When you are a business or property owner, or a landlord with at least one commercial condominium unit, getting the right commercial condo insurance is crucial. Insuring a condo unit can sometimes get complicated, particularly if you own just one unit in a building. In basic terms, commercial condo insurance helps safeguard the structure you own or rent. Losses from a variety of sources are covered, including:
Fire Incidents
Robbery/Housebreaking
Theft
Lightning
Wind
There are usually multiple interests when it comes to ownership, liability, and the upkeep responsibility of different parts of the building. There can be confusion about who is responsible for maintenance, security, and insurance, and this might be even more confusing with commercial condos, as opposed to residential condos.
The common question among condo unit renters or owners is, “do we need to have insurance for our condo unit if the owners of the main building already have insurance?” The answer is generally yes, even if you rent the unit instead of owning it. You might start by exploring general commercial property insurance, but you can also explore specialized commercial condo endorsement options that are offered by some insurance companies.
This guide will take you through topics such as:
Who needs to have commercial condo insurance?
What coverage does commercial condo unit owner's insurance provide?
What type of insurance do condo associations need?
How much does commercial condo insurance cost?
Which are the best insurance companies for commercial condo insurance?
When you're searching for the best commercial condo insurance policy, be sure to compare rates to find the right price. A quote comparison will allow you to look at the benefits and drawbacks of different insurance providers so you can pick the right one.
There are different ways commercial condo insurance can protect both condo owners and condo corporations. One of the reasons condo owners should have insurance is to help pay for costs to the building if the condo corporation lacks sufficient funds and insurance. Condominium unit owners' contingent is used in a situation such as the building being damaged by fire, where the corporation is unable to pay for the repairs.
Another way owners can benefit from a commercial condominium insurance coverage is through unit improvements and betterments coverage. This provides coverage for improvements or alterations outside of the standard unit definition. It helps to protect any improvements you have made, as well as any previous owners might have made.
Loss assessment coverage can also provide coverage for any loss or damage assessed back to the unit owner. For example, it could cover costs if someone is injured and the condo association's insurance doesn't cover all of the associated costs.
Condo owners can also take out general business property insurance for their units. This can be used to protect their property, including their part of the building and its contents. Liability insurance extends this protection, helping to cover the cost of things like people getting injured on your business premises.
Here’s a quick summary of what commercial condo insurance can cover based on a person’s affiliation:
1. Association. The master policy of the association includes its common spaces along with other property as specified by the bylaws and the liabilities of the association.
2. Unit Owner. The policy for the unit owner covers both their responsibility and the share of the unit that is allotted by the bylaws.
3. Tenant. The tenant's insurance policy protects their possessions as well as any liabilities they may incur due to their actions. According to a hold harmless and indemnification clause, a lease may also compel the tenant to carry insurance for the unit owner's liability as well as the tenant's property and betterments.
Take this as an example of one of the many benefits unit owners can get out of insuring their condo units.
| Condition | Total Covered Amount | |
|---|---|---|
| Medical payment coverage for a guest (during an accident in the vicinity) | Coverage will offer a sum of money to cover medical expenses related to a visitor's physical harm incurred while on the site. It enables the injured guest to receive payment for their medical bills without having to file a lawsuit against the unit owner to recoup their expenditures. | $5,000 - $10,000 |
In addition to condo unit owners availing of commercial insurance policies, it's essential for condo associations to have insurance. Commercial condo association insurance covers all of the public areas and shared amenities of the condo building. It can provide coverage for building protection and liability. However, even if your condo association has its own insurance (which will be paid for by your service charges), it is still advisable to have insurance as an individual owner of a commercial condo unit.
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Commercial condo insurance policies are very clear about which incidents are covered and which are not, much like any other insurance policy. Unfortunately, property owners or tenants who may not grasp the extremely complex terminology used in their insurance contracts may find it quite challenging to understand coverage under these policies. This frequently confuses them about what is not covered by insurance.
The following are a few of the most typical claims that commercial condo insurance does not cover:
In general, any harm caused to the property that results from improper maintenance is not covered. A commercial condo insurance policy often excludes coverage for damage caused by termites and other insects, corrosion, rot, mold, and normal wear and tear. Furthermore, harm brought on by smoke from commercial or agricultural machinery might not be covered.
Most commercial condo policies don't cover damage to property brought on by natural disasters like earthquakes, mudflows, and sinkholes. However, coverage can be obtained by acquiring an earthquake policy extension especially if the building is situated in a region where these occurrences are frequent.
A business property that was damaged on purpose might not be covered by commercial condo insurance. For instance, if a drunk guest purposely breaks the door or windows of the unit, the insurance company won’t provide any coverage for that incident.
While commercial property insurance policies usually include coverage for water damage, they typically do not include protection for flooding incidents. Thus, policyholders ought to procure a separate flood insurance policy to make sure their property is completely secured against flooding damage. This is especially true for condominiums and business properties along the coast, which are more susceptible to flooding or hurricane-related damage.
The cost of commercial condo insurance coverage will depend on whether you are insuring a condo building as an association or a single unit as an individual owner.
In addition, the worth of all of your company's assets, including your building, will play a significant role in determining how much you'll pay for commercial condo insurance. Other risk-related indicators used to calculate your premium include:
Vicinity-Are storms and other natural disasters common in the area?
