Commercial Landlord Insurance

The main difference between commercial and residential landlords is the type of property that is being rented out. Residential landlords rent out residential private property like flats, houses and apartments for people to live in.

Commercial landlords, on the other hand, own and let out commercial properties like shops, garages or office buildings for business and commercial use. Therefore, the insurance needs are much different and require different policies. 

As a commercial landlord, there are risks involved when renting out your property for business use, including costly property damages. You should consider the following:

• Commercial mortgage providers require you to take out buildings insurance
• Local authorities/councils might ask business or property owners to have buildings cover

As a landlord, you are responsible for insuring the building, but you’re not responsible for everything. Some insurance should be arranged by the renter. Commercial landlord insurance doesn’t cover the following:

• Stock & contents insurance - The tenants are responsible for sorting out insurance for their business supplies and stock. 
• General wear and tear -  Fair general wear and tear of your property under occupation is not covered by commercial landlord insurance.
• Damp issues - Commercial landlord insurance doesn’t cover rising damp as this means it’s not in good condition and shouldn’t be rented out. Your policy could be invalidated if you don’t tell your insurer you have existing damp problems.

Policies vary per insurer. Always refer to your policy wording to see what’s included.

Your costs will depend on a number of factors including the size of your property, where it’s located, the insurance covers you require and your claims history. Get in touch with a member of our insurance team to find out how much you’re looking at paying.

No, it’s not a legal requirement, but it is a good idea to protect your property as it’s a large investment. If a fire broke out in your building, causing thousands of pounds worth of damage, sufficient building’s insurance cover should help cover the costs; without it, you’d be left to pick up the bill.

It’s worth noting that some mortgage lenders require commercial landlords to have insurance, so you should check the small print in your agreement.

We can help cover a number of different commercial properties, including:

• Offices
• Shops
• Manufacturing/Warehouses
• Hospitality - Takeaways, Pubs
• Salons/Barbers

Yes, you still need insurance if your property is vacant as it’s still at risk of fire, theft or break-ins.  If your property is empty (even if you're checking on it regularly), you may need unoccupied landlord insurance. Get in touch with us today to arrange this.

If your premises is empty for any length of time beyond the permitted number of days allowed (this is normally 60 days, but check your existing insurance policy), you need to let us know by calling 0800 158 5263  so we can inform your insurer. 

At Bionic, we champion UK business owners and want to help in every way we can. That’s why we use a team of knowledgeable insurance brokers who work with a panel of trusted insurers to help you find coverage for your needs. 

Our UK-based team helps business owners to compare business insurance quotes and find the right insurer that fits. Get in touch with us today by starting a quote online.