For three years in a row, the Dallas-Fort Worth metro area has led the country in commercial real estate investment. That's $42.5 million worth of commercial real estate. With this hefty investment, there is an inherent risk.
Commercial property insurance can help reduce the risk by protecting common causes of loss. Learn about the coverages available to you and how to make a claim should something happen.
Available Coverage Options
The type of insurance policy you purchase will depend on the level of coverage you are looking for. Working with a skilled commercial property manager can help you define your insurance coverage needs.
Basic Policy
A basic property insurance policy is going to cover the bare minimum. It will typically include coverage for a list of disaster-type situations. For example, this type of coverage includes fire, lightning, smoke, vandalism, burglary, hail, and windstorms.
Broad Policy
As a commercial landlord, you may want more protection for your investment. A broad policy will include everything the basic policy has, plus additional coverages. This could include coverage for falling objects, structural collapse, or leaking appliances.
Special Need Policy
If you are a real estate investor who wants total protection, then a special need policy may be a better fit. Typically, this coverage will protect your commercial property from every type of loss except those listed in the policy as not covered.
The exclusions are usually extremes that would result in a catastrophic loss. For example, flooding, war, earthquake, or nuclear disaster.
However, they also can include some unexpected but plausible causes of loss. For example, wear and tear, insects, and vermin could be listed.
Flood Coverage
Flood insurance is a separate coverage that typically requires you to purchase a different policy if you want it. The Dallas-Fort Worth area does see flash flooding from heavy rains. So this is something to consider when purchasing insurance coverage.
Replacement or Cash Value Coverage
For the maximum protection of your commercial real estate, opt for replacement value. This will give you the cost to repair or replace the loss at the time of the loss.
Actual cash value will only give you the replacement value minus depreciation. This amount could be less than the cost of repairing or rebuilding your commercial property.
Commercial Property Insurance Claims Process
Filing a claim with your insurance provider is similar to other insurance coverages. Once you experience a qualifying loss, you will contact the insurance company. Typically, this is through a website form or by calling.
The insurance company will ask for all of the relevant information. They will then come back to you with what your policy covers and what they are willing to pay.
Protect Your Commercial Property
With such a considerable value, commercial property insurance is a must to protect your investment. The next step is to decide how much coverage you need and the type of reimbursement you want. Then keep your policy for your records so that you can file a claim in the event of a loss.
Protect your commercial real estate beyond insurance by working with our team of experienced property managers.
