INSURANCE NEWS & INSIGHTS

Older commercial and rental buildings should pay particular attention to Ordinance or Law coverage. After a major covered loss, current building codes may require improvements that did not exist when the property was originally constructed. Examples can include: Electrical upgrades Plumbing upgrades Sprinkler systems Accessibility requirements Structural changes Energy-code requirements Standard property coverage may not…

Commercial property insurers increasingly evaluate roof: Age Material Condition Updates Maintenance Previous losses Insurance companies may request: Roof invoices Inspection reports Photos Contractor documentation Proof of replacement Older roofs may result in: Higher premiums Larger deductibles Actual Cash Value settlement Roof exclusions Coverage restrictions Declination Keep documentation whenever a roof is replaced.

Vacancy is one of the biggest insurance issues for property owners. A commercial or residential landlord policy may contain significant vacancy restrictions. A building that becomes vacant may have reduced or restricted coverage for certain losses. Examples can include: Vandalism Water damage Theft Glass breakage Sprinkler leakage depending on the policy. If a building becomes…

If a building is undergoing major renovation, the normal property policy may no longer be appropriate. Major projects may require: Builders Risk Insurance Builders Risk may protect qualifying property during: New construction Major renovation Building additions Rehabilitation projects Property owners should notify the insurer before major construction begins.

Standard commercial property, landlord, and homeowners policies generally should not be assumed to cover flood. Flood can include external rising water and certain surface-water events. A separate flood policy may be necessary. Property owners should consider flood insurance even when a lender does not require it. Read more:FEMA — National Flood Insurance Program

Water backup through: Sewers Drains Sump systems may require special coverage or endorsement. This is particularly important for: Apartment buildings Basement units Commercial buildings with basements Restaurants Retail properties Multi-family properties Do not assume every type of water loss is automatically covered.

Commercial buildings often contain expensive mechanical and electrical equipment. Equipment Breakdown coverage may help address qualifying accidental breakdowns involving equipment such as: Boilers HVAC systems Electrical systems Refrigeration Mechanical equipment Commercial property owners should review whether their policy includes this coverage.

Insurance companies often request Loss Runs when quoting commercial real estate. Loss runs show prior claims, including information such as: Date of loss Type of loss Amount paid Amount reserved Open claims Closed claims Underwriters frequently review several years of prior loss history. Frequent: Water losses Fire losses Liability claims Slip-and-fall claims Roof claims Theft…

Insurance companies may consider: Building replacement cost Square footage Construction type Building age Roof age Electrical system Plumbing HVAC Sprinkler system Fire alarms Central station alarms Distance to fire hydrant Distance to fire department Occupancy Tenant type Vacancy Claims history Geographic location Crime exposure Flood exposure Severe-weather exposure Number of units Rental income This is…

Illinois has specific rules for security deposits, particularly for residential properties containing five or more units. Under the Illinois Security Deposit Return Act, when a landlord of a qualifying property intends to withhold security-deposit money for property damage, the landlord generally must provide the tenant with an itemized statement of damages within: 30 days after…