Commercial Property Insurance for Landlords:

Commercial property insurance is sold by:

• Independent insurance brokerages, like Savon Insurance Brokerage, that represent multiple insurance companies and can compare coverage options and prices for you
• Captive agents who represent a single insurance carrier
• Direct insurance companies that sell commercial policies online or by phone

Because commercial property coverage is more complex than a personal home policy, it is often best to work with an independent broker. Savon can place coverage with several different commercial insurance carriers, explain the differences in policy forms, and help you build a property program that actually matches your building, your lease agreements, and your business needs.

Commercial property insurance is written by insurance companies that specialize in commercial lines. These can include:

• Large national insurers with dedicated commercial property divisions
• Regional carriers that focus on certain states or industries
• Specialty companies that handle higher risk properties or certain types of occupancy (like hospitality, manufacturing, or habitational risks)

As a business owner, you typically do not contact all of these insurers one by one. Instead, you work through a broker such as Savon Insurance Brokerage. We work with a network of commercial property insurers, present your building and operations to them correctly, and bring back quotes from carriers that fit your risk profile and location.

Who pays for building insurance on a commercial property usually depends on who owns the building and what the lease agreement says.

• If you own the building and occupy it, you are usually responsible for the commercial property insurance on the structure, as well as coverage for your own business contents.
• If you are a landlord leasing space to tenants, you typically insure the building and common areas. Your tenants insure their own business personal property and sometimes tenant improvements.
• If you are a tenant, your lease may require you to pay a share of the landlord’s building insurance as part of CAM (common area maintenance) charges, or it may require you to carry a tenant policy that covers improvements and glass.

Leases can also require certain minimum property limits, loss of rent coverage, or additional insured status. Savon Insurance Brokerage can review your lease and help clarify who should insure what, so there are no dangerous gaps between landlord and tenant responsibilities.

You need commercial property insurance if you:

• Own a commercial building such as an office, retail center, warehouse, restaurant, or motel
• Lease space but have valuable business personal property like inventory, machinery, furniture, or computers
• Have tenant improvements and betterments you paid for, such as custom build outs or fixtures
• Rely on a physical location to operate your business or store your equipment

Even if you do not own the building, commercial property insurance is important. A fire, theft, storm, or burst pipe can destroy your inventory and equipment. Without property coverage, your business may not have the funds to recover.

Savon can help building owners, landlords, and tenants identify exactly which buildings, improvements, and contents need to be insured, and then tailor commercial property coverage to those exposures.

You can get commercial property insurance:

• Through an independent brokerage like Savon Insurance Brokerage, which can shop multiple insurers for you and explain coverage options
• Through captive agents of a single company that sells commercial property policies
• Directly from some online insurers that provide simple commercial packages

Because commercial property policies can be customized with different limits, coinsurance clauses, valuation methods, and extensions, it is smart to use a broker who understands the details. Savon will gather information about your building, contents, operations, and leases, and then approach several commercial property insurers to secure the right blend of coverage and cost.

The cost of commercial property insurance varies widely. It depends on:

• The value of the building and the cost to rebuild it
• The value of your business personal property
• Your location and exposure to weather, crime, and catastrophe risk
• The construction type, age, and condition of the property
• The occupancy (what the building is used for)
• Your deductible and policy limits
• Previous claims history

A small office condo in a low risk area will have a very different premium than a large frame constructed hotel in a hurricane zone. Some businesses pay a few thousand dollars per year for basic commercial property coverage, while larger or higher risk properties can pay much more.

The most accurate way to understand your cost is to request a custom quote. Savon Insurance Brokerage can take your building details, current limits, and coverage needs and return real numbers from multiple insurers instead of relying on generic averages.

Commercial property insurance is often referred to as:

• Commercial Property Insurance
• Business Property Insurance
• Commercial Building Insurance
• Part of a Commercial Package Policy (CPP)
• Part of a Business Owners Policy (BOP) when bundled with liability and business income

All of these terms describe coverage that protects a business’s physical assets, like buildings, improvements, equipment, inventory, and furniture, from covered causes of loss. The exact label on your policy is less important than what it covers. Savon helps you look beyond the name and understand the actual property coverage form being used for your business.

