Who Needs Commercial Property Insurance?
Posted by: Agent Hub
Successful insurance agents are focused on providing their clients with the highest level of service possible while also selling them affordable coverage that meets all of their needs. In order to help valued clients make the best decision about their coverage, insurance agents need to understand the requirements and benefits of each type of policy. Commercial property insurance is one type of coverage that many agents may not sell frequently, but there are opportunities to help clients with commercial property protect their interests.
Who is Required to Purchase Commercial Property Insurance?
Just as with residential property insurance, commercial property insurance is typically required by a lender. It may be used for a residential multi-family property with five or more units, a retail center, an office building, a warehouse, an industrial center and other types of commercial real estate. Most commercial property owners who have a mortgage on their property will be required to meet the lender’s guidelines for coverage, and some may choose to buy additional coverage for their benefit.
What Type of Coverage is Available?
This type of policy may include coverage for loss of rents or loss of income, liability, property damage and more. It generally will not include a business component unless it is owner-occupied, but there may be a separate business policy that could supplement the property insurance coverage.
Who Else May Benefit From Commercial Property Coverage?
Commercial property insurance is available for all commercial real estate types, and every property owner can benefit from it. While it is required by lenders, the coverage can protect all property owners from significant financial loss. Everything from a fire to vandalism can result in challenges for the property owner, and in some cases, a total financial loss. It is important for insurance agents to learn more about the different types of commercial property coverages available and to determine how these coverages benefit real estate owners.