Any owner of commercial premises needs to ensure that they are fully covered against loss or damage, by taking out commercial property insurance. In the case of any unexpected adverse circumstances, this would ensure the business is able, as near as possible, to run in the manner it did before any unfavourable events took place.
But just taking out insurance is not enough. It must be kept up to date and reviewed on a regular basis to ensure the coverage is adequate. Following is a list of items that should be covered by commercial property insurance.
Building Replacement Value
Commercial insurance needs to go beyond covering just for the structure of the premises and will have to include such things as fixtures and fittings, air-conditioning and so on. It would be prudent to employ the services of a professional property evaluator to get a realistic estimate of the costs involved.
Trade and Access Extension
Suppose something goes wrong with the pipe work in a large block of flats. The insurance will only generally cover accidental damage. Establishing whether or not the damage was accidental or otherwise could cost lb15,000 in such a situation.
Squatter's Rights
A controversial change in legislation back in September 2012 means that it is now illegal to squat in residential premises. But this law does not apply to commercial premises, making them an obvious alternative for people living in that situation. Therefore, if the premises do become empty for an extended period, not only should the premises be made as secure as possible, but it is also important that insurers know, so that appropriate cover is in place for this circumstance.
Inflation Provision
The total sum covered by the insurance ought to be inflated by 50% to protect against escalating costs during the course of the repair and protect from under-insurance.
Acts of Terrorism
If the premises is outside one of the big cities it is not likely to be vulnerable to an act of terrorism, but if it should, then the owner is likely to be liable.
Rental Insurance
Anyone with a commercial property will have to consider whether the premises will be leased out at any point. If it is, then the nature of the tenant's business must be taken into consideration. Any high risk businesses will increase the premium. The owner will also have to take into consideration loss of rental income while the premises is undergoing repair.
Loss Adjustor's Fees
It is worth taking out extra coverage to cover loss adjustor's fees. If a claim exceeds lb5,000, a loss adjustor could speed along any repair work that may need to be carried out, and be of invaluable help in securing temporary premises for the duration of the repair work.
Business Interruption Insurance
In the event of damage to commercial premises and equipment, business interruption insurance will cover any deficit in pre-tax profits, and further costs incurred throughout the disruption period such as accountant's costs.
Commercial premises insurance is a vital defence against the unexpected and a clearly must for all owners of commercial premises.
But just taking out insurance is not enough. It must be kept up to date and reviewed on a regular basis to ensure the coverage is adequate. Following is a list of items that should be covered by commercial property insurance.
Building Replacement Value
Commercial insurance needs to go beyond covering just for the structure of the premises and will have to include such things as fixtures and fittings, air-conditioning and so on. It would be prudent to employ the services of a professional property evaluator to get a realistic estimate of the costs involved.
Trade and Access Extension
Suppose something goes wrong with the pipe work in a large block of flats. The insurance will only generally cover accidental damage. Establishing whether or not the damage was accidental or otherwise could cost lb15,000 in such a situation.
Squatter's Rights
A controversial change in legislation back in September 2012 means that it is now illegal to squat in residential premises. But this law does not apply to commercial premises, making them an obvious alternative for people living in that situation. Therefore, if the premises do become empty for an extended period, not only should the premises be made as secure as possible, but it is also important that insurers know, so that appropriate cover is in place for this circumstance.
Inflation Provision
The total sum covered by the insurance ought to be inflated by 50% to protect against escalating costs during the course of the repair and protect from under-insurance.
Acts of Terrorism
If the premises is outside one of the big cities it is not likely to be vulnerable to an act of terrorism, but if it should, then the owner is likely to be liable.
Rental Insurance
Anyone with a commercial property will have to consider whether the premises will be leased out at any point. If it is, then the nature of the tenant's business must be taken into consideration. Any high risk businesses will increase the premium. The owner will also have to take into consideration loss of rental income while the premises is undergoing repair.
Loss Adjustor's Fees
It is worth taking out extra coverage to cover loss adjustor's fees. If a claim exceeds lb5,000, a loss adjustor could speed along any repair work that may need to be carried out, and be of invaluable help in securing temporary premises for the duration of the repair work.
Business Interruption Insurance
In the event of damage to commercial premises and equipment, business interruption insurance will cover any deficit in pre-tax profits, and further costs incurred throughout the disruption period such as accountant's costs.
Commercial premises insurance is a vital defence against the unexpected and a clearly must for all owners of commercial premises.
About the Author:
Discover more about investing in commercial property on the Addicted to Property blog. It's the only way to stay up to date with all the latest industry news.
