Use dotted terms for definitions. You can also browse the glossary.
Before you decide
- Residential and commercial uses must both be disclosed.
- Tenant business insurance does not automatically insure the owner’s interests.
- Review lease duties and policy wording together.
Create a use-by-space schedule
List residential units, shops, offices, storage, common areas and vacant space, with floor area and actual operations. A description such as “retail below apartments” may omit cooking, fabrication, deliveries or other material activity. Ask each tenant to keep use information current through the lease process.
Travelers describes commercial property coverage for physical business assets. That general description does not establish acceptance of every occupancy mix. The partner needs the actual uses and construction to evaluate a proposal.
Map boundaries
| Exposure | Evidence | Question |
|---|---|---|
| Building and installed systems | Lease and ownership records | Owner or tenant improvement responsibility? |
| Tenant stock and equipment | Tenant inventory | Separate tenant property arrangement? |
| Shared entrance or ventilation | Inspection and maintenance agreement | Who maintains it and which liability activities are accepted? |
| Tenant contractual obligations | Lease and endorsements | Does the actual endorsement match the required role? |
Worked scenario: a tenant changes business
A shop originally sells packaged goods, then proposes onsite cooking. Even with the same tenant and rent, the operation changes. Review permitted use, building systems, local approvals and insurance acceptance before the new activity begins.
Obtain updated evidence rather than assume a certificate from the old operation remains sufficient. Ask whether the owner’s property and liability arrangements need changes, and document the answer.
Sources & scope
- Travelers: Commercial property insurance
Carrier description of physical assets and optional exposures; not a universal unit-count eligibility boundary.
- NAIC: Small business insurance
General property, liability and package-policy definitions. Product eligibility and exclusions require the actual form.
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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