If you own commercial property that you let out to businesses, it's vital that they are insured on the correct basis.
Whether the buildings you need insuring are occupied as shops, offices, workshops, restaurants or as warehouses, you need an appropriate commercial landlord insurance policy.
Five points to consider when arranging Commercial Property insurance:
- Is the building insured for the correct amount? This should be the rebuild value. If the sum insured is too low your policy will be subject to average in the event of a claim and you may have to pay towards rebuilding costs yourself.
- Is it a listed building? If so, is the insurance company aware and is the sum insured adequate? Rebuilding can take longer and can be more expensive.
- If you have loss of rent cover, is it for a long enough period? If you only have a 12 month indemnity period, consider extending this.
- Advise your insurance company of any non-standard construction, such as timber frame, flat roof or thatch.
- Make sure your insurance company has up-to-date details as to how the building is occupied. If it's a commercial building this may change when tenants change.
- If your property becomes unoccupied, check the cover you have for this. Read any unoccupancy conditions or phone your insurance broker to discuss.
Commercial Property insurance is a package policy designed to cover the risks that landlords face including the following:
- Sudden and unforeseen damage to buildings and any contents that you own, as a result of perils such as fire, flood and burst pipes etc.
- Accidental breakage of glass, sinks, toilets and baths.
- Loss of rental income, in case an event, such as fire or flood, means that the occupants have to move out while repairs are in progress.
- Property owner's liability in case a member of the public is injured or their property is damaged at your property and they decide it's your fault.
- Commercial legal expenses - contract disputes & tax disputes for example
- Employers liability, risk of injury if you employ a groundsman for example.
Yes. If you own buildings that are part commercial and part residential, an office with flat above, for example, they can all be insured on one commercial property insurance policy.
The cost of commercial property insurance depends on a number of factors, including the location of your property, its construction, age and value, how it is occupied and whether or not you've had any previous claims.
Many insurance companies offer commercial property insurance, so there is a wide range of products available. You can buy commercial property insurance online but you'll probably have to deal with a call centre if you need help with anything and you'll usually then be on your own if you have to make a claim.
It's a good idea to work with an independent business insurance broker to make sure you get the right cover at a competitive price. They will usually get you several quotes from different companies and then recommend the product that best fits your requirements.
If you are renovating, refurbishing or extending a commercial building that you plan to rent out once completed, check with your insurance company that the work is covered. A standard commercial landlord's policy may not be adequate.
You need insurance that will cover the existing structure, the building works & the property owner's liability in a single policy.