Insurance for mixed-use buildings.

One policy for a building with shops or offices at street level and apartments above: property, loss of rents on both rent rolls, and liability written for the storefronts and the units alike.

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What mixed-use building owners usually carry

Building at replacement cost
Loss of rents, residential and commercial
General liability, $1M / $2M
Umbrella
Ordinance or law
Equipment breakdown

Watch for these in a mixed-use policy

A kitchen downstairsA restaurant on the ground floor changes the fire risk for every apartment above it. Carriers ask about hood suppression and cleaning, and some limit the cooking they accept.
The residential shareMany carriers decide eligibility by how much of the building is residential. Report the split of units and square footage accurately, or the policy may not fit the building.
Habitational exclusionsThe apartments bring the exclusions landlords know: assault and battery, animals, habitability. Read them even when the storefronts pay most of the rent.
Tenants serving alcoholA bar or restaurant tenant that serves alcohol should carry liquor liability naming you, so claims from its customers stay on its policy.
Code upgradesMixed-use buildings are often old. Ordinance or law pays for the code upgrades a rebuild triggers, which the base property form covers only in a small amount.

What lenders and commercial tenants ask mixed-use building owners for

Both rent rollsLenders ask for loss of rents that counts the commercial and the residential rent together.
Waiver of subrogationCommercial leases often call for a mutual waiver on property damage.
Shared entrancesCommercial tenants may ask to be named on your liability for the sidewalk and the doors they share with residents.
Earthquake or floodLenders in quake or flood zones ask for separate policies, since the property form excludes both.

Questions mixed-use building owners ask

Straight answers.

The questions we hear most, answered plainly.

Can apartments and stores be on one policy?

Usually, yes. One package can cover the building, both rent rolls, and liability for the whole address. Some carriers accept only certain mixes, which is why we ask what the storefronts are.

What if a storefront sits empty?

Tell us. An empty storefront does not make the building vacant when the apartments are rented, but it changes your rent loss and can affect the rate.

Is earthquake damage covered?

Not by the standard property policy. Earthquake is written separately, usually with a deductible that is a percentage of the building’s value. Older brick buildings are where it matters most.