Commercial property Insurance?

5 Responses to “Commercial property Insurance?”

1. Faye H says:

   May 29, 2009 at 2:30 am

   I would say owning a fourth house qualifies you as a commercial operation. I'm assuming that you are renting these out.

   I would contact an independent insurance agent, one who deals with commercial insurance (not one that only writes auto and homeowners). There are any number of insurance companies that are very good that could handle this.

   There is no difference in handling a commercial claim then a personal claim. The only differences would be in the policy, e.g. coverages.
   References :
2. mbrcatz17 says:

   May 29, 2009 at 3:16 am

   Yes and no. Rental properties are the dregs of insurance – tons of claims, not much money. If you go on a commercial policy, it's more expensive, and the coverage is "cafeteria style" – not as broad as a homeowners or dwelling fire policy. Claims handling is the same, but prices increase VERY VERY fast if you're a frequent claimer – as do deductibles.

   You can try getting a dwelling policy through foremost insurance – http://www.foremost.com, which will be less expensive than a commercial policy.

   You're not really looking at "which is best", as most commercial insurers aren't particularly interested in writing "small" rental properties – small meaning, premiums under $50,000. So do expect it to cost 1% of the property replacement value for the property coverage, with $1,000 deductible, possibly a $5,000 for water damaage; and liability is usually $500 per rental unit.

   Don't be surprised if you end up in the "surplus" or excess market, with taxes, inspection fees, and filing charges.

   But DO check the financial strength rating of the carrier you choose to go with – you NEED to be with a carrier that's A- or better.

   Oh, when I wrote personal lines, a few years ago, I always refused to write stand alone rental properties – I insisted that I had to write the house the people live in, and their auto, as well. So don't be surprised, if you shop around, and no one calls you back if you don't want to give them "good" stuff, too.
   References :
   agent, 21+ years
3. MTR says:

   May 29, 2009 at 3:51 am

   If you are renting these out, and you can afford 4 houses, you are probably better off with a commercial policy. There is no difference in the claims handling, put there are some differences in the policies. Many commercial policies exclude some of the things you would expect to have coverage for on homeowners. EX: If there is no windstorm to the roof, on a commercial policy the interior is usually not covered. On homeowners, sometimes it is.

   Best bet….call an agent (or two), and find out what they recommend. You are now building assets, and to protect those assets, you really need better coverage than just a homeowners policy. Maybe the time for you to check into an umbrella on top of the coverage for the buildings.
   References :
4. Nate W says:

   May 29, 2009 at 4:29 am

   Allstate will write up to 15 landlord policies per policyholder, b4 switching to commercial.

   Any type of commercial insurance is expensive, I'd avoid it if possible.
   References :
   Insurance Agent
5. MARK S says:

   May 29, 2009 at 5:02 am

   You can buy as many separate non-owner occupied policies as you like. But if you're trying to extend the liability coverage from your homeowners to the rentals, then after the 4th you need commercial ins. Just get a policy for each house and make sure liability is included.
   References :