Finding low-cost commercial insurance is a top priority for many business owners and landlords. Whilst saving money is important, it’s just as crucial to ensure your policy provides the right level of cover. The cheapest option might not provide the most suitable cover — especially for rebuild costs, liability cover, and policy exclusions.
However, many businesses are underinsured — often realising too late. Recent research shows up to 79% of UK commercial properties don’t have enough cover, putting owners at financial risk.
With insurance prices rising and underinsurance becoming a growing problem, understanding what affects your commercial building insurance costs can help you make a smarter choice.
What Affects Commercial Building Insurance Costs?
Property Type and Rebuild Cost
Larger or older buildings usually cost more to insure.
Listed or unique properties often require specialist cover. Some insurers calculate costs per square foot, based on location and materials.
Location and Risk Factors
Properties in flood zones or high-crime areas usually face higher premiums.
City centre properties often have increased liability risks.
Business Type and Liability Cover
A warehouse will likely have lower liability risk than a restaurant or shop with daily customers.
Certain industries require additional liability insurance, affecting overall costs.
Common Misconceptions About Low Cost Insurance
A common mistake is confusing market value with rebuild cost. Some property owners also rely too heavily on online calculators, which can oversimplify important details like:
Building materials and structure
Listed status or unique design features
Rising material and labour costs
Basing your policy on an inaccurate rebuild cost can leave you underinsured. That’s why getting a professional rebuild valuation is so important.
Why Commercial Building Insurance Matters
Owning a commercial property comes with serious financial risks. Without the right insurance, damage from fire, flooding, or structural issues could leave you with large repair or rebuild costs.
Commercial building insurance helps protect business owners and landlords by contributing towards repair expenses, rebuild costs, liability claims, and lost rental income if applicable.
How to Save Money Without Compromising Cover
Insurers set premiums based on a number of factors such as rebuild costs, location, and business type. Choosing a higher deductible can lower your premium, but you’ll pay more in the event of a claim. Regularly reviewing your rebuild cost and comparing policies can help you find affordable commercial insurance that still offers the right level of cover.
How Confident Are You That Your Property is Properly Insured?
Many landlords only discover gaps in their cover when making a claim. Don’t leave it to chance. Check your rebuild cost today to avoid financial risk. Speak to our friendly team for a free rebuild cost assessment and a no-obligation commercial property insurance quote. Call us on 01234 242900 or complete our enquiry form and we’ll get back to you as soon as possible.