Commercial Property

Commercial Property Insurance for Building Owners

For people who own a commercial building and lease it to tenants. It covers the building itself, anything of yours inside it, the rent you would lose if it could not be let after damage, and your liability as the owner. If you trade from premises you rent, a Business Pack usually fits better.

What it covers

  • The building, at what it costs to rebuild
  • Loss of rent while the building cannot be let
  • Your contents and fittings in common areas
  • Property owner liability

What it does not

  • Your tenants’ own stock and contents, which are theirs to insure
  • The land itself, which is never insured
  • Wear and tear, or a building falling into disrepair
  • Loss of rent for a period when no lease was in place

Worth knowing

The sum insured is what it costs to rebuild today, not what the property would sell for. A rebuild carries costs a sale price does not: demolition, debris removal, professional fees, and meeting current building codes. Insuring at market value is the most common reason an owner’s claim falls short.

What an insurer will ask you

These are the real questions, and why each one changes your premium. Our chat walks through them with you.

What kind of property is it, and what do your tenants do?

Insurers price a building on what happens inside it. A cafe with fryers, a panel beater with a spray booth and an accountant in the same strip are very different fire risks, and the riskiest tenant sets the premium.

What would it cost to rebuild today?

Not what it would sell for. A rebuild carries costs a sale price does not — demolition, debris removal, professional fees and meeting current building codes. Insuring at market value is the most common reason an owner’s claim falls short.

What rent does the property earn, and how long would it take to re-let after damage?

That sets your loss-of-rent cover and how long it pays for. It has to run through the claim, the approvals and finding new tenants, not just the build.

Is there a lease in place?

Policies generally will not pay loss of rent for a period when no lease or periodic tenancy existed at the time of the damage. A building between tenants is a different conversation.

Tell us what you do, and we will take it from there.

No forms. Answer a few questions in chat and an authorised broker takes it to the market for you.

This page is general information only and does not take your objectives, financial situation or needs into account. Consider the Product Disclosure Statement before deciding. Cover is subject to the insurer’s terms and acceptance.