Guide to property insurance cover

Transcription

1 Guide to property insurance cover

2 Introduction All properties require some form of insurance and we have arranged a comprehensive block building insurance for our properties. This provides cover for all building risks, for up to 36 months loss of rent, and property owner s liability cover of up to 10 million. This document is intended to be a quick reference guide and does not provide full details of all the terms and conditions of the insurance policy. Important notes on making a claim Report all claims or incidents promptly. Failure to do so could invalidate your claim. 1. Malicious damage or theft claims must be reported to the Police and a crime reference number provided 2. Mitigate your loss by undertaking emergency works e.g. boarding up, making safe and water tight 3. Refrain from undertaking reinstatement works until approval is granted by QBE 4. Retain damaged items for inspection by QBE and take photos of damage where possible. Include witness statements and details of any party responsible for causing the damage, for example, impact damage by a vehicle 5. Retain CCTV footage of any accident / incident which could assist QBE in defence of a third party claim 6. Do not respond to any letters of claim from third parties. They must be ed directly, immediately and unanswered upon receipt to Hettle Andrews. Failure to do so may prejudice the investigation. Do not take any action which could be construed as an admission of liability (sending an apology for example or repairing an accident location before prior discussion with QBE) The investor / tenant is responsible for payment of any policy excess. 1 1

3 Frequently asked questions Question What insurance programme have you used? What are the key features of this policy? Answer Hettle Andrews & Associates Limited have arranged a single block policy with QBE European Operations for all assets which are the responsibility of. All risks cover Nil excess for fire, lightning, aircraft and explosion Property Owner s Liability cover - 10,000, month rent cover Full vacant property cover Individual certificate of insurance 24-hour claim service Once the insurance protection starts when will I have to renew the policy? What protection do I have on the building? Does all risk cover everything? The annual renewal date of the policy is 1st May. The premium for properties added to the policy during the term will be calculated on a pro-rata basis, from the date of completion to the next renewal date. The insurance is an all-encompassing All Risks policy, so physical loss or damage including theft, sprinkler leakage, breakage of fixed glass, flood, subsidence, landslip, heave and terrorism are all included. No. An All Risks policy has a number of exclusions, and these are the standard ones: Faulty and defective design, materials and workmanship Gradual deterioration, wear and tear, rust and corrosion, wet or dry rot, dampness, dryness, shrinkage, evaporation, marring, scratching, vermin or insects Change in temperature, colour, texture or finish Collapse of buildings War risks Public Liability cover is NOT provided for tenants or any activity they are engaged in. Please also note that this policy does not provide cover for the business in occupation or any content. What is compulsory excess? The policy excess is 250 for all claims other than Subsidence, Landslip or Heave where the excess increases to 1,000. Further, when a property becomes unoccupied, the excess increases to 2,500 per event see Unoccupied Properties. How much buildings cover should I get? What cover is provided for loss of rent? Do tenants need to arrange their own insurance? Public Owners Liability, what is it? Do I have it? I have been asked to note an interest on the policy, can I do this? You only need to insure for the cost of rebuilding the property the reinstatement value. This is the value declared to insurers in the Valuation Form and represents the cost of reinstatement (i.e. rebuilding the property). Should damage occur to the building, all rental income including any non-rental income such as advertising or car parking fees can be insured. The insurance will protect you up to a maximum period of 36 months. Yes. Tenants must arrange their own cover based on their own occupation and to indemnify them in the event of a loss occurring within their demise. Protection against personal injury to a third party or accidental damage to property for which may be held legally liable, including the costs and expenses incurred with the insurer s consent in defending such claims. Cover is included in the policy of 10,000,000 for each and every occurrence. Yes, the interest of any superior landlord or tenant is noted to the extent this is required under the terms of the lease. The names of any parties who have an interest in any of the property insured shall be declared to the Insurers at the time of any loss. 2 2

4 Question A tenant has asked if subrogation rights are waived, are they? A tenant and/or a Lender have asked if there is a non-invalidation clause, is this the case? What are the values insured? How do I make a policy change or amendment? What should i do if my property becomes empty or vacant? What are the guidelines for the management of Unoccupied Premises? What is the claims procedure? Answer Yes, the insurers agree not to pursue any freeholder, lawful tenants or lease for losses resulting from their negligent action, unless the loss is the result of a fraudulent, criminal or malicious act. Yes, the cover will not be invalidated by the breach of any policy conditions or by any alteration where such breach of alteration is unknown to or beyond the control of the Insured. Where stated on the insurance certificate, all properties are insured with a Day One Reinstatement value. It is our recommendation that the building values are assessed by a professional surveyor and a new insurance valuation undertaken at least every 7 years. Loss of Rent is insured based on the income received, multiplied by the indemnity period (3 years). Please contact Hettle Andrews direct by at: [email protected] or telephone: It is important that are advised when a property becomes vacant. Where your property is vacant, the excess increases to 2,500 per event. Further, in the interests of good risk management, you should comply with the following Guidelines for the Management of Unoccupied Premises. In respect of Buildings that are or become unoccupied you should; 1. Turn off electricity, gas and water supplies at the mains and drain down all water systems except for those Connected to automatic fire or intruder alarm installations Connected to automatic sprinkler installations or other fire suppression systems 2. Maintain automatic sprinkler installations and other fire suppression systems, automatic fire alarm and intruder alarm installations and keep them fully operational 3. Maintain a level of heating sufficient to prevent freezing of automatic sprinkler installations 4. Secure the buildings and all points of access against entry by intruders and put all protective and locking devices and any intruder alarm installations into full and effective operation 5. Remove all waste, unfixed combustible materials and gas bottles from the interior of the buildings including any communal parts and from any external areas 6. Carry out an internal and external inspection of the buildings at least once every 14 days an maintain a record of such inspections. You also need to ensure that any defects in the condition or state of repair of the buildings or defects in security, alarm or fire protection installations are rectified, remedied or repaired immediately In the event of damage to Property, please contact the following who act on behalf of. They will present the claim to QBE. Tristan Griffiths-Hughes, Hettle Andrews & Associates Limited T: [email protected] Out of Hours contacts are as follows: McLarens Global Claims Services: Andrew Dear General 24/7/265 Number:

5 Get in touch with us If you would like to discuss our property service further, please contact our specalist Property Team on: * 8am-6pm Monday to Friday is a SIPP provider and is unable to provide financial advice. Please speak to your financial adviser for advice or further information. * Calls to this number are charged at the national rate. is a trading name of The Mitchell Group Limited, which is authorised and regulated by the Financial Conduct Authority. 4 GTI 0001 JULY