If you own a property it is important to have appropriate insurance covers in place.
Whether you own a commercial building, block of flats or a private house or portfolio of properties, insurers have different policies in place to suit the type of property and your needs.
It is important to choose a sum insured that is sufficient to cover the costs of rebuilding, repairing or replacing the property. The sum insured not only includes the rebuild from scratch but includes professional fees and costs for removal of any debris following a loss. A Chartered Surveyor can calculate the accurate sum insured and as the cost of rebuilding the property will tend to increase over years, so it is best to review this figure periodically to make sure it is adequate.
Important Clauses to be aware of
VAT Clause: If the entity owning the property is unable to recover VAT, then this must be included in the building sum insured and it is important to check to make sure the sum insured is adequate.
Average Clause:The Average Clause is an important consequence of underinsurance and all policies have conditions including the average in determining the claim settlement. If at the time damage occurs the sum insured is less than the actual rebuild cost of the property, the insurance company’s liability shall be limited to that proportion of the amount otherwise payable. The claim will be reduced on a pro rata basis and any extra costs will have to be dealt with by the policyholder.
Whether it be communal contents and/or landlords contents, an adequate sum insured for reinstatement on a “new for old” basis should be covered.
Property Owners LiabilityThis is an extension on most Property Owners policies and will cover costs and damages awarded to a third party if they have suffered a bodily injury following an accident, illness or disease which is linked to the premises. From a tenant falling down the stairs due to poor maintenance or a loose tile hitting a third party vehicle, there would be legal expenses and solicitors costs in defending the claim. The Property Owners Liability protects landlords and property owners and the limit of indemnity should be based on your assessment depending on the risk.
ExtensionsDifferent Property Owners policies have a variety of extensions including:-
- Employers Liability
- Engineering inspection
- Alternative Accommodation
- Trace and Access
- Legal Expenses