Commercial property insurance typically covers business owned physical assets against a list of covered causes of loss. For most businesses, this includes:

• Buildings you own, including structures, foundations (subject to policy language), fixtures, and sometimes permanently installed machinery
• Business personal property such as furniture, inventory, stock, equipment, computers, tools, and supplies
• Tenant improvements and betterments you have paid for if you are a tenant
• Outdoor property such as signs, landscaping, and fences, often with specific limits

Covered causes of loss often include:

• Fire, lightning, and explosion
• Certain types of water damage from burst pipes or sprinkler leakage
• Windstorm, hail, and some weather related losses (with variations by location)
• Theft and vandalism
• Smoke, vehicles, and aircraft

Commercial property insurance can also be endorsed to include:

• Business income and extra expense
• Equipment breakdown
• Spoilage, glass, and more

Savon Insurance Brokerage can show you what your current policy covers and suggest changes to better match your business’s actual property exposures.

Commercial property insurance covers direct physical loss or damage to your insured property from covered causes of loss. In plain language, that means it helps pay to repair or replace:

• The building or structure you insure
• Business personal property inside or near that building, such as inventory, furniture, machinery, and stock
• Some limited outdoor property, depending on the policy and endorsements
• Tenant improvements and betterments you have installed as a renter

It responds when a covered event happens. For example:

• A fire damages your warehouse
• A lightning strike causes electrical damage
• A windstorm tears part of your roof and rain damages contents
• A burst pipe floods your office and ruins flooring and equipment
• Thieves break in and steal computers and inventory

Commercial property insurance does not cover every possible risk. Flood, earthquake, wear and tear, mechanical breakdown, and intentional damage are common exclusions and usually require separate or additional coverage. Savon will help you identify those gaps and, where needed, add flood insurance, earthquake coverage, or equipment breakdown insurance to your commercial program.

Commercial property insurance is coverage that protects the physical assets of a business. It is the business equivalent of property coverage for a home, but designed around the way companies use buildings and equipment.

A commercial property policy:

• Insures buildings, business personal property, and sometimes loss of income
• Responds when events like fire, theft, vandalism, or certain weather events cause physical damage
• Can be written on its own or combined with liability coverage in a package or Business Owners Policy

This coverage is essential if your business owns or leases physical space, uses expensive equipment, keeps inventory, or stores customer property. Savon Insurance Brokerage specializes in helping business owners understand and customize commercial property insurance so it truly reflects the property they rely on.

To get commercial property insurance for your business:

1. Gather basic property information
   You will need details such as the address, square footage, year built, construction type, roof age, fire protection features, and any prior losses.
2. List your business personal property
   Estimate the replacement value of your inventory, equipment, furniture, and other contents.
3. Contact an independent broker like Savon Insurance Brokerage
   Share your property and business details. We will identify what type of commercial property policy you need and which insurers are a good fit.
4. Review quotes and coverage options
   We will present quotes from one or more commercial carriers, explain coverage differences, and recommend limits, deductibles, and endorsements.
5. Bind coverage and receive proof of insurance
   Once you choose an option, we finalize the policy, help you provide certificates to lenders or landlords, and support you if you need to make changes later.

Getting commercial property insurance should not be overwhelming. Savon handles the technical underwriting questions and brings you clear, plain English options to choose from.

The cost of commercial property insurance depends heavily on your specific building and business. Some small offices and retail shops may pay a relatively modest premium, while large, older, or higher risk buildings can see much higher costs.

Your premium is influenced by:

• Building replacement cost and square footage
• Construction type (frame, masonry, fire resistive)
• Occupancy (office, restaurant, warehouse, motel, manufacturing, etc.)
• Location, including weather risk, crime, and distance to fire services
• Deductibles and coverage extensions
• Claim history and loss prevention measures

Instead of guessing, it is best to get quotes based on real property data. Savon Insurance Brokerage will take the time to understand your commercial property, then bring back pricing options from multiple insurers so you can see what commercial property insurance actually costs for your business.

