Commercial Property Coverage Form. Two Structures

Mar 6, 2016

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  1. insurance1822
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    insurance1822 Guru

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    If I'm looking to insure an rental property that contains 6 units, however it's (1) four unit building + 1 (2) unit building that's on 1 deed. Must you specify building coverage for both "locations" or can they fall under 1 location dwelling limit because they're within 100 ft of eachother?
     
  2. nyc2phi
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    nyc2phi Guru

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    Do they both have the same address?

    It would be location 1 building 1 and location 1 building 2.
     
    nyc2phi, Mar 6, 2016
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  3. cola2001
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    cola2001 Expert

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    Separate locations either way. If same address, then Loc #1, Buildings #1 and #2. If different address, then Loc #1, Building 1 and Loc #2, building #1.
     
  4. NYR85
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    NYR85 Expert

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    Might depend on the carrier, I just wrote two buildings with different addresses on the same lot and they're under one limit. Where's the property?
     
    NYR85, Mar 7, 2016
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  5. tpowell138
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    tpowell138 Expert

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    Yeah depends on the carrier... However you only talking about two buildings. Just list them individually.
    If you had 5+ buildings I would combine all of the SQFT, replacement cost to one number and make sure the UW know the number of buildings and units.
    If they are uniform buildings that also helps.

    Remember not to calculate you cost per sf by diving total unit sf by replacement cost. Its going to cost more per sf to rebuild 5 buildings then it would one large building.
     
  6. Indiana_Adam
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    Indiana_Adam Guru

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    That would be writing it incorrectly and an E&O claim waiting to happen. Of course that is fine until there is a claim and then you have to contend with co-insurance. If there are 5 buildings, you write it with 5 buildings. Do it right or pass on the business, ad it isn't worth the risk.
     
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