Rental insurance for commercial property?

Discussion in 'Commercial Property' started by alicudi, 7th Mar, 2019.

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  1. alicudi

    alicudi Well-Known Member

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    Hi all

    Can anyone recommend a good insurance company that covers the rental income that a landlord receives from a tenant in a commercial property? In the odd case that a tenant defaults during the term of the lease?

    Regards,

    alicudi
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Sometimes there can be other forms of security like fitouts and plant they may leave behind which can be a + or a - if the property could be relet. This can be a benefit in a restaurant / cafe etc but not some other fitouts where it may be too specific to relet that way.

    Is there a bank or deposit guarantee ? If you have a guarantee you may not have an insurable event. Or it may be limited. Relying on insurance v's bypassing the guarantee issues may be a concern. Comml Insurance tends to be assessed based on industry and a range of factors affect cost or even whether it can be insured.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Having discussed this at length with my broker a few years ago, he advised that it's more a protection for residential investors as you manage your risk in other ways not available to residential investors eg 3+ months bond, directors guarantees, lock out.

    Much more under your control or with an astute manager.
     
  5. balwoges

    balwoges Well-Known Member

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    The above is so true, commercial/industrial tenants much easier to manage and kick out ... :D
     
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  6. KinG3o0o

    KinG3o0o Well-Known Member

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    my commercial i take a 2/3 months rent bank guarantee . easier, any issue i take the cash