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Commercial Landlord Insurance

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Insurance for Commercial Landlords

Commercial landlords insurance NZ

Commercial landlord insurance provides coverage against various risks that landlords of commercial spaces, such as office buildings, shops, or warehouses, might face. Instead of having to seek out individual insurance policies for each potential issue, commercial landlord insurance bundles these coverages together, offering a comprehensive protection plan for property owners.

Why is commercial landlords insurance important? 

Imagine pouring time, effort, and money into a commercial property only for unforeseen events to cause damages or losses. Commercial landlord insurance ensures that your financial investments are protected against these unexpected setbacks, providing peace of mind in an unpredictable world.

In New Zealand, the average cost of commercial landlords insurance typically ranges between $50 – $200 per month + 0.3% to 0.6% of the building value per year. 

It’s crucial to have commercial landlord coverage if your business:

  • Owns commercial properties
  • Relies on rental income
  • Has properties in high-risk areas
  • Leases to multiple tenants

What insurance covers are typically included in commercial landlords insurance? 

Building Insurance

Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your building or commercial property gets damaged. 

Best For
  • Accidents 
  • Natural disasters
  • Fires

Business Interruption

When commercial landlords face situations where they can’t make money from their property, business interruption insurance offers them a safety net to cover the lost income or rents.

Best For
  • Natural disasters
  • Fires
  • Floods

Public Liability

This policy covers common business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.

Best For
  • Business Accident Coverage
  • Third-party Damages
  • Legal Cost Protection

Statutory Liability

This cover is a type of protection that helps people or businesses cover costs if they accidentally break certain laws or regulations.

Best For
  • Unintentional breaches protection
  • Legal costs
  • Fines and penalties

Contract Works Insurance

Special type of insurance that protects construction projects. It covers damage to the building works caused by unexpected events like accidents and natural disasters.

Best For
  • Accidents 
  • Natural disasters
  • Fires

Management Liability

Management liability insurance in NZ shields company leaders from legal and financial risks due to their managerial responsibilities.

Best For
  • Directors liability 
  • Employment disputes
  • Legal defence

How much does commercial landlords insurance cost?

Commercial landlords insurance premiums are calculated on several different factors including:

  • Types of cover
  • Turnover
  • Location 
  • Claims History 

Commercial landlords insurance in NZ typically costs between $150 to $300 per month.

Who needs commercial landlords insurance?

Any individual or business that owns a commercial property and leases it to a business or individual should consider commercial landlord insurance. Whether you own a small retail space, a large office building, or a warehouse, protecting your investment against potential risks is crucial.

While commercial landlord insurance is not legally mandatory in New Zealand, many lenders may require it if you have a mortgage on the property. Moreover, considering the substantial investment and potential risks, it’s highly recommended for landlords.

Yes, most commercial landlord insurance policies will cover damages caused by tenants, but it’s essential to read the specifics of your policy. This can include accidental damages or even vandalism, but not wear and tear or intentional damage by the landlord.

How do I get a commercial landlords insurance quote? 

We understand the unique needs of commercial landlords in New Zealand. Leveraging our extensive industry knowledge and partnerships, we provide comprehensive commercial landlord insurance quotes from the top insurers in the country and globally. Entrust us with your requirements, and we’ll ensure you receive the most competitive and tailored coverage options available.

To obtain a commercial landlords insurance quote we may require you to provide some fundamental details about your business, such as:

  • The name of your business
  • The location of properties 
  • Predicted annual income
  • Rebuild valuations

How do I get proof of commercial landlords insurance?

You can usually get proof of commercial landlords insurance same day when you purchase insurance through Gerrards.

Acquiring a commercial landlords insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or project.

To obtain insurance coverage promptly, contact one of our commercial landlords insurance brokers. 

What does commercial landlord insurance not cover?

Tenant's Personal Property

The primary purpose of commercial landlord insurance is to protect the building and any fixtures or fittings you own within it. It doesn’t cover the belongings of tenants. Tenants should have their own business content insurance.

Natural Wear and Tear

Properties are like living entities; they age and face wear and tear. This isn’t due to a specific incident but rather the passage of time. Your insurance won’t cover replacing items that have naturally reached the end of their lifespan or issues like paint chipping due to time.

Certain Natural Disasters

Earthquakes, floods, and other specific natural disasters might not automatically be part of your policy. In NZ, due to our geographical location, you need to watch out for exclusions or higher excesses on your policy if you are in a natural disaster prone area. 

Other common questions about commercial landlords insurance

Think of commercial insurance as designed for spaces where business happens – offices, shops, etc. Residential, on the other hand, focuses on homes or apartments. Their risks, liabilities, and coverage needs are different, and so the policies differ too.

Most do, but it depends on the reason for the loss. If the property becomes uninhabitable due to a covered event, like a fire, then the loss of rent during repairs would typically be covered.

Premiums aren’t just random numbers. They’re determined by assessing the risk associated with the property. Factors like location, construction type, security measures, and the value of the property all come into play.

Indeed, insurers often see landlords with multiple properties as “bulk clients.” So, they might offer discounts since you’re bringing more business to the table.

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