How can you show evidence of property insurance for a lease on a commercial space? There’s a standard process for insurance verification that most commercial landlords follow.
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Evidence of property insurance: A guide for small business owners
Learn what evidence of property insurance for a commercial lease is, who needs it and when it’s required.
By Jessica Crosby
Published Nov 7, 2023
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What is evidence of property insurance?
Evidence of property insurance is similar to a certificate of insurance (COI) that companies, including NEXT, offer as proof of insurance. Evidence of property insurance is different because of how you use it. You present evidence of commercial property insurance when you want to buy or lease a property.
Who needs evidence of property insurance?
A business owner may need evidence of property insurance for:
- Buying commercial property. You will need it to qualify for a mortgage if you purchase commercial space.
- Leasing commercial property. Most landlords require evidence of property insurance if you rent a commercial space for your business.
Why would a business owner need to share evidence of property insurance?
If you apply for a mortgage to buy a commercial space, you must show the mortgage company that you protect the property with commercial property insurance. The lender wants to know that the property will be secure if a covered event arises. A key part of your mortgage application could be evidence of property insurance.
Why is evidence of property insurance needed to lease a commercial property? Many landlords require commercial property insurance because it helps to pay for the repair of damaged or stolen business property. A landlord wants to help ensure you can pay your rent each month.
How can a commercial renter get evidence of property insurance?
Ask your insurance provider to provide you with evidence of property insurance.
For some insurance companies, that could mean delayed requests via email and phone tag. NEXT makes gathering evidence easy with our 24/7 access via web and app. Just log in to your account to get started.
How NEXT helps small business owners grow
Get well-priced commercial property insurance to meet all your mortgage or lease requirements quickly through NEXT.
Answer a few questions online to apply for coverage, see your options, and purchase in less than 10 minutes. You’ll have immediate access to your certificate of insurance and evidence of property insurance to download and share.
About the author
Jessica spent over a decade working in education before moving into content marketing. She has worked on content marketing campaigns in the edtech, real estate, and personal finance sectors. She has a passion for working with companies that take the time to educate their customers. When she’s not working, she’s probably outside with her two kids.
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