Massachusetts businesses that own property need to protect against the risks that accompany commercial property ownership. Commercial real estate insurance can help businesses shield themselves from the two main risks that this presents.
Commercial real estate insurance makes substantial coverage for commercial properties available. Coverage can help protect both the property and the business.
Most Massachusetts businesses that own land and/or buildings probably need commercial building insurance. Property is exposed to potentially irrecoverable risks without insurance.
In many cases, businesses that have financed their property purchase are required to carry property insurance. Lenders include such a requirement in the terms of their loans, as a means of protecting their stake in financed properties.
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.
Commercial building insurance normally provides two main coverages:
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.
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.
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:
Comparing quotes with an independent agent is an easy way to find out how much insuring a specific property would cost.
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.