Understanding the Risks in Commercial Property Owners

Commercial Property Insurance for property owners is designed to provide coverage for buildings and personal property owned by a business. This insurance is essential for landlords and property owners who lease their spaces to businesses, as it helps protect their investment from a wide range of risks.

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What is Typically Covered:

• Building Coverage: Protection for the physical structure of the commercial property against damage from fires, storms, vandalism, and other covered perils.

• Loss of Rent: Coverage for loss of income if the property becomes uninhabitable due to a covered loss and tenants are unable to pay rent.

• Property Contents: Covers the cost to replace or repair furniture, fixtures, and equipment inside the property that are owned by the landlord.

• Liability Protection: Provides defense and damages if someone is injured on your property and you are found legally responsible.

• Glass Coverage: Protection against breakage of windows and glass signage.

• Equipment Breakdown: Covers the cost of repairing or replacing equipment like boilers, air conditioning units, and elevators if they break down unexpectedly.

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What is Not Typically Covered:

• Tenant Belongings: : Personal property owned by tenants is not covered; they would need their own renters' insurance.

• Flood Damage: Standard policies typically exclude flood damage; separate flood insurance would be required.

• Intentional Damage: Damage caused intentionally by the property owner is not covered.

• Wear and Tear: The normal deterioration of the property over time is not covered.

• Earth Movement: Earthquakes, landslides, and sinkholes are usually excluded unless additional coverage is purchased.

• Nuclear Hazard: Damage from nuclear events is not covered.

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