Commercial Property Insurance for Buildings and Rental Investments

Apartment buildings, mixed-use properties, retail strips, offices and warehouses — quoted through carriers that write commercial real estate in your state.

Who this coverage is for

Commercial property insurance is written for owners of buildings that are used for business or held as income property. We most often quote:

  • Apartment buildings and multifamily residential — including buildings with six or more units, which have their own page: apartment building insurance
  • Rental investment properties held personally or through an LLC
  • Mixed-use buildings with storefronts below and apartments above
  • Retail buildings and small shopping centers
  • Office buildings, single- or multi-tenant
  • Warehouses and light industrial buildings
  • Other commercial real estate, subject to the carrier’s eligibility rules

Not every property class is eligible with every carrier, and some (vacant buildings, buildings with heavy cooking exposures, older buildings without updates) need specialty markets. We tell you early if your building falls into one of those groups.

Coverage you can build into a policy

A commercial property policy is assembled from parts. These are the ones we discuss on almost every quote; which are available, and at what limits, depends on the carrier and the property.

CoverageWhat it is for
BuildingRepair or rebuild of the structure, valued at replacement cost or actual cash value
Business personal propertyContents you own — furniture, equipment, supplies — for owner-occupied buildings
Business income / loss of rentsIncome you lose while the building is being repaired after a covered loss
Premises liabilityClaims that someone was hurt or their property damaged at your building
Equipment breakdownSudden failure of boilers, HVAC, electrical panels and similar systems
Ordinance or lawExtra cost to bring an older building up to current code after a covered loss
Umbrella or excess liabilityAdditional liability limits above the primary policy

Coverages are not automatically included. A quote lists exactly what is and is not part of the policy; read the declarations and exclusions before you bind.

How causes of loss are described

Policies name the events they cover using a cause-of-loss form. The basic and broad forms list specific perils, such as fire, lightning, windstorm and hail. The special form covers direct physical loss unless the cause is excluded. Wind and hail can carry a separate, percentage-based deductible in coastal and storm-prone areas, and flood and earthquake are excluded unless added.

Things underwriters look at in every state

  • Roof age and material. Many carriers decline or restrict roofs past a certain age.
  • Electrical, plumbing and heating updates. Knob-and-tube or aluminum branch wiring, old fuse panels and polybutylene supply lines draw questions.
  • Protection class. Distance to the fire station and to a hydrant affects price.
  • Occupancy. What the tenants do — a restaurant next door to apartments rates differently than an office.
  • Loss history. Five years of loss runs from your current carrier.

Florida and Texas

Commercial property, apartment buildings, garagekeepers and dealer coverage for Florida and Texas are handled here. Personal insurance in those two states — auto, home and recreational — is quoted on our regional site, dannyruizinsurance.com.

Common questions

What does commercial property insurance cover?

It covers the building and, if you choose, business personal property against the causes of loss named in the policy — for example fire, wind and hail, theft or vandalism, depending on the form. Liability, lost rental income and equipment breakdown are separate coverages that are usually added to the same package.

Is flood covered?

Almost never under a standard commercial property form. Flood is written separately, through the National Flood Insurance Program or a private flood carrier. Earthquake is also normally excluded and must be added or bought separately where available.

What is coinsurance and why does it matter?

Many commercial forms require you to insure the building to a set percentage of its value, often 80 or 90 percent. If you carry less and have a partial loss, the claim payment can be reduced proportionally. Using a current replacement-cost estimate and an agreed value option, where offered, helps avoid that penalty.

What happens if my building is vacant?

Standard commercial property forms restrict coverage for some causes of loss once a building has been vacant for more than 60 consecutive days. If a building or a large share of units will be empty during a renovation, tell us before it happens so we can look for a vacancy permit or a vacant-building policy.

What information do you need for a quote?

The address, year built, construction type, square footage or unit count, occupancy, updates to the roof, electrical, plumbing and HVAC with years, sprinkler and alarm details, and five years of loss runs. For rental property, a current rent roll.

Insurance guides

Del Toro Insurance is an insurance agency. Coverage is subject to policy terms, underwriting approval and availability in your state; not every coverage described is available in every state or for every property or business.

Trucking, transportation and contractors

Cargo vans, box trucks, hot shot, semi trucks and contractor insurance (commercial auto, general liability and workers' comp) are quoted by our specialist team at dannyruizmyagent.com.

  • Contractor Insurance (Auto, GL, Workers' Comp)
  • Cargo Van Insurance
  • Box Truck Insurance
  • Hot Shot Insurance
  • Trucking & Semi Truck Insurance

Go to trucking & contractor quotes

Send us the property address and we will tell you what we can quote

Call, message us on WhatsApp or request your quote online. We work in English and Spanish.