Commercial Property Insurance for Landlords & Property Owners

commercial property insurance

Specialist commercial property insurance for landlords.

Investment Property Partners is a leading independent property investment specialist advising clients throughout the UK and internationally. In addition to our property investment services we offer a range of complimentary property finance, buy to let and commercial property insurance, and investor support solutions.

Commercial Property Insurance

Commercial property insurance is essential for all prudent landlords and owners of commercial premises – be it offices, shops, industrial premises or other classes of commercial property. Without adequate insurance cover your property investments are at significant risk.

As a responsible property owner or asset manager you should always ensure that your property investments are fully protected, tenanted or not.

For tenanted properties most commercial leases will require that the landlord put in-place sufficient insurance cover for the premises, recouping the cost of the premiums from the tenant via a service charge.

Interested in Commercial Property Insurance?

If you’d like to learn more about our commercial property insurance, specialist finance and property investment capabilities and how we can help you, if you’d like to receive information about investment properties for sale, including the latest new developments and off-market investment opportunities, or if you’d like to discuss your requirements in more detail please contact us today:

Full Reinstatement Value

Property owners should always insure their commercial property for the full rebuilding cost, commonly known as the full reinstatement value, rather than just the market value.

This is because the property owner will only be able to claim the cost of what they have insured – regardless of the amount of damage.

This could mean that if the sum insured is based on the market value rather than the full reinstatement value, and the rebuild costs exceed this amount then there could be a shortfall in any insurance payout if the building was badly damaged or completely destroyed.

The shortfall would need to be met my the property owner.

The building reinstatement value should be always determined by an annual insurance valuation which can be carried out by a suitably qualified Chartered Surveyor.

Commercial Property Insurance & Insured Risks

Commercial property insurance policies will typically insure buildings and premises for a range of risks that include:

  • Fire & lightning

  • Explosion (excluding terrorism)

  • Malicious damage

  • Floods

  • Storms

  • Riot

  • Damage caused by vehicles

As well as insuring the property, you should also consider taking out public liability insurance if members of the public visit your premises.

Additionally, if the property is in an inner city area terrorism insurance should also be included.

Loss of Rent Insurance for Commercial Property

As a landlord it is also important that you insure against loss of rent in case your property becomes damaged and cannot be let to tenants.

The insured period for loss of rent may vary from two to three years and is designed to cover the time it would take to fully reinstate the building in the event of total destruction.

Unoccupied Commercial Property

Finally, property owners should always advise their insurance company if their premises are to be left unoccupied for any length of time, for example during a void period.

Insurance cover is likely to be reduced to fire only and may not include malicious damage caused by vandalism.

You therefore may wish to consider alternative precautions such as increased security.

Specialist Commercial Property Insurance Solutions

As a leading independent property investment specialists Investment Property Partners offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.

If you are a landlord or commercial property owner looking for specialist commercial property insurance solutions please contact us today to discuss how Investment Property Partners can help you.

You may also be interested in…

Gross development value
Parry's valuation and investment tables
Property development finance guide
Residual method of valuation
Property yield, calculating yields and return on investment
Commercial property valuation using the profits method
Capital gains tax property disposals

Further reading…

More information about commercial property insurance for landlords and owners of commercial property… here →

Summary
User Rating
5 based on 27 votes
Service Type
Commercial Property Insurance
Provider Name
Investment Property Partners
Area
United Kingdom, Europe and International Real Estate Investment Markets
Description
Specialist commercial property insurance for landlords & property owners. Get specialist support on the best commercial property insurance solutions at Investment Property Partners.
URL