Owning a commercial property can be a fantastic investment. But it is worth considering some of the potential risks that can affect your return and understanding the benefits of getting the correct commercial property insurance.
We have some amazing properties that we insure and each has its own risks. We understand that each property is different and understanding this is why landlords value the service we offer. Here some four key points the landlord should know about commercial property insurance.
Properties with multiple businesses under one roof usually share communal areas or share a front desk. All these communal areas cost money especially if there is a communal kitchen. So should anything happen to communal areas having Landlord contents insurance will protect your investment.
Nine times out of ten you would own a commercial property as an investment that pays you rent every month. Should anything happen to the property (Example: flood or fire) would mean your tenants would not pay their rent resulting in no income. Income protection in the form of loss of rent cover is a must for landlords. Consider how long it would take to clear the site after a catastrophic loss and get a property rebuilt including planning permission. In our experience 12 months loss of rent for a substantial building may not be long enough, look at 24 or 36 month options to give yourselves protection.
A dispute between tenant and landlord happens from time to time. These claims can be expensive due to legal costs. If tenants don’t pay you might need to take legal action to get rent arrears. Some cases can be over quickly but some cases can take a while. With legal expenses cover you’ll be protected if you need to take legal action.
You own the building. Any damage or injury to a tenant or a tenant’s visitor could be your responsibility. In today’s litigious world a claim made against you could be costly and time-consuming. Make sure you ensure your tenant has public liability cover, and make sure you have property owners liability cover to ensure that you have adequate protection, also consider the limit of indemnity, the more the better!
Here at Ravenhall we’ve been advising commercial landlords on selecting the right property insurance for a long time. Our Chartered Insurance Brokers are constantly working to make sure our landlords are covered correctly.
We understand every property is different. Also, we don’t want our clients to be paying for anything that isn’t necessary. We have policies protecting small one desk offices to huge mills. Each commercial property is just as important as another and our chartered insurance brokers are constantly advising landlords on insurance. As an independent organisation, we are not tied to one particular insurance company. As a result, we have the freedom to work with some of the largest insurers in the world to provide you with the most comprehensive cover at the best price.
If you’re a landlord and you want to have an informal chat about your commercial property insurance then contact our team on 0345 216 3000 or visit our Contact us page.