Commercial property insurance protects property owners/landlords as they let out their property to commercial occupants. This type of insurance policy is important due to the variety of costly incidents that can stem from allowing another party to occupy your commercial property, such as industrial units, offices, barns or steel structures. Depending on the type of commercial occupant you let to, the risk can be considerable.
To qualify for this type of policy, a property owner must have a formal rental or lease agreement in place with their commercial tenant that establishes themselves as the landlord and the occupying entity as the tenant.
A commercial property insurance policy comes with cover for the numerous risks that may arise concerning the property that you own, such as:
This is not an exhaustive list of everything a commercial property insurance policy can cover and it's important to note that there are additional scenarios that may not ordinarily be included in a standard policy. These options might include cover for intentional property damage committed by a tenant (malicious damage) or legal fees.
Policyholders need to understand all aspects of their commercial property insurance. Certain scenarios will trigger additional conditions or requirements, such as:
Property owners must understand the differences between commercial property insurance and domestic landlord insurance. The two primary distinctions that should be understood include:
Letting out property to third parties comes with risk, just like everything else in life. Being a landlord can be profitable and rewarding but there are a massive range of things that could not necessarily go as planned and become costly. A commercial property insurance policy is a great way of transferring the risk of specific financial blows away from yourself and on to an insurer.
The property insurance market is a changing world at the moment with some insurers on the receiving end of some substantial property claims. Take a look at our recent article to see other factors that are making property insurers take a different view on the buildings they insure - Property Insurance Update – What’s happening in the market and what will impact your premiums in the coming years.
At Alan & Thomas we work hard to find you the right insurance policy for your budget and cover requirements. A key component of what we can do to help is helping to manage the risks you face as a property owner. We'd love to hear from you and we'd be more than happy to talk through your insurance requirements as a landlord of commercial property, and how we think we can help.
If you would like to talk to one of our team about your commercial property insurance arrangements, either complete the form below or give us a call on 01202 754900.
Complete the fields below to send us a message about how we can help with your property insurance requirements.