What is commercial building insurance?
Wondering what commercial buildings insurance is? At the end of this blog, you’ll have a greater understanding of what it is. So read on to find out if you require commercial buildings insurance.
Who needs commercial buildings insurance?
This type of insurance protects landlords who use their building for commercial use or rents it out to 3rd parties.
Taking out this insurance is highly recommended as it covers the cost of repairing and rebuilding your building if it is damaged or destroyed.
Additionally, even if you have bought your building outright, it is still highly recommended you take this policy out for your own protection.
Examples of what the insurer will cover you for are:
- Fire damage
- Burst pipes
- Falling trees
What does it cover?
Property owners’ liability
- If you rent out your building to 3rd party for commercial use, then this policy is used to compensate for any injures or property damages that may occur through negligence.
- Moreover, as it is your responsibility as the landlord to oversee if the building is adequately safe to use, you are liable if there are any injuries that occur from your property damage.
Rebuild cost for the building
- Ensuring the building against the cost of rebuilding instead of the sale/current market value price is seen as an informed decision.
- If an insurable event occurs, the insurer will payout for the time loss of renting your property. Meaning you will not need to be worried about being financially unstable due to the insurable event.
- Contents such as fitted kitchens or toilets come under this policy. This would be insurable if an event was to occur. The
What do I need to be aware of?
- Unoccupied tenants – such as squatters
- Accidental damage may not be covered
- Flat roof warranty – leads to a loss of rent and damages contents
- Damages made by tenants
Most insurers won’t cover you for:
- General wear and tear
- If your building is unoccupied for more than 30 days
- Poor craftsmanship
- Damages caused by animals and pests
Furthermore, content insurance is not included in commercial buildings insurance. You may need to consider taking this policy out as it goes hand in hand with commercial buildings insurance.
Is it a legal requirement?
It is not a legal requirement, however mortgage lenders will require you to take this policy out as a condition of the loan. This is to protect both your and the mortgage lenders investment.
How much does commercial building insurance cost?
The cost depends on a few factors such as the nature of the business and its size. The larger the company, the more it costs to insure. There are multiple factors that may affect commercial building insurance costs.
Examples of factors:
- Age of building
- Types of security measures in place in the building
- Level of cover you require
- Location of the building
- If the building has a high rebuilding cost
- If the building is in a high-risk flood/crime zone
- Number of buildings you want to insure
- Claims history
How we can help!
At Trevellyan Insurance Brokers, we want to help businesses not be at fault, insuring with us today can help you keep you secure and safe in your hands. We make sure that you are covered and also keep you insured.
As brokers, we can help you find a policy that is at the best price.
We can offer you a quote that is suitable for you and right for your business.
July 20, 2022
May 16, 2022