Commercial landlords ''have more flexibility'' - commercial mortgages

24 August 2007

Landlords with commercial mortgages have been advised that they have more flexibility than typical property owners when it comes to insurance, but have nonetheless been advised to ensure they provide all the necessary information.

The Association of Insurance and Risk Managers (AIRMIC) has said that a number of options are available to landlords wanting to notify insurers of a change in circumstance, but added that risk still exist.

Rather than compromise on important information, landlords should accept that, to an extent, they get what they pay for when it comes to insurance, AIRMIC added.

"There are usually three options regarding changes in circumstance," commented AIRMIC spokesperson Paul Hopkin.

"The fist one is that you insure what you''ve got and then notify changes, then you can insure what you''ve got and then agree that you can acquire new property up to a typically ten to fifteen per cent increase without a change in premium within the policy year, or thirdly you can pay declare your portfolio at the end of the policy year and pay an adjustment premium then.

"It''s more flexible," Mr Hopkin added.