A milk bar owner in Carlton, Victoria had a Milk Bar sign dating back to the 1950’s outside his shop. Whilst in the process of new tenants moving into the building, it was noticed that the sign had been sawn off overnight. The insurer paid $6500 for a replacement.
Commercial landlord insurance typically covers property damage, loss of rental income, and liability protection. It safeguards the building from risks like fire or vandalism, compensates for lost rent if the property is uninhabitable, and covers legal costs if someone is injured on the premises.
Generally, the landlord is responsible for commercial building insurance, covering the building and its permanent fixtures. However, lease agreements may vary, and sometimes tenants may share or assume this responsibility. It’s crucial to review the lease terms to understand specific obligations.
Yes, landlord insurance is essential for commercial property owners. It provides specialised coverage that standard property insurance may not, protecting against property damage, loss of rental income, and liability claims, thereby preventing significant financial losses.
Commercial landlord insurance covers the physical building, loss of rental income, and liability related to renting out the property. Business interruption insurance, typically for tenants, covers income loss and operational expenses if a business is unable to operate due to an insured event.
To minimise risk and lower premiums, maintain the property regularly, install security and safety systems, conduct risk assessments, vet tenants carefully, consider bundling policies for discounts, and opt for higher deductibles if affordable. These measures enhance property safety and may reduce insurance costs.