Insuring a Family-Owned Commercial Real Estate Portfolio in Connecticut

Short answer: A family-owned commercial real estate portfolio is usually best insured as one coordinated program: a commercial property policy with blanket limits across buildings, loss of rents, ordinance or law and equipment breakdown; general liability for every owning LLC; and a commercial umbrella above it all. Every LLC that holds title must be a named insured, tenants must carry their own insurance naming the landlord, and lender requirements must be met building by building.

Structure: many LLCs, one program

Families typically hold each property in its own LLC to separate liability. Insurance should mirror that: each entity named, each property scheduled, but on a combined program so the family gets portfolio pricing, blanket limits and a single umbrella. A property bought in a new LLC must be added the day of closing. See property owned by LLCs for the residential version.

Property coverage that matters

• Blanket limits spread one total limit across all buildings, reducing the risk that any single building is underinsured.
• Agreed value to suspend coinsurance penalties.
• Loss of rents for the time a building cannot be leased after a covered loss, for 12 to 24 months on larger properties.
• Ordinance or law for older Connecticut buildings that must be brought up to code after damage.
• Equipment breakdown for boilers, HVAC and electrical systems.
• Flood and named storm for coastal and riverfront buildings, often placed separately; see business interruption and flood.
• Vacancy: buildings mostly vacant beyond a set period face restricted coverage; tell your advisor before a major tenant leaves.

Liability across the portfolio

• General liability for each owning entity, including sidewalks; Connecticut towns often shift snow and ice duties to owners under C.G.S. 7-163a; see sidewalk liability.
• A commercial umbrella sized to the portfolio, often $10 million or more.
• Hired and non-owned auto for family members and managers driving to properties.
• Management liability if a family entity manages properties or employs staff.

Tenants and contractors

Leases should require tenants to carry general liability (commonly $1 million or more) naming the landlord entity as additional insured, plus property coverage for their improvements and a waiver of subrogation. Track certificates annually. Contractors need certificates and endorsements before any work; see reading insurance requirements and COIs.

New England Insurance, an independent Connecticut agency in Bridgeport since 2012, insures family-owned commercial portfolios and coordinates them with the owners' personal programs. See commercial property insurance or request a review.