The commercial real estate market in Utah has faced a decline in 2022, as 18% of the workforce shifted to a remote working model, according to the Score. This means that commercial property owners must find ways to protect their investments.
Commercial property insurance can guarantee the continuity and success of your portfolio. Learn insurance coverage benefits and why you need the right policy for your business.
How Does Commercial Property Insurance Work?
Commercial property insurance acts as a safety net that protects commercial properties. This type of insurance is necessary because it covers the following:
- The physical structure of the building
- Machinery and equipment in the building
- Lost income
Commercial property insurance can boost your passive income by covering all your assets if accidents occur. So much can happen to a real estate asset, from severe winters to property damage. Having insurance is the best way to protect yourself from unforeseen financial losses in Provo, UT.
Property insurance operates differently based on the type of cover. Some of the most common types of commercial property insurance are:
- Building insurance
- Business interruption cover
- Flood insurance
- Contents and liability insurance
What Is Not Covered by Commercial Property Insurance
Property insurance doesn't cover everything. There are limits to the policy based on the unique features of the contract. A comprehensive policy that offers blanket cover is the best option if you have numerous commercial properties.
Business insurance coverage from commercial insurance does not include things such as:
- Areas adjacent to or surrounding the building
- Animals not considered livestock
- Vehicles and electronic data
- Different types of securities or money
Property damage due to employee negligence is also not covered by commercial insurance. Conducting regular commercial property maintenance can reduce the risk of property damage. Proper rental valuation allows you to assess how much you should set aside for insurance.
Property Insurance Benefits
One of the key benefits of commercial property insurance is that it acts as one of the best risk management strategies.
Other benefits of property insurance include:
- Providing business continuity when interruptions occur
- Enhanced liability protection
- Coverage against criminal activities
According to J.P Morgan, commercial real estate still faces uncertainty due to changing interest rates and workplace dynamics. Having commercial property insurance can protect business assets and safeguard your portfolio.
A property management company helps you decide which commercial coverage options can work for you. We also provide you with expert tips on successful commercial property management.
Cost of Commercial Property Insurance
The cost of commercial property insurance will vary based on the terms of the policy-the more comprehensive the cover, the greater the price you will incur. You have to factor in the location of the property and its condition when selecting the policy.
Whether you're a first-time landlord or an experienced investor, consulting a property management company can help you keep premiums low. For instance, we can handle repairs and maintenance coordination to reduce insurance costs.
Get Commercial Property Insurance Today
Like any other investment, managing real estate assets requires risk management strategies. Getting commercial property insurance is the best way to safeguard your assets.
PMI Made Simple has more than twenty years of experience helping property owners successfully navigate the real estate market and maximize their revenues.
Contact us today to schedule a free consultation.
