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.
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:
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.
Following are some suggested commercial policies and coverages applicable for landlords:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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.
Learn about the coverages available for specific industires with the Insurance FAQs below: