The summer season is often a time of year when commercial property owners and especially student landlords will evaluate the condition of their property and their annual running costs.
When the property is vacant, this offers an ideal opportunity to carry out buildings maintenance and upgrade the décor ready to welcome back tenants for the new autumn term.
With the cost of materials and property services running costs continually on the rise, it is also worth exploring alternative options to ensure that the best value for money is achieved.
One cost area which can sometimes get overlooked is commercial property insurance. When landlords are so busy with day to day running commitments, it’s easy to press auto-renew on the current property insurance policy rather than shopping around to compare. It’s also worth remembering that the cheapest policy is not always the best option for the landlord’s business. Whilst a cheaper cost might seem appealing in the first instance, when it comes to the detail and in the event of an unexpected circumstance, landlords can sometimes find themselves inadequately covered, and subsequently have to find extra finances to cover costs.
What should landlords look out for in terms of commercial property insurance?
- Full Rebuild and Reinstatement Costs – Insurance for the full rebuild cost rather than just the market value or purchase price is essential. Ensure that both demolition and building upgrades include materials costs and labour charges.
- Property Owners Liability – In respect of landlords this is particularly important as it covers landlords, their tenants, contractors and visitors in terms of claims and against injury whilst visiting the property due to defects or inadequate maintenance.
- Loss of Rent / Rental income – Should the property become damaged and require time to repair, rebuild cost insurance won’t cover for loss of rent whilst under construction. Therefore, it’s worth factoring in financial support to cover rent loss whilst repairs are being made.
- Risks specific to the property – Fire, explosion and smoke, escape of water, storm and floods, theft and malicious damage, accidental damage, subsidence, glass, impact by vehicles, unoccupied periods, terrorism (particularly for certain commercial locations or property types) are all considered as part of a commercial property insurance policy.
- Landlord’s contents and fixtures – If the property includes internal contents such as fridges, ovens and washing machines, sofas and bedroom furniture, then landlords will need to establish if contents cover is included or required as a separate policy.
- Legal Expenses – Should a landlord find themselves in a legal dispute with a contractor or a tenant, legal expenses insurance policies can help to cover towards legal costs.
Here at JRW Risk Solutions we offer commercial and residential property insurance policies to landlords and property business owners. Our policies are transparent and offer clear options so that clients can understand how their business and property is covered. To find out how we can help to support your commercial property in readiness for the autumn term, please contact our team for more information or see our property owner’s insurance page for further details.