Real Estate And Rental Property Insurance FAQ Information
Real Estate And Rental Property Insurance FAQ. Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties.
These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Real Estate And Rental Property Insurance FAQ.
Read the Real Estate And Rental Property Insurance FAQ to learn what type of commercial insurance coverages are right for your holdings - including liability, property, workers compensation and other specialty policies.
What Is A Real Estate Business?
According to Investopedia, "Real estate is property made up of land and the buildings on it, as well as the natural resources of the land, including uncultivated flora and fauna, farmed crops and livestock, water and mineral deposits.."
Real Estate And Rental Property include - but are not limited to - the following types of businesses:
- Condominiums and Townhouses
- Duplexes and Double Houses
- Manufacturing and Mercantile Rental Properties
- Mobile Home Parks or Courts
- Office Buildings
- Parking Operations
- Shopping Centers
You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.
What Kinds Of Insurance Do Real Estate And Rental Property Businesses Need?
- At the minimum, real estate and rental property businesses need general liability and commercial property insurance.
- If they have employees they will need workers compensation in most states.
- If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
- There are also other specialty coverages and endorsements that might be needed based on their operations.
Following are some suggested commercial policies and coverages applicable for real estate and rental property businesses:
You can skip to the following types of real estate and rental property businesses small business insurance policy coverage types using these links:
Real Estate And Rental Property Businesses Commercial Insurance Policies:
- What kinds of commercial package policies do real estate and rental property businesses need?
- What kinds of commercial property insurance do real estate and rental property businesses need?
- What kinds of inland marine insurance do real estate and rental property businesses need?
- What kinds of crime insurance do real estate and rental property businesses need?
- What kinds of surety coverage do real estate and rental property businesses need?
- What kinds of commercial liability insurance do real estate and rental property businesses need?
- What kinds of commercial auto insurance do real estate and rental property businesses need?
- What kinds of workers compensation insurance do real estate and rental property businesses need?
- What kinds of excess and umbrella insurance do real estate and rental property businesses need?
- What kinds of specialty insurance do real estate and rental property businesses need?
What Kinds Of Commercial Package Policies Do Real Estate And Rental Property Businesses Need?
Package policies are the most convenient and cost effective way to combine a number of coverages in one policy, for both the insured and the insurance carrier. Some classes of real estate property may be eligible for coverage in both the businessowners program and the commercial package policy.
Types Of Real Estate And Rental Property Package Policies:
- Businessowners Policy (BOP)
- Commercial Package Policy (CPP)
What Kinds Of Commercial Property Insurance Do Real Estate And Rental Property Businesses Need?
Real estate owners must protect the building because it is their major asset. Their primary concern is the structure itself because they usually have no control over the activities inside unless those activities violate a contract.
Time element coverages, especially business income that includes rental value, are necessary for continued cash flow following a loss.
Types Of Property Coverages:
- Business Personal Property
- Personal Property of Others
- Improvements and Betterments
What Kinds Of Inland Marine Insurance Do Real Estate And Rental Property Businesses Need?
Most inland marine forms and coverages for these classes of business are limited and typically apply to exposures found in offices or to coverage for buildings under construction. Deeds and contracts are extremely valuable papers and should be covered with the appropriate form.
Types Of Inland Marine Coverages:
- Accounts Receivable Coverage
- Builders Risk Coverage
- Contractors Equipment
- Difference in Conditions (DIC) Coverage
- Electronic Data Processing Equipment Coverage
- Fine Arts Coverage
- Goods In Transit
- Signs Coverage
- Valuable Papers and Records Coverage
What Kinds Of Crime Insurance Do Real Estate And Rental Property Businesses Need?
Recommended crime coverages include protection against loss of money if tenants pay their rent in the form of cash or check at the rental office. Larger operations are subject to forgery or computer fraud exposures. Regardless of size, all operations are exposed to potential employee theft problems.
Types Of Crime Coverages:
- Computer and Funds Transfer Fraud Coverage
- Employee Theft Coverage
- Forgery or Alteration Coverage
- Inside The Premises-Theft of Money and Securities Coverage
- Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
- Money Orders and Counterfeit Money Coverage
- Outside The Premises Coverage
What Kinds Of Surety Coverage Do Real Estate And Rental Property Businesses Need?
