Commercial property, also called commercial real estate, investment property or income property is property that is non-residential property used exclusively for business-related purposes or to provide a workspace rather than as a living space. Most often, commercial real estate is leased to tenants to conduct income-generating activities.
Building insurance protects the commercial space. With commercial space, there may not be as many people wandering in and out, whereas retail space depends largely on foot traffic. Industrial buildings are generally factory or warehouse buildings, where stuff is made or stored for industries.
Commercial property, also called commercial real estate, investment property or income property is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space. Most often, commercial real estate is leased to tenants to conduct income-generating activities.
A commercial building may combine functions, such as offices on levels 2-10, with retail on floor 1.
When space allocated to multiple functions is significant, these buildings can be called multi-use.
FIVE CATEGORIES OF COMMERCIAL REAL ESTATE
Office buildings – This category includes single-tenant properties, small professional office buildings, downtown skyscrapers, and everything in between.
RETAIL / RESTAURANT
Retail/Restaurant – This category includes pad sites on highway frontages, single tenant retail buildings, small neighborhood shopping centers, larger centers with grocery store anchor tenants, “power centers” with large anchor stores such as WalMart, Smith’s, Best Buy, Target, PetSmart, Casinos, and so on even regional and outlet malls.
Multifamily – This category includes apartment complexes or high-rise apartment buildings. Generally, anything larger than a fourplex is considered commercial real estate.
Land – This category includes investment properties on undeveloped, raw, rural land in the path of future development. Or, infill land with an urban area, pad sites, and more.
Miscellaneous – This catch all category would include any other nonresidential properties such as hotel, hospitality, medical, and self-storage developments, as well as many more.
BUSINESS INSURANCE DISCOUNTS
Safety discounts are applied if you take good care of your property. Is your landscaping taken care of? Is the paint not peeling? Do you have special features that keep your property safe? Items such as a monitored burglar alarm, sprinklers in the ceiling, video surveillance or high quality roof work well to drive insurance rates down.
Are you a Member of a Restaurant Association, Builder Association, etc. Some Insurance companies specialize in a specific sector. Let them know your affiliations.
When you insure your General Liability, your Worker’s Compensation, your Commercial Auto policy together, these policies can receive a bundling discount.
HOW IS COMMERCIAL PROPERTY INSURANCE USED?
Commercial property insurance is used to cover any commercial property. Commercial property insurance protects commercial property assets and their contents from loss like fire, explosion, burst pipes, storms, theft and vandalism, and natural disaster. These policies may also contain provisions of loss of rental income or an increase in business expenses that result from any of the resulting property damage.
Many different factors are used to determine the premium or rate. The age of the property building, roof, and business assets and the following factors are used to determine the rate:
Location: Is the area prone to storms and other natural disasters?
Construction: Is the building constructed with fireproof materials, wood, steel, masonry stucco, concrete tile or shingle roof? Does it have new or upgraded electrical wiring, plumbing and Air Conditioning units?
Occupancy: Is the property vacant or occupied by tenants, What kind of industry are the tenant business involved in?
Fire and theft protection: How far is the nearest fire hydrant and fire station? Does your business have a fire alarm and/or full or partial sprinkler system? How about a security system?
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