An escape of water claim may be resolved within weeks, but its effect can remain relevant when the property insurance is renewed. A commercial property insurance claim renewal is not necessarily as simple as adding an amount to last year’s premium. The insurer will usually consider what happened, how much the claim cost or could ultimately cost, whether similar incidents have occurred before and what has changed at the property since the loss.

For a commercial landlord, property owner or business occupying its own premises, the useful question is therefore not simply, “Will my premium increase?” It is also, “What information will the insurer need to assess the property accurately at renewal, and what can I do before then?”

If you are reviewing the wider protection available for your premises, our main commercial property insurance page explains the principal types of cover and how specialist brokers can help businesses compare quotations.

What do insurers consider after a commercial property claim?

A previous claim forms part of the overall underwriting picture. It does not automatically mean an insurer will decline the property or impose significantly different terms.

The circumstances behind the loss can be particularly important. An underwriter may look at whether the claim resulted from fire, escape of water, flood, storm damage, theft, malicious damage, subsidence or another insured event.

They may also consider:

• how recently the claim occurred;
• the amount already paid;
• any amount still outstanding or reserved;
• whether the claim is open or closed;
• whether there have been previous similar incidents;
• the overall claims history of the property or portfolio; and
• whether anything has been done to reduce the likelihood of the loss happening again.

Two properties with claims of a similar financial value could therefore be viewed differently if the circumstances behind those claims are very different.

Why does the cause of the claim matter?

The value of the claim is only part of the story. Insurers may also want to understand why the loss happened and whether the cause points to an ongoing problem.

For example, an isolated escape of water caused by a damaged fitting could present a different picture from repeated water damage associated with ageing pipework.

Following a theft, questions might be asked about alarms, locks, shutters, CCTV, access arrangements or how the premises are secured outside business hours.

A fire claim could lead to closer consideration of electrical systems, fire alarms, extinguishers, commercial cooking equipment, storage arrangements or other features relevant to the particular premises.

If remedial work has been completed, keep evidence of it. Replacement pipework, electrical work, improved security, leak detection, roof repairs or revised inspection procedures may help demonstrate that the cause of the previous loss has been investigated rather than ignored.

These improvements do not guarantee a particular premium or renewal outcome, but they can give the underwriter better information on which to assess the current risk.

Does one large claim matter more than several smaller claims?

Not necessarily. Insurers may consider both the severity and frequency of claims.

Claims severity refers broadly to how expensive a loss is or could become. Claims frequency refers to how often losses occur.

A substantial one-off claim with an identifiable cause that has subsequently been corrected may present a different underwriting question from several smaller claims involving the same problem.

Repeated escape-of-water incidents, thefts or storm-damage claims, for example, could prompt questions about whether there is an underlying issue with the building, maintenance, security or location.

This is one reason why looking only at the total amount paid in claims does not necessarily explain how an insurer will approach the next renewal.

Why can an open claim complicate commercial property renewal?

A commercial property claim does not have to be completely settled before the policy reaches its renewal date.

Repairs may still be taking place, the final cost may not be known, liability may be disputed or the insurer may be attempting to recover money from another party.

An open claim can therefore have an outstanding reserve. This is an estimate of the amount that may ultimately be required in relation to the claim.

The reserve is not necessarily what the claim will eventually cost. It may change as further information becomes available. However, when the policy is being reviewed, the underwriter may have to assess the property while that potential liability remains unresolved.

Check the claims information before renewal

Ask your broker or insurer for current claims information early enough to identify anything that needs clarification.

Check the:

• date of loss;
• description of the incident;
• current claim status;
• amount paid;
• outstanding reserve, where shown;
• fault or recovery position where relevant; and
• whether completed claims have been recorded as closed.

If something appears inaccurate or out of date, raise it before renewal negotiations are well underway.

What happens after an escape of water claim?

Escape of water can be particularly relevant to commercial properties because the circumstances vary considerably between buildings.

The insurer may want to understand where the leak originated, the extent of the damage and what action was taken afterwards.

Depending on the circumstances, relevant information might include evidence of plumbing repairs, replacement pipework, leak-detection systems, inspections or changes to heating arrangements.

Occupancy can also become important. A leak discovered quickly in a fully occupied office may have very different consequences from one that remains unnoticed for an extended period in an empty unit.

If any part of the building has subsequently become vacant, check how this can affect unoccupied commercial property insurance rather than assuming the previous policy conditions will continue unchanged.

What happens after a fire claim?

A significant fire can result in more detailed underwriting questions because the loss may affect both the building and the way the premises are subsequently used.

An insurer may want information about the cause of the fire, repairs undertaken and any improvements to fire protection.

If rebuilding or refurbishment is substantial, the insurance requirements during the works can also differ from those applying to an occupied, completed building.

Where repairs develop into substantial refurbishment or structural work, there may be additional insurance considerations. Our guide to commercial property alterations insurance explains what property owners should tell their insurer before significant building work begins.

What happens after a theft or malicious-damage claim?

After theft or malicious damage, the insurer may look closely at the security arrangements at the premises.

This could include the type of locks, alarms, shutters, CCTV, perimeter security, key management and overnight occupation.

