niche market.  

The simplest and most cost-effective way to find insurance, though, is through Adion Financial. We can quickly source policies from a wide range of carriers for you to choose from. And we only need a few details to get started.  

Get the coverage you need – begin your quote now

Commercial Real Estate Insurance Rates  

How much commercial real estate insurance costs depends on various factors. There’s no set “rate” for coverage. The factors insurers will consider include: 

  • Your past claims history  
  • How many properties you wish to insure 
  • The property location  
  • Level of coverage required 
  • Type of tenants using your property e.g. you may pay more to insure more dangerous occupations 
  • Age and condition of the property  
  • Level of property security 

No two insurance quotes are exactly the same. That’s why you should always shop around before purchasing a policy.  

Do you need commercial real estate insurance? Trust Adion Financial to help you find the right product! Contact us now to start a quote or learn more about commercial insurance.  

Would you like us to review your policies?

Are you ready to save time, aggravation, and money? The team at Adion Financial is here and ready to make the process as painless as possible. We look forward to meeting you!

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