What Kind of Insurance Do I Need for a Mixed-Use Building?
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Owning a mixed-use building—one that combines commercial and residential spaces—can be a smart investment, but it also comes with unique risks. From retail shops on the ground floor to apartments above, your insurance coverage must protect multiple types of tenants, uses, and liabilities.
Understanding the right insurance policies helps safeguard your property, income, and long-term investment.
Why Mixed-Use Buildings Require Specialized Insurance
Mixed-use buildings face risks that single-use properties don’t. A fire in a restaurant, a slip-and-fall in a retail space, or water damage affecting residential units can all create complex claims scenarios.
Insurers evaluate:
Type of businesses operating on site
Percentage of residential vs. commercial space
Foot traffic and public exposure
Age and condition of the building
👉 Read More: How insurers assess risk for commercial properties
Essential Insurance Coverage for Mixed-Use Buildings
This coverage protects the physical structure of the building against fire, storms, vandalism, and other covered losses. It may also include shared systems like HVAC, elevators, and roofing.
General liability insurance helps protect you if someone is injured on your property or if property damage occurs due to negligence. This is especially important for buildings with retail stores, offices, or restaurants.
3. Loss of Rental Income / Business Income Insurance
If a covered loss forces tenants to temporarily close or move out, this coverage helps replace lost rental income while repairs are made.
Landlord insurance protects the residential portion of your mixed-use building and may include:
Tenant-related property damage
Liability coverage
Lost rent protection
Umbrella insurance provides additional liability coverage above your base policy limits, offering extra protection for high-value or high-traffic properties.
Insurance for employees such as maintenance workers, cleaners, or on-site managers may be required by state law.
Optional but Valuable Coverages
Additional coverages to consider include:
Flood Insurance
Equipment Breakdown Coverage
Ordinance or Law Coverage
How Much Does Mixed-Use Building Insurance Cost?
Insurance costs vary based on:
Property location
Building size and construction
Types of commercial tenants
Claims history
Coverage limits
Get a Quote from Wexford Insurance
Mixed-use buildings carry unique risks that require customized insurance solutions. Wexford Insurance specializes in helping property owners protect both commercial and residential spaces.
