What insurance do I need before closing on a commercial property?

At minimum, a bound property and liability program that meets the lender's requirements: replacement-cost coverage, the lender named as mortgagee and loss payee, additional insured on liability, adequate limits, and flood insurance if the building is in a mapped zone. The practical step is confirming, before closing, that the building is insurable at workable terms and assembling that compliant package on the closing timeline.

How do I know if a building is even insurable before I buy it?

That is exactly what a pre-close review answers. Insurability depends on age, construction, occupancy, catastrophe exposure, roof condition, and loss history. A wildfire-scored or coastal-wind building, or one with significant deferred maintenance or claims, can be hard or expensive to place. Knowing that before the LOI or during diligence lets you price it into the deal or walk away.

What insurance issues most often delay a commercial closing?

Flood requirements that nobody priced, replacement-cost valuations the lender will not accept at market value, earthquake or wind coverage a lender insists on, and certificate or wording mismatches. Each can stall funding when it surfaces late. Surfacing them in diligence, with time to solve them, is the whole point of an insurance due-diligence review.

Do I need an insurance review for a refinance too?

Yes. A refinance re-runs the lender's insurance requirements, and the valuation that was fine a few years ago may now be short of replacement cost. We assemble the compliant package and update the valuation, so the refinance does not expose a gap that the original loan did not catch.

Acquisition & Refinance Insurance Due Diligence

Insurance sorted before the deal closes.

A live deal runs on deadlines, and insurance is one of the last things that gets attention and one of the first that can stall a closing. Acquisition and refinance due diligence puts the insurance question early, so you know what the building will cost to insure and whether it is even insurable at terms that work.

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The most valuable moment to involve an insurance advisor is before closing, when there is still time to fix what you find. We pressure-test insurability, surface the red flags, and assemble the lender-compliant package, so the coverage is a solved problem on funding day rather than a fire drill.

What we check before you close

Insurability first: is this building writable at terms that work, given its age, construction, occupancy, catastrophe zone, roof, and loss history? Then the cost, so the pro forma is real. Then the lender's requirements, replacement cost, mortgagee wording, additional insured, flood, mapped against the loan. And the diligence flags, vacancy, deferred maintenance, prior claims, environmental history, that change the risk or the price.

Why early beats late

Insurance issues that surface the week of closing are the ones that delay funding or blow up a pro forma. A wildfire-scored building that is hard to place, a flood requirement nobody priced, an earthquake gap a lender insists on, are all far easier to solve with lead time. Bringing the review forward to the LOI or early diligence de-risks the deal instead of threatening it.

How it works

Tell us about the target property and the loan. We give you an insurability and cost read for the pro forma, a list of the diligence flags worth pricing or negotiating, and a path to a lender-compliant program ready for closing. On a refinance, we add a valuation update so the new loan does not expose an old gap.

Insurance sorted before the deal closes.

What we check before you close

Why early beats late

How it works

Acquisition & Refinance Insurance Due Diligence, answered.

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Lender compliance review

Vacant building insurance

Commercial Property Coverage Review

Insurance sorted before the deal closes.