Building Insurance on a commercial premises

  • Filter
  • Time
  • Show
Clear All
new posts

    Building Insurance on a commercial premises

    I lease a commercial premises. In my lease it says that I must pay my LL's buildings insurance policy premium.
    I recently read though my LL's policy and discovered that there are a few issues in the policy which simply are not correct.
    For example the policy was granted on the understanding that:- the premises has no history of subsidance.
    The fact is that the building has a long history of serious subsidance and 20 years ago it was condemed.

    In view of this, is this building actually insured?
    Should I refuse to pay the premium to my LL?
    If I don't get any joy out of my LL should I contact his insurer?

    Hi Kachanski

    With reference to our discussions about other issues in another thread, this is something you should make sure that the Mortgage Company is made aware about.

    I am not an insurance expert but I am fairly sure that if the L has made a false declaration to the Insurance Company it can nullify the whole policy.

    Make the Mortgage Company aware of this as it will put additional pressure on them to resolve matters regarding the ownership.

    PS I still do not have enough posts but I am getting closer!
    I also post as Chessy when sober


      Why are you rocking the boat. Your lease says that you must pay your landlord for insuring the building. OK you have read the policy and have noticed a clause that is "inappropriate" to the premises you rent. But thats not your problem, its your landlords problem should he ever make a claim, however a claim for perhaps storm damage to a roof would be unaffected. Its your legal obligation to comply with the terns of the lease. Perhaps if your landlord increased the cover of the policy to include "subsidence cover" the premium would dramatically increase which you would then have to pay.
      And "should you refuse to pay the insurance". Read your lease. You may find that Insurance is classed as Rent and the landlord can send the Bailiff in immediatly.
      PS. You are lucky, for many years I rented a Commercial Property and my Landlord was a Major Bank and I had to pay them the Building Insurance and they "totally refused" to send me a copy of the policy. At least you are more informed.


        The reason I am rocking the boat is because the condition of the premises is so poor and in such a state of disrepair that my business is under threat.
        If part of the building or roof fails (and it is a question of when as opposed to if) and I am unable to trade, how will this affect my own business insurance?
        If my LL insurer was aware of the condition of the premises due to years of 0 maintenance on the part of my LL they would possibly refuse to insure or as you say the premium would be substantially higher.
        I do not wish to rock any boat out of spitefullness towards my landlord, I am simply concerned about my business which is also my home.


        Latest Activity


        • Rent Guarantee Insurance
          by oi2004as

          I would be interested in your view on the following

          I received a renewal Legal & Rent Guarantee Insurance documents from Rentguard (which initiallyy I purchased through Openrent)

          There is the following condition in their 'statement of fact':
          11-07-2020, 11:59 AM
        • Reply to Rent Guarantee Insurance
          by tatemono
          that's the rent guarantee insurance we use and which has worked for us for many years....
          13-07-2020, 20:58 PM
        • Reply to Rent Guarantee Insurance
          by AndrewDod
          No 7.1 will not likely stand up in court. You cannot have open ended guarantor deeds that apply in this way robustly.

          The fact that you have said that it will apply also to unknown rental increases, for an unknown term, and covers unknown costs means that it is likely invalid
          13-07-2020, 19:39 PM
        • Reply to Rent Guarantee Insurance
          by oi2004as
          To jpkeates
          This is not about zero-risk option. The part which I do not like the most is that I become tenant-dependant for buying insurance.
          They may not reply to my email about their circumstances
          They may not provide correct information
          They may not allow to run re-referencing...
          13-07-2020, 19:14 PM
        • Reply to Rent Guarantee Insurance
          by theartfullodger
          HOW was the guarantee documented please? Enacted as a deed? Guarantor credit checked, given AST & guarantee and advised to take legal advice prior to signing, please?...
          13-07-2020, 19:06 PM
        • Reply to Rent Guarantee Insurance
          by oi2004as
          To AndrewDod
          I have a guarantor on this Tenancy Agreement.
          This is 12-month fixed and then becoming rolling (monthly) contactual agreement.
          The guarantor is a party to the agreement (signed)
          The agreement has the following clauses:
          7.1 In consideration of the Landlord agreeing...
          13-07-2020, 19:00 PM
        • Reply to Rent Guarantee Insurance
          by jpkeates
          I think you're looking for a zero-risk option, but property letting is an investment business with risk baked in.
          I don't blame you! But I think you're going to struggle.

          Like all of us, the rent guarantee insurance sellers didn't see the pandemic coming, and it wasn't covered in...
          13-07-2020, 16:25 PM
        • Reply to Rent Guarantee Insurance
          by AndrewDod
          If a guarantor agreement is valid at all (which is a BIG if) it is not going to be valid past the initial fixed term (no matter what it says) - so as much use as non-stick Sellotape or Jeremy Corbyn....
          13-07-2020, 16:08 PM
        • Reply to Rent Guarantee Insurance
          by Boab
          I doubt anyone in this town has ten years rent. I’m obviously being Uber selective on tenants , but I also wondered about guarantors as well. Does a guarantor have the absolute obligation to cover rent defaults or can they avoid paying as well?...
          13-07-2020, 15:47 PM
        • Buildings & Contents Insurance - Recommendations
          by landlord-man
          Can anyone recommend a broker / insurance provider? I have a 1st floor property with 4 flats.

          I'm looking for recommendations on who provided a fair quote but also any recommendations on companies who actually paid out a claim promptly / fairly.

          Thank You...
          13-07-2020, 10:57 AM