Real Estate And Rental Property Insurance FAQ

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Get answers to small business insurance frequently questions including costs, coverages, minimum requirements, certificates & more.

Types Of Small Business Insurance

  • Includes medical payments, legal representation, and defense against libel and slander accusations.
  • Provides financial protection if an employee has a job-related accident or illness.
  • Bundles general liability insurance and commercial property into one affordable policy.
  • Pays to repair or replace your business property if it's stolen, damaged, or destroyed in a fire or natural disaster.
  • Covers mistakes or alleged mistakes on your part (errors) & failures or alleged failures to perform a service (omissions).
  • Is liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business.
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Frequently Asked Questions About Small Business Insurance


What types of business insurance do I need?

Almost every business needs general liability and commercial property insurance at the very least. If you have any non-owner employees, you'll most likely need workers compensation insurance too as most state require it. Other types to consider are: commercial auto, professional liability, cyber liability, inland marine and others. It all depends on the risks your business faces. Read more...

How much does general liability insurance cost?

In 2019, commercial general liability costs can vary widely based on industry. Premiums are also determined by zip code and often payroll and/or gross sales. You can request a free quote to get an exact premium for your business. Read more...

How does general liability insurance work?

Having general liability is the basis of any business insurance program. If you can afford only one commercial insurance policy for your small business - then you should get a commercial general liability policy, because it offers protection against a wide range of unexpected risks, and will form the foundation of your business financial protection. Read more...

What is a Certificate of Insurance?

A Certificate of Insurance (COI) is proof of coverage. It verifies that you have insurance coverage for your small business, & contains information on types and limits of coverage, insurance company, policy number, named insured, and the effective date of the policy. Read more...
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Real Estate And Rental Property Insurance FAQ Information

Real Estate And Rental Property Insurance FAQ

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:

  • Apartments
  • Condominiums and Townhouses
  • Cooperatives
  • Duplexes and Double Houses
  • Dwellings
  • 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.

Types Of Real Estate And Rental Property Insurance Policies

Following are some suggested commercial policies and coverages applicable for landlords:

PACKAGE POLICIES

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)
PROPERTY COVERAGES

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:

  • Building
  • Business Personal Property
  • Personal Property of Others
  • Improvements and Betterments
INLAND MARINE COVERAGES

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
CRIME COVERAGES

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
SURETY COVERAGES

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
COMMERCIAL LIABILITY COVERAGES

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
COMMERCIAL AUTO COVERAGES

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
WORKERS COMPENSATION COVERAGES

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
EXCESS AND UMBRELLA COVERAGES

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
AVIATION COVERAGES

Real estate property owners with properties located over a widespread geographic area frequently own or lease aircraft so they can comfortably and quickly visit their locations or visit prospective new ones.

Types Of Aviation Coverages:

  • Aircraft Liability Coverage
  • Aircraft Passenger Liability Coverage
  • Aircraft Physical Damage (Hull) Coverage
SPECIALTY COVERAGES

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:

Real Estate And Rental Property Insurance FAQ
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