This bulletin is designed to give property owners a better understanding of some of the risks that they may face and some of the solutions that are available to them.

Common Issues and Concerns

• Getting the name right on the policy. It may seem a minor point but the policy must be in the name of the property owner or whoever is responsible for the insurance, whether that is an individual, partnership or limited company.
• An adequate sum insured. Failing to insure for the full rebuilding cost could reduce the amount an insurer pays, even for a small claim.
• Loss of rental income. This must be insured under a business interruption section of a policy rather than a damage section so that the insurance will pay until the property is re-occupied, NOT just until it is repaired or rebuilt. It is therefore also important to have an adaquate indemnity (or payment) period, taking into account how long it might take to draw up plans, obtain planning permission, rebuild and find a tenant.
• The right causes of damage. “All Risks” cover is rarely that. Is subsidence cover needed? What about terrorism damage? If there is a break-in or a theft of metal or copper wire, is this covered?
• If they own more than one property, it’s best to have just one policy to benefit from premium discounts.
• If cleaners or maintenance staff are employed, the owner must have employers’ liability insurance.
• What is the term “Day 1 reinstatement”? This is often shown on insurance documents and is basically a way to avoid having to predict what it will cost to rebuild the property at the time of a claim.
• Are any owner’s contents to be insured?
• Are there any hidden pipes? If so, and one of them starts to leak or burst, is there cover to find the leak? Not all policies do.
• Are the costs of clearing up fly-tipping insured?
• Property owners now need to provide Energy Performance Certificates when selling or re-letting most commercial properties.
• Since 2006, regulations have required the management of asbestos in a property, although this may not require its removal.

How we can help

For property owners in Bromsgrove, Redditch, Worcester and throughout Worcestershire and Warwickshire, we can offer:

• A free no obligation review of current insurance arrangements and a report on possible alternatives.
• Guidance on risk management issues
• Access to independent specialists to assist with electrical, asbestos and Energy Performance surveys.

For more information, please complete an enquiry form HERE, contact us by email at enquiries@apinsurance.co.uk or call 01527 834696.