Property Management Blog

Commercial vs. Personal Rental Policies | Dallas Landlord Tips

System - Monday, July 23, 2018

Insurance is an important part of managing a rental property. Today, we’re talking with Mark Roland, who is a commercial agent with Foursquare Insurance Agency. As you begin to accumulate rental properties, you may wonder at what point you should move from having a policy for every property to having a commercial property that covers them all. Is there a difference?

Benefits of a Commercial Insurance Policy When Buying and Selling

A commercial policy allows you to put all your properties on one policy. If you are buying and selling a lot of property and constantly moving your assets, then a commercial policy allows your insurance agent to add and delete those investments while you’re buying and selling. A personal policy will require separate premiums, and the work of canceling and re-writing new policies. It’s more cumbersome, and can also be a drag on your bank account.

Avoiding a Loss of Coverage During Vacancies

The commercial policy also lets you have vacant property. With many personal policies, there’s a reduction in coverage when a home is vacant for 30 or 60 days. If your house is empty or your tenants have moved out and you have it on the sales market, you might lose some coverage. But, a commercial policy will continue to cover your property while it’s vacant. If you bought a house and you’re planning to spend a few months rehabbing it, a commercial policy will allow you that time. Outside of a commercial policy, you’ll need a builder’s risk policy during construction time. It can be expensive.

Keep Your Rental Property Insurance Simple

The commercial policy allows you to have coverage for all of your properties in one place. It protects you from risk and keeps your insurance simple. A commercial insurance policy is also cost effective. With a commercial policy, you’re getting about a million dollars in coverage per home, for a low premium. If you have any questions about rental property insurance or anything pertaining to property management and protecting your assets, please contact us at PMI McCaw. We’d be happy to tell you more.