Building insurance is often necessary for those with non-residential building operations. Because these types of operations are considered a low risk endeavor, building operations coverage can often be obtained at a reasonable cost. For this reason, those looking to protect their investment with buildings insurance should seek non-residential insurance coverage as well.
Non-residential coverage differs from residential insurance coverage in that it does not typically cover property damage. Instead, it provides coverage for liability, bodily injury, and property damage that are caused by tenants, employees, or others renting premises. The policy can also help cover the cost of repair for any damage that occurs to non-residential property owned by the insured party. Again, this differs from residential coverage in that property damage is rarely covered in this type of policy.
When obtaining non-residential coverage, it is important to understand the difference between general and specific coverage. General coverage provides coverage for almost any event that can occur on a property. Individuals who are in the business of building homes, apartment buildings, condominiums, and privately owned residential properties can benefit from this type of non-residential building insurance. While the policy may not provide coverage for all events, it will typically offer coverage for property damage, theft, vandalism, and malicious mischief.
A specific coverage policy will specify the events covered and the property damage that are covered. The events covered will vary depending on the coverage offered. If the insured party owns a building that is located on more than one parcel, it may also offer protection for events occurring on more than one property. Coverage for events will vary, but most policies will provide coverage for: fire, flooding, lightning, explosion, vandalism, malicious mischief, riots, celebration, public disturbances, and adverse weather conditions.
The insurance rates provided for non-residential buildings are typically higher than those for residential insurance. However, there are some companies who specialize in providing insurance for non-residential properties. Typically, a company will request an appraisal of the building in order to determine the proper rate. These companies have relationships with agents who can help determine the appropriate coverage level and premium for a policy.
There are certain circumstances where a non-residential policy may be issued over a residential policy. For instance, if the insured party is renting a space that is located in a building, the property damage coverage may be higher than it would be for a residential policy. Similarly, the policyholder may rent a portion of their commercial building as a space for personal residences. In these situations, the coverage amount for the property damage and personal liability may be less than they would be for a residence policy.
It is also important to carefully select the building insurance company that is selected for coverage. Insurance companies have their own set of values for the risk associated with a specific property. When selecting an insurance provider for buildings and contents, it is essential that the underwriter look at the premiums and benefits offered by each company. It is also important to compare the building insurance from one provider to the next. Different companies often charge different rates for the same building insurance. Therefore, it is imperative that buyers compare several building insurance providers in order to get the best policy at the best value.
When considering the purchase of insurance for a building or property, it is very important to remember that the purchase does not make any legal obligations. Therefore, a seller should not pay more than is necessary. If the seller cannot legally meet the obligations, then the buyer should back out. The property damage and personal liability coverage provided by the insurance should be enough to cover any potential problems that arise. A reputable company will be more than happy to provide references and to answer any questions buyers may have. All of these considerations should be taken into account before a buyer purchases property insurance.