How to Buy Commercial Building Insurance.

Commercial building insurance coverage is a very wide spectrum of needs from the building owner, because it can go from a single use structure (like a Rite Aid store) or to a strip plaza or to a warehouse building.

Each type of commercial real property needs specific coverage’s to handle the risk factor for each type of building. Just like in a mixed-use building, a strip plaza risk will be determined by the make-up of the tenants. Some are low risk – like a barber shop for example and some are higher risk, like a Panera’s –  a restaurant with very high traffic.

The single use buildings, think like a stand-alone doctor’s office or dentist office, since just about all insurance companies want these type of risks. These are very easy to write and have very competitive rates from multiple insurance companies.

How to Buy Commercial Building Insurance.

Warehouses can be a little tricky, because the use of the building can be the determining factor for the rate. Something like a corrugated box manufacturer and warehouse, will have a higher rate than a cold storage building. Or a self storage facility will have a very different rate than a car wash, for example.

Another example would be a furniture warehouse, as usually only employees are there, putting the furniture on the delivery trucks – very low risk. 

So the warehouse commercial risk will still need some underwriting help from an insurance company, depending on what is at risk. These can be very easy to do or a little more difficult, based on the tenants business.

Commercial building insurance can be done by most commercial insurance companies, it is what risks they are willing to take on their books. Some insurance companies have a very wide appetite for commercial and some narrow the type they are willing to take on.

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