Is property insurance required for commercial properties?

Who are the major commercial property insurance providers? Is it required to close escrow?
In Buying Property - Asked by Justin H. - Apr 21, 2011
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Answer(s)

Rob B.
Chandler, AZ

Justin....
If you own a property free and clear, are not worried about having you back sued and have all the money to burn when you property is destroyed through some casualty, then insurance is not likely required.
However, if there is any concern about protecting your property for yourself, your family and your estate, as well as lenders and others with an interest in the property you can be sure insurance is required for commercial properties. In most cases the lender will want to see a certificate of property insurance in place at the close of escrow.
There are several major commercial property insurance providers. You should contact a good insurance broker to get solid quotes. You may be amazed how a professional in that field can help you save some money on your insurance package.
Onward and upward Justin.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Apr 21, 2011
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Chris R.
Broker/Agent
Denton, TX

If a lender is involved - they will require it. If you own it free and clear and feel comfortable that you have sufficient financial reserves to "self insure" against the various losses that insurance will / would cover - then you are under no real obligation to carry insurance. Property loss is one thing - liability is another if someone is injured or worse and you / your property is sued - the financial risks might be greater than you want to be responsible for.

Apr 23, 2011
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Izzy G.
Owner/Investor
Spring Valley, NY

On your first quetion i think you have your answer already. in regards to your 2nd question, there are a lot of great companies out there, and now is the perfect time to lock in a rate for your insurance, the soft market is coming to an end, and rate are starting to rise. It is important to make sure that your carrier is an "Admitted" insurance company in your state. This will help you in the event that your insurance company denies a claim, or becomes insolvent. The insurance company should have a rating of at least 'A' or better, rated by A.M. Best rating. You could check the company's rating at ambest consumer's website. The size of the insurance company is another important factor to consider. Make sure that they are a big insurance company and have enough money in reserve. You'll find the size on A.M Best. The biggest size is XV. it is very important to use an insurance broker that specializes in your field.

May 9, 2011
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