What Risks Are Covered Under Mixed-Use Property Insurance?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
Mixed-use properties, which combine commercial spaces like retail stores, offices, or restaurants with residential units, provide a steady income stream and investment growth. However, they come with unique risks that standard property insurance may not fully address. Understanding what risks are covered under mixed-use property insurance is essential for property owners.
A properly structured policy can protect both commercial and residential tenants, your building, and your income from unexpected events.
Common Risks Covered
Property Damage: Covers the physical structure of the building and any attached fixtures. Damage from fire, storms, vandalism, or other perils affecting both commercial and residential spaces is typically included.
General Liability: Protects against claims from injury or property damage that occur on the property. This is especially important for high-traffic commercial spaces like restaurants or retail stores where customer injuries are possible.
Tenant-Caused Damage: Covers damages caused by tenants in residential units or commercial spaces. This ensures that your property remains financially protected, even if a tenant accidentally causes a loss.
Loss of Rental or Business Income: If a covered event forces tenants to temporarily leave or close their businesses, this coverage replaces lost income from both residential rent and commercial lease payments.
Natural Disasters & Flooding (Optional Coverage): Standard policies may not cover floods or earthquakes. Optional add-ons or separate policies can protect against these high-risk events, especially in vulnerable geographic locations.
Umbrella / Excess Liability: Provides additional liability coverage beyond standard policy limits, ideal for high-value properties or those with multiple tenants and frequent public access.
Why Mixed-Use Insurance is Different
Mixed-use buildings require a tailored insurance approach because residential and commercial risks differ significantly. Residential tenants generally present lower liability risk than commercial tenants like restaurants or gyms, which may involve high foot traffic, equipment, and customer interactions. A combined or linked policy ensures that both sides are adequately protected.
Get a Quote from Wexford Insurance
Protecting a mixed-use property requires expertise in both commercial and residential insurance. Wexford Insurance specializes in customized policies for mixed-use buildings, ensuring comprehensive coverage for property damage, liability, and income loss.
👉 Contact Wexford Insurance today to get a personalized quote and safeguard your investment.
