| NYC Business Group
Does Landlord Insurance Cover Your Small Business?
Typically, a landlord insurance policy does not cover a tenant’s property. Ergo, your business property is at risk if you have not invested in commercial property insurance. Remember, without commercial property insurance, you might be violating your lease agreement! Since landlords do not like taking extra liability or other potential expenses, landlord insurance covers very little.
Whenever you rent a commercial property, consider investing in business renter’s insurance. At times, a business renter’s insurance can be included in a business owner’s policy for renters. With that, you will enjoy the property and general liability insurance.
For small businesses, renter’s insurance is easily customizable. This means that you can find out what your landlord insurance policy covers so that you can choose the risks that aren’t covered.
How Landlord’s Insurance Affect Renter’s Insurance Needs.
Landlord insurance refers to an insurance policy for people who rent the space they own (landlords/renters) to tenants. Usually, a landlord’s insurance will cover property damages emanating from:
- Explosion
- Malicious damage
- Wind/lightning storms
- Fire
Since the insurance policy protects the landlord’s property from these risks, tenants aren’t covered. Therefore, the policy can repair or replace a building’s roof destroyed by a tornado but it cannot replace office equipment destroyed through flooding.
Usually, landlord property insurance limits coverage for damages caused by:
- Outside force e.g. wind, tornadoes, or lightning storms
- ‘At fault’ landlord i.e. if the landlord is at fault. For example, a faulty electrical wiring causes fire
It is crucial to ensure that your renter’s insurance policy covers everything the landlord’s insurance policy does not. Therefore, before signing your lease, familiarize yourself with the risks covered by the landlord’s insurance policy. You should never sign a lease agreement without reading and fully comprehending the landlord’s insurance policy. It is easy to determine the amount of money you need to pay for your business insurance.
Misconceptions about Business Renter’s Insurance.
Most small business owners do not invest in renter’s insurance because they do not understand how it can help them in the long run. Here are three misunderstandings most people have about renter’s insurance:
1. I cannot afford it
This is not true because renter’s insurance is quite affordable. Averaging less than $30 a month, a business owner needs to pay about $350 annually to provide essential business coverage.
2. My building is secure
Although your building might seem secure, investing in a business renter’s insurance is a good idea. Remember, according to studies, rental buildings have a 50% of being burglarized compared to other buildings.
3. I do not own valuable items
Typically, an average person owns about $20,000 worth of valuables. This ranges from computers to phones, furniture, and specialty equipment among others. If you take into account the data you will lose, investing in a renter’s insurance is not a bad idea after all.
Take Away.
Relying simply on Landlord Insurance is not always wise, especially if you own a business in a rented space. Looking for the best options for your situation, can be difficult, and that's what our Agency is here to help you with. Give our office a call today to see if you have the right coverage!