Commercial Condo Insurance - Personal Property Limits?
I'm a month away from closing on a $450k commercial condo, and the lender is asking for us to get insurance (property coverage + general liability).

The structure of the purchase is a holding company is buying the condo, and leasing it to my operating company (SBA 504 financing).

We connected with a broker from Gallagher, and they proposed a Business Owners Package, which has a general liability ($2MM), and Lessor's Risk insurance with these notes on main coverage (there are a bunch of little kickers and coverages like overflow, but principally):

&amp;#x200B;

"DEDUCTIBLE: $1,000 LOC 1; BLDG 1

BUILDING LIMIT

We’ll pay up to the limit to repair or replace your buildings and

structures at the covered location. This includes additions,

fixtures and equipment you’ve installed.  - $0

&amp;#x200B;

BUSINESS PERSONAL PROPERTY LIMIT

We’ll pay up to the limit to repair or replace your furniture,

supplies, inventory and other things your business uses. - $515,000  
"

I asked the broker and he said for a commercial condo, the "underwriter" said for a commercial condo they consider EVERYTHING inside the unit as personal property, so there would be no building limit?

Does that sound right for this type of coverage?  

I've sent this over to my lender to review as well, but I'm wondering if someone has some experience here.

One thing that strikes me is that I seriously doubt we could re-build the interior for $515,000.  If that is the case, should I increase this limit?
[{"id": "iwhpbd2", "text": "For the building coverage, you should only need to cover beyond what is there in the condo POA (assuming there is one). If there is a POA with certain coverages already, you should send that to the broker to ensure there\u2019s no unnecesssary double coverage or lapses. \n\nFor the personal property, you need to let the broker know why you think 515k will not be enough to cover furniture and supplies. Or, read through the fine print to make sure what you plan to keep in there will actually be covered. Artwork for example, may be something that is not covered.  They may have language excluding things that are outside the normal use of a commercial condo (however they define it).", "replies": [{"id": "iwhqpja", "text": "There is some kind of POA on the building and structure from the Association, but my understanding is that I am insuring from \"studs in\" for the unit.\n\nSo, my question to the broker, is realistically there is 50k of personal property, and then we have all the walls | framing / ceilings / drywall / carpet / cabinets / lights / wires / pipes / cabinets / doors / trim -- he is saying that falls into the personal property bucket from the insurer's perspective.  Does that pass the smell test?  (Actually the operating company has $50k of personal property in the space, and the holding company is trying to insure the unit -- but I don't want too muddy this yet with the broker).\n\nOn my residential condo coverage, usually the property limits are for the building elements (drywall, floor coverings, fixtures) and then the personal proprety is basically everything else not bolted to the interior.\n\nIn this case the broker is saying this commercial policy is totally different, and everything bolted to the structure is personal property.", "replies": [{"id": "iwhsvff", "text": "The concept passes the smell test. As to the amount, that will depend on the size and layout of what you have in place, and also what metro you\u2019re in. Pricing is everywhere these days. \n\nKeep in mind if you\u2019re in an area with natural disasters where this could come in, the described coverage may not apply. You may need to ask specifically about what happens if a hurricane blows through for example.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]