Did you know that if you own a 5 family building, it should be insured as a commercial lines insurance product even if you own the building in your personal name, or under a trust, or a corporation name? If you experience a loss due to fire, flood or other such unfortunate event and have a commercial lines policy you are eligible to receive money for the loss of rents during the time of repair for a covered loss. This means that while you are rebuilding, your current tenants are unable to remain in the building and will not be paying you rent or may find another place to live. Without this income, paying your mortgage, insurance, taxes and other monthly bills may be quite difficult.
A commercial lines policy will pay you the rent that you would normally get with provided proof that the units were rented at the time of loss. You don’t want to find out the hard way that you aren’t properly insured. If you have questions about your insurance coverage call your current agent or stop by any of our eight FBinsure offices or call us at 1-800-734-6604.