As a commercial property owner, protecting your investment is crucial. One of the best ways to do so is by purchasing commercial landlord insurance. This type of insurance provides coverage against various risks and liabilities associated with owning and renting out commercial properties, such as property damage, loss of rent, and legal liability. In this article, we will explore the importance of commercial landlord insurance and provide a comprehensive overview of the top 5 insurance companies offering this coverage for your consideration.
- 5 best commercial landlord insurance companies
- What is commercial landlord insurance?
- Who needs commercial landlord insurance?
- What does commercial landlord insurance cover?
- Differences between commercial landlord insurance and commercial renters insurance
- Differences between commercial landlord insurance and Lessor’s Risk Only (LRO) insurance
- How much does commercial landlord insurance cost?
- How to find affordable commercial landlord insurance
5 best commercial landlord insurance companies
Many insurance companies offer commercial landlord insurance. We have done intensive research to understand their product offerings and the pros and cons of these companies. Below are the top 5 companies that we recommend.
- Simply Business: Best for finding cheap commercial landlord coverage
- NEXT: Best digital carrier with affordable rates
- CoverWallet: Best for comparing several quotes online
- The Hartford: Best for comprehensive coverage from one of the most ethical carriers
- Smart Financial: Best brokerage firm to work with experienced agents
Simply Business: Best for finding cheap commercial landlord coverage
Simply Business is a leading business insurance brokerage. The company partners with 30+ leading carriers who not only have a good reputation but also offer competitive rates. This company offers a variety of insurance policies to meet the needs of property owners, including coverage for property damage, loss of rent, and legal liability. Simply Business also offers flexible coverage options, so property owners can choose the coverage that best fits their needs.
Pros:
- Very affordable rates from reputable insurance companies, which may not be available outside of the Simply Business’s platform
- Easy to compare and select the cheapest quotes
- Have great customer satisfaction ratings on trustpilot
Cons:
- If you prefer a particular carrier that Simply Business doesn’t work with, you have to look elsewhere
- In some cases, quotes may not be available online, you have to call to discuss your quote options with their agents
NEXT: Best digital carrier with affordable rates
NEXT is a digital-first carrier specializing in small business insurance. They offer comprehensive commercial landlord coverage, which can be bought online. The entire process from getting quotes to buying a policy only takes about 10 minutes. NEXT is known for its excellent digital experience and affordable rates.
Pros:
- Excellent digital experience from buying to managing a policy. Everything is online at your fingertips
- Rates tend to be very affordable and competitive
- Comprehensive liability coverage
Cons:
- NEXT may not have coverage for very large commercial buildings
- A relatively new carrier, founded in 2016, without a long track record
CoverWallet: Best for comparing several quotes online
CoverWallet is a leading insurance brokerage firm in the US. They partner with several top-tier carriers to offer commercial landlord insurance. CoverWallet also offers a user-friendly online platform, making it easy for property owners to compare several quotes and buy a policy online.
Pros:
- One of the best quote comparison platforms, easy to compare several quotes online
- All quotes are by top-tier carriers with comprehensive coverage
- A wide range of comprehensive coverages that commercial landlords may need are available
Cons:
- Quotes are from their partners only
- CoverWallet doesn’t handle claims. You have to file a claim directly with the carrier
The Hartford: Best for comprehensive coverage from one of the most ethical carriers
The Hartford is a well-known provider of commercial landlord insurance in the United States. This company offers a variety of insurance policies to meet the needs of property owners, including coverage for property damage, loss of rent, and legal liability. The Hartford also offers competitive pricing and a range of discounts for property owners.
