Generally speaking, some habitational risks are covered under business insurance. However, in the case that the business is actually a commercial residential property, not all liabilities are addressed. A general insurance policy extends coverage to losses occurring as a result of explosions, smoke, hail, windstorms, fire, or vandalism. While these are not comprehensive situations, a general policy will not address the losses or situations dealing with the people that reside in the structure.
Extending Coverage Opportunities
Condominiums, apartments, duplexes, or rented homes can all count as habitational property. Since there is a complex owner-tenant relationship involved, it limits the application of a standard business insurance policy. Habitational insurance is a blend of both business and homeowners’ insurance, taking care of losses that occur on either the inside or exterior of the structure. Liability coverage is extended to tenant injury, as well as their personal belongings.
Though property damage and personal injury are strong coverages, it may be worth considering extending coverage into other problematic areas. Not all policies have these additional inclusions, so it is best to evaluate your options carefully. Consider looking into the following:
- Loss of rental income
- Accounts receivable
- Equipment breakdown
- Water damage
- Errors and omissions
- Public liability
With habitational insurance, you receive help coving the costs of legal fees and medical bills for tenants injured on the property. You also receive assistance with repair or replacement for damages or losses. Anyone who owns a rental property should consider purchasing this protection.