Commercial Property Insurance
This type of cover is available to all landlords that own and rent out commercial buildings. For landlords with premises, the unoccupied commercial property insurance cover is available. Please ensure that you read the insurers terms and conditions on unoccupied buildings policy.
Commercial property insurance is essentially buildings insurance in the most part, it can encompass further coverage for fixed plant equipment, but mainly it’s the coverage of buildings and structure against specific perils. Who needs this cover? Well, if you own a building which is used for commercial use then you will need to insure it against these perils, if you yourself own and use it for commercial uses there are a few alternatives which will make for a far more comprehensive policy cover for you.
The specific perils offered on a standard policy (landlord) are usually material damage to property including shop front, fixed glass, landlord’s fittings by impact, vehicles, aircraft etc, fire, flood, and theft it will normally include public liability for damage or injury arising from the property.
Optional Covers for landlords, you can also include cover for landlords contents, you may have a considerable amount of furniture, and enhancements which you want covered and its worth doing it as sometimes your tenant may not actually have insurance.
You may also wish to cover for rent receivable, this will give you the rental income that you will loose in the event of a fire or flood as your tenant will also be looking for temporary accommodation so that they can carry on business as usual.
Employers liability may also be required, do you employ anyone to maintain or look after the property, perhaps a gardener or caretaker, they can be covered under this section, you may also consider personal accident cover for certain employees.
Terrorism cover this isn’t part of a standard policy any more , most insurers used to cover the first £100,000 pounds of any claim but its needed to be topped up if your building has a value over that small threshold.
Whether it happens to be the only property your use, rent out, or part of a larger portfolio of properties we have underwriters who will be able to cater for any combination of buildings and values, we can also cater for Non standard Builds, and even in some cases previously distressed property. Do not leave it to chance. Risks have a habit of becoming a real life nightmare, see below for the kinds of misfortune you need to insure against;
- If a fire damages your property what will you loose? Well you have the repair costs, but what about your tenant? To stay working he’s going to need another site to continue trading, and as such he will need to pay rent to get it, which means you will lose that income!
- Theft can also be an issue if you have property or plant stolen from your site, or, even damaged you may not be able rent the building!
- If a customer of the premises has an accident that can be attributable against the building owner your public liability section of the policy will cover you, even if it’s not attributable to you, a no win no fee company may well come after you for it and the defence costs won’t be cheap for representation. It could also be the case from an employee, and the same would of course apply.
- One of the most common big claims that seem to be occurring these days is natural disasters, wind, rain, etc; the main culprit seems to be flood and water damage, these claims can of course run into huge amounts of money in very little time.
When purchasing commercial building insurance its worth bearing in mind a few points, some of these can save you money, but on their own would still be a very good idea. The first thing to do is contact a reputable broker or intermediary. We have panel of specialist partnerships who have years of experience in placing this type of business. The experience involved in dealing with this type of insurance cannot be understated, and it needs to be carefully considered. The costs involved also can be quite high depending on the values of the properties involved, but you don’t need to worry as the premiums can usually be spread over the year for small extra cost, and sometimes its interest free.
Also worthwhile is safety and security considerations as these may be mandatory or required before cover is issued, some of these if not required may well reduce your premium as they will make the risk more desirable to the insurer.
- Security alarm system installation if it’s not mandatory it will reduce the premium, but some of the Redcare or monitored system.
- Fire detection system, and fire extinguishers/ sprinkler systems, again these measures may well be mandatory for buildings of high worth stock inside, the cost of sprinkler systems is very expensive, but if you are a landlord you may well find that your tenant has to bear the cost for his stock to be insured at all.
- You can obtain a package policy if you own the premises and work from it yourself, as the risk is considered to be lower with the these type of risk, you will also get a more varied cover than just the landlord policy.
To sum up, it’s worth obtaining a few quotes and then really compares what you are getting for your money, sometimes the cheapest commercial property insurance is not the best option. This type of cover is available for all types of commercial premises such as shop, office, warehouse, workshops and even unoccupied commercial buildings.