Insuring a Rooming / Boarding House: A Comprehensive Guide

Insuring a Rooming / Boarding House: A Comprehensive Guide

May 28, 2024

Insuring a Rooming / Boarding House: A Comprehensive Guide

Running a boarding house is a unique business venture that comes with its own set of challenges and risks. Ensuring your boarding house is properly insured is crucial to protect your investment, mitigate risks, and ensure the safety and well-being of your tenants. In this blog, we will explore the various aspects of insuring a boarding house, focusing on Commercial Property Insurance, the Rising Costs of Construction, Commercial General Liability Insurance, and Commercial Umbrella Insurance.

Commercial Property Insurance

Property Coverage:

Commercial Property Insurance is essential for protecting the physical assets of your boarding house. This includes the building itself, as well as any contents such as furniture, appliances, and other equipment. In the event of damage caused by fire, theft, vandalism, or natural disasters, this insurance will cover the repair or replacement costs.

Building and Contents:

When insuring your boarding house, it's crucial to ensure that the policy covers both the structure and its contents. Evaluate the value of the building and the contents separately to ensure adequate coverage. Keep an inventory of all items within the boarding house to simplify the claims process in case of a loss.

Business Interruption:

Business Interruption Coverage, often included in Commercial Property Insurance, provides compensation for lost income if your boarding house becomes uninhabitable due to a covered peril. This coverage helps you continue to meet your financial obligations, such as mortgage payments and employee salaries, during the period of restoration.

Rising Costs of Construction

Inflation and Supply Chain Issues:

The rising costs of construction materials and labor have significantly impacted the insurance industry. Inflation, supply chain disruptions, and increased demand for construction services have led to higher replacement costs. It's important to review and update your insurance policy regularly to ensure that the coverage limits are adequate to reflect current construction costs.

Adequate Coverage Limits:

Ensure your Commercial Property Insurance policy has sufficient coverage limits to rebuild your boarding house at today's construction costs. Underinsuring your property could result in significant out-of-pocket expenses if you need to rebuild or repair after a loss.

Ordinance or Law Coverage:

With rising construction costs, consider adding Ordinance or Law Coverage to your policy. This coverage pays for the additional costs of rebuilding or repairing your boarding house to comply with current building codes and regulations, which may have changed since the property was originally constructed.


Commercial General Liability Insurance

Liability Protection:

Commercial General Liability (CGL) Insurance is essential for protecting your boarding house from third-party claims of bodily injury, property damage, and personal injury. This coverage is crucial in a boarding house setting, where multiple tenants and visitors increase the likelihood of accidents and incidents.

Premises Liability:

Premises Liability Coverage is a key component of CGL Insurance. It protects you if a tenant or visitor is injured on your property due to hazards such as wet floors, faulty staircases, or inadequate lighting. Legal defense costs and any settlements or judgments are covered under this policy.

Tenant Disputes:

In a boarding house, disputes between tenants and the property owner are not uncommon. CGL Insurance can help cover the legal expenses associated with defending against claims of negligence, wrongful eviction, or discrimination.

Commercial Umbrella Insurance

Additional Liability Protection:

Commercial Umbrella Insurance provides an extra layer of liability protection above and beyond the limits of your primary liability policies, such as CGL Insurance. This coverage is particularly important for boarding houses, where the risk of large claims and lawsuits can be higher due to the number of tenants and visitors.

Higher Coverage Limits:

Umbrella policies typically offer higher coverage limits, often starting at $1 million. This additional coverage can be crucial in protecting your assets and financial stability in the event of a catastrophic claim that exceeds the limits of your underlying liability policies.



Insuring a boarding house involves a multifaceted approach to ensure comprehensive protection for your property, tenants, and business operations. By securing adequate Commercial Property Insurance, addressing the rising costs of construction, obtaining Commercial General Liability Insurance, and enhancing your coverage with Commercial Umbrella Insurance, you can safeguard your boarding house against a wide range of risks.


Regularly review and update your insurance policies to reflect changes in property values, construction costs, and liability exposures. Working with an experienced insurance agent can help you tailor a coverage plan that meets the unique needs of your boarding house, providing peace of mind and financial security for your business.

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