Building Insurance on a commercial premises

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    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?

    #2
    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

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      #3
      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.

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        #4
        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.

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