Having real estate is a great way to earn extra money, or it could be your primary source of income, but just like protecting your home, it’s important that you protect your commercial real estate as well. If Mother Nature were to strike your commercial property, would you have the money in your bank to pay for all of the repairs and replacements? Probably not.
That’s where your commercial insurance plan is going to come in. These policies will give your insurance coverage for your properties that will ensure that they are protected from just about anything that life throws at it. Getting the right kind of coverage can be confusing, there are several types of plans and factors that you’ll need to consider when buying insurance.
Types of Commercial Real Estate Insurance and Coverage
There are two main types of real estate insurance that you can purchase, commercial property insurance and general liability insurance. Both of them has different coverage types and advantages that come along with it. Every commercial property owner is different, but more than likely, you’ll need to look at buying both types of insurance policies.
As you can probably guess, commercial property insurance will protect your buildings and equipment that is damaged by certain perils. A standard commercial real insurance policy will protect your property form things like fire, vandalism, and some acts of nature.
General liability insurance will protect you from being sued for any injury or damage while a person is on your properties. Hopefully, you’ll never face a situation where you’re being sued, but it’s important that you have the insurance protection just in case. If you didn’t have the proper coverage, you could find yourself on the hook for hundreds of thousands of dollars in a lawsuit, which can cause you to lose your property.
One common peril that most property owners don’t consider is any vandalism or criminal activity. Hopefully, it never happens, but the statistics can be tough to look at. In 2014, it was reported that arson cost real estate property owners an average of $168,000 per incident. It’s easy to see why the proper insurance coverage can be so vital.
Some of the most common perils that property owners run into are fire, wind damage, water damage, a customer is injured, and theft. Any of these events could drain your bank account and turn your world upside down. If you have those insurance plans in place, you can get your properties repaired and belongings replaced in a fraction of the time at a fraction of the cost. You never know what life is going to throw at you tomorrow, and if you rely on your real estate for income, any hiccups could cost your hundreds of thousands of dollars.
The type of real estate coverage that you need is going to depend on the kind of property that you have. Each property is going to be different, which is going to require different insurance protection. It’s also going to depend on the size of the property. For example, if you’re operating a business out of a home office, then you’ll need to have commercial real estate insurance. One of the most common misconceptions is that business equipment is protected under a homeowner’s insurance policy, which isn’t true. There are thousands and thousands of people every year that suffer a peril, and then realize that their business isn’t going to be covered.
One of the most common types of plans to buy is a business owners policy (also called a BOP). These plans include coverage for both buildings, property, and liability protection. It’s one of the easiest ways to get all of the standard coverage that your properties and business would need, but these plans are designed for smaller to medium sized companies.
If you’re a real estate property owner of a larger organization or property, then you’ll need to find a different type of plan that gives you more coverage. Depending on the company, the should be able to customize a plan to fit your needs. Here at Longevity Brokers, we can connect you with the perfect insurance plan to protect your property and your belongings.
Insurance and Longevity Brokers
At Longevity Brokers, we know that shopping for insurance coverage is not a fun experience. There are tons of jargon and terms that you don’t understand, and there are dozens of different factors that you’ll need to consider. The whole process can be confusing and overwhelming, but that’s why we are here to help.
If you have any questions about commercial real estate insurance plans, please contact one of our agents today. We would be happy to answer those questions and find you a plan that’s going to meet your needs. It’s our mission to provide quality insurance at a reasonable price to the Denver, Colorado area.
Our agents have years of experience working with all types of clients with various kinds of commercial estates. You can call us at (720) 209-4598 or use our contact page, and an agent will contact you as soon as possible.