Architects & Engineers Insurance

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Real Estate Insurance for Businesses

Real Estate Insurance protects you in the event of physical damage to your commercial or residential property caused by fire, water, and/or other natural weather-related perils. There are also a variety of complimentary, but necessary, coverages to real estate insurance that property owners should consider for additional protection including:

  • Machinery or Equipment Breakdown Insurance – provides coverage on the property owner’s electrical appliances and systems in the event of a mechanical breakdown or explosion.
  • Loss of Rental Income – provides property owner with reimbursement for lost rental income when physical damage to the property has forced a tenant to vacate the premises for an extended period of time.
  • Liability Insurance – protects property owner in the event of a third party filing a lawsuit because of a bodily injury or property damage loss experienced as a result of the real estate owner’s physical premises. The most common example of this is a slip and fall claim.

3 Things Property Owners Should Be Aware Of


  • Replacement Cost Value

    Coverages should be sufficient to cover the costs it would take to repair or replace their property following a physical damage loss.

  • Occupancy

    Real estate owners should be aware of the type of tenants occupying their building as their occupancy will impact the price of coverage and availability of insurance.

  • Neighbouring Exposures

    It is important to evaluate properties within close proximity when applying for insurance as additional risks posed by neighboring properties can impact the premium.

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Why Do I Need Liability Coverage if All My Tenants Carry Their Own Liability Insurance?

Even if you mandate that your tenants carry liability insurance, as the owner of the residential or commercial property, you are still subjected to exposures that can result in a claim being brought against you by a tenant or third party for incidents such as bodily injury caused by negligent building maintenance or the spread of a fire due to inadequate fire codes.

Why Work with FCA to Protect Your Real Estate Property?

FCA has access to the expansive general insurance market, which allows us to secure the most competitive package for your real estate coverage. Our deep expertise in the space gives real estate owners peace of mind that their property will be protected should a claim occur.

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How Much Does Real Estate Insurance Cost?

Insurance pricing on real estate is as unique as the buildings themselves. There are many variables that go into insurance pricing for Real Estate, in most cases the cost of your Building Insurance is impacted by the business operations within them. In saying this, there are several factors that influence pricing for building insurance, it boils down to what insurance companies call C.O.P.E, which stands for the following:


This takes into account the structural characteristics of your Real Estate property such as age of the building, building’s replacement cost value, number of storeys, total square footage, overall building condition and when elements of the building like the roof, HVAC, plumbing and electrical system we’re last updated. A higher rate is applied to buildings that are more susceptible to experiencing a property damage loss, such as a location with a wood frame structure being impacted by fire damage, or property with an outdated roof sustaining a water damage loss.


The occupants of your property have a significant impact on insurance pricing, as insurance rates are tied to the likelihood of your tenant causing a property damage loss.  If your commercial Real Estate is occupied by office workers, the chances of this tenant being liable for substantial property damage loss at your building is far lower than a manufacturer, which is reflected in the rates assigned for your building.  It is also important to note that the number of people consistently reporting to your property increases your exposure to a liability claim due to the classic slip and fall loss, therefore the number of people employed by your tenants has an impact on the building owner’s premium charge.


There are numerous preventative measure the owners of commercial real estate can implement into their buildings in order to secure more favourable rates.  Installing a sprinkler system in the building, having fire extinguishers and smoke detectors spread throughout the building and installing sump pump and water detection devices are all suitable ways to prevent loss or mitigate losses from becoming more substantial when they do occur.  Protective crime measures such as surveillance cameras at your property and burglar alarms can help ensure losses due to instances of theft or attempted theft are less substantial than they would have been otherwise.  When real estate owners take these proactive approaches to prevent damage from occurring at their property, the price of their insurance decreases accordingly.  Buildings that are located close to a fire hydrant or fire department are also subjected to far lower rates than buildings that have no protection against a fire damage loss.


The presence of a neighbouring building or natural peril will also impact the premium charge for your real estate, as these factors, which are outside the control of the property owner, can greatly increase your exposure to a property damage loss.  In order to secure more favourable rates on their insurance, building owners need to mitigate the exposure presented by the buildings and natural hazards that are in close proximity to their own building through various risk management means.  A knowledgeable broker can provide great insight into the options you can pursue in order to prevent a neighbouring exposure from causing a loss to your property.

Our Mission is to Make Insurance Accessible

We put you in control of your insurance experience. FCA informs and empowers you, so you can choose amongst robust options, confident in the value of your protection and in the broad reach of your advocates.


Machinery Breakdown coverages more than it implies. In addition to covering the mechanical failure of production machinery or equipment, Machinery Breakdown also applies to non-commercial items that impact an individual’s quality of life, such as heaters, air conditioners, electrical system wiring and refrigeration equipment. In the event of a breakdown of these systems or damage to them because of an electrical surge, machinery breakdown insurance will cover the costs to replace the damaged property. Machinery Breakdown coverage is also necessary to trigger lost rental income in the event that damage to any of these systems creates unsafe living conditions for tenants.

Property owners can trigger Lost Rental Income coverage in the event that a tenant is forced to vacate the premises for an extended period of time due to property damage or machinery breakdown.

While real estate insurance is not mandatory unless specifically stated by a contract requirement, owners of any form of real estate should obtain real estate insurance to reduce the risk of major financial losses.

No, the pandemic and subsequent government actions are not grounds to trigger lost rental income coverage. Although the pandemic has created substantial difficulties for commercial landlords, there must be a direct physical loss to your property, such as a fire or water damage, which forced your tenants to move out, in order to trigger lost rental income coverage.

Yes, insurance coverage can be obtained for properties rented to students, however due to the higher risk of this type of occupancy, coverage will likely be more expensive. It is also harder to secure as there are only a select number of insurance companies that are willing to provide coverage for these types of occupants. If you plan to rent your property to students but are concerned with price and coverage, check with your FCA broker to see what options are available first.

Yes, being added to your tenants’ policies as an additional insured entitles you to insurance protection included with tenant’s liability insurance should you be drawn into a suit for which your tenant is responsible. It creates a buffer for the property owner, wherein you are not required to utilize your own liability insurance for a claim you are not responsible for. Property owners are more likely to have a favourable loss experience which helps ensure your insurance coverage remains reasonably priced.

Why Choose FCA Insurance?

Ease of Doing Business

We know insurance, and we love helping companies purchase coverages that suits their unique industry and business needs.

Trusted by Insurance Companies

Outstanding relationships with all of the most reputable insurance markets in the industry, giving you the power of choice.

Insurance is What We Do

Our industry-leading team boasts eighty full-time dedicated insurance professionals with expansive knowledge across various industries.


Paul Smith is about as full service as it gets. He has helped me insure my past and present properties.  I have and will continue to refer him to all my friends and colleagues. His integrity and approach to his clients is very impressive.


FCA covers us for all our business requirements, from equipment to liability, property, builds and everything in-between. Errol Williams is so patient and helpful; I am always confident that we are getting the best possible coverage at a competitive rate. Always the best service!


Jamie and his team have been great to deal with, providing transparent advice and excellent service!


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