Pros:
- One of the most reputable and ethical carriers in the world with 200+ years of experience insuring more than 1M small businesses
- Very comprehensive coverage
- A great reputation to honor their policies, even in bad times
- Excellent customer satisfaction ratings
Cons:
- Quotes may be more expensive than others
- Have to buy a policy through an agent
Smart Financial: Best brokerage firm to work with experienced agents
Smart Financial is another brokerage firm specializing in serving small businesses, including commercial landlords. Smart Financial believes that small business owners should work closely with an experienced agent to find the right coverages that they need at the most affordable rates. They work with an extensive network of of agents who have tremendous experience in helping millions of commercial landlords in the US.
Pros:
- A large network with agents who are the most experienced and knowledgeable about commercial landlord insurance in the US
- A fast and simple process to match commercial landlords with the most experienced agent in their niche
- Partners with carriers who have good financial strength ratings and affordable rates
Cons:
- Limited digital capabilities
- You have to work with an agent. If you prefer doing everything online, this may not be a good option for you
What is commercial landlord insurance?
Commercial landlord insurance, also known as property owners’ insurance, is a type of insurance policy specifically designed for individuals or companies that rent out commercial properties. The insurance policy provides protection against a variety of risks and liabilities associated with owning and renting out commercial properties. These risks can include damage to the property, loss of rent, and legal liability.
Who needs commercial landlord insurance?
If you own a commercial property that you rent out to tenants, then you should consider purchasing commercial landlord insurance. This type of insurance is especially important for property owners who have multiple properties, as the risks and liabilities associated with owning multiple properties can be significant. Additionally, commercial landlord insurance can provide peace of mind, knowing that you have protection against potential financial losses and legal liability.
What does commercial landlord insurance cover?
Commercial landlord insurance typically covers a variety of risks and liabilities associated with owning and renting out commercial properties. These risks can include:
Property damage
Commercial landlord insurance can provide protection against damage to property caused by events such as fire, theft, and vandalism. In the event of property damage, the insurance policy can help cover the cost of repairs or reconstruction of the property.
Loss of rent
In the event that a tenant is unable to pay rent due to circ*mstances beyond their control, such as a natural disaster or a business closure, commercial landlord insurance can provide coverage for lost rent. This type of coverage can help protect the property owner against financial losses in the event that a tenant is unable to pay rent.
Legal liability
Commercial landlord insurance can also provide protection against legal liability in the event that a tenant or visitor is injured on the property. In this type of situation, the insurance policy can help cover the cost of legal fees and any settlements or judgments that may be awarded.
Differences between commercial landlord insurance and commercial renters insurance
While both commercial landlord insurance and commercial renters insurance provide coverage for commercial properties, there are several key differences between the two.
Commercial landlord insurance provides coverage for the property owner, while commercial renters insurance provides coverage for the tenant. This means that the coverage provided by each type of insurance is different, and it is important to understand the differences in order to choose the right coverage for your needs.
For example, consider a situation in which a tenant causes damage to the rental property. With commercial landlord insurance, the property owner would be covered for the damage to the property, while with commercial renters insurance, the tenant would be covered for their liability for the damage they caused.
This illustrates that while both commercial landlord insurance and commercial renters insurance provide coverage for commercial properties, they provide different types of coverage. Commercial landlord insurance typically provides coverage for property damage, loss of rent, and legal liability, while commercial renters insurance typically provides coverage for the tenant’s personal property and liability for damage they cause to the rental property.
It is important for commercial property owners and tenants to understand the differences between commercial landlord insurance and commercial renters insurance, and to choose the right coverage to meet their specific needs and protect their interests.
Learn more at best business renters insurance companies and business renters insurance cost
Differences between commercial landlord insurance and Lessor’s Risk Only (LRO) insurance
Commercial landlord insurance and Lessor’s Risk Only (LRO) insurance are two types of insurance coverage that are commonly used by commercial property owners. While both types of insurance provide coverage for commercial properties, there are several key differences between the two.
Commercial landlord insurance provides comprehensive coverage for the property owner, including coverage for property damage, loss of rent, and legal liability. Lessor’s Risk Only (LRO) insurance, on the other hand, provides more limited coverage and is specifically designed to cover the property owner’s legal liability in the event of a claim by the tenant.