Real estate and rental property operations may be required to post bonds based on their activities, operations and the licenses and permits needed to do business.
Types Of Surety Coverages:
- Court Bonds
- Fiduciary Bonds
- License and Permit Bonds
- Miscellaneous Surety Bonds
- Notary Public Bonds
What Kinds Of Commercial Liability Insurance Do Real Estate And Rental Property Businesses Need?
Real estate and rental property operations typically have no products or completed operations liability exposures. However, they do have substantial premises liability issues and concerns. The nature of the building occupancy and the contractual relationship between the owner and tenant determines the actual exposures.
Types Of Liability Coverages:
- Commercial General Liability (CGL) Coverage
- Employee Benefits Liability Coverage
- Employment-Related Practices Coverage
- Special Events Liability Coverage
What Kinds Of Commercial Auto Insurance Do Real Estate And Rental Property Businesses Need?
The commercial automobile exposure is usually very limited and consists mainly of private passenger automobiles and light service trucks. Parking operations may have significant garagekeepers exposure for customers' vehicles.
Types Of Business Auto Coverages:
- Auto Medical Payments
- Business Auto Coverage
- Collision Coverage
- Comprehensive Coverage
- Garagekeepers Coverage
- Hired & Non-owned Auto Coverage (HNOA)
- Uninsured/Underinsured Motorists Coverage
What Kinds Of Workers Compensation Insurance Do Real Estate And Rental Property Businesses Need?
Some of these operations have no employees at all while others have large payrolls. It depends on the number of owned properties and maintenance agreements. A worker is considered an employee even if his or her remuneration is in the form of barter, such as a "free" apartment, instead of in actual money.
Types Of Workers Comp Coverages:
- Stop-Gap or Employers Liability Coverage
- Voluntary Compensation
- Workers Compensation and Employers Liability Coverage
What Kinds Of Excess And Umberlla Insurance Do Real Estate And Rental Property Businesses Need?
Even with risks or operations not having significant premises liability exposures, the additional limits of insurance available through an umbrella or excess policy are important and needed to protect the financial assets of the property owner.
Types Of Excess Liability Coverages:
- Excess Liability Coverage
- Umbrella Coverage
What Kinds Of Specialty Insurance Do Real Estate And Rental Property Businesses Need?
The following coverages could be vital for larger real estate operations but unnecessary for smaller operations. Of particular interest for older habitational buildings could be the lead contamination coverage. Larger operations may use drones to review current real estate or to investigate new opportunities.
Types Of Specialty Coverages:
- Business Legal Expense Coverage
- Cyber Liability Coverage
- Data Security Breach Coverage
- Directors and Officers Liability Coverage
- Environmental Impairment Liability Coverage
- Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
- Identity Theft Insurance Coverage
- Lead Paint Contamination Coverage
- Recreational Trail Liability Coverage
- Risk Retention Group Liability Coverage
- Solar Energy System Coverage
- Tax Liability Coverage
- Tender Offer Defense Expenses Coverage
- Terrorism Insurance Coverage
- Title Insurance Coverage
- Underground Storage Tank (UST) Liability Coverage
- Unmanned Aerial Vehicles (UAV) (Drones)
Real Estate And Rental Property Insurance FAQ - The Bottom Line
There are many commercial insurance policies available for Real Estate And Rental Property. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring landlords.
Frequently Asked Questions By Industry
Learn about the coverages available for specific industires with the Insurance FAQs below:
- Artisan Contractors
- Automotive Sales and Service
- Aviation Risks
- Boats and Yachts
- Construction Contractors
- Eating and Drinking Establishments
- Educational Institutions
- Farm and Ranch
- Financial Institutions
- Food Processing Plants
- General Liability
- Government, Institutions and Utilities
- Health Care Providers
- Lodging Places
- Logging, Mining and Quarries
- Printing Services
- Real Estate and Rental Property
- Recreation and Sports
- Retail Food and Beverage
- Retail Stores
- Services Businesses
- Trucking and Transit
- Warehouses and Storage
- Wholesalers and Distributors