Insurance

Looking for help with commercial property insurance? Commonly known as commercial property landlord insurance, it’s distinctly different from conventional domestic property protection and a must for people looking to let out a premises to third parties for commercial applications.

First time commercial property owners can often be surprised by the need for such policies. However, tenants are only classed as a commercial enterprise inhabiting a leased property. This should be laid out in any legally sound rental agreement, which will also specify that the landlords should look for an insurance quote as soon as possible.

Finding An Insurance Policy That Works For You

Prideview Group are on hand to source highly competitive commercial building insurance quotes for all manner of building types. These can include investment properties, hotels, pubs, night clubs and retail premises. Buy-to-let residential properties also fall into this category, with insurance brokers providing tailored policies for landlords looking to protect their assets.

Experts in the field
We are experts in portfolio property management. One year we managed a portfolio totalling £350 million. Our clients enjoyed significant cost reductions across the board, without the sting of insurance premiums.

We operate as appointed representatives of a large corporate insurance broker, allowing us to enjoy a unique position in the market that means we can obtain like-for-like UK commercial property insurance quotes quickly and at costs that suit your budget needs.

We deal with pursuant claims and subsequent renewals efficiently and punctually, taking all the hassle out of this confusing area of commercial property. Your commercial property will be able to enjoy the applied expertise of other departments within our company, granting you synergised solutions and industry insights into commercial property management in general, acquisitions, disposals and financing.

Freeholder essentials

In the event of a Freehold Landlord taking over a commercial premises, some important issues need to be considered.

Here’s our summary:

  • The freeholder does not have to go for the lowest premium, but a reasonable one.
  •  To ensure the level of cover is reasonable, the use of a broker is recommended.
  • The provisions for insurance, including the type, the level, who can underwrite, who arranges it and how payment is split amongst leaseholders or freeholders can vary significantly from lease to lease.

  • Often, over time, the rebuild cost of the building moves out of sync with the sum insured. An insurance re-valuation may be worthwhile, and its cost may be recoverable from the lessee.
  • Claims must be made within a strict timeframe of the loss event, and in line with a number of other protocols, in order to maximise the chance of a pay out.
  • Damage caused by an insured peril, such as fire, lightning, theft or flood will normally be covered, but damage though general wear and tear or lack of maintenance will not be.

Once you’re clued up on important issues like these, make sure you take the time to get acquainted with the commercial insurance phrasebook.
Confused by Terms Like Sum Insured, Declared Value And Reinstatement Value?
You’re not alone. Below, you’ll find some essential definitions for commercial insurance concepts:

Sum insured
The sum insured is made up of two elements being a ‘declared value’ and an ‘inflated provision’.

The declared value or reinstatement value
The declared value relates to the overall cost of rebuilding premises insured as they were on the first day of an insurance period. Provided that this figure is adequate on that particular day, any claims will be totally free of average. Should the figure be inadequate, the average could find itself being applied. The result is that any valid claim payout faces being proportionately reduced by the amount a property is deemed to be under-insured.

The inflation provision
This relates to the percentage uplift that’s designed to accommodate inflation during any insurance year, as well as the following period outlined for designing, planning, tendering and eventual reconstruction. This is regardless of however long all that might take to complete. Generally speaking, inflation provision usually equates to 30% of the building declared value, giving property owners plenty of breathing room to accommodate unpredictable inflation spikes and negate a future incidence of loved doors.

Insurance quotation essential
The key thing to focus on when obtaining a quotation for insurance is the declared value and reinstatement value. Sum insured is more arbitrary, but remains an important figure to the whole, nonetheless.

One thing to note about reinstatement value is that, over time, it moves out of sync with market level. In the event of this, an insurance re-evaluation might be worth thinking about. What’s more, the cost of this may be recoverable from the lessee. Automatically uplifting instatement values in line with inflation levels allows us to partly adjust for these kinds of changes.

The Royal Institute of Chartered Surveyors provide us with these crucial values each and every year on renewal. Regardless of the regularity of this, a reinstatement variation is ordinarily recommended at a period every three years.

Get in Touch

If you require further information on any of the topics mentioned above, don’t hesitate to get in touch with the team today. 

Pride Management LLP (FRN 567188) is an appointed representative of Bircroft Insurance Services Limited (FRN 310441) which is authorised and regulated by the Financial Conduct Authority. This is in accordance with GEN4 Annex 1 of the FCA Handbook (see http://fshandbook.info/FS/html/FCA/GEN/4/Annex1)