Having Good Building Owners Insurance is Vital
A building owner has a lot of responsibility, both to tenants operating an office or retail business in one of their properties, as well as to themselves because of the value of the property. A lack of coverage, or inadequate coverage, may result in a host of problems, including jeopardizing the reputation of your business along with serious financial loss.
We suggest you conduct a complete risk assessment of your operation and its exposures to determine how to address your risks effectively. Building owners insurance coverage will certainly do the trick, but it’s important to know which types and how much insurance you’ll actually need in order to be fully covered.
Understanding the policy language is important
Before you buy any insurance you should read your policy carefully. You may need to buy additional coverages or separate policies (such as flood, windstorm, or crime coverage policies) to fully protect your building. Commercial property insurance coverage comes in many forms. Depending on the type of business you’re running, apartment buildings, retail and office space, storing, shipping and warehouse, or a building used for some other type of operations, you need to find available coverages specific to your general needs.
The success of your properties may well depend upon how well you maintain and manage your leased buildings, as well as on having the proper insurance coverage to minimize the impact on tenants while protecting your investment from losses should some unexpected event occur.
As a building owner, when you’re renting to tenants you should be fully aware of just how both the type and amount of insurance a tenant has (or doesn’t have) impacts you. If a tenant has no renters or liability insurance, then you as a building owner are at risk if something should happen to go wrong.
Ideally every lease should have an insurance clause that states the insurance requirements for any tenant who rents space from you. By requiring tenants to carry coverage you can avoid many disastrous scenarios. In any case, you should only rent to people and businesses that fully understand the importance of having coverage and, just like you’re carrying building owners insurance, they should also carry a policy that protects their interests as well.