Real Estate

The foundation of a Commercial Real Estate Loan is in the assumption that the building will remain standing and produce rental income, allowing the borrower to pay their mortgage. Unexpected catastrophes that affect the borrower’s building can challenge this central assumption and potentially throw the loan into default. That is, unless the borrower has the right insurance coverage for the mortgaged property. However, lenders will often request unreasonable amounts or types of insurance.  Our team will help you negotiate reasonable lender insurance requirements on new purchase loans or refinances.  Borrowers can rest easy knowing their Real Estate coverage needs are being met with our Valley CRE Prep program. 

Determining your coverage needs starts with asking how much your property is worth and what can be done to protect against any losses. According to the National Association of Realtors, commercial real estate in 2015 included more than $29.3 billion in industrial property, $14.2 billion in office property and just over $5 billion in retail property. These are all market values vs replacement/insurable values.  These figures also do not consider your tenant’s improvements and betterments which you may or may not be responsible for insuring.  We can provide you with data that will help you avoid over or under insuring your properties.

How do you know that your insurance costs are competitive unless you are provided options and consistent updates on insurance rate trends?  Marketing commercial real estate insurance is both an art and a science. The science consists of collecting and applying numerous data points about your property into complex actuarial models to establish premium. Our data collection system assures that we collect the most accurate and thorough data about your properties, giving underwriters certainty and confidence in pricing.  The art consists of maintaining trusted relationships with insurance carriers and marketing to the right insurance companies at the right times.  Our marketing system is consistent, repeatable, documented and effortless giving you the peace of mind that your properties insurance costs are competitive.

Real Estate owners have the option to transfer risk to an insurance company via an insurance policy. However, one of the first lines of defense can be to transfer risk to your tenants. The lease abstract process often over looks insurance requirements and risk transfer to the tenant. Our lease review process will improve the insurance requirements within the lease and help you avoid duplicate insurance costs and coverage by the landlord and tenant. 

Real Estate owners purchase insurance with the hopes of never having a claim. If there is a claim, you want to be prepared. Our Valley One CRE team takes a proactive approach to prepare you for a claim before it happens and we will be there to guide you through the process when catastrophe happens. Avoid the cost of public adjusters and delays in settlement by working with us to develop a claims process before it’s too late.

Regardless of whether your commercial real estate holdings involve industrial, office, retail, apartments, self-storage or a little of all of them, finding the right insurance solution to protect your company and assets from the unexpected comes with an individualized approach.  

Valley Insurance Services and the Valley CRE team will match you with the best insurance solution in your area or across the nation if needed.  Contact us to learn more.