Commercial Property insurance

Cover for Empty Commercial Buildings
Option to Pay by Direct Debit
NO Call Centre Queuing
Property Owners Liability Cover £1m - £5m
Portfolio Facility for Multiple Properties

Multi-Risk Discounts can be added
Pro Rata Policy includes Accidental Damage
Option Employers Liability cover available at £10m
Up to £10,000 for Loss of Metered Water
Up to £10,000 for Trace & Access Cover

Commercial Property Insurance

Another form of property investment involves the purchase of commercial premises for the purpose of letting. It is still possible to obtain cover for Commercial Property, however the rating and cover is slightly different. The type of commercial property insurance purchased for property investment purposes depends very much on the choice of the landlord but it is usually possible to obtain insurance cover for any of the following types of Commercial Building:-

Shops & Offices

Social Clubs

Cafes

Restaurants

Public Houses

Guest Houses & Hotels

Takeaways

Unoccupied Commercial Premises

Usually the insurance company will require that the property has been purchased to let and that the Landlord does not live on the premises. However it may be possible to obtain cover if the Landlord occupies part of the premises, perhaps there is a flat upstairs etc. The type of cover on offer is similar to a residential investment policy in that the perils covered are almost identical. Policies will usually also contain Property Owners Liability cover and loss of rent by peril cover.

Whereas Residential Letting insurance is rated on the postcode and type of tenant, commercial cover takes in to consideration the type of tenant and use of the building, Any type of manufacturing or trade process carried out at the premises will increase the premium required and before requesting a commercial insurance quote also make sure you know exactly what your building is being used for. If there is a flat above the premises, remember to disclose this to the insurance company including the occupation of the tenant. Most commercial insurance policies will include loss of rent by peril cover. This is mainly set at 20% of the sum insured over a period of 12 months. The object of this cover is to pay out in the event of an insured peril resulting in the tenant having to mover out on a temporary basis. Shops and offices usually attract the cheapest insurance rates with take a ways, fish and chip shops and Unoccupied properties being the highest.

If you are the Landlord of a Commercial Building that is used as a catering establishment, check the terms and conditions of your policy carefully. Most policies will contain a cooking warranty especially if there is an element of deep fat frying. Also equipment such as grease traps, ducting and extractors will have to be cleaned on a regular basis and you may find that the policy will not pay out in the event of a claim if all the terms & conditions have not been followed.