What is Shop Buildings insurance?
Shop Buildings insurance covers the cost of repairing or rebuilding your business premises if damaged or destroyed. Shop buildings insurance isn’t a legal requirement, but most commercial mortgage providers will require you to you take out a policy before they give you a loan.
What can be covered by shop building insurance?
The right shop building insurance policy will cover you fora range of eventualities that might lead to damage to your shop property, such as:
- burst pipes
- falling trees
- fire and smoke damage
- damage due to riots or other human causes
- storm damage
- theft from the building itself i.e. roof slates
What is not covered by shop buildings insurance?
Most shop building insurance policies will not cover you for a few specific eventualities such as general wear and tear on the shop such as might be expected over the course of time. You will also not usually be covered for damage to the shop due to war or terrorism.
I own the building that houses my shop outright – do I still need shop building insurance?
Even if you own your shop premises outright you should still take out shop buildings insurance to protect you against the potential costs of repairs or reconstruction of your property.
I rent my shop – do I still need to have shop building insurance?
If you’re a tenant at your place of business, the responsibility for getting shop building insurance falls on your landlord.However, you'll need to think about getting your own shop contents insurance to safeguard your stock and equipment.
How much should I insure my shop for?
You should make sure that you insure your shop building against the cost of reconstructing the property, not against its sale cost or its current cost.