Insurance for office buildings.

Property, loss of rents, and liability for owners of single-tenant and multi-tenant office buildings, with the lease terms and tenant certificates that decide whose policy pays when something goes wrong.

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What office building owners usually carry

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

Watch for these in an office building policy

Partly leased floorsMost property forms treat a building as vacant unless at least 31% of its square footage is rented and in use, or used by you. An office building that loses two big tenants can cross that line.
CoinsuranceIf the building limit is below 80% or 90% of rebuild cost, a partial loss is paid short in proportion. Agreed value lifts that penalty for the agreed period, usually the policy year.
Tenant build-outsThe lease decides whether you or the tenant insures improvements the tenant paid for. When each side assumes the other did, nobody did.
Elevators and chillersMechanical breakdown is excluded from the property form. Equipment breakdown covers elevators, chillers, and switchgear, and can include the rent lost while they are down.

What lenders and tenants ask office building owners for

TerrorismIt is offered separately on most commercial policies, and many lenders on office buildings require you to take it.
Waiver of subrogationMost office leases include a mutual waiver. Standard property forms allow one when it is signed before the loss.
Common areasLarger tenants may ask to be named on your liability for the lobby, the garage, and other shared space.
Loss of rentsLenders usually ask for 12 months, sized to the rent roll plus the expense charges tenants pay you.

Questions office building owners ask

Straight answers.

The questions we hear most, answered plainly.

How is office building insurance priced?

Property is priced on rebuild cost, construction, sprinklers, roof age, and location, and a restaurant tenant pushes it up. Liability for a building you lease out is usually priced on square footage.

Should my tenants carry their own insurance?

Yes. Leases should require liability naming you as additional insured, usually on CG 20 11, plus coverage for their own contents and build-out. Collect a new certificate at each renewal.

What happens if a big tenant leaves?

Tell us. Your rent loss limit may need to change, and if occupancy drops far enough the vacancy condition can apply. A vacancy permit can keep coverage in place while you re-lease.