Paying for building Insurance on Commercial Let

iBlagg

Hi this is my first post. Think I have the right section, apologies if I don't.

I'm currently in talks to rent a cheap retail shop. As I have to fit the carpet and the shop is in a bit of ghost town location I asked to pay less during the 1st year increasing to what they asked in the 2nd year.

They agreed to everything I asked then mentioned for the first time that I would have to pay building insurance. That it is standard practice for the landlord to take out insurance and then invoice the tenant.

It seems strange that I have to pay to insure their asset and I have no idea if what I'm invoiced matches what they are paying for insurance.

Does this sound normal? I would love to hear from other peoples experiences as this is will be my first shop.

Thanks in advance

iBlagg

bengalknights

Building insurance is usually paid by the landlord and not the renter, the only insurance you would probably require is public indemnity

teneighty

It depends on the terms of your lease.

For commercial premises with a full repairing lease it is very common for the tenant to insure the building or reimburse the landlord.

You really should seek professional advice before you sign a commercial lease as you could be signing up for some very expensive liabilities if you do not fully understand the lease, they are completely different from residential leases.

JQ.

bengalknights wrote: »

Building insurance is usually paid by the landlord and not the renter, the only insurance you would probably require is public indemnity

Totally wrong.

It is standard practice that the tenant pays for buildings insurance on a commercial property, as tenants are generally responsible for repairs. Either the tenant pays for the insurance or the landlord pays and recovers the cost from the tenant via the service charge.

Thrugelmir

iBlagg wrote: »

That it is standard practice for the landlord to take out insurance and then invoice the tenant.

The insurance will be based on the activity conducted in the property. So not a flat premium risk.

iBlagg

we currently sell online I've been so busy with the Christmas rush that I almost forgot to thank you all for your advice.

If anyone else reading this is looking to rent a commercial property offer them less than what they are asking. There are so many empty shops the agent didn't even argue with my proposal.

Thank you everyone

tim123456789

iBlagg wrote: »

we currently sell online I've been so busy with the Christmas rush that I almost forgot to thank you all for your advice.

If anyone else reading this is looking to rent a commercial property offer them less than what they are asking. There are so many empty shops the agent didn't even argue with my proposal.

Thank you everyone

There's a leasehold shop (literally) just down the road from me being sold as a going concern.

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