Specialist Landlord Insurance
Specialist Landlord Insurance for Commercial Properties
Most of us have bought some form of house insurance at one time or another, but when it comes to insuring a commercial property, the process is entirely different. For starters, commercial properties have so many more uses – a home is used for living in, but any kind of business or trade may be going on at a business premises.
From an insurance perspective, this makes insuring a building used for business, a more specialised prospect which is less likely to fit a one size fits all approach. This has it’s advantages, as it means the insurance market for commercial buildings is very wide, so there is room for companies to specialise in one particular area. For instance, an insurer may have much more in depth information about a certain post code area than another. This knowledge gives an insurance company the power to accurately estimate and assess a risk, leading to better prices and better cover for a client.
So far so good, but what about the property owner’s perspective? Having so many different products can be a bit bewildering, and it can be confusing knowing where to look. It’s not as if there are lots of comparison sites you can turn to for a commercial property insurance quote, so knowing where to look is the key to getting the best prices. However, an affordable premium is only half the battle, what about the cover?
So what can you expect for your money as a commercial let landlord?
The basics that can be expected on any business property insurance policy are:
* Buildings – damage or re-instatement
* Loss of Rent – usually 20% of the sum insured value
* Property Owner’s Liability – normally a minimum of £2,000,000 though occasionally higher.
And most of them also offer some sort of legal and/or emergency help product too. While we’re on the subject, it’s worth having a quick look at these, as they can be quite different and not necessarily what you expect. For example, the term “legal cover” can be a bit mis-leading, as it can mean anything from a free legal advice telephone line, where you can obtain legal advice over the phone and nothing more, through to a full blown legal expenses policy which will pay solitors fees for certain actions you may have to make in defence of your property rights. So “legal cover” on one policy probably isn’t the same as “legal cover” on another, the difference is usually clear when you read the policy summaries.
As for emergency help, the same thing applies. Is it just a free helpline? They’re helpful, they’re friendly, and they’ll find you a 24 hour plumber, but you still pay him out of your own pocket. Or the policy may cover you for a set amount, say up to £750, towards call out and labour charges when a contractor carries out emergency repairs for you. The telephone helpine variety is usually free, and while handy, doesn’t really save you anything other than a search through your local yellow pages. As with other things in life, you usually get what you pay for, so the second, contributory service just mentioned, will normally be a small, extra fee in addition to your insurance quote.
Various other options are sometimes available too, such as:
* Employers’ liability
* Loss of keys & replacement locks
* Glass replacement
* Terrorism
And depending on where the property is, these options may be more or less useful to a landlord. For example, nowadays terrorism cover is a must have for city centre buildings.
But, what do I do to find such a suitable policy?
Commercial properties come in all shapes and sizes, and all sorts of uses, so it takes someone with good experience of the insurance market, to get you the best commercial buildings insurance quotes. This is where using a tried and trusted insurance broker, such as Higos, can pay dividends. They have close working relationships with many major insurers, as a result of which, they have their own specialist schemes with discounted rates for certain specialist applications. Examples of these being non standard build properties, unoccupied buildings, and buildings with high risk trades going on inside them. Their value also increases if you need expert help should a claim ever arise.
So for a quick shortcut to a good policy that addresses all your needs and fits your budget, talk to an insurance broker.