Commercial Property Insurance
What does commercial property insurance cover?
Insurance for commercial properties will cover the cost if you need to rebuild or repair your business premises. It can also include cover for your equipment and stock inside the building. In the case of you being a landlord, taking out contents cover will be the responsibility of the tenants. Although contents insurance is an option for you if you have supplied your own appliances and furniture to the tenants.
Commercial properties insurance covers you in the event of;
- Escape of water (burst pipes)
There are a few things not covered by commercial property insurance which you should be aware of, such as;
- Wear and tear - You will not be covered if damage was caused by normal use over time, or poor maintenance.
- Damage caused by animals - There are many policies that have exclusions for damage that is caused by vermin such as rats, insects and even domestic pets.
- Unoccupied properties - If your property has been left completely unoccupied for a predetermined amount of time (normally 30 days) then the policy may become invalidated.
- Bad craftsmanship - Most policies won’t cover you if there is damage caused by bad craftsmanship. It is important to always use a trusted tradesperson.
A contents insurance policy will cover the cost of replacing the equipment of stock of your business if it is damaged or stolen.
When you are valuing your stock and equipment, you should take into consideration the item's cost price, not its sale price. It’s also important to consider whether there are times in the year you carry more stock than usual, such as Christmas time, as if this is the case then you need to make sure that your insurance covers this.
There are two types of contents insurance.
Replacement as new
This type of policy will make sure that your damaged or stolen item will be replaced with a brand new one.
This kind of policy will take wear and tear into account when replacing your stock. If your items have lost value then the insurer will pay out the lower figure in the event of a claim.
Insurance for landlords is different to a standard home insurance policy, although there will be some similarities. You will still be covered for damage to the property against a range of different risks, such as storms, theft, fire and water damage, but you will also be covered against things like loss of rent, landlord emergency cover and legal expenses. Legal expenses will help with the cost of dealing with legal matters such as contract disputes, tax and VAT investigations,and even eviction of squatters. Importantly you are also covered for accidental damage caused by tenants and any vacant periods you have in between tenants.
Do I need landlord insurance?
If you have standard home insurance it is highly unlikely that will be covered for all risks involved in being a landlord. It is true that having landlord insurance in place is not a legal obligation in the UK, but many buy-to-let mortgage providers will require you to take a policy out before any tenants can move in.
Types of landlord insurance available
There are a few types of cover you can take out when it comes to insurance for landlords, including;
- Landlord building insurance - This will provide cover for any damage loss to the building.
- Landlord content insurance - If the property you are renting out is furnished by furniture and appliances that belong to you, then it is advisable to take this cover out to protect your contents.
- Rent Guarantee - This could provide cover if your tenants are unable to pay rent.
- Rental income protection - If your property is damaged, and you are temporarily unable to rent it out, then this type of cover will protect you against loss of income. There is also, unoccupied property cover which will protect against loss of income if you are in between tenants, or you are making renovations to your property before you rent it out.
- Property owners liability - This is essentially public liability insurance, and you could be protected against legal costs if a tenant is injured in your property and puts the blame on you.
Why use Insurance1?
Insurance1 has access to a wide range of insurers and brokers, and we can match you with one that is able to provide a policy that matches your needs.
All of the insurance providers we have access to are regulated by the Financial Conduct Authority and adhere to strict regulations regarding the insurances they can sell. As well as this our insurers and brokers are knowledgeable and experienced in the market, giving you confidence they are the right people for the job.
Let Insurance1 do the hard work for you by matching you with a suitable insurance provider, potentially saving you time and money.
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