What is Commercial Property Insurance?
Commercial property insurance, also known as commercial landlord insurance, is vital for anyone who owns, lets out or manages buildings which are used commercially by third parties. The tenant is the business, organisation or group whose name is on the rental agreement showing they’re allowed to inhabit your property. It is this agreement that proves you’re the landlord or agent and that the property is therefore your responsibility. While they may take out their own insurance in relation to the business, and contents on the premises, as a commercial landlord or property manager, you will also need insurance cover in place. If the property is mortgaged, it’s likely to be a condition of your mortgage provider that you have relevant insurance.
Why do I need Commercial Property Insurance?
Domestic dwellings and commercial buildings are two very different entities when it comes to insuring them. Therefore, it’s not possible to insure a business premises with domestic landlord insurance and expect it to provide the cover you need.
How is it different from domestic landlord insurance?
There are two main areas where residential property insurance and commercial property insurance differ. These are:
Commercial properties vary much more than domestic properties in terms of their construction and design. They may contain asbestos roofing, wooden barns, metal structures and flat or corrugated roofing which you wouldn’t expect anywhere else. They could also have different types of fixtures and fittings, heating and hot water systems or more complex electrical systems. If these are severely damaged and therefore need rebuilding or replacing, there may be a much more lengthy and costly process to go through to put it right. This is where one of our specially selected commercial building insurance products comes in.
Domestic tenants usually only use their home address for private living and don’t run any kind of business that requires the use of heavy industrial equipment, large numbers of employees or deals with hazardous waste for example. A commercial insurance product would consider all these factors as well as look at the overall use of the building to consider the risks of things like fire, flooding or other damage. Here at Real Insurance Brokers we are committed to working with each of our clients to assess the uses of the building and find a cover that will match the risk your tenants pose to it. We will then provide you with a commercial property insurance quote which fully considers the type of building you have and what specifically it will be used for.