Commercial landlords insurance issues

Posted: 2nd Jun 2014

As a landlord, you may have one or a number of properties that you rent out for commercial or residential purposes. Finding commercial landlords insurance that matches your exact needs may be critical for you to maximise your income and minimise your costs:

  • your buildings may typically be covered against damage by what are known as the insured perils – these include flooding, fire or smoke damage, storms or earthquakes. This typically should be at a level which covers the complete rebuild costs of your property;
  • commercial contents cover may or may not be relevant to you and may typically be available as an optional extra;
  • making sure that you have empty property insurance may be particularly important for your commercial property. An empty property is one that stands untenanted for a period of 30 consecutive days or more. You may also need to find a policy which can cover partially occupied premises or those where there is a mix of commercial and residential use;
  • you may typically need to consider the extent of public liability insurance cover that your commercial landlords insurance provides. Not all policies offer the same levels and you need to be happy with it;
  • if your commercial property is damaged then you may end up losing rental income. If this is due to an insured event then landlords commercial insurance can provide cover for this loss as well as provision of temporary alternative accommodation;
  • if your have a burst pipe, for example, which causes damage to your property then your landlords insurance may typically cover the cost of the repair of the burst and the damage caused. What may not be covered by some policies, however, are the costs of repairing any damage resulting from attempts to discover the source of the problem. You may find that we can help you find a policy which provides what’s known as Trace and Access protection to cover this eventuality (subject to terms and conditions);
  • accepting a higher excess on your commercial landlords insurance may result in what could be fairly significant reductions in the size of premiums. With our policies, for example, you can opt for flexible, voluntary excesses from £100 – £1000, giving discounts of up to 40% off your let property insurance premium.