08 Mar Commercial Property Insurance Essentials: Buildings Cover

As a commercial property owner, any damage caused to your premises can seriously affect your cashflow and profitability margins.

If you are the owner occupier of a premises from which you do business, commercial buildings cover should be an essential part of your business insurance package.

If you own commercial buildings that you lease to tenants, a Full Repairing and Insuring Lease will mean that you can choose the buildings insurance policy and then pass the cost (or part of the cost for a single unit in a larger building) to your tenants as part of the lease conditions.

What is commercial buildings insurance?

Commercial property buildings insurance covers the cost of repairs or rebuilding a business premises, including rental property, should the building be damaged by unexpected risks or the actions of a third-party.

Commercial property insurance for buildings can provide protection from some or all of the following:

• • Fire
  • Flood
  • Storms
  • Falling trees
  • Burst pipes (escape of water)
  • Subsidence
  • Riots
  • Theft

Is commercial landlord buildings insurance required by law?

No, as a commercial landlord you are not legally bound to purchase buildings insurance, however if you plan to buy a commercial property with a mortgage, most lenders will insist that you have buildings insurance in place in order to receive the loan.

As a commercial landlord, you and your tenant will sign a commercial lease that will almost certainly include repair and rebuild responsibilities, so it makes sense to protect yourself in the event of an incident that damages the fabric of the premises.

What is NOT covered by commercial property buildings insurance?

Most standard commercial buildings insurance policies do not cover

• • General wear and tear
  • Acts of war or terrorism
  • General contents such as stock and equipment
  • Business interruption (even if as a result of damage to the building)

How do I find the best commercial property buildings insurance?

Tredstone is powered by City Insurance, our commercial landlord property insurance package covers buildings insurance, glass cover, property owners’ liability, loss of ground rent and more.

Speak to our experienced advisors today so that we can help you find the best commercial property insurance package for your needs.