What Is Property Owners Insurance?
Property owners insurance is designed for landlords of commercial premises, covering the building structure and, often, the landlord's liability as owner of a property occupied by tenants or visited by the public.
What It Typically Covers
- Buildings cover for the commercial structure
- Loss of rent if the property becomes uninhabitable following an insured event
- Public liability for injury or damage claims relating to the property
- Landlord's contents, for any items the landlord provides, such as communal fixtures
Commercial vs Residential Landlord Insurance
Property owners insurance for commercial premises differs from residential landlord insurance, which covers rented homes, see our Landlord Insurance UK guide. Commercial policies are typically tailored to the type of premises and the nature of the tenant's business.
What Affects the Cost
Premiums depend on the type and value of the property, its location, the nature of tenants' businesses, the terms of the lease, and any vacant periods, unoccupied commercial premises can carry higher risk and may need specific cover.
Responsibilities Under the Lease
Commercial leases typically set out clearly who is responsible for insuring different aspects of the property. Reviewing this alongside your insurance arrangements helps avoid gaps, particularly around contents, fit-out and liability for shared areas.
Frequently Asked Questions About Property Owners Insurance UK
What does property owners insurance cover?
Typically the building structure, loss of rent, and public liability for landlords of commercial premises such as shops, offices or industrial units.
Is property owners insurance the same as landlord insurance?
It's a related but distinct product, tailored to commercial rather than residential rental property.
Do I need cover if my commercial property is empty?
Standard cover often reduces after a set vacant period, so specific unoccupied property cover may be needed for extended vacancies.
Who is liable if a tenant's customer is injured on the property?
This depends on the specific circumstances and lease terms, but property owners insurance often includes public liability cover for the landlord's own responsibilities relating to the building.
What affects the cost of property owners insurance?
The type and value of the property, location, tenant's business type, lease terms and vacancy risk all influence premiums.
Conclusion
Property owners insurance protects commercial landlords against a range of risks associated with owning and letting business premises. Reviewing your lease terms alongside your insurance ensures responsibilities for the building, contents and liability are clearly and adequately covered.
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