Industry overview
Real-estate businesses span those who own and manage physical property and those who advise on transactions, so the sector carries both premises and professional exposure. Owners and managers worry about the building and its visitors; agents and brokers worry about the advice and disclosures around a deal.
Property holders also face significant catastrophe and tenant-related risk, while professionals handle client funds and confidential information. Insurance for the sector commonly combines property and liability coverage for assets with professional and crime coverage for transactions.
Common business types
- Commercial and residential property owners
- Property management companies
- Real-estate brokerages and agents
- Landlords and rental operators
- Real-estate developers
- Appraisers and inspection services
Common risks
Property damage
Owned buildings face fire, storm, water, and other covered perils.
Premises liability
Tenants and visitors create slip-and-fall and bodily-injury exposure.
Professional liability
Agents and managers can face claims of error, misrepresentation, or disclosure failure.
Tenant disputes
Leasing and management can generate disputes and related claims.
Funds handling
Holding deposits and client funds creates crime and fidelity exposure.
Loss of rental income
A covered loss can interrupt rental income during repairs.
Common insurance requirements
Lenders financing property require property coverage and commonly specify liability limits, and leases may require landlords or tenants to carry specific coverage and additional-insured status. Real-estate professionals frequently need professional liability for licensing and brokerage requirements, and those handling funds may need crime coverage.
Recommended coverages
Core Coverage
Operational Coverage
Contractual Coverage
How much does it cost?
There is no single price for real estate insurance — the total depends on which of these coverages you carry and the specifics of your business. As a rough guide, here are general national averages for the coverages this industry commonly needs.
- $1,000–$3,000 per year, depending heavily on property value and location
- $500–$1,500 per year for many small businesses
- $500–$2,000 per year for many small firms
- $300–$1,500 per year, depending on the limits selected
- $400–$1,500 per year per $1M of additional limit
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Hypothetical claim examples
Tenant injury
A tenant is injured in a common area. General liability may help respond to the bodily-injury claim, subject to policy terms.
Disclosure dispute
A buyer alleges an agent failed to disclose a material issue. Professional liability may help respond, subject to terms.
Building fire
A fire damages an owned building and interrupts rent. Property and rental-income coverage may help, subject to terms.
Frequently asked questions
Do real-estate agents need professional liability?
Agents and brokers can face claims of error or disclosure failure, so professional liability is commonly carried and sometimes required by brokerages.
Is landlord coverage different from a homeowner policy?
Rental and investment property generally requires commercial or landlord coverage rather than a personal homeowner policy, which excludes many rental uses.
Does property coverage include lost rent?
Loss-of-rental-income coverage can be included to help replace rent while a covered loss is repaired.
Why might property managers need crime coverage?
Managers holding deposits and client funds face theft and fraud exposure, which crime or fidelity coverage helps address.
Do leases dictate insurance requirements?
Yes. Leases commonly specify coverage and additional-insured requirements for landlords, tenants, or both.
How do I get a quote for my business?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help with coverage tailored to your specific business type.
All Real Estate business types
Get covered for any of the 11 business types in this industry.