So, You Want to Repurpose Your Commercial Property… Now What?

So, You Want to Repurpose Your Commercial Property… Now What?

We’ve talked about the risks associated with repurposing your commercial property and how vital it is to take action to protect your investment. Let’s take a look at what that action looks like:

The first, and probably most important, thing you can do is actively communicate with your broker through every stage of the project. When a property is repurposed, both its risk profile and coverage needs also change and your broker will offer guidance about best practices to manage those risks.

Review these areas with your broker to ensure you’re properly covered:

  • Occupancy – A change of occupancy or purpose is a major change in your risk profile and may even require a different carrier. For example, if you plan to repurpose your retail building into an apartment complex, the occupancy requirements and regulations will change drastically. If the property is currently occupied but will sit vacant for an extended period of time, this will also need to be discussed to ensure proper coverage and prevent any coverage gaps.
  • Policies During Renovation. Properly orchestrating coverage before construction begins is crucial. Your broker will be able to guide you through the different types of policies that may be needed during the renovation process. This includes everything from how to insure your existing structure to builders’ risk, general liability, and general excess liability, and controls around general contractors, such as how contracts are worded and need to be reviewed.
  • Expenses Post-renovation – Expenses don’t end once the building is repurposed. Make sure to get an idea of insurance expenses once the project is complete. This is important for both you and your broker because it will help shape your future budget and pave the way for proper coverage for your newly repurposed building.
  • Historic Properties – Many historic properties come with historic tax incentives. However, historic tax properties are contingent on keeping certain components of the original structure, such as windows or flooring. It is important to understand what pieces of the property are historic in nature and needs to be restored back to the historic pre-loss condition compared to replacing damaged real estate on a non-historic property.

Taking the plunge to repurpose your property is a complex undertaking. Every project presents its own set of challenges and specifications, making it of the utmost importance to work with a team that is well-versed in the granularity of repurposing commercial property.

 

Our skilled advisors have the expertise to guide you through your insurance needs and possess long-term relationships with top carriers to negotiate the right coverage for your needs. Tell us your plan & we’ll come up with a strategy together. Contact us today!

 

 

This material has been prepared for informational purposes only. BRP Group, Inc. and its affiliates, do not provide tax, legal or accounting advice. Please consult with your own tax, legal or accounting professionals before engaging in any transaction.

Comments are closed.

Table of Contents

Recents Post
Renewable Energy SOTM (1)
2024 Renewable Energy State of the Market Update
Congratulations web Header - New '24 (1600 x 900 px) (3)
Samantha Money Promoted to Partner!
Congratulations web Header - New '24 (1600 x 900 px) (1)
Laura Noderer Promoted to Senior Advisor!

This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. Baldwin Risk Partners, LLC (“BRP”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. BRP does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, BRP does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.

Baldwin Risk Partners, LLC offers insurance services through one or more of its insurance licensed entities. Each of the entities may be known by one or more of the logos displayed; all insurance commerce is only conducted through BRP insurance licensed entities. This material is not an offer to sell insurance.

Get in contact with an advisor today to see how BKS can support you.