Can commercial landlord make you pay buildings insurance?

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    Can commercial landlord make you pay buildings insurance?

    Hi, we have recently taken over a resturants and our landlord has charged us for building insurance and i have a few questions.
    1. can they do that when its their building thats insured not us?
    2. They have student flats upstairs so how do we know they aren't charging us for the whole building not just our restaurant?
    3. They claim its a group policy as they do let alot of student accommodation but when we ask for proof that its insured and what it covers asking for a summary of just our building they just fob us off knowing when we ring the insurance people they cant tell us anything because of data protection. They legally have to show us a summary right just our stuff not any other propert?
    4. How much roughly do people pay a year for building insurance for a small restaurant?

    As it's a commercial let then they can charge whatever the contract you signed says that they can.

    If it says you have to pay the buildings insurance then you are contractually obliged pay it.

    As a ridiculous example-
    If it says you should pay for the landlords round the world cruise, and you signed to accept it, then you would be contractually obliged to pay for his holiday.


      In our contract it only says we should pay it not how much and we have been asking to see a copy of it and they are being very evasive as there are flats upstairs too we want to know if we are paying insurance for them too :/ and if they are charging alot for the year


        Your property lease should state the percentage of the total premium payable to the landlord's buildings insurance policy..

        You can make a written enquiry asking for a "summary of insured cover for the building" for which you must contribute annually and get a reply within 30 days. You cannot request this information by telephone from the landlord because of data protection..

        The "summary of insured cover " should give you the Name of Insurance Company and insurance broker , policy number , name of policy holder , the property address, the insured sum for building re-instatement , public liability cover and any other covers.

        After obtaining the "summary of insured cover" , you can seek quotations for "same level of insured cover" from other insurance brokers to compare with cost of insuring your building on a like for like basis.


          Do commercial leaseholders have the same rights as residential leaseholders outlined below..

          Where a landlord fails without reasonable excuse to comply with either a request for insurance details or to inspect or have copies of the relevant policy or associated documents, they commit a summary offence and are liable for a fine of up to £2,500 (level 4 on the standard scale) on conviction. The local housing authority, usually through the Tenancy Relations Officer, has the power to bring proceedings, or they can be brought by the leaseholder privately. Any prosecution must be presented to a magistrate within 6 months of the commissof the offence.

          Please note that local housing authorities are exempt from prosecution.


            Is your LL the freeholder or are they secondary leaseholders ie they have 999 yr lease and lease to you on a shorter term. ?
            You should have been made aware of your service charge commitments and insurance contributions. You could be paying towards communal parts that you have no access to.
            Most sensible commercial lease have set % of chargers the % can vary, you will most likely have to pay towards the external maintenance and insurance.


              You would have signed a Lease to take over the shop. Your solicitor should have made you aware of your obligations and gone over the terms and conditions.

              Some of the points have already been made. I would expect the freeholder to insure the building under a block policy. You would pay a share of the insurance and the flat owner would pay the other share. Commercial premises may contribute more in costs, so don't be surprised it is n't an equal split.

              You would also need to get a separate and additional policy to insure your own business. For instance, if the chef makes a mistake and a diner dies due to an allergy intolerance...


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