How Much Does Commercial Property Insurance Cost? UK Guide 2026
How Much Does Commercial Property Insurance Cost in the UK?
There is no single price for commercial property insurance. It is individually rated, so the premium for two superficially similar buildings can differ by thousands of pounds depending on construction, location, trade, claims history, and how the cover is structured. As a broad guide, a small single-occupancy retail or office unit typically falls between £800 and £1,500 a year, while a larger industrial unit, mixed-use block, or non-standard property can run from £5,000 to £30,000 or more. The average UK commercial property premium sits around £1,200 — but that figure spans an enormous range and is rising, with most categories running 8–15% higher in 2026 than in 2024 on the back of claims inflation and harder underwriting.
The headline premium, though, is the least important number on the page. The most expensive mistake in commercial property insurance is not overpaying — it is underinsurance, which quietly reduces every claim you ever make through the average clause and affects an estimated 46% of UK commercial properties. This guide breaks down exactly what drives your premium, how to bring it down without opening up a dangerous gap, and the cost traps — underinsurance, missing business interruption, Building Safety Act compliance, and flood — that turn a cheap-looking policy into an expensive one the day you claim.
For the full clause-by-clause breakdown of what a policy covers rather than what it costs, see our companion guide to commercial property insurance cover. To get a quote for your own property, visit our commercial property insurance page.
1. Typical Commercial Property Insurance Cost Ranges
Premiums are individually rated, but the ranges below give a realistic starting point for a standard-risk UK property. Non-standard construction, a difficult location, or a poor claims history can push a property well outside these figures — or turn it into a specialist-market placement rather than a standard quote.
| Property type | Typical annual premium guide | Main cost drivers |
|---|---|---|
| Small office or retail unit | £800–£1,500 | Rebuild value, location, trade |
| Standard industrial / warehouse unit | £1,500–£6,000 | Size, construction, stock, occupancy |
| Mixed-use or multi-occupancy block | £5,000–£30,000+ | Number of units, Building Safety Act compliance, communal areas |
| Non-standard / previously declined property | Priced individually | Risk profile, claims history, specialist market access |
2. What You're Paying For — and the Cover That's Usually Missing
Your premium buys a defined set of covers. Knowing what's included by default — and what's commonly left out — is the difference between a policy that looks cheap and one that actually protects you when you claim. Here is the core structure; for a full breakdown of each section, perils, and exclusions, see our dedicated guide to what commercial property insurance covers.
| Cover | What it pays for | Cost note |
|---|---|---|
| Buildings | Reinstatement of the structure after fire, flood, storm, escape of water, subsidence, theft and malicious damage | Priced on rebuild value — the single biggest premium and underinsurance factor |
| Contents | Stock, equipment, fixtures, fittings and tenant's improvements inside the building | Security measures (NSI/SSAIB alarms) can cut this meaningfully |
| Business interruption | Lost gross profit, increased cost of working, and ongoing fixed costs while you cannot trade | Not included by default — the most common and most expensive gap |
| Property owners' liability | Injury or damage claims from tenants and third parties on the premises | Modest premium impact, but essential for landlords and mixed-use |
Standard policies also exclude wear and tear, faulty workmanship and design defects, mechanical or electrical breakdown (which needs engineering insurance), gradual pollution, cyber-related damage to building management systems (which needs cyber insurance), and losses once a property has been unoccupied beyond the policy's threshold — usually 30 to 60 days.
What Cover Does Your Situation Require?
The covers you need — and therefore what you should expect to pay for — depend heavily on your relationship with the property. Select your situation below for a tailored checklist.
