Understanding Commercial Buildings Insurance – What is Covered?
A commercial property insurance package can be tailored to your needs. The following needs to be considered:
- Liability for injury or damage—In the event of property damage of personal injury occurring due to a landlord being negligent in maintaining the property, the property owner will be held responsible.
- Necessary repairs—If a building or property is damaged and must be repaired or rebuilt, commercial buildings insurance is key to covering the resulting costs.
- Loss of rent—If a property becomes unfit to be let due to an insurable event—such as a fire—the loss of rent can be recouped through commercial buildings insurance.
- Damage to landlords’ contents—It is possible that landlords will own not only a building, but also some of the contents inside..
Furthermore, there are additional situations that commercial property insurance can provide cover for which may not generally be included in a standard policy. It is important for policyholders to understand all aspects of their commercial property insurance. This includes whether or not a policy will be triggered by certain specific situations, such as:
- Unoccupied properties—Due to unoccupied properties having a higher risk of break-ins, vandalism, squatting and other crime, it needs to be disclosed if empty. There is generally a grace period of approximately 30 days between when a property becomes vacant and when the owner will be required to switch to a vacant property insurance policy.
- Wear and tear—Buildings and property will inevitably require regular maintenance, which is not covered by commercial property insurance. Policyholders should take the time to understand exactly what types of damage their insurance will cover.
- Flat roof warranty—Flat roofs are consistent concerns for insurance providers due to increased risk for leaks and resulting property damage. If a property’s roof has flat sections, a policy may require owners to perform certain servicing and repairs on a regular basis.
