Property Insurance

A property may be purchased as an investment for the future, as part of a portfolio of buildings forming a letting business, or a long term family owned premise. Properties fit a variety of needs and therefore it is important that you choose an insurance provider that can accommodate your requirements whatever the circumstances.

Property Insurance

At Sharrocks we specialise in property insurance with first-hand experience like no other insurance provider in the UK.

Operating from a grade 2 listed windmill that suffered a fire during construction in 2008 and working within one of the highest rated flood risk locations in the UK, we have learned to be adaptable and seek suitable insurers that can assist us and our clients. We can cater for both commercial and residential properties, let to all categories of tenants and are able to deliver a range of options for short term and long term unoccupied buildings.

There are a variety of covers available under a standard property insurance policy they can include:-

Buildings

The principal element of cover but are you entirely sure what you are covering?

The rebuilding sum insured stated on the policy is the cost of rebuilding the property in its entirety, professional fees incurred for reinstating the property and its clearance costs.

Moreover the area covered under this section extends from the main structure and can include, domestic outbuilding and garages, swimming pools and hard tennis courts, terraces, patios, driveways, footpaths, walls, fences, gates and hedges, car parks, cess pits, septic tanks, squash courts, gymnasia used by residents for domestic and leisure purposes, street furniture and lamp posts, solar panels and wind turbines attached to the property.

Having an incorrect sum insured would mean the principle of “average” may apply in the event of a claim. For example, if the property is insured for £100,000 and the actual rebuilding sum insured is £200,000 every claim against the property itself could be reduced by 50% in proportion to the overall level of under insurance.

To avoid under insurance it is recommended policyholders seek a rebuilding survey from an accredited building surveyor, or if a residential property by visiting the following Association of British Insurers approved website and using the online calculator http://abi.bcis.co.uk/

Property Owners Liability

As a property owner should a third party suffer injury or property damage due to your negligence as a property owner this element of the policy is designed to protect you.

Loss of Rent/ Alternative Accommodation

If the property suffers significant damage and is uninhabitable cover is available for the cost of re-housing your tenants and for the loss of rent that may have been incurred by you the landlord.

The cover provides a sum insured (the total amount payable) and an indemnity period (the length of time the financial loss is attributable to). Often, following a significant loss, such as a flood or fire, a 12 month indemnity period will be insufficient to suitably reinstate the property, therefore it may be wiser to seek this cover to extend over 18 or even 36 months for larger properties.

Contents

Dependent on the definition of the particular insurer this would extend to carpets, domestic furniture and white goods. This element of protection is typically offered on a new for old basis.

Engineering Inspection

As the landlord or member of an organisation responsible for the insurance and maintenance of a property, if the property contains a lift, boiler or pressure plant, then you will need to consider Engineering and Inspection Insurance.

Ensuring the machinery is maintained to a safe standard and regularly checked can be expensive, especially if a part needs repairing or replacing. Insurers offer this cover to guard against these costs.

Employers Liability

Should you directly employ someone or use labour only sub-contractors or volunteers you may be legally required to ensure this section of the policy is in place.

Under the Employers’ Liability Regulations 1998, employers’ liability is compulsory for any individual or company with employees, labour only sub-contractors or volunteers. You are only exempt if you run your own Limited company, with yourself as the sole employee, and you own 50% or more of the issued share capital.

Legal Cover

As the legal responsibilities of letting and managing a property grow this protection is either purchased separately or as part of the overall package of cover. This can provide you with legal protection for the following events:

  • Property damage, nuisance and trespass
  • Repossession
  • Recovery of rent arrears
  • Prosecution defence
  • Accommodation costs

Terrorism

Standard property insurance policies do not cover damage caused by acts of war or terrorist attacks. Those properties that are situated near government buildings, transport links or famous buildings the need maybe clearer. However, with the methodology of terrorists constantly evolving no longer are the risk of attacks focused on well known locations.

This element of cover may be added to your existing policy or purchased individually, however with the changing world it is an emerging requirement to consider this cover.

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