Do I Need Separate Insurance for Mixed-Use Commercial and Residential Units?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
Mixed-use properties, which combine commercial spaces like shops, offices, or restaurants with residential apartments, are attractive investments. However, they introduce unique insurance challenges because commercial and residential risks differ.
A common question among property owners is: “Do I need separate insurance for the commercial and residential portions of my building?” The answer depends on your property structure, tenant types, and coverage needs.
Understanding Mixed-Use Insurance
Mixed-use property insurance is designed to protect both the building and its tenants. It can either:
Combine commercial and residential coverage under a single tailored policy, or
Require separate policies for each portion, depending on insurer requirements and local regulations.
A well-structured mixed-use policy ensures protection against property damage, liability, tenant-caused loss, and loss of rental or business income for all units.
Key Coverages for Commercial and Residential Units
Commercial Property Insurance: Covers the physical structure and commercial spaces against fire, storms, vandalism, and other hazards.
Landlord Insurance: Protects the residential portion of the property, including tenant-caused damage, liability, and lost rent.
General Liability Insurance: Covers claims arising from injuries or property damage on the premises. This is critical for public-facing commercial tenants.
Loss of Rental or Business Income Insurance: Replaces lost income if a covered event temporarily prevents tenants from occupying units or operating businesses.
Umbrella / Excess Liability Insurance: Provides additional liability protection above standard limits for high-value or high-traffic properties.
When Separate Policies May Be Needed
Some insurers may require separate policies if:
The building has high-risk commercial tenants like restaurants, gyms, or bars
Local laws or lender requirements mandate distinct coverage
Coverage limits differ significantly between commercial and residential portions
A licensed insurance agent can assess your property and tenant mix to determine the best approach and prevent coverage gaps.
Get a Quote from Wexford Insurance
Wexford Insurance specializes in customized insurance solutions for mixed-use properties. Whether you need a single comprehensive policy or separate coverage for commercial and residential units, Wexford ensures your property, tenants, liability, and income are fully protected.
👉 Contact Wexford Insurance today to request a personalized quote for your mixed-use property.
