Who covers tenants in a commercial building insurance claim?

If a property owner is planning to give his or her building for rent, he or she must be ready with the safety measures. As much safety is essential for the property owners, it is equally important for the tenants as well.

Both the parties- property owner and the tenant, must be properly insured. Opting for commercial building insurance is one of the primary things to consider among the safety measures.

Especially for the tenants, it protects from several unnecessary costs and prevents them from any kind of explanation to the property owner. Some of the coverage that commercial building insurance offers to the tenants are given below:

What is a commercial building insurance claim?

Commercial building insurance is mostly used by building owners who lease their property out to third-parties for commercial use or business operation from the property. These third parties, commonly the organizations or businesses, are known as the tenants.  The building owner and the tenants go into a legal contract that allows the tenants to use the building owner’s property for operating their business. Commonly the tenants use it as an office space.

A building owner is, therefore, a landlord, and he or she must opt for commercial building insurance to protect himself or herself against uncertain claims that arise from the building or property.

A commercial building insurance claim is equally important for the business owners who own the building or property in which their business operates.  But, before everything, it is essential to look for a property insurance broker to get the proper guidance. You may click here to get in touch with some of the renowned insurance brokers.

Property owners liability:

A building’s condition plays a great role. If a tenant sustains an injury or property damage because of the owner’s negligence, the entire fault will be the landlord.

This entire responsibility belongs to the landlord and not the tenants to ensure that the standard of the building is safe to be used.  For instance, while walking on the stairs, if you fall because of the loose step and get injured, you can sue the property owner for not maintaining the safe standard of the building.

Thus, while renting a building, a tenant must have a healthy conversation with the owner, and take a look around at the property, and make sure that the building is in proper shape.

Covers repair costs in the event of damage:

When a tenant rents a building where the property owner is insured with commercial building insurance because it provides some extensive protection for the property, it covers the building owner for the repair cost in the event of any uncertain damage.

If a dangerous storm damages the roof, which needs to be replaced, the insurance company will pay for such costs. Even if a fire outbreaks inside the building, and it gets burned, the insurance company may pay for the entire rebuild.

It is advantageous to the tenants because they do not need to pay any extra penny from their pocket, and they will not need to bear any responsibility associated with the damage.

Loss of rent:

Accidents are always uncertain. If the building is damaged in natural calamities like fire or storm, the property will become uninhabitable, and the tenants will no longer be able to use the property until the damages are properly repaired.

But, in those days, the tenants will no longer need to pay the rent, as the rents will be paid by the insurance company until the building becomes ready for living.

This gives the tenants an upper-hand on the building owners. For the time being, the tenants can take rent for any other building that costs less.

Flat roof warranty:

A flat roof is prone to several maintenance issues. They are more susceptible to leaking, as they have the nature to collect rainwater. Another problem is that they can become a standing pool of water after a heavy rainstorm.

Thus, a damaged flat roof can lead to serious damage. A tenant who stores a large amount of stock may make an enormous claim against the building owner for having a flat roof. This is also a significant concern for many insurance providers out there.  Thus, if there is a flat roof and it leads to a problematic situation, the tenant can make a complaint. It is the responsibility of a landlord to organize professional servicing and to repair regularly for any kind of flat portion of the roof.


A commercial building insurance claim covers the tenants from several aspects. The tenants must opt for it or must check whether the property owner is properly covered by a strong insurance policy. Insurance policies are beneficial to both of them. It gives protection not only from the above-mentioned issues but also prevents both parties from getting involved in legal issues.

Photo by Marc Mueller from Pexels

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