Table of Contents
We all know that a home is an asset and investment. A new car will lose value once you drive off the lot, a home however will typically increase in value over time. Purchasing a commercial building yields an even higher return on investment than a residential property. Consequently, it brings forth more potential hazards resulting in significant loss or damage. Therefore, greater attention must be paid to reduce the chance of these losses occurring.
Know Your Tenant
Understanding the tenant’s operations will help to evaluate the potential exposures they may pose to the building. In the same way, it’ll identify what fire protection may be necessary to prevent or eliminate certain damages.
Examples include a remotely-monitored sprinkler system covering 100% of the area so that, in the event of a fire or sprinkler pipe burst, the alarm will sound off-site to notify the owner immediately. Additionally, it is important to ensure that an insured and qualified contractor is regularly maintaining the sprinkler system.
The same applies to fire extinguishers. Not only is it important to have enough fire extinguishers throughout the building, but it is also key to have the proper type of extinguishing system in place and inspected annually.
Just like your personal residence, proper and ongoing maintenance is required. The building’s heating, electrical, plumbing and roof must all be checked and updated regularly with any deficiencies corrected immediately.
Understanding the tenant’s operations will help to evaluate the potential exposures they pose to the building as well as what fire protection may be necessary to prevent or eliminate certain damages.
Protect Yourself from Liabilities
Protecting yourself from liabilities means requiring year-round exterior maintenance. Acknowledging that slips, trips, and falls can occur in any season on any given day. Maintenance can include, ensuring there is sufficient lighting, even surfaces, no cracks or potholes, eliminating excess debris. In the winter, proper snow removal practices should be in place including but not limited to proper snow clearing and salting of all parking and walkway areas and keeping daily maintenance logs. Many building owners subcontract out their property maintenance. A written agreement with a property maintenance contractor should include proof of insurance and the requirement to be named an additional insured. This protects you from any losses that would be a result of the negligence of the contractor due to improper maintenance.
This applies to your tenants as well—all tenants should have written lease agreements in place that clearly state that proof of insurance is required and that you as the landlord/building owner should be added as an Additional Insured. Proof of insurance should be requested of your tenants annually to protect you from any negligence on their part.
Extra Protection for Your Commercial Building
As a commercial building owner, you have specific needs. Unica understands and specializes in those particular needs, which is why we created the Commercial Building Owners Connection™. Commercial Building Owners Connection is specifically for owners of industrial plazas, commercial plazas and office buildings, the Commercial Building Owners Connection offers additional benefits such as:
- Land and Water Pollution Clean Up
- Rental Income Actual Loss Sustained
- Underground Utilities Extension
- Mortgage Rate Guarantee
For information on insuring your commercial property with Unica Insurance, speak to a Broker.
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