Owning commercial real estate in London — whether offices, retail units, warehouses or mixed-use assets — brings substantial opportunity, but with it comes significant risk. From fire, flood and vandalism to loss of rent, legal liability and unoccupied risks, the exposures are real.
Commercial property owners insurance (sometimes called commercial landlord insurance) is the specialist protection you need. At Fraser Bond, we help property owners, investors and managing agents ensure their insurance aligns with asset value, tenancy structure, lease obligations and the unique risks of the London market.
Commercial property owners insurance is a policy or suite of covers designed specifically for property owners leasing or owning buildings for commercial use. It typically includes:
Buildings/Material Damage Cover – protection against damage to the property from fire, flood, storm, subsidence, theft, malicious damage.
Loss of Rent / Business Interruption Cover – reimburses owners for lost rental income if the property becomes un-lettable or un-usable following an insured event.
Property Owner’s Liability Insurance – covers claims made by third parties (tenants, visitors) for injury or property damage in respect of your building ownership.
Optional Extensions – such as unoccupied property cover (important if the unit is empty); terrorism cover; landlord’s contents; legal expenses; environmental or pollution liabilities.
These types of policies are tailored for the landlord/owner’s exposure, differentiating them from standard business insurance aimed at occupiers.
London’s commercial property market has particular features that elevate risk and make commercial property owners insurance especially important:
High-value buildings: Even a “minor” damage event can trigger multi-hundred-thousand-pound repair costs or business interruption.
Mixed tenancy & shared use: Retail, office, hospitality and industrial tenants all have different risk profiles; these increase complexity.
Vacancy risk: In a market with changing demand, properties can remain unoccupied for periods. Cover for unoccupied risk is critical.
Lease obligations and lender requirements: Many leases and finance agreements stipulate minimum insurance cover and named insured status.
Liability exposure: As asset owner, you may be legally exposed to injury or damage claims if your premises are inadequately maintained.
Regulatory & reputational risk: London properties subject to fire-safety, structural compliance and other regulations. Insurance must dovetail with those responsibilities.
By securing the right insurance, you protect your income stream, your capital asset, and your personal or corporate liability.
When selecting and reviewing commercial property owners insurance, keep the following in mind:
Sum insured / rebuild cost – Ensure the buildings are insured to full reinstatement value; under-insurance reduces claim payout.
Loss of rental income period – Many policies specify a maximum indemnity period; ensure it covers the time likely to restore or re-let the property.
Unoccupied building cover – If the building is vacant for a time, standard cover may exclude many perils. Many specialist insurers offer unoccupied extensions.
Exclusions & limitations – Common exclusions include wear & tear, gradual deterioration, insect / vermin damage, failure to maintain, or certain unoccupied risks.
Liability cover limits – For property owner’s liability, check the indemnity limit (often £2 m-£10 m+).
Extensions for mixed-use or non-standard construction – If your building has residential flats above retail, or is a listed building, ensure cover is appropriate.
Contract and lease requirements – Ensure that lease clauses and lender requirements (if any) are matched by your policy terms (e.g., whether tenants are required to insure and what you as landlord insurer).
Policy wording and claims service – Choose insurers/brokers with strong reputation, flexible policies and robust claims handling in London context (specialist property insurers).
At Fraser Bond we bring together property investment, asset management and insurance advisory expertise so you receive:
Insight into asset-management risk — how insurance integrates with tenancy, lease, service-charge and portfolio strategy.
Guidance on contractual compliance — ensuring your insurance meets lease, lender and service-charge requirements.
Review and comparison of insurance options — ensuring you’re not over-paying, under-insured or exposed to gaps.
Support tailored for London’s market — recognising the premium nature of buildings, mixed uses, and specialist risk.
We assist owners, investors and managing agents to secure the right cover, positioned to protect the value and returns of their commercial property assets.
If you own or manage commercial property in London and want to ensure your insurance is aligned with your asset-risk profile, visit FraserBond.com or contact our advisory team. We’ll review your current policy, identify potential gaps, and help you secure protection tailored to London’s commercial property environment.