Building Construction-Is your structure made of fire-resistant materials? Does it have new or improved plumbing, HVAC, and electrical wiring?
Occupancy-What sector do you work in? In general, a real estate office poses less danger than an eatery or service shop.
Protection From Theft and Fire-How distant are the closest fire station and fire hydrant? Does your building have a sprinkler system and/or fire alarm?
Moreover, many condo associations will purchase a business owner policy, which combines building insurance and liability insurance. This can be a good choice for business owners who own or rent condo units too, helping you to save money by bundling two important types of insurance together. Take a look at some average costs for these types of insurance:
| Monthly Cost | Yearly Cost | |
|---|---|---|
| Commercial property insurance | $42 | $504 |
| General liability insurance | $46 | $552 |
| Business owner's policy | $54 | $648 |
Of course, the actual cost of the insurance for your condo building or unit will depend on several factors. It can be influenced by the size of the property you need to insure, how much coverage you take out, and the location. There are always ways to save money too, including looking for discounts from insurance companies.
To give a quick comparison based on cost, here is the average monthly fee of the top insurance companies in the US in terms of general liability, commercial property, and business owners’ insurance policies:
| Insurance Company/Broker | General Liability Policy | Commercial Property Policy | Business Owners’ Policy | Best for |
|---|---|---|---|---|
| NEXT | $11/mo | $17/mo | $40/mo | Best overall, fastest commercial condo insurance, and the cheapest average cost per month |
| The Hartford Insurance Company | $88/mo | $125/mo | $261/mo | Property claims satisfaction |
| CoverWallet | $83 /mo | $166/mo | $645/mo | Comparing commercial condo insurance quotes online |
| Tivly | $41/mo | $41/mo | $58/mo | Comparing commercial condo insurance quotes over the phone |
| Thimble | $42/mo | $69/mo | $69/mo | Property claims satisfaction |
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When you are looking for commercial condo insurance, you can look at specific policies for condos or more general commercial property insurance. If you're looking for condo association insurance, it can sometimes fall under HOA insurance. Here are some of the top picks for commercial condo insurance to help you find what you're looking for.
Has the most affordable average cost per month
Allows condo owners/tenants to quickly register online thanks to their easy application.
Offers up to a 10% discount on bundled policies
Their digital claim process may be unfamiliar to conventional commercial property owners who opt for paper records.
One of the quickest online quote generators for a business insurance provider is available at NEXT. You'll have three quotes ready for you after answering roughly 10 minutes worth of questions about your commercial property. Then, you can purchase the insurance policy that satisfies your coverage needs online. Moreover, licensed NEXT insurance agents are only a quick phone call away if you require assistance selecting a quote or have any inquiries.
Best for: Best overall, fastest commercial condo insurance, and the cheapest average cost per month
Average cost: $11 per month
Our rating: 10/10
Compare commercial condo insurance quotes for the best price
Arrange and manage your insurance online
Cancel without extra fees
Insurance broker (not an insurance provider)
Compare quotes with CoverWallet to get the insurance you need for your condo unit or building. You can quickly see the best rates and choose an insurance company and policy that works for you.
Best for: Commercial condo insurance quotes comparison online
Average cost: $83 per month
Our rating: 10/10
Provides an easy and convenient claim process
Offers excellent customer service and faster response to queries
Assists property owners in getting the most cost-efficient commercial property insurance policy
Sudden price increase on some of their policies
The Hartford can assist you in choosing the ideal commercial condo insurance coverage for your property. Whether you've stuffed it with pricey electronics or priceless artwork, they will help you safeguard what matters most to you.
Best for: Property claims satisfaction
Average cost: $88 per month
Our rating: 10/10
Provides a simple quote procedure
Teams up with more than 200 providers
Helps you find the best commercial policy that perfectly fits your needs
Lacks sufficient tools for handling several policies from various providers
The professional agents at Tivly can assist you in obtaining building insurance quotes and cover for your small business from the most suitable insurance provider.
Best for: Comparing commercial condo insurance quotes on the phone
Average cost: $41 per month
Our rating: 10/10
Has an easy sign-up and quote procedure
Provides small business owners with flexible policy options
Offers scalable insurance plans
Customer service support is only available online, and not through phone
Businesses that want quick or temporary coverage can benefit from Thimble. Thimble is particularly helpful for business owners who employ contractors because you can use it to specify what insurance is needed for the people you're hiring and enable them to buy it through Thimble.
Best for: Providing bundle insurance policy deals
Average cost: $42 per month
Our rating: 10/10
Offers condo association insurance
Provides a range of business insurance options
Lots of experience in insuring businesses
Not available in Alaska and Hawaii
This well-known insurance company is a good pick if you're looking for condo association insurance. They also offer other business insurance, including business owner policies and business property insurance to help you protect your business.
Best for: Condo association insurance
Average cost: $100 per month
Our rating: 8/10
Condo association insurance and business property insurance available
Customize your insurance to meet your needs
Easy to get additional business coverage
Discounts only available in select locations
State Farm can also help you to insure your condo association or your commercial condo unit. They have a great range of options for customizing your policy so that you can get exactly the coverage that you need.
Best for: Customizable insurance
Average cost: $110 per month
Our rating: 8/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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