For example, consider a situation in which a tenant sues the property owner for damages. With commercial landlord insurance, the property owner would be covered for the legal fees associated with the lawsuit, as well as any settlement or judgement against them. With Lessor’s Risk Only (LRO) insurance, the property owner would only be covered for their legal liability, and would not be covered for any damage to the rental property or loss of rent.
This illustrates that while both commercial landlord insurance and Lessor’s Risk Only (LRO) insurance provide coverage for commercial properties, they provide different types of coverage. Commercial landlord insurance provides more comprehensive coverage, while Lessor’s Risk Only (LRO) insurance provides more limited coverage that is specifically designed to cover the property owner’s legal liability.
It is important for commercial property owners to understand the differences between commercial landlord insurance and Lessor’s Risk Only (LRO) insurance, and to choose the right coverage to meet their specific needs and protect their interests.
How much does commercial landlord insurance cost?
The cost of commercial landlord insurance can vary depending on a variety of factors, including the location of the property, the type of property, and the amount of coverage requested. On average, commercial landlord insurance can cost anywhere from $500 to $2,500 per year.
This is just the average. Your rates will be different. Be sure to get several quotes or work with a leading brokerage firm like Simply Business, CoverWallet, or Smart Financial to compare several quotes to find the cheapest one for you.
What affects commercial landlord insurance costs?
The cost of commercial landlord insurance is influenced by several key factors. Understanding these factors can help property owners make informed decisions about their insurance coverage and choose the right policy for their needs and budget. Some of the key factors that affect commercial landlord insurance costs include:
Location of the property
The location of the property is one of the primary factors that can impact the cost of commercial landlord insurance. Properties located in areas with higher crime rates or in areas prone to natural disasters, such as hurricanes or earthquakes, can be more expensive to insure.
Type of property
The type of property being insured is another key factor that can affect the cost of commercial landlord insurance. Properties that are considered higher risk, such as those in the hospitality or retail industries, can be more expensive to insure than properties in lower risk industries, such as offices or warehouses.
Size of the property
The size of the property can also impact the cost of commercial landlord insurance. Larger properties typically require more coverage, which can result in higher insurance costs.
Amount of coverage
The amount of coverage requested is another key factor that can affect the cost of commercial landlord insurance. More extensive coverage, such as coverage for loss of rent or legal liability, can result in higher insurance costs.
Deductible
The deductible, or the amount that the property owner must pay out of pocket before their insurance coverage takes effect, can also impact the cost of commercial landlord insurance. Higher deductibles can result in lower insurance premiums, but property owners should carefully consider their financial situation before choosing a high deductible.
By understanding these key factors, property owners can make informed decisions about their commercial landlord insurance coverage and choose the right policy for their needs and budget.
How to find affordable commercial landlord insurance
Finding affordable commercial landlord insurance can seem like a daunting task, but there are several steps that commercial landlords can take to help lower their insurance costs. Some of the steps commercial landlords can take to find cheap coverage include:
Shop around
One of the most effective ways to find affordable commercial landlord insurance is to shop around. This means comparing insurance quotes from several different insurance companies to find the best coverage at the most competitive price.
Review coverage needs
Commercial landlords should regularly review their insurance coverage needs to make sure they are not overpaying for coverage they do not need. By understanding their specific coverage needs, landlords can choose the right insurance policy that provides the coverage they need at an affordable price.
Consider a higher deductible
Commercial landlords can consider choosing a higher deductible to help lower their insurance costs. However, it is important to make sure the deductible is an amount that the landlord can afford to pay in the event of a claim.
Bundle policies
Commercial landlords can also consider bundling their insurance policies, such as combining their commercial landlord insurance with their personal insurance coverage. This can help lower insurance costs and simplify the insurance process.
Choose the right insurance company
Commercial landlords should choose an insurance company that has a strong reputation, a solid financial rating, and a proven track record of providing quality insurance coverage.
