Commercial Landlord Property Insurance

From natural disasters, accidental damage and subsidence issues, through to tenants that damage your property or don’t pay the rent, commercial landlord property owners have plenty to worry about.

At Business Insurance Service, we aim to reduce the worry that landlords encounter by providing commercial property owners with cover that protects your financial assets, your potentially your personal assets, as well as your businesses reputation.

Our selection of core property insurance covers and optional extras means that no matter what happens as a commercial landlord, you’re protected from the potential financial fallout that can follow a wide variety of scenarios.

What is commercial property owners insurance?

While buildings and contents insurance is a must-have for any property owner, it pays to remember that for commercial property, the parameters are very different. That means normal buildings and content insurance simply won’t cover the specific circumstances that are applicable to commercial property.

What is covered on a commercial landlords property insurance policy?

Part of any commercial property cover will be building insurance, and at Business Insurance Service, we put a particular emphasis on this aspect of insurance. Why? Well, because this is where the majority of commercial property insurance claims come into play. Again, it’s essential to know exactly what your buildings insurance section of your policy covers, specifically:

  • What defined perils are covered
  • What level of cost for repairs or rebuilding is offered depending on the cause of the claim.

How much cover do I need on my commercial landlords insurance policy?

Commercial property insurance can be arranged on various basis – all-risk and named or defined/restricted perils.

All-risk generally refers to losses or damage that is not specifically excluded by the policy. For example, if your property is damaged by flooding and flood damage is not specifically excluded in your property insurance, then you will be covered.

However, because the lines between all-risk events and the legalities of insurance documents can become blurred if not outlined clearly, it’s always wise to double check and look for policies that include defined or restricted perils in plain English. A defined peril is enumerated in a policy and can be anything from flood or fire through to terrorism, subsidence, accidental damage, and even malicious damage.

It’s particularly important to understand which items are covered by your buildings insurance including:

  • Structural repairs (walls, roof, and floors)
  • Fixtures and fittings (particularly important if you’re claiming for flood or fire damage)
  • Outbuildings
  • Car parks, garages, and public walkways
  • Pipes, ducts, wiring and cables.

Business Insurance Service are unable to offer any advice in respect of rebuilding sums on property, but we do have relationships with insurers and surveyors who can assess your properties rebuild sum, contact our trained brokers and we will be more than happy to help.

How do I calculate my commercial buildings rebuild sum?

In respect of non-standard or commercial property, you will need to appoint or hire a chartered surveyor to carry out a professional assessment.

Business Insurance Service are unable to offer any advice in respect of rebuilding sums on property, but we do have relationships with insurers and surveyors who can potentially work with you to assess your properties rebuild sum, contact our trained brokers and we will be more than happy to help.

Do I want a policy written on a reinstatement or indemnity basis?

Commercial property owners often insure their properties on an indemnity rather than a reinstatement basis. That means if something does happen then your insurance will only pay out enough to allow you to bring the property back to the condition it was in before the event. This is referred to as a reduction for ‘wear and tear’, and can result in a much smaller pay-out. A reinstatement policy means that you’ll be able to repair or refurbish the buildings to an as-new standard, based on the insured value of the property (the total cost to rebuild and repair).

Whatever policy you take out, you will need to make sure that it reflects not just the true value of your property, but the effect of inflation throughout the life of the policy. A piece of ‘prime real estate’ in the middle of a desirable commercial area can increase in value considerably over the course of a year – is your commercial property insurance a true reflection of your property’s value both now and in the future? We can make sure it is by future-proofing your policy and giving you the right level of cover both now and for the months ahead.

What insurance do I need for an unoccupied commercial property?

We can also arrange for specialist insurance for unoccupied properties, and those undergoing renovation. These insurance packages will protect your empty property against a wide range of potential risks including:

  • Fire
  • Weather damage
  • Water damage
  • Theft and vandalism
  • Subsidence

You can choose the length of your cover, ranging from 30 days upwards, depending on how long you estimate the property will be vacant.

Bear in mind, though, that there may be some provisos included such as the installation of alarm systems, the removal of all valuables, and that utilities are disconnected or switched off. You may also have to arrange for regular visits to the property to inspect it for damage or unlawful occupation.

Read our article on protecting empty on unoccupied properties.

What insurance do I need for a commercial property undergoing renovation?

Whether you are improving your current premises or expanding your business operations, you will need to arrange cover that protects your responsibilities while contracts work are ongoing.

Using our extensive knowledge of the property insurance market and professional brokers, Business Insurance Service can arrange quotes for specialist commercial properties undergoing renovations, these types of policy are designed to protect against incidents such as accidents, weather events and builder errors.

Available cover can include:

  • Physical loss or damage to your property under renovation and building components
  • Business interruption and loss of rental due to delayed construction
  • Legal expenses

How Business Insurance Service can help landlords

Thanks to years of experience and a team of property insurance brokers with the expertise and specialist knowledge to provide you with the most effective property owners insurance cover, we’re your insurance business partners.

We use our position as professional brokers to source some of the best and most cost-effective policies for our clients, whether you’re a small enterprise or a multi-national organisation with multiple sites.

A fully accredited service delivered by professional brokers

To find out more about commercial property insurance call us on 01273 789 979

Email us at hello@businessinsuranceservice.co.uk

Use our Get In Touch form to request a call-back.

For a quick, no-obligation and free quote, use our Online Quote & Buy service for instant cover.

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