What does Commercial Property Insurance cover?
BUILDING/CONTENTS
LOSS OF INCOME
RENT DEFAULT
PROPERTY OWNERS LIABILITY
ALSO AVAILABLE
More about Commercial Property Insurance
Why do I need insurance when my tenant already has a policy?
Even if your tenant has taken out a policy which includes Building cover, as a property owner you have a unique Liability exposure only you can protect yourself against. Liability cover is designed to respond to the named insured for their business activities. This means the Liability section of your tenant’s policy will only respond to their business activities and does not extend to you as the property owner. Also, if you allow the tenant to take out insurance on your behalf, you lose all rights to enquire and make changes to the policy as you would not be considered the policy holder. Theoretically, the tenant could make changes and claims without informing you.
What is an Indemnity Period and how I do choose an appropriate level?
The Indemnity Period is the length of time the insurer will pay Loss of Income following an insured event. When setting an Indemnity Period, it’s important to consider all the processes involved following a major or total loss of the Building. For example: changes in building regulations; planning permissions; the removal of debris; ease of access to the property; drafting of plans; and rebuild time itself. Honan recommends a minimum of 24 months, however greater length should be considered for, but not limited to: larger buildings; buildings with special features; heritage listing; and asbestos.