High Value Homes

Buildings insurance for flying freeholds

03/04/2012 in High Value Homes, Property Insurance

A flying freehold usually applies to a part of the building which is above the ground floor level, and extends or over hangs someone else’s land.

A common example can be found in Victorian terraced properties where there is internal access through a shared passageway, running from the front to the back. Any part of the property which was situated over this walkway will invariably incorporate a flying freehold. It is also fairly common in older buildings which have been divided and sub-divided

As an insurance claim on one part of the building could have a direct effect on the neighbouring part of the building, it is vital that there is adequate buildings insurance coverage. The ideal situation would be to have both properties insured with the same insurer although this is not always possible.

It is important that building insurers are made aware of a flying freehold situation as this may have a bearing on the acceptance of the risk or the premium rating. Another implication could be the cover for alternative accommodation especially if there is a claim on the ground floor that prevents access to the neighbouring property.

For further advice on insurance for flying freeholds contact Tony Gibbs on 0118 9165 485 or complete one of our enquiry forms.

Be prepared to travel

18/02/2012 in High Value Homes

It is the time of year when we are all looking to book our summer holiday and January is historically the Travel Agents busiest time. There has been a trend over the last few years of holidaymakers venturing further afield, although the European Union still remains the number one destination for the British, with Bulgaria taking the top spot.

The Foreign and Commonwealth office launched an on-going campaign in 2001 called ‘Know Before You Go’ (KBYG) with just over 500 travel industry partners to help Brits to stay safe and healthy abroad.

The campaign was launched to promote these key messages:

get comprehensive travel insurance, and read the small print

check the FCO’s country travel advice

research your destination – know the local laws and customs

research the health risk on the NHS travel health information page as soon as possible before travelling, and if necessary visit your GP

check your passport is valid and you have all necessary visas

make copies of important travel documents and/or store them online using a secure data storage site

tell someone where you are going and leave emergency contact details with them

take enough money and have access to emergency funds

Every year thousands of British travellers seriously regret not taking these simple steps.

Most high value home insurance policies can be extended to include annual travel insurance. For further information contact Jeremy Edwards on 01189 165 488 or complete one of our enquiry forms.

Safe ratings – How insurers assess what type of safe is suitable

11/01/2012 in High Value Homes, Jewellery and Watches

The price of gold, diamonds and precious metals has risen dramatically over the last two to three years; general estimates suggest as much as 50-60%. As a result, the cost of jewellery has also risen by similar percentages. Sadly this is only highlighted to people when a loss occurs. Insurers will require either an estimate to repair or replace the item lost or damaged or use one of their recommended companies. It is then that realisation hits that the cost of replacing the treasured item has doubled and the sum insured is not sufficient.

The first recommendation is to have the jewellery valued every two to three years. At Macbeths, we have access to a number of reputable companies that can provide up to date valuations at a reasonable cost. This will ensure that there is no under insurance and that clients will be fully reimbursed following a loss.

In addition to the under insurance aspect, an increase in values can also create significant changes to household insurance’s, not only in premiums but also in any terms applied. Many insurers are asking for the installation of floor safes, the size of safe requested is all based on the total jewellery value within household. Historically ‘Cash Rating’ is the term used for safes that are strong enough to be able to hold cash, but in terms of jewellery the ratio is 10 to 1, so for example £80,000 of jewellery would see an insurer requesting a £8,000 cash rated safe to be fitted.

The second recommendation is to install a floor safe, anchored, of sufficient cash rating that it can protect your jewellery. It is also prudent to plan ahead so that if your jewellery collection is likely to increase over a number of years, install higher cash rated safes to be able to cater for the higher amount.

If your insurer asks you to install a Euro grade safe, what does this mean in terms of cash rating?

Below is a list of the cash rated safes and what they would become in Grades under the European grading system:

Grade 0 – £6,000 cash rating

Grade 1 – £10,000 cash rating

Grade 2 – £17,500 cash rating

Grade 3 – £35,000 cash rating

Grade 4 – £60,000 cash rating

Grade 5 – £100,000 cash rating

Grade 6 – £150,000 cash rating

For further information about safes and the insurance implications as well as how to insure jewelley, please contact Carl Sharp on 01189 165487 or complete one of our enquiry forms.

Higher valued homes – Improvements can be costly

04/01/2012 in High Value Homes

The number of houses being purchased where the value exceeds £1 million pounds is very much on the increase, with home improvements becoming more and more popular. Owners of higher valued homes are more likely to consider works whether following a new purchase or to an existing property and consequently planning applications have seen a paralleled increase.

The works can range from a simple matter of redecoration, with the owner occupying the property to a complete renovation, taking several months to complete where the property is unoccupied. Either way millions of pounds are being spent each year, making home improvement a big business.

A small amount of work is usually acceptable to insurance companies without any restrictions in cover, generally any works costing up to £25,000, although this will depend on the individual insurance company. The building works increase the risk to the home insurer and these risks can be complex with insurers paying claims caused by contractors on a regular basis. In many cases the insurer is not aware of the on-going works and the additional risk that inevitably these works bring.  Where there are contracts for works in excess of £25,000 and the insurer in unaware, generally there will be no cover in force for the buildings. This leaves the policyholder exposed and in the event of an incident, potentially a considerable amount of money out of pocket.

Many works will be subject to JCT (Joint Contracts Tribunal Ltd) clauses or contracts – see www.jctltd.co.uk for more information. Each contract will have a section on insurance and these can be complex and have implications for the existing structure, your home.

Before any works are started and as early in the process of any planning application or tenders as possible, you must notify your insurance company or broker so that additional and appropriate cover can be arranged for the period of the works. It is not possible to arrange the appropriate cover once the works have started so it is imperative that if you are thinking of improving your home that you seek advice.

For further information about how home improvements can affect your household insurance, please contact Jeremy Edwards on 0118 9452944 or complete one of our enquiry forms.

The Root Cause!

01/12/2011 in High Value Homes, Private Clients

Although by no means the only cause, research over the years has estimated that around 60% of all subsidence problems with domestic houses, in clay subsoil areas, can be attributed to trees that are too close to the property, extracting moisture. Most trees have a significant radial root system, sometimes extending out a distance of 1 to 1.5 times the height of the tree.

One of the most common fears is that their roots will damage house foundations. In fact this is seldom the case as most foundations are able to withstand the odd tree root. But it is possible for roots to cause indirect damage through subsidence. Subsidence is what may happen to buildings on soils such as clay that shrink and expend in response to their moisture content. In summer, (or drought) clay soils shrink and in winter (or prolonged rain) they expand. This shrinkage and expansion causes movement, which may lead to subsidence. In some circumstances trees can make the situation worse.

In a large proportion of cases, offending tree(s) were within 16ft of the building and mostly all cases were where the damage was on “shrinkable” soils.

A few simple actions can be taken to protect your property and prevent long term problems if you live in a clay soil area are:

1. Do not plant trees or large shrubs close to the house or outbuildings – this table provides a guide to how far it is generally acceptable that species of trees can be planted.

2. Trees that are older than the property but within safe distances can be managed. Seek specialist advice from a tree surgeon or arboriculturalist – often maintenance programmes can be put in place to restrict growth by pollarding or crown thinning to control the amount of foliage produced, which in turn reduces the amount of water it requires

3. If trees are planted within the safe distance from your property after the house was built, it is recommended that they are removed, but never remove or in any way alter a tree that has a preservation order without the appropriate consent

4. The tree may be within a neighbouring garden or in the street. If you are worried about the potential subsidence problems, discuss it amicably and try to persuade then to take an appropriate action.

The Root Cause - Keeping a Sensible Distance

For further information about how the proximately of trees can affect your household insurance, please contact Jeremy Edwards on 0118 9452944 or complete one of our enquiry forms.

The Root Cause – Keeping a Sensible Distance

01/12/2011 in Factsheet, High Value Homes, Property Insurance

The Root Cause - Keeping a Sensible Distance

Mum’s the word – Insurance for actors & celebrities

24/10/2011 in Fine Art and Antiques, High Value Homes, Jewellery and Watches, Private Clients

Macbeth insures actors & celebrities

Insurance advice for students

20/08/2011 in High Value Homes

The large hike in university tuition fees coming into force in 2012 has meant an unprecedented number of students applying for places this year.

With all of the anxiety  and anticipation surrounding a move to a new university, having adequate insurance for students possessions can easily fall off the radar. Our advice to students would be to initially check to see if their parent’s policies extend to provide any cover before looking at purchasing separate insurance.

It is also worth bearing in mind that most policies that do extend to cover students possessions away from the main home are likely to exclude theft cover unless there are signs of forcible violent entry or exit, so we recommend that rooms are always locked when unattended.

There are some high net worth insurers who provide unrestricted theft cover for student possessions at colleges or universities however the premiums do tend to be more expensive.

For further information on the options available please contact Carl Sharp on 0118 945 2944 or complete one of our enquiry forms.

High Value Homes on the river? An impossible insurance risk?

28/06/2011 in High Value Homes

Being a true specilalist in insuring high value homes, we are frequently asked to arrange insurance for homes located close to rivers.

Given the horrendous flooding that some parts of the country have suffered in recent years, it’s not surprising that insurance companies are wary of such risks, but there are certain measures that a chartered broker can take to help reduce these fears and achieve the best possible terms for their clients.

Taking time to understand the risk, and it’s positive risk management aspects is paramount. Below is a selection of questions that we ask our clients when insuring such risks:

What is the distance of the house from the water edge?
What height is the property built above the water level?
If the property has flooded previously, what was the cause of the flood?
Have the relevant authorities carried out any measures to reduce the risk of further flooding?
Have you implemented any other risk management features, such as Floodguards?

Once we have an in-depth and accurate picture of the risk, we work hard with our specialist underwriters to provide you with the cover you need.

Macbeth Private Clients is a dedicated team specialising in insuring high value homes, fine art and antiques, jewellery and high value cars.

For more information, please contact our Managing Director, Paul Macbeth on 0118 945 2944 or complete an enquiry form.

Insurance for barn conversions

19/05/2011 in High Value Homes

Insurance for barn conversions

If you have converted a barn into a private residence, or if you have just purchased a converted barn, it’s of utmost importance that your insurers know the full facts.

From an underwriters point of view they will want to know the age and construction of the property. If the building is Grade 1 or Grade 2 listed, the rebuilding cost is likely to be higher and this will have a bearing on the insurance. 

At Macbeth we have a number of bespoke solutions for insuring barn conversions or listed homes, including some insurers who will carry out a rebuilding valuation free of charge.

For more information, contact our Private Client Manager Carl Sharp on 0118 9452944 or complete one of our enquiry forms.