COMMERCIAL REAL ESTATE INSURANCE IN MASSACHUSETTS

What types of property can be covered by commercial real estate policies?

Commercial real estate policies can cover a wide variety of property types. Policies can cover office buildings, residential buildings, storefronts, industrial buildings, entertainment complexes, mixed-use spaces and more. Policies are also available for bare land.

An insurance agent who specializes in these policies can likely find a suitable policy for almost any type of real estate holding that a business has.

What coverages come with commercial building insurance?

Commercial building insurance normally provides two main coverages:

• Premises Liability Coverage, which may insure against common accidents that occur on the property
• Commercial Property Coverage, which may insure against damage to or destruction of the property

Premises liability is a form of general liability that usually restricts coverage to the property itself. More extensive general liability is readily available if needed.

Commercial property coverage might be an open perils or closed perils policy. Open perils policies usually cover risks unless they’re explicitly mentioned as excluded. Closed perils only cover the risks that are mentioned within the policy. Open provides more comprehensive coverage in most cases.

Commercial property coverage normally is drafted so that all improvements are protected. This can include main buildings, secondary structures, landscaping, signs and other features. Policies can also include coverage for business-owned contents kept on the property’s premises.

Do commercial real estate policies cover home offices?

Commercial real estate policies are normally more than home offices require. 

Home offices that have minimal equipment (e.g. only a computer) might not make sense to insure, because the value of the physical assets is so low. 

When coverage is needed, an endorsement on a homeowners policy might suffice. A business owner's policy would be the first type of commercial insurance policy to consider.

How much are premiums for commercial real estate policies?

Premiums for commercial real estate policies vary, and the difference between different policies' rates can be quite substantial. Some of the factors that commonly impact premiums are:

• Location: The location of a property influences how likely natural disasters and vandalism are
• Size: The square footage (for buildings) and acreage (for land) impact how much coverage is needed
• Value: Valuable buildings and land may require higher limits that increase rates slightly
• Structures: The number of structures and their complexity impact how much rebuilding them would be
• Use: Properties that have people regularly on them may have greater liability premiums

Comparing quotes with an independent agent is an easy way to find out how much insuring a specific property would cost.

How can businesses in Massachusetts get commercial real estate insurance?

For help insuring a commercial building or land that’s located in Massachusetts, contact the independent insurance agents at Garrity Insurance. We’ll work closely with you to identify the specific coverages, deductibles and limits that a property needs. We’ll then help you identify the best available commercial real estate insurance policy that meets those requirements.