If you own a real estate business, whether it be a property management company or a real estate investment operation, you are likely aware of the standard insurance coverage that is commonly obtained. Property insurance, workers’ compensation and casualty insurance are staple policies; however, there are many other commercial real estate insurance options that should be considered in order to better protect your company.
- Cat Losses – Losses to property as a result of catastrophes are covered under catastrophe insurance. It is used to protect properties from natural disasters – floods, tornados, earthquakes, hurricanes – as well as man-made disasters. This insurance is a great way to add extra protection given that standard hazard coverage generally excludes these events.
- OCIP – An Owner Controlled Insurance Program is used by those overseeing construction on their real estate properties. It allows the property owner to manage insurance on multiple contractors under one master policy. Instead of relying on the contractors to get general liability insurance, an OCIP can be obtained.
- Environmental – Property owners, developers and real estate managers can benefit from carrying environmental insurance. Hidden risks like asbestos, mold, bacteria, gasses and lead paint, among other pollutants, can come to light and require costly cleanup. Renovations can also expose these risks and damage a third-party person. This insurance is designed to protect against health and property damages occurred as a result of environmental issues.
Make sure that your real estate business is fully protected by speaking with an insurance agent regarding all of your commercial real estate insurance possibilities.