Property Insurance

Right to Manage (RTM) need to have the best property owners cover available

13/04/2012 in Property Insurance

Insurance for perils such as fire, theft, loss or damage has always been about having that peace of mind that, if an unfortunate event happens, the policyholder is put back in the same position before the loss occurred.

Over the years insurance has evolved to meet the changing needs of the policyholders with wider covers now available. So are any two insurance policies from different insurers exactly alike? The answer to the question is no, although the basis insured perils are likely to be the same, there will be subtle differences that could mean the difference between a claim being paid or not.

Right to Manage (RTM) companies should be looking for a property insurance policy that provides the widest possible cover as, in the event of an uninsured loss, the cost is going to have to be borne by the company as a whole. For instance, some property policies can now cover breakdown with cover could be particularly useful if a block of flats has lifts.

As claims for water damage are common in blocks of flats it is important that there is adequate cover for trace and access. The cover extension pays for the cost in tracing a leak and, rather surprisingly, is not standard cover in many policies.

For advice on building insurance for Right to Manage properties, contact Tony Gibbs on 0118 9165 485 or complete one of our enquiry forms.

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.

Flat Owners Insurance – 5 tips to get the best out of your insurance cover

30/01/2012 in Property Insurance

1)      Claims resulting from leaking water pipes are one of the most common causes of damage in blocks of flats. The cost of repairs to pipes is generally not covered unless the cause is accidental, however in order for the cost of tracing the leak to be covered, the policy must have a “trace & access insurance” extension.  It is important to check that this extension is in place and that the level of cover is adequate. It is not uncommon for trace in access claims in large blocks to exceed £15,000.

2)      It is recommended that the buildings sum insured is on a “Day One” basis. This is an inflation provision that provides protection against under-insurance in the event of a claim. The sum insured is inflated by between 15% & 50% to protect against increasing costs during the course of a repair or in worst case scenarios, a complete rebuild of the property.

3)      Insurance against terrorist acts is normally an extension of cover that can be purchased for an additional premium. Although the risk of a terrorist attack outside our major cities might be considered as minimal, if an event was to occur the parties involved in arranging the insurance cover could be held liable if inadequate cover is in place. Terrorism cover outside of major cities is relatively inexpensive.

 4)      It is important that the building sum insured is correct at the inception of the policy. We recommend that professional advice is taken to determine the right rebuilding cost. Further advice relating to rebuilding cost can be provided by surveyors Barrett Corp & Harrington.

 5)      We recommend that additional cover for loss adjuster’s fees is purchased. For a modest premium it is possible to cover the cost of such fees for material damage claims that exceed £5,000. Appointing a loss adjuster to act on your behalf will assist the claim process and ensure that repairs are completed as quickly as possible. Help is also provided with the sourcing of alternative accommodation if necessary.

For further advice about insurance for blocks of flats, contact Tony Gibbs on 01189 165 485 or complete one of our enquiry forms.

Commercial Property Insurance – Tips to avoid under-insurance

16/01/2012 in Property Insurance

Barrett Corp & Harrington (BCH) has kindly supplied us with some useful tips with regards to avoiding under-insurance. BCH specialise in insurance reinstatement cost assessments and risk surveys.

Under-insurance can lead to reduced claim settlements which can impact massively, in respect of future profitability and in worst case scenarios the continuation of a business. When the building is owned by a pension fund, maintaining an adequate sum insured is equally important.  

The building sum insured has been based on market value

The market value is the market value.  There is absolutely no correlation between the market value and the building sum insured; never has been and never will be!   The two are often significantly different and either one can be far higher or lower than the other depending on the location and quality of the building.

The value has been based on a developers’ costs

Developers keep costs to a minimum by using their own team of consultants and contractors.  By constructing en mass, savings are achieved that would not be available in an insurance claims scenario.  We also have to take into account the additional costs of demolitions and fees.

