Key Takeaways
- Environmental liability insurance ($2,500-$10,000/year) provides essential coverage for properties with Phase I findings.
- Commercial equipment warranties provide budget certainty for aging HVAC and mechanical systems at $500-$800/unit/year.
- Seller indemnification is only as valuable as the seller's financial capacity to honor the obligation.
- Escrow holdbacks (5-10% of purchase price for 6-12 months) provide funded protection independent of seller solvency.
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Test Your Knowledge
1.What specialized insurance product covers defects discovered after closing?
2.What is a seller indemnification clause?
3.When is an escrow holdback preferable to seller indemnification?