Commercial Real Estate Insurance in Massachusetts
What is commercial real estate insurance?
Purchasing commercial property is a significant investment, and that investment is often exposed to a variety of serious risks. Commercial real estate insurance can help businesses and investors that have properties in Massachusetts protect their assets.
Commercial real estate insurance gives businesses access to significant amounts of insurance for their properties. From storms to theft to fire, this is an important insurance to have.
What businesses in Massachusetts should have commercial building insurance?
Most Massachusetts businesses should have commercial building insurance if they own buildings or other commercial real estate. Not insuring a building can be financially ruinous if something happens.
Insurance is often compulsory when a property is financed, as the lender may insist on minimum amounts of coverage in order to protect their interest. Sufficient coverage is highly recommended regardless of any lender-stipulated requirement, however.
What kinds of property is commercial building insurance available for?
Commercial building insurance can be purchased for most kinds of commercial properties. There are policies for multi-unit residential buildings, office buildings, retail stores and malls, entertainment complexes, mixed-use developments, industrial facilities, manufacturing plants and more. There are also policies available for raw land if businesses have undeveloped property.
An insurance agent who’s well-versed in commercial building insurance options will be able to help businesses find a policy that’s well-suited for their type of property.
What coverages are included within commercial building policies?
Although the exact protections offered can vary from one policy to the next, these policies usually focus on three main protections:
- Commercial Property Coverage: Might cover buildings and other structures against damage or loss. Covered perils may be specifically listed (closed perils policy), or include everything except what’s specifically excluded (open perils policy).
- Commercial Contents Coverage: Might cover items (e.g. equipment, tools, inventory, supplies, fixtures, electronics, etc.) that are kept at a business’s premises.
- Premises Liability Coverage: Might cover accidents occurring on the property that result in third-party injury (more common) or property damage (less common). Coverage is often limited to only the property’s premises.
Policies are typically written so that any improvements made to a property are covered by the policy. This usually ensures that improvements such as a primary building, other structures, signage and landscaping are covered.
Do sole proprietors with home offices need a commercial building policy?
Home-based business owners usually don’t need a full commercial building or real estate policy.
Instead, coverage for a home office can often be obtained through a homeowners policy. It may be offered as a standard protection, optional protection or endorsement. A knowledgeable insurance agent can help sole proprietors check how best to insure their offices.
How much does insuring a commercial property cost?
The costs associated with insuring a commercial property are based on many different factors. Some details that typically affect premiums are:
- Location: Where a property is located impacts its susceptibility to vandalism, natural disasters, etc. The distance from a fire can also impact response time if something happens.
- Size: How large a property is impacts the value, rebuilding costs and potential loss of a property. Size is measured in square footage for buildings, or acreage for unimproved land.
- Value: Value is impacted by location, size, property type, building age, condition and numerous other items. The more a building costs, the more insurance that’s needed.
- Structures: How many structures and what the structures are impacts how much it’d cost to rebuild a property if everything on it was destroyed. Insuring more structures and more complex structures typically increases premiums.
- Use: Premises liability premiums may be higher for properties that are used a lot. This is because the chances of an accident increase with usage.
An independent insurance agent can help businesses compare custom commercial property quotes from different insurance companies.
How can residents get homeowners insurance?
For help insuring a home located in Massachusetts, contact the independent insurance agents at Pike Insurance. Our agents will work closely with you to determine the best type of homeowners insurance policy, and make sure it has all of the coverages you need.
How can Massachusetts businesses get commercial real estate insurance for their properties?
If you need help insuring a commercial building or other property in Massachusetts, contact us at Pike Insurance. Our independent agents will work closely with you to find a commercial real estate insurance policy that provides robust protections at an affordable price.
