Expert Advice from The Commercial Property Insurance Brokers
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What is
Commercial Landlords Insurance
?
As the property owner of a commercial strata unit, a commercial landlords insurance policy will specifically cover the fixtures and fittings in your building that are not part of the body corporate policy. It provides cover for unforeseen events that would otherwise cause significant financial losses, such as fire, malicious damage, and other types of damage.
You or a past tenant may have installed racking or a mezzanine floor; you need to insure these under a commercial landlord policy as they’re now part of your investment property. Protecting your loss of rental income (if these fixtures were damaged) and public liability for the premises is also part of the same package of insurances. Machinery breakdown for air-conditioning units can also be added if required.
Policy features of
Commercial Landlords Insurance
can include:
What Can Be Covered
Accidental, malicious damage and perils (eg. fire)
Loss of rent
Injury to third parties
Damaged glass or signage
Landlord legal liability
Machinery breakdown
Tax audit
What Cannot Be
Flood, unless requested
Tenant default
Deterioration (wear& tear)
Neglect, lack of maintenance
Properties vacant for continuous periods (varies by insurer)
Commercial Landlords Insurance
Claim Example
Michael’s previous tenant installed a mezzanine floor in his strata unit before vacating a year ago. Michael found a new tenant to move in, and his lease for the premises is now for a unit with mezzanine flooring installed.
Storm damage allowed water into the premises which caused the wooden flooring to buckle and require replacement. Michael thought his body corporate policy would fix it – but they declined the claim as the improvement was not part of the original structure. Michael learnt that the line on the policy that said it covered “lot owner fixtures and improvements” would only trigger if the building was a total loss – it did nothing to protect against the storm damage.
Fortunately, Michael had told his broker about the situation when he signed the new lease, and his broker had added cover for fixtures to his commercial landlord’s policy. Not only was there cover for the repairs, but also for loss of rental income while the flooring was repaired, and the premises weren’t useable.
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Navigating
Commercial Landlords Insurance
Answering your most asked questions.
It's usually specified in the commercial lease, often the tenant's responsibility, but the importance of fair premium apportionment is crucial. Discuss your commercial lease insurance obligations with us.
The property owner should always insure the building, even if the tenant pays the premium, to ensure adequate coverage. Protect your commercial investment by insuring it adequately.
A bond may not cover all financial losses, making it sensible to have adequate insurance for your significant asset. Secure your investment with commercial landlords’ insurance.
Covers property damage, liability, and loss of rental income. Ensure comprehensive protection for your property with our insurance solutions.
Coverage varies; landlords need property cover, loss of rent, and liability insurance, with additional options depending on whether they own a building or a unit. Let us tailor the right insurance package for your landlord needs.
Costs vary based on property type; strata units are cheaper than buildings. Brokers can provide competitive quotes. Discover cost-effective landlord insurance options with our help.
Yes, insurance can cover loss of rent due to specific perils like fire or flood, but typically not tenant default due to claim difficulties. Ensure your rent is protected against perils with our tailored insurance solutions.