Recent events have highlighted the importance of having adequate insurance for commercial assets. It’s imperative that your level of cover is reviewed regularly to ensure that you won’t be out-of-pocket following an unfortunate but insurable event.
The Covid-19 pandemic has increased building costs Australia-wide; a direct result of building material supply shortages and the construction boom which has inflated material costs and created a lack of qualified labour.
When reviewing your building insurance, consider what it would cost to rebuild your commercial investment in today’s amplified market. The age of the building could significantly impact rebuild requirements, and upgrades may be required to meet current regulatory building codes.
It’s wise to review the Loss of Rent section of your policy to fully understand how long your insurer will cover the loss in the event you have to rebuild. Remember that labour shortages mean construction is taking much longer to complete in the current climate.
For tenants, contents insurance is critical, along with having sufficient business interruption cover to help get you through a temporary crisis by protecting your cashflow.
It’s also important to remain current with all building maintenance requirements, ie: fire extinguisher testing, etc. A good Property Manager can assist with scheduling regular compliance services, keeping comprehensive records and coordinating with insurance inspectors should the need arise.
Of course, there are many more factors to consider regarding insurance and we recommend that you speak with your insurance specialist to ensure you have the cover that’s right for you.
The award-winning Property Management team at Ray White Commercial Bayside can tailor a property management solution for your commercial investment, including designing and activating a maintenance strategy to help safeguard your insurance policy and maintain compliance with other regulatory requirements.
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