Commercial property insurance is usually calculated based on:

• The insured value of the building (often replacement cost)
• The insured value of your business personal property
• The rate per 100 dollars of value, which reflects the risk level of the property
• Any additional coverages and endorsements you add
• Credits or debits based on construction features, fire protection, and loss history

In simple terms, insurers apply a rate to the value of the property. That rate changes depending on:

• Construction (brick vs frame)
• Protection (sprinklers, alarms, nearby hydrants)
• Exposure (near water, in a high crime area, in a wildfire or hurricane zone)
• Occupancy (a bakery with ovens is different than a professional office)

Deductibles, coinsurance clauses, and special coverage forms can also affect the premium. Savon works with the rating information from each carrier and can explain how your building’s characteristics and your coverage choices are driving the commercial property insurance premium you see.

Many motels and hospitality properties can be eligible for commercial property insurance, including coverage through certain residual market or state backed insurers in specific states. Whether a motel can be covered under a program like Citizens (for example, in a state such as Florida) depends on:

• The state program’s current eligibility rules
• The type, size, and construction of the motel
• The availability of coverage from other admitted insurers in the standard market
• How the property is used and maintained

Because program rules and availability change over time, the best way to know if your motel can be insured through a specific state backed commercial property program is to work with a licensed agent who writes business with that program.

Savon Insurance Brokerage can review your motel’s location and features, check available commercial property markets, and help you understand whether a standard carrier, surplus lines carrier, or state backed program is the best fit for your risk.

You can get commercial property insurance from:

• Independent agencies and brokerages like Savon Insurance Brokerage
• Regional and national commercial carriers that write property coverage
• Specialty wholesalers and surplus lines markets, accessed through a broker, for higher risk or unique properties

Working with Savon means you do not have to chase each insurer yourself. We act as your single point of contact, gather the information once, and then approach the right commercial property markets for your building and operations. We bring you multiple options whenever possible and help you pick the best balance of coverage and price.

Commercial property insurance rates are calculated based on a combination of:

• Base rates for your territory and construction type
• Occupancy factors that reflect your industry and operations
• Protection factors such as sprinkler systems, alarms, and fire departments
• Exposure factors such as proximity to other buildings, water, and catastrophe zones
• Loss costs and historical claim experience for similar risks

Insurers use these elements to develop a rate per 100 dollars of insured value. That rate is then multiplied by your building and contents values to calculate a base premium. Additional credits or surcharges may be applied for things like good loss control, high hazard processes, or prior claim frequency.

Savon Insurance Brokerage understands how underwriters look at these factors and can often help you present your property in the best light, highlight risk improvements, and negotiate better commercial property insurance rates where possible.

Many business owners are seeing rising commercial property insurance rates. There are several reasons:

• Higher construction and repair costs: Labor, materials, and contractor pricing have increased, so claims cost more to settle, especially for total or major partial losses.
• More frequent and severe weather events: Hurricanes, wildfires, severe convective storms, and hail have caused significant commercial property losses in many regions.
• Reinsurance costs: Insurers buy reinsurance to protect themselves from large catastrophes. As catastrophe losses grow, reinsurance becomes more expensive, which pushes commercial property rates higher.
• Aging buildings and infrastructure: Older roofs, systems, and structures can lead to more water and fire losses, especially when maintenance has been deferred.
• Inflation and updated valuations: Many carriers have increased building values to better reflect actual replacement costs, and higher values mean higher premiums.

Even businesses with clean claim histories can be affected by these broad trends. Savon Insurance Brokerage can help you respond to rate increases by reviewing your limits, deductibles, and coverage, identifying credits and improvements, and shopping your commercial property risk with multiple carriers to keep your program as competitive as possible.