Commercial Property Insurance

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In the state of Texas. I am the Lessor and am looking to bind a triple net lease, but the lesee refuses to insure the property itself. ok, cool M D that's what I thought. The property is mine and I am trying to lease to this guy under a triple net lease, but the jerk wants me to keep insurance on the property and he insures on ly his personal property. What gives. You got an e- mail where we can chat about this or messenger?

Best Answer

I am a commercial real estate broker. You pay the taxes, insurance and CAM, but you collect from the Lessee a fee commonly referred to as "pass thru costs" and set that on a per foot basis. If they occupy 500 SF and the pass thru runs $3.00 PSF, then they pay $1500.00 annual figure divided by 12 to get monthly, which is in addition to the rent. The Lessee typically secures their own Tenant Policy which covers their personal property and a liability portion that covers their customers, clients, employees and/or visitors in the event of an accident. It is your responsibility to insure the facilities and improvements per your lender requirements. Should you wish to secure a quality commercial broker, I have contacts all over the US and likely one in your area that I can have contact you to get your property leased with a quality tenant. Your experience is typical when the inexperienced try to do their own leasing. Usually it is best to have a management firm do all this for a percent fee portion of the rental income. Usually if you set aside the brokerage fee that you saved by doing the deal yourself you will still have insufficient funds to pay for the loss you experienced in vacancy time or other issues. The cost of a quality broker that is insured and could have avoided this situation in the first place is priceless.

I have a ranch with a mobile home that have for lease in Florida. The ranch is zoned commercial is most likely going to be used for a horse business. The owners will probably chose to live in the mobile or have a ranch hand live there. I was wondering how to insure this property. While I don't really care about the home or the structures on the property, I want to make sure that if someone breaks their leg while riding a horse I will not lose the property. Could I require, in a lease that the tenants obtain their own insurance for the property? What if they do not and something happens, will the lease protect me from legal action against the property? What kind of insurance should I, or they, look for? Thanks

Best Answer

I would get Dental Insurance cuz what ifs they falls of there horses and they bust a tooth. Its more happenable that they would bust a tooth than to break a leg. Dos you want to be payin for somebody to be havin tooth work done? I knows I wouldn't.

How much more expensive is it than residential insurance? HELP!!!

Best Answer

The answer depends on what type of property it is. I recommend you contact an independent insurance agent and discuss it with him or her. An independent agent represents numerous companies and with an unique circumstance like you have, they will have options with the different companies. There will be no obligation and they will be able to provide you with the correct answer when they have the details.

Hi, I need some help I am looking to buy commercial property which is already let out long lease what i need to know is there any type of insurance that covers you against the loss of rent and if the tenant does not pay rent if some one please give as much info as possible. Thanks

Best Answer

There is some coverage for businesses that are subjected to unforeseen events which cause their business to be closed or something happens where their customers cannot get to the business to buy goods. This business interruption insurance helps cover the shortfall in earnings. However, I don't think you'll find many commercial policies willing to pay for failure to pay rent. You just need to make sure you carefully check the prior lease/rental history of your potential tenant. There are many services that offer reports on the credit history of businesses.

I just got started in commercial insurance, property & casualty, risk management, workers comp, etc. I have been told I need to find a niche to specialize in and go after it. My goal obviously is to find a market that will compensate extremely well. Thanks

Best Answer

Commissions are all about the same, except for workers comp which stinks for the work you have to put into it. The big key is, finding a niche where you ALSO have a market happy to write it. Many carriers won't touch a hotel/motel. Many won't do gas stations. Pizza shops are too small, manufacturers can be high hazard. Printers are high fire hazard. Governmental entities are hard to place, and there's extreme competition, plus they get shopped out every year. It's hard for someone ELSE to suggest a niche market that you can work in. What has worked for ME, is the video/televison production area. LOL DON'T ask me to share my markets with you!! You'll have to dig up your own, and build your OWN relationships with the underwriters.