Most Commonly Overlooked Coverages
In the competitive environment of today’s brokerage world, I’ve seen others take shortcuts when proposing and binding coverages in an attempt to try and win a deal. There are several coverages, as you can imagine, that are available for property owners or managers to ensure that their asset is adequately protected. The issue then becomes the age old statement of, “I don’t know what I don’t know." Also, the assumption that property is covered for “everything” seems to now be a norm.
With the hustle and bustle of the real estate environment, insurance seems to be something that’s not on the forefront of the owner or operator’s mind. And, I don’t blame you! Did you ever wake up in the morning and say to yourself: “I think I’m going to read my insurance policy today!" Probably not. And, even if you did, would you understand what coverage you actually have? That’s when you fall back on your insurance broker to cover your portfolio. It’s very important to understand that there are coverage items that need to be pre-negotiated and aren’t standard on all insurance policies. Often times, these coverages are the most important. Yes, these types of coverages could raise premium, but could also be detrimental to an owner or operator if not included in the policy from the onset. So, have you really done your homework?
Key coverage elements to review for real estate owners and operators include:
- Underground pipes
- Off-premises power failure
- Tenant relocation
- Contingent business interruption
- Water (flood, sewer back-up, seepage)
- Co-insurance (both property and business income)
If you have additional questions on coverages, chat with us anytime.
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