A tenant working from the property is ordinary. A tenant running a business with customers, stock or equipment on it changes what the building is, and the owner is the last to know.
Commercial activity in a residential rental can affect your cover whether or not you approved it.
Three things about commercial activity in a residential rental.
A landlord policy is rated for residential occupancy. A tenant running a workshop, storing stock or receiving customers changes the risk, and a carrier learning about it after a loss may question the cover. The owner did not create the change and the owner holds the policy, which is the awkward part.
Members of the public coming and going is a materially different exposure from a household. If a visitor to a tenant’s business is hurt, the owner can be drawn into the claim, and a residential liability limit was not set with a public footfall in mind.
A clause requiring written consent for commercial use, and requiring the tenant to carry their own business liability cover, costs nothing and prevents most of this. Without it the owner is relying on finding out by chance.
What is actually happening at the property.
Including informally, and including online sellers with stock.
Public footfall changes the liability picture.
A consent clause is the cheapest control available.
Tell us what your tenants do at the property and what the lease permits.
We will draft the consent clause and quote the property honestly.
Request a quote