Commericial Property Insurance

Every property needs to be protected, regardless of size or tenancy. How confident are you in the cover you have?Let us help you gain clarity.Our role as an insurance broker is to understand your business needs and source cover that is both relevant and resourceful. To get the best outcome for you, we utilise our strategic alliances with insurers and develop Honan exclusive policy benefits and preferred pricing. This allows you access to the best cover for your property and gives you confidence through uncertain times.

Why Honan?

We pride ourselves on our industry experience and alliances. With many years of experience managing Commercial Property Insurance, our portfolio covers over a thousand properties nationally.

In the event of a claim, we have an experienced internal team to advocate for you through every step of the process, including negotiating with the insurer on your behalf. We guide our clients through the claims process, so they feel supported and secure.

This is all underpinned by a strong focus on delivering excellent client service. We pride ourselves on knowledgeable and timely advice.

We are committed to working for you.

BUILDING/CONTENTS Protect your Building, Contents, and Fixtures and Fittings against Accidental Damage and other insured events, such as impact, storm and fire.

LOSS OF INCOME Could you endure months or even years on end without rental income? Insure your Loss of Income following an insured event, and continue receiving income while your property is repaired.

RENT DEFAULT Offered by just a few insurers, Rent Default is a relatively new coverage for commercial property owners. With up to 26 weeks cover, you’ll be protected if your tenant breaches their lease agreement – e.g. vacates without notice or goes insolvent.

PROPERTY OWNERS LIABILITY As an owner, you have a responsibility to provide a safe and compliant property for your tenants. When things go wrong, Property Owners Liability to designed to protect you against legal fees and damages brought against you for third party damage and bodily injury.

ALSO AVAILABLE

— Glass

— Machinery Breakdown

— Tax Audit Costs

— Theft

— Legal Costs for OH&S Breaches

— Money

WHAT WE CAN HELP YOU WITH:

2COMMERCIAL PROPERTY INSURANCE

Commercial Property Insurance Frequently Asked QuestionsWhy do I need insurance when my tenant already has a policy?

Even if your tenant has taken out a policy which includes Building cover, as a property owner you have a unique Liability exposure only you can protect yourself against.

Liability cover is designed to respond to the named insured for their business activities. This means the Liability section of your tenant’s policy will only respond to their business activities and does not extend to you as the property owner.

Also, if you allow the tenant to take out insurance on your behalf, you lose all rights to enquire and make changes to the policy as you would not be considered the policy holder. Theoretically, the tenant could make changes and claims without informing you.

What is an Indemnity Period and how I do choose an appropriate level?

The Indemnity Period is the length of time the insurer will pay Loss of Income following an insured event. When setting an Indemnity Period, it’s important to consider all the processes involved following a major or total loss of the Building. For example: changes in building regulations; planning permissions; the removal of debris; ease of access to the property; drafting of plans; and rebuild time itself.

Honan recommends a minimum of 24 months, however greater should be considered for, but not limited to: larger buildings; buildings with special features; heritage listing; and asbestos.

What is Rent Default?

Separate to your traditional Loss of Rent cover, Rent Default means when a tenant fails to pay the agreed rent and is in breach of the lease agreement, including when a tenant leaves without giving the notice required under the lease agreement.

Subject to the terms and conditions of the policy, Rent Default may respond: if your tenant leaves your rental property before the end of the tenancy period of the lease agreement, without giving you or your agent notice; is legally evicted from your rental property; or stops paying rent owed to you.

What happens if my building is not insured adequately?

Unlike Residential Landlords or Householders insurance, Commercial Property policies have what’s called an averaging or co-insurance clause. The specifics of the clause vary from each insurer, however in general it determines that if your property is under insured by between 15-20%, a claim made may be paid out proportionately.

For example, if the actual Building Value is $1,000,000 but it is insured for $500,000, it would be under insured by 50%. This means that if there was a $50,000 loss the insurer may pay 50% of this – $25,000.

We recommend seeking an independent valuation to ensure your building is insured for the correct replacement value. Honan can refer you to our partnered valuer if required.

Want to learn more? For more information or to obtain a quotation, please contact:

Gareth Lewis Client Relationship Leader - Real Estate Solutions t — +61 7 3120 9817 m — +61 447 284 258 e — gareth.lewis@honan.com.au

Stuart McLeod Sales & Service Leader - Real Estate Solutions t — +61 3 9947 4341 m — +61 429 308 457 e — stuart.mcleod@honan.com.au

Timothy Ebbutt Assistant Service Executive - Real Estate Solutions t — +61 2 8297 1791 e —timothy.ebbutt@honan.com.au

3COMMERCIAL PROPERTY INSURANCE

SUM INSURED

Buildings (or Contents where Building is covered by Strata)

$

Annual Rental Income (including Outgoings)

$

Indemnity Period

12 months 18 months 24 months 36 months

Public Liability

$10M $20M $30M

IMPORTANT QUESTIONS YES NO

Is Machinery Breakdown required?

Is Glass cover required?

Is Rent Default cover required?

Has this property previously been flooded?

Does the tenant use deep fryers or woks?

Is the property heritage listed, overlay or facade?

Is there EPS (sandwich panelling)?

Is Flood cover required?

Has the property been rewired in the last 15years?

Have you had any claims in the last 5 years? Provide,

date of loss, claim description and paid amount:

Is there anything else we should know about the property?

Please attach a copy of current policy schedule / invoice.

NAME OF MANAGING AGENT

INSURED NAME

ABN / REGISTERED FOR GST

MAILING ADDRESS

EMAIL ADDRESS

CURRENT INSURER

POLICY DUE DATE

PROPERTY LOCATION

OCCUPIED/TENATED AS

CONSTRUCTION

Walls Roof Floors

Year Built No. of storeys

RISK MANAGEMENT

Monitored Smoke Detectors Extinguishers

Hose Reels Sprinklers Fire Alarms

Burglar Alarms Deadlocks Bollards

Swipe Card Access

Application Form

Honan Insurance Group Pty Ltd (Honan) holds an Australian Financial Services License AFSL 246749. Please note: • Honan is not an insurance company for any insurance product and acts for you as an insurance broker. On some occasions we act under a binder as the insurer’s agent and in such circumstances we will notify you. • This brochure contains factual information and is no way considered advice. Before purchasing an insurance product it is important you read the Honan Financial Services Guide (FSG), Product Disclosure Statement (PDS) and policy before you make a decision about an insurance product. • Depending on the information provided, we may require additional information as some properties have greater risk exposures than others.

4COMMERCIAL PROPERTY INSURANCE