Property Cover Checker
Select your situation to see the recommended cover for your specific needs
Owner-Occupier — Buildings and Business Under One Roof
- ESSENTIAL Buildings insurance — insure at full rebuild cost, not market value; get a RICS assessment
- ESSENTIAL Business interruption — the most overlooked cover; set indemnity period to reflect true reinstatement time (often 18–36 months)
- ESSENTIAL Contents cover — stock, equipment, fixtures, and tenant improvements not covered by buildings policy
- RECOMMENDED Increased costs of working extension — covers the additional cost of trading from temporary premises after a claim
- RECOMMENDED Accidental damage extension — covers one-off accidents not caused by an insured peril
- RECOMMENDED Engineering / equipment breakdown — machinery breakdown is excluded from standard property policies
- CONSIDER Terrorism cover — standard policies commonly exclude terrorism; available as a separate extension
- CONSIDER Cyber insurance — if your building has connected management systems, smart HVAC, or networked access control
Commercial Landlord — Protecting Your Investment and Your Obligations
- ESSENTIAL Buildings insurance at full reinstatement value — check whether your lease requires you or your tenant to insure
- ESSENTIAL Loss of rent — covers rental income lost while the property is unusable following an insured event; indemnity period must match your lease terms
- ESSENTIAL Property owners' liability — covers claims from tenants or third parties injured on the premises
- RECOMMENDED Landlord's contents — for any fixtures and appliances you provide as part of the letting
- RECOMMENDED Malicious damage by tenants — standard policies may exclude deliberate damage caused by tenants; specialist landlord policies include this
- RECOMMENDED Legal expenses — for tenant disputes, rent recovery, and eviction proceedings
- WATCH Unoccupied property conditions — if your property becomes void between tenants, notify your insurer immediately or cover may be restricted
- CONSIDER Rent guarantee insurance — covers unpaid rent if a tenant defaults; separate from loss of rent under the buildings policy
Commercial Tenant — Your Obligations Under the Lease
- ESSENTIAL Tenant's contents and stock — the landlord's buildings policy does not cover your assets inside the property
- ESSENTIAL Public liability — most leases require tenants to maintain PL cover; check your minimum required limit
- ESSENTIAL Tenant's improvements — if you have fitted out or altered the premises, you may be liable to reinstate on expiry; insure the fit-out value
- RECOMMENDED Business interruption — if a building damage event forces you to close, your lease obligations (rent, service charge) may continue even while you cannot trade
- RECOMMENDED Glass and signage — external glazing and signage are often the tenant's responsibility under the lease
- WATCH Lease reinstatement obligations — read your dilapidations and reinstatement clauses; they define your insurance obligations precisely
- CONSIDER Legal expenses — for lease renewal disputes, dilapidations claims, and service charge challenges
Mixed-Use / Multi-Occupancy Property
- ESSENTIAL Buildings insurance covering all uses — policy must reflect all occupancies; residential and commercial uses on the same title require a combined or mixed-use policy wording
- ESSENTIAL Property owners' liability — covering all common areas, communal spaces, and shared access routes
- ESSENTIAL Loss of rent across all lettable units — indemnity period should reflect the time to reinstate the largest single unit
- ESSENTIAL Building Safety Act compliance documentation — required for multi-occupancy buildings of 18m+ or 7+ storeys; affects insurability and premium
- RECOMMENDED Engineering inspection — lifts, boilers, pressure vessels, and communal plant require statutory inspection; insure breakdown and consequential loss
- RECOMMENDED Directors' and Officers' liability — if the property is managed through a management company or RTM company
- WATCH Individual tenant cover — verify that each commercial tenant holds their own contents and liability cover; gaps in tenant policies can result in uninsured claims falling on the building owner
Unoccupied Commercial Property — The High-Risk Category
- URGENT Notify your insurer immediately — most policies restrict cover after 30–60 days of unoccupancy; failure to notify can void the policy
- ESSENTIAL Specialist unoccupied commercial property insurance — standard policies reduce to fire, lightning, and explosion only when unoccupied; specialist cover restores a broader range of perils
- ESSENTIAL Property owners' liability — must be maintained throughout the unoccupied period; slip and fall claims on unoccupied premises are common
- RECOMMENDED Security measures — many specialist unoccupied policies require evidence of regular inspections (weekly or fortnightly), secured entry points, and drained water systems to maintain cover
- RECOMMENDED Malicious damage and vandalism — high exposure on unoccupied premises; check whether your specialist policy includes this
- CONSIDER Building security services or guardianship — some insurers offer better terms when a professional management company or property guardian is in place
Property Investor / Portfolio Landlord
- ESSENTIAL Portfolio or block policy — insuring multiple properties under one policy is more efficient and often cheaper than individual policies; ensures consistent cover across the portfolio
- ESSENTIAL Portfolio-wide loss of rent — ensure the indemnity period and aggregate limit are sufficient to cover simultaneous void events across multiple units
- ESSENTIAL Property owners' liability — across all properties in the portfolio; a single limit should be adequate but confirm with your broker
- RECOMMENDED Regular reinstatement value reviews — portfolio values drift faster than single properties; schedule a RICS assessment across the portfolio at least every three years
- RECOMMENDED Overseas investors: specialist UK property investor policy — if you are based outside the UK, see our guide to insurance for overseas property investors
- CONSIDER Trade credit / rent guarantee insurance — for larger portfolios, tenant default risk across multiple leases may justify a portfolio-wide rent guarantee arrangement
3. The Hidden Cost: Underinsurance and the Average Clause
Underinsurance is the single most common and most damaging error in commercial property insurance — and it is fundamentally a cost problem, not a coverage one. An estimated 46% of UK commercial properties are insured for less than their true rebuild cost, often by 30–40%. The consequence is not just a smaller payout on a total loss. It affects every claim, no matter how small, through a mechanism called the average clause.
