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Insurance Considerations for Landlords and Commercial Property Owners

As a residential landlord or commercial property owner, your tenants look to you to provide a building that’s functional, safe, secure, and well-maintained. A property that is lacking in one of these areas may have trouble attracting new renters or retaining existing ones, which affects your bottom line. Homeowners usually purchase home insurance to protect their residences from certain types of losses such as fire, theft, and certain weather events. Similarly, building insurance coverage helps to protect your property from similar perils.  

Protecting Your Property

A building insurance policy usually addresses certain perils or risks such as theft, vandalism, fire, storms, flooding, and earthquakes among others. Such a policy exists as one of two types:

  • Named-peril: This policy specifically names the events that are covered, such as fire, theft, etc.
  • All-risk: This plan covers all damages except what’s specifically named in the policy.

It’s important to note the type of plan you have, especially since the frequency of a particular peril will affect the cost of your premium. In some locations, you may have to purchase a separate plan to protect your property. 

Being a Good Owner

Tenants can purchase renters policies to protect their belongings in the event of peril, but they rely on you to make sure the building is covered. This is not just the physical structure, but also interior fixtures such as lighting, bathroom elements, and more. Choose a plan that works for you and the occupants of your building.