Other Things That Commercial Insurance Covers Which May Prove Useful To You As A Landlord
Posted on: 24 August 2016
Owning and renting commercial insurance properties brings as many challenges as it does rewards. You are inclined to place insurance on all of your properties wherein people are either working or living, but what about your empty, abandoned properties? How about your land-only commercial properties? Should you cover those, and if so, why? The following reasons to keep commercial insurance on these properties might motivate you to get them covered in a hurry.
Land-Only Properties
Depending on where your land-only commercial properties sit, you may have some very prime real estate that could be developed in the future. You would still want to protect the land, because it can be scorched by fire just as easily as a commercial building. If it is ruined by flood or fire, its value would drop significantly. There is almost no way to recover its value, except to sell the land at a loss or develop it to increase its value. If you have commercial insurance on it, you may be able to recoup some of the losses from the flood or fire damage, and then decide how to best use what you have left.
Abandoned Commercial Properties
Abandoned commercial properties are often the targets of vandalism, gangs, spray-painting street artists, etc. The damages done by these groups and activities costs thousands more to fix and remove should you ever decide to renovate and sell the property. Commercial insurance on these properties ensures that the damages done are corrected when you file a claim against your policy, which in turn makes it less expensive to renovate and increase your resale profits. In short, placing commercial insurance on an abandoned property protects your assets and interests in the property and its future resale value.
Commercial Air Space
This intangible business construct, commercial "air space," includes all of the air above your commercial property going straight up vertically from the rooftops of your buildings. This is air space which you can use to expand your building upward, and there are special laws about who can and cannot invade this space. The real estate laws governing commercial air space are such that anything that hinders a business's or company's ability to construct more stories and/or succeed with the use of this space is forbidden. It is also space you want to protect and recognize as valuable property, so some commercial insurance providers will offer coverage for this "property."
If you own a type of commercial property listed above, contact an insurance agency like Patton-Chesnut-Binder Ins Agency to learn about your coverage options.
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