1st Commercial - Insurance

[pritch]

Hi,

We're looking at our first commercial deal, jumping in at the deep end to start learning. Industrial warehouse with a 9.2% yield on predicted buy price of 600k.

Property is in Melbourne outer suburbs.

We have a few resi properties insured through Vero and have found them pretty good.

We'll be chasing them for quotes next week, but wondered who others have used for insurance?

Looking through some old threads I found a reference saying about 0.02% of the purchase price for an annual cost, can anyone tell me if this sounds right?

Cheers,

Pritch

 

[sailor]

Hi Pritch, congrats on the deal...sounds good. I think your percentage is fairly accurate in comparison to what I'm paying. For what it's worth I've always found CGU very good to deal with when I've had to make a claim.

 

[jingo]

Hi Pritch, congrats on the deal...sounds good. I think your percentage is fairly accurate in comparison to what I'm paying. For what it's worth I've always found CGU very good to deal with when I've had to make a claim.

I'll second that! We have our IP's insured through CGU and they are extremely co-operative when you need to make a claim. Money usually comes through within a week!

Regards Jingo.

 

[jrc]

I'd be expecting to pay more than $120.00 (0.02% of 600K). My premium with CGU is around 0.6%.

 

[buzzlightyear]

Family commercial property has insurance premium of approximately $1800. The property is worth between $600-650k (~0.30%).

The nature of the business being run will also influence the premium. Current lessee is a pharmacy/chemist.

 

[pursefattener]

I have my insurance through Wesfarmers for all my business and investments . Only made one claim in recent times and was no real drama . They won't be the cheapest however..... I have had quotes from other firms but the margin wasn't worth worrying about .

 

[pritch]

Hi,

Thanks, will check out CGU to see what they quote.

And yes, should have been 0.02x not %!

Pritch

 

[GreenTreeFrog]

Are these insurance % figures the same for a small shopping arcade with several tenants?

0.2% - 0.6% of purchase price?

Thanks!