How the Average Clause Works
The average clause is a standard condition in most commercial property policies. It states that if your property is underinsured, your claim payment will be reduced in the same proportion as the underinsurance. The formula is straightforward but brutal in practice:
Claim payout = (Sum insured ÷ True rebuild cost) × Loss amount
Average Clause — A Worked Example
A commercial property has a true rebuild cost of £800,000. The owner insured it for £500,000 — a figure set five years ago that has not been reviewed since. A kitchen fire causes £120,000 of damage.
The insurer applies the average clause: £500,000 ÷ £800,000 = 62.5%. The payout on the £120,000 claim is therefore £75,000. The owner must fund the remaining £45,000 personally — not because the claim was invalid, but simply because the property was underinsured.
The same ratio applies if the property is a total loss. A rebuild costing £800,000 would receive a maximum payout of £500,000 — leaving a £300,000 shortfall to be funded by the owner.
Underinsurance Calculator: See the Cost of Getting It Wrong
Enter your current sum insured, your estimated true rebuild cost, and the size of a hypothetical claim to see exactly how the average clause would affect your payout — and how much you'd have to find yourself.
Average Clause Impact Calculator
See how underinsurance reduces your claim payout — and by how much
Your Result
(sum insured ÷ rebuild cost)
after average clause
you would fund personally
Why Rebuild Cost Diverges from Market Value
Many commercial property owners set the sum insured using the property's market value — or its purchase price. This is almost always wrong, and often significantly so. Rebuild cost and market value diverge for several reasons:
- Market value includes the land, which cannot be destroyed by fire or flood and does not need to be insured
- Specialist or period commercial buildings often cost far more to rebuild than their market value suggests — particularly listed buildings or those with specialist construction
- Rebuild costs include demolition, debris removal, professional fees (architect, structural engineer, project manager), and compliance with current building regulations — none of which is reflected in market value
- Construction cost inflation since 2021 has been significant; sums insured set more than two years ago should be reviewed
4. Cost Factors: Flood Risk and Unoccupied Property
Flood Risk and What It Does to Your Premium
Flood is the covered peril that has moved premiums the most in recent years. The Environment Agency estimates that 1 in 6 UK properties is at risk of flooding, and the frequency and severity of flood events has increased markedly. Insurers have responded by tightening underwriting in high-risk areas, introducing higher excesses, and in some cases declining to offer flood cover at all on properties in the most exposed locations — which is where premiums spike or cover disappears entirely.
The key flood factors that affect what you pay are:
- EA Flood Risk Zone — properties in Zones 2 and 3 (medium and high probability) attract greater underwriting scrutiny; Zone 3b (functional floodplain) is the most difficult and most expensive to insure
- Previous flood history — a property with recorded flood events is rated significantly higher than a Zone 2 property with no claims history
- Flood defences — properties protected by EA-approved defences, or those that have invested in property-level flood resilience (flood barriers, non-return valves, raised electrical installations) can access better terms
- Claims history — multiple flood claims on a property can make standard market cover unavailable at any price
If your commercial property is in a high flood-risk area and you are struggling to obtain cover or facing very high excesses, the first step is a professional flood risk assessment and a documented flood resilience plan. Presenting these to specialist underwriters materially improves both availability and price.
Unoccupied Commercial Properties
Unoccupied commercial property is one of the most challenging — and most expensive — categories to insure, because the risk profile changes fundamentally when a building is empty. The key issues are:
| Cover Type | Typically Maintained When Unoccupied | Typically Restricted or Removed |
|---|---|---|
| Fire, lightning, explosion | Yes — in most policies | — |
| Escape of water (burst pipes) | Only if water systems are drained | Often removed entirely without draining |
| Theft and malicious damage | Sometimes — with adequate security | Often restricted or removed after 30–60 days |
| Storm damage | Usually maintained | May be restricted on badly maintained roofs |
| Property owners' liability | Should be maintained — check policy | Some policies reduce limits or add exclusions |
| Subsidence | Usually maintained | — |
The notification threshold — the period of unoccupancy after which restrictions activate — varies between 30 and 60 days depending on the insurer. Many policies also impose conditions during unoccupancy: weekly or fortnightly inspections by the owner or a managing agent, draining of water systems, secured entry at all access points, and removal of combustibles. Failure to comply with these conditions can void the cover entirely.
