It is imperative for construction and real estate companies, especially those with operations and interests in high-risk areas, to have specific and comprehensive property and casualty (P&C) insurance coverage.
With environmental, labor and legal liability risks on the rise, obtaining adequate insurance coverage is becoming increasing difficult. A hardening insurance market is forcing standard insurance carriers to restrict terms and conditions, reduce limits and increase deductible.
What is Non-Standard Large National Real Estate Special Multi-Peril?
This SMP product is a tailored commercial package policy designed for large, multi-site real estate owners, developers and operators who face elevated exposures. It combines property coverage with commercial liability and specialty modules to address risks that standard markets may limit or exclude. The program can be adapted to include equipment coverage, crime protection, boiler and machinery, and excess liability layers.
Who needs it
Typical buyers include national landlords, institutional owners, REITs, shopping center operators, and contractors involved in large redevelopment projects where site concentration, environmental exposures or tenant operations create higher-than-normal underwriting scrutiny. If your portfolio includes coastal assets, specialty coastal language and underwriting are often required — see the Non-Standard Large National Real Estate Special Multi-Peril Insurance variant for coastal considerations.
What it typically covers
Coverage modules usually include first-party property (buildings, business income, equipment), commercial general liability for third-party injury or property damage, crime/fidelity protection, and boiler & machinery. Insurers may also offer optional commercial auto exposure coverage or excess liability limits. For smaller or service-oriented locations, related programs such as Non-Standard Service Special Multi-Peril (SMP) show how modular coverages can be packaged.
Risk example: an unsecured scaffold falls from a renovation site, causing injury to a passerby and damage to nearby property — that type of third-party liability and property damage scenario is exactly what SMP policies are structured to respond to.
Common exclusions or limitations
Expect standard exclusions for pollution (unless specifically endorsed), intentional acts, wear-and-tear, and certain professional liabilities. Environmental contamination, asbestos, mold and latent defect exposures often require separate endorsements or standalone environmental policies. Policies may also include sub-limits for valuable articles or seasonal business income losses.
Factors that influence cost
Underwriting factors include location (flood, coastal or seismic exposure), loss history, tenant mix, security and risk-management programs, construction type, and concentration of value at any single site. Deductible size, chosen limits, and whether coverage includes catastrophic perils or environmental endorsements will materially affect premium and terms.
Proof of insurance & compliance
Large real estate portfolios commonly require certificates of insurance, additional insured endorsements for lenders and contractors, and evidence of primary or non-contributory wording. Maintaining updated proof of insurance is important for lease compliance, lender covenants and contractor agreements.
How to get a quote
Gather recent loss runs, a schedule of locations with values, tenant information, and details of any risk-control measures. Talk to your broker or Non-Standard Large Regional Real Estate Special Multi-Peril Insurance specialists to review options. If you prefer, you can also ask your agent to start the submission and comparison process.
Frequently Asked Questions
How does SMP differ from a standard commercial package policy?
SMP is designed for higher-risk, larger or geographically diverse portfolios that standard carriers may restrict; it bundles specialty modules and tailored endorsements to address those elevated exposures.
Can environmental liability be included?
Environmental coverage is typically handled by endorsements or separate environmental policies; inclusion depends on underwriting and the specific contamination risk at the sites.
What records will underwriters request?
Underwriters usually ask for location schedules, value reports, loss runs (usually 3–5 years), tenant and occupancy details, and descriptions of loss control measures such as security, fire protection and contractor controls.
Still have questions? Talk to a local insurance expert.