A commercial landlord insurance comparison is only meaningful once the specification is fixed, because commercial quotes vary on more dimensions than residential ones. The tenant's trade, the void allowance, the loss of rent period and the terrorism question each move the premium, and two insurers quoting different assumptions are not quoting the same policy.
Fix the specification first
Sum insured from a reinstatement assessment. The peril list your leases require. The loss of rent period, set from a realistic rebuild programme rather than a default. The liability limit for the parts you retain. Whether terrorism is included. Send that same specification to everyone and the comparison becomes real.
Declare the trades precisely
Insurers' appetites differ sharply by trade, and a unit described generically will either be priced cautiously or repriced later. Say what each tenant actually does, including cooking, hot work, spraying, chemicals and opening hours. A unit an insurer will not write is better known now than at renewal.
Compare the void allowance
Commercial units are empty between tenancies routinely, and allowances differ. A longer allowance is worth more than a small premium saving to a landlord whose leases expire regularly, because the alternative is arranging unoccupied cover every time a unit empties.
Look at the loss of rent period last but hardest
This is where commercial quotes differ most in substance. Twelve, twenty four and thirty six month periods produce very different protection and modestly different premiums. For a landlord whose income depends on the rent roll, the longer period is usually the best value item on the schedule.
Questions people ask about commercial landlord insurance comparison
Why do commercial quotes differ more than residential ones?
Because the tenant's trade, the void allowance, the loss of rent period and terrorism cover all vary, and insurers' appetites by trade differ sharply.
What should the loss of rent period be?
Long enough for a realistic rebuild including planning and fit out, frequently twenty four or thirty six months on commercial property.
Does terrorism cover matter?
Lenders increasingly expect it on commercial buildings, so check the requirement before deciding it is optional.
Should I use a broker?
On commercial property usually, because appetite by trade differs so much and a broker knows which insurers write which occupancies.