If your property is, or will be, unoccupied for more than 30 days, notify your broker immediately and confirm the conditions your insurer requires. For extended unoccupancy — renovation programmes, probate situations, a long void between tenants — specialist unoccupied commercial property insurance is the correct solution.
5. Building Safety Act and Its Impact on Your Premium
The Building Safety Act 2022 is the most significant piece of legislation affecting commercial property insurance since the Regulatory Reform (Fire Safety) Order 2005. Its primary target is higher-risk buildings — defined initially as multi-occupancy residential buildings of 18 metres or more, or 7 or more storeys — but its influence on insurance underwriting, and therefore pricing, extends well beyond that narrow definition.
What Insurers Are Now Requiring
The insurance market has responded to the Building Safety Act by adding new underwriting questions and requirements to commercial property renewals, particularly for:
- Multi-occupancy buildings containing any residential element above ground floor
- Buildings with any form of external cladding
- Mixed-use developments with common areas and shared access
- Student accommodation, hotels, and purpose-built residential blocks
Insurers are routinely requesting:
- Valid fire risk assessments completed within the last 12 months
- Evidence of a building safety case (for higher-risk buildings registered with the Building Safety Regulator)
- Confirmation of cladding status — EWS1 form or equivalent for buildings with external wall systems
- Details of any outstanding remediation requirements and the timeline for completion
- Evidence of a Principal Accountable Person and Building Safety Manager being in place
Cladding and the EWS1 Process
The EWS1 (External Wall System) form is an assessment by a qualified professional confirming whether external cladding on a building meets current fire safety standards. It was introduced following the Grenfell Tower fire as a mechanism for lenders and insurers to assess risk on cladded buildings. Obtaining an EWS1 rating of A1 or A2 (indicating the cladding is low risk or safe) significantly improves insurability and reduces premium loadings. A B1 or B2 rating (indicating remediation is required) requires disclosure to insurers and may affect the terms available until remediation is complete.
6. The Full List of Factors That Decide Your Premium
Commercial property insurance is individually rated — there is no standard premium for a given type of property. The following factors each influence the underwriter's assessment and the final premium, and most of them are things you can actually move.
| Rating Factor | How It Affects Premium | What You Can Do |
|---|---|---|
| Rebuild value / sum insured | Higher sums insured = higher premium; underinsurance does not reduce premium but does reduce claims | Get a RICS assessment; do not underinsure to save premium |
| Construction type | Traditional brick and tile is rated most favourably; flat roofs, steel frame, and timber frame attract loadings | Maintain and document roof condition; upgrade flat roofs where economically viable |
| Location and flood risk | High flood-risk areas attract higher premiums and higher flood excesses | Install flood resilience measures; obtain a flood risk assessment to present to insurers |
| Occupancy / trade | High-risk trades (hot works, deep fat frying, chemicals) attract premium loadings; professional offices are rated most favourably | Ensure accurate trade description; maintain hot works permits and fire safety records |
| Security | NSI or SSAIB-approved alarms and CCTV can yield meaningful discounts, particularly on contents cover | Install and maintain certified alarm systems; keep certificates current |
| Claims history | Frequent or large claims significantly increase premiums; three or more claims in five years can make standard market cover unavailable | Maintain the property well to prevent claims; handle small claims personally if the premium impact outweighs the recovery |
| Voluntary excess | Increasing your voluntary excess reduces premium; moving from £250 to £1,000 can save 10–20% annually | Increase excess in line with your financial capacity to absorb small losses |
| Building Safety Act compliance | Non-compliant or cladded buildings attract loadings or restricted cover until remediation is evidenced | Prioritise compliance; present EWS1, fire risk assessment, and safety case to insurers at renewal |
7. Making a Claim — and Protecting Your Payout
Real Claim Example — Restaurant Fire, Bristol 2025
A commercial property owner let a ground-floor unit to a restaurant operator. An electrical fault in the kitchen caused a fire that spread through the ducting system to the first-floor office space above. The total reinstatement cost was £380,000, covering structural repairs, new electrical installation, reinstatement of the restaurant fit-out, and redecoration throughout.