If the previous claim revealed a particular weakness, explain what has been done about it.

For example, saying “security has been improved” provides relatively little information. Being able to explain that an alarm was upgraded, access procedures changed or additional physical security installed gives the insurer something more specific to assess.

Can a commercial property claim change more than the premium?

Yes. This is an important point. A higher renewal premium is easy to identify, but the insurer could potentially change other elements of the policy as well.

Depending on the circumstances and insurer, this might include a different:

• policy excess;
• escape of water excess;
• flood or subsidence excess;
• limit of cover;
• security requirement;
• inspection requirement;
• unoccupancy condition; or
• other policy term or exclusion.

Do not therefore compare the existing and renewal policies purely on price. Read the schedule and relevant policy wording and identify whether the terms have changed.

A cheaper renewal is not necessarily better value if an important element of cover has become more restrictive.

Has the property changed since the claim?

The claim itself may not be the only change that needs discussing at renewal. Consider what has happened to the building since the previous policy was arranged.

For example, has:

• the tenant changed?
• the tenant changed its business activities?
• part of the property become unoccupied?
• significant refurbishment taken place?
• the building been extended?
• security been upgraded?
• the property’s use changed?
• the reinstatement value changed?
• new equipment or machinery been installed?

For landlords in particular, the activities carried out at the premises can be important. Our guide explaining how a tenant’s business can affect commercial landlord insurance covers why a change of tenant or trade may alter the risk presented to an insurer.

Check the buildings sum insured after substantial repairs

A major claim can be a useful point at which to review whether the buildings sum insured remains appropriate.

The buildings sum insured should normally reflect the cost of reinstating the property rather than simply its market or sale value. Substantial repairs, extensions, improvements or changes in construction costs can make it sensible to revisit the figure rather than automatically carrying forward the previous year’s amount.

This is particularly important where a claim has resulted in extensive reconstruction or where the building has been improved beyond its previous specification.

What if you own several commercial properties?

A claim at one building does not necessarily mean every property in a landlord’s portfolio presents the same risk. However, where several properties are insured together, insurers may want to understand the wider claims experience of the portfolio.

If several claims have occurred, look for patterns before renewal.

Repeated water claims across different properties might lead to questions about maintenance and inspection procedures. Multiple thefts could raise questions about security standards. Similar storm claims might highlight a recurring issue with roofs or building condition.

Conversely, being able to demonstrate that an incident was isolated to a particular property and that the underlying cause has been addressed can help provide useful context.

Owners with let commercial premises can also read our guide to commercial property insurance for landlords for more information about the issues that can arise when insuring investment property.

Can you change insurer after making a commercial property claim?

Having made a claim does not in itself prevent a business or landlord from considering another insurer at renewal.

However, changing insurer does not erase the claims history. When obtaining quotations, claims information should be provided accurately in accordance with the questions being asked.

Trying to obtain a cheaper quotation by leaving out a previous loss can create considerably more serious problems than dealing with the claim openly.

A specialist commercial property broker can help present the circumstances and supporting information to insurers that may consider the risk, but the insurer ultimately decides whether to offer cover and on what terms.

Prepare for renewal before the expiry date

Do not leave a difficult commercial property renewal until the final few days.

Where there has been a significant or unresolved claim, start gathering information early. For each relevant claim, prepare a concise record covering what happened, when it occurred, the amount paid or currently reserved, whether it is open or closed and what remedial action has been completed.

For larger losses, supporting evidence might include:

• repair invoices;
• photographs of completed work;
• electrical inspection records;
• drainage reports;
• security installation details;
• fire-safety improvements;
• survey information; or
• relevant contractor documentation.

The information required will depend on the claim. The aim is not to overwhelm an insurer with paperwork, but to provide useful evidence addressing the circumstances of the loss.

Give full and consistent information

Commercial insurance is arranged using information about the property and the risk presented to the insurer.

At renewal, answer questions about previous claims and changes at the premises accurately and completely.

This can be particularly important where a claim was notified but ultimately resulted in no payment, a claim remains open, several properties are insured together or significant changes have occurred since the loss.

If you are unsure whether information needs to be disclosed, raise it with the broker or insurer rather than making an assumption.

Review the whole policy after a commercial property claim

A previous claim does not determine the outcome of a commercial property renewal by itself.

The insurer may consider what caused the loss, its financial impact, whether the claim remains open, the property’s wider claims history and what has been done to reduce the possibility of the same problem happening again.

Before accepting renewal, check more than the headline premium. Review the excesses, limits, conditions, exclusions, buildings sum insured and any requirements introduced following the claim.

Clear claims information and evidence of appropriate remedial work give the insurer a more complete picture of the property as it stands now, rather than simply showing that something went wrong in the past.

If your property policy is approaching renewal, you can use our commercial property insurance comparison service to find out more about cover and obtain quotations through specialist UK brokers.

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This article is for general information only and does not constitute insurance, legal or financial advice. Commercial property policy terms, underwriting requirements and claims circumstances vary between insurers. Check your policy documentation and discuss your individual circumstances with your broker or insurer before making insurance decisions.

Last updated: September 2026