Updated: Aug 30, 2020
WHY It's Important To Have a Trustworthy Agent ON YOUR TEAM
Having a good, trustworthy insurance agent on your team is important when investing in commercial real estate. One thing to consider is, do you want to work with a Captive Agent or an Independent Agent?
Captive Agents work with one company. Independent Agents represent several companies. The agent is independent from all the companies they sell for, and therefore in theory can evaluate different insurance policies effectively.
What coverage's do you need for your investment?
General Liability -Protects against claims of actual or alleged property damage or bodily injury by third parties (tenants, visitors, repair persons, delivery persons, etc.) and protects you from lawsuits if a tenant or visitor is injured on your property.
Commercial Property - Protects against the loss of your apartment building or buildings within a complex, as well as other structures on the property.
Loss of Income - Reimburses you for lost business income (rent) if the property is damaged by a covered loss and results in a loss of income or suspension of operations while repairs are made to the property.
Commercial Auto - Covers damage to your vehicles and protects you if legal action is taken against your company over an auto accident involving your vehicle(s).
Hired and Non-Hired Auto - May be added to protect you if an employee gets in a wreck in their own car while working for you. This can be added to the commercial auto policy if you have one.
Tenant Discrimination - The primary purpose of the coverage is to protect against allegations of discrimination under the Fair Housing Act, which prohibits discriminatory decisions around race, gender, disability, religion, sex, familial status, national origin and so forth.
Ordinance or Law - If an ordinance or law requires demolition of undamaged parts of a building after a covered loss, we cover the demolition, debris removal, and the increased costs of rebuilding to code.
Commercial Umbrella - Provides an extra layer of protection beyond your commercial auto and general liability coverage, so your business is still covered if you face a large claim or lawsuit.
Landlord Insurance - Designed for owners of rental properties of one to four units, including apartments, condominiums, and single- or multi-family homes that you own and rent to others.
Cover damage to structure and personal injury to a tenant or a visitor to your property.
Will not cover personal possessions inside the rental property that belong to your renters.
You may want to add Loss of Rent should an event occur that renders the property unusable.
Whoever you choose to be part of your team, remember to make sure that they're looking out for your best interest and understand your business vision. It's important to check in with your insurance agent more than once a year, not just only during renewal time. It's also very important to check in with your insurance agent when your real estate portfolio gets restructured (selling/buying, strategy, etc).
Do you have specific questions? Book your free 15 minute consultation today with our Insurance Expert, Grace Buencamino, here!
This blog was co-written by Grace Buencamino and Pam Scamardo.