How is commercial landlord insurance different from domestic landlord insurance?

The cost of landlord insurance premiums can vary between commercial and domestic building policies due to the different building and tenant types involved.

The majority of residential properties are constructed from brick whereas commercial buildings use a variety of materials. Each material will pose its own level of risk, which will affect premiums. For example, bricks are hardwearing and cheap to insure. Whereas concrete walls are prone to cracks and timber is a greater fire hazard, and the insurance cost will reflect this. In addition, commercial buildings have more complex heating and electrical systems, which will cost more to repair, pushing premiums up.

Various tenant types can be covered with standard landlord insurance including students, DSS tenants and professionals. These tenants will not carry out business from home, and are fairly low risk. In contrast, commercial premises could be the home to hazardous activities and there is a greater risk of damage and accidents.

CIA can advise you on the level of cover you need for the type of building and the tenants that will be working from the premises.