Commercial Property Owner

What is it?

Commercial property owner insurance protects the building owner in the event of damage being suffered to their building. You can take out cover for a broad range of exposures depending upon the type of building and tenancy.

Who should consider it?

All commercial property owners should take out property owner insurance. Transferring the risk to the tenant who does not have the same financial interest in the asset as the landlord can potentially expose the property owner to underinsurance or no insurance. When a property owner organises their building insurance it provides them with certainty over the cover that is in place.

What can it cover?

Policies can cover the replacement or repair cost of damage to the building and theft of building parts. Costs such as the demolition, council planning and rebuilding along with other items such as loss of rent whilst the building is untenanted due to an insurable loss can be covered.

The policy can also cover public liability claims arising from the property owner’s negligence.

Other exposures such as the breakdown of machinery such as air conditioning and electronic equipment can also be covered.

What usually isn’t covered?

Insurers have different appetites for different building construction and tenancy mixes. Each policy is different but most insurers don’t cover rent default where a tenant fails to pay you rent unless this arises from claimable tenant.

Flood is also an optional cover under most commercial property owner insurance policies.