When most people decide to become landlords, they do so within the private home rental market, but anyone wishing to make the highest profits should probably consider the benefits of commercial. You see, in most instances, commercial property is rented for much more money than private family residences, and tenants usually stay put a lot longer. This means there’ll be much fewer headaches when contracts run out, and you’re far less likely to encounter any issues. Sure, commercial property is more valuable in most circumstances, but this just means you’ll need a little more to invest. However, it’s the insurance you really need to keep on top of.
So, if this sounds interesting to you, and you really want to know a little more about the opportunities currently available, then take a moment to read through the rest of this short article, and I’ll try to highlight the main reasons why commercial property insurance is crucial in 2014.
1 – It’s The Law
In England and Wales, the law states that every commercial property owner must have adequate commercial landlord insurance before they’re legally allowed to let the building into a business. This covers things like hairdressers, restaurants, offices, etc.
2 – It Will Save You Money
Though commercial property insurance usually costs more than its private equivalent, over time you’ll find it actually pays for itself. In most instances, private property owners will claim money only once or twice from their insurance policy, whereas commercial clients tend to get in touch around once each month.
3 – It Will Cover You For the Loss Of Rent
Let’s face it, businesses go bust all the time, so it’s a good job that commercial property insurance usually covers you for up to around 33% of rent loss. Although this number might seem low, it’s designed to help landlords continue to pay the bills, not make a profit.
4 – It Can Cover Accidental Damage
This is particularly useful for offices and places where lots of electronic equipment will be kept. Obviously, your premium will reflect the amount of coverage you require, so opting for a policy that covers accidental damage will increase your monthly bills. That said; if any accidents occur thanks to all that electrical equipment, you’ll be safe in the knowledge that someone else will be paying for it.
5 – It’s The Sensible Thing To Do
Just imagine what would happen if you were renting a commercial building to a local business and you didn’t have adequate insurance. Maybe the roof starts leaking one night, and you simply don’t have the money to pay for the repairs. Will that business continue renting the property from you? No way, they’ll be in a new one before you can say “waterproof sheeting”. So, don’t be a fool and make sure you get commercial property insurance this year.
Well, folks, I’m getting off now because you need to start getting quotes, and I don’t want to take up any more of your time. Hopefully, I’ll see you back here again over the next few days for more interesting and informative insurance articles.
Bye for now!