By following these steps, commercial landlords can find affordable commercial landlord insurance that provides the coverage they need to protect their investment.
Differences between commercial landlord insurance and commercial property insurance
Commercial landlord insurance and commercial property insurance are two types of insurance coverage that are commonly used by commercial property owners. While both types of insurance provide coverage for commercial properties, there are several key differences between the two.
Commercial landlord insurance is specifically designed for property owners who rent out their properties to tenants, and provides coverage for the property owner’s interests, including property damage, loss of rent, and legal liability. Commercial property insurance, on the other hand, provides more comprehensive coverage for the entire commercial property, including the building, contents, and liability coverage.
For example, consider a situation in which a tenant causes damage to the rental property. With commercial landlord insurance, the property owner would be covered for the damage to the property and any loss of rent, as well as their legal liability for the damage caused by the tenant. With commercial property insurance, the entire commercial property would be covered, including the building, contents, and liability coverage for the entire property, not just the rental portion.
This illustrates that while both commercial landlord insurance and commercial property insurance provide coverage for commercial properties, they provide different types of coverage. Commercial landlord insurance is specifically designed to provide coverage for the property owner’s interests, while commercial property insurance provides more comprehensive coverage for the entire commercial property.
It is important for commercial property owners to understand the differences between commercial landlord insurance and commercial property insurance, and to choose the right coverage to meet their specific needs and protect their interests.
Differences between commercial landlord insurance and general liability insurance
Commercial landlord insurance and general liability insurance are two types of insurance coverage that are commonly used by commercial property owners. While both types of insurance provide coverage for commercial properties, there are several key differences between the two.
Commercial landlord insurance is specifically designed for property owners who rent out their properties to tenants, and provides coverage for property damage, loss of rent, and legal liability. General liability insurance, on the other hand, provides coverage for the property owner’s legal liability in the event of a third-party injury or property damage, but does not provide coverage for property damage or loss of rent.
For example, consider a situation in which a tenant slips and falls on the rental property and sues the property owner for damages. With commercial landlord insurance, the property owner would be covered for the legal fees associated with the lawsuit, as well as any settlement or judgement against them. With general liability insurance, the property owner would only be covered for their legal liability for the third-party injury, and would not be covered for any damage to the rental property or loss of rent.
This illustrates that while both commercial landlord insurance and general liability insurance provide coverage for commercial properties, they provide different types of coverage. Commercial landlord insurance provides comprehensive coverage for the property owner, including coverage for property damage, loss of rent, and legal liability, while general liability insurance provides more limited coverage for the property owner’s legal liability in the event of a third-party injury or property damage.
It is important for commercial property owners to understand the differences between commercial landlord insurance and general liability insurance, and to choose the right coverage to meet their specific needs and protect their interests.
Differences between commercial landlord insurance and Business Owners Policy (BOP)
Commercial landlord insurance and business owners policy (BOP) are two options that commercial property owners may consider. While both offer coverage for commercial properties, they differ in the type of coverage they provide.
Commercial landlord insurance is tailored for property owners who rent out their properties and offers coverage for property damage, loss of rent, and legal liability. On the other hand, with BOP, the property owner’s entire business would be covered, including the building, contents, liability coverage for the business, and other business-related risks, but not necessarily covering the loss of rent.
For instance, suppose a tenant causes damage to the rental property. Commercial landlord insurance would cover the damage to the property, loss of rent, and the property owner’s legal liability in the situation. Meanwhile, BOP would provide coverage for the property owner’s business, including the building and contents, but not necessarily covering the loss of rent.
In conclusion, commercial landlord insurance and BOP offer different types of coverage. While commercial landlord insurance focuses on the property owner’s interests in the rental property, BOP provides a more extensive coverage for the property owner’s business. It’s essential for commercial property owners to assess their needs and choose the right coverage to protect their interests.
