Commercial Landlord Insurance

You need to advise CIA if the property becomes unoccupied for more than 45 days. We will talk you through your policy terms as each insurer has its own unoccupancy clause.

Commercial landlord insurance (also called business landlord insurance) is a specialist cover for landlords who let out their property for business reasons. Commercial properties can include shops, offices and warehouses. You can take out cover to protect the building and contents from perils such as fire, flood and theft.

Commercial landlord insurance is for landlords who let out their properties for business use, or have a portfolio of commercial and residential buildings.

Yes, we can offer this cover providing they are on the same title deeds.

The level of excess will depend on the building being insured and the amount of cover you require. Excess is £250 for most perils.

30 days.

The owner of the commercial property or landlord is responsible for the buildings insurance. Landlords typically pass this cost on to the tenant. It’s a good idea to clarify this in the tenancy agreement before the letting.

Yes, commercial landlord insurance is tax deductible as it is categorised as an ‘allowable expense’ by HMRC.

If tenants can no longer work in the building, they can’t be expected to pay their rent. A commercial landlord insurance policy will cover loss of rent so that you aren’t out of pocket providing the damage was caused by an insured peril.

Commercial property insurance isn’t a legal requirement, although your mortgage provider may require it as a condition of the loan.

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.