Who pays for building insurance on commercial property?

The property owner or landlord is responsible for arranging building insurance on commercial property that is rented out. Under the terms of most commercial lease agreements, the landlord will often pass on the cost of building insurance to the tenant.

Does commercial property insurance cover theft?

Theft and theft by tenant is covered under commercial property policies. However, most policy wordings state that there must be evidence of entry by “forcible or violent means” in order for a claim to be valid. When calculating your premium, the underwriter will look at the local crime map to analyse the crime rate in the surrounding area of the property. Should this be in a high crime area, an insurer may look to increase their excess or restrict cover. However, the stance on this can vary from insurer to insurer, therefore, as a broker we are able to search our markets and find a quote with a high quality of cover for a competitive rate.

Does commercial property insurance cover fire?

Fire is covered under all commercial property policies, including when the property is unoccupied. The very basic cover offered by insurers, in particular when a property is vacant, is for fire, lightning, explosion, and aircraft. However, it is important to note that explosion from fire is typically excluded and this is restricted to explosion of gas boilers, or gas used for domestic purposes. Subterranean fire is also excluded.

Does commercial property insurance cover flood damage?

AXA, in their policy wording, define flood as “the escape of water from the normal confines of any natural or artificial watercourse, lake, reservoir, canal, drain, or dam. Inundation from the sea. Rain-induced runoff. Whether resulting from storm or not.” When considering whether to offer flood cover, an underwriter will look at a range of factors. These include; the Environment Agency’s flood map; how far away the property is from a river, sea, or lake and; the history of previous flooding in the surrounding area. With these three factors in mind, they will decide whether to offer standard terms, increase the excess, or exclude flood cover completely. A commercial property policy will provide essential flood and storm cover for the structure and landlords contents looking only to exclude damage in respect of fences, gates, or moveable property in the open.

Does commercial property insurance cover water damage?

Water damage caused by a burst pipe, also known as ‘escape of water’, is a cover often found on a commercial property insurance policy. Despite a common misconception that the pipe itself is covered under the policy, this is not always the case; however, instead, the damage arising from the escape of water is covered by the insurance. For example, a pipe suddenly bursts in your property and damages the floor and several appliances. The pipe itself would be excluded, but the material damage to the structure and contents would be covered by your insurance policy. However, many policies offer ‘trace and access’ cover as part of their policy. This means that, should there be some evidence that there is a water leak occurring, you may have to call someone in to remove plasterwork or floorboards to identify where this is coming from. This can prove costly. Therefore, trace and access will cover the cost of locating the source of the leak, and any costs necessary in repairing and making good any damage caused in locating this. The main reason insurers offer this cover is to find the leak quickly and avoiding further widespread damage and minimising claim costs both for yourself and them as a result.

Commercial Landlord Insurance Quotes From £306

Name: Commercial Landlord Insurance
Brand: Alan Boswell Group
Rating: 4.9 (1420 reviews)

Commercial property insurance is for landlords who rent out properties for commercial use such as shops, restaurants, or industrial units.

Protect your property with our commercial landlord insurance. Talk to one of our commercial property insurance specialists who can search the market to find you the best insurance.

We’ve been working with landlords since 1995, so we know it’s vital to find the right cover for your property. We provide high-quality cover and award-winning service at a great price – so you get the best deal around.

The Alan Boswell Group Difference

Because our commercial landlord insurance product is managed in-house, we provide a unique service, with pricing, underwriting, and claims primarily managed by our own team. We also have a landlord advice hub that is full of useful information to help landlords and property owners find the advice and products needed.

Our advice and service have been recognised by the industry and our customer feedback scores are proof of our consistently high standards.

In a word, excellent. I felt understood and looked after. It was clear they understood landlord insurance.

Mr & Mrs Jarvis - Landlords Insurance

4.9/5 1420 reviews

Commercial landlord insurance in detail

Our commercial landlord insurance policies cover a range of risks, so you get complete peace of mind.

Property insurance

A wide definition of buildings that can extend to include common areas, landscaping, solar panels, wind turbines, and domestic white goods. Numerous extensions included as standard and tailored to the property industries.

Business interruption

Cover for loss of rent following property damage, as well as for the cost of alternative accommodation for residential units within your portfolio. There is a variety of extensions to supplement core covers.

Engineering damage

This policy can provide cover to surrounding property if any machinery or plant causes damage. We can also offer specific policy enhancements, such as working or repair investigation costs, to ensure you're well insured.

Property owners' liability

Protects your legal liabilities towards third parties e.g. slip, trip, or fall whilst on the property.

If you are a property owner and you have a change of tenant or processes undertaken within the property, you will need to inform your insurance provider. Failure to do this could invalidate any claim.

It is important to make your insurance provider aware if there will be any periods of unoccupancy to ensure the property is covered correctly whilst unoccupied. Again, failure to inform your insurance provider could invalidate your insurance.

Our commercial landlord FAQs page aims to answer some of the common questions regarding commercial landlord insurance.

How much does commercial landlord insurance cost?

If you are insuring a single building you could pay as little as £306 for a commercial landlord insurance policy. The exact cost will depend on several factors, including the construction type, size of the property, and the business your tenant undertakes. Last year 10% of our customers paid £306 or less (Jan 22 – Dec 22).