Property insurance is a broader category of insurance that encompasses coverage for both the physical structure of a building (such as the walls, roof, and foundation) as well as its contents (such as furniture, equipment, and personal belongings).
This policy is usually purchased by property owners to protect their investment in both residential or commercial buildings and is suitable for the following individuals or entities:
What is Building or Structure Insurance?
Building or Structure Insurance covers the physical components of a completed building—walls, roof, foundation, permanent fixtures and sometimes built-in equipment—against direct physical loss or damage. It focuses on repairing or replacing the structure itself rather than tenant belongings or business interruption losses. The policy can be written for residential single-family homes, multi-unit dwellings, or commercial properties.
Who needs it
Owners of finished buildings commonly buy this coverage: individual homeowners, landlords, condominium associations, and commercial property owners. Real estate investors and property managers typically use standalone building insurance as part of a broader risk-management program. If you own a single condo building, consider policy options specific to your property type such as Condo Single Building Property Insurance for tailored protection.
What it typically covers
Typical coverage components include repair or replacement for damage caused by fire, wind, lightning, certain water damage, theft of structural elements, and vandalism. Policies can also address permanent fixtures, built-in appliances, and sometimes outdoor structures (fences, walkways). Owners of storefronts or mixed-use buildings often combine building coverage with other protections; see more about commercial options on our Buildings Insurance page.
Related insurance concepts you’ll encounter when comparing policies include replacement cost vs. actual cash value, deductibles, endorsements for wind/hail, and underwriting factors such as construction type and occupancy. A common risk scenario: a burst pipe on an upper floor causes structural damage and requires immediate repairs to maintain habitability.
Common exclusions or limitations
Exclusions often include wear and tear, gradual deterioration, flood (usually separate flood policy), earthquakes (often excluded unless endorsed), intentional damage, and certain pollution-related losses. Roof condition, maintenance history, and vacancy clauses can limit coverage, so review policy language and exclusions carefully.
Factors that influence cost
Premiums depend on location (natural hazard exposure), construction materials, building age, occupancy type, security systems, claims history, chosen limits and deductibles, and whether replacement-cost coverage is selected. Larger residential or mixed-use developments such as office and housing complexes may have different underwriting guidelines; see examples on our Office and Housing Complexes Insurance page.
Proof of insurance & compliance
Mortgage lenders, landlords, condominium boards, and local regulators may require proof of building insurance. Certificates of insurance and declarations pages show coverage limits, policy period, and named insured. Keep documentation up to date and provide copies when requested to demonstrate compliance with lease or loan agreements.
How to get a quote
To compare options and get a tailored price, gather basic property details (address, year built, construction type, occupancy, recent improvements) and discuss your needs with a broker or insurer. To start the process online, you can Request a quote.
Frequently Asked Questions
Does Building or Structure Insurance cover tenant belongings?
No. This coverage focuses on the building itself. Tenants typically need renters or contents coverage for personal property.
Is flood damage included?
Usually not. Flood is commonly excluded and requires a separate flood insurance policy.
Can I add coverage for earthquakes or vandalism?
Vandalism is often covered by standard policies, while earthquake coverage usually requires a separate endorsement or policy depending on location and insurer.
Still have questions? Talk to a local insurance expert.