The property owner's buildings policy responded in full. The loss of rent section paid 14 months of rental income — the full indemnity period — as the reinstatement took 11 months and the tenant required a further three months to refit and reopen. The total claim, including loss of rent, exceeded £520,000.
The claim was paid without dispute for two reasons: the property owner had a valid EPC, a current fire risk assessment, and evidence that the electrical installation had been inspected within the past five years. Without that documentation, the insurer would have had grounds to investigate whether the electrical fault constituted a maintenance failure — which is a standard policy exclusion.
How to Manage a Commercial Property Claim
- Notify immediately. Most commercial property policies require notification of a loss within a specified period — typically 24–48 hours for major events. Late notification can give the insurer grounds to reduce a settlement. Call your broker first; they will manage the insurer notification on your behalf.
- Secure the property. You have a duty to mitigate your loss — this means taking reasonable steps to prevent further damage. Board up broken windows, arrange emergency roofing if there is a structural opening, and drain the water supply if a pipe has burst. Keep receipts for all emergency spend — it is claimable.
- Document everything before reinstatement begins. Photographs and video of all damage, taken before any cleaning or temporary works begin, are the foundation of a successful claim. Do not dispose of damaged items before the loss adjuster has visited.
- Obtain a police reference number for theft or malicious damage claims. Most policies require this as a condition of the theft or malicious damage section responding.
- Engage your broker as your claims advocate. Your broker's role does not end at placement. They should manage the loss adjuster appointment, review the adjuster's scope of works against your policy entitlement, and challenge any reductions that are not properly supported by the policy wording.
- If you dispute the settlement, escalate formally. If you cannot resolve a settlement dispute directly with your insurer, you can refer the matter to the Financial Ombudsman Service (FOS) free of charge. The FOS adjudicates between insurers and policyholders and has wide powers to direct a fair outcome.
8. What's Pushing Commercial Property Premiums Up in 2026
Construction Cost Inflation and Its Legacy
The rapid rise in construction costs between 2021 and 2024 — driven by material shortages, supply chain disruption, and labour cost increases — has left a legacy of widespread underinsurance across the UK commercial property sector. Many properties were revalued or insured before the inflation cycle and have not been reassessed since. The BCIS (Building Cost Information Service) estimates that average commercial rebuild costs rose by over 30% between 2021 and 2024. Properties insured on 2021 values are almost certainly underinsured, often significantly — which feeds straight back into the average-clause problem above.
Climate Change and Changing Weather Patterns
The frequency and severity of UK flooding, storm events, and subsidence (driven by alternating wet and dry periods affecting clay soils) has increased measurably. Insurers are repricing these risks upward, particularly in areas identified in the Environment Agency's updated Flood Risk Assessment 2024. Properties in previously low-risk areas are increasingly experiencing flood events that fall outside their standard policy's flood definition, leading to coverage disputes.
Smart Buildings and Cyber Exposure
Modern commercial properties increasingly rely on internet-connected building management systems — HVAC, access control, fire detection, lift management, and energy monitoring. These systems represent a new and largely uninsured exposure. A cyber attack on a building management system can disrupt heating and cooling, disable access control, trigger false fire alarms, or even cause physical damage. Standard commercial property policies do not cover cyber-related damage; standalone cyber insurance is required.
ESG and Green Rebuilding
BREEAM-certified and energy-efficient buildings are increasingly attracting preferential premium treatment from insurers who recognise that better-built properties present lower risk. Green rebuilding clauses — which allow reinstatement to a higher environmental specification than the original building, at the insurer's cost — are becoming a standard feature of quality commercial property policies. This is worth looking for specifically when comparing policy wordings.
Frequently Asked Questions
Commercial property insurance premiums vary widely depending on property type, location, rebuild value, construction, occupancy, claims history, and the covers selected. A small single-occupancy retail unit might cost £800–£1,500 per year; a large mixed-use block or industrial unit could cost £5,000–£30,000 or more. The average UK commercial property premium was approximately £1,200, but this figure spans an extremely wide range of property types. Premiums in 2026 are running 8–15% higher than 2024 levels in most categories, driven by claims inflation and harder underwriting. The most effective way to obtain competitive terms is through an independent broker with access to the full market.
The most effective levers are: insuring at an accurate rebuild value (underinsuring to save premium is a false economy because of the average clause); installing and maintaining NSI or SSAIB-approved alarms and CCTV; increasing your voluntary excess in line with what you can comfortably absorb; keeping fire risk assessments, electrical inspections and hot works records current; and presenting any flood or Building Safety Act mitigation you've invested in. The single biggest lever, though, is market access — the same property presented to the right specialist underwriter with the right documentation can attract a very different premium to the one a comparison site returns.
