Anyone that owns a property, whether it is residential or commercial, needs to be confident they have adequate insurance. Failure to do so can leave you seriously out of pocket, financially, in the event of misfortune. It can also be problematic and time consuming trying to resolve an issue if you have not correctly read the Terms & Conditions properly and your insurance provider challenges any claim.
What does commercial property insurance include? How can you reduce the stress involved with property management by making sure you are covered?
Varying Terms & Conditions for commercial insurance policies
Like most insurances the terms between providers varies. The small detail is really important.
As the property owner you will be wholly responsible for ensuring that you can resolve issues regarding the property if they arise.
For example, a small caveat on a block of commercial offices regarding sub-letting, could be the limiting factor on making a successful claim.
It is therefore essential to, not only, select the best policy and provider for your situation. It is also vital to clarify all the details in advance so you know you are working within the rules.
Commercial property insurance: what is included?
There are several elements to commercial property insurance. The main features are:
(1) Property owner’s liability insurance
This covers compensation to third parties relating to injury from property damage or negligence.
Most insurers include this as standard in their policy but how much cover is required will depend on your specific circumstances.
(2) Loss of rent
Loss of rent is common if there is an issue with a commercial property. If there is a fire or flood that causes serious damage, the property may need to be vacated whilst repairs take place.
If tenants are therefore forced to find an alternative premise, and you therefore lose on rental income, the commercial property insurance covers the amount you would have earned.
Policies vary but you can select a timescale of cover suited to your property and circumstances
(3) Commercial buildings cover
Most policies will cover routine risks such as fire, flood, storm damage, accidental damage and criminal damage from break-ins and burglaries.
However, sometimes insurance is required to cover more unusual circumstances. Unoccupied properties sometimes require different cover. Terrorism is also now a growing risk that some insurers are adding to their policies.
Working with an insurance broker will ensure you select the best policy and provider from a large range.
(4) Manage your property portfolio insurance together
If you have multiple commercial properties then it always helps to keep your affairs joined-up. Having to juggle multiple polices can be confusing and waste time.
Most commercial property owners find value in choosing an option that encompasses all your properties under one policy.
An insurance broker can discuss all your properties and their requirements and find the best solution for you.
- save time
- reduce stress
- ensure you haven’t missed anything important
Commercial property insurance quote:
One commercial property, or a portfolio Choice of providersOptions that include unoccupied properties, commercial and mixed use buildings too