The building is in a funny location

Not funny ha ha. We mean there’s something a bit unusual about where it is. Like in a city centre adjacent to a railway line, or on a small island that’s only accessible via a weight restricted bridge. Imagine how these factors could complicate a rebuild. Complication equals cost. Cost means higher sums insured.

The building has recently been altered

Extended, altered, refurbished. What about the sums insured?  Did they get altered at the same time?

To take the guess work out of setting your building sums insured, please contact Barrett Corp & Harrington on 0844 412 4495 or visit www.bch.uk.com

For advice on commercial property insurance contact Tony Gibbs on 01189 165 485 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

Building insurance for Right to Manage (RTM) properties

14/06/2011 in Property Insurance

Arranging building insurance for a right to manage property can be an arduous task.  The main issues that we find RTM’s normally experience surround placing a correct rebuild value on the property, and obtaining details the previous claims experience.

Our recommendation is to always have a proper building valuation survey carried out by a chartered building surveyor. Although there is an initial expense, this will prevent the likelihood of under-insurance in the event of a claim.

We have seen a number of risks in the past, where because of no management structure in place, individual owners have been forced to arrange cover solely on their particular flat. Where there are mutiple insurers covering one property or block, there can be huge problems in the event of a loss. Our recommendation is to have the entire risk covered under one single policy to avoid potential problems.

By using an insurance broker, it is possible to obtain a full range of quotations. Our friendly team will make a final recommendation based not only on the premium but on the quality of the cover. We work directly with RTM’s or with their managing agents.

For further information please contact Tony Gibbs on 0118 9452944 or complete one of our enquiry forms.

Looking after unoccupied property

16/02/2011 in Property Insurance

The insurance implications of unoccupied premises

Unoccupied premises are an inevitable feature of the recession. The responsibility for these rests with the owner or the lessees dependent on the position at the time. Evidence shows that the prospect of damage or injury arising from empty buildings is high, even if only temporarily vacant, e.g. prior to sale or refurbishment.

Each year there are around 9000 fires in empty buildings. Other common problems include theft of contents or fixtures, vandalism, fly tipping and occupation by squatters etc. Empty buildings are also at risk of water damage due to inadequate maintenance/repairs, especially when coupled with infrequent site visits.

Owners have a legal ‘duty of care’ to third parties; such as authorised people entering the premises, whether they are employees, estate agents, surveyors, buyers, etc or even trespassers including children who may simply use the area as an unofficial playground.

Due to the increased risks involved, premiums charged by insurers are often higher than when they are occupied. In addition special terms are often applied with cover often limited to fire, aircraft, lightning and explosion. If a building owned or occupied by you is vacant even if temporarily, you should let your broker know immediately so that they can tell your insurers.

For advice on the best type of insurance for unoccupied properties, call Ben Butler on 0118 9452944.

Asbestos in Farm Buildings

15/10/2010 in Insurance Industry News, Property Insurance

Asbestos containing materials were banned in 2006 in all new builds.

In 2006, the Control of Asbestos Regulations brought together three previous regulations regarding the management of asbestos in buildings. These regulations banned the use of Asbestos Containing Materials in all new builds.
This regulation requires employers and others – “dutyholders” to have effective arrangements in force for the management of asbestos in buildings for which they have control.

This means that, even though you may not own your farm, you may still be responsible for managing the risks arising from the presence of asbestos-containing materials in your premises. This responsibility may arise through a Contract of a Tenancy Agreement e.g. a full repairing lease.

The Regulations require the dutyholder to:

• Investigate whether Asbestos Containing Materials are present
• Check their condition
• Carry out a risk assessment
• Prepare a written plan specifying the measures to be taken to manage the risk
• Inform anyone who might disturb the Asbestos Containing Materials, or who might work on the material, of its presence
What do you need to do?

Find – you must carry out a risk assessment of your premises. Draw a plan of your farm buildings and mark the presence of asbestos.

Identify – if you are unsure of the type of asbestos or you are proposing to carry out any work on the buildings, arrange for samples to be taken using a UKAS accredited laboratory.

Condition – you must check what condition the material is in. Decide whether the asbestos should be removed or sealed, taking into consideration its location and condition.

