Property Insurance for Commercial & Buy to Let Property (2024)

FAQs

What is a commercial property policy in insurance? ›

Commercial property insurance definition

Commercial property insurance protects your company's physical assets from fire, explosions, burst pipes, storms, theft and vandalism. Earthquakes and floods typically aren't covered by commercial property insurance, unless those perils are added to the policy.

Rental property insurance might cover the damage your property sustains in the event of a break-in, but it typically will not cover any stolen items. You might be able to add coverage for items used to maintain the property—such as a lawn mower or appliances—at an additional cost.

The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.

Common policy conditions are the part of the insurance policy typically relating to cancellation, changes in coverage, audits, inspections, premiums, and assignment of the policy.

Typically, insurance premiums for commercial properties are set by multiplying the value of the building and its contents by a value that correlates to level of risk. Most of the time, properties with high risk have higher property insurance rates, while lower risk properties cost less to insure.

Commercial insurance is divided into two main categories: property insurance and casualty insurance.

The main and most obvious distinction between renters insurance and homeowners insurance is that a homeowners policy safeguards the home's physical structure against covered perils while renters insurance won't protect the home or building occupied by the tenant.

Core coverages of landlord insurance are property damage, rental income lost due to a property's temporary inhabitability, and liability protection.

Deductible. The amount you pay when you have a claim before your insurance company begins payment.

1. State Farm. State Farm is the industry's biggest player, both in the US and overseas. The Bloomington, Illinois-based P&C insurance giant wrote almost $78 billion worth of premiums in the past year.

Is commercial insurance the same as property insurance? ›

This insurance essentially provides the same kind of protection as property insurance for consumers. However, businesses can usually deduct the cost of commercial property insurance premiums as expenses. Commercial property insurance generally does not cover losses arising from tenants using the building.

If your business is in an area prone to natural disasters such as hurricanes, floods or earthquakes, your commercial property insurance costs will likely be higher. Insurers look at the local risks, and if Mother Nature's not on your side, it'll cost you.

Commercial property insurance generally does not cover the following, which may be covered with separate insurance policies or additional coverage endorsem*nts: Business vehicles. Employee theft. Employee injury or illness.

The standard commercial property insurance deductible is $250. However, other deductible amounts are available and the deductible applies only once per loss.

Important: Read exclusions in your insurance contract.

Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded.

For example, if a customer slips and falls inside your business and needs medical treatment, your general liability insurance policy will help pay for it. Or if one of your employees damages a customer's wall while working inside their home, your policy can help pay for the repairs.

A CPP provides businesses with more options and flexibility when putting together their business insurance program. With a BOP, you get the three coverages that are assigned to the policy, but with a CPP, you can basically design your insurance bundle from scratch to better fit your business's needs and risk profile.

Commercial health insurance, also called private health insurance, is coverage issued by a private company or entity. It is not from government-issued insurance like Medicare or Medicaid. Commercial health insurance companies include: Aetna.