What is Commercial Property Owners Insurance?
Commercial Property Owners Insurance protects landlords and property investors against the financial risks of owning commercial buildings. It can include cover for buildings, loss of rent, property owners’ liability, employers’ liability, terrorism and legal expenses depending on your individual requirements.
Do I legally need Commercial Property Owners Insurance?
Whilst Commercial Property Owners Insurance is not generally a legal requirement, most mortgage lenders insist that buildings insurance is in place. Property Owners’ Liability Insurance is also strongly recommended to protect you if somebody is injured or their property is damaged because of your premises.
What does Commercial Property Owners Insurance cover?
Policies can typically include:
- Commercial buildings insurance
- Landlord’s contents
- Loss of rental income
- Alternative accommodation
- Property Owners’ Liability
- Employers’ Liability (where required)
- Terrorism Insurance
- Accidental Damage
- Glass
- Legal Expenses
- Directors & Officers Insurance for property companies
Does Commercial Property Owners Insurance cover loss of rent?
Yes. If your commercial premises become unusable following insured damage such as fire, flood or storm, most policies can cover the rental income you lose whilst repairs are carried out.
What is Property Owners’ Liability Insurance?
Property Owners’ Liability Insurance protects you if a member of the public suffers injury or damage to their property due to your ownership or maintenance of the premises.
Examples include:
- Loose roof tiles
- Falling masonry
- Defective paving
- Unsafe communal areas
- Poor maintenance
Can I insure a portfolio of commercial properties?
Yes.
Many landlords choose a portfolio policy which allows multiple commercial and residential properties to be insured under one policy, often simplifying administration and potentially reducing overall premiums.
Can I insure an empty commercial property?
Yes.
Specialist insurers can provide cover for unoccupied commercial properties. However, additional security requirements and inspection conditions often apply.
Does Commercial Property Owners Insurance cover flood damage?
Most policies include flood cover unless specifically excluded. Properties in high flood risk areas may require specialist insurers or different policy terms.
Does it cover subsidence?
Many insurers include subsidence as standard, although cover may be subject to increased excesses or underwriting if previous movement has occurred.
Can listed buildings or non-standard construction be insured?
Yes.
We regularly arrange insurance for:
- hops and retail units
- Industrial estates
- Warehouses
- Offices
- Business parks
- Mixed-use developments
- Blocks of flats
- Former mill buildings
- Industrial units
- Investment portfolios
- Student accommodation
- Licensed premises
- Medical centres
- Trade counters
- Restaurants and cafés
- Commercial developments
- Vacant commercial property
- Properties undergoing refurbishment
How much Buildings Insurance do I need?
The building should normally be insured for its full rebuilding cost rather than its market value.
This should include:
- Demolition costs
- Professional fees
- Site clearance
- Inflation during rebuilding
Does Commercial Property Owners Insurance cover tenants damaging the building?
Accidental or malicious damage by tenants may be available depending upon the insurer and policy wording. Deliberate damage, wear and tear and poor maintenance are normally excluded.
What happens if my tenant changes their business?
Insurers need to know if the occupancy changes.
For example, changing from:
- Office to restaurant
- Retail to takeaway
- Warehouse to manufacturing
could significantly affect the risk and should always be disclosed.
Can I insure mixed-use properties?
Yes.
We regularly arrange insurance for properties containing both commercial and residential accommodation, such as shops with flats above.
What information will I need to obtain a quotation?
We usually require:
- Property address
- Rebuilding value
- Construction details
- Occupancy
- Tenant trade
- Rental income
- Claims history
- Security arrangements
- Previous insurance
Why use an Insurance Broker instead of buying online?
Commercial Property Owners Insurance is rarely “one size fits all.”
As independent insurance brokers we compare specialist insurers, explain policy differences, identify gaps in cover and support you throughout any claim.
