How to Buy Building Insurance

Buying building insurance is not only a smart business decision in order to protect your property, it is usually a condition to getting a mortgage on the building. Your lender might recommend a particular insurance company to use, but you do not have to use their choice. You might find a much better deal by checking with different insurance companies. Below are some things to take into consideration when looking into the purchase of commercial building insurance.


  1. Image titled Become an Adoption Consultant Step 2
    Hire a certified professional to evaluate the worth of your building. This person will take outside factors such as location and highway access into consideration when determining the value of your building.
  2. Image titled Buy Building Insurance Step 2
    Make an inventory of items inside the building that must be insured. For instance, the owner of an apartment building that supplies kitchen appliances and/or laundry facilities should have them insured against catastrophic loss. Add in floor coverings and light fixtures as well as any other amenity provided that could be destroyed by forces beyond your control.
  3. Image titled Buy Building Insurance Step 3
    Look into the costs of insurance for "Lost Rental" income that a landlord often faces when tenant are barred from the property due to an insured loss, a process that can literally take months. This can be very helpful if you have a small apartment building and count on the rental income each month.
  4. Image titled Buy Building Insurance Step 4
    Make sure your tenant in a commercial building used as a retail outlet is carrying enough insurance to cover the fixtures and inventor. You will be responsible for the structure and any permanent fixtures.
    • This same requirement is needed if your commercial building is an office complex, the tenants will need to carry rental insurance to cover their personal property, but you will need coverage for the permanent installations as well as the building itself.
  5. Image titled Buy Building Insurance Step 5
    Make sure that all of your insurance quotes include liability insurance. This is necessary whether you are an owner occupant or a landlord.
  6. Image titled Buy Building Insurance Step 6
    Check to see if you need extra riders for a catastrophic weather event such as a tornado or hurricane. Some areas require flood insurance which is not included on most insurance policies, so make sure you find out if you need it. You can find out about the necessity for flood insurance from your real estate agent or the local government.
  7. Image titled Buy Building Insurance Step 7
    Make sure you have a separate flood insurance policy. Also make sure that there is coverage for accidents like a clogged pipe or overflowing toilet.
  8. Image titled Buy Building Insurance Step 8
    Look into "Loss of use" insurance now offered by many commercial property insurers. It pays for the rental of a new facility while covered repairs are being made to your building.
  9. Image titled Buy Building Insurance Step 9
    Make sure that your plumbing, electricity, heating and air conditioning are all up to code. Make any repairs to the exterior of the building, such as tuck pointing, replacing or repairing siding and the roof before calling the insurance agents. A building that is in good repair is much less likely to have accidents such as electrical fires which in turn means a lower premium.
  10. Image titled Buy Building Insurance Step 10
    Ask for bids from at least 3 different commercial building insurance companies. Compare policies to make sure that all offer the coverage you need. Sometimes you can save money by combining building insurance with content, inventory and liability insurance, but sometimes it's less expensive to use different companies for each type needed.


  • Building insurance covers only the building itself, not the land on which it sits, so don't pay a premium for land value.

Article Info

Categories: Insurance