Commercial Property Insurance for commercial landlords

We strongly recommend replacement cost so a loss rebuilds your building new, not depreciated. Underinsuring on an actual-cash-value basis can leave you tens or hundreds of thousands short after a major fire — and many lenders require replacement cost anyway.

It can and should. Business-interruption / loss-of-rents coverage pays the rental income you lose while the building is being repaired after a covered loss. We size the restoration period to your real rebuild timeline so your cash flow survives a major loss.

After a partial loss, current building codes often force you to rebuild to a higher standard than the original structure — triggering costs a basic policy won't pay. Ordinance-or-law coverage pays those code-upgrade costs. For older commercial buildings it's essential.

Sudden damage from a covered peril (wind, hail) is covered; wear-and-tear and maintenance issues generally are not. We help you document roof condition and age and place carriers that handle roof claims fairly, especially on older commercial roofs.

The limit should equal the full replacement cost of the building — what it would cost to rebuild, not the market value or tax value. We help you calculate replacement cost correctly so the building is fully insured without overpaying on premium.

Damage from a covered peril — including a tenant-caused fire — is covered under commercial property, and the tenant-caused-loss angle is reinforced by your LRO program. We coordinate the two so the building is protected regardless of cause.

Premium reflects construction type (frame vs. masonry), protection class (fire protection), occupancy / tenant mix, building age and condition, and replacement cost. Good housekeeping, alarms, and documented protection improve both terms and price.

Most commercial building owners pay $750–$2,500 a year for base Lessor's Risk Only, with the full program (LRO, property, equipment breakdown, umbrella) running $2,500–$9,000. Cost depends on building value, construction, tenant mix, and location. We quote the full program in about 15 minutes.

Yes. Contractors Choice Agency is licensed in all 50 states and writes lessor's-risk and commercial property programs from the Sun Belt and Texas to the Northeast, Midwest, and West Coast.

About 15 minutes for a standard program. Once bound, we turn around certificates of insurance and additional-insured endorsements for lenders, tenants, and partners — usually within minutes.

LH-1 is the ISO class code for a Lessor's Risk Only building — a commercial property leased to tenants where the owner's only occupancy is as a landlord. Correct LH-1 classification keeps premium fair and ensures claims aren't denied for misclassification.

Yes — that is the central purpose of Lessor's Risk Only. If a tenant's operations cause a fire that damages the building or other tenants, LRO covers the owner's property loss and liability. Generic policies often mishandle this exact exposure.

Standard commercial property excludes internal breakdown. We add equipment-breakdown (boiler & machinery) coverage so failed HVAC, boilers, chillers, elevators, and electrical panels are covered, including the resulting business-interruption loss.

Most carry $1M/$2M on liability with a $2M–$5M umbrella, and property limits equal to the building's full replacement cost. We size limits to your building value, tenant exposure, and lender requirements.

If you or your maintenance crew drive company vehicles between properties, yes — personal auto excludes business use. We also add hired/non-owned coverage if employees drive personal vehicles for property work.

Often, yes. We have excess-and-surplus (E&S) and specialty markets for buildings with loss runs, high-hazard tenant mixes, older construction, or other exposures that standard markets decline.

Yes — your lease should require every tenant to carry general liability and name the building owner additional insured on a primary, non-contributory basis. We provide a sample lease clause and help track certificates.

You reach a person with context, not a queue. We respond within 2 hours, help you document the loss, and manage the claim with the carrier so it's paid correctly and your building keeps operating.

Commercial property leased to tenants has a specific risk profile that generic carriers exclude or misprice. A specialty broker knows the LH-1 class code, the markets that write each tenant mix, and how to manage a tenant-caused claim.