Buying a commercial property and left insurance to the last minute?

We get calls and emails from policyholders who are buying commercial property and are so focused on getting the purchase complete that insurance is left until the last minute and indeed sometimes forgotten completely, usually until a bank or lender requires sight of a policy document in order to release funds.

We were recently approached by a landlord who was trying to complete the purchase of a commercial premises but had left the insurance until the eleventh hour. Most insurers deemed that the property was located in a high flood risk area and wouldn’t provide a quote. The lender had flatly refused to release funds until the property was adequately insured and the current broker couldn’t provide a solution due to the flood exposure, meaning that the sale was about to fall through.

Having spent the time understanding the exposure and knowing that the vast majority of the insurance market wouldn’t provide a quotation, we placed cover with a Key Partner insurer carrying an increased flood excess, which was agreed and signed off by the lender.

The purchase completed and the landlord can now continue to focus on building their property portfolio.

Even if your current broker is unable to help, your insurance needs are last-minute and complex, or you simply want some advice regarding commercial property insurance, please contact the team at Harborough Portas who will only be too happy to help.

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