The Specialty Real Estate Insurance Guide
Real Estate Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Real Estate Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Real Estate Insurance policies they might need to do business.
Learn about Specialty Real Estate Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Real Estate Insurance Types
Click on the links below to learn more about Specialty Real Estate Insurance types and coverages:
- Abstracters Professional Liability Insurance
- Apartment Complexes Insurance
- Appraisers Errors And Omissions Insurance
- Community Resort Associations Insurance
- Condominium Associations Insurance
- Escrow Agents Errors And Omissions Insurance
- Home Sellers Liability Insurance
- Homeowners Associations Insurance
- Privacy Insurance
- Property Management Errors And Omissions Insurance
- Real Estate Agents Errors And Omissions Insurance
- Rehabilitation Projects Insurance
- Vacation Income Property Insurance
What Is Abstracters Professional Liability Insurance?
Abstractors research the validity of and for any restrictions on real estate property titles. This insurance responds to claims that allege an abstractor provided either faulty or incomplete information about the title he or she was researching. It is usually written subject to a minimum deductible per claim and is often combined with Title Agents Errors And Omissions coverage.
What Type Of Insurance Do Apartment Complexes Need?
Apartment complexes provide housing to individuals who pay rent to the building owners. Amenities vary and can include community centers, golf courses, exercise facilities, and other activities. The types of structures vary, ranging from multi-unit single story frame dwellings to high-rise, sprinklered, fire resistive buildings.
What Is Appraisers Errors And Omissions Insurance?
Appraisers provide objective and unbiased estimates of the value of certain property. Many specialize in specific types of property, such as real property, jewelry, antiques, or fine arts. This coverage protects individual appraisers or appraisal firms against claims that allege negligence or bias in preparing appraisals.
What Type Of Insurance Do Community Resort Associations Need?
Community resort associations are nonprofit homeowners associations located in resort states such as Florida, California, and Arizona. Condominiums, development homes, or planned unit developments (PUDs) are usually situated near golf courses, beaches, and lakefronts, tennis courts, swimming pools, and other recreational facilities. Every property owner is required to join the association. The association makes decisions concerning maintenance and upkeep of common property. Common property may include a country club, golf course, courtyards, gardens, and walkways. Homeowners pay fees to the association. The association boards are made up of property owners and are led by an elected or appointed president. Associations usually hire managers to oversee the property. General liability, excess/umbrella liability, directors and officers liability, and employment practices liability are the coverages usually provided.
What Type Of Insurance Do Condominium Associations Need?
A condominium association is a legal entity made up of individual unit-owners who own their individual living spaces but who jointly share ownership and responsibility for maintenance and upkeep of common areas. Condominiums can present unusual and sometimes complex insurance problems with respect to property, liability, crime, and workers compensation coverages for the condominium buildings and operations.
What Is Escrow Agents Errors And Omissions Insurance?
This coverage pays for damages that arise from escrow agents' negligent acts, errors, or omissions. Banks, mortgage service companies, savings and loan associations, and title companies are examples of businesses that provide escrow services and therefore need this coverage. Deeds, property taxes, and property insurance premiums are examples of items that are held in escrow. The market for this coverage is limited.
What Is Home Sellers Liability Insurance?
This coverage reimburses home sellers for monetary losses and legal expenses from claims of defects in the home or property by home purchasers. It is usually purchased by real estate firms to cover sales of listed homes and is automatically provided to all listed home sellers. It pays up to stated amounts to reimburse monetary loss and legal expenses. It also provides real estate firms with an advantage in obtaining listings.
What Type Of Insurance Do Homeowners Associations Need?
Homeowners associations (HOAs) are nonprofit organizations made up of property owners who work together to govern and maintain jointly owned property. Community swimming pools, tennis courts, golf courses, and clubhouses are maintained for the use of members and their guests. Property owners pay fees for services the association renders to maintain these and other facilities, in addition to maintaining all common property. Property owners make up the boards that elect the officers. A manager is usually hired to make day-to-day decisions and hire workers who maintain the property. The board may purchase directors and officers liability coverage to protect it against wrongful acts to third parties and employees. In many cases, employment-related practices liability coverage is purchased to insure against wrongful termination, harassment, or discrimination of employees or third parties. Standard carriers write many smaller associations. However, excess and surplus carriers write the larger ones that have more extensive property and liability exposures.
What Is Privacy Insurance?
This coverage protects the insured when confidential information belonging to clients, employees or vendors is breached because of an alleged error on the insured's part. Coverage is provided for both defense and indemnification. Coverage also includes the cost to notify affected individuals.
What Is Property Management Errors And Omissions Insurance?
Property managers arrange for property maintenance, leasing or renting, construction, alteration, and land development. Any real estate firm must carefully supervise these and related activities in order to avoid errors and omissions claims. While many property managers are also real estate agents, not all are.
What Is Real Estate Agents Errors And Omissions Insurance?
This coverage protects a real estate agency against claims for damages for financial loss due to the agency's alleged negligence. The allegations of negligence must be related to the conduct of negotiations and business performance for others. Like all forms of errors and omissions insurance, a proposal form must be completed and submitted to obtain a rate quote and to issue the policy. The premium charge is based on the amount of insurance, the deductible, the number of partners and other associates, and the gross income from handling real estate business.
What Type Of Insurance Do Rehabilitation Projects Need?
Buildings being rehabilitated in order to retain significant older structural features or historical landmarks, to obtain special tax credits, or simply to reduce the costs involved in new construction present difficult builders risk exposures and are difficult to place. Property values do not begin at zero, as in standard builders risk exposures, because rehabilitation projects already have existing foundations, frames, walls, and roofs. A sublimit usually applies to the value of the building's shell during the demolition and rehabilitation phases. Establishing partial occupancy before the project is complete can be a concern, especially in commercial rehabilitation jobs as well in some residential work. Starting with an existing structure requires fire protection, welding and cutting precautions, protective fences, lighting, and guard services that may not be required with new construction.
What Type Of Insurance Does Vacation Income Property Need?
Unoccupied vacation property that is a financial drain to the owner can be turned into an income producer. When it is unoccupied the expenses for a caretaker to watch over it rise as does the cost to insure a vacant dwelling. However, a property management firm can be hired to oversee and rent out the property. The rental fee should pay for the property management fees, all ongoing costs required to keep the property maintained and generate a profit for the owner. The property must be property insured.
Real Estate Insurance - The Bottom Line
We hope that the Real Estate Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.