Remove – arrange for any removal to be undertaken only using a licensed contractor.

Inform – inform employees and contractors of the presence of asbestos and make sure they do not disturb it

Record – keep a register and check the condition of the asbestos regularly by inspecting it.

Other implications of asbestos in farm buildings relating to insurance

The Employers’ Liability (Compulsory Insurance) Act 1969 makes it compulsory for all employers to insure against liability for injury or disease to employees arising in the course of their employment. It is also a requirement to retain either a paper or an electronic record of your insurance for 40 years. Asbestosis and mesothelioma disease can be present for many years before manifesting themselves. There are over 3000 deaths every year as a result of asbestos related illnesses. A claim against a former employer can arise many, many, years after their employment ceased – do you hold Employers’ Liability Insurance? The removal of asbestos costs approximately 4 times the cost of removal of other building waste. If you had a serious fire today, would your sum insured on your farm buildings be sufficient to not only rebuild your farm buildings but also pay for architects and surveyors fees and the removal of asbestos?

Health and Safety Regulations state that all buildings containing Asbestos Containing Materials should be identified with an appropriate sign. In the event of a serious fire, the Fire Brigade would be unable to enter a building if there was a possibility of asbestos materials being present. Even with breathing apparatus, they would be helpless and would have to stand and watch your livelihood go up in smoke.

Sarah Ducker

08/10/2010 in Property Insurance, Testimonial

“Paul is one of the most professional people I have come across in the insurance industry as he listens to your requirements and then ensures that you get what you actually need which let’s face it, is not always the case. The team at Macbeths offer you the Rolls Royce of insurance advice. Nothing is ever too much hassle for them and they are always at the end of the phone or email when you have a question. On a personal note they manage the block of flats insurance and have been a life saver more than once. If you are looking for an insurance broker who will look after you 110% and will ensure you are not paying over the odds or have a policy that isn’t right for you then you need to call Macbeths.”

Sarah Ducker

Be prepared for the thaw

13/01/2010 in Property Insurance

The cost and personal inconvenience caused by a burst pipe claim can be considerable with claims often running into many thousands of pounds. Just a small fracture can release hundreds of gallons of water into your property; damaging carpets, walls, ceilings and also personal items.

The chance of suffering these losses can be reduced and we would recommend taking the following steps to do this:

General tips:

Check the location of your stopcock.

Check whether your boiler needs servicing.

Check the insulation on your water pipes and cold water tank, those in the attic or other vulnerable spaces should be lagged or similarly protected.

Modern methods of insulation can be so effective in keeping heat within your property that attics can become very cold, this could cause a pipe to freeze. We therefore recommend you keep your loft hatch open if you have pipes in the attic to keep this area warm.

Keep doors between heated and unheated rooms open to allow warm air to circulate.

Keep cupboard doors open below sinks to allow warm air to circulate around the plumbing.

Seal any holes or gaps that may be letting cold air into your property.

Make sure any valleys and gulley’s on your roof are kept clear and free from debris.

Make sure any external taps are turned off and disconnect any hoses.

If you discover a frozen pipe don’t wait for it to burst. Turn off your water supply and then slowly thaw the affected pipe by introducing gentle heat to the area e.g. hair dryer, space heater, hot water bottle. DO NOT attempt to thaw the pipe with a blow torch or other open flame such as a cigarette lighter or matches.

What if you are going away or the property will be unoccupied?

Keep your property heated to reduce the chance of a pipe freezing.

If you are going away for an extended break drain and shut off your water system.

Ask somebody to check on your property daily. This may not prevent a loss but early identification of an escape can help reduce the ultimate cost.

Ensure you have complied with any unoccupancy conditions or warranties listed in your policy.

What if the worst happens?

Turn off the water supply at the stopcock. This should prevent any more water escaping into your property.

Where practical try and catch any excess water in a bucket or other container.

Do not use any electrics if you believe these may have been affected by the escaping water. You will need to have these checked by a professional electrician.