The average clause is a standard policy condition that reduces your claim payout proportionally if your property is underinsured. If your building is insured for £500,000 but the true rebuild cost is £800,000, you are insured for 62.5% of the full value. The insurer applies this ratio to every claim — so a £100,000 loss results in a payout of only £62,500, with the £37,500 shortfall falling on the property owner. It applies even to small, partial-loss claims, not just total losses. This is why underinsurance is the most expensive mistake in commercial property insurance, and why a cheap premium built on a low sum insured is a false saving. Use the calculator above to see the impact on your own figures.
The rebuild cost is the amount it would cost to demolish and completely reconstruct your property at today's material and labour rates, including professional fees, debris removal, and compliance with current building regulations. It is not the same as market value — for many commercial properties, rebuild cost is significantly higher. The most reliable method is a professional rebuild cost assessment from a RICS-accredited surveyor. This should be updated every three to five years, and reviewed annually against published construction cost indices such as those published by the BCIS. Do not use purchase price, rateable value, or a rough estimate as the basis for a significant commercial property sum insured.
It typically covers the building structure against fire, flood, storm, escape of water, subsidence, theft, malicious damage, and accidental damage; contents cover protects fixtures, fittings, stock, and equipment inside the building. Most policies also offer optional extensions for business interruption, loss of rent for landlords, engineering breakdown, and legal expenses. Exclusions typically include gradual wear and tear, deliberate damage, losses from poor maintenance, and mechanical breakdown (which needs a separate engineering policy). For a full clause-by-clause breakdown of each section, see our dedicated guide to what commercial property insurance covers.
Commercial property insurance is not a statutory legal requirement in the UK. However, it is almost always a contractual requirement — mortgage lenders require buildings insurance as a condition of any commercial loan, and most commercial leases specify minimum cover levels for both landlords and tenants. In certain regulated sectors, such as healthcare and hospitality, additional insurance requirements may be imposed by regulators or licensing authorities. In practice, operating a commercial property without adequate insurance represents a financial risk that few businesses could absorb.
Most standard commercial property policies include flood as a covered peril, but properties in high flood-risk areas may find cover restricted, subject to higher excesses, or unavailable from standard insurers. The Environment Agency estimates 1 in 6 UK properties is at risk of flooding. Flood Re — the government-backed reinsurance scheme that has kept flood cover affordable for residential properties — does not currently extend to commercial properties. Businesses in flood-prone areas may need to access specialist Lloyd's markets or non-standard insurers. Property-level flood resilience measures (flood barriers, non-return valves, raised electrics) can materially improve terms.
Business interruption (BI) insurance covers the financial loss your business suffers when a physical damage event makes your premises unusable — lost gross profit or revenue, increased costs of working such as operating from temporary premises, and ongoing fixed costs like rent and payroll during the disruption. Without it, a business that cannot trade must fund all of those costs itself while waiting for the building claim to settle. For owner-occupiers it is as important as the buildings cover. It adds to the premium, but it is the single cover most likely to determine whether a business survives a major loss. The indemnity period must reflect a realistic worst-case reinstatement timeline, which for a complex commercial building can be 18–36 months.
Most commercial property policies significantly restrict cover once a building has been unoccupied for 30, 45, or 60 consecutive days — the threshold varies by insurer. Common restrictions include the removal of escape of water, malicious damage, and theft cover, leaving only fire, lightning, and explosion. Some insurers will cancel the policy entirely if unoccupancy is not notified. Properties unoccupied for extended periods require specialist unoccupied commercial property insurance, which is typically more expensive than standard cover. Notify your insurer or broker immediately when unoccupancy begins — do not wait for the threshold to be reached.
The Building Safety Act 2022 introduced significantly stricter fire safety and structural requirements for higher-risk buildings, principally multi-occupancy buildings of 18 metres or 7 storeys or more. Insurers are increasingly requiring evidence of compliance — including valid fire risk assessments completed within 12 months, EWS1 cladding assessments, building safety case documentation, and confirmation of a Principal Accountable Person — before offering or renewing cover. Non-compliance can result in restricted cover, higher premiums, or policy cancellation. If your property has any cladding, is multi-occupancy, or is above six storeys, Building Safety Act compliance should be an active, current priority.
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