25.10.2021 - Trends in real estate insurance

Insurance of commercial property is common almost all over the world, but in Ukraine, many property owners treat insurance activities with extreme caution. First of all, this is due to the lack of an insurance culture and doubts about the reliability of the insurer. Nevertheless, if your commercial activity requires the office rental, you need to be ready to insure it, as it is required under the Law of Ukraine “On the lease of state-owned and municipal property”.

You, as a tenant, have at least one big plus when insuring the commercial property. By signing the insurance contract, all risks associated with the rented office space are borne by the insurance company. In addition, the prospect of a long term office lease opens before you, since many companies are aimed at long term reliable cooperation.

What is covered?

At a minimum, rented office space is covered by utilities, interior decoration, furniture and appliances. In addition, the policy includes insurance against various kinds of natural disasters, unlawful actions of third parties, damage by water or items falling from flying objects.

The cost of insurance for the rented office.

Typically, the price is determined as a percentage of the value of the property. On average, insurance costs about UAH 1,500 per year, but the price can also be influenced by the risks from which you want to insure the commercial property.

Before concluding an insurance contract, you should:

1. Make sure that the insurance company has a license, which can be checked on the website of the National Bank

2. Check the subject of the contract, as well as the items to be insured

3. Get acquainted with the insured events, upon the occurrence of which you are subject to payment

4. Clarify the amount of the insurance amount paid to you upon the occurrence of the insured event.

It is very difficult to find immediately the exact insurance company from the first attempt. However, never stop at one company, study carefully the terms of contracts and read reviews. Anyway, if you need to rent of real estate in Kiev or are looking for a ready office for rent, we recommend considering offers of office lease for Kazimir Malevich 86.