Can You Drop Commercial Insurance Even if you have a Loan on the Property?

As a general rule, any property or item that you have a loan out on is going to require some sort of insurance to help protect the investment of the bank or other lending agents. This is to make sure that if something happens to the property, the lender is not going to be out the cost of the property. For those that live in the Lansdale, PA area, the agents with Farrell Insurance Associate Inc. can help you to find the perfect commercial policy for your property.

For those that have a commercial property that they still owe money on, an insurance policy is a must. For the most part, your lender is going to require that you have some sort of policy on the property at all times that you are still paying on the loan. In some cases, both a commercial policy and a property policy are both going to work to cover. This means that you can have either a commercial policy or a property policy out on the property.

The main concern is that there is some sort of valid insurance on the property to help protect the lender in the case of an accident. There needs to be fire coverage of some sort, perhaps theft coverage, and certainly coverage of some sort to make sure that if the business is no longer operable, the entire cost of the loan is not lost. This also protects the business owner as it makes it possible to recover and get back to work rather than having to spend all their money to recover.

For those in the Lansdale, PA area, the agents with Farrell Insurance Associate Inc. can help you find the right policy for your property.