Any owner of commercial premises needs to ensure that they are fully covered against loss or damage, by taking out commercial property insurance. In the case of any unexpected adverse circumstances, this would ensure the business is able, as near as possible, to run in the manner it did before any unfavourable events took place.
But just taking out insurance is not enough. It must be kept up to date and reviewed on a regular basis to ensure the coverage is adequate. Following is a list of items that should be covered by commercial property insurance.
Building Replacement Value
Commercial insurance needs to go beyond covering just for the structure of the premises and will have to include such things as fixtures and fittings, air-conditioning and so on. It would be prudent to employ the services of a professional property evaluator to get a realistic estimate of the costs involved.
Trade and Access Extension
Suppose something goes wrong with the pipe work in a large block of flats. The insurance will only generally cover accidental damage. Establishing whether or not the damage was accidental or otherwise could cost lb15,000 in such a situation.
Squatter's Rights
A controversial change in legislation back in September 2012 means that it is now illegal to squat in residential premises. But this law does not apply to commercial premises, making them an obvious alternative for people living in that situation. Therefore, if the premises do become empty for an extended period, not only should the premises be made as secure as possible, but it is also important that insurers know, so that appropriate cover is in place for this circumstance.
Inflation Provision
The total sum covered by the insurance ought to be inflated by 50% to protect against escalating costs during the course of the repair and protect from under-insurance.
Acts of Terrorism
If the premises is outside one of the big cities it is not likely to be vulnerable to an act of terrorism, but if it should, then the owner is likely to be liable.
Rental Insurance
Anyone with a commercial property will have to consider whether the premises will be leased out at any point. If it is, then the nature of the tenant's business must be taken into consideration. Any high risk businesses will increase the premium. The owner will also have to take into consideration loss of rental income while the premises is undergoing repair.
Loss Adjustor's Fees
It is worth taking out extra coverage to cover loss adjustor's fees. If a claim exceeds lb5,000, a loss adjustor could speed along any repair work that may need to be carried out, and be of invaluable help in securing temporary premises for the duration of the repair work.
Business Interruption Insurance
In the event of damage to commercial premises and equipment, business interruption insurance will cover any deficit in pre-tax profits, and further costs incurred throughout the disruption period such as accountant's costs.
Commercial premises insurance is a vital defence against the unexpected and a clearly must for all owners of commercial premises.
But just taking out insurance is not enough. It must be kept up to date and reviewed on a regular basis to ensure the coverage is adequate. Following is a list of items that should be covered by commercial property insurance.
Building Replacement Value
Commercial insurance needs to go beyond covering just for the structure of the premises and will have to include such things as fixtures and fittings, air-conditioning and so on. It would be prudent to employ the services of a professional property evaluator to get a realistic estimate of the costs involved.
Trade and Access Extension
Suppose something goes wrong with the pipe work in a large block of flats. The insurance will only generally cover accidental damage. Establishing whether or not the damage was accidental or otherwise could cost lb15,000 in such a situation.
Squatter's Rights
A controversial change in legislation back in September 2012 means that it is now illegal to squat in residential premises. But this law does not apply to commercial premises, making them an obvious alternative for people living in that situation. Therefore, if the premises do become empty for an extended period, not only should the premises be made as secure as possible, but it is also important that insurers know, so that appropriate cover is in place for this circumstance.
Inflation Provision
The total sum covered by the insurance ought to be inflated by 50% to protect against escalating costs during the course of the repair and protect from under-insurance.
Acts of Terrorism
If the premises is outside one of the big cities it is not likely to be vulnerable to an act of terrorism, but if it should, then the owner is likely to be liable.
Rental Insurance
Anyone with a commercial property will have to consider whether the premises will be leased out at any point. If it is, then the nature of the tenant's business must be taken into consideration. Any high risk businesses will increase the premium. The owner will also have to take into consideration loss of rental income while the premises is undergoing repair.
Loss Adjustor's Fees
It is worth taking out extra coverage to cover loss adjustor's fees. If a claim exceeds lb5,000, a loss adjustor could speed along any repair work that may need to be carried out, and be of invaluable help in securing temporary premises for the duration of the repair work.
Business Interruption Insurance
In the event of damage to commercial premises and equipment, business interruption insurance will cover any deficit in pre-tax profits, and further costs incurred throughout the disruption period such as accountant's costs.
Commercial premises insurance is a vital defence against the unexpected and a clearly must for all owners of commercial premises.
About the Author:
Discover more about investing in commercial property on the Addicted to Property blog. It's the only way to stay up to date with all the latest industry news.
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