Building insurance for commercial premises

brynne

I am/was a dressmaker by trade, but have diversified and now operate an online sewing shop and run sewing classes. Business is good, but I'm limited in that I work from my (very rural) home. Customers (mainly my dressmaking students) come by appointment and I'm limited in what I can realistically sell online. So, the next logical step is to open a physical shop.

I've identified what, to me, is the ideal premises. It's in the middle of the main street of our sleepy seaside town - a place which, in common with many/most smaller towns in rural Ireland, has far too many run down vacant shops that no one can find a use for. Amongst them, there are a now few newish success stories that are beginning to brighten the place up - a new ice cream parlour (still busy at this time of year), a hand-made gift shop and bakery, an award-winning bridal shop ... the sort of independent, niche shops that don't compete with the local supermarket for trade.

The shop I'm looking at has been empty for a few years. It's one half of a double unit that used to be run as a boutique. The other side was a supermarket that closed 5 or 6 years ago. The owner of the building lives in Spain. She's delighted that I'm interested in renting the boutique side, but has highlighted the fact that building is not insured! She says that, after the boom, her insurers would no longer insure the property because she isn't resident here.

This seems crazy and a terrible risk for the owner to be taking. Is this normal for insurers and is there a way round it? There must be, surely? Would I, for instance, as a tenant, be able to insure the building? Or would it just be opening a can of worms and best avoided. I'm after speaking to the owner for the first time this morning, so I would like a little bit of advice before I approach an insurance broker for quotes.

antoinolachtnai

The insurer is actually just being practical. The insurer was (I imagine) concerned that there was no one around to visit the building frequently and make sure everything was ok, because the owner was abroad. Buildings that are never visited are obviously a bad risk. Buildings that are used every day are much less likely to get robbed, burned down or squatted.

You should be able to get insurance if you are the tenant. There are going to be a load of gotchas with opening up any building that hasn't been open for a while.

It is a big undertaking, and you have to be pretty sure it is worth your while. Your idea (specialty retail) sounds like a good one in principle. Make sure it really is the right town for you to locate in though.

alfaromeo84

You can cover your own liability, completely separate to the landlord, no problem. Yes the LL should have cover for themselves, but remember you don't own the building, so not your problem. A shop type policy will cover you for anybody coming in to trade with you.

Usually they can be got from €350 up, depending on values insured.

brynne

Many thanks for the replies. I'm reassured that the lack of LL's buildings insurance isn't likely to be a deal-breaker.

antoinolachtnai

It is sometimes a term of the lease that you must insure or pay the insurance on the building.