Use dotted terms for definitions. You can also browse the glossary.
Before you decide
- An insurer must confirm eligibility for the particular building.
- Check valuation conditions even for a partial loss.
- Reconcile the proposal to every scheduled structure.
Move from unit count to underwriting facts
A commercial review needs the building schedule, occupancy mix, construction, protective systems, condition, ownership and claims information. A five-unit rule stated without an insurer or program is not a reliable eligibility determination. Disclose retail, office or guest uses rather than assuming “apartments” covers them.
Request a statement of values showing buildings, contents and income separately. Reconcile it to the application and declarations. Ask which amounts are scheduled limits and which participate in a blanket or shared limit.
Check insurance to value
Travelers explains that a coinsurance clause, when present, compares the carried limit with a required percentage of the property value. A shortfall can affect a partial loss. Ask whether coinsurance applies, how value is determined and whether any agreed-value arrangement changes the condition.
Illustrative arithmetic under a simple proportional clause: value $2 million, required percentage 80%, required insurance $1.6 million, carried insurance $1.2 million. The ratio is 75%. Applied to $200,000 of otherwise covered damage, that is $150,000 before a deductible and other terms. This is a teaching example; use the actual clause for a real claim.
Review program constraints
| Provision | Question |
|---|---|
| Blanket and margin terms | Can a location-specific cap still apply? |
| Catastrophe sublimits | Are flood or earthquake limits shared across sites? |
| Income | Which waiting period and restoration provisions apply? |
| Ordinance/law | Which undamaged portions, demolition and increased costs are addressed? |
| Acquisitions | Is there temporary automatic protection, with what reporting and value restrictions? |
Prepare the renewal meeting
Ask for unresolved requirements early: inspections, repairs, valuation updates, lender endorsements and acquisition reporting. Save the accepted schedule with the final policy. A sample proposal or certificate is not the contract.
Use a second reviewer to reconcile the largest building values and shared limits. A spreadsheet can look complete while omitting a detached structure or using an obsolete income figure.
Sources & scope
- Travelers: Commercial property insurance
Carrier description of physical assets and optional exposures; not a universal unit-count eligibility boundary.
- Travelers: Calculating coinsurance
Carrier explanation of a property coinsurance clause when one applies. Not every form contains this condition.
Sources checked October 24, 2026. General descriptions do not replace the policy, endorsements, declarations or an insurer’s coverage determination. Examples are hypothetical unless explicitly identified otherwise.
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