Mixed-Use Property Insurance: A Broker’s Guide From Distinguished

June 23, 2023 / Distinguished

Cities are getting smaller. Not because there are fewer people there (the opposite is true in most cases) or because there is less investment, but because cities are embracing density through an increase in mixed-use properties.

For instance, in Nashville, nearly 1 in 5 new apartment buildings built between 2012-2021 were classified as mixed-use. Plus, with initiatives like 15-minute cities only getting more popular, this trend doesn’t seem likely to slow anytime soon.

What this means for insurance brokers is that you’re far more likely to get more mixed-use property insurance customers than you did in the past. This guide will briefly explain this type of insurance: outlining what it is, what it covers, and why Distinguished can help you get your clients the best possible insurance coverage.

What Are the Most Common Mixed-Use Property Exposures?

Since mixed-use properties are simply a building with both residential and commercial elements, the most common claims are quite similar to what you’d see in other buildings.

With our mixed-use clients, we frequently see claims for:

Fire damage
Slips and falls
Water damage
Wind and hail damage

One differentiator for mixed-use buildings is their comparatively larger volume of foot traffic. With both tenants and customers frequenting these spaces, there’s a higher likelihood of any of these exposures resulting in larger or more frequent claims.

Your clients can manage this problem through a smart mix of training and preventative measures focusing on high-traffic areas like hallways, sidewalks, and more.

What Does Mixed-Use Property Insurance Cover?

Due to their flexible nature, mixed-use properties generally require many types of coverages to handle the insurance needs of a residential and commercial building. For instance, here is everything included in Distinguished’s City Insurance Program.

Commercial property insurance: Covers damage to the building or property in the commercial units
Flood insurance: Covers flood damage to the property
Earthquake insurance: Covers property damage caused by an earthquake
Ordinance or law: Covers costs of bringing a building up to code after all or part of it is damaged
Backup of sewers and drains: Covers damage caused by a backed-up sewer or drain
Equipment breakdown: Covers replacement costs for building equipment like ACs or heaters
Terrorism coverage: Covers damages to property after events certified as a terrorist attack by the U.S. Department of the Treasury
Commercial general liability: Covers property owners in cases where bodily harm or property damage happens on the premises
Hired and non-owned automobile coverage: Covers liability issues when a leased or employee-owned vehicle is involved in a crash while on the job
Crime insurance: Covers property owners from criminal activities like theft, forgery, or alteration perpetrated by employees
Employee benefits liability: Covers property owners when employee benefits are affected by an error or omission

For owners who live in the building themselves, they can also add the following coverage options:

Personal Liability Insurance: Liability insurance that covers incidents that happen in the owner’s unit
Personal Contents Coverage: Property insurance for the physical assets housed in the owner’s unit
Additional Living Expenses Coverage: Coverage for expenses incurred when the landlord needs to leave their unit due to a covered issue

How Much Does Mixed-Use Property Insurance Cost?

The cost of premiums for this type of insurance heavily depends on several factors unique to each building. For this reason, there’s no way to give a proper estimate or price range that would be helpful to you or your clients.

However, here is a list of major factors that we consider when determining the price of an insurance policy.

Building values: How much the property is worth
Maintenance practices: How well the property is looked after
Prior losses: The previous claims linked to this property
Risk management practices: How the property mitigates risks currently
Commercial occupants: The type of business occupants in the building and the unique exposures they bring
Owner experience: Whether the building owner has a history of managing their buildings well

If you’re interested in getting a quote for your client’s mixed-use property, you can do so by registering your agency and then submitting the necessary documentation online through our broker portal. You can expect an insurance quote in 1 or 2 working days.

Why Choose Distinguished for Your Mixed-Use Property Clients?

Partnering with Distinguished means you’re going to be working with an insurance provider with more than 35 years of experience in insuring real estate properties. Beyond this, you can also expect the following.

Specialized coverage: We offer tailored coverage suitable for mixed-use properties common in cities across America.
Repair services: We’ve partnered with Sedgwick to provide your clients with a trusted network of contractors for all repairs and renovations.
Access to our online portal: Submit business easily through our online portal so you can get your client quotes back quicker and with less hassle on your part.
An A-rated carrier: Our coverage is supported by Zurich, one of the nation’s top real estate insurance providers.
Availability in America’s biggest cities: Our program can help you insure mixed-use buildings across the nation, including in cities like Boston, Chicago, and LA. For a full list of eligible cities, see the FAQs section at the end of this article.

Learn More About Distinguished’s City Homes Program

If you have mixed-use property clients, chances are you’re working with a ton of other city clients as well. Luckily, Distinguished also insures other kinds of urban buildings, including multi-family properties, landlord properties, and more.

To see everything Distinguished has to offer, check out the resources below:

For any further questions, you can reach out to cityinsurance@distinguished.com.

Mixed-Use Property Insurance FAQs

How do I submit business?

Submitting business is as easy as registering your agency (if you’ve not already done so), logging into our online broker portal, and submitting all the necessary details for your clients.

To see how this works, check out this video on how to submit business for our City Homes program.

What is Distinguished’s appetite for mixed-use properties?

Although we do insure mixed-use buildings, our focus is primarily on habitational buildings with incidental commercial exposures. If you have any questions about whether your client would qualify, please reach out to cityinsurance@distinguished.com.

What cities are eligible for this program?

We currency insure in the following cities:

Bakersfield, CA**
Fresno, CA
Los Angeles, CA
Sacramento, CA**
San Francisco, CA
Bay Area, CA
San Diego, CA
Colorado Springs, CO
Denver, CO
Fort Collins, CO
Portland, OR
Chicago, IL
Minneapolis, MN
St. Paul, MN
St. Louis, MO
Kansas City, MO
Charlotte, NC**
Durham, NC**
Greensboro, NC**
Raleigh, NC**
Cleveland, OH
Columbus, OH
Cincinnati, OH
Nashville, TN
Madison, WI
Milwaukee, WI
Baltimore, MD
Boston, MA
NJ Gold Coast*
Philadelphia, PA
Pittsburg, PA
Washington, DC

* Jersey City, Hoboken, Weehawken, West New York, Union City, North Bergen, Cliffside Park, Fort Lee, Bayonne, and Edgewater

** Only available for rental occupancies

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Surety, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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