Property
Insurance
The insurance portfolio starts
with "first party coverage". A policy covering the insured's
own property against the common perils of fire, wind, flood and
glass breakage.
Types
of property coverage, and
risks against which the property owner may wish to insure, include
the following:
-
Natural disaster:
fire, wind, flood, earthquake;
-
Crime:
assault, theft or embezzlement by employees;
-
Special coverage for
machanicals like, transformers, boilers and furnaces; plate
glass, doors and and other things excluded from regular coverage;
-
Business interruption
insurance for lost rents and other income when the property
is inoperable or untenable.
-
Some courts have recently
held landlords liable for crimes committed on a property. Many
policies exclude assault and battery from coverage, so you may
have to negotiate to have coverage for violence against tenants
or visitors.
Most property owners purchase
a commercial property policy when they can. However, insurance
companies are reluctant to offer a commercial policy that covers
anything less than five unit buildings. Although there are variations
from company to company, and sometimes individualized policies
are sold to deal with unusual circumstances, real property insurance
is highly standardized.
Insurers usually follow standards
created by the Insurance Services Office (ISO), a voluntary industry
group.
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