September 23, 2020
If your client owns a rental property for income or investment purposes, they need insurance protection that is tailored to their individual risks. South Western Group provides trusted coverage for this specific class of commercial property owners. Our policy can protect their investment from financial loss resulting from liability, theft, fire, property damage, vandalism and more.
For brokers looking to serve this niche market, this article provides an overview of the hazards business owners may be overlooking, plus tips on how to save time on the application submission process.
What Can Go Wrong
Commercial buildings are susceptible to a broad range of dangers that could incur economic loss for the property owner or manager. Under our policy, the insured receives Broad Form or Named Perils coverage to protect their investment against fundamental hazards that could affect the property, including:
● Fire, smoke, lightning, and explosions
● Windstorms and hail
● Smoke and riot
● Damage from the weight of ice, snow, sleet or falling objects
● Water damage from an accidental leak (e.g. a leaking toilet)
● Accidental damage from an electrical current
● Collapse of the building or any part of the building
● Bursting or overflow of a fixed domestic fuel tank
● Vandalism, theft and break ins
● Impact by vehicles, watercraft or aircraft
What Does SWG Property - Commercial Property Cover?
SWG PROPERTY – Commercial Property insurance is designed to cover hard-to-place property accounts, including rented dwellings occupied by single families, more than one family or student boarding.
We can accommodate most realty-type risks, from stand-alone rentals and vacant dwellings, to large commercial risks, with an in-house capacity of up to $6,000,000.
● Broad Form or Named Perils
● Replacement Cost
● Dependent on individual risk, construction, occupancy and town grade
Other Coverages Include:
● Business Interruption, Rental Income
● Flood, Quake, Sewer Backup
● Mechanical Breakdown
Most realty type risks are written on a “Premises” type form but full CGLs including Tenant’s Legal Liability are available.
Tips for a Speedy and Accurate Insurance Quote
For the underwriter to accurately assess a property’s insurance needs, it is important for the broker to provide as many details as possible when filling out an application. For a speedy submission, brokers should gather relevant information that could factor into a building’s level of risk:
● The property’s location
● How long the applicant has owned the property
● Type of occupancy (single family, multiple families)
● Construction material (e.g. was it built using fire-resistive materials? What year was it built?) and type of structure (e.g. how many stories is it? How many units?)
● What kind of fire protection exists on the property, if any
● Account for systems and appliances used to heat the building (e.g. woodstove, fireplace, electric, central heating, space heaters)
● The age and location of any oil tanks on the property
● Description of any other Liability Exposures
While not every question on the application necessarily applies to every business, it is important to keep in mind that every question on our applications is there for a very specific reason.
We strongly encourage brokers to give as much detailed information as possible, because this enables our underwriters to provide a quote that is specifically customized to the client and their business - with added enhancements that benefit the overall operation and coverage.
Visit our website for more information on how South Western’s tailored insurance policies can meet the needs of your clients.
Content is current as of the date of broadcast and is subject to change without notice.