On the surface, both policies provide cover to protect a property owner’s buildings, but there are two key differences between commercial and domestic landlord insurance – the nature of the building, and the type of tenant.

Building types: Whereas many domestic properties are of standard brick and tile construction, commercial premises can vary widely in their construction.

This means premiums can also vary significantly to reflect the nature of the risk of covering buildings that could be constructed from timber, brick, or steel, or feature large flat-roofed areas, asbestos, or cladding. This will be reflected in the sum insured, which represents the full rebuild cost of the property.

Commercial buildings can also have a greater variety and complexity of heating and electrical systems which, again, affect premium rates.

Tenant types: Other than working from a home office, domestic tenants do not, generally, undertake business from their property.

But the risks to insurers increase for commercial premises, where all sorts of industrial equipment could be used, including potentially hazardous activities like welding, or the use of flammable chemicals.

Insurers need to provide the right cover at the right premium to cater to the individual needs of the property owner, depending on the type of building and the nature of the work undertaken.

There is no legal requirement to do so, but any companies providing finance for you may have this as a condition of the finance.

Yes if your business owns the property and you operate from there. If you are solely a landlord then you will require property owners insurance. If you are the tenant you would not have an insurable interest and would not usually be able to insure the building unless you have been made responsible to do so under conditions of the lease.

Yes, we can provide this service.

Yes this is no problem, our experts will understand your risk and advise on suitable products for your needs.

Yes, although the applicable excesses will vary from policy to policy. In some instances it is possible to increase your excess to obtain a premium discount.

Improvements made by the tenant should be reflected in the lease, which will also set out who is responsible for insuring them. In general, if there is a full repairing lease in place then the tenant is responsible for both the cost of the improvement and the insurance of it.

For more guidance and advice about insurance, and being a commercial landlord, visit our landlord insurance hub.

Who pays for refurbishments will depend on the terms of the lease. A full repairing lease would make the tenant responsible for the properties’ maintenance and upkeep.

A list of building updates should be kept, and the insurer informed of any work you are carrying out, especially if the work means the property will be unoccupied.

If you are self-employed, you can claim the costs of commercial property insurance as an expense against tax.

Insurers may provide discounts if you have taken extra precautions to prevent a claim, such as fitting a high level of fire protection.

You may be able to secure additional discounts by committing to a more rigorous risk management regime, but these will always be at the discretion of the insurer.

The cost of your commercial landlord insurance will depend on a number of factors, including:

• the cost of rebuilding your property;
• the nature of the business carried out;
• the construction of the building;
• the location of the building.

Interested parties can be noted on your commercial property insurance policy, but only those with an ‘insurable interest’ in the property, such as a mortgage provider.

Many commercial properties comprise multiple uses, for example, shops with flats above them.

Most insurers will be able to provide cover for such an eventuality, combining both uses.

If you employ somebody in relation to the property, such as to maintain it, you are required by law to take out employers liability insurance.

If you own the freehold, then you will be responsible for insuring the building. If, however, you only own the leasehold, then the building is likely to already be insured by the freeholder, so you won’t need to take out buildings insurance yourself.

If you are the leaseholder you should check the terms of your contract.

Yes, and you need to inform them of the exact nature of the business undertaken in the property, as this has a bearing on the risk rating, and therefore the premium charged.

When you obtain a commercial property insurance quote from an insurer, you will need to provide full details of the construction of the property, including details of how much of the property has a flat roof.

Over time, flat roofs are more prone to leaking than standard slate or tile roofs, and so there is more potential for water damage.

Many insurers include a ‘flat roof warranty’ clause, which requires a minimum level of maintenance be carried out on any flat-roofed areas.