Renting a Storefront? Do You Still Need Property Coverage?

Businesses operate in a variety of different locations and physical conditions. Some business owners rent the buildings from which they operate from landlords. At times, questions might arise over which party handles the property.

Should something damage the business’s property, landlords and renters must work together to see who covers the damage. This might call the business owner’s and renter’s property insurance into use. So, business owners should make sure they have the right property coverage based on their ownership status.

Property Coverage for Business Renters

If you own a business, and rent your property, you might think you have no responsibility for damage the structure sustains. That property, legally, belongs to the landlord. As a result, you might think you don’t need property coverage for the business. However, nothing could be further from the truth. Most business owners, need property coverage regardless of whether they own their buildings.

If something damages a structure, and a landlord owns the building, then the landlord’s insurance covers the damage. Still, this does not exempt a business itself from needing to carry property coverage. Commercial property insurance generally covers a multitude of other property that does belong to the business. Such covered items might include:

• Business equipment like phones, computer systems, office furniture and manufacturing equipment
• Important company documents and records
• Inventory and stock

And more.

In some cases, landlords require renters to provide coverage for the structure. When you enroll in commercial insurance, ask your landlord if they require you to insure the building. Some insurers offer coverage for rented property in cases like these. As your agent to help you locate a policy that offers appropriate protection.

When Property Damage Occurs at Your Business

Let’s say a severe storm damages your store. It might break windows, cause foundation or roof damage and destroy elements of stock. This is when you pull out your business insurance coverage to see how it addresses your property.

First, work with your landlord to see which party’s policy will cover each element of damage. The policies will likely work in conjunction to cover some or all of the damage. Have the respective insurance providers assess the damage to the property. They can help you estimate the value of the damage. They can then help you determine for which damage you have coverage. They will also guide you through the process of filing a claim and receiving the qualifying funds.