Do I need Business Personal Property insurance for my real estate property management business?

Discover the importance of business personal property insurance for your real estate property management business and how it secures your valuable assets.

Aditya Raghunath - Writer for NEXT Insurance
By Aditya Raghunath
Michelle Meyer - Editor for NEXT Insurance
Edited by Michelle Meyer
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Published June 5, 2023.

Simply put: yes. Business personal property (BPP) insurance can safeguard your real estate property management business's physical assets from unexpected incidents like theft, fire or water damage (not including flooding).

Defining BPP for real estate property management

BPP can bolster your real estate insurance by helping to protect your equipment, supplies, furniture and improvements from loss or damage.

  • Equipment: BPP can cover repair or replacement costs of office equipment like computers, printers or specialized property management software that might get damaged, stolen or destroyed.
  • Furniture: Your office furniture, including desks, chairs and filing cabinets, is essential for day-to-day operations. BPP can cover these items if a covered peril damages them.
  • Improvements: BPP can cover alterations you made to your office space, like installing new carpeting or custom shelving. If a fire destroys your office, BPP can help pay to restore these improvements.

What other insurance does my real estate property management business need?

Consider these additional insurance options for comprehensive protection:

1. Real Estate Liability insurance

This coverage includes general liability insurance, which protects against third-party bodily injury or property damage claims, and errors & omissions insurance, which covers claims related to the professional services you provide. For instance, if a tenant claims your negligence caused financial loss, your policy could help cover legal costs.

2. Commercial Auto insurance

If your business owns vehicles used for property visits or maintenance tasks, commercial auto insurance is necessary. It can cover costs associated with accidents involving your business vehicles, such as repair costs or medical bills following an accident.

3. Workers' Compensation

Workers' compensation insurance can cover medical expenses and any lost wages if your employees get injured while performing their duties. For instance, this coverage can cover medical fees if an employee slips and falls while inspecting a property.

4. Commercial Property insurance

Commercial property insurance can cover damage to the building itself from covered events like fire, theft or natural disasters.

Tip:

BPP only covers the contents of your real estate property management office — not the physical building. Consider adding a business owner's policy (BOP) to your property management insurance. BOP combines general liability insurance and commercial property insurance, allowing you to get more protection at a better price.

Get the business insurance you need for your real estate property management business

You can protect the physical assets of your real estate property management business with BPP insurance. Plus, you can build a comprehensive insurance portfolio by adding other relevant insurance policies. This is where NEXT comes in.



We offer affordable business insurance that's customized to your business needs. Tell us your story by answering a few questions online, then receive a tailored quote within minutes. Once you've purchased your coverage, you can immediately access your certificate of insurance and share it with third parties through the NEXT app.

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