Whether you’re investing in a new property to build wealth, use for your business or buying a property to live in or as a way of generating a rental income or other return, it is important to insure your new property investment.
Here are five types of insurance that commercial property investors should consider:
Lenders Mortgage Insurance
If you need to borrow more than 80 per cent of a property’s value, it is likely that the lender will require you to take out lenders mortgage insurance. This protects the lender if you are unable to repay your loan.
This type of property insurance is often mandatory as a condition of taking on a home loan, so there is no excuse for not being covered with home and contents insurance.
protect your buildings (walls, floors, roof and permanent fixtures such as fitted kitchens or bathrooms) against fire, storm, flood, burst pipes, vandalism and any other damage-causing scenarios.
This covers the legal liability of a commercial property for personal injury to another person (other than employees) or damage to property owned or controlled by someone else.
Business Interruption Insurance
Business interruption or loss of income in the event of a claim is an important cover that will reimburse the business when it is unable to trade either through the damaged shop front or through longer term damage such as fire or flood.