Storm Damage - Things you should know.

With the recent high winds we've been having, I feel it would be important to remind our clients about the scope of their cover when it comes to Storm Damage; beit to their own home, a let property or an unoccupied property.

Unoccupied properties are often not covered against storm. When a property is unoccupied, the perils that the insurer will cover the property owner against are often restricted to just Fire, Lightning, Earthquake, Explosion and Aircraft only. Extended cover can be sourced which reinstates the standard perils (Storm, flood, escape of water etc) but this cover would carry a much higher premium and the maximum claim amount for the additional perils may be restricted to say £2,500 for any one claim.

One of the most common part of a property which would suffer damage in stormy conditions is fences. On any policy covering a property, it is common that storm damage to gates, fences and posts are excluded.

Another important point to note would be if your property has a flat roof. Flat roofs often carry an increased excess for ingress of water following a storm (typically £500). Also there would likely be an endorsement on the policy stating the flat roof needs to be annually inspected by a builder and for any defects to be immediately repaired.

If you are looking for a quote for your property or would like some advice, please call the commercial team on 01249 463206 or check out our website www.advanceinsurance.co.uk

Office Insurance

Do you require Office Insurance?

Advance Insurance can offer independent expert advice to ensure you get the protection you require.

Below is a list of items commonly covered together with items that can be optional :

Tenants Improvements

General Contents

Office Based Computers

Portable Computers

Specialist Equipment

Business Interruption

Public & Employers' Liability

Money Cover

Terrorism (optional)

Personal Accident cover (optional)

Fidelity Insurance (optional)

For more information please contact Ricky Marshall on 01249 463206

www.advance-commercial.co.uk

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Property Owners Average Condition

Anyone who owns and wishes to insure a property; beit their own home, a let property or a commercial premises will be asked by their Broker / Insurer the amount of cover they require for the Buildings. The figure given should represent the rebuild value of the property but should also take in to account other factors such as: debris removal, architects, surveyors, consultants, legal fees and VAT and any additional cost of complying with government or local authority requirements.

A lot of the time people will estimate it themselves to be around 60 - 80% of the market value of the property as the market value also takes in to account the land on which the property is built. This may not always be sufficient though depending on where the property is located, its age, ease of access, construction and if the property is grade listed.

On pretty much every insurance policy which incorporates cover for buildings, there will be a condition within the wording of the policy called the "Average Condition". This condition would come in to force where a property owner makes a claim but has not insured their property for a sufficient amount.
It is the property owners responsibility to ensure that they provide the correct value at the time they take insurance out on their property. There are several ways to get an accurate idea of what the rebuild value should be below but if in doubt it is always best to overestimate it (even though it may mean you pay slightly more on your insurance premium).

Gross underinsurance could potentially have quite a disasterous effect on the property owner if the Average condition is applied. The payment made by the insurer would be calculated using the following formula:

(Sum insured / true value at inception) x loss

To put this in monetary terms:

Let's say you own a property and insure it for £300,000 and then suffer an insured £110,000 fire loss, but at the time of the loss the insurers have calculated the building to be valued (rebuild) at £340,000, the insurers would pay (300,000 / 340,000) x 110,000 = £97,059.
This means the property owner would be left to pay the shortfall of £12,941 themselves to get their property fully reinstated where the extra £40,000 cover at inception may have typically cost about an additional £40.

There are several ways to get an accurate rebuild figure for your property. Your mortgage company may give you a figure, you could have a surveyor visit your premises to provide one or there are some online facilities such as the one on the Association of British Insurers (ABI) website.

For more information on what Advance Insurance do, please see our website www.advanceinsurance.co.uk