How Much Does Mixed-Use Property Insurance Cost?

Owning a mixed-use property—combining residential and commercial spaces—can be a profitable investment, but it comes with complex insurance needs. Understanding costs and coverage is essential to protect your building, tenants, and income.

Factors That Affect Mixed-Use Property Insurance Costs

Insurance costs for mixed-use properties vary widely depending on:

• Location: Properties in high-risk areas (flood zones, urban centers) may cost more.

• Building Size and Construction: Larger buildings or older structures often have higher premiums.

• Tenant Mix: Retail, restaurant, or office tenants carry different risks.

• Claims History: Past insurance claims can impact rates.

• Coverage Limits and Deductibles: Higher coverage limits or lower deductibles increase costs.

Average Cost Estimates

While exact costs depend on the factors above, mixed-use property insurance generally ranges from:

• $1,500 to $5,000 per year for small mixed-use buildings

• $5,000 to $15,000+ per year for larger properties with multiple tenants

Properties with restaurants, gyms, or high-traffic retail usually face higher premiums due to increased liability risks.

Ways to Manage Costs

• Bundle coverage with the same insurer to receive multi-policy discounts

• Implement safety measures such as fire alarms, security systems, and sprinkler systems

• Work with an experienced insurance agent to tailor coverage without overpaying

Essential Insurance Coverage

1. Commercial Property Insurance: Protects the building and common systems like HVAC, plumbing, and elevators.

2. General Liability Insurance: Covers injuries or property damage to third parties.

3. Loss of Rental Income / Business Income Insurance: Replaces lost rental or business income if the property becomes temporarily unusable.

4. Landlord Insurance: Protects the residential portion of the property.

5. Umbrella / Excess Liability Insurance: Provides extra liability coverage beyond standard limits.

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Finding the right coverage for your mixed-use property requires expertise. Wexford Insurance specializes in customized solutions for complex commercial and residential properties.

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FAQs

1. What kind of insurance do I need for a mixed-use building?

2. Does mixed-use property insurance cover both commercial and residential tenants?

3. Do I need separate policies for commercial